Lakeland Financial Reports Record Second Quarter Performance; Net Income Increases 5% to $28.4 million on 7% Revenue Expansion; Average Loans Grow by 6%
Rhea-AI Summary
Lakeland Financial (Nasdaq: LKFN) reported record second quarter 2026 net income of $28.4 million, up 5% from $27.0 million a year earlier, with diluted EPS rising 9% to $1.13. First-half 2026 net income increased 17% to $54.9 million and EPS rose 19% to $2.17.
Second quarter total revenue grew 7% year over year to $70.9 million, driven by a 6% increase in net interest income and 9% growth in noninterest income. Loans rose 7% to $5.58 billion, while core deposits reached $6.03 billion, representing 95% of total deposits. Net interest margin expanded 7 basis points to 3.49%.
Capital remained strong with a total risk-based capital ratio of 15.61% and a tangible common equity ratio of 10.63%. The company repurchased 70,873 shares for $4.1 million and increased its quarterly dividend 4% to $0.52 per share. Tangible book value per share grew 12% year over year to $30.75.
Positive
- Net income up 5% YoY to $28.4 million in Q2 2026
- First-half net income up 17% YoY to $54.9 million
- Total revenue up 7% YoY in Q2 to $70.9 million
- Loans up 7% YoY to $5.58 billion; strong commercial and consumer growth
- Net interest margin expanded 7 bps YoY to 3.49%
- Tangible book value per share up 12% YoY to $30.75
- Share repurchases of 70,873 shares for $4.1 million in Q2
- Dividend per share increased 4% YoY to $0.52
- Tangible common equity ratio improved to 10.63% from 10.15% YoY
Negative
- Return on average equity declined YoY to 15.00% from 15.52%
- Commercial deposits decreased 6% YoY to $2.11 billion
- Brokered deposits nearly doubled YoY, up 99% to $299.2 million
- Common equity tier 1 ratio decreased YoY to 14.47% from 14.73%
- Total risk-based capital ratio decreased YoY to 15.61% from 15.86%
News Explained
The buyback program had $17.1 million authorized for future purchases at June 30, 2026, after $4.1 million was spent in the quarter.
At June 30, the current repurchase program had
The release distinguishes the completed quarter purchases—
The
Future capital-return activity can be checked against the stated
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 21 | Leadership recognition | Positive | +0.1% | Two executives named to the Indiana 250 list for 2026 |
| Apr 27 | 1Q26 earnings report | Positive | +3.1% | Record first-quarter results included higher earnings, loans, revenue, and net interest margin |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The two prior tracked news items were followed by positive 24-hour reactions of 0.13% and 3.12%, with the prior earnings report producing the larger move.
Key Terms
net interest margin financial
loan beta financial
deposit beta financial
nonaccrual loans financial
common equity tier 1 capital ratio regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
WARSAW, Ind., July 27, 2026 (GLOBE NEWSWIRE) -- Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported record second quarter net income of
The company further reported record performance for the first half of the year with net income of
Total revenue was
“During the first half of 2026, the Lake City Bank team delivered strong operating results led by healthy loan and revenue growth,” stated David M. Findlay, Chairman and CEO. “Our record second quarter net income reflects the continued execution of our proven organic growth strategy. It’s been a rewarding six months of 2026.”
Quarterly Financial Performance
Second Quarter 2026 versus Second Quarter 2025 highlights:
- Loans grew by
$352.8 million , or7% , to$5.58 billion - Total revenue improved by
7% from$66.4 million to$70.9 million - Net interest margin improved 7 basis points to
3.49% versus3.42% - Net interest income increased by
$3.4 million , or6% - Noninterest income increased by
$1.1 million , or9% - Return on average equity of
15.00% , compared to15.52% - Return on average assets improved to
1.59% , compared to1.57% - Tangible book value per share grew by
$3.27 , or12% , to$30.75 - Watch list loans as a percentage of total loans improved to
3.55% from3.67% - Nonaccrual loans declined to
$19.9 million , compared to$30.6 million - Common dividend per share increased to
$0.52 , or4% , compared to$0.50 - Tangible capital ratio improved to
10.63% , compared to10.15% - Tangible common equity improved by
$63.4 million , or9% - Common equity tier 1 capital ratio of
14.47% , compared to14.73% - Total risk-based capital ratio of
