2015 Annual Report
C E L E B R A T I N G O U R 2 5 T H A N N I V E R S A R Y
May 22, 1991, Ledyard
National Bank opens
Founding board members
seated outside the first
branch in Hanover
As new branches in
Lyme, NH and Norwich, VT
open, the Investment &
Trust Services division is
established
A branch dedicated to
banking and Investment
& Trust Services opens
in New London, NH
KwikNET, Ledyard’s internet
banking service, launches
The first drive-up
branch opens in
Hanover, NH
A year of significant
growth, a new branch
opens in West Lebanon,
NH; Ledyardbank.com
launches; telephone
bill-pay is introduced and
PC banking for business
clients launches
Expansion in the
Upper Valley continues
with a branch opening
in Lebanon, NH
Celebrating twenty-five years of serving the community
Ledyard Financial
Group, Inc. is formed as
the Holding Company for
Ledyard National Bank.
Ledyard stock trades under
ticker symbol, “LFGP”
2007
Ledyard Bank tops
100 employees
Ledyard rebrands the
organization with its Plan
Well. Live Well. campaign
Private Banking services
is introduced
Ledyard Financial Advisors
reaches $1.1 billion in
assets under management
and custody
The Investment & Trust
Services division evolves
into Ledyard Financial
Advisors and establishes
its headquarters in
Hanover, NH
Business NH Magazine
names Ledyard Bank as
its Financial Services
Business of the Year
Ledyard Bank celebrates
its 25th anniversary
52Y E A R S
C E L E B R A T I N G 2 5 Y E A R S
1
Celebrating twenty-five years of serving the community
TO OUR MANY CONSTITUENTS
including shareholders, valued clients and other community members
Kathryn G. Underwood,
President & CEO, Ledyard Financial
Group/Ledyard National Bank
Dennis E. Logue,
Chair, Ledyard Financial Group/
Ledyard National Bank
In 2016, Ledyard National Bank will celebrate its twenty-fifth anniversary—
a milestone that is a source of pride for the entire Ledyard family. We
will celebrate the history, culture and successes that have placed us in a
position to serve our clients for a quarter century and made us a profitable
investment for our shareholders.
Ledyard’s story began twenty-five years ago, when a few visionary residents
of the Upper Valley came together to imagine something that hadn’t been
here before—a leading, independent resource for accessible and highly
personalized banking, owned and operated by citizens of the community.
This entrepreneurial group of local business leaders envisioned a financial
institution that, unlike the few restrictive and inflexible large banks that
dominated the landscape at the time, would be known for delivering the
2
L E D Y A R D F I N A N C I A L G R O U P 2 0 1 5 A N N U A L R E P O R T
best products, services and advice that truly met the needs of their clients. Our
founders pictured an organization that was guided by a simple motto known
as “Banking the Way It Should Be,” a concept that still resonates today.
Soon thereafter, they formed Ledyard National Bank…with five employees
in the downtown Hanover basement of McLaughry’s Real Estate office!
While much has changed since we opened our doors two and a half decades
ago, the philosophy of personal, professional service that our employees
adhered to on opening day is still the cornerstone of Ledyard’s business. The
culture that we nourished through the years is still rooted in relationships,
partnerships and client education. Therefore, it was only natural to build
upon our strong foundation by introducing the Ledyard tagline, “Plan Well.
Live Well.” as part of our twentieth anniversary celebration. Its purpose was
to better articulate what we strive to achieve for our clients, while paying
respect to the principles that contributed to our past success. We believe
that by understanding what’s most important to individuals and their
families, we’re perfectly positioned to deliver precisely what they need and
want at all stages of their financial lives. “Plan Well. Live Well.” is a promise
to our clients. It tells them that we are committed to educating, advising
and guiding them, as we plan their financial lives together.
A handful of original employees are still with us today. They sometimes
talk about the excitement they felt in those first few months, bringing in
$1 million per week in deposits and realizing that the mission in which
they believed resonated powerfully with the broader community. Even
then, it was difficult to foresee what Ledyard would achieve in the coming
LETTER FROM THE CEO & BOARD CHAIR years. With over $400 million in total bank assets and over $1 billion in
seek new and innovative ways to improve profitability and
assets under management by our Wealth Management division, we’ve truly
enhance shareholder value.
evolved into a premier financial services company that operates across the
Upper Valley, Lake Sunapee Region, nationally and internationally.
