Lakeland Financial (LKFN) lifts profit, margin and loans in early 2026
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Lakeland Financial Corporation released a first quarter 2026 investor presentation highlighting strong capital, solid profitability and balanced growth at Lake City Bank. Tangible common equity to tangible assets was 10.53%, with adjusted tangible common equity to adjusted tangible assets of 12.20%, and the total risk-based capital ratio was 15.58%, well above well-capitalized thresholds.
Year-to-date 2026 net income increased 32% to $26,478,000, and diluted EPS rose 33% versus the prior year period. Net interest income grew 7% year over year, with the fully tax-equivalent net interest margin improving to 3.49% and expanding 9 basis points over first quarter 2025. Average loans grew 5% year over year to about $5.44 billion, while average deposits rose 3% to about $6.06 billion, keeping funding predominantly core.
Asset quality remained strong, with nonperforming loans and watchlist levels near historic lows and the allowance for credit losses at 1.28% of total loans excluding PPP as of early 2026. The company reported a year-to-date 2026 return on average assets of 1.52%, return on average equity of 13.89%, and return on average tangible common equity of 13.96%. The quarterly dividend continued to grow, with the dividend per share up 4% year over year, reflecting confidence in earnings and capital strength.
Positive
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Negative
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Insights
Lakeland Financial shows strong Q1 2026 profitability, capital and core-funded growth.
Lakeland Financial is emphasizing a high-capital, organically grown franchise. Tangible common equity to tangible assets of 10.53% and a total risk-based capital ratio of 15.58% provide a sizeable buffer while the loan book, at about $5.5B, remains diversified and largely commercial.
Earnings trends are favorable: year-to-date 2026 net income rose 32% to $26.5M, EPS increased 33%, and pretax pre-provision earnings were up 11%. The net interest margin expanded to 3.49%, helped by deposit costs declining as rates eased, while loans and deposits grew 5% and 3% respectively versus the prior year period.
Credit quality and liquidity help underpin the story. The allowance for credit losses is 1.28% of loans excluding PPP, nonperforming metrics are near historic lows, and available liquidity totals about $3.3B. Future company disclosures will clarify how sustained loan growth, deposit mix shifts and rate changes affect margins and returns across subsequent quarters.
8-K Event Classification
2 items: 7.01, 9.01
2 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
TCE / Tangible Assets: 10.53%
Adj. TCE / Adj. Tangible Assets: 12.20%
YTD 2026 Net Income: $26,478,000
+5 more
8 metrics
TCE / Tangible Assets
10.53%
Key capital ratio as of March 31, 2026
Adj. TCE / Adj. Tangible Assets
12.20%
Adjusted capital ratio excluding certain securities impacts, March 31, 2026
YTD 2026 Net Income
$26,478,000
Year-to-date 2026, up 32% from $20,085,000
Net Interest Margin
3.49%
Fully tax-equivalent NIM in Q1 2026; up 9 bps vs Q1 2025
Average Loans
$5,440,876,000
Average loans YTD 2026; 5% year-over-year increase
Average Deposits
$6,055,539,000
Average deposits YTD 2026; 3% year-over-year increase
Allowance for Credit Losses Ratio
1.28%
Allowance for credit losses to total loans excluding PPP, YTD 2026
Dividend Per Share
$2.00
2025 full-year dividend; 4% year-over-year increase cited into 2026
Key Terms
Tangible Common Equity, Net interest margin, Pretax Pre-Provision Earnings, Allowance for Credit Losses, +2 more
6 terms
Tangible Common Equity financial
"Tangible Common Equity 92.7% Allowance for Credit Losses 7.3%"
Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.
Net interest margin financial
"Net Interest Margin by Quarter NIM Expansion of 9 Basis Points"
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.
Pretax Pre-Provision Earnings financial
"Pretax Pre-Provision Earnings Pretax Pre-Provision Earnings Improves by 11% in 2026"
Pretax pre-provision earnings is a bank’s core operating profit measured before income taxes and before the amount set aside to cover expected loan losses. It shows how much money the business generates from normal activities, like lending and fees, without the one-time or cyclical effects of credit reserves and taxes. Investors use it like a clean reading of a company’s engine—helpful for judging underlying performance and how much cushion exists to absorb future loan losses.
Allowance for Credit Losses financial
"Allowance for Credit Losses is Stable"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
Efficiency Ratio financial
"Efficiency Ratio Efficiency Ratio is Stable"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
Current Expected Credit Loss (“CECL”) Standard regulatory
"Note: Current Expected Credit Loss (“CECL”) Standard adopted effective 1/1/21"
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
| FORM | ||||||||
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 27, 2026
(Exact name of Registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| , | |||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (s230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (s240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 7.01. Regulation FD Disclosure
The executive officers of Lakeland Financial Corporation intend to use the material filed herewith, in whole or in part, in one or more meetings with investors and analysts. A copy of the investor presentation is attached hereto as Exhibit 99.1.
Lakeland Financial Corporation does not intend for this Item 7.01 or Exhibit 99.1 to be treated as “filed” for purposes of the Securities Exchange Act of 1934, as amended, or incorporated into its filings under the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits
The following exhibit shall not be deemed as "filed" for purposes of the Securities Exchange Act of 1934, as amended.
(d) Exhibits
99.1 2026 1Q Investor Presentation
104 Cover Page Interactive Data File (embedded with the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LAKELAND FINANCIAL CORPORATION
Dated: April 27, 2026 | By: | /s/ Lisa M. O’Neill | ||||||
| Lisa M. O’Neill | ||||||||
| Executive Vice President | ||||||||
| and Chief Financial Officer | ||||||||
Lakeland Financial Corporation A Proven History of Shareholder Value Creation And Commitment to Our Communities 1st Quarter 2026 LKFN L I S T E D
2 David M. Findlay Chairman & Chief Executive Officer david.findlay@lakecitybank.com (574) 267-9197 Kristin L. Pruitt President kristin.pruitt@lakecitybank.com (574) 371-9220 Lisa M. O’Neill Executive Vice President & Chief Financial Officer lisa.oneill@lakecitybank.com (574) 267-9125
3 Forward-Looking Information This presentation contains, and future oral and written statements of the company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “continue,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. The company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain and, accordingly, the reader is cautioned not to place undue reliance on any forward-looking statements made by the company. Additionally, all statements in this presentation, including forward-looking statements, speak only as of the date they are made, and the company undertakes no obligation to update any statement in light of new information or future events. Numerous factors could cause the company’s actual results to differ from those reflected in forward-looking statements, including the effects of economic, business and market conditions and changes, particularly in our Indiana market area, including prevailing interest rates and the rate of inflation; governmental trade, monetary and fiscal policies; the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities; and changes in borrowers’ credit risks and payment behaviors, as well as those identified in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
4 Long Term Success for Shareholders LTM ROE >13% Source: S&P Capital IQ Pro. Financial data is as of December 31, 2025. (1) Includes banks and thrifts traded on the NYSE, NYSEAM or NASDAQ as of 4/7/26; excludes merger targets. (2) Defined as having positive net income before extraordinary items and preferred dividends for each of the last 10 years (calendar years ended December 31, 2016 through December 31, 2025). Net income before extraordinary items is defined by S&P Capital IQ Pro as GAAP net income, after taxes, minority interest, and other after tax items, but before any extraordinary items. Excludes any revaluation of net deferred tax assets due to tax reform per S&P Capital IQ Pro. (3) Defined as having compounded annual growth in tangible book value per share from 12/31/05 through 12/31/25 greater than 8%. 20-Year TBVPS CAGR >8%(3) Profitable for the Last 10 Years(2) Exchange Traded Depositories with Assets Between $1B and $10B(1) 3 Institutions 16 Institutions 139 Institutions 180 Institutions (including LKFN) LTM ROE >14%
Tangible Common Equity 92.7% Allowance for Credit Losses 7.3% $3 5. 07 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 20 19 20 21 20 23 20 25 Tangible Book Value(1) Per Share 5 Strong Capital Structure Key Ratios and Per Share Data as of March 31, 2026 TCE/Tangible Assets 10.53% Adj. TCE/Adj. Tangible Assets 12.20% Total Risk-Based 15.58% Leverage 12.20% Book Value $29.84 Tangible Book Value $29.69 Adj. Tangible Book Value $35.07 Note: Tangible Common Equity to Tangible Assets and Tangible Book Value per Common Share are Non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” in the First Quarter 2026 Earnings Press Release and Form 8-K. (1)compounded annual growth rate computed from 1991-2025 for tangible book value *TBV adjusted to exclude the market value impact of AFS investment securities for TCE and Tangible Assets from 2021 to 2026 *
6 Lake City Bank Today • An entrepreneurial 153-year-old de novo bank • A long-term and consistent organic growth story • Headquartered in Warsaw, Indiana • 55 branch offices - $7.1 billion banking assets • $3.7 billion in Wealth Advisory assets • A forward-thinking technology adopter • Focused on execution – “blocking and tackling” • A demonstrated history of identifying growth opportunities • Located in a pro-business state with economic expansion occurring statewide
7 34 Years of Organic Growth A History of Balance Sheet and Income Statement Expansion $2 ,7 07 $1 03 ,3 61 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 20 19 20 21 20 23 20 25 Net Income (000’s) Compound Annual Growth 1991 – 2025 • Loans = 10% • Deposits = 10% • Net Income = 11% • Earnings Per Share = 11%
8 Established Market Presence Organic Growth Potential in Mature and Expanding Markets
9 Projected Population Growth Reflects Strength of Economy • 67% of Lake City Bank counties are growth and high growth counties • 40% of Lake City Bank counties are high growth counties • Indiana is poised to experience continued economic strength and vitality
10 Indiana Is Poised For Continued Economic Growth • Indiana #1 manufacturing state in the country(1) • In 2026, Herb Simon, the owner of the Pacers Sports & Entertainment, broke ground on a mixed-use development downtown featuring the first Ritz-Carlton in Indianapolis and a 4,000 person capacity live music venue operated by Live Nation for the entertainment district in the area surrounding the Gainbridge Fieldhouse(2) • In 2025, Eli Lilly broke ground on a $13 billion investment in Indiana’s LEAP Research and Innovation District in Boone County where Lake City Bank will open an office in 2026; In March 2026, Eli Lilly signed a LOI with the Indiana Office of Energy Development to focus on nuclear technologies in IN(3) • Indiana has emerged as a Midwestern data-center hub driven by AI compute demand, favorable land and energy economics and aggressive state-local incentives. Amazon operates a data center in St. Joseph County, Google is developing sites in Allen and La Porte IN counties, META has announced plans in Boone County and Microsoft has announced plans in La Porte. (4) • Bezos funded Slate Auto announced in 2025 it will build its low cost, direct to consumer electric vehicle in Warsaw, Indiana, Lake City Bank’s hometown and employ 2,000 workers.(5) (1) https://www.statsamerica.org/sip/rank_list.aspx?rank_label=gsp2_b&item_in=12&ct=S18 (2) https://newsroom.livenation.com/news/partners-formally-break-ground-on-mixed-use-development-downtown-featuring-ritz- carlton-indianapolis-and-new-live-nation-venue/ (3) https://www.ans.org/news/article-7947/eli-lilly-signs-loi-with-indiana-on-nuclear-power-projects/ (4) https://cleanview.co/public/data-centers/indiana (5) https://rvbusiness.com/indiana-ev-truck-startup-slate-promises-deliveries-in-26/
11 Strong Regional and Statewide Economy Indiana Unemployment Rate is Lower than the National Average 8. 8% 6. 5% 5. 2% 4. 6% 3. 8% 3. 3% 3. 7% 3. 0% 11 .3 % 4. 5% 2. 4% 3. 3% 4. 2% 4. 2% 3. 1% 9. 0% 6. 9% 5. 6% 5. 1% 4. 3% 3. 8% 4. 1% 3. 4% 11 .9 % 4. 7% 3. 4% 3. 8% 4. 2% 4. 5% 3. 3% 8. 1% 7. 0% 5. 8% 5. 2% 4. 9% 4. 4% 4. 1% 3. 8% 13 .0 % 6. 6% 4. 1% 3. 9% 4. 5% 4. 5% 4. 7% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2013 Feb 2014 Feb 2015 Feb 2016 Feb 2017 Feb 2018 Feb 2019 Feb 2020 Feb 2020 May 2021 Feb 2022 Feb 2023 Feb 2024 Feb 2025 Feb 2026 Jan Consolidated LCB Footprint Indiana United States U ne m pl oy m en t Source: United States Bureau of Labor Statistics. Lake City Bank footprint is defined as Kosciusko, Marshall, Fulton, Pulaski, Noble, Whitley, St. Joseph, Elkhart, LaGrange, Allen, DeKalb, Huntington, Marion, Hamilton and Johnson Counties in Indiana
12 Fortress Balance Sheet LKFN Above Peer Long-Term Profitability has Contributed to a Strong Capital Foundation 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 18.0% Q4'10 Q4'11 Q4'12 Q4'13 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 Q4'24 Q4'25 Risk-Based Capital Ratio Proxy Peer Average RBC Q4’25 14.9% Well Capitalized Threshold 10.0% for Consolidated Risk-Based Capital Source: S&P Capital IQ Pro. Financial data
13 Net Interest Margin by Quarter NIM Expansion of 9 Basis Points Over the First Quarter 2025 3.16% 3.25% 3.40% 3.42% 3.50% 3.48% 3.49% 3.00% 3.50% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 LKFN Quarterly NIM
14 Net Interest Margin Deposit Costs Coming Down Rapidly • Quarterly net interest margin expanded by 9 basis points in 2026 compared to 2025 • Cumulative Loan Beta 33% for recent easing cycle • Cumulative Deposit Beta 47% for recent easing cycle • Deposit repricing in current easing cycle continues to be a heightened focus • Average noninterest bearing deposits to total average deposits were 20% in the 1Q26 from 21% in the 4Q25
15 Interest Rate Sensitivity Deposits Have Repriced Quicker Than Loans During Current Easing Cycle Fixed Rate $1,537,732 32% Prime $1,088,940 23% SOFR $1,521,368 32% FHLB/Other $640,916 13% Commercial Loans $4.8 billion as of March 31, 2026 (000’s) • 88% of loan portfolio consists of commercial loans and 68% of commercial loans are tied to variable interest rates • Approximately $774.6 million of fixed rate commercial loans are estimated to reprice in the next twelve months • Fixed rate loans have shorter, average original terms of approximately 5 years • Public Funds contribute to deposit repricing, $1.7 billion are tied to the Effective Federal Funds Rate • Cost of Funds peaked in 2Q24 at 2.90% compared to 2.12% in 1Q26
16 Projected Impact of Rising/Falling Rates Historically Asset Sensitive Balance Sheet Maintains Neutral Shift Graph presents 12 month projected net interest income simulation results as of March 31, 2026 using parallel shocks -4.18% -2.31% -0.81% -0.26% -0.06% 0.14% 0.26% 0.46% 0.72% 0.95% -5.00% -3.00% -1.00% 1.00% Dn 300 Dn 200 Dn 100 Dn 50 Dn 25 Up 25 Up 50 Up 100 Up 200 Up 300
17 Diversified Deposit Base Deposit Franchise Consists of Broad-based, Tenured and Deep Relationships • Deposit composition is stable and commercial deposits account for 35% of total deposits • Since 2019 the number of checking accounts have grown by: Commercial +24%, Retail +13% and Public Funds +35% • 98% of deposit accounts are less than $250,000 at March 31, 2026
18 Deposit Mix Reflects Strength of Franchise Core Deposit Growth Consistently Funds Loan Growth Total Retail $1,800,420 29% Total Public Fund $1,877,855 30% Total Commercial $2,136,404 35% Brokered Deposits $375,581 6% March 31, 2026 Total Deposits - $6.2 billion DDA $1.3 billion DDA % of Total Deposits – 21% (000’s)
19 Checking Accounting Trends by Deposit Sector Number of Commercial Accounts Grow by 24% since December 2019 $1 ,1 05 ,2 67 $2 ,1 05 ,4 11 $2 ,1 29 ,9 52 $2 ,0 27 ,1 96 $1 ,9 63 ,9 62 $6 58 ,4 51 $9 37 ,4 58 $9 71 ,8 52 $9 75 ,1 56 $9 80 ,8 28 $8 34 ,9 53 $1 ,3 09 ,9 65 $1 ,6 20 ,4 60 $1 ,8 77 ,0 32 $1 ,7 96 ,0 67 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Dec 2019 Dec 2023 Dec 2024 Dec 2025 Mar 2026 Commercial Retail Public Funds Ch ec ki ng A cc ou nt B al an ce s Checking Account Average Balances by Deposit Type (000) Commercial Retail Public Funds 3/31/26 $123 $15 $6,507 12/31/25 $127 $15 $6,952 12/31/24 $136 $16 $6,209 12/31/23 $137 $15 $5,369 12/31/22 $132 $18 $6,615 12/31/19 $86 $12 $4,073 Number of Checking Accounts by Deposit Type Commercial Retail Public Funds 3/31/26 16,026 63,508 276 12/31/25 15,968 63,397 270 12/31/24 15,663 62,626 261 12/31/23 15,402 61,725 244 12/31/22 14,824 60,528 209 12/31/19 12,921 56,177 205 Pre- Pandemic (000) Note: Checking account balances include demand deposits and interest-bearing checking products including money market accounts but exclude goal accounts
20 Shareholder Value Strategy 1. Commercial Banking Focus 2. High Quality Team Members 3. Proven Organic Growth Experience 4. Focus on Core Deposit Funding 5. Commitment to Technology
21 Commercial Banking Focus Experienced Relationship Driven Team • 51 credit “smart” commercial bankers • Average 23 years in banking & 13 years at Lake City Bank • We live where we lend • Face to face calling matters and is a team effort • Deep organizational structure provides credit and administrative support • We cross sell aggressively by leveraging technology • Capital capacity supports organic loan growth
22 Credit Process Commercial Banking Focus • Our credit discipline has never changed • We have a centralized committee structure • We are in-market lender to in-market clients • Character matters – we lend to people first • We focus on management/cash flow • Structure is important and is disciplined • CRE portfolio is focused on owner occupied, in-market multifamily, and strong credit tenant transact projects
23 Lake City Bank Culture High Quality Team Members • Our culture is our greatest asset and we will preserve it • Lake City University drives our culture • Every employee attends on average, 20 hours of in person training annually • Our community involvement is real and critical to our strategy • Inclusion initiatives continue and create a culture of belonging • Our culture has not been diluted by acquisition
24 Mature1 Market Deposit Performance Organic Growth 2015 – 2025 $2,821 $2,689 $1,324 $494 $457 $428 $287 $283 $201 -$1,186-$1,500 -$1,000 -$500 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Lake City Bank 1st Source JPM Chase Fifth Third Star Farm ers State First M erchants PN C O ld N ational Flagstar(2) Lake City Bank has grown deposits by 103% over the last ten-year period. 1Mature Markets include 12 Northern Indiana counties and exclude 3 Central Indiana counties 2Flagstar acquired Wells Fargo branches in 2018 Totals adjusted to include branches subsequently acquired by surviving banks. Source: FDIC 6/30/25 Statistics
25 Commitment to Technology Innovation and Competitive Technology is a Focus • Progressive AI strategy underway with a focus on revenue enhancement and expense management opportunities • Fintech partnerships play a significant role in our technology stack and enable delivery of innovative solutions to our customers • Investments in Lake City Bank Digital, a Q2 product implemented in 2021 with ongoing user and security functionality added since initial adoption • Technology partnership with FIS is strong – User Planning Council and Strategic Planning Advisory Council • Retail and Commercial platforms ensure competitive positioning • Branch design and functionality is ever evolving based on client transactions, relationship activity and geographic expansion plans
26 Channel Utilization Today versus Pre-Pandemic Mobile Adoption Outpacing All Other Delivery Channels Channel Type Total Transactions 2019(1) % of Total Total Transactions 2026(1) % of Total Period Change Branch Transactions 2,279,975 18% 2,016,628 13% (12)% ATM/ITM 944,785 7% 701,085 5% (26)% Online Logins 5,058,317 40% 4,119,002 26% (19)% Mobile Logins(2) 4,199,910 33% 8,697,796 55% 107% Telephone Banking 265,475 2% 178,964 1% (33)% Total 12,748,462 100% 15,713,475 100% 23% (1) Measurement period includes twelve months of data ending December 31, 2019, and March 31, 2026 (2) Includes mobile phone, Apple watch and iPad app use
27 Customer Composition and Digital Adoption Digital Adoption Across All Generations Is Strong and Increasing Customer Composition and Digital Adoption Over Three Years Generation(1) Customer Breakdown 3/31/26 3/31/25 3/31/24 Gen Alpha (2010 - Current) 4% 7% 3% 1% Gen Z (1996 - 2009) 16% 74% 71% 67% Millennial (1977 - 1995) 27% 61% 60% 60% Gen X (1965 - 1976) 19% 53% 52% 51% Baby Boomer (1946 - 1964) 28% 46% 45% 45% Mature (1945 or before) 6% 32% 32% 31% Digital Adoption 53% 52% 50% (1) Gen Alpha was added in January 2024
Financial Performance
29 Income Performance Metrics LKFN Performance Exceeds National Peers and Contributes to Strong Capital Levels 1.56% 1.62% 1.45% 1.40% 1.50% 1.52% 14.19% 17.40% 15.93% 14.12% 14.40% 13.89% 14.27% 17.52% 16.03% 14.20% 14.47% 13.96% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 0.70% 1.20% 1.70% 2.20% 2.70% 2021 2022 2023 2024 2025 YTD 2026 Return on Average Assets Return on Average Equity Return on Average Tangible Common Equity RO AA RO AE a nd R O AT E 1Source KBW Price Performance Review December 31, 2025 ROAE and ROATE LTM Peer Average Data1 National Indiana ROAE 10.3% 11.6% ROATE 11.4% 13.1% ROAA LTM Peer Average Data1 National Indiana ROAA 1.07% 1.17%
30 Net Income and EPS Net Income Improves by 32% in First Quarter of 2026 $95,733 $103,817 $93,767 $93,478 $103,361 $20,085 $26,478 $3.74 $4.04 $3.65 $3.63 $4.01 $0.78 $1.04 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2021 2022 2023 2024 2025 YTD 2025 YTD 2026 Net Income Diluted EPS N et In co m e EP S 2026 Net Income YOY 32% 2026 Diluted EPS YOY 33%Compound annual growth rate “CAGR” is based on the most recent 5-year calculation
31 Pretax Pre-Provision Earnings Pretax Pre-Provision Earnings Improves by 11% in 2026 $118,521 $134,539 $116,183 $128,439 $137,383 $31,040 $34,5551.93% 2.09% 1.80% 1.93% 2.00% 1.86% 1.98% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 2021 2022 2023 2024 2025 YTD 2025 YTD 2026 Pretax Pre-Provision Earnings Pretax Pre-Provision Earnings/Average Assets Pr et ax P re -P ro vi sio n Ea rn in gs Pr et ax P re -P ro vi sio n Ea rn in gs /A ve ra ge A ss et s Note: Pretax Pre-Provision Earnings is a Non-GAAP financial measure. See “Reconciliation of Non- GAAP Financial Measures” in the First Quarter 2026 Earnings Press Release and Form 8-K. 2026 Pretax Pre-Provision Earnings YOY Increase 11%Compound annual growth rate “CAGR” is based on the most recent 5-year calculation
32 Average Loans Average YTD Loan Growth of $255 million or 5% Compared to Prior Year 83% 77% 86% 86% 86% 90% 50% 60% 70% 80% 90% 100% 110% 120% $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2021 (1) 2022 (1) 2023 2024 2025 YTD 2026 Retail Commercial Average Loans to Average Deposits Lo an s Lo an s t o De po sit R at io (1) Includes $238 million in Average PPP loans in 2021 and $8 million in 2022 2026 YOY Increase 5% $4,421,094 $4,427,166 $4,813,678 $5,039,406 Compound annual growth rate “CAGR” is based on the most recent 5-year calculation $5,223,458 $5,440,876
$1 ,4 10 $1 ,4 94 $1 ,5 53 $1 ,6 90 $1 ,7 46 $1 ,8 05 $1 ,8 24 $1 ,9 66 $1 ,8 85 $1 ,8 88 $1 ,8 07 $1 ,8 68 $1 ,8 37 $1 ,8 93 $1 ,9 03 $1 ,8 66 $1 ,9 59 $1 ,9 93 $2 ,0 16 $2 ,1 23 $2 ,1 39 $2 ,1 90 $2 ,2 06 $2 ,2 43 $2 ,3 21 $2 ,3 53 $2 ,3 98 $2 ,5 17 $2 ,6 96 $2 ,7 96 $2 ,8 17 $2 ,8 80 $2 ,9 18 $2 ,8 48 $2 ,7 05 $2 ,7 15 $2 ,6 82 $2 ,5 73 $2 ,5 57 $2 ,6 26 $2 ,6 65 $2 ,5 78 $3 ,6 00 $3 ,7 00 $3 ,7 95 $4 ,0 11 $4 ,0 98 $4 ,2 03 $4 ,3 42 $4 ,6 62 $4 ,6 81 $4 ,7 05 $4 ,6 87 $4 ,7 86 $4 ,6 85 $4 ,5 98 $4 ,6 18 $4 ,5 48 $4 ,5 32 $4 ,5 50 $4 ,6 42 $4 ,7 89 $4 ,7 18 39% 40% 41% 42% 43% 43% 42% 42% 40% 40% 39% 39% 39% 41% 41% 41% 43% 44% 43% 44% 45% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 25% 30% 35% 40% 45% 50% 55% 60% 65% Outstanding Available % Line Usage 33 Line of Credit Utilization Line Utilization Rises in First Quarter 2026 Includes commercial revolving lines of credit for C&I, CRE and Agriculture, letters of credit and home equity lines of credit
$8 12 $7 89 $8 45 $6 64 $6 99 $7 20 $7 07 $7 61 $7 92 $8 11 $8 66 $8 63 $8 43 $7 99 $7 70 $7 63 $7 25 $7 60 $8 18 $8 48 $7 96 $7 27 $8 06 $8 45 $8 61 $8 54 $9 00 $8 15 $8 77 $8 68 $1 ,1 16 $1 ,1 03 $1 ,0 54 $1 ,1 12 $1 ,0 83 $1 ,0 49 $1 ,0 90 $1 ,0 76 $1 ,0 52 $1 ,1 37 $1 ,2 11 $1 ,2 40 $1 ,2 70 $1 ,3 28 $1 ,3 60 $1 ,3 36 $1 ,2 85 $1 ,3 20 $1 ,3 27 $1 ,2 42 $1 ,2 52 $1 ,2 85 $1 ,3 20 $1 ,2 98 $1 ,6 27 $1 ,6 66 $1 ,7 13 $1 ,7 80 $1 ,8 02 $1 ,7 74 $1 ,8 19 $1 ,8 44 $1 ,8 41 $1 ,9 01 $1 ,9 42 $1 ,9 15 $1 ,9 80 $2 ,0 10 $2 ,0 10 $2 ,0 33 $2 ,0 53 $2 ,1 20 $2 ,1 54 $2 ,1 33 $2 ,1 16 $2 ,0 54 $2 ,0 48 $2 ,0 97 $2 ,1 46 $2 ,1 74 $2 ,1 98 50% 47% 49% 37% 39% 41% 39% 41% 43%43% 45%45% 43% 40% 38%38% 35%36% 38% 40% 38% 35% 39%40%40%39% 41% $0 $500 $1,000 $1,500 $2,000 $2,500 25% 35% 45% 55% 65% 75% De c- 18 De c- 19 M ar -2 0 Ju n- 20 Se p- 20 De c- 20 M ar -2 1 Ju n- 21 Se p- 21 De c- 21 M ar -2 2 Ju n- 22 Se p- 22 De c- 22 M ar -2 3 Ju n- 23 Se p- 23 De c- 23 M ar -2 4 Ju n- 24 Se p- 24 De c- 24 M ar -2 5 Ju n- 25 Se p- 25 De c- 25 M ar -2 6 Outstanding Available % Line Usage Commercial & Industrial Line of Credit Utilization PPP Round 2 PPP Round 1 34 C&I Line Utilization Rises in First Quarter 2026 Includes C&I revolving lines of credit
35 Loan Portfolio Breakdown C&I Drives Lending Business Commercial & Industrial $1,578,776 29% Commercial RE - Owner Occupied $807,813 15% Commercial RE - Nonowner Occupied $960,395 18% Commercial RE - Multifamily $462,984 8% Commercial RE - Construction $509,143 9% Agri-business - Agriculture $374,081 7% Other Commercial $95,764 2% Residential Mortgage $292,724 5% Home Equity $263,600 5% Installment - Other Consumer $130,587 2% $5.5 billion as of March 31, 2026 (000’s) Note: Loan breakdown is presented by Federal Reserve Bank (“FRB”) Collateral Code as reported on the call report.
Multifamily Housing $759,860 14% Agriculture $444,102 8% Industrial CRE $218,063 4% RV & Marine Industry $243,413 4% Hotels $161,103 3% Automobile Dealers $135,865 2% Commercial Office Real Estate $103,551 2% Restaurants $99,894 2% Self-Storage $91,374 2% Senior Living $89,263 2% 36 Top 10 Industry Concentrations Loan Portfolio is Diversified Top 10 Industries Represent 43% or $2.3 billion of Total Loans Note: Industry data is obtained from loan classifications pursuant to the North American Industry Classification System (“NAICS”)
$5,357,284 $5,717,358 $5,604,228 $5,836,025 $6,039,821 $6,055,539 99% 100% 97% 99% 99% 99% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 150% $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2021 2022 2023 2024 2025 YTD 2026 Average Deposits % of Funding 37 Average Deposits Average YTD Deposit Growth of $181 million or 3% Compared to Prior Year De po sit s De po sit s a s a P er ce nt o f T ot al F un di ng (000’s) 2026 YOY Increase 3%Compound annual growth rate “CAGR” is based on the most recent 5-year calculation
38 Deposit Breakdown Deposit Costs Are Repricing Downward with Federal Funds Rate Cuts Total Retail $1,800,420 29% Total Public Fund $1,877,855 30% Total Commercial $2,136,404 35% Brokered Deposits $375,581 6% March 31, 2026 Total Deposits - $6.2 billion (000’s) 0.00% 1.00% 2.00% 3.00% 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 20 24 20 25 YT D 20 26 Annual Cost of Deposits Deposit Composition at end of period 2019 2026 Non-interest Bearing Demand Deposits 24% 21% Interest Bearing Demand, Savings & MMA 47% 64% Time Deposits > or = to $100,000 22% 12% Time Deposits < $100,000 7% 3% Total Deposits (billions) $4.1 $6.2
39 Net Interest Income Year over Year Improvement in Net Interest Income $178,088 $202,887 $197,035 $196,679 $221,017 $52,875 $56,773 3.07% 3.40% 3.31% 3.18% 3.45% 3.40% 3.49% 2.50% 3.00% 3.50% 4.00% 4.50% $0 $50,000 $100,000 $150,000 $200,000 $250,000 2021 2022 2023 2024 2025 YTD 2025 YTD 2026 Net Interest Income Net Interest Margin, fully tax equivalent (000’s) N et In te re st In co m e N et In te re st M ar gi n, fu lly ta x eq ui va le nt 2026 YOY Increase 7%Compound annual growth rate “CAGR” is based on the most recent 5-year calculation
40 Asset Quality Total Individually Analyzed and Watchlist Loans Return to Historic Lows 1. 52 % 2. 15 % 2. 75 % 1. 37 % 0. 94 % 0. 50 % 0. 42 % 0. 19 % 0. 25 % 0. 19 % 0. 46 % 0. 26 % 0. 35 % 0. 36 % 0. 32 % 1. 10 % 0. 39 % 0. 38 % 1. 22 % 1. 82 % 2. 20 % 1. 75 % 1. 31 % 0. 41 % 0. 35 % 0. 16 % 0. 20 % 0. 16 % 0. 38 % 0. 21 % 0. 23 % 0. 27 % 0. 25 % 0. 85 % 0. 30 % 0. 30 % 8.86% 8.17% 7.46% 8.06% 6.64% 5.75% 4.64% 4.28%4.50%4.77% 4.43% 6.75% 5.50% 3.42%3.72% 4.13% 3.42%3.33% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD 2026 Nonperforming Loans/Total Loans Nonperforming Assets/Total Assets Individually Analyzed and Watch List Loans to Total Loans excluding PPP N on pe rf or m in g As se ts to T ot al A ss et s W at ch Li st L oa ns to T ot al L oa ns e xc lu di ng P PP
41 Asset Quality Allowance for Credit Losses is Stable 0. 42 % 0. 54 % 0. 25 % 0. 20 % 0. 11 % 0. 10 % 0. 09 % 0. 03 % -0 .0 1% 0. 13 % 0. 03 % 0. 09 % 0. 09 % 0. 10 % 0. 13 % 0. 05 % 0. 55 % 0. 16 % 1.59% 2.15% 2.39% 2.28% 1.92% 1.67% 1.42% 1.26%1.23%1.24%1.25% 1.45% 1.59%1.54% 1.46% 1.68% 1.28%1.26% 0.00% 0.30% 0.60% 0.90% 1.20% 1.50% 1.80% 2.10% 2.40% 2.70% -0.20% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD 2026 AC L to T ot al L oa ns , e xc lu di ng P PP N et C ha rg eo ffs to A ve ra ge L oa ns Net Chargeoffs/Average Loans Allowance for Credit Losses to Total Loans, excluding PPP Note: Current Expected Credit Loss (“CECL”) Standard adopted effective 1/1/21
42 Noninterest Income Fee-Based Revenue Produces High Single Digit Growth $44,720 $41,862 $49,858 $56,844 $47,971 $10,928 $12,93320% 17% 20% 22% 18% 17% 19% 0% 10% 20% 30% 40% 50% 60% $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2021 2022 2023 2024(1) 2025 YTD 2025 YTD 2026 N on -In te re st In co m e as % o f T ot al R ev en ue N on -In te re st In co m e Non-Interest Income % of Total Revenue 2026 YOY Increase 18% (000’s) (1) Noninterest Income includes $10.0 million of non-core income in 2024. See the “Reconciliation of Non-GAAP Financial Measures” in the 2025 Form 10-K Compound annual growth rate “CAGR” is based on the most recent 5-year calculation
43 2026 YOY Increase 9% Total Revenue Revenue Growth Benefits from High Single Digit Growth in Net Interest Income $222,808 $244,749 $246,893 $253,523 $268,988 $63,803 $69,706 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2021 2022 2023 2024 2025 YTD 2025 YTD 2026 (000’s) Compound annual growth rate “CAGR” is based on the most recent 5-year calculation
44 Noninterest Expense $104,287 $110,210 $130,710 $125,084 $131,605 $32,763 $35,151 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 2021 2022 2023 2024(1) 2025 YTD 2025 YTD 2026 (000’s) 2026 YOY Increase 7% Disciplined Investment in People, Branch Expansion and Technology Continues Compound annual growth rate “CAGR” is based on the most recent 5-year calculation (1)Noninterest Expense includes $4.5 million of non-core expense in 2024. See the “Reconciliation of Non-GAAP Financial Measures” in the 2025 Form 10-K
45 Efficiency Ratio Efficiency Ratio is Stable 51% 52% 50% 50% 48% 46% 45% 45% 43% 47% 45% 53% 49% 49% 50% 0% 10% 20% 30% 40% 50% 60% 70% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD 2026 Efficiency Ratio Constant investment in human capital, technology and facilities 12023 Year-to-date adjusted core efficiency ratio excludes the second quarter 2023 wire fraud loss loss, net, of salary and benefits adjustment for a total of $16.2 million
46 Stable Healthy Dividend Growth in Dividend Reflects Strength of Capital $1.36 $1.60 $1.84 $1.92 $2.00 $0.50 $0.52 1.70% 2.19% 2.82% 2.79% 3.51% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% $0.10 $0.60 $1.10 $1.60 $2.10 2021 2022 2023 2024 2025 YTD 2025 YTD 2026 Dividend Per Share Dividend Yield 2026 YOY Increase 4% Di vi de nd p er S ha re Di vi de nd Y ie ld Compound annual growth rate “CAGR” is based on the most recent 5-year calculation
47 LKFN Shareholder Value Total Return Performance from 12/31/00 to 3/31/26 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 20 24 20 25 LKFN S&P 500 S&P 500 US BMI Banks Index S&P Financials 2,572.63% 692.48% 306.45% 251.99% 3,000.00 2,500.00 2,000.00 1,500.00 1,000.00 500.00 0.00 (500.00) 20 26
48 Investment Highlights • Proven History of Organic Growth • Disciplined and Focused Strategy • Strong Internal Culture • Consistent Execution and Financial Results • Service Excellence Drives Shareholder Value • Unwavering Focus on Core Business Strategy • Dedication to Long-term Shareholder Value Creation
Supplemental Information
50 Lake City Bank Capital Adequacy Capital Strength Contributes to Fortress Balance Sheet Regulatory Ratio Description * March 31, 2026 Actual Well- Capitalized Threshold Capital Cushion (in 000’s) Non-GAAP AOCI and HTM Losses- after tax Non-GAAP Excess Capital after AOCI and HTM Non-GAAP Adjusted Capital Ratios with AOCI and HTM Losses Tier 1 Leverage Ratio 12.35% 5.00% $529,284 $(137,362) $378,871 10.26% Common Tier 1 (CET) 14.63% 6.50% $494,171 $(137,362) $343,758 12.15% Tier 1 Risk Based Capital 14.63% 8.00% $402,945 $(137,362) $252,532 12.15% Tier 2 Risk Based Capital 15.76% 10.00% $350,313 $(137,362) $199,900 13.29% * Regulatory Ratios are preliminary pending the finalization of regulatory filings
51 Robust Liquidity Sources • Available liquidity is stable at $3.3 billion, a decrease from $3.5 billion at December 31, 2025 • Sources of liquidity are varied and represent wholesale funding and brokered deposits • Brokered deposits represent 6% of total deposits up from 1% at December 31, 2025 • Noncore funding represented 7% of total deposits and purchased funds as of March 31, 2026, compared to 4% as of December 31, 2025
(000) Liquidity Availability Used Unused/ Available Additional Loan Collateral Available for Pledge Secured/Committed Borrowings: Federal Home Loan Bank-Indianapolis(1) $ 649,679 $ 51,200 $ 598,479 $ -- Federal Reserve Bank Discount Window 1,179,813 -- 1,179,813 556,294 Total Secured/Committed $ 1,829,492 $ 51,200 $ 1,778,292 $ 556,294 Unsecured/Uncommitted Borrowings: Brokered Certificates of Deposit(2) $ 625,846 $ 200,000 $ 425,846 $ -- Brokered Money Market Deposit(3) 212,510 175,581 36,929 -- Insured Cash Sweep-One Way Buy(4) 100,000 -- 100,000 -- Fed Fund Lines 395,000 -- 395,000 -- Total Unsecured/uncommitted borrowings $ 1,333,356 $ 375,581 $ 957,775 $ -- Investment Securities available for pledge: Agencies, MBS and CMO(5) 226,480 -- 226,480 -- Municipals(6) 349,211 -- 349,211 -- Total Investment Securities Available 575,691 -- 575,691 -- Total Lake City Bank Liquidity Preparedness $ 3,738,539 $ 426,781 $ 3,311,758 $ 556,294 52 Liquidity Preparedness March 31, 2026 (1) The BOD has authorized borrowing capacity up to $800 million, and qualifying collateral is required for availability (2) Brokered deposit capacity is equal to 10% of total deposits plus purchased funds, per LCB policy (3) Brokered money market capacity is equal to 3% of total assets, per LCB policy (4) Insured cash sweep OWB capacity is based on previous contracts with IntraFi Network (formerly Promontory) (5) Investment securities are eligible collateral at the FRB – Discount Window and FHLB (6) Municipal securities are eligible collateral at the FRB – Discount Window
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 Mar-26 Checking and MMA CDs (000) $1,877,855 53 Public Fund Deposit Trends 87% of Large Depositors include Operating Relationships $1,127,111 $1,162,457 $1,284,641 $1,429,873 $1,563,015 $1,809,631 $1,979,327 Note: Public Funds in Indiana are covered by the Public Deposit Insurance Fund (PDIF). The bank is not required to pledge collateral to secure public funds due to its financial strength as determined by the Indiana Board of Depositories.
54 Commercial Loans by County Commercial Customers in 53 Indiana Counties and 21 Other States (1) All other counties individually represent less than 2% of total March 31, 2026 (000’s) Allen 15% Elkhart 14% St. Joseph 8% Kosciusko 10% Hamilton 11% Marion 15% Marshall 3% Other IN Counties (1) 16% Outside IN 8% Commercial Loans Outstanding as of 3/31/2026 $4.8 billion
55 Investment Portfolio Recurring Cash Flows Used to Fund Organic Loan Growth M V In ve st m en ts a s a % o f A ss et s Note: Ratio of total securities to total assets excludes PPP loans of $412 million in 2020, $26 million in 2021 and $2 million in 2022 from total assets 12% 12% 12% 14% 21% 20% 18% 17% 17% 16% 0% 5% 10% 15% 20% 25% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 March 31, 2026 Weighted Maturity Book Yield Market Value US Govt REMICS 5.30 2.45 85,310 US Govt Pools 6.24 2.52 354,901 US Govt Agencies 7.22 1.79 113,482 US Treasury Notes/Bills 2.25 3.57 15,104 AFS Municipals (TEY) 13.49 2.91 458,194 HTM Municipals (TEY) 14.67 2.73 114,241 Total (Tax-Equivalent Yield) 10.06 2.63% $1,141,232 Held-to-Maturity 133,617$ Available-for-Sale 1,026,991$ Carrying Value US Govt Remics 8% US Govt Pools 31% AFS Municipals 40%US Treasury Notes/Bills 1% HTM Municipals 10% US Govt Agencies 10%
56 Investment Security Portfolio Cashflows Cash Flows of $427 million Expected Through March 2030 21 ,9 60 24 ,5 20 17 ,2 71 15 ,8 37 16 ,8 77 22 ,2 90 16 ,0 55 15 ,2 32 20 ,8 78 23 ,1 28 19 ,1 98 19 ,0 85 20 ,2 44 18 ,5 97 14 ,0 49 18 ,7 23 7, 79 0 9, 16 1 7, 53 7 8, 90 0 7, 34 9 8, 71 6 7, 15 1 8, 42 5 6, 97 8 8, 23 7 6, 73 0 7, 88 5 6, 55 9 7, 58 1 6, 33 0 7, 39 2 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Principal Interest (000,000) Investment Portfolio Expected to Generate $113 million in Cash Flows over the next Twelve Months
Investment Portfolio Analysis Portfolio Shrinking as a Percentage of Total Assets 57 3/31/2026 12/31/2025 Weighted Maturity Market Value % of Total Weighted Maturity Market Value % of Total US Govt REMICS 5.30 85,310 7% 5.21 90,111 8% US Govt Pools 6.24 354,901 31% 6.17 364,052 31% US Agencies 7.22 113,482 10% 7.70 115,690 10% US Treasury Notes/Bills 2.25 15,104 1% 2.17 10,119 1% AFS Municipals (Exempt) 13.49 458,194 40% 13.76 472,090 40% HTM Municipals 14.67 114,241 10% 14.92 117,510 10% Total 10.06 $1,141,232 100% 10.20 $1,169,572 100% Unrealized losses AFS ($154,500) ($143,255) Unrealized losses HTM ($19,376) ($15,698) Total market value losses ($173,876) ($158,953) Portfolio effective duration, tax equivalent(1) 5.97 5.94 Investment securities as a % of assets 16% 17% (1) Effective duration on a tax equivalent basis incorporates the historical price sensitivity relationship between tax-free and taxable securities. Tax-free securities have 2/3 of the price risk as a taxable security for a given change in taxable rates.
58 Larger Market Organic Expansion Organic Growth State Rank County Primary City Population* LCB Entry LCB Deposit Market Share** # of Branches 22. Kosciusko Warsaw 80,669 1872 67% 12 6. Elkhart Elkhart 207,436 1990 24% 11 5. St. Joseph South Bend 273,744 1997 8% 4 3. Allen Fort Wayne 399,295 1999 16% 5 1. Hamilton, Johnson, Marion Indianapolis 1,531,946 2011 1% 9 * Source: STATS Indiana ** Source: FDIC 6/30/25 Statistics
59 Branch Expansion Strategy for Growth Lake City Bank Deposits in Indianapolis Total $606 Million at June 30, 2025 Indiana County 2025 Population 2050 Projected Population 25- year projected % growth 2025 Deposits in Market (000’s) Lake City Bank 2025 Deposits (000’s) Lake City Bank 2025 Deposit Market Share Lake City Bank Branches Hamilton 384,401 529,505 38% $28,239,463 $495,564 1.75% 4 Marion 965,874 1,011,523 5% $43,268,429 $80,015 0.18% 3 Johnson 171,056 203,455 19% $3,855,297 $30,700 0.80% 1 Boone 78,948 107,634 36% $1,842,747 n/a 0% 0 Tippecanoe 189,425 201,073 6% $3,908,258 n/a 0% 0 (Note: Population data sourced from www.stats.Indiana.edu and deposit market share from the FDIC as of June 30, 2025)
60 Mature Market Strength and Growth Organic Growth (millions)1 2025 2015 2025 # of OfficesDeposits Share Deposits Share Increase 1. Lake City Bank $5,573 19.68% $2,752 15.53% 102.51% 55 2. 1st Source $5,539 19.56% $2,850 16.09% 94.35% 51 3. JPM Chase $3,242 11.45% $1,918 10.83% 69.03% 20 4. PNC $1,562 5.51% $1,279 7.22% 22.13% 16 5. Flagstar/Wells Fargo(2) $1,090 3.85% $2,276 12.85% (52.11)% 16 6. First Merchants $963 3.40% $676 3.81% 42.46% 10 7. Star $952 3.36% $495 2.79% 92.32% 10 8. Fifth Third $859 3.03% $365 2.06% 135.34% 8 9. Old National $814 2.87% $613 3.46% 32.79% 9 10. Farmers State $744 2.63% $316 1.78% 135.44% 8 Market Total $28,321 $17,715 59.87% 1Mature Markets includes 12 Northern Indiana counties and excludes 3 Central Indiana counties / branch count for Lake City Bank reflects all offices, other banks listed reflect market total 2Flagstar purchased Wells Fargo Indiana branches in 2018 Adjusted to include branches subsequently acquired by surviving banks. Data based on June 30th regulatory reporting for each year presented.
FAQ
How did Lakeland Financial (LKFN) perform financially in early 2026?
Lakeland Financial reported strong early 2026 performance, with year-to-date net income rising 32% to about $26.5 million and diluted EPS up 33% versus the prior-year period. Improved net interest income and margin, along with controlled noninterest expense, supported higher profitability.
What are Lakeland Financial’s key profitability ratios for year-to-date 2026?
Year-to-date 2026, Lakeland Financial generated a return on average assets of 1.52%, return on average equity of 13.89%, and return on average tangible common equity of 13.96%. These ratios exceed peer averages cited in the presentation and reflect solid earnings on both asset and equity bases.
How strong is Lakeland Financial’s capital position according to the Q1 2026 presentation?
The company highlights a tangible common equity to tangible assets ratio of 10.53%, adjusted to 12.20% excluding certain securities impacts. Its total risk-based capital ratio is 15.58%, comfortably above well-capitalized thresholds, giving management flexibility to support loan growth and dividends.
What trends did Lakeland Financial report for loans and deposits in 2026?
Average loans grew about 5% year over year to roughly $5.44 billion, while average deposits increased about 3% to roughly $6.06 billion. Deposits fund about 99% of total funding, underscoring a core-deposit-based franchise rather than heavy reliance on wholesale borrowings.
How is Lakeland Financial’s net interest margin and deposit cost trending?
The fully tax-equivalent net interest margin improved to 3.49% in early 2026, a 9-basis-point expansion over first quarter 2025. Management notes deposit costs are repricing downward as the federal funds rate declines, helping support net interest income alongside modest loan growth.
What does the investor presentation say about Lakeland Financial’s asset quality?
The presentation shows nonperforming loans and watchlist balances at historically low levels, with the allowance for credit losses at 1.28% of total loans excluding PPP. Net charge-offs remain modest, indicating a generally sound credit portfolio across commercial, real estate and consumer segments.