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  4. Lakeland Financial Reports Annual Net Income of $93.5 million, Organic Average Loan Growth of 5% and Average Deposit Growth of 4%

Lakeland Financial Reports Annual Net Income of $93.5 million, Organic Average Loan Growth of 5% and Average Deposit Growth of 4%

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Lakeland Financial reported annual net income of $93.5 million for 2024, slightly down from $93.8 million in 2023. Q4 2024 net income was $24.2 million, an 18% decrease from Q4 2023, with diluted EPS of $0.94, down 19% year-over-year.

The company demonstrated solid growth with average loans increasing 5% to $5.04 billion and core deposits growing 5% to $5.9 billion. Net interest margin improved to 3.25% in Q4 2024, up from 3.16% in Q3 2024. The total capital ratio strengthened to 15.90%, well above the 10% regulatory requirement.

Notable Q4 metrics include tangible book value per share growth of 5% to $26.47, return on average equity of 13.87%, and return on average assets of 1.42%. The board approved a Q4 cash dividend of $0.50 per share, representing a 4% increase from Q4 2023.

Lakeland Financial ha riportato un reddito netto annuo di 93,5 milioni di dollari per il 2024, leggermente in calo rispetto ai 93,8 milioni di dollari del 2023. Il reddito netto del quarto trimestre 2024 è stato di 24,2 milioni di dollari, con una diminuzione del 18% rispetto al quarto trimestre 2023, e un utile per azione diluito di 0,94 dollari, in calo del 19% rispetto all’anno precedente.

La società ha dimostrato una solida crescita con prestiti medi aumentati del 5% a 5,04 miliardi di dollari e depositi core cresciuti del 5% a 5,9 miliardi di dollari. Il margine di interesse netto è migliorato al 3,25% nel quarto trimestre 2024, rispetto al 3,16% del terzo trimestre 2024. Il rapporto di capitale totale è aumentato al 15,90%, ben al di sopra del requisito normativo del 10%.

I principali indicatori del quarto trimestre includono la crescita del valore contabile tangibile per azione del 5% a 26,47 dollari, un ritorno sul capitale medio del 13,87% e un ritorno sugli attivi medi dell'1,42%. Il consiglio di amministrazione ha approvato un dividendo in contante per il quarto trimestre di 0,50 dollari per azione, rappresentando un aumento del 4% rispetto al quarto trimestre 2023.

Lakeland Financial reportó un ingreso neto anual de $93.5 millones para 2024, ligeramente inferior a los $93.8 millones en 2023. El ingreso neto del cuarto trimestre de 2024 fue de $24.2 millones, una disminución del 18% en comparación con el cuarto trimestre de 2023, con un EPS diluido de $0.94, disminuyendo un 19% interanual.

La compañía mostró un sólido crecimiento, con préstamos promedio aumentando un 5% a $5.04 mil millones y depósitos centrales creciendo un 5% a $5.9 mil millones. El margen de interés neto mejoró al 3.25% en el cuarto trimestre de 2024, en comparación con el 3.16% en el tercer trimestre de 2024. El ratio de capital total se fortaleció al 15.90%, muy por encima del requisito regulatorio del 10%.

Las métricas notables del cuarto trimestre incluyen un crecimiento del valor contable tangible por acción del 5% a $26.47, un retorno sobre el capital promedio del 13.87%, y un retorno sobre activos promedios del 1.42%. La junta aprobó un dividendo en efectivo del cuarto trimestre de $0.50 por acción, que representa un aumento del 4% en comparación con el cuarto trimestre de 2023.

레이크랜드 파이낸셜은 2024년 연간 순이익이 9,350만 달러에 달했다고 보고했으며, 2023년의 9,380만 달러에서 약간 감소했습니다. 2024년 4분기 순이익은 2,420만 달러로, 2023년 4분기보다 18% 감소했으며, 희석 주당순이익(EPS)은 0.94달러로 전년 대비 19% 감소했습니다.

회사는 평균 대출이 5% 증가하여 50억 4천만 달러가 되었고, 주요 예금도 5% 증가하여 59억 달러가 되는 견고한 성장을 보여주었습니다. 순이자 마진은 2024년 4분기 3.25%로 개선되어 2024년 3분기 3.16%에서 상승했습니다. 총 자본 비율은 15.90%로 강화되어 10%의 규제 요구 사항을 훨씬 초과했습니다.

