STOCK TITAN
  1. Home
  2. Sec-filings
  3. LKFN
  4. [8-K] LAKELAND FINANCIAL CORP Reports Material Event

Record Q2 profit and loan growth at Lakeland Financial (Nasdaq: LKFN)

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Lakeland Financial Corporation reported record second‑quarter 2026 results, with net income of $28.4 million and diluted EPS of $1.13, up 5% and 9% from the prior‑year quarter. For the first half of 2026, net income reached $54.9 million and diluted EPS $2.17, increases of 17% and 19%.

Total revenue was $70.9 million for the quarter, up 7% year over year, as net interest income grew 6% and noninterest income 9%. Net interest margin was 3.49%, 7 basis points higher than a year earlier, supported by lower funding costs. Average loans rose 6% year over year to $5.53 billion, and period‑end loans grew 7% to $5.58 billion, while average deposits increased 4%.

Asset quality remained strong: annualized net charge‑offs were near zero, nonperforming assets fell 36% to $20.0 million, and the allowance for credit losses stayed at 1.27% of loans. Capital ratios were robust, including a common equity tier 1 ratio of 14.47% and a tangible common equity to tangible assets ratio of 10.63%. Tangible book value per share rose 12% to $30.75, and the quarterly dividend was increased 4% to $0.52 per share alongside ongoing share repurchases.

Positive

  • Record profitability with double-digit first-half earnings growth: Q2 2026 net income reached $28.4 million and first-half net income rose 17% to $54.9 million, with diluted EPS up 19% year over year to $2.17.

Negative

  • None.

Filing Explained

As of June 30, the company had $17.1 million of repurchase authority remaining after buying back 70,873 shares.

Form 8-K filings report specified material events; here, Lakeland furnishes its unaudited second-quarter and first-half results and reports completed share repurchases during the quarter.

It repurchased $4.1 million of common stock, or 70,873 shares, leaving $17.1 million of authorization through April 30, 2027; the purchases are completed, while the remaining amount is capacity rather than a committed future purchase.

Although management describes loan performance as stable, individually analyzed and watch-list loans increased to $198.0 million from $182.3 million at March 31, with approximately $13.2 million of the linked-quarter increase driven primarily by credit downgrades.

Total deposits rose 2% year over year to $6.33 billion, but core deposits increased less than 1% while brokered deposits rose 99%, changing the composition of the reported funding growth.

The June 30 capital ratios remain preliminary until the company files its FR Y-9C, a specific resolution point for the capital figures.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income Q2 2026 $28.4 million Net income for the three months ended June 30, 2026; up 5% year over year.
Diluted EPS Q2 2026 $1.13 Record second‑quarter diluted earnings per share; increased 9% from $1.04 in Q2 2025.
Total revenue Q2 2026 $70.9 million Total revenue for Q2 2026; increased $4.5 million, or 7%, from $66.4 million a year earlier.
Loans outstanding $5.58 billion Total loans as of June 30, 2026; up $352.8 million, or 7%, from June 30, 2025.
Net interest margin 3.49% Net interest margin for Q2 2026; 7 basis points higher than 3.42% in Q2 2025.
Common equity tier 1 ratio 14.47% CET1 capital ratio at June 30, 2026, significantly above well‑capitalized regulatory levels.
Nonperforming assets $20.0 million Nonperforming assets at June 30, 2026; decreased 36% from $31.1 million a year earlier.
Tangible book value per share $30.75 Tangible book value per common share at June 30, 2026; up $3.27, or 12%, year over year.
net interest margin financial
"Net interest margin was 3.49% for the second 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.
tangible common equity financial
"Tangible common equity improved by 9% at June 30, 2026 compared"
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.
brokered deposits financial
"Core deposits, which exclude brokered deposits, represented 95% of total deposits"
Brokered deposits are large sums of customer cash placed at a bank through a third-party intermediary that shops around for the best interest rate, like a broker assembling a big bucket of savings and directing it to a bank. They matter to investors because they can quickly change a bank’s funding level and cost — providing fast liquidity but also adding volatility and regulatory scrutiny that can affect a bank’s stability and profitability.
nonperforming assets financial
"Nonperforming assets decreased by $11.1 million, or 36%, to $20.0 million"
Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.
efficiency ratio financial
"The company’s efficiency ratio was 48.6% for the second quarter of 2026"
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.
Net income Q2 2026 $28.4 million up $1.5 million, or 5%, from net income of $27.0 million in Q2 2025
Diluted EPS Q2 2026 $1.13 up $0.09, or 9%, from $1.04 in the second quarter of 2025
Net income first half 2026 $54.9 million up $7.9 million, or 17%, from $47.1 million for the first half of 2025
Diluted EPS first half 2026 $2.17 up $0.35, or 19%, from $1.82 for the comparable 2025 period
Total revenue Q2 2026 $70.9 million up $4.5 million, or 7%, from $66.4 million in the second quarter of 2025
Net interest margin Q2 2026 3.49% up 7 basis points from 3.42% in the second quarter of 2025

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

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Understanding 8-K Material Events →

FAQ

How did Lakeland Financial (LKFN) perform in the second quarter of 2026?
Lakeland Financial reported record Q2 2026 net income of $28.4 million and diluted EPS of $1.13, up 5% and 9% from Q2 2025. Total revenue rose 7% to $70.9 million, and net interest margin improved to 3.49%.

How strong was Lakeland Financial’s capital position in Q2 2026?
Lakeland Financial reported a common equity tier 1 ratio of 14.47% and total risk‑based capital ratio of 15.61% at June 30, 2026. The tangible common equity to tangible assets ratio was 10.63%, well above the 10% “well capitalized” regulatory threshold.

What was LKFN’s asset quality like as of June 30, 2026?
Asset quality was strong, with nonperforming assets of $20.0 million, down 36% from a year earlier, and a nonperforming assets to total assets ratio of 0.28%. Net charge‑offs were only $24,000, and the credit loss reserve was 1.27% of loans.

Did Lakeland Financial (LKFN) return capital to shareholders in Q2 2026?
Yes. The quarterly cash dividend was raised to $0.52 per share, up 4% from Q2 2025. The company also repurchased 70,873 shares at an average price of $58.20, spending $4.1 million, with $17.1 million of repurchase authority remaining.

