A Letter From Our CEO
February 12, 2015
For the year ended December 31, 2014 Landmark Bancorp Inc. recorded the best financial results in the bank’s history. Assets grew 5.7% during the year while net income increased by 33.3%. Net income was $2.20 million compared to $1.65 million in 2013. Earnings per share were $1.14 compared to $.84 in 2013. Return on average assets improved to .80% compared to .64% in 2013. Return on equity improved to 8.65% compared to 6.82% in 2013.
Assets grew 5.7% to $278.9 million compared to $263.8 million at year-end 2013. Net loans expanded by 7.60% to $205.3 million compared to year-end 2013. The deposit portfolio grew 6.46% to $238.5 million at year-end 2014. The growth of non-interest bearing deposits, or checking accounts, has long been a priority for Landmark. Those balances expanded by 12.0% during 2014 and reached $44.5 million at year-end. These interest-free funds are critically important to the future profitability of the bank.
The resolution of the Scranton Parking Authority loan, in early December of 2014, was a significant accomplishment. This loan, with a balance of $2.6 million, defaulted and was charged off in 2012. The resolution will result in the recovery of principal, accrued interest and fees of about $3.2 million with interest on that balance at 6.75% from the date of the resolution. The resolution included a new loan with a ten year term secured by a pledge of revenue from the City of Scranton and priced at a variable rate of prime (3.25%) plus 3.5%.
We are also very proud of the results of our customer satisfaction survey. The random survey was mailed to 1/3 of our business and consumer clients. The response rates were exceptional with 43% of consumer clients and 64% of business clients responding. Clients were asked to rate the bank on a scale of 1 to 5 with 1 being “Very Satisfied” and 5 being “Completely Dissatisfied”. The ratings were excellent in all areas and the score for “Overall Bank Satisfaction” was 1.09.
Landmark remains well capitalized at year-end 2014 and the bank’s Tier 1 Capital Ratio improved to 9.40% compared to 9.18% at year-end 2013. According to current regulatory guidelines a Tier 1 Capital Ratio of 5% is considered well capitalized. Total capital increased to $26.63 million at year-end. Book value per share was $13.35 at year-end 2014 compared to $12.10 at year-end 2013.
The Board of Directors voted to increase the dividend and declared a quarterly dividend of $.08 per share on February 12, 2015, payable on March11, 2015 to stockholders of record on March 3, 2015.
Landmark remains financially strong and we are committed to serving business, professional, municipal and consumer clients in our market area. We will continue to offer the advice, service and products our clients need to be successful.
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.