Landmark Bancorp, Inc. Announces Second Quarter Earnings Per Share of $0.55

Declares Cash Dividend of $0.21 per Share

Manhattan, KS, Aug. 05, 2024 (GLOBE NEWSWIRE) — Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.55 for the three months ended June 30, 2024, compared to $0.51 per share in the first quarter of 2024 and $0.61 per share in the same quarter last year. Net earnings for the second quarter of 2024 amounted to $3.0 million, compared to $2.8 million in the prior quarter and $3.4 million for the second quarter of 2023. For the three months ended June 30, 2024, the return on average assets was 0.78%, the return on average equity was 9.72%, and the efficiency ratio was 67.9%.

For the first six months of 2024, diluted earnings per share totaled $1.06 compared to $1.23 during the same period in 2023. Net earnings for the six months of 2024 totaled $5.8 million, compared to $6.7 million in the first six months of 2023. For the six months ended June 30, 2024, the return on average assets was 0.75%, the return on average equity was 9.30%, and the efficiency ratio was 70.0%.

In making this announcement, Abby Wendel, President and Chief Executive Officer of Landmark, said, “During the second quarter, we continued to see good growth in loans coupled with solid credit quality. Also, both our net interest income and our fee-based income grew nicely this quarter. During the second quarter 2024, non-interest expense grew by $544,000 but included a $979,000 valuation adjustment on a former branch facility that is currently under contract to be sold. Excluding these adjustments, non-interest expense would have declined by $306,000, or 2.9% from the prior quarter. This quarter total loans grew $16.5 million, or 6.9% annualized, driven mainly by strong growth in residential mortgage and construction loans. Additionally, net interest income grew 2.1%, to $11.0 million, as higher interest on loans exceeded interest costs on deposits and our net interest margin expanded by nine basis points and totaled 3.21%. Non-interest income also increased $320,000 over the prior quarter mainly due to higher fees and service charges along with higher gains on sales of mortgage loans. Excluding a decline in brokered deposits on the last day of the quarter, deposit balances were stable during the second quarter while average interest-bearing deposits increased slightly from the prior quarter.”

Ms. Wendel continued, “Loan credit quality remains excellent. Landmark recorded net loan recoveries of $52,000 in the second quarter of 2024 compared to net loan charge-offs of $7,000 in the first quarter of 2024 and $68,000 in the second quarter of 2023. The ratio of net loan charge-offs to loans remains low. No provision for credit losses was recorded in the second quarter 2024. Non-accrual loans totaled $5.0 million, or 0.51%, of gross loans at June 30, 2024 while the balance of loans past due 30 to 89 days totaled $1.9 million, or 0.19%, of gross loans at June 30, 2024. The allowance for credit losses totaled $10.9 million at June 30, 2024, or 1.11% of period end gross loans. At the end of the second quarter 2024 our equity to assets ratio grew to 8.22% while our loans to deposits ratio totaled 77.5% and reflects strong liquidity for future loan growth.”

Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid September 4, 2024, to common stockholders of record as of the close of business on August 21, 2024.

Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Tuesday, August 6, 2024. Investors may participate via telephone by dialing (833) 470-1428 and using access code 974885. A replay of the call will be available through September 5, 2024, by dialing (866) 813-9403 and using access code 416026.

SUMMARY OF SECOND QUARTER RESULTS

Net earnings in the second quarter of 2024 increased 8.4% to $3.0 million compared to the first quarter 2024 but decreased $350,000 from the same period last year. As previously mentioned, the current quarter included a valuation adjustment on a former branch under a sales contract which after tax reduced net income by $739,000, or $0.14 per share. During the second quarter, loans grew 6.9% annualized, and both net interest income and non-interest income increased over the first quarter. Non-interest expense, excluding the valuation adjustment, declined and no provision for credit losses was taken.

Net Interest Income

Net interest income in the second quarter of 2024 amounted to $11.0 million representing an increase of $227,000, or 2.1%, compared to the previous quarter. The increase in net interest income was due mainly to growth in interest income on loans, but partially offset by higher interest expense on deposits. The net interest margin increased to 3.21% during the second quarter from 3.12% during the prior quarter. Compared to the previous quarter, interest income on loans increased $532,000, or 3.7%, to $15.0 million due to both higher average balances and rates. The average tax-equivalent yield on the loan portfolio increased 17 basis points to 6.33%. Interest expense on deposits increased $216,000, or 4.0%, in the second quarter 2024, compared to the prior quarter, mainly due to higher rates on interest-bearing deposits. The average rate on interest-bearing deposits increased in the second quarter to 2.44% compared to 2.35% in the prior quarter. Interest on borrowed funds declined slightly due to a small decline in average balances.

Non-Interest Income

Non-interest income totaled $3.7 million for the second quarter of 2024, an increase of $320,000, or 9.4%, from the previous quarter. The increase in non-interest income compared to the first quarter of 2024 was primarily the result of increases of $230,000 in fees and service charges and $136,000 in gains on sales of one-to-four family residential real estate loans.

Non-Interest Expense

During the second quarter of 2024, non-interest expense totaled $11.1 million, an increase of $544,000, or 5.2%, compared to the prior quarter. As mentioned above, the increase in non-interest expense this quarter was primarily related to a valuation allowance of $979,000 recorded on a former branch facility that is currently under contract to be sold. A valuation allowance of $129,000 on this facility was also recorded in the first quarter of 2024. Excluding these valuation allowances, non-interest expense totaled $10.1 million in the second quarter of 2024 compared to $10.4 million in the first quarter of 2024, a decline of $306,000, or 2.9%. Compensation and benefits, occupancy and equipment and amortization of mortgage servicing rights and other intangibles were all lower this quarter.

Income Tax Expense

Landmark recorded income tax expense of $587,000 in the second quarter of 2024 compared to $518,000 in the prior quarter. The effective tax rate was 16.3% in the second quarter of 2024 compared to 15.7% in the first quarter of 2024. The increase in the effective tax rate was primarily due to higher earnings before taxes as tax-exempt income was consistent between the periods.

Balance Sheet Highlights

As of June 30, 2024, gross loans totaled $980.6 million, an increase of $16.5 million, or 6.9% annualized since March 31, 2024. During the quarter, loan growth was primarily comprised of one-to-four family residential real estate (growth of $19.3 million) and construction and land (growth of $5.7 million) loans. The increase in one-to-four family residential real estate loans is primarily related to continued demand for adjustable-rate mortgage loans which are retained in our portfolio. Investment securities decreased $16.8 million during the second quarter of 2024, while pre-tax unrealized net losses on these investment securities increased slightly from $24.4 million at March 31, 2024 to $24.8 million at June 30, 2024.

Period end deposit balances decreased $43.0 million to $1.3 billion at June 30, 2024. The decrease in deposits was mainly driven by declines in money market and checking (decrease of $36.9 million) non-interest-bearing demand (decrease of $3.8 million) and savings (decrease of $3.0 million) in the second quarter. The decrease in money market and checking accounts was mainly driven by a decline in brokered deposits on the last day of the quarter. Average interest-bearing deposits increased slightly this quarter compared to the first quarter. Total borrowings increased $49.5 million during the second quarter 2024. The increase was due to increased borrowing on our FHLB line of credit which was primarily related to the decline in brokered deposits. Average borrowings, including FHLB advances and repurchase agreements decreased $2.6 million this quarter compared to the first quarter. At June 30, 2024, the loan to deposits ratio was 77.5% compared to 73.6% in the prior quarter.

Stockholders’ equity increased to $128.3 million (book value of $23.45 per share) as of June 30, 2024, from $126.7 million (book value of $23.14 per share) as of March 31, 2024. The ratio of equity to total assets increased to 8.22% on June 30, 2024, from 8.16% on March 31, 2024.

The allowance for credit losses totaled $10.9 million, or 1.11% of total gross loans on June 30, 2024, compared to $10.9 million, or 1.13% of total gross loans on March 31, 2024. Net loan recoveries totaled $52,000 in the second quarter of 2024, compared to net loan charge-offs of $7,000 during the first quarter of 2024. No provision for credit losses was recorded in the second quarter of 2024 compared to a provision for credit losses of $300,000 in the first quarter of 2024.

Non-performing loans totaled $5.0 million, or 0.51% of gross loans at June 30, 2024 compared to $3.6 million, or 0.38% of gross loans at March 31, 2024. Loans 30-89 days delinquent totaled $1.9 million, or 0.19% of gross loans, as of June 30, 2024, compared to $3.9 million, or 0.42% of gross loans, as of March 31, 2024. Foreclosed real estate owned totaled $428,000 at June 30, 2024.

About Landmark

Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 30 locations in 24 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, Kincaid, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.

Contact:
Mark A. Herpich
Chief Financial Officer
(785) 565-2000

Special Note Concerning Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of Landmark. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this press release, including forward-looking statements, speak only as of the date they are made, and Landmark undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements. These factors include, among others, the following: (i) the strength of the local, national and international economies, including the effects of inflationary pressures and supply chain constraints on such economies; (ii) changes in state and federal laws, regulations and governmental policies concerning banking, securities, consumer protection, insurance, monetary, trade and tax matters, including any changes in response to the recent failures of other banks; (iii) changes in interest rates and prepayment rates of our assets; (iv) increased competition in the financial services sector and the inability to attract new customers, including from non-bank competitors such as credit unions and “fintech” companies; (v) timely development and acceptance of new products and services; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) changes and uncertainty in benchmark interest rates, including the timing of rate changes, if any, by the Federal Reserve; (x) the effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (xi) the loss of key executives or employees; (xii) changes in consumer spending; (xiii) integration of acquired businesses; (xiv) unexpected outcomes of existing or new litigation; (xv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvi) the economic impact of past and any future terrorist attacks, acts of war, including the current Israeli-Palestinian conflict and the conflict in Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xviii) fluctuations in the value of securities held in our securities portfolio; (xix) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xx) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xxi) the level of non-performing assets on our balance sheets; (xxii) the ability to raise additional capital; (xxiii) cyber-attacks; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; and (xxvi) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission.

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)

(Dollars in thousands)   June 30,     March 31,     December 31,     September 30,     June 30,  
    2024     2024     2023     2023     2023  
Assets                                        
Cash and cash equivalents   $ 23,889     $ 16,468     $ 27,101     $ 23,821     $ 20,038  
Interest-bearing deposits at other banks     4,881       4,920       4,918       5,904       8,336  
Investment securities available-for-sale, at fair value:                                        
U.S. treasury securities     89,325       93,683       95,667       118,341       121,480  
Municipal obligations, tax exempt     114,047       118,445       120,623       115,706       124,451  
Municipal obligations, taxable     74,588       75,371       79,083       73,993       77,713  
Agency mortgage-backed securities     142,499       149,777       157,396       148,817       160,734  
Total investment securities available-for-sale     420,459       437,276       452,769       456,857       484,378  
Investment securities held-to-maturity     3,613       3,584       3,555       3,525       3,496  
Bank stocks, at cost     9,647       7,850       8,123       8,009       9,445  
Loans:                                        
One-to-four family residential real estate     332,090       312,833       302,544       289,571       259,655  
Construction and land     30,480       24,823       21,090       21,657       22,016  
Commercial real estate     318,850       323,397       320,962       323,427       314,889  
Commercial     178,876       181,945       180,942       185,831       181,424  
Agriculture     84,523       86,808       89,680       84,560       84,345  
Municipal     6,556       5,690       4,507       3,200       2,711  
Consumer     29,200       28,544       28,931       29,180       28,219  
Total gross loans     980,575       964,040       948,656       937,426       893,259  
Net deferred loan (fees) costs and loans in process     (583 )     (578 )     (429 )     (396 )     (261 )
Allowance for credit losses     (10,903 )     (10,851 )     (10,608 )     (10,970 )     (10,449 )
Loans, net     969,089       952,611       937,619       926,060       882,549  
Loans held for sale, at fair value     2,513       2,697       853       1,857       3,900  
Bank owned life insurance     38,826       38,578       38,333       38,090       37,764  
Premises and equipment, net     20,986       20,696       19,709       23,911       24,027  
Goodwill     32,377       32,377       32,377       32,377       32,199  
Other intangible assets, net     2,900       3,071       3,241       3,414       3,612  
Mortgage servicing rights     2,997       2,977       3,158       3,368       3,514  
Real estate owned, net     428       428       928       934       934  
Other assets     28,149       29,684       28,988       29,459       25,148  
Total assets   $ 1,560,754     $ 1,553,217     $ 1,561,672     $ 1,557,586     $ 1,539,340  
                                         
Liabilities and Stockholders’ Equity                                        
Liabilities:                                        
Deposits:                                        
Non-interest-bearing demand     360,631       364,386       367,103       395,046       382,410  
Money market and checking     546,385       583,315       613,613       586,651       606,474  
Savings     150,996       154,000       152,381       157,112       160,426  
Certificates of deposit     192,470       191,823       183,154       169,225       131,661  
Total deposits     1,250,482       1,293,524       1,316,251       1,308,034       1,280,971  
FHLB and other borrowings     131,330       74,716       64,662       82,569       84,520  
Subordinated debentures     21,651       21,651       21,651       21,651       21,651  
Repurchase agreements     8,745       15,895       12,714       12,590       13,958  
Accrued interest and other liabilities     20,292       20,760       19,480       23,185       20,887  
Total liabilities     1,432,500       1,426,546       1,434,758       1,448,029       1,421,987  
Stockholders’ equity:                                        
Common stock     55       55       55       52       52  
Additional paid-in capital     89,469       89,364       89,208       84,568       84,475  
Retained earnings     57,774       55,912       54,282       57,280       55,498  
Treasury stock, at cost     (330 )     (249 )     (75 )            
Accumulated other comprehensive (loss) income     (18,714 )     (18,411 )     (16,556 )     (32,343 )     (22,672 )
Total stockholders’ equity     128,254       126,671       126,914       109,557       117,353  
Total liabilities and stockholders’ equity   $ 1,560,754     $ 1,553,217     $ 1,561,672     $ 1,557,586     $ 1,539,340  

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings (unaudited)

(Dollars in thousands, except per share amounts)   Three months ended,     Six months ended,  
    June 30,     March 31,     June 30,     June 30,     June 30,  
    2024     2024     2023     2024     2023  
Interest income:                                        
Loans   $ 15,022     $ 14,490     $ 12,623     $ 29,512     $ 23,999  
Investment securities:                                        
Taxable     2,359       2,428       2,379       4,787       4,696  
Tax-exempt     759       764       775       1,523       1,561  
Interest-bearing deposits at banks     40       63       49       103       147  
Total interest income     18,180       17,745       15,826       35,925       30,403  
Interest expense:                                        
Deposits     5,673       5,457       3,452       11,130       5,991  
FHLB and other borrowings     1,027       1,022       1,027       2,049       1,594  
Subordinated debentures     418       412       387       830       751  
Repurchase agreements     88       107       127       195       287  
Total interest expense     7,206       6,998       4,993       14,204       8,623  
Net interest income     10,974       10,747       10,833       21,721       21,780  
Provision for credit losses           300       250       300       299  
Net interest income after provision for credit losses     10,974       10,447       10,583       21,421       21,481  
Non-interest income:                                        
Fees and service charges     2,691       2,461       2,481       5,152       4,839  
Gains on sales of loans, net     648       512       830       1,160       1,523  
Bank owned life insurance     248       245       223       493       441  
Other     133       182       295       315       521  
Total non-interest income     3,720       3,400       3,829       7,120       7,324  
Non-interest expense:                                        
Compensation and benefits     5,504       5,532       5,572       11,036       11,114  
Occupancy and equipment     1,294       1,390       1,394       2,684       2,763  
Data processing     492       481       431       973       1,020  
Amortization of mortgage servicing rights and other intangibles     256       412       472       668       933  
Professional fees     649       647       607       1,296       1,098  
Valuation allowance on real estate held for sale     979       129             1,108        
Other     1,921       1,960       1,873       3,881       3,764  
Total non-interest expense     11,095       10,551       10,349       21,646       20,692  
Earnings before income taxes     3,599       3,296       4,063       6,895       8,113  
Income tax expense     587       518       701       1,105       1,394  
Net earnings   $ 3,012     $ 2,778     $ 3,362     $ 5,790     $ 6,719  
                                         
Net earnings per share (1)                                        
Basic   $ 0.55     $ 0.51     $ 0.61     $ 1.06     $ 1.23  
Diluted     0.55       0.51       0.61       1.06       1.23  
Dividends per share (1)     0.21       0.21       0.20       0.42       0.40  
Shares outstanding at end of period (1)     5,469,566       5,473,867       5,476,354       5,469,566       5,476,354  
Weighted average common shares outstanding – basic (1)     5,471,724       5,469,954       5,476,354       5,470,839       5,475,075  
Weighted average common shares outstanding – diluted (1)     5,474,336       5,474,852       5,480,528       5,474,602       5,480,748  
                                         
Tax equivalent net interest income   $ 11,167     $ 10,925     $ 11,021     $ 22,075     $ 22,165  
                                         

(1) Share and per share values at or for the period ended June 30, 2023 have been adjusted to give effect to the 5% stock dividend paid during December 2023.

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Select Ratios and Other Data (unaudited)

(Dollars in thousands, except per share amounts)   As of or for the
three months ended,
    As of or for the
six months ended,
 
    June 30,     March 31,     June 30,     June 30,     June 30,  
    2024     2024     2023     2024     2023  
Performance ratios:                                        
Return on average assets (1)     0.78 %     0.72 %     0.88 %     0.75 %     0.89 %
Return on average equity (1)     9.72 %     8.88 %     11.52 %     9.30 %     11.77 %
Net interest margin (1)(2)     3.21 %     3.12 %     3.21 %     3.16 %     3.26 %
Effective tax rate     16.3 %     15.7 %     17.3 %     16.0 %     17.2 %
Efficiency ratio (3)     67.9 %     72.1 %     69.2 %     70.0 %     69.7 %
Non-interest income to total income (3)     25.3 %     24.1 %     26.1 %     24.7 %     25.2 %
                                         
Average balances:                                        
Investment securities   $ 437,136     $ 456,933     $ 495,456     $ 447,034     $ 497,486  
Loans     955,104       945,737       873,910       950,420       862,186  
Assets     1,545,816       1,555,662       1,525,589       1,550,739       1,518,373  
Interest-bearing deposits     936,237       935,417       882,726       935,827       877,841  
FHLB and other borrowings     72,875       72,618       77,176       72,747       61,285  
Subordinated debentures     21,651       21,651       21,651       21,651       21,651  
Repurchase agreements     11,524       14,371       16,909       12,947       22,199  
Stockholders’ equity   $ 124,624     $ 125,846     $ 117,038     $ 125,235     $ 115,087  
                                         
Average tax equivalent yield/cost (1):                                        
Investment securities     3.04 %     2.96 %     2.70 %     2.99 %     2.69 %
Loans     6.33 %     6.16 %     5.80 %     6.25 %     5.62 %
Total interest-bearing assets     5.29 %     5.11 %     4.66 %     5.20 %     4.53 %
Interest-bearing deposits     2.44 %     2.35 %     1.57 %     2.39 %     1.38 %
FHLB and other borrowings     5.67 %     5.66 %     5.34 %     5.66 %     5.25 %
Subordinated debentures     7.76 %     7.65 %     7.17 %     7.71 %     6.99 %
Repurchase agreements     3.07 %     2.99 %     3.01 %     3.03 %     2.61 %
Total interest-bearing liabilities     2.78 %     2.70 %     2.01 %     2.74 %     1.77 %
                                         
Capital ratios:                                        
Equity to total assets     8.22 %     8.16 %     7.62 %                
Tangible equity to tangible assets (3)     6.09 %     6.01 %     5.42 %                
Book value per share   $ 23.45     $ 23.14     $ 21.43                  
Tangible book value per share (3)   $ 17.00     $ 16.67     $ 14.89                  
                                         
Rollforward of allowance for credit losses (loans):                                        
Beginning balance   $ 10,851     $ 10,608     $ 10,267     $ 10,608     $ 8,791  
Adoption of CECL                             1,523  
Charge-offs     (119 )     (141 )     (158 )     (260 )     (266 )
Recoveries     171       134       90       305       151  
Provision for credit losses for loans           250       250       250       250  
Ending balance   $ 10,903     $ 10,851     $ 10,449     $ 10,903     $ 10,449  
                                         
Allowance for unfunded loan commitments   $ 300     $ 300     $ 200                  
                                         
Non-performing assets:                                        
Non-accrual loans   $ 5,007     $ 3,621     $ 2,784                  
Accruing loans over 90 days past due                                  
Real estate owned     428       428       934                  
Total non-performing assets   $ 5,435     $ 4,049     $ 3,718                  
                                         
Loans 30-89 days delinquent   $ 1,872     $ 4,064     $ 614                  
                                         
Other ratios:                                        
Loans to deposits     77.50 %     73.64 %     68.90 %                
Loans 30-89 days delinquent and still accruing to gross loans outstanding     0.19 %     0.42 %     0.07 %                
Total non-performing loans to gross loans outstanding     0.51 %     0.38 %     0.31 %                
Total non-performing assets to total assets     0.35 %     0.26 %     0.24 %                
Allowance for credit losses to gross loans outstanding     1.11 %     1.13 %     1.17 %                
Allowance for credit losses to total non-performing loans     217.76 %     299.67 %     375.32 %                
Net loan charge-offs to average loans (1)     -0.02 %     0.00 %     0.03 %     0.00 %     0.01 %
                                         

(1) Information is annualized.
(2) Net interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate.
(3) Non-GAAP financial measures. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation to the most comparable GAAP equivalent.

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Finacials Measures (unaudited)

(Dollars in thousands, except per share amounts)   As of or for the
three months ended,
    As of or for the
six months ended,
 
    June 30,     March 31,     June 30,     June 30,     June 30,  
    2024     2024     2023     2024     2023  
                               
Non-GAAP financial ratio reconciliation:                                        
Total non-interest expense   $ 11,095     $ 10,551     $ 10,349     $ 21,646     $ 20,692  
Less: foreclosure and real estate owned expense     39       (50 )     (3 )     (11 )     (20 )
Less: amortization of other intangibles     (171 )     (170 )     (198 )     (341 )     (395 )
Less: valuation allowance on real estate held for sale     (979 )     (129 )           (1,108 )      
Adjusted non-interest expense (A)     9,984       10,202       10,148       20,186       20,277  
                                         
Net interest income (B)     10,974       10,747       10,833       21,721       21,780  
                                         
Non-interest income     3,720       3,400       3,829       7,120       7,324  
Less: losses (gains) on sales of investment securities, net                              
Less: gains on sales of premises and equipment and foreclosed assets           9             9       (1 )
Adjusted non-interest income (C)   $ 3,720     $ 3,409     $ 3,829     $ 7,129     $ 7,323  
                                         
Efficiency ratio (A/(B+C))     67.9 %     72.1 %     69.2 %     70.0 %     69.7 %
Non-interest income to total income (C/(B+C))     25.3 %     24.1 %     26.1 %     24.7 %     25.2 %
                                         
Total stockholders’ equity   $ 128,254     $ 126,671     $ 117,353                  
Less: goodwill and other intangible assets     (35,277 )     (35,448 )     (35,811 )                
Tangible equity (D)   $ 92,977     $ 91,223     $ 81,542                  
                                         
Total assets   $ 1,560,754     $ 1,553,217     $ 1,539,340                  
Less: goodwill and other intangible assets     (35,277 )     (35,448 )     (35,811 )                
Tangible assets (E)   $ 1,525,477     $ 1,517,769     $ 1,503,529                  
                                         
Tangible equity to tangible assets (D/E)     6.09 %     6.01 %     5.42 %                
                                         
Shares outstanding at end of period (F)     5,469,566       5,473,867       5,476,354                  
                                         
Tangible book value per share (D/F)   $ 17.00     $ 16.67     $ 14.89                  


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