PRESS RELEASE

	Contacts:
	Patrick L. Alexander
	President and Chief Executive Officer
	Mark A. Herpich
FOR IMMEDIATE RELEASE	Chief Financial Officer
August 9, 2011	(785) 565-2000

Landmark Bancorp, Inc. Announces Results for the Second Quarter of 2011

Declares Cash Dividend of $0.19 per Share for Landmark Stockholders

(Manhattan, KS, August 9, 2011) Landmark Bancorp, Inc. (Nasdaq: LARK), a bank holding company serving 16 communities across Kansas, reported net earnings of $722,000 ($0.27 per diluted share) for the quarter ended June 30, 2011, compared to a net loss of $1.0 million ($0.40 per diluted share) for the second quarter of 2010. For the six months ended June 30, 2011, the company reported net earnings of $1.7 million ($0.64 per diluted share), compared to net earnings of $96,000 ($0.04 per diluted share) in the first half of 2010. Management will host a conference call to discuss these results on Wednesday, August 10, 2011, at 10:00 a.m. (CT). Investors may participate in the earnings call via telephone by dialing (877) 317-6789. A replay of the call will be available through September 11, 2011, by dialing (877) 344-7529 and using conference number 10001890.

Additionally, our Board of Directors declared a cash dividend of $0.19 per share, to be paid September 6, 2011, to common stockholders of record on August 24, 2011.

Patrick L. Alexander, President and Chief Executive Officer, commented: “We again achieved solid fundamental earnings in the second quarter of 2011, reporting net earnings of $722,000 compared to a net loss of $1.0 million during the second quarter of 2010. During the first half of 2011, we recorded net earnings of $1.7 million, up from $96,000 in the first six months of 2010. The increase in net earnings was principally the result of a reduction in our provision for loan losses this year as we moved aggressively last year to resolve a handful of problem loans and to recognize the associated costs. Landmark has made good progress in improving asset quality and addressing issues within the loan portfolio.  Our ratio of non-performing loans to gross loans continued to decrease to 0.26% at June 30, 2011, compared to 1.99% at June 30, 2010. Loan demand remains soft amid uncertainty in the economy, but our portfolio has leveled off and we are seeing some opportunities in a few of our markets. During the first half of 2011, we invested in initiatives to improve internal processes and bank profitability. These initiatives increased non-interest expense in the first half, but we believe they will begin to show results in the second half of this year. While it is difficult to forecast future events, we believe our strong capital position, loan portfolio management, and solid fundamental earnings position us for future growth in both assets and earnings.”

Second Quarter Financial Highlights

Net interest income was $4.5 million for the quarter ended June 30, 2011, a decline of $37,000, or 0.8%, compared to the second quarter of 2010. Net interest margin, on a tax equivalent basis, increased from 3.79% during the second quarter of 2010 to 3.81% during the second quarter of 2011. Our higher net interest margin was offset by lower average interest-earning asset balances, which declined from $519.5 million during the second quarter of 2010 to $512.4 million during the second quarter of 2011. The provision for loan losses declined from $4.0 million during the second quarter of 2010 to $700,000 during the same period of 2011 due to improvements in our asset quality, as evidenced by our lower levels of non-performing loans and decreased loan charge-offs.

Total non-interest income decreased by $168,000, or 7.4%, to $2.1 million for the second quarter of 2011 from a year earlier primarily due to a decline of $430,000 in gains on sales of loans as the origination volumes of one-to-four family residential real estate loans was lower in the second quarter of 2011 as compared to the second quarter of 2010. Partially offsetting the decline in gains on sales of loans were increases of $154,000 in other non-interest income, $82,000 in fees and service charges and $26,000 in bank owned life insurance income.

We did not record any gains or losses on our investment portfolio during the second quarter of 2011 compared to a credit-related, other-than-temporary impairment loss of $140,000 recognized during the second quarter of 2010 on our portfolio of pooled trust preferred investment securities.

Non-interest expense increased $455,000, or 9.5%, to $5.2 million for the second quarter of 2011 compared to a year earlier. The increase was mainly due to a $560,000 increase in professional fees, primarily related to engaging consultants to help us review internal processes and procedures to identify additional opportunities to improve financial performance. During the second quarter of 2011, we recorded an income tax benefit of $6,000 as compared to an income tax benefit of $1.0 million during the same period of 2010.

