Landmark Bancorp Inc (LARK) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Landmark Bancorp Inc 2024 first quarter earnings call. (Operator Instructions)

女士們先生們，謝謝你們的支持。歡迎參加 Landmark Ba​​rcorp Inc 2024 年第一季財報電話會議。（操作員說明）

I would now like to hand the conference call over to Abby Wendel, CEO. Please go ahead.

我現在想將電話會議交給執行長艾比溫德爾 (Abby Wendel)。請繼續。

Thank you. Good morning. Thank you for joining our call today to discuss Landmark's earnings and operating results for the first quarter of 2024. As you just heard from the operator, my name is Abby Wendel and I am the new CEO of Landmark Bancorp. Joining the call with me to discuss various aspects of our first quarter performance is Mark Herpich, Chief Financial Officer of the company; and Raymond McLanahan, Chief Credit Officer.

謝謝。早安.感謝您今天參加我們的電話會議，討論 Landmark 2024 年第一季的收益和營運表現。正如您剛剛從接線員那裡聽到的，我叫艾比溫德爾 (Abby Wendel)，是 Landmark Ba​​rcorp 的新任執行長。該公司財務長 Mark Herpich 與我一起參加電話會議，討論我們第一季業績的各個方面。首席信貸官雷蒙德麥克拉納漢 (Raymond McLanahan)。

As we start, 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.

在我們開始之前，我想提醒我們的聽眾，我們今天將提供的一些資訊屬於美國證券交易委員會定義的前瞻性陳述準則的範圍。

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.

作為這些指導方針的一部分，我必須指出，在本次演講中討論我們對未來的希望、信念、期望或預測的任何陳述都是前瞻性陳述，我們的實際結果可能與所表達的結果存在重大差異。有關這些因素的更多資​​訊不時包含在我們的 10-K 和 10-Q 文件中，可以透過聯絡公司或 SEC 來取得這些資訊。

Before I review the highlights regarding our operating results for the quarter, I want to take a moment to comment on our leadership change effective March 29. As you are aware by now, Landmark's former CEO, Michael Scheopner, retired from his position in March and I assumed the President, Chief Executive Officer role for Landmark Bancorp at that time.

在回顧本季營運表現的要點之前，我想花點時間評論一下 3 月 29 日生效的領導層變動。如您所知，Landmark 的前執行長 Michael Scheopner 已於 3 月退休，我當時擔任 Landmark Ba​​rcorp 的總裁兼執行長。

Michael is still with the bank in a non-executive capacity providing assistance to me during this transition for which I'm grateful. I'm also very excited for the opportunity to further build upon Landmark's legacy and help write the next chapter for the company.

麥可仍在銀行擔任非執行職務，在過渡期間為我提供了幫助，對此我深表感謝。我也很高興有機會進一步繼承 Landmark 的傳統，幫助公司譜寫新的篇章。

While it's only been a month, I have already come to appreciate the team that is in place and look forward to working with the outstanding leadership team, associates and Board of Directors to deliver tailored financial solutions to our customers and value to our shareholders.

雖然只有一個月的時間，但我已經對現有的團隊表示讚賞，並期待與傑出的領導團隊、員工和董事會合作，為我們的客戶提供量身定制的金融解決方案，並為我們的股東創造價值。

Now I will move on to our results. Landmark reported net earnings of $2.8 million during the first quarter of 2024. Earnings per share on a fully diluted basis for the first quarter was $0.51. The return on average assets was 0.72% and the return on average equity was 8.88%. Our efficiency ratio in the first quarter 2024 was 73%.

現在我將繼續討論我們的結果。Landmark 報告 2024 年第一季淨利潤為 280 萬美元。第一季完全攤薄後的每股收益為 0.51 美元。平均資產報酬率為0.72%，平均股本報酬率為8.88%。2024 年第一季我們的效率率為 73%。

Our first quarter results included solid loan growth, lower expenses and continued good credit quality. Total gross loans increased by $15.4 million or 6.5% on an annualized basis this quarter while average interest-bearing deposits increased $24.8 million.

我們第一季的業績包括穩健的貸款成長、較低的費用和持續良好的信貸品質。本季貸款總額以年化計算增加 1,540 萬美元，或 6.5%，而平均計息存款增加 2,480 萬美元。

Compared to the fourth quarter of 2023, our non-interest income increased while our operating expenses declined. This quarter we continued to see very good demand for residential mortgages and other commercial loan and our net interest margin, which totaled 3.12% this quarter, increased slightly aided by relatively stable interest rates.

