Updated 5/28/25
Landmark Bancorp, Inc. is a regional bank based in Kansas with a long-standing reputation for consistent financial performance and shareholder returns. The company has recently posted a strong first quarter, with net income of \$4.7 million and a 69% increase in quarterly earnings, supported by solid loan growth and improved operating efficiency. Its leadership team, now under CEO Abby Wendel, continues to prioritize smart expansion, disciplined lending, and customer-focused service.
Recent Events
Landmark’s share price has taken a solid step up over the past year, jumping nearly 58%. For a smaller regional bank, that’s a serious move. But it didn’t happen without reason. Earnings growth in the most recent quarter shot up 69.2% year-over-year. In a sector that’s often slow and steady, this kind of leap stands out.
Digging into the numbers, revenue was up 19%, and the company held an operating margin above 36%. Even more impressive, the net profit margin reached 24.55%. Those margins show a bank that’s keeping a firm grip on its cost structure while growing its business. That’s not easy in today’s rate environment.
Return on equity came in at 11.08%, showing Landmark is making effective use of shareholder capital. They’re not just sitting on deposits — they’re putting them to work.
In terms of capital return, LARK recently declared another quarterly dividend, sticking to its pattern of reliable payouts. With an ex-dividend date of May 21 and a payment date of June 4, the bank continues to show that it values its shareholders with steady, predictable cash returns.
Key Dividend Metrics
📈 Dividend Yield: 2.91% (Forward)
💵 Annual Dividend: $0.84
📊 Payout Ratio: 31.27%
🧱 5-Year Average Yield: 3.49%
📅 Next Dividend Date: June 4, 2025
🔁 Last Split: 5-for-100 on December 2, 2024
📉 Beta: 0.26 (Low volatility)
Dividend Overview
Landmark’s forward dividend yield sits at 2.91%, which on the surface might not seem exciting. But it’s important to look at the context. That payout is supported by strong earnings, with a modest payout ratio of just over 31%. In simple terms, Landmark is paying out less than a third of its earnings as dividends — that leaves a healthy buffer to reinvest, pay down debt, or just ride out any rough patches.
With earnings per share at $2.59 and an annual dividend of $0.84, the math checks out cleanly. There’s no sense of strain in the payout — this isn’t a bank stretching to maintain appearances. The dividend looks well-supported, and the balance sheet reinforces that.
Interestingly, the five-year average yield comes in higher, at 3.49%. That tells you that the recent price rise has compressed the yield a bit. For newer investors, it means the income stream might be a touch lighter than in years past, but for those who’ve been holding, the yield on cost is likely looking very comfortable right now.
The company has also occasionally thrown in small dividend increases or even special dividends. Nothing overly dramatic, but enough to suggest that management views the dividend as a key part of the total return story.
Dividend Growth and Safety
There’s a lot to like about the structure and sustainability of Landmark’s dividend. The low payout ratio stands out immediately — it provides room to grow without putting pressure on the bank’s financials.
Leverage is in check, too. Total debt sits at $76.7 million, while cash on hand is over $26 million. That’s not excessive, and for a bank, it’s a sign of financial discipline. It’s not overleveraged, and it hasn’t had to take on big obligations to keep the dividend going.
On the return side, the company is producing a nearly 1% return on assets and over 11% on equity. Those are healthy numbers, particularly in a sector that’s seen margin compression due to higher deposit costs and tighter lending standards.
Add in a beta of 0.26, and what you’ve got is a very low-volatility income stock. That doesn’t mean it won’t move, but it does suggest the ride is a bit smoother — and that matters for income investors who prefer stability over drama.
Dividend growth hasn’t been flashy, but it’s been reliable. That’s the core value here. Landmark isn’t trying to outpace the market with wild raises or massive one-time payouts. It’s about measured increases, reinvested profits, and a clear long-term view. Investors who appreciate steady income, backed by real earnings and thoughtful management, will find a lot to like in what Landmark is doing.
