Landmark Bancorp, Inc. Announces Growth in First Quarter 2025 Net Earnings of 43.2%. Declares Cash Dividend of $0.21 per Share

Manhattan, KS, April 30, 2025 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.81 for the three months ended March 31, 2025, compared to $0.57 per share in the fourth quarter of 2024 and $0.48 per share in the same quarter last year. Net income for the first quarter totaled $4.7 million, compared to $3.3 million in the prior quarter and $2.8 million in the first quarter of 2024. For the three months ended March 31, 2025, the return on average assets was 1.21%, the return on average equity was 13.71% and the efficiency ratio(1) was 64.1%. First Quarter 2025 Performance Highlights Loan growth totaled $22.6 million or an annualized increase of 8.7% over the prior quarter.Net interest margin improved 25 basis points to 3.76% compared to 3.51% in prior quarter.Deposits increased $42.3 million, or 3.3%, from the same quarter last year and $7.1 million, or 2.2%, from prior quarter.Other borrowed funds decreased $11.8 million compared to the prior quarter.Non-interest expenses declined $1.1 million compared to the prior quarter.Credit quality remained stable with net charge-offs totaling $23,000 in the first quarter.Ratio of equity to assets increased to 9.04% this quarter. In making this announcement, Abby Wendel, President and Chief Executive Officer of Landmark, commented, “I am pleased to report strong growth in net income this quarter driven by growth in net interest income, lower expenses and excellent credit quality. We continued to experience solid loan demand in the first quarter 2025, especially for commercial real estate and residential mortgage loans. In the first quarter 2025, total gross loans increased by $22.6 million or 8.7% (annualized) with growth in most loan categories. Total deposits also increased in the first quarter by $7.1 million, exceeding the typical seasonal decline in money market and interest checking accounts. Over the last two quarters, deposits have increased over $60 million. Other borrowed funds declined by $11.8 million, which reduced interest expense and improved our net interest margin. Growth in our balance sheet, plus the shift in our funding position led to net interest income growth of 22.1% over the previous year and net interest margin expansion of 25 basis points to 3.76%. Non-interest expense also declined this quarter by $1.1 million compared to the prior quarter. Credit quality remained solid overall with minimal net charge-offs, and no provision for credit losses was taken this quarter. These strong results are a tribute to the associates who work hard every day to make Landmark the bank of choice for our customers and stockholders.” Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid June 4, 2025, to common stockholders of record as of the close of business on May 21, 2025. Management will host a conference call to discuss the Company’s financial results at 9:30 a.m. (Central time) on Thursday, May 1, 2025. Investors may participate via telephone by dialing (833) 470-1428 and using access code 866149. A replay of the call will be available through May 8, 2025, by dialing (866) 813-9403 and using access code 282640. Net Interest Income Net interest income in the first quarter of 2025 amounted to $13.1 million representing an increase of $720,000, or 5.8%, compared to the previous quarter. The increase in net interest income resulted from a combination of both higher interest income on loans and lower interest expense on deposits and other borrowed funds (FHLB, repurchase agreements and other debt). Net interest margin increased to 3.76% during the first quarter from 3.51% during the prior quarter. Compared to the previous quarter, interest income on loans increased $440,000 to $16.4 million due to higher average balances combined with higher yields on loans. Average loan balances increased $38.4 million, while the average tax-equivalent yield on the loan portfolio increased 6 basis points to 6.34%. Interest on investment securities declined slightly due to lower balances, partially offset by higher earning rates. Compared to the fourth quarter of 2024, interest on deposits decreased $114,000, or 2.1%, due to lower rates as average interest-bearing