We will continue to be an organization that prepares
its constituents for the future instead of borrowing
against it.
We report to you, against this backdrop, that 2015 was a year of
significant accomplishments marked by record net income for the
second consecutive year. Ledyard Financial Group’s 2015 financial
highlights include the following:
n Increased net income to $4.0 million, an increase of 2.3% and a
record high
n Grew revenue to $22.9 million, an increase of 1.3% and an all-time high
We are proud of our many accomplishments and the people that helped
n Increased the dividend to common shareholders by 11.6% to $1.92 per
define Ledyard’s history. There are too many, in fact, to list in these pages.
share; Ledyard has been able to maintain or increase the quarterly dividend
Even more exciting to us than what Ledyard has done up until now, is what
since first declaring one in 1995
we will do in the years to come. In many respects, our journey is really just
beginning. We understand that it is up to us to write the next chapters
of the Ledyard story and build upon our success. Our goals are ambitious,
yet attainable—we will help our clients achieve their dreams and reinvent
what is possible. We will ensure that those accumulated dreams create a
community of inclusivity and opportunity that otherwise would not exist
without our help. We will work with non-profit partners to improve lives
throughout our region, inspiring others to think about the needs of their
fellow citizens. We will continue to be an organization that prepares its
constituents for the future instead of borrowing against it. Finally, we will
n Increased earnings per share by $0.06 to $3.96 per share
n Our regulatory capital ratios remained well in excess of the amount
required to be considered well-capitalized, the highest designation possible
These full-year results demonstrate the strength of a strategic plan that is
based on controlling what is in our power to control and has allowed us
to realize steady long-term profitable growth. In May, Ledyard was named
in American Banker Magazine’s list of top 200 publicly traded community
banks in the United States, based on three-year return on average
equity. Inclusion in this exclusive list of banks, along with Ledyard’s
C E L E B R A T I N G 2 5 Y E A R S
3
LETTER FROM THE CEO & BOARD CHAIR consistent financial accomplishments
through a multitude of challenging economic
environments, is a testament to the soundness
of our strategic direction, flexibility to
navigate a variety of market dynamics and
vision to create long-term value for our
shareholders. Our priorities include deepening
client relationships, increasing fee income,
Critical to our success across
all priorities is the capability
and security of our information
systems, as well as the effectiveness
of our internal processes.
ourselves from our competitors through client
engagement. In the last few months, we’ve
accelerated our digital transformation efforts,
developing superior mobile and online banking
functionality in order to serve the needs
of those clients who no longer rely solely
on our branches. The result is a brand new
responsive design website that is completely
improving operating efficiency, reducing
us to execute targeted marketing campaigns
flexible regardless of device. In other words,
exposure to risky investments and expanding
and better serve our clients. These tools
our website now detects a viewer’s screen
market share.
Critical to our success across all priorities is
the capability and security of our information
systems, as well as the effectiveness of our
internal processes. The work we’ve undertaken
improved our ability to connect the right
client with the right product at the right
size and orientation and changes the layout
accordingly to provide an optimal viewing and
time, substantially increasing the relevance
interactive experience. Whether viewed from
of the specific interaction and the relationship
a desktop computer, laptop, mobile phone or
as a whole.
thus far to improve our technology, enhance
While investing in technology has been
our data infrastructure and broaden our
critical for deepening insights into consumer
knowledge base has been the central
demands, it has also become an increasingly
ingredient enabling us to serve our clients
important element in helping us deliver a
more efficiently, while providing them with
banking experience with exceptional service
the products and services they need to meet
every time, across every channel. In an
their financial objectives. This past year, we
industry built around products and services
leveraged cutting-edge customer information
that are primarily the same from one provider
tools to enhance our data analytics, allowing
to the next, we’ve sought to differentiate
4
L E D Y A R D F I N A N C I A L G R O U P 2 0 1 5 A N N U A L R E P O R T
tablet, our enhanced website is easy to read
and navigate with a minimum of resizing,
panning and scrolling. We are applying
these same principles to our online banking
platform, creating a consistent look and feel
for clients accessing their accounts from
their desktops, cell phones or other devices.
