Landmark Bancorp (LARK)

What Moves the Stock

1. 01Net interest margin expansion/compression driven by Federal Reserve policy and deposit pricing competition
2. 02Agricultural loan portfolio performance tied to Kansas farm economy, crop prices, and weather conditions
3. 03Loan growth rates in commercial and agricultural segments relative to Kansas GDP growth
4. 04Credit quality metrics, particularly agricultural loan delinquencies and charge-offs during commodity downturns
5. 05Deposit retention and cost of funds as customers shift from non-interest to interest-bearing accounts
6. 06Net interest income from commercial and agricultural loans (estimated 65-70% of revenue)
7. 07Residential mortgage lending and portfolio income (estimated 15-20% of revenue)
8. 08Fee income from deposit services, wealth management, and mortgage banking (estimated 10-15% of revenue)

LARK Chart

My Notes

• value - Trading at 1.1x price/book and 7.4x EV/EBITDA with 12.4% ROE attracts value investors seeking undervalued community banks…
• High positive sensitivity to rising rates through 2024-2025 as asset yields repriced faster than deposit costs, expanding NIM.
• Watch on earnings: Federal Funds Rate and forward guidance for impact on net interest margin trajectory, Kansas farm income and agricultural commodity prices (corn, soybeans, wheat, cattle) for credit quality indicators, 10-Year Treasury yield and mortgage rates for residential lending volumes and mortgage banking revenue.