Landmark Bancorp, Inc. Announces 6.3% Increase in Net Earnings for the Year Ended December 31, 2024, and Fourth Quarter Earnings Per Share of $0.57. Declares Cash Dividend of $0.21 per Share

Manhattan, KS, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.57 for the three months ended December 31, 2024, compared to $0.68 per share in the third quarter of 2024 and $0.46 per share in the same quarter last year. Net income for the fourth quarter totaled $3.3 million, compared to $2.6 million in the fourth quarter of 2023 and $3.9 million in the prior quarter. For the three months ended December 31, 2024, the return on average assets was 0.83%, the return on average equity was 9.54% and the efficiency ratio was 70.0%. For the year ended December 31, 2024, diluted earnings per share totaled $2.26 compared to $2.13 during 2023. Net earnings for 2024 totaled $13.0 million, compared to $12.2 million in 2023, or an increase of 6.3%. For the year ended December 31, 2024, the return on average assets was 0.83%, the return on average equity was 10.01% and the efficiency ratio was 69.1%. 2024 Performance Highlights ●Fourth quarter loan growth totaled $50.5 million or an annualized increase of 20.1% over the prior quarter. ●For the year, gross loans grew $103.7 million or 10.9%. ●Net interest margin improved 21 basis points to 3.51% compared to 3.30% in prior quarter. ●Deposits increased $53.3 million, or 16.6% annualized, from the prior quarter. ●Total borrowings decreased $34.7 million in the fourth quarter. ●A pre-tax loss of $1.0 million was realized in the fourth quarter to reposition a portion of the investment portfolio. ●Credit quality remained good with net charge-offs totaling $219,000 in the fourth quarter. In making this announcement, Abby Wendel, President and Chief Executive Officer of Landmark, commented, “During 2024, we experienced strong loan demand, especially for residential mortgages and commercial real estate loans. In the fourth quarter 2024, we saw strong growth in virtually all loan categories, with total gross loans increasing by $51 million or 20% (annualized). Total deposits also increased in the fourth quarter by more than $53 million, mostly due to seasonal growth in money market and interest checking accounts. The increase in deposits coupled with investment securities sales and maturities this quarter helped fund loan growth and reduce expensive short-term borrowings. For the year, net interest income grew 5.6% over the previous year while in the fourth quarter 2024 our net interest margin improved to 3.51%. Strategic investments in our people and product offerings resulted in higher non-interest expenses, particularly in the fourth quarter. Credit quality remained solid overall.” Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid March 5, 2025, to common stockholders of record as of the close of business on February 19, 2025. On December 16, 2024, the Company issued a 5% stock dividend to common stockholders, representing the 24th consecutive year that a stock dividend has been paid. Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Wednesday, February 5, 2025. Investors may participate via telephone by dialing (833) 470-1428 and using access code 296482. A replay of the call will be available through February 12, 2025, by dialing (866) 813-9403 and using access code 817329. Net Interest Income Net interest income in the fourth quarter of 2024 amounted to $12.4 million representing an increase of $795,000, or 6.9%, compared to the previous quarter. The increase in net interest income was due mainly to lower interest expense on deposits and other borrowed funds. The net interest margin increased to 3.51% during the fourth quarter from 3.30% during the prior quarter. Compared to the previous quarter, interest income on loans increased $22,000 to $16.0 million due to higher average balances but partially offset by lower yields on loans. Average loan balances increased $24.5 million while the average tax-equivalent yield on the loan portfolio decreased 15 basis points to 6.28%. Interest on investment securities declined slightly due to lower balances while partially offset by higher earning rates. Compared to the third quarter 2024, interest on deposits decreased $480,000, or 8.2% mainly due to lower rates, while interest on other borrowed funds declined by $363,000, due to lower rates and balances. The average rate on interest-bearing deposits decreased 23 basis points to 2.25% while the average rate on other borrowed funds decreased 