Landmark Bancorp Inc. · NASDAQ:LARK
Landmark Bancorp — Investor Presentation (January 2020)
38 slides from Landmark Bancorp's investor presentation, January 2020
Slide 1: A NASDAQ Traded Company – Symbol LARK
A NASDAQ Traded Company – Symbol LARK January 2020
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
fA. 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 24 communities across Kansas • Shares Outstanding (1) 4.6 million • Market Cap (2) $116.1 million • Total Assets (3) $998.5 million • Total Deposits (3) $835.0 mill
Slide 5: Landmark Stock (NASDAQ: LARK)
Landmark Stock (NASDAQ: LARK) • Price-to-Book Value 107% • Price-to-Tangible Book Value 132% • Price-to-2019 Earnings 10.9x • Dividend Yield 3.2% • Book Value Per Share $23.62 • TBV Per Share $19.19 Based on financial information as of December 31, 2019 and the January 21, 2020 closing price of $25.
Slide 6: 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 7: Kansas Commercial Banks
Kansas Commercial Banks Number Total Assets of Banks $0-$100 million 93 $100 million - $250 million 70 $250 million - $500 million 31 $500 million - $1 billion 11 > $1 billion 10 Total 215 At $998 million in assets, Landmark is the 11th largest bank headquartered in Kansas With 215 banks headquarter
Slide 8: Industry Rankings
Industry Rankings • Ranked as the 13th largest originator of one-to-four family residential mortgage loans in Kansas based on 2018 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 2018 top originator in
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 30 23 Mark A. Herpich EVP and Chief Financial Officer 21 21 Dean R. Thibault EVP Senior Commercial Banking Officer 39 21 M. Jeff Oliphant EVP Central Kansas R
Slide 10: Financial Highlights
fA. LANDMARK BANCORP, INC. Financial Highlights
Slide 11: Financial Highlights
Financial Highlights Years ended December 31, 2019 2018 2017 2016 Total assets (millions) $ 998.5 $ 985.8 $ 929.5 $ 911.4 Stockholders' equity (millions) $ 108.6 $ 91.9 $ 87.6 $ 85.0 Net earnings (millions) $ 10.7 $ 10.4 $ 4.4 $ 9.0 Tangible equity to tangible assets 9.02% 7.39% 7.31% 7.13% Return o
Slide 12: Financial Highlights – Quarterly Trends
Financial Highlights – Quarterly Trends 12
Slide 13: Financial Highlights – Quarterly Trends
Financial Highlights – Quarterly Trends 13
Slide 14: Financial Highlights
Financial Highlights Earnings per Share Dividends per Share $3.00 $1.00 $2.39 $2.50 $2.27 231 $0.80 S055 $0.76 5200 $2.00 $0.63 $0.66 , so.60 | $1.50 $1.00 $0.96 $0.40 + $0.50 $0.20 | $0.00 : : : $0.00 4 : . + : 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Net Earnings Tangible Book Value per S
Slide 15: Financial Highlights
Financial Highlights 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% $1,250.0 $1,000.0 Return on Average Assets 1.21% 1.00% 1.09% 1.07% - : 2015 2016 Total Assets 2017 (Dollars in Millions) 2018 2019 $929.5 $985.8 $998.5 $750.0 + $500.0 + $250.0 + $878.4 $0.0 + 2015 $911.4 2016 2017 2018 2019 16.00%
Slide 16: Financial Highlights
Financial Highlights $120.0 $105.0 $90.0 $75.0 $60.0 $45.0 $30.0 $15.0 $0.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 Stockholders’ Equity (Dollars in Millions) $108.6 $85.0 $87.6 $91.9 2015 2016 2017 2018 2019 Net Interest Income (Dollars in Millions) $27.8 $30.4 $25.9 $26.0 $26.1 2015 2016 201
Slide 17: Stable and Diversified Non-Interest Income
Stable and Diversified Non-Interest Income Year ended December 31, 2019 Year ended December 31, 2018 Total $15.8 million Total $15.6 million Bank owned life Other insurance $0.9 million Other $0.8 million $2.6 million Bank owned life insurance $0.6 million Gains on Gains on sales of loans sales of l
Slide 18: Diverse Loan Portfolio
Diverse Loan Portfolio As of December 31, 2019 Loan portfolio diversification: – Attractive yield on loans of Commercial 1-4 Family RE 20.4% 5.35% 27.2% – Geographically across state of Kansas – Across loan categories and collateral types Other 5.1% CRE Construction 24.8% and Land 4.2% Agriculture 1
