I am pleased to report that Landmark Bancorp, Inc. had a record 2012, reporting net earnings of $6.4 million and growth which resulted in total assets equaling $614 million at year end. Earnings per share on a fully diluted basis equaled $2.16 compared to $1.54 the previous year. Return on average assets was 1.01%, up from 0.78% in 2011 and return on average equity was 10.34% compared to 7.98% in the previous year. We maintained our record of continued dividends, paying cash dividends equaling $0.72 per share, which is a five percent increase over the previous year. We once again declared a 5% stock dividend. Both our capital and liquidity positions remain strong, and we look forward to continuing to serve our customers and create value for our shareholders as we move forward into 2013. These record operating results occurred in an economic environment that could be considered slow growth at best. GDP increased 2.2% in 2012 compared to 1.8% in 2011. At the same time, national unemployment remained relatively high at 7.8% in December 2012, compared to 8.5% in December 2011. While these numbers are slowly improving, it does not portray an economy that fosters the confidence necessary for active consumer spending and business expansion. It is believed that confidence within the economy was also negatively impacted by the political uncertainty resulting from the national elections and the fiscal uncertainty resulting from the continued debate in Washington with respect to both taxation and spending policies. Against this backdrop, we are pleased with the fact that we achieved the record financial results obtained this past year. I will outline below our major accomplishments of 2012 and the direction we will take as we go forward in 2013. Interest rates continue at record low levels and long term rates fell further during 2012. Rates at these extremely low levels have certainly stimulated the refinancing of existing residential mortgage loans and have had a positive impact on home sales.Your company originated approximately $223 million in residential home loans in 2012. Sales of these loans to the secondary market resulted in gains on sales of loans totaling $5.7 million which was a record for the company. Our mortgage lenders and processing associates continue to enjoy an excellent reputation for quality service delivered in a professional and timely manner. This reputation allows us to be among the market share leaders in residential mortgage loan origination within all of our primary markets. This lending activity has also allowed us to grow our portfolio of mortgage loans serv- iced for others to a level of $264 million. Growth in this area contributed additional non- interest income of $121,000 in 2012. Our mortgage loan origination activities also contribute to our efforts to grow core transaction deposits through our efforts to capture the entire banking relationship of our mortgage loan customers. Conversely, the prolonged record low interest rates are also creating challenges for the company as we work to manage our net interest margin. Net interest margin for the year of 2012 declined to 3.47% from 3.77% the prior year. Yields on both loans and investments continue to move downward as they either mature or are prepaid and the proceeds are reinvested at lower rates.Additionally, loans with adjustable interest rates continue to adjust downward if they did not have interest rate floors at the time they were originated. In a normal environment you would expect corresponding downward movements in deposit interest costs to offset the decline in asset yields. However, with rates being at record low levels for such a prolonged period of time, the ability to adjust interest costs downward on deposits is limited due to these rates approaching a floor of 0%. To offset these pressures it is imperative that we work to grow our loan portfolio and reallocate funds that are now invested in investment securities to higher yielding loans. We are in a good position to do this as our loan to deposit ratio was 65% at December 31, 2012. Management continues to position the company to benefit from increasing interest rates through the management of our interest rate risk position. We feel this is only prudent given the record low interest rate environment and the amount of monetary stimulus that the Federal Reserve has put in place. Interest rates can only go up – the question is when? 1 PatrickL.Alexander President and Chief Executive Officer TO OUR STOCKHOLDERS, CUSTOMERS, AND FRIENDS