PRESS RELEASE

Landmark Bancorp, Inc. Announces Results for the Second Quarter of 2013

Declares Cash Dividend of $0.19 per Share for Landmark Stockholders

(Manhattan, KS, July 30, 2013) – Landmark Bancorp, Inc. (Nasdaq: LARK), a bank holding company serving 17 communities across Kansas, reported net earnings of $1.4 million ($0.47 per diluted share) for the quarter ended June 30, 2013, compared to $1.8 million ($0.62 per diluted share) for the second quarter of 2012. For the six months ended June 30, 2013, Landmark reported net earnings of $2.8 million ($0.96 per diluted share), compared to $3.5 million ($1.21 per diluted share) in the first half of 2012. Management will host a conference call to discuss these results at 10:00 a.m. (CT) on Wednesday, July 31, 2013. Investors may participate via telephone by dialing (888) 317-6016. A replay of the call will be available through September 2, 2013, by dialing (877) 344-7529 and using conference number 10031599.

Additionally, Landmark’s Board of Directors declared a cash dividend of $0.19 per share, to be paid August 26, 2013, to common stockholders of record on August 14, 2013.

Patrick L. Alexander, Chairman and CEO, commented: “We are pleased to report net earnings of $1.4 million for the second quarter of 2013. While net earnings were lower in the second quarter of 2013 than our record earnings in the second quarter of 2012, the comparison was primarily impacted by changes in the mortgage market from the high level of originations in the prior-year quarter as interest rates hit historic lows. This led to a $546,000 decrease in gains on sales of loans and no net gains on investment securities compared with $132,000 of net gains on sales on investment securities in the prior-year period. Landmark’s total deposits increased 3.7% to $500.2 million from December 31, 2012 to June 30, 2013, while net loans increased 1.7% to $321.3 million over the same period. On an annualized basis, return on average assets was 0.90% and return on average equity was 8.98% for the first six months of 2013. Our focus on asset quality continues to keep problem assets at very manageable levels. While the current low interest rate environment and slow-growth economy represent headwinds to improving our net interest margin and growing our loan portfolio, we continue to focus on growing our loan portfolio with quality credit relationships, which we perceive as our top challenge in order to improve earnings. We continue to feel that our risk management practices and capital strength position us well for long term growth as the economy continues to expand and the interest rate environment increases to a more normal level.”

Second Quarter Financial Highlights

Net interest income was $4.4 million for the quarter ended June 30, 2013, a decrease of $268,000, or 5.7%, from the second quarter of 2012. Net interest margin, on a tax equivalent basis, decreased from 3.51% during the second quarter of 2012 to 3.34% during the second quarter of 2013, as we were unable to lower the costs of our interest-bearing liabilities to the extent necessary to offset declines in our yields on assets in this low rate environment. Also contributing to lower net interest income was a decline in our average interest-earning assets from $580.3 million in the second quarter of 2012 to $573.0 million in the second quarter of 2013 as we reduced our investment securities portfolio to coincide with lower average deposit balances. A $300,000 provision for loan losses was recorded in the second quarters of both 2013 and 2012.

Total non-interest income decreased $485,000, or 16.0%, to $2.5 million in the second quarter of 2013 compared to the same period of 2012, primarily the result of a $546,000 decrease in gains on sales of loans as the volume of loans sold in the secondary market was lower in the second quarter of 2013 compared to a year earlier. In addition, an increase in mortgage rates caused us to record a $325,000 valuation allowance against our loans held for sale as of June 30, 2013, recognized in gains on sales of loans, as the estimated fair value of these loans declined. The valuation allowance will be reversed as the loans are sold in the third quarter for their full principal amount. Partially offsetting the decline in gains on sales of loans was an $88,000 increase in fees and service charges as a result of additional fees and service charges received on our deposit accounts and service fee income on one-to-four family residential real estate loans serviced for others.

In the second quarter of 2012, we recognized $132,000 in gains on sales of investment securities after selling approximately $2.5 million of mortgage-backed investment securities, as we capitalized on what we believed to be premium pricing that existed in the markets for these types of securities at the time. No such gains or losses were realized during the second quarter of 2013.

Non-interest expense decreased $267,000, or 5.2%, to $4.9 million for the second quarter of 2013 compared to a year earlier. The decrease in non-interest expense was primarily the result of a $198,000 decline in amortization expense, which was impacted by the reversal of a $212,000 valuation allowance against our mortgage servicing rights portfolio as an increase in mortgage rates increased the estimated fair value of these assets. During the second quarter of 2013, we recorded income tax expense of $417,000, compared to $626,000 during the same period of 2012. Our effective tax rate decreased from 25.6% for the second quarter of 2012 to 22.8% for the second quarter of 2013 as a result of lower earnings before income taxes, while tax-exempt income remained stable between the periods.

