Landmark Bancorp Inc. · NASDAQ:LARK
Landmark Bancorp — Investor Presentation (February 2017)
29 slides from Landmark Bancorp's investor presentation, February 2017
Slide 1: A NASDAQ Traded Company – Symbol LARK
A NASDAQ Traded Company – Symbol LARK
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) 3.9 million • Market Cap (2) $121.1 million • Total Assets (3) $911.4 million • Total Deposits (3) $741.5 mill
Slide 4: Landmark Stock (NASDAQ: LARK)
Landmark Stock (NASDAQ: LARK) • Price-to-Book Value 143% • Price-to-Tangible Book Value 191% • Price-to-2016 Earnings 13.6x • Dividend Yield 2.6% • Book Value Per Share $21.96 • TBV Per Share $16.40 Based on financial information as of December 31, 2016 and the January 27, 2017 closing price of $31.
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 62 consecutive quarterly cash dividends since its formation in October 2001 • Annual stock dividends for 16 cons
Slide 6: Outperforming in Total Return
Outperforming in Total Return Source: SNL Financial
Slide 7: Track Record of Growing Scale
Track Record of Growing Scale 2013 $1,000 2012 Acquires $900 Acquires Citizens 2005 2006 2009 Wellsville $800 Acquires Acquires Acquires 2 branches First 2nd branch in Great Bend Manhattan Total assets in $ millions $700 in Lawrence $600 2004 2001 Acquires $500 Merges First Kansas with MNB $400 $300
Slide 8: Kansas Commercial Banks
Kansas Commercial Banks Total assets Number of banks $0 - $100 million 124 $100 million - $250 million 69 $250 million - $500 million 34 $500 million - $1 billion 14 > $1 billion 7 Source: SNL Financial Total assets as of December 31, 2016
Slide 9: Financial Highlights
Financial Highlights Earnings per Share $3.00 6277 $2.50 $2.16 $2.34 $2.00 $1.78 $1.50 + $t.29 $1.00 | $0.50 + $0.00 + 1 1 1 2012 2013 2014 2015 2016 Net Earnings (Dollars in Millions) $12.0 $10.5 $10.0 $9.0 58.0 $8.0 $6.4 $6.0 | $4.7 $4.0 - $2.0 4 $0.0 + 1 : 1 T 2012 2013 2014 2015 2016 Dividends p
Slide 10: Financial Highlights
Financial Highlights Return on Average Assets 1.40% 1.21% 1.20% soo% 1.01% 0.06% 1.00% 0.80% 0-70% 0.60% 0.40% 0.20% — 0.00% T T T T 2012 2013 2014 2015 2016 Total Assets (Dollars in Millions) $1,000.0 ’ 878.4 9or1.4 $828.8 $863.5 5 $800.0 $614.1 $600.0 $400.0 $200.0 $0.0 1 : 2012 2013 2014 2015 201
Slide 11: Financial Highlights
Financial Highlights $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 Deposits (Dollars in Millions) (Dollars in Millions) $7415 S74L.6 $63.3 $62.7 ; 2012 2013 2014 2013 2014 2015 2016 Net Interest Income Gains on Sales of Loans (Dollars in Millio
Slide 12: Financial Highlights
Financial Highlights Years ended December 31, 2016 2015 2014 Total assets (millions) $ 911.4 $ 878.4 $ 863.5 Stockholders' equity (millions) $ 85.0 $ 80.6 $ 71.6 Net earnings (millions) $ 9.0 $ 10.5 $ 8.0 Tangible equity to tangible assets 7.13% 6.86% 5.91% Return on average assets 1.00% 1.21% 0.96%
Slide 13: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings Years ended December 31, Variance from prior period in (dollars in thousands, except per share amounts) 2016 2015 Dollars Percent Interest income $ 29,230 $ 28,997 $ 233 0.8% Interest expense 3,191 3,081 110 3.6% Net interest income ("NII") 26,039 25,916
Slide 14: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings Years ended December 31, Variance from prior period in (dollars in thousands, 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 24
Slide 15: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets December 31, (dollars in thousands) 2016 2015 2014 Cash and cash equivalents $ 19,996 $ 13,569 $ 12,760 Investment securities 390,862 357,935 352,938 Loans, net 420,461 419,923 416,190 Loans held for sale 5,517 14,465 10,671 Premises and equipment, net 20,407 20
Slide 16: 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. • American Banker recognized Landmark Bancorp in t
Slide 17: Landmark – A Star in Each Community
Landmark – A Star in Each Community
Slide 18: Stable & Diverse Kansas Economy
Stable & Diverse Kansas Economy • Kansas ranked 7th in U.S. for total agriculture production (USDA) • Kansas has a population of just over 2.9 million (KS Dept. of Commerce) • Wichita is “Aviation Capital of the World” – producing 43% of domestic and 30% of global general aviation aircraft (KS Dept.
