Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent
company of Lake City Bank, today reported net income of $20.1
million for the three months ended March 31, 2025, which
represents a decrease of $3.3 million, or 14%, compared with net
income of $23.4 million for the three months ended March 31,
2024. Diluted earnings per share were $0.78 for the first quarter
of 2025 and decreased $0.13, or 14%, compared to $0.91 for the
first quarter of 2024. On a linked quarter basis, net income
decreased $4.1 million, or 17%, to $24.2 million. Diluted earnings
per share decreased $0.16, or 17%, from $0.94 on a linked quarter
basis.
Pretax pre-provision earnings, which is a non-GAAP measure, were
$31.0 million for the three months ended March 31, 2025, an
increase of $1.7 million, or 6%, compared to $29.3 million for the
three months ended March 31, 2024.
“Our first quarter results are highlighted by double digit
growth in net interest income and strong net interest margin
expansion,” stated David M. Findlay, Chairman and CEO. “Further, we
continued to experience healthy loan growth that was funded with
equally positive deposit growth. The Lake City Bank team delivered
encouraging operating results in the quarter.”
Quarterly Financial Performance
First Quarter 2025 versus First Quarter 2024 highlights:
- Tangible book value per share grew by $1.80, or 7%, to
$26.85
- Average loans grew by $214.9 million, or 4%, to $5.19
billion
- Core deposits grew by $402.5 million, or 7%, to $5.83
billion
- Net interest margin improved 25 basis points to 3.40% versus
3.15%
- Net interest income increased by $5.5 million, or 12%
- Revenue grew by 6% from $60.0 million to $63.8 million
- Provision expense of $6.8 million, compared to $1.5
million
- Watch list loans as a percentage of total loans increased to
4.13% from 3.67%
- Pretax, pre-provision earnings increased by $1.7 million, or
6%
- Common equity tier 1 capital improved to 14.51%, compared to
14.21%
- Tangible capital ratio improved to 10.09%, compared to
9.80%
- Average equity increased by $51.0 million, or 8%
First Quarter 2025 versus Fourth Quarter 2024 highlights:
- Tangible book value per share grew by $0.38, or 1%, to
$26.85
- Average loans grew by $99.3 million, or 2%, to $5.19
billion
- Net interest margin improved 15 basis points to 3.40% versus
3.25%
- Net interest income increased by $1.2 million, or 2%
- Provision expense of $6.8 million, compared to $3.7
million
- Watch list loans as a percentage of total loans remained at
4.13%
- Pretax, pre-provision earnings decreased $1.9 million, or
6%
- Common equity tier 1 capital of 14.51%, compared to 14.64%
- Tangible capital ratio of 10.09%, compared to 10.19%
Capital Strength
The company’s total capital as a percentage of risk-weighted
assets improved to 15.77% at March 31, 2025, compared to
15.46% at March 31, 2024, and down from 15.90% at
December 31, 2024. These capital levels significantly exceeded
the 10.00% regulatory threshold required to be characterized as
“well capitalized” and reflect the company's robust capital
base.
The company’s tangible common equity to tangible assets ratio,
which is a non-GAAP financial measure, improved to 10.09% at
March 31, 2025, compared to 9.80% at March 31, 2024, and
down from 10.19% at December 31, 2024. Unrealized losses from
available-for-sale investment securities were $188.3 million at
March 31, 2025, compared to $189.9 million at March 31,
2024 and $191.1 million at December 31, 2024. Excluding the
impact of accumulated other comprehensive income (loss) on tangible
common equity and tangible assets, the company’s ratio of adjusted
tangible common equity to adjusted tangible assets, a non-GAAP
financial measure, improved to 12.19% at March 31, 2025,
compared to 12.03% at March 31, 2024, and down from 12.37% at
December 31, 2024.
As announced on April 8, 2025, the board of directors
approved a cash dividend for the first quarter of $0.50 per share,
payable on May 5, 2025, to shareholders of record as of
April 25, 2025. The first quarter dividend per share
represents a 4% increase from the $0.48 dividend per share paid for
the first quarter of 2024.
The board of directors also reauthorized and extended the
company's share repurchase program through April 30, 2027 with
remaining aggregate purchase price authority of $30.0 million. The
company anticipates activating the share repurchase program during
the second quarter of 2025.
Kristin L. Pruitt, President commented, “We believe that the
recent stock price performance, driven by the impact of tariff
activity, provides us with an opportunity to return capital to
shareholders at attractive prices through our repurchase plan.
Further, our strong capital levels continue to provide capacity for
organic loan growth in our Indiana markets. Our capital position
also supports our continued growth in the dividend paid to
shareholders.”
Loan Portfolio
Average total loans of $5.19 billion in the first quarter of
2025 increased $214.9 million, or 4%, from $4.97 billion for the
first quarter of 2024, and increased $99.3 million, or 2%, from
$5.09 billion for the fourth quarter of 2024. Total loans, net of
deferred loan fees, increased by $224.8 million, or 4%, from $5.00
billion as of March 31, 2024, to $5.23 billion as of
March 31, 2025. The increase in loans occurred across much of
the portfolio with our commercial real estate and multi-family
residential loan portfolio growing by $143.4 million, or 6%, our
commercial and industrial loan portfolio growing by $46.3 million,
or 3%, our consumer 1-4 family mortgage loans portfolio growing by
$39.7 million, or 9%, and our agri-business and agricultural loan
portfolio growing by $15.9 million, or 4%. These increases were
offset by a decrease to other commercial loans of $25.4 million, or
21%. On a linked quarter basis, total loans, net of deferred loan
fees, increased by $104.9 million, or 2%, from $5.12 billion at
December 31, 2024. The linked quarter increase was primarily a
result of growth in total commercial and industrial loans of $72.7
million, or 5%, growth in total commercial real estate and
multi-family residential loans of $28.3 million, or 1%, and growth
in our consumer 1-4 family mortgage loans portfolio of $10.0
million, or 2%.
Commercial loan originations for the first quarter included
approximately $365.0 million in loan originations, offset by
approximately $268.0 million in commercial loan pay downs. Line of
credit usage increased to 43% as of March 31, 2025, compared
to 39% at March 31, 2024 and 41% as of December 31, 2024.
Total available lines of credit contracted by $153.0 million, or
3%, as compared to a year ago, and line usage increased by $122.0
million, or 7%, over that period. The company has limited exposure
to commercial office space borrowers, all of which are in the
bank’s Indiana markets. Loans totaling $100.6 million for this
sector represented 2% of total loans at March 31, 2025, a
decrease of $1.1 million, or 1%, from December 31, 2024.
Commercial real estate loans secured by multi-family residential
properties and secured by non-farm non-residential properties were
approximately 214% of total risk-based capital at March 31,
2025.
“We are encouraged by the continued organic loan growth during
the quarter. In particular, we are pleased to see the upward trend
in commercial line utilization, which reached 43% in the first
quarter compared to 39% a year ago. Commercial and Industrial loan
growth was a highlight this quarter and positively impacted our
commercial line utilization,” added Findlay. “Linked quarter loan
growth was largely driven by expansion in working capital lines of
credit loans and construction and land development loans.”
Diversified Deposit Base
The bank's diversified deposit base has grown on a year over
year basis and on a linked quarter basis.
|
DEPOSIT DETAIL(unaudited, in
thousands) |
|
|
| |
March 31, 2025 |
|
December 31, 2024 |
|
March 31, 2024 |
|
Retail |
$ |
1,787,992 |
|
30.0 |
% |
|
$ |
1,780,726 |
|
30.2 |
% |
|
$ |
1,770,007 |
|
31.5 |
% |
| Commercial |
|
2,336,910 |
|
39.2 |
|
|
|
2,269,049 |
|
38.4 |
|
|
|
2,117,536 |
|
37.7 |
|
| Public funds |
|
1,709,883 |
|
28.7 |
|
|
|
1,809,631 |
|
30.7 |
|
|
|
1,544,775 |
|
27.5 |
|
| Core deposits |
|
5,834,785 |
|
97.9 |
|
|
|
5,859,406 |
|
99.3 |
|
|
|
5,432,318 |
|
96.7 |
|
| Brokered deposits |
|
125,409 |
|
2.1 |
|
|
|
41,560 |
|
0.7 |
|
|
|
185,767 |
|
3.3 |
|
| Total |
$ |
5,960,194 |
|
100.0 |
% |
|
$ |
5,900,966 |
|
100.0 |
% |
|
$ |
5,618,085 |
|
100.0 |
% |
| |
Total deposits increased $342.1 million, or 6%, from $5.62
billion as of March 31, 2024, to $5.96 billion as of
March 31, 2025. The increase in total deposits was driven by
an increase in core deposits (which excludes brokered deposits) of
$402.5 million, or 7%. Total core deposits at March 31, 2025
were $5.83 billion and represented 98% of total deposits, as
compared to $5.43 billion and 97% of total deposits at
March 31, 2024. Brokered deposits were $125.4 million, or 2%
of total deposits, at March 31, 2025, compared to $185.8
million, or 3% of total deposits, at March 31, 2024.
The increase in core deposits since March 31, 2024,
reflects growth in all three core deposit components. Commercial
deposits grew annually by $219.4 million, or 10%, to $2.34 billion.
Commercial deposits as a percentage of total deposits expanded to
39%, up from 38%. Public funds deposits grew annually by $165.1
million, or 11%, to $1.71 billion. Public funds deposits as a
percentage of total deposits was 29%, up from 28%. Growth in public
funds was positively impacted by the addition of new public funds
customers in the Lake City Bank footprint, including their
operating accounts. Retail deposits expanded by $18.0 million, or
1%, to $1.79 billion. Retail deposits as a percentage of total
deposits was 30% of total deposits, down from 32%.
On a linked quarter basis, total deposits increased $59.2
million, or 1%, from $5.90 billion at December 31, 2024, to
$5.96 billion at March 31, 2025. Core deposits decreased by
$24.6 million, or less than 1%, while brokered deposits increased
by $83.8 million, or 202%. The linked quarter reduction in core
deposits resulted primarily from a seasonal decrease in public
funds deposits of $99.7 million, or 6%. Offsetting this increase
was an increase in commercial deposits of $67.9 million, or 3%, and
an increase in retail deposits of $7.3 million, or less than
1%.
“Annual core deposit growth of 7% continues to provide liquidity
to fund loan growth. We continue to see opportunities to gain
market share in our Indiana footprint,” noted Lisa M. O’Neill,
Executive Vice President and Chief Financial Officer. “Our
diversified funding base is stable, and average checking account
balances continue to maintain liquidity in excess of pre-pandemic
levels.”
Average total deposits were $5.87 billion for the first quarter
of 2025, an increase of $244.3 million, or 4%, from $5.63 billion
for the first quarter of 2024. Average interest-bearing deposits
drove the increase in average total deposits and increased by
$260.1 million, or 6%. Contributing to the overall growth of
interest-bearing deposits was an increase to average
interest-bearing checking accounts of $439.5 million, or 14%.
Offsetting this increase was a reduction in average time deposits
of $167.7 million, or 17%, and a decrease to average savings
deposits of $11.8 million, or 4%. Average noninterest-bearing
demand deposits decreased by $15.8 million, or 1%.
On a linked quarter basis, average total deposits decreased by
$136.4 million, or 2%, from $6.01 billion for the fourth quarter of
2024 to $5.87 billion for the first quarter of 2025. Average
interest bearing deposits drove the decrease to total average
deposits, which decreased by $112.8 million, or 2%. Driving the
decrease to average interest bearing deposits were decreases to
total average time deposits of $102.7 million, or 11%, and interest
bearing checking accounts of $19.0 million, or 1%. Average
noninterest bearing demand deposits decreased by $23.6 million, or
2%.
Checking account trends as of March 31, 2025 compared to
March 31, 2024, include growth of $222.5 million, or 17%, in
aggregate public fund checking account balances, growth of $212.3
million, or 11%, in aggregate commercial checking account balances,
and growth of $35.5 million, or 4%, in aggregate retail checking
account balances. The number of accounts has also grown for all
three segments, with growth of 7% for public funds accounts, 2% for
commercial accounts and 1% for retail accounts during the prior
twelve months.
Deposits not covered by FDIC deposit insurance as a percentage
of total deposits were 57% as of March 31, 2025, compared to
62% at December 31, 2024, and 54% at March 31, 2024,
reflecting changes in core deposits and growth in public fund
deposits over those periods. Deposits not covered by FDIC deposit
insurance or the Indiana Public Deposit Insurance Fund (which
insures public funds deposits in Indiana), were 29% of total
deposits at March 31, 2025, compared to 32% at
December 31, 2024, and 27% at March 31, 2024. At
March 31, 2025, 98% of deposit accounts had deposit balances
less than $250,000.
Net Interest Margin
Net interest margin was 3.40% for the first quarter of 2025,
representing a 25 basis point increase from 3.15% for the first
quarter of 2024. This improvement was driven by a reduction in the
company’s funding costs, with interest expense as a percentage of
average earning assets falling by 45 basis points from 2.82% for
the first quarter of 2024 to 2.37% for the first quarter of 2025.
Offsetting the decrease in funding costs was a decrease to earning
asset yields of 20 basis points from 5.97% for the first quarter of
2024 to 5.77% for the first quarter of 2025.
Linked quarter net interest margin expanded by 15 basis points
to 3.40% for the first quarter of 2025, compared to 3.25% for the
fourth quarter of 2024. Interest expense as a percentage of average
earning assets decreased 19 basis points from 2.56% to 2.37% on a
linked quarter basis. Average earning asset yields decreased by 4
basis points from 5.81% to 5.77% on a linked quarter basis. The
easing of monetary policy by the Federal Reserve Bank, which began
in September of 2024, drove the reduction in funding costs that
provided for the net interest margin expansion through deposit
repricing. Notably, the deposit mix shift from noninterest bearing
deposits to interest bearing deposits experienced by the company
during the previous monetary tightening cycle has stabilized with
noninterest bearing deposits representing 22% of total deposits at
March 31, 2025, March 31, 2024 and December 31, 2024.
“We continue to see improvements in net interest margin due to
the Federal Reserve Bank’s rate easing cycle. Our deposit costs
have declined more than loan yields resulting in year over year
improvements in net interest margin of 25 basis points and linked
quarter improvements of 15 basis points,” stated O’Neill. “Net
interest margin expansion combined with healthy loan growth has
contributed to double digit growth in net interest income.”
The loan beta for the current rate-easing cycle is 37% compared
to the deposit beta of 55%. The cumulative loan beta, which
measures the sensitivity of a bank's average loan yield to changes
in short-term interest rates, was 56% for the recent
rate-tightening cycle. The cumulative deposit beta, which measures
the sensitivity of a bank's deposit cost to changes in short-term
interest rates, was 54% for the recent rate-tightening cycle.
Net interest income was $52.9 million for the first quarter of
2025, representing an increase of $5.5 million, or 12%, as compared
to the first quarter of 2024. Net interest income for the first
quarter of 2025 benefited from a decrease in deposit interest
expense of $4.7 million and a decrease in borrowings interest
expense of $1.3 million. Offsetting these effects on net interest
income was a decrease in loan interest of $910,000. On a linked
quarter basis, net interest income increased $1.2 million, or 2%,
from $51.7 million for the fourth quarter of 2024. On a linked
quarter basis, the increase to net interest income was driven by a
reduction in interest expense of $4.1 million and offset by a
reduction in interest income of $2.9 million.
Asset Quality
The company recorded a provision for credit losses of $6.8
million in the first quarter of 2025, an increase of $5.3 million,
as compared to $1.5 million in the first quarter of 2024. On a
linked quarter basis, the provision expense increased by $3.1
million, from $3.7 million for the fourth quarter of 2024.
Provision expense during the first quarter of 2025 was primarily
attributable to an increase in the specific allocation for the
previously disclosed $43.3 million nonperforming credit to an
industrial company in Northern Indiana.
The allowance for credit loss reserve to total loans was 1.77%
at March 31, 2025, up from 1.46% at March 31, 2024, and
1.68% at December 31, 2024. Net charge offs in the first
quarter of 2025 were $327,000 compared to $312,000 in the first
quarter of 2024 and $1.4 million during the linked fourth quarter
of 2024. Annualized net charge offs to average loans were 0.03% for
the first quarter of 2025, compared to 0.03% for the first quarter
of 2024, and 0.11% for the linked fourth quarter of 2024.
Nonperforming assets increased $42.6 million, or 280%, to $57.9
million as of March 31, 2025, versus $15.2 million as of
March 31, 2024. On a linked quarter basis, nonperforming
assets increased $1.0 million, or 2%, compared to $56.9 million as
of December 31, 2024. The ratio of nonperforming assets to
total assets at March 31, 2025 increased to 0.84% from 0.23%
at March 31, 2024, and decreased from 0.85% at
December 31, 2024. The increase in nonperforming assets was
primarily driven by the aforementioned credit.
Total individually analyzed and watch list loans increased by
$32.3 million, or 18%, to $215.6 million as of March 31, 2025,
versus $183.3 million as of March 31, 2024. On a linked
quarter basis, total individually analyzed and watch list loans
increased by $4.4 million, or 2%, from $211.1 million at
December 31, 2024. The linked quarter increase in total
individually analyzed and watch list loans was primarily driven by
the addition of five commercial relationships to the watch list
with aggregate balances of $11.5 million and offset by watch list
removals of two relationships with aggregate balances of $8.0
million. Watch list loans as a percentage of total loans were 4.13%
at March 31, 2025, an increase of 46 basis points compared to
3.67% at March 31, 2024, and unchanged from December 31,
2024.
“Asset quality remains stable with watch list loans as a
percentage of total loans at 4.13%,” commented Findlay. “It is
premature to comment on the impact of the tariff activity on our
borrowers’ businesses and we are actively talking with our clients
to understand the impact of this trade policy activity. As part of
our internal credit administration and loan review process, we
initiated a detailed plan to identify and analyze specific
industries and clients that may be more sensitive to the effects of
tariffs. As part of this process, our credit team is aggregating
and segmenting direct and indirect exposure that our commercial and
industrial borrowers have with international trading partners.”
Investment Portfolio Overview
Total investment securities were $1.13 billion at March 31,
2025, reflecting a decrease of $12.0 million, or 1%, as compared to
$1.14 billion at March 31, 2024. On a linked quarter basis,
investment securities increased $9.9 million, or 1%, due primarily
to security purchases of $22.2 million, offset by improvement in
the fair market value of available-for-sale securities of $2.8
million, and cash flows from calls, paydowns and maturities of
$14.7 million. Investment securities represented 17% of total
assets on March 31, 2025, March 31, 2024 and
December 31, 2024. The company anticipates receiving principal
and interest cash flows of approximately $82.3 million during the
remainder of 2025 from the investment securities portfolio and
plans to use that liquidity to fund loan growth and reinvestment of
investment securities cash flows. Tax equivalent adjusted effective
duration for the investment portfolio was 5.9 years at
March 31, 2025, compared to 6.6 years at March 31, 2024
and 6.0 years December 31, 2024.
Noninterest Income
The company’s noninterest income decreased $1.7 million, or 13%,
to $10.9 million for the first quarter of 2025, compared to $12.6
million for the first quarter of 2024. Adjusted core noninterest
income, a non-GAAP financial measure that excludes the effect of
the insurance recovery recorded during the first quarter of 2024,
was $11.6 million for the first quarter of 2024, a decrease of
$684,000, or 6%, compared to $10.9 million for the first quarter of
2025. Wealth advisory fees increased $412,000, or 17%, driven by
growth in customers and assets under management. Deposit fees
increased $83,000, or 3% driven primarily by growth in our treasury
management services. Other income decreased $1.3 million, or 61%.
Other income during the first quarter of 2024 benefited from a $1.0
million insurance recovery related to the wire fraud loss from 2023
and death benefits received from the company's bank owned life
insurance program. Bank owned life insurance income decreased
$714,000, or 69%, primarily due to a reduction in the market
performance of the company's variable bank owned life insurance
policies, which are tied to the equity markets.
Noninterest income for the first quarter of 2025 decreased by
$948,000, or 8%, on a linked quarter basis from $11.9 million
during the fourth quarter of 2024. Wealth advisory fees increased
by $168,000, or 6%. The linked quarter decrease in noninterest
income was impacted by a decrease in bank owned life insurance
income, which decreased $894,000, or 74%, due to market performance
of the company's variable bank owned life insurance policies.
“The growth of our wealth advisory business continues to
positively impact revenue growth with 17% improvement in fees on a
year over year basis,” added Findlay, “We continue to focus on our
fee-based businesses that contribute to noninterest income and
revenue growth.”
Noninterest Expense
Noninterest expense increased $2.1 million, or 7%, to $32.8
million for the first quarter of 2025, compared to $30.7 million
during the first quarter of 2024. Salaries and benefits expense
increased by $1.1 million, or 6%, driven by performance-based
incentive compensation expense of $1.3 million and salary expense
of $524,000. These increases were offset by reduced deferred
compensation expense of $687,000, which moves in tandem with the
market performance of the company's variable bank owned life
insurance. Other expense increased by $400,000, or 18%, from
increased customer reimbursements for counterfeit checks and
account takeover wire fraud losses. Data processing fees and
supplies expense increased $426,000, or 11%, from continued
investment in customer-facing and operational technology
solutions.
On a linked quarter basis, noninterest expense increased by $2.1
million, or 7%, from $30.7 million during the fourth quarter of
2024. Salaries and employee benefits increased by $641,000, or 4%,
due to merit-based increases for salaries, incentive pay, and
annual health insurance benefits that are funded at the beginning
of each year. Data processing fees and supplies expense increased
$523,000, or 14%. Corporate and business development expense
increased by $456,000, or 48%, which was primarily driven by an
increase in advertising expense of $462,000 during the quarter from
the company's seasonal promotional campaigns. Other expense
increased $228,000, or 9%.
The company’s efficiency ratio was 51.4% for the first quarter
of 2025, compared to 51.2% for the first quarter of 2024 and 48.2%
for the linked fourth quarter of 2024.
Information regarding Lakeland Financial Corporation may be
accessed on the home page of its subsidiary, Lake City Bank, at
lakecitybank.com. The company’s common stock is traded on the
Nasdaq Global Select Market under “LKFN.” Lake City Bank, a $6.9
billion bank headquartered in Warsaw, Indiana, was founded in 1872
and serves Central and Northern Indiana communities with 54 branch
offices and a robust digital banking platform. Lake City Bank's
community banking model prioritizes building in-market long-term
customer relationships while delivering technology-forward
solutions for retail and commercial clients.
This document contains, and future oral and written statements
of the company and its management may contain, forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 with respect to the financial condition, results
of operations, plans, objectives, future performance and business
of the company. Forward-looking statements, which may be based upon
beliefs, expectations and assumptions of the company’s management
and on information currently available to management, are generally
identifiable by the use of words such as “believe,” “expect,”
“anticipate,” “continue,” “plan,” “intend,” “estimate,” “may,”
“will,” “would,” “could,” “should” or other similar expressions.
The company’s ability to predict results or the actual effect of
future plans or strategies is inherently uncertain and,
accordingly, the reader is cautioned not to place undue reliance on
any forward-looking statements made by the company. Additionally,
all statements in this document, including forward-looking
statements, speak only as of the date they are made, and the
company undertakes no obligation to update any statement in light
of new information or future events. Numerous factors could cause
the company’s actual results to differ from those reflected in
forward-looking statements, including the effects of economic,
business and market conditions and changes, particularly in our
Indiana market area, including prevailing interest rates and the
rate of inflation; governmental trade, monetary and fiscal
policies; the risks of changes in interest rates on the levels,
composition and costs of deposits, loan demand and the values and
liquidity of loan collateral, securities and other interest
sensitive assets and liabilities; and changes in borrowers’ credit
risks and payment behaviors, as well as those identified in the
company’s filings with the Securities and Exchange Commission,
including the company’s Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q.
|
LAKELAND FINANCIAL
CORPORATIONFIRSTQUARTER2025FINANCIAL
HIGHLIGHTS |
|
|
| |
Three Months Ended |
| (Unaudited – Dollars in
thousands, except per share data) |
March 31, |
|
December 31, |
|
March 31, |
|
END OF PERIOD BALANCES |
|
2025 |
|
|
|
2024 |
|
|
|
2024 |
|
|
Assets |
$ |
6,851,178 |
|
|
$ |
6,678,374 |
|
|
$ |
6,566,861 |
|
|
Investments |
|
1,132,854 |
|
|
|
1,122,994 |
|
|
|
1,144,816 |
|
|
Loans |
|
5,223,221 |
|
|
|
5,117,948 |
|
|
|
4,997,559 |
|
|
Allowance for Credit Losses |
|
92,433 |
|
|
|
85,960 |
|
|
|
73,180 |
|
|
Deposits |
|
5,960,194 |
|
|
|
5,900,966 |
|
|
|
5,618,085 |
|
|
Brokered Deposits |
|
125,409 |
|
|
|
41,560 |
|
|
|
185,767 |
|
|
Core Deposits (1) |
|
5,834,785 |
|
|
|
5,859,406 |
|
|
|
5,432,318 |
|
|
Total Equity |
|
694,509 |
|
|
|
683,911 |
|
|
|
647,009 |
|
|
Goodwill Net of Deferred Tax Assets |
|
3,803 |
|
|
|
3,803 |
|
|
|
3,803 |
|
|
Tangible Common Equity (2) |
|
690,706 |
|
|
|
680,108 |
|
|
|
643,206 |
|
|
Adjusted Tangible CommonEquity (2) |
|
854,585 |
|
|
|
846,040 |
|
|
|
809,395 |
|
| AVERAGE
BALANCES |
|
|
|
|
|
|
Total Assets |
$ |
6,762,970 |
|
|
$ |
6,795,596 |
|
|
$ |
6,554,468 |
|
|
Earning Assets |
|
6,430,804 |
|
|
|
6,470,920 |
|
|
|
6,216,929 |
|
|
Investments |
|
1,136,404 |
|
|
|
1,134,011 |
|
|
|
1,158,503 |
|
|
Loans |
|
5,185,918 |
|
|
|
5,086,614 |
|
|
|
4,971,020 |
|
|
Total Deposits |
|
5,874,725 |
|
|
|
6,011,122 |
|
|
|
5,630,431 |
|
|
Interest Bearing Deposits |
|
4,616,381 |
|
|
|
4,729,201 |
|
|
|
4,356,328 |
|
|
Interest Bearing Liabilities |
|
4,716,465 |
|
|
|
4,729,206 |
|
|
|
4,532,137 |
|
|
Total Equity |
|
696,053 |
|
|
|
693,744 |
|
|
|
645,007 |
|
| INCOME STATEMENT
DATA |
|
|
|
|
|
|
Net Interest Income |
$ |
52,875 |
|
|
$ |
51,694 |
|
|
$ |
47,416 |
|
|
Net Interest Income-Fully Tax Equivalent |
|
53,983 |
|
|
|
52,804 |
|
|
|
48,683 |
|
|
Provision for Credit Losses |
|
6,800 |
|
|
|
3,691 |
|
|
|
1,520 |
|
|
Noninterest Income |
|
10,928 |
|
|
|
11,876 |
|
|
|
12,612 |
|
|
Noninterest Expense |
|
32,763 |
|
|
|
30,653 |
|
|
|
30,705 |
|
|
Net Income |
|
20,085 |
|
|
|
24,190 |
|
|
|
23,401 |
|
|
Pretax Pre-Provision Earnings (2) |
|
31,040 |
|
|
|
32,917 |
|
|
|
29,323 |
|
| PER SHARE
DATA |
|
|
|
|
|
|
Basic Net Income Per Common Share |
$ |
0.78 |
|
|
$ |
0.94 |
|
|
$ |
0.91 |
|
|
Diluted Net Income Per Common Share |
|
0.78 |
|
|
|
0.94 |
|
|
|
0.91 |
|
|
Cash Dividends Declared Per Common Share |
|
0.50 |
|
|
|
0.48 |
|
|
|
0.48 |
|
|
Dividend Payout |
|
64.10 |
% |
|
|
51.06 |
% |
|
|
52.75 |
% |
|
Book Value Per Common Share (equity per share issued) |
$ |
26.99 |
|
|
$ |
26.62 |
|
|
$ |
25.20 |
|
|
Tangible Book Value Per Common Share (2) |
|
26.85 |
|
|
|
26.47 |
|
|
|
25.05 |
|
|
Market Value – High |
$ |
71.77 |
|
|
$ |
78.61 |
|
|
$ |
73.22 |
|
|
Market Value – Low |
|
58.24 |
|
|
|
61.10 |
|
|
|
60.56 |
|
|
Basic Weighted Average Common Shares Outstanding |
|
25,714,818 |
|
|
|
25,686,276 |
|
|
|
25,657,063 |
|
|
Diluted Weighted Average Common Shares Outstanding |
|
25,802,865 |
|
|
|
25,792,460 |
|
|
|
25,747,643 |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Three Months Ended |
| (Unaudited – Dollars in
thousands, except per share data) |
March 31, |
|
December 31, |
|
March 31, |
| KEY
RATIOS |
|
2025 |
|
|
|
2024 |
|
|
|
2024 |
|
|
Return on Average Assets |
|
1.20 |
% |
|
|
1.42 |
% |
|
|
1.44 |
% |
|
Return on Average Total Equity |
|
11.70 |
|
|
|
13.87 |
|
|
|
14.59 |
|
|
Average Equity to Average Assets |
|
10.29 |
|
|
|
10.21 |
|
|
|
9.84 |
|
|
Net Interest Margin |
|
3.40 |
|
|
|
3.25 |
|
|
|
3.15 |
|
|
Efficiency (Noninterest Expense/Net Interest Incomeplus
Noninterest Income) |
|
51.35 |
|
|
|
48.22 |
|
|
|
51.15 |
|
|
Loans to Deposits |
|
87.64 |
|
|
|
86.73 |
|
|
|
88.95 |
|
|
Investment Securities to Total Assets |
|
16.54 |
|
|
|
16.82 |
|
|
|
17.43 |
|
|
Tier 1 Leverage (3) |
|
12.30 |
|
|
|
12.15 |
|
|
|
12.01 |
|
|
Tier 1 Risk-Based Capital (3) |
|
14.51 |
|
|
|
14.64 |
|
|
|
14.21 |
|
|
Common Equity Tier 1 (CET1) (3) |
|
14.51 |
|
|
|
14.64 |
|
|
|
14.21 |
|
|
Total Capital (3) |
|
15.77 |
|
|
|
15.90 |
|
|
|
15.46 |
|
|
Tangible Capital (2) |
|
10.09 |
|
|
|
10.19 |
|
|
|
9.80 |
|
|
Adjusted Tangible Capital (2) |
|
12.19 |
|
|
|
12.37 |
|
|
|
12.03 |
|
| ASSET
QUALITY |
|
|
|
|
|
|
Loans Past Due 30 - 89 Days |
$ |
4,288 |
|
|
$ |
4,273 |
|
|
$ |
3,177 |
|
|
Loans Past Due 90 Days or More |
|
7 |
|
|
|
28 |
|
|
|
7 |
|
|
Nonaccrual Loans |
|
57,392 |
|
|
|
56,431 |
|
|
|
14,762 |
|
|
Nonperforming Loans |
|
57,399 |
|
|
|
56,459 |
|
|
|
14,769 |
|
|
Other Real Estate Owned |
|
284 |
|
|
|
284 |
|
|
|
384 |
|
|
Other Nonperforming Assets |
|
193 |
|
|
|
143 |
|
|
|
78 |
|
|
Total Nonperforming Assets |
|
57,876 |
|
|
|
56,886 |
|
|
|
15,231 |
|
|
Individually Analyzed Loans |
|
81,346 |
|
|
|
78,647 |
|
|
|
15,181 |
|
|
Non-Individually Analyzed Watch List Loans |
|
134,218 |
|
|
|
132,499 |
|
|
|
168,133 |
|
|
Total Individually Analyzed and Watch List Loans |
|
215,564 |
|
|
|
211,146 |
|
|
|
183,314 |
|
|
Gross Charge Offs |
|
508 |
|
|
|
1,657 |
|
|
|
504 |
|
|
Recoveries |
|
181 |
|
|
|
299 |
|
|
|
192 |
|
|
Net Charge Offs/(Recoveries) |
|
327 |
|
|
|
1,358 |
|
|
|
312 |
|
|
Net Charge Offs/(Recoveries) to Average Loans |
|
0.03 |
% |
|
|
0.11 |
% |
|
|
0.03 |
% |
|
Credit Loss Reserve to Loans |
|
1.77 |
|
|
|
1.68 |
|
|
|
1.46 |
|
|
Credit Loss Reserve to Nonperforming Loans |
|
161.04 |
|
|
|
152.25 |
|
|
|
495.51 |
|
|
Nonperforming Loans to Loans |
|
1.10 |
|
|
|
1.10 |
|
|
|
0.30 |
|
|
Nonperforming Assets to Assets |
|
0.84 |
|
|
|
0.85 |
|
|
|
0.23 |
|
|
Total Individually Analyzed and Watch List Loans to Total
Loans |
|
4.13 |
% |
|
|
4.13 |
% |
|
|
3.67 |
% |
| OTHER
DATA |
|
|
|
|
|
|
Full Time Equivalent Employees |
|
647 |
|
|
|
643 |
|
|
|
628 |
|
|
Offices |
|
54 |
|
|
|
54 |
|
|
|
53 |
|
__________________________________________________
|
(1) |
|
Core deposits equals deposits less brokered deposits. |
|
(2) |
|
Non-GAAP financial measure - see “Reconciliation of Non-GAAP
Financial Measures”. |
|
(3) |
|
Capital ratios for March 31, 2025 are preliminary until the
Call Report is filed. |
|
|
|
|
| CONSOLIDATED BALANCE
SHEETS (in thousands, except share data) |
|
|
|
| |
March 31,2025 |
|
December 31,2024 |
| |
(Unaudited) |
|
|
| ASSETS |
|
|
|
|
Cash and due from banks |
$ |
89,325 |
|
|
$ |
71,733 |
|
| Short-term investments |
|
145,899 |
|
|
|
96,472 |
|
|
Total cash and cash equivalents |
|
235,224 |
|
|
|
168,205 |
|
| |
|
|
|
| Securities available-for-sale,
at fair value |
|
1,000,875 |
|
|
|
991,426 |
|
| Securities held-to-maturity,
at amortized cost (fair value of $109,481 and $113,107,
respectively) |
|
131,979 |
|
|
|
131,568 |
|
| Real estate mortgage loans
held-for-sale |
|
1,295 |
|
|
|
1,700 |
|
| |
|
|
|
| Loans, net of allowance for
credit losses of $92,433 and $85,960 |
|
5,130,788 |
|
|
|
5,031,988 |
|
| |
|
|
|
| Land, premises and equipment,
net |
|
60,797 |
|
|
|
60,489 |
|
| Bank owned life insurance |
|
113,826 |
|
|
|
113,320 |
|
| Federal Reserve and Federal
Home Loan Bank stock |
|
21,420 |
|
|
|
21,420 |
|
| Accrued interest
receivable |
|
28,818 |
|
|
|
28,446 |
|
| Goodwill |
|
4,970 |
|
|
|
4,970 |
|
| Other assets |
|
121,186 |
|
|
|
124,842 |
|
|
Total assets |
$ |
6,851,178 |
|
|
$ |
6,678,374 |
|
| |
|
|
|
| |
|
|
|
|
LIABILITIES |
|
|
|
| Noninterest bearing
deposits |
$ |
1,296,907 |
|
|
$ |
1,297,456 |
|
| Interest bearing deposits |
|
4,663,287 |
|
|
|
4,603,510 |
|
|
Total deposits |
|
5,960,194 |
|
|
|
5,900,966 |
|
| |
|
|
|
| Borrowings - Federal Home Loan
Bank advances |
|
108,200 |
|
|
|
0 |
|
| Accrued interest payable |
|
14,699 |
|
|
|
15,117 |
|
| Other liabilities |
|
73,576 |
|
|
|
78,380 |
|
|
Total liabilities |
|
6,156,669 |
|
|
|
5,994,463 |
|
| |
|
|
|
| STOCKHOLDERS’
EQUITY |
|
|
|
| Common stock: 90,000,000
shares authorized, no par value |
|
|
|
|
26,016,494 shares issued and 25,556,904 outstanding as of
March 31, 2025 |
|
|
|
|
25,978,831 shares issued and 25,509,592 outstanding as of
December 31, 2024 |
|
130,243 |
|
|
|
129,664 |
|
| Retained earnings |
|
743,650 |
|
|
|
736,412 |
|
| Accumulated other
comprehensive income (loss) |
|
(163,879 |
) |
|
|
(166,500 |
) |
| Treasury stock, at cost
(459,590 shares and 469,239 shares as of
March 31, 2025 and December 31, 2024, respectively) |
|
(15,594 |
) |
|
|
(15,754 |
) |
|
Total stockholders’ equity |
|
694,420 |
|
|
|
683,822 |
|
|
Noncontrolling interest |
|
89 |
|
|
|
89 |
|
|
Total equity |
|
694,509 |
|
|
|
683,911 |
|
|
Total liabilities and equity |
$ |
6,851,178 |
|
|
$ |
6,678,374 |
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME (unaudited - in
thousands, except share and per share data) |
| |
Three Months Ended March 31, |
|
|
|
2025 |
|
|
|
2024 |
|
| NET INTEREST
INCOME |
|
|
|
| Interest and fees on
loans |
|
|
|
|
Taxable |
$ |
81,740 |
|
|
$ |
82,042 |
|
|
Tax exempt |
|
292 |
|
|
|
900 |
|
| Interest and dividends on
securities |
|
|
|
|
Taxable |
|
3,389 |
|
|
|
3,039 |
|
|
Tax exempt |
|
3,910 |
|
|
|
3,947 |
|
| Other interest income |
|
1,124 |
|
|
|
1,106 |
|
|
Total interest income |
|
90,455 |
|
|
|
91,034 |
|
| |
|
|
|
| Interest on deposits |
|
36,458 |
|
|
|
41,164 |
|
| Interest on short-term
borrowings |
|
1,122 |
|
|
|
2,454 |
|
|
Total interest expense |
|
37,580 |
|
|
|
43,618 |
|
| |
|
|
|
| NET INTEREST
INCOME |
|
52,875 |
|
|
|
47,416 |
|
| |
|
|
|
| Provision for credit
losses |
|
6,800 |
|
|
|
1,520 |
|
| |
|
|
|
| NET INTEREST INCOME
AFTER PROVISION FOR CREDIT LOSSES |
|
46,075 |
|
|
|
45,896 |
|
| |
|
|
|
| NONINTEREST
INCOME |
|
|
|
| Wealth advisory fees |
|
2,867 |
|
|
|
2,455 |
|
| Investment brokerage fees |
|
452 |
|
|
|
522 |
|
| Service charges on deposit
accounts |
|
2,774 |
|
|
|
2,691 |
|
| Loan and service fees |
|
2,884 |
|
|
|
2,852 |
|
| Merchant and interchange fee
income |
|
822 |
|
|
|
863 |
|
| Bank owned life insurance
income |
|
322 |
|
|
|
1,036 |
|
| Mortgage banking income
(loss) |
|
(51 |
) |
|
|
52 |
|
| Net securities gains
(losses) |
|
0 |
|
|
|
(46 |
) |
| Other income |
|
858 |
|
|
|
2,187 |
|
|
Total noninterest income |
|
10,928 |
|
|
|
12,612 |
|
| |
|
|
|
| NONINTEREST
EXPENSE |
|
|
|
| Salaries and employee
benefits |
|
17,902 |
|
|
|
16,833 |
|
| Net occupancy expense |
|
1,980 |
|
|
|
1,740 |
|
| Equipment costs |
|
1,382 |
|
|
|
1,412 |
|
| Data processing fees and
supplies |
|
4,265 |
|
|
|
3,839 |
|
| Corporate and business
development |
|
1,406 |
|
|
|
1,381 |
|
| FDIC insurance and other
regulatory fees |
|
800 |
|
|
|
789 |
|
| Professional fees |
|
2,380 |
|
|
|
2,463 |
|
| Other expense |
|
2,648 |
|
|
|
2,248 |
|
|
Total noninterest expense |
|
32,763 |
|
|
|
30,705 |
|
| |
|
|
|
| INCOME BEFORE INCOME
TAX EXPENSE |
|
24,240 |
|
|
|
27,803 |
|
| Income tax expense |
|
4,155 |
|
|
|
4,402 |
|
| NET
INCOME |
$ |
20,085 |
|
|
$ |
23,401 |
|
| |
|
|
|
| BASIC WEIGHTED AVERAGE
COMMON SHARES |
|
25,714,818 |
|
|
|
25,657,063 |
|
| |
|
|
|
| BASIC EARNINGS PER
COMMON SHARE |
$ |
0.78 |
|
|
$ |
0.91 |
|
| |
|
|
|
| DILUTED WEIGHTED
AVERAGE COMMON SHARES |
|
25,802,865 |
|
|
|
25,747,643 |
|
| |
|
|
|
| DILUTED EARNINGS PER
COMMON SHARE |
$ |
0.78 |
|
|
$ |
0.91 |
|
| |
|
LAKELAND FINANCIAL CORPORATIONLOAN
DETAIL(unaudited, in thousands) |
|
|
| |
March 31,2025 |
|
December 31,2024 |
|
March 31,2024 |
| Commercial and industrial
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Working capital lines of credit loans |
$ |
716,522 |
|
|
13.7 |
% |
|
$ |
649,609 |
|
|
12.7 |
% |
|
$ |
646,459 |
|
|
12.9 |
% |
|
Non-working capital loans |
|
807,048 |
|
|
15.5 |
|
|
|
801,256 |
|
|
15.6 |
|
|
|
830,817 |
|
|
16.6 |
|
|
Total commercial and industrial loans |
|
1,523,570 |
|
|
29.2 |
|
|
|
1,450,865 |
|
|
28.3 |
|
|
|
1,477,276 |
|
|
29.5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Commercial real estate and
multi-family residential loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development loans |
|
623,905 |
|
|
12.0 |
|
|
|
567,781 |
|
|
11.1 |
|
|
|
659,712 |
|
|
13.2 |
|
|
Owner occupied loans |
|
804,933 |
|
|
15.4 |
|
|
|
807,090 |
|
|
15.8 |
|
|
|
833,410 |
|
|
16.7 |
|
|
Nonowner occupied loans |
|
852,033 |
|
|
16.3 |
|
|
|
872,671 |
|
|
17.0 |
|
|
|
744,346 |
|
|
14.9 |
|
|
Multifamily loans |
|
339,946 |
|
|
6.5 |
|
|
|
344,978 |
|
|
6.7 |
|
|
|
239,974 |
|
|
4.8 |
|
|
Total commercial real estate and multi-family residential
loans |
|
2,620,817 |
|
|
50.2 |
|
|
|
2,592,520 |
|
|
50.6 |
|
|
|
2,477,442 |
|
|
49.6 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Agri-business and agricultural
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans secured by farmland |
|
156,112 |
|
|
3.0 |
|
|
|
156,609 |
|
|
3.1 |
|
|
|
167,271 |
|
|
3.3 |
|
|
Loans for agricultural production |
|
227,659 |
|
|
4.3 |
|
|
|
230,787 |
|
|
4.5 |
|
|
|
200,581 |
|
|
4.0 |
|
|
Total agri-business and agricultural loans |
|
383,771 |
|
|
7.3 |
|
|
|
387,396 |
|
|
7.6 |
|
|
|
367,852 |
|
|
7.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Other commercial loans |
|
94,927 |
|
|
1.8 |
|
|
|
95,584 |
|
|
1.9 |
|
|
|
120,302 |
|
|
2.4 |
|
|
Total commercial loans |
|
4,623,085 |
|
|
88.5 |
|
|
|
4,526,365 |
|
|
88.4 |
|
|
|
4,442,872 |
|
|
88.8 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Consumer 1-4 family mortgage
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Closed end first mortgage loans |
|
265,855 |
|
|
5.1 |
|
|
|
259,286 |
|
|
5.1 |
|
|
|
260,633 |
|
|
5.2 |
|
|
Open end and junior lien loans |
|
217,981 |
|
|
4.2 |
|
|
|
214,125 |
|
|
4.2 |
|
|
|
188,927 |
|
|
3.8 |
|
|
Residential construction and land development loans |
|
16,359 |
|
|
0.3 |
|
|
|
16,818 |
|
|
0.3 |
|
|
|
10,956 |
|
|
0.2 |
|
|
Total consumer 1-4 family mortgage loans |
|
500,195 |
|
|
9.6 |
|
|
|
490,229 |
|
|
9.6 |
|
|
|
460,516 |
|
|
9.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Other consumer loans |
|
102,254 |
|
|
1.9 |
|
|
|
104,041 |
|
|
2.0 |
|
|
|
97,369 |
|
|
2.0 |
|
|
Total consumer loans |
|
602,449 |
|
|
11.5 |
|
|
|
594,270 |
|
|
11.6 |
|
|
|
557,885 |
|
|
11.2 |
|
|
Subtotal |
|
5,225,534 |
|
|
100.0 |
% |
|
|
5,120,635 |
|
|
100.0 |
% |
|
|
5,000,757 |
|
|
100.0 |
% |
| Less: Allowance for
credit losses |
|
(92,433 |
) |
|
|
|
|
(85,960 |
) |
|
|
|
|
(73,180 |
) |
|
|
|
Net deferred loan fees |
|
(2,313 |
) |
|
|
|
|
(2,687 |
) |
|
|
|
|
(3,198 |
) |
|
|
| Loans, net |
$ |
5,130,788 |
|
|
|
|
$ |
5,031,988 |
|
|
|
|
$ |
4,924,379 |
|
|
|
| |
|
LAKELAND FINANCIAL CORPORATIONDEPOSITS AND
BORROWINGS(unaudited, in thousands) |
|
|
| |
March 31,2025 |
|
December 31,2024 |
|
March 31,2024 |
|
Noninterest bearing demand deposits |
$ |
1,296,907 |
|
$ |
1,297,456 |
|
$ |
1,254,200 |
| Savings and transaction
accounts: |
|
|
|
|
|
|
Savings deposits |
|
293,768 |
|
|
276,179 |
|
|
296,671 |
|
Interest bearing demand deposits |
|
3,554,310 |
|
|
3,471,455 |
|
|
3,041,025 |
| Time deposits: |
|
|
|
|
|
|
Deposits of $100,000 or more |
|
602,577 |
|
|
642,776 |
|
|
805,832 |
|
Other time deposits |
|
212,632 |
|
|
213,100 |
|
|
220,357 |
| Total deposits |
$ |
5,960,194 |
|
$ |
5,900,966 |
|
$ |
5,618,085 |
| FHLB advances and other
borrowings |
|
108,200 |
|
|
0 |
|
|
200,000 |
| Total funding sources |
$ |
6,068,394 |
|
$ |
5,900,966 |
|
$ |
5,818,085 |
| |
|
LAKELAND FINANCIAL CORPORATIONAVERAGE
BALANCE SHEET AND NET INTEREST
ANALYSIS(UNAUDITED) |
|
|
| |
|
Three Months Ended March 31, 2025 |
|
Three Months Ended December 31, 2024 |
|
Three Months Ended March 31, 2024 |
| (fully
tax equivalent basis, dollars in thousands) |
|
Average Balance |
|
Interest Income |
|
Yield (1)/Rate |
|
Average Balance |
|
Interest Income |
|
Yield (1)/Rate |
|
Average Balance |
|
Interest Income |
|
Yield (1)/Rate |
|
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (2)(3) |
|
$ |
5,160,031 |
|
|
$ |
81,740 |
|
6.42 |
% |
|
$ |
5,060,397 |
|
|
$ |
83,253 |
|
6.54 |
% |
|
$ |
4,916,943 |
|
|
$ |
82,042 |
|
6.71 |
% |
|
Tax exempt (1) |
|
|
25,887 |
|
|
|
361 |
|
5.66 |
|
|
|
26,217 |
|
|
|
364 |
|
5.52 |
|
|
|
54,077 |
|
|
|
1,118 |
|
8.31 |
|
|
Investments: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities |
|
|
1,136,404 |
|
|
|
8,338 |
|
2.98 |
|
|
|
1,134,011 |
|
|
|
7,953 |
|
2.79 |
|
|
|
1,158,503 |
|
|
|
8,035 |
|
2.79 |
|
|
Short-term investments |
|
|
2,964 |
|
|
|
28 |
|
3.83 |
|
|
|
2,765 |
|
|
|
29 |
|
4.17 |
|
|
|
2,710 |
|
|
|
33 |
|
4.90 |
|
|
Interest bearing deposits |
|
|
105,518 |
|
|
|
1,096 |
|
4.21 |
|
|
|
247,530 |
|
|
|
2,881 |
|
4.63 |
|
|
|
84,696 |
|
|
|
1,073 |
|
5.10 |
|
| Total earning assets |
|
$ |
6,430,804 |
|
|
$ |
91,563 |
|
5.77 |
% |
|
$ |
6,470,920 |
|
|
$ |
94,480 |
|
5.81 |
% |
|
$ |
6,216,929 |
|
|
$ |
92,301 |
|
5.97 |
% |
| Less: Allowance for
credit losses |
|
|
(87,477 |
) |
|
|
|
|
|
|
(84,687 |
) |
|
|
|
|
|
|
(72,433 |
) |
|
|
|
|
| Nonearning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
71,004 |
|
|
|
|
|
|
|
67,994 |
|
|
|
|
|
|
|
68,584 |
|
|
|
|
|
|
Premises and equipment |
|
|
60,523 |
|
|
|
|
|
|
|
60,325 |
|
|
|
|
|
|
|
57,883 |
|
|
|
|
|
|
Other nonearning assets |
|
|
288,116 |
|
|
|
|
|
|
|
281,044 |
|
|
|
|
|
|
|
283,505 |
|
|
|
|
|
| Total assets |
|
$ |
6,762,970 |
|
|
|
|
|
|
$ |
6,795,596 |
|
|
|
|
|
|
$ |
6,554,468 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits |
|
$ |
283,888 |
|
|
$ |
42 |
|
0.06 |
% |
|
$ |
274,960 |
|
|
$ |
43 |
|
0.06 |
% |
|
$ |
295,650 |
|
|
$ |
49 |
|
0.07 |
% |
|
Interest bearing checking accounts |
|
|
3,486,447 |
|
|
|
28,075 |
|
3.27 |
|
|
|
3,505,470 |
|
|
|
31,562 |
|
3.58 |
|
|
|
3,046,958 |
|
|
|
30,365 |
|
4.01 |
|
|
Time deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In denominations under $100,000 |
|
|
212,934 |
|
|
|
1,832 |
|
3.49 |
|
|
|
214,429 |
|
|
|
1,921 |
|
3.56 |
|
|
|
224,139 |
|
|
|
1,918 |
|
3.44 |
|
|
In denominations over $100,000 |
|
|
633,112 |
|
|
|
6,509 |
|
4.17 |
|
|
|
734,342 |
|
|
|
8,150 |
|
4.42 |
|
|
|
789,581 |
|
|
|
8,832 |
|
4.50 |
|
|
Miscellaneous short-term borrowings |
|
|
99,830 |
|
|
|
1,122 |
|
4.56 |
|
|
|
5 |
|
|
|
0 |
|
5.30 |
|
|
|
175,809 |
|
|
|
2,454 |
|
5.61 |
|
|
Long-term borrowings |
|
|
254 |
|
|
|
0 |
|
0.00 |
|
|
|
0 |
|
|
|
0 |
|
0.00 |
|
|
|
0 |
|
|
|
0 |
|
0.00 |
|
| Total interest bearing
liabilities |
|
$ |
4,716,465 |
|
|
$ |
37,580 |
|
3.23 |
% |
|
$ |
4,729,206 |
|
|
$ |
41,676 |
|
3.51 |
% |
|
$ |
4,532,137 |
|
|
$ |
43,618 |
|
3.87 |
% |
| Noninterest Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
1,258,344 |
|
|
|
|
|
|
|
1,281,921 |
|
|
|
|
|
|
|
1,274,103 |
|
|
|
|
|
|
Other liabilities |
|
|
92,108 |
|
|
|
|
|
|
|
90,725 |
|
|
|
|
|
|
|
103,221 |
|
|
|
|
|
| Stockholders' Equity |
|
|
696,053 |
|
|
|
|
|
|
|
693,744 |
|
|
|
|
|
|
|
645,007 |
|
|
|
|
|
| Total liabilities and
stockholders' equity |
|
$ |
6,762,970 |
|
|
|
|
|
|
$ |
6,795,596 |
|
|
|
|
|
|
$ |
6,554,468 |
|
|
|
|
|
| Interest Margin Recap |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income/average
earning assets |
|
|
|
|
91,563 |
|
5.77 |
% |
|
|
|
|
94,480 |
|
5.81 |
% |
|
|
|
|
92,301 |
|
5.97 |
% |
| Interest expense/average
earning assets |
|
|
|
|
37,580 |
|
2.37 |
|
|
|
|
|
41,676 |
|
2.56 |
|
|
|
|
|
43,618 |
|
2.82 |
|
| Net interest income and
margin |
|
|
|
$ |
53,983 |
|
3.40 |
% |
|
|
|
$ |
52,804 |
|
3.25 |
% |
|
|
|
$ |
48,683 |
|
3.15 |
% |
|
(1) |
|
Tax exempt income was converted to a fully taxable equivalent basis
at a 21 percent tax rate. The tax equivalent rate for tax exempt
loans and tax-exempt securities acquired after January 1, 1983,
included the Tax Equity and Fiscal Responsibility Act of 1982
(“TEFRA”) adjustment applicable to nondeductible interest expenses.
Taxable equivalent basis adjustments were $1.11 million, $1.11
million and $1.27 million in the three-month periods ended
March 31, 2025, December 31, 2024, and March 31,
2024, respectively. |
|
(2) |
|
Loan fees, which are immaterial in relation to total taxable loan
interest income for the three-month periods ended March 31,
2025, December 31, 2024, and March 31, 2024, are included
as taxable loan interest income. |
|
(3) |
|
Nonaccrual loans are included in the average balance of taxable
loans. |
|
|
|
|
Reconciliation of Non-GAAP Financial
Measures
Tangible common equity, adjusted tangible common equity,
tangible assets, adjusted tangible assets, tangible book value per
common share, tangible common equity to tangible assets, adjusted
tangible common equity to adjusted tangible assets, and pretax
pre-provision earnings are non-GAAP financial measures calculated
based on GAAP amounts. Tangible common equity is calculated by
excluding the balance of goodwill and other intangible assets from
the calculation of equity, net of deferred tax. Tangible assets are
calculated by excluding the balance of goodwill and other
intangible assets from the calculation of total assets, net of
deferred tax. Adjusted tangible assets and adjusted tangible common
equity remove the fair market value adjustment impact of the
available-for-sale investment securities portfolio in accumulated
other comprehensive income (loss) ("AOCI"). Tangible book value per
common share is calculated by dividing tangible common equity by
the number of shares outstanding less true treasury stock. Pretax
pre-provision earnings is calculated by adding net interest income
to noninterest income and subtracting noninterest expense. Because
not all companies use the same calculation of tangible common
equity and tangible assets, this presentation may not be comparable
to other similarly titled measures calculated by other companies.
However, management considers these measures of the company’s value
meaningful to understanding of the company’s financial information
and performance.
A reconciliation of these non-GAAP financial measures is
provided below (dollars in thousands, except per share data).
| |
Three Months Ended |
| |
Mar. 31, 2025 |
|
Dec. 31, 2024 |
|
Mar. 31, 2024 |
|
Total Equity |
$ |
694,509 |
|
|
$ |
683,911 |
|
|
$ |
647,009 |
|
| Less: Goodwill |
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
| Plus: DTA Related to
Goodwill |
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
| Tangible Common Equity |
|
690,706 |
|
|
|
680,108 |
|
|
|
643,206 |
|
| Market Value Adjustment in
AOCI |
|
163,879 |
|
|
|
165,932 |
|
|
|
166,189 |
|
| Adjusted Tangible Common
Equity |
|
854,585 |
|
|
|
846,040 |
|
|
|
809,395 |
|
| |
|
|
|
|
|
| Assets |
$ |
6,851,178 |
|
|
$ |
6,678,374 |
|
|
$ |
6,566,861 |
|
| Less: Goodwill |
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
| Plus: DTA Related to
Goodwill |
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
| Tangible Assets |
|
6,847,375 |
|
|
|
6,674,571 |
|
|
|
6,563,058 |
|
| Market Value Adjustment in
AOCI |
|
163,879 |
|
|
|
165,932 |
|
|
|
166,189 |
|
| Adjusted Tangible Assets |
|
7,011,254 |
|
|
|
6,840,503 |
|
|
|
6,729,247 |
|
| |
|
|
|
|
|
| Ending Common Shares
Issued |
|
25,727,393 |
|
|
|
25,689,730 |
|
|
|
25,677,399 |
|
| |
|
|
|
|
|
| Tangible Book Value Per Common
Share |
$ |
26.85 |
|
|
$ |
26.47 |
|
|
$ |
25.05 |
|
| |
|
|
|
|
|
| Tangible Common
Equity/Tangible Assets |
|
10.09 |
% |
|
|
10.19 |
% |
|
|
9.80 |
% |
| Adjusted Tangible Common
Equity/Adjusted Tangible Assets |
|
12.19 |
% |
|
|
12.37 |
% |
|
|
12.03 |
% |
| |
|
|
|
|
|
| Net Interest Income |
$ |
52,875 |
|
|
$ |
51,694 |
|
|
$ |
47,416 |
|
| Plus: Noninterest
Income |
|
10,928 |
|
|
|
11,876 |
|
|
|
12,612 |
|
| Minus: Noninterest
Expense |
|
(32,763 |
) |
|
|
(30,653 |
) |
|
|
(30,705 |
) |
| |
|
|
|
|
|
| Pretax Pre-Provision
Earnings |
$ |
31,040 |
|
|
$ |
32,917 |
|
|
$ |
29,323 |
|
| |
Adjusted core noninterest income, adjusted earnings before
income taxes, core operational profitability, core operational
diluted earnings per common share and adjusted core efficiency
ratio are non-GAAP financial measures calculated based on GAAP
amounts. These adjusted amounts are calculated by excluding the
impact of insurance recoveries related to the 2023 wire fraud loss
for the periods presented below. Management considers these
measures of financial performance to be meaningful to understanding
the company’s core business performance for these periods.
A reconciliation of these non-GAAP financial measures is
provided below (dollars in thousands, except per share data).
| |
Three Months Ended |
| |
Mar. 31, 2025 |
|
Dec. 31, 2024 |
|
Mar. 31, 2024 |
|
Noninterest Income |
$ |
10,928 |
|
|
$ |
11,876 |
|
|
$ |
12,612 |
|
| Less: Insurance Recovery |
|
0 |
|
|
|
0 |
|
|
|
(1,000 |
) |
| Adjusted Core Noninterest
Income |
$ |
10,928 |
|
|
$ |
11,876 |
|
|
$ |
11,612 |
|
| |
|
|
|
|
|
| Earnings Before Income
Taxes |
$ |
24,240 |
|
|
$ |
29,226 |
|
|
$ |
27,803 |
|
| Adjusted Core Impact: |
|
|
|
|
|
|
Noninterest Income |
|
0 |
|
|
|
0 |
|
|
|
(1,000 |
) |
| Total Adjusted Core
Impact |
|
0 |
|
|
|
0 |
|
|
|
(1,000 |
) |
| Adjusted Earnings Before
Income Taxes |
|
24,240 |
|
|
|
29,226 |
|
|
|
26,803 |
|
| Tax Effect |
|
(4,155 |
) |
|
|
(5,036 |
) |
|
|
(4,153 |
) |
| Core Operational Profitability
(1) |
$ |
20,085 |
|
|
$ |
24,190 |
|
|
$ |
22,650 |
|
| |
|
|
|
|
|
| Diluted Earnings Per Common
Share |
$ |
0.78 |
|
|
$ |
0.94 |
|
|
$ |
0.91 |
|
| Impact of Adjusted Core
Items |
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.03 |
) |
| Core Operational Diluted
Earnings Per Common Share |
$ |
0.78 |
|
|
$ |
0.94 |
|
|
$ |
0.88 |
|
| |
|
|
|
|
|
| Adjusted Core Efficiency
Ratio |
|
51.35 |
% |
|
|
48.22 |
% |
|
|
52.02 |
% |
|
(1) |
|
Core operational profitability was $751,000 lower than reported net
income for the three months ended March 31, 2024. |
ContactLisa M. O’NeillExecutive
Vice President and Chief Financial Officer (574)
267-9125lisa.oneill@lakecitybank.com
Grafico Azioni Lakeland Financial (NASDAQ:LKFN)
Storico
Da Mar 2025 a Apr 2025
Grafico Azioni Lakeland Financial (NASDAQ:LKFN)
Storico
Da Apr 2024 a Apr 2025