15.61% , compared to15.86% - Repurchased 70,873 shares at a weighted average per share price of
$58.20
Second Quarter 2026 versus First Quarter 2026 highlights:
- Total loans increased by
$106.3 million , or2% , to$5.58 billion - Core deposits expansion of
$215.7 million , or4% , to$6.03 billion - Total revenue grew by
2% from$69.7 million to$70.9 million - Return on average equity improved to
15.00% , compared to13.89% - Return on average assets improved to
1.59% , compared to1.52% - Tangible book value per share grew by
$1.06 , or4% , to$30.75 - Net interest margin remained stable at
3.49% - Net interest income increased by
$1.5 million , or3% - Noninterest expense declined by
2% to$34.5 million from$35.2 million - Common equity tier 1 capital ratio improved to
14.47% , compared to14.45% - Total risk-based capital ratio improved to
15.61% , compared to15.58% - Tangible capital ratio improved to
10.63% , compared to10.53% - Tangible common equity improved by
$24.4 million , or3%
Net Interest Margin
Net interest margin was
Net interest margin remained at
Net interest income was
“During the second quarter of 2026, our net interest margin remained unchanged at
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, was
The company utilized its share repurchase program to repurchase 70,873 shares of its common stock at a weighted average price per share of
As announced on July 14, 2026, the board of directors approved a cash dividend for the second quarter of
“Strength of capital continues to support our growing balance sheet,” stated Kristin L. Pruitt, President. “Tangible common equity improved by
Loan Portfolio
Average total loans of
Total loans, net of deferred loan fees, increased by
Commercial loan originations for the second quarter were approximately
Findlay added, “Our year-over-year organic loan growth of
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) | June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||||||||||||
| Retail | $ | 1,769,029 | 28.0 | % | $ | 1,800,420 | 29.1 | % | $ | 1,755,750 | 28.4 | % | |||||||||
| Commercial | 2,113,784 | 33.4 | 2,136,404 | 34.5 | 2,256,620 | 36.6 | |||||||||||||||
| Public funds | 2,147,600 | 33.9 | 1,877,855 | 30.3 | 2,014,047 | 32.6 | |||||||||||||||
| Core deposits | 6,030,413 | 95.3 | 5,814,679 | 93.9 | 6,026,417 | 97.6 | |||||||||||||||
| Brokered deposits | 299,155 | 4.7 | 375,581 | 6.1 | 150,416 | 2.4 | |||||||||||||||
| Total | $ | 6,329,568 | 100.0 | % | $ | 6,190,260 | 100.0 | % | $ | 6,176,833 | 100.0 | % | |||||||||
Total deposits increased
On a linked quarter basis, total deposits increased
Average total deposits were
On a linked quarter basis, average total deposits increased by
Checking account growth as of June 30, 2026, compared to June 30, 2025, includes growth of
“Core deposits represented
Asset Quality
The company recorded a provision for credit losses of
The allowance for credit loss reserve to total loans was
Nonperforming assets decreased by
Total individually analyzed and watch list loans increased by
“Our loan portfolio is well-diversified, and our loan portfolio continues to demonstrate stable performance trends,” commented Findlay. “Our borrowers continue to navigate the changing economic landscape well and our mid-year loan portfolio reviews did not identify significant credit concerns.”
Investment Portfolio Overview
Total investment securities were
Noninterest Income
The company’s noninterest income increased
Noninterest income for the second quarter of 2026 decreased by
Findlay noted, “We are pleased to report nearly double-digit growth in quarterly noninterest income on a year-over-year basis and
Noninterest income increased by
Noninterest Expense
Noninterest expense increased
On a linked quarter basis, noninterest expense decreased by
Noninterest expense increased by
The company’s efficiency ratio was
“We are pleased to report that strong revenue growth during the second quarter of 2026 improved our efficiency ratio on a linked quarter basis. Our largest investments in the business continue to be focused on revenue generating human capital, strategic branch development in our Lake City Bank footprint and investments in technology solutions,” noted Findlay. “In addition to two new branch locations under development in Indianapolis currently, we have future plans for increased presence in our South Bend and Fort Wayne markets.”
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, which are incorporated herein by reference.