與2023年第四季相比，我們的非利息收入增加，而營運費用下降。本季度，我們繼續看到住宅抵押貸款和其他商業貸款的良好需求，本季淨利差總計 3.12%，在相對穩定的利率的幫助下略有上升。

Our focus on operational efficiencies kept our non-interest expenses well controlled this quarter. Credit quality has remained strong as net loan chargeoffs, non-accrual loans and delinquencies remain at relatively low levels. The allowance for credit losses remains robust totaling $10.9 million at December 31 -- at March 31, 2024.

我們對營運效率的關注使我們本季的非利息支出得到了很好的控制。由於淨貸款沖銷、非應計貸款和拖欠率保持在相對較低的水平，信貸品質仍然強勁。截至 12 月 31 日至 2024 年 3 月 31 日，信貸損失準備金仍然強勁，總計 1,090 萬美元。

Landmark's capital and liquidity measures are strong, and we have a stable conservative deposit portfolio with most of our deposits being retail based and FDIC insured. We remain risk averse from the monitoring our interest rate and concentration risk and in maintaining a strong credit discipline. Further, we employ a relationship-based banking model, which offers stability and consistency to all our customers.

Landmark 的資本和流動性措施強勁，我們擁有穩定保守的存款組合，其中大部分存款都是零售存款並受 FDIC 保險。我們仍然規避風險，監控利率和集中度風險，並維持嚴格的信貸紀律。此外，我們採用基於關係的銀行模式，為所有客戶提供穩定性和一致性。

I am pleased to also report that our Board of Directors has declared a cash dividend of $0.21 per share to be paid May 29, 2024, to shareholders of record as of May 15, 2024. This represents the 91st consecutive quarterly cash dividend since the company's formation in 2001.

我還很高興地報告，我們的董事會已宣布將於 2024 年 5 月 29 日向截至 2024 年 5 月 15 日在冊的股東支付每股 0.21 美元的現金股息。這是該公司自2001年成立以來連續第91季現金股利。

I will now turn the call over to Mark Herpich, our CFO, who will review the financial results with you.

我現在將把電話轉給我們的財務長馬克·赫皮奇 (Mark Herpich)，他將與您一起審查財務業績。

Thanks, Abby, and good morning to everyone. While Abby has just provided a good summary of our overall financial performance in the first quarter of 2024, I'll provide some further details on these results.

謝謝艾比，祝大家早安。雖然 Abby 剛剛對我們 2024 年第一季的整體財務業績進行了很好的總結，但我將提供有關這些結果的更多詳細資訊。

As Abby mentioned, net income in the first quarter of 2024 totaled $2.8 million compared to $2.6 million in the prior quarter and $3.4 million in the first quarter of 2023. Net income this quarter increased in comparison with the prior quarter mainly due to securities losses of $1.2 million taken in the fourth quarter last year but offset by an increase in the provision for credit losses of $250,000 taken this quarter.

正如艾比所提到的，2024 年第一季的淨利潤總計為 280 萬美元，而上一季為 260 萬美元，2023 年第一季為 340 萬美元。本季淨利較上一季有所成長，主要是由於去年第四季發生的 120 萬美元的證券損失，但被本季發生的 25 萬美元的信貸損失準備金的增加所抵消。

In the first quarter of 2024, net interest income totaled $10.8 million, a decrease of $139,000 compared to the fourth quarter of 2023 due primarily to increased interest expense on deposits, which more than offset our increase in interest income on loans.

2024年第一季度，淨利息收入總計1,080萬美元，比2023年第四季減少139,000美元，主要是由於存款利息支出增加，這遠遠抵消了貸款利息收入的增加。

Total interest income on loans increased $267,000 this quarter and the tax equivalent yield on the loan portfolio increased 12 basis points to 6.16%. Average loans also increased by $11.4 million during the first quarter adding to loan interest income.

本季貸款總利息收入增加了 267,000 美元，貸款組合的稅收等值收益率增加了 12 個基點，達到 6.16%。第一季平均貸款也增加了 1,140 萬美元，增加了貸款利息收入。

Interest income on investment securities decreased $22,000 to $3.2 million this quarter due to a decline in average investment securities balances of $6.8 million, but offset by higher yield earned on our investment securities balances. The yield on investment securities totaled 2.96% in the current quarter compared to 2.86% in the prior quarter and 2.68% in the first quarter of 2023.

由於平均投資證券餘額減少 680 萬美元，本季投資證券利息收入減少 22,000 美元至 320 萬美元，但被我們投資證券餘額賺取的較高收益率所抵消。本季投資證券收益率總計 2.96%，上一季為 2.86%，2023 年第一季為 2.68%。

Interest expense on deposits in the first quarter of 2024 increased $578,000 mainly due to higher rates and balances. The average rate on our interest-bearing deposits increased this quarter to 2.35% compared to 2.13% last quarter while the average balance of interest-bearing deposits increased $24.8 million.

2024 年第一季的存款利息支出增加了 578,000 美元，主要是由於利率和餘額上升。本季我們的計息存款平均利率從上季的 2.13% 上升至 2.35%，計息存款平均餘額增加 2,480 萬美元。

Interest expense on borrowed funds decreased $180,000 this quarter despite slightly higher rates as average borrowed fund balances declined [$11.2 million] during the first quarter. Landmark's net interest margin on a tax equivalent basis increased to 3.12% in the first quarter of 2024 as compared to 3.11% in the fourth quarter of 2023.

儘管利率略有上升，但本季借入資金的利息支出下降了 18 萬美元，因為第一季平均借入資金餘額下降了 [1,120 萬美元]。Landmark 的稅基淨利差在 2024 年第一季增至 3.12%，而 2023 年第四季為 3.11%。

This quarter a $50,000 provision for credit losses was made to our liability for unfunded lending commitment along with a loan-related provision of $250,000 mainly due to the continued growth in our loan portfolio.

本季度，我們為無資金貸款承諾的負債提列了 50,000 美元的信用損失撥備，同時還提列了 250,000 美元的貸款相關撥備，這主要是由於我們的貸款組合持續增長。

Net loan chargeoffs decreased this quarter and our allowance for credit losses of $10.9 million remains strong and represents 1.13% of gross loans. Non-interest income totaled $3.4 million this quarter decreasing $95,000 compared to the first quarter last year while increasing $1.1 million compared to the fourth quarter of 2023.

本季貸款沖銷淨額有所下降，我們的信貸損失準備金仍然強勁，為 1,090 萬美元，佔貸款總額的 1.13%。本季非利息收入總計 340 萬美元，與去年第一季相比減少 95,000 美元，但與 2023 年第四季相比增加 110 萬美元。

The increase from the fourth quarter last year was primarily the result of the $1.2 million in securities losses taken in the fourth quarter that I mentioned earlier. Also gains on sales of residential mortgages more than doubled to $512,000, but were offset by lower deposit fees.

與去年第四季相比的成長主要是由於我之前提到的第四季出現了 120 萬美元的證券損失。住宅抵押貸款銷售收益也增加了一倍多，達到 512,000 美元，但被較低的存款費用所抵消。

Compared to the first quarter last year, gains on sales of fixed rate residential mortgages declined by $181,000. While fees from sales of fixed rate mortgages have declined somewhat over the last year, we continue to see solid growth in new adjustable-rate mortgages, which we normally keep in our loan portfolio instead of selling into the market.

與去年第一季相比，固定利率住宅抵押貸款的銷售收益下降了 181,000 美元。儘管去年固定利率抵押貸款的銷售費用有所下降，但我們仍然看到新的可調利率抵押貸款的穩健增長，我們通常將其保留在貸款組合中，而不是出售到市場上。

Non-interest expense for the first quarter of 2024 totaled $10.6 million, a decrease of $11,000 compared to the prior quarter, but grew only 2% higher than the same period last year.

2024年第一季非利息支出總計1,060萬美元，較上一季減少11,000美元，但僅比去年同期成長2%。

The increase in non-interest expense compared to the first quarter last year was mainly due to increases of $198,000 in other non-interest expense and $156,000 in professional fees, which were offset by lower data processing costs of $100,000 and flat compensation and benefits expense.

與去年第一季相比，非利息費用的增加主要是由於其他非利息費用增加了198,000 美元，專業費用增加了156,000 美元，但數據處理成本降低了100,000 美元，薪酬和福利費用不變，抵消了這一增加。

The increase in professional fees was related to higher legal costs associated with the company's benefit plan while growth in other non-interest expense resulted from a valuation allowance recorded against real estate held for sale and an increase in operating losses incurred.

專業費用的增加與公司福利計劃相關的法律費用增加有關，而其他非利息費用的增長則歸因於待售房地產的估價備抵以及所產生的經營虧損的增加。

This quarter we recorded tax expense of $518,000 resulting in an effective tax rate of 15.7% as compared to tax expense of $693,000 in the first quarter of last year or an effective tax rate of 17.1%. Gross loans increased $15.4 million or 6.5% annualized during the first quarter and totaled $964 million.

