LANDMARK BANCORP INC

Financial Performance and Growth

Landmark’s financial results in 2024 were solid. Net income for the twelve months ending December 31, 2024, totaled $13.0 million, an increase of 6.3% over 2023, and book value increased 6.9%. The increase in net income was achieved through net interest margin expansion and modest improvement in noninterest income, while keeping non-interest expense growth below 5.0%. Landmark’s net interest margin was 3.17% for 2023 and 3.28% for 2024, with momentum building as it reached 3.51% for the last quarter of 2024. Non-interest income for 2024 increased by $1.5 million, or 11.4%, from 2023. We are focused on continuing to increase noninterest income. For example, we have continued to develop the strong treasury management program we acquired with the Freedom Bank transaction in late 2022, and we expect to continue to enhance our offerings and increase this business in the future.

Our bankers have been working diligently to win new customer relationships and strengthen those we have served over time. With loan balances increasing by 10.9%, Landmark National Bank surpassed $1.0 billion in loans in 2024. We are very proud of reaching this milestone, particularly because this was achieved without sacrificing the overall quality of our loan portfolio. Despite a single, large credit placed on nonaccrual in the third quarter, credit quality remains strong, underscored by our disciplined approach to credit underwriting and prudent banking practices. Deposit balances reached $1.3 billion, growing by a modest 1.0%, a respectable number in this environment. Overall, we maintain levels of liquidity that are adequate to support future growth.

Balance sheet management was one of our top priorities in 2024 with an emphasis on net interest margin expansion and diversification of assets and liabilities, both of which were achieved. We benefited modestly from the Federal Reserve’s limited short-term rate reductions in 2024; however, we are not dependent on rates to drive our financial performance. Our goal is to structure our balance sheet such that we can thrive in any type of interest rate environment.

While we celebrate our successes, we also recognize the unique challenges that come with being a community bank. Regulatory requirements, coupled with the general regulatory uncertainty with the new administration, rising competition from larger financial institutions and fintech companies, threats of fraud and cybersecurity risks, and the economic landscape all pose ongoing hurdles. Despite these challenges, Landmark’s dedication to personalized service, meaningful customer connections, deep community relationships, and local economic growth continues to differentiate us in the marketplace. We will navigate these headwinds with the same resilience and adaptability that have defined our bank for years. This allows us to deliver for our customers and, in turn, our shareholders.

Landmark maintains a strong branch bank network across Kansas, with 29 locations in 23 communities. We also now have a loan production office in Kansas City, MO, which opened in February 2024, and we continue to find important ways to add value to this and the surrounding communities. We closed two locations in 2024, the first due to a planned consolidation within Overland Park as a result of the Freedom Bank acquisition, and the second in Kincaid, KS. However, we enjoy the balance and benefits of a branch distribution network in both rural and urban locations. We are proud of our retail banking focus across all of our markets in providing competitive lower-cost, non-public-fund checking, money market and savings accounts with strong customer service, and accessible locations. We continue to invest in a platform of products and services to meet the financial needs of our client base, focusing on digital services and solutions that are simple, intuitive, integrated, and relevant. We have implemented video stations at some of our branches, allowing customers to have meaningful interactions with product experts who may be located in other offices. We also plan to launch a full study of our retail branch network this year to ensure the relevance and effectiveness of each location, with emphasis on refining our service delivery models.

At the heart of our bank’s mission is a deep-rooted commitment to the communities we serve. In the past year, we have expanded our lending programs in all markets, including small businesses, provided mortgage solutions to local families, and invested in community development initiatives. Our team continues to build lasting relationships with our customers, prioritizing personalized service and innovative banking solutions.