Landmark Bancorp (LARK) Q3 2024 earnings summary

Executive summary

• Net earnings for Q3 2024 were $3.9 million, up 36.6% year-over-year and 30.5% sequentially, with EPS of $0.72 and ROAE of 11.82%.

• Nine-month net earnings totaled $9.7 million, nearly flat year-over-year, with EPS of $1.77.

• Loan growth, margin expansion, and higher non-interest income drove strong results.

• Asset quality remains strong, though non-performing and past-due loans increased, mainly due to a single commercial relationship.

• Board declared a $0.21 per share cash dividend and a 5% stock dividend, marking the 24th consecutive year for the stock dividend and 93rd consecutive quarterly dividend.

Financial highlights

• Net interest income for Q3 2024 was $11.6 million, up 9.2% year-over-year and 5.7% sequentially; net interest margin expanded to 3.30%.

• Non-interest income for Q3 2024 was $4.3 million, up 16.5% year-over-year and 14.3% sequentially, aided by a $273,000 gain on a branch sale.

• Non-interest expense for Q3 2024 was $10.6 million, down 1.6% year-over-year and 4.8% sequentially.

• Efficiency ratio was 66.5% for Q3 2024.

• Book value per share increased to $25.39 at September 30, 2024.

Outlook and guidance

• Management expects the full impact of recent Fed rate cuts to benefit margins in Q4 and into 2025.

• Optimism remains for continued margin expansion, robust mortgage pipeline activity, and strong loan demand in residential, agriculture, and commercial real estate.

• Asset quality expected to remain strong, though management is monitoring increases in problem loans.

• Future dividends depend on economic and company performance.