주목할만한 4분기 지표로는 주당 실질 장부 가치가 5% 성장하여 26.47달러에 도달했고, 평균 자기자본 수익률은 13.87%, 평균 자산 수익률은 1.42%였습니다. 이사회는 4분기 현금 배당금을 주당 0.50달러로 승인했으며, 이는 2023년 4분기보다 4% 증가한 금액입니다.

Lakeland Financial a déclaré un revenu net annuel de 93,5 millions de dollars pour 2024, légèrement en baisse par rapport à 93,8 millions de dollars en 2023. Le revenu net du quatrième trimestre 2024 s'élevait à 24,2 millions de dollars, soit une baisse de 18 % par rapport au quatrième trimestre 2023, avec un BPA dilué de 0,94 dollar, en baisse de 19 % d'une année sur l'autre.

L'entreprise a montré une croissance solide, avec des prêts moyens augmentant de 5 % pour atteindre 5,04 milliards de dollars et des dépôts de base en hausse de 5 % pour atteindre 5,9 milliards de dollars. La marge d'intérêt nette a augmenté à 3,25 % au quatrième trimestre 2024, contre 3,16 % au troisième trimestre 2024. Le ratio de capital total s'est renforcé à 15,90 %, bien au-dessus de l'exigence réglementaire de 10 %.

Les indicateurs notables pour le quatrième trimestre comprennent une croissance de la valeur comptable tangible par action de 5 % pour atteindre 26,47 dollars, un retour sur capital moyen de 13,87 % et un retour sur actifs moyens de 1,42 %. Le conseil d'administration a approuvé un dividende en espèces de 0,50 dollar par action pour le quatrième trimestre, représentant une augmentation de 4 % par rapport au quatrième trimestre 2023.

Lakeland Financial berichtete für das Jahr 2024 von einem Nettogewinn von 93,5 Millionen Dollar, was einen leichten Rückgang gegenüber 93,8 Millionen Dollar im Jahr 2023 darstellt. Der Nettogewinn im vierten Quartal 2024 betrug 24,2 Millionen Dollar, ein Rückgang von 18% im Vergleich zum vierten Quartal 2023, bei einem verwässerten EPS von 0,94 Dollar, was einem Rückgang von 19% im Jahresvergleich entspricht.

Das Unternehmen zeigte ein solides Wachstum, wobei die durchschnittlichen Kredite um 5% auf 5,04 Milliarden Dollar und die Kern-Einlagen um 5% auf 5,9 Milliarden Dollar gestiegen sind. Die Nettomarge verbesserte sich im vierten Quartal 2024 auf 3,25%, im Vergleich zu 3,16% im dritten Quartal 2024. Das Gesamtkapitalverhältnis stärkte sich auf 15,90%, was deutlich über der regulatorischen Anforderung von 10% liegt.

Bemerkenswerte Kennzahlen für das vierte Quartal sind das Wachstum des tangiblen Buchwerts pro Aktie um 5% auf 26,47 Dollar, die Rendite des durchschnittlichen Eigenkapitals von 13,87% und die Rendite des durchschnittlichen Vermögens von 1,42%. Der Vorstand genehmigte eine Bardividende von 0,50 Dollar pro Aktie für das vierte Quartal, was einer Erhöhung von 4% gegenüber dem vierten Quartal 2023 entspricht.

Positive
  • Core deposits grew 5% to $5.9 billion
  • Average loan growth of 5% to $5.04 billion
  • Net interest margin improved to 3.25% from 3.16% quarter-over-quarter
  • Total capital ratio strengthened to 15.90%, well above regulatory requirements
  • Q4 dividend increased 4% to $0.50 per share
Negative
  • Annual net income decreased to $93.5 million from $93.8 million
  • Q4 net income declined 18% year-over-year to $24.2 million
  • Q4 diluted EPS decreased 19% year-over-year to $0.94
  • Watch list loans increased to 4.13% from 3.72% year-over-year

Insights

Lakeland Financial's Q4 2024 results reveal a strategically managed balance sheet transition amid changing interest rates. The 4% increase in organic loans and 5% growth in core deposits demonstrate robust fundamental growth, though net income declined 18% YoY to $24.2 million.

