Landmark Bancorp Inc. · NASDAQ:LARK
Landmark Bancorp — Investor Presentation (May 2019)
41 slides from Landmark Bancorp's investor presentation, May 2019
Slide 1: A NASDAQ Traded Company – Symbol LARK
A NASDAQ Traded Company – Symbol LARK
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: Corporate Overview
aX LANDMARK BANCORP, INC. Corporate Overview
Slide 4: 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) 4.4 million • Market Cap (2) $108.3 million • Total Assets (3) $981.0 million • Total Deposits (3) $821.8 mill
Slide 5: Landmark Stock (NASDAQ: LARK)
Landmark Stock (NASDAQ: LARK) • Price-to-Book Value 112% • Price-to-Tangible Book Value 142% • Price-to-2018 Earnings 10.4x • Dividend Yield 3.2% • Book Value Per Share $22.15 • TBV Per Share $17.47 Based on financial information as of March 31, 2019 and the April 30, 2019 closing price of $24.78 pe
Slide 6: Industry Rankings
Industry Rankings • Ranked as the 11th largest originator of one-to-four family residential mortgage loans in Kansas based on 2017 Home Mortgage Disclosure Act data provide by S&P Global • Ranked 19th in total deposit market share in Kansas per S&P Global data • Ranked as the top originator for Guar
Slide 7: 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 8: Kansas Commercial Banks
Kansas Commercial Banks Number Total Assets of Banks $0-$100 million 97 $100 million - $250 million 70 $250 million - $500 million 32 $500 million - $1 billion 13 > $1 billion 8 Total 220 At $978 million in assets, Landmark is the 9th largest bank headquartered in Kansas With 220 banks headquartered
Slide 9: Experienced Management Team
Experienced Management Team # of Years in # of Years Name Position Banking at LARK Michael E. Scheopner President and Chief Executive Officer 29 22 Mark A. Herpich EVP and Chief Financial Officer 20 20 Dean R. Thibault EVP Chief Lending Officer 38 20 M. Jeff Oliphant EVP Central Kansas Regional Mana
Slide 10: Financial Highlights
fA. LANDMARK BANCORP, INC. Financial Highlights
Slide 11: Financial Highlights
Financial Highlights Years ended December 31, 2018 2017 2016 2015 Total assets (millions) $ 985.8 $ 929.5 $ 911.4 $ 878.4 Stockholders' equity (millions) $ 91.9 $ 87.6 $ 85.0 $ 80.6 Net earnings (millions) $ 10.4 $ 4.4 $ 9.0 $ 10.5 Tangible equity to tangible assets 7.39% 7.31% 7.13% 6.86% Return on
Slide 12: Financial Highlights - Quarterly
Financial Highlights - Quarterly Quarters ended March 31, 2019 2018 Total assets (millions) $ 981.0 $ 939.0 Stockholders' equity (millions) $ 96.8 $ 84.4 Net earnings (millions) $ 2.2 $ 2.1 Tangible equity to tangible assets 7.95% 7.39% Return on average assets 0.91% 0.92% Return on average equity 9
Slide 13: Financial Highlights – Quarterly Trends
Financial Highlights – Quarterly Trends 13
Slide 14: Financial Highlights – Quarterly Trends
Financial Highlights – Quarterly Trends 14
Slide 15: Financial Highlights
Financial Highlights Earnings per Share Dividends per Share $3.00 $0.80 2.51 $0.69 ae $2.50 $ $2.39 50.63 51.96 $2.10 $0.60 30.60 $2.00 = $1.50 + $0.40 + $1.00 + $1.04 $0.20 - $0.50 - $0.00 | 1 $0.00 + 1 1 1 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Net Earnings (Dollars in Millions) Tangibl
Slide 16: Financial Highlights
Financial Highlights Return on Average Assets Return on Average Equity 1.40% 16.00% 1.21% 120% % vox 14.00% 13.81% 09% 96% 1.00% 11.89% 12.09% 1.00% 0.96% _ 12.00% 7 10.34% 10.00% - 0.80% + 8.00% + 0.60% 0.47% 6.00% - 498% 0.40% + 4.00% - 0.20% 2.00% +} 0.00% + T T T 0.00% T 2014 2015 2016 2017 2018
Slide 17: Financial Highlights
Financial Highlights $105.0 $90.0 $75.0 $60.0 $45.0 $30.0 $15.0 $0.0 $30.0 $25.0 = $20.0 $15.0 $10.0 $5.0 $0.0 Stockholders' Equity (Dollars in Millions) $85.0 $87.6 $91.9 $80.6 ; ; ; 2014 2015 2016 2017 2018 Net Interest Income (Dollars in Millions) $24.7 $25.9 $26.0 $26.1 ES 2014 2015 2016 2017 20
Slide 18: Stable and Diversified Non-Interest Income
Stable and Diversified Non-Interest Income Quarter ended March 31, 2019 Quarter ended March 31, 2018 Total $3.3 million Total $3.4 million Other Bank owned life $0.3 million Other insurance Bank owned life $0.3 million $0.2 million insurance $0.2 million Gains on sales of loans Gains on $1.2 million
Slide 19: Diverse Loan Portfolio
Diverse Loan Portfolio As of March 31, 2019 Loan portfolio diversification: 1-4 Family RE Commercial – Attractive yield on loans of 27.4% 15.9% 5.33% – Geographically across state of Kansas Owner Occupied CRE – Across loan categories and 16.7% collateral types Other 5.5% Construction and Land 3.7% N
Slide 20: Solid Low-cost Deposit Base
Solid Low-cost Deposit Base As of March 31, 2019 Solid deposit portfolio: – Low cost of deposits was CDs Non-interest bearing 0.83% 19.7% 22.4% – Primary funding is from core deposits (89% of total deposits) Savings – Geographically located 12.0% across state of Kansas – Mix of account types and int
Slide 21: Strong Capital Base
Strong Capital Base (Dollars in millions) As of Risk Based Capital Ratio March 31, 2019 as of March 31, 2019 Amount Ratio 20.00% Landmark National Bank Leverage $ 98.3 10.3% Common Equity Tier 1 Capital 98.3 16.3% 15.00% 7.3% Tier 1 Capital 98.3 16.3% Total Risk Based Capital 104.4 17.3% 10.00% 9.9%
Slide 22: Key Landmark Markets
fA. LANDMARK BANCORP, INC. Key Landmark Markets
Slide 23: Balanced Footprint in Metro & County-Seat Markets
Balanced Footprint in Metro & County-Seat Markets LARK Branch 23
Slide 24: Stable & Diverse Kansas Economy
Stable & Diverse Kansas Economy • Advanced manufacturing: Advanced manufacturing--especially aviation and aerospace manufacturing – is an important driver in the Kansas economy. The city of Wichita produces more than 30 percent of the world’s general aviation aircraft, earning the city the title of
Slide 25: Kansas Employment Stronger than U.S.