All in all, our digital initiatives are allowing
customers to more easily manage money
on-the-go and be more productive in their
daily lives.
LETTER FROM THE CEO & BOARD CHAIR In addition to concentrating on the client
transfer funds from their bank accounts to
experience as a primary differentiator, we
another individual’s account via the internet
also pay careful attention to our product and
or mobile phone. Additionally, we are planning
service offerings, ensuring that we remain
to roll out instant debit card issuance services
modern, relevant and competitive with other
that will allow us to provide clients with new
financial institutions. To that end, we are in
or replacement debit cards on the spot, in
the process of rolling out several new services
our branches. All three of these services are
that make banking with Ledyard even easier.
examples of how we are making it even more
One of those services is called Mobile Remote
convenient to do business with Ledyard. It
Deposit Capture. In simplest terms, this
is important to note that the technology we
service allows clients to scan checks with a
embrace complements the myriad of other
cell phone’s camera and transmit the scanned
ways that we interact with clients, ranging
images to Ledyard for deposit. A second
from in-branch servicing and face-to-face
Darcy Rogers, Ledyard’s Senior Vice President and
Director of Operations, presented tips on combatting
cybercrime to attendees of Ledyard’s Leading
Women education program.
example is called person-to-person payments,
meetings to mobile banking and video
better detect and defend Ledyard against
or P2P. This technology allows clients to
conferencing.
The technology we embrace
complements the myriad of other
ways that we interact with clients,
ranging from in-branch servicing
and face-to-face meetings to mobile
banking and video conferencing.
These improvements in technology, designed
to deliver unprecedented convenience and
efficiency, are balanced against a growing
cybersecurity concern. From petty criminals
using home computers to organized networks
of hackers, cybercrime is a serious threat that
demands increased investments in information
security hardware, software, services, training
and testing. These investments serve to
sophisticated electronic attacks that attempt
to penetrate the bank’s systems and steal its
data, including private client information. In
this respect, we long for the days in which
bank security primarily involved guards,
armored vehicles and steel vaults. Wishful
thinking aside, we continue to hone our
security protocols. For example, we are in
the process of providing our clients with new
chip-enabled debit cards that offer greater
security against fraud and identity theft.
C E L E B R A T I N G 2 5 Y E A R S
5
LETTER FROM THE CEO & BOARD CHAIR L E T T E R F R O M T H E C E O & B O A R D C H A I R
Another core element of Ledyard’s mission is community support.
Our civic involvement is built upon a charitable giving program that
allows us to impact our neighbors in ways that go beyond day-to-day
business activities. We play an important role in helping local charitable
organizations throughout our communities stay vibrant and successful.
Working together with our non-profit partners, we help advance the
causes of education, contribute to improving human services, such as
the health and well-being of children and adults, provide community
development resources and advance the arts and humanities.
Ledyard is a proud contributor to Northern Stage’s capital campaign, enhancing
community theater in the Upper Valley. Pictured at the Hard Hat Tour (l-r) Dennis
Mitchell; Rick Roesch, Campaign for Northern Stage co-Chair (and former Ledyard
Board Member); Eric Bunge, Northern State Managing Director; and Kathy Underwood.
6
L E D Y A R D F I N A N C I A L G R O U P 2 0 1 5 A N N U A L R E P O R T
We help advance the causes of education, contribute
to improving human services such as the health
and well-being of children and adults, provide
community development resources and advance
the arts and humanities.
A critical component of our charitable giving program is focused on
addressing the hardships and challenges faced by our neighbors in need
of financial support. Thus, we allocate at least one-third of our total
contributions budget to organizations that address the needs of those in
the low-to-moderate income segment of our communities. Ledyard’s work
in this area reflects the values that the bank was built upon and that we
perpetuate to this day.
Our largest philanthropic activity of 2015 was, once again, a joint effort
with the American Heart Association (AHA). As we reported to you last
year, Ledyard began its affiliation with the AHA by promoting a campaign
called “Go Red for Women.” Go Red is a movement to help dispel the
myths and raise awareness of heart disease as the number one killer
of women. Our campaign objectives were to foster that awareness,
encourage action to save more lives and share crucial information about
heart health, in general. Ledyard adopted this cause for a multitude of
reasons, including that the Go Red mission matched perfectly to Ledyard’s
inspirational tagline, “Plan well. Live well.” By educating the public
L E T T E R F R O M T H E C E O & B O A R D C H A I R
about heart disease, we believed that the increased awareness would
help members of our community live healthier, longer lives. Our award-
winning public relations activities were even honored by the New England
Financial Marketing Association, recognizing “companies that went the
extra mile and had the courage and vision to move outside the status quo.”
Our vision for community wellness did not end with the Go Red campaign.
We created and managed the first annual Ledyard Live Well Walking Challenge—
a “healthy competition” among local organizations. Understanding the
importance of exercise on heart health and realizing that we needed to do
Walking Challenge team members on a stroll through Hanover
more than simply raise awareness, we invited three local companies to join us
in a four-week challenge to determine which company could walk the most
steps. The final results were staggering—the 308 participants together walked
an astonishing 74,143,179 steps, equal to one and a half times around the
earth and lost nearly 1,000 pounds in the process! We can’t wait to launch
the second annual walking challenge in the fall of 2016. As a final note
regarding our commitment to heart health awareness, we took many steps
over the last few years to encourage, motivate and educate our employees
about the benefits of living a healthy lifestyle. With leadership from our
Wellness Committee, Ledyard met criteria across the lines of physical activity,
nutrition, smoking policy and workplace culture. The AHA recently recognized
our achievements, awarding us with the official designation of Gold Level
Ledyard employees showed their support for the American Heart Association
Fit-Friendly Worksite.
C E L E B R A T I N G 2 5 Y E A R S
7
LOOKING AHEAD TO 2016
As always, we are energized by the opportunity and potential we have
We are one year further into the execution of our strategic plan and,
in this organization. A few of our key goals include the following:
as we’ve described in the preceding pages, we continue to make
n Continue to improve key financial metrics and increase profitability
n Remain focused on growing core revenue and improving efficiency
n Grow our dividend steadily and share Ledyard’s success with our
shareholders
n Serve the core financial needs of our clients
n Introduce new, simple and easy-to-understand products that, together
with our current offering, will serve the full spectrum of client needs
n Manage risk with appropriate controls, continue to improve credit
quality and ensure that risk management capabilities are in line
with regulatory expectations
n Maintain strong capital and liquidity
n Further develop cybersecurity protocols
important progress in an increasingly regulated, competitive and dynamic
environment. While the banking landscape transitions around us, our
strategic goals remain unchanged. We understand that banking is an
advice and service business, not a product business. We are supported
by great people, powerful relationships, a strong heritage and a relevant
brand. We remain focused on the long term and the things we can
control, such as reducing expenses, growing loans and attracting new
wealth management clients. Our prudent banking policies, strong capital
position and sound investment strategy has positioned Ledyard well for
the future.
Thank you to our shareholders, clients, employees and board members for
their trust, support and confidence in our company. You have been, and
will continue to be, the key to Ledyard’s success.
n Invest in our people so they can reach their full potential, while
attracting prospective employees who want to excel and grow
KATHRYN G. UNDERWOOD
PRESIDENT & CEO
LEDYARD FINANCIAL GROUP/
LEDYARD NATIONAL BANK
DENNIS E. LOGUE
CHAIR
LEDYARD FINANCIAL GROUP/
LEDYARD NATIONAL BANK
8
L E D Y A R D F I N A N C I A L G R O U P 2 0 1 5 A N N U A L R E P O R T
LETTER FROM THE CEO & BOARD CHAIR
2015 ACHIEVEMENTS
Named in American Banker Magazine’s list of
TOP
200
publicly traded community banks in the
United States
Jeff Marks (left), Ledyard’s Senior Vice
President & Chief Marketing Officer,
accepting the New England Financial
MARKETING
AWARD
for Ledyard’s public relations
campaign about heart health
Voted winner
in the Best Financial Planning Service category
Kathy Underwood, President & CEO, accepting the
New Hampshire Bankers Association’s
Community Banker
of the Year Award
Recognized by the American Heart Association as a
GOLD LEVEL
Fit-Friendly organization
Voted winner in the
BEST FINANCIAL
SERVICES
category by Valley Business
Journal readers
C E L E B R A T I N G 2 5 Y E A R S
9
“ Ledyard Financial advisors is the perfect, complete wealth
management firm for me, from overseeing my investments,
preparing my tax returns, or even handling those “what do
I do with these?” documents. Their first-class service makes
me feel secure, supported and valued, allowing me to be
confident in living my life as I imagined.
