Landmark Bancorp Inc. · NASDAQ:LARK
Landmark Bancorp — Shareholder Meeting (2016)
34 slides from Landmark Bancorp's shareholder meeting presentation, 2016
Slide 1: 2016 Annual Meeting
2016 Annual Meeting Manhattan, KS
Slide 2: Special Note Concerning Forward-Looking Statements
Special Note Concerning Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of
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) 3.6 million • Market Cap (2) $91.2 million • Total Assets (3) $892.5 million • Total Deposits (3) $708.4 milli
Slide 4: Landmark Stock (NASDAQ: LARK)
Landmark Stock (NASDAQ: LARK) • Price-to-Book Value 107% • Price-to-Tangible Book Value 144% • Price-to-2015 Earnings 8.8x • Dividend Yield 3.1% • Book Value Per Share $23.79 • TBV Per Share $17.73 Based on financial information as of March 31, 2016 and the average April 2016 closing price of $25.48
Slide 5: Track Record for Dividends
Track Record for Dividends • Quarterly cash dividends currently $0.20 / share – Landmark increased quarterly cash dividend rate during the 1st quarter of 2016 by 10.5% – Landmark has paid 59 consecutive quarterly cash dividends since its formation in October 2001 • Annual stock dividends for 15 cons
Slide 6: Financial Highlights
Financial Highlights Earnings per Share Dividends per Share $3.50 $0.80 $3.00 $2.91 $075 $0.72 $2.50 $2.27 $0.70 $0.69 $2.00 $1.87 $0.66 $150 $1.32 $1.35 $0.65 0.63 1.00 | $0.60 $0.60 $0.00 4 : $0.50 + : 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Net Earnings Book Value per Share (Dollars in
Slide 7: Financial Highlights
Financial Highlights Return on Average Assets 1.40% 1.20% eae 20% tox 1.01% 0.96% 0.78% 0.80% 0.70% 0.60% - 0.40% 0.20% 0.00% - + + + 2011 2012 2013 2014 2015 Total Assets (Dollars in Millions) $1,000.0 $863.5 $878.4 $828.8 $800.0 $598.2 $614.1 $600.0 $400.0 ~ $200.0 $0.0 - - 2011 2012 2013 2014 201
Slide 8: Financial Highlights
Financial Highlights Stockholders’ Equity Deposits (Dollars in Millions) (Dollars in Millions) $90.0 $800.0 $80.6 $714.7 575.0 $71.6 $687.5 $704.6 $63.3 $62.7 $600.0 $59.1 $60.0 $454.1 $4825 $45.0 $400.0 + $30.0 $200.0 - $15.0 $0.0 ' 1 $0.0 , 1 , 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Net
Slide 9: Financial Highlights
Financial Highlights Q1 Years ended December 31, 2016 2015 2014 2013 Total assets (millions) $ 892.5 $ 878.4 $ 863.5 $ 828.3 Stockholders' equity (millions) $ 85.2 $ 80.6 $ 71.6 $ 62.7 Net earnings (millions) $ 2.3 $ 10.5 $ 8.0 $ 4.7 Tangible equity to tangible assets 7.29% 6.86% 5.91% 5.00% Return
Slide 10: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings Years ended December 31, Variance from prior period in (dollars in t housands, except per share amounts) 2015 2014 Dollars Percent Interest income $ 28,997 $ 27,850 $ 1,147 4.1% Interest expense 3,081 3,186 (105) -3.3% Net interest income ("NII") 25,916 2
Slide 11: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings Quarters ended March 31, Variance from prior period in (dollars in t housands, except per share amounts) 2016 2015 Dollars Percent Interest income $ 7,174 $ 7,063 $ 111 1.6% Interest expense 770 769 1 0.1% Net interest income ("NII") 6,404 6,294 110 1.7%
Slide 12: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets March 31, December 31, (dollars in thousands) 2016 2015 2014 Cash and cash equivalents $ 9,853 $ 13,569 $ 12,760 Investment securities 377,770 357,935 352,938 Loans, net 419,879 419,923 416,190 Loans held for sale 13,423 14,465 10,671 Premises and equipment, net
Slide 13: Strong Capital Base
Strong Capital Base To be well-capitalized (Dollars in thousands) For capital under prompt corrective As of March 31, 2016 adequacy purposes action provisions Amount Ratio Amount Ratio Amount Ratio Landmark Bancorp, Inc. Leverage $ 83,139 9.67% $ 34,407 4.000% Common Equity Tier 1 Capital 62,683 11.
