Landmark Bancorp Inc (NASDAQ: LARK)

$27.07 ▼ -0.93 (-3.32%)

As of May 22, 2026 04:00 PM

Sector: Financial Services Industry: Banks - Regional CIK: 0001141688

Market Cap 164.67 Bn

P/E 8.73

P/S 2,257.48

Div. Yield 0.00

ROIC (Qtr) 0.00

Total Debt (Qtr) 21.65 Mn

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About

Landmark Bancorp, Inc. is a financial holding company that was incorporated under the laws of Delaware in 2001. The company owns two wholly owned subsidiaries, Landmark National Bank and Landmark Risk Management, Inc. Its primary operations consist of providing banking services through the bank and offering property and casualty insurance through the captive. Headquartered in Manhattan Kansas the firm serves communities across Kansas and parts of the Missouri metropolitan area. As of the end of 2025 the company held approximately 1.6 billion dollars...

Landmark Bancorp, Inc. is a financial holding company that was incorporated under the laws of Delaware in 2001. The company owns two wholly owned subsidiaries, Landmark National Bank and Landmark Risk Management, Inc. Its primary operations consist of providing banking services through the bank and offering property and casualty insurance through the captive. Headquartered in Manhattan Kansas the firm serves communities across Kansas and parts of the Missouri metropolitan area. As of the end of 2025 the company held approximately 1.6 billion dollars in total consolidated assets. The bank maintains a network of twenty nine branches spread over twenty three towns in Kansas and has opened a loan production office in Kansas City Missouri to expand its reach. Over time the company has grown through both organic branch openings and strategic acquisitions of other financial institutions. The bank’s board of directors oversees risk management capital planning and overall corporate governance while the captive follows the insurance regulations of the state of Nevada. Together these entities allow the company to deliver a diversified range of financial products to its customers.

Revenue is generated mainly from interest income on loans and securities. The bank earns interest on commercial real estate loans, residential mortgages, commercial loans, agricultural loans and consumer loans. Additional revenue comes from loan servicing fees, deposit service charges and gains on the sale of mortgage loans. The bank also collects fees from treasury management services and from the use of its online banking platform. The captive contributes revenue through insurance premiums it charges for covering risks that are not readily available or cost effective in the commercial market. Investment income on the premium reserves held by the captive further adds to its earnings. Together these sources produce the net interest income and non interest income reported in the financial statements. The company’s net interest margin has remained in the mid three percent range reflecting the difference between asset yields and funding costs. Prudent expense control and a stable core deposit base help sustain profitability over time.

The company operates through the following segments.

• The banking segment, conducted through Landmark National Bank, provides a full range of loan products including commercial real estate, residential mortgage, agricultural and consumer loans. The bank’s loan portfolio is diversified with roughly thirty five percent in commercial real estate, thirty four percent in residential mortgages, sixteen percent in commercial loans, nine percent in agricultural loans and the remaining percentage in other categories. It also offers deposit products such as checking, savings, money market and time deposits along with treasury management services that help businesses manage cash flow. This segment serves individuals, small and medium sized businesses and municipal clients in its geographic footprint. Relationship banking is emphasized through local decision making and personalized service. The bank maintains a conservative underwriting approach that aims to keep credit quality strong while supporting community growth.

• The insurance segment, conducted through Landmark Risk Management, Inc, provides property and casualty coverage to the bank and the parent company for risks that are either unavailable or not economically feasible in the standard insurance marketplace. The captive writes policies that protect against property damage, liability claims and other specific hazards that may arise from the bank’s operations. It operates under Nevada regulations and is subject to periodic examinations by the state insurance division. Premiums are invested in a portfolio of high quality bonds and short term instruments to generate investment income while reserves are held for future claims. This segment contributes to the company’s earnings by retaining underwriting profits and investment income on premium reserves. The captive also provides a strategic advantage by allowing the bank to self insure certain exposures that would otherwise be costly or difficult to obtain from commercial carriers.

