Landmark Bancorp, Inc. (LARK): BCG Matrix [Dec-2025 Updated]

You're trying to figure out where Landmark Bancorp, Inc. (LARK) is truly winning as we close out 2025, and frankly, the picture is sharp: while net earnings have surged 44.4% and the core deposit base remains a rock-solid $1.3 billion, you can't ignore the drags, like the $9.2 million in unrealized losses or the efficiency ratio sitting at 60.7%. See below for the definitive BCG matrix breakdown that clearly shows which parts of LARK are the Stars ready for investment, which are the Cash Cows funding the operation, which are the Dogs needing repair, and which Question Marks require immediate strategic decisions.

Background of Landmark Bancorp, Inc. (LARK)

You're looking at Landmark Bancorp, Inc. (LARK), which you should know is a bank holding company incorporated under the laws of the State of Delaware. Honestly, its main engine is its wholly-owned subsidiary, Landmark National Bank. That bank is a community banking organization focused squarely on Kansas. As of late 2025, Landmark National Bank operates 30 community banking locations spread across 24 communities throughout the state of Kansas. Plus, the firm also has a hand in insurance through Landmark Risk Management, Inc.

Let's look at the numbers coming out of the third quarter of 2025, since that's the freshest data we have. Landmark Bancorp, Inc. posted a net income of $4.9 million for that quarter. That's a solid jump, representing a 24.1% increase year-over-year. You'll see the diluted earnings per share (EPS) hit $0.85 for the same period. The management team, led by President and CEO Abby Wendel, seems to be keeping things tight on the operational side; the efficiency ratio improved to 60.7% in Q3 2025, which is much better than the 66.5% seen in the third quarter of 2024.

The core banking metrics show some interesting dynamics. The net interest margin held steady at a healthy 3.83% in the third quarter of 2025. While the gross loans on the balance sheet at September 30, 2025, were flat around $1.1 billion, the average loan balances actually grew by $26.7 million during that quarter, suggesting a steady underlying lending pace. Deposits were sitting at $1.3 billion at the end of September 2025. To reward shareholders, the company declared a 5% stock dividend, marking the 25th consecutive year they've done that, which definitely speaks to a consistent capital return policy.

Landmark Bancorp, Inc. (LARK) - BCG Matrix: Stars

You're looking at the engine room of Landmark Bancorp, Inc.'s current performance-the Stars quadrant. These are the business units or products that have a commanding market share in markets that are still growing fast. Honestly, these areas are where the bank is winning right now, but they definitely consume a lot of cash to maintain that leadership and fuel further expansion. If Landmark keeps this success going as the market matures, these units are set up to transition into Cash Cows down the road. The strategy here is clear: keep investing heavily to defend that high market share.

The evidence for these high-growth, high-share areas is right there in the recent financials. We see strong momentum driving the top and bottom lines, which is exactly what you expect from a Star segment. It's about capturing market leadership while the opportunity is hot.

Here are the key performance indicators that place these segments in the Star category:

• - Net Interest Income (NII) growth, up 21.5% year-over-year in Q3 2025.
• - Retained residential mortgage loans, growing by $21.5 million in Q2 2025.
• - Overall net earnings growth, up 44.4% for the first nine months of 2025.
• - Commercial loan portfolio expansion, with $13.4 million growth in Q2 2025.

To give you a clearer picture of the growth velocity underpinning this Star classification, look at how the key profitability and balance sheet metrics stacked up across the second and third quarters of 2025. The growth in the loan book, which fuels NII, is the primary driver here.

The growth in the residential mortgage portfolio, specifically the retained adjustable-rate loan products, accounted for $21.5 million of the total gross loan increase in Q2 2025. That's a clear leader in a segment where demand is high. Also in Q2 2025, the commercial portfolio added another $13.4 million in growth, showing broad strength in the lending engine.

