LFGP Ledyard Financial Group Inc (QX)

Ledyard Financial Group, Inc. (ticker symbol LFGP), the holding company for Ledyard National Bank, today reported its financial results for the third quarter of 2014. Net income for the quarter ended September 30, 2014, was $1,069,538 or $1.05 per share compared to $770,834 or $0.76 per share for the same period in 2013, an increase of $298,704 or 38.8%. Net income for the nine months ended September 30, 2014 was $2,995,493, or $2.95 per share compared to $2,324,331 or $2.30 per share for the same period in 2013, an increase of $671,162 or 28.9%. The increase in net income for the quarter and first nine months when compared to the prior year is due to an increase in lending activity and an increase in revenue from Ledyard Financial Advisors.

Total revenue for the quarter ended September 30, 2014, was $5,756,227 compared to $5,106,739 for the same period in 2013, for an increase of $649,488 or 12.7%. Total revenue for the nine months ended September 30, 2014, was $16,948,236 compared to $15,369,624 for the same period in 2013, an increase of $1,578,612 or 10.3%. Net interest income for the quarter ended September 30, 2014, was $3,199,911 compared to $2,848,190 for the same period in 2013, for an increase of $351,721 or 12.4%. Net interest income for the nine months ended September 30, 2014, was $9,495,206 compared to $8,469,473 for the same period in 2013, for an increase of $1,025,733 or 12.1%.

No funds were added to the Allowance during the first nine months of 2014 or during the same period in 2013. Net charge offs for the nine months ending September 30, 2014, were $69,062, compared to net recoveries of $59,424 for the comparable period in 2013. The total Allowance was $5.49 million at September 30, 2014, compared to $5.72 million for the same period in 2013. Total non-performing assets were $2.31 million at September 30, 2014, compared to $2.27 million for the same period in 2013.

Ledyard Financial Advisors, a division of Ledyard National Bank, reported revenue for the quarter ended September 30, 2014, of $2,077,096 compared to $1,891,221 for the same period in 2013, an increase of $185,875 or 9.8%. Revenue for the nine months ended September 30, 2014, was $6,131,693, compared to $5,634,317 for the same period in 2013, for an increase of $497,376 or 8.8%. Assets under management and custody at Ledyard Financial Advisors totaled $1.1 billion as of quarter end, an increase of $89 million over the same period in 2013.

Non-interest expense for the quarter ended September 30, 2014, was $4,308,390 compared to $4,034,593 for the same period in 2013, for an increase of $273,797 or 6.8%. Non-interest expense for the nine months ended September 30, 2014, was $13,041,343 compared to $12,285,754 for the same period in 2013, for an increase of $755,589 or 6.2%.

At September 30, 2014, the Company’s shareholders’ equity stood at $41.1 million, compared to $37.9 million for the same period in 2013. 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, 2014, the Company’s book value per share stood at $40.42 compared to $37.44 for the same period in 2013.

Loans, net of the allowance for loan losses at September 30, 2014, were $269.3 million, compared to $221.3 million for the same period last year, for an increase of $47.9 million or 21.7%. Total deposits at September 30, 2014 were $351.5 million, an increase of $19.9 million from the same period last year. Total assets of the Company were $425.7 million at September 30, 2014, an increase of $27.2 million over the prior year. Advances from the Federal Home Loan Bank increased by $4 million from $12.5 million at September 30, 2013, to $16.5 million at September 30, 2014.

Due to its strong financial position, the Company has been able to maintain or increase its quarterly dividend since first declaring a dividend in 1995. On October 24, 2014, the Company announced a quarterly dividend of $0.45 per common share. The dividend is payable December 5, 2014 to shareholders of record as of November 8, 2014. This dividend payment will bring the total payout for 2014 to $1.72 per common share which compares to the payout for 2013 of $1.44 per common 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 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. Stock activity information can be found in the “Investor Relations” section of our 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 Chief Financial Officer, Gregory D. Steverson.

       

Ledyard Financial Group, Inc.

Selected Financial Highlights

(Unaudited)

                    For the Three Months Ended     For the Nine months Ended       09/30/2014     09/30/2013     09/30/2014     09/30/2013 Total Interest Income     $ 3,430,717       $ 3,052,999       $ 10,140,934     $ 9,121,748 Total Interest Expense       230,806         204,809         645,728       652,275 Net Interest Income       3,199,911         2,848,190         9,495,206       8,469,473 Provision for Loan Losses       0         0         0       0 Non-interest Income       2,556,316         2,258,549         7,453,030       6,900,151 Non-interest Expense       4,308,390         4,034,593         13,041,343       12,285,754 Net Income       1,069,538         770,834         2,995,493       2,324,331 Earnings Per Common Share, basic     $ 1.05       $ 0.76       $ 2.95     $ 2.30 Earnings Per Common Share, diluted     $ 1.03       $ 0.75       $ 2.88     $ 2.25 Dividends Per Common Share     $ 0.45       $ 0.37       $ 1.27     $ 1.07                                 As of

09/30/2014

    As of

09/30/2013

            Total Assets     $ 425,694,895       $ 398,535,049               Investments       126,343,549         147,312,884               Loans Receivable, net       269,282,404         221,333,973               Total Deposits       351,467,438         331,578,182               FHLB Advances, Other Borrowings & Liabilities       33,117,620         29,078,112               Stockholder’s Equity       41,109,837         37,878,755               Common Stock Outstanding       1,048,253         1,042,691               Treasury Shares       31,170         30,937               Tangible Book Value per Share     $ 40.42       $ 37.44               Total Risk Based Capital Ratio       15.32 %       16.74 %             Non-performing Assets     $ 2,308,041       $ 2,270,936               Non-performing Assets as a % of Total Assets       0.54 %       0.57 %             Allowance for Loan Losses     $ 5,494,608       $ 5,715,124               Allowance as a % of Total Loans       2.00 %       2.52 %                    

Ledyard Financial Group, Inc.Gregory D. Steverson, 603-640-2666Executive Vice President & Chief Financial Officergreg.steverson@ledyardbank.comTicker Symbol: LFGP