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LANDMARK BANCORP REPORTS FIRST QUARTER RESULTS; HOLDS ANNUAL MEETING

 LANDMARK BANCORP REPORTS FIRST QUARTER RESULTS;
 HOLDS ANNUAL MEETING
 LA HABRA, Calif., April 21 /PRNewswire/ -- Landmark Bancorp (NASDAQ: LMBC) and subsidiaries today reported net income for the first quarter ended March 31, 1992, of $95,000, or $0.05 a share, compared with $477,000, or $0.32 a share, in the first quarter of 1991.
 Total assets grew 24 percent to $221,976,000, compared to first quarter of 1991.
 Announcing the first-quarter results Craig Collette, president and chief executive officer, said that operating expenses had risen by $970,000, or 45 percent, in the 1992 quarter, compared with last year's quarter without a corresponding increase in revenues.
 "The increase in operating expenses reflects the addition of two new bank branches plus costs associated with our investigation of a series of irregular loans and unauthorized advances discovered and reported in December 1991," he said.
 Landmark Bancorp acquired Founders National Bank, Brea, Calif., and the Placentia, Calif., branch of The Bank of California in December 1991 and merged them into Landmark Bank. The acquisitions increased the number of bank branches to five.
 "The major expenses associated with integrating these new branches into the Landmark Bank system were borne in the first quarter," Collette said. "That job will be completed in the second quarter, and we expect that efficiencies and economies of scale we'll achieve in the integrated system will make the branches more productive in the remainder of the year," he said.
 Collette said that a specific allocation of $3.2 million to the allowance for credit costs, resulting from the investigation of unauthorized cash advances and irregular loans made by one loan officer, had offset potentially record-breaking earnings in 1991. "Through the first three quarters of 1991, Landmark Bancorp continued to be one of the top-performing bank holding companies in the country," he said. "Our nine-months revenue and net income were very close to 1990's record-setting pace."
 The investigation of irregular loan practices involved the bank's independent auditors, a consulting firm specializing in bank audits and fraud investigations, a firm of private investigators, a consulting team of retired banking executives and law enforcement agencies. "This was a costly, though necessary, project," Collette said, "and the costs are being borne in the first two quarters of 1992, with significant impact on our earnings.
 "But the result has been the development and implementation of additional controls that we believe make our safeguards against fraud at least as effective as those of any other bank in the nation," he said. "We expect that they will eliminate unauthorized advances and uncover any irregular lending activities quickly in the future," he said.
 "For the first two quarters of 1992, management's top priorities have been to bring the unauthorized loan situation to a conclusion, implement the additional lending controls and complete the integration of the two recently acquired branches into the system," he said.
 "We expect that the second quarter of 1992 also will produce lower earnings than last year's quarter, but in the third quarter we expect to resume the earnings that has been characteristic of Landmark Bancorp for the past 13 years," Collette said.
 Landmark Bancorp's principal subsidiary, Landmark Bank, is headquartered in La Habra. A leading independent bank in Orange County, Landmark has branches in La Habra, Irvine, Anaheim, Placentia and Brea, Calif.
 LANDMARK BANCORP
 Consolidated Statements of Income
 (Dollars in Thousands, Except Per Share Data)
 Three Months Ended March 31,
 1992 1991
 Interest income 4,461 4,325
 Interest expense 1,632 1,891
 Net interest income 2,829 2,434
 Provision for credit losses 250 100
 Net interest income after
 provision for credit losses 2,579 2,334
 Other operating income 682 575
 Other operating expenses 3,123 2,153
 Income before taxes 138 756
 Provision for income taxes 43 279
 Net income $95 $477
 Income per share $.05 $.32
 Weighted average common
 shares outstanding 1,774,038 1,500,460
 -0- 4/21/92
 /CONTACT: Kevin P. Hanifin, CFO of Landmark Bancorp, 213-694-6537 or 714-739-1511; or Tom Wick, John Muir or Bill Coffin of The Financial Relations Board, 818-783-2400, for Landmark Bancorp/
 (LMBC) CO: Landmark Bancorp ST: California IN: FIN SU: ERN


EH-JL -- LA011 -- 0483 04/21/92 10:10 EDT
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Date:Apr 21, 1992
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