Landmark Bancorp, Inc (LARK) has reported a 19.27 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $2.09 million, or $0.53 a share in the quarter, compared with $2.58 million, or $0.68 a share for the same period last year.
Revenue during the quarter dropped 8.19 percent to $9.79 million from $10.66 million in the previous year period. Net interest income for the quarter dropped 0.76 percent over the prior year period to $6.52 million. Non-interest income for the quarter fell 20.13 percent over the last year period to $3.27 million.
Net interest margin contracted 14 basis points to 3.40 percent in the quarter from 3.54 percent in the last year period.
Michael E. Scheopner, president and chief executive officer of Landmark, commented: "Landmark’s net earnings of $9.0 million during 2016 reflects the continued growth of our community banking relationships across Kansas, generating strong core earnings, although lower than the prior year. Mortgage originations and related gains on sales of loans were lower during 2016 than in 2015, and in 2015 we recorded a credit to the provision for loan losses of $700,000 following a large recovery on a previously charged-off loan, compared to a provision for loan losses of $500,000 in 2016. We are actively recruiting additional mortgage originators to address our reduced mortgage activity following the departure of several mortgage lenders this past spring. During 2016, return on average assets was 1.00% compared to 1.21% in 2015. Return on average equity was 10.34% during 2016, compared to 13.81% in 2015. We again increased our capital ratios and book value per share in 2016. We are pleased with the strong performance, despite the low interest rate environment and economic uncertainties. We believe Landmark’s risk management practices and capital strength continue to position us well for long-term growth. Landmark’s commitment to community banking ��" meeting the financial needs of families and businesses with service that is both personal and high-tech ��" continues to build our presence across Kansas."
Assets outpace liabilities growth
Total assets stood at $911.38 million as on Dec. 31, 2016, up 3.76 percent compared with $878.38 million on Dec. 31, 2015. On the other hand, total liabilities stood at $826.43 million as on Dec. 31, 2016, up 3.59 percent from $797.81 million on Dec. 31, 2015.
Loans, deposits remain almost stable
Net loans stood at $420.46 million as on Dec. 31, 2016, up 0.13 percent compared with $419.92 million on Dec. 31, 2015. Deposits stood at $741.52 million as on Dec. 31, 2016, up 3.75 percent compared with $714.73 million on Dec. 31, 2015.
Investments stood at $390.86 million as on Dec. 31, 2016, up 9.20 percent or $32.93 million from year-ago. Shareholders equity stood at $84.95 million as on Dec. 31, 2016, up 5.44 percent or $4.38 million from year-ago.
Return on average assets moved down 26 basis points to 0.92 percent in the quarter from 1.18 percent in the last year period. At the same time, return on average equity decreased 344 basis points to 9.45 percent in the quarter from 12.89 percent in the last year period.
Nonperforming assets moved up 27.05 percent or $0.86 million to $4.02 million on Dec. 31, 2016 from $3.17 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.44 percent in the quarter, up from 0.36 percent in the last year period.
Equity to assets ratio was 9.32 percent for the quarter, up from 9.17 percent for the previous year quarter. Book value per share was $21.96 for the quarter, up 1.06 percent or $0.23 compared to $21.73 for the same period last year.
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