Slide 19: Kansas Employment Stronger than U.S.
Kansas Employment Stronger than U.S. Statewide unemployment rate 4.2% vs. 4.4% national in December 2016 Source: U.S. Bureau of Labor Statistics
Slide 20: Overview on Key Landmark Markets
Overview on Key Landmark Markets • Kansas ranked 5th in pro business rankings for states (AED/Pollina) – Kansas ranked 28th in 2016 Top States for Business (CNBC) • Kansas City rated No. 3 overall in America’s Favorite Cities survey (Travel + Leisure, 2014) • Overland Park selected as 7th best mid-s
Slide 21: Closer Look at Markets across Kansas
Closer Look at Markets across Kansas • Central Region – Economy and employment influenced by Kansas State University in Manhattan and Fort Riley Army Base in Junction City. Also, Manhattan has been chosen as site of the new National Bio and Agro-Defense Facility (NBAF). – Topeka is the capital of Ka
Slide 22: Closer Look at Markets across Kansas
Closer Look at Markets across Kansas • Southeast Region – Strongly influenced by agriculture, oil and gas, the Southeast area is also home to a variety of service and manufacturing businesses. – Pittsburg is home to Pittsburg State University, while Fort Scott and Iola each have community colleges.
Slide 23: Landmark’s Strengths for the Future
Landmark’s Strengths for the Future • Strong capital base • Loan diversification • Solid, low-cost deposit base • Non-interest income • Management depth and tenure
Slide 24: Strong Capital Base
Strong Capital Base To be well-capitalized (Dollars in thousands) As of For capital under prompt corrective December 31, 2016 adequacy purposes action provisions Amount Ratio Amount Ratio Amount Ratio Landmark Bancorp, Inc. Leverage (1) $ 88,819 10.04% $ 35,378 4.000% Common Equity Tier 1 Capital (1
Slide 25: Strong Capital Base
Strong Capital Base Risk Based Capital Ratio as of December 31, 2016 20.00% 15.00% 8.450% 8.310% 10.00% 1.375% 1.375% 5.00% 8.625% 8.625% 0.00% LBI LNB Adequate Well capitalized Excess capital
Slide 26: Diverse Loan Portfolio
Diverse Loan Portfolio As of December 31, 2016 Loan portfolio diversification: Commercial – Geographically across state 12.8% of Kansas 1-4 Family RE 32.1% – Across loan categories and collateral types Commercial RE 27.8% Other 5.7% Construction and Land Agriculture 3.2% 18.4%
Slide 27: Solid Low-cost Deposit Base
Solid Low-cost Deposit Base As of December 31, 2016 Solid deposit portfolio: Non-interest – Primary funding is from core CDs 18.9% bearing deposits 20.5% – Geographically located across state of Kansas – Mix of account types and Savings interest rates 11.9% MM & Checking 48.7%
Slide 28: 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 29: Landmark Investment Summary
Landmark Investment Summary Profile • Community bank with strong capital base • Diversified markets across State of Kansas 2016 Results • Record earnings in 2015 on $700,000 credit provision for loan losses related to $1.7 million loan recovery • Gains on sales of loans decreased in 2016 after the l
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