Landmark Bancorp, Inc. (LARK): Business Model Canvas [Dec-2025 Updated]

You're looking to deconstruct how a regional player like Landmark Bancorp, Inc. (LARK) actually makes money, especially when they posted a solid Q3 2025 net income of $4.9 million while navigating today's rate environment. Honestly, their model isn't rocket science; it's about deep Kansas roots-using their $1.3 billion in core deposits to fund local loans, driving that $14.1 million in Net Interest Income. As someone who's mapped out balance sheets for years, I can tell you the real story is in the details of their community-focused value proposition versus their cost of funds. Dive into the full Business Model Canvas below to see exactly how their key activities and resources translate into consistent shareholder returns.

Landmark Bancorp, Inc. (LARK) - Canvas Business Model: Key Partnerships

You're looking at the network Landmark Bancorp, Inc. relies on to execute its community banking model across Kansas. These relationships are critical for everything from funding to regulatory compliance and growth initiatives.

The core of the partnership strategy involves maintaining strong ties with large institutional capital sources while deeply embedding with local Kansas commerce for loan origination. For instance, the Q2 2025 filings showed significant activity from major asset managers.

Here is a look at the partners where we have concrete financial data or public roles:

The reliance on the community network is evident in the loan book; the $\text{16.0\%}$ annualized loan growth in Q2 2025 was driven by residential real estate, commercial, and commercial real estate loans, all segments that benefit from local market knowledge.

You can see the direct involvement of external parties in the capital structure and past strategic moves. For the Freedom Bancshares, Inc. acquisition, which resulted in total assets of approximately $\text{\$1.5 billion}$ and total deposits of approximately $\text{\$1.3 billion}$ post-merger, specific advisors were engaged.

The following list details the known involvement in strategic and capital-raising activities:

• Correspondent banks for liquidity and services: Specific names and associated liquidity figures are not publicly itemized in recent disclosures.
• Technology vendors for data processing and digital banking: Specific vendor contracts and associated costs (like the increase in noninterest expense driven by data processing in Q2 2025) are proprietary.
• Local businesses for commercial loan referrals: The bank's focus is serving business owners across Kansas, with commercial loans growing by $\text{\$13.4 million}$ in Q2 2025.
• Financial/Legal advisors for strategic M&A: Advisors were used for the October 2022 merger, which expanded the branch network to $\text{31}$ locations in $\text{24}$ communities.

The bank's efficiency ratio improved to $\text{60.7\%}$ in Q3 2025, suggesting that existing vendor and operational partnerships are being managed effectively, even as they look to add to their customer base.

Landmark Bancorp, Inc. (LARK) - Canvas Business Model: Key Activities

You're looking at the core engine of Landmark Bancorp, Inc. as of late 2025. These are the day-to-day, mission-critical actions that keep the lights on and the balance sheet growing. Honestly, for a community bank, it all boils down to managing money flow-taking deposits and putting them to work in loans-all while keeping an eye on the risks.

Commercial and residential loan origination and servicing is central. Landmark National Bank is actively putting capital to work. As of September 30, 2025, gross loans totaled $1.1 billion. The focus on growing that asset base is clear; average loan balances grew by $26.7 million in the third quarter of 2025 alone. This activity spans commercial, commercial real estate, and agricultural loans, which are the bread and butter of their Kansas footprint.

The second major activity is deposit gathering across 30 Kansas branch locations. This physical network is key to securing the low-cost funding needed to fuel loan growth. Landmark National Bank operates 30 community banking locations across 24 communities in Kansas. This branch network is where they build those relationships necessary for core deposit gathering, which management has cited as a strategic focus.

Next up is active asset/liability management to maintain NIM of 3.83%. This is the discipline of managing the spread between what they earn on assets (like loans) and what they pay on liabilities (like deposits). For the third quarter of 2025, Landmark Bancorp, Inc. successfully held its Net Interest Margin (NIM) steady at 3.83%. This is a strong figure, especially when compared to the 3.25% NIM reported in the second quarter of the prior year. Here's the quick math: keeping that margin steady while growing the loan book is how they drive core profitability.

You can't talk about lending without discussing managing credit quality and provisioning for loan losses. This is the risk management side of the house. As of September 30, 2025, the allowance for credit losses was $12.3 million. That reserve represented 1.10% of total gross loans. Still, credit quality isn't static; the bank reported net loan charge-offs totaling $2.3 million in Q3 2025, though non-accrual loans did decline by $7.0 million that same quarter due to a specific resolution.

Finally, underpinning all of this is delivering personalized customer service via the branch network. This activity translates directly into operational efficiency and deposit stickiness. The bank improved its efficiency ratio to 60.7% in Q3 2025, down from 66.5% in Q3 2024, showing they are managing costs while servicing their footprint.

Here are some key financial metrics that reflect the outcomes of these activities for the third quarter of 2025:

The commitment to shareholder returns is also a key activity outcome, evidenced by the declaration of a cash dividend of $0.21 per share and a 5% stock dividend in Q3 2025.

You should review the latest loan portfolio composition breakdown against the commercial concentration limits by next Tuesday.

Landmark Bancorp, Inc. (LARK) - Canvas Business Model: Key Resources

You're looking at the core assets that make Landmark Bancorp, Inc. run, the tangible and intangible things they absolutely must have to deliver their value proposition. Honestly, for a community bank, this mix of capital, physical presence, and human expertise is what sets the stage for everything else.

Financial capital is definitely a bedrock. As of September 30, 2025, Landmark Bancorp, Inc. reported stockholders' equity of $155.7 million. This figure reflected a $7.4 million increase during the third quarter, driven by net earnings and a decline in other comprehensive losses on investment securities. This equity base supports their operations and regulatory standing.

The physical footprint remains a critical resource for a relationship-focused community bank. Landmark National Bank maintains an extensive physical branch network across 23 Kansas communities. Specifically, as of late 2025, Landmark National Bank operates 30 community banking locations across 24 Kansas communities, plus they have a loan production office in Kansas City, MO. That local presence is how they connect with their customer segments.

The human element is just as important as the balance sheet. Landmark Bancorp relies on an experienced management team and local decision-makers. For instance, Abigail M. Wendel serves as President and CEO, guiding the bank's strategy. Local decision-making helps them stay true to their community banking roots, which is a key differentiator in the market.

Funding stability comes from their deposit base. The core deposit base totaled $1.3 billion as of Q3 2025. More precisely, period-end deposit balances reached $1.328766 billion (or $1,328,766 thousand) at September 30, 2025. The growth in deposits this quarter, up $51.6 million, was supported by increases in money market, checking, and non-interest-bearing demand deposits, which helps sustain their low-cost core deposit funding.

Underpinning the service delivery is the technology stack. This includes the digital banking platform and core processing systems. While the physical branches are key, the digital tools allow for efficient service delivery across their footprint. Here's a quick look at some key financial metrics from that Q3 2025 period:

These resources are supported by strong operational performance metrics, which you can see summarized here:

• Return on Average Assets (ROAA): 1.21%
• Return on Average Equity (ROAE): 13.00%
• Non-accrual loans declined by $7.0 million in Q3 2025
• Net interest income grew 21.5% year-over-year in Q3 2025
• Declared 5% stock dividend for the 25th consecutive year

Finance: draft 13-week cash view by Friday.

Landmark Bancorp, Inc. (LARK) - Canvas Business Model: Value Propositions

You're looking at the core promises Landmark Bancorp, Inc. (LARK) makes to its customers and shareholders as of late 2025. These aren't abstract goals; they are backed by recent financial performance and operational structure.

Community-focused banking with local decision-making is central to the offering. Landmark National Bank is a Kansas community banking organization, headquartered in Manhattan, Kansas, and it operates 29 community banking locations across 24 communities in the state of Kansas. This structure supports localized credit and service decisions.

The bank provides a full range of deposit, lending, and trust services. For depositors, this includes non-interest bearing demand, money market, checking, and savings accounts, along with certificates of deposit. The overall value is delivering comprehensive financial tools through its subsidiary, Landmark National Bank.

A key proposition is the strong capital position exceeding well-capitalized regulatory levels. As of September 30, 2025, stockholders' equity stood at $155.7 million. Management affirmed that the consolidated and bank regulatory capital ratios as of that date exceeded the levels considered well capitalized. This strength underpins stability for clients.

Shareholders receive consistent shareholder returns. Landmark Bancorp declared a cash dividend of $0.21 per share in the third quarter of 2025. Furthermore, the company announced a 5% stock dividend, marking the 25th consecutive year for this specific stock dividend. The forward annual cash payout is projected at $0.80 per share.

The service model is explicitly relationship-based for individuals and businesses. This is reinforced by the bank's reported resilient, relationship-driven approach to credit and service delivery. This focus helps drive loan growth, which saw average loan balances increase by $26.7 million sequentially in Q3 2025.

Here's a quick look at the financial performance supporting these value propositions from the third quarter of 2025:

The delivery of these services is supported by operational efficiency, as shown by the improved efficiency ratio of 60.7% in Q3 2025. The bank's commitment to its local footprint is evident in its deposit base, which totaled $1.3 billion at the end of the third quarter.

The value proposition to the market can be summarized by the following operational strengths:

• Community banking locations: 29 across Kansas.
• Cash Dividend per Share: $0.21.
• Stock Dividend Streak: 25th consecutive year of 5% stock dividend.
• Net Interest Margin (NIM): 3.83%.
• Loan Growth (Sequential Q2 to Q3 2025): Supported by $26.7 million average loan balance increase.

Finance: draft 13-week cash view by Friday.

Landmark Bancorp, Inc. (LARK) - Canvas Business Model: Customer Relationships

You're running a community bank in a market where digital is king, so your customer relationships have to be rock solid where it counts-in person and with dedicated experts. For Landmark Bancorp, Inc., the relationship focus is definitely the core of how they operate, especially given their Kansas footprint.

High-touch, personalized service through branch staff

The strategy here is leaning into the community bank feel. Landmark National Bank maintains a physical presence, which is key for that high-touch service. They are committed to leveraging local decision-making to meet the unique needs of individuals and local enterprises. Honestly, this is what separates them from the big national players.

• Landmark National Bank has 30 community banking locations.
• These locations serve 24 communities across Kansas.
• The bank emphasizes personalized service as a core tenet.

Dedicated commercial and mortgage loan officers

The growth in the loan book shows these dedicated officers are busy. They are driving the engine of the bank by focusing on lending, which is where the relationship expertise really pays off. If onboarding takes 14+ days, churn risk rises, so quick, local loan decisions are defintely a relationship builder here.

Here's the quick math on what the loan teams accomplished in the second quarter of 2025:

Total gross loans for Landmark Bancorp, Inc. exceeded $1.1 billion as of June 30, 2025.

Focus on strengthening existing customer relationships

Management has explicitly stated they continue to work on strengthening existing customer relationships while growing lending and fee businesses. A concrete sign of commitment to their existing base is the consistent return of capital. They declared a cash dividend of $0.21 per share for the second quarter of 2025, marking their 96th consecutive quarterly cash dividend. This stability helps reinforce trust.

Automated self-service via digital and mobile banking

While the emphasis is clearly on the human touch, Landmark Bancorp, Inc. does offer digital channels, listing Online & Mobile services under its Personal Banking Solutions. The industry trend shows a strong push toward digital for routine transactions, so having these capabilities is table stakes now. The bank is focused on initiatives to gather branch deposits, which often involves guiding customers from the branch to digital tools for convenience.

• Net Interest Margin (NIM) for Q2 2025 was 3.83%.
• The efficiency ratio improved to 62.8% in Q2 2025.
• Book value per share was $25.66 at June 30, 2025.

Finance: draft 13-week cash view by Friday.

Landmark Bancorp, Inc. (LARK) - Canvas Business Model: Channels

You're looking at how Landmark Bancorp, Inc. reaches its Kansas customer base to deliver its value proposition. For a community bank, the channel mix is a blend of traditional, high-touch service and necessary digital tools. Honestly, the physical presence remains a core differentiator in their market.

The physical branch network of Landmark National Bank is the bedrock of its channel strategy, serving as the primary touchpoint for deposit gathering and relationship-based lending. As of late 2025, Landmark National Bank operates exactly 29 locations spread across 23 communities throughout Kansas. This physical footprint supports their community banking focus, which management emphasized in Q3 2025 earnings calls as key for deposit gathering.

The digital channels are integrated to support, not replace, the physical network. Landmark Bancorp combines these traditions with advanced digital capabilities. You see this in their offering of online and mobile platforms designed for secure account access, bill payment, and mobile deposits. While specific user adoption rates aren't public in the latest reports, the bank's operational efficiency, which improved to an 60.7% efficiency ratio in Q3 2025, suggests they are managing technology costs effectively alongside their physical operations.

For lending, the model relies on direct engagement. This involves direct loan officers for commercial and mortgage lending, which is crucial for originating the loans that drove a 16.0% annualized growth in gross loans as of June 30, 2025, pushing total gross loans over $1.1 billion. This direct sales force works in concert with the branch staff to serve the local enterprises and individuals driving that loan growth.

Finally, the supporting infrastructure includes standard banking access points. This covers the network of ATMs integrated with their branch system and telephone banking services, ensuring customers have basic transactional access outside of branch hours. The bank's total deposits stood at $1.3 billion as of September 30, 2025, showing the scale these combined channels manage.

Here's a quick look at the scale of the operation supporting these channels as of the third quarter of 2025:

You can see the emphasis is heavily weighted toward the physical and direct relationship channels, which aligns with their community bank positioning. The digital layer is there to provide convenience, but the relationship officers and branches are where the major revenue-generating activities-lending and deposit gathering-are anchored.

The key access points Landmark Bancorp, Inc. uses are:

• Physical branch network of 29 locations in Kansas.
• Online banking and mobile applications for remote access.
• Direct loan officers driving commercial and mortgage production.
• ATMs and telephone banking services for basic transactions.

Finance: review the Q3 2025 efficiency ratio of 60.7% against the Q2 ratio of 62.8% to quantify digital channel impact by Friday.

Landmark Bancorp, Inc. (LARK) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Landmark Bancorp, Inc. as of late 2025, based on their recent lending and deposit activity.

The primary focus for Landmark National Bank remains serving individuals and families across its Kansas footprint. This segment drives significant loan demand, as evidenced by the residential mortgage portfolio growth. For the three months ended June 30, 2025, one-to-four family residential real estate loans increased by $21.5 million. This group also forms the backbone of the retail deposit base, which totaled $1.3 billion as of September 30, 2025.

Local small to mid-sized commercial enterprises are another key segment, supported by the bank's commercial and commercial real estate (CRE) lending. The loan growth in the second quarter of 2025 shows direct engagement with these businesses. You can see the breakdown of the $42.9 million total gross loan increase during that quarter:

The total gross loans outstanding at June 30, 2025, exceeded $1.1 billion.

Landmark Bancorp, Inc. explicitly targets agricultural businesses within its Kansas communities. While specific loan volume for this category isn't isolated in the latest growth figures, agriculture loans are part of the lending products offered alongside one-to-four family residential real estate, construction and land, commercial, and CRE loans. The bank's operational footprint supports this focus:

• Geographic presence across eastern, central, southeast, and southwest Kansas.
• Operates 30 community banking locations.
• Serves 24 communities across the state of Kansas.

The deposit side of the business also segments its customers, particularly those with larger balances, which are subject to seasonal fluctuations. The linked-quarter deposit changes as of September 30, 2025, show activity across core retail and business deposit types:

• Certificates of deposit grew by $22.9 million.
• Interest checking and money market deposits increased by $16.5 million.
• Non-interest checking grew by $14 million.

The bank has noted in the past that concentrations of large deposits from clients with balances above FDIC insurance limits represent a risk, suggesting public funds or large corporate/institutional deposits are a segment whose behavior is closely watched. The loan-to-deposit ratio stood at 83.4% at September 30, 2025, indicating sufficient liquidity to fund future growth from these customer bases.

Landmark Bancorp, Inc. (LARK) - Canvas Business Model: Cost Structure

You're looking at the expense side of Landmark Bancorp, Inc. (LARK)'s operations as of late 2025. For a community bank, the cost structure is heavily weighted toward the cost of money and the cost of maintaining its physical and digital footprint across Kansas. We need to see where the dollars are going to understand the efficiency ratio improvements, like the jump to 60.7% in Q3 2025.

