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1. Company Snapshot

1.a. Company Description

Landmark Bancorp, Inc.operates as the financial holding company for Landmark National Bank that provides various financial and banking services to its local communities.It offers non-interest bearing demand, money market, checking, and savings accounts, as well as certificates of deposit.


The company also one-to-four family residential real estate, construction and land, commercial real estate, commercial, paycheck protection program, municipal, and agriculture loans; and consumer and other loans, including automobile, boat, and home improvement and home equity loans, as well as insurance, and mobile and online banking services.In addition, the company invests in certain investment and mortgage-related securities.It has 30 branch offices in 24 communities across the state of Kansas.


The company was founded in 1885 and is headquartered in Manhattan, Kansas.

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1.b. Last Insights on LARK

Landmark Bancorp, Inc.'s recent performance was negatively impacted by a decline in its efficiency ratio, which increased to 64.1% in Q1 2025, indicating a decrease in operational efficiency. Additionally, the company's return on average assets and return on average equity, while still respectable at 1.21% and 13.71% respectively, showed a slight decline from the previous quarter. Furthermore, the recent article highlighting the company's quality scores, while generally positive, noted that Landmark Bancorp, Inc. scored only 24 out of 30 points, indicating some areas for improvement.

1.c. Company Highlights

2. Landmark Bancorp's Q3 2025 Earnings: A Strong Performance

Landmark Bancorp, Inc. reported a net income of $4.9 million or $0.85 per diluted share for the third quarter of 2025, representing a 24.1% increase in diluted earnings per share from the same period last year. The growth in earnings was primarily driven by an increase in net interest income and well-managed expenses. The net interest margin remained steady at 3.83%, while the efficiency ratio improved to 60.7%. The actual EPS of $0.85 was slightly higher than the estimated $0.83. Net interest income totaled $14.1 million, with a $411,000 increase from the prior quarter.

Publication Date: Nov -03

📋 Highlights
  • Earnings Growth:: Net income of $4.9 million ($0.85 per diluted share), reflecting a 24.1% increase in diluted earnings per share YoY.
  • Profitability Metrics:: Return on average assets (ROAA) of 1.21% and return on average equity (ROAE) of 13.0%, highlighting strong profitability.
  • Efficiency Improvement:: Efficiency ratio dropped to 60.7%, showing better cost management despite a $290,000 rise in noninterest expenses.
  • Loan Growth:: Average loans grew nearly 10% annually, driven by a stable low-cost core deposit base and improved credit quality.
  • Capital Strength:: Tangible book value per share rose to $20.96, up 15.7% YoY, supported by a 5% stock dividend and $0.21 cash dividend.

Revenue and Margin Analysis

The company's net interest income grew due to a stable net interest margin and an increase in average loans, which grew nearly 10% on an annualized basis. Noninterest income was $4.1 million, up $442,000 from the prior quarter, driven by growth in gains on sales of mortgage loans and fees and service charges. The increase in noninterest income was a positive surprise, as it helped offset the increase in noninterest expense, which was $11.3 million, up $290,000 from the prior quarter.

Asset Quality and Capital Management

The company's asset quality remained strong, with nonperforming loans declining by almost $7 million, driven by the resolution of a large commercial loan. The allowance for credit losses stood at $12.3 million or 1.10% of gross loans, and net loan charge-offs totaled $2.3 million. The tangible book value per share increased to $20.96, up 6.6% from the linked quarter and 15.7% from the end of the third quarter of 2024.

Valuation and Dividend

With a Price-to-Tangible Book Value (P/TBV) of approximately 0.95, the stock appears to be fairly valued. The Dividend Yield is 3.27%, which is attractive for income-seeking investors. The company's strong capital and liquidity measures, combined with a stable low-cost core deposit base, support the dividend payment. The Board of Directors declared a cash dividend of $0.21 per share and a 5% stock dividend, indicating a commitment to returning value to shareholders.

