Lakeland Financial Reports a 12% Increase in Net Interest Income and Organic Loan Growth of 4%
Lakeland Financial (LKFN) reported Q1 2025 net income of $20.1 million, down 14% from $23.4 million in Q1 2024. Net interest income increased 12% with a net interest margin of 3.40%, up 25 basis points year-over-year.
Key highlights include:
- Diluted EPS decreased to $0.78 from $0.91 year-over-year
- Average loans grew 4% to $5.19 billion
- Core deposits increased 7% to $5.83 billion
- Tangible book value per share grew 7% to $26.85
The company announced a quarterly dividend of $0.50 per share, a 4% increase from Q1 2024, and reauthorized a share repurchase program with $30.0 million remaining capacity through April 2027. The bank maintains strong capital levels with total capital at 15.77% of risk-weighted assets.
Lakeland Financial (LKFN) ha riportato un utile netto di 20,1 milioni di dollari nel primo trimestre del 2025, in calo del 14% rispetto ai 23,4 milioni del primo trimestre 2024. Il reddito netto da interessi è aumentato del 12%, con un margine di interesse netto del 3,40%, in crescita di 25 punti base su base annua.
I punti salienti includono:
- l'EPS diluito è sceso a 0,78 dollari da 0,91 dollari anno su anno
- i prestiti medi sono cresciuti del 4%, raggiungendo 5,19 miliardi di dollari
- i depositi core sono aumentati del 7%, arrivando a 5,83 miliardi di dollari
- il valore contabile tangibile per azione è cresciuto del 7%, raggiungendo 26,85 dollari
La società ha annunciato un dividendo trimestrale di 0,50 dollari per azione, in aumento del 4% rispetto al primo trimestre 2024, e ha riautorizzato un programma di riacquisto azionario con una capacità residua di 30,0 milioni di dollari fino ad aprile 2027. La banca mantiene livelli di capitale solidi, con un capitale totale pari al 15,77% degli attivi ponderati per il rischio.
Lakeland Financial (LKFN) reportó un ingreso neto de 20,1 millones de dólares en el primer trimestre de 2025, una disminución del 14% respecto a los 23,4 millones del primer trimestre de 2024. El ingreso neto por intereses aumentó un 12%, con un margen neto de interés del 3,40%, 25 puntos básicos más año tras año.
Los puntos clave incluyen:
- las ganancias por acción diluidas disminuyeron a 0,78 dólares desde 0,91 dólares año con año
- los préstamos promedio crecieron un 4% hasta 5,19 mil millones de dólares
- los depósitos básicos aumentaron un 7% hasta 5,83 mil millones de dólares
- el valor tangible contable por acción creció un 7% hasta 26,85 dólares
La compañía anunció un dividendo trimestral de 0,50 dólares por acción, un aumento del 4% respecto al primer trimestre de 2024, y reautorizó un programa de recompra de acciones con una capacidad restante de 30,0 millones de dólares hasta abril de 2027. El banco mantiene sólidos niveles de capital con un capital total del 15,77% de los activos ponderados por riesgo.
Lakeland Financial (LKFN)은 2025년 1분기 순이익이 2,010만 달러로 2024년 1분기 2,340만 달러 대비 14% 감소했다고 발표했습니다. 순이자수익은 12% 증가했으며 순이자마진은 3.40%로 전년 대비 25 베이시스 포인트 상승했습니다.
주요 내용은 다음과 같습니다:
- 희석 주당순이익(EPS)은 전년 대비 0.91달러에서 0.78달러로 감소
- 평균 대출금은 4% 증가하여 51억 9천만 달러 달성
- 핵심 예금은 7% 증가하여 58억 3천만 달러 기록
- 주당 유형장부가치는 7% 증가하여 26.85달러
회사는 1주당 0.50달러의 분기 배당금을 발표했으며, 이는 2024년 1분기 대비 4% 증가한 수치입니다. 또한 2027년 4월까지 3,000만 달러의 잔여 한도로 자사주 매입 프로그램을 재승인했습니다. 은행은 위험가중자산 대비 총자본 비율 15.77%로 견고한 자본 수준을 유지하고 있습니다.
Lakeland Financial (LKFN) a annoncé un bénéfice net de 20,1 millions de dollars pour le premier trimestre 2025, en baisse de 14 % par rapport à 23,4 millions de dollars au premier trimestre 2024. Le revenu net d'intérêts a augmenté de 12 %, avec une marge nette d'intérêt de 3,40 %, soit une hausse de 25 points de base d'une année sur l'autre.
Les points clés incluent :
- le BPA dilué a diminué à 0,78 $ contre 0,91 $ en glissement annuel
- les prêts moyens ont augmenté de 4 % pour atteindre 5,19 milliards de dollars
- les dépôts de base ont augmenté de 7 % pour atteindre 5,83 milliards de dollars
- la valeur comptable tangible par action a augmenté de 7 % pour atteindre 26,85 $
La société a annoncé un dividende trimestriel de 0,50 $ par action, en hausse de 4 % par rapport au premier trimestre 2024, et a réautorisé un programme de rachat d’actions avec une capacité restante de 30,0 millions de dollars jusqu’en avril 2027. La banque maintient des niveaux de capital solides avec un capital total représentant 15,77 % des actifs pondérés en fonction des risques.
Lakeland Financial (LKFN) meldete für das erste Quartal 2025 einen Nettogewinn von 20,1 Millionen US-Dollar, was einem Rückgang von 14 % gegenüber 23,4 Millionen US-Dollar im ersten Quartal 2024 entspricht. Der Nettozinsertrag stieg um 12 % auf eine Nettozinsmarge von 3,40 %, was einem Anstieg von 25 Basispunkten gegenüber dem Vorjahr entspricht.
Wichtige Highlights sind:
- Das verwässerte Ergebnis je Aktie (EPS) sank von 0,91 auf 0,78 US-Dollar im Jahresvergleich
- Die durchschnittlichen Kredite wuchsen um 4 % auf 5,19 Milliarden US-Dollar
- Die Kern-Einlagen stiegen um 7 % auf 5,83 Milliarden US-Dollar
- Der materielle Buchwert je Aktie wuchs um 7 % auf 26,85 US-Dollar
Das Unternehmen kündigte eine vierteljährliche Dividende von 0,50 US-Dollar je Aktie an, eine Steigerung von 4 % gegenüber dem ersten Quartal 2024, und genehmigte ein Aktienrückkaufprogramm mit einer verbleibenden Kapazität von 30,0 Millionen US-Dollar bis April 2027. Die Bank hält solide Kapitalquoten mit einer Gesamtkapitalquote von 15,77 % der risikogewichteten Aktiva.
- Net interest income increased 12% year-over-year
- Net interest margin improved 25 basis points to 3.40%
- Core deposits grew 7% to $5.83 billion
- Average loans increased 4% to $5.19 billion
- Quarterly dividend increased 4% to $0.50 per share
- Strong capital position with total capital at 15.77%
- Net income decreased 14% to $20.1 million year-over-year
- Diluted EPS declined 14% to $0.78 from $0.91
- Watch list loans increased to 4.13% from 3.67% year-over-year
- Provision expense increased to $6.8 million from $1.5 million year-over-year
Insights
LKFN reports mixed Q1 results with earnings down 14% despite operational strength in NIM expansion and loan growth.
Lakeland Financial's Q1 2025 earnings reveal a 14% year-over-year decline in net income to
The net interest income increase of
The bank's organic loan growth of
The primary factor behind the earnings decline was a substantial increase in loan loss provisions to
The bank maintains strong capital ratios with common equity tier 1 capital at
Management's confidence is evident in the
WARSAW, Ind., April 25, 2025 (GLOBE NEWSWIRE) -- Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported net income of
Pretax pre-provision earnings, which is a non-GAAP measure, were
“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 , or7% , to$26.85 - Average loans grew by
$214.9 million , or4% , to$5.19 billion - Core deposits grew by
$402.5 million , or7% , to$5.83 billion - Net interest margin improved 25 basis points to
3.40% versus3.15% - Net interest income increased by
$5.5 million , or12% - 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% from3.67% - Pretax, pre-provision earnings increased by
$1.7 million , or6% - Common equity tier 1 capital improved to
14.51% , compared to14.21% - Tangible capital ratio improved to
10.09% , compared to9.80% - Average equity increased by
$51.0 million , or8%
First Quarter 2025 versus Fourth Quarter 2024 highlights:
- Tangible book value per share grew by
$0.38 , or1% , to$26.85 - Average loans grew by
$99.3 million , or2% , to$5.19 billion - Net interest margin improved 15 basis points to
3.40% versus3.25% - Net interest income increased by
$1.2 million , or2% - 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 , or6% - Common equity tier 1 capital of
14.51% , compared to14.64% - Tangible capital ratio of
10.09% , compared to10.19%
Capital Strength
The company’s total capital as a percentage of risk-weighted assets improved to
The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to
As announced on April 8, 2025, the board of directors approved a cash dividend for the first quarter of
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
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
Commercial loan originations for the first quarter included approximately
“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
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
The increase in core deposits since March 31, 2024, reflects growth in all three core deposit components. Commercial deposits grew annually by
On a linked quarter basis, total deposits increased
“Annual core deposit growth of
Average total deposits were
On a linked quarter basis, average total deposits decreased by
Checking account trends as of March 31, 2025 compared to March 31, 2024, include growth of
Deposits not covered by FDIC deposit insurance as a percentage of total deposits were
Net Interest Margin
Net interest margin was
Linked quarter net interest margin expanded by 15 basis points to
“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
Net interest income was
Asset Quality
The company recorded a provision for credit losses of
The allowance for credit loss reserve to total loans was
Nonperforming assets increased
Total individually analyzed and watch list loans increased by
“Asset quality remains stable with watch list loans as a percentage of total loans at
Investment Portfolio Overview
Total investment securities were
Noninterest Income
The company’s noninterest income decreased
Noninterest income for the first quarter of 2025 decreased by
“The growth of our wealth advisory business continues to positively impact revenue growth with
Noninterest Expense
Noninterest expense increased
On a linked quarter basis, noninterest expense increased by
The company’s efficiency ratio was
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
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 CORPORATION FIRSTQUARTER2025FINANCIAL 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 Common Equity (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 Income plus 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 | 131,979 | 131,568 | |||||
| Real estate mortgage loans held-for-sale | 1,295 | 1,700 | |||||
| | |||||||
| Loans, net of allowance for credit losses of | 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 CORPORATION LOAN 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 CORPORATION DEPOSITS 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 | 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 CORPORATION AVERAGE 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 | 212,934 | 1,832 | 3.49 | 214,429 | 1,921 | 3.56 | 224,139 | 1,918 | 3.44 | |||||||||||||||||||||
| In denominations over | 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 | |
| (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 |
Contact
Lisa M. O’Neill
Executive Vice President and Chief Financial Officer
(574) 267-9125
lisa.oneill@lakecitybank.com
FAQ
What is LKFN's Q1 2025 net interest margin and how has it changed?
How much did Lakeland Financial's loan portfolio grow in Q1 2025?
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