How did noninterest income and expenses trend for LKFN in Q2 2026?
Noninterest income rose 9% year over year to $12.6 million, led by higher wealth advisory fees and bank owned life insurance income. Noninterest expense increased 13% to $34.5 million, mainly from higher salaries, incentives, and technology investments, yielding an efficiency ratio of 48.6%.
0000721994FALSE00007219942026-07-272026-07-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549  

FORM8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported): July 27, 2026  
 
LAKELAND FINANCIAL CORPORATION
(Exact name of Registrant as specified in its charter) 
Indiana 0-11487 35-1559596
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
 
202 East Center Street,
Warsaw,Indiana46580
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (574) 267-6144
 
(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
Common Stock, no par value LKFN The Nasdaq Stock Market, LLC
 
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 2.02. Results of Operations and Financial Condition
 
On July 27, 2026, Lakeland Financial Corporation (the “Company”) issued a press release announcing its earnings for the three and six months ended June 30, 2026. The press release is furnished herewith as Exhibit 99.1.
 
The disclosure in this Item 2.02 and the related exhibit under Item 9.01 are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The disclosure in this Item 2.02 and the related exhibit under Item 9.01 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
 
Item 9.01. Financial Statements and Exhibits
 
(d)Exhibits

99.1     Press Release dated July 27, 2026

104     Cover Page Interactive Data File (embedded within 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:  July 27, 2026
By:/s/ Lisa M. O’Neill
  Lisa M. O’Neill
  Executive Vice President
  and Chief Financial Officer

lakelandlogo.jpg
Exhibit 99.1

NEWS FROM LAKELAND FINANCIAL CORPORATION
FOR IMMEDIATE RELEASE
 
Contact
Lisa M. O’Neill
Executive Vice President and Chief Financial Officer
(574) 267-9125
lisa.oneill@lakecitybank.com
 
Lakeland Financial Reports Record Second Quarter Performance; Net Income Increases 5% to $28.4 million on 7% Revenue Expansion; Average Loans Grow by 6%

Warsaw, Indiana (July 27, 2026) – Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported record second quarter net income of $28.4 million for the three months ended June 30, 2026, which represents an increase of $1.5 million, or 5%, compared to net income of $27.0 million for the three months ended June 30, 2025. Diluted earnings per share of $1.13 for the second quarter of 2026 also represents a record second quarter performance and increased $0.09, or 9%, compared to $1.04 for the second quarter of 2025. On a linked quarter basis, net income increased $2.0 million, or 7%, from $26.5 million. Diluted earnings per share increased $0.09, or 9%, from $1.04 on a linked quarter basis.

The company further reported record performance for the first half of the year with net income of $54.9 million for the six months ended June 30, 2026 versus $47.1 million for 2025, an increase of $7.9 million, or 17%. Diluted earnings per share increased $0.35, or 19%, to $2.17 for the six months ended June 30, 2026, versus $1.82 for 2025.

Total revenue was $70.9 million for the second quarter of 2026 representing an increase of $4.5 million, or 7%, as compared to $66.4 million for the second quarter of 2025. On a linked quarter basis, revenue increased by $1.2 million, or 2%, from $69.7 million in the first quarter of 2026. Total revenue increased by $10.4 million, or 8%, to $140.6 million for six months ended June 30, 2026, as compared to $130.2 million for 2025.
"During the first half of 2026, the Lake City Bank team delivered strong operating results led by healthy loan and revenue growth," stated David M. Findlay, Chairman and CEO. "Our record second quarter net income reflects the continued execution of our proven organic growth strategy. It's been a rewarding six months of 2026."

Quarterly Financial Performance
 
Second Quarter 2026 versus Second Quarter 2025 highlights:
•Loans grew by $352.8 million, or 7%, to $5.58 billion
•Total revenue improved by 7% from $66.4 million to $70.9 million
•Net interest margin improved 7 basis points to 3.49% versus 3.42%
•Net interest income increased by $3.4 million, or 6%
•Noninterest income increased by $1.1 million, or 9%
•Return on average equity of 15.00%, compared to 15.52%
•Return on average assets improved to 1.59%, compared to 1.57%
•Tangible book value per share grew by $3.27, or 12%, to $30.75
•Watch list loans as a percentage of total loans improved to 3.55% from 3.67%
•Nonaccrual loans declined to $19.9 million, compared to $30.6 million
•Common dividend per share increased to $0.52, or 4%, compared to $0.50
•Tangible capital ratio improved to 10.63%, compared to 10.15%
•Tangible common equity improved by $63.4 million, or 9%
•Common equity tier 1 capital ratio of 14.47%, compared to 14.73%
•Total risk-based capital ratio of 15.61%, compared to 15.86%
•Repurchased 70,873 shares at a weighted average per share price of $58.20

Second Quarter 2026 versus First Quarter 2026 highlights:
•Total loans increased by $106.3 million, or 2%, to $5.58 billion
1

lakelandlogo.jpg
•Core deposits expansion of $215.7 million, or 4%, to $6.03 billion
•Total revenue grew by 2% from $69.7 million to $70.9 million
•Return on average equity improved to 15.00%, compared to 13.89%
•Return on average assets improved to 1.59%, compared to 1.52%
•Tangible book value per share grew by $1.06, or 4%, to $30.75
•Net interest margin remained stable at 3.49%
•Net interest income increased by $1.5 million, or 3%
•Noninterest expense declined by 2% to $34.5 million from $35.2 million
•Common equity tier 1 capital ratio improved to 14.47%, compared to 14.45%
•Total risk-based capital ratio improved to 15.61%, compared to 15.58%
•Tangible capital ratio improved to 10.63%, compared to 10.53%
•Tangible common equity improved by $24.4 million, or 3%

Net Interest Margin

Net interest margin was 3.49% for the second quarter of 2026, representing a 7 basis point increase from 3.42% for the second quarter of 2025. This improvement was driven by a reduction in the company's funding costs, with interest expense as a percentage of average earning assets falling by 25 basis points from 2.41% for the second quarter of 2025 to 2.16% for the second quarter of 2026. Offsetting the decrease in funding costs was a decrease to earning asset yields of 18 basis points from 5.83% for the second quarter of 2025 to 5.65% for the second quarter of 2026. Net interest margin was favorably impacted by a reduction in deposit pricing that outpaced the decline in earning asset yields. The cumulative loan beta for the rate-easing cycle that began in September 2024 is 30% compared to the deposit beta of 43% during this period and has resulted in net interest margin expansion that has benefited net interest income.

