Market Overview

Ledyard Financial Group Reports Record Earnings

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Ledyard Financial Group, Inc. (ticker symbol LFGP), the holding company
for Ledyard National Bank, today reported record quarterly and
year-to-date earnings through June 30, 2018. Net income for the quarter
ended June 30, 2018, was $1,341,894 or $0.43 per share compared to
$1,121,791 or $0.36 per share for the same period in 2017, an increase
of $220,104 or 19.6%. Net income for the six months ended June 30, 2018,
was $2,549,198 or $0.82 per share compared to $2,128,460 or $0.69 per
share for the same period in 2017, an increase of $420,738 or 19.8%. The
strength of the Company's core businesses combined with a lower federal
tax rate due to the adoption of tax reform are the primary contributing
factors to the improvement in operating results and returns to Ledyard
shareholders.

Total revenue for the quarter ended June 30, 2018, was $6,906,679
compared to $6,382,351 for the same period in 2017, for an increase of
$524,328 or 8.2%. Total revenue for the six months ended June 30, 2018,
was $13,586,519 compared to $12,368,907 for the same period in 2017, for
an increase of $1,217,613 or 9.8%. Net interest income for the quarter
ended June 30, 2018, was $3,810,378 compared to $3,608,903 for the same
period in 2017, for an increase of $201,475 or 5.6%. Net interest income
for the six months ended June 30, 2018, was $7,542,603 compared to
$7,122,752 for the same period in 2017, for an increase of $419,851,
which is a 5.9% improvement over the prior year. The improvement in net
interest income was due to interest on loans and investments increasing
combined with the Company's ability to hold deposit costs steady.

No funds were added to the Allowance during the second quarter of 2018
or 2017. The total Allowance was $5.2 million at June 30, 2018, compared
to $5.5 million for the same period in 2017. Total non-performing assets
were $1.7 million at June 30, 2018, compared to $2.3 million for the
same period in 2017.

Ledyard Financial Advisors, a division of Ledyard National Bank,
reported revenue for the quarter ended June 30, 2018, of $2,635,835
compared to $2,375,977 for the same period in 2017, an increase of
$259,858 or 10.9%. Revenue for the six months ended June 30, 2018, was
$5,253,541 compared to $4,548,450 for the same period in 2017, an
increase of $705,091 or 15.5%. Assets under management and custody at
Ledyard Financial Advisors totaled approximately $1.52 billion as of
June 30, 2018, which is a $154 million increase over June 30, 2017. The
improvement in the equity markets when compared to the prior year,
strong new business activity, and the Company's entry into the Concord,
New Hampshire market have all contributed to the increase in Assets
Under Management and Custody.

Non-interest expense for the quarter ended June 30, 2018, was $5,341,571
compared to $5,041,674 for the same period in 2017, an increase of
$299,898 or approximately 5.9%. Non-interest expense for the six months
ended June 30, 2018, was $10,665,762 compared to $9,799,577 for the same
period in 2017, an increase of $866,185 or approximately 8.8%. The
factors contributing to increased expense were costs associated with a
new core system search, the filling of previously open positions, and
increased costs associated with a new operations center.

At June 30, 2018, the Company's shareholders' equity stood at $46.7
million, compared to $46.3 million for the same period in 2017. All of
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 June 30, 2018, the Company's book value per share stood
at $14.48 compared to $14.55 for the same period in 2017.

Loans, net of the allowance for loan losses at June 30, 2018, were
$299.7 million, compared to $290.1 million for the same period last
year, for an increase of $9.6 million or 3.3%. Total deposits at June
30, 2018, were $400.3 million, a decrease of $666,000 or less than 1%
from the same period last year. Total assets of the Company were $483.6
million at June 30, 2018, a decrease of $10 million over the prior year.

Ledyard Financial Group, Inc., headquartered in Hanover, New Hampshire,
is the holding company for Ledyard National Bank. Ledyard National Bank,
founded in 1991, is a full service community bank offering a broad range
of banking, investment, tax and wealth management services. Stock
activity information can be found in the "Investor Relations" section of
our website, which includes a wealth of other information that Ledyard
shareholders and prospective shareholders may find of interest.

Ledyard Financial Group, Inc. shares can be bought and sold through the
NASD sanctioned "OTC Markets" under the trading symbol LFGP. Shares may
be traded through an individual's broker. For more information, please
refer to the "Investor Relations" section of the bank's website at www.ledyardbank.com
or contact the Company's Chief Financial Officer, Gregory D. Steverson.

 

Ledyard Financial Group, Inc.
Selected Financial Highlights
(Unaudited)

           

 

       
            For the Three Months Ended       For the Six Months Ended
            6/30/2018     6/30/2017       6/30/2018     6/30/2017
Total Interest Income           $ 4,084,657     $ 3,940,344       $ 8,091,264     $ 7,775,912
Total Interest Expense             274,279       331,441         548,661       653,160
Net Interest Income             3,810,378       3,608,903         7,542,603       7,122,752
Provision for Loan Losses             0       0         0       0
Non-interest Income             3,096,301       2,773,448         6,043,917       5,246,155
Non-interest Expense             5,341,571       5,041,674         10,665,762       9,799,577
Net Income             1,341,894       1,121,791         2,549,198       2,128,460
Earnings Per Common Share, basic           $ 0.43     $ 0.36       $ 0.82     $ 0.69
Earnings Per Common Share, diluted           $ 0.43     $ 0.36       $ 0.81     $ 0.68
Dividends Per Common Share           $ 0.17     $ $0.16       $ 0.34     $ 0.32
                                 
            As of June 30, 2108     As of June 30, 2017              
Total Assets           $ 483,631,997     $ 493,681,626              
Investments             150,311,205       169,293,015              
Loans Receivable, net             299,658,009       290,062,611              
Total Deposits             400,289,661       400,955,587              
FHLB Advances & Other Borrowings             32,908,112       43,525,428              
Stockholder's Equity             46,674,297       46,251,060              
Common Stock Issued             3,352,551       3,315,798              
Treasury Shares             130,162       136,779              
Tangible Book Value per Share           $ 14.48     $ 14.55              
Total Risk Based Capital Ratio             16.99%       15.91%              
Non-performing Assets           $ 1,668,681     $ 2,293,981              
Allowance as a % of Total Loans             1.71 %       1.86%              
Return on Assets             1.06%       0.87%              
Return on Equity             10.71%       9.53%              
                       

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 the United States government, and general economic
conditions.
The Company disclaims any obligation to update any
such factors.

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