| LAKELAND FINANCIAL CORPORATION SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| (unaudited – dollars in thousands, except per share data) | June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||
| END OF PERIOD BALANCES | 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Assets | $ | 7,242,959 | $ | 7,083,680 | $ | 6,964,301 | $ | 7,242,959 | $ | 6,964,301 | |||||||||
| Investments | 1,169,188 | 1,160,608 | 1,129,346 | 1,169,188 | 1,129,346 | ||||||||||||||
| Loans | 5,579,625 | 5,473,358 | 5,226,827 | 5,579,625 | 5,226,827 | ||||||||||||||
| Allowance for Credit Losses | 70,598 | 68,914 | 66,552 | 70,598 | 66,552 | ||||||||||||||
| Deposits | 6,329,568 | 6,190,260 | 6,176,833 | 6,329,568 | 6,176,833 | ||||||||||||||
| Brokered Deposits | 299,155 | 375,581 | 150,416 | 299,155 | 150,416 | ||||||||||||||
| Core Deposits (1) | 6,030,413 | 5,814,679 | 6,026,417 | 6,030,413 | 6,026,417 | ||||||||||||||
| Total Equity | 773,374 | 748,993 | 709,987 | 773,374 | 709,987 | ||||||||||||||
| Goodwill Net of Deferred Tax Assets | 3,803 | 3,803 | 3,803 | 3,803 | 3,803 | ||||||||||||||
| Tangible Common Equity (2) | 769,571 | 745,190 | 706,184 | 769,571 | 706,184 | ||||||||||||||
| Adjusted Tangible Common Equity (2) | 893,530 | 880,296 | 866,758 | 893,530 | 866,758 | ||||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||
| Total Assets | $ | 7,190,663 | $ | 7,082,213 | $ | 6,904,681 | $ | 7,136,737 | $ | 6,834,217 | |||||||||
| Earning Assets | 6,832,702 | 6,729,394 | 6,570,607 | 6,781,334 | 6,501,092 | ||||||||||||||
| Investments | 1,161,807 | 1,190,278 | 1,125,597 | 1,175,964 | 1,130,970 | ||||||||||||||
| Loans | 5,531,344 | 5,440,876 | 5,229,646 | 5,486,359 | 5,207,903 | ||||||||||||||
| Total Deposits | 6,312,674 | 6,055,539 | 6,096,504 | 6,184,817 | 5,986,227 | ||||||||||||||
| Interest Bearing Deposits | 5,084,953 | 4,821,000 | 4,852,446 | 4,953,706 | 4,735,066 | ||||||||||||||
| Interest Bearing Liabilities | 5,133,439 | 5,004,623 | 4,886,943 | 5,069,387 | 4,802,175 | ||||||||||||||
| Total Equity | 760,533 | 772,946 | 696,976 | 766,706 | 696,517 | ||||||||||||||
| INCOME STATEMENT DATA | |||||||||||||||||||
| Net Interest Income | $ | 58,301 | $ | 56,773 | $ | 54,876 | $ | 115,074 | $ | 107,751 | |||||||||
| Net Interest Income-Fully Tax Equivalent | 59,404 | 57,878 | 55,986 | 117,282 | 109,970 | ||||||||||||||
| Provision for Credit Losses | 1,708 | 2,000 | 3,000 | 3,708 | 9,800 | ||||||||||||||
| Noninterest Income | 12,572 | 12,933 | 11,486 | 25,505 | 22,414 | ||||||||||||||
| Noninterest Expense | 34,457 | 35,151 | 30,432 | 69,608 | 63,195 | ||||||||||||||
| Net Income | 28,440 | 26,478 | 26,966 | 54,918 | 47,051 | ||||||||||||||
| Pretax Pre-Provision Earnings (2) | 36,416 | 34,555 | 35,930 | 70,971 | 66,970 | ||||||||||||||
| PER SHARE DATA | |||||||||||||||||||
| Basic Net Income Per Common Share | $ | 1.14 | $ | 1.04 | $ | 1.05 | $ | 2.18 | $ | 1.83 | |||||||||
| Diluted Net Income Per Common Share | 1.13 | 1.04 | 1.04 | 2.17 | 1.82 | ||||||||||||||
| Cash Dividends Declared Per Common Share | 0.52 | 0.52 | 0.50 | 1.04 | 1.00 | ||||||||||||||
| Dividend Payout | 46.02 | % | 50.00 | % | 48.08 | % | 47.93 | % | 54.95 | % | |||||||||
| Book Value Per Common Share (equity per share issued) | $ | 30.90 | $ | 29.84 | $ | 27.63 | $ | 30.90 | $ | 27.63 | |||||||||
| Tangible Book Value Per Common Share (2) | 30.75 | 29.69 | 27.48 | 30.75 | 27.48 | ||||||||||||||
| Market Value – High | $ | 63.03 | $ | 63.80 | $ | 62.39 | $ | 63.80 | $ | 71.77 | |||||||||
| Market Value – Low | 56.56 | 54.36 | 50.00 | 54.36 | 50.00 | ||||||||||||||
| Basic Weighted Average Common Shares Outstanding | 25,058,539 | 25,344,757 | 25,707,233 | 25,201,252 | 25,711,004 | ||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| (unaudited – dollars in thousands, except per share data) | June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||
| PER SHARE DATA (continued) | 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Diluted Weighted Average Common Shares Outstanding | 25,231,590 | 25,493,920 | 25,776,205 | 25,361,745 | 25,782,817 | ||||||||||||||
| KEY RATIOS | |||||||||||||||||||
| Return on Average Assets | 1.59 | % | 1.52 | % | 1.57 | % | 1.55 | % | 1.39 | % | |||||||||
| Return on Average Total Equity | 15.00 | 13.89 | 15.52 | 14.44 | 13.62 | ||||||||||||||
| Average Equity to Average Assets | 10.58 | 10.91 | 10.09 | 10.74 | 10.19 | ||||||||||||||
| Net Interest Margin | 3.49 | 3.49 | 3.42 | 3.49 | 3.41 | ||||||||||||||
| Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income) | 48.62 | 50.43 | 45.86 | 49.51 | 48.55 | ||||||||||||||
| Loans to Deposits | 88.15 | 88.42 | 84.62 | 88.15 | 84.62 | ||||||||||||||
| Investment Securities to Total Assets | 16.14 | 16.38 | 16.22 | 16.14 | 16.22 | ||||||||||||||
| Tier 1 Leverage (3) | 12.17 | 12.20 | 12.21 | 12.17 | 12.21 | ||||||||||||||
| Tier 1 Risk-Based Capital (3) | 14.47 | 14.45 | 14.73 | 14.47 | 14.73 | ||||||||||||||
| Common Equity Tier 1 (CET1) (3) | 14.47 | 14.45 | 14.73 | 14.47 | 14.73 | ||||||||||||||
| Total Capital (3) | 15.61 | 15.58 | 15.86 | 15.61 | 15.86 | ||||||||||||||
| Tangible Capital (2) | 10.63 | 10.53 | 10.15 | 10.63 | 10.15 | ||||||||||||||
| Adjusted Tangible Capital (2) | 12.14 | 12.20 | 12.17 | 12.14 | 12.17 | ||||||||||||||
| ASSET QUALITY | |||||||||||||||||||
| Loans Past Due 30 - 89 Days | $ | 3,026 | $ | 7,416 | $ | 1,648 | $ | 3,026 | $ | 1,648 | |||||||||
| Loans Past Due 90 Days or More | 6 | 7 | 7 | 6 | 7 | ||||||||||||||
| Nonaccrual Loans | 19,946 | 20,909 | 30,627 | 19,946 | 30,627 | ||||||||||||||
| Nonperforming Loans | 19,952 | 20,916 | 30,634 | 19,952 | 30,634 | ||||||||||||||
| Other Real Estate Owned | 0 | 0 | 284 | 0 | 284 | ||||||||||||||
| Other Nonperforming Assets | 48 | 22 | 183 | 48 | 183 | ||||||||||||||
| Total Nonperforming Assets | 20,000 | 20,938 | 31,101 | 20,000 | 31,101 | ||||||||||||||
| Individually Analyzed Loans | 66,945 | 43,160 | 52,069 | 66,945 | 52,069 | ||||||||||||||
| Non-Individually Analyzed Watch List Loans | 131,070 | 139,117 | 139,548 | 131,070 | 139,548 | ||||||||||||||
| Total Individually Analyzed and Watch List Loans | 198,015 | 182,277 | 191,617 | 198,015 | 191,617 | ||||||||||||||
| Gross Charge Offs | 431 | 2,196 | 29,111 | 2,627 | 29,619 | ||||||||||||||
| Recoveries | 407 | 115 | 230 | 522 | 411 | ||||||||||||||
| Net Charge Offs/(Recoveries) | 24 | 2,081 | 28,881 | 2,105 | 29,208 | ||||||||||||||
| Net Charge Offs/(Recoveries) to Average Loans | 0.00 | % | 0.16 | % | 2.22 | % | 0.08 | % | 1.13 | % | |||||||||
| Credit Loss Reserve to Loans | 1.27 | 1.26 | 1.27 | 1.27 | 1.27 | ||||||||||||||
| Credit Loss Reserve to Nonperforming Loans | 353.84 | 329.48 | 217.25 | 353.84 | 217.25 | ||||||||||||||
| Nonperforming Loans to Loans | 0.36 | 0.38 | 0.59 | 0.36 | 0.59 | ||||||||||||||
| Nonperforming Assets to Assets | 0.28 | 0.30 | 0.45 | 0.28 | 0.45 | ||||||||||||||
| Total Individually Analyzed and Watch List Loans to Total Loans | 3.55 | 3.33 | 3.67 | 3.55 | 3.67 | ||||||||||||||
| OTHER DATA | |||||||||||||||||||
| Full Time Equivalent Employees | 695 | 674 | 675 | 695 | 675 | ||||||||||||||
| 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 June 30, 2026 are preliminary until the FR Y-9C is filed. | |
| CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share data) | |||||||
| | June 30, 2026 | December 31, 2025 | |||||
| | (unaudited) | | |||||
| ASSETS | |||||||
| Cash and due from banks | $ | 69,864 | $ | 57,139 | |||
| Short-term investments | 124,262 | 84,179 | |||||
| Total cash and cash equivalents | 194,126 | 141,318 | |||||
| | |||||||
| Securities available-for-sale, at fair value | 1,035,163 | 1,052,062 | |||||
| Securities held-to-maturity, at amortized cost (fair value of | 134,025 | 133,208 | |||||
| Real estate mortgage loans held-for-sale | 3,630 | 2,707 | |||||
| Loans, net of allowance for credit losses of | 5,509,027 | 5,306,354 | |||||
| Land, premises and equipment, net | 72,504 | 65,542 | |||||
| Bank owned life insurance | 132,366 | 129,978 | |||||
| Federal Reserve and Federal Home Loan Bank stock | 21,420 | 21,420 | |||||
| Accrued interest receivable | 29,514 | 28,997 | |||||
| Goodwill | 4,970 | 4,970 | |||||
| Other assets | 106,214 | 103,466 | |||||
| Total assets | $ | 7,242,959 | $ | 6,990,022 | |||
| | |||||||
| | |||||||
| LIABILITIES | |||||||
| Noninterest bearing deposits | $ | 1,292,033 | $ | 1,221,327 | |||
| Interest bearing deposits | 5,037,535 | 4,752,023 | |||||
| Total deposits | 6,329,568 | 5,973,350 | |||||
| | |||||||
| Borrowings - Federal Home Loan Bank advances: | |||||||
| Short-term advance | 70,000 | 170,000 | |||||
| Long-term advance | 1,200 | 1,200 | |||||
| Other borrowings | 0 | 13,000 | |||||
| Total borrowings | 71,200 | 184,200 | |||||
| | |||||||
| Accrued interest payable | 8,961 | 8,868 | |||||
| Other liabilities | 59,856 | 61,112 | |||||
| Total liabilities | 6,469,585 | 6,227,530 | |||||
| | |||||||
| STOCKHOLDERS’ EQUITY | |||||||
| Common stock: 90,000,000 shares authorized, no par value | |||||||
| 26,063,576 shares issued and 24,858,875 outstanding as of June 30, 2026 | |||||||
| 26,023,644 shares issued and 25,219,634 outstanding as of December 31, 2025 | 140,020 | 136,965 | |||||
| Retained earnings | 817,002 | 788,345 | |||||
| Accumulated other comprehensive income (loss) | (124,463 | ) | (127,137 | ) | |||
| Treasury stock at cost (1,204,701 shares as of June 30, 2026, 804,010 shares as of December 31, 2025) | (59,274 | ) | (35,770 | ) | |||
| Total stockholders’ equity | 773,285 | 762,403 | |||||
| Noncontrolling interest | 89 | 89 | |||||
| Total equity | 773,374 | 762,492 | |||||
| Total liabilities and equity | $ | 7,242,959 | $ | 6,990,022 | |||
| CONSOLIDATED STATEMENTS OF INCOME (unaudited - in thousands, except share and per share data) | |||||||||||||||
| | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| | 2026 | 2025 | 2026 | 2025 | |||||||||||
| NET INTEREST INCOME | |||||||||||||||
| Interest and fees on loans | |||||||||||||||
| Taxable | $ | 85,994 | $ | 84,418 | $ | 169,105 | $ | 166,158 | |||||||
| Tax exempt | 293 | 291 | 572 | 583 | |||||||||||
| Interest and dividends on securities | |||||||||||||||
| Taxable | 3,764 | 3,457 | 7,605 | 6,846 | |||||||||||
| Tax exempt | 3,883 | 3,917 | 7,790 | 7,827 | |||||||||||
| Other interest income | 1,214 | 2,302 | 2,063 | 3,426 | |||||||||||
| Total interest income | 95,148 | 94,385 | 187,135 | 184,840 | |||||||||||
| | | | | | |||||||||||
| Interest on deposits | 36,379 | 39,111 | 69,810 | 75,569 | |||||||||||
| Interest on short-term borrowings | 468 | 398 | 2,251 | 1,520 | |||||||||||
| Total interest expense | 36,847 | 39,509 | 72,061 | 77,089 | |||||||||||
| | | | | | |||||||||||
| NET INTEREST INCOME | 58,301 | 54,876 | 115,074 | 107,751 | |||||||||||
| | | | | | |||||||||||
| Provision for credit losses | 1,708 | 3,000 | 3,708 | 9,800 | |||||||||||
| | | | | | |||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 56,593 | 51,876 | 111,366 | 97,951 | |||||||||||
| | | | | | |||||||||||
| NONINTEREST INCOME | |||||||||||||||
| Wealth advisory fees | 3,017 | 2,667 | 6,080 | 5,534 | |||||||||||
| Investment brokerage fees | 511 | 550 | 1,035 | 1,002 | |||||||||||
| Service charges on deposit accounts | 2,878 | 2,827 | 5,752 | 5,601 | |||||||||||
| Loan and service fees | 3,060 | 3,006 | 6,267 | 5,890 | |||||||||||
| Merchant and interchange fee income | 836 | 854 | 1,613 | 1,676 | |||||||||||
| Bank owned life insurance income | 1,617 | 1,040 | 2,593 | 1,362 | |||||||||||
| Interest rate swap fee income | 0 | 20 | 701 | 20 | |||||||||||
| Mortgage banking income | 128 | 124 | 209 | 73 | |||||||||||
| Other income | 525 | 398 | 1,255 | 1,256 | |||||||||||
| Total noninterest income | 12,572 | 11,486 | 25,505 | 22,414 | |||||||||||
| | | | | | |||||||||||
| NONINTEREST EXPENSE | |||||||||||||||
| Salaries and employee benefits | 20,494 | 17,096 | 40,789 | 34,998 | |||||||||||
| Net occupancy expense | 1,967 | 1,747 | 4,071 | 3,727 | |||||||||||
| Equipment costs | 1,409 | 1,437 | 2,873 | 2,819 | |||||||||||
| Data processing fees and supplies | 4,374 | 4,152 | 8,633 | 8,417 | |||||||||||
| Corporate and business development | 1,242 | 1,160 | 2,735 | 2,566 | |||||||||||
| FDIC insurance and other regulatory fees | 881 | 839 | 1,754 | 1,639 | |||||||||||
| Professional fees | 1,785 | 1,706 | 3,722 | 4,086 | |||||||||||
| Other expense | 2,305 | 2,295 | 5,031 | 4,943 | |||||||||||
| Total noninterest expense | 34,457 | 30,432 | 69,608 | 63,195 | |||||||||||
| | | | | | |||||||||||
| INCOME BEFORE INCOME TAX EXPENSE | 34,708 | 32,930 | 67,263 | 57,170 | |||||||||||
| Income tax expense | 6,268 | 5,964 | 12,345 | 10,119 | |||||||||||
| NET INCOME | $ | 28,440 | $ | 26,966 | $ | 54,918 | $ | 47,051 | |||||||
| | | | | | |||||||||||
| BASIC WEIGHTED AVERAGE COMMON SHARES | 25,058,539 | 25,707,233 | 25,201,252 | 25,711,004 | |||||||||||
| | | | | | |||||||||||
| BASIC EARNINGS PER COMMON SHARE | $ | 1.14 | $ | 1.05 | $ | 2.18 | $ | 1.83 | |||||||
| | |||||||||||||||
| DILUTED WEIGHTED AVERAGE COMMON SHARES | 25,231,590 | 25,776,205 | 25,361,745 | 25,782,817 | |||||||||||
| | |||||||||||||||
| DILUTED EARNINGS PER COMMON SHARE | $ | 1.13 | $ | 1.04 | $ | 2.17 | $ | 1.82 | |||||||
| LAKELAND FINANCIAL CORPORATION LOAN DETAIL (unaudited, in thousands) | |||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||||||||||||||
| Commercial and industrial loans: | | | | | |||||||||||||||||
| Working capital lines of credit loans | $ | 815,493 | 14.6 | % | $ | 742,655 | 13.6 | % | $ | 717,484 | 13.7 | % | |||||||||
| Non-working capital loans | 828,878 | 14.9 | 836,121 | 15.3 | 776,278 | 14.9 | |||||||||||||||
| Total commercial and industrial loans | 1,644,371 | 29.5 | 1,578,776 | 28.9 | 1,493,762 | 28.6 | |||||||||||||||
| | | | | ||||||||||||||||||
| Commercial real estate and multi-family residential loans: | |||||||||||||||||||||
| Construction and land development loans | 439,987 | 7.9 | 509,143 | 9.3 | 552,998 | 10.6 | |||||||||||||||
| Owner occupied loans | 804,995 | 14.4 | 807,813 | 14.8 | 780,285 | 14.9 | |||||||||||||||
| Nonowner occupied loans | 937,493 | 16.8 | 960,395 | 17.5 | 869,196 | 16.6 | |||||||||||||||
| Multifamily loans | 578,151 | 10.4 | 462,984 | 8.5 | 477,910 | 9.1 | |||||||||||||||
| Total commercial real estate and multi-family residential loans | 2,760,626 | 49.5 | 2,740,335 | 50.1 | 2,680,389 | 51.2 | |||||||||||||||
| | | | | ||||||||||||||||||
| Agri-business and agricultural loans: | |||||||||||||||||||||
| Loans secured by farmland | 180,871 | 3.2 | 177,823 | 3.2 | 150,934 | 2.9 | |||||||||||||||
| Loans for agricultural production | 158,522 | 2.8 | 196,258 | 3.6 | 188,501 | 3.6 | |||||||||||||||
| Total agri-business and agricultural loans | 339,393 | 6.0 | 374,081 | 6.8 | 339,435 | 6.5 | |||||||||||||||
| | | | | ||||||||||||||||||
| Other commercial loans | 121,060 | 2.2 | 95,764 | 1.7 | 95,442 | 1.8 | |||||||||||||||
| Total commercial loans | 4,865,450 | 87.2 | 4,788,956 | 87.5 | 4,609,028 | 88.1 | |||||||||||||||
| | | | | ||||||||||||||||||
| Consumer 1-4 family mortgage loans: | |||||||||||||||||||||
| Closed end first mortgage loans | 302,799 | 5.4 | 292,724 | 5.3 | 273,287 | 5.2 | |||||||||||||||
| Open end and junior lien loans | 283,099 | 5.1 | 263,600 | 4.8 | 226,114 | 4.4 | |||||||||||||||
| Residential construction and land development loans | 12,904 | 0.2 | 14,429 | 0.3 | 16,667 | 0.3 | |||||||||||||||
| Total consumer 1-4 family mortgage loans | 598,802 | 10.7 | 570,753 | 10.4 | 516,068 | 9.9 | |||||||||||||||
| | | | | ||||||||||||||||||
| Other consumer loans | 117,953 | 2.1 | 116,158 | 2.1 | 103,880 | 2.0 | |||||||||||||||
| Total consumer loans | 716,755 | 12.8 | 686,911 | 12.5 | 619,948 | 11.9 | |||||||||||||||
| Subtotal | 5,582,205 | 100.0 | % | 5,475,867 | 100.0 | % | 5,228,976 | 100.0 | % | ||||||||||||
| Less: Allowance for credit losses | (70,598 | ) | | (68,914 | ) | | (66,552 | ) | | ||||||||||||
| Net deferred loan fees | (2,580 | ) | | (2,509 | ) | | (2,149 | ) | | ||||||||||||
| Loans, net | $ | 5,509,027 | $ | 5,404,444 | | $ | 5,160,275 | | |||||||||||||
| LAKELAND FINANCIAL CORPORATION DEPOSITS AND BORROWINGS (unaudited, in thousands) | |||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||||
| Noninterest bearing demand deposits | $ | 1,292,033 | $ | 1,301,547 | $ | 1,261,740 | |||||
| Savings and transaction accounts: | |||||||||||
| Savings deposits | 281,901 | 291,355 | 283,976 | ||||||||
| Interest bearing demand deposits | 3,828,259 | 3,649,409 | 3,841,703 | ||||||||
| Time deposits: | |||||||||||
| Deposits of | 727,412 | 746,168 | 584,165 | ||||||||
| Other time deposits | 199,963 | 201,781 | 205,249 | ||||||||
| Total deposits | $ | 6,329,568 | $ | 6,190,260 | $ | 6,176,833 | |||||
| FHLB advances and other borrowings | 71,200 | 68,200 | 6,200 | ||||||||
| Total funding sources | $ | 6,400,768 | $ | 6,258,460 | $ | 6,183,033 | |||||
| LAKELAND FINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS (UNAUDITED) | |||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2026 | Three Months Ended March 31, 2026 | Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||
| (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) | $ | 5,507,100 | $ | 85,994 | 6.26 | % | $ | 5,417,380 | $ | 83,111 | 6.22 | % | $ | 5,204,006 | $ | 84,418 | 6.51 | % | |||||||||||||||
| Tax exempt (1) | 24,244 | 363 | 6.01 | 23,496 | 346 | 5.98 | 25,640 | 359 | 5.62 | ||||||||||||||||||||||||
| Investments: (1) | |||||||||||||||||||||||||||||||||
| Securities | 1,161,807 | 8,680 | 3.00 | 1,190,278 | 8,786 | 2.99 | 1,125,597 | 8,416 | 3.00 | ||||||||||||||||||||||||
| Short-term investments | 3,567 | 28 | 3.15 | 2,701 | 21 | 3.15 | 2,832 | 28 | 3.97 | ||||||||||||||||||||||||
| Interest bearing deposits | 135,984 | 1,186 | 3.50 | 95,539 | 828 | 3.51 | 212,532 | 2,274 | 4.29 | ||||||||||||||||||||||||
| Total earning assets | $ | 6,832,702 | $ | 96,251 | 5.65 | % | $ | 6,729,394 | $ | 93,092 | 5.61 | % | $ | 6,570,607 | $ | 95,495 | 5.83 | % | |||||||||||||||
| Less: Allowance for credit losses | (69,959 | ) | (68,944 | ) | (93,644 | ) | |||||||||||||||||||||||||||
| Nonearning Assets | |||||||||||||||||||||||||||||||||
| Cash and due from banks | 64,197 | 67,282 | 66,713 | ||||||||||||||||||||||||||||||
| Premises and equipment | 69,499 | 65,997 | 61,280 | ||||||||||||||||||||||||||||||
| Other nonearning assets | 294,224 | 288,484 | 299,725 | ||||||||||||||||||||||||||||||
| Total assets | $ | 7,190,663 | $ | 7,082,213 | $ | 6,904,681 | |||||||||||||||||||||||||||
| Interest Bearing Liabilities | |||||||||||||||||||||||||||||||||
| Savings deposits | $ | 287,520 | $ | 41 | 0.06 | % | $ | 287,643 | $ | 41 | 0.06 | % | $ | 285,944 | $ | 43 | 0.06 | % | |||||||||||||||
| Interest bearing checking accounts | 3,867,392 | 28,184 | 2.92 | 3,686,666 | 26,110 | 2.87 | 3,767,903 | 31,499 | 3.35 | ||||||||||||||||||||||||
| Time deposits: | |||||||||||||||||||||||||||||||||
| In denominations under | 201,696 | 1,576 | 3.13 | 201,974 | 1,548 | 3.11 | 208,770 | 1,745 | 3.35 | ||||||||||||||||||||||||
| In denominations over | 728,345 | 6,578 | 3.62 | 644,717 | 5,732 | 3.61 | 589,829 | 5,824 | 3.96 | ||||||||||||||||||||||||
| Short-term borrowings | 47,286 | 468 | 3.97 | 182,423 | 1,783 | 3.96 | 33,297 | 398 | 4.79 | ||||||||||||||||||||||||
| Long-term borrowings | 1,200 | 0 | 0.00 | 1,200 | 0 | 0.00 | 1,200 | 0 | 0.00 | ||||||||||||||||||||||||
| Total interest bearing liabilities | $ | 5,133,439 | $ | 36,847 | 2.88 | % | $ | 5,004,623 | $ | 35,214 | 2.85 | % | $ | 4,886,943 | $ | 39,509 | 3.24 | % | |||||||||||||||
| Noninterest Bearing Liabilities | |||||||||||||||||||||||||||||||||
| Demand deposits | 1,227,721 | 1,234,539 | 1,244,058 | ||||||||||||||||||||||||||||||
| Other liabilities | 68,970 | 70,105 | 76,704 | ||||||||||||||||||||||||||||||
| Stockholders' Equity | 760,533 | 772,946 | 696,976 | ||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 7,190,663 | $ | 7,082,213 | $ | 6,904,681 | |||||||||||||||||||||||||||
| Interest Margin Recap | |||||||||||||||||||||||||||||||||
| Interest income/average earning assets | 96,251 | 5.65 | % | 93,092 | 5.61 | % | 95,495 | 5.83 | % | ||||||||||||||||||||||||
| Interest expense/average earning assets | 36,847 | 2.16 | 35,214 | 2.12 | 39,509 | 2.41 | |||||||||||||||||||||||||||
| Net interest income and margin | $ | 59,404 | 3.49 | % | $ | 57,878 | 3.49 | % | $ | 55,986 | 3.42 | % | |||||||||||||||||||||
| (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 June 30, 2026, March 31, 2026, and June 30, 2025, 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 | Six Months Ended | ||||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||
| Total Equity | $ | 773,374 | $ | 748,993 | $ | 709,987 | $ | 773,374 | $ | 709,987 | |||||||||
| 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 | 769,571 | 745,190 | 706,184 | 769,571 | 706,184 | ||||||||||||||
| Market Value Adjustment in AOCI | 123,959 | 135,106 | 160,574 | 123,959 | 160,574 | ||||||||||||||
| Adjusted Tangible Common Equity | 893,530 | 880,296 | 866,758 | 893,530 | 866,758 | ||||||||||||||
| Assets | $ | 7,242,959 | $ | 7,083,680 | $ | 6,964,301 | $ | 7,242,959 | $ | 6,964,301 | |||||||||
| 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 | 7,239,156 | 7,079,877 | 6,960,498 | 7,239,156 | 6,960,498 | ||||||||||||||
| Market Value Adjustment in AOCI | 123,959 | 135,106 | 160,574 | 123,959 | 160,574 | ||||||||||||||
| Adjusted Tangible Assets | 7,363,115 | 7,214,983 | 7,121,072 | 7,363,115 | 7,121,072 | ||||||||||||||
| Ending Common Shares Issued | 25,028,859 | 25,098,219 | 25,697,093 | 25,028,859 | 25,697,093 | ||||||||||||||
| Tangible Book Value Per Common Share | $ | 30.75 | $ | 29.69 | $ | 27.48 | $ | 30.75 | $ | 27.48 | |||||||||
| Tangible Common Equity/Tangible Assets | 10.63 | % | 10.53 | % | 10.15 | % | 10.63 | % | 10.15 | % | |||||||||
| Adjusted Tangible Common Equity/Adjusted Tangible Assets | 12.14 | % | 12.20 | % | 12.17 | % | 12.14 | % | 12.17 | % | |||||||||
| Net Interest Income | $ | 58,301 | $ | 56,773 | $ | 54,876 | $ | 115,074 | $ | 107,751 | |||||||||
| Plus: Noninterest Income | 12,572 | 12,933 | 11,486 | 25,505 | 22,414 | ||||||||||||||
| Minus: Noninterest Expense | (34,457 | ) | (35,151 | ) | (30,432 | ) | (69,608 | ) | (63,195 | ) | |||||||||
| Pretax Pre-Provision Earnings | $ | 36,416 | $ | 34,555 | $ | 35,930 | $ | 70,971 | $ | 66,970 | |||||||||
Contact
Lisa M. O’Neill
Executive Vice President and Chief Financial Officer
(574) 267-9125
lisa.oneill@lakecitybank.com
