Ledyard reports 4Q and 2017 earnings

Vermont Business Magazine Ledyard Financial Group, Inc(ticker symbol LFGP), the holding company for Ledyard National Bank with an office in Vermont, has reported earnings for 2017 of $3,845,238, a 6.9% decrease over the prior year. As a result of theTax Cuts and Jobs Act of 2017that was enacted into law on December 22, 2017, the Company revalued its net deferred tax asset position to reflect the reduction in its federal corporate tax rate from 34% to 21%. This revaluation resulted in an increase to income tax expense of approximately $503,800. Pre-tax income for 2017 was $5,208,013 or a 1.4% improvement over the prior year. This improvement was due to strong equity markets, robust new business activity at Ledyard Financial Advisors, and an improvement in net interest margin.

”The impact of this new law on Ledyard doesn’t detract from the strong year our core businesses had in 2017 as evidenced by the growth in our pre-tax income and our investment in the Concord, New Hampshire market. We expect the decrease in the tax rate to contribute positively to our bottom line results in future years”, stated Kathryn Underwood, President and CEO of Ledyard Financial Group.

Net income for the quarter ended December 31, 2017, was $592,465 or $0.19 per share compared to $987,221 or $0.32 per share for the same period in 2016, a decrease of $394,755 or 40%, due to the revaluation of the Company’s net deferred tax asset position in connection with theTax Cuts and Job Acts of 2017. Net income for the twelve months ended December 31, 2017, was $3,845,238 or $1.25 per share compared to $4,128,419 or $1.34 per share for the same period in 2016.

Total revenue for the quarter ended December 31, 2017, was $6,520,551 compared to $5,966,718 for the same period in 2016, for an increase of $553,833 or 9.3%. Total revenue for the twelve months ended December 31, 2017, was $25,275,053 compared to $23,535,879 for the same period in 2016, an increase of $1,739,174 or 7.4%. Net interest income for the quarter ended December 31, 2017, was $3,696,853 compared to $3,422,586 for the same period in 2016, for an increase of $274,268 or 8%. Net interest income for the twelve months ended December 31, 2017, was $14,480,765 compared to $13,256,991 for the same period in 2016, for an increase of $1,223,773 or 9.2%.

No funds were added to the Allowance during 2017 or during 2016. Net charge-offs for the twelve months ended December 31, 2017, were $190,136 compared to $6,588 for the comparable period in 2016. The total Allowance was $5.5 million at December 31, 2017, compared to $5.7 million at December 31, 2016. Total non-performing assets were $2.07 million at December 31, 2017, compared to $2.67 million for the same period in 2016.

Ledyard Financial Advisors, a division of Ledyard National Bank, reported revenue for the quarter ended December 31, 2017, of $2,501,105 compared to $2,103,396 for the same period in 2016, an increase of $397,709 or 18.9%. Revenue for the twelve months ended December 31, 2017, was $9,437,325 compared to $8,314,869 for the same period in 2016, for an increase of $1,122,457 or 13.5%. Assets under management and custody at Ledyard Financial Advisors totaled approximately $1.5 billion at December 31, 2017, an increase of approximately $356 million over the prior year.

Non-interest expense for the quarter ended December 31, 2017, was $5,241,589 compared to $4,756,526 for the same period in 2016, an increase of $485,063 or 10.2%. Non-interest expense for the twelve months ended December 31, 2017, was $20,067,039 compared to $18,400,229 for the same period in 2016, for an increase of $1,666,810 or 9.1%. The primary contributor to the increase in non-interest expense was the increased investment in people, facilities, and marketing as a result of the Company’s entry into the Concord, New Hampshire market.

At December 31, 2017, the Company’s shareholders’ equity stood at $46.6 million, compared to $42.9 million for the same period in 2016. 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 December 31, 2017, the Company’s book value per share stood at $15.07 compared to $14.03 for the same period in 2016.

Loans, net of the allowance for loan losses at December 31, 2017, were $295.1 million, compared to $289.2 million for the same period last year, for an increase of $5.9 million. Total deposits at December 31, 2017, were $401.5 million, as compared to $401.9 million from the same period last year. Total assets of the Company were $476.3 million at December 31, 2017, an increase of $1.2 million over the prior year.

During 2017, the Company paid $0.65 per share in dividends, compared to $0.64 per share for 2016. On January 26, 2018, the Company announced a regular quarterly dividend of $0.17 per share to be paid on March 2, 2018, to shareholders of record as of February 9, 2018.

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 the bank’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 atwww.ledyardbank.comor 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 Twelve Months Ended
12/31/2017 12/31/2016 12/31/2017 12/31/2016
Total Interest Income $ 3,991,542 $ 3,706,817 $ 15,744,614 $ 14,379,903
Total Interest Expense 294,688 284,231 1,263,849 1,122,912
Net Interest Income 3,696,853 3,422,586 14,480,765 13,256,991
Provision for Loan Losses 0 0 0 0
Non-interest Income 2,823,698 2,544,132 10,794,288 10,278,888
Non-interest Expense 5,241,589 4,756,526 20,067,039 18,400,229
Pre-tax Income 1,278,962 1,210,192 5,208,013 5,136,650
Tax Expense before Tax Reform 182,711 229,971 859,056 1,007,232
Tax Expense due to Tax Reform 503,786 0 503,786 0
Net Income 592,465 987,221 3,845,238 4,128,419
Earnings Per Common Share, basic $ 0.19 $ 0.32 $ 1.25 $ 1.34
Earnings Per Common Share, diluted $ 0.19 $ 0.32 $ 1.23 $ 1.32
Dividends Per Common Share $ 0.17 $ 0.16 $ 0.65 $ 0.64

As of
12/31/2017

As of
12/31/2016

Total Assets $ 476,263,389 $ 475,052,410
Investments 144,408,678 154,821,762
Loans Receivable, net 295,098,837 289,166,831
Total Deposits 401,539,073 401,899,842
FHLB Advances & Other Borrowings 23,971,707 27,414,676
Stockholder’s Equity 46,642,546 42,889,490
Common Stock Issued 3,449,769 3,419,196
Treasury Shares 130,847 137,313
Tangible Book Value per Share $ 14.05 $ 13.07
Total Risk Based Capital Ratio 16.41 % 15.65 %
Non-performing Assets $ 2,071,679 $ 2,670,897
Non-performing Assets as a % of Total Assets 0.44 % 0.56 %
Allowance for Loan Losses $ 5,509,514 $ 5,699,651
Allowance as a % of Total Loans 1.83 % 1.93 %

Source:HANOVER, N.H.--(BUSINESS WIRE)--Ledyard Financial Group, Inc 2.26.2018