Ledyard Financial Group reports record Q3 2019 earnings

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Ledyard Financial Group reports record Q3 2019 earnings

Mon, 10/21/2019 - 3:59pm -- tim

Vermont Business Magazine Ledyard Financial Group, Inc (ticker symbol LFGP), the holding company for Ledyard National Bank based in Hanover, NH, with a branch in Norwich, VT, today reported record quarterly and year-to-date earnings. Net income for the quarter ended September 30, 2019, was $1,579,252 or $0.50 per share compared to $1,382,986 or $0.44 per share for the same period in 2018, an increase of $196,266 or 14.2%. Net income for the nine months ended September 30, 2019, was $4,450,056 or $1.42 per share compared to $3,932,184 or $1.27 per share for the same period in 2018, an increase of $517,872 or 13.2%. Strength in the Company’s core businesses and the ability to control operating expenses are the primary contributing factors to these record results.

Total revenue for the quarter ended September 30, 2019, was $7,230,476 compared to $6,950,907 for the same period in 2018, for an increase of $279,569 or 4%. Total revenue for the nine months ended September 30, 2019, was $21,506,370 compared to $20,568,326 for the same period in 2018, for an increase of $938,045 or 4.6%. Net interest income for the quarter ended September 30, 2019, was $3,999,663 compared to $3,922,896 for the same period in 2018, for an increase of $76,767 or 2%. Net interest income for the nine months ended September 30, 2019, was $12,120,603 compared to $11,465,499 for the same period in 2018, for an increase of $655,104 or 5.7%. Growth in the Company's net interest income was impacted negatively due to the recent decreases in interest rates and by slower than expected loan growth.

Ledyard Financial Advisors, a division of Ledyard National Bank, reported revenue for the quarter ended September 30, 2019, of $2,750,616 compared to $2,634,689 for the same period in 2018, an increase of $115,927 or 4.4%. Revenue for the nine months ended September 30, 2019, was $8,084,198 compared to $7,888,231 for the same period in 2018, an increase of $195,967 or 2.5%. Assets under management and custody at Ledyard Financial Advisors totaled approximately $1.65 billion as of quarter end September 30, 2019, and $1.58 billion for the same period in 2018.

Non-interest expense for the quarter ended September 30, 2019, was $5,448,700 compared to $5,339,593 for the same period in 2018, an increase of $109,107 or 2%. Non-interest expense for the nine months ended September 30, 2019, was $16,391,740 compared to $16,036,252 for the same period in 2018, an increase of $355,488 or 2.2%.

At September 30, 2019, the Company’s shareholders’ equity stood at $54.7 million compared to $47.1 million for the same period in 2018. All of the Company’s capital ratios are well in excess of the amount required by the Federal Reserve for a bank holding company to be considered “well capitalized.” At September 30, 2019, the Company’s book value per share stood at $16.76 compared to $14.62 for the same period in 2018.

Loans, net of the allowance for loan losses at September 30, 2019, were $309.3 million compared to $306.9 million for the same period last year, an increase of $2.4 million or less than 1%. Total deposits at September 30, 2019, were $385.4 million compared to $412.9 million, a decrease of $27.5 million or 6.7% from the same period last year. Total assets of the Company were $504.4 million compared to $493.8 million at September 30, 2018, an increase of $10.6 million over the prior year. No funds were added to the Allowance for the first nine months of 2019 or 2018. The total Allowance was $5.2 million at September 30, 2019 and 2018. Total non-performing assets were $1.6 million at September 30, 2019, compared to $3.6 million for the same period in 2018.

The Company is pleased to announce that it has been named one of Business NH Magazine’s 2019 Best Companies to Work For. The competition’s judges recognized Ledyard as an organization that proactively focuses on and strives to offer a workplace that truly engages its employees. During the third quarter, the Company was also pleased to welcome Jay Benson to the Board of Directors. Jay is the Chief Executive Officer of Simon Pearce US and brings extensive strategy development and technology implementation skills to the Board. On August 30, 2019, the Company increased its regular quarterly dividend by $0.01 per share to $0.19 per share.

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. Stock activity information can be found in the “Investor Relations” section of Ledyard’s website, which includes a wealth of other information that Ledyard shareholders and prospective shareholders may find of interest.

Ledyard Financial Group, Inc. shares can be bought and sold through the NASD sanctioned “OTC Markets” 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 EVP, COO and CFO, Gregory D. Steverson.

 

Ledyard Financial Group, Inc.

Selected Financial Highlights

(Unaudited)

   

For the Three Months Ended

 

For the Nine Months Ended

   

9/30/2019

 

9/30/2018

 

9/30/2019

 

9/30/2018

Total Interest Income

 

$

4,533,192

 

$

4,300,255

 

$

13,511,102

 

$

12,391,519

Total Interest Expense

 

 

533,530

 

 

377,359

 

 

1,390,498

 

 

926,020

Net Interest Income

 

 

3,999,663

 

 

3,922,896

 

 

12,120,603

 

 

11,465,499

Provision for Loan Losses

 

 

0

 

 

0

 

 

0

 

 

0

Non-interest Income

 

 

3,230,814

 

 

3,028,011

 

 

9,385,767

 

 

9,120,827

Non-interest Expense

 

 

5,448,700

 

 

5,339,593

 

 

16,391,740

 

 

16,036,252

Net Income

 

 

1,579,252

 

 

1,382,986

 

 

4,450,056

 

 

3,932,184

Earnings Per Common Share, basic

 

$

0.50

 

$

0.44

 

$

1.42

 

$

1.27

Earnings Per Common Share, diluted

 

$

0.50

 

$

0.44

 

$

1.42

 

$

1.25

Dividends Per Common Share

 

$

0.19

 

$

0.18

 

$

0.55

 

$

0.52

Efficiency Ratio

 

 

75.35%

 

 

76.82%

 

 

76.22%

 

 

77.97%

Total Assets

 

$

504,400,829

 

$

493,797,042

 

 

 

 

Investments

 

 

153,753,520

 

 

152,629,163

 

 

 

 

Loans Receivable, net

 

 

309,322,903

 

 

306,984,166

 

 

 

 

Total Deposits

 

 

385,355,560

 

 

412,949,960

 

 

 

 

Borrowings & Other Liabilities

 

 

64,372,996

 

 

33,739,316

 

 

 

 

Stockholder’s Equity

 

 

54,672,272

 

 

47,107,767

 

 

 

 

Common Stock Issued

 

 

3,385,418

 

 

3,352,842

 

 

 

 

Treasury Shares

 

 

123,868

 

 

129,922

 

 

 

 

Book Value per Share

 

$

16.76

 

$

14.62

 

 

 

 

Return on Assets

 

 

1.17%

 

 

1.08%

 

 

 

 

Return on Equity

 

 

11.41%

 

 

11.03%

 

 

 

 

Allowance for Loan Losses

 

 

5,213,767

 

 

5,208,113

 

 

 

 

Allowance as a % of Total Loans

 

 

1.66%

 

 

1.67%

 

 

 

 

Forward-Looking Statements: Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, competitive pressure in the banking industry, balance sheet management, net interest margin variations, the effect of changes in equity prices on assets under management, the ability to control costs and expenses, changes in the interest rate environment, financial policies of the United States government, and general economic conditions. The Company disclaims any obligation to update any such factors.

Note: Certain reclassifications have been made to the prior period information to conform to the current period presentation.

Source: HANOVER, N.H.--(BUSINESS WIRE)-- Ledyard Financial Group, Inc 10.21.2019