First Half Financial Highlights

Net interest income was $8.8 million for the first six months of 2011, a decline of $291,000, or 3.2%, compared to 2010. Net interest margin, on a tax equivalent basis, increased from 3.80% during the first half of 2010 to 3.81% during the same period of 2011. Our average interest-earning assets declined from $521.0 million during the first half of 2010 to $504.6 million during the same period of 2011. The provision for loan losses declined from $4.7 million during the first half of 2010 to $1.1 million during the same period of 2011.

Total non-interest income was $4.1 million for the first six months of 2011, an increase of $104,000, or 2.6%, from the same period in 2010. This improvement resulted from increases of $214,000 in fees and service charges, $166,000 in other non-interest income and $46,000 in bank owned life insurance income. Partially offsetting those increases was a decline of $322,000 in gains on sales of loans.

We did not record any gains or losses on our investment portfolio in the first six months of 2011. During the first six months of 2010, we realized a $563,000 gain on the sale of investments as we sold some of our high-quality, mortgage-backed investment securities at what we believed to be premium pricing in the marketplace. We also recorded a $140,000 credit-related, other-than-temporary impairment loss during the first six months of 2010.

 For the first six months of 2011, non-interest expense increased $478,000, or 5.0%, to $10.1 million as compared to the same period of 2010. The increase in non-interest expense was the result of a $711,000 increase in professional fees, primarily related to engaging consultants to help us review internal processes and procedures to identify additional opportunities to improve financial performance. Among other things offsetting the higher professional fees was a reduction of $147,000 in foreclosure and real estate owned expense, which was elevated in the first six months of 2010 compared to historical levels. During the six months ended June 30, 2011, we recorded income tax expense of $136,000, an effective tax rate of 7.4%, compared to an income tax benefit of $772,000 in the same period of 2010.

Balance Sheet Highlights

Total assets increased to $577.4 million at June 30, 2011, from $561.5 million at December 31, 2010. Stockholders’ equity was $56.3 million (book value of $21.26 per share) at June 30, 2011, compared to $53.8 million (book value of $20.41 per share) at December 31, 2010. The ratio of equity to total assets increased to 9.75% at June 30, 2011, from 9.58% at December 31, 2010, and our ratio of tangible equity to tangible assets increased to 7.36% from 7.08% over the same periods, respectively. Net loans increased to $307.5 million at June 30, 2011, compared to $306.7 million at December 31, 2010. Our investments increased from $175.9 million at December 31, 2010, to $194.0 million at June 30, 2011, as we invested some of our excess liquidity during the first half of 2011, primarily in mortgage-backed investment securities.

At June 30, 2011, the allowance for loan losses was $4.0 million, or 1.29% of gross loans outstanding, compared to $5.0 million, or 1.60% of gross loans outstanding at December 31, 2010.  Loans past due 30-89 days and still accruing interest totaled $1.4 million, or 0.44% of gross loans, at both June 30, 2011 and December 31, 2010. Non-performing loans, which primarily consist of loans greater than 90 days past due, totaled $807,000, or 0.26% of gross loans, at June 30, 2011, down from $4.8 million, or 1.55% of gross loans, at December 31, 2010. During the second quarter of 2011 we had net loan charge-offs of $1.1 million compared to $5.7 million during the same period of 2010. During the first six months of 2011 we had net loan charge-offs of $2.1 compared to $5.8 million during the first half of 2010. In the second quarter of 2011, we charged-off the remaining $1.0 million, of a $4.3 million construction loan, due to additional delays associated with the litigation pursuing payment from the guarantor. The loan had been previously charged down $3.3 million in the second quarter of 2010 due to a significant decline in the appraised value of the collateral securing the loan.

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 21 locations in 16 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) and Wamego, 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.  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; and (x) changes in accounting policies and practices.  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)

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited):

