Ledyard Financial Group Reports Q3 2024 Earnings and Declares Quarterly Dividend
Q3 2024 Highlights
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Q3 2024 net income was
($733 thousand per share), up$0.22 over Q2 2024, and down$7 thousand from Q3 2023.$106 thousand -
Total assets ended the quarter at
, having grown$938.0 million or$30.0 million 3.3% from the prior quarter, and ending or$137.7 million 17.2% higher than a year ago, driven primarily by loan growth. -
Loan growth in Q3 2024 continued to be robust, notably exceeding the annualized 2
-3% industry growth rate and increasing ($35.9 million 7.2% ) from the prior quarter) and ended ($147.2 million 38.2% ) higher than a year ago. -
Client deposits were up
and$34.8 million over Q2 2024 and Q3 2023, respectively. Contributing to this increase was the transfer onto the Bank’s balance sheet of$207.2 million in client wealth management funds in January 2024; excluding those new balances, client deposits grew$123.2 million ($13.1 million 2.3% ) in Q3 2024 and ($42.7 million 7.9% ) since a year ago. -
Net interest margin widened to
2.18% , up 4 basis points from the prior quarter.
-
Total assets ended the quarter at
- Capital ratios, although reduced from Q2 2024 and Q3 2023, remain well in excess of regulatory well-capitalized minimums.
-
Assets under management (AUM) ended the quarter at
, up$2.16 billion 6.1% and21.9% from Q2 2024 and Q3 2023, respectively. Revenue from the wealth management business was up ($59 thousand 1.7% ) and ($344 thousand 10.7% ) over the corresponding previous quarters. -
The Company declared a regular quarterly dividend of
per share.$0.21
“In Q3 2024, we continued to pursue and execute our strategic plan, re-deploying investment portfolio assets into loans, growing client deposits, and embedding resilience into the balance sheet. With ample liquidity and strong capital, we were able to widen net interest margin, build credit reserves, and maintain our level of net income from the prior quarter. Our third quarter earnings represent a continuation of our journey to more normalized performance levels, and we are maintaining our quarterly dividend,” said Peter Sprudzs, CFO.
“We are pleased to see that we are succeeding in the pursuit of all three of our strategic plan pillars – growth, evidenced by our expanding client deposit and loan portfolios; client engagement, manifested by our consistently high scores in client service surveys; and employee engagement, confirmed by our recent recognition as the ‘Best Place to Work’ by the Concord Monitor’s Cappies Awards. We look forward to continuing the pace of growth and expanding upon the return on the strategic investments we have made,” added Josephine Moran, CEO.
Q3 2024 Results
Net income for Q3 2024 was
Q3 2024 net interest income was
Provision for credit losses was
Non-interest revenue for Q3 2024 amounted to
-
Revenue from Ledyard Financial Advisors (LFA) amounted to
in Q3 2024, up$3.6 million or$59 thousand 1.7% from Q2 2024, and up or$344 thousand 10.7% from Q3 2023.-
AUM ended the quarter at
, up$2.16 billion 6.1% from at the end of Q2 2024, and up$2.04 billion 21.9% from at the end of Q3 2023.$1.78 billion
-
AUM ended the quarter at
Non-interest expense in Q3 2024 was
The Company continues to benefit from its investments in Low Income Housing Tax Credits and tax-exempt municipal bonds. In Q3 2024, the net tax expense was
Total assets of the Company at September 30, 2024 were
Gross loans at September 30, 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 80/20 retail/commercial), a small proportion of uninsured deposits (estimated at
Quarter-over-quarter, the Company reduced wholesale borrowings and deposits acquired through brokers or listing channels by
The Company has significant liquidity resources available to support operations, as it maintains good standing and extensive portfolios pledged at FHLB Boston and the Federal Reserve. The Company had over
At September 30, 2024, shareholders’ equity was
The Company’s capital ratios remain well in excess of the levels defined by the Federal Reserve for a bank holding company to be considered well capitalized. As expected, capital ratios have trended down in the last year in concert with strategic balance sheet growth. At September 30, 2024, the Company’s book value per share excluding and including 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 |
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Income Statement (unaudited, |
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9/30/2024 |
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6/30/2024 |
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9/30/2023 |
Net interest income before provision |
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Provision for credit losses |
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164 |
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139 |
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(298) |
Net interest income after provision |
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4,512 |
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4,343 |
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4,305 |
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Ledyard Financial Advisors revenue |
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3,554 |
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3,495 |
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3,210 |
Securities gains (losses) |
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1 |
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6 |
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(11) |
Other non-interest income |
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377 |
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421 |
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350 |
Total non-interest income |
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3,932 |
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3,922 |
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3,549 |
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Total revenue |
8,444 |
8,265 |
7,854 |
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Non-interest expense |
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7,671 |
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7,506 |
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7,080 |
Pre-tax income |
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773 |
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759 |
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774 |
Tax expense (benefit) |
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40 |
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33 |
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(65) |
Net income |
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For the Three Months Ended |
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Other Operating Metrics |
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9/30/2024 |
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6/30/2024 |
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9/30/2023 |
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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Net interest margin |
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Efficiency ratio |
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Balance Sheet (unaudited, |
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9/30/2024 |
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6/30/2024 |
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9/30/2023 |
Investments & interest-bearing deposits |
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Gross loans |
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532,164 |
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496,232 |
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384,971 |
Allowance for credit losses |
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(3,671) |
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(3,409) |
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(2,732) |
Net loans |
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528,493 |
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492,823 |
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382,239 |
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Premises, equipment & other assets |
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64,957 |
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66,053 |
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67,708 |
Total assets |
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Client deposits |
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Brokered & institutional deposits |
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76,542 |
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82,366 |
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54,533 |
Borrowings |
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32,107 |
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32,280 |
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128,730 |
Subordinated debt |
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18,000 |
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18,000 |
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18,000 |
Other liabilities |
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8,381 |
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8,375 |
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6,480 |
Total liabilities |
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881,238 |
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852,463 |
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746,723 |
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Capital |
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72,356 |
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72,224 |
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72,769 |
Accumulated other comprehensive loss |
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(13,999) |
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(15,058) |
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(17,600) |
Treasury stock |
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(1,644) |
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(1,644) |
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(1,644) |
Total shareholders' equity |
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56,713 |
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55,522 |
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53,525 |
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Total liabilities and equity |
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Other Metrics (as of stated date) |
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9/30/2024 |
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6/30/2024 |
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9/30/2023 |
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 to non-performing assets |
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Assets under management (billions) |
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Shares of common stock issued |
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3,525,930 |
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3,525,357 |
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3,484,962 |
Treasury shares |
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115,998 |
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115,998 |
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115,998 |
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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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Forward-Looking Statements: Certain statements herein constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of Ledyard Financial Group, Inc.’s (the “Company’s”) management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, changes in interest rates; changes in general business and economic conditions (including inflation and concerns about liquidity) on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in customer behavior; turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in employment levels; increases in loan default and charge-off rates; decreases in the value of securities in the Company’s investment portfolio; fluctuations in real estate values; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; changes in loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, and future pandemics; changes in regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; and the risk that the Company may not be successful in the implementation of its business strategy. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.
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/20241025996202/en/
For further information contact:
Peteris J. Sprudzs, CFO
(603) 640-2743
Peter.sprudzs@ledyard.bank
Source: Ledyard Financial Group, Inc.