Outlook and Conclusion

The Kansas economy remains healthy, with a seasonally adjusted unemployment rate of 3.8% and a 1.2% year-over-year increase in home sales. Landmark Bancorp is well-positioned to continue its strong performance, with a focus on maintaining solid credit quality and continually looking for efficiencies in its operations. Analysts estimate revenue growth to be flat next year, but the company's strong capital position and attractive dividend yield make it an interesting investment opportunity in the banking sector.

3. NewsRoom

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LARK Distilling Co. Ltd. (LRKKF) Shareholder/Analyst Call Transcript

Nov -19

Source: seekingalpha.com

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Landmark Bancorp Q3 Earnings Rise Y/Y on Loan Growth, Credit Gains

Oct -31

Source: zacks.com

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Landmark Bancorp, Inc. (LARK) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Landmark Bancorp, Inc. Announces Conference Call to Discuss Third Quarter 2025 Earnings

Oct -17

Source: globenewswire.com

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Landmark Bancorp: An Intriguing Local Bank In Kansas

Sep -22

Source: seekingalpha.com

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SHAREHOLDER ALERT: Purcell & Lefkowitz LLP Announces Shareholder Investigation of Landmark Bancorp, Inc. (NASDAQ: LARK)

Sep -16

Source: prnewswire.com

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Zacks Initiates Coverage of Landmark Bancorp With Outperform Rating

Sep -09

Source: zacks.com

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Landmark Bancorp, Inc. (LARK) Q2 2025 Earnings Call Transcript

Jul -25

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Financial and Banking Services

Expected Growth: 4.5%

Growing demand for digital banking services, increasing adoption of online lending platforms, and a strong presence in the Midwest region are expected to drive Landmark Bancorp's growth.

7. Detailed Products

Personal Banking

Landmark Bancorp, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Business Banking

The company provides business banking services, including commercial loans, lines of credit, and cash management solutions, tailored to meet the unique needs of businesses.

Mortgage Lending

Landmark Bancorp, Inc. offers a variety of mortgage loan options, including fixed-rate and adjustable-rate mortgages, for homebuyers and homeowners.

Investment Services

The company provides investment services, including brokerage, retirement planning, and wealth management, to help clients achieve their financial goals.

Treasury Management

Landmark Bancorp, Inc. offers treasury management services, including cash management, wire transfers, and account reconciliation, to help businesses manage their finances efficiently.

Online Banking

The company provides online banking services, allowing customers to manage their accounts, pay bills, and transfer funds securely online.

8. Landmark Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Landmark Bancorp, Inc. is medium due to the presence of alternative financial institutions and online banking services.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of buyers and the limited ability of individual customers to influence prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers and the moderate level of dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including regulatory requirements and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple competitors and the high level of competition in the banking industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.83%
Debt Cost 6.03%
Equity Weight 56.17%
Equity Cost 6.03%
WACC 6.03%
Leverage 78.03%

11. Quality Control: Landmark Bancorp, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Penns Woods Bancorp

A-Score: 7.0/10

Value: 5.5

Growth: 4.8

Quality: 5.0

Yield: 9.0

Momentum: 8.5

Volatility: 9.3

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Landmark Bancorp

A-Score: 6.8/10

Value: 6.5

Growth: 4.9

Quality: 5.4

Yield: 7.0

Momentum: 9.5

Volatility: 7.3

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LCNB

A-Score: 6.7/10

Value: 7.1

Growth: 6.1

Quality: 5.6

Yield: 9.0

Momentum: 5.0

Volatility: 7.3

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Northfield Bancorp

A-Score: 6.2/10

Value: 7.4

Growth: 4.7

Quality: 5.5

Yield: 8.0

Momentum: 5.0

Volatility: 6.7

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Kearny Financial

A-Score: 6.1/10

Value: 6.2

Growth: 5.8

Quality: 5.6

Yield: 9.0

Momentum: 3.5

Volatility: 6.3

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Catalyst Bancorp

A-Score: 5.4/10

Value: 4.4

Growth: 3.8

Quality: 5.6

Yield: 0.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.9$

Current Price

27.9$

Potential

-0.00%

Expected Cash-Flows