October 13, 2011

Dear Shareholder:

Landmark Bancorp, Inc. achieved record earnings for the nine month period ended September 30, 2011. While assets increased 10.2%, net income after tax increased 12.36% to $1.35 million compared to $1.20 million for the same period in 2010. Earnings per share improved to 79 cents per share compared to 73 cents during the same period of 2010. At September 30, 2011 the net interest margin expanded to 4.00% compared to 3.83% at September 30, 2010. Other noninterest income grew 20% to $611 thousand compared to $509 thousand during the same period last year. Return on average assets was .86% compared to .83% for the same period last year. Return on average equity improved to 9.29% compared to 9.21% during the same period in 2010.

Assets at September 30, 2011 increased 10.2% to $226.3 million compared to $205.4 million the prior year. Net loans at September 30, 2011 were up 21.7% to $172.8 million and investments declined 26.0% to $36.0 million compared to the same period in 2010. The allowance for loan and lease losses increased 24.23% at September 30, 2011 to $1.91 million compared to the same date last year. The cash from maturing investments was used to fund loan growth. Deposits at September 30, 2011 were $183.6 million, an increase of 11.8%, compared to the same period of 2010 and there continues to be significant improvement in the composition of the deposit portfolio. Noninterest bearing (checking account) balances continue on a path of substantial growth and reached $29.2 million, up more than 28% compared to September 30, 2010.

Stockholders' equity grew 13.45% to $20.6 million at September 30, 2011 compared to $18.2 million for the same period in 2010. Book value increased 8.3% to $11.90 per share. Landmark's Tier 1 leverage ratio was 9.12%. This ratio is an indicator of bank strength. Banks are considered to be well capitalized at 6%.

As you may recall Landmark Community Bank established a Government Banking Division staffed by two highly experienced government banking officers in the second quarter. The impact of this division is already being realized as the bank saw our tax rate fall to 20% for the month of September compared to 29% during the same period last year. Landmark is positioned to serve municipalities and school districts in Northeastern Pennsylvania. This client base will provide a stable source of deposits and tax free loans which will further enhance both the growth and the profitability of the bank.

Landmark also issued the first Landmark Platinum and Landmark Business credit cards during the month of September. We believe this strategic move will give the bank opportunities to increase both interest and noninterest income over both the near and long term.

On October 13th, 2011 the Board of Directors declared a dividend of 5 cents per share, payable on November 4th, 2011, to shareholders of record on October 27th, 2011.

Landmark Community Bank has maintained a FIVE STAR, Superior rating from BauerFinancial, Inc. which is one of the leading independent bank rating services.

Our staff, Board of Directors and Advisory Board members are committed to building an exceptional institution focused on our clients, shareholders, employees and communities.

We appreciate your continued support and confidence in Landmark Community Bank and we urge you to continue to refer your friends, neighbors and business associates to your bank.

Very Truly Yours,

Daniel R. Nulton

President & CEO