Landmark Bancorp (LARK) 2026 年第三季財報電話會議：淨息差達 4.35%

重點摘要

• 2026 年第三季淨利從 2026 年第二季的 540 萬美元及去年同期的 490 萬美元增加至 550 萬美元。稀釋後每股盈餘 (EPS) 為 0.89 美元。
• 營收達到創紀錄的 1,920 萬美元，同時稅額等值淨利息收益率季增 13 個基點，年增 52 個基點至 4.35%。
• 由於還款金額超過新放款額，本季放款總額減少 2,220 萬美元至 11 億美元。管理層表示，償還金額增加屬於個別借款人狀況，而非廣泛趨勢。
• 總存款減少 5,900 萬美元至 12 億美元，主因是公用基金存款出現 6,170 萬美元的季節性減少。若扣除公用基金與經紀存款，核心客戶存款增加了 490 萬美元。
• 信貸品質保持總體穩定：不良貸款下降至 1,250 萬美元，佔放款總額的 1.16%；年化淨沖銷額下降至平均貸款金額的 0.01%。
• Landmark Bancorp 宣布發放每股 0.21 美元的現金股利以及 5% 的股票股利。

核心財務結果

2026 年前九個月，淨利從 2025 年同期的 1,400 萬美元（或稀釋後每股 2.29 美元）增至 1,590 萬美元（或稀釋後每股 2.59 美元）。

業務與營運表現

淨利息收入得益於獲利資產收益率提升及存款成本下降。平均放款收益率上升至 6.46%，而證券投資組合收益率從 2026 年第二季的 3.66% 上升至 3.80%。存款成本下降至 1.29%，無息存款佔總存款比例維持在大約 29%。

由於還款額超過新承做放款額，放款餘額有所收縮。商業不動產貸款減少 1,250 萬美元，住宅不動產貸款減少 1,060 萬美元，商業貸款減少 640 萬美元。營建與土地開發貸款增加 930 萬美元，抵銷了部分降幅。

較高的利率放緩了房貸發行量，導致出售貸款收益較上季減少 59.3 萬美元。這是非利息收入下降的主因。

費用增加的主因是薪酬福利、營業場所與設備費用以及其他支出增加。Landmark 繼續投資於科技、人才培訓、數位能力、信貸管理與風險監控。

該公司在本季增加了聯邦住房貸款銀行 (Federal Home Loan Bank) 的融資資金，借款總額增加 4,950 萬美元。管理層將此決定歸因於有利的價格與市場條件。截至 2026 年 9 月 30 日，貸存比為 85.6%。

管理層指引

管理層預期公用基金存款的季節性流出將在第四季逆轉。

在放款成長方面，執行長 Abigail Wendel 表示，管理層對實現有機成長保持審慎樂觀。她將第三季的還款描述為不均勻且因借款人而異，同時承認還款時機仍然難以預測。

財務長 Mark Herpich 表示，未來一年 Landmark 的資產敏感度稍微偏高。管理層認為資產負債表的設定有助於從升息中獲益，並可能進一步擴展淨利息收益率，儘管並未提供具體的量化預測。

風險與關注焦點

• 逾期 30 至 89 天的放款從 6 月 30 日的 630 萬美元（佔放款總額的 0.57%）增加至 830 萬美元（佔 0.77%）。管理層將此增加主要歸因於一名商業不動產借款人，目前該借款人仍受密切監控。
• 隨著利率上升，本季證券投資組合的未實現淨損失稅後增加 1,090 萬美元至 1,850 萬美元。這導致股東權益減少 660 萬美元至 1.603 億美元。
• 由於利率上升，本季房貸發行量與出售貸款收益有所減弱。
• 還款金額超過新放款額，儘管新承做貸款收益率較高，仍導致放款總額餘額減少。
• 管理層表示，仍需進一步強化放款投資組合、核貸標準與銀行的信貸文化。

分析師問答焦點

管理層表示，貸款還款金額增加並不代表普遍趨勢。其中一筆還款涉及由一家較大型銀行整合的參貸案，Landmark 未來可能有機會與該新機構再次合作參貸。

該公司確認第三季的淨利息收益率擴增屬於核心收益擴展。沒有提前解約違約金、還款手續費或其他異常項目支撐淨利息收益率。

管理層還將 Landmark 描述為未來一年溫和的資產敏感型，而非在任何方向上定位過於強烈。

法說會完整逐字稿

完整財報電話會議逐字稿

管理層陳述

Operator

Hello, everyone. Thank you for joining us, and welcome to the Landmark Bancorp Q3 Earnings Call. [Operator Instructions] I will now hand the conference over to Shelley Reed, Head of Corporate Strategy and Development and Head of Investor Relations. Shelley, please go ahead.

Shelley Reed

Thanks, Trevor. Good morning, everyone, and welcome to Landmark Bancorp's Third Quarter Earnings Conference Call. Joining me today is our President and CEO, Abby Wendel; and our Chief Financial Officer, Mark Herpich. During today's call, we may make statements that constitute projections, plans, objectives, future performance, beliefs, expectations or similar forward-looking statements. These statements involve risks and uncertainties, which should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. We caution that such statements are predictions only and that actual results may differ materially.

We include more information on these factors in our earnings release furnished with our Form 8-K yesterday as well as our Form 10-K and Form 10-Q filings and subsequent filings with the SEC. Additionally, all statements, including forward-looking statements, speak only as of the date they're made, and Landmark undertakes no obligation to update any statement in light of new information or future events. Also, our remarks may reference certain non-GAAP financial metrics, which we believe provide useful information to investors.

Additional disclosures regarding non-GAAP metrics, including the reconciliation of those non-GAAP metrics to GAAP, are contained in our earnings release, which we filed yesterday with the SEC and are also available in our Investors section of our website at banklandmark.com. We caution that these non-GAAP financial metrics should not be viewed as a substitute for operating results determined in accordance with GAAP as contained in our earnings release and other filings with the SEC. A replay of this call will be available through November 5, 2026. Access information can be found in our earnings release. I will now turn the conference call over to our President and Chief Executive Officer, Abby Wendel.

Abigail Wendel

Thanks, Shelley. Good morning, everyone, and thank you for joining us today. Landmark delivered solid third quarter results driven by net interest margin expansion, stable credit quality and a strong balance sheet, reflective of our relationship-driven approach to banking, serving our communities and our core customer base. Net income increased to $5.5 million for the third quarter and diluted earnings per share increased to $0.89. Year-to-date net income increased to $15.9 million and diluted earnings per share increased to $2.59 compared to net income of $14 million or $2.29 per diluted share for the 9 months ended September 30, 2025.

Return on assets increased to an attractive 1.36% quarter-over-quarter and has increased significantly from 1.21% for the third quarter of 2025. Revenues totaled a record $19.2 million, driven by an increase in net interest income, demonstrating our disciplined approach to loan and deposit pricing. Although loan payoffs outpaced new loan production this quarter, we successfully grew interest income by maintaining pricing and underwriting practices reflective of the current market environment. New loan originations were at yields exceeding those of maturing and paid off loans, which contributed to improved earning asset performance.

Yield on average loans for the quarter increased to 6.46%. The decrease in loan balances was driven in part by continued declines in 1-4 family residential and consumer loan portfolios, which accounted for more than half of the overall decline. On the funding side, the decrease in deposits reported for the third quarter was due in part to a seasonal outflow of public fund deposits. We would expect this trend to reverse in the fourth quarter. We also made the decision in the quarter to replace this funding primarily with FHLB borrowings based on market dynamics and favorable pricing.

Our disciplined approach to deposit pricing enabled us to further reduce our cost of deposits to 1.29%. Noninterest-bearing deposits remained approximately 29% of total deposits, underscoring the quality of our deposit base and providing a meaningful competitive advantage as we navigate the current economic environment. Our core retail and commercial customer base continues to grow, which positions us favorably to support future balance sheet and revenue growth. Turning to fee income. We recorded noninterest income of $3.6 million during the third quarter of 2026, which was down compared to the second quarter of 2026 and the third quarter of 2025 due primarily to a decrease in gain on sale of mortgage loans.

The increase in interest rates during the third quarter slowed mortgage production. Expenses increased in the third quarter, driven by increases in compensation and benefits expense as well as continued technology investments. Investing in talent and talent development remains a key component of our strategy, helping us build a deep and sustainable pipeline of leadership and client-focused expertise. We are encouraged by our recent success in attracting and promoting emerging talent and remain committed to cultivating the next generation of bankers and leaders.

At the same time, we continue to selectively add experienced professionals across our footprint who share our commitment to relationship banking and can contribute to the ongoing expansion to our full-service banking model. This includes the recent addition of a couple of experienced executives to our leadership team as we further strengthen our credit and risk management capabilities and continue to scale in a prudent and profitable manner. Before I turn the call over to Mark to discuss our results in more detail, I wanted to quickly touch on our asset quality.

I'm pleased with our stable asset quality trends this quarter, including a slight decrease in nonaccrual loans and excellent charge-off levels of 0.01% of average loans. Our provision decreased in the third quarter versus the second quarter of 2026, while increasing our coverage of total loans and nonperforming loans. But we still have work to do on our loan portfolio and overall credit approach as we elevate expectations and strengthen our credit culture. We are committed to building a bank with sound underwriting and a credit-first mindset.

Lastly, I'm pleased to report that our Board of Directors declared a cash dividend of $0.21 per share payable on November 27, 2026, to shareholders of record as of November 12, 2026. This dividend marks the company's 101st consecutive quarterly cash dividend since the formation of the holding company in 2001, underscoring our long-standing commitment to delivering value to shareholders. The Board of Directors also declared a 5% stock dividend to be issued on December 16, 2026, to shareholders of record on December 2, 2026. This is the 26th consecutive year that Landmark has declared a 5% stock dividend. I will now turn the call over to Mark Herpich, our Chief Financial Officer, who will discuss our financial results in greater detail.

Mark Herpich

Thanks, Abby, and good morning to everyone. While Abby has just provided a highlight of our overall strong financial performance this year, I'll provide some further details on our third quarter results. Net income in the third quarter of 2026 increased to $5.5 million compared to $5.4 million in the second quarter of 2026 and $4.9 million in the third quarter of 2025, mainly due to continued growth in net interest income. In the third quarter of 2026, net interest income totaled $15.6 million, an increase of $562,000 compared to the second quarter of 2026, driven by increased earning asset yields, partially offset by higher funding costs.

Net interest income also grew $1.5 million compared to the same period of the prior year due primarily to lower deposit costs. Total interest income on loans increased to $17.5 million in the third quarter, while interest income on investments increased to $3.3 million. Average loans decreased by $12.3 million in the third quarter of 2026, while tax equivalent yield on the loan portfolio increased to 6.46% and the average yield on the securities portfolio increased to 3.80% from 3.66% in the second quarter of 2026. Interest expense on deposits in the third quarter of 2026 decreased $62,000 from the prior quarter due to lower cost of deposits, while average deposit balances decreased to $1.3 billion in the third quarter.

The decline in deposits relates to a seasonal decline in public fund deposits. The average rate on interest-bearing deposits decreased slightly to 1.81%, down 1 basis point from the prior quarter, reflecting lower deposit costs. Additionally, we strategically elected to utilize our Federal Home Loan Bank borrowing line more heavily during the third quarter. Interest expense on borrowed funds increased by $100,000 compared to the prior quarter due to higher average balances and consistent borrowing rates. Landmark's net interest margin on a tax equivalent basis increased 13 basis points to 4.35% in the third quarter of 2026 as compared to the second quarter of 2026 and improved 52 basis points as compared to the third quarter of 2025.

