Landmark Bancorp, Inc.

Second-quarter 2026 revenue was a record $19.2 million. EPS was $0.88, net income was $5.4 million versus $5.1 million in Q1 2026, and net interest income was $15.1 million, up $57,000 sequentially and $1.4 million year over year. Noninterest income was $4.1 million, up $331,000 sequentially and $469,000 year over year; noninterest expense was $12.0 million, up $63,000 sequentially. Net interest margin on a tax-equivalent basis was 4.22%, down 2 bps sequentially and up 39 bps year over year. Nonperforming loans increased to $13.1 million from $10.4 million, and net charge-offs were $452,000, or 0.17% of average loans, versus 0.13% in Q1. For balance-sheet items, gross loans increased $4.4 million to about $1.1 billion, total deposits declined $17.7 million to $1.3 billion, core deposits rose $11.0 million, tangible book value per share increased to $21.76, book value per share was $27.35, and tangible common equity to assets was 8.44%. Management did not provide explicit full-year earnings guidance, but said it is cautiously optimistic about second-half loan growth and is “cautiously optimistic” that the margin can stay in the 4.20% range for the rest of the year.

CEO Abby Wendel said the quarter reflected the strength of Landmark’s relationship-based banking model, disciplined pricing and prudent balance-sheet management. She emphasized new customer wins, expansion of existing relationships, and investments in talent, including elevating an internal leader for several Kansas regions and onboarding new commercial lenders. Her tone was positive but measured: she repeatedly said the company is “cautiously optimistic,” wants to stay “steady” and “prudent,” and is focused on long-term growth rather than aggressive expansion.

CFO Mark Herpich highlighted that net income rose to $5.4 million, net interest income reached $15.1 million, and tax-equivalent net interest margin was 4.22%. He attributed deposit-cost improvement to lower funding costs and a strategic shift away from brokered deposits toward Federal Home Loan Bank borrowings, noting core deposits grew $11.0 million while total deposits fell because broker deposits declined. He also said stockholders’ equity rose $5.2 million to $166.9 million, capital ratios remain well above well-capitalized levels, and the investment portfolio has $78.6 million of 12-month cash flow rolling off at less than 3%, which could be reinvested at mid-4% yields.

Analysts focused on whether loan growth could build on the second quarter and what would drive the second-half outlook. Wendel said growth should be supported by new and existing customer wins and new commercial lenders, but part of the mix may remain constrained by intentional runoff in mortgages to make room for commercial opportunities. John Rodis also asked about the rise in nonperforming assets; management said the issue was tied to two relationships, one agricultural and one commercial, and that they do not see potential exposure at this time. On margin, Herpich said he is cautiously optimistic the margin can stay in the 4.20% range if the Fed does nothing, helped by lower nonaccrual pressure, core deposit growth and reinvestment of securities at higher yields.