Three critical developments warrant attention:

  • The deposit franchise shows remarkable stability with core deposits at 99% of total funding, while public funds increased 16% YoY to $1.81 billion. This shift in deposit mix, though potentially more rate-sensitive, provides a stable funding base.
  • Asset quality metrics require monitoring, with watch list loans increasing to 4.13% of total loans from 3.72% YoY. However, the 21% quarterly reduction in individually analyzed and watch list loans suggests proactive risk management.
  • Capital management remains robust with the total risk-based capital ratio improving to 15.90%, significantly above the well-capitalized threshold of 10%. This provides ample cushion for continued growth and dividend increases.

The bank's deposit beta of 31% versus loan beta of 25% during the current rate-easing cycle indicates effective margin management, contributing to the 9bps sequential NIM expansion. This positions LKFN favorably for the anticipated rate environment in 2025, particularly given their 2% exposure to commercial office space and diverse loan portfolio.

WARSAW, Ind., Jan. 24, 2025 (GLOBE NEWSWIRE) -- Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported net income of $93.5 million for the year ended December 31, 2024, versus $93.8 million for the year ended December 31, 2023. Diluted earnings per share were $3.63 for the twelve months ended December 31, 2024, versus $3.65 for 2023.

Net income was $24.2 million for the three months ended December 31, 2024, a decrease of $5.4 million, or 18%, compared with net income of $29.6 million for the three months ended December 31, 2023. Diluted earnings per share of $0.94 for the fourth quarter of 2024 decreased by 19% from $1.16 for the fourth quarter of 2023. On a linked quarter basis, net income increased 4%, or $852,000, from third quarter 2024 net income of $23.3 million. Linked quarter diluted earnings per share improved by 3% from $0.91 for the third quarter of 2024.

Pretax pre-provision earnings, which is a non-GAAP measure, were $128.4 million for the twelve months ended December 31, 2024, an increase of $12.3 million, or 11%, compared to $116.2 million for the twelve months ended December 31, 2023. Pretax pre-provision earnings were $32.9 million for the three months ended December 31, 2024, a decrease of $3.4 million, or 9%, compared to $36.4 million for the three months ended December 31, 2023. Pretax pre-provision earnings increased by $2.1 million, or 7%, compared to $30.8 million on a linked quarter basis.

“2024 continued a long and consistent trend of organic growth in our balance sheet. We successfully expanded both our loan and deposit franchises during the year,” stated David M. Findlay, Chairman and CEO. “We are particularly pleased with the 9-basis point expansion of our net interest margin on a linked quarter basis as we effectively managed the balance sheet throughout the year.”

Quarterly Financial Performance

Fourth Quarter 2024 versus Fourth Quarter 2023 highlights:

  • Tangible book value per share grew by $1.25, or 5%, to $26.47
  • Total risk-based capital ratio improved to 15.90%, compared to 15.47%
  • Tangible capital ratio improved to 10.19%, compared to 9.91%
  • Average loans grew by $206.9 million, or 4%, to $5.09 billion
  • Core deposit growth of $274.3 million, or 5%, to $5.9 billion
  • Average equity increased by $121.1 million, or 21%
  • Return on average equity of 13.87%, compared to 20.52%
  • Return on average assets of 1.42%, compared to 1.80%
  • Net interest margin improved to 3.25% versus 3.23%
  • Net interest income increased by $3.1 million, or 6%
  • Noninterest expense increased by $1.2 million, or 4%
  • Provision expense of $3.7 million, compared to $300,000
  • Net charge offs of $1.4 million versus $433,000
  • Watch list loans as a percentage of total loans increased to 4.13% from 3.72%

Fourth Quarter 2024 versus Third Quarter 2024 highlights:

