Landmark Bancorp Inc. · NASDAQ:LARK
Landmark Bancorp — Shareholder Meeting (May 2019)
40 slides from Landmark Bancorp's shareholder meeting presentation, May 22, 2019
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 22, 2019 Manhattan, KS
Slide 2: Disclaimers
Disclaimers Special Note Concerning Forward-Looking Statements This presentation contains, and future oral and written statements of Landmark Bancorp, Inc. (“Landmark”) may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to t
Slide 3: Meeting Agenda
Meeting Agenda • Welcome from the Chair – Opening of Business Meeting and Introductory Remarks • Introductions and Housekeeping Matters • Voting on Proposals • Adjournment of Formal Business Meeting • Management Reports • Stockholder Question and Answer Session
Slide 4: Proposal 1
Proposal 1 • To elect three Class III directors for a term of three years – Patrick L. Alexander – Jim W. Lewis – Michael E. Scheopner • Board recommends a vote FOR each nominee
Slide 5: Proposal 2
Proposal 2 • Advisory vote to approve the compensation of named certain executive officers • Resolution: – RESOLVED, that Landmark Bancorp, Inc.’s stockholders approve, on an advisory basis, its executive compensation as described in the section captioned ‘Executive Compensation’ contained in the co
Slide 6: Proposal 3
Proposal 3 • Advisory vote to approve the frequency of future “say-on-pay” votes of the stockholders • Resolution: – RESOLVED, that the stockholders of Landmark Bancorp, Inc. determine, on an advisory basis, that the frequency with which the stockholders shall have an advisory vote on executive comp
Slide 7: Proposal 4
Proposal 4 • Ratification of Crowe LLP as Independent Registered Public Accounting Firm • Board recommends a vote FOR this proposal
Slide 8: Voting Results and Adjournment of Formal Business Meeting
Voting Results and Adjournment of Formal Business Meeting
Slide 9: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 22, 2019 Manhattan, KS
Slide 10: 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 11: 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 12: 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 13: Financial Highlights – Quarterly Trends
Financial Highlights – Quarterly Trends
Slide 14: Financial Highlights – Quarterly Trends
Financial Highlights – Quarterly Trends
Slide 15: Financial Highlights
Financial Highlights Net Earnings Net Interest Income (Dollars in Millions) (Dollars in Millions) $12.0 $30.0 27.8 aa $10.4 gay $259 $260 $264 $10.0 59.0 $25.0 s — $8.0 4 380 $20.0 - $6.0 4 $15.0 — $4.4 $4.0 4 $10.0 - $20 4 $5.0 $0.0 4 1 + , I, $0.0 5 ; : , 1 2014 2015 2016 2017 2018 2014 2015 2016
Slide 16: Financial Highlights
Financial Highlights Earnings per Share $3.00 $2.50 aa $2.39 $1.96 $2.10 $2.00 $1.50 - $1.01 $1.00 - $0.50 - $0.00 + 1 2014 2015 2016 2017 2018 Return on Average Assets 1.40% 1.21% 1.20% 1.09% 1.00% 1.00% 0.96% 0.80% 0.60% 0.47% 0.40% 0.20% 0.00% T T 2014 2015 2016 2017 2018 $1.00 $0.80 $0.60 $0.40
Slide 17: Financial Highlights
Financial Highlights Net Loans (Dollars in Millions) $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 $900.0 $600.0 $300.0 $0.0 $416.2 $419.9 $420.5 2014 2015 2016 Deposits (Dollars in Millions) 2014 2015 2016 } ; | ! I 1 T $1,250.0 $1,000.0 $750.0 $500.0 $250.0 $105.0 $90.0 $75.0 $60.0 $45.0 $30.0 $15.0 $0.
Slide 18: 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 19: 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 20: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets March 31, December 31, (dollars in thousands) 2019 2018 2017 Cash and cash equivalents $ 14,333 $ 19,114 $ 16,584 Investment securities 390,386 393,121 393,406 Loans, net 490,673 489,373 433,743 Loans held for sale 6,607 4,743 6,535 Premises and equipment, net 2
Slide 21: 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 22: Asset Quality
Asset Quality Non-performing Assets (Dollars in Millions) $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 1.60% 1.40% 1.20% 1.00% 0.80% ~ 0.60% 0.40% 0.20% 0.00% ; | re i 2015 2016 2017 2018 Q1 2019 m@Non-accrualLoans SORE Non-performing Loans to Loans 1.37% 1.35% 1.06% 0.64% 0.51% 7 2015 2016 2017 201
Slide 23: Asset Quality
Asset Quality 1.45% 1.40% 1.35% ~ 1.30% 1.25% + 1.20% + 1.15% 1.10% + 1.05% ~ 1.00% 0.30% 0.20% 0.10% 0.00% -0.10% -0.20% -0.30% -0.40% ALLL to Gross Loans 300.00% ALLL to Non-performing Loans 1.20% Q1 2019 Net Charge-offs (Recoveries) to Average Net Loans 0.25% 0.24% 0.08% | 0.01% -0.31% 2015 2016
Slide 24: 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 25: Strong Capital Base
Strong Capital Base Risk Based Capital Ratio as of March 31, 2019 20.00% 15.00% 7.170% 6.820% 10.00% 5.00% 10.500% 10.500% 0.00% LBI LNB Adequate Well capitalized Excess capital
Slide 26: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 22, 2019 Manhattan, KS
Slide 27: Overview of Key Landmark Markets
Overview of Key Landmark Markets 19th Largest Bank By Deposit Share 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 ($000) Share (%) Kansas 1 Capitol Federal Financial I
Slide 28: Overview of Key Landmark Markets
Overview of Key Landmark Markets 11th Largest Bank By Assets Headquartered in Kansas March 31, 2019 Total Market Rank Institution (ST) Type City State Assets ($) Share (%) Kansas 1 Capitol Federal Savings Bank Thrift Topeka KS 9,552,356 21.32 2 INTRUST Bank, National Association Bank Wichita KS 5,16
Slide 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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 35: Outperforming in Total Return
Outperforming in Total Return Cov er up KBW Source: S&P Global
Slide 36: 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 37: The Landmark Team
The Landmark Team • Associates • Board of Directors • Shareholders
Slide 38: Questions
Questions /NLANDMARK ums BANCORP, INC.
Slide 39: Thank you for attending today’s meeting!
Thank you for attending today’s meeting!
Slide 40: Landmark – A Star in Each Community
Landmark – A Star in Each Community