Ledyard Financial Group Announces Strong Third Quarter 2025 Performance and Declares Quarterly Dividend
Ledyard Financial Group, Inc. , the holding company for Ledyard National Bank, reported another quarter of meaningful growth and financial progress as it released its results for the third quarter of 2025. The Company delivered improved earnings, continued balance sheet expansion, and further momentum across its integrated banking and wealth management businesses—underscoring the strength of the strategic transformation it began in early 2023.
For the third quarter of 2025, net income totaled $1.5 million, or $0.46 per share, representing a sequential improvement of 18% from the second quarter and more than double the earnings reported in the same period of the prior year. The Company’s earnings performance reflects sustained loan volume growth, a rise in net interest income, disciplined expense management, and ongoing expansion in wealth management revenue.
Leadership emphasized that the organization remains well capitalized, liquid, and positioned for continued execution of its long-term strategic plan. “As we cross the important milestone of $1 billion in total assets, we are entering the next phase of our growth with confidence,” said Peter Sprudzs, CFO. “We are particularly encouraged by the combination of strong earnings, a healthy margin, robust credit quality, and access to meaningful liquidity resources.”
CEO Josephine Moran noted that the results demonstrate the continued payoff from investments made in infrastructure, technology, markets, and talent. “Our banking and wealth management divisions are working more cohesively than ever,” she said. “We are building a sustainable engine for long-term growth that benefits our clients, team, shareholders, and the communities we serve.”
Quarterly Financial and Business Highlights
- Net income increased to $1.5 million, or $0.46 per share, up from $1.3 million ($0.39 per share) in Q2 2025 and $733 thousand ($0.22 per share) in Q3 2024.
- Total assets surpassed the $1 billion threshold, rising to $1.03 billion, up 3.6% from the prior quarter and 9.7% from a year ago.
- Gross loans reached $647.3 million, increasing 2.9% from Q2 2025 and 21.6% year-over-year, reflecting continued commercial and consumer lending activity.
- Client deposits excluding wealth funds grew 3.0% during the quarter and 4.8% since Q3 2024.
- Net interest margin (NIM) expanded to 2.54%, up seven basis points from Q2 2025 and 36 basis points from Q3 2024.
- Assets under management (AUM) totaled $2.27 billion, up 4.5% from Q2 2025 and 5.1% from the year-ago period.
- Wealth management revenue increased 4.3% from Q2 2025 and 21.1% year-over-year, illustrating strong momentum despite market volatility.
- The Company continued to improve its efficiency ratio, reaching 82.5%, marking the third consecutive quarter of year-over-year efficiency gains.
- The Board of Directors declared a quarterly dividend of $0.21 per share, payable December 12, 2025.
Detailed Financial Performance Analysis
Net Interest Income and Margin Growth
Net interest income rose to $6.2 million, up 7.7% from the second quarter and up 32% compared to the same quarter last year. The improvement reflects both strong earning asset growth and disciplined management of funding costs.
Net interest margin increased to 2.54%, driven in part by higher yields on earning assets, a modest decline in the cost of interest-bearing liabilities, and contributions from derivative hedge strategies. The reported margin does not include the advantageous tax-exempt impact of the Company’s $151.6 million municipal bond portfolio, which adds to overall profitability.
Provision for Credit Losses
The provision for credit losses totaled $88 thousand, consisting of additions to both the Allowance for Credit Losses and the reserve for unfunded commitments. Credit quality remains strong, with minimal net charge-offs and reserve coverage equal to 3.7x non-performing assets, reflecting a conservative and stable credit profile.
Continued Expansion in Wealth Management
Wealth management continues to serve as a meaningful contributor to diversified revenue.
- Wealth management revenue totaled $4.3 million, increasing 4.3% from Q2 and 21.1% from the prior year.
- Assets under management reached $2.27 billion, supported by both new client asset inflows and improved fee structure enhancements implemented earlier in 2025.
- Brokerage services also contributed revenue of $124 thousand, down from Q2 but meaningfully higher than the $8 thousand reported in Q3 2024.
The growth reflects deliberate investment in the advisory platform and heightened alignment between the Bank’s relationship banking model and the wealth management team’s planning-first service approach.
Expense Trends and Operating Efficiency
Non-interest expenses rose to $9.0 million, an increase driven partly by strategic investments including marketing tied to the launch of a new financial center in Bedford, New Hampshire, and ongoing expansion initiatives.
Despite the increase, the Company continues to make progress on improving operational efficiency. The efficiency ratio of 82.5% represents a 7–8% improvement compared to Q3 2024 and marks the third consecutive quarter of year-over-year efficiency gains—a sign that operating leverage is improving as revenue grows faster than expenses.
Loan and Balance Sheet Growth
Loan growth continues to be the primary driver of balance sheet expansion.
- Gross loans rose to $647.3 million, an increase of $18.0 million quarter-over-quarter.
- The loan portfolio is diversified, with strong performance across both retail and commercial segments.
- Credit reserves totaled $5.0 million, maintaining consistent reserve coverage ratios.
Client deposit balances also strengthened:
- Deposits excluding wealth funds increased $17.8 million during the quarter and $27.7 million year-over-year.
- Total client deposits including managed funds rose $29.5 million compared to Q2.
The Company maintains a diverse deposit base, with about 80% of deposits coming from retail clients and only 15% estimated uninsured deposits, supporting funding stability.
Ledyard also retains strong liquidity, with more than $254 million in available borrowing capacity from Federal Home Loan Bank and Federal Reserve sources.
Capital Position and Book Value
Shareholders’ equity totaled $59.4 million at quarter-end, up both sequentially and year-over-year.
Book value per share increased to $21.28 (excluding AOCI) and $17.16 (including AOCI), continuing an upward trend.
Capital ratios remain above regulatory well-capitalized thresholds, even as the Company continues to deploy balance sheet growth aligned with strategic expansion.
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