3/11/25
Landmark Bancorp, Inc. (LARK) is a small but steady regional bank headquartered in Kansas. Through its subsidiary, Landmark National Bank, it provides a full range of financial services, including personal and business banking, mortgage lending, and wealth management. Unlike the big banks that dominate the financial sector, LARK operates with a strong community focus, serving local businesses and individuals with a more personalized approach.
For dividend investors, LARK stands out as a consistent income stock. While it may not be a high-growth powerhouse, it has proven its ability to generate solid earnings and distribute reliable dividends year after year. Investors looking for steady returns from the banking sector, without the volatility of larger financial institutions, may find this stock worth considering.
📊 Key Dividend Metrics
🟢 Dividend Yield: 3.57% (Slightly above its 5-year average)
🟢 Annual Dividend: $0.84 per share
🟢 Payout Ratio: 35.4% (A comfortable level for sustainability)
🟢 Dividend Growth: Slow but steady increases over time
🟢 Ex-Dividend Date: February 19, 2025
🟢 Dividend Payment Date: March 5, 2025
Dividend Overview
Landmark Bancorp currently offers a dividend yield of 3.57%, which is slightly higher than its five-year average. That tells us the company has been pretty consistent in rewarding shareholders. The payout ratio of 35.4% is in a sweet spot—not too high, so it remains sustainable, and not too low, meaning there’s still room for increases in the future.
For investors who prioritize steady income, LARK’s dividend profile is appealing. It’s not a stock that will dramatically boost your returns overnight, but it’s one that has maintained reliable payouts, even when the broader market has faced turbulence.
Dividend Growth and Safety
One of the strongest indicators of a reliable dividend stock is a manageable payout ratio, and LARK’s sits at a comfortable 35.4%. That means it’s using just over a third of its earnings to pay dividends, leaving plenty of room to reinvest in the business and keep its financials strong.
Profitability metrics also back up the dividend’s safety. The bank’s return on equity (ROE) is 9.88%, which suggests it is effectively using shareholder capital to generate profits. A profit margin of 22.35% further reinforces the bank’s ability to maintain stable earnings.
While LARK’s dividend growth has been on the slower side, its conservative management style ensures payouts remain steady. Investors who prefer safety over aggressive growth may find this approach reassuring.
Chart Analysis
Trend Overview
The stock price for Landmark Bancorp (LARK) has been on an overall upward trajectory since mid-2024, with a strong breakout around October. The price climbed steadily, supported by the 50-day moving average, which showed a sharp incline. However, in recent weeks, the stock has pulled back slightly, now hovering near the 50-day moving average, which has started to curve downward. The 200-day moving average remains in an uptrend, reinforcing the longer-term bullish sentiment.
Moving Averages
The 50-day moving average, shown in orange, had been acting as a support level throughout the rally, but the recent pullback has caused the price to test this level. A slight dip below it in late February suggests some short-term weakness. Meanwhile, the 200-day moving average in blue continues to slope upward, indicating that the longer-term trend remains intact. If the stock finds support around the 50-day moving average, it could resume its upward movement. However, if it breaks below this level with strong volume, further downside toward the 200-day moving average could be possible.
Volume and Market Participation
Volume has fluctuated, with some notable spikes in December and late February. These volume surges often indicate strong buying or selling pressure. The largest spike in December coincided with a price surge, suggesting institutional accumulation. More recently, volume has been moderate, with a few green bars indicating buying interest but also some red bars showing selling pressure. The stock’s ability to hold its price level despite mixed volume signals shows resilience, but further volume confirmation will be key in determining the next move.
Relative Strength Index (RSI)
The RSI, which measures momentum, has been trending in the mid-range, suggesting that the stock is neither overbought nor oversold. It had been in an upward trend for much of the rally but has recently flattened, mirroring the price action. A move above 70 would indicate overbought conditions, while a dip below 30 would suggest the stock is oversold. Right now, the RSI is in a neutral zone, meaning there’s room for movement in either direction.
Recent Price Action
The last five candles show some mixed signals. The most recent candle closed higher than it opened, suggesting some buying interest after a slight dip. However, the previous few sessions showed some selling pressure, with wicks on the upper side of the candles indicating rejection at higher levels. The stock is currently at a key decision point—whether it finds support here or experiences further weakness will depend on upcoming volume and overall market sentiment.
Analyst Ratings
📉 Recent analyst activity for Landmark Bancorp (LARK) has been relatively quiet, with no significant upgrades or downgrades reported in the past few months. 📊 Additionally, there is no consensus price target available from analysts at this time.
📈 Despite the lack of recent analyst ratings, Landmark Bancorp has demonstrated stable financial performance. In its latest earnings report, the company announced earnings per share (EPS) of $0.71 for the quarter, reflecting a net margin of 14.51% and a return on equity of 10.51%.
💰 While the absence of recent analyst coverage means there’s no updated consensus on the stock’s valuation or future price targets, investors can consider the company’s consistent financial results as a positive indicator.
Earnings Report Summary
Landmark Bancorp recently shared its financial results for the fourth quarter and the full year of 2024, showing steady growth and solid financial health. While there were some fluctuations in earnings, the overall picture reflects a company that continues to perform well in a challenging banking environment.
Fourth Quarter Highlights
The bank reported earnings per share (EPS) of $0.57 for the fourth quarter. While this was a slight dip from the previous quarter’s $0.68, it was an improvement from the $0.46 reported a year ago. Net income came in at $3.3 million, up from $2.6 million in the same quarter last year. The return on assets was 0.83%, and the return on equity stood at 9.54%, both solid figures that suggest efficient management of capital.