51 basis points to 5.10% in the fourth quarter. Non-Interest Income Non-interest income totaled $3.4 million for the fourth quarter of 2024, a decrease of $882,000 from the previous quarter. The decrease in non-interest income during the fourth quarter of 2024 was primarily due to a $1.0 million loss on the sales of lower yielding investment securities mentioned above, while the third quarter of 2024 did not include any sales of investment securities. Additionally, lower sales of residential mortgages this quarter resulted in a decline of $182,000 in gains on sales of these mortgages. The decline in other non-interest income of $221,000 this quarter compared to the prior quarter resulted from sales of premises, equipment and foreclosed assets that did not re-occur in the current quarter. Partially offsetting those declines was an increase of $722,000 in bank owned life insurance income. Non-Interest Expense During the fourth quarter of 2024, non-interest expense totaled $11.9 million, an increase of $1.3 million compared to the prior quarter. The increase in non-interest expense was primarily due to increases of $470,000 in professional fees and $461,000 in compensation and benefits. The increase in professional fees this quarter was primarily due to higher consulting costs on several initiatives. The increase in compensation and benefits was attributable to an increase in employees and higher incentive compensation costs. Income Tax Expense (Benefit) Landmark recorded an income tax benefit of $886,000 in the fourth quarter of 2024 compared to income tax expense of $867,000 in the prior quarter. The effective tax rate was (37.0%) in the fourth quarter of 2024 compared to 18.1% in the third quarter of 2024. The fourth quarter of 2024 included the recognition of $1.0 million of previously unrecognized tax benefits, which reduced the effective tax rate. Balance Sheet Highlights As of December 31, 2024, gross loans totaled $1.1 billion, an increase of $50.5 million, or 20.1% annualized since September 30, 2024. During the quarter, loan growth was primarily comprised of commercial real estate (growth of $21.1 million), commercial (growth of $10.7 million), agriculture (growth of $8.6 million) and one-to-four family residential real estate (growth of $7.8 million) loans. Investment securities decreased $38.5 million during the fourth quarter of 2024 and included sales of $36.0 million in low-rate U.S. treasury securities offset by purchases of $18.0 million in market rate U.S. treasury securities. Pre-tax unrealized net losses on the investment securities portfolio increased from $13.3 million at September 30, 2024 to $20.9 million at December 31, 2024 mainly due to higher market rates for these securities at year end. Period end deposit balances increased $53.3 million to $1.3 billion at December 31, 2024. The increase in deposits was mainly driven by an increase in money market and checking (increase of $71.3 million) but partially offset by declines in certificates of deposit (decrease of $9.2 million) and non-interest-bearing demand deposits (decrease of $8.6 million). The increase in money market and checking accounts was mainly driven by seasonal growth in public fund deposit account balances. Total borrowings decreased $34.7 million during the fourth quarter 2024. At December 31, 2024, the loan to deposits ratio was 78.2% compared to 77.6% in the prior quarter. Stockholders’ equity decreased to $136.2 million (book value of $23.59 per share) as of December 31, 2024, from $139.7 million (book value of $24.18 per share) as of September 30, 2024. The decrease in stockholders’ equity was due to an increase in accumulated other comprehensive losses as the unrealized net losses on investments securities increased during the fourth quarter. The ratio of equity to total assets decreased to 8.65% on December 31, 2024, from 8.93% on September 30, 2024. The allowance for credit losses totaled $12.8 million, or 1.22% of total gross loans on December 31, 2024, compared to $11.5 million, or 1.15% of total gross loans on September 30, 2024. Net loan charge-offs totaled $219,000 in the fourth quarter of 2024, compared to $9,000 during the third quarter of 2024. A provision for credit losses for loans of $1.5 million was recorded in the fourth quarter of 2024 compared to $650,000 in the third quarter of 2024. Non-performing loans totaled $13.1 million, or 1.25% of gross loans at December 31, 2024 compared to $13.4 million, or 1.34% of gross loans at September 30, 2024. Loans 30-89 days delinquent declined to $6.2 million, or 0.59% of gross loans, as of December 31, 2024, compared to $7.3 million, or 0.73% of gross loans, as of September 30, 2024. About Landmark Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 29 locations in 23 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information. Contact:Mark A. HerpichChief Financial Officer(785) 565-2000 Special Note Concerning Forward-Looking Statements This press release 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 Landmark. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this press release, including forward-looking statements, speak only as of the date they are made, and Landmark undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements. These factors include, among others, the following: (i) the strength of the local, national and international economies, including the effects of changing inflationary pressures and supply chain constraints on such economies; (ii) changes in state and federal laws, regulations and governmental policies concerning banking, securities, consumer protection, insurance, monetary, trade and tax matters, including changes in interpretation or prioritization; (iii) changes in interest rates and prepayment rates of our assets; (iv) increased competition in the financial services sector and the inability to attract new customers, including from non-bank competitors such as credit unions and “fintech” companies; (v) timely development and acceptance of new products and services; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) changes and uncertainty in benchmark interest rates, including the timing of additional rate changes, if any, by the Federal Reserve; (x) the economic effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (xi) the loss of key executives or employees; (xii) changes in consumer spending; (xiii) integration of acquired businesses; (xiv) unexpected outcomes of existing or new litigation; (xv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvi) the economic impact of past and any future terrorist attacks, acts of war, including the current Israeli-Palestinian conflict and the conflict in Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xviii) fluctuations in the value of securities held in our securities portfolio; (xix) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xx) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xxi) the level of non-performing assets on our balance sheets; (xxii) the ability to raise additional capital; (xxiii) cyber-attacks; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; and (xxvi) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission. LANDMARK BANCORP, INC. AND SUBSIDIARIESConsolidated Balance Sheets (unaudited) December 31, September 30, June 30, March 31, December 31, (Dollars in thousands) 2024 2024 2024 2024 2023 Assets Cash and cash equivalents $20,275 $21,211 $23,889 $16,468 $27,101 Interest-bearing deposits at other banks 4,110 4,363 4,881 4,920 4,918 Investment securities available-for-sale, at fair value: U.S. treasury securities 64,458 83,753 89,325 93,683 95,667 Municipal obligations, tax exempt 107,128 112,126 114,047 118,445 120,623 Municipal obligations, taxable 71,715 75,129 74,588 75,371 79,083 Agency mortgage-backed securities 129,211 140,004 142,499 149,777 157,396 Total investment securities available-for-sale 372,512 411,012 420,459 437,276 452,769 Investment securities held-to-maturity 3,672 3,643 3,613 3,584 3,555 Bank stocks, at cost 6,618 7,894 9,647 7,850 8,123 Loans: One-to-four family residential real estate 352,209 344,380 332,090 312,833 302,544 Construction and land 25,328 23,454 30,480 24,823 21,090 Commercial real estate 345,159 324,016 318,850 323,397 320,962 Commercial 192,325 181,652 178,876 181,945 180,942 Agriculture 100,562 91,986 84,523 86,808 89,680 Municipal 7,091 7,098 6,556 5,690 4,507 Consumer 29,679 29,263 29,200 28,544 28,931 Total gross loans 1,052,353 1,001,849 980,575 964,040 948,656 Net deferred loan (fees) costs and loans in process (307) (63) (583) (578) (429)Allowance for credit losses (12,825) (11,544) (10,903) (10,851) (10,608)Loans, net 1,039,221 990,242 969,089 952,611 937,619 Loans held for sale, at fair value 3,420 3,250 2,513 2,697 853 Bank owned life insurance 39,056 39,176 38,826 38,578 38,333 Premises and equipment, net 20,220 20,976 20,986 20,696 19,709 Goodwill 32,377 32,377 32,377 32,377 32,377 Other intangible assets, net 2,578 2,729 2,900 3,071 3,241 Mortgage servicing rights 3,061 3,041 