Landmark Bancorp Inc. (NASDAQ:LARK) Q4 2018 Earnings Conference Call Transcript

Jan 30, 2019 • 11:00 am ET

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Landmark Bancorp Inc. (NASDAQ:LARK) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to the Landmark Bancorp Fourth Quarter Earnings Conference Call. (Operator Instructions) Please note that this event is being recorded.

At this time, I would like to turn the conference over to Michael Scheopner, President and Chief Executive Officer. Please go ahead, sir.

Executive
Michael Scheopner

Thank you. Good morning. Thank you for joining our call today to discuss Landmark's earnings and results of operations for the fourth quarter and fiscal year ending 2018. Joining the call with me today to discuss various aspects of our 2018 performance is Mark Herpich, Chief Financial Officer of the Company.

Before we get started, I would like to remind our listeners that some of the information we will be providing today falls under the guidelines for forward-looking statements as defined by the Securities and Exchange Commission. As part of these guidelines, I must point out that any statements made during this presentation that discuss our hopes, beliefs, expectations, or predictions of the future are forward-looking statements and our actual results could differ materially from those expressed. Additional information on these factors is included from time-to-time in our 10-K and 10-Q filings, which can be obtained by contacting the Company or the SEC.

We reported net earnings of $2.5 million or $0.56 per share on a fully diluted basis for the fourth quarter of 2018. For the year ending December 31, 2018, Landmark's net earnings totaled $10.4 million or $2.39 per diluted share. The company continues to deliver good performance on ROA and ROE, return on average assets calculates to 1.09% for the full year, and return on average equity was 12.09% for 2018. Mark will provide additional detail on Landmark's financial performance and asset quality metrics later in this call.

I'm also pleased to report that our Board of Directors has declared a cash dividend of $0.20 per share to be paid March 6, 2019 to shareholders of record as of February 20, 2019. This represents the 70th consecutive quarterly cash dividend since the company's formation resulting from the merger of Landmark Bancorp, Inc. with MNB Bancshares, Inc. in October 2001. Our performance in the fourth quarter and fiscal year 2018 continues our trend of strong earnings and this success is a credit to the continued efforts of our associates throughout the organization, who practice good banking fundamentals and deliver high quality customer service, consistent with our vision that everyone starts as a customer and leaves as a friend.

We are very pleased to report that our 2018 organic growth efforts resulted in net loan growth year-over-year of $55.7 million or 12.8%. This loan growth, which was spread across all of our geographic markets in 2018 helped push our total asset base as of year-end to $985 million, a 6% increase from the prior year end period. The mid-year addition of a team of commercial bankers with a specialty in small business SBA lending located in our Johnson County, Kansas market contributed to our lending success. At year-end 2018, we also