本季我們記錄的稅費為 518,000 美元，有效稅率為 15.7%，而去年第一季的稅費為 693,000 美元，有效稅率為 17.1%。第一季總貸款增加 1,540 萬美元，年化成長率為 6.5%，總計 9.64 億美元。

We saw good growth in our adjustable rate, residential mortgage, commercial real estate and commercial construction loan portfolios. Our investment securities portfolio decreased $15.5 million on a period-end basis as we utilized our maturing investments to fund our loan growth.

我們的可調整利率、住宅抵押貸款、商業房地產和商業建築貸款組合均實現了良好成長。由於我們利用到期投資為貸款成長提供資金，我們的投資證券投資組合在期末減少了 1,550 萬美元。

Our investment portfolio has an average life of 4.2 years with a projected cash flow of $71.5 million coming due in the next 12 months. Period end deposits totaled $1.3 billion at March 31, 2024, and decreased by $22.7 million this quarter.

我們的投資組合平均壽命為 4.2 年，預計未來 12 個月內到期現金流量為 7,150 萬美元。截至 2024 年 3 月 31 日，期末存款總額為 13 億美元，本季減少 2,270 萬美元。

Interest checking and money market deposits and non-interest checking declined by $30.3 million and $2.7 million, respectively, this quarter. While certificates of deposits and savings accounts grew by $10.3 million. The decline in money market and checking accounts was driven by the seasonal decline in public fund account balances occurring soon after year-end.

本季利息支票、貨幣市場存款和非利息支票分別減少了 3,030 萬美元和 270 萬美元。而存款證和儲蓄帳戶則增加了 1,030 萬美元。貨幣市場和支票帳戶的下跌是由於年底後公共基金帳戶餘額出現季節性下降所致。

Average interest-bearing deposits, however, increased $24.8 million this quarter. Our loan-to-deposit ratio totaled 73.6% at March 31, which remains low, giving us ample liquidity to fund new loan growth.

然而，本季平均計息存款增加了 2,480 萬美元。截至 3 月 31 日，我們的貸存比總計 73.6%，仍處於較低水平，這為我們提供了充足的流動性來為新貸款成長提供資金。

Our markets throughout the State of Kansas remained very stable and they provide us with predictable liquidity through access to retail, commercial and municipal deposits. Also, we continue to maintain and manage multiple other sources of liquidity, including the Federal Home Loan Bank and the Federal Reserve Bank lines of credit and Fed funds agreements.

我們整個堪薩斯州的市場保持非常穩定，它們透過零售、商業和市政存款為我們提供了可預測的流動性。此外，我們繼續維持和管理多個其他流動性來源，包括聯邦住房貸款銀行和聯邦儲備銀行的信貸額度和聯邦基金協議。

Combined, they provide approximately $252 million of additional borrowing capacity as of March 31. Our investment portfolio also has unpledged securities available as collateral for additional borrowings. Stockholders' equity decreased to $126.7 million at March 31, 2024, and our book value totaled $23.14 per share at March 31 compared to $23.17 at December 31.

截至 3 月 31 日，它們總共提供了約 2.52 億美元的額外借貸能力。我們的投資組合還有未質押的證券可作為額外借款的抵押品。截至 2024 年 3 月 31 日，股東權益降至 1.267 億美元，截至 3 月 31 日，我們的每股帳面價值總計為 23.14 美元，而 12 月 31 日為 23.17 美元。

The decrease in stockholders' equity resulted from an increase in net unrealized losses on our investment securities portfolio mainly due to slightly higher interest rates this quarter. Our consolidated and bank regulatory capital ratios as of December 31, 2023 are strong and exceed the regulatory levels considered well capitalized. The bank's leverage ratio was 8.8% at March 31, 2024, while the total risk-based capital ratio was 13.8%.

股東權益減少是由於我們的投資證券投資組合的未實現淨虧損增加，這主要是由於本季利率略有上升。截至 2023 年 12 月 31 日，我們的綜合資本和銀行監理資本比率強勁，超過了資本充足的監理水準。截至2024年3月31日，該行槓桿率為8.8%，總創投率為13.8%。

Now let me turn the call over to Raymond to review highlights of our loan portfolio and credit risk outlook.

現在讓我把電話轉給雷蒙德，回顧我們的貸款組合和信用風險前景的要點。

Thank you, Mark, and good morning to everyone. As mentioned earlier, we enjoyed continued loan growth throughout the quarter mainly due to increases in our residential mortgage and commercial loans while net losses -- loan losses this quarter were very low.

謝謝你，馬克，祝大家早安。如前所述，我們整個季度的貸款持續成長，主要是由於住宅抵押貸款和商業貸款的增加，而淨損失（本季的貸款損失）非常低。

Gross loans outstanding at the end of the quarter totaled $964 million, an increase of $15.4 million or 6.5% on an annualized basis from the previous quarter. Our residential mortgage loan portfolio increased $10.3 million this quarter mainly due to continued demand for our adjustable-rate loan products. Additionally, our construction loan portfolio increased $3.7 million while our commercial real estate loan portfolio increased $2.4 million this quarter.

截至本季末，未償還貸款總額為 9.64 億美元，比上一季增加 1,540 萬美元，年化成長率為 6.5%。本季我們的住宅抵押貸款組合增加了 1,030 萬美元，主要是由於對我們的可調利率貸款產品的持續需求。此外，本季我們的建築貸款組合增加了 370 萬美元，而商業房地產貸款組合增加了 240 萬美元。

Turning to credit quality, at March 31, 2024, non-performing loans consisting mainly of non-accrual loans totaled $3.6 million, an increase of $1.2 million from the prior quarter. Approximately half of this increase was due to increased delinquency associated with 1 customer relationship in the Kansas City metro area.

就信貸品質而言，截至 2024 年 3 月 31 日，主要由非應計貸款組成的不良貸款總額為 360 萬美元，較上一季增加 120 萬美元。這一增長的大約一半是由於堪薩斯城都市區 1 個客戶關係相關的拖欠率增加。

While non-performing loans increased this quarter, they remained low and only totaled 0.38% of gross loans. Total foreclosed real estate decreased $500,000 from the prior quarter and ended at $428,000. The balance of past due loans between 30 and 89 days still accruing interest increased $2.48 million this quarter and totaled $4.1 million or 0.42% of gross loans.

儘管本季不良貸款有所增加，但仍處於較低水平，僅佔貸款總額的 0.38%。止贖房地產總額較上一季減少 50 萬美元，最終為 42.8 萬美元。本季逾期 30 至 89 天仍應計利息的貸款餘額增加了 248 萬美元，總計 410 萬美元，佔貸款總額的 0.42%。

This increase was primarily due to a $1.5 million agricultural loan that was past due at the end of the quarter. That loan has now been paid off. We recorded net loan chargeoffs of $7,000 during the first quarter of 2024 compared to net loan chargeoffs of $47,000 during the first quarter of 2023. Our allowance for credit losses totaled $10.85 million and ended the quarter at 1.13% of gross loans.

這一增長主要是由於本季末逾期的 150 萬美元農業貸款。該貸款現已還清。我們記錄的 2024 年第一季的淨貸款沖銷為 7,000 美元，而 2023 年第一季的淨貸款沖銷為 47,000 美元。我們的信貸損失準備金總額為 1,085 萬美元，本季末佔貸款總額的 1.13%。

Asset quality at Landmark has remained excellent over the last few years and we remain focused on maintaining sound underwriting practices and strong metrics. The current economic landscape in Kansas is healthy. The preliminary seasonally adjusted unemployment rate for Kansas as of March 31 was 2.7% according to the Bureau of Labor Statistics.

Landmark 的資產品質在過去幾年中一直保持出色，我們仍然致力於維持良好的核保實務和強大的指標。堪薩斯州目前的經濟狀況健康。根據勞工統計局的數據，截至 3 月 31 日，堪薩斯州經季節性調整的初步失業率為 2.7%。

In terms of housing, inventory levels for available homes in Kansas continue to impact home prices. The Kansas Association of REALTORS President recently commented that the limited inventory of homes available for sale continues to be an issue as we enter the spring selling season.

在住房方面，堪薩斯州的可用房屋庫存水準繼續影響房價。堪薩斯州房地產經紀人協會主席最近評論說，隨著我們進入春季銷售季節，可供出售的房屋庫存有限仍然是一個問題。

Home prices in March increased 8% in Kansas compared to the same time last year while prices in the Midwest increased 7.5% compared to last year. Home sales in Kansas fell by 7% in March compared to the same period of last year.

堪薩斯州 3 月房價較去年同期上漲 8%，中西部地區房價較去年同期上漲 7.5%。堪薩斯州 3 月房屋銷售量與去年同期相比下降了 7%。

And with that, I thank you and I'll now turn the call back over to Abby.

在此，我感謝您，現在我將把電話轉回給艾比。

Thank you, Raymond. Before we go to questions, I want to summarize by saying we were pleased with our performance for the first quarter of this year with our continued strong loan growth, solid credit quality and well controlled expenses.

謝謝你，雷蒙德。在我們提問之前，我想總結一下，我們對今年第一季的表現感到滿意，貸款成長持續強勁，信貸品質穩定，費用控制良好。

Further, our net interest margin has held up very well in this environment. I want to express my thanks and appreciation to all of the associates at Landmark National Bank for the warm welcome as I joined the company last month. Their daily focus on executing our strategy, delivering extraordinary service to our clients and communities is a key to our success.

此外，在這種環境下，我們的淨利差保持得很好。我想對 Landmark National Bank 的所有員工表示感謝，感謝他們對我上個月加入公司的熱情歡迎。他們每天專注於執行我們的策略，為我們的客戶和社區提供卓越的服務，這是我們成功的關鍵。

With that, I will open the call up to questions that anyone might have.

至此，我將開始電話會議，回答任何人可能提出的問題。

(Operator Instructions) Ross Haberman, RLH Investments.

（操作說明）Ross Haberman，RLH Investments。

Good morning, how are you. Welcome on board, Abby. I haven't had the pleasure of meeting you yet. Could you just give us a little bit of your background as my first question? And the second question is give us a sense of where you're seeing loan demand today and what kind of net loan growth are you expecting in '24? Thank you.

早安你好嗎。歡迎加入，艾比。我還沒有很高興見到你。作為我的第一個問題，您能否向我們介紹一下您的背景？第二個問題是讓我們了解您目前的貸款需求情況以及您預計 24 年的淨貸款成長情況如何？謝謝。

Ross, thank you. I look forward to meeting you in person. So I joined the company on March 29 as stated and I guess I could say I'm about 2/3 of the way through what I anticipate in my entire career being. The first third of that I spent at the Federal Reserve Bank of Kansas City in a variety of capacities and for the last 15 years I've been in a midsized regional bank here in the Kansas City area and I remain in the Kansas City area.

羅斯，謝謝你。我期待著與您見面。因此，如前所述，我於 3 月 29 日加入了公司，我想我可以說我的整個職業生涯已經完成了大約 2/3。其中前三分之一是我在堪薩斯城聯邦儲備銀行以各種身分度過的，在過去 15 年裡，我一直在堪薩斯城地區的一家中型區域銀行工作，並且一直留在堪薩斯城地區。

I was excited about the opportunity to join Landmark probably heavily influenced by the first part of my career where we really understood the importance of community banks. And we've had a lot of change in the industry. There's still a lot of consolidation going on. But I strongly feel that community banks are more important than ever. So that's what brought me here.

我很高興有機會加入 Landmark，這可能是受到我職業生涯第一階段的影響，我們真正了解社區銀行的重要性。我們的行業發生了很多變化。仍有大量整合正在進行。但我強烈感覺到社區銀行比以往任何時候都更重要。這就是我來這裡的原因。

We're seeing strong loan growth in the first quarter across multiple of our business lines. As you noted on the call, it was led by residential mortgages and most of those were purchased money within our footprint. We are seeing strong commercial growth and commercial real estate growth, though too for us and we look forward to capitalizing on some opportunities that are coming.

我們看到第一季多個業務線的貸款強勁成長。正如您在電話中指出的那樣，這是由住宅抵押貸款帶動的，其中大部分是在我們的足跡範圍內購買的資金。我們看到了強勁的商業成長和商業房地產成長，對我們來說也是如此，我們期待著利用即將到來的一些機會。

We don't, Ross, give forward guidance in terms of where we plan to end the year with respect to loan growth, but I think 6.5% annualized based on our first quarter results is probably a good indication of where we might land.

羅斯，我們不會就年底貸款成長計畫給出前瞻性指引，但我認為，根據我們第一季的業績，年化 6.5% 可能是我們可能達到的目標的一個很好的指標。

(Operator Instructions) Michael Zuk, private investor.

（操作員說明）Michael Zuk，私人投資者。

Good morning. I have a question regarding the announced acquisition of Heartland by United Missouri. Will this have any impact on you positive or negative? Is it an opportunity to get new clients from a runoff of UMB?

早安.我對密蘇裡聯合航空宣布收購 Heartland 有疑問。這會對你產生正面還是負面的影響？這是一個從 UMB 決選中獲得新客戶的機會嗎？

Hi, Michael, thanks for your question. It's really hard for me to comment on another bank's acquisition or a combination in our footprint. But I can tell you that I think history would show that any time there's some kind of change in the market that there's always an opportunity for conversation.

你好，邁克爾，謝謝你的問題。我真的很難評論另一家銀行的收購或我們業務的合併。但我可以告訴你，我認為歷史會表明，每當市場發生某種變化時，總是會有對話的機會。

So we will be -- as our teams are always outward facing anyway and working with our customers to help them build their businesses and other aspects of our business, we'll continue to look for every opportunity that comes our way, if it's a consequence of another bank's activities or of our own opportunity in the marketplace.

