Ledyard Financial Group Reports Q1 2024 Earnings and Declares Quarterly Dividend
Ledyard Financial Group, Inc. (OTCQX: LFGP) reported Q1 2024 earnings with net income of $463 thousand, an increase from Q4 2023 but a decrease from Q1 2023. Total assets grew by 4.6% from the prior quarter and 19.8% from a year ago. Loan balances increased by 9.2% from the prior quarter and 25.8% from a year ago. A regular quarterly dividend of $0.21 per share was declared.
- Net income for Q1 2024 was $463 thousand, up $347 thousand over Q4 2023.
- Total assets grew by $39.6 million or 4.6% from the prior quarter and $147.6 million or 19.8% from a year ago.
- Loan growth in Q1 2024 remained strong, with gross loan balances increasing $38.7 million or 9.2% from the prior quarter and up $93.9 million or 25.8% from a year ago.
- Client deposits were up $127.7 million over Q4 2023 and $162.6 million over Q1 2023.
- Assets under management (AUM) ended the quarter at $2.02 billion, up 3.8% from Q4 2023 and 15.4% from Q1 2023.
- Revenue from the wealth management business was up $169 thousand (5.3%) and $290 thousand (9.4%) over the corresponding quarters.
- The Company declared a regular quarterly dividend of $0.21 per share.
- Net interest margin (NIM) decreased to 1.98% in Q1 2024 from 2.16% in Q4 2023 and 2.89% in Q1 2023.
- Non-interest expense in Q1 2024 increased by 0.8% from Q4 2023 and 5.0% from Q1 2023.
- The Company experienced net recoveries of $5 thousand in Q1 2024.
- Shareholders' equity was down $475 thousand or 0.8% from Q4 2023.
- Capital ratios have declined in concert with strategic balance sheet growth.
Q1 2024 Highlights
-
Q1 2024 net income was
, up$463 thousand over Q4 2023, and down$347 thousand from Q1 2023. The improvement over Q4 2023 is due in part to higher revenue, primarily related to the wealth management business, while the decline from the prior year can be attributed primarily to the industry-wide compression in net interest margin.$1.0 million -
Total assets ended the quarter at
, having grown$894.4 million or$39.6 million 4.6% from the prior quarter, and up or$147.6 million 19.8% from a year ago; loan growth in Q1 2024 remained strong, with gross loan balances increasing or$38.7 million 9.2% from the prior quarter, and up or$93.9 million 25.8% from a year ago. -
Client deposits were up
and$127.7 million over Q4 2023 and Q1 2023, respectively. Contributing to this increase was the transfer onto the Bank’s balance sheet of$162.6 million in Ledyard Financial Advisors (LFA) client wealth management funds in January; excluding those new balances, client deposits grew$123.2 million ($2.4 million 0.4% ) in Q1 2024 and ($37.3 million 7.1% ) since a year ago.
-
Total assets ended the quarter at
- Capital ratios remain well in excess of regulatory well-capitalized minimums.
-
Assets under management (AUM) ended the quarter at
, up$2.02 billion 3.8% and15.4% from Q4 and Q1 2023, respectively. Revenue from the wealth management business was up ($169 thousand 5.3% ) and ($290 thousand 9.4% ) over the corresponding quarters. -
The Company declared a regular quarterly dividend of
per share.$0.21
“In Q1 we remained focused on ensuring continued balance sheet strength - we added over
“Our ability to grow both loans and deposits in the first quarter confirmed that our growth strategy is working, especially as we continue to derive synergies from our complementary banking and wealth management businesses. We are pleased that clients and prospects are recognizing the unique value and service we provide, and we look forward to growing and deepening those relationships as our upcoming growth initiatives unfold,” added Josephine Moran, CEO.