Net interest margin remained at 3.49% for the second quarter of 2026 as compared to the linked first quarter of 2026. Average earning asset yields increased by 4 basis points from 5.61% to 5.65% on a linked quarter basis and were offset by increased interest expense as a percentage of average earning assets by 4 basis points from 2.12% to 2.16%. The second quarter cost of funds was impacted by seasonal public funds deposits in higher priced deposit products.

Net interest income was $58.3 million for the second quarter of 2026, representing an increase of $3.4 million, or 6%, as compared to $54.9 million for the second quarter of 2025. On a linked quarter basis, net interest income increased $1.5 million, or 3%, from $56.8 million. Net interest income increased by $7.3 million, or 7%, from $107.8 million for the six months ended June 30, 2025, to $115.1 million for the six months ended June 30, 2026.
"During the second quarter of 2026, our net interest margin remained unchanged at 3.49% as loan yield increases offset increased cost of funds," noted Lisa M. O'Neill, Executive Vice President and Chief Financial Officer. "We remain close to our recent peak net interest margin of 3.50% in the third quarter of 2025. We believe the steepening yield curve benefits our net interest margin outlook and as the outlook for interest rate policy shifts, we believe our neutral interest rate posture positions us well."

Capital Strength

The company’s total capital as a percentage of risk-weighted assets was 15.61% at June 30, 2026, compared to 15.86% at June 30, 2025, and 15.58% at March 31, 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 10.63% at June 30, 2026, an improvement from 10.15% at June 30, 2025, and 10.53% at March 31, 2026. Unrealized losses from available-for-sale investment securities were $140.9 million at June 30, 2026, compared to $185.3 million at June 30, 2025 and $154.5 million at March 31, 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 12.14% at June 30, 2026, compared to 12.17% at June 30, 2025, and 12.20% at March 31, 2026.

The company utilized its share repurchase program to repurchase 70,873 shares of its common stock at a weighted average price per share of $58.20 during the second quarter of 2026. The aggregate purchase price of these repurchases was $4.1 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. The company has repurchased a total of 745,616 shares at an aggregate
2

lakelandlogo.jpg
purchase price of $42.9 million and weighted average purchase price per share of $57.58 under the current program with $17.1 million in remaining repurchase authority as of June 30, 2026.

As announced on July 14, 2026, the board of directors approved a cash dividend for the second quarter of $0.52 per share, payable on August 5, 2026, to shareholders of record as of July 25, 2026. The second quarter dividend per share represents a 4% increase from the $0.50 dividend per share paid for the second quarter of 2025.

"Strength of capital continues to support our growing balance sheet," stated Kristin L. Pruitt, President. "Tangible common equity improved by 9% at June 30, 2026 compared to June 30, 2025. We strategically continued our share repurchase program during the first half of 2026. Our healthy capital levels provide ample capacity for continued balance sheet growth as we experience strong loan growth in the Lake City Bank footprint."

Loan Portfolio

Average total loans of $5.53 billion in the second quarter of 2026 increased $301.7 million, or 6%, from $5.23 billion for the second quarter of 2025, and increased $90.5 million, or 2%, from $5.44 billion for the first quarter of 2026.

Total loans, net of deferred loan fees, increased by $352.8 million, or 7%, from $5.23 billion as of June 30, 2025, to $5.58 billion as of June 30, 2026. The growth in loans was driven by increases in both the commercial and consumer segments of the portfolio, with increases to the commercial and industrial loans of $150.6 million, or 10%, consumer 1-4 family mortgage loans of $82.7 million, or 16%, commercial real estate and multi-family residential loans of $80.2 million, or 3%, other commercial loans of $25.6 million, or 27%, and other consumer loans of $14.1 million, or 14%. On a linked quarter basis, total loans increased by $106.3 million, or 2%, from $5.48 billion at March 31, 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 $65.6 million, or 4%, consumer 1-4 family mortgage loans of $28.0 million, or 5%, other commercial loans of $25.3 million, or 26.4%, and commercial real estate and multi-family residential loans of $20.3 million, or 1%. Offsetting these increases, agri-business and agricultural loans declined by $34.7 million, or 9%.

Commercial loan originations for the second quarter were approximately $504.0 million and were offset by approximately $427.0 million in loan pay downs. Commercial and industrial line of credit usage increased to 43% as of June 30, 2026, from 40% at June 30, 2025, and 41% at March 31, 2026. Total commercial and industrial lines of credit expanded by $155.0 million, or 7%, as compared to a year ago, and line usage increased by $120.0 million, or 14%, over that period.
Findlay added, "Our year-over-year organic loan growth of 7% reflects outstanding work by our commercial and retail lending teams. Our prospect and client business development program is yielding tangible results, and we remain well positioned for continued growth. We are very pleased with 10% growth in commercial and industrial loans, which represent the foundation of our commercial banking business. In addition, commercial and industrial line of credit utilization of 43% at June 30, 2026, represents increased usage compared to 39% at December 31, 2025. We are particularly pleased to report that our total consumer loans have grown by 16% on a year-over-year basis."
3

lakelandlogo.jpg
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 95% of total deposits.

(in thousands)June 30, 2026March 31, 2026June 30, 2025
Retail$1,769,029 28.0 %$1,800,420 29.1 %$1,755,750 28.4 %
Commercial2,113,784 33.4 2,136,404 34.5 2,256,620 36.6 
Public funds2,147,600 33.9 1,877,855 30.3 2,014,047 32.6 
Core deposits6,030,413 95.3 5,814,679 93.9 6,026,417 97.6 
Brokered deposits299,155 4.7 375,581 6.1 150,416 2.4 
Total$6,329,568 100.0 %$6,190,260 100.0 %$6,176,833 100.0 %

Total deposits increased $152.7 million, or 2%, from $6.18 billion as of June 30, 2025, to $6.33 billion as of June 30, 2026. The increase in total deposits was driven by an increase in brokered deposits of $148.7 million, or 99%. Core deposits increased by $4.0 million, or less than 1%. Public funds deposits grew annually by $133.6 million, or 7%, to $2.15 billion. Retail deposits expanded by $13.3 million, or 1%, to $1.77 billion. Commercial deposits contracted by $142.8 million, or 6%, to $2.11 billion.