Slide 14: 2016 Annual Meeting
2016 Annual Meeting Manhattan, KS
Slide 15: Summary of Non-performing Assets
Summary of Non-performing Assets (dollars in thousands) March 31, December 31, 2016 2015 2014 Total non-accrual loans $ 2,727 $ 2,168 $ 6,046 Accruing loans over 90 days past due - - - Non-performing investments - - - Real estate owned 310 1,000 255 Total non-performing assets $ 3,037 $ 3,168 $ 6,30
Slide 16: Non-Accrual Loans
Non-Accrual Loans (dollars in thousands) March 31, December 31, 2016 2015 2014 One-to-four family residential $ 1,282 $ 749 $ 1,585 Construction and land 610 614 1,322 Commercial real estate 47 47 2,488 Commercial loans 615 583 234 Agriculture loans 139 139 285 Municipal loans - - 65 Consumer loans
Slide 17: Summary of Allowance for Loan Losses
Summary of Allowance for Loan Losses (dollars in thousands) Quarter Ended Years ended December 31 Mar. 31, 2016 2015 2014 Beginning Balance $ 5,922 $ 5,320 $ 5,540 Provisions for loan losses 50 (700) 600 Charge-offs (137) (554) (1,049) Recoveries 34 1,856 229 Ending Balance $ 5,869 $ 5,922 $ 5,320 T
Slide 18: Diverse Loan Portfolio
Diverse Loan Portfolio As of March 31, 2016 Loan portfolio diversification: Commercial 13.9% – Geographically across state 1-4 Family RE of Kansas 31.1% – Across loan categories and collateral types Commercial RE 27.8% Other 6.4% Construction and Land 3.6% Agriculture 17.2%
Slide 19: 2016 Annual Meeting
2016 Annual Meeting Manhattan, KS
Slide 20: 2015 Performance
2015 Performance • Record net profit – $10.5 million • Cash dividend increased 5% • 5% stock dividend • ROA – 1.21%; ROE – 13.81% • Diluted EPS – $2.91 per share
Slide 21: Industry Performance Recognition
Industry Performance Recognition • American Banker recognized Landmark Bancorp in their Top 200 list for most profitable publicly traded community banks (less than $2 billion) based on return on average equity over the past three years (2013-2015). Landmark Bancorp ranked 75th out of 684 nationally
Slide 22: Industry Performance Recognition
Industry Performance Recognition • 2015 Seifried & Brew 5 Gold Bar Institution based on S&B’s total risk / return for financial institutions with assets between $10 million and $10 billion. Landmark National Bank was ranked 299th out of 5,960 banks.
Slide 23: Commercial Banking Growth
Commercial Banking Growth New or Significantly Loan Closings Expanded (millions) Relationships Year-to-date April 30, 2016 $ 27.4 20 Year-to-date April 30, 2015 $ 34.5 25 Year ending December 31, 2015 $ 82.4 62 Year ending December 31, 2014 $ 85.5 49
Slide 24: Solid Low-cost Deposit Base
Solid Low-cost Deposit Base As of March 31, 2016 Solid deposit portfolio: Non-interest – Primary funding is from core CDs bearing deposits 22.8% 20.6% – Geographically located across state of Kansas – Mix of account types and interest rates Savings 11.3% MM & Checking 45.3%
Slide 25: Net Retail Accounts
Net Retail Accounts 1,200 1,031 1,000 969 800 600 554 475 400 237 200 90 0 2010 2011 2012 2013 2014 2015 Includes checking, money market and savings accounts.
Slide 26: Net Commercial Accounts
Net Commercial Accounts 250 200 191 149 153 150 102 100 93 88 50 0 2010 2011 2012 2013 2014 2015 Includes checking, money market and savings accounts.
Slide 27: 1-4 Family Mortgage Banking Volumes
1-4 Family Mortgage Banking Volumes 2013 - $160.7 million 2014 - $211.0 million Refinance Refinance 42% 16% Purchase 84% Purchase 58% 2015 - $307.8 million Refinance 26% Purchase 74%
Slide 28: Track Record of Growing Scale
Track Record of Growing Scale 2013 $1,000 Acquires 2006 Citizens $900 2012 2005 Acquires 2009 Acquires Acquires $800 First Acquires 2 branches Wellsville Manhattan 2nd branch Total assets in $ millions $700 in Great Bend in Lawrence $600 2004 2001 Acquires $500 Merges First Kansas with MNB $400 $300
Slide 29: Kansas Banks and Thrifts
Kansas Banks and Thrifts Total assets Number of banks $0 - $100 million 139 $100 million - $250 million 72 $250 million - $500 million 34 $500 million - $1 billion 16 > $1 billion 11 Source: SNL Financial Total assets as of December 31, 2015
Slide 30: Strategy for Continued Performance
Strategy for Continued Performance 1. Continue rigorous management disciplines 2. Refine and improve new business targeting and recruitment strategies 3. Capitalize on mortgage banking capabilities and infrastructure 4. Continue efforts to grow profitably – organically and through acquisitions 5. Co
Slide 31: Landmark Investment Summary
Landmark Investment Summary Profile • Community bank with strong capital base • Diversified markets across State of Kansas Q1 2016 Results • Record quarterly earnings in Q1 2015 on $1.0 million credit provision for loan losses related to $1.7 million loan recovery • Solid core earnings continue in 2
Slide 32: The Landmark Team
The Landmark Team • Associates • Board of Directors • Shareholders
Slide 33: Questions
Questions /NLANDMARK ums BANCORP, INC.
Slide 34: Landmark – A Star in Each Community
Landmark – A Star in Each Community