Good day, and welcome to the Landmark Bancorp Second Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. Michael Scheopner, President and Chief Executive Officer. Mr. Scheopner, please proceed.

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 2019. 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 those 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. Landmark reported net earnings of $2.6 million or $0.59 per share on a fully diluted basis for the second quarter of 2019. Year-to-date Landmark's net earnings totaled $4.8 million or $1.09 per diluted share. The year-to-date return on average assets calculates to 0.98% and return on average equity year-to-date was 10.08%. 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 cash dividend of $0.20 per share to be paid August 21, 2019 to shareholders of record as of August 7, 2019. This represents the 72nd 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 and year-to-date 2019 performance continues our trend of strong earnings. The 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. We are particularly pleased with the loan growth Landmark is delivering across our footprint and I will comment on a few minutes on our expanded lending team. Management 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 our families and businesses. I will now turn the call over to Mark Herpich, our CFO will review the financial results and asset quality indicators [issues] [ph].

Thanks Michael and good morning to everyone. Michael mentioned our net earnings for the second quarter and six months ended June 30, 2019. And now I'd like to make a few comments on various elements comprising those results. Starting with the second quarter income statement highlights, net interest income was $7.5 million, an increase of $645,000 or 9.4% in comparison to the prior year second quarter. The improvement in net interest income was attributable to a $45.8 million or 5.4% increase in average interest earning assets to $901.2 million in comparison to the prior year second quarter period. This growth was entirely attributable to loan growth of $59.8 million as our average investment balance actually declined by $13.6 million. Net interest margin on a tax equivalent basis improved to 3.43% in the second quarter of 2019 as compared to 3.33% in the same period of 2018. The net interest margin benefited significantly from the increase in average loan balances as the yields on our interest earning assets and short-term interest rates on liabilities both increased. Looking at our provision for loan losses, our analysis of the allowance for loan losses resulted in providing 400,000 to the allowance in the second quarter of 2019 as compared to 250,000 in the second quarter of 2018. Non-interest income decreased, 265,000 or 6.2% to 4.0 million in the second quarter of 2019, compared to the same period of 2018. The comparison was primarily impacted by a $514,000 decline in other non-interest income reflecting $525,000 of recoveries during 2018 on a deposit related loss that occurred in the third quarter of 2017. Additionally, we sold investments totaling 9.5 million comprised of investments with lower yields and small balances resulting in a loss of $146,000 during the second quarter of 2019. Partially offsetting the declines were…

Mark, thank you for your comments. And as Mark noted, net loans outstanding as of the end of the second quarter 2019, totaled $510 million, which is up 4.3% from our year end 2018 total of $489 million. Compared to the second quarter of 2018, we delivered an increase of $49 million or 10.6% in net loans outstanding. Loan growth over the past year is spread across all of our geographic markets, but the growth was boosted in part by the mid-year 2018 addition of a team of commercial bankers with a specialty and small business, SBA lending located in our Johnson County, Kansas market. We added another team of commercial bankers in Kansas City at the end of 2018 and in early 2019, who are currently located in a loan production office that opened in Prairie Village in May. In late second quarter 2019, we received regulatory permission to convert the LPO to a bank branch and we expect to complete that conversion during the third quarter of 2019. As we pursue additional loan growth in 2019, we will continue our credit risk focus of maintaining a diversified mix in the loan portfolio both in loan types and in geography across the state. As of June 30, 2019, our construction and land loan portfolio balances totaled $20 million or 3.9% of our total loan portfolio. Outstanding loan balances in the commercial real estate portfolio totaled $140 million representing 27% of our total loan portfolio. Loan balances in both the construction land and the commercial real estate portfolios remain significantly below the regulatory percentage concentration thresholds that would require heightened risk management practices. Commercial and industrial loans were $94.4 million as of June 30, 2019 or 18.3% of the current portfolio. With regard to our agricultural loan portfolio, total balances…

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Michael Scheopner, President and Chief Executive Officer for any closing remarks. Q - A -

Thank you. I want to thank everyone for participating in today's earnings call. I appreciate your continued support and confidence in the company and I look forward to sharing news related to our third quarter 2019 results at our next earnings conference call.

The conference is now concluded. Thank you for your time in today's presentation. You may now disconnect.