Landmark Bancorp Inc. · NASDAQ:LARK
Landmark Bancorp — Investor Presentation (May 2017)
38 slides from Landmark Bancorp's investor presentation, May 2017
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
A. 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) 3.9 million • Market Cap (2) $119.0 million • Total Assets (3) $923.0 million • Total Deposits (3) $752.7 mill
Slide 5: Landmark Stock (NASDAQ: LARK)
Landmark Stock (NASDAQ: LARK) • Price-to-Book Value 137% • Price-to-Tangible Book Value 182% • Price-to-2016 Earnings 13.3x • Dividend Yield 2.6% • Book Value Per Share $22.40 • TBV Per Share $16.87 Based on financial information as of March 31, 2017 and the April 28, 2017 closing price of $30.75 pe
Slide 6: Industry Performance Recognition
Industry Performance Recognition American Banker recognized Landmark Bancorp in their Top 200 for the 3rd consecutive year. The list recognizes the most profitable publicly traded community banks (less than $2 billion) based on return on average equity over the prior three years. Landmark rankings:
Slide 7: 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 8: Kansas Commercial Banks
Kansas Commercial Banks Number of Total Assets Banks $0 - $100 million 123 $100 million - $250 million 68 $250 million - $500 million 33 $500 million - $1 billion 12 > $1 billion 7 Total 243 At over $900 million in assets, Landmark is one of the largest banks headquartered in Kansas With over 240 ba
Slide 9: Experienced Management Team
Experienced Management Team # of Years in # of Years Name Position Banking at LARK Patrick L. Alexander Executive Chairman 45 27 Michael E. Scheopner President and Chief Executive Officer 28 21 Mark A. Herpich EVP and Chief Financial Officer 19 19 Bradly L. Chindamo EVP and Credit Risk Manager 27 9
Slide 10: Financial Highlights
fA. LANDMARK BANCORP, INC. Financial Highlights
Slide 11: Financial Highlights
Financial Highlights Q1 Years ended December 31, 2017 2016 2015 2014 Total assets (millions) $ 923.0 $ 911.4 $ 878.4 $ 863.5 Stockholders' equity (millions) $ 86.7 $ 85.0 $ 80.6 $ 71.6 Net earnings (millions) $ 2.2 $ 9.0 $ 10.5 $ 8.0 Tangible equity to tangible assets 7.24% 7.13% 6.86% 5.91% Return
Slide 12: Financial Highlights
Financial Highlights Earnings per Share Dividends per Share $3.00 $2.77 $0.80 $0.76 $0.69 $2.50 $2.16 $231 $0.63 $0.66 $0.60 + $2.00 $1.50 $1.29 $0.40 + $1.00 _—] $0.56 $020 4 $0.20 $0.00 + + $0.00 ; r 1 2013 2014 2015 2016 Q1 2017 2013 2014 2015 2016 Q1 2017 Net Earnings Tangible Book Value per Sha
Slide 13: Financial Highlights
Financial Highlights 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% $1,000.0 $900.0 $800.0 $700.0 Return on Average Assets 1.21% 0.96% y 1.00% 0.98% ; - J : T 2013 2014 2015 2016 Q1 2017 Total Assets (Dollars in Millions) $911.4 $923.0 $863.5 2878.4 - i 7 2013 2014 2015 2016 Q1 2017 Return on Avera
Slide 14: 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 14 Stockholders’ Equity Deposits (Dollars in Millions) (Dollars in Millions) $800.0 85.0 $80.6 $i 86-7 $7527 $71.6. $741.5 $62.7 7 $704.6 o71s 7 J - ; i i 1 1 1 r 1 $600.0 i ; . 1 1 2013
Slide 15: Growing and Diversified Non-Interest Income
Growing and Diversified Non-Interest Income Year ending December 31, 2007 Year ending December 31, 2016 Total $5.9 million Total $14.3 million Other Other Bank owned life Bank owned life $0.5 million $1.0 million insurance insurance $0.5 million $0.5 million Gains on Gains on sales of loans sales of
Slide 16: Diverse Loan Portfolio
Diverse Loan Portfolio As of March 31, 2017 Loan portfolio diversification: Commercial – Attractive yield on loans of 1-4 Family RE 12.8% 4.89% 32.4% Owner – Geographically across state Occupied CRE 13.1% of Kansas – Across loan categories and collateral types Other Nonowner 5.8% Occupied CRE Constr
Slide 17: Solid Low-cost Deposit Base
Solid Low-cost Deposit Base As of March 31, 2017 Solid deposit portfolio: – Low cost of deposits was CDs Non-interest 18.5% bearing 0.23% 22.3% – Primary funding is from core deposits (96% of total deposits) Savings – Geographically located 12.4% 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, 2017 adequacy purposes action provisions Amount Ratio Amount Ratio Amount Ratio Landmark Bancorp, Inc. Leverage $ 90,260 10.05% $ 35,914 4.00% Common Equity Tier 1 Capital 69,609 13.