  • Total risk-based capital ratio improved to 15.90% from 15.75%
  • Average equity growth of $23.6 million, or 4%
  • Average loans grew by $22.3 million, or less than 1%, to $5.09 billion
  • Core deposits increased by $118.6 million, or 2%, to $5.8 billion
  • Net interest margin improved 9 basis points to 3.25% versus 3.16%
  • Return on average equity of 13.87%, compared to 13.85%
  • Return on average assets of 1.42%, compared to 1.39%
  • Noninterest income decreased by $41,000, or less than 1%
  • Noninterest expense increased by $260,000, or 1%
  • Provision expense of $3.7 million, compared to $3.1 million
  • Individually analyzed and watch list loans declined by $56.4 million, or 21%
  • Watch list loans as a percentage of total loans improved to 4.13% from 5.27%

Capital Strength

The company’s total capital as a percentage of risk-weighted assets improved to 15.90% at December 31, 2024, compared to 15.47% at December 31, 2023 and 15.75% at September 30, 2024. 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, improved to 10.19% at December 31, 2024, compared to 9.91% at December 31, 2023. The tangible common equity ratio contracted from 10.47% at September 30, 2024. Unrealized losses from available-for-sale investment securities were $191.1 million at December 31, 2024, compared to $174.6 million at December 31, 2023 and $154.5 million at September 30, 2024. 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, improved to 12.37% at December 31, 2024, compared to 11.99% at December 31, 2023 and 12.29% at September 30, 2024.

As announced on January 14, 2025, the board of directors approved a cash dividend for the fourth quarter of $0.50 per share, payable on February 5, 2025, to shareholders of record as of January 25, 2025. The fourth quarter dividend per share represents a 4% increase from the $0.48 dividend per share paid for the fourth quarter of 2023.

“The continued growth in our capital base supports the increase in our dividend rate paid to shareholders and contributes to the growth in total return for shareholders. The compounded annual growth rate for our dividend is 15% since 2012,” stated Kristin L. Pruitt, President.

Loan Portfolio

Average total loans for the twelve months ended December 31, 2024 were $5.04 billion, an increase of $225.7 million, or 5%, from $4.81 billion for the twelve months ended December 31, 2023. Average total loans of $5.09 billion in the fourth quarter of 2024, increased $206.9 million, or 4%, from $4.88 billion for the fourth quarter of 2023, and increased $22.3 million, or less than 1%, from $5.06 billion for the third quarter of 2024.

“Loan growth in 2024 benefited from healthy increases in both our commercial and consumer lending activities,” noted Findlay. “We were pleased to report 8% growth in consumer loans, 6% growth in CRE and multi-family loans, and 2% growth in commercial and industrial loans for 2024. Our Indiana markets continue to benefit from expanding economic activity stimulated by the pro-business operating environment. We continue to be focused on active business development efforts in every market and we are looking forward to continued organic growth in 2025.”

Total loans, net of deferred loan fees, increased by $200.6 million, or 4%, from $4.92 billion as of December 31, 2023 to $5.12 billion as of December 31, 2024. The increase in loans occurred across much of the portfolio with our commercial real estate and multi-family residential loan portfolio growing by $155.0 million, or 6%, our commercial and industrial loan portfolio growing by $30.1 million, or 2%, and our consumer 1-4 family mortgage loans portfolio growing by $34.0 million, or 7%. These increases were offset by a decrease to other commercial loans of $25.1 million, or 21%. On a linked quarter basis, total loans, net of deferred loan fees, increased by $35.7 million, or 1%, from $5.08 billion at September 30, 2024. The linked quarter increase was primarily a result of growth in total commercial real estate and multi-family residential loans of $42.7 million, or 2%, and growth in total agri-business and agricultural loans of $29.0 million, or 8%. Offsetting these increases was a decrease in total commercial and industrial loans of $42.0 million, or 3%.

Commercial loan originations for the fourth quarter included approximately $390.0 million in loan originations, offset by approximately $359.0 million in commercial loan pay downs. Line of credit usage increased to 41% as of December 31, 2024, compared to 39% at December 31, 2023 and was unchanged from 41% as of September 30, 2024. Total available lines of credit contracted by $238.0 million, or 5%, as compared to a year ago, and line usage decreased by $2.0 million, or less than 1%, over that period. The company has limited exposure to commercial office space borrowers, all of which are in the bank’s Indiana markets. Loans totaling $101.7 million for this sector represented 2% of total loans at December 31, 2024, a decrease of $899,000, or 1%, from September 30, 2024. Commercial real estate loans secured by multi-family residential properties and secured by non-farm non-residential properties were approximately 213% of total risk-based capital at December 31, 2024.