Within the regional banking landscape Landmark Bancorp competes with large national banks, regional banks and numerous community banks operating in Kansas and the Kansas City area. The company’s competitive advantage stems from its deep local relationships, its ability to tailor loan and deposit products to the specific needs of farmers, manufacturers and service providers, and its disciplined underwriting approach that has maintained solid asset quality. Its capital position remains strong with ratios consistently above regulatory minimums, which supports both growth initiatives and dividend payments. The captive insurance subsidiary further differentiates the firm by providing a source of revenue that is less correlated with traditional banking cycles. Market analysts note that the bank’s loan to deposit ratio remains in a healthy range indicating prudent balance sheet management. The firm’s focus on relationship based banking has helped it retain a loyal customer base even as larger competitors offer broader product arrays. Continuous investment in technology and staff training enables the bank to deliver efficient service while preserving the personal touch that customers value.

The bank serves a diverse mix of retail customers, commercial enterprises and public sector entities across its branch network. Retail clients include individuals and families seeking checking accounts, savings products and mortgage financing. Commercial clients range from small owner operated businesses to larger firms involved in real estate development, agriculture and manufacturing. Public sector clients consist of municipalities and local government agencies that utilize the bank for deposit services and occasional loans. The bank’s deposit base is composed largely of non interest bearing demand accounts, interest bearing checking, savings and money market balances and a smaller portion of time deposits. While the filing does not disclose individual customer names, the description indicates a broad base of households, businesses and municipal organizations throughout central, eastern, southeast and southwest Kansas as well as the Kansas City metropolitan area. The institution’s community orientation is reflected in its support for local schools, chambers of commerce and economic development groups. By maintaining a presence in both urban and rural markets the bank is able to serve a wide spectrum of economic activities ranging from high technology services in the Kansas City suburbs to farming and energy production in the western parts of the state.

Investment thesis

Bull case

Landmark’s deposit growth trajectory this year has been robust, with deposits rising to $1.4 billion and an incremental $63.4 million in the fourth quarter alone. The bank’s ability to maintain a low cost of deposits—at 1.50% in Q4 and improving to 1.56% over the full year—underscores disciplined pricing and a loyal core deposit base. By successfully managing deposit rates while simultaneously adding significant liquidity, the bank can fund further loan growth without resorting to expensive short‑term borrowings. This solid deposit foundation, coupled with decreasing borrowing costs, positions the bank to capture margin expansion opportunities.
Net interest margin (NIM) has improved markedly, climbing 58 basis points to 3.86% for the full year and reaching 4.03% on a tax‑equivalent basis in Q4. The improvement stems from higher asset yields and sustained low funding costs, evidenced by the 12‑basis‑point drop in the average rate on interest‑bearing deposits. By generating additional interest income while keeping expenses lean—reflected in a 62.7% efficiency ratio versus 69.1% the previous year—the bank enhances profitability. This margin trajectory signals that the bank’s pricing strategy is effective, providing a cushion against future rate volatility and enhancing shareholder returns.
Loan portfolio growth has been diversified and resilient, with an 11.5% increase in total loan balances to $1.1 billion. Notably, the commercial real‑estate and agricultural segments each saw upward momentum, growing by $4.7 million and $2.9 million respectively. These growth vectors reduce concentration risk relative to a single industry, and the construction loan uptick further diversifies the credit mix. Coupled with controlled charge‑off levels, this expansion demonstrates the bank’s capacity to generate new revenue streams without disproportionately increasing credit risk.
Capital strength remains a cornerstone of Landmark’s financial profile. Tangible book value per share climbed to $26.44, and the bank’s tangible common equity to assets ratio surpassed 8%, comfortably above regulatory minimums. The $160.6 million equity base provides a robust buffer against potential loan losses and supports strategic growth initiatives. Strong capital buffers also enhance investor confidence, potentially lowering the cost of capital and improving the bank’s competitive positioning in the regional market.
The company’s dividend policy reinforces its commitment to returning value to shareholders, marking the 98th consecutive quarterly payout at $0.21 per share. This consistency signals management’s confidence in the bank’s cash‑flow generation and earnings stability. Regular dividends also attract income‑focused investors, likely supporting the stock’s valuation and providing a hedge against market volatility. By maintaining a steady payout, Landmark signals long‑term value creation that may not be fully reflected in market pricing.

