Landmark National Bank in Manhattan, Kan., posted a record $5.1 million earned in the second quarter, compared to $2.1 million the same period last year, based largely on the influx of PPP loans. The $1.1 billion bank made 1,035 loans totaling $131 million.
“Obviously, there remains much uncertainty regarding the overall impact of the COVID-19 pandemic on our loan portfolio,” said Michael Scheopner, president. The bank had previously recorded a $1.6 million provision for loan losses during the first half of this year and Scheopner said the bank girded for an uptick in loan losses through the rest of the year. Minus PPP, the bank’s traditional lines of business have not been on fire.
“I think it’s going to be pretty modest in the second half from a volume standpoint as far as growth projections, Scheopner told investors. “We are seeing some still decent pipeline activity in the commercial lines. But it’s mostly long standing clients, and we have seen a little bit of business development opportunity as a result of new clients that we assisted through the PPP process. So I think it’s really going to be a pretty modest growth line on the commercial side in the second half of the year.”
Landmark’s ag business has remained resilient thanks to what has been a good growing season. “The most recent report from the State of Kansas on field crops for corn, soybeans, sorghums and cotton calls the crops ‘good to excellent’,” Scheopner said. “I have at times used the word ‘excellent’ when it comes to agribusiness.”