One important metric, the efficiency ratio, landed at 70% for the quarter. This measures how much of the bank’s revenue is being spent on operating expenses, and while not perfect, it shows the company is maintaining decent cost control.
Full-Year Performance
For the full year, the bank’s EPS reached $2.26, up from $2.13 in 2023, reflecting a steady increase in profitability. Total net earnings climbed 6.3% to $13 million, which is a reassuring sign of consistent financial strength. The return on assets for the year was 0.83%, and the return on equity came in at 10.01%, both showing that the company is generating healthy returns for investors.
Loan and Deposit Growth
The bank’s loan portfolio expanded significantly, growing by $50.5 million in the fourth quarter alone. That’s an annualized growth rate of over 20%, a strong sign that customers are actively borrowing. For the entire year, total loans increased by nearly 11%. Deposits also saw impressive growth, rising by $53.3 million in the fourth quarter, helping the bank fund its lending operations without relying too heavily on short-term borrowing.
Net Interest Margin
The net interest margin, which measures how much the bank earns on its loans compared to what it pays on deposits, rose to 3.51% in the fourth quarter, up from 3.30% in the previous quarter. This increase suggests the bank has been able to manage interest rate pressures effectively.
Expenses and Credit Quality
On the expense side, the bank saw an increase in non-interest expenses, mainly due to higher professional fees and rising compensation costs. While costs are up, the investments in personnel and business operations should help drive future growth. Credit quality remained stable, with minimal charge-offs, which indicates that the bank is managing its loans well and not facing significant defaults.
Stockholder Returns and Dividends
Stockholders’ equity declined slightly to $136.2 million, largely due to unrealized losses on investment securities. However, the bank remains well-capitalized. In terms of dividends, the board declared a cash dividend of $0.21 per share, keeping up with its history of rewarding shareholders. The company also issued a 5% stock dividend in December, marking the 24th consecutive year it has done so, reinforcing its long-term commitment to investors.
Final Thoughts
Landmark Bancorp had a solid year, with steady earnings growth, strong loan and deposit expansion, and a well-managed balance sheet. The slight dip in fourth-quarter earnings wasn’t unexpected given broader economic conditions, but the overall trends remain positive. With a focus on maintaining profitability while rewarding shareholders, the bank is positioned well heading into the next year.
Financial Health and Stability
Strong financials are essential for a dividend-paying company, and LARK checks a lot of the right boxes.
✅ Profitability: With a profit margin of 22.35%, the bank retains a solid portion of its revenue as earnings. That’s a healthy margin for a regional bank.
✅ Revenue Growth: The company posted a 9% year-over-year revenue increase. That’s an encouraging sign, especially in a market where some financial institutions are struggling to grow.
✅ Debt Position: The bank carries $88.5 million in debt but also holds $24.39 million in cash. While banks often operate with leverage, it’s good to see a reasonable cash cushion in place.
✅ Book Value Per Share: At $23.59, the stock is currently trading right around its book value. That suggests it’s fairly valued, which is often a positive sign for long-term investors.
Overall, LARK’s financials are solid. It’s not a flashy growth stock, but it has the fundamentals that make for a strong dividend-paying company.
Valuation and Stock Performance
At its current price of $23.75, LARK is trading at a price-to-book (P/B) ratio of 1.00. For a bank, that’s a pretty fair valuation. Some larger financial institutions trade at a premium to their book value, but for a smaller regional player like Landmark Bancorp, this kind of pricing is expected.
The trailing price-to-earnings (P/E) ratio is 10.41, which is reasonable for a financial stock. It suggests that the company is neither overvalued nor deeply discounted. Given its history of stable earnings and consistent dividends, this valuation makes sense.
Over the past year, the stock has traded between $17.05 and $26.75, with the recent price sitting closer to the higher end of that range. The 50-day moving average is at $24.10, while the 200-day moving average is $20.91, indicating some recent strength in the stock price. For dividend investors, gradual price appreciation alongside a steady income stream is a desirable combination.
Risks and Considerations
While LARK has a lot going for it, no stock is without risks. Here are a few things investors should keep in mind:
🔸 Interest Rate Sensitivity: Like all banks, Landmark Bancorp’s earnings are influenced by interest rates. If rates decline, net interest margins could tighten, potentially impacting profits and dividends.
🔸 Regional Focus: Since LARK primarily operates in Kansas, its fortunes are closely tied to the local economy. If the region faces economic difficulties, it could affect loan growth and overall profitability.
🔸 Modest Growth: While the bank is financially stable, it doesn’t offer high growth potential. Investors looking for rapid dividend increases may find the pace too slow.
🔸 Small Market Cap: With a market capitalization of $135.89 million, LARK is a micro-cap stock. That means it has lower trading volume and can experience bigger price swings compared to larger banks.
While these risks are worth considering, they don’t necessarily mean the stock is a bad investment. It just means investors should be aware of what they’re getting into—stability and consistency rather than explosive growth.
Final Thoughts
Landmark Bancorp is a solid choice for investors who want a reliable dividend stock in the banking sector. The 3.57% yield, combined with a low payout ratio and steady profitability, makes it an attractive pick for those who value consistency over speculation.
The company’s financial position is strong, with a solid balance sheet and manageable debt levels. Its valuation suggests the stock is fairly priced, neither too expensive nor deeply undervalued. While it may not offer the rapid growth some investors seek, it delivers what many dividend investors prioritize—stability and dependable income.
For those looking to add a steady regional bank to their dividend portfolio, LARK presents a compelling option.
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