Ledyard Financial Group Reports Q4 2023 and Full-Year 2023 Earnings and Declares Quarterly Dividend
- None.
- Net income for Q4 2023 and FY 2023 decreased compared to previous periods, with a significant decline in NIM and higher provision expenses affecting financial performance.
- Non-interest expenses increased in FY 2023 due to strategic investments, inflationary pressures, CEO transition costs, and marketing spending.
- Wealth management revenue saw a slight decrease in 2023, and the Company experienced net charge-offs in both Q4 and FY 2023.
- Despite loan growth and stable deposits, the Company reported a decline in net income and NIM, impacting overall financial results.
Q4 2023 and FY 2023 Highlights
-
Q4 net income was
, down$116 thousand from Q3 2023, with the decline attributable to reserve growth consistent with loan production volume in the quarter.$723 thousand -
Provision expense was
higher than in Q3 2023, accounting for more than$1.0 million 100% of the quarter-over-quarter change in pre-tax income. - The Company experienced net recoveries (rather than net charge-offs) in both Q4 and FY 2023.
-
Provision expense was
-
FY 2023 net income was
, down$3.2 million or$3.8 million 54% from in 2022. Consistent with the NIM compression observed industry-wide in 2023, Net Interest Income was down$7.0 million or$1.4 million 7.8% , and investment in infrastructure and inflation drove non-interest expense up , or$1.8 million 7.0% . Wealth management revenue came in at , down$12.7 million 1% from in 2022, and the net effect of provision expense and securities gains or losses amounted to$12.8 million and$682 thousand of expense in 2023 and 2022, respectively.$668 thousand -
Total assets ended 2023 at
, having grown$854.8 million during Q4 and$54.5 million during the year.$111.3 -
Q4 was a particularly strong period for loan growth, with loan balances increasing
.$33.8 million -
Client deposits increased
during Q4 and ended the year down less than$21 million 2% from a year ago.
-
Q4 was a particularly strong period for loan growth, with loan balances increasing
- Capital ratios remain well in excess of regulatory well-capitalized minimums.
-
Assets under management (AUM) ended the year at
, up$1.95 billion 9.7% and14.2% from Q3 2023 and Q4 2022, respectively. -
Regular quarterly dividend of
per share declared.$0.21
“By driving growth in both relationship-based loans and client deposits, we remained focused on the goal of long-term value creation throughout 2023. Prudent balance sheet growth in Q4, along with the addition of
“Despite the challenges of 2023, I am pleased to report more evidence of progress on our multi-year strategic plan - in Q4 2023 we delivered the highest loan production in company history, in concert with a
Q4 2023 and FY 2023 Results
Net income for Q4 2023 was
Q4 2023 net interest income was
Provision for credit losses was
Non-interest revenue for Q4 2023 amounted to
-
Revenue from Ledyard Financial Advisors (LFA) amounted to
for Q4 2023, essentially unchanged from Q3 2023, but up$3.2 million from$184 thousand in Q4 2022. For the full year, LFA revenue amounted to$3.0 million , down$12.7 million or$123 thousand 1.0% from in 2022.$12.8 million -
AUM ended the year at
, up$1.95 billion 9.7% for the quarter, and up14.2% from at the prior year-end.$1.71 billion
-
AUM ended the year at
Non-interest expense in Q4 2023 was
The Company continues to benefit from its investments in Low Income Housing Tax Credits. In Q4 2023, 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 December 31, 2023 were
Gross loans at December 31, 2023 were
Credit reserves amounted to
The Company experienced net recoveries of
Core deposits at December 31, 2023 were
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, deposits acquired through broker or listing service channels grew
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 December 31, 2023, shareholders’ equity was
All 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, 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 |
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Unaudited Income Statement ( |
|
12/31/2023 |
|
9/30/2023 |
|
12/31/2022 |
|||
Net interest income |
|
$ |
4,153 |
$ |
4,007 |
$ |
4,929 |
||
Provision for credit losses |
|
|
712 |
|
|
(298) |
|
|
(2,885) |
Net interest income after provision |
|
|
3,441 |
|
|
4,305 |
|
|
7,814 |
|
|
|
|
|
|
|
|||
Ledyard Financial Advisors revenue |
|
|
3,215 |
|
|
3,210 |
|
|
3,030 |
Securities losses |
|
|
(5) |
|
|
(11) |
|
|
(3,239) |
Other non-interest income |
|
|
350 |
|
|
350 |
|
|
332 |
Total non-interest income |
|
|
3,560 |
|
|
3,549 |
|
|
123 |
|
|
|
|
|
|
|
|||
Non-interest expense |
|
|
7,023 |
|
|
7,080 |
|
|
7,083 |
Pre-tax income |
|
|
(22) |
|
|
774 |
|
|
855 |
Tax expense (benefit) |
|
|
(138) |
|
|
(65) |
|
|
70 |
Net income |
|
$ |
116 |
|
$ |
839 |
|
$ |
784 |
|
|
|
|
|
|
|
|||
Earnings per common share, basic |
|
$ |
0.04 |
|
$ |
0.25 |
|
$ |
0.24 |
Earnings per common share, diluted |
|
$ |
0.04 |
|
$ |
0.25 |
|
$ |
0.24 |
|
|
For the Twelve Months Ended |
||||
Unaudited Income Statement ( |
|
12/31/2023 |
|
12/31/2022 |
||
Net interest income |
|
$ |
17,270 |
|
$ |
18,722 |
Provision for credit losses |
|
|
667 |
|
|
(3,634) |
Net interest income after provision |
|
|
16,603 |
|
|
22,356 |
|
|
|
|
|
||
Ledyard Financial Advisors revenue |
|
|
12,656 |
|
|
12,779 |
Securities losses |
|
|
(15) |
|
|
(2,966) |
Other non-interest income |
|
|
1,451 |
|
|
1,398 |
Total non-interest income |
|
|
14,092 |
|
|
11,211 |
|
|
|
|
|
||
Non-interest expense |
|
|
27,907 |
|
|
26,070 |
Pre-tax income |
|
|
2,788 |
|
|
7,497 |
Tax expense (benefit) |
|
|
(377) |
|
|
515 |
Net income |
|
$ |
3,165 |
|
$ |
6,982 |
|
|
|
|
|
||
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||
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For the Twelve Months Ended |
||||
Other Operating Metrics |
|
12/31/2023 |
|
12/31/2022 |
||
Earnings per common share, basic |
|
$ |
0.96 |
|
$ |
2.14 |
Earnings per common share, diluted |
|
$ |
0.96 |
|
$ |
2.13 |
Dividends per common share |
|
$ |
0.84 |
|
$ |
0.84 |
|
|
|
|
|
||
Return on assets |
|
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|
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|
|
Return on equity |
|
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|
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|
|
Efficiency ratio |
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|
|
|
|
|
|
|
|
||
Stock price - high |
|
$ |
20.00 |
|
$ |
25.70 |
Stock price - low |
|
$ |
12.95 |
|
$ |
17.80 |
Stock price - average |
|
$ |
15.64 |
|
$ |
21.12 |
Unaudited Balance Sheet (as of stated date, |
|
12/31/2023 |
|
9/30/2023 |
|
12/31/2022 |
|||
Investments & interest-bearing deposits |
|
$ |
374,516 |
|
$ |
350,301 |
|
$ |
317,800 |
|
|
|
|
||||||
Gross loans |
|
|
418,766 |
|
|
384,971 |
|
|
362,057 |
Less: Allowance for credit losses |
|
|
(2,780) |
|
|
(2,732) |
|
|
(3,843) |
Net loans |
|
|
415,986 |
|
|
382,239 |
|
|
358,214 |
|
|
|
|
|
|
|
|||
Premises, equipment & other assets |
|
|
64,277 |
|
|
67,708 |
|
|
67,484 |
Total Assets |
|
$ |
854,779 |
|
$ |
800,248 |
|
$ |
743,498 |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Core deposits |
|
$ |
559,915 |
|
$ |
538,980 |
|
$ |
570,332 |
Wholesale & brokered deposits |
|
|
100,242 |
|
|
54,534 |
|
|
- |
Borrowings |
|
|
113,076 |
|
|
128,730 |
|
|
91,270 |
Subordinated debt |
|
|
18,000 |
|
|
18,000 |
|
|
18,000 |
Other liabilities |
|
|
7,526 |
|
|
6,480 |
|
|
10,897 |
Total Liabilities |
|
|
798,759 |
|
|
746,723 |
|
|
690,499 |
|
|
|
|
|
|
|
|||
Capital |
|
|
72,276 |
|
|
72,769 |
|
|
70,730 |
Other comprehensive income |
|
|
(14,612) |
|
|
(17,600) |
|
|
(16,087) |
Treasury stock |
|
|
(1,644) |
|
|
(1,644) |
|
|
(1,644) |
Total Shareholders' Equity |
|
|
56,020 |
|
|
53,525 |
|
|
52,999 |
|
|
|
|
|
|
|
- |
||
Total Liabilities and Equity |
|
$ |
854,779 |
|
$ |
800,248 |
|
$ |
743,498 |
|
|
|
|
|
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Other Metrics (as of stated date) |
|
12/31/2023 |
|
9/30/2023 |
|
12/31/2022 |
|||
Book value per share (excluding OCI) |
|
$ |
20.97 |
|
$ |
21.11 |
|
$ |
20.63 |
Book value per share (including OCI) |
|
$ |
16.64 |
|
$ |
15.89 |
|
$ |
15.83 |
|
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Leverage ratio |
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|
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Risk based capital ratio |
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Allowance to total loans |
|
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Allowance for credit losses to non-performing assets |
|
|
|
|
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|
Assets under management (billions) |
|
$ |
1.947 |
|
$ |
1.775 |
|
$ |
1.705 |
|
|
|
|
|
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Shares of common stock issued |
|
|
3,483,513 |
|
|
3,484,962 |
|
|
3,464,393 |
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/20240209925694/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 Q4 2023?
What caused the decline in net income for FY 2023?
What was the total assets of the Company at the end of 2023?
What was the percentage change in AUM from Q4 2022 to Q4 2023?