00:07 Hello, everyone and welcome to the Landmark Bancorp Q4 Earnings Call. My name is Nadia and I'll be coordinating the call today. [Operator Instructions] 00:21 I will now hand over to your host, Michael Scheopner, President and Chief Executive Officer to begin. Michael, please go ahead.

00:29 Thank you and good morning. Thank you for joining our call today to discuss Landmark’s earnings and results of operations for the fourth quarter and fiscal year ending 2021. Joining the call with me to discuss various aspects of our fourth quarter performance is Mark Herpich, Chief Financial Officer of the company; and the company's Chief Credit Officer, Raymond McLanahan. 00:51 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. 01:28 I want to begin my remarks today with a thank you all of my fellow associates at Landmark National Bank. Our continued success in generating solid earnings, strong balance sheet growth and solid credit quality is a direct result of their efforts in 2021. Their response to the challenges presented during year two of COVID-19 and our ability to continue to work with our clients as they dealt with pandemic-related uncertainty is something that I'm very proud of and I feel honoured to be a member of this team. 02:00 Landmark reported net earnings of $3.1 million during the fourth quarter of 2021. While fourth quarter 2021 net earnings declined compared to the same period last year, due to low interest rates, declining balances of Paycheck Protection Program loans and lower mortgage banking…

04:37 Thanks, Michael, and good morning to everyone. Michael has already alluded to our continued strong financial performance of 2021. And now, I'd like to take some time to talk further about our fourth quarter 2021 results. Net income of $3.1 million in the fourth quarter 2021 was lower by $2.5 million, mainly due to a decline in gains on sales of loans and lower net interest income. 05:04 In the fourth quarter of 2021, net interest income totaled $9.1 million, a decrease of $964,000 or 9.5% in comparison to the same period last year. While on a linked-quarter basis, net interest income was down by $477,000. The decline in net interest income from the fourth quarter last year as well as the third quarter of 2021 was mainly the result of decreased interest this quarter on SBA, PPP loans but partly offset by lower deposit costs. 05:40 Interest on PPP loans in the fourth quarter of 2021 declined by $850,000 compared to the fourth quarter last year, while PPP loans declined by $82.9 million over the same period. However, total loans, excluding PPP loans, grew by $31.8 million this quarter over the same period last year, which partially offset the decline in PPP loan interest. The average tax equivalent yield on the loan portfolio was still very strong this quarter totaling 4.81% compared to 4.86% in the same period last year and 5.03% last quarter. 06:23 Interest income on investment securities decreased $57,000 this quarter compared to the same period last year due to lower yields offset by growth in average balances, which grew by $90.9 million. The yield on investment securities declined from 2.42% in the fourth quarter of 2020 to 1.74% in the current quarter. 06:43 Interest costs on interest-bearing deposits remained low this quarter totaling 12…

11:30 Thank you, Mark and good morning, everyone. Gross loans outstanding as of December 31, 2021 totaled $662.4 million and declined $2.4 million this quarter mainly due to lower PPP loans in our portfolio. The fourth quarter -- during the fourth quarter of 2021, SBA PPP loans outstanding declined $11.5 million to $17.2 million. 11:56 Our outstanding balance of PPP loans at December 31, 2021 are now less than 10% of all PPP loans funded over the last two years. Based on the current pace of forgiveness, we anticipate the majority of our remaining PPP balances will be repaid by the end of the second quarter of 2022, with a small portion carrying over into the third quarter of 2022. While our PPP loan portfolio continues to roll off, we remain focused on quality core loan growth. 12:29 During the fourth quarter, our core portfolio increased $9.1 million or 5.6%. The largest increase occurred within our commercial real estate loan portfolio, which grew by $5 million during the quarter. Additional growth was observed within our residential portfolio, which increased $5 million and our agricultural portfolio, which grew by $3 million. 12:54 Credit quality remained excellent this quarter. Non-performing loans, which primarily consists of non-accrual loans and accruing loans greater than 90 days past due totaled $5.2 million or 0.79% of gross loans, as of December 31, 2021. This represents a decline of $4.6 million from the previous quarter and that's largely due to the payoff of one non-performing hotel loan as well as further improvements within our loan portfolio. 13:25 Total foreclosed real estate was mostly unchanged at $2.6 million at quarter-end. However, following the end of the year, this balance was reduced to $1.5 million following the sale of one property and a redemption of another. We continue to…

16:21 Thanks, Raymond. And Mark, thank you for your earlier comments. Before we go to questions, I want to summarize by saying our fourth quarter and fiscal year 2021 performance reflected a continued trend, a very positive operating results for Landmark. I again want to express my thanks and appreciation to all of the associates at Landmark National Bank. They are daily focused on executing our strategies, delivering extraordinary service to our clients and communities, and carrying out our company vision that everyone starts as a customer and leaves as a friend is the key to our success. 16:55 With that, I'll open the call up to questions that anyone might have.

17:00 Thank you. [Operator Instructions] It appears we have no question. So I hand the call back over to you Michael.

17:36 Thank you. And I again want to thank everyone for participating in today's earnings call. I currently appreciate your continued support and the confidence that you have in our company. I look forward to sharing news related to our first quarter 2022 results at our next earnings conference call. Thank you.

17:56 Thank you. Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect your lines.