Ledyard Financial Group, Inc. (ticker symbol LFGP), the holding company for Ledyard National Bank, is proud to announce record quarterly and year-to-date earnings. This is the fourth consecutive year of record earnings and these results are evidence of the strength of our core businesses and financial condition. The latest COVID-19 variant continues to present challenges to Ledyard and to our core constituents. It is far from certain what the “new normal” might be in the future. In spite of these challenges, our attention remains on strengthening our financial position, maintaining our strong liquidity position, and preserving core earnings.

Net income for the quarter ended December 31, 2021, was $1,997,150 or $0.62 per share compared to $1,753,214 or $0.55 per share for the same period in 2020, an increase of ­­­­­­$243,936 or 14%. Net income for the twelve months ended December 31, 2021, was $7,765,132 or $2.42 per share compared to $6,729,210 or $2.13 per share for the same period in 2020, an increase of 15%.

Total revenue for the quarter ended December 31, 2021, was $8,273,481 compared to $8,114,638 for the same period in 2020, for an increase of $158,843 or 2%. Total revenue for the twelve months ended December 31, 2021, was $33,309,552 compared to $31,809,688 for the same period in 2020, an increase of $1,499,864 or 5%. Net interest income for the quarter ended December 31, 2021, was $4,559,932 compared to $4,402,071 for the same period in 2020, for an increase of $157,861 or 4%. Net interest income for the twelve months ended December 31, 2021, was $18,726,513 compared to $16,764,699 for the same period in 2020, for an increase of $1,511,814 or 9%. The increase in our net interest income was due primarily to an increase in investments and interest-bearing deposits, the acceleration of deferred revenue due to the forgiveness of PPP loans, the cancellation of hedges associated with investments and funding, and our ability to manage the cost of our deposits and borrowings.

Ledyard Financial Advisors, a division of Ledyard National Bank, reported revenue for the quarter ended December 31, 2021, of $3,406,421 compared to $2,991,728 for the same period in 2020, an increase of $414,693 or 14%. Revenue for the twelve months ended December 31, 2021, was $13,168,853 compared to $11,614,224 for the same period in 2020, for an increase of $1,554,629 or 13%. Assets under management and custody at Ledyard Financial Advisors totaled approximately $1.976 billion at December 31, 2021, and $1.709 billion for the same period in 2020, a 16% increase.

Non-interest expense for the quarter ended December 31, 2021, was $6,713,222 compared to $6,112,695 for the same period in 2020, an increase of $600,527 or 10% over the prior year. Non-interest expense for the twelve months ended December 31, 2021, was $25,286,253 compared to $21,817,563 for the same period in 2020, for an increase of $3,468,690 or 16%. The increase in non-interest expense relates primarily to non-recurring recruitment expenses, increased costs associated with staying in compliance with certain regulations, and non-recurring expenses associated with the cancellation of funding swaps, At December 31, 2021, the Company’s shareholders’ equity stood at $73.2 million, compared to $66.9 million for the same period in 2020. 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 December 31, 2021, the Company’s book value per share stood at $­­­­21.86 compared to $20.14 for the same period in 2020.

Loans, net of the allowance for loan losses at December 31, 2021, were $355 million, compared to $364 million for the same period last year, for a decrease of $9 million. Total deposits at December 31, 2021, were $675 million, as compared to $590 million from the same period last year. Included in deposits is $60 million in brokered deposits, which provide funding at lower costs than current wholesale borrowing alternatives. Total assets of the Company were $770 million at December 31, 2021, an increase of $89 million over the prior year. The current environment has presented challenges to growing loans. As cash has built up on our balance sheet because of PPP forgiveness, other loan prepayments, or growth in deposits, we have deployed excess funds in investment securities in order to earn a spread.

During the quarter ended December 31, 2021, $500,000 was released from the allowance compared to a $250,000 provision to the allowance in the same period for 2020. For the year ended December 31, 2021, $450,000 in net reserves were released, compared to provisions of $2,700,000 for 2020. The allowance is $7.47 million at December 31, 2021, compared to $7.96 million for the same period in 2020. Total non-performing assets were $1.4 million at December 31, 2021, compared to $1.5 million for the same period in 2020.

For the second consecutive year, the Company is pleased to announce that it has been named one of American Banker's 2021 Best Companies to Work For. The competition’s judges recognized Ledyard as an organization that proactively focuses on and strives to offer a workplace that truly engages its employees.

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, and wealth management services. Stock activity information can be found in the “Investor Relations” section of the bank’s 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.

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.

Note: Certain reclassifications have been made to the prior period information to conform to the current period presentation.

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