deposit balances increased by $34.8 million. Interest on other borrowed funds declined by $216,000, due to lower rates and average balances. The average rate on interest-bearing deposits decreased 8 basis points to 2.17% while the average rate on other borrowed funds decreased 15 basis points to 5.09% in the first quarter. Non-Interest Income Non-interest income totaled $3.4 million for the first quarter of 2025, a decrease of $13,000 from the previous quarter. The decrease in non-interest income during the first quarter of 2025 was primarily due to a $704,000 decline in bank owned life insurance income relating to one-time benefits recorded in the fourth quarter, coupled with a $322,000 decline in fees and service charges relating to lower deposit related fee income, partially due to fewer days in the quarter. Partially offsetting those declines was a $1.0 million loss on the sales of lower yielding investment securities in the fourth quarter of 2024, compared to a loss of only $2,000 in the first quarter of 2025. (1) Non-GAAP financial measure. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation. Non-Interest Expense During the first quarter of 2025, non-interest expense totaled $10.8 million, a decrease of $1.1 million compared to the prior quarter. The decrease in non-interest expense was primarily due to decreases of $350,000 in other non-interest expense, $298,000 in occupancy and equipment and $298,000 in professional fees. The decreases in other non-interest expenses and occupancy and equipment were primarily related to branch closures in 2024 and associated cost savings in 2025. The decrease in professional fees this quarter was primarily due to higher consulting costs in the prior quarter related to several initiatives. Income Tax Expense (Benefit) Landmark recorded income tax expense of $1.0 million in the first quarter of 2025 compared to an income tax benefit of $886,000 in the fourth quarter of 2024. The effective tax rate was 17.8% in the first quarter of 2025. The fourth quarter of 2024 included the recognition of $1.0 million of previously unrecognized tax benefits, which significantly reduced the effective tax rate. Balance Sheet Highlights As of March 31, 2025, gross loans totaled $1.1 billion, an increase of $22.6 million, or 8.7% annualized since December 31, 2024. During the quarter, loan growth was primarily comprised of commercial real estate (growth of $14.4 million), one-to-four family residential real estate (growth of $3.4 million) and construction and land loans (growth of $3.3 million). Investment securities decreased $16.5 million during the first quarter of 2025 mainly due to maturities. Pre-tax unrealized net losses on the investment securities portfolio decreased from $20.9 million at December 31, 2024, to $17.1 million at March 31, 2025, mainly due to lower market rates for these securities at March 31, 2025. Period end deposit balances increased $7.1 million to $1.3 billion at March 31, 2025. The increase in deposits was driven by increases in non-interest-bearing demand deposits (increase of $16.9 million), certificates of deposit (increase of $10.0 million) and savings (increase of $3.7 million), partially offset by a decline in money market and checking accounts (decrease of $23.5 million). The decrease in money market and checking accounts was mainly driven by a seasonal decline in public fund deposit account balances. Total borrowings decreased $11.8 million during the first quarter 2025. At March 31, 2025, the loan to deposits ratio was 79.5% compared to 78.2% in the prior quarter. Stockholders’ equity increased to $142.7 million (book value of $24.69 per share) as of March 31, 2025, from $136.2 million (book value of $23.59 per share) as of December 31, 2024. The increase in stockholders’ equity was due mainly to a decrease in accumulated other comprehensive losses (lower unrealized net losses on investment securities) along with net earnings from the quarter. The ratio of equity to total assets increased to 9.04% on March 31, 2025, from 8.65% on December 31, 2024. The allowance for credit losses totaled $12.8 million, or 1.19% of total gross loans on March 31, 2025, compared to $12.8 million, or 1.22% of total gross loans on December 31, 2024. Net loan charge-offs totaled $23,000 in the first quarter of 2025, compared to $219,000 during the fourth quarter of 2024. No provision for credit losses on loans was recorded in the first quarter of 2025 compared to a provision of $1.5 million recorded in the fourth quarter of 2024. Non-performing loans totaled $13.3 million, or 1.24% of gross loans, at March 31, 2025, compared to $13.1 million, or 1.25% of gross loans, at December 31, 2024. Loans 30-89 days delinquent totaled $10.0 million, or 0.93% of gross loans, as of March 31, 2025, compared to $6.2 million, or 0.59% of gross loans, as of December 31, 2024. About Landmark Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 29 locations in 23 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information. Contact:Mark A. HerpichChief Financial Officer(785) 565-2000 Special Note Concerning Forward-Looking Statements This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of Landmark. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this press release, including forward-looking statements, speak only as of the date they are made, and Landmark undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies and financial markets, including the effects of inflationary pressures and future monetary policies of the Federal Reserve in response thereto; (ii) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business, including changes in interpretation or prioritization of such laws, regulations and policies; (iii) changes in interest rates and prepayment rates of our assets; (iv) increased competition in the financial services sector and the inability to attract new customers, including from non-bank competitors such as credit unions and “fintech” companies; (v) timely development and acceptance of new products and services; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) effects on the U.S. economy resulting from the threat or implementation of, or changes to, existing policies and executive orders, including tariffs, immigration policy, regulatory and other governmental agencies, foreign policy and tax regulations; (x) the economic effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (xi) the loss of key executives or employees; (xii) changes in consumer spending; (xiii) integration of acquired businesses; (xiv) the commencement, cost and outcome of litigation and other legal proceedings and regulatory actions against us or to which the Company may become subject; (xv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvi) the economic impact of past and any future terrorist attacks, acts of war, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xviii) fluctuations in the value of securities held in our securities portfolio; (xix) concentrations within our loan portfolio, concentration large loans to certain borrowers, and large deposits from certain clients (including commercial real estate loans); (xx) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xxi) the level of non-performing assets on our balance sheets; (xxii) the ability to raise additional capital; (xxiii) the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; (xxvi) the Company’s success at managing and responding to the risks involved in the foregoing items; and (xxvii) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission. LANDMARK BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (unaudited) (Dollars in thousands) March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Assets Cash and cash equivalents $21,881 $20,275 $21,211 $23,889 $16,468 Interest-bearing deposits at other banks 3,973 4,110 4,363 4,881 4,920 Investment securities available-for-sale, at fair value: U.S. treasury securities 58,424 64,458 83,753 89,325 93,683 Municipal obligations, tax exempt 101,812 107,128 112,126 114,047 118,445 Municipal obligations, taxable 70,614 71,715 75,129 74,588 75,371 Agency mortgage-backed securities 125,142 129,211 140,004 142,499 149,777 Total investment securities available-for-sale 355,992 372,512 411,012 420,459 437,276 Investment securities held-to-maturity 3,701 3,672 3,643 3,613 3,584 Bank stocks, at cost 6,225 6,618 7,894 9,647 7,850 Loans: One-to-four family residential real estate 355,632 352,209 344,380 332,090 312,833 Construction and land 28,645 25,328 23,454 30,480 24,823 Commercial real estate 359,579 345,159 324,016 318,850 323,397 Commercial 190,881 192,325 181,652 178,876 181,945 Agriculture 101,808 100,562 91,986 84,523 86,808 Municipal 7,082 7,091 7,098 6,556 5,690 Consumer 31,297 29,679 29,263 29,200 28,544 Total gross loans 1,074,924 1,052,353 1,001,849 980,575 964,040 Net deferred loan (fees) costs and loans in process (426) (307) (63) (583) (578)Allowance for credit losses (12,802) (12,825) (11,544) (10,903) (10,851)Loans, net 1,061,696 1,039,221 990,242 969,089 952,611 Loans held for sale, at fair value 2,997 3,420 3,250 2,513 2,697 Bank owned life insurance 39,329 39,056 39,176 38,826 38,578 Premises and equipment, net 19,886 20,220 20,976 20,986 20,696 Goodwill 32,377 32,377 32,377 32,377 32,377 Other intangible assets, net 2,426 2,578 2,729 2,900 3,071 Mortgage servicing rights 3,045 3,061 3,041 2,997 2,977 Real estate owned, net 167 167 428 428 428 Other assets 24,894 26,855 23,309 28,149 29,684 Total assets $1,578,589 $1,574,142 $1,563,651 $1,560,754 $1,553,217 Liabilities and Stockholders' Equity Liabilities: Deposits: Non-interest-bearing demand 368,480 351,595 360,188 360,631 364,386 Money market and checking 613,459 636,963 565,629 546,385 583,315 Savings 149,223 145,514 145,825 150,996 154,000 Certificates of deposit 204,660 194,694 203,860 192,470 191,823 Total deposits 1,335,822 1,328,766 1,275,502 1,250,482 1,293,524 FHLB and other borrowings 48,767 53,046 92,050 131,330 74,716 Subordinated debentures 21,651 21,651 21,651 21,651 21,651 Repurchase agreements 6,256 13,808 9,528 8,745 15,895 Accrued interest and other liabilities 23,442 20,656 25,229 20,292 20,760 Total liabilities 1,435,938 1,437,927 1,423,960 1,432,500 1,426,546 Stockholders' equity: Common stock 58 58 55 55 55 Additional paid-in capital 95,148 95,051 89,532 89,469 89,364 Retained earnings 60,422 56,934 60,549 57,774 55,912 Treasury stock, at cost - - (396) (330) (249)Accumulated other comprehensive loss (12,977) (15,828) (10,049) (18,714) (18,411)Total stockholders' equity 142,651 136,215 139,691 128,254 126,671 Total liabilities and stockholders' equity $1,578,589 $1,574,142 $1,563,651 $1,560,754 $1,553,217 LANDMARK BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (unaudited) (Dollars in thousands, except per share amounts) Three months ended, March 31, December 31, March 31, 2025 2024 2024 Interest income: Loans $16,395 $15,955 $14,490 Investment securities: Taxable 2,180 2,210 2,428 Tax-exempt 719 738 764 Interest-bearing deposits at banks 48 49 63 Total interest income 19,342 18,952 17,745 Interest expense: Deposits 5,236 5,350 5,457 FHLB and other borrowings 565 737 1,022 Subordinated debentures 357 389 412 Repurchase agreements 65 77 107 Total interest expense 6,223 6,553 6,998 Net interest income 13,119 12,399 10,747 Provision for credit losses - 1,500 300 Net interest income after provision for credit losses 13,119 10,899 10,447 Non-interest income: Fees and service charges 2,388 2,710 2,461 Gains on sales of loans, net 562 522 512 Bank owned life insurance 272 976 245 Losses on sales of investment securities, net (2) (1,031) - Other 138 194 182 Total non-interest income 3,358 3,371 3,400 Non-interest expense: Compensation and benefits 6,154 6,264 5,532 Occupancy and equipment 1,252 1,550 1,390 Data processing 396 452 481 Amortization of mortgage servicing rights and other intangibles 239 240 412 Professional fees 745 1,043 647 Valuation allowance on real estate held for sale - - 129 Other 1,975 2,325 1,960 Total non-interest expense 10,761 11,874 10,551 Earnings before income taxes 5,716 2,396 3,296 Income tax expense (benefit) 1,015 (886) 518 Net earnings $4,701 $3,282 $2,778 Net earnings per share (1) Basic $0.81 $0.57 $0.48 Diluted 0.81 0.57 0.48 Dividends per share (1) 0.21 0.20 0.20 Shares outstanding at end of period (1) 5,778,610 5,775,198 5,747,560 Weighted average common shares outstanding - basic (1) 5,777,593 5,775,227 5,743,452 Weighted average common shares outstanding - diluted (1) 5,814,650 5,789,764 5,748,595 Tax equivalent net interest income $13,291 $12,574 $10,925 (1) Share and per share values at or for the periods ended March 31, 2024 and December 31, 2024 have been adjusted to give effect to the 5% stock dividend paid during December 2024. LANDMARK BANCORP, INC. AND SUBSIDIARIESSelect Ratios and Other Data (unaudited) (Dollars in thousands, except per share amounts) As of or for thethree months ended, March 31, December 31, March 31, 2025 2024 2024Performance ratios: Return on average assets (1) 1.21% 0.83% 0.72%Return on average equity (1) 13.71% 9.54% 8.88%Net interest margin (1)(2) 3.76% 3.51% 3.12%Effective tax rate 17.8% -37.0% 15.7%Efficiency ratio (3) 64.1% 70.8% 72.1%Non-interest income to total income (3) 20.4% 25.0% 24.1% Average balances: Investment securities $377,845 $409,648 $456,933 Loans 1,048,585 1,010,153 945,737 Assets 1,574,295 1,568,821 1,555,662 Interest-bearing deposits 979,787 944,969 935,417 FHLB and other borrowings 48,428 57,507 72,618 Subordinated debentures 21,651 21,651 21,651 Repurchase agreements 8,634 12,212 14,371 Stockholders' equity $139,068 $136,933 $125,846 Average tax equivalent yield/cost (1): Investment securities 3.29% 3.03% 2.96%Loans 6.34% 6.28% 6.16%Total interest-bearing assets 5.53% 5.34% 5.11%Interest-bearing deposits 2.17% 2.25% 2.35%FHLB and other borrowings 4.73% 5.10% 5.66%Subordinated debentures 6.69% 7.15% 7.65%Repurchase agreements 3.05% 2.51% 2.99%Total interest-bearing liabilities 2.38% 2.52% 2.70% Capital ratios: Equity to total assets 9.04% 8.65% 8.16%Tangible equity to tangible assets (3) 6.99% 6.58% 6.01%Book value per share $24.69 $23.59 $22.04 Tangible book value per share (3) $18.66 $17.53 $15.87 Rollforward of allowance for credit losses (loans): Beginning balance $12,825 $11,544 $10,608 Charge-offs (108) (246) (141)Recoveries 85 27 134 Provision for credit losses for loans — 1,500 250 Ending balance $12,802 $12,825 $10,851 Allowance for unfunded loan commitments $150 $150 $300 Non-performing assets: Non-accrual loans $13,280 $13,115 $3,621 Accruing loans over 90 days past due — — — Real estate owned 167 167 428 Total non-performing assets $13,447 $13,282 $4,049 Loans 30-89 days delinquent $9,977 $6,201 $4,064 Other ratios: Loans to deposits 79.48% 78.21% 73.64%Loans 30-89 days delinquent and still accruing to gross loans outstanding 0.93% 0.59% 0.42%Total non-performing loans to gross loans outstanding 1.24% 1.25% 0.38%Total non-performing assets to total assets 0.85% 0.84% 0.26%Allowance for credit losses to gross loans outstanding 1.19% 1.22% 1.13%Allowance for credit losses to total non-performing loans 96.40% 97.79% 299.67%Net loan charge-offs to average loans (1) 0.01% 0.09% 0.00% (1) Information is annualized. (2) Net interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate.(3) Non-GAAP financial measures. See the "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most comparable GAAP equivalent. LANDMARK BANCORP, INC. AND SUBSIDIARIESNon-GAAP Finacials Measures (unaudited) (Dollars in thousands, except per share amounts) As of or for thethree months ended, March 31, December 31, March 31, 2025 2024 2024 Non-GAAP financial ratio reconciliation: Total non-interest expense $10,761 $11,874 $10,551 Less: foreclosure and real estate owned expense (50) (13) (50)Less: amortization of other intangibles (152) (151) (170)Less: valuation allowance on real estate held for sale — — (129)Adjusted non-interest expense (A) 10,559 11,710 10,202 Net interest income (B) 13,119 12,399 10,747 Non-interest income 3,358 3,371 3,400 Less: losses on sales of investment securities, net 2 1,031 — Less: gains on sales of premises and equipment and foreclosed assets — (273) 9 Adjusted non-interest income (C) $3,360 $4,129 $3,409 Efficiency ratio (A/(B+C)) 64.1% 70.8% 72.1%Non-interest income to total income (C/(B+C)) 20.4% 25.0% 24.1% Total stockholders' equity $142,651 $136,215 $126,671 Less: goodwill and other intangible assets (34,803) (34,955) (35,448)Tangible equity (D) $107,848 $101,260 $91,223 Total assets $1,578,589 $1,574,142 $1,553,217 Less: goodwill and other intangible assets (34,803) (34,955) (35,448)Tangible assets (E) $1,543,786 $1,539,187 $1,517,769 Tangible equity to tangible assets (D/E) 6.99% 6.58% 6.01% Shares outstanding at end of period (F) 5,778,610 5,775,198 5,747,560 Tangible book value per share (D/F) $18.66 $17.53 $15.87

Landmark Bancorp, Inc. Announces Growth in First Quarter 2025 Net Earnings of 43.2%. Declares Cash Dividend of $0.21 per Share

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