Q1 2024 Results
Net income for Q1 2024 was
Q1 2024 net interest income was
Provision for credit losses was
Non-interest revenue for Q1 2024 amounted to
-
Revenue from LFA amounted to
in Q1 2024, up$3.4 million or$169 thousand 5.3% from in Q4 2023, and up$3.2 million or$290 thousand 9.4% from in Q1 2023.$3.1 million -
AUM ended the quarter at
, up$2.02 billion 3.8% from at the end of Q4 2023, and up$1.95 billion 15.4% from at the end of Q1 2023.$1.75 billion
-
AUM ended the quarter at
Non-interest expense in Q1 2024 was
The Company continues to benefit from its investments in Low Income Housing Tax Credits and tax-exempt municipal bonds. In Q1 2024, the tax credits earned from these investments exceeded the tax liability for the quarter, resulting in a tax benefit of
Total assets of the Company at March 31, 2024 were
Gross loans at March 31, 2024 were
Credit reserves amounted to
Client deposits were up
The Company continues to focus on maintaining a robust liquidity profile, with a diverse deposit base (roughly 70/30 retail/commercial), a small proportion of uninsured deposits (estimated at
Quarter-over-quarter, the Company reduced wholesale borrowings and brokered deposits by
The Company has significant liquidity resources available to support operations due to its good standing and with extensive portfolios pledged at FHLB Boston and the Federal Reserve. The Company had over
At March 31, 2024, shareholders’ equity was
As expected, capital ratios have declined in concert with strategic balance sheet growth, and all the Company’s capital ratios remain well in excess of the amount required by the Federal Reserve for a bank holding company to be considered well capitalized. At March 31, 2024, the Company’s book value per share excluding AOCI stood at
Dividend Declaration
The Company is pleased to announce that a regular quarterly dividend of
About the Company
Ledyard Financial Group, Inc., headquartered in
Ledyard Financial Group, Inc. shares can be bought and sold through the NASD sanctioned OTCQX® Best Markets under the trading symbol LFGP. For additional information about the company, stock activity, or financial results please visit the Investor Relations section of bank’s website (www.ledyard.bank), or contact the Company’s Chief Financial Officer, Peteris J. Sprudzs (603) 640-2743; Peter.sprudzs@ledyard.bank.
|
|
For the Three Months Ended |
||||||||||
Income Statement (unaudited, |
|
3/31/2024 |
|
12/31/2023 |
|
3/31/2023 |
||||||
Net interest income before provision |
|
$ |
4,181 |
|
|
$ |
4,153 |
|
|
$ |
4,876 |
|
Provision for credit losses |
|
|
486 |
|
|
|
712 |
|
|
|
21 |
|
Net interest income after provision |
|
|
3,695 |
|
|
|
3,441 |
|
|
|
4,855 |
|
|
|
|
|
|
|
|
||||||
Ledyard Financial Advisors revenue |
|
|
3,384 |
|
|
|
3,215 |
|
|
|
3,094 |
|
Securities losses |
|
|
- |
|
|
|
(5 |
) |
|
|
- |
|
Other non-interest income |
|
|
373 |
|
|
|
350 |
|
|
|
337 |
|
Total non-interest income |
|
|
3,757 |
|
|
|
3,560 |
|
|
|
3,431 |
|
|
|
|
|
|
|
|
||||||
Total revenue |
|
7,452 |
|
|
7,001 |
|
|
8,286 |
|
|||
Non-interest expense |
|
|
7,076 |
|
|
|
7,023 |
|
|
|
6,740 |
|
Pre-tax income (loss) |
|
|
376 |
|
|
|
(22 |
) |
|
|
1,546 |
|
Tax expense (benefit) |
|
|
(87 |
) |
|
|
(138 |
) |
|
|
54 |
|
Net income |
|
$ |
463 |
|
|
$ |
116 |
|
|
$ |
1,492 |
|
|
|
|
|
|
|
|
||||||
|
|
For the Three Months Ended |
||||||||||
Other Operating Metrics |
|
3/31/2024 |
|
12/31/2023 |
|
3/31/2023 |
||||||
Earnings per common share, basic |
$ |
0.14 |
|
$ |
0.04 |
|
$ |
0.45 |
|
|||
Earnings per common share, diluted |
$ |
0.14 |
|
$ |
0.04 |
|
$ |
0.45 |
|
|||
Dividends per common share |
$ |
0.21 |
|
$ |
0.21 |
|
$ |
0.21 |
|
|||
|
|
|||||||||||
Return on assets |
|
0.18 |
% |
|
0.05 |
% |
|
0.77 |
% |
|||
Return on equity |
|
2.82 |
% |
|
0.83 |
% |
|
10.32 |
% |
|||
Efficiency ratio |
89.14 |
% |
91.06 |
% |
81.14 |
% |
Balance Sheet (unaudited, |
|
3/31/2024 |
|
12/31/2023 |
|
3/31/2023 |
||||||
Investments & interest-bearing deposits |
|
$ |
374,580 |
|
|
$ |
374,516 |
|
|
$ |
319,987 |
|
|
|
|
|
|
|
|
||||||
Gross loans |
|
|
457,444 |
|
|
|
418,766 |
|
|
|
363,499 |
|
Allowance for credit losses |
|
|
(3,322 |
) |
|
|
(2,780 |
) |
|
|
(2,848 |
) |
Net loans |
|
|
454,122 |
|
|
|
415,986 |
|
|
|
360,651 |
|
|
|
|
|
|
|
|
||||||
Premises, equipment & other assets |
|
|
65,661 |
|
|
|
64,276 |
|
|
|
66,143 |
|
Total assets |
|
$ |
894,363 |
|
|
$ |
854,779 |
|
|
$ |
746,781 |
|
|
|
|
|
|
|
|
||||||
Client deposits |
|
|
687,591 |
|
|
|
559,915 |
|
|
|
525,013 |
|
Brokered & institutional deposits |
|
|
92,382 |
|
|
|
100,242 |
|
|
|
- |
|
Borrowings |
|
|
32,452 |
|
|
|
113,076 |
|
|
|
139,686 |
|
Subordinated debt |
|
|
18,000 |
|
|
|
18,000 |
|
|
|
18,000 |
|
Other liabilities |
|
|
8,393 |
|
|
|
7,526 |
|
|
|
9,178 |
|
Total liabilities |
|
|
838,818 |
|
|
|
798,759 |
|
|
|
691,877 |
|
|
|
|
|
|
|
|
||||||
Capital |
|
|
72,122 |
|
|
|
72,276 |
|
|
|
72,432 |
|
Accumulated other comprehensive loss |
|
|
(14,933 |
) |
|
|
(14,612 |
) |
|
|
(15,883 |
) |
Treasury stock |
|
|
(1,644 |
) |
|
|
(1,644 |
) |
|
|
(1,644 |
) |
Total shareholders' equity |
|
|
55,545 |
|
|
|
56,020 |
|
|
|
54,904 |
|
|
|
|
|
|
|
|
||||||
Total liabilities and equity |
|
$ |
894,363 |
|
|
$ |
854,779 |
|
|
$ |
746,781 |
|
|
|
|
|
|
|
|
||||||
Other Metrics (as of stated date) |
|
3/31/2024 |
|
12/31/2023 |
|
3/31/2023 |
||||||
Book value per share (excluding AOCI) |
|
$ |
20.93 |
|
$ |
20.97 |
|
$ |
21.15 |
|
||
Book value per share (including AOCI) |
|
$ |
16.49 |
|
$ |
16.64 |
|
$ |
16.40 |
|
||
|
|
|
|
|
|
|
||||||
Leverage ratio |
|
7.81 |
% |
|
8.31 |
% |
|
9.56 |
% |
|||
Risk based capital ratio |
|
16.25 |
% |
|
17.61 |
% |
|
19.91 |
% |
|||
Allowance to total loans |
|
|
0.73 |
% |
|
|
0.66 |
% |
|
|
0.78 |
% |
|
|
1.94 |
% |
|
2.01 |
% |
|
1.48 |
% |
|||
Allowance to non-performing assets |
|
|
198 |
% |
|
|
161 |
% |
|
|
223 |
% |
|
|
|
|
|
|
|
||||||
Assets under management (billions) |
|
$ |
2.021 |
|
$ |
1.947 |
|
$ |
1.751 |
|
||
|
|
|
|
|
|
|
||||||
Shares of common stock issued |
|
|
3,483,504 |
|
|
|
3,483,513 |
|
|
|
3,463,692 |
|
Treasury shares |
|
|
115,998 |
|
|
|
115,998 |
|
|
|
115,998 |
|
|
|
|
|
|
|
|
||||||
Stock price - high |
|
$ |
16.74 |
|
$ |
17.00 |
|
$ |
18.71 |
|
||
Stock price - low |
|
$ |
14.80 |
|
$ |
12.95 |
|
$ |
15.22 |
|
||
Stock price - average |
|
$ |
15.59 |
|
$ |
14.53 |
|
$ |
17.17 |
|
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
Note: Certain reclassifications have been made to the prior period information to conform to the current period presentation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240426854016/en/
For further information contact:
Peteris J. Sprudzs, CFO
(603) 640-2743
Peter.sprudzs@ledyard.bank
Source: Ledyard Financial Group, Inc.
FAQ
What was Ledyard Financial Group's net income for Q1 2024?
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What was the increase in client deposits from Q1 2023 to Q1 2024?
What was the revenue growth in the wealth management business for Q1 2024?