Slide 19: Strong Capital Base
Strong Capital Base Risk Based Capital Ratio as of March 31, 2017 20.00% 15.00% 8.580% 8.410% 0.750% 0.750% 10.00% 5.00% 9.250% 9.250% 0.00% LBI LNB Adequate Well capitalized Excess capital 19
Slide 20: Key Landmark Markets
fA. LANDMARK BANCORP, INC. Key Landmark Markets
Slide 21: Balanced Footprint in Metro & County-Seat Markets
Balanced Footprint in Metro & County-Seat Markets LARK Branch 21
Slide 22: 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 23: Kansas Employment Stronger than U.S.
Kansas Employment Stronger than U.S. Statewide unemployment rate 3.8% vs. 4.5% national in March 2017 Source: U.S. Bureau of Labor Statistics 23
Slide 24: Overview of Key Landmark Markets
Overview of Key Landmark Markets 11th Largest Bank Headquartered in Kansas Kansas - Top 25 Deposit Market Share Summary (MSA) Number Deposit Company Market Share Market Totals of Deposits in Growth Market Total Market Rank Institution (State) Branches Market (1-Year) Share # of Company Share Total T
Slide 25: Overview on Key Landmark Markets
Overview on Key Landmark Markets • Kansas ranked 5th in pro business rankings for states (AED/Pollina) – Kansas ranked 27th in 2017 Best & Worst States for Business (Chief Executive) • Kansas City rated No. 3 overall in America’s Favorite Cities survey (Travel + Leisure, 2014) • Overland Park select
Slide 26: 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 = 4.1% Unemployment: Manhattan = 3.2% * Proj. Population Growth: Kansas City = 3.3% Topeka = 4.0% * Proj. HH Income Growth: Kansas City = 6.2% * Proj. Population Gro
Slide 27: 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 Strongly influenced by agriculture, oil and gas, * Proj. HH Income Growth: Dodge City = 3.0% the Southeas
Slide 28: Investment Rationale
fA. LANDMARK BANCORP, INC. Investment Rationale
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: 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 63 consecutive quarterly cash dividends since its formation in October 2001 • Annual stock dividends for 16 cons
Slide 32: Outperforming in Total Return
Outperforming in Total Return Source: SNL Financial 32
Slide 33: Landmark Investment Summary
Landmark Investment Summary Profile • Community bank with strong capital base • Diversified markets across State of Kansas 2016 Results • 2016: ROA – 1.00% and ROE – 10.3% • Solid core earnings continued despite lower levels of gains on sales of loans in 2016 after the loss of a few mortgage lenders
Slide 34: Appendix
fA. LANDMARK BANCORP, INC. Appendix
Slide 35: 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 36: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings Three months ended March 31, Variance from prior period in (dollars in thousands, except per share amount s) 2017 2016 Dollars Percent Interest income $ 7,188 $ 7,174 $ 14 0.2% Interest expense 820 770 50 6.5% Net interest income ("NII") 6,368 6,404 (36)
Slide 37: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets March 31, December 31, (dollars in thousands) 2017 2016 2015 Cash and cash equivalents $ 20,062 $ 19,996 $ 13,569 Investment securities 402,243 390,862 357,935 Loans, net 417,955 420,461 419,923 Loans held for sale 8,588 5,517 14,465 Premises and equipment, net
Slide 38: Contact Information
Contact Information • Patrick L. Alexander – Executive Chairman – (785) 228-8623 – palexander@banklandmark.com • Michael E. Scheopner – President and Chief Executive Officer – (785) 228-8636 – mscheopner@banklandmark.com • Mark A. Herpich – Chief Financial Officer – (785) 564-4527 – mherpich@banklan