Slide 19: Solid Low-cost Deposit Base
Solid Low-cost Deposit Base As of December 31, 2019 Solid deposit portfolio: Non-interest – Low cost of deposits was CDs 17.6% bearing 0.83% 21.9% – Primary funding is from core deposits (89% of total deposits) Savings 11.9% – Geographically located across state of Kansas – Mix of account types and
Slide 20: Strong Capital Base
Strong Capital Base (Dollars in millions) As of Risk Based Capital Ratio December 31, 2019 as of December 31, 2019 Amount Ratio 20.00% Landmark National Bank Leverage $ 104.5 10.7% 15.00% Common Equity Tier 1 Capital 104.5 15.9% 6.5% Tier 1 Capital 104.5 15.9% Total Risk Based Capital 111.1 17.0% 10
Slide 21: Key Landmark Markets
fA. LANDMARK BANCORP, INC. Key Landmark Markets
Slide 22: Balanced Footprint in Metro & County-Seat Markets
Balanced Footprint in Metro & County-Seat Markets LARK Branch 22
Slide 23: 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 24: Kansas Employment Stronger than U.S.
Kansas Employment Stronger than U.S. Statewide unemployment rate 3.1% vs. 3.5% national in November 2019 Source: U.S. Bureau of Labor Statistics 24
Slide 25: Overview of Key Landmark Markets
Overview of Key Landmark Markets 10th Largest Bank Headquartered in Kansas 2019 2018 Number of Total Deposits In Total Market Total Deposits In Total Market Rank Institution (ST) Type 2019 Rank 2018 Rank Branches Market ($000) Share (%) Market ($000) Share (%) Kansas 1 Capitol Federal Financial Inc
Slide 26: 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 27: Closer Look at LARK Markets Across Kansas
Closer Look at LARK Markets Across Kansas Central Region Eastern Region #4 market share in Riley County #5 market share in Miami County Unemployment: Manhattan = 2.5% Unemployment: Kansas City = 2.7% Topeka = 2.9% Region is influenced by proximity to the Kansas Economy and employment influenced by C
Slide 28: 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 = 2.4% Unemployment: Pittsburg = 3.6% Focused on agribusiness activit
Slide 29: Investment Rationale
fA. LANDMARK BANCORP, INC. Investment Rationale
Slide 30: 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 31: 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 32: Track Record for Dividends
Track Record for Dividends • Quarterly cash dividends currently $0.20 / share – Landmark’s 2020 1st quarter cash dividend increased over 2019 by 5.0% – Landmark has approved 74 consecutive quarterly cash dividends since its formation in October 2001 • Annual stock dividends for 19 consecutive years
Slide 33: Outperforming in Total Return
Outperforming in Total Return Cov er up KBW Source: S&P Global 33
Slide 34: Landmark Investment Summary
Landmark Investment Summary Profile • Community bank with strong capital base • Diversified markets across State of Kansas 2019 Results • 2019: ROA – 1.1% and ROE – 10.6% • Solid core earnings continued • 2019 loan growth of $42.8 million, or 8.7% Well Positioned • Capital growth to allow continued
Slide 35: Appendix
fA. LANDMARK BANCORP, INC. Appendix
Slide 36: Condensed Consolidated Statements of Earnings
Condensed Consolidated Statements of Earnings Years ended December 31, Variance from prior period in (dollars in t housands, except per share amounts) 2019 2018 Dollars Percent Interest income $ 37,111 $ 33,153 $ 3,958 11.9% Interest expense 6,757 5,365 1,392 25.9% Net interest income ("NII") 30,354
Slide 37: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets December 31, Variance from prior period in (dollars in thousands) 2019 2018 Dollars Percent Cash and cash equivalents $ 13,694 $ 19,114 $ (5,420) -28.4% Investment securities 366,107 393,121 (27,014) -6.9% Loans, net 532,180 489,373 42,807 8.7% Loans held for sa
Slide 38: 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 38
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