Good morning and welcome to the Landmark Bancorp Second Quarter Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like turn the conference over to Michael Scheopner, Chief Executive Officer and President.

Thank you and good morning. I appreciate you joining our call today to discuss Landmark's earnings and results of operations for the second quarter and year-to-date 2017. Joining the call with me today to discuss various aspects of our second quarter and year-to-date performance is Mark Herpich, Chief Financial Officer for the company. Before we get started, 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. As part of these guidelines, I must point out that any statements made during this presentation to 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. We reported net earnings of $2.4 million or $0.60 per share on a fully diluted basis for the second quarter of 2017. Year-to-date, Landmark's net earnings totaled $4.6 million or $1.16 per diluted share. The year-to-date 2017 return on average assets calculates to 1.01%. The company's return on average equity year-to-date was 10.62%. As I look at how Landmark is positioned from a big picture perspective, we are financially very strong, we are very well capitalized and we have excellent credit quality on our loan portfolio. The company continues to deliver good performance on ROA and ROE. Mark will provide additional detail on Landmark's financial performance and asset quality metrics later in the call. I'm pleased to report that our board of directors has declared a cash dividend of $0.20 per share to be paid August 30, 2017 to shareholders of record as of August 16, 2017. This represents the 64th consecutive quarterly cash dividend since the company's formation resulting from the merger of Landmark Bancorp Inc. with MNB Bancshares Inc. in October 2001. Our second quarter performance continues, our trend of strong earnings and this success is a credit to the continued efforts of our associates throughout the organization who practice good banking fundamentals and deliver high quality customer service consistent with our vision that everyone starts as a customer and leaves as a friend. Our management team remains focused on managing the organization in a conservative and disciplined manner, dedicated to underwriting loans and investments prudently, monitoring interest rate risk and structuring the overall organizational risk profile in a way that will prepare us as well as possible for any unforeseen economic events. As a community bank with a strong presence across the state of Kansas, Landmark is committed to growing our customer relationships and meeting the diverse financial needs of families and businesses. I will now turn the call over to Mark Herpich, our CFO, who will review the financial results and asset quality indicators for you.

Thanks Michael, and good morning to everyone. Michael has already summarized our earnings for the second quarter of six months ended June 30, 2017. I would like to make a few comments on various elements comprising those results. Starting with the second quarter income statement highlights, net interest income was $6.6 million or an increase of $14,000 or 0. 2% in comparison to the prior year second quarter. This slight improvement in net interest income was attributable to a $16.2 million or 2% increase in our average interest earning assets to $831.3 million in comparison to the prior year second quarter period. Lower average loan balances and higher rates on interest-bearing deposits resulted in a decline in our net interest margin from 3.46% in the second quarter of 2016 to 3.41% in the same period of 2017. Looking at our provision for loan losses, our analysis of the allowance for loan losses resulted in providing $100,000 to the allowance in the second quarter of 2017 as compared to $300,000 in the second quarter of 2016. The lower provision relates to a corresponding reduction in our level of net charge-offs of $101,000 during the second quarter of 2017 versus $517,000 during the second quarter of 2016. Non-interest income increased $240,000 to $4.2 million for the second quarter of 2017, up 6.1% as compared to the same period 2016. The increase was primarily related to $287,000 improvement in gains on sale of loans. Partially offsetting the impact of the reduced gains on sales of loans, our gains on sale of investments were $177,000 during the second quarter of 2017 as compared to a gain of $285,000 in the same period a year earlier. Our second quarter of non-interest expenses increased by $328,000 to $7.5 million or 4.6% on a linked-quarter basis. The…

Mark, thank you for your comments. We continue to maintain a diversified mix in the loan portfolio, both in loan types and in geography across the state. In terms of exposure to credit concentrations, we continue to focus on our portfolio management of commercial real estate and construction and land relationships. Recent regulatory guidance has emphasized increased importance of monitoring these portfolio categories. As part of our comprehensive credit risk management process, we reviewed construction land and the commercial real estate on a quarterly basis for both loan type and geographic concentration issues. As of June 30, 2017, our construction and land loan portfolio balances totaled $16.6 million or 3.9% of our total loan portfolio. Outstanding loan balances in our commercial real estate portfolio totaled $116.6 million, representing 27.2% of our total loan portfolio. Landmark's loan portfolio in the construction land category as of June 30, 2017 totaled 17.2% of risk-based capital, which is well below the regulatory guideline of 100%, a level where regulators will view the total as a concentration which would require heightened risk management practices. Our commercial real estate portfolio was 137.8% of risk-based capital, far below the 300% regulatory guideline in that category. The mortgage one-to-four family loan portfolio represents 32.5% of the portfolio at $138.9 million as of June 30, 2017 compared to $136.8 million at year-end 2016. The broader residential real estate economy across the state of Kansas continues to show stable to brisk sales activity for the past few quarters with tight market supplies of inventory in most of our markets. The performance of this segment of our portfolio continues to be strong today with low levels of delinquency and limited collection issues. With regard to our agricultural loan portfolio, total balances were $79.3 million or 18.5% of our total loan portfolio…

We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Michael Brilley with Sit investments.

My question is your equity-to-asset ratio is now at 10% and grew quite sharply in the last six months and has done very well. What are your plans in terms of not letting that ratio get to much higher what are you contemplating?

Well, Mike. I appreciate the question. I mean obviously we continue to -- I guess from a market standpoint, continue to evaluate opportunities to deploy that equity whether it be through -- most likely through some form of a growth in an acquisition-type transaction, that market remains -- I would say dialogs remain active with respect to that, Mike and while we don't have anything definitive that we can speak to, our efforts with respect to finding a right fit for the franchise continue, so that be the primary strategy.

How about the possibility of doing stock repurchases?

We've had a stock repurchase plan in place. Historically, but our -- I guess our strategic approach has been to retain that equity for the use in a potential acquisitive manner.

[Operator Instructions] At this time, there are no more questions in the queue. So, like turn it back over to Michael Scheopner for any closing remarks.

Thank you. And I want to thank you everyone for participating in today's earnings call. I truly appreciate your continued support and the confidence in our company. And I look forward to sharing news related to our third quarter 2017 results at our next earnings conference call. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.