2,997 2,977 3,158 Real estate owned, net 167 428 428 428 928 Other assets 26,855 23,309 28,149 29,684 28,988 Total assets $1,574,142 $1,563,651 $1,560,754 $1,553,217 $1,561,672 Liabilities and Stockholders’ Equity Liabilities: Deposits: Non-interest-bearing demand 351,595 360,188 360,631 364,386 367,103 Money market and checking 636,963 565,629 546,385 583,315 613,613 Savings 145,514 145,825 150,996 154,000 152,381 Certificates of deposit 194,694 203,860 192,470 191,823 183,154 Total deposits 1,328,766 1,275,502 1,250,482 1,293,524 1,316,251 FHLB and other borrowings 53,046 92,050 131,330 74,716 64,662 Subordinated debentures 21,651 21,651 21,651 21,651 21,651 Repurchase agreements 13,808 9,528 8,745 15,895 12,714 Accrued interest and other liabilities 20,656 25,229 20,292 20,760 19,480 Total liabilities 1,437,927 1,423,960 1,432,500 1,426,546 1,434,758 Stockholders’ equity: Common stock 58 55 55 55 55 Additional paid-in capital 95,051 89,532 89,469 89,364 89,208 Retained earnings 56,934 60,549 57,774 55,912 54,282 Treasury stock, at cost - (396) (330) (249) (75)Accumulated other comprehensive loss (15,828) (10,049) (18,714) (18,411) (16,556)Total stockholders’ equity 136,215 139,691 128,254 126,671 126,914 Total liabilities and stockholders’ equity $1,574,142 $1,563,651 $1,560,754 $1,553,217 $1,561,672 LANDMARK BANCORP, INC. AND SUBSIDIARIESConsolidated Statements of Earnings (unaudited) Three months ended, Year ended, December 31, September 30, December 31, December 31, December 31, (Dollars in thousands, except per share amounts) 2024 2024 2023 2024 2023 Interest income: Loans $15,955 $15,933 $14,223 $61,400 $51,753 Investment securities: Taxable 2,210 2,301 2,453 9,298 9,594 Tax-exempt 738 747 761 3,008 3,094 Interest-bearing deposits at banks 49 41 49 193 242 Total interest income 18,952 19,022 17,486 73,899 64,683 Interest expense: Deposits 5,350 5,830 4,879 22,310 15,254 FHLB and other borrowings 737 1,100 1,203 3,886 4,048 Subordinated debentures 389 416 422 1,635 1,590 Repurchase agreements 77 72 96 344 499 Total interest expense 6,553 7,418 6,600 28,175 21,391 Net interest income 12,399 11,604 10,886 45,724 43,292 Provision for credit losses 1,500 500 50 2,300 349 Net interest income after provision for credit losses 10,899 11,104 10,836 43,424 42,943 Non-interest income: Fees and service charges 2,710 2,880 2,763 10,742 10,220 Gains on sales of loans, net 522 704 255 2,386 2,269 Bank owned life insurance 976 254 242 1,723 913 Losses on sales of investment securities, net (1,031) - (1,246) (1,031) (1,246)Other 194 415 240 924 1,074 Total non-interest income 3,371 4,253 2,254 14,744 13,230 Non-interest expense: Compensation and benefits 6,264 5,803 5,756 23,103 22,681 Occupancy and equipment 1,550 1,429 1,429 5,663 5,565 Data processing 452 464 462 1,889 1,940 Amortization of mortgage servicing rights and other intangibles 240 256 437 1,164 1,844 Professional fees 1,043 573 730 2,912 2,452 Valuation allowance on real estate held for sale - - - 1,108 - Other 2,325 2,034 1,748 8,240 7,501 Total non-interest expense 11,874 10,559 10,562 44,079 41,983 Earnings before income taxes 2,396 4,798 2,528 14,089 14,190 Income tax expense (benefit) (886) 867 (111) 1,086 1,954 Net earnings $3,282 $3,931 $2,639 $13,003 $12,236 Net earnings per share (1) Basic $0.57 $0.68 $0.46 $2.26 $2.13 Diluted 0.57 0.68 0.46 2.26 2.13 Dividends per share (1) 0.20 0.20 0.19 0.80 0.76 Shares outstanding at end of period (1) 5,775,198 5,776,282 5,751,475 5,775,198 5,751,475 Weighted average common shares outstanding - basic (1) 5,775,227 5,765,348 5,755,175 5,758,056 5,751,585 Weighted average common shares outstanding - diluted (1) 5,789,764 5,770,514 5,755,175 5,764,282 5,754,840 Tax equivalent net interest income $12,574 $11,777 $11,017 $46,428 $44,040 (1)Share and per share values at or for the periods ended September 30, 2024 and December 31, 2024 have been adjusted to give effect to the 5% stock dividend paid during December 2024. LANDMARK BANCORP, INC. AND SUBSIDIARIESSelect Ratios and Other Data (unaudited) As of or for the three months ended, As of or for the year ended, December 31, September 30, December 31, December 31, December 31, (Dollars in thousands, except per share amounts) 2024 2024 2023 2024 2023 Performance ratios: Return on average assets (1) 0.83% 1.01% 0.67% 0.83% 0.80%Return on average equity (1) 9.54% 11.95% 9.39% 10.01% 10.70%Net interest margin (1)(2) 3.51% 3.30% 3.11% 3.28% 3.17%Effective tax rate -37.0% 18.1% -4.4% 7.7% 13.8%Efficiency ratio (3) 70.0% 