Ledyard Financial Group Earns a Record $2.5 Million, or $0.73 Per Diluted Share, in Q3 2026 and Declares Quarterly Cash Dividend of $0.21 Per Share
Loan growth and wider margins accompanied higher credit-loss provisions and increased wholesale funding.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Ledyard Financial Group (LFGP) reported record third-quarter 2026 net income of $2.5 million, supported by higher lending and wealth revenue. Net income rose 60.2% year over year and 42.0% sequentially. Diluted earnings per share reached $0.73, versus $0.52 in Q2 2026 and $0.46 a year earlier.
Net interest margin rose to 2.91%, from 2.81% sequentially and 2.54% a year earlier. Gross loans reached $803.2 million, while wealth management revenue rose 12.1% year over year to $4.8 million. The efficiency ratio improved to 74.02%, although nonrecurring revenue helped that result. Credit-loss provision increased to $471 thousand, and wholesale funding increased $55.1 million sequentially. The bank remained above well-capitalized thresholds despite lower risk-based capital ratios. Ledyard declared its unchanged $0.21 quarterly dividend, payable December 11 to holders of record November 20, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ3 net income reached $2.5 million, up 60.2% year over year and 42.0% sequentially.
- Moderate pointNet interest income before provision reached $7.626 million, versus $6.965 million sequentially and $6.174 million a year earlier.
- Moderate pointNet interest margin widened to 2.91%, versus 2.81% sequentially and 2.54% a year earlier.
- Moderate pointWealth management revenue reached $4.8 million, up 1.3% sequentially and 12.1% year over year.
- Moderate pointAssets under administration reached $2.59 billion, up 0.8% sequentially and 7.9% year over year.
- Moderate pointEfficiency ratio improved to 74.02%, versus 80.98% sequentially and 82.45% a year earlier; excluding nonrecurring items, approximately 77.2%.
- Moderate pointTotal assets reached $1.16 billion, up 8.8% sequentially and 13.2% year over year.
- Moderate pointGross loans reached $803.2 million, up 9.1% sequentially and 24.1% year over year.
- Moderate pointClient deposits excluding wealth funds rose $45.8 million sequentially and $72.5 million year over year.
- Moderate pointShareholders’ equity reached $64.9 million, up $13 thousand sequentially and 9.2% year over year.
13 minor points
- Minor pointQ3 diluted EPS rose to $0.73, versus $0.52 sequentially and $0.46 a year earlier.
- Minor pointAsset transactions contributed $374 thousand to non-interest revenue; related derivatives accounting reduced non-interest income by $31 thousand.
- Minor pointOngoing mortgage sale activity began, generating a gain of $8 thousand.
- Minor pointReturn on equity reached 15.08%, versus 10.94% sequentially and 10.31% a year earlier.
- Minor pointReturn on assets reached 0.90%, versus 0.66% sequentially and 0.58% a year earlier.
- Minor pointCommercial loans rose 17.0% year over year to $448.9 million.
- Minor pointResidential loans rose 36.0% year over year to $333.9 million.
- Minor pointConsumer loans rose 13.5% year over year to $20.4 million.
- Minor pointReadily accessible borrowing capacity exceeded $158.0 million at September 30, 2026.
- Minor pointBook value excluding accumulated other comprehensive income reached $22.85, versus $22.30 sequentially and $21.28 a year earlier.
- Minor pointBook value including accumulated other comprehensive income was $18.62, unchanged sequentially and above $17.16 a year earlier.
- Minor pointBank capital ratios remained above the Federal Reserve’s well-capitalized thresholds.
- Minor point. Forward-looking: it has not happened yet and may not happen.Ledyard is exploring wealth management partnerships to complement new business development.
Negative
- Moderate pointCredit-loss provision increased to $471 thousand, versus $271 thousand sequentially and $88 thousand a year earlier.
- Moderate pointNon-interest expense reached $10.1 million, up 0.8% sequentially and 11.6% year over year.
- Moderate pointWholesale borrowings and broker- or listing-channel deposits increased $55.1 million sequentially. 76% of market cap
- Moderate pointRisk-based capital ratio fell to 12.66%, from 13.67% sequentially and 13.72% a year earlier.
- Moderate pointAccumulated other comprehensive loss widened to $14.736 million, from $12.819 million sequentially and $14.286 million a year earlier.
8 minor points
- Minor pointQ3 net charge-offs totaled $279 thousand.
- Minor pointEffective tax rate increased to 19.6%, versus 16.4% sequentially and 16.1% a year earlier.
- Minor pointBrokerage commission revenue fell to $114 thousand, from $196 thousand sequentially and $124 thousand a year earlier.
- Minor pointWealth fund deposits declined $9.0 million sequentially and $5.1 million year over year.
- Minor pointAverage wholesale funding term shortened to 1.7 years, from 2.2 years at the previous quarter-end.
- Minor pointLeverage ratio was 6.76%, below 6.91% sequentially but above 6.72% a year earlier.
- Minor pointLoan-loss allowance covered 0.70% of loans, versus 0.73% sequentially and 0.69% a year earlier.
- Minor pointAllowance coverage of non-performing assets was 256%, versus 210% sequentially and 371% a year earlier.
AI-generated analysis. How Rhea-AI works. Not financial advice.
HANOVER, N.H., Oct. 30, 2026 (GLOBE NEWSWIRE) -- Ledyard Financial Group, Inc. (the “Company”, OTCQX®: LFGP), the holding company for Ledyard National Bank (the “Bank”), reported quarterly net income per diluted share of
“This quarter’s record earnings show that our investments and initiatives are paying off, and we expect that momentum to continue,” said Josephine Moran, CEO. “The third quarter earnings evidence how our focus on expanding revenue opportunities, enhancing profitability, and delivering greater operational efficiency through innovation and technology is working. We are getting great results leveraging ‘One Ledyard’ – our unique, comprehensive approach to building and deepening relationships. Wealth management remains an active area of growth for us, where we are exploring strategic partnerships to complement our ongoing new business development. As we enter the final quarter of the year, we are confident in the Company’s financial outlook while prioritizing our local communities and our people.”
“Reflecting the continued success of our investment strategy, net income reached a record high for the Company, up
Third Quarter 2026 Highlights
- Third quarter 2026 net income was
$2.5 million , or$0.73 per share, up$929 thousand from the third quarter of 2025 and up$731 thousand from the prior quarter. Q3 2026 results included growth in both net interest income and wealth management revenue compared to Q2 2026. - Total assets ended the quarter at
$1.16 billion , up$135.7 million or13.2% from a year ago and up$93.8 million , or8.8% from the prior quarter, primarily the result of strong loan growth.- Loans grew
$67.1 million or9.2% from the prior quarter and ended$154.7 million , or24.1% higher than a year ago. - Excluding funds from the wealth management business, third quarter client deposits increased
$45.8 million (7.2% ) compared to the prior quarter and$72.5 million (11.9% ) compared to the third quarter of 2025. Including wealth management balances, client deposits increased$36.8 million and grew$67.3 million over Q2 2026 and Q3 2025, respectively. - Net interest margin (NIM) was
2.91% , up 10 basis points from the prior quarter and up 37 basis points from the third quarter a year ago.
- Loans grew
- Assets Under Administration (AUA) ended the quarter at
$2.59 billion , up0.8% from$2.57 billion at the end of Q2 2026, and up7.9% from$2.40 billion at the end of Q3 2025. - Revenue from the wealth management business increased
$61 thousand (1.3% ) compared to the prior quarter, and$519 thousand (12.1% ) compared to the third quarter a year ago, reflecting the benefits of market performance and business development efforts. - The Company’s efficiency ratio was
74.0% for Q3 2026, compared to81.0% in Q2 2026 and82.4% in Q3 2025. - The Company declared a regular quarterly cash dividend of
$0.21 per share.
Income Statement Review
The Company generated a return on average common equity of
“Our net interest margin expanded during the quarter, driven by disciplined loan pricing, lower funding costs and a stronger deposit mix. Alongside solid balance sheet growth, this shows we are growing responsibly, not at the expense of margins, a strategy we remain committed to,” said Sprudzs.
Third quarter NIM improved to
Provision for credit losses was
Non-interest revenue for Q3 2026 totaled
- Wealth management revenue totaled
$4.8 million in Q3 2026, up$61 thousand or1.3% from Q2 2026, and up$519 thousand or12.1% from Q3 2025.- Assets Under Administration (AUA) ended the quarter at
$2.59 billion , up0.8% from$2.57 billion at the end of Q2 2026, and up7.9% from$2.40 billion at the end of Q3 2025.
- Assets Under Administration (AUA) ended the quarter at
- Net revenue from brokerage commissions in Q3 2026 was
$114 thousand , down from$196 thousand in Q2 2026 and$124 thousand in Q3 2025. - Non-interest revenue included
$174 thousand in swap gain revenue, related to a loan payoff and refinancing. The sale of a portion of a bank-owned building no longer in use generated a gain of$1.1 million ; that gain was largely offset by losses on the sale of available-for-sale securities and certain residential loans. The net effect of these transactions contributed$374 thousand to non-interest revenue, and reduced non-interest income by$31 thousand due to related derivatives accounting impacts. - Separately, the company initiated ongoing mortgage sale activity, generating a gain of
$8 thousand .
“We continue to focus on the mix of the balance sheet,” said Sprudzs. “During the quarter we sold
Non-interest expense in Q3 2026 was
The Company’s efficiency ratio declined to
The Company’s investments in Low Income Housing Tax Credits and tax-exempt municipal bonds continue to provide tax benefits. In Q3 2026, the net tax expense was
Balance Sheet Review
The Company’s total assets at September 30, 2026 were
Gross loans increased
“Loan growth during the quarter reflects our disciplined approach to balance sheet management. We have demonstrated our capacity to grow loans prudently, and we remain committed to expanding our retail funding base in step with that growth,” said Sprudzs.
Credit reserves totaled
Client deposits excluding wealth funds increased
The Company continues to focus on maintaining a robust liquidity profile, with a diverse deposit base of approximately
Quarter over quarter, the Company increased wholesale borrowings and deposits acquired through brokers or listing channels by
The Company has significant liquidity resources available to support operations, as it maintains good standing and extensive portfolios pledged at FHLB Boston and the Federal Reserve. The Company had over
On September 30, 2026, shareholders’ equity was
Capital Management
The Bank’s capital ratios continue to exceed the Federal Reserve’s well capitalized thresholds. As expected, capital ratios have declined over the past year due to strategic balance sheet growth. On September 30, 2026, the Company’s book value per share excluding and including AOCI stood at
Dividend Declaration
On October 29, 2026, the Board of Directors declared a regular quarterly cash dividend of
About Ledyard Financial Group
Ledyard Financial Group, Inc., headquartered in Hanover, New Hampshire, is the holding company for Ledyard National Bank, founded in 1991. Ledyard National Bank is a full-service community bank offering a broad range of banking, investment, and wealth management services.
Ledyard Financial Group, Inc. shares can be bought and sold through the NASD sanctioned OTCQX® Best Markets under the trading symbol LFGP. For additional information about the Company, stock activity, or financial results please visit the Investor Relations section of bank’s website (www.ledyard.bank).
Forward-Looking Statements
Forward-Looking Statements: Certain statements herein constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of Ledyard Financial Group, Inc.’s (the “Company’s”) management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, changes in interest rates; changes in general business and economic conditions (including inflation and concerns about liquidity) on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in customer behavior; turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in employment levels; increases in loan default and charge-off rates; decreases in the value of securities in the Company’s investment portfolio; fluctuations in real estate values; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; changes in loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, and future pandemics; changes in regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; and the risk that the Company may not be successful in the implementation of its business strategy. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.
Contact:
Peter J. Sprudzs, CFO
(603) 640-2743
Peter.sprudzs@ledyard.bank
| For the Three Months Ended | ||||||||||||||
| Income Statement (unaudited, | 9/30/2026 | 6/30/2026 | 9/30/2025 | |||||||||||
| Net interest income before provision | $ | 7,626 | $ | 6,965 | $ | 6,174 | ||||||||
| Provision for credit losses | 471 | 271 | 88 | |||||||||||
| Net interest income after provision | 7,155 | 6,694 | 6,086 | |||||||||||
| Wealth management revenue | 4,822 | 4,761 | 4,303 | |||||||||||
| Net Gain on Asset Sales | 556 | - | - | |||||||||||
| Other non-interest income | 638 | 647 | 498 | |||||||||||
| Total non-interest income | 6,016 | 5,408 | 4,801 | |||||||||||
| Total revenue | 13,171 | 12,102 | 10,887 | |||||||||||
| Non-interest expense | 10,098 | 10,020 | 9,049 | |||||||||||
| Pre-tax income | 3,073 | 2,082 | 1,838 | |||||||||||
| Tax expense | 602 | 342 | 296 | |||||||||||
| Net income | $ | 2,471 | $ | 1,740 | $ | 1,542 | ||||||||
| For the Three Months Ended | ||||||||||||||
| Other Operating Metrics | 9/30/2026 | 6/30/2026 | 9/30/2025 | |||||||||||
| Earnings per common share, basic | $ | 0.74 | $ | 0.52 | $ | 0.46 | ||||||||
| Earnings per common share, diluted | $ | 0.73 | $ | 0.52 | $ | 0.46 | ||||||||
| Dividends per common share | $ | 0.21 | $ | 0.21 | $ | 0.21 | ||||||||
| Return on assets | 0.90% | |||||||||||||
| Return on equity | 15.08% | |||||||||||||
| Net interest margin | 2.91% | |||||||||||||
| Efficiency ratio | 74.02% | |||||||||||||
| Balance Sheet (unaudited, | 9/30/2026 | 6/30/2026 | 9/30/2025 | |||||||||
| Investments & interest-bearing deposits | $ | 289,495 | $ | 274,459 | $ | 322,562 | ||||||
| Gross loans | 803,169 | 735,869 | 647,309 | |||||||||
| Allowance for credit losses | (5,636) | (5,391) | (4,442) | |||||||||
| Net loans | 797,533 | 730,478 | 642,867 | |||||||||
| Premises, equipment & other assets | 77,718 | 66,007 | 64,608 | |||||||||
| Total assets | $ | 1,164,746 | $ | 1,070,944 | $ | 1,029,037 | ||||||
| Client deposits | $ | 825,690 | $ | 788,896 | $ | 758,355 | ||||||
| Brokered & institutional deposits | 88,192 | 82,668 | 88,049 | |||||||||
| Borrowings | 155,166 | 105,586 | 92,982 | |||||||||
| Subordinated debt | 18,000 | 18,000 | 18,000 | |||||||||
| Other liabilities | 12,807 | 10,916 | 12,242 | |||||||||
| Total liabilities | 1,099,855 | 1,006,066 | 969,628 | |||||||||
| Capital | 81,565 | 79,635 | 75,339 | |||||||||
| Accumulated other comprehensive loss | (14,736) | (12,819) | (14,286) | |||||||||
| Treasury stock | (1,938) | (1,938) | (1,644) | |||||||||
| Total shareholders' equity | 64,891 | 64,878 | 59,409 | |||||||||
| Total liabilities and equity | $ | 1,164,746 | $ | 1,070,944 | $ | 1,029,037 | ||||||
| Other Metrics (as of stated date) | 9/30/2026 | 6/30/2026 | 9/30/2025 | |||||||||
| Book value per share (excluding AOCI) | $ | 22.85 | $ | 22.30 | $ | 21.28 | ||||||
| Book value per share (including AOCI) | $ | 18.62 | $ | 18.62 | $ | 17.16 | ||||||
| Leverage ratio | 6.76% | |||||||||||
| Risk based capital ratio | 12.66% | |||||||||||
| Allowance to total loans | 0.70% | |||||||||||
| Allowance to non-performing assets | 256% | |||||||||||
| Assets under management (billions) Custody Assets (billions) Other Wealth Assets (billions) Assets Under Administration (billions) | 0.220 0.128 | 0.223 0.116 | 0.234 0.091 | |||||||||
| Shares of common stock issued | 3,618,145 | 3,618,005 | 3,578,700 | |||||||||
| Treasury shares | 133,298 | 133,298 | 115,998 | |||||||||
| Stock price - high | $ | 22.50 | $ | 17.81 | $ | 14.30 | ||||||
| Stock price - low | $ | 17.98 | $ | 16.80 | $ | 13.35 | ||||||
| Stock price - average | $ | 21.44 | $ | 17.02 | $ | 13.93 | ||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Ledyard Financial Group’s Q3 2026 earnings?
Ledyard earned $2.5 million, or $0.73 per diluted share, in the quarter ended September 30, 2026. Net income increased 60.2% from the year-earlier quarter and 42.0% from Q2 2026.
When will LFGP pay its quarterly dividend, and how much is it?
Ledyard will pay its regular quarterly dividend of $0.21 per share on December 11, 2026, to shareholders of record November 20, 2026. The amount is unchanged from the preceding quarter and the year-earlier quarter.
Why did Ledyard sell securities and residential loans in Q3 2026?
Ledyard said the sales were intended to improve profitability by reducing higher-cost debt and replacing lower-yielding assets with assets at current market yields. The company sold $13.3 million in available-for-sale securities and $3.5 million in residential loans during the quarter.