Noninterest income totaled $3.6 million this quarter, a decrease of $493,000 compared to the prior quarter and a decrease of $466,000 compared to the third quarter of 2025. The decrease in comparison to the prior quarter resulted primarily from a $593,000 decrease in gains on the sale of loans due to a decrease in the volume of loans sold in the secondary market during the third quarter of 2026. Noninterest expense for the third quarter of 2026 totaled $12.3 million, an increase of $292,000 compared to the prior quarter. This increase related primarily to increases of $238,000 in compensation and benefits expense, $178,000 in occupancy and equipment expense and $148,000 in other expense.

Partially offsetting these increases was a decrease of $313,000 in professional fees. This quarter, we recorded tax expense of $1.3 million, resulting in an effective tax rate of 19.3% as compared to tax expense of $1.3 million in the second quarter of 2026 as well for an effective tax rate of 19.7%. Gross loans decreased $22.2 million in the current quarter compared to the previous quarter and totaled $1.1 billion at quarter end. Average loans declined by $12.3 million in the current quarter as compared to the prior quarter. As of September 30, 2026, we experienced decreases in our commercial real estate portfolio of $12.5 million, our residential real estate portfolio of $10.6 million and commercial loan portfolio of $6.4 million, which were partially offset by increases in our construction and land development portfolio of $9.3 million.

Investment securities increased $2.5 million during the third quarter of 2026, mainly due to the reinvestment of maturities and cash flow from the portfolio. Our investment portfolio has an average duration of 4.8 years with projected 12-month cash flow of $60.4 million and a roll-off yield of less than 3% at September 30, 2026, which is lower than the current yields available on new investments purchased. Unrealized net losses on our investment portfolio increased by $10.9 million during the quarter to $18.5 million net of tax as a result of higher interest rates. Deposits totaled $1.2 billion at September 30, 2026, a decrease of $59.0 million in the third quarter compared to the prior quarter.

This quarter, public funds deposits declined by $61.7 million related to seasonal declines. The public fund deposit decreases were offset by growth in core customer deposits. Excluding the decline in public fund deposits and broker deposits, core customer deposits actually increased $4.9 million during the quarter. Our total borrowings increased by $49.5 million during the quarter as we continue to lever lower cost funding from other borrowing sources like the Federal Home Loan Bank. Our balance sheet continues to provide sufficient liquidity and flexibility to fund future growth as our loan-to-deposit ratio totaled 85.6% and securities were 21.8% of total assets at September 30.

Stockholders' equity decreased $6.6 million during the third quarter to $160.3 million at September 30, driven by higher other comprehensive losses due to the increase in interest rates, offset by retained earnings net of common stock cash dividends. Our book value was $26.24 per share at September 30, 2026, compared to $27.35 at June 30. Our tangible book value per share ended the quarter at $20.68, a decrease from June 30, 2026, but an increase of 3.6% compared to a year ago September 30, 2025. Our consolidated and bank regulatory capital ratios as of September 30, 2026, are strong and continue to exceed the regulatory levels required to be considered well capitalized.

Turning to credit quality. Nonperforming loans decreased $572,000 during the quarter to $12.5 million or 1.16% of gross loans compared to $13.1 million or 1.18% of gross loans at June 30, 2026. Loans delinquent 30 to 89 days and still accruing interest totaled $8.3 million or 0.77% of gross loans at September 30 compared to $6.3 million or 0.57% at June 30. The increase in delinquent loans was primarily driven by one borrower in the commercial real estate portfolio, which we continue to monitor closely. Net loan charge-offs during the third quarter totaled $14,000 compared to $452,000 during the second quarter.

On an annualized basis, net charge-offs represented approximately 0.01% of average loans compared to 0.17% of average loans in the prior quarter. Overall, we are pleased with our low net charge-off rates, which remain manageable relative to the size of the portfolio. The allowance for credit losses totaled $12.9 million or 1.19% of total gross loans at September 30. We recorded a $250,000 provision for credit losses for portfolio loans and reversed $45,000 of provision related to loan commitments during the quarter. We believe the allowance remains appropriate based on the composition of the portfolio, identified credit trends and our ongoing review process.

Overall, nonperforming loans decreased during the quarter, reflecting progress made on the borrower-specific situations that we have been actively monitoring and managing. Our focus remains on the timely identification of emerging issues, proactive portfolio management and working towards the resolution of challenged credits. I will now turn the call back over to Abby.

Abigail Wendel

Thank you, Mark. I think we are now in a position to take questions.

Operator

[Operator Instructions] Your first question comes from the line of John Rodis with Brean Capital.

分析師問答

John Rodis

Abby, maybe a question for you. If not, I guess it's for Mark. But just on the loan performance during the quarter, you mentioned higher payoffs. Just your thoughts as you look out to the fourth quarter into early next year. Do you think -- I know payoffs are obviously hard to predict, but your thoughts on showing some net loan growth going forward?

Abigail Wendel

Yes. Thanks for the question. Your thinking is where we're aligned with those thoughts as well. And I guess a couple of things I'd say is when you look at the long-run performance of what we're doing here and where we think we're going, we're still optimistic. You know me, I'm always a little bit cautiously optimistic. But in the third quarter, specifically, we had some payoffs that -- there's kind of lumpy.

There's not anything that indicates a trend. One of those was related to one specific relationship where some of that may be coming back. And then in another case, we did have some turnover in one of our markets, and I think that has precipitated some payoff, but it's not anything that has me nervous about the future. And I do think we're on still the same trajectory to be able to deliver organic growth.

John Rodis

Okay. That makes sense. And just given the higher level of payoffs in the quarter, were there any, I guess, payoff fees or anything like that, that went through spread income and benefited the margin this quarter?

Mark Herpich

There were not. These were more payoffs when they hit maturity or in the one case that Abby alluded to a participation that was purchased that got consolidated a larger bank. We think we have an opportunity to get back in as a participant with the new bank. But during the quarter, we experienced a payoff of that individual credit.

John Rodis

Okay. So Mark, I guess, said another way, the margin expansion this quarter was all core, I guess. There was nothing unusual or anything.

Mark Herpich

Yes. We didn't have any early termination penalties or anything going through the margin. It was core regular routine earnings net of costs.

John Rodis

Okay. And can you just remind us as far as the bank's impact from a rising rate environment given the Fed's move, I guess, a few weeks ago and potentially moving later this year?

Mark Herpich

Yes. We're slightly asset sensitive at this point over the next year, John. I think we -- it's not a strong asset position, but we feel like we're well situated to take advantage and have some margin increase over the upcoming year.

Operator

We have reached the end of our Q&A session. I will now pass the call back to Abby Wendel for closing remarks.

Abigail Wendel

Thank you, Trevor. To recap, we are pleased with our profitability in the first 9 months of 2026, which reflects continued earnings growth, strong profitability and disciplined loan and deposit pricing. We remain focused on driving long-term growth through attracting, training and retaining talented bankers, making continued investments in process improvements and operational efficiency and upgrading our digital capabilities.

As we continue to position the bank for the future, we are thoughtfully reevaluating long-standing practices and identifying opportunities to enhance how we serve our customers and communities. Our objective is to build scalable, responsive operating models that improve the client experience while strengthening credit administration, risk oversight and overall execution. These efforts reinforce our commitment to profitable relationship-based banking and further support our ability to deliver sustainable growth and shareholder value over the long term.

I want to thank our Landmark associates for their dedication and commitment. It's because of them that Landmark continues to deliver high-quality banking solutions to our customers and communities. If you have additional follow-up questions regarding today's call, please refer to our earnings release for Investor Relations and CFO contact information. Thank you for joining us today and for your continued interest in Landmark. We look forward to updating you on our progress next quarter.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.