Kansas Employment Stronger than U.S. Statewide unemployment rate 3.5% vs. 3.8% national in March 2019 Source: U.S. Bureau of Labor Statistics 25
Slide 26: Overview of Key Landmark Markets
Overview of Key Landmark Markets 10th Largest Bank Headquartered in Kansas 2018 2017 Number of Total Deposits In Total Market Total Deposits In Total Market Rank Institution (ST) Type 2018 Rank 2017 Rank Branches Market ($000) Share (%) Market ($000) Share (%) Kansas 1 Capitol Federal Financial Inc
Slide 27: Overview on Key Landmark Markets
Overview on Key Landmark Markets • Kansas ranked 5th in pro business rankings for states (AED/Pollina) • Kansas ranked 29th overall in state rankings – Opportunity ranked 12th and infrastructure 16th (US News & World Report, 2018) • Manhattan rated as the 2nd best place in the country to live (livab
Slide 28: Closer Look at LARK Markets Across Kansas
Closer Look at LARK Markets Across Kansas Central Region Eastern Region #5 market share in Riley County #5 market share in Miami County Unemployment: Manhattan = 2.5% Unemployment: Kansas City = 2.7% Topeka = 3.1% Region is influenced by proximity to the Kansas Economy and employment influenced by C
Slide 29: Closer Look at LARK Markets Across Kansas
Closer Look at LARK Markets Across Kansas Southeast Region Southwest Region #3 market share in Ford County #1 market share in Bourbon County #6 market share in Barton County #3 market share in Allen County Unemployment: Dodge City = 2.40% Unemployment: Pittsburg = 4.0% Focused on agribusiness activi
Slide 30: Investment Rationale
fA. LANDMARK BANCORP, INC. Investment Rationale
Slide 31: 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 32: 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 33: Track Record for Dividends
Track Record for Dividends • Quarterly cash dividends currently $0.20 / share – Landmark’s 2019 1st quarter cash dividend increased over 2018 by 5.0% – Landmark has approved 71 consecutive quarterly cash dividends since its formation in October 2001 • Annual stock dividends for 18 consecutive years
Slide 34: Outperforming in Total Return
Outperforming in Total Return Cov er up KBW Source: S&P Global 34
Slide 35: Landmark Investment Summary
Landmark Investment Summary Profile • Community bank with strong capital base • Diversified markets across State of Kansas 2018 Results • 2018: ROA – 1.1% and ROE – 12.1% • Solid core earnings continued • 2018 loan growth of $55.7 million, or 12.8% Well Positioned • Capital growth to allow continued
Slide 36: Appendix
fA. LANDMARK BANCORP, INC. Appendix
Slide 37: 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) 2018 2017 Dollars Percent Interest income $ 33,153 $ 29,700 $ 3,453 11.6% Interest expense 5,365 3,585 1,780 49.7% Net interest income ("NII") 27,788
Slide 38: Condensed Consolidated Statements of Earnings
Condensed Consolidated Statements of Earnings Quarter ended March 31, Variance from prior period in (dollars in thousands, except per share amounts) 2019 2018 Dollars Percent Interest income $ 8,884 $ 7,601 $ 1,283 16.9% Interest expense 1,688 1,007 681 67.6% Net interest income ("NII") 7,196 6,594
Slide 39: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets December 31, Variance from prior period in (dollars in thousands) 2018 2017 Dollars Percent Cash and cash equivalents $ 19,114 $ 16,584 $ 2,530 15.3% Investment securities 393,121 393,406 (285) -0.1% Loans, net 489,373 433,743 55,630 12.8% Loans held for sale 4,
Slide 40: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets March 31, Variance from prior period in (dollars in thousands) 2019 2018 Dollars Percent Cash and cash equivalents $ 14,333 $ 13,042 $ 1,291 9.9% Investment securities 390,386 403,566 (13,180) -3.3% Loans, net 490,673 436,179 54,494 12.5% Loans held for sale 6,6
Slide 41: Contact Information
Contact Information • Michael E. Scheopner – President and Chief Executive Officer – (785) 228-8636 – mscheopner@banklandmark.com • Mark A. Herpich – Chief Financial Officer – (785) 564-4527 – mherpich@banklandmark.com 41