Ledyard Financial Group Earns $1.5 Million, or $0.44 Per Diluted Share, in Q1 2026, Declares Quarterly Cash Dividend of $0.21 Per Share
Rhea-AI Summary
Ledyard Financial Group (OTCQX: LFGP) reported Q1 2026 net income of $1.5 million or $0.44 per diluted share, up 25% year-over-year and down versus the prior quarter. Total assets were $1.04 billion; gross loans were $684.6 million (up 12.5% YoY). Net interest margin widened to 2.75%. The board declared a quarterly cash dividend of $0.21 per share payable June 12, 2026. Capital ratios remain above regulatory "well-capitalized" thresholds and the company repurchased 13,100 shares in Q1.
Positive
- Net income +25% YoY to $1.5M in Q1 2026
- Gross loans +12.5% YoY to $684.6M at March 31, 2026
- Client deposits +11.6% YoY (excluding wealth funds)
- Declared dividend $0.21 per share payable June 12, 2026
- NIM expansion to 2.75% (up 22 bps YoY)
Negative
- Non-interest expense +19.1% YoY to $9.6M in Q1 2026
- Efficiency ratio 81.2% in Q1 2026, up from 80.7% a year ago
- Cash balances -35.0% QoQ from the prior quarter end
News Market Reaction – LFGP
In the May 1 session, LFGP declined 0.29%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
HANOVER, N.H., May 01, 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
“First quarter earnings were solid, reflecting the durability of the financial foundation we have worked deliberately to build over the past several years. Coming off an exceptional fourth quarter and a year that nearly doubled our net income, we are pleased with how the business has performed to start 2026. We remain focused on strengthening our credit profile, managing liquidity with discipline, and continuing to grow through the integration of our banking and wealth management businesses for the benefit of our clients, employees, shareholders, and the communities we serve,” said Josephine Moran, CEO.
“Net income for the first quarter rose
First Quarter 2026 Highlights
- First quarter 2026 net income was
$1.5 million , or$0.44 per share, up$296 thousand from the first quarter of 2025 and down$472 thousand from the prior quarter. Notably, Q4 2025 results included unusual wealth management revenues of approximately$400 thousand from an accounting change and the recording of an incentive fee earned over the prior six months from our brokerage partner. - Total assets ended the quarter at
$1.04 billion , up$68.5 million or7.0% from a year ago and down$15.9 million , or1.5% from the prior quarter. The year-over-year increase was driven primarily by loan growth.- Cash balances decreased
$27.5 million , or35.0% from the prior quarter and ended$16.0 million , or47.1% higher than a year ago. The decrease compared to the prior quarter end was primarily due to the paydown of maturing wholesale liabilities, growth in loans, and securities purchases. - Loans increased
$13.4 million or2.0% from the prior quarter and ended$75.3 million , or12.5% higher than a year ago. - Excluding funds from the wealth management business, client deposits increased
$12.4 million (1.9% ) in Q1 2026 and grew$67.7 million (11.6% ) from a year ago. Including wealth management balances, client deposits grew$776 thousand and$71.5 million over Q4 2025 and Q1 2025, respectively. - Net interest margin (NIM) was
2.75% , up 14 basis points from the prior quarter and up 22 basis points from the first quarter a year ago.
- Cash balances decreased
- Capital ratios continue to exceed regulatory well-capitalized minimums.
- Assets under management (AUM) ended the quarter at
$2.25 billion , down1.6% from Q4 2025 and up7.0% from Q1 2025. The decrease compared to the prior quarter end was primarily due to market declines. Revenue from the wealth management business decreased$398 thousand (8.1% ) compared to the prior quarter, primarily due to the absence in Q1 of approximately$400 thousand of unusual one-time revenue items recorded in Q4. Compared to the first quarter a year ago, revenue from wealth management increased$453 thousand (11.1% ) reflecting the benefit of market increases and business development efforts. - The efficiency ratio was
81.2% in Q1 2026, compared to78.2% in Q4 2025 and80.7% in Q1 2025. The efficiency ratio for Q4 2025 would have been81.0% , excluding the favorable one-time variances within the wealth management business. - 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
“Net interest margin expansion continued this quarter, up 14 basis points sequentially and 22 basis points compared to the same period last year, reflecting disciplined management of our funding costs alongside improving earning asset yields. We remain well positioned to benefit from future Fed rate reductions should the monetary policy environment shift,” said Sprudzs.
First quarter NIM improved to
Provision for credit losses was
Non-interest revenue for Q1 2026 totaled
- Wealth management revenue totaled
$4.5 million in Q1 2026, down$398 thousand or8.1% from Q4 2025, and up$453 thousand or11.1% from Q1 2025.- AUM ended the quarter at
$2.25 billion , down1.6% from$2.29 billion at the end of Q4 2025, and up7.0% from$2.10 billion at the end of Q1 2025. The decrease compared to the prior quarter was primarily due to stock market declines.
- AUM ended the quarter at
- Net revenue from brokerage commissions in Q1 2026 was
$192 thousand , up from$109 thousand in Q4 2025 and up from$106 thousand in Q1 2025.
Non-interest expense in Q1 2026 was
"Our efficiency ratio moved higher in the first quarter, reflecting seasonal factors and continued investment in process improvements. We remain committed to the disciplined expense management and process improvements that drove our progress throughout 2025 and are confident in our ability to return to a more favorable efficiency trajectory as earnings momentum builds through the year,” said Moran. The Company’s efficiency ratio was
The Company’s investments in Low Income Housing Tax Credits and tax-exempt municipal bonds continue to provide tax benefits. In Q1 2026, the net tax expense was
Balance Sheet Review
The Company’s total assets at March 31, 2026 were
Gross loans increased
“Our performance highlights the strength of our balance sheet strategy. Over the past year, we have continued to support loan growth primarily through deposit momentum and a more streamlined investment portfolio, while maintaining excellent credit quality,” 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 decreased 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 March 31, 2026, shareholders’ equity was
Capital Management
The Company’s capital ratios continue to exceed the Federal Reserve’s well capitalized thresholds for bank holding companies. As expected, capital ratios have declined over the past year due to strategic balance sheet growth. Minor methodology adjustments and the inclusion of a deferred tax asset deduction have resulted in a change to prior year Leverage Ratio presentation. On March 31, 2026, the Company’s book value per share excluding and including AOCI stood at
During the first quarter of 2026, the Company repurchased 13,100 shares of common stock at an average price of
Dividend Declaration
On April 30, 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.
| For the Three Months Ended | |||||||||||||
| Income Statement (unaudited, | 3/31/2026 | 12/31/2025 | 3/31/2025 | ||||||||||
| Net interest income before provision | $ | 6,730 | $ | 6,522 | $ | 5,566 | |||||||
| Provision for credit losses | 346 | 78 | 488 | ||||||||||
| Net interest income after provision | 6,384 | 6,444 | 5,078 | ||||||||||
| Wealth management revenue | 4,538 | 4,936 | 4,085 | ||||||||||
| Securities gains | - | (77 | ) | (105 | ) | ||||||||
| Other non-interest income | 573 | 494 | 451 | ||||||||||
| Total non-interest income | 5,111 | 5,353 | 4,431 | ||||||||||
| Total revenue | 11,495 | 11,797 | 9,509 | ||||||||||
| Non-interest expense | 9,612 | 9,290 | 8,071 | ||||||||||
| Pre-tax income | 1,883 | 2,507 | 1,439 | ||||||||||
| Tax expense | 381 | 533 | 233 | ||||||||||
| Net income | $ | 1,502 | $ | 1,974 | $ | 1,206 | |||||||
| For the Three Months Ended | |||||||||||||
| Other Operating Metrics | 3/31/2026 | 12/31/2025 | 3/31/2025 | ||||||||||
| Earnings per common share, basic | $ | 0.45 | $ | 0.59 | $ | 0.36 | |||||||
| Earnings per common share, diluted | $ | 0.44 | $ | 0.59 | $ | 0.36 | |||||||
| Dividends per common share | $ | 0.21 | $ | 0.21 | $ | 0.21 | |||||||
| Return on assets | 0.57 | % | 0.74 | % | 0.46 | % | |||||||
| Return on equity | 9.56 | % | 12.48 | % | 7.71 | % | |||||||
| Net interest margin | 2.75 | % | 2.61 | % | 2.53 | % | |||||||
| Efficiency ratio | 81.18 | % | 78.23 | % | 80.73 | % | |||||||
| Balance Sheet (unaudited, | 3/31/2026 | 12/31/2025 | 3/31/2025 | |||||||||
| Investments & interest-bearing deposits | $ | 299,422 | $ | 327,896 | $ | 305,722 | ||||||
| Gross loans | 684,559 | 670,761 | 608,472 | |||||||||
| Allowance for credit losses | (5,000 | ) | (4,594 | ) | (4,177 | ) | ||||||
| Net loans | 679,559 | 666,167 | 604,295 | |||||||||
| Premises, equipment & other assets | 64,452 | 65,272 | 64,914 | |||||||||
| Total assets | $ | 1,043,433 | $ | 1,059,335 | $ | 974,931 | ||||||
| Client deposits | $ | 797,669 | $ | 796,893 | $ | 726,190 | ||||||
| Brokered & institutional deposits | 81,615 | 82,330 | 69,591 | |||||||||
| Borrowings | 71,005 | 87,025 | 93,389 | |||||||||
| Subordinated debt | 18,000 | 18,000 | 18,000 | |||||||||
| Other liabilities | 11,991 | 12,596 | 10,599 | |||||||||
| Total liabilities | 980,280 | 996,844 | 917,769 | |||||||||
| Capital | 78,563 | 77,650 | 73,708 | |||||||||
| Accumulated other comprehensive loss | (13,548 | ) | (13,515 | ) | (14,902 | ) | ||||||
| Treasury stock | (1,862 | ) | (1,644 | ) | (1,644 | ) | ||||||
| Total shareholders' equity | 63,153 | 62,491 | 57,162 | |||||||||
| Total liabilities and equity | $ | 1,043,433 | $ | 1,059,335 | $ | 974,931 | ||||||
| Other Metrics (as of stated date) | 3/31/2026 | 12/31/2025 | 3/31/2025 | |||||||||
| Book value per share (excluding AOCI) | $ | 22.25 | $ | 21.96 | $ | 21.13 | ||||||
| Book value per share (including AOCI) | $ | 18.32 | $ | 18.06 | $ | 16.76 | ||||||
| Leverage ratio | 6.85 | % | 6.78 | % | 7.05 | % | ||||||
| Risk based capital ratio | 13.72 | % | 13.79 | % | 14.01 | % | ||||||
| Allowance to total loans | 0.73 | % | 0.68 | % | 0.69 | % | ||||||
| Allowance to non-performing assets | 293 | % | 368 | % | 346 | % | ||||||
| Assets under management (billions) | $ | 2.250 | $ | 2.286 | $ | 2.103 | ||||||
| Shares of common stock issued | 3,576,612 | 3,576,612 | 3,526,641 | |||||||||
| Treasury shares | 129,098 | 115,998 | 115,998 | |||||||||
| Stock price - high | $ | 17.49 | $ | 15.23 | $ | 15.50 | ||||||
| Stock price - low | $ | 14.95 | $ | 13.50 | $ | 14.13 | ||||||
| Stock price - average | $ | 16.57 | $ | 14.36 | $ | 14.82 | ||||||
Contact:
Peter J. Sprudzs, CFO
(603) 640-2743
Peter.sprudzs@ledyard.bank