	June 30,			December 31,			June 30,
	2011			2010			2010
ASSETS:
Cash and cash equivalents	$	10,642		$	9,735		$	9,655
Investment securities		193,968			175,872			165,498
Loans, net		307,544			306,668			334,912
Loans held for sale		8,266			12,576			9,544
Premises and equipment, net		14,854			15,225			15,454
Bank owned life insurance		15,866			13,080			12,794
Goodwill		12,894			12,894			12,894
Other intangible assets, net		1,982			2,233			2,236
Other assets		11,429			13,223			13,203
TOTAL ASSETS	$	577,445		$	561,506		$	576,190
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits	$	448,437		$	431,314		$	432,750
Federal Home Loan Bank and other borrowings		64,798			70,301			83,789
Other liabilities		7,918			6,074			5,945
Total liabilities		521,153			507,689			522,484
Stockholders' equity		56,292			53,817			53,706
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	577,445		$	561,506		$	576,190
LOANS (unaudited):
One-to-four family residential real estate	$	79,456		$	79,631		$	85,602
Construction and land		21,969			23,652			29,378
Commercial real estate		94,759			92,124			98,837
Commercial		55,614			57,286			60,434
Agriculture		37,907			38,836			42,754
Municipal		7,515			5,393			5,982
Consumer		13,975			14,385			15,849
Net deferred loan costs and loans in process		354			328			449
Allowance for loan losses		(4,005	)		(4,967	)		(4,373	)
Loans, net	$	307,544		$	306,668		$	334,912
NON-PERFORMING ASSETS (unaudited):
Non-accrual loans	$	807		$	4,817		$	6,726
Accruing loans over 90 days past due		-			-			-
Non-performing investment securities		1,117			1,125			1,382
Real estate owned		2,747			3,194			3,370
Total non-performing assets	$	4,671		$	9,136		$	11,478
RATIOS (unaudited):
Loans 30-89 days delinquent and still accruing to gross loans outstanding		0.44	%		0.44	%		0.53	%
Total non-performing loans to gross loans outstanding		0.26	%		1.55	%		1.99	%
Total non-performing assets to total assets		0.81	%		1.63	%		1.99	%
Allowance for loan losses to gross loans outstanding		1.29	%		1.60	%		1.29	%
Allowance for loan losses to total non-performing loans		496.28	%		103.11	%		65.02	%
Equity to total assets		9.75	%		9.58	%		9.32	%
Tangible equity to tangible assets		7.36	%		7.08	%		6.88	%

Financial Highlights (continued)

(Dollars in thousands, except per share data)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited):

	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Interest income:
Loans	$	4,390		$	4,910		$	8,747		$	9,780
Investment securities and other		1,317			1,309			2,521			2,731
Total interest income		5,707			6,219			11,268			12,511
Interest expense:
Deposits		703			968			1,463			2,007
Borrowed funds		469			679			956			1,364
Total interest expense		1,172			1,647			2,419			3,371
Net interest income		4,535			4,572			8,849			9,140
Provision for loan losses		700			4,000			1,100			4,700
Net interest income after provision for loan losses		3,835			572			7,749			4,440
Non-interest income:
Fees and service charges		1,217			1,135			2,354			2,140
Gains on sales of loans, net		463			893			1,082			1,404
Bank owned life insurance		150			124			294			248
Other		278			124			415			249
Total non-interest income		2,108			2,276			4,145			4,041
Investment securities (losses) gains, net:
Net impairment losses		-			(140	)		-			(140	)
Gains on sales of investment securities		-			-			-			563
Investment securities (losses) gains, net		-			(140	)		-			423
Non-interest expense:
Compensation and benefits		2,297			2,315			4,671			4,639
Occupancy and equipment		720			673			1,428			1,392
Professional fees		746			186			1,031			320
Data processing		179			224			377			432
Amortization of intangibles		182			182			361			361
Federal deposit insurance premiums		117			183			292			362
Advertising		138			119			297			237
Foreclosure and real estate owned expense		39			29			64			211
Other		809			861			1,537			1,626
Total non-interest expense		5,227			4,772			10,058			9,580
Earnings (loss) before income taxes		716			(2,064	)		1,836			(676	)
Income tax (benefit) expense		(6	)		(1,017	)		136			(772	)
Net earnings (loss)	$	722		$	(1,047	)	$	1,700		$	96
Net earnings (loss) per share (1)
Basic	$	0.27		$	(0.40	)	$	0.64		$	0.04
Diluted		0.27			(0.40	)		0.64			0.04
Book value per share (1)	$	21.26		$	20.42		$	21.26		$	20.42
Shares outstanding at end of period (1)		2,648,050			2,629,478			2,648,050			2,629,478
Weighted average common shares outstanding - basic (1)		2,646,160			2,629,478			2,642,484			2,624,159
Weighted average common shares outstanding - diluted (1)		2,646,780			2,629,478			2,643,122			2,626,692
OTHER DATA (unaudited):
Return on average assets (2)		0.50	%		(0.72	)%		0.60	%		0.03	%
Return on average equity (2)		5.22	%		(7.63	)%		6.25	%		0.35	%
Net interest margin (2) (3)		3.81	%		3.79	%		3.81	%		3.80	%

(1) Share and per share values at or for the periods ended June 30, 2010 have been adjusted to give effect to the 5% stock dividend paid during December 2010.

(2) Information for the three and six months ended June 30 is annualized.

(3) Net interest margin is presented on a fully tax equivalent basis, using a 34% federal tax rate.