Lakeland Financial Reports Record Third Quarter Performance with Loan Growth of 8%; Diluted Earnings per Share Increases by 11%

Loan growth and wider net interest margins accompanied higher earnings, while unrealized securities losses increased.

Rhea-AI Summary

Lakeland Financial (LKFN) reported record third-quarter net income of $28.9 million, with diluted earnings per share also reaching a third-quarter record. Net income rose 9% from the third quarter of 2025, while diluted earnings per share increased 11% to $1.14. Revenue grew 6% to $73.0 million. For the first nine months of 2026, net income increased 14% to $83.8 million and diluted earnings per share rose 16% to $3.31.

Quarter-end loans increased 8% year over year to $5.68 billion. Net interest margin widened to 3.58%, from 3.50% a year earlier and 3.49% in the second quarter. Deposits rose 4% year over year but fell 1% sequentially. Unrealized securities losses increased to $213.9 million, while the total capital ratio declined to 15.56%, above the 10.00% well-capitalized threshold. The quarterly dividend increased 4% year over year to $0.52 per share, payable November 5, 2026.

23 points · 0 major

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0 major · 9 points

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Positive

• Moderate pointThird-quarter net income rose 9% year over year to $28.9 million, up $417,000 sequentially.
• Moderate pointThird-quarter diluted earnings per share rose 11% year over year to $1.14, up $0.01 sequentially.
• Moderate pointThird-quarter revenue increased 6% year over year to $73.0 million and 3% sequentially.
• Moderate pointQuarter-end loans grew 8% year over year to $5.68 billion and 2% sequentially.
• Moderate pointThird-quarter net interest income increased 8% year over year to $60.7 million and 4% sequentially.
• Moderate pointNet interest margin reached 3.58%, up 8 basis points year over year and 9 sequentially.
• Moderate pointCore deposits increased 3% year over year to $6.05 billion and less than 1% sequentially.

16 minor points

• Minor pointNine-month net income increased 14% to $83.8 million from the corresponding 2025 period.
• Minor pointNine-month diluted earnings per share increased 16% to $3.31 from the corresponding 2025 period.
• Minor pointNine-month revenue increased 7% to $213.6 million from the corresponding 2025 period.
• Minor pointAverage third-quarter loans increased 7% year over year to $5.59 billion and 1% sequentially.
• Minor pointNine-month net interest income increased 7% to $175.8 million from the corresponding 2025 period.
• Minor pointFunding costs fell to 2.13% in third-quarter 2026 from 2.37% in third-quarter 2025.
• Minor pointReturn on average equity improved to 14.88% from 14.60% in third-quarter 2025.
• Minor pointReturn on average assets improved to 1.59% from 1.53% in third-quarter 2025.
• Minor pointAverage equity increased 7% year over year to $769.1 million in the third quarter.
• Minor pointDiluted weighted average shares declined 583,478, or 2%, year over year through repurchases.
• Minor pointQuarterly dividend increased 4% year over year to $0.52 per share, payable November 5, 2026.
• Minor pointNonperforming loans declined 10% sequentially to $18 million; their loan ratio improved year over year to 0.32%.
• Minor pointCredit-loss provision fell to $1.2 million from $2.0 million a year earlier and $1.7 million sequentially.
• Minor pointAverage third-quarter deposits increased 5% year over year to $6.34 billion and less than 1% sequentially.
• Minor pointAverage noninterest-bearing demand deposits increased 4% year over year to $1.29 billion and 5% sequentially.
• Minor pointIndianapolis deposit initiatives generated $106.1 million in deposits, including $83.2 million new to Lake City Bank.

Negative

• Moderate pointUnrealized securities losses increased to $213.9 million, versus $159.9 million a year earlier and $140.9 million sequentially.
• Minor pointTotal capital ratio declined to 15.56% from 16.21% a year earlier and 15.61% sequentially, remaining above 10.00%.
• Minor pointTangible common equity to tangible assets declined to 10.11%, versus 10.79% a year earlier and 10.63% sequentially.
• Minor pointAdjusted tangible equity ratio was 12.32%, down from 12.57% a year earlier but above 12.14% sequentially.
• Minor pointTotal deposits fell 1% sequentially to $6.29 billion, despite increasing 4% year over year.

4 minor points

• Minor pointCommercial deposits declined 3% year over year to $2.21 billion, despite increasing 5% sequentially.
• Minor pointPublic funds deposits fell 6% sequentially to $2.02 billion, despite increasing 10% year over year.
• Minor pointEarning asset yields fell to 5.71% from 5.87% a year earlier, despite rising from 5.65% sequentially.
• Minor pointThird-quarter net charge-offs, loans written off net of recoveries, totaled $3.0 million.

News Explained

Credit indicators diverged: nonperforming assets declined while net charge-offs and watch-list loans increased.

Lakeland Financial repurchased 41,550 common shares for $2.4 million in the third quarter; those purchases were completed, and its broader program remains authorized through April 30, 2027. The company said diluted weighted-average common shares fell by 583,478, or 2%, as a result of the ongoing repurchase plan; by September 30, 2026, $45.4 million of the $60.0 million authorization had been used and $14.6 million remained.

Credit measures were mixed: net charge-offs were $3.0 million, including a $2.8 million partial charge-off for a collateral shortfall in a nonperforming commercial credit that had been fully reserved in prior quarters; individually analyzed and watch-list loans rose to $202.0 million from $157.2 million a year earlier, while nonperforming assets fell to $18.0 million from $19.1 million.

Key Figures

Net income: $28.9 million Diluted EPS: $1.14 Total revenue: $73.0 million +5 more

Net income

$28.9 million

Q3 2026; up 9% year over year

Diluted EPS

$1.14

Q3 2026; up 11% year over year

Total revenue

$73.0 million

Q3 2026; up 6% year over year

Total loans

$5.68 billion

At September 30, 2026; up 8% year over year

Net interest margin

3.58%

Q3 2026; up 8 basis points year over year

Net charge-offs

$3.0 million

Q3 2026, versus $384,000 in Q3 2025

Individually analyzed and watch list loans

$202.0 million

At September 30, 2026; up 28% year over year

Unrealized losses

$213.9 million

Available-for-sale investment securities at September 30, 2026, versus $159.9 million a year earlier

Historical Context

1 past event · Latest: Jul 27

1 event

1. Jul 27

   2Q26 earnings

   24h Move

   +3.7%

   Q2 record net income of $28.4 million and diluted EPS of $1.13 provide the prior-quarter baseline.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest margin, non-gaap financial measure, available-for-sale investment securities, risk-weighted assets

4 terms

net interest margin financial

"Net interest margin was 3.58% for the third quarter of 2026"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

non-gaap financial measure financial

"which is a non-GAAP financial measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

available-for-sale investment securities financial

"unrealized losses from available-for-sale investment securities"

Investments classified as available-for-sale are stocks, bonds or similar financial assets a company holds but does not plan to trade frequently or keep to maturity; they are kept available to sell when needed. Their changes in market value are recorded separately from regular profit or loss until the assets are actually sold, so they can make a company’s reported net worth swing even though day-to-day earnings are unaffected — important for investors assessing balance-sheet strength and potential future cash flow.

risk-weighted assets financial

"total capital as a percentage of risk-weighted assets"

Risk-weighted assets are a bank’s assets (like loans and investments) adjusted by how risky regulators consider each one, so safer items count less and riskier items count more. Think of it as packing a suitcase where heavy, fragile items take up more “real” space; higher risk-weighted assets mean a bank must hold more capital as a cushion. Investors watch this because it affects a bank’s safety, regulatory limits and ability to lend or return money to shareholders.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WARSAW, Ind., Oct. 26, 2026 (GLOBE NEWSWIRE) -- Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported record third quarter net income of $28.9 million for the three months ended September 30, 2026, which represents an increase of $2.5 million, or 9%, compared to net income of $26.4 million for the three months ended September 30, 2025. Diluted earnings per share of $1.14 for the third quarter of 2026 also represents a record for third quarter performance and increased $0.11, or 11%, compared to $1.03 for the third quarter of 2025. On a linked quarter basis, net income increased $417,000 from $28.4 million. Diluted earnings per share increased $0.01 from $1.13 on a linked quarter basis.

The company further reported record performance year-to-date with net income of $83.8 million for the nine months ended September 30, 2026, versus $73.5 million for the corresponding period of 2025, an increase of $10.3 million, or 14%. Diluted earnings per share increased $0.46, or 16%, to $3.31 for the nine months ended September 30, 2026, versus $2.85 for the corresponding period of 2025.

Total revenue was $73.0 million for the third quarter of 2026 representing an increase of $4.0 million, or 6%, as compared to $69.0 million for the third quarter of 2025. On a linked quarter basis, total revenue increased by $2.1 million, or 3%, from $70.9 million in the second quarter of 2026. Total revenue increased by $14.4 million, or 7%, to $213.6 million for nine months ended September 30, 2026, as compared to $199.2 million for the corresponding period of 2025.

“Strong loan growth and healthy net interest margin expansion were reflected in the quality of our earnings performance in the quarter,” commented David M. Findlay, Chairman and CEO. “Clearly, the resulting record net income reflects the efforts of the entire Lake City Bank team as we continue to grow our market share in every market we serve.”

Quarterly Financial Performance

Third Quarter 2026 versus Third Quarter 2025 highlights:

• Loans increased by $431.4 million, or 8%, from $5.25 billion to $5.68 billion
• Average loans increased by $381.9 million, or 7%, to $5.59 billion
• Net interest income improved by $4.6 million, or 8%, from $56.1 million to $60.7 million
• Net interest margin improved 8 basis points to 3.58% from 3.50%
• Total revenue grew by 6% from $69.0 million to $73.0 million
• Core deposits expanded by $204.3 million, or 3%, to $6.05 billion
• Return on average equity improved to 14.88%, compared to 14.60%
• Average equity improved by $51.7 million, or 7%, from $717.4 million to $769.1 million
• Return on average assets improved to 1.59%, compared to 1.53%
• Nonperforming loans to total loans improved to 0.32%, from 0.36%
• Diluted weighted average common shares outstanding declined by 583,478, or 2%, as a result of the company’s ongoing share repurchase plan
  
  

Third Quarter 2026 versus Second Quarter 2026 highlights:

• Net interest margin improved 9 basis points to 3.58% from 3.49%
• Loans grew by $100.4 million, or 2%, from $5.58 billion to $5.68 billion
• Net interest income increased $2.4 million, or 4%, from $58.3 million to $60.7 million
• Average loans increased by $56.4 million, or 1%, to $5.59 billion
• Core deposits expanded by $22.5 million, or less than 1%, to $6.05 billion
• Total revenue grew by 3% from $70.9 million to $73.0 million
• Nonperforming loans declined by $2.0 million, or 10%, from $20 million to $18 million
  
  

Net Interest Margin

Net interest margin was 3.58% for the third quarter of 2026, representing an 8 basis point increase from 3.50% for the third quarter of 2025. Net interest margin was favorably impacted by a reduction in deposit pricing that outpaced the decline in earning asset yields. The company's funding costs fell by 24 basis points from 2.37% for the third quarter of 2025 to 2.13% for the third quarter of 2026. Offsetting the decrease in funding costs was a decrease to earning asset yields of 16 basis points from 5.87% for the third quarter of 2025 to 5.71% for the third quarter of 2026.

Net interest margin increased 9 basis points to 3.58% for the third quarter of 2026, as compared to 3.49% for the linked second quarter of 2026. Average earning asset yields increased by 6 basis points from 5.65% to 5.71% on a linked quarter basis and interest expense as a percentage of average earning assets decreased 3 basis points from 2.16% to 2.13%. The second quarter cost of funds were elevated by inflows of seasonal public funds deposits into higher priced deposit products.

Net interest income was $60.7 million for the third quarter of 2026, representing an increase of $4.6 million, or 8%, as compared to $56.1 million for the third quarter of 2025. On a linked quarter basis, net interest income increased by $2.4 million, or 4%, from $58.3 million. Net interest income increased by $12.0 million, or 7%, from $163.8 million for the nine months ended September 30, 2025, to $175.8 million for the nine months ended September 30, 2026.

“We’re particularly proud of the net interest margin expansion on a year-over-year basis as well as on a quarter-linked basis. This significant improvement reflects the positive impact of healthy loan growth combined with deposit pricing strategies to positively impact our net interest margin,” stated Lisa M. O’Neill, Executive Vice President and Chief Financial Officer.

Capital Strength

The company’s total capital as a percentage of risk-weighted assets was 15.56% at September 30, 2026, compared to 16.21% at September 30, 2025, and 15.61% at June 30, 2026. These capital levels significantly exceeded the 10.00% regulatory threshold required to be characterized as "well capitalized" and reflect the company's robust capital base.

The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, was 10.11% at September 30, 2026, compared to 10.79% at September 30, 2025, and 10.63% at June 30, 2026. The decline in the tangible common equity to tangible assets ratio was primarily driven by an increase in unrealized losses from available-for-sale investment securities, resulting from the rapid 85 basis point rise in the 10-year Treasury yield during the third quarter. As a result, unrealized losses on available-for-sale investment securities increased to $213.9 million at September 30, 2026, up from $159.9 million at September 30, 2025, and $140.9 million at June 30, 2026. Excluding the impact of accumulated other comprehensive income (loss) on tangible common equity and tangible assets, the company’s ratio of adjusted tangible common equity to adjusted tangible assets, a non-GAAP financial measure, was 12.32% at September 30, 2026, compared to 12.57% at September 30, 2025, and 12.14% at June 30, 2026.

The company continued to repurchase shares during the third quarter, with 41,550 shares of its common stock repurchased at a weighted average price per share of $58.45 with an aggregate purchase price of $2.4 million. The current program authorizes the company to repurchase up to $60.0 million in aggregate purchase price of the company's common stock through April 30, 2027, or 8.2% of current equity. The company has repurchased a total of 787,166 shares under the current program from April 1, 2025 through September 30, 2026 at an aggregate purchase price of $45.4 million and weighted average purchase price per share of $57.62, with remaining authorization of $14.6 million at quarter end.

As announced on October 13, 2026, the board of directors approved a cash dividend for the third quarter of $0.52 per share, payable on November 5, 2026, to shareholders of record as of October 25, 2026. The third quarter dividend per share represents a 4% increase from the $0.50 dividend per share paid for the third quarter of 2025. The dividend payout ratio improved to 47.1% for the nine months ended September 30, 2026 compared to 52.6% for the similar period in 2025.

Kristin L. Pruitt, President, noted, “We are pleased to continue to opportunistically leverage our share repurchase program to demonstrate our confidence in the quality of our performance and the long-term strength of our model, as well as our earnings potential. Our capital position remains robust, enabling us to grow the balance sheet while also returning excess capital to shareholders through a meaningful dividend as well as the common share repurchases.” 

Loan Portfolio

Average total loans of $5.59 billion in the third quarter of 2026 increased $381.9 million, or 7%, from $5.21 billion for the third quarter of 2025, and increased $56.4 million, or 1%, from $5.53 billion for the second quarter of 2026.

Total loans, net of deferred loan fees, increased by $431.4 million, or 8%, from $5.25 billion as of September 30, 2025, to $5.68 billion as of September 30, 2026. The growth in loans was driven by increases across all primary commercial and consumer segments of the portfolio, with increases to the commercial and industrial loans of $187.4 million, or 12%, commercial real estate and multi-family residential loans of $117.6 million, or 4%, consumer 1-4 family mortgage loans of $83.2 million, or 16%, other commercial loans of $28.8 million, or 31%, agri-business and agricultural loans of $8.2 million, or 2%, and other consumer loans of $6.7 million, or 6%.

On a linked quarter basis, total loans increased by $100.4 million, or 2%, from $5.58 billion at June 30, 2026. The linked quarter increase was driven by growth in both the commercial and consumer segments of the portfolio, with increases to the commercial and industrial loan portfolio of $61.1 million, or 4%, consumer 1-4 family mortgage loans of $18.0 million, or 3%, commercial real estate and multi-family residential loans of $12.2 million, or less than 1%, and agri-business and agricultural loans of $8.8 million, or 3%.

Commercial loan originations for the third quarter were approximately $525.0 million and were offset by approximately $443.0 million in loan pay downs. Commercial and industrial line of credit usage was 42% as of September 30, 2026, compared to 40% at September 30, 2025, and 43% at June 30, 2026. Total commercial and industrial lines of credit availability grew by $104.0 million, or 5%, as compared to the prior year, and line usage increased by $88.0 million, or 10%, over that period. On a linked quarter basis, total commercial and industrial lines of credit availability declined by $2.0 million, and line usage declined by $16.0 million, or 2%.

“The strength of loan growth during 2026 has been highlighted by double digit growth in commercial and industrial loans. This encouraging trend is further supported by commercial loan originations outpacing loan paydowns for the fourth quarter in a row,” stated Findlay. “We continue to make progress on our organic loan growth plans with high single digit loan growth on a year-over-year and quarter-linked bases. We are optimistic that our continued emphasis on client prospecting and joint calling is beginning to yield positive results. We continue to add to our commercial and retail lending teams throughout the Lake City Bank footprint.”

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 96% of total deposits at September 30, 2026.

(in thousands)	September 30, 2026							June 30, 2026							September 30, 2025
Retail	$	1,817,961			28.9	%		$	1,769,029			28.0	%		$	1,724,983			28.6	%
Commercial		2,210,358			35.1				2,113,784			33.4				2,288,701			38.0
Public funds		2,024,628			32.2				2,147,600			33.9				1,834,987			30.5
Core deposits		6,052,947			96.2				6,030,413			95.3				5,848,671			97.1
Brokered deposits		241,849			3.8				299,155			4.7				175,647			2.9
Total	$	6,294,796			100.0	%		$	6,329,568			100.0	%		$	6,024,318			100.0	%

Total deposits increased $270.5 million, or 4%, from $6.02 billion as of September 30, 2025, to $6.29 billion as of September 30, 2026. The increase in total deposits was driven by an increase in core deposits, which increased by $204.3 million, or 3%. Public funds deposits grew annually by $189.6 million, or 10%, to $2.02 billion and retail deposits expanded by $93.0 million, or 5%, to $1.82 billion. Conversely, commercial deposits contracted by $78.3 million, or 3%, to $2.21 billion. Brokered deposits increased by $66.2 million, or 38%, but remain at a low level, representing 4% of total deposits at September 30, 2026.

On a linked quarter basis, total deposits decreased $34.8 million, or 1%, from $6.33 billion at June 30, 2026, to $6.29 billion at September 30, 2026. Core deposits increased by $22.5 million, or less than 1%, while brokered deposits decreased by $57.3 million, or 19%. The linked quarter growth in core deposits was driven by an increase in commercial deposits of $96.6 million, or 5%, and an increase in retail deposits of $48.9 million, or 3%. This growth was offset by a seasonal reduction in public funds of $123.0 million, or 6%.

Average total deposits were $6.34 billion for the third quarter of 2026, an increase of $308.5 million, or 5%, from $6.03 billion for the third quarter of 2025. Average interest-bearing deposits drove the increase in average total deposits and increased by $259.3 million, or 5%. Contributing to the overall growth of interest-bearing deposits was an increase in total average time deposits of $174.4 million, or 23%, and an increase in average interest-bearing checking accounts of $88.6 million, or 2%. Additionally, average noninterest-bearing demand deposits increased by $49.3 million, or 4%, to $1.29 billion.

On a linked quarter basis, average total deposits increased by $25.4 million, or less than 1%, from $6.31 billion for the second quarter of 2026 to $6.34 billion for the third quarter of 2026. Driving the increase was an increase in noninterest bearing demand deposits of $65.9 million, or 5%, and an increase in average time deposits of $13.3 million, or 1%. Offsetting these increases were reductions in interest bearing checking accounts, which declined by $47.1 million, or 1%, and average savings accounts, which declined by $6.7 million, or 2%.

Checking account growth as of September 30, 2026, compared to September 30, 2025, includes growth of $261.3 million, or 15%, in aggregate public fund checking account balances and growth of $43.5 million, or 5%, in aggregate retail checking account balances. Offsetting these increases was a decline of $128.2 million, or 6%, in aggregate commercial checking account balances. The number of accounts expanded for all three segments, with growth of 2% for commercial accounts, 1% for public funds accounts and 1% for retail accounts.

“Core deposits remain stable at 96% of total deposits,” added O’Neill. “During the quarter we deployed deposit growth strategies in Indianapolis that yielded $106.1 million in deposits, of which $83.2 million was new money to Lake City Bank. This strategy contributed to the quarter linked growth in commercial and retail deposits and provides our revenue producing teams with new opportunities to continue to grow deposit and loan relationships.”

Asset Quality

The company recorded a provision for credit losses of $1.2 million in the third quarter of 2026, compared to $2.0 million in the third quarter of 2025 and $1.7 million for the linked second quarter of 2026.

The allowance for credit loss reserve to total loans was 1.21% at September 30, 2026, down from 1.30% at September 30, 2025, and 1.27% at June 30, 2026. The company recorded net charge offs of $3.0 million in the third quarter of 2026, compared to net charge offs of $384,000 in the third quarter of 2025 and $24,000 during the linked second quarter of 2026. Net charge offs during the third quarter of 2026 were driven by a partial charge off of $2.8 million to address a shortfall in collateral related to the ongoing workout of a nonperforming commercial credit, which was fully reserved for in prior quarters. Annualized net charge offs to average loans were 0.21% for the third quarter of 2026, compared to 0.03% for the third quarter of 2025 and 0.00% for the linked second quarter of 2026.

Nonperforming assets decreased by $1.1 million, or 6%, to $18.0 million as of September 30, 2026, versus $19.1 million as of September 30, 2025. On a linked quarter basis, nonperforming assets decreased by $2.0 million, or 10%, primarily driven by the aforementioned $2.8 million partial charge off. The ratio of nonperforming assets to total assets at September 30, 2026, decreased to 0.25%, down from 0.28% at September 30, 2025 and June 30, 2026.

Total individually analyzed and watch list loans increased by $44.7 million, or 28%, to $202.0 million as of September 30, 2026, versus $157.2 million as of September 30, 2025. On a linked quarter basis, total individually analyzed and watch list loans increased by $4.0 million, or 2%, from $198.0 million at June 30, 2026. The increase in individually analyzed and watch list loans during the linked quarter was driven primarily by credit downgrades to the watch list of approximately $15.6 million and offset by payoffs and upgrades of approximately $9.4 million and the $2.8 million partial charge off. Watch list loans as a percentage of total loans were 3.56% at September 30, 2026, a 56 basis point increase compared to 3.00% at September 30, 2025, and a 1 basis point increase from 3.55% at June 30, 2026.

Findlay stated, “The Indiana economy is resilient, diverse and expanding. Our borrowers continue to navigate through the challenges created by rising oil prices and tariff policy uncertainty. We are pleased that our asset quality trends continue to be stable with historically-low troubled loan totals, and we remain optimistic about the manufacturing outlook in our state.”

Investment Portfolio Overview

Total investment securities were $1.09 billion at September 30, 2026, reflecting a decrease of $74.3 million, or 6%, as compared to $1.16 billion at September 30, 2025. Investment securities represented 15% of total assets as of September 30, 2026, down from 17% at September 30, 2025 and 16% at June 30, 2026. The company anticipates receiving principal and interest cash flows of approximately $24.1 million during the remainder of 2026 from the investment securities portfolio and plans to use that liquidity to fund loan growth as well as reinvestments to the investment securities portfolio. Tax equivalent adjusted effective duration for the investment portfolio contracted to 5.6 years at September 30, 2026, compared to 5.8 years at September 30, 2025, and 5.8 years at June 30, 2026.

Noninterest Income

The company’s noninterest income decreased $680,000, or 5%, to $12.3 million for the third quarter of 2026, compared to $13.0 million for the third quarter of 2025. Wealth advisory fees increased $298,000, or 10%, driven by continued growth in customers and assets under management. Mortgage banking income increased $94,000 from increased pipeline volume. Service charges on deposit accounts increased by $84,000, or 3%. Equity market declines negatively impacted the performance of the bank's variable owned life insurance policies, which declined by $476,000 during the third quarter of 2026 as compared to the prior quarter. Loan and service fees decreased $384,000, or 11%, from reduced commercial loan fees. Other income decreased by $320,000, or 43%, from a reduction in limited partnership investment income.

Noninterest income for the third quarter of 2026 decreased by $298,000, or 2%, on a linked quarter basis from $12.6 million during the second quarter of 2026. Increases to fee-based revenue streams benefitted noninterest income, including wealth advisory fees, which increased $136,000, or 5%, service charges on deposit accounts, which increased $127,000, or 4%, merchant and interchange fee income, which increased $40,000, or 5%, and investment brokerage fees, which increased $24,000, or 5%. Offsetting these positive contributions to noninterest income were decreases to bank owned life insurance income of $464,000, or 29%, other income of $96,000, or 18%, and mortgage banking income of $40,000, or 31%. The decrease in bank owned life insurance income was driven by variable bank owned life insurance market performance. Reduced limited partnership income primarily drove the decrease in other income, and reduced pipeline volume contributed to the decrease in mortgage banking income.

Noninterest income increased by $2.4 million, or 7%, to $37.8 million for the nine months ended September 30, 2026, compared to $35.4 million for the prior year period. Increases in fee-based revenue streams contributed to the increase to noninterest income, with wealth advisory fees improving by $844,000, or 10%, and service charges on deposit accounts improving by $235,000, or 3%. Conversely, merchant and interchange fee income declined $79,000, or 3%. Bank owned life insurance income improved by $817,000, or 28%, from improved market performance from variable bank owned life insurance policies and incremental income from general account policies purchased in 2025. Interest rate swap fee income improved by $681,000 and mortgage banking income improved $230,000, or 343%, from increased volume.

“Our fee-based generating lines of business are contributing to revenue growth with high single digit year-over-year growth in noninterest income,” added Findlay. “We are seeing our investments in these business lines positively impact revenue outcomes. In particular, our Wealth Advisory fees grew by 10% on a year-to-date basis compared to the same period in 2025.”

Noninterest Expense

Noninterest expense increased $1.2 million, or 3%, to $36.1 million for the third quarter of 2026, compared to $35.0 million during the third quarter of 2025. Salaries and employee benefits expense increased by $368,000, or 2%, primarily as a result of increased salaries and wages and benefits expense, and was offset by reduced performance-based incentive compensation accruals. Full-time equivalent staff increased by 31 persons at September 30, 2026 compared to the same period in the prior year, or 5%. The growth in staff reflects the organic growth plans with an increase of 18 revenue generating personnel and 13 support staff over the past year. Professional fees increased $397,000, or 23%, from increased technology implementation fees and other professional expenses. Net occupancy expense increased $276,000, or 15%, from the company's continued expansion and reinvestment into its physical branch and operational infrastructure, including the Innovation and Technology Center at the company's downtown Warsaw campus. Data processing fees and supplies increased $234,000, or 6%, from continued investment in customer-facing and operational technology solutions, including artificial intelligence capabilities. Offsetting these increases was a decrease in other expense of $175,000, or 6%. The reduction in other expense was driven by reduced office supplies and telecommunications expenses.

On a linked quarter basis, noninterest expense increased by $1.7 million, or 5%, from $34.5 million during the second quarter of 2026. Other expense increased $436,000, or 19%, primarily from semi-annual board of directors share grants that occurred in the third quarter. Corporate and business development expense increased by $388,000, or 31%, from increased advertising, client entertainment and business development expenses. Professional fees increased $338,000, or 19%, from increased technology implementation fees and other professional fees. Salaries and employee benefits expense increased $288,000, or 1%, primarily from increased health insurance expense. Net occupancy expense increased by $186,000, or 9%. 

Noninterest expense increased by $7.6 million, or 8%, for the nine months ended September 30, 2026, to $105.7 million compared to $98.2 million for the comparable period of 2025. Salaries and employee benefits expense increased $6.2 million, or 11%, primarily due to increased salaries and wages of $2.9 million, performance-based incentive compensation accruals of $1.6 million, health insurance expense of $1.3 million, and variable deferred compensation expense of $370,000. Net occupancy expense increased $620,000, or 11%, from investing in our retail branch and operational infrastructure. Data processing fees and supplies expense increased $450,000, or 4%, from continued investment in customer-facing and operational technology solutions. Corporate and business development expense increased $236,000, or 6%, from increased advertising and corporate development expenses. FDIC insurance and other regulatory fees increased $147,000, or 6%, from increased FDIC insurance premium accruals due to balance sheet growth.

The company’s efficiency ratio was 49.5% for the third quarter of 2026, compared to 50.7% for the third quarter of 2025 and 48.6% for the linked second quarter of 2026. The company's efficiency ratio was 49.5% for the nine months ended September 30, 2026, compared to 49.3% for the comparable period in 2025.

“During 2026, we have made significant investments in people, brick and mortar and technology,” Findlay stated. “Our staffing focus has been on the addition of revenue producing team members, primarily in commercial banking.  In addition, we continue to invest in our footprint expansion in all Lake City Bank markets. We currently have three branches under development in the Indianapolis and Fort Wayne markets, and we opened the company’s Innovation and Technology Center in our Warsaw headquarters. Innovation that focuses on artificial intelligence capabilities is also a priority as we prepare for the rollout of our innovative, new customer relationship management program that will enhance relationship development and expansion, client communication, and allow for future revenue growth.”

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 $7.2 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 55 branch offices and a robust digital banking platform. Lake City Bank's community banking model prioritizes building in-market long-term customer relationships while delivering technology-forward solutions for retail and commercial clients.