The result of this aggressive, high-share pursuit is clear in the profitability figures. For the first nine months of 2025, net earnings reached $14.0 million, a significant jump of 44.4% compared to the first nine months of 2024. Furthermore, Q3 2025 saw the efficiency ratio improve to 60.7%, suggesting that while these Stars consume cash, they are becoming more efficient at generating returns on that investment. Finance: draft 13-week cash view by Friday to ensure sufficient liquidity for continued Star investment.

Landmark Bancorp, Inc. (LARK) - BCG Matrix: Cash Cows

You're looking at the bedrock of Landmark Bancorp, Inc.'s financial structure here. These are the business units that have already won their market segment and now just need disciplined support to keep printing cash. They aren't flashy, but they fund everything else.

Cash Cows, by definition, are market leaders in mature spaces, meaning they generate more cash than they need for maintenance. For Landmark Bancorp, Inc., this stability is clearly visible in its funding base and consistent capital returns. We see high market share reflected in the sheer size of their deposit base, which acts as cheap, reliable funding.

Because the market is mature, you don't need massive spending on promotion; you just need to maintain efficiency and quality. Investments here are smart-think infrastructure upgrades that shave basis points off operating costs, not splashy new product launches. This is where the real, dependable earnings come from.

Here are the key metrics that define these cash-generating units for Landmark Bancorp, Inc. as of the third quarter of 2025:

• - Core deposit base, totaling $1.3 billion at September 30, 2025.
• - Commercial Real Estate (CRE) portfolio, a stable, large portion of the $1.1 billion gross loans.
• - Consistent dividend policy, declaring a $0.21 cash dividend and a 5% stock dividend.
• - Strong Return on Average Equity (ROAE) of 13.00% in Q3 2025.

The profitability metrics from Q3 2025 really underscore the 'high profit margin' aspect of a good Cash Cow. Look at the efficiency ratio; it shows they are running a tight ship, which directly translates to more cash flowing to the bottom line.

That 13.00% ROAE is the payoff for years of building a strong, low-cost funding structure. It's a clear signal that this part of the business is highly productive relative to the equity invested in it. Also, note the dividend policy; declaring a $0.21 cash dividend alongside the 5% stock dividend-the 25th consecutive year for that stock payout-shows management's intent to 'milk' these gains passively while rewarding shareholders.

The loan portfolio, anchored by the $1.1 billion in gross loans, with CRE being a major, stable component, is the asset side generating that interest income. The deposit base of $1.3 billion is the low-cost fuel keeping the engine running smoothly. Honestly, this is the kind of dependable performance you want to see funding the riskier Question Marks.

Finance: draft 13-week cash view by Friday.

Landmark Bancorp, Inc. (LARK) - BCG Matrix: Dogs

You're looking at the units within Landmark Bancorp, Inc. (LARK) that fit the classic definition of a Dog in the Boston Consulting Group Matrix: businesses operating in low-growth markets with a low relative market share. These segments often consume management time and capital without providing significant returns, acting as cash traps. Honestly, the goal here is minimization or divestiture, not investment.

For Landmark Bancorp, Inc., the indicators pointing toward Dog status often relate to specific asset quality issues or legacy holdings that tie up capital. For instance, consider the investment securities portfolio. At the close of Q3 2025, this portfolio was holding $9.2 million in unrealized net losses. While this was an improvement, as the loss figure declined by $4.7 million from the $13.9 million seen at June 30, 2025, the presence of such a significant unrealized loss in a low-growth interest rate environment suggests a segment that requires careful management to avoid future capital strain. It's defintely a drag on Accumulated Other Comprehensive Income.

Another area demanding attention involves legacy non-performing credits. The cleanup efforts in Q3 2025 were substantial, requiring a $7.0 million reduction in non-performing loans (NPLs) due to the resolution of a single commercial credit. This action brought the period-end NPL balance down to $10.0 million as of September 30, 2025. However, this resolution was costly, resulting in net loan charge-offs totaling $2.3 million for the quarter, which is a clear consumption of earnings that a true Cash Cow wouldn't necessitate.

