In previous reports I have mentioned the increasing regulatory burden that is being placed upon the financial services industry as a result of the Dodd Frank Wall Street Reform and Consumer Protection Act. We have begun to see the influx of new proposed regulations resulting from this act as the banking regulatory agencies and the Consumer Financial Protection Bureau absorb the new law and begin to react to it.These regulations will require greater allocation of resources in order to understand the new requirements and to remain compliant. We must continue to grow our asset base if we are to effectively deal with these increasing demands and not have it negatively impact our profitability. At the same time, we are visiting with small community bankers across the state that are very concerned about the impact of these regulations upon their ability to continue to be compliant and profitable. Many of these banks are successful,small, family owned institutions with limited resources and management depth.We expect there will be an increasing number of banks that fit this profile that will begin looking for an exit strategy. Our acquisition of the Wellsville Bank in April of 2012 is an example of this scenario.We will continue to visit with community banks across our markets to explore similar opportunities for expansion. We are looking for institutions that will fit into our banking culture and that can provide immediate value to our shareholders. We expect this to be an area of increasing opportunity in the next few years. Your management team is proud of the success we enjoyed in 2012. The economic environment over the last four years is as challenging as any of us have experienced throughout our careers. However, the strengths of your company have allowed us to negotiate through this difficult environment and emerge financially stronger than when it began. We will not become complacent as we go forward into 2013. We will work to continue to improve our financial performance, our systems, our processes, and our risk management. We continue to focus on our customers and realize that we must meet their needs and requirements if we are to succeed and continue our growth and profitability. We remain dedicated to our customer’s success and the enhancement of shareholder value as we manage the organization and make daily decisions. We will continue our efforts this next year to capitalize upon our strengths and continue to grow the organization. These strengths, that we never take for granted, are easily identified: The elements are in place to allow your company to continue to be successful as we go forward. We look forward to the challenges in 2013 and beyond as we work to grow and thrive in the upcoming year. • Landmark continues to be profitable every year in spite of one of the most difficult economic environments since the Great Depression. During this time period we have continued to pay a nice dividend that has grown by 5 percent annually. • We operate off of a strong capital base of $63 million and are well in excess of all regulatory thresholds for well capitalized banks. • We are located within 17 Kansas communities across the state providing a well diversified economic base well insulated from negative economic impacts that might affect one particular community. • Robust risk management systems that control concentration risk, interest rate risk, liquidity risk and credit risk to very manageable levels. • Our human capital comprised of our associates, management team, and board of directors. This group is experienced, seasoned, and dedicated to running a quality, growing bank that meets customer needs and enhances shareholder value. I always conclude this opportunity to address you by thanking those that make our success possible. Thank you to our loyal shareholders for your support and confidence – your management and board of directors are always aware that we are here to serve you and to enhance shareholder value. I want to also thank our associates and board members who work tirelessly to ensure our success and sustain a top flight, strong, and profitable organization of which we are all proud. Finally, thanks to our customers for your confidence, support, and patronage – we look forward to continuing to grow together. Without all of you, our success would not be possible. Sincerely, Patrick L. Alexander President and Chief Executive Officer 3