Ledyard Financial Group Reports Financial Results for the Third Quarter

Ledyard Financial Group, Inc. (ticker symbol LFGP), reported its financial results for the third quarter of 2009 today. Some of the highlights were:

• Ledyard Financial Advisors reported record revenue for the third quarter.
• Revenue from new business at Ledyard Financial Advisors totaled $751,000 for the first nine months of 2009.
• Assets under management and custody at Ledyard Financial Advisors totaled $744.5 million as of the end of the third quarter of 2009.
• Capital remains strong as shareholders’ equity was $33.0 million at the end of the third quarter of 2009, a record high.

Net Income for the quarter ended September 30, 2009 was $350,108, or $0.34 per share compared to $735,858 or $.72 per share for the same period in 2008. Net Income for the nine months ended September 30, 2009 was $1,218,076, or $1.19 per share compared to $2,622,539 or $2.57 per share for the same period in 2008. Total revenue [net interest income plus non-interest income] for the quarter ended September 30, 2009 was $4,825,670, compared to $4,940,270 for the same period in 2008. Total revenue for the nine months ended September 30, 2009 was $14,574,783, compared to $14,589,080 for the same period in 2008. Net Interest Income for the quarter ended September 30, 2009 was $3,019,050, compared to $3,324,675 for the same period in 2008. Net Interest Income for the nine months ended September 30, 2009 was $9,444,817, compared to $9,670,114 for the same period in 2008. The decrease in loan balances was the primary factor contributing to the decrease in Net Interest Income.

For the quarter ended September 30, 2009, $500,000 was added to the allowance for loan losses (“Allowance”) compared to $500,000 for the same period in 2008. For the nine months ended September 30, 2009, $2,050,000 was added to the Allowance compared to $800,000 for the same period in 2008. The total Allowance was $6.6 million at September 30, 2009, compared to $3.3 million for the same period in 2008. Total non-performing loans were $5.56 million at September 30, 2009, compared to $1.98 million for the same period in 2008.

Ledyard Financial Advisors, a division of Ledyard National Bank, reported revenue for the quarter ended September 30, 2009 of $1,334,415, compared to $1,233,892 for the same period in 2008. Revenue for the nine months ended September 30, 2009 was $3,710,676, compared to $3,772,466 for the same period in 2008. New business at Ledyard Financial Advisors has been strong for the first nine months of 2009. Revenue from new business for the third quarter was $226,720, compared to $169,082 for the prior year. Revenue from new business for the nine months ended September 30, 2009 was $751,141, compared to $488,271 for the same period in 2008.

At September 30, 2009, the Company’s shareholders’ equity stood at $33.0 million, compared to $31.8 million for the same period in 2008. The Company’s Risk Based Capital Ratio was 15.74% at September 30, 2009, compared to 14.85% for the same period in 2008. 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 September 30, 2009, the Company’s book value per share stood at $32.27 compared to $31.15 for the same period in 2008.

Loans, net of the allowance for loan losses at September 30, 2009, were $202.2 million, compared to $228.1 for the same period last year. Total Deposits at September 30, 2009 were $313.2 million, an increase of $48.3 million from the same period last year. Total Assets of the Company were $381.1 million at September 30, 2009, an increase of $43.1 million over the prior year. Advances from the Federal Home Loan Bank decreased by $5.3 million from $25.0 million at September 30, 2008 to $19.7 million at September 30, 2009.

A quarterly cash dividend of $.31 per share was declared on October 30, 2009 to shareholders of record as of November 13, 2009, payable December 11, 2009.

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 in the Dartmouth-Lake Sunapee Region. Ledyard National Bank has eight offices with locations in Hanover, Lebanon, Lyme, New London, and West Lebanon, New Hampshire and in Norwich, Vermont.

Ledyard Financial Group, Inc. shares can be bought and sold through the NASD sanctioned “Pink Sheets” 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 Nine Months Ended
						9/30/2009				9/30/2008						9/30/2009			9/30/2008
Total Interest Income					$	4,068,966			$	4,661,065					$	12,841,545		$	13,949,011
Total Interest Expense						1,049,916				1,336,390						3,396,728			4,278,897
Net Interest Income						3,019,050				3,324,675						9,444,817			9,670,114
Provision for Loan Losses						500,000				500,000						2,050,000			800,000
Non-interest Income						1,806,620				1,615,595						5,129,966			4,918,966
Non-interest Expense						3,839,362				3,370,512						10,836,307			9,769,742
Net Income						350,108				735,858						1,218,076			2,622,539
Earnings Per Common Share, basic					$	0.34			$	0.72					$	1.19		$	2.57
Dividends Per Common Share					$	0.31			$	0.31					$	0.93		$	0.93
					As of 9/30/2009				As of 9/30/2008
Total Assets					$	381,110,210			$	337,960,404
Investment Securities						137,092,086				86,177,190
Loans receivable, net						202,175,363				228,062,002
Total Deposits						313,211,113				264,950,032
FHLB Advances & Other Borrowings						19,730,931				25,040,902
Stockholders Equity						32,975,286				31,816,663
Book Value per Common Share Outstanding					$	32.27			$	31.15
Total Risk Based Capital Ratio						15.74	%			14.85	%
Non-performing Assets					$	5,556,751			$	1,981,360
Non-performing Assets as a % of Total Assets						1.95	%			1.00	%
Allowance for Loan Losses					$	6,642,008			$	3,258,104
Allowance as a % of Total Loans						3.18	%			2.13	%