Landmark Bancorp (LARK) investor relations material

Executive summary

• Achieved record Q2 2026 revenue of $19.2 million, driven by higher net interest income and gains on loan sales, with net earnings of $5.4 million and diluted EPS of $0.88, up 6.1% year-over-year.

• Commercial, construction, and agricultural loan portfolios grew, while residential real estate loans declined by strategic choice.

• Core deposits and non-interest-bearing deposits increased, offsetting a reduction in brokered deposits.

• Tangible book value per share increased to $21.76, and a $0.21 per share dividend was declared for the 100th consecutive quarter.

• Asset quality remained strong, with allowance for credit losses at $12.7 million (1.15% of gross loans), despite a rise in non-performing loans to $13.1 million (1.18% of gross loans).

Financial highlights

• Net interest income for Q2 2026 was $15.1 million, up 10.2% year-over-year and 0.4% sequentially.

• Non-interest income rose to $4.1 million, up $331,000 from Q1 and $469,000 year-over-year, driven by higher gains on loan sales.

• Non-interest expense was $12.0 million, with increases in professional fees and compensation, including one-time forensic/legal costs related to fraud.

• Gross loans increased by $4.4 million to $1.1 billion at quarter end.

• Return on average assets was 1.35%; return on average equity was 13.23%.

Outlook and guidance

• Management remains cautiously optimistic about loan growth in H2 2026, focusing on commercial and ag lending, and expects continued profitability supported by a strong capital base.

• Net interest margin expected to remain around 4.20% if rate environment holds steady.

• Continued focus on acquiring new customers, expanding relationships, prudent portfolio management, and investments in talent and technology.

• Dividend strategy remains unchanged, with future practice dependent on economic performance and capital conservation buffer compliance.