Landmark Bancorp Inc. · NASDAQ:LARK
Landmark Bancorp — Shareholder Meeting (May 2020)
34 slides from Landmark Bancorp's shareholder meeting presentation, May 20, 2020
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 20, 2020 Manhattan, KS
Slide 2: Voting on Proposals
Voting on Proposals Proposal 1: • To elect three Class I directors for a term of three years – Brent A. Bowman – Sarah Hill-Nelson – David H. Snapp • Board recommends a vote FOR each nominee Proposal 2: • Ratification of Crowe LLP as Independent Registered Public Accounting Firm • Board recommends a
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 20, 2020 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) 4.5 million • Market Cap (2) $ 97.5 million • Total Assets (3) $989.1 million • Total Deposits (3) $830.5 mill
Slide 7: Landmark Stock (NASDAQ: LARK)
Landmark Stock (NASDAQ: LARK) • Price-to-Book Value 88% • Price-to-Tangible Book Value 107% • Price-to-2019 Earnings 9.4x • Dividend Yield 3.7% • Book Value Per Share $24.64 • TBV Per Share $20.14 Based on financial information as of March 31, 2020 and the April 30, 2020 closing price of $21.62 per
Slide 8: Track Record for Dividends
Track Record for Dividends • Quarterly cash dividends currently $0.20 / share – Landmark’s 2020 1st quarter cash dividend increased over 2019 by 5.0% – Landmark has approved 75 consecutive quarterly cash dividends since its formation in October 2001 • Annual stock dividends for 19 consecutive years
Slide 9: Financial Highlights – Quarterly Trends
Financial Highlights – Quarterly Trends
Slide 10: Financial Highlights – Quarterly Trends
Financial Highlights – Quarterly Trends
Slide 11: Financial Highlights
Financial Highlights $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 Net Earnings (Dollars in Millions) Qi 2020 $30.0 + $20.0 + Net Interest Income (Dollars in Millions) $30.4 $27.8 $26.0 $26.1 | ; | : 2016 2017 2018 2019 Qi 2020 rex ALAND Sco ne INC.
Slide 12: Financial Highlights
Financial Highlights Earnings per Share Dividends per Share $2.50 $2.27 $2.31 $0.80 » 50.69 $0.73 $0.76 $2.00 $0.66 : $2.00 + $0.60 + $150 4 $1.00 4 $0.96 aa $0.73 $0.20 0.20 + $0.00 4 - 7 - : $0.00 + - - 7 - 2016 2017 2018 2019 Q1 2020 2016 2017 2018 2019 Q1 2020 Return on Average Assets Return on
Slide 13: Financial Highlights
Financial Highlights Net Loans Total Assets (Dollars in Millions) (Dollars in Millions) $998.5 $575.0 $553.7 $1,000.0 5 $985.8 $989.1 $532.2 $525.0 $950.0 + $489.4 $929.5 $475.0 $911.4 $433.7 gaas.o | 94205 EE e000 , $375.0 1 r $850.0 + : r 2016 2017 2018 2019 Q1 2020 2016 2017 2018 2019 Q1 2020 . 1
Slide 14: Stable and Diversified Non-Interest Income
Stable and Diversified Non-Interest Income Quarter ended March 31, 2020 Quarter ended March 31, 2019 Total $5.4 million Total $3.3 million Other Bank owned life $0.3 million Other Bank owned life $0.3 million insurance $0.2 insurance million $0.2 million Fees and service charges $1.9 million Gains o
Slide 15: Solid Low-cost Deposit Base
Solid Low-cost Deposit Base As of March 31, 2020 Solid deposit portfolio: – Low cost of deposits was CDs Non-interest 16.1% bearing 0.61% 24.6% – Primary funding is from core deposits (92% of total Savings deposits) 12.8% – 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, 2020 20.00% 15.00% 6.71% 6.80% 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 22, 2019 Manhattan, KS
Slide 18: Landmark’s Response to COVID-19
Landmark’s Response to COVID-19 • Taking care of our customers and associates is foremost in mind • Activated pandemic response team to address changes resulting from the COVID-19 pandemic • Successfully transitioned many associates to working from home through the use of remote access • Allocated a
Slide 19: COVID-19 Customer Assistance Efforts
COVID-19 Customer Assistance Efforts • As a Small Business Administration (SBA) preferred lender, we immediately responded to help existing and new clients gain access to the SBA’s Payroll Protection Program (PPP) loans. – As of April 30, 2020, Landmark had funded 739 loans totaling $123.6 million.
Slide 20: Diverse Loan Portfolio
Diverse Loan Portfolio As of March 31, 2020 Loan portfolio diversification: 1-4 Family RE – Attractive yield on loans of Commercial 26.6% 21.6% 5.24% – Geographically across state of Kansas – Across loan categories and Other Owner Occupied collateral types 5.0% CRE 15.0% Construction and Land 4.4% A
Slide 21: Industry Diversification
Industry Diversification (dollars in thousands) As of March 31, 2020 Loan Percent of balance total loans Commercial real estate loans: Real estate rental and leasing $ 72,521 12.9% Hotels 14,339 2.6% Retail 8,924 1.6% Health care and social assistance 8,136 1.5% Restaurants 6,111 1.1% Construction a
Slide 22: Industry Diversification
Industry Diversification Commercial 21.6% (dollars in thousands) As of March 31, 2020 Loan Percent of balance total loans Commercial loans: Real estate rental and leasing $ 20,235 3.6% Finance and insurance 17,756 3.2% Wholesale 17,667 3.1% Construction and specialty contractors 14,736 2.6% Retail 7
Slide 23: COVID-19 Loan Modifications
COVID-19 Loan Modifications (dollars in thousands) As of April 30, 2020 Loan Number of balance loans Real estate rental and leasing $ 15,476 44 Hotels 4,808 3 Manufacturing 3,652 14 Restaurants 3,543 8 Health care and social assistance 3,145 8 Educational services 3,099 3 Construction and specialty
Slide 24: Asset Quality
Asset Quality 1.35% 4 1.30% + 1.25% 1.20% 1.15% 1.10% 1.05% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% ALLL to Gross Loans 1.33% 1.26% | 1.24% 1.20% 1.16% 7 2016 2017 2018 2019 Q1 2020 Net Charge-offs (Recoveries) to Average Net Loans 0.25% 0.24% 0.13% 0.08% |] 0.03% 2016 2017 2018 2019 Q1 2020 250.0
Slide 25: Asset Quality
Asset Quality $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% = T ill 2016 Non-performing Loans to Loans 0.64% 2016 Non-performing Assets (Dollars in Millions) 2017 2018 @ Non-accrual Loans 1.38% 1.06% SORE 2019 1.03% 2017 2018 2019 Q1 2020 1.35% Q1 2
Slide 26: 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 27: Kansas Commercial Banks
Kansas Commercial Banks Number Total Assets of Banks $0-$100 million 93 $100 million - $250 million 70 $250 million - $500 million 31 $500 million - $1 billion 11 > $1 billion 10 Total 215 At $998 million in assets, Landmark is the 11th largest bank headquartered in Kansas With 215 banks headquarter
Slide 28: Outperforming in Total Return
Outperforming in Total Return Cov er up KBW Source: S&P Global
Slide 29: 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 30: 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 31: The Landmark Team
The Landmark Team • Associates • Board of Directors • Shareholders
Slide 32: Questions
Questions /AALANDMARK ees BANCORP, INC.
Slide 33: Thank you for attending today’s meeting!
Thank you for attending today’s meeting!
Slide 34: Landmark – A Star in Each Community
Landmark – A Star in Each Community