LANDMARK BANCORP, INC. AND SUBSIDIARY  Consolidated Statements of Earnings  (Dollars in thousands, except per share amounts) 2012 2011 2010 Loans: Taxable  16,345 $ 17,108 $ 18,974 $ Tax-exempt 378 333 272 Investment securities: Taxable  2,940 2,748 2,653 Tax-exempt 2,389 2,397 2,452 Total interest income 22,052 22,586 24,351 Interest expense: Deposits 2,149 2,760 3,786 Borrowings 1,761 1,899 2,519 Total interest expense 3,910 4,659 6,305 Net interest income 18,142 17,927 18,046 Provision for loan losses 1,900 2,000 5,900 Net interest income after provision for loan losses 16,242 15,927 12,146 Non-interest income: Fees and service charges 5,271 4,886 4,706 Gains on sales of loans, net 5,680 2,775 3,446 Bank owned life insurance 540 594 506 Other 529 646 482 Total non-interest income 12,020 8,901 9,140 Investment securities: Net impairment losses (63) (72) (391) Gains on sales of investment securities, net 486 186 563 Investment securities gains, net 423 114 172 Non-interest expense: Compensation and benefits 9,788 9,432 9,514 Occupancy and equipment 2,990 2,874 2,809 Professional fees 1,108 1,434 831 Amortization of intangibles 1,178 778 790 Data processing 842 753 879 Foreclosure and real estate owned expense 332 652 763 Advertising 443 554 617 Federal deposit insurance premiums 364 465 723 Other 3,459 3,012 3,104 Total non-interest expense 20,504 19,954 20,030 Earnings before income taxes 8,181 4,988 1,428 Income tax expense (benefit)  1,814 504 (615) Net earnings  6,367 $ 4,484 $ 2,043 $ 2.18 $ 1.54 $ 0.70 $ 2.16 $ 1.54 $ 0.70 $ Years ended December 31, Interest income: Basic (1) Diluted (1) Earnings per share: (1) All per share amounts have been adjusted to give effect to the 5% stock dividends paid during December 2012, 2011 and 2010. See accompanying notes to consolidated financial statements. 64 