Key Highlights

  • Net earnings of USD 5.5 million rose 11% from USD 4.9 million, equal to diluted EPS of USD 0.89.
  • Net interest margin widened to 4.35%, up 52 basis points from a year earlier and 13 from the prior quarter.
  • Net charge-offs fell to 0.01% of average loans, compared with 0.83% in the third quarter of 2025.
  • Period-end deposits declined USD 59.0 million to USD 1.2 billion, while borrowings increased by USD 49.5 million.

Landmark Bancorp, Inc. (NASDAQ:LARK) reported third-quarter 2026 diluted earnings per share of USD 0.89, in line with a consensus estimate of USD 0.89 and up from USD 0.81 a year earlier. Net earnings were USD 5.5 million, compared with USD 5.4 million in the second quarter and USD 4.9 million in the third quarter of 2025. Net interest income of USD 15.6 million plus non-interest income of USD 3.6 million gave total revenue of about USD 19.2 million.

Return on average assets was 1.36% and return on average equity was 13.06%, while the efficiency ratio stood at 63.0% compared with 61.2% a year earlier. For the first nine months, net earnings reached USD 15.9 million, up 13.5%, and diluted EPS was USD 2.59 against USD 2.29.

Margin Expansion and Expense Trends

Net interest income rose 11.0% from the prior-year quarter and 3.7% from the second quarter. Chief executive Abby Wendel credited disciplined loan and deposit pricing and prudent funding management for the margin improvement. The average tax-equivalent yield on securities grew to 3.80% from 3.35% as lower-rate holdings matured and were reinvested, while total deposit costs fell to 1.29% from 1.59%.

Non-interest income of USD 3.6 million fell USD 466,000 year over year, with gains on loan sales lower by USD 300,000 on reduced secondary market volume. Non-interest expense rose 8.9% to USD 12.3 million, led by a USD 503,000 increase in compensation and benefits tied to strengthening the associate base. Professional fees fell USD 313,000 from the second quarter, which had carried USD 270,000 of one-time forensic accounting and legal costs tied to previously disclosed fraudulent activity by a non-executive officer.

Credit Quality and Balance Sheet Movements

Net charge-offs were only USD 14,000, versus USD 2.3 million in the third quarter of 2025, when a single commercial credit was charged off. The provision for credit losses was USD 205,000 against USD 850,000 a year earlier. The allowance for credit losses reached USD 12.9 million, or 1.19% of gross loans, compared with 1.10% a year ago. Non-performing loans were USD 12.5 million, or 1.16% of gross loans, while loans 30 to 89 days delinquent rose to USD 8.3 million, or 0.77%, from 0.57% in June.

Gross loans decreased USD 22.2 million to USD 1.1 billion, with commercial real estate down USD 12.5 million and construction and land up USD 9.3 million. Deposits fell as public fund balances dropped USD 61.7 million, and the loan-to-deposit ratio rose to 85.6% from 83.5%. Stockholders' equity declined to USD 160.3 million as unrealized securities losses added USD 10.9 million to accumulated other comprehensive loss. The company did not issue numerical guidance.

Benchmarks to Follow

Four readings stand out for the next report. Deposits are first: non-interest-bearing balances were 29.3% of the total after a USD 15.8 million decline in the quarter. Funding is second, with FHLB and other borrowings at USD 133.4 million, up from USD 83.4 million in June. Capital is third: tangible book value per share was USD 20.68 versus USD 21.76 in June, and tangible common equity to assets was 8.09% against 8.44%. Credit is fourth, with delinquencies of 0.77% of gross loans, an allowance coverage of 1.19% and a quarterly dividend of USD 0.21 per share.