On a linked quarter basis, total deposits increased $139.3 million, or 2%, from $6.19 billion at March 31, 2026, to $6.33 billion at June 30, 2026. Core deposits increased by $215.7 million, or 4%, while brokered deposits decreased by $76.4 million, or 20%. The linked quarter growth in core deposits was driven primarily by a seasonal growth in public funds of $269.7 million, or 14%. Commercial deposits decreased by $22.6 million, or 1%, and retail deposits decreased by $31.4 million, or 2%.

Average total deposits were $6.31 billion for the second quarter of 2026, an increase of $216.2 million, or 4%, from $6.10 billion for the second quarter of 2025. Average interest-bearing deposits drove the increase in average total deposits and increased by $232.5 million, or 5%. Contributing to the overall growth of interest-bearing deposits was an increase in total average time deposits of $131.4 million, or 16%. Average interest-bearing checking accounts increased $99.5 million, or 3%. Average noninterest-bearing demand deposits decreased by $16.3 million, or 1%, to $1.23 billion.

On a linked quarter basis, average total deposits increased by $257.1 million, or 4%, from $6.06 billion for the first quarter of 2026 to $6.31 billion for the second quarter of 2026. Average interest-bearing deposits drove the increase in total average deposits, which increased by $264.0 million, or 5%. Interest bearing checking accounts grew by $180.7 million, or 5%. Average time deposits expanded by $83.4 million, or 10%. Offsetting these increases was a decrease in average noninterest bearing demand deposits of $6.8 million, or 1%.

Checking account growth as of June 30, 2026, compared to June 30, 2025, includes growth of $249.2 million, or 13%, in aggregate public fund checking account balances. Offsetting this increase was a reduction of $10.4 million, or 1%, in aggregate retail checking account balances and a decline of $173.5 million, or 8%, in aggregate commercial checking account balances. The number of accounts expanded for all three segments, with growth of 3% for public funds accounts, 2% for commercial accounts and 1% for retail accounts.

"Core deposits represented 95% of total deposits at June 30, 2026", commented O'Neill. "On a linked-quarter basis core deposits improved by $215.7 million or 3.7% with double-digit growth in the public funds sector. Public fund account checking balances grew by $249 million or 13% due to new municipal depositors who represent relationship-driven clients. We continue to experience an increase in the number of checking accounts year-over-year, and average checking account balances remain higher than pre-pandemic levels."
4

lakelandlogo.jpg
Asset Quality

The company recorded a provision for credit losses of $1.7 million in the second quarter of 2026, compared to $3.0 million in the second quarter of 2025 and $2.0 million for the linked first quarter of 2026.

The allowance for credit loss reserve to total loans was 1.27% at June 30, 2026, unchanged from 1.27% at June 30, 2025 and increased from 1.26% at March 31, 2026. The company recorded net charge offs of $24,000 in the second quarter of 2026, compared to net charge offs of $28.9 million in the second quarter of 2025 and $2.1 million during the linked first quarter of 2026. Net charge offs during the second quarter of 2025 were driven by the partial charge off of a previously disclosed nonperforming credit. Annualized net charge offs to average loans were 0.00% for the second quarter of 2026, compared to 2.22% for the second quarter of 2025 and 0.16% for the linked first quarter of 2026.

Nonperforming assets decreased by $11.1 million, or 36%, to $20.0 million as of June 30, 2026, versus $31.1 million as of June 30, 2025. The decrease to nonperforming assets was primarily driven by the resolution of the previously disclosed nonperforming credit during the third quarter of 2025. On a linked quarter basis, nonperforming assets decreased by $938,000, or 4%. The ratio of nonperforming assets to total assets at June 30, 2026, decreased to 0.28% from 0.45% at June 30, 2025, and 0.30% when compared to March 31, 2026.

Total individually analyzed and watch list loans increased by $6.4 million, or 3%, to $198.0 million as of June 30, 2026, versus $191.6 million as of June 30, 2025. On a linked quarter basis, total individually analyzed and watch list loans increased by $15.7 million, or 9%, from $182.3 million at March 31, 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 $13.2 million. Migration within the watch list was driven by three unrelated relationships, with an aggregate balance of approximately $24.7 million, that were moved from the pooled watch list to individually analyzed status during the second quarter of 2026. Watch list loans as a percentage of total loans were 3.55% at June 30, 2026, a 12 basis point decrease compared to 3.67% at June 30, 2025, and a 22 basis point increase from 3.33% at March 31, 2026.

"Our loan portfolio is well-diversified, and our loan portfolio continues to demonstrate stable performance trends," commented Findlay. "Our borrowers continue to navigate the changing economic landscape well and our mid-year loan portfolio reviews did not identify significant credit concerns."

Investment Portfolio Overview

Total investment securities were $1.17 billion at June 30, 2026, reflecting an increase of $39.8 million, or 4%, as compared to $1.13 billion at June 30, 2025. Investment securities represented 16% of total assets as of June 30, 2026. The company anticipates receiving principal and interest cash flows of approximately $51.9 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 5.8 years at June 30, 2026, compared to 5.9 years at June 30, 2025, and 6.0 years at March 31, 2026.

Noninterest Income

The company’s noninterest income increased $1.1 million, or 9%, to $12.6 million for the second quarter of 2026, compared to $11.5 million for the second quarter of 2025. Wealth advisory fees increased $350,000, or 13%, driven by continued growth in customers and assets under management. Bank owned life insurance income increased $577,000, or 55%, from improved market performance of the bank's variable owned life insurance policies which reflect returns in the equity markets. Other income increased by $127,000, or 32%, primarily from increased limited partnership investment income.

Noninterest income for the second quarter of 2026 decreased by $361,000, or 3%, on a linked quarter basis from $12.9 million during the first quarter of 2026. Bank owned life insurance increased $641,000, or 66%, from improved variable owned life insurance policy market performance and increased general account income, which is impacted during the first quarter from annual insurance costs that are charged against certain policies. Conversely, interest rate swap fee income decreased $701,000. Other income decreased by $205,000, or 28%, which was impacted during the first quarter of 2026 from the recognition of death benefit income from bank owned life insurance policies. Loan and service fee income decreased $147,000, or 5%, from reduced commercial loan fees.

