Home / Business and Economy / Landmark Bancorp's Margin Expands Amid Loan Yield Climb
Landmark Bancorp's Margin Expands Amid Loan Yield Climb
30 Oct
Summary
- Net earnings grew 1.5% to $5.5 million, driven by higher net interest income.
- Net interest margin expanded 13 basis points due to increased earning asset yields.
- Total gross loans decreased by $22.2 million, primarily in commercial real estate.
Landmark Bancorp's third-quarter results showcased a 1.5% rise in net earnings to $5.5 million, with diluted EPS reaching $0.89. This growth was propelled by an expansion in net interest income.
The bank's net interest margin increased by 13 basis points, reaching 4.35%, a positive outcome driven by higher yields on earning assets. This occurred despite a $22.2 million decrease in total gross loans.
Loan portfolio adjustments saw commercial and residential real estate balances decline by $12.5 million and $10.6 million, respectively. Concurrently, total deposits decreased by $59.0 million, partly due to seasonal public fund outflows expected to reverse in the fourth quarter.
Investments in technology and talent contributed to a $292,000 increase in noninterest expense. Despite these investments, the company declared a cash dividend of $0.21 per share and a 5% stock dividend.