Diversified Deposit Base

The bank's diversified deposit base has grown on a year over year basis and on a linked quarter basis.

 
DEPOSIT DETAIL
(unaudited, in thousands)
      
 December 31, 2024 September 30, 2024 December 31, 2023
Retail$1,780,726  30.2% $1,709,899  29.3% $1,794,958  31.4%
Commercial 2,269,049  38.4   2,304,041  39.5   2,227,147  38.9 
Public funds 1,809,631  30.7   1,726,869  29.6   1,563,015  27.3 
Core deposits 5,859,406  99.3   5,740,809  98.4   5,585,120  97.6 
Brokered deposits 41,560  0.7   96,504  1.6   135,405  2.4 
Total$5,900,966  100.0% $5,837,313  100.0% $5,720,525  100.0%
                     

Total deposits increased $180.4 million, or 3%, from $5.72 billion as of December 31, 2023 to $5.90 billion as of December 31, 2024. The increase in total deposits was driven by an increase in core deposits (which excludes brokered deposits) of $274.3 million, or 5%. Total core deposits at December 31, 2024 were $5.86 billion and represented 99% of total deposits, as compared to $5.59 billion and 98% of total deposits at December 31, 2023. Brokered deposits were $41.6 million, or 1% of total deposits, at December 31, 2024, compared to $135.4 million, or 2% of total deposits, at December 31, 2023.

The increase in core deposits since December 31, 2023 reflects growth in commercial deposits and public funds deposits. Public funds deposits grew annually by $246.6 million, or 16%, to $1.81 billion. Commercial deposits grew annually by $41.9 million, or 2%, to $2.27 billion. Retail deposits contracted annually by $14.2 million, or 1%, to $1.78 billion. The increase in public funds deposits drove the change in the composition of core deposits as public funds deposits as a percentage of total deposits increased to 31%, from 27%. Commercial and retail deposits as a percentage of total deposits contracted to 38%, from 39%, and to 30%, from 31%, respectively. Growth in public funds was positively impacted by the addition of a new public funds customers in the Lake City Bank footprint which included the addition of their operating accounts.

On a linked quarter basis, total deposits increased $63.7 million, or 1%, from $5.84 billion at September 30, 2024 to $5.90 billion at December 31, 2024. Core deposits increased by $118.6 million, or 2%, while brokered deposits decreased by $54.9 million, or 57%. Linked quarter growth in core deposits resulted primarily from an increase in public funds deposits of $82.8 million, or 5%, and growth in retail deposits of $70.8 million, or 4%. Offsetting these increases was a decrease in commercial deposits of $35.0 million, or 2%.

“Core deposit growth was steady throughout 2024 and accounts for 99% of the funding sources for Lake City Bank,” commented Findlay. “We are pleased that our growth in core deposits came from every region of the bank. We continue to successfully fund the loan growth with in-market stable and diversified deposit growth. We continue to gain market share in our more mature Northern Indiana markets and implemented strategies to enhance growth in the Indianapolis market through data-driven marketing and business development efforts.”

Average total deposits were $6.01 billion for the fourth quarter of 2024, an increase of $208.5 million, or 4%, from $5.80 billion for the fourth quarter of 2023. Average interest-bearing deposits drove the increase in average total deposits and increased by $301.1 million, or 7%. Contributing to the overall growth of interest-bearing deposits was an increase to average interest-bearing checking accounts of $431.9 million, or 14%. Offsetting this increase was a reduction in average time deposits of $98.9 million, or 9%, and a decrease to average savings deposits of $31.9 million, or 10%. Average noninterest-bearing demand deposits decreased by $92.5 million, or 7%.

On a linked quarter basis, average total deposits increased by $130.9 million, or 2%, from $5.88 billion for the third quarter of 2024 to $6.01 billion for the fourth quarter of 2024. Average interest-bearing deposits drove the increase to total average deposits, which increased by $93.2 million, or 2%. An increase to interest bearing checking accounts of $209.6 million, or 6%, drove the increase to average interest-bearing deposits on a linked quarter basis. Offsetting this increase was a decrease to total average time deposits of $111.1 million, or 10%. Average noninterest-bearing demand deposits increased by $37.7 million, or 3%.