This document contains, and future oral and written statements of the company and its management may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, 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; changes in borrowers’ credit risks and payment behaviors; and developments in technology, 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 THIRD QUARTER 2026 FINANCIAL HIGHLIGHTS
	Three Months Ended												Nine Months Ended
(unaudited – dollars in thousands, except per share data)	September 30,				June 30,				September 30,				September 30,				September 30,
END OF PERIOD BALANCES	2026				2026				2025				2026				2025
Assets	$	7,207,927			$	7,242,959			$	6,895,028			$	7,207,927			$	6,895,028
Investments		1,090,447				1,169,188				1,164,737				1,090,447				1,164,737
Loans		5,680,004				5,579,625				5,248,619				5,680,004				5,248,619
Allowance for Credit Losses		68,830				70,598				68,168				68,830				68,168
Deposits		6,294,796				6,329,568				6,024,318				6,294,796				6,024,318
Brokered Deposits		241,849				299,155				175,647				241,849				175,647
Core Deposits (1)		6,052,947				6,030,413				5,848,671				6,052,947				5,848,671
Total Equity		732,094				773,374				747,503				732,094				747,503
Goodwill Net of Deferred Tax Assets		3,803				3,803				3,803				3,803				3,803
Tangible Common Equity (2)		728,291				769,571				743,700				728,291				743,700
Adjusted Tangible Common Equity (2)		909,564				893,530				883,865				909,564				883,865
AVERAGE BALANCES
Total Assets	$	7,196,421			$	7,190,663			$	6,850,671			$	7,156,850			$	6,839,762
Earning Assets		6,837,770				6,832,702				6,492,640				6,800,353				6,498,243
Investments		1,151,647				1,161,807				1,127,094				1,167,769				1,129,664
Loans		5,587,744				5,531,344				5,205,833				5,520,526				5,207,205
Total Deposits		6,338,090				6,312,674				6,029,557				6,236,470				6,000,829
Interest Bearing Deposits		5,044,449				5,084,953				4,785,176				4,984,286				4,751,953
Interest Bearing Liabilities		5,062,655				5,133,439				4,818,115				5,067,118				4,807,547
Total Equity		769,133				760,533				717,428				767,524				703,564
INCOME STATEMENT DATA
Net Interest Income	$	60,721			$	58,301			$	56,073			$	175,795			$	163,824
Net Interest Income-Fully Tax Equivalent		61,836				59,404				57,180				179,118				167,150
Provision for Credit Losses		1,200				1,708				2,000				4,908				11,800
Noninterest Income		12,274				12,572				12,954				37,779				35,368
Noninterest Expense		36,121				34,457				34,965				105,729				98,160
Net Income		28,857				28,440				26,404				83,775				73,455
Pretax Pre-Provision Earnings (2)		36,874				36,416				34,062				107,845				101,032
PER SHARE DATA
Basic Net Income Per Common Share	$	1.15			$	1.14			$	1.03			$	3.33			$	2.86
Diluted Net Income Per Common Share		1.14				1.13				1.03				3.31				2.85
Cash Dividends Declared Per Common Share		0.52				0.52				0.50				1.56				1.50
Dividend Payout		45.61	%			46.02	%			48.54	%			47.13	%			52.63	%
Book Value Per Common Share (equity per share issued)	$	29.29			$	30.90			$	29.08			$	29.29			$	29.08
Tangible Book Value Per Common Share (2)		29.14				30.75				28.93				29.14				28.93
Market Value – High	$	64.55			$	63.03			$	69.40			$	64.55			$	71.77
Market Value – Low		57.40				56.56				59.08				54.36				50.00
Basic Weighted Average Common Shares Outstanding		25,027,394				25,058,539				25,703,699				25,142,662				25,708,543
	Three Months Ended												Nine Months Ended
(unaudited – dollars in thousands, except per share data)	September 30,				June 30,				September 30,				September 30,				September 30,
PER SHARE DATA (continued)	2026				2026				2025				2026				2025
Diluted Weighted Average Common Shares Outstanding		25,237,882				25,231,590				25,821,360				25,320,493				25,804,322
KEY RATIOS
Return on Average Assets		1.59	%			1.59	%			1.53	%			1.57	%			1.44	%
Return on Average Total Equity		14.88				15.00				14.60				14.59				13.96
Average Equity to Average Assets		10.69				10.58				10.47				10.72				10.29
Net Interest Margin		3.58				3.49				3.50				3.52				3.44
Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income)		49.48				48.62				50.65				49.50				49.28
Loans to Deposits		90.23				88.15				87.12				90.23				87.12
Investment Securities to Total Assets		15.13				16.14				16.89				15.13				16.89
Tier 1 Leverage (3)		12.36				12.17				12.56				12.36				12.56
Tier 1 Risk-Based Capital (3)		14.46				14.47				15.05				14.46				15.05
Common Equity Tier 1 (CET1) (3)		14.46				14.47				15.05				14.46				15.05
Total Capital (3)		15.56				15.61				16.21				15.56				16.21
Tangible Capital (2)		10.11				10.63				10.79				10.11				10.79
Adjusted Tangible Capital (2)		12.32				12.14				12.57				12.32				12.57
ASSET QUALITY
Loans Past Due 30 - 89 Days	$	2,148			$	3,026			$	984			$	2,148			$	984
Loans Past Due 90 Days or More		6				6				7				6				7
Nonaccrual Loans		17,927				19,946				18,701				17,927				18,701
Nonperforming Loans		17,933				19,952				18,708				17,933				18,708
Other Real Estate Owned		0				0				284				0				284
Other Nonperforming Assets		24				48				82				24				82
Total Nonperforming Assets		17,957				20,000				19,074				17,957				19,074
Individually Analyzed Loans		65,869				66,945				39,497				65,869				39,497
Non-Individually Analyzed Watch List Loans		136,099				131,070				117,746				136,099				117,746
Total Individually Analyzed and Watch List Loans		201,968				198,015				157,243				201,968				157,243
Gross Charge Offs		3,101				431				573				5,728				30,193
Recoveries		133				407				189				655				601
Net Charge Offs		2,968				24				384				5,073				29,592
Net Charge Offs to Average Loans		0.21	%			0.00	%			0.03	%			0.12	%			0.76	%
Credit Loss Reserve to Loans		1.21				1.27				1.30				1.21				1.30
Credit Loss Reserve to Nonperforming Loans		383.81				353.84				364.38				383.81				364.38
Nonperforming Loans to Loans		0.32				0.36				0.36				0.32				0.36
Nonperforming Assets to Assets		0.25				0.28				0.28				0.25				0.28
Total Individually Analyzed and Watch List Loans to Total Loans		3.56				3.55				3.00				3.56				3.00
OTHER DATA
Full Time Equivalent Employees		697				695				666				697				666
Offices		55				55				55				55				55

(1) Core deposits equals deposits less brokered deposits.

(2) Non-GAAP financial measure - see "Reconciliation of Non-GAAP Financial Measures".

(3) Capital ratios for September 30, 2026 are preliminary until the FR Y-9C is filed.

CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share data)
​	September 30, 2026				December 31, 2025
​	(unaudited)				​
ASSETS
Cash and due from banks	$	53,830			$	57,139
Short-term investments		61,938				84,179
Total cash and cash equivalents		115,768				141,318
​
Securities available-for-sale, at fair value		956,013				1,052,062
Securities held-to-maturity, at amortized cost (fair value of $103,352 and $117,510, respectively)		134,434				133,208
Real estate mortgage loans held-for-sale		2,268				2,707
Loans, net of allowance for credit losses of $68,830 and $68,995		5,611,174				5,306,354
Land, premises and equipment, net		72,390				65,542
Bank owned life insurance		133,549				129,978
Federal Reserve and Federal Home Loan Bank stock		21,420				21,420
Accrued interest receivable		30,253				28,997
Goodwill		4,970				4,970
Other assets		125,688				103,466
Total assets	$	7,207,927			$	6,990,022
​
​
LIABILITIES
Noninterest bearing deposits	$	1,316,701			$	1,221,327
Interest bearing deposits		4,978,095				4,752,023
Total deposits		6,294,796				5,973,350
​
Borrowings - Federal Home Loan Bank advances:
Short-term advance		100,000				170,000
Long-term advance		1,300				1,200
Other borrowings		0				13,000
Total borrowings		101,300				184,200
​
Accrued interest payable		9,701				8,868
Other liabilities		70,036				61,112
Total liabilities		6,475,833				6,227,530
​
STOCKHOLDERS’ EQUITY
Common stock: 90,000,000 shares authorized, no par value
26,070,726 shares issued and 24,819,965 outstanding as of September 30, 2026
26,023,644 shares issued and 25,219,634 outstanding as of December 31, 2025		142,939				136,965
Retained earnings		832,843				788,345
Accumulated other comprehensive income (loss)		(181,766	)			(127,137	)
Treasury stock at cost (1,250,761 shares as of September 30, 2026, 804,010 shares as of December 31, 2025)		(62,011	)			(35,770	)
Total stockholders’ equity		732,005				762,403
Noncontrolling interest		89				89
Total equity		732,094				762,492
Total liabilities and equity	$	7,207,927			$	6,990,022

CONSOLIDATED STATEMENTS OF INCOME (unaudited - in thousands, except share and per share data)
​	Three Months Ended September 30,								Nine Months Ended September 30,
​	2026				2025				2026				2025
NET INTEREST INCOME
Interest and fees on loans
Taxable	$	88,383			$	85,490			$	257,488			$	251,648
Tax exempt		347				287				919				870
Interest and dividends on securities
Taxable		3,889				3,489				11,494				10,335
Tax exempt		3,876				3,915				11,666				11,742
Other interest income		859				1,706				2,922				5,132
Total interest income		97,354				94,887				284,489				279,727
​	​				​				​				​
Interest on deposits		36,467				38,446				106,277				114,015
Interest on short-term borrowings		166				368				2,417				1,888
Total interest expense		36,633				38,814				108,694				115,903
​	​				​				​				​
NET INTEREST INCOME		60,721				56,073				175,795				163,824
​	​				​				​				​
Provision for credit losses		1,200				2,000				4,908				11,800
​	​				​				​				​
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		59,521				54,073				170,887				152,024
​	​				​				​				​
NONINTEREST INCOME
Wealth advisory fees		3,153				2,855				9,233				8,389
Investment brokerage fees		535				557				1,570				1,559
Service charges on deposit accounts		3,005				2,921				8,757				8,522
Loan and service fees		3,035				3,419				9,302				9,309
Merchant and interchange fee income		876				892				2,489				2,568
Bank owned life insurance income		1,153				1,567				3,746				2,929
Interest rate swap fee income		0				0				701				20
Mortgage banking income (loss)		88				(6	)			297				67
Other income		429				749				1,684				2,005
Total noninterest income		12,274				12,954				37,779				35,368
​	​				​				​				​
NONINTEREST EXPENSE
Salaries and employee benefits		20,782				20,414				61,571				55,412
Net occupancy expense		2,153				1,877				6,224				5,604
Equipment costs		1,432				1,475				4,305				4,294
Data processing fees and supplies		4,350				4,116				12,983				12,533
Corporate and business development		1,630				1,563				4,365				4,129
FDIC insurance and other regulatory fees		910				878				2,664				2,517
Professional fees		2,123				1,726				5,845				5,812
Other expense		2,741				2,916				7,772				7,859
Total noninterest expense		36,121				34,965				105,729				98,160
​	​				​				​				​
INCOME BEFORE INCOME TAX EXPENSE		35,674				32,062				102,937				89,232
Income tax expense		6,817				5,658				19,162				15,777
NET INCOME	$	28,857			$	26,404			$	83,775			$	73,455
​	​				​				​				​
BASIC WEIGHTED AVERAGE COMMON SHARES		25,027,394				25,703,699				25,142,662				25,708,543
​	​				​				​				​
BASIC EARNINGS PER COMMON SHARE	$	1.15			$	1.03			$	3.33			$	2.86
​
DILUTED WEIGHTED AVERAGE COMMON SHARES		25,237,882				25,821,360				25,320,493				25,804,322
​
DILUTED EARNINGS PER COMMON SHARE	$	1.14			$	1.03			$	3.31			$	2.85

LAKELAND FINANCIAL CORPORATION LOAN DETAIL (unaudited, in thousands)
		September 30, 2026							June 30, 2026							September 30, 2025
Commercial and industrial loans:		​				​										​				​
Working capital lines of credit loans		$	812,472			14.3	%		$	815,493			14.6	%		$	709,645			13.5	%
Non-working capital loans			892,989			15.7				828,878			14.9				808,371			15.4
Total commercial and industrial loans			1,705,461			30.0				1,644,371			29.5				1,518,016			28.9
​		​							​							​
Commercial real estate and multi-family residential loans:
Construction and land development loans			409,682			7.2				439,987			7.9				574,896			10.9
Owner occupied loans			772,098			13.6				804,995			14.4				804,253			15.3
Nonowner occupied loans			992,570			17.5				937,493			16.8				863,085			16.5
Multifamily loans			598,456			10.5				578,151			10.4				413,016			7.9
Total commercial real estate and multi-family residential loans			2,772,806			48.8				2,760,626			49.5				2,655,250			50.6
​		​							​							​
Agri-business and agricultural loans:
Loans secured by farmland			189,685			3.3				180,871			3.2				153,904			2.9
Loans for agricultural production			158,501			2.8				158,522			2.8				186,068			3.6
Total agri-business and agricultural loans			348,186			6.1				339,393			6.0				339,972			6.5
​		​							​							​
Other commercial loans			120,661			2.1				121,060			2.2				91,833			1.7
Total commercial loans			4,947,114			87.0				4,865,450			87.2				4,605,071			87.7
​		​							​							​
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans			308,959			5.5				302,799			5.4				273,580			5.2
Open end and junior lien loans			296,641			5.2				283,099			5.1				241,256			4.6
Residential construction and land development loans			11,166			0.2				12,904			0.2				18,706			0.4
Total consumer 1-4 family mortgage loans			616,766			10.9				598,802			10.7				533,542			10.2
​		​							​							​
Other consumer loans			119,172			2.1				117,953			2.1				112,430			2.1
Total consumer loans			735,938			13.0				716,755			12.8				645,972			12.3
Subtotal			5,683,052			100.0	%			5,582,205			100.0	%			5,251,043			100.0	%
Less: Allowance for credit losses			(68,830	)		​				(70,598	)		​				(68,168	)		​
Net deferred loan fees			(3,048	)		​				(2,580	)		​				(2,424	)		​
Loans, net		$	5,611,174						$	5,509,027			​			$	5,180,451			​

LAKELAND FINANCIAL CORPORATION DEPOSITS AND BORROWINGS (unaudited, in thousands)
	September 30, 2026				June 30, 2026				September 30, 2025
Noninterest bearing demand deposits	$	1,316,701			$	1,292,033			$	1,268,241
Savings and transaction accounts:
Savings deposits		279,489				281,901				281,291
Interest bearing demand deposits		3,751,171				3,828,259				3,689,037
Time deposits:
Deposits of $100,000 or more		749,478				727,412				580,499
Other time deposits		197,957				199,963				205,250
Total deposits	$	6,294,796			$	6,329,568			$	6,024,318
FHLB advances and other borrowings		101,300				71,200				56,200
Total funding sources	$	6,396,096			$	6,400,768			$	6,080,518

LAKELAND FINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS (UNAUDITED)
		Three Months Ended September 30, 2026										Three Months Ended June 30, 2026										Three Months Ended September 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)		$	5,560,289			$	88,383		6.31	%		$	5,507,100			$	85,994		6.26	%		$	5,180,847			$	85,490		6.55	%
Tax exempt (1)			27,455				431		6.23				24,244				363		6.01				24,986				354		5.62
Investments: (1)
Securities			1,151,647				8,796		3.03				1,161,807				8,680		3.00				1,127,094				8,444		2.97
Short-term investments			3,414				27		3.14				3,567				28		3.15				2,795				27		3.83
Interest bearing deposits			94,965				832		3.48				135,984				1,186		3.50				156,918				1,679		4.25
Total earning assets		$	6,837,770			$	98,469		5.71	%		$	6,832,702			$	96,251		5.65	%		$	6,492,640			$	95,994		5.87	%
Less:  Allowance for credit losses			(70,473	)									(69,959	)									(67,115	)
Nonearning Assets
Cash and due from banks			59,654										64,197										62,671
Premises and equipment			72,013										69,499										64,391
Other nonearning assets			297,457										294,224										298,084
Total assets		$	7,196,421									$	7,190,663									$	6,850,671
Interest Bearing Liabilities
Savings deposits		$	280,866			$	39		0.06	%		$	287,520			$	41		0.06	%		$	284,553			$	41		0.06	%
Interest bearing checking accounts			3,820,281				28,076		2.92				3,867,392				28,184		2.92				3,731,706				31,382		3.34
Time deposits:
In denominations under $100,000			199,739				1,555		3.09				201,696				1,576		3.13				204,997				1,678		3.25
In denominations over $100,000			743,563				6,797		3.63				728,345				6,578		3.62				563,920				5,345		3.76
Short-term borrowings			16,957				166		3.88				47,286				468		3.97				31,739				368		4.60
Long-term borrowings			1,249				0		0.00				1,200				0		0.00				1,200				0		0.00
Total interest bearing liabilities		$	5,062,655			$	36,633		2.87	%		$	5,133,439			$	36,847		2.88	%		$	4,818,115			$	38,814		3.20	%
Noninterest Bearing Liabilities
Demand deposits			1,293,641										1,227,721										1,244,381
Other liabilities			70,992										68,970										70,747
Stockholders' Equity			769,133										760,533										717,428
Total liabilities and stockholders' equity		$	7,196,421									$	7,190,663									$	6,850,671
Interest Margin Recap
Interest income/average earning assets							98,469		5.71	%							96,251		5.65	%							95,994		5.87	%
Interest expense/average earning assets							36,633		2.13								36,847		2.16								38,814		2.37
Net interest income and margin						$	61,836		3.58	%						$	59,404		3.49	%						$	57,180		3.50	%

(1)		Tax exempt income was converted to a fully taxable equivalent basis at a 21 percent tax rate. The tax equivalent rate for tax exempt loans and tax-exempt securities acquired after January 1, 1983, included the Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA") adjustment applicable to nondeductible interest expenses. Taxable equivalent basis adjustments were $1.12 million, $1.10 million, and $1.11 million in the three-month periods ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively.
(2)		Loan fees, which are immaterial in relation to total taxable loan interest income for the three-month periods ended September 30, 2026, June 30, 2026, and September 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												Nine Months Ended
	September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Total Equity	$	732,094			$	773,374			$	747,503			$	732,094			$	747,503
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		728,291				769,571				743,700				728,291				743,700
Market Value Adjustment in AOCI		181,273				123,959				140,165				181,273				140,165
Adjusted Tangible Common Equity		909,564				893,530				883,865				909,564				883,865
Assets	$	7,207,927			$	7,242,959			$	6,895,028			$	7,207,927			$	6,895,028
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		7,204,124				7,239,156				6,891,225				7,204,124				6,891,225
Market Value Adjustment in AOCI		181,273				123,959				140,165				181,273				140,165
Adjusted Tangible Assets		7,385,397				7,363,115				7,031,390				7,385,397				7,031,390
Ending Common Shares Issued		24,994,459				25,028,859				25,704,243				24,994,459				25,704,243
Tangible Book Value Per Common Share	$	29.14			$	30.75			$	28.93			$	29.14			$	28.93
Tangible Common Equity/Tangible Assets		10.11	%			10.63	%			10.79	%			10.11	%			10.79	%
Adjusted Tangible Common Equity/Adjusted Tangible Assets		12.32	%			12.14	%			12.57	%			12.32	%			12.57	%
Net Interest Income	$	60,721			$	58,301			$	56,073			$	175,795			$	163,824
Plus:  Noninterest Income		12,274				12,572				12,954				37,779				35,368
Minus:  Noninterest Expense		(36,121	)			(34,457	)			(34,965	)			(105,729	)			(98,160	)
Pretax Pre-Provision Earnings	$	36,874			$	36,416			$	34,062			$	107,845			$	101,032

Contact
Lisa M. O’Neill
Executive Vice President and Chief Financial Officer
(574) 267-9125
lisa.oneill@lakecitybank.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Lakeland Financial's third-quarter 2026 earnings?

Lakeland Financial earned $28.9 million, or $1.14 per diluted share, in the third quarter of 2026. Net income increased 9% and diluted earnings per share increased 11% from the third quarter of 2025. Both were records for third-quarter performance.

How much did Lakeland Financial's loans and net interest margin grow in third-quarter 2026?

Quarter-end loans increased 8% year over year to $5.68 billion, while net interest margin reached 3.58%. Loans rose 2% from June 30, 2026. The margin increased from 3.50% in third-quarter 2025 and 3.49% in second-quarter 2026.

How much share repurchase authorization did Lakeland Financial have remaining at September 30, 2026?

Lakeland Financial had $14.6 million of repurchase authorization remaining at quarter-end. The program authorizes purchases of up to $60.0 million through April 30, 2027. From April 1, 2025 through September 30, 2026, the company repurchased 787,166 shares for $45.4 million at a weighted average price of $57.62.

What drove Lakeland Financial's third-quarter 2026 loan growth?

Loan growth extended across all primary commercial and consumer portfolio segments, with commercial and industrial loans increasing $187.4 million, or 12%, year over year. Commercial loan originations during the quarter were approximately $525.0 million, offset by approximately $443.0 million in loan paydowns.