Ledyard Financial withdraws from federal banking plan

Ledyard Financial Group, Inc. (LFGP) announced today that its Board of Directors has voted to not participate in the U.S. Treasury Department s Capital Purchase Program (CPP). Ledyard was approved for funds, but after careful review of Ledyard s core businesses and capital position, the constraints and uncertainties of the CPP, and the overall strength of the Company, the Board of Directors decided to withdraw Ledyard s application.
The CPP is part of the Federal Government s Troubled Asset Relief Program (TARP) approved by Congress to strengthen the banking system by providing healthy banks with additional capital. The Board of Directors as part of the Company s ongoing capital planning activities evaluates its need for capital to support Ledyard s community banking and wealth advisory services businesses. The Board concluded the most effective option available to Ledyard at this time is through the retention of earnings.
As of December 31, 2008, Ledyard was well-capitalized according to regulatory requirements. Its Tier 1 leverage capital ratio was 8.90%, its Tier 1 risk based capital ratio was 13.23% and its total risk based capital ratio was 14.49%. All of these ratios are well in excess of those required to be considered well-capitalized.
Ledyard Financial Group, Inc., headquartered in Hanover, New Hampshire, is the holding company for Ledyard National Bank. Ledyard National Bank, founded in 1991, is a full service community bank offering a broad range of banking, investment, tax and wealth management services in the Dartmouth-Lake Sunapee Region. Ledyard National Bank has eight offices with locations in Hanover, Lebanon, Lyme, New London, and West Lebanon, New Hampshire and in Norwich, Vermont.
Ledyard Financial Group, Inc. shares can be bought and sold through the NASD sanctioned Pink Sheets under the trading symbol LFGP. Shares may be traded through an individual s broker. For more information, please refer to the Investor Relations section of the bank s website at www.ledyardbank.com or contact the Company s Chief Financial Officer, Gregory D. Steverson.
Source: Ledyard. (Hanover, NH March 31, 2009)