I appreciate Ledyard’s educational component, developing
and hosting luncheons designed to inform interested female
clients about issues relating to everything from estate
planning documents we should consider to helping us
maintain good health.
I don’t know of any other bank that focuses more on the
needs of women, without, of course, neglecting the needs of
men. Other women, if they are anything like me, feel like
Ledyard always treats women as first-class citizens in
their own right.
In addition, Ledyard is extremely community focused and
generous in supporting the local organizations that help our
community thrive!”
Barb Jones, Financial Advisors client
W E A L T H M A N A G E M E N T
1 0
L E D Y A R D F I N A N C I A L G R O U P 2 0 1 5 A N N U A L R E P O R T
LETTER FROM THE CEO & BOARD CHAIR Ledyard Financial Advisors is the premier wealth
THIRTEEN WEALTH MANAGEMENT ISSUES
management firm providing integrated investment,
tax and wealth management services to affluent
individuals and families throughout the Upper
Valley and Lake Sunapee Region, with the mission
of preserving and enhancing our clients’ wealth.
We offer a unique combination of global investment
opportunities, asset management strategies, expert
financial advice and personal service and support.
These services are provided by the area’s largest and
most experienced staff of financial advisors and
portfolio managers utilizing a framework of potential
wealth management issues.
Our approach to providing these services is driven by
the needs of our clients and their families. It is our only
focus and we dedicate the time necessary to evaluate
their current situations and family dynamics. Only then
Distribution
of Wealth
Investments
Executor/Trustee
Retirement Plans
& IRAs
Titling of Assets
Charitable Giving
Taxes
Banking
Family Gifting
Financial Planning
Durable Power
of Attorney
Business
Succession
Insurance
LEDYARD FINANCIAL ADVISORS 2015 HIGHLIGHTS:
n Generated $8.4 million in revenue, an increase
of 3.3% and a record high
do we develop a comprehensive program to meet their
n Added approximately $114 million in new assets,
specific and unique needs, based on thirteen critical
resulting in gross new business revenue of $720K
wealth issues.
n Ended the year with over $1 billion in assets under
management and custody for the third year in a row
C E L E B R A T I N G 2 5 Y E A R S
11
LETTER FROM THE CEO & BOARD CHAIR “ While managing our dermatology practice and
patient responsibilities, we needed to find a bank
that we could count on to oversee our finances
while understanding our goals. Working with
Ledyard’s Private Banking division over the last
two years has been the perfect fit. We worked
closely with Ledyard to have our mortgage,
home equity line of credit, and our investments
all in one place. With the first-class service and
attention to detail we have grown to expect from
Ledyard Private Banking, we have the freedom
and peace of mind to focus on our patient care,
knowing that they are taking care of us.”
Dr. Michael Shane Chapman and Dr. Nicole Pace
Private Banking clients
P R I V A T E B A N K I N G
1 2
L E D Y A R D F I N A N C I A L G R O U P 2 0 1 5 A N N U A L R E P O R T
The Private Banking group is designed to better service
PRIVATE BANKING 2015 HIGHLIGHTS:
our largest and most complex professional clients,
many of whom have atypical banking requirements
specific to their profession. These doctors, dentists,
professors, attorneys and other professionals are
n Originated $12.4 million in new residential
mortgages and $4.3 million in new home equity
lines of credit
provided a seamless banking experience with a single
n Opened 69 demand deposit accounts, collecting
point of contact that is designed to holistically match
$3.5 million in new retail deposit balances
their needs with the right products and services. From
coordinating a client’s personal banking and investment
strategies to providing the financial tools and guidance
to manage the business needs of a professional
practice, we strive to exceed our clients’ expectations
every day. Our ultimate goal is to provide an experience
that is comprehensive, aspirational and responsive in a
manner that is tailored to each client’s unique needs.
n Originated $1.4 million in new commercial loans
n Generated, along with Ledyard Financial Advisors,
$7.5 million in new investment assets
n Established relationships with 23 new professional
clients, their practices and their families
C E L E B R A T I N G 2 5 Y E A R S
1 3
“ Since choosing Ledyard as our banking partner five
years ago, Ledyard has worked hard to learn about
our business, our company and us as individuals. As
a result, the relationship has grown and developed in a
way that allows Ledyard to better support our efforts
and contribute to the growth and success of our business.