Checking account trends as of December 31, 2024 compared to December 31, 2023, include growth of $310.5 million, or 24%, in aggregate public fund checking account balances, growth of $24.5 million, or 1%, in aggregate commercial checking account balances, and expansion of $34.4 million, or 4%, in aggregate retail checking account balances. The number of accounts has also grown for all three segments, with growth of 7% for public funds accounts, 2% for commercial accounts and 1% for retail accounts during 2024.

Deposits not covered by FDIC deposit insurance as a percentage of total deposits were 62% as of December 31, 2024, compared to 61% at September 30, 2024, and 57% at December 31, 2023, reflecting the growth in public fund deposits over the period. Deposits not covered by FDIC deposit insurance or the Indiana Public Deposit Insurance Fund (which insures public funds deposits in Indiana), were 32% of total deposits as of December 31, 2024, compared to 32% at September 30, 2024, and 31% as of December 31, 2023. As of December 31, 2024, 98% of deposit accounts had deposit balances less than $250,000.

Net Interest Margin

Net interest margin was 3.25% for the fourth quarter of 2024, representing a 2 basis point increase from 3.23% for the fourth quarter of 2023. Earning assets yields decreased by 15 basis points to 5.81% for the fourth quarter of 2024 from 5.96% for the fourth quarter of 2023. The decrease in earning asset yields was offset by a decrease in the company's funding costs of 17 basis points as interest expense as a percentage of average earning assets decreased to 2.56% for the fourth quarter of 2024, compared to 2.73% for the fourth quarter of 2023.

Linked quarter net interest margin expanded by 9 basis point to 3.25% for the fourth quarter of 2024, compared to 3.16% for the third quarter of 2024. Average earning asset yields decreased by 23 basis points from 6.04% during the third quarter of 2024 to 5.81% during the fourth quarter of 2024 and were offset by a 32 basis point decrease in interest expense as a percentage of average earning assets from 2.88% to 2.56%. The cumulative 100 basis point decline in the Federal Funds Rate during 2024, drove the reduction in funding costs that provided for the net interest margin expansion through deposit repricing. Notably, the deposit mix shift from noninterest bearing deposits to interest bearing deposits experienced by the company during the monetary tightening cycle of March 2022 through September 2024 has stabilized with noninterest bearing deposits representing 22% of total deposits at December 31, 2024, compared to 24% at December 31, 2023 and 22% at September 30, 2024.

“Our thoughtful and strategic balance sheet management strategies led to healthy net interest margin expansion of 9 basis points during the fourth quarter,” noted Lisa M. O’Neill, Executive Vice-President and Chief Financial Officer. “Net interest margin expansion resulted from reduced deposit costs that outpaced loan repricing due to falling short term rates. Our public fund balances are largely tied to the effective federal funds rate, and we also continue to benefit from fixed rate loan repricing to the higher interest rate environment.”

The loan beta for the current rate-easing cycle is 25% compared to the deposit beta of 31%. The cumulative loan beta, which measures the sensitivity of a bank's average loan yield to changes in short-term interest rates, was 56% for the recent rate-tightening cycle. The cumulative deposit beta, which measures the sensitivity of a bank's deposit cost to changes in short-term interest rates, was 54% for the recent rate-tightening cycle.

Liquidity Overview

The bank has robust liquidity resources. These resources include secured borrowings available from the Federal Home Loan Bank and the Federal Reserve Bank Discount Window. In addition, the bank has unsecured borrowing capacity through long established relationships within the brokered deposits markets, federal funds lines from correspondent bank partners, and Insured Cash Sweep (ICS) one-way buy funds available from the Intrafi network. As of December 31, 2024, the company had access to an aggregate of $3.7 billion in liquidity from these sources, compared to $3.4 billion at December 31, 2023 and $3.7 billion at September 30, 2024. Utilization from these sources totaled $41.6 million at December 31, 2024, compared to $185.4 million at December 31, 2023 and $96.5 million at September 30, 2024. Core deposits have historically represented, and currently represent, the primary funding resource of the bank at 99% of total deposits and purchased funds.

Investment Portfolio Overview

Total investment securities were $1.12 billