Lakeland Financial Reports Record Quarterly Performance with a 24% Increase in Net Income; Annual Net Income Grows by 11% to $103.4 Million, as Net Interest Income Expands by 12%
Rhea-AI Summary
Lakeland Financial (Nasdaq: LKFN) reported record fourth-quarter net income of $29.9 million, up 24% year-over-year, and full-year net income of $103.4 million, up 11% from 2024. Diluted EPS was $1.16 for Q4 2025 and $4.01 for the year. Total revenue for Q4 was $69.8 million (up 10% YoY) and annual revenue was $269.0 million (up 6% YoY). Net interest income expanded (NII +12% Y/Y) and net interest margin improved to 3.48% versus 3.25% a year ago. Average loans grew to $5.27 billion and core deposits represented 99% of total deposits. CET1 capital was 14.77% and the board approved a quarterly cash dividend of $0.52 payable Feb 5, 2026.
Positive
- Record Q4 net income of $29.9M (+24% YoY)
- Full-year net income of $103.4M (+11% YoY)
- Diluted EPS of $1.16 Q4 and $4.01 FY 2025
- Net interest income up 12% for the year
- Tangible book value per share rose 13% to $29.87
- Common equity tier 1 ratio of 14.77%
Negative
- Unrealized losses on AFS securities of $143.3M at 12/31/2025
- Commercial deposits declined $89.1M year-over-year (−4%)
- Retail deposits contracted $17.3M year-over-year (−1%)
Key Figures
Market Reality Check
Peers on Argus
LKFN fell 3.32% with above-average volume. Peers showed mixed action: several regional banks like CCB (-3.25%), FCF (-2.78%), STBA (-4.15%), and STEL (-2.86%) were also down, while CASH rose 4.37%. The move appears more stock-specific than a clean sector-wide rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| 2026-01-13 | Dividend increase | Positive | +0.4% | Raised quarterly cash dividend to $0.52 per share, up 4% year-over-year. |
| 2026-01-07 | Leadership role | Neutral | -3.0% | CEO named Chairman of Indiana Bankers Association Board for 2026. |
| 2025-12-16 | Digital partnership | Positive | -0.1% | Partnered with Spiral to launch SpendSave roundup and donation features. |
| 2025-10-27 | Earnings report | Positive | -5.1% | Q3 2025 net income and EPS up 13% with NIM expansion to 3.50%. |
| 2025-09-08 | Capex investment | Positive | +0.1% | Announced $12M Innovation and Technology Center investment in Warsaw campus. |
Recent history shows several positive announcements, including earnings and dividends, followed by flat-to-negative price reactions, suggesting the stock has often traded weakly around good news.
Over the past six months, LKFN has reported multiple positive developments: a $12M technology center investment, a Q3 2025 earnings report with higher net income and margin expansion, and a 4% dividend increase to $0.52 per share. It also announced a digital partnership and management/industry leadership changes. Despite generally constructive fundamentals and capital strength, price reactions have frequently been muted or negative, a pattern that frames today’s strong earnings update against a cautious trading backdrop.
Market Pulse Summary
This announcement details record Q4 and full-year performance, with net income reaching $29.9M for the quarter and $103.4M for 2025, alongside EPS of $4.01. Net interest income and margin expanded, loans and core deposits grew, and asset quality metrics improved. The company also increased its quarterly dividend to $0.52 and repurchased shares at an average of about $58. Investors may watch future loan growth, net interest margin trends, and capital deployment for ongoing assessment.
Key Terms
net interest margin financial
basis points financial
common equity tier 1 capital ratio financial
total risk-based capital ratio financial
tangible common equity financial
phantom stock units financial
AI-generated analysis. Not financial advice.
WARSAW, Ind., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported record quarterly net income of
The company further reported net income of
Pretax pre-provision earnings were
Total revenue was
“The Lake City Bank team produced a very strong fourth quarter with exceptional performance metrics that has created good momentum as we move into 2026. We are pleased with double-digit growth of net income compared to the prior year, which was driven by healthy net interest margin expansion and broad-based core revenue growth,” commented David M. Findlay, Chairman and CEO. “In 1990, we expanded outside of our home county for the first time. In the 34 years since, our organic growth model has produced compounded annual growth rates of
Quarterly Financial Performance
Fourth Quarter 2025 versus Fourth Quarter 2024 highlights:
- Return on average equity improved to
15.59% , compared to13.87% - Return on average assets improved to
1.70% , compared to1.42% - Tangible book value per share grew by
$3.40 , or13% , to$29.87 - Average loans grew by
$185.1 million , or4% , to$5.27 billion - Net interest margin improved 23 basis points to
3.48% versus3.25% - Net interest income increased by
$5.5 million , or11% - Noninterest income increased by
$727,000 , or6% - Revenue improved by
10% from$63.6 million to$69.8 million - Watch list loans as a percentage of total loans improved to
3.42% from4.13% - Nonaccrual loans declined
63% to$20.9 million , compared to$56.4 million - Common equity tier 1 capital ratio improved to
14.77% , compared to14.64% - Total risk-based capital ratio improved to
15.92% , compared to15.90% - Tangible capital ratio improved to
10.86% , compared to10.19% - Tangible common equity improved by
$78.6 million , or12%
Fourth Quarter 2025 versus Third Quarter 2025 highlights:
- Return on average equity of
15.59% , compared to14.60% - Return on average assets of
1.70% , compared to1.53% - Tangible book value per share grew by
$0.94 , or3% , to$29.87 - Average loans improved by
$65.9 million , or1% , to$5.27 billion - Core deposits expansion of
$74.1 million , or1% , to$5.92 billion - Net interest margin of
3.48% versus3.50% - Net interest income increased by
$1.1 million , or2% - Noninterest expense decreased
$1.5 million , or4% - Tangible common equity improved by
$15.0 million , or2%
Capital Strength
The company’s total capital as a percentage of risk-weighted assets was
The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to
As announced on January 13, 2026, the board of directors approved a cash dividend for the fourth quarter of
Additionally, the company utilized its share repurchase program during the fourth quarter of 2025 and repurchased 307,590 shares of its common stock for
“We are pleased to report high quality income metrics with return on average equity of
Net Interest Margin
Net interest margin was
Net interest margin contracted by 2 basis points to
Net interest income increased by
“Net interest margin improved by 23 basis points during the fourth quarter of 2025 as compared to the fourth quarter of 2024 while the Federal Reserve Bank easing monetary cycle continued. Our disciplined deposit cost repricing strategy offset the decline in loan yields. In addition, new loan origination yields improved compared to yields of fixed rate loan runoff,” stated Lisa M. O’Neill, Executive Vice President and Chief Financial Officer. “We experienced the seasonal influx of municipal deposits during the fourth quarter, which offset some of the net interest margin expansion we experienced in the third quarter of 2025. Our neutral interest rate position is expected to provide stability for net interest margin in a higher-for-longer interest rate environment or continued easing by the Federal Reserve Bank in 2026.”
Loan Portfolio
Average total loans of
Total loans, excluding deferred fees and costs, increased by
“We continued to generate a high volume of gross commercial loan originations during the fourth quarter of
As noted earlier, total outstanding commercial loans for the fourth quarter included approximately
Diversified Deposit Base
The bank's diversified deposit base has grown on a year-over-year basis and core deposits, which exclude brokered deposits, represented
| (in thousands) | December 31, 2025 | September 30, 2025 | December 31, 2024 | ||||||||||||||
| Retail | $ | 1,763,452 | 29.5 | % | $ | 1,724,983 | 28.6 | % | $ | 1,780,726 | 30.2 | % | |||||
| Commercial | 2,179,999 | 36.5 | 2,288,701 | 38.0 | 2,269,049 | 38.4 | |||||||||||
| Public funds | 1,979,327 | 33.2 | 1,834,987 | 30.5 | 1,809,631 | 30.7 | |||||||||||
| Core deposits | 5,922,778 | 99.2 | 5,848,671 | 97.1 | 5,859,406 | 99.3 | |||||||||||
| Brokered deposits | 50,572 | 0.8 | 175,647 | 2.9 | 41,560 | 0.7 | |||||||||||
| Total | $ | 5,973,350 | 100.0 | % | $ | 6,024,318 | 100.0 | % | $ | 5,900,966 | 100.0 | % | |||||
Total deposits increased
On a linked quarter basis, total deposits decreased
Average total deposits were
On a linked quarter basis, average total deposits increased by
Checking account growth as of December 31, 2025, compared to December 31, 2024, includes growth of
“Deposit growth, together with other sources of on balance sheet liquidity, funded our loan growth during the year. Public fund deposits increased by
Asset Quality
Provision expense was
The allowance for credit loss reserve to total loans was
Nonperforming assets decreased by
Total individually analyzed and watch list loans decreased by
“Asset quality is stable and we are pleased to have ended 2025 with improved asset quality metrics as compared to 2024,” commented Findlay. “Our overall asset quality metrics are near historical lows, which is excellent, and we are encouraged by the results of our year-end loan portfolio reviews during which we met with every commercial banker and reviewed their respective portfolios. Our borrowers continue to effectively manage through this period of heightened uncertainty impacted by the evolving state of tariffs and the challenges that accompanies them.”
Investment Portfolio Overview
Total investment securities were
Noninterest Income
Noninterest income decreased by
Findlay noted, “Fee-based revenue was strong during 2025, in particular, wealth advisory fees and investment brokerage fees improved by double digit growth. The combined impact of growth in net interest income and core noninterest income during 2025 generated
The company’s noninterest income increased
On a linked quarter basis, noninterest income for the fourth quarter of 2025 decreased by
Noninterest Expense
Noninterest expense increased by
Noninterest expense increased
On a linked quarter basis, noninterest expense decreased by
The company's efficiency ratio for the year ended December 31, 2025, was
The company’s efficiency ratio was
“The growth in noninterest expense during 2025 reflects the addition of revenue producing team members in commercial banking, wealth advisory and private banking teams that support our organic loan and deposit growth strategies. We also continued to invest in our branch footprint with a focus on adding branches in the Indianapolis market,” stated Findlay. “Our low efficiency ratio highlights our disciplined growth strategy and the impact of revenue outpacing expense growth. We have plans for accelerated branch development in Indianapolis as well as South Bend, Fort Wayne and Elkhart over the next several years as we continue to grow market share in our Indiana footprint.”
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, 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 the company’s operating environment or its 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; including any effects resulting from international government conflicts; 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 FOURTH QUARTER 2025 FINANCIAL HIGHLIGHTS | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| (Unaudited – Dollars in thousands, except per share data) | December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||
| END OF PERIOD BALANCES | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Assets | $ | 6,990,022 | $ | 6,895,028 | $ | 6,678,374 | $ | 6,990,022 | $ | 6,678,374 | |||||||||
| Investments | 1,185,270 | 1,164,737 | 1,122,994 | 1,185,270 | 1,122,994 | ||||||||||||||
| Loans | 5,375,349 | 5,248,619 | 5,117,948 | 5,375,349 | 5,117,948 | ||||||||||||||
| Allowance for Credit Losses | 68,995 | 68,168 | 85,960 | 68,995 | 85,960 | ||||||||||||||
| Deposits | 5,973,350 | 6,024,318 | 5,900,966 | 5,973,350 | 5,900,966 | ||||||||||||||
| Brokered Deposits | 50,572 | 175,647 | 41,560 | 50,572 | 41,560 | ||||||||||||||
| Core Deposits (1) | 5,922,778 | 5,848,671 | 5,859,406 | 5,922,778 | 5,859,406 | ||||||||||||||
| Total Equity | 762,492 | 747,503 | 683,911 | 762,492 | 683,911 | ||||||||||||||
| Goodwill Net of Deferred Tax Assets | 3,803 | 3,803 | 3,803 | 3,803 | 3,803 | ||||||||||||||
| Tangible Common Equity (2) | 758,689 | 743,700 | 680,108 | 758,689 | 680,108 | ||||||||||||||
| Adjusted Tangible Common Equity (2) | 885,298 | 883,865 | 846,040 | 885,298 | 846,040 | ||||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||
| Total Assets | $ | 6,993,954 | $ | 6,850,671 | $ | 6,795,596 | $ | 6,878,627 | $ | 6,662,718 | |||||||||
| Earning Assets | 6,641,584 | 6,492,640 | 6,470,920 | 6,534,373 | 6,328,498 | ||||||||||||||
| Investments | 1,175,389 | 1,127,094 | 1,134,011 | 1,141,189 | 1,134,979 | ||||||||||||||
| Loans | 5,271,687 | 5,205,833 | 5,086,614 | 5,223,458 | 5,039,406 | ||||||||||||||
| Total Deposits | 6,155,526 | 6,029,557 | 6,011,122 | 6,039,821 | 5,836,025 | ||||||||||||||
| Interest Bearing Deposits | 4,883,496 | 4,785,176 | 4,729,201 | 4,785,109 | 4,578,219 | ||||||||||||||
| Interest Bearing Liabilities | 4,893,050 | 4,818,115 | 4,729,206 | 4,829,098 | 4,644,553 | ||||||||||||||
| Total Equity | 760,954 | 717,428 | 693,744 | 718,029 | 662,087 | ||||||||||||||
| INCOME STATEMENT DATA | |||||||||||||||||||
| Net Interest Income | $ | 57,193 | $ | 56,073 | $ | 51,694 | $ | 221,017 | $ | 196,679 | |||||||||
| Net Interest Income-Fully Tax Equivalent | 58,307 | 57,180 | 52,804 | 225,458 | 201,363 | ||||||||||||||
| Provision for Credit Losses | 0 | 2,000 | 3,691 | 11,800 | 16,750 | ||||||||||||||
| Noninterest Income | 12,603 | 12,954 | 11,876 | 47,971 | 56,844 | ||||||||||||||
| Noninterest Expense | 33,445 | 34,965 | 30,653 | 131,605 | 125,084 | ||||||||||||||
| Net Income | 29,906 | 26,404 | 24,190 | 103,361 | 93,478 | ||||||||||||||
| Pretax Pre-Provision Earnings (2) | 36,351 | 34,062 | 32,917 | 137,383 | 128,439 | ||||||||||||||
| PER SHARE DATA | |||||||||||||||||||
| Basic Net Income Per Common Share | $ | 1.16 | $ | 1.03 | $ | 0.94 | $ | 4.02 | $ | 3.64 | |||||||||
| Diluted Net Income Per Common Share | 1.16 | 1.03 | 0.94 | 4.01 | 3.63 | ||||||||||||||
| Cash Dividends Declared Per Common Share | 0.50 | 0.50 | 0.48 | 2.00 | 1.92 | ||||||||||||||
| Dividend Payout | 43.10 | % | 48.54 | % | 51.06 | % | 49.88 | % | 52.89 | % | |||||||||
| Book Value Per Common Share (equity per share issued) | $ | 30.02 | $ | 29.08 | $ | 26.62 | $ | 30.02 | $ | 26.62 | |||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| (Unaudited – Dollars in thousands, except per share data) | December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||
| PER SHARE DATA (continued) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Tangible Book Value Per Common Share (2) | 29.87 | 28.93 | 26.47 | 29.87 | 26.47 | ||||||||||||||
| Market Value – High | $ | 65.43 | $ | 69.40 | $ | 78.61 | $ | 71.77 | $ | 78.61 | |||||||||
| Market Value – Low | 56.04 | 59.08 | 61.10 | 50.00 | 57.45 | ||||||||||||||
| Basic Weighted Average Common Shares Outstanding | 25,623,703 | 25,703,699 | 25,686,276 | 25,687,159 | 25,676,543 | ||||||||||||||
| Diluted Weighted Average Common Shares Outstanding | 25,770,280 | 25,821,360 | 25,792,460 | 25,799,047 | 25,769,018 | ||||||||||||||
| KEY RATIOS | |||||||||||||||||||
| Return on Average Assets | 1.70 | % | 1.53 | % | 1.42 | % | 1.50 | % | 1.40 | % | |||||||||
| Return on Average Total Equity | 15.59 | 14.60 | 13.87 | 14.40 | 14.12 | ||||||||||||||
| Average Equity to Average Assets | 10.88 | 10.47 | 10.21 | 10.44 | 9.94 | ||||||||||||||
| Net Interest Margin | 3.48 | 3.50 | 3.25 | 3.45 | 3.18 | ||||||||||||||
| Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income) | 47.92 | 50.65 | 48.22 | 48.93 | 49.34 | ||||||||||||||
| Loans to Deposits | 89.99 | 87.12 | 86.73 | 89.99 | 86.73 | ||||||||||||||
| Investment Securities to Total Assets | 16.96 | 16.89 | 16.82 | 16.96 | 16.82 | ||||||||||||||
| Tier 1 Leverage (3) | 12.39 | 12.56 | 12.15 | 12.39 | 12.15 | ||||||||||||||
| Tier 1 Risk-Based Capital (3) | 14.77 | 15.05 | 14.64 | 14.77 | 14.64 | ||||||||||||||
| Common Equity Tier 1 (CET1) (3) | 14.77 | 15.05 | 14.64 | 14.77 | 14.64 | ||||||||||||||
| Total Capital (3) | 15.92 | 16.21 | 15.90 | 15.92 | 15.90 | ||||||||||||||
| Tangible Capital (2) | 10.86 | 10.79 | 10.19 | 10.86 | 10.19 | ||||||||||||||
| Adjusted Tangible Capital (2) | 12.45 | 12.57 | 12.37 | 12.45 | 12.37 | ||||||||||||||
| ASSET QUALITY | |||||||||||||||||||
| Loans Past Due 30 - 89 Days | $ | 2,320 | $ | 984 | $ | 4,273 | $ | 2,320 | $ | 4,273 | |||||||||
| Loans Past Due 90 Days or More | 7 | 7 | 28 | 7 | 28 | ||||||||||||||
| Nonaccrual Loans | 20,872 | 18,701 | 56,431 | 20,872 | 56,431 | ||||||||||||||
| Nonperforming Loans | 20,879 | 18,708 | 56,459 | 20,879 | 56,459 | ||||||||||||||
| Other Real Estate Owned | 0 | 284 | 284 | 0 | 284 | ||||||||||||||
| Other Nonperforming Assets | 47 | 82 | 143 | 47 | 143 | ||||||||||||||
| Total Nonperforming Assets | 20,926 | 19,074 | 56,886 | 20,926 | 56,886 | ||||||||||||||
| Individually Analyzed Loans | 43,024 | 39,497 | 78,647 | 43,024 | 78,647 | ||||||||||||||
| Non-Individually Analyzed Watch List Loans | 140,997 | 117,746 | 132,499 | 140,997 | 132,499 | ||||||||||||||
| Total Individually Analyzed and Watch List Loans | 184,021 | 157,243 | 211,146 | 184,021 | 211,146 | ||||||||||||||
| Gross Charge Offs | 221 | 573 | 1,657 | 30,414 | 3,468 | ||||||||||||||
| Recoveries | 1,048 | 189 | 299 | 1,649 | 706 | ||||||||||||||
| Net Charge Offs/(Recoveries) | (827 | ) | 384 | 1,358 | 28,765 | 2,762 | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| (Unaudited – Dollars in thousands, except per share data) | December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||
| OTHER DATA | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Net Charge Offs/(Recoveries) to Average Loans | (0.06)% | 0.03 | % | 0.11 | % | 0.55 | % | 0.05 | % | ||||||||||
| Credit Loss Reserve to Loans | 1.28 | 1.30 | 1.68 | 1.28 | 1.68 | ||||||||||||||
| Credit Loss Reserve to Nonperforming Loans | 330.45 | 364.38 | 152.25 | 330.45 | 152.25 | ||||||||||||||
| Nonperforming Loans to Loans | 0.39 | 0.36 | 1.10 | 0.39 | 1.10 | ||||||||||||||
| Nonperforming Assets to Assets | 0.30 | 0.28 | 0.85 | 0.30 | 0.85 | ||||||||||||||
| Total Individually Analyzed and Watch List Loans to Total Loans | 3.42 | 3.00 | 4.13 | 3.42 | 4.13 | ||||||||||||||
| Full Time Equivalent Employees | 669 | 666 | 643 | 669 | 643 | ||||||||||||||
| Offices | 55 | 55 | 54 | 55 | 54 | ||||||||||||||
______________________________
(1) Core deposits equals deposits less brokered deposits.
(2) Non-GAAP financial measure - see "Reconciliation of Non-GAAP Financial Measures".
(3) Capital ratios for December 31, 2025 are preliminary until the Call Report is filed.
| CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share data) | |||||||
| | December 31, 2025 | December 31, 2024 | |||||
| | (Unaudited) | | |||||
| ASSETS | |||||||
| Cash and due from banks | $ | 57,139 | $ | 71,733 | |||
| Short-term investments | 84,179 | 96,472 | |||||
| Total cash and cash equivalents | 141,318 | 168,205 | |||||
| | |||||||
| Securities available-for-sale, at fair value | 1,052,062 | 991,426 | |||||
| Securities held-to-maturity, at amortized cost (fair value of | 133,208 | 131,568 | |||||
| Real estate mortgage loans held-for-sale | 2,707 | 1,700 | |||||
| Loans, net of allowance for credit losses of | 5,306,354 | 5,031,988 | |||||
| Land, premises and equipment, net | 65,542 | 60,489 | |||||
| Bank owned life insurance | 129,978 | 113,320 | |||||
| Federal Reserve and Federal Home Loan Bank stock | 21,420 | 21,420 | |||||
| Accrued interest receivable | 28,997 | 28,446 | |||||
| Goodwill | 4,970 | 4,970 | |||||
| Other assets | 103,466 | 124,842 | |||||
| Total assets | $ | 6,990,022 | $ | 6,678,374 | |||
| | |||||||
| | |||||||
| LIABILITIES | |||||||
| Noninterest bearing deposits | $ | 1,221,327 | $ | 1,297,456 | |||
| Interest bearing deposits | 4,752,023 | 4,603,510 | |||||
| Total deposits | 5,973,350 | 5,900,966 | |||||
| | |||||||
| Borrowings - Federal Home Loan Bank advances: | |||||||
| Short-term advance | 170,000 | 0 | |||||
| Long-term advance | 1,200 | 0 | |||||
| Other borrowings | 13,000 | 0 | |||||
| Total borrowings | 184,200 | 0 | |||||
| | |||||||
| Accrued interest payable | 8,868 | 15,117 | |||||
| Other liabilities | 61,112 | 78,380 | |||||
| Total liabilities | 6,227,530 | 5,994,463 | |||||
| | |||||||
| STOCKHOLDERS’ EQUITY | |||||||
| Common stock: 90,000,000 shares authorized, no par value | |||||||
| 26,023,644 shares issued and 25,219,634 outstanding as of December 31, 2025 | |||||||
| 25,978,831 shares issued and 25,509,592 outstanding as of December 31, 2024 | 136,965 | 129,664 | |||||
| Retained earnings | 788,345 | 736,412 | |||||
| Accumulated other comprehensive income (loss) | (127,137 | ) | (166,500 | ) | |||
| Treasury stock at cost (804,010 shares as of December 31, 2025, 469,239 shares as of December 31, 2024) | (35,770 | ) | (15,754 | ) | |||
| Total stockholders’ equity | 762,403 | 683,822 | |||||
| Noncontrolling interest | 89 | 89 | |||||
| Total equity | 762,492 | 683,911 | |||||
| Total liabilities and equity | $ | 6,990,022 | $ | 6,678,374 | |||
| CONSOLIDATED STATEMENTS OF INCOME (unaudited - in thousands, except share and per share data) | ||||||||||||
| | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
| | 2025 | 2024 | 2025 | 2024 | ||||||||
| NET INTEREST INCOME | ||||||||||||
| Interest and fees on loans | ||||||||||||
| Taxable | $ | 84,208 | $ | 83,253 | $ | 335,856 | $ | 335,639 | ||||
| Tax exempt | 316 | 296 | 1,186 | 2,126 | ||||||||
| Interest and dividends on securities | ||||||||||||
| Taxable | 3,720 | 2,997 | 14,055 | 12,048 | ||||||||
| Tax exempt | 3,908 | 3,914 | 15,650 | 15,714 | ||||||||
| Other interest income | 1,856 | 2,910 | 6,988 | 7,631 | ||||||||
| Total interest income | 94,008 | 93,370 | 373,735 | 373,158 | ||||||||
| | | | | | ||||||||
| Interest on deposits | 36,717 | 41,676 | 150,732 | 172,759 | ||||||||
| Interest on short-term borrowings | 98 | 0 | 1,986 | 3,720 | ||||||||
| Total interest expense | 36,815 | 41,676 | 152,718 | 176,479 | ||||||||
| | | | | | ||||||||
| NET INTEREST INCOME | 57,193 | 51,694 | 221,017 | 196,679 | ||||||||
| | | | | | ||||||||
| Provision for credit losses | 0 | 3,691 | 11,800 | 16,750 | ||||||||
| | | | | | ||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 57,193 | 48,003 | 209,217 | 179,929 | ||||||||
| | | | | | ||||||||
| NONINTEREST INCOME | ||||||||||||
| Wealth advisory fees | 2,976 | 2,699 | 11,365 | 10,469 | ||||||||
| Investment brokerage fees | 639 | 456 | 2,198 | 1,894 | ||||||||
| Service charges on deposit accounts | 2,952 | 2,825 | 11,474 | 11,157 | ||||||||
| Loan and service fees | 2,985 | 2,977 | 12,294 | 11,832 | ||||||||
| Merchant and interchange fee income | 848 | 889 | 3,416 | 3,542 | ||||||||
| Bank owned life insurance income | 1,327 | 1,216 | 4,256 | 4,210 | ||||||||
| Interest rate swap fee income | 63 | 0 | 83 | 0 | ||||||||
| Mortgage banking income | 67 | 48 | 134 | 116 | ||||||||
| Net securities gains (losses) | 0 | 0 | 0 | (46 | ) | |||||||
| Net gain on Visa shares | 0 | 0 | 0 | 8,996 | ||||||||
| Other income | 746 | 766 | 2,751 | 4,674 | ||||||||
| Total noninterest income | 12,603 | 11,876 | 47,971 | 56,844 | ||||||||
| | | | | | ||||||||
| NONINTEREST EXPENSE | ||||||||||||
| Salaries and employee benefits | 19,881 | 17,261 | 75,293 | 66,728 | ||||||||
| Net occupancy expense | 1,920 | 1,706 | 7,524 | 6,865 | ||||||||
| Equipment costs | 1,422 | 1,405 | 5,716 | 5,612 | ||||||||
| Data processing fees and supplies | 4,001 | 3,742 | 16,534 | 15,161 | ||||||||
| Corporate and business development | 1,148 | 950 | 5,277 | 4,965 | ||||||||
| FDIC insurance and other regulatory fees | 844 | 894 | 3,361 | 3,465 | ||||||||
| Professional fees | 1,886 | 2,275 | 7,698 | 8,950 | ||||||||
| Other expense | 2,343 | 2,420 | 10,202 | 13,338 | ||||||||
| Total noninterest expense | 33,445 | 30,653 | 131,605 | 125,084 | ||||||||
| | | | | | ||||||||
| INCOME BEFORE INCOME TAX EXPENSE | 36,351 | 29,226 | 125,583 | 111,689 | ||||||||
| Income tax expense | 6,445 | 5,036 | 22,222 | 18,211 | ||||||||
| NET INCOME | $ | 29,906 | $ | 24,190 | $ | 103,361 | $ | 93,478 | ||||
| | | | | | ||||||||
| BASIC WEIGHTED AVERAGE COMMON SHARES | 25,623,703 | 25,686,276 | 25,687,159 | 25,676,543 | ||||||||
| | | | | | ||||||||
| BASIC EARNINGS PER COMMON SHARE | $ | 1.16 | $ | 0.94 | $ | 4.02 | $ | 3.64 | ||||
| | ||||||||||||
| DILUTED WEIGHTED AVERAGE COMMON SHARES | 25,770,280 | 25,792,460 | 25,799,047 | 25,769,018 | ||||||||
| | ||||||||||||
| DILUTED EARNINGS PER COMMON SHARE | $ | 1.16 | $ | 0.94 | $ | 4.01 | $ | 3.63 | ||||
| LAKELAND FINANCIAL CORPORATION LOAN DETAIL (unaudited, in thousands) | |||||||||||||||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | |||||||||||||||||||
| Commercial and industrial loans: | | | | | |||||||||||||||||
| Working capital lines of credit loans | $ | 711,742 | 13.2 | % | $ | 709,645 | 13.5 | % | $ | 649,609 | 12.7 | % | |||||||||
| Non-working capital loans | 841,947 | 15.7 | 808,371 | 15.4 | 801,256 | 15.6 | |||||||||||||||
| Total commercial and industrial loans | 1,553,689 | 28.9 | 1,518,016 | 28.9 | 1,450,865 | 28.3 | |||||||||||||||
| | | | | ||||||||||||||||||
| Commercial real estate and multi-family residential loans: | |||||||||||||||||||||
| Construction and land development loans | 497,239 | 9.2 | 574,896 | 10.9 | 567,781 | 11.1 | |||||||||||||||
| Owner occupied loans | 807,335 | 15.0 | 804,253 | 15.3 | 807,090 | 15.8 | |||||||||||||||
| Nonowner occupied loans | 923,708 | 17.2 | 863,085 | 16.5 | 872,671 | 17.0 | |||||||||||||||
| Multifamily loans | 438,233 | 8.1 | 413,016 | 7.9 | 344,978 | 6.7 | |||||||||||||||
| Total commercial real estate and multi-family residential loans | 2,666,515 | 49.5 | 2,655,250 | 50.6 | 2,592,520 | 50.6 | |||||||||||||||
| | | | | ||||||||||||||||||
| Agri-business and agricultural loans: | |||||||||||||||||||||
| Loans secured by farmland | 155,073 | 2.9 | 153,904 | 2.9 | 156,609 | 3.1 | |||||||||||||||
| Loans for agricultural production | 251,783 | 4.7 | 186,068 | 3.6 | 230,787 | 4.5 | |||||||||||||||
| Total agri-business and agricultural loans | 406,856 | 7.6 | 339,972 | 6.5 | 387,396 | 7.6 | |||||||||||||||
| | | | | ||||||||||||||||||
| Other commercial loans | 97,381 | 1.8 | 91,833 | 1.7 | 95,584 | 1.9 | |||||||||||||||
| Total commercial loans | 4,724,441 | 87.8 | 4,605,071 | 87.7 | 4,526,365 | 88.4 | |||||||||||||||
| | | | | ||||||||||||||||||
| Consumer 1-4 family mortgage loans: | |||||||||||||||||||||
| Closed end first mortgage loans | 267,134 | 5.0 | 273,580 | 5.2 | 259,286 | 5.1 | |||||||||||||||
| Open end and junior lien loans | 251,185 | 4.7 | 241,256 | 4.6 | 214,125 | 4.2 | |||||||||||||||
| Residential construction and land development loans | 18,873 | 0.3 | 18,706 | 0.4 | 16,818 | 0.3 | |||||||||||||||
| Total consumer 1-4 family mortgage loans | 537,192 | 10.0 | 533,542 | 10.2 | 490,229 | 9.6 | |||||||||||||||
| | | | | ||||||||||||||||||
| Other consumer loans | 116,224 | 2.2 | 112,430 | 2.1 | 104,041 | 2.0 | |||||||||||||||
| Total consumer loans | 653,416 | 12.2 | 645,972 | 12.3 | 594,270 | 11.6 | |||||||||||||||
| Subtotal | 5,377,857 | 100.0 | % | 5,251,043 | 100.0 | % | 5,120,635 | 100.0 | % | ||||||||||||
| Less: Allowance for credit losses | (68,995 | ) | | (68,168 | ) | | (85,960 | ) | | ||||||||||||
| Net deferred loan fees | (2,508 | ) | | (2,424 | ) | | (2,687 | ) | | ||||||||||||
| Loans, net | $ | 5,306,354 | $ | 5,180,451 | | $ | 5,031,988 | | |||||||||||||
| LAKELAND FINANCIAL CORPORATION DEPOSITS AND BORROWINGS (unaudited, in thousands) | ||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | ||||||
| Noninterest bearing demand deposits | $ | 1,221,327 | $ | 1,268,241 | $ | 1,297,456 | ||
| Savings and transaction accounts: | ||||||||
| Savings deposits | 285,834 | 281,291 | 276,179 | |||||
| Interest bearing demand deposits | 3,715,463 | 3,689,037 | 3,471,455 | |||||
| Time deposits: | ||||||||
| Deposits of | 549,381 | 580,499 | 642,777 | |||||
| Other time deposits | 201,345 | 205,250 | 213,099 | |||||
| Total deposits | $ | 5,973,350 | $ | 6,024,318 | $ | 5,900,966 | ||
| FHLB advances and other borrowings | 184,200 | 56,200 | 0 | |||||
| Total funding sources | $ | 6,157,550 | $ | 6,080,518 | $ | 5,900,966 | ||
| LAKELAND FINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||
| Three Months Ended December 31, 2025 | Three Months Ended September 30, 2025 | Three Months Ended December 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) | $ | 5,245,483 | $ | 84,208 | 6.37 | % | $ | 5,180,847 | $ | 85,490 | 6.55 | % | $ | 5,060,397 | $ | 83,253 | 6.54 | % | ||||||||||||
| Tax exempt (1) | 26,204 | 392 | 5.93 | 24,986 | 354 | 5.62 | 26,217 | 364 | 5.52 | |||||||||||||||||||||
| Investments: (1) | ||||||||||||||||||||||||||||||
| Securities | 1,175,389 | 8,666 | 2.93 | 1,127,094 | 8,444 | 2.97 | 1,134,011 | 7,953 | 2.79 | |||||||||||||||||||||
| Short-term investments | 2,752 | 24 | 3.46 | 2,795 | 27 | 3.83 | 2,765 | 29 | 4.17 | |||||||||||||||||||||
| Interest bearing deposits | 191,756 | 1,832 | 3.79 | 156,918 | 1,679 | 4.25 | 247,530 | 2,881 | 4.63 | |||||||||||||||||||||
| Total earning assets | $ | 6,641,584 | $ | 95,122 | 5.68 | % | $ | 6,492,640 | $ | 95,994 | 5.87 | % | $ | 6,470,920 | $ | 94,480 | 5.81 | % | ||||||||||||
| Less: Allowance for credit losses | (68,391 | ) | (67,115 | ) | (84,687 | ) | ||||||||||||||||||||||||
| Nonearning Assets | ||||||||||||||||||||||||||||||
| Cash and due from banks | 68,620 | 62,671 | 67,994 | |||||||||||||||||||||||||||
| Premises and equipment | 64,928 | 64,391 | 60,325 | |||||||||||||||||||||||||||
| Other nonearning assets | 287,213 | 298,084 | 281,044 | |||||||||||||||||||||||||||
| Total assets | $ | 6,993,954 | $ | 6,850,671 | $ | 6,795,596 | ||||||||||||||||||||||||
| Interest Bearing Liabilities | ||||||||||||||||||||||||||||||
| Savings deposits | $ | 280,620 | $ | 40 | 0.06 | % | $ | 284,553 | $ | 41 | 0.06 | % | $ | 274,960 | $ | 43 | 0.06 | % | ||||||||||||
| Interest bearing checking accounts | 3,850,205 | 29,906 | 3.08 | 3,731,706 | 31,382 | 3.34 | 3,505,470 | 31,562 | 3.58 | |||||||||||||||||||||
| Time deposits: | ||||||||||||||||||||||||||||||
| In denominations under | 203,083 | 1,635 | 3.19 | 204,997 | 1,678 | 3.25 | 214,429 | 1,921 | 3.56 | |||||||||||||||||||||
| In denominations over | 549,588 | 5,136 | 3.71 | 563,920 | 5,345 | 3.76 | 734,342 | 8,150 | 4.42 | |||||||||||||||||||||
| Short-term borrowings | 8,354 | 98 | 4.65 | 31,739 | 368 | 4.60 | 5 | 0 | 5.30 | |||||||||||||||||||||
| Long-term borrowings | 1,200 | 0 | 0.00 | 1,200 | 0 | 0.00 | 0 | 0 | 0.00 | |||||||||||||||||||||
| Total interest bearing liabilities | $ | 4,893,050 | $ | 36,815 | 2.99 | % | $ | 4,818,115 | $ | 38,814 | 3.20 | % | $ | 4,729,206 | $ | 41,676 | 3.51 | % | ||||||||||||
| Noninterest Bearing Liabilities | ||||||||||||||||||||||||||||||
| Demand deposits | 1,272,030 | 1,244,381 | 1,281,921 | |||||||||||||||||||||||||||
| Other liabilities | 67,920 | 70,747 | 90,725 | |||||||||||||||||||||||||||
| Stockholders' Equity | 760,954 | 717,428 | 693,744 | |||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 6,993,954 | $ | 6,850,671 | $ | 6,795,596 | ||||||||||||||||||||||||
| Interest Margin Recap | ||||||||||||||||||||||||||||||
| Interest income/average earning assets | 95,122 | 5.68 | % | 95,994 | 5.87 | % | 94,480 | 5.81 | % | |||||||||||||||||||||
| Interest expense/average earning assets | 36,815 | 2.20 | 38,814 | 2.37 | 41,676 | 2.56 | ||||||||||||||||||||||||
| Net interest income and margin | $ | 58,307 | 3.48 | % | $ | 57,180 | 3.50 | % | $ | 52,804 | 3.25 | % | ||||||||||||||||||
(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 December 31, 2025, September 30, 2025, and December 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 | Twelve Months Ended | ||||||||||||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||||
| Total Equity | $ | 762,492 | $ | 747,503 | $ | 683,911 | $ | 762,492 | $ | 683,911 | |||||||||
| Less: Goodwill | (4,970 | ) | (4,970 | ) | (4,970 | ) | (4,970 | ) | (4,970 | ) | |||||||||
| Plus: DTA Related to Goodwill | 1,167 | 1,167 | 1,167 | 1,167 | 1,167 | ||||||||||||||
| Tangible Common Equity | 758,689 | 743,700 | 680,108 | 758,689 | 680,108 | ||||||||||||||
| Market Value Adjustment in AOCI | 126,609 | 140,165 | 165,932 | 126,609 | 165,932 | ||||||||||||||
| Adjusted Tangible Common Equity | 885,298 | 883,865 | 846,040 | 885,298 | 846,040 | ||||||||||||||
| Assets | $ | 6,990,022 | $ | 6,895,028 | $ | 6,678,374 | $ | 6,990,022 | $ | 6,678,374 | |||||||||
| Less: Goodwill | (4,970 | ) | (4,970 | ) | (4,970 | ) | (4,970 | ) | (4,970 | ) | |||||||||
| Plus: DTA Related to Goodwill | 1,167 | 1,167 | 1,167 | 1,167 | 1,167 | ||||||||||||||
| Tangible Assets | 6,986,219 | 6,891,225 | 6,674,571 | 6,986,219 | 6,674,571 | ||||||||||||||
| Market Value Adjustment in AOCI | 126,609 | 140,165 | 165,932 | 126,609 | 165,932 | ||||||||||||||
| Adjusted Tangible Assets | 7,112,828 | 7,031,390 | 6,840,503 | 7,112,828 | 6,840,503 | ||||||||||||||
| Ending Common Shares Issued | 25,396,653 | 25,704,243 | 25,689,730 | 25,396,653 | 25,689,730 | ||||||||||||||
| Tangible Book Value Per Common Share | $ | 29.87 | $ | 28.93 | $ | 26.47 | $ | 29.87 | $ | 26.47 | |||||||||
| Tangible Common Equity/Tangible Assets | 10.86 | % | 10.79 | % | 10.19 | % | 10.86 | % | 10.19 | % | |||||||||
| Adjusted Tangible Common Equity/Adjusted Tangible Assets | 12.45 | % | 12.57 | % | 12.37 | % | 12.45 | % | 12.37 | % | |||||||||
| Net Interest Income | $ | 57,193 | $ | 56,073 | $ | 51,694 | $ | 221,017 | $ | 196,679 | |||||||||
| Plus: Noninterest Income | 12,603 | 12,954 | 11,876 | 47,971 | 56,844 | ||||||||||||||
| Minus: Noninterest Expense | (33,445 | ) | (34,965 | ) | (30,653 | ) | (131,605 | ) | (125,084 | ) | |||||||||
| Pretax Pre-Provision Earnings | $ | 36,351 | $ | 34,062 | $ | 32,917 | $ | 137,383 | $ | 128,439 | |||||||||
Adjusted core noninterest income, adjusted core noninterest expense, 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 the net gain on Visa shares, legal accrual and wire fraud loss insurance recoveries for the periods presented below. Management considers these measures of financial performance to be meaningful to understanding the company’s core business performance for the periods presented below.
A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).
| Twelve Months Ended | |||||||
| December 31, 2025 | December 31, 2024 | ||||||
| Noninterest Income | $ | 47,971 | $ | 56,844 | |||
| Less: Net Gain on Visa Shares | 0 | (8,996 | ) | ||||
| Less: Insurance Recovery | 0 | (1,000 | ) | ||||
| Adjusted Core Noninterest Income | $ | 47,971 | $ | 46,848 | |||
| Noninterest Expense | $ | 131,605 | $ | 125,084 | |||
| Less: Legal Accrual | 0 | (4,537 | ) | ||||
| Adjusted Core Noninterest Expense | $ | 131,605 | $ | 120,547 | |||
| Earnings Before Income Taxes | $ | 125,583 | $ | 111,689 | |||
| Adjusted Core Impact: | |||||||
| Noninterest Income | 0 | (9,996 | ) | ||||
| Noninterest Expense | 0 | 4,537 | |||||
| Total Adjusted Core Impact | 0 | (5,459 | ) | ||||
| Adjusted Earnings Before Income Taxes | 125,583 | 106,230 | |||||
| Tax Effect | (22,222 | ) | (16,853 | ) | |||
| Core Operational Profitability (1) | $ | 103,361 | $ | 89,377 | |||
| Diluted Earnings Per Common Share | $ | 4.01 | $ | 3.63 | |||
| Impact of Adjusted Core Items | 0.00 | (0.16 | ) | ||||
| Core Operational Diluted Earnings Per Common Share | $ | 4.01 | $ | 3.47 | |||
| Adjusted Core Efficiency Ratio | 48.93 | % | 49.49 | % | |||
(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 were Lakeland Financial (LKFN) Q4 2025 net income and EPS?
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