66.5% 71.9% 69.1% 71.2%Non-interest income to total income (3) 25.9% 25.5% 24.3% 25.3% 25.1% Average balances: Investment securities $409,648 $428,301 $463,763 $432,928 $486,268 Loans 1,010,153 985,659 934,333 974,293 891,487 Assets 1,568,821 1,562,482 1,555,742 1,558,236 1,535,694 Interest-bearing deposits 944,969 936,218 910,610 938,223 892,373 FHLB and other borrowings 57,507 77,958 84,408 70,226 74,210 Subordinated debentures 21,651 21,651 21,651 21,651 21,651 Repurchase agreements 12,212 10,774 13,785 12,216 18,361 Stockholders’ equity $136,933 $132,271 $111,560 $129,944 $114,339 Average tax equivalent yield/cost (1): Investment securities 3.03% 2.99% 2.86% 3.00% 2.76%Loans 6.28% 6.43% 6.04% 6.30% 5.81%Total interest-bearing assets 5.34% 5.38% 4.97% 5.28% 4.71%Interest-bearing deposits 2.25% 2.48% 2.13% 2.38% 1.71%FHLB and other borrowings 5.10% 5.61% 5.65% 5.53% 5.45%Subordinated debentures 7.15% 7.64% 7.73% 7.55% 7.34%Repurchase agreements 2.51% 2.66% 2.79% 2.82% 2.72%Total interest-bearing liabilities 2.52% 2.82% 2.54% 2.70% 2.13% Capital ratios: Equity to total assets 8.65% 8.93% 8.13% Tangible equity to tangible assets (3) 6.58% 6.84% 5.98% Book value per share $23.59 $24.18 $22.07 Tangible book value per share (3) $17.53 $18.11 $15.87 Rollforward of allowance for credit losses (loans): Beginning balance $11,544 $10,903 $10,970 $10,608 $8,791 Adoption of CECL - - - - 1,523 Charge-offs (246) (153) (442) (659) (850)Recoveries 27 144 80 476 894 Provision for credit losses for loans 1,500 650 - 2,400 250 Ending balance $12,825 $11,544 $10,608 $12,825 $10,608 Allowance for unfunded loan commitments $150 $300 $200 Non-performing assets: Non-accrual loans $13,115 $13,415 $2,391 Accruing loans over 90 days past due - - - Real estate owned 167 428 928 Total non-performing assets $13,282 $13,843 $3,319 Loans 30-89 days delinquent $6,201 $7,301 $1,582 Other ratios: Loans to deposits 78.21% 77.64% 71.23% Loans 30-89 days delinquent and still accruing to gross loans outstanding 0.59% 0.73% 0.17% Total non-performing loans to gross loans outstanding 1.25% 1.34% 0.25% Total non-performing assets to total assets 0.84% 0.89% 0.21% Allowance for credit losses to gross loans outstanding 1.22% 1.15% 1.12% Allowance for credit losses to total non-performing loans 97.79% 86.05% 443.66% Net loan charge-offs to average loans (1) 0.09% 0.00% 0.15% 0.03% -0.01% (1)Information is annualized.(2)Net interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate.(3)Non-GAAP financial measures. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation to the most comparable GAAP equivalent. LANDMARK BANCORP, INC. AND SUBSIDIARIESNon-GAAP Finacials Measures (unaudited) As of or for the three months ended, As of or for the year ended, December 31, September 30, December 31, December 31, December 31, (Dollars in thousands, except per share amounts) 2024 2024 2023 2024 2023 Non-GAAP financial ratio reconciliation: Total non-interest expense $11,874 $10,559 $10,562 $44,079 $41,983 Less: foreclosure and real estate owned expense (13) (23) (40) (47) (61)Less: amortization of other intangibles (151) (171) (174) (663) (765)Less: valuation allowance on real estate held for sale - - - (1,108) - Adjusted non-interest expense (A) 11,710 10,365 10,348 42,261 41,157 Net interest income (B) 12,399 11,604 10,886 45,724 43,292 Non-interest income 3,371 4,253 2,254 14,744 13,230 Less: losses on sales of investment securities, net 1,031 - 1,246 1,031 1,246 Less: gains on sales of premises and equipment and foreclosed assets (62) (273) - (326) (1)Adjusted non-interest income (C) $4,340 $3,980 $3,500 $15,449 $14,475 Efficiency ratio (A/(B+C)) 70.0% 66.5% 71.9% 69.1% 71.2%Non-interest income to total income (C/(B+C)) 25.9% 25.5% 24.3% 25.3% 25.1% Total stockholders’ equity $136,215 $139,691 $126,914 Less: goodwill and other intangible assets (34,955) (35,106) (35,618) Tangible equity (D) $101,260 $104,585 $91,296 Total assets $1,574,142 $1,563,651 $1,561,672 Less: goodwill and other intangible assets (34,955) (35,106) (35,618) Tangible assets (E) $1,539,187 $1,528,545 $1,526,054 Tangible equity to tangible assets (D/E) 6.58% 6.84% 5.98% Shares outstanding at end of period (F) 5,775,198 5,776,282 5,751,475 Tangible book value per share (D/F) $17.53 $18.11 $15.87

Landmark Bancorp, Inc. Announces 6.3% Increase in Net Earnings for the Year Ended December 31, 2024, and Fourth Quarter Earnings Per Share of $0.57. Declares Cash Dividend of $0.21 per Share

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