Welcome to the Landmark Bancorp Q1 Earnings Conference Call. [Operator Instructions]. I would like to turn the conference over to Michael Scheopner, President and Chief Executive Officer. Please go ahead.

Thank you and good morning. I appreciate everyone taking the time today to join us to discuss Landmark's earnings and results of operations for the first quarter ending March 31, 2017. Joining the call with me today to discuss various aspects of our first quarter 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 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've reported net earnings of $2.2 million or $0.56 per share on a fully diluted basis for the first quarter 2017. The first quarter 2017 return on average assets calculates to 0.98%. The company's return on average equity for the quarter was 10.46%. Mark will provide additional detail on Landmark's financial performance and asset quality metrics later in the call. As I look at how Landmark is positioned as we move into 2017, from a big picture perspective, we're financially very strong. We're very well capitalized. We have excellent credit quality in our loan portfolio and the company continues to deliver good performance on ROA and ROE. I'm pleased to report that our Board of Directors has declared a cash dividend of $0.20 per share to be paid May 24, 2017, to shareholders of record as of May 10, 2017. This represents the 63rd consecutive cash quarterly dividend since the company's formation, resulting from the merger of Landmark Bancorp Inc. with MNB Bancshares, Inc. in October 2001. Our first quarter performance continues our trend of strong earnings and this success is a credit to the continued efforts of our associates throughout the organization. We 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 unperceived economic events. As a community bank with a strong presence across the State of Kansas, Landmark remains 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 several asset quality indicators with you.

Thanks, Michael and good morning to everyone. As Michael has already summarized our earnings for the first quarter of 2017, I would like to make a few comments on various elements comprising those results. While our 2017 first quarter net earnings of $2.2 million were lower than the first quarter of 2016's net income of $2.4 million, earnings remained solid as evidenced by achieving a 0.98% return on average assets. The lower comparison for 2017's earnings versus 2016 related primarily to the reduced gains on sales of loans in 2017 resulting from the departure of a few mortgage lenders during the first few months of 2016. Looking at the first quarter income statement highlights. Net interest income was $6.4 million, a decrease of $36,000 or 0.6% in comparison to the prior year's first quarter. The slight decline in net interest income was attributable to lower yields on loans and higher rates on interest-bearing deposits and borrowings which resulted in a decline in our net interest margin from 3.47% in the first quarter of 2016 to 3.38% in the same period of 2017. Partially offsetting the net interest margin decline was a $30.9 million or 3.9% increase in average interest-earning assets to $822.9 million in comparison to the prior year's first quarter period. Looking at our provision for loan losses. Our analysis of the allowance for loan losses resulted in providing $50,000 to the allowance in both the first quarter of 2017 and 2016. Net interest income decreased $253,000 to $3.6 million for the first quarter of 2017, down 6.5% as compared to the same period of 2016. The decrease was primarily related to a $405,000 decline in gains on sales of loans. The volume of mortgage loans sold and originated for sale declined in the period as a result of…

Thank you for your comments, Mark. And as Mark said, I'll add a couple of additional comments regarding our loan portfolio and credit conditions in our franchise footprint. We continue to maintain a diversified mix in the loan portfolio, both in loan types and in geography across the State of Kansas. On a consolidated basis, Landmark's gross loan portfolio totaled approximately $423.4 million as of the end of the first quarter 2017. In terms of exposure to credit concentrations, we continue to focus on portfolio management of commercial real estate and construction and land relationships. Recent regulatory guidance stresses increased emphasis on these portfolio categories. As part of our comprehensive credit risk management process, we also review construction and land and commercial real estate for loan type and geographic concentration issues on a quarterly basis. As of March 31, 2017, our construction and land loan portfolio balances totaled $16.3 million or 3.9% of our total loan portfolio. Outstanding loan balances in our commercial real estate portfolio totaled $114.8 million, representing 27.1% of our total loan portfolio. Landmark's loan portfolio in the construction and land category as of March 31, 2017, totaled 17.2% of risk-based capital, 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 at 138.4% of risk-based capital which is far below the 300% regulatory guideline in that category. The mortgage one-to-four family loan portfolio represents just over 32% of the portfolio at $137.3 million for March 31, 2017, compared to $136.8 million as of year-end 2016. The broader residential real estate economy across Kansas continues to show stable to brisk sales activities for the past few quarters with tight market supply of inventory in most markets. The performance…

[Operator Instructions]. The first question comes from of Justin Eun of FIG Partners.

So my only question -- or actually I have 2 questions. First is what are the opportunities you guys see as far as M&A opportunity?

Okay. Obviously, we continue to review and pursue attractive M&A opportunities in the State of Kansas. We're still in excess of 230 bank charters located in Kansas and I expect consolidation in that landscape will continue in the next several years. While we've been actively looking for the right fit, we have yet to find anything that we can speak about publicly. But our efforts related to M&A activity will continue. Our history with respect to acquisitive growth has -- we've demonstrated a history of being able to do that in a manner that's accretive to our shareholders and [indiscernible] to shareholder value will remain consistent with those disciplines.

All right. And the second question, can we get some more color on the NPAs as a percentage of the agricultural loans and the indirect exposures loan?

We've got limited to no indirect exposure relative to ag industry. I mean, it would be mostly tangential to the service industries and the communities in which we have ag concentrations in Southwest and Southeast Kansas. Generally, overall, our historic losses in the ag loan portfolio have been negligible. And when we look at the current stresses that our ag borrowers are facing, one of the things that we've been disciplined about is making sure that during the good years, our agribusiness borrowers are disciplined in utilizing their own cash to fund operations and to build liquidity in their balance sheets [indiscernible] tougher cycles. We have been able to work with those agribusiness customers to utilize the leverage that they have in their balance sheets so that they can either reposition that or be positioned to the best possible to sustain prolonged cycles. So from a metric standpoint, I'd say -- from an overall -- just percentage standpoint, it's a pretty limited exposure that we've got in that ag portfolio.

If you look at our nonaccrual ratios at the nonperforming assets category, I mean, it must change during the first quarter. But in our 10-K, it would have shown we had about 31% of our $2.7 million non-accruals in ag loans. The percentage [indiscernible] borrowers in that category really haven't changed since December 31.

[Operator Instructions]. 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 want to thank everyone for taking the time to participate in today's earnings call. I truly appreciate your continued support and the confidence that you have in our company. And I look forward to sharing news related to our second 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.