A Letter From Our CEO
October 16, 2016
Landmark Bancorp Inc. recorded solid third quarter results highlighted by strong asset growth, payment in full of the Scranton Parking Authority loan charged off in 2012 and approval of a new branch location slated to open in December of 2016.
While the first nine months of net income is down about $300 thousand from the prior year, it is important to note that the primary driver is in the provision for the allowance for loan loss which saw a swing of nearly $1.0 million. Landmark’s net income after tax was $1.65 million compared to $1.94 million for the same nine-month period in 2015. Prior year net income was increased by a reversal of $793 thousand of loan loss provision expense while the same period of 2016 saw an expense of $197 thousand. Earnings per share were $.85 compared to $1.01 for the same period of 2015. Year to date return on assets was .74% compared to .95% for the third quarter of 2015. Return on equity was 7.83% compared to 9.49% during the same period in 2015.
Total assets grew $34.2 million, nearly 12.6% to $306.5 million driven primarily by net loan growth of $32.6 million or nearly 16.5%. It must be noted that Landmark Community Bank achieved over $300 million in assets in just over 15 years. Some of the local banks which existed in 2001, when Landmark opened for business, were 100 years old and were less than or never achieved an asset base of $300 million.
Deposit balances also expanded by 13.7% to $254.7 million, an increase of $30.7 million, over the same time last year. Non-interest bearing or checking account balances continued to expand and are up 15.4% to $46.3 million.
At the end of August, the Scranton Parking Authority paid Landmark Community Bank in full. As a result of this payment Landmark recovered the full balance of all principal, all interest accrued from the date of default as well as all collection fees and expenses. We congratulate the City of Scranton and the current Administration for this accomplishment which was a solid step forward for the City.
During the third quarter Landmark agreed to purchase the abandoned Susquehanna/BBT branch located on Airport Road in Hazleton. Regulatory approval was granted in September. The Board of Directors and management of Landmark believe this is an excellent location which complements our branch location on Poplar Street. Shortly after agreeing to purchase the location it was announced that a major hospital will be building directly across the street from this new branch location. We are excited about this opportunity. The Hazleton market, evidenced by our success at the Poplar Street location, is a dynamic and profitable segment of our overall footprint. The people of Hazleton have been very supportive of our past expansion and we look forward to opening in December of this year.
Landmark remains well capitalized with the Tier 1 Leverage Ratio at 9.46% at quarter end. While this is down from 10.17% at September 30, 2015 this is because of the exceptionally strong asset growth reported earlier. Stockholders’ equity expanded to $29.0 million compared to $28.2 million at quarter end 2015. Book value per share was $14.58 compared to $14.12 last year.
On October 13, 2016, the Board of Directors of Landmark Bancorp, Inc. declared a dividend of $.08 cents per share, payable on November 7, 2016 to stockholders of record on October 28, 2016.
Landmark Community Bank’s staff, management, Board of Directors and Advisory Board members are committed to building a strong community bank and providing unparalleled service to our clients as well as delivering long term value to our shareholders. We appreciate your support and we encourage you to continue to use Landmark Community Bank for all your banking needs and request that you refer prospective clients to your bank.
Very Truly Yours,
Daniel R. Nulton
President & CEO
Savings, Money Market & Club Accounts Landmark Community Bank offers traditional savings accounts, money market accounts, certificates of deposit, club accounts and IRA accounts.
Checking Deposit accounts to meet all of your personal and business needs.
Online Banking Services Landmark Community Bank’s Net Teller allows you to bank from your personal computer, giving access to your bank accounts 24 hours a day.
Loans Landmark Community Bank offers a variety of home equity, personal and business loans.
At Landmark Community Bank our goal is to offer the highest customer service while establishing a long lasting relationship with you. We provide you with a high level of technology with experienced, responsive bankers to compliment and maximize your business. Landmark Community Bank offers a full range of services to accommodate all businesses. Please click on a link above to find out more about how Landmark can be "Better Business Banking" for you.