Ledyard Financial Group Reports Q3 2023 Earnings and Declares Quarterly Dividend
- Ledyard Financial Group reports an increase in net income compared to Q2 2023 and maintains a regular quarterly dividend. Client deposit and net loan growth contribute to a solid balance sheet. Advisory revenue and assets under management show positive growth. Total assets and gross loans also increase.
- Net interest margin narrows in Q3 2023. Non-interest expense increases slightly compared to Q2 2023.
Q3 2023 Highlights
-
Net income of
, up$839 thousand 17% from Q2 2023, and down60% from Q3 2022. -
Regular quarterly dividend of
declared.$0.21 -
Client deposit growth of
, or$9.8 million 1.8% over June 30, 2023. -
Net loan growth of
, or$13.5 million 3.7% over June 30, 2023. -
Continued balance sheet strength, with Tier One Leverage Ratio of
9.25% and Total Risk-Based Capital Ratio of15.02% . -
Net interest margin of
2.27% (excluding the tax advantage of municipal investments); average cost of interest-bearing deposits up 59 basis points from Q2 2023, to2.74% . -
Advisory revenue of
and assets under management of$3.2 million , up$1.78 billion 2.3% and down2.5% from Q2 2023.
“The improvement in net income over Q2 was rooted in strong credit performance, with negative provision expense resulting from a more favorable economic outlook and net recoveries resulting from diligent credit management practices. Net interest margin narrowed, though at a slower pace than in previous quarters. With both loans and deposits growing the balance sheet remains solid and our quarterly dividend is unchanged,” said Peter Sprudzs, CFO.
“We are delighted to report growth in all key areas of our business – an increase in client deposits and loans, and an increase in revenue from our wealth management activities,” added Josephine Moran, CEO. “The investments we are making as we pursue our multi-year strategic plan are beginning to pay dividends. Our vision of making life better for our clients, our employees and the communities we serve is taking root.”
Q3 2023 Results
Net income for Q3 2023 was
Q3 2023 net interest income was
Quarter over quarter, the cost of interest-bearing liabilities increased 59 basis points from
The increase in liability costs resulted primarily from a continued mix shift to time deposits from non-maturity deposits, as banks, businesses, and consumers all adjust to and absorb the 525 basis points of rate hikes experienced since March 2022. Industry survey data tracked by the Bank continue to suggest that the Bank’s deposit costs remain well below industry averages.
During Q3 2023, the credit outlook improved, resulting in a provision credit of
Non-interest revenue for Q3 2023 amounted to
-
Assets Under Management (AUM) ended the quarter at
, down$1.78 billion 2.5% from the previous quarter-end and up11.1% from a year ago.$1.60 billion - The Company continues to attract new client relationships and assets; AUM and related revenue has generally trended in concert with global market asset values.
Non-interest expense in Q3 2023 was
The Company continues to benefit from its investments in Low Income Housing Tax Credits. In Q3 2023, the tax credits earned from these investments exceeded the tax liability for the quarter, resulting in a GAAP tax benefit of
Total assets of the Company at September 30, 2023 were
Gross loans at September 30, 2023 were
Established under the new CECL rule adopted by the Company on January 1, 2023, the Allowance for Credit Losses (ACL) totaled
Client deposit balances grew
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
At September 30, 2023, shareholders’ equity stood at
The Company’s capital ratios are in excess of the amount required by applicable banking regulators to be considered well capitalized. Depending on the specific ratio considered, the Company has approximately
At September 30, 2023, 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.
|
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For the Three Months Ended |
||||
Income Statement (unaudited, |
|
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
Net interest income before provision |
|
4,007 |
|
4,234 |
|
4,500 |
Provision for credit losses |
|
(298) |
|
232 |
|
(750) |
Net interest income after provision |
|
4,305 |
|
4,002 |
|
5,250 |
|
|
|
|
|
|
|
Ledyard Financial Advisors revenue |
|
3,210 |
|
3,137 |
|
3,112 |
Securities losses |
|
(11) |
|
- |
|
- |
Other non-interest income |
|
350 |
|
415 |
|
322 |
Total non-interest income |
|
3,549 |
|
3,552 |
|
3,434 |
|
|
|
|
|
|
|
Total revenue |
|
7,854 |
|
7,554 |
|
8,684 |
Non-interest expense |
|
7,080 |
|
7,063 |
|
6,489 |
Pre-tax income |
|
774 |
|
491 |
|
2,195 |
Tax expense (benefit) |
|
(65) |
|
(228) |
|
115 |
Net income |
|
|
|
|
|
|
|
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|
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For the Three Months Ended |
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Other Operating Metrics |
|
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
Earnings per common share, basic |
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Earnings per common share, diluted |
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Dividends per common share |
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Return on assets |
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Return on equity |
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Efficiency ratio |
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Stock price - high |
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Stock price - low |
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Stock price - average |
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Balance Sheet (unaudited, |
|
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
Investments & interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
384,971 |
|
371,805 |
|
353,551 |
Allowance for credit losses |
|
(2,732) |
|
(3,111) |
|
(6,720) |
Net loans |
|
382,239 |
|
368,694 |
|
346,831 |
|
|
|
|
|
|
|
Premises, equipment & other assets |
|
67,708 |
|
66,088 |
|
65,344 |
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Client deposits |
|
538,980 |
|
529,222 |
|
567,746 |
Brokered & institutional deposits |
|
54,533 |
|
32,368 |
|
- |
Borrowings |
|
128,730 |
|
108,815 |
|
87,434 |
Subordinated debt |
|
18,000 |
|
18,000 |
|
18,000 |
Other liabilities |
|
6,480 |
|
5,044 |
|
8,901 |
Total liabilities |
|
746,723 |
|
693,449 |
|
682,081 |
|
|
|
|
|
|
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Capital |
|
72,769 |
|
72,656 |
|
70,561 |
Accumulated other comprehensive loss |
|
(17,600) |
|
(15,110) |
|
(21,519) |
Treasury stock |
|
(1,644) |
|
(1,644) |
|
(1,644) |
Total shareholder's equity |
|
53,525 |
|
55,902 |
|
47,398 |
|
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|
|
|
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Total liabilities and equity |
|
|
|
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|
|
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|
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Other Metrics (as of stated date) |
|
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
Book value per share (excluding AOCI) |
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Book value per share (including AOCI) |
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Leverage ratio |
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Risk based capital ratio |
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Allowance to total loans |
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Allowance for loan losses to non-performing assets |
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Assets under management (billions) |
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Shares of common stock issued |
|
3,484,962 |
|
3,491,100 |
|
3,470,127 |
Treasury shares |
|
115,998 |
|
115,998 |
|
115,998 |
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/20231027126711/en/
Peteris J. Sprudzs, CFO
(603) 640-2743
Peter.sprudzs@ledyard.bank
Source: Ledyard Financial Group, Inc.
FAQ
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