The single largest variable cost for Landmark Bancorp, Inc. (LARK) is the money it pays out to depositors and lenders. The prompt suggests the cost of funds-interest expense on deposits and borrowed funds-was 2.44% in Q3 2025. This is a critical metric because even small changes here significantly impact the net interest margin, which itself held steady at a healthy 3.83% in Q3 2025. To give you context on the funding mix leading into Q3, the average rate paid on interest-bearing deposits in the second quarter of 2025 was 2.14%, while the average rate on other borrowed funds was 4.98%.

Non-interest expense is the next major bucket, covering everything outside of interest paid on liabilities. For the first nine months of 2025, Landmark Bancorp, Inc. (LARK) reported total non-interest expense of $44.84 million. This covers salaries, benefits, and the operational costs of running 30 community banking locations. The quarterly non-interest expense in Q2 2025 was $11 million.

Within non-interest expense, technology use is a clear driver of sequential cost changes. You saw data processing expense increase by $233K quarter-over-quarter in Q2 2025 due to added services and account growth. For Q3 2025, the specific data processing cost was reported at $476K.

Credit quality management directly impacts expenses through the provision for credit losses. For Q2 2025, Landmark Bancorp, Inc. (LARK) recorded a provision for credit losses of $1.0 million. However, as asset quality improved in Q3 2025 with non-performing loans declining by $7.0 million to $10 million, the provision moderated to $850,000 for the third quarter.

The physical network of branches contributes to fixed overhead. Occupancy and equipment costs for the branch network are a consistent drain, though they can fluctuate based on maintenance or new facility needs. Here's a quick look at those costs, which are part of the overall non-interest expense structure:

The data processing figure for Q2 2025 was $629K, which aligns with the narrative that it was an increase driver from Q1.

You should also note other specific non-interest expense components that contributed to the Q3 2025 results:

• Amortization of mortgage servicing rights and other intangibles for Q3 2025 was $724K.
• Professional fees for Q3 2025 were $746K.
• Income tax expense for Q3 2025 was $1.1 million.

The efficiency ratio improvement to 60.7% in Q3 2025 from 66.5% in Q3 2024 shows management is definitely keeping a tight rein on these operating costs relative to revenue growth. Finance: draft 13-week cash view by Friday.

Landmark Bancorp, Inc. (LARK) - Canvas Business Model: Revenue Streams

The revenue streams for Landmark Bancorp, Inc. (LARK) are fundamentally anchored in traditional banking activities, with a strong emphasis on interest-earning assets. You see this clearly in the latest reported figures.

The Net Interest Income (NII) for the third quarter of 2025 was reported at $14.1 million, which is the primary source of revenue for Landmark Bancorp, Inc.. This NII is derived from the interest earned on the company's loan portfolio, which, as of September 30, 2025, totaled over $1.1 billion in gross loans.

Beyond the core lending business, non-interest income provides a meaningful secondary stream. This includes various fees, service charges, and gains realized from asset sales. For the first nine months of 2025, the total non-interest income was $14.42 million.

Here's a look at the key components of the revenue generation for Landmark Bancorp, Inc. based on the latest available financial snapshots:

The income from the investment securities portfolio is a steady contributor, with the yield reported at 3.29% in the first quarter of 2025. This indicates the return Landmark Bancorp, Inc. is generating from its holdings of securities, which is separate from the interest earned on its primary loan book.

To give you a clearer picture of the non-interest income sources, which you mentioned specifically, here are the details we have:

• Gains on the sale of mortgage loans are captured within the broader Gains/Losses on Sales of Assets, totaling $2.772 million for the first nine months of 2025.
• Non-interest income from fees and service charges is a component of the total Non-interest Income, which was $14.42 million for the first nine months of 2025.
• In Q2 2025, total non-interest income rose sequentially, driven by higher gains on mortgage sales (+$178K) and higher fees (+$88K).

The company's strategy clearly leans on growing that loan book to drive the NII, which is the engine here. Finance: draft Q4 2025 NII projection by next Tuesday.