5

lakelandlogo.jpg
Findlay noted, "We are pleased to report nearly double-digit growth in quarterly noninterest income on a year-over-year basis and 14% growth in noninterest income for the six months ended June 30, 2026 as compared to the same period in 2025. Our fee-based business is growing with 10% growth in the Wealth Advisory Group and 6% improvement in loan and service fees. Interest rate swap fees have also contributed nicely to noninterest revenue growth for the first six months of 2026 together with an increase in mortgage banking income."

Noninterest income increased by $3.1 million, or 14%, to $25.5 million for the six months ended June 30, 2026, compared to $22.4 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 $546,000, or 10%, loan and service fees improving by $377,000, or 6%, service charges on deposit accounts improving by $151,000, or 3%, and investment brokerage fees improving by $33,000, or 3%. Additionally, bank owned life insurance increased $1.2 million, or 90.4%, from improved market performance from variable bank owned life insurance policies and incremental income from general account policies purchased in 2025. Increased transaction volume drove increases to interest rate swap fee income of $681,000 and mortgage banking income of $136,000.

Noninterest Expense

Noninterest expense increased $4.0 million, or 13%, to $34.5 million for the second quarter of 2026, compared to $30.4 million during the second quarter of 2025. Salaries and employee benefits expense increased by $3.4 million, or 20%, primarily the result of increased salaries and wages, performance-based incentive compensation accruals, and benefits expenses. Deferred variable compensation expense, which is offset by noninterest income recorded from the performance of the company's variable bank owned life insurance policies, contributed further to the increase. Net occupancy expense increased $220,000, or 13%, from the company's continued expansion and reinvestment into its physical branch and operational infrastructure. Data processing fees and supplies increased $222,000, or 5%, from continued investment in customer-facing and operational technology solutions, including artificial intelligence capabilities. Additionally, corporate and business development expense increased $82,000, or 7%, professional fees increased $79,000, or 5%, and FDIC insurance and other regulatory fees increased $42,000, or 5%.

On a linked quarter basis, noninterest expense decreased by $694,000, or 2%, from $35.2 million during the first quarter of 2026. Other expense decreased $421,000, or 15%, primarily from semi-annual board of directors share grants that occurred in the linked first quarter. Corporate and business development expense decreased by $251,000, or 17%, from a reduction in seasonal advertising expense. Net occupancy expense decreased by $137,000, or 7%, driven by reduced seasonal occupancy expenses, and professional fees decreased $152,000, or 8%, from reduced accruals for legal and accounting fees. Offsetting these decreases was an increase to salaries and employee benefits expense of $199,000, or 1%, and data processing fees and supplies expense of $115,000, or 3%.

Noninterest expense increased by $6.4 million, or 10%, for the six months ended June 30, 2026, to $69.6 million compared to $63.2 million for the six months ended June 30, 2025. Salaries and employee benefits expense increased $5.8 million, or 17%, primarily due to increased salaries and wages of $2.0 million, performance-based incentive compensation accruals of $2.3 million, variable deferred compensation expense of $799,000, and health insurance expense of $677,000. Net occupancy expense increased $344,000, or 9%. Data processing fees and supplies expense increased $216,000, or 3%, from continued investment in customer-facing and operational technology solutions. Corporate and business development expense increased $169,000, or 7%, from increased advertising and corporate development expenses. FDIC insurance and other regulatory fees increased $115,000, or 7%, from increased FDIC insurance premium accruals. Offsetting these increases was a decrease in professional fees of $364,000, or 9%, primarily driven by reduced technology implementation fees.

The company’s efficiency ratio was 48.6% for the second quarter of 2026, compared to 45.9% for the second quarter of 2025 and 50.4% for the linked first quarter of 2026. The company's efficiency ratio was 49.5% for the six months ended June 30, 2026, compared to 48.6% for the comparable period in 2025.

"We are pleased to report that strong revenue growth during the second quarter of 2026 improved our efficiency ratio on a linked quarter basis. Our largest investments in the business continue to be focused on revenue generating human capital, strategic branch development in our Lake City Bank footprint and investments in technology solutions," noted Findlay. "In addition to two new branch locations under development in Indianapolis currently, we have future plans for increased presence in our South Bend and Fort Wayne markets."
6

lakelandlogo.jpg
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; and changes in borrowers’ credit risks and payment behaviors, as well as those identified in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are incorporated herein by reference.
7