First Half Financial Highlights

Net interest income was $8.8 million for the first six months of 2013, a decrease of $378,000, or 4.1%, compared to 2012. Net interest margin, on a tax equivalent basis, decreased from 3.57% during the first half of 2012 to 3.36% during the same period of 2013 as we were unable to lower the costs of interest-bearing liabilities to the extent necessary to offset declines in our yields on assets in this low rate environment. Generally lower asset yields were partially offset by an increase in average interest-earning assets from $557.5 million during the first six months of 2012 to $569.2 million during the same period of 2013, primarily as a result of the acquisition of The Wellsville Bank, which closed on April 1, 2012. A $600,000 provision for loan losses was recorded in the first six months of both 2013 and 2012.

Total non-interest income decreased $523,000, or 9.2%, to $5.2 million in the first six months of 2013 compared to the same period of 2012. The decrease in non-interest income was the result of a $720,000 decrease in gains on sales of loans due to lower volumes of loans sold in the secondary market and a $325,000 valuation allowance recorded against our loans held for sale as of June 30, 2013. Partially offsetting the decline in gains on sales of loans, was a $222,000 increase in fees and service charges as a result of additional fees and service charges received on our deposit accounts and service fee income on one-to-four family residential real estate loans serviced for others.

During the first half of 2012, we recognized $359,000 in gains on sales of investment securities as a result of selling approximately $8.0 million of mortgage-backed investment securities. Partially offsetting the gains on sales of investment securities was a credit-related, other-than-temporary impairment loss of $63,000 recognized during the first quarter of 2012 on one of our investments in a pooled trust preferred security. No such gains or losses were realized during the first half of 2013.

Non-interest expense decreased $115,000, or 1.2%, to $9.7 million for the first six months of 2013 compared to the same period of 2012. The decrease in non-interest expense was primarily the result of a $186,000 decline in amortization expense which was impacted by the reversal of a $212,000 valuation allowance against our mortgage servicing rights. Partially offsetting the lower amortization expense were increases in compensation and benefits, federal deposit insurance premiums and data processing primarily as a result of our acquisition of The Wellsville Bank. During the first six months of 2013, we recorded income tax expense of $812,000, compared to $1.2 million during the same period of 2012. Our effective tax rate decreased from 25.3% for the first half of 2012 to 22.2% for the same period of 2013 as a result of lower earnings before income taxes, while tax-exempt income remained stable between the periods.

Balance Sheet Highlights

Total assets increased 4.5% to $641.9 million at June 30, 2013, from $614.1 million at December 31, 2012. Stockholders’ equity decreased to $62.4 million (book value of $21.26 per share) at June 30, 2013, from $63.3 million (book value of $21.67 per share) at December 31, 2012 as higher interest rates led to a decrease in the fair value of our investment securities resulting in a reduction in accumulated other comprehensive income. The ratio of equity to total assets decreased to 9.72% at June 30, 2013, from 10.31% at December 31, 2012, and our ratio of tangible equity to tangible assets decreased to 7.45% from 8.00% for the same periods. Net loans increased 1.7% to $321.3 million at June 30, 2013, compared to $315.9 million at December 31, 2012. Our investment securities increased 11.5% to $243.7 million at June 30, 2013, from $218.5 million at December 31, 2012, as we invested a portion of the excess liquidity generated by the $17.7 million increase in deposits during the first six months of 2013.

At June 30, 2013, the allowance for loan losses was $4.9 million, or 1.50% of gross loans outstanding, compared to $4.6 million, or 1.43% of gross loans outstanding, at December 31, 2012. Non-performing loans decreased to $6.1 million, or 1.88% of gross loans, at June 30, 2013, from $9.1 million, or 2.84% of gross loans, at December 31, 2012. We recorded net loan charge-offs of $276,000 during the first half of 2013 compared to $35,000 during the same period of 2012. The increase in charge-offs in the first six months of 2013 was principally associated with liquidating the assets securing a previously identified and impaired $1.1 million commercial loan relationship, which was fully reserved as of December 31, 2012. In June 2013, we signed agreements to sell two real estate owned properties totaling $999,000 which closed during July.

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 22 locations in 17 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott, Garden City, Great Bend (2), Hoisington, Junction City, LaCrosse, Lawrence (2), Louisburg, Osage City, Osawatomie, Paola, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.

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 Bancorp, Inc (the “Company”). 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 the Company 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 and national economy; (ii) changes in state and federal laws, regulations and governmental policies concerning our general business; (iii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (iv) changes in interest rates and prepayment rates of our assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi)  the economic impact of armed conflict or terrorist acts involving the United States; (vii) the loss of key executives or employees; (viii) changes in consumer spending; (ix) unexpected outcomes of existing or new litigation; (x) changes in accounting policies and practices; (xi) ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xii) declines in the value of our investment portfolio; (xiii) the ability to raise additional capital; and (xiv) declines in real estate values. 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 Bancorp, Inc. and its business, including additional factors that could materially affect the Company’s financial results, is included in our filings with the Securities and Exchange Commission.

Financial Highlights

(Dollars in thousands, except per share data)

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited):

(1) Tangible equity to tangible assets is a non-GAAP financial ratio calculated as stockholders' equity reduced by goodwill and other intangible assets, net divided by total assets reduced by goodwill and other intangible assets, net.

(2) Per share value at June 30, 2012 has been adjusted to give effect to the 5% stock dividend paid during December 2012.

Financial Highlights (continued)

(Dollars in thousands, except per share data)

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited):