A Letter From Our CEO

February 6, 2012

Dear Shareholder:

2011 was a very good year for Landmark Bancorp, Inc. in terms of expansion into new markets and products
as well as the growth of the assets and profitability. Landmark's net income after tax grew nearly 16% to
$1.76 million compared to $1.51million for the full year 2010. Full year earnings per share increased to
$1.02 compared to $.92 for the full year 2010. Return on assets increased to .82% compared to .77% the
prior year. Landmark's net interest margin reached 3.99%. Loan charge offs, as percentage of loans, were
.16% which compares favorably to our peer banks which averaged .77%, ranking Landmark in the 20th
percentile of our peer group. Return on equity increased to 8.90% for 2011 compared to 8.58% during 2010.
Book value per share increased to $12.05 at year end 2011compared to $10.98 at year end 2010.

Assets grew nearly 16% to $234.7 million compared to $202.6 million at year end 2010. The loan portfolio
grew to $176.8 million, an increase of 20.2%, compared to year end 2010. The deposit portfolio grew nearly
14% to $184.8 million at year end 2011. Non-interest bearing deposits, or checking accounts, reached $27.5
million at year end. These interest-free funds are critically important to the future profitability of the bank.
Year end capital balances increased by more than 15% to $20.9 million.

In May of 2011 Landmark established a Government Banking Division with a plan to provide loan and
depository services for local municipalities and school districts. This clientele deserves and appreciates the
type of local service that Landmark Community Bank can offer. This market provides an excellent source of
core deposits and tax free loans which are already contributing to the growth and profitability of Landmark
Community Bank. The bank's tax rate declined to less than 23% from 28% in 2010 due primarily to the
growth of tax free loans to local municipalities.

In September Landmark entered the "Direct Issue" credit card market. This new business generates
noninterest income from interchange fees paid by merchants on credit card transactions initiated by our
clients in addition to interest income on balances and other fees which may accrue. The Landmark
Community Bank Platinum VISA card, for consumers, and Business VISA card offer no annual fee, a low
interest rate and a robust rewards program which allows our clients to earn points on qualifying purchases
and redeem them for airline travel with "no blackout periods", cruises, hotels, car rentals, merchandise,
electronics and more. Landmark's Platinum and Business cards also give Northeast Pennsylvania consumers
and businesses the option of selecting a local, responsive community bank to serve their credit card needs.
Through a partnership with a national company we are also issuing Landmark's credit card products to credit
worthy medical professionals nationwide. We believe this new product offering will provide a valuable
service to our clients and generate additional income for the bank. If you are currently using some other
bank's credit card we would respectfully request that you consider Landmark's Platinum VISA card.

The Board of Directors of Landmark Bancorp, Inc. voted to increase the quarterly dividend from five to six
cents per share. The quarterly dividend was declared on January 12, 2012 and is payable on February 7, 2012
to stockholders of record on January 27, 2012.

Landmark Community Bank's staff, management, Board of Directors and Advisory Board members are
committed to building a strong community bank and providing unparalleled service to our clients as well as
delivering long term value to our shareholders. We appreciate your support and we encourage you to
continue to use Landmark Community Bank for all your banking needs and request that you refer
prospective clients to your bank.

Very Truly Yours,

Daniel R. Nulton

President & CEO