Landmark Bancorp Inc. · NASDAQ:LARK
Landmark Bancorp — Shareholder Meeting (2018)
33 slides from Landmark Bancorp's shareholder meeting presentation, 2018
Slide 1: 2018 Annual Meeting
2018 Annual Meeting Manhattan, KS
Slide 2: Disclaimers
Disclaimers Special Note Concerning Forward-Looking Statements This presentation contains forward-looking statements, within the meaning of such term in the Private Securities Litigation Reform Act of 1995, with respect to the financial condition, results of operations, plans, objectives, future per
Slide 3: Landmark Corporate Profile
Landmark Corporate Profile Landmark Bancorp is the holding company for Landmark National Bank, a community banking organization serving 23 communities across Kansas • Shares Outstanding (1) 4.1 million • Market Cap (2) $119.1 million • Total Assets (3) $939.0 million • Total Deposits (3) $769.6 mill
Slide 4: Landmark Stock (NASDAQ: LARK)
Landmark Stock (NASDAQ: LARK) • Price-to-Book Value 142% • Price-to-Tangible Book Value 190% • Price-to-2017 Earnings 27.5x • Dividend Yield 2.7% • Book Value Per Share $20.51 • TBV Per Share $15.40 Based on financial information as of March 31, 2018 and the April 30, 2018 closing price of $29.18 pe
Slide 5: Track Record for Dividends
Track Record for Dividends • Quarterly cash dividends currently $0.20 / share – Landmark has paid 67 consecutive quarterly cash dividends since its formation in October 2001 • Annual stock dividends for 17 consecutive years – Issued a 5% stock dividend in December 2017 • S&P Global cited Landmark as
Slide 6: Financial Highlights
Financial Highlights Q1 Years ended December 31, 2018 2017 2016 2015 2014 Total assets (millions) $ 939.0 $ 929.5 $ 911.4 $ 878.4 $ 863.5 Stockholders' equity (millions) $ 84.4 $ 87.6 $ 85.0 $ 80.6 $ 71.6 Net earnings (millions) $ 2.1 $ 4.4 $ 9.0 $ 10.5 $ 8.0 Tangible equity to tangible assets 6.91%
Slide 7: Financial Highlights
Financial Highlights Earnings per Share Dividends per Share $3.00 $2.64 $0.80 $0.73 92.50 : 0.63 $0.65 5.00 $2.06 92.20 $0.60 + : $1.50 + $0.40 4 $1.06 $1.00 + ; $0.51 $0.20 + 30.20 2014 2015 2016 2017 Q1 2018 2014 2015 2016 2017 Q1 2018 Net Earnings Tangible Book Value per Share (Dollars in Million
Slide 8: Financial Highlights
Financial Highlights Return on Average Assets Return on Average Equity 1.40% 16.00% 1.21% 13.81% 1.20% 14.00% 1.00% 0.92% 11.89% 0.96% J 1.00% d 12.00% 030% 591% 0.80% 10.00% + 0.60% 8.00% | ou 0.47% 6.00% - 4.98% 0.40% 4.00% + 0.20% - 2.00% 0.00% 1 r ; 0.00% | 1 T 2014 2015 2016 2017 Q1 2018 2014 2
Slide 9: Financial Highlights
Financial Highlights Stockholders' Equity Deposits (Dollars in Millions) (Dollars in Millions) $105.0 $800.0 $90.0 6806 $85.0 $87.6 $84.4 7656 57696 $75.0 S78 $750.0 $741.5 $60.0 - $714.7 $45.0 $704.6 s300 | $700.0 - $15.0 - $0.0 | $650.0 | 2014 2015 2016 2017 a1 2018 2014 2015 2016 2017 Qi 2018 Net
Slide 10: Condensed Consolidated Statements of Earnings
Condensed Consolidated Statements of Earnings Years ended December 31, Variance from prior period in (dollars in thousands, except per share amounts) 2017 2016 Dollars Percent Interest income $ 29,700 $ 29,230 $ 470 1.6% Interest expense 3,585 3,191 394 12.3% Net interest income ("NII") 26,115 26,03
Slide 11: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings Quarter ended March 31, Variance from prior period in (dollars in thousands, except per share amounts) 2018 2017 Dollars Percent Interest income $ 7,601 $ 7,188 $ 413 5.7% Interest expense 1,007 820 187 22.8% Net interest income ("NII") 6,594 6,368 226 3.
Slide 12: Diversified Non-Interest Income
Diversified Non-Interest Income Year ending December 31, 2017 Year ending December 31, 2016 Total $15.2 million Total $14.9 million Other Other Bank owned life $1.5 million Bank owned life $1.6 million insurance $0.9 million insurance $0.5 million Gains on sales of loans $5.5 million Gains on sales
Slide 13: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets March 31, December 31, (dollars in thousands) 2018 2017 2016 Cash and cash equivalents $ 13,042 $ 16,584 $ 19,996 Investment securities 403,566 393,406 390,862 Loans, net 436,179 433,743 420,461 Loans held for sale 6,287 6,535 5,517 Premises and equipment, net 2
Slide 14: Diverse Loan Portfolio
Diverse Loan Portfolio As of March 31, 2018 Loan portfolio diversification: Commercial – Attractive yield on loans of 1-4 Family RE 11.9% 4.99% 30.4% Owner – Geographically across state Occupied CRE of Kansas 16.7% – Across loan categories and collateral types Other 5.8% Nonowner Occupied CRE Constr
Slide 15: Asset Quality
Asset Quality $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 1.60% 1.40% | 1.20% 1.00% 0.80% + 0.60% 0.40% ~ 0.20% 0.00% J TT Non-performing Assets (Dollars in Millions) 2014 2015 2016 2017 Q1 2018 m Non-accrual Loans SORE Non-performing Loans to Loans 1.44% 1.38% 1.30% | " - : [ 2014 2015 2016 2017 Q1 201
Slide 16: Asset Quality
Asset Quality 1.45% 1.40% 1.35% 1.30% 1.25% 1.20% 1.15% 0.30% 0.20% 0.10% 0.00% -0.10% -0.20% -0.30% -0.40% ALLL to Gross Loans ALLL to Non-performing Loans 300.00% 773.15% 139% 250.00% 200.00% 194.61% % % 1.28% 150.00% 1.26% 1.264 1.24% 10.00% |87.99% 90.37% 97.92% T T T 0.00% + 2014 2015 2016 2017
Slide 17: Solid Low-cost Deposit Base
Solid Low-cost Deposit Base As of March 31, 2018 Solid deposit portfolio: – Low cost of deposits was CDs Non-interest 16.6% bearing 0.36% 22.1% – Primary funding is from core deposits (97% of total deposits) Savings 12.6% – Geographically located across state of Kansas – Mix of account types and int
Slide 18: Strong Capital Base
Strong Capital Base To be well-capitalized (Dollars in thousands) As of For capital under prompt corrective March 31, 2018 adequacy purposes action provisions Amount Ratio Amount Ratio Amount Ratio Landmark Bancorp, Inc. Leverage $ 92,606 10.15% $ 36,495 4.00% Common Equity Tier 1 Capital 71,723 13.
Slide 19: Strong Capital Base
Strong Capital Base Risk Based Capital Ratio as of March 31, 2018 20.00% 15.00% 8.130% 7.770% 0.750% 0.750% 10.00% 5.00% 9.250% 9.250% 0.00% LBI LNB Adequate Well capitalized Excess capital
Slide 20: 2018 Annual Meeting
2018 Annual Meeting Manhattan, KS
Slide 21: Overview of Key Landmark Markets
Overview of Key Landmark Markets 10th Largest Bank By Deposits Headquartered in Kansas 2017 2016 Number of Total Deposits In Total Market Total Deposits In Total Market Rank Institution (ST) Type 2017 Rank 2016 Rank Branches Market ($000) Share (%) Market ($000) Share (%) Kansas 1 Bank of America Co
Slide 22: Overview of Key Landmark Markets
Overview of Key Landmark Markets 11th Largest Bank By Assets Headquartered in Kansas March 31, 2018 Total Market Rank Institution (ST) Type City State Assets ($) Share (%) Kansas 1 Capitol Federal Savings Bank Thrift Topeka KS 9,134,571 22.03 2 INTRUST Bank, National Association Bank Wichita KS 5,14
Slide 23: Closer Look at LARK Markets Across Kansas
Closer Look at LARK Markets Across Kansas Central Region Eastern Region #5 market share in the Manhattan MSA Unemployment: Kansas City = 3.6% Unemployment: Manhattan = 2.5% * Proj. Population Growth: Kansas City = 3.3% Topeka = 3.5% * Proj. HH Income Growth: Kansas City = 6.2% * Proj. Population Gro
Slide 24: Closer Look at LARK Markets Across Kansas
Closer Look at LARK Markets Across Kansas Southeast Region Southwest Region #2 market share in the Dodge City MSA * Proj. HH Income Growth: Pittsburg = 5.5% #6 market share in the Great Bend MSA Unemployment: Bourbon County = 3.8% * Proj. HH Income Growth: Dodge City = 3.0% Strongly influenced by ag
Slide 25: Track Record of Organic & Acquisitive Growth
Track Record of Organic & Acquisitive Growth Acquired First Kansas Acquired First Acquired Wellsville Financial Corp. ($152M Manhattan Bancorp. Bank ($36M in assets) in assets) ($130M in assets) Completed merger Acquired 2 branches Acquired 1 branch in of equals with MNB in Great Bend, KS Lawrence,
Slide 26: Kansas Commercial Banks
Kansas Commercial Banks Number Total Assets of Banks $0-$100 million 107 $100 million - $250 million 73 $250 million - $500 million 33 $500 million - $1 billion 12 > $1 billion 7 Total 232 At over $900 million in assets, Landmark is one of the largest banks headquartered in Kansas With over 230 bank
Slide 27: 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 28: 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 29: Outperforming in Total Return
Outperforming in Total Return Source: S&P Global
Slide 30: Landmark Investment Summary
Landmark Investment Summary Profile • Community bank with strong capital base • Diversified markets across State of Kansas 2017 Results • 2017: ROA – 0.5% and ROE – 5.0% • Solid core earnings continued despite the after-tax, deposit-related loss of $5.1 million • Excluding the deposit-related loss,
Slide 31: The Landmark Team
The Landmark Team • Associates • Board of Directors • Shareholders
Slide 32: Questions
Questions /NLANDMARK ums BANCORP, INC.
Slide 33: Landmark – A Star in Each Community
Landmark – A Star in Each Community