Here's a quick look at the key metrics associated with these lower-performing or problem areas as of September 30, 2025:

Beyond these specific credit issues, you must also account for certain non-strategic, low-yield assets that are necessary for liquidity but not profit. These are the assets that Landmark Bancorp, Inc. must hold to meet regulatory or operational requirements-they are not there to drive growth or high returns, but simply to keep the lights on and maintain the required balance sheet structure. They represent capital that could otherwise be deployed into higher-growth areas, such as the loan portfolio which saw average balances grow by $26.7 million in the quarter.

The strategy for these Dog units is clear: avoid expensive turn-around plans. For Landmark Bancorp, Inc., this means aggressively managing down the legacy credit exposure and minimizing the capital tied up in securities that carry significant unrealized risk, while accepting the low-yield assets as a necessary operational cost. You want to harvest any remaining cash flow while planning for their eventual exit or write-down.

Finance: Review the carrying cost and liquidity requirement of all non-strategic assets by end of Q4 2025.

Landmark Bancorp, Inc. (LARK) - BCG Matrix: Question Marks

You're looking at business units that are in high-growth markets but haven't yet captured significant market share. For Landmark Bancorp, Inc. (LARK), these are the areas demanding cash investment now, hoping they mature into Stars later. They consume capital because they are in growing segments, but the low market share means returns are currently slim. Honestly, these units are likely losing money today, but the potential upside in a growing market is why we keep feeding them resources.

The strategy here is clear: either invest heavily to capture market share quickly, or decide they are better off divested before they become Dogs. We need to see rapid adoption or make a tough call. Here's a look at the specific areas exhibiting Question Mark characteristics based on recent performance data.

Consider the areas showing high growth potential but perhaps needing that critical investment to solidify their position:

• - Non-interest income from mortgage sales and fees, which grew 12.2% QoQ in Q3 2025.
• - Brokered deposits, the primary driver of the $51.6 million deposit increase in Q3 2025.
• - Continued efficiency improvement, with the ratio at 60.7% in Q3 2025, requiring further tech investment.
• - Construction and land loans, a smaller, high-volatility segment with $3.3 million growth in Q1 2025.

The growth in non-interest income, particularly from mortgage sales, shows a market segment that is responding well to current efforts, but it needs more scale to be a Cash Cow. The 12.2% quarter-over-quarter growth in non-interest income from mortgage sales and fees in Q3 2025 is a positive signal for this high-growth area. Still, the reliance on brokered deposits to boost overall funding suggests a need to invest in lower-cost, more stable core deposit gathering to reduce funding costs, which is a classic Question Mark investment need.

We can map out the recent performance metrics that signal this high-growth, high-cash-consumption profile:

That $3.3 million growth in construction and land loans in Q1 2025 is a clear example of investing in a growing, albeit volatile, asset class. It consumes capital to originate and manage these loans, but the market for new development is expanding. To turn this into a Star, Landmark Bancorp, Inc. (LARK) needs to quickly increase its market share in this lending niche, which means more aggressive marketing or underwriting capacity.

The efficiency ratio of 60.7% in Q3 2025 shows improvement, but achieving true Star status often requires further investment in technology and process automation to drive that ratio down further, perhaps into the 50s. That investment is the cash burn associated with a Question Mark. You're spending to get better, faster, and bigger in a market that's moving.

The reliance on brokered deposits for the $51.6 million period-end deposit increase in Q3 2025 highlights the cash consumption aspect. While brokered deposits provide quick funding for loan growth, they are typically more expensive and less sticky than core deposits, meaning the cash flow from this funding source is less reliable and potentially less profitable in the long run. This is where the heavy investment decision comes in: do you pour cash into marketing and relationship banking to build core deposits, or do you accept the higher cost of brokered funds to keep loan growth going?

You've got to decide soon if these high-growth areas are worth the capital drain. Finance: draft the projected cash flow impact of a 10% increase in core deposit marketing spend versus a 10% reduction in brokered deposit reliance by next Tuesday.