Good day everyone welcome to the Landmark Bancorp Incorporated Q4 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] I’d now like to turn the conference call over to Mr. Michael Scheopner, President and CEO. Sir, please go ahead.

Thank you and good morning. Thank you for joining our call today to discuss Landmark’s earnings and results of operations for the fourth quarter as well as the fiscal year-end 2014. Joining the call with me today to discuss various aspects of our year-end and fourth quarter performance are Mark Herpich, Chief Financial Officer for the company and Brad Chindamo, our Credit Risk Manager. Before we get started, I would like to remind our listeners that some of the information we will be providing today falls into the guidelines for forward-looking statements as defined by the Securities and Exchange Commission. As part of these guidelines I must point out that any statements made during this presentation that discussion 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 of these factors is included from time-to-time in our 10-K and 10-Q filings which can be obtain by contacting the company or the SEC. We reported net earnings of $2.1 billion or $0.62 per share for the fourth quarter 2014. Year-end 2014 net earnings totaled $8 million which is a record for the company. The year-end 2014 earnings represent a 72.9% increase from our 2013 earnings level. Year-end 2014 earnings translate to net earnings per share of $2.38 on a fully diluted basis up from $1.42 in 2013. The big step up in our earnings in 2014 came principally from Landmark’s acquisition of Citizens Bank which moves the needle not only with the larger scale for the bank but also with increased returns per shareholders. Our team delivered on what we expected, an accretive value building acquisition. Net interest income totaled $24.7 million in 2014 up 29.6% from the previous year. Non-interest income in 2014 totaled $15 million…

Thanks, Michael and good morning to everyone. As Michael has already summarized our earnings for the fourth quarter and year-ended December 31, I would like to make a few comments on various elements comprising those record results. Starting with the fourth quarter financial highlights, net interest income increased 714,000 to 6.3 million in comparison to the prior year’s fourth quarter. The higher net interest income was primarily a result of our acquisition of Citizens Bank, leading to an increase in our average interest earning assets from 681.7 million in the fourth quarter of 2013 to 767.7 million in the fourth quarter of 2014. Our net interest margin in the fourth quarter also increased slightly to 3.46% from 3.45% during the fourth quarter of 2013. In comparison to the net interest margin of 3.47 in the third quarter of 2014, our net interest margin has also remained relatively stable from a quarter-to-quarter perspective. Looking at our provision, we did not provide to the allowance in either the fourth quarter of 2014 or 2013, as we concluded the allowance for loan losses was adequate at December 31 in both years. We did receive a recovery in the amount of a $151,000 during the fourth quarter of 2014 on a previously charged-off commercial real estate loan. Non-interest income increased $986,000 to 3.7 million for the fourth quarter of 2014, as compared to the same period of 2013. Our gains on sales of loans reflected an increase of $571,000 for the fourth quarter of 2014 compared to a year earlier, to which the mortgage business of Citizens Bank contributed. Other factors contributing to the increase in non-interest income were a $322,000 increase in season service charges and $88,000 in other non-interest income, also primarily a result of the Citizens Bank acquisition. Our fourth quarter…

Thanks Mark and good morning to everyone. Net loans outstanding as of December 31, 2014 totaled to 416 million, this is a $2 million increase from the previous year end net loan total of 414 million and flat compared to the prior quarter ending total. In 2015, we’ll continue to be focused on prospecting new, high quality commercial banking relationships and expanding the existing high quality relationships. Non-performing loans, which primarily consist of loans greater than 90 days past due totaled 6.0 million or 1.44% of gross loans as of December 31, 2014. This compares to a level of 2.35% as of year-end 2013 and 1.45% at the end of the third quarter. Significant part of non-performing loans is principally associated with one credit, commercial loan relationship consisting of 3.1 million in real estate and land loans which was placed on non-accrual status after borrower filed for Chapter 13 bankruptcy reorganization protection in 2012. Another indicator we monitor as part of our credit risk management effort is our level of loans past due 30 to 89 days. The level past due loans between 30 and 89 days still accruing interest as of December 31, 2014 total $1.1 billion or 0.26% of gross loans. All the loans in the 30 to 89 day past due category 50% or $480,000 is associated with one agricultural real estate loan. We continue to monitor delinquency trends carefully in all loan categories. Our balance and other assets real estate owned totaled 255,000 as of December 31st, an increase from 159,000 in the prior quarter and down from 400,000 as of the year-end 2013. The other real estate owned balances have been reduced as a result of the sale properties. We continue to market for sale the remaining properties held in real estate owned. We recorded…

Thanks, Brad. I also will thank Mark for his comments earlier in this morning’s call. Before we go to questions, I just want to summarize by saying we are pleased with our operating results for the fourth quarter and the record results for fiscal year end 2014. As we anticipated, the Citizens Bank acquisition was accreted to earnings in 2014 and I expect that positive earnings impact to continue in 2015. With that, I’ll open it to up to questions that anyone might have.

Ladies and gentlemen, at this time we’ll begin the question-and-answer session. [Operator Instructions]. Our first question comes from Ross [indiscernible] Management. Please go ahead with your question.

Could you talk about the bank you bought to the lot of residential originations and sales and they generated nice fees, could you talk about sort of the pipeline today? The drop in rates is that getting better in the recent past? And what’s your expectation in terms of that volume for the coming calendar year, assuming rates stay flat on a pro-argument sake through most of the year.

Assuming rate stay flat as we progress through 2014, we saw a fairly steady pipeline, we started a little bit early in 2014 because of winter weather conditions, but we rebounded in the second quarter. So our strong pipeline activity really across the entire State of Kansas relative to par our production activity or our pipeline activity across the entire geography. As we go forward into 2015, as I mentioned in my comments, our focus really is on maintaining a strong penetration in purchase market activity or purchase money activity in all of our markets. Our total production volumes in 2014 included an 84% purchase money make up of that volume. So, I feel fairly good about the fact that we can maintain a recurring income stream through mortgage originations based upon that purchase money focus as we move into ’15. We really saw limited refi impact if you look at those production volumes. I know -- we saw rates that (table) [ph] down even lower than some of our production rates during ’13 and ’14, so we haven’t really seen any refi activity in the results of the change in rates, but we’re prepared to handle increase refi activity if rates predict that in addition to our purchase money focus.

And just one follow-up question, all these banks are listening to or singing the blues about the shrinking margins and spreads, what’s your expectation again, let's assume the rate stay flattish for most of the year?

I guess if the rate stay flat where we are today with the 10 year in the 160 range which is down quite a bit from where we started the year even like things are going to continue to add pressure on our net interest margin ratio and unless we continue to reinvest the maturing investment securities, we’re going to see pressure to keep that but we’ve been fighting that battle for the last two or three years and we have been able to kind of keep it very steady in the mid-340s range and I am hopeful that were we’ve kind of stabilized off but it's still going to be challenging with these even lower interest rates that we’re seeing here in the start of 2015, unless we’ve got some pipeline activity in the loan portfolio and we hope the thing that will offset that is our ability to originate and grow our loan portfolio or even potentially as we have in the past kept a [indiscernible] one-to-four family high quality mortgage loans that we originate to kind of put it through help with our mix of investments and loans as we look at our margin going forward.

[Operator Instructions] And sir at this time we’re showing no additional questions I’d like to turn the conference call back over for any closing remarks.

Thank you, I appreciate everyone’s attendance on the call today and for your continued support of our company and we look forward to visiting again following our first quarter results. Thank you.

Ladies and gentlemen that does conclude today’s conference call. Thank you for attending, you may now disconnect your telephone lines.