We recently expanded our lending relationship
with the bank, enabling us to purchase three
state-of-the-art pieces of equipment for our
manufacturing facility in West Lebanon,
New Hampshire. This new equipment has
brought our production capabilities to the
next level, has allowed us to significantly
reduce our energy consumption and improve
our efficiency, while decreasing waste and
improving our bottom line. Ledyard is
committed to helping us succeed and we
look forward to our ongoing relationship
with them as our business evolves.”
Steve and Scott Tassinari, Owners, Moto Tassinari
Personal and Business Banking clients
P E R S O N A L A N D B U S I N E S S B A N K I N G
1 4
L E D Y A R D F I N A N C I A L G R O U P 2 0 1 5 A N N U A L R E P O R T
Building relationships is central to the activities of
established a better understanding of local needs. This
Ledyard’s Personal and Business Banking teams. We
type of background knowledge is a valuable ingredient
invest in local families and businesses, while making a
in providing solutions that work best for both parties.
difference in the communities where we live and work.
It helps us assess the challenges and opportunities
Individuals and families alike have come to rely on
Ledyard’s Personal Banking group to provide the most
relevant financial advice, to offer customized solutions
to help attain their goals, or even to coordinate the
overall management of their finances. Others rely on us
for their mortgages, home equity loans, checking and
savings accounts and other banking solutions.
Local businesses look to Ledyard’s Business Banking
team for the loans and financial services they need to
thrive and create jobs, allowing us to put money back
to work in our local communities. Our experienced
Business Bankers are not just “lenders,” rather they
are true partners in growth and focus on strong
underwriting and credit management practices. Our
team is adept at guiding clients through financial
booms as well as through struggling economies. By
residing and working in the same community, we’ve
that the partnership will bring and strategize ways to
achieve success.
PERSONAL AND BUSINESS BANKING 2015
HIGHLIGHTS:
n Grew commercial loans outstanding by $3.9 million,
an increase of 2.6%
n Grew deposits by $7.8 million, an increase of 2.2%
n Grew net interest income by $102.2K, an increase
of 0.8%
C E L E B R A T I N G 2 5 Y E A R S
1 5
“ There are no words to describe how pleased we are
with our mortgage at Ledyard. We found their
team to be very helpful and prompt with follow
up during the process, and the experience was
absolutely wonderful and exceptional in every
way. Due to the responsiveness of Ledyard’s
mortgage department, we are in the midst of
moving all of our personal banking needs to
Ledyard and have become their community
ambassadors. Keep up the great work!”
Melanie Isett, Mortgage client
M O R T G A G E S A N D C O N S U M E R L E N D I N G
1 6
L E D Y A R D F I N A N C I A L G R O U P 2 0 1 5 A N N U A L R E P O R T
Ledyard’s Mortgage and Consumer Lending Team
We also serve as knowledge providers to our clients,
strives to provide clients with the best possible advice
ensuring that they understand what to expect
and solutions that meet their financing needs. The
throughout the loan process.
MORTGAGE AND CONSUMER LENDING
2015 HIGHLIGHTS:
n Closed 169 mortgages, totaling $35.1 million,
an increase of 2%
n Closed 59 Home Equities, totaling $9.2 million,
an increase of 25%
team’s expertise, along with Ledyard’s local decision-
making process, produces an incredibly easy and fast
experience for our clients.
Our monthly customer and realtor surveys, designed
to garner critical feedback on our mortgage process,
have been invaluable tools to help us better define our
overall service delivery and communication standards.
In the last year, we incorporated survey suggestions
that enhanced our brand, complemented many of our
other products and created powerful connections with
clients for whom a home purchase will likely be the
most important financial transaction of their lives. We
are committed to finding the best solutions for our
clients and exhaust all efforts to match each client
with the right products for his or her needs. In order to
do so, we listen carefully. We proactively communicate
with our clients and realtor partners to ensure the
service experience is beyond their expectations.
