February 5, 2010

Dear Shareholder:

2009 was a year of great accomplishments for Landmark Bancorp, Inc. First and foremost, in spite of an increase of $187 thousand in FDIC insurance expense related to the many bank failures across our country, Landmark’s  net income after tax grew more than 56% to $1.08 million compared to $690 thousand for the full year 2008. Earnings per share, for the fourth quarter of 2009, were up 90% to nineteen cents compared to ten cents during the fourth quarter of 2008. Full year earnings per share were up nearly 48% to sixty five cents compared to forty four cents for the full year 2008. Return on equity was up more than 37% to 6.75% for 2009 compared to 4.92% during 2008 and reached 7.5% for the final quarter of 2009. Book value per share increased to $10.12 at year end 2009 compared to $9.38 at year end 2008.

Average assets grew nearly 9% to $177.7 million compared to $163.2 million during the full year of 2008 and reached $186.4 million by year end 2009. During 2009 the average balance of the loan portfolio grew to $130.8 million compared to $126.0 million during 2008, an increase of 3.8%, and was $134.5 million at year end. The deposit portfolio grew 7.6% to an average of $137.4 million during 2009 and ended the year at $148.7 million. The growth of non-interest bearing deposits, or checking accounts, has long been a priority for Landmark. Those balances expanded by more than 17% during 2009, averaging $18.1 million for the full year, compared to $15.5 million in 2008. These interest-free funds are critically important to the future profitability of the bank. Year end capital balances increased by 7.9% primarily due to the profits generated by the bank.

In June of 2009 we established Landmark Mortgage Services, a division of Landmark Community Bank, in order to provide our clients with a trusted source to facilitate the construction, purchase and refinancing of residential properties in our market area. We expect that this new source of non-interest income will increase overall profitability of the company while providing clients the products and service they deserve.

In November, Landmark executed an agreement to purchase a bank branch at 383 South Poplar Street, Hazleton which had been closed by Bank of America. The real estate purchase occurred on December 10, 2009. After securing regulatory approval, Landmark’s management team was able to give the branch an “Extreme Makeover”, which truly transformed the branch, hire and train the new staff and open the new Landmark Community Bank branch within 31 days, which included two major holidays!  Our new location opened on January 11, 2010 providing Landmark a great neighborhood branch in the heights section of Hazleton and offers exceptional opportunities to continue to grow by serving consumer, business, municipal and professional clients throughout the Greater Hazleton area

Landmark Community Bank’s staff, management, Board of Directors and Advisory Board members are committed to building a strong community bank and providing unparalleled service to our clients, as well as, delivering long term value to our shareholders. We appreciate your support and we encourage you to continue to use Landmark Community Bank for all your banking needs and request that you refer prospective clients to your bank.

Very Truly Yours,

Daniel R. Nulton

President and Chief Executive Officer