Landmark’s deposit growth trajectory this year has been robust, with deposits rising to $1.4 billion and an incremental $63.4 million in the fourth quarter alone. The bank’s ability to maintain a low cost of deposits—at 1.50% in Q4 and improving to 1.56% over the full year—underscores disciplined pricing and a loyal core deposit base. By successfully managing deposit rates while simultaneously adding significant liquidity, the bank can fund further loan growth without resorting to expensive short‑term borrowings. This solid deposit foundation, coupled with decreasing borrowing costs, positions the bank to capture margin expansion opportunities.
Net interest margin (NIM) has improved markedly, climbing 58 basis points to 3.86% for the full year and reaching 4.03% on a tax‑equivalent basis in Q4. The improvement stems from higher asset yields and sustained low funding costs, evidenced by the 12‑basis‑point drop in the average rate on interest‑bearing deposits. By generating additional interest income while keeping expenses lean—reflected in a 62.7% efficiency ratio versus 69.1% the previous year—the bank enhances profitability. This margin trajectory signals that the bank’s pricing strategy is effective, providing a cushion against future rate volatility and enhancing shareholder returns.
Loan portfolio growth has been diversified and resilient, with an 11.5% increase in total loan balances to $1.1 billion. Notably, the commercial real‑estate and agricultural segments each saw upward momentum, growing by $4.7 million and $2.9 million respectively. These growth vectors reduce concentration risk relative to a single industry, and the construction loan uptick further diversifies the credit mix. Coupled with controlled charge‑off levels, this expansion demonstrates the bank’s capacity to generate new revenue streams without disproportionately increasing credit risk.
Capital strength remains a cornerstone of Landmark’s financial profile. Tangible book value per share climbed to $26.44, and the bank’s tangible common equity to assets ratio surpassed 8%, comfortably above regulatory minimums. The $160.6 million equity base provides a robust buffer against potential loan losses and supports strategic growth initiatives. Strong capital buffers also enhance investor confidence, potentially lowering the cost of capital and improving the bank’s competitive positioning in the regional market.
The company’s dividend policy reinforces its commitment to returning value to shareholders, marking the 98th consecutive quarterly payout at $0.21 per share. This consistency signals management’s confidence in the bank’s cash‑flow generation and earnings stability. Regular dividends also attract income‑focused investors, likely supporting the stock’s valuation and providing a hedge against market volatility. By maintaining a steady payout, Landmark signals long‑term value creation that may not be fully reflected in market pricing.

Bear case

Landmark’s loan portfolio is heavily exposed to the Kansas economy, where recent housing market data indicate declining sales volumes despite rising prices. The 9.6% year‑over‑year drop in home sales and a 3.8% unemployment rate suggest a slowing local economy, potentially straining borrower repayment capacity. Concentrated exposure to this regional downturn raises the risk of loan defaults, particularly in the commercial real‑estate segment that has been a growth driver. As the economy weakens, the bank may face increased delinquency rates, eroding asset quality and profitability.
A rising interest‑rate environment could compress net interest margins by increasing the cost of deposits and short‑term borrowings. While the bank currently benefits from low funding costs, any upward pressure on short‑term rates would widen the spread between the cost of funds and the yield on loans, especially if loan rates are capped by market conditions or regulatory constraints. In such a scenario, the bank’s margin improvement may stall or reverse, limiting earnings growth and reducing the attractiveness of its dividend policy.
Non‑performing loan levels, though down from the previous quarter, remain a concern, with 0.90% of gross loans classified as non‑performing. Charge‑offs in Q4 rose to $341,000 from $219,000 the prior year, reflecting a possible uptick in credit risk. The allowance for credit losses stands at 1.12% of gross loans, but any deterioration in borrower creditworthiness could strain the bank’s provisions, forcing higher loss‑absorption costs and impacting net earnings. A sustained increase in non‑performing loans would undermine investor confidence and potentially trigger stricter regulatory scrutiny.
Deposit competition is intensifying as larger banks and fintech platforms expand their market share in the region. Although Landmark has grown deposits to $1.4 billion, the concentration in core deposits leaves the bank vulnerable to deposit migration if competitors offer higher rates or superior digital services. A shift in customer behavior could erode the bank’s cost advantage, compelling it to raise deposit rates and thereby squeezing margins. Continued deposit erosion would also limit the bank’s ability to fund loan growth and could necessitate higher-cost borrowing, further stressing profitability.
Regulatory capital requirements are subject to change, and future increases in leverage or liquidity ratios could compress the bank’s capital buffers. Currently, tangible common equity to assets exceeds 8%, but a tightening of capital standards or an unexpected loss event could push the bank below optimal levels. This would constrain its capacity to issue new loans, invest in technology, or pursue strategic acquisitions, potentially stalling growth and limiting the ability to capitalize on market opportunities.

Landmark’s loan portfolio is heavily exposed to the Kansas economy, where recent housing market data indicate declining sales volumes despite rising prices. The 9.6% year‑over‑year drop in home sales and a 3.8% unemployment rate suggest a slowing local economy, potentially straining borrower repayment capacity. Concentrated exposure to this regional downturn raises the risk of loan defaults, particularly in the commercial real‑estate segment that has been a growth driver. As the economy weakens, the bank may face increased delinquency rates, eroding asset quality and profitability.
A rising interest‑rate environment could compress net interest margins by increasing the cost of deposits and short‑term borrowings. While the bank currently benefits from low funding costs, any upward pressure on short‑term rates would widen the spread between the cost of funds and the yield on loans, especially if loan rates are capped by market conditions or regulatory constraints. In such a scenario, the bank’s margin improvement may stall or reverse, limiting earnings growth and reducing the attractiveness of its dividend policy.
Non‑performing loan levels, though down from the previous quarter, remain a concern, with 0.90% of gross loans classified as non‑performing. Charge‑offs in Q4 rose to $341,000 from $219,000 the prior year, reflecting a possible uptick in credit risk. The allowance for credit losses stands at 1.12% of gross loans, but any deterioration in borrower creditworthiness could strain the bank’s provisions, forcing higher loss‑absorption costs and impacting net earnings. A sustained increase in non‑performing loans would undermine investor confidence and potentially trigger stricter regulatory scrutiny.
Deposit competition is intensifying as larger banks and fintech platforms expand their market share in the region. Although Landmark has grown deposits to $1.4 billion, the concentration in core deposits leaves the bank vulnerable to deposit migration if competitors offer higher rates or superior digital services. A shift in customer behavior could erode the bank’s cost advantage, compelling it to raise deposit rates and thereby squeezing margins. Continued deposit erosion would also limit the bank’s ability to fund loan growth and could necessitate higher-cost borrowing, further stressing profitability.
Regulatory capital requirements are subject to change, and future increases in leverage or liquidity ratios could compress the bank’s capital buffers. Currently, tangible common equity to assets exceeds 8%, but a tightening of capital standards or an unexpected loss event could push the bank below optimal levels. This would constrain its capacity to issue new loans, invest in technology, or pursue strategic acquisitions, potentially stalling growth and limiting the ability to capitalize on market opportunities.

Peer comparison

Companies in the Banks - Regional

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	BCH	Bank Of Chile	90,891.20 Bn	47.15 Mn	-	0.00 Bn
2	BBD	Bank Bradesco	6,807.69 Bn	0.00 Mn	-	21.77 Bn
3	LYG	Lloyds Banking Group plc	426.28 Bn	0.00 Mn	16.65	-
4	NWG	NatWest Group plc	184.56 Bn	0.00 Mn	4.63	-
5	FCAP	First Capital Inc	181.18 Bn	0.00 Mn	25,111.90	-
6	LARK	Landmark Bancorp Inc	164.67 Bn	0.00 Mn	2,257.48	0.02 Bn
7	DB	Deutsche Bank Aktiengesellschaft	161.63 Bn	0.00 Mn	5.57	630.72 Bn
8	KB	KB Financial Group Inc.	150.02 Bn	0.00 Mn	-	8.28 Bn

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Landmark Bancorp Inc (NASDAQ: LARK)

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Investment thesis

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Landmark Bancorp Inc (NASDAQ: LARK)

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