Good day, and welcome to the Landmark Bancorp Quarter Two Earnings Conference 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 to turn the conference over to Michael Scheopner, President and Chief Executive Officer. 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 second quarter and year-to-date 2018. Joining the call with me today to discuss various aspects of our second quarter performance is Mark Herpich, Chief Financial Officer of 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 that 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 $2.8 million or $0.68 per share on a fully diluted basis for the second quarter of 2018. Year-to-date, Landmark's net earnings totaled $4.9 million or $1.19 per diluted share. The company continues to deliver good performance on ROA and ROE. Return on average assets calculates to 1.06% for the year-to-date 2018 period and return on average equity year-to-date is 11.69%. 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 in our loan portfolio and we're delivering healthy growth in loans and total assets. 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 22, 2018, to shareholders of record as of August 08, 2018. This represents the 68th consecutive quarterly cash dividend since the company's formation resulting from the merger of Landmark Bancorp, Inc. with MNB Bancshares in October 2001. Our second quarter 2018 performance continues our trend of strong earnings and this success is a credit to the continued efforts of our associates throughout the organization to 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. The 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 leads of families and businesses. I'll now turn the call over to Mark Herpich, our CFO, who will review the financial results and asset quality indicators with you.

Thanks Michael and good morning to everyone. As Michael has already summarized our earnings for the second quarter and six months ended June 30 of 2018, 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 $6.8 million, an increase of $260,000 or 4.0% in comparison to the prior year second quarter. The improvement in net interest income was attributable to a $24.1 million or 2.9% increase in average interest earning assets to $855.4 million in comparison to the prior year second quarter period. Net loans increased $25.2 million during the second quarter driving our growth and interest earning assets. Our net interest margin on a tax equivalent basis decreased from 3.41% in the second quarter of 2017 to 3.33% in the same period of 2018; primarily as a result of the reduction in 2018 federal corporate income tax rates from 34% to 21% following the approval of the federal tax reform legislation in December 2017. The lower income tax rate reduced the tax equivalent yield on our tax exempt municipal investments and loans. Looking at our provision for loan losses our analysis of the allowance for loan losses resulted in providing $250,000 to the allowance in the second quarter of 2018 as compared to $100,000 in the second quarter of 2017. Non-interest income increased $52,000 to $4.3 million for the second quarter of 2018, up 1.2% as compared to the same period of 2017. This was primarily related to a $519,000 increase in other non-interest income reflecting $525,000 of recoveries on a deposit-related loss that occurred during the third quarter of 2017. Partially offsetting the impact of these recoveries were decreases of $224,000 in gains on sales of loans, $177,000 of gains on…

Thank you, Mark, and thank you for your comments. We continue to maintain a diversified mix of the loan portfolio both in loan types and in geography across the state. Net loans outstanding as of June 30, 2018, totaled $461.4 million and growth is evident across the various portfolio segments. As of June 30, 2018, our construction and land loan portfolio balances totaled $26.5 million or 5.7% of our total loan portfolio. Outstanding loan balances in our commercial real estate portfolio totaled $121.9 million representing 26.1% of our portfolio. Landmark's loan balances in the construction land category as of June 30, 2018, totaled 27% of risk-based capital which is well below the regulatory guideline of 100% a level where regulators would view the total as a concentration, requiring heightened risk management practices. Our commercial real estate portfolio was a 150% of risk-based capital far below the 300% regulatory guidelines in that category. Commercial and industrials loans were $66.5 million as of June 30 or 14.2% of the portfolio. With regard to our agricultural loan portfolio, total balances were $87.9 million or 18.8% of our total loan portfolio as of June 30. Our mortgage one-to-four family loan portfolio represented 30% of the portfolio at $138 million as of June 30, 2018. Residential real estate activity across the state continues to show stable sales activity with a tight market supply of inventory in most of our markets. Our mortgage banking production through the first six months of 2018 involved an 85% concentration on purchase money transactions versus refinances. The performance of this segment of our portfolio continues to be strong today as low levels of delinquency and limited collection issues. Across the portfolio segments our pipeline of activity remains strong and I anticipate additional loan growth through the remainder of 2018. Our team remains focused on recruiting client relationships to meet our credit portfolio standards rather than trying to buy transactions through low price or credit structure compromises. We continue to carefully monitor the various risk categories impacting our credit portfolio going forward and will remain diligent and disciplined in applying the same disciplined underwriting and risk management practices that have supported our continued profitability these past years. Before we go to questions, I want to summarize by saying that we are pleased with Landmark's operating results for the second quarter and year-to-date 2018. These results continue a trend of strong earnings across all of our community banking lines of business. We believe that the company’s risk management practices and capital strength continue to position us very well for long-term organic and acquisitive growth. I anticipate our trend of solid earnings to continue. With that, I'll open the call up to questions that anyone might have.

We will now begin the question-and-answer session. [Operator Instructions]. Now the first question comes from Michael Brilley with Sit Investments. Please go ahead.

My question is regarding the $525,000 recovery, could you characterize this is an insurance type recovery or is it a recovery from the depositor and do you expect further recoveries related to that loss.

Michael thanks for the question and it is a combination of recoveries from multiple avenues and we're pursuing, we continue to pursue multiple avenues of recovery and we would anticipate additional recoveries in the future.

[Operator Instructions]. Now this concludes our question-and-answer session. I would like to turn the conference back over to Michael Scheopner for any closing remarks.

Thank you. And I do want to thank everyone for participating in today's earnings call. I appreciate your continued support and confidence in our company. And I look forward to sharing news related to our third quarter 2018 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.