Landmark Bancorp Reports 6.3% Increase in Net Earnings for Fiscal Year 2024

Landmark Bancorp, Inc. reported a solid financial performance for the fiscal year ending December 31, 2024, with net earnings increasing by 6.3% to $13.0 million, compared to $12.2 million in 2023. This growth was primarily driven by a significant rise in net interest income, which increased by $2.4 million, or 5.6%, to $45.7 million. The increase in interest income was attributed to higher loan balances and yields, with total interest income rising by 14.2% to $73.9 million, while interest expense also surged by 31.5% to $28.2 million due to increased competition for deposits and higher interest rates.

The company experienced notable changes in its loan portfolio, with total gross loans rising by 10.8% to $1.05 billion as of December 31, 2024. The one-to-four family residential real estate loans increased by 16.4% to $352.2 million, while commercial real estate loans grew by 7.5% to $345.2 million. The increase in loans was supported by a strategic focus on commercial, commercial real estate, and agricultural lending, which management believes will yield higher profitability compared to traditional residential lending. The company also opened a loan production office in Kansas City, Missouri, further expanding its geographic footprint.

Operationally, Landmark Bancorp maintained a strong capital position, with a total risk-based capital ratio of 13.53% as of December 31, 2024, exceeding the minimum regulatory requirements. The allowance for credit losses increased to $12.8 million, or 1.22% of gross loans, reflecting management's proactive approach to credit risk amid economic uncertainties. The company reported a rise in non-performing loans to $13.1 million, or 1.25% of total loans, primarily due to one commercial loan relationship that transferred to non-accrual status.

Looking ahead, Landmark Bancorp remains optimistic about its growth prospects, emphasizing its commitment to maintaining high asset quality while expanding its loan portfolio. The company plans to continue focusing on its core deposit base and enhancing customer relationships, which are critical to its community banking strategy. Management is also closely monitoring economic conditions, including inflation and interest rate fluctuations, which could impact future performance. The company’s strategic initiatives, including potential acquisitions and branch expansions, are expected to support its long-term growth objectives.