Landmark Bancorp, Inc.
Q1 2021 Earnings Call Transcript

Published: 9 May 2021

[Operator:]

Good day, and welcome to the Landmark Bancorp Q1 Earnings Conference Call. Please note that this event is being recorded. I would now like to turn the conference over to Michael Scheopner, President & Chief Executive Officer. Please go ahead.

[Michael Scheopner:]

Thank you, and good morning. Thank you for joining our call today to discuss Landmark's earnings and results of operations for the first quarter ending 2021. Joining the call with me to discuss various aspects of our 2020 performance is Mark Herpich, Chief Financial Officer for the company and the company's chief credit officer Raymond McClanahan 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.

[Mark Herpich:]

Thanks, Michael. And good morning to everyone. Michael alluded to our continued strong net earnings for the first quarter ended March 31, 2021, and then reflect back a year during our 2020 first quarter earnings call. We noted that last year's net earnings of $3.4 million was the highest quarterly earnings landmark Bancorp had ever reported, which makes 2020 one's first quarter earnings of $5.4 million reflective of how far we have come in the last 12 months.

[Raymond McClanahan:]

Thank you, Mark and good morning to everyone. Gross loans outstanding as of March 31st, 2021, total $730.7 million, this represents a $17 million increase or an annualized growth of 9.6% from the previous quarter in gross loan, total of $713.5 million. This increase is mainly due to an increase in both PPP and commercial real estate loans. SBA paycheck protection program loans experienced a net increase of approximately $17.2 million while commercial real estate loans increased $7.5 million during the quarter non-performing loans, which primarily consists of non-accrual loans and loans greater than 90 days past due total to $11 million or 1.5, 1% of gross loans as of March 31st, 2021. This represents an increase from the year end 2020 level of $10.5 million or 1.47% of gross loans. This slight increase is the result of continued delinquency of one previously identified agricultural loan. We remained focused on improving these totals. Another indicator we monitor as part of our credit risk management efforts is the level of loans past due 30 to 89 days. The level of past due loans between 30 and 89 days still occurring interest totaled $5 million or 0.6, 9% of gross lungs as of March 31st, 2021. This ratio has increased from $1.5 million or 0.2, 1% of gross lens as of December 31st, 2020. This increase is mainly due to the delinquency of two larger credits at quarter end one credit was a $1.3 million commercial loan that had matured and was in the process of renewal. That loan has since been renewed and is now current. The other was a $1.1 million commercial real estate loan that was 44 days past due at quarter end. That loan is also now current. We continue to monitor delinquency trends carefully across all categories are balanced in foreclosed real estate totaled $1.50 as of March 31st, 2021, a decrease from $1.8 million as of year end 2020. We continually, we continue to actively pursue the sale of these properties. We recorded net loan charge offs of $4,000 during the first quarter of 2021, compared to net loan charge offs of $188,000 during the first quarter of 2020 and $291,000 in the previous quarter ending December 31st, 2021 or 2020, in terms of exposure to credit concentrations, we continue to focus on portfolio management and maintain in a diversified loan portfolio as of quarter end our topic three loan portfolio pool categories where commercial real estate loans, which represented 24.6% of gross loans.

[Michael Scheopner:]

Thanks Raymond. Before we go to questions, I want to summarize by saying our first quarter of 2021 reflected a continued trend, a very positive operating results for landmark. I want to express my thanks and appreciation to all of the associates at landmark national, but their daily focus on executing our strategies, delivering an extra ordinary service to our clients and communities and carrying out our company vision that everyone starts as a customer and leaves as a friend is the key to our success. With that, I'll open the call up to questions that anyone might have.

[Operator:]

[Michael Scheopner:]

Thank You. And I do want to thank everyone for participating in today's earnings call. I appreciate your continued support and the confidence that you had in our company. I look forward to sharing news related to our second quarter, 2021 earnings or 2021 results at our next earnings conference call. Thank you.

[Operator:]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.