Good day, and welcome to the Landmark Bancorp Third Quarter Earnings Conference Call. [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, sir.

Thank you, good morning. Thank you for joining our call today to discuss Landmark's earnings and results of operations for the third quarter and year-to-date 2017. Joining the call with me today to discuss various aspects of our 2017 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 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 a net loss of $2.7 million of $0.67 per share on a fully diluted basis for the third quarter of 2017. Year-to-date, Landmark's net earnings totaled $1.9 million or $0.49 per diluted share. The year-to-date 2017 return on average assets calculates to 0.28%. The company's return on average equity year-to-date was 2.93%. Landmark's net earnings of $1.9 million for the first nine months of 2017 were impacted by an $8.1 million deposit-related loss. This loss reduced net earnings by $5.1 million during the third quarter of 2017. As we previously disclosed, in the subsequent event section of our second quarter 10-Q filed on August 21, we discovered this situation on August 8, 2017, when the company was made aware that certain checks deposited by one of our customers from a third party were being returned by another financial institution due to uncollected funds related to…

Thanks, Michael, and good morning to everyone. As Michael has already summarized our earnings for the third quarter and nine months ended September 30, 2017, I would like to make a few comments on various elements comprising those results. Starting with the third quarter income statement highlights; net interest income was $6.6 million or an increase of $50,000 or 0.8% in comparison to the prior year's third quarter. The slight improvement in net interest income was attributable to a $16.3 million or 2% increase in average interest earning assets to $826.2 million in comparison to the prior year third quarter period. Lower average loan balances and higher rates on interest-bearing deposits resulted in a decline in our net interest margin from 3.45% in the third quarter of 2016 to 3.42% 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 third quarter of 2017 as compared to $150,000 in the third quarter of 2016. The lower provision relates to a corresponding reduction in our level of net charge-offs of $47,000 during the third quarter of 2017 versus $295,000 charged off during the third quarter of 2016. Non-interest income increased to $194,000 to $3.9 million for the third quarter of 2017, up 5.2% as compared to the same period of 2016. The increase was primarily related to a $389,000 increase in bank-owned life insurance income in the third quarter of 2017. Partially offsetting the increase in bank-owned life insurance income, our gains on sales of investments declined to $39,000 during the third quarter of 2017 as compared to the gain of $261,000 in the same period a year earlier. Our third quarter non-interest expenses increased by $8.2 million to $15.6 million…

Thank you for your comments, Mark. We continue to maintain a diversified mix in the loan portfolio both in loan type and in geography across the state. As part of our comprehensive credit risk management process, we reviewed construction land and commercial real estate on a quarterly basis for loan type and geographic concentration issues. As of September 30, 2017, our construction and land portfolio balances totaled $15.9 million or 3.7% of our total loan portfolio. Outstanding loan balances in our commercial real estate portfolio totaled $120.8 million, representing 27.8% of our total loan portfolio. Landmark's loan portfolio in the construction land category as of September 30, 2017, totaled 17.4% of risk-based capital, which is well below the regulatory guideline of 100%, a level where regulators review the total as a concentration, requiring heightened risk management practices. Our commercial real estate portfolio was a 149.7% of risk-based capital, which is far below the 300% regulatory guideline in that category. The mortgage one-to-four family loan portfolio represents 31.5% of the portfolio at $136.8 million for September -- as of September 30, 2017, and that is unchanged from year-end 2016. Residential real estate activity across the state continues to show stable to brisk sales activity with tight market supply 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 $84.1 million or 19.4% of our total loan portfolio as of September 30, 2017. The agricultural outlook continues to be challenging. We are operating with increased scrutiny on our agricultural loan portfolio as that sector remains in a challenging environment. We identified borrowers who were subject to increased risk in this segment of our portfolio through an intentional risk assessment and will continue to monitor trends closely. Our agricultural lending staff is made up of some of the most seasoned and qualified ad bankers in the state, most of whom who have experienced multiple downward cycles in this sector. Commercial and industrial loans were $50.9 million as of September 30, 2017, or 11.7% of the current portfolio. We will continue to carefully monitor the many risk factors impacting our credit portfolio going forward, and we'll remain diligent and disciplined in applying the underwriting and risk management practices that have supported our continued profitability these past several years. Before we go to questions, I want to summarize by saying that while the deposit fraud loss that we experienced in the third quarter has negatively impacted our standard 2017 earnings, excluding this event, Landmark continued to demonstrate a history of delivering strong core earnings performance across all of our community banking lines of business. We continue to believe that the company is well positioned for long-term organic and acquisitive growth, and I anticipate our trend of strong core earnings will continue. With that, I'll open the call up to questions that anyone might have.

Thank you. And 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 fourth quarter and year-end 2017 results at our next earnings call. Thank you.

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