M O R T G A G E S A N D C O N S U M E R L E N D I N G
C E L E B R A T I N G 2 5 Y E A R S
1 7
F I N A N C I A L H I G H L I G H T S (dollars in thousands, except “Other data”)
YEARS-ENDED DECEMBER 31,
2015
2014
2013
2012
2011
FINANCIAL CONDITION DATA
Assets
Investments
Gross loans, including loans held-for-sale
Allowance for loan loss
Net loans, including loans held-for-sale
Deposits
Federal Home Loan Bank advances
Other borrowings and liabilities
Shareholders’ equity
OPERATING DATA
Net interest income
Ledyard Financial Advisors income
Other non-interest income
Total revenue
Provision for loan loss
Non-interest expense
Pre-tax income
Income taxes
Net income
OTHER DATA
Earnings per share, basic
Dividends per share
Dividend payout ratio
Tangible book value per share
Shares outstanding, net of treasury
Return on average assets
Return on average equity
Efficiency ratio
Stock price - high
- low
- average
Assets under management and custody (millions)
Equity-to-asset ratio
Allowance for loan losses to total loans
Net charge-offs (Recoveries)
Non-performing assets
Allowance for loan losses to non-performing assets
Texas Ratio
$ 446,070
141,598
276,673
(5,706)
270,967
372,937
14,000
15,085
44,048
$
12,827
8,437
1,722
22,986
0
17,811
5,174
1,113
4,061
$ 434,289
129,070
274,324
(5,744)
268,580
365,682
14,000
12,595
42,012
$
12,725
8,170
1,789
22,684
0
17,619
5,065
1,096
3,969
$ 409,516
137,826
245,097
(5,564)
239,534
342,245
15,029
14,072
38,170
$
11,490
7,579
1,479
20,548
0
16,626
3,922
913
3,009
$ 401,800
143,966
231,705
(5,656)
226,049
337,294
9,551
16,928
38,028
$
11,155
6,990
2,292
20,437
0
16,794
3,643
803
2,840
$ 390,442
140,755
216,496
(5,707)
210,789
312,526
19,859
21,088
36,970
$
11,442
6,856
1,991
20,289
675
16,260
3,354
745
2,609
$
$
3.96
1.92
48%
42.81
1,028,780
0.93%
9.26%
77.41%
60.00
46.25
49.88
1,071
9.55%
2.06%
$
37,335
$ 2,497,494
228%
5.59%
$
$
$
$
$
$
3.90
1.72
44%
41.19
1,019,888
0.94%
9.90%
77.58%
50.50
39.59
44.16
1,093
9.17%
2.09%
($ 179,903)
$ 2,254,786
255%
4.90%
$
$
$
$
$
$
2.98
1.44
49%
37.65
1,013,684
0.74%
7.90%
80.79%
42.00
34.35
38.30
1,064
8.99%
2.27%
$
92,030
$ 2,510,089
222%
5.84%
$
$
$
$
$
$
2.80
1.30
46%
37.72
1,008,271
0.72%
7.57%
82.05%
34.95
27.25
31.82
902
8.74%
2.44%
$
50,900
$ 2,298,030
246%
5.56%
$
$
$
$
$
$
2.56
1.24
49%
36.20
1,021,227
0.66%
7.40%
80.14%
36.00
29.00
31.78
895
9.48%
2.64%
$ 1,275,000
$ 5,267,024
108%
13.08%
$
$
$
$
1 8
Complete Ledyard Financial Group 2015 audited financial statements can be found under “Investor Relations” at ledyardbank.com.
S E N I O R M A N A G E M E N T T E A M As of Februar y 1, 2016
Front Row (l-r):
Jeffrey H. Marks
Senior Vice President & Chief Marketing Officer
Kathryn G. Underwood
President & Chief Executive Officer
Dennis B. Mitchell, CFP®
President & Managing Director, Ledyard Financial Advisors
Back Row (l-r):
Reginald E. Greene Jr.
Executive Vice President & Director, Lending and Credit
Gregory D. Steverson
Executive Vice President, Chief Operating Officer
& Chief Financial Officer
Kevin D. Kober
Senior Vice President & Senior Consumer/Mortgage Lending Officer
Barbara S. Graf
Senior Vice President & Human Resources Director
Darcy D. Rogers
Senior Vice President, Chief Information Officer
& Director of Operations
C E L E B R A T I N G 2 5 Y E A R S
C E L E B R A T I N G 2 5 Y E A R S
1 9
1 9
B O A R D O F D I R E C T O R S As of Februar y 1, 2016
Front Row (l-r):
Dennis E. Logue
Steven Roth Professor of Management Emeritus, Tuck School of
Business, Dartmouth College; Chair, Ledyard Financial Group
Kathryn G. Underwood
President and Chief Executive Officer, Ledyard Financial Group
Bayne Stevenson
President, Bayson Company
Margaret M. Rightmire
Consultant and Community Volunteer
Back Row (l-r):
Richard W. Couch, Jr.
Chairman of the Board, Hypertherm, Inc.
Andrew A. Samwick
Professor of Economics and Director,
Nelson A. Rockefeller Center at Dartmouth College
Robert O. Wetzel
Retired, Senior Partner, Accenture plc
Bruce P. King
President & Chief Executive Officer, New London Hospital
Cotton M. Cleveland
President, Mather Associates
Douglas G. Britton
Retired President, Britton Lumber Company, Inc.;
Secretary, Ledyard Financial Group
James W. Varnum
Retired President, Dartmouth-Hitchcock Alliance, Mary Hitchcock
Memorial Hospital; Co-Vice Chair, Ledyard Financial Group
Adam M. Keller
Chief of Strategy and Operations, The Dartmouth Institute for Health
Policy and Clinical Practice; Co-Vice Chair, Ledyard Financial Group
2 0
L E D Y A R D F I N A N C I A L G R O U P 2 0 1 5 A N N U A L R E P O R T
Cover: Features imagery from past annual report covers (various sources previously credited) in honor of our 25th anniversary
Interior: Jon Gilbert Fox, Zak Gourley, Ben DeFlorio, Northern Stage, Ledyard employees and courtesy photos
PHOTOGRAPHY CREDITS
Ledyard is committed to being the financial services institution of choice
by combining innovation with unparalleled personalized client service.
We offer our employees a challenging and rewarding work experience.
As a result of our efforts, Ledyard clients receive exceptional
financial services and our shareholders experience consistent returns.
PHOTOGRAPHY CREDITS
Cover: Features imagery from past annual report covers (various sources previously credited) in honor of our 25th anniversary
Interior: Jon Gilbert Fox, Zak Gourley, Ben DeFlorio, Northern Stage, Ledyard employees and courtesy photos
L EDYA RD NATI ON AL B AN K
HANOVER
38 S. MA IN S TRE ET 603.643.2244 LOBBY, WALK - U P & ATM
LEBA NON STREET AT PARK S TREE T 603.643.7457 LOB BY, DRIV E- UP & ATM
LEBANON
ROUTE 120 AT OL D E TNA ROA D 603.448.2220 LOBBY, DRI VE -U P & ATM
LYME
ON THE G REEN 603.795.2288 LOBBY & ATM
NEW LONDON
178 COUNTY ROAD 603.526.7725 LOBBY, DRIV E- U P & ATM
NORWICH, VERMONT
320 MAI N STREET 8 02.649.2050 L OB BY, DRI V E- U P & ATM
WEST LEBANON
67 MAI N STREE T 603.298.9 44 4 LOBBY, DRI V E- UP & ATM
KWIKNET INTERNET BANKING
ledyardbank.com
KWIKTEL PHONE BANKING
1.888.KW IKTE L (1.88 8. 59 4.5835 )
EQUAL HOUSING LENDER
MEMBER FDIC
L EDYA RD FINA N CIA L A DVI SOR S
HANOVER
2 MAP LE STREE T 6 03 .6 43 .0 04 4
NEW LONDON
178 COUNTY ROAD 603.526.9251
Personal and business banking relationships within the retail bank are subject to FDIC insurance coverage limits. Investment, tax and wealth management services offered by Ledyard Financial Advisors
are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by the Bank or any affiliate, and are subject to investment risk including the possible loss of principal amount invested.