lakelandlogo.jpg
LAKELAND FINANCIAL CORPORATION
SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS
 Three Months EndedSix Months Ended
(unaudited – dollars in thousands, except per share data)June 30,March 31,June 30,June 30,June 30,
END OF PERIOD BALANCES20262026202520262025
Assets$7,242,959 $7,083,680 $6,964,301 $7,242,959 $6,964,301 
Investments1,169,188 1,160,608 1,129,346 1,169,188 1,129,346 
Loans5,579,625 5,473,358 5,226,827 5,579,625 5,226,827 
Allowance for Credit Losses70,598 68,914 66,552 70,598 66,552 
Deposits6,329,568 6,190,260 6,176,833 6,329,568 6,176,833 
Brokered Deposits299,155 375,581 150,416 299,155 150,416 
Core Deposits (1)6,030,413 5,814,679 6,026,417 6,030,413 6,026,417 
Total Equity773,374 748,993 709,987 773,374 709,987 
Goodwill Net of Deferred Tax Assets3,803 3,803 3,803 3,803 3,803 
Tangible Common Equity (2)769,571 745,190 706,184 769,571 706,184 
Adjusted Tangible Common
Equity (2)		893,530 880,296 866,758 893,530 866,758 
AVERAGE BALANCES
Total Assets$7,190,663 $7,082,213 $6,904,681 $7,136,737 $6,834,217 
Earning Assets6,832,702 6,729,394 6,570,607 6,781,334 6,501,092 
Investments1,161,807 1,190,278 1,125,597 1,175,964 1,130,970 
Loans5,531,344 5,440,876 5,229,646 5,486,359 5,207,903 
Total Deposits6,312,674 6,055,539 6,096,504 6,184,817 5,986,227 
Interest Bearing Deposits5,084,953 4,821,000 4,852,446 4,953,706 4,735,066 
Interest Bearing Liabilities5,133,439 5,004,623 4,886,943 5,069,387 4,802,175 
Total Equity760,533 772,946 696,976 766,706 696,517 
INCOME STATEMENT DATA
Net Interest Income$58,301 $56,773 $54,876 $115,074 $107,751 
Net Interest Income-Fully Tax Equivalent59,404 57,878 55,986 117,282 109,970 
Provision for Credit Losses1,708 2,000 3,000 3,708 9,800 
Noninterest Income12,572 12,933 11,486 25,505 22,414 
Noninterest Expense34,457 35,151 30,432 69,608 63,195 
Net Income28,440 26,478 26,966 54,918 47,051 
Pretax Pre-Provision Earnings (2)36,416 34,555 35,930 70,971 66,970 
PER SHARE DATA
Basic Net Income Per Common Share$1.14 $1.04 $1.05 $2.18 $1.83 
Diluted Net Income Per Common Share1.13 1.04 1.04 2.17 1.82 
Cash Dividends Declared Per Common Share0.52 0.52 0.50 1.04 1.00 
Dividend Payout46.02 %50.00 %48.08 %47.93 %54.95 %
Book Value Per Common Share (equity per share issued)$30.90 $29.84 $27.63 $30.90 $27.63 
Tangible Book Value Per Common Share (2)30.75 29.69 27.48 30.75 27.48 
Market Value – High$63.03 $63.80 $62.39 $63.80 $71.77 
Market Value – Low56.56 54.36 50.00 54.36 50.00 
Basic Weighted Average Common Shares Outstanding25,058,539 25,344,757 25,707,233 25,201,252 25,711,004 
Three Months EndedSix Months Ended
(unaudited – dollars in thousands, except per share data)June 30,March 31,June 30,June 30,June 30,
PER SHARE DATA (continued)20262026202520262025
Diluted Weighted Average Common Shares Outstanding25,231,590 25,493,920 25,776,205 25,361,745 25,782,817 
KEY RATIOS
Return on Average Assets1.59 %1.52 %1.57 %1.55 %1.39 %
Return on Average Total Equity15.00 13.89 15.52 14.44 13.62 
Average Equity to Average Assets10.58 10.91 10.09 10.74 10.19 
Net Interest Margin3.49 3.49 3.42 3.49 3.41 
Efficiency (Noninterest Expense/Net Interest Income
plus Noninterest Income)
48.62 50.43 45.86 49.51 48.55 
Loans to Deposits88.15 88.42 84.62 88.15 84.62 
Investment Securities to Total Assets16.14 16.38 16.22 16.14 16.22 
Tier 1 Leverage (3)12.17 12.20 12.21 12.17 12.21 
Tier 1 Risk-Based Capital (3)14.47 14.45 14.73 14.47 14.73 
Common Equity Tier 1 (CET1) (3)14.47 14.45 14.73 14.47 14.73 
Total Capital (3)15.61 15.58 15.86 15.61 15.86 
Tangible Capital (2)10.63 10.53 10.15 10.63 10.15 
Adjusted Tangible Capital (2)12.14 12.20 12.17 12.14 12.17 
ASSET QUALITY
Loans Past Due 30 - 89 Days$3,026 $7,416 $1,648 $3,026 $1,648 
Loans Past Due 90 Days or More6 7 7 6 7 
Nonaccrual Loans19,946 20,909 30,627 19,946 30,627 
Nonperforming Loans19,952 20,916 30,634 19,952 30,634 
Other Real Estate Owned0 0 284 0 284 
Other Nonperforming Assets48 22 183 48 183 
Total Nonperforming Assets20,000 20,938 31,101 20,000 31,101 
Individually Analyzed Loans66,945 43,160 52,069 66,945 52,069 
Non-Individually Analyzed Watch List Loans131,070 139,117 139,548 131,070 139,548 
Total Individually Analyzed and Watch List Loans198,015 182,277 191,617 198,015 191,617 
Gross Charge Offs431 2,196 29,111 2,627 29,619 
Recoveries407 115 230 522 411 
Net Charge Offs/(Recoveries)24 2,081 28,881 2,105 29,208 
Net Charge Offs/(Recoveries) to Average Loans0.00 %0.16 %2.22 %0.08 %1.13 %
Credit Loss Reserve to Loans1.27 1.26 1.27 1.27 1.27 
Credit Loss Reserve to Nonperforming Loans353.84 329.48 217.25 353.84 217.25 
Nonperforming Loans to Loans0.36 0.38 0.59 0.36 0.59 
Nonperforming Assets to Assets0.28 0.30 0.45 0.28 0.45 
Total Individually Analyzed and Watch List Loans to Total Loans3.55 3.33 3.67 3.55 3.67 
OTHER DATA
Full Time Equivalent Employees695 674 675 695 675 
Offices55 55 54 55 54 
(1)Core deposits equals deposits less brokered deposits.
(2)Non-GAAP financial measure - see "Reconciliation of Non-GAAP Financial Measures".
(3)Capital ratios for June 30, 2026 are preliminary until the FR Y-9C is filed.
8

lakelandlogo.jpg
CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share data)
June 30,
2026		December 31,
2025
(unaudited)
ASSETS
Cash and due from banks$69,864 $57,139 
Short-term investments124,262 84,179 
Total cash and cash equivalents194,126 141,318 
Securities available-for-sale, at fair value1,035,163 1,052,062 
Securities held-to-maturity, at amortized cost (fair value of $119,433 and $117,510, respectively)
134,025 133,208 
Real estate mortgage loans held-for-sale3,630 2,707 
Loans, net of allowance for credit losses of $70,598 and $68,995
5,509,027 5,306,354 
Land, premises and equipment, net72,504 65,542 
Bank owned life insurance132,366 129,978 
Federal Reserve and Federal Home Loan Bank stock21,420 21,420 
Accrued interest receivable29,514 28,997 
Goodwill4,970 4,970 
Other assets106,214 103,466 
Total assets$7,242,959 $6,990,022 
LIABILITIES
Noninterest bearing deposits$1,292,033 $1,221,327 
Interest bearing deposits5,037,535 4,752,023 
Total deposits6,329,568 5,973,350 
Borrowings - Federal Home Loan Bank advances:
Short-term advance70,000 170,000 
Long-term advance1,200 1,200 
Other borrowings0 13,000 
Total borrowings71,200 184,200 
Accrued interest payable8,961 8,868 
Other liabilities59,856 61,112 
Total liabilities6,469,585 6,227,530 
STOCKHOLDERS’ EQUITY
Common stock: 90,000,000 shares authorized, no par value
26,063,576 shares issued and 24,858,875 outstanding as of June 30, 2026
26,023,644 shares issued and 25,219,634 outstanding as of December 31, 2025
140,020 136,965 
Retained earnings817,002 788,345 
Accumulated other comprehensive income (loss)(124,463)(127,137)
Treasury stock at cost (1,204,701 shares as of June 30, 2026, 804,010 shares as of December 31, 2025)
(59,274)(35,770)
Total stockholders’ equity773,285 762,403 
Noncontrolling interest89 89 
Total equity773,374 762,492 
Total liabilities and equity$7,242,959 $6,990,022 
9

lakelandlogo.jpg
CONSOLIDATED STATEMENTS OF INCOME (unaudited - in thousands, except share and per share data)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
NET INTEREST INCOME
Interest and fees on loans
Taxable$85,994 $84,418 $169,105 $166,158 
Tax exempt293 291 572 583 
Interest and dividends on securities
Taxable3,764 3,457 7,605 6,846 
Tax exempt3,883 3,917 7,790 7,827 
Other interest income1,214 2,302 2,063 3,426 
Total interest income95,148 94,385 187,135 184,840 
Interest on deposits36,379 39,111 69,810 75,569 
Interest on short-term borrowings468 398 2,251 1,520 
Total interest expense36,847 39,509 72,061 77,089 
NET INTEREST INCOME58,301 54,876 115,074 107,751 
Provision for credit losses
1,708 3,000 3,708 9,800 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES56,593 51,876 111,366 97,951 
NONINTEREST INCOME
Wealth advisory fees3,017 2,667 6,080 5,534 
Investment brokerage fees511 550 1,035 1,002 
Service charges on deposit accounts2,878 2,827 5,752 5,601 
Loan and service fees3,060 3,006 6,267 5,890 
Merchant and interchange fee income
836 854 1,613 1,676 
Bank owned life insurance income1,617 1,040 2,593 1,362 
Interest rate swap fee income0 20 701 20 
Mortgage banking income128 124 209 73 
Other income525 398 1,255 1,256 
Total noninterest income12,572 11,486 25,505 22,414 
NONINTEREST EXPENSE
Salaries and employee benefits20,494 17,096 40,789 34,998 
Net occupancy expense1,967 1,747 4,071 3,727 
Equipment costs1,409 1,437 2,873 2,819 
Data processing fees and supplies4,374 4,152 8,633 8,417 
Corporate and business development1,242 1,160 2,735 2,566 
FDIC insurance and other regulatory fees881 839 1,754 1,639 
Professional fees1,785 1,706 3,722 4,086 
Other expense2,305 2,295 5,031 4,943 
Total noninterest expense34,457 30,432 69,608 63,195 
INCOME BEFORE INCOME TAX EXPENSE34,708 32,930 67,263 57,170 
Income tax expense6,268 5,964 12,345 10,119 
NET INCOME$28,440 $26,966 $54,918 $47,051 
BASIC WEIGHTED AVERAGE COMMON SHARES25,058,539 25,707,233 25,201,252 25,711,004 
BASIC EARNINGS PER COMMON SHARE$1.14 $1.05 $2.18 $1.83 
DILUTED WEIGHTED AVERAGE COMMON SHARES25,231,590 25,776,205 25,361,745 25,782,817 
DILUTED EARNINGS PER COMMON SHARE$1.13 $1.04 $2.17 $1.82 
10

lakelandlogo.jpg
LAKELAND FINANCIAL CORPORATION
LOAN DETAIL
(unaudited, in thousands)
June 30,
2026		March 31,
2026		June 30,
2025
Commercial and industrial loans:
Working capital lines of credit loans$815,493 14.6 %$742,655 13.6 %$717,484 13.7 %
Non-working capital loans828,878 14.9 836,121 15.3 776,278 14.9 
Total commercial and industrial loans1,644,371 29.5 1,578,776 28.9 1,493,762 28.6 
Commercial real estate and multi-family residential loans:
Construction and land development loans439,987 7.9 509,143 9.3 552,998 10.6 
Owner occupied loans804,995 14.4 807,813 14.8 780,285 14.9 
Nonowner occupied loans937,493 16.8 960,395 17.5 869,196 16.6 
Multifamily loans578,151 10.4 462,984 8.5 477,910 9.1 
Total commercial real estate and multi-family residential loans2,760,626 49.5 2,740,335 50.1 2,680,389 51.2 
Agri-business and agricultural loans:
Loans secured by farmland180,871 3.2 177,823 3.2 150,934 2.9 
Loans for agricultural production158,522 2.8 196,258 3.6 188,501 3.6 
Total agri-business and agricultural loans339,393 6.0 374,081 6.8 339,435 6.5 
Other commercial loans121,060 2.2 95,764 1.7 95,442 1.8 
Total commercial loans4,865,450 87.2 4,788,956 87.5 4,609,028 88.1 
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans302,799 5.4 292,724 5.3 273,287 5.2 
Open end and junior lien loans283,099 5.1 263,600 4.8 226,114 4.4 
Residential construction and land development loans12,904 0.2 14,429 0.3 16,667 0.3 
Total consumer 1-4 family mortgage loans598,802 10.7 570,753 10.4 516,068 9.9 
Other consumer loans117,953 2.1 116,158 2.1 103,880 2.0 
Total consumer loans716,755 12.8 686,911 12.5 619,948 11.9 
Subtotal5,582,205 100.0 %5,475,867 100.0 %5,228,976 100.0 %
Less: Allowance for credit losses(70,598)(68,914)(66,552)
Net deferred loan fees(2,580)(2,509)(2,149)
Loans, net$5,509,027 $5,404,444 $5,160,275 
 

LAKELAND FINANCIAL CORPORATION
DEPOSITS AND BORROWINGS
(unaudited, in thousands)
 
June 30,
2026		March 31,
2026		June 30,
2025
Noninterest bearing demand deposits$1,292,033 $1,301,547 $1,261,740 
Savings and transaction accounts:  
Savings deposits281,901 291,355 283,976 
Interest bearing demand deposits3,828,259 3,649,409 3,841,703 
Time deposits:  
Deposits of $100,000 or more727,412 746,168 584,165 
Other time deposits199,963 201,781 205,249 
Total deposits$6,329,568 $6,190,260 $6,176,833 
FHLB advances and other borrowings71,200 68,200 6,200 
Total funding sources$6,400,768 $6,258,460 $6,183,033 
11

lakelandlogo.jpg
LAKELAND FINANCIAL CORPORATION
AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS
(UNAUDITED) 
Three Months Ended June 30, 2026Three Months Ended March 31, 2026Three Months Ended June 30, 2025
(fully tax equivalent basis, dollars in thousands)Average BalanceInterest IncomeYield (1)/
Rate		Average BalanceInterest IncomeYield (1)/
Rate		Average BalanceInterest IncomeYield (1)/
Rate
Earning Assets
Loans:
Taxable (2)(3)$5,507,100 $85,994 6.26 %$5,417,380 $83,111 6.22 %$5,204,006 $84,418 6.51 %
Tax exempt (1)24,244 363 6.01 23,496 346 5.98 25,640 359 5.62 
Investments: (1)
Securities1,161,807 8,680 3.00 1,190,278 8,786 2.99 1,125,597 8,416 3.00 
Short-term investments3,567 28 3.15 2,701 21 3.15 2,832 28 3.97 
Interest bearing deposits135,984 1,186 3.50 95,539 828 3.51 212,532 2,274 4.29 
Total earning assets$6,832,702 $96,251 5.65 %$6,729,394 $93,092 5.61 %$6,570,607 $95,495 5.83 %
Less:  Allowance for credit losses(69,959)(68,944)(93,644)
Nonearning Assets
Cash and due from banks64,197 67,282 66,713 
Premises and equipment69,499 65,997 61,280 
Other nonearning assets294,224 288,484 299,725 
Total assets$7,190,663 $7,082,213 $6,904,681 
Interest Bearing Liabilities
Savings deposits$287,520 $41 0.06 %$287,643 $41 0.06 %$285,944 $43 0.06 %
Interest bearing checking accounts3,867,392 28,184 2.92 3,686,666 26,110 2.87 3,767,903 31,499 3.35 
Time deposits:
In denominations under $100,000201,696 1,576 3.13 201,974 1,548 3.11 208,770 1,745 3.35 
In denominations over $100,000728,345 6,578 3.62 644,717 5,732 3.61 589,829 5,824 3.96 
Short-term borrowings47,286 468 3.97 182,423 1,783 3.96 33,297 398 4.79 
Long-term borrowings1,200 0 0.00 1,200 0 0.00 1,200 0 0.00 
Total interest bearing liabilities$5,133,439 $36,847 2.88 %$5,004,623 $35,214 2.85 %$4,886,943 $39,509 3.24 %
Noninterest Bearing Liabilities
Demand deposits1,227,721 1,234,539 1,244,058 
Other liabilities68,970 70,105 76,704 
Stockholders' Equity760,533 772,946 696,976 
Total liabilities and stockholders' equity$7,190,663 $7,082,213 $6,904,681 
Interest Margin Recap
Interest income/average earning assets96,251 5.65 %93,092 5.61 %95,495 5.83 %
Interest expense/average earning assets36,847 2.16 35,214 2.12 39,509 2.41 
Net interest income and margin$59,404 3.49 %$57,878 3.49 %$55,986 3.42 %
 
(1)Tax exempt income was converted to a fully taxable equivalent basis at a 21 percent tax rate. The tax equivalent rate for tax exempt loans and tax-exempt securities acquired after January 1, 1983, included the Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA") adjustment applicable to nondeductible interest expenses. Taxable equivalent basis adjustments were $1.10 million in the three-month periods ended June 30, 2026, and $1.11 million in the three-month periods ended March 31, 2026, and June 30, 2025.
(2)Loan fees, which are immaterial in relation to total taxable loan interest income for the three-month periods ended June 30, 2026, March 31, 2026, and June 30, 2025, are included as taxable loan interest income.
(3)Nonaccrual loans are included in the average balance of taxable loans.
12

lakelandlogo.jpg
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 EndedSix Months Ended
June 30, 2026March 31, 2026June 30, 2025June 30, 2026June 30, 2025
Total Equity$773,374 $748,993 $709,987 $773,374 $709,987 
Less: Goodwill(4,970)(4,970)(4,970)(4,970)(4,970)
Plus: DTA Related to Goodwill1,167 1,167 1,167 1,167 1,167 
Tangible Common Equity769,571 745,190 706,184 769,571 706,184 
Market Value Adjustment in AOCI123,959 135,106 160,574 123,959 160,574 
Adjusted Tangible Common Equity893,530 880,296 866,758 893,530 866,758 
Assets$7,242,959 $7,083,680 $6,964,301 $7,242,959 $6,964,301 
Less: Goodwill(4,970)(4,970)(4,970)(4,970)(4,970)
Plus: DTA Related to Goodwill1,167 1,167 1,167 1,167 1,167 
Tangible Assets7,239,156 7,079,877 6,960,498 7,239,156 6,960,498 
Market Value Adjustment in AOCI123,959 135,106 160,574 123,959 160,574 
Adjusted Tangible Assets7,363,115 7,214,983 7,121,072 7,363,115 7,121,072 
Ending Common Shares Issued25,028,859 25,098,219 25,697,093 25,028,859 25,697,093 
Tangible Book Value Per Common Share$30.75 $29.69 $27.48 $30.75 $27.48 
Tangible Common Equity/Tangible Assets10.63 %10.53 %10.15 %10.63 %10.15 %
Adjusted Tangible Common Equity/Adjusted Tangible Assets12.14 %12.20 %12.17 %12.14 %12.17 %
Net Interest Income$58,301 $56,773 $54,876 $115,074 $107,751 
Plus:  Noninterest Income12,572 12,933 11,486 25,505 22,414 
Minus:  Noninterest Expense(34,457)(35,151)(30,432)(69,608)(63,195)
Pretax Pre-Provision Earnings$36,416 $34,555 $35,930 $70,971 $66,970 
13

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

4 documents

Press Releases

Other Documents