Landmark Bancorp, Inc.

Business structure

Landmark Bancorp, Inc. is a Delaware corporation operating as a financial holding company. It owns two wholly owned subsidiaries: Landmark National Bank (the Bank) and Landmark Risk Management, Inc. (the Captive). The Bank provides traditional banking services to individuals and businesses. The Captive provides property and casualty insurance coverage to the Company and the Bank.

Headquarters and footprint

• Headquartered in Manhattan, Kansas.
• Main corporate office: 701 Poyntz Avenue, Manhattan, Kansas 66502.
• As of December 31, 2025, the company operated 29 branch offices in 23 Kansas communities.
• Opened a loan production office in Kansas City, Missouri in February 2024.

Markets and offerings

Primary markets include central, eastern, southeastern, and southwestern Kansas. Bank products and services include:

• Lending: one-to-four family residential real estate, construction and land, commercial real estate (CRE), commercial (non-CRE), agriculture, municipal, and consumer loans.
• Deposit products: demand/checking, savings, money market, and time deposits (certificates of deposit), plus treasury management services.
• Specialty programs: Small Business Administration (SBA) lending (preferred lender) and Insured Cash Sweep (ICS) for FDIC insurance coverage overflow.

The Bank emphasizes diversified core deposits (checking, savings, money market) and uses non-core/brokered deposits as needed.

Organizational and regulatory structure

• The Bank is a national bank regulated by the OCC and FDIC; it is a member of the Federal Reserve System and the Federal Home Loan Bank of Topeka.
• The Company is a bank holding company that elected financial holding company status in 2017 and is regulated by the Federal Reserve. The Bank must maintain satisfactory CRA ratings to retain that status.
• Landmark Risk Management, Inc. is Nevada-based and regulated by the Nevada Division of Insurance.

Employees

• Bank employees: 283 total (273 full-time equivalent) as of December 31, 2025.
• The holding company has no employees.

Size and assets (as of December 31, 2025)

• Consolidated total assets: approximately $1.6 billion.
• Consolidated total loans (gross): $1,111.7 million; net loans: $1,098.4 million.
• Non-performing loans: $9.994 million (0.90% of the loan portfolio).
• Non-performing assets (non-performing loans plus real estate owned): about $10.0 million (0.62% of total assets).
• Allowance for credit losses (ACL): $12.458 million (1.12% of total gross loans; 124.65% of non-performing loans).

Deposits and funding

• Average total deposits (2025): approximately $1.340 billion.
• Core deposits: ~92.2% of total deposits; non-core/brokered deposits: $108.9 million (7.8%).
• Uninsured deposits (primarily above FDIC limits): approximately $246.4 million (17.7% of total deposits) as of December 31, 2025.
• Average deposit cost (weighted): 2.14% for 2025.
• The Bank is not subject to NSFR/LCR requirements; Basel III concepts inform liquidity management.

Profitability and returns (selected metrics, 2025)

• Return on assets (ROA): 1.17%.
• Return on equity (ROE): 12.68%.
• Equity to total assets: 10.00%.
• Dividend payout ratio: 26.06% (2025).
• Net interest margin: approximately 3.86%.

Loan portfolio concentration and composition (as of December 31, 2025)

• One-to-four family residential real estate: $375.3 million (33.8% of total loans).
• Construction and land: $20.5 million (1.8%).
• Commercial real estate (CRE) loans: $394.3 million (35.5%).
• Commercial loans: $178.2 million (16.0%).
• Agriculture loans: $102.8 million (9.3%).
• Municipal loans: $6.9 million (0.6%).
• Consumer loans: $33.7 million (3.0%).
• Total gross loans: $1,111.7 million; net deferred costs and loans in process: $(0.872) million.

Real estate-related lending (CRE, construction, and residential real estate) represents roughly 71% of total loans.

Credit risk management

• Focus areas include owner-occupied CRE, diversified loan relationships, SBA lending, and agricultural lending.
• CRE and real estate concentrations are monitored; loan committees handle credit decisions, with a corporate loan committee for larger exposures.
• The ACL is actively managed; the 2025 provision for credit losses was $2.350 million.
• The Bank participates in FDIC insurance programs and operates within Basel III capital and liquidity expectations. As of December 31, 2025, it was classified as “well-capitalized” under OCC regulations.

Cybersecurity, privacy, and related controls

• The Company maintains an information security program with layered safeguards, third-party risk management, and ongoing employee training.
• The Board and enterprise risk management oversee cybersecurity risk. An immaterial employee fraud incident is noted in Note 24 of the 2025 Form 10-K and did not have a material impact.
• Governance and controls cover data privacy, third-party risk, and incident response.

Growth strategy

• Growth priorities include expanding the branch network, pursuing acquisition opportunities, and strengthening core deposit relationships.
• The company is diversified across Kansas communities and expanded into Missouri with a loan production office in Kansas City.

Regulatory and other considerations

• The Basel III capital framework applies, including a 2.5% capital conservation buffer. The Company has not elected the Community Bank Leverage Ratio (CBLR) framework.
• Potential changes to CRA rules could affect CRA evaluations.
• The Bank is subject to OCC and FDIC examinations; the Company is subject to Federal Reserve oversight.