Landmark Bancorp Inc. · NASDAQ:LARK
Landmark Bancorp — Shareholder Meeting (May 2021)
30 slides from Landmark Bancorp's shareholder meeting presentation, May 19, 2021
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 19, 2021 Manhattan, KS
Slide 2: Voting on Proposals
Voting on Proposals Proposal 1: • To elect three Class II directors for a term of three years – Richard A. Ball – Sandra J. Moll – Wayne R. Sloan • Board recommends a vote FOR each nominee Proposal 2: • Ratification of Crowe LLP as Independent Registered Public Accounting Firm • Board recommends a v
Slide 3: Voting Results and Adjournment of Formal Business Meeting
Voting Results and Adjournment of Formal Business Meeting
Slide 4: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 19, 2021 Manhattan, KS
Slide 5: Disclaimers
Disclaimers Special Note Concerning Forward-Looking Statements A number of statements we will be making in our presentation and in the accompanying slides are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements of the Landmark’s
Slide 6: Landmark Corporate Profile
Landmark Corporate Profile Landmark Bancorp is the holding company for Landmark National Bank, a community banking organization serving 24 communities across Kansas • Shares Outstanding (1) 4.8 million • Market Cap (2) $114.4 million • Total Assets (3) $1.2 billion • Total Deposits (3) $1.1 billion
Slide 7: Landmark Stock (NASDAQ: LARK)
Landmark Stock (NASDAQ: LARK) • Price-to-Book Value 89% • Price-to-Tangible Book Value 104% • Price-to-2020 Earnings 5.9x • Dividend Yield 3.3% • Book Value Per Share $26.97 • TBV Per Share $23.25 Based on financial information as of March 31, 2021 and the April 30, 2021 closing price of $24.05 per
Slide 8: Track Record for Dividends
Track Record for Dividends • Quarterly cash dividends currently $0.20 / share – Landmark’s 2021 1st quarter cash dividend increased over 2020 by 5.0% – Landmark has approved 79 consecutive quarterly cash dividends since its formation in October 2001 • Annual stock dividends for 20 consecutive years
Slide 9: Financial Highlights – Quarterly Trends
(Dollars in millions) Financial Highlights – Quarterly Trends
Slide 10: Financial Highlights – Quarterly Trends
Financial Highlights – Quarterly Trends
Slide 11: Financial Highlights
Financial Highlights Net Earnings Net Interest Income (Dollars in Millions) (Dollars in Millions) $25.0 4 $40.0 > $36.5 $19.5 $35.0 5 $30.4 $20.0 + $30.0 + $27.8 $15.0 $25.0 + $10.4 $10.7 $20.0 4 $10.0 + $15.0 - sso | ; $10.0 + : $5.0 - $0.0 - - soo + : 1 2018 2019 2020 Qi 2021 2018 2019 2020 Q1 202
Slide 12: Financial Highlights
Financial Highlights $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 2.00% 4 1.80% + 1.60% ~ 1.40% ~ 1.20% + f T 7 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% $2.16 2018 Return on Average Assets 1.09% 2018 Earnings per Share $2.20 $4.10 $1.13 _ 2019 1.07% 2020 1.77% Qi 2021 1.77% 2019 2020 Qi 20
Slide 13: Financial Highlights
Financial Highlights Total Assets Net Loans (Dollars in Millions) (Dollars in Millions) §1,500.0 5 $800.0 4 $702.8 $717.8 51.2500 | $1,188.0 $1,248.9 985.8 $998.5 $600.0 + ev $532.2 $1,000.0 + ° sa00.0 | $750.0 + $500.0 + 200.0 + s $250.0 4 $0.0 4 1 T 7 $0.0 4 r 1 T 2018 2019 2020 Q1 2021 2018 2019
Slide 14: Stable and Diversified Non-Interest Income
Stable and Diversified Non-Interest Income Quarter ended March 31, 2021 Quarter ended March 31, 2020 Total $6.7 million Total $5.4 million Bank owned Bank owned Other Other life insurance life insurance $0.3 million $0.3 million $0.2 million $0.2 million Gains on sales Fees and service of investment
Slide 15: Solid Low-cost Deposit Base
Solid Low-cost Deposit Base As of March 31, 2021 Solid deposit portfolio: CDs – Low cost of deposits was 13.2% Non-interest 0.15% bearing 26.1% – Primary funding is from core Savings deposits (97% of total 12.4% deposits) – Geographically located across state of Kansas – Mix of account types and int
Slide 16: Strong Capital Base
Strong Capital Base Risk Based Capital Ratio as of March 31, 2021 20.00% 15.00% 7.39% 7.59% 10.00% 5.00% 10.50% 10.50% 0.00% LBI LNB Adequate Well capitalized Excess capital
Slide 17: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 19, 2021 Manhattan, KS
Slide 18: Landmark’s Response to COVID-19
Landmark’s Response to COVID-19 • Enhanced safety precautions for our customers and associates • Activated pandemic response team to address changes resulting from the COVID-19 pandemic • Some associates are still working from home through the use of remote access • Repositioned associates to our cu
Slide 19: COVID-19 Customer Assistance Efforts
COVID-19 Customer Assistance Efforts • Responded to help existing and new clients gain access to the Small Business Administration’s (SBA) Payroll Protection Program (PPP) loans. – As of April 30, 2021, Landmark had funded 2,128 loans totaling $185.1 million. – At March 31, 2021, we had $117.3 milli
Slide 20: Diverse Loan Portfolio
Diverse Loan Portfolio As of March 31, 2021 Loan portfolio diversification: 1-4 Family RE Commercial – Attractive yield on loans of 21.9% 17.4% 4.67% – Geographically across state Other of Kansas 3.7% PPP – Across loan categories and Construction 16.1% collateral types and Land 3.6% Agriculture 12.7
Slide 21: Asset Quality
Asset Quality 1.28% 1.26% - 1.24% 1.22% + 1.20% 1.18% + 1.16% 1.14% 1.12% 1.10% 0.30% 4 0.25% + 0.20% + 0.15% + 0.10% + 0.05% + 0.00% + ALLL to Gross Loans 1.27% 1.23% 1.20% 2018 2019 2020 Q1 2021 Net Charge-offs (Recoveries) to Average Net Loans 0.16% 0.13% 2018 2019 2020 Qi 2021 140.00% 120.00% 10
Slide 22: Asset Quality
Asset Quality $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 1.60% 1.40% + 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% en -_ 2018 Non-performing Assets (Dollars in Millions) 2019 @ Non-accrual Loans 2020 os ORE Q1 2021 Non-performing Loans to Loans 1.06% 2018 1.03% 1.47% 1.51% ; T is 2019 2020 Qi 2021 2.5
Slide 23: Track Record of Organic & Acquisitive Growth
Track Record of Organic & Acquisitive Growth Acquired First Kansas Acquired First Acquired Wellsville Acquired two Financial Corp. ($152M Manhattan Bancorp. Bank ($36M in assets) commercial banking in assets) ($130M in assets) teams (one in May and one in December) Completed merger Acquired 2 branch
Slide 24: Kansas Commercial Banks
Kansas Commercial Banks Number Total Assets of Banks $0-$100 million 78 $100 million - $250 million 69 $250 million - $500 million 32 $500 million - $1 billion 17 > $1 billion 14 Total 210 At $1.2 billion in assets, Landmark is the 11th largest bank headquartered in Kansas With 210 banks headquarter
Slide 25: Landmark Investment Rationale
Landmark Investment Rationale • Strong asset quality and capital • Diversified loan portfolio and low-cost core deposit base • Stable non-interest income levels, including a history of proven mortgage loan production • Consistent dividend history • Significant opportunities for consolidation • Track
Slide 26: Strategy for Continued Performance
Strategy for Continued Performance • Continue rigorous management disciplines • Refine and improve new business targeting and recruitment strategies • Capitalize on mortgage banking capabilities and infrastructure • Continue efforts to grow profitably – organically and through acquisitions • Control
Slide 27: The Landmark Team
The Landmark Team • Associates • Board of Directors • Shareholders
Slide 28: Questions
Questions /AALANDMARK ees BANCORP, INC.
Slide 29: Thank you for attending today’s meeting!
Thank you for attending today’s meeting!
Slide 30: Landmark – A Star in Each Community
Landmark – A Star in Each Community