A Letter From Our CEO

Landmark Bank CEO Letter

April 19, 2017

Dear Shareholder:

Landmark Bancorp Inc. recorded first quarter results that improved significantly compared to the same period in 2016. While assets grew 9.0%, net income increased 65.2% compared to the first quarter of last year.

Landmark’s net income was $385.4 thousand, an increase of more than 65%, compared to $233.2 thousand for the first quarter of 2016. First quarter earnings per share were $.20 compared to $.12 for the first quarter of 2016. Return on assets was .49% for the quarter compared to .32% during the first quarter of last year. Return on equity was 5.44% for the first quarter compared to 3.38% during the same period in 2016.

There are two important factors which are very encouraging. First, earning assets grew 9.48% compared to the same period in 2016. More importantly the bank’s net interest margin increased from 3.44% last year to 3.60% for the quarter ended March 31, 2017. As you may know, margins have been declining for years so this is a very encouraging development.

Assets expanded by 9.0% to $321.2 million compared to $294.7 million for the first quarter of 2016. Loan growth was 12.1% compared to 8.1% at the end of the first quarter of 2016. The investment portfolio declined by 4.8% and those funds were used to support loan growth.

Total deposits grew 4.3% to $259.2 million. The growth of non-interest bearing deposits was phenomenal. These “free” deposits grew 28.2% to $59.8 million compared to $46.7 million at March 31, 2016. Non-interest bearing deposits represented 23.1% of total deposits compared to 18.8% at March 31, 2016. This growth is very important to the future profitability of our bank in an environment where short term interest rates are rising.

Landmark remains well capitalized. According to regulatory guidelines, a bank is considered well capitalized with a Tier 1 Leverage Ratio of 5%. Landmark’s Tier 1 Leverage Ratio was 9.09%. Stockholders’ equity was $29.1 million at quarter end compared to $27.8 during the same period of 2016 Book value per share increased to $14.42 compared to $13.90 at March 31, 2016.

On April 13, 2017 the Board of Directors of Landmark Bancorp, Inc. declared a dividend of $.08 per share, payable on May 5th to stockholders of record on April 27th.

As noted in our year-end report, I will be retiring from Landmark Community Bank on December 31, 2017. I would like to take this final opportunity to thank our shareholders, clients, employees, officers, Advisory Board members and directors for your commitment and support of Landmark Community Bank during my 15 year term as Chief Executive.

As of April 17, 2017 Tom Amico was named your new President and Chief Executive Officer. I’ve known Tom for many years. He is a lifelong resident of Northeast Pennsylvania and has had a long and distinguished career in banking. I am sure, that with your support and his leadership, Landmark Community Bank will continue to grow and improve.

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

Landmark Bank

Banking Services

Savings, Money Market & Club Accounts Landmark Community Bank offers traditional savings accounts, money market accounts, certificates of deposit, club accounts and IRA accounts.

Checking Deposit accounts to meet all of your personal and business needs.

Online Banking Services Landmark Community Bank’s Net Teller allows you to bank from your personal computer, giving access to your bank accounts 24 hours a day.

Loans Landmark Community Bank offers a variety of home equity, personal and business loans.

At Landmark Community Bank our goal is to offer the highest customer service while establishing a long lasting relationship with you. We provide you with a high level of technology with experienced, responsive bankers to compliment and maximize your business. Landmark Community Bank offers a full range of services to accommodate all businesses. Please click on a link above to find out more about how Landmark can be "Better Business Banking" for you.
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