Cash Flow Statement
Landmark Bancorp reported operating cash flow of $19.4 million over the trailing twelve months, which reflects solid internal generation of cash from its core banking operations. This level of cash flow signals that the company is effectively converting its net income into real liquidity, an important metric for dividend sustainability and overall financial health. It’s also a good sign that management isn’t overly reliant on financing to support day-to-day functions or shareholder returns.
There’s no figure reported for levered free cash flow, which means we don’t have a direct look at what’s left after interest and capital expenditures. Still, with a modest payout ratio and no signs of aggressive capital spending, it’s likely that cash availability remains stable. The absence of enterprise value and EBITDA figures does limit a deeper analysis on valuation from a cash flow perspective, but what’s clear is that Landmark is operating within its means, with enough cushion to maintain its dividend and absorb fluctuations in interest income or credit costs.
Analyst Ratings
Landmark Bancorp recently saw a shift in how analysts are viewing the stock. On May 22, it received an upgrade from “hold” to “buy” following a strong first-quarter report. Earnings came in at $4.7 million, and return on equity reached 10.51% — signs that the bank continues to manage its operations with solid efficiency. 📈 Analysts pointed to steady revenue growth and good control over expenses as reasons for the improved outlook.
Just a few days later, on May 28, a different take emerged. Another firm downgraded the stock back to a “hold” rating. The move reflected concerns that the current valuation might be a bit stretched after the stock’s impressive run-up this year. 🚨 Analysts also flagged recent insider selling as a signal that growth may not be as strong going forward, or at least that there’s caution among those closest to the business.
There’s currently no consensus price target published for LARK, but the stock has been hovering near its 52-week high of $31.04. That’s a big climb from its low of $17.53. 🏁 While the financials look good, the upgrade and downgrade tell a story of mixed sentiment — with analysts weighing current strength against valuation risk.
Earning Report Summary
Landmark Bancorp kicked off 2025 with a solid performance that should give shareholders some confidence. For the first quarter, the bank pulled in $4.7 million in net income, a noticeable jump from the same time last year. Earnings per share landed at $0.81, which is up from $0.57 in the prior quarter. That’s not just a strong quarter—it’s one of those results that quietly confirms the bank’s business is on track.
Growth Where It Matters
Net interest income saw a healthy boost, climbing 22% year-over-year to $13.1 million. That kind of lift came from better loan yields combined with a drop in interest expenses, a combination that worked in the bank’s favor. Loan growth continued its steady pace, with total gross loans increasing by $22.6 million. Commercial real estate, residential mortgages, and construction lending led the way, which makes sense given the economic activity in Landmark’s regional markets.
Deposits also ticked higher by $7.1 million for the quarter, a modest but meaningful sign that the bank’s customers continue to stick around and grow their relationships.
Keeping Costs in Check
The bank also made some real progress on managing expenses. Their efficiency ratio came down to 64.1% from 68.4%, and noninterest expenses dropped by about $1.1 million. Some of that came from earlier moves to consolidate a few branches, a strategy that seems to be paying off without sacrificing service.
Credit quality stayed in decent shape. Net charge-offs were just $23,000, though there was a slight uptick in loans that were past due—up to $10 million from $6.2 million last quarter. Nothing alarming, but it’s something to keep an eye on in the quarters ahead.
Strong Capital and Steady Payouts
On the balance sheet side, Landmark is looking healthy. Their leverage ratio came in at 9.2%, and the total risk-based capital ratio stood at 13.6%. Both of those numbers give the bank some breathing room. Shareholder equity grew to $142.7 million, and book value per share edged up to $24.69.
The dividend stayed steady, with the company declaring its 95th consecutive quarterly payout. At $0.21 per share, it’s a clear message that management remains committed to returning value to shareholders—even while navigating a rising interest rate environment.
Looking Ahead
Abby Wendel, Landmark’s President and CEO, was optimistic in her remarks. She highlighted strong demand for loans—especially in commercial real estate and mortgage lending—and pointed out how their core markets are giving them room to grow. With expense controls in place and credit quality holding, the tone from the top was one of quiet confidence.
It was a quarter that didn’t need to be flashy to be effective. For investors looking for stable, well-managed growth, Landmark seems to be staying the course.
Management Team
Landmark Bancorp is led by a management team that brings together a blend of seasoned banking experience and a fresh perspective on strategic growth. At the top is Abby M. Wendel, who stepped into the role of President and CEO in March 2024. Her background includes leadership in consumer banking and strategy at UMB Bank, and she brings a strong understanding of both operational execution and long-term planning. Her leadership is already making its mark, with a clear focus on improving efficiency and maintaining a customer-first approach.
Backing her is Mark A. Herpich, Executive Vice President, Secretary, and Chief Financial Officer. With Landmark since 2001, Herpich is a steady hand who knows the institution inside and out. His expertise in financial oversight and risk management gives the company a stable financial backbone. Together, Wendel and Herpich form a leadership pair that balances vision with grounded experience, aiming to guide Landmark forward without losing touch with its community bank roots.
Valuation and Stock Performance
Landmark Bancorp’s stock has been on a notable upward climb, with its current price sitting around $28.84, up significantly from its 52-week low of $17.53. This rise reflects renewed investor interest and a positive response to the company’s operational momentum over the past year. With a 52-week high of $31.04, the stock is trading near peak levels, indicating strong market sentiment.
The valuation remains modest, with a trailing P/E ratio of 11.14. That suggests the market is still pricing Landmark reasonably relative to earnings. The price-to-book ratio of 1.17 indicates the stock is trading just slightly above book value, which is typical for a healthy, growing bank with strong fundamentals.
Its market cap now stands at roughly $166.78 million, keeping it firmly in the small-cap space but with room for potential expansion. A beta of 0.26 also highlights its lower volatility compared to the broader market. For income-focused investors and those looking for steady appreciation rather than flashy moves, this level of stability adds appeal.
Risks and Considerations
Despite its strengths, Landmark Bancorp isn’t without its share of risks. Being a regional bank primarily focused in Kansas, it faces concentration risk tied to local economic conditions. If that regional economy slows or faces sector-specific stress—such as agricultural downturns—it could affect both loan performance and deposit growth.
Interest rate fluctuations are another factor to watch. While the bank has managed its interest rate spread well so far, shifts in policy or market rates could impact its net interest margin, especially if deposit costs rise faster than lending rates.
There’s also some early signs of credit pressure. Loans that are 30 to 89 days past due ticked up this past quarter, and while net charge-offs remain low, it’s a metric that bears close attention. Even a small deterioration could influence future earnings if provisioning for credit losses increases.
Competition is always present. While Landmark has carved out a strong niche in its markets, larger institutions and fintech companies are always looking to expand their reach. Keeping pace with technological changes and maintaining a personal, community-driven service model will be crucial for continued relevance.
Final Thoughts
Landmark Bancorp has all the qualities investors often look for in a small-cap financial: strong leadership, consistent performance, and a steady dividend history. With Abby Wendel now in place as CEO and Mark Herpich continuing to provide financial oversight, the leadership bench appears well-prepared for the challenges and opportunities ahead.
The stock’s strong performance over the past year has brought attention to what had been a relatively quiet name. It’s not overpriced, yet it has appreciated meaningfully—something that signals a solid underlying business. Management has maintained discipline both in cost controls and loan quality, even as they’ve managed to grow the balance sheet and expand margins.
Risks are part of the story, as they always are with financials, but they appear manageable for now. Landmark’s continued focus on operational efficiency, customer service, and smart lending gives it a solid foundation moving forward.
For investors interested in dependable regional banks with real earnings and consistent dividends, Landmark Bancorp continues to present itself as a name worth keeping an eye on.