因此，我們將 - 由於我們的團隊始終面向外，並與我們的客戶合作，幫助他們建立他們的業務和我們業務的其他方面，我們將繼續尋找我們遇到的每一個機會，如果這是一個結果其他銀行的活動或我們自己在市場上的機會。

And as a follow-up question, are you satisfied with your current branch profile or are you looking at expanding and adding branches or consolidating branches? What's your, I guess, take on the branch structure?

作為後續問題，您對當前的分支機構概況是否滿意，或者您是否正在考慮擴展和添加分支機構或合併分支機構？我猜你對分支結構有何看法？

Sure. Happy to comment on my outlook related to that. Here in Kansas City following the acquisition of Freedom Bank and the integration of that, we actually capitalized on an opportunity to consolidate two branches into one. So we are now at 30 locations across our 24 communities.

當然。很高興評論我與此相關的觀點。在堪薩斯城，收購自由銀行並對其進行整合後，我們實際上利用了將兩個分行合併為一個的機會。目前，我們在 24 個社區設有 30 個辦事處。

And like any bank irrespective of size, looking at branch network and looking at customer patterns and how we might best serve our customers is something that we have done here at Landmark, the team that predates me and we will continue to do too.

就像任何一家銀行（無論規模大小）一樣，我們在 Landmark 已經做過一些工作，即研究分行網絡、研究客戶模式以及如何最好地為客戶服務，這個團隊早於我，我們也將繼續這樣做。

Here in my first 100 days, I have a plan to get out and visit all of our locations and I look forward to meeting the associates that are working there. And we will keep you posted as we continue to evaluate our footprint and what best meets the needs of our customers and communities.

在我上任的前 100 天裡，我計劃出去參觀我們所有的辦公地點，並期待與在那裡工作的同事見面。當我們繼續評估我們的足跡以及最能滿足客戶和社區需求的方式時，我們將隨時向您通報情況。

And then one final question. Kansas is principally an agricultural state and of course there's some important pending legislation in Congress. What's your outlook on agricultural lending going forward?

然後是最後一個問題。堪薩斯州主要是一個農業州，當然國會還有一些重要的待決立法。您對未來農業貸款的前景如何？

Michael, this is Raymond McLanahan, I appreciate the question. We stay really attuned to what's going on in Congress and anything that they do to benefit our agricultural producers and our ag customers benefits the bank and so we're happy to see what comes out of Congress this year. And any other actions that they may or may not take that helps increase our competitive advantage would also be a benefit to us as a bank.

邁克爾，我是雷蒙德·麥克拉納漢，我很欣賞這個問題。我們非常關注國會正在發生的事情，以及他們為我們的農業生產者和我們的農業客戶所做的任何事情都會使銀行受益，因此我們很高興看到今年國會的結果。他們可能採取或可能不採取的任何其他有助於提高我們競爭優勢的行動也將有利於我們作為銀行。

So we're constantly monitoring it. But as far as our customers and the ag economy here in Kansas, we continue to monitor well and we're currently in the midst of our renewal season and we're pleased with some of the operating results that some of our ag producers are demonstrating.

所以我們一直在監控它。但就我們的客戶和堪薩斯州的農業經濟而言，我們將繼續進行良好的監控，目前正處於更新季節，我們對我們的一些農業生產商展示的一些營運結果感到滿意。

Do you think there's an opportunity to increase your ag lending?

您認為有機會增加農業貸款嗎？

I think there's always an opportunity to increase our ag lending. It's an important part of our business and it's something that our commercial bankers are regularly focused on.

我認為增加農業貸款的機會總是存在的。這是我們業務的重要組成部分，也是我們的商業銀行家經常關注的問題。

Well, congratulations to the team. It looks like you're off to a good start in 2024.

嗯，恭喜團隊。看起來 2024 年你有一個好的開始。

Ross Haberman, RLH Investments.

羅斯哈伯曼，RLH 投資公司。

Just 2 follow-up questions. First, the margin or the spread. Most banks are seeing continued pressure on their margins. What do you expect, given, let's say, they keep rates the same throughout '24, what's your thought on the margin with that scenario?

只有 2 個後續問題。首先，保證金或點差。大多數銀行的利潤率都面臨著持續的壓力。假設他們在整個 24 年保持利率不變，您對此有何期望？

And two, your nonaccruals have been remarkably low. Any concerns or any issues on the criticized or delinquencies in the nonaccruals because they look remarkably good?

第二，你的非應計費用非常低。由於非應計項目看起來非常好，因此對非應計項目的批評或拖欠有任何擔憂或問題嗎？

Ross, thanks for that question. The margin, as you saw, was increased just slightly 1 basis point, 3.11% up to 3.12%. Earlier in the year, I would have been a little more optimistic. I think we're continuing to see pressure on dealing with customers on increases to our deposit costs and I continue to see that happening, but we still have the opportunities to increase our loan rates as they come due for renewals.

羅斯，謝謝你提出這個問題。正如您所看到的，利潤率僅略微增加了 1 個基點，從 3.11% 上升至 3.12%。今年早些時候，我會更加樂觀。我認為我們在與客戶打交道時繼續面臨存款成本增加的壓力，而且我繼續看到這種情況發生，但我們仍然有機會在貸款到期續約時提高貸款利率。

But if I'm going to give a forecast, which we don't have any forward-looking guidance, I think that we're going to be treading water going steady. We were hoping for maybe a rate increase on the short end, but that doesn't look likely in my crystal ball, which isn't very good potentially, Ross.

但如果我要給一個預測，我們沒有任何前瞻性指導，我認為我們將穩步前進。我們希望短期內利率可能會上漲，但在我的水晶球中看起來不太可能，羅斯，這可能不太好。

But we kind of think that we will go somewhat flat throughout the rest of the year on a margin basis. And then as far as the nonaccrual loans, we continue to work diligently with our customers and have prided ourselves over the years with the quality of loans and customers that we associate with and I think that the low levels of nonaccruals are a factor relating to that relationship we have.

但我們認為，今年剩餘時間裡，我們的利潤率將會持平。就非應計貸款而言，我們繼續與客戶勤奮合作，多年來我們對與我們相關的貸款和客戶的質量感到自豪，我認為非應計貸款水平較低是與此相關的一個因素我們有關係。

And we continue to monitor it. We're hearing that commercial real estate and office type buildings are starting to experience problems also on the coast but moving its way through the Midwest. But we really don't have very much exposure to that type of lending for Landmark National Bank. Hopefully, that answers your question.

我們將繼續對其進行監控。我們聽說商業房地產和辦公大樓在沿海地區也開始遇到問題，但正在向中西部蔓延。但我們確實沒有太多接觸 Landmark National Bank 的此類貸款。希望這能回答你的問題。

Yes. Just one final if you can indulge me with one more. A number of banks are restructuring some of their held-for-sale securities if they can make back the hit in, I don't know, two years or less. You had about an [$18 million] AOCI at the end of March. What was the average LIFO duration of that and have you looked at that possibility to restructure some, sell it and reinvest it and what kind of breakeven would be palatable for you to do that?

是的。如果你能再給我一次的話，就只有最後一場了。許多銀行正在重組一些持有待售的證券，如果它們能夠在（我不知道）兩年或更短的時間內彌補損失。3 月底，您的 AOCI 約為 [1800 萬美元]。後進先出的平均持續時間是多少？

Ross, another good question. As you probably saw in the fourth quarter, we did sell some of our investments and incurred the $1.2 million loss as we evaluated. The two year breakup maybe a little longer than we would like to see. We'd like to see something that's a little closer to one year or slightly over that potentially.

羅斯，另一個好問題。正如您可能在第四季度看到的那樣，我們確實出售了一些投資，並根據我們的評估產生了 120 萬美元的損失。兩年的分手可能比我們希望看到的時間還要長。我們希望看到更接近一年或稍微超過一年的時間。

But we are continuing to model some of those opportunities and thinking about restructuring our investment portfolio if it would make sense in those guidelines and be good for our shareholders on a longer-term basis. And I think you asked what our average life of the portfolio was, I think that's 4.2 years.

但我們正在繼續對其中一些機會進行建模，並考慮重組我們的投資組合，如果這在這些指導方針中有意義並且從長遠來看對我們的股東有利的話。我想你問了我們投資組合的平均壽命是多少，我認為是 4.2 年。

Yes, I did. 4.2 years, you said, Mark?

是的，我做到了。 4.2 年，你說，馬克？

Yes, that's our duration.

是的，這就是我們的持續時間。

As there are no additional questions waiting at this time, I'd like to hand the conference back over to Abby Wendel for closing remarks.

由於目前沒有其他問題，我想將會議交回給 Abby Wendel 進行閉幕致詞。

Thank you. I'd like to thank everyone for participating in today's earnings call. I appreciate your continued support and confidence in the company. I look forward to sharing news related to our second quarter 2024 results at our next earnings conference call. Hope you have a great day.

謝謝。我要感謝大家參加今天的財報電話會議。感謝您對公司一如既往的支持與信任。我期待在下一次收益電話會議上分享與 2024 年第二季業績相關的新聞。希望您度過愉快的一天。