A Letter From Our CEO
July 9, 2015
Landmark Bancorp Inc. recorded second quarter results that improved significantly compared to the same period in 2014. Net income after tax was up 57.2%, compared to the first six months of 2014.
Landmark’s net income after tax was $1.54 million compared to $980.0 thousand for the first six months of 2014. Earnings per share were $.81 compared to $.51 for the same period of 2014. Return on assets was 1.13% compared to .73% during the first six months of 2014. Return on equity was 11.45% compared to 7.94% during the same period in 2014.
Landmark’s results were driven in large part by the monetization of a portion of the Scranton Parking Authority loan. Landmark sold $1.8 million of the $3.2 million loan to other parties which resulted in a recovery to the allowance for loan losses. Half of the $1.8 million, or $900 thousand, was reversed to income. Net income after tax, adjusted for the recovery, would have been flat to last year driven by continued compression of the net interest margin. The bank’s NIM dropped .15%, year over year, from 3.84% to 3.69%. Several significant municipal loans either paid off or refinanced at much lower rates which impacted both the net interest margin and a reduction in the loan portfolio.
Assets contracted 2.3% year over year, driven primarily by a $5.3 million decline in net loans due to the payoffs mentioned earlier. The investment portfolio expanded 3.3% to $54.5 million from $52.7 million in the same period of 2014. The deposit portfolio contracted by 5.17% compared to the same period in 2014. Non-interest bearing deposits continue to grow and are up 12.7% compared to June 30, 2014.
Landmark remains well capitalized with the Tier 1 Leverage Ratio growing to 9.94% compared to 9.16% at June 30, 2014. Stockholders’ equity grew 8.4% to $27.6 million compared to $25.5 million at quarter end 2014. Book value per share was $13.86 compared to $12.74 last year.
On July 9, 2015 the Board of Directors of Landmark Bancorp, Inc. declared a dividend of $.08 cents per share, payable on 7/31/15 to stockholders of record on 7/23/15.
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
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