Ledyard Financial Group, Inc. (OTCQX®: LFGP), the parent company of Ledyard National Bank, has released its financial results for the second quarter of 2024. The company demonstrated a quarter-over-quarter improvement in net income, underscoring the effectiveness of its strategic initiatives. By leveraging the integration of its banking and wealth management operations, Ledyard Financial Group remains committed to fostering growth and enhancing value for its clients, employees, shareholders, and communities.
Q2 2024 Highlights:
- Net Income: The company reported net income of $726 thousand ($0.22 per share) for Q2 2024, an increase of $263 thousand from Q1 2024 and a slight rise of $7 thousand from Q2 2023.
- Total Assets: Assets grew to $908.0 million, up $13.6 million (1.5%) from the previous quarter and $158.6 million (21.2%) year-over-year.
- Loan Growth: Gross loans increased by $38.8 million (8.5%) from the prior quarter and $124.4 million (33.5%) year-over-year.
- Client Deposits: Deposits rose by $23.9 million from Q1 2024 and $182.2 million from Q2 2023. This growth includes $123.2 million in Ledyard Financial Advisors (LFA) client wealth management funds transferred to the Bank’s balance sheet in January. Excluding these new balances, deposits grew $6.4 million (1.1%) for the quarter and $39.4 million (7.4%) year-over-year.
- Assets Under Management (AUM): AUM reached $2.04 billion, up 0.8% from Q1 2024 and 12.0% from Q2 2023. Revenue from the wealth management segment increased by $111 thousand (3.3%) from the prior quarter and $358 thousand (11.4%) year-over-year.
- Dividend: The company declared a quarterly dividend of $0.21 per share.
Peter Sprudzs, CFO, commented, “In Q2, we focused on optimizing our balance sheet to support our strategic goals. Our strong liquidity allowed us to expand loans and deposits, increase credit reserves, reduce the investment portfolio, and widen our net interest margin by 13 basis points. The improvement in earnings represents progress toward more normalized performance levels, and we are maintaining our quarterly dividend.”
Josephine Moran, CEO, added, “Our ability to grow loans and deposits confirms that our strategic growth plans are on track. The increase in net interest margin and revenue from wealth management reflects the strength of our integrated business model. Our customer satisfaction surveys and recent recognition as the ‘Best Place to Work’ by the Concord Monitor’s Cappies Awards highlight our success in client engagement and workforce development. We look forward to continued growth as we implement upcoming strategic initiatives.”
Q2 2024 Financial Performance:
- Net Income: $726 thousand ($0.22 per share), compared to $463 thousand ($0.14 per share) in Q1 2024 and $719 thousand ($0.22 per share) in Q2 2023.
- Net Interest Income: Increased to $4.5 million, up $301 thousand (7.2%) from Q1 2024 and $248 thousand (5.8%) from Q2 2023. The net interest margin (NIM) widened to 2.14% from 2.01% in Q1 2024, but was down 34 basis points from 2.48% in Q2 2023.
- Provision for Credit Losses: Totaled $139 thousand, consisting of a net addition of $87 thousand to the Allowance for Credit Losses (ACL) and a $52 thousand addition to the Liability for Unfunded Commitments.
- Non-Interest Revenue: Reached $3.9 million, up from $3.8 million in Q1 2024 and $3.6 million in Q2 2023.
- Ledyard Financial Advisors Revenue: $3.5 million, an increase of $111 thousand (3.3%) from Q1 2024 and $358 thousand (11.4%) from Q2 2023.
- Non-Interest Expense: Increased to $7.5 million, up $430 thousand (6.1%) from Q1 2024 and $443 thousand (6.3%) from Q2 2023.
Balance Sheet Highlights:
- Total Assets: $908.0 million, up from $894.4 million at the end of Q1 2024 and $749.4 million at the end of Q2 2023.
- Gross Loans: $496.2 million, compared to $457.4 million on March 31, 2024, and $371.8 million on June 30, 2023.
- Client Deposits: $711.4 million, compared to $687.6 million in Q1 2024 and $529.2 million in Q2 2023.
- Shareholders’ Equity: $55.5 million, relatively unchanged from Q1 2024 but down $380 thousand (0.7%) from Q2 2023.
Dividend Declaration:
The company will pay a regular quarterly dividend of $0.21 per share on September 6, 2024, to shareholders of record as of August 16, 2024.
About Ledyard Financial Group:
Ledyard Financial Group, Inc., based in Hanover, New Hampshire, is the holding company for Ledyard National Bank. Established in 1991, Ledyard National Bank offers a range of banking, investment, and wealth management services.
Shares of Ledyard Financial Group, Inc. trade on the OTCQX® Best Markets under the ticker symbol LFGP. For more information, visit www.ledyard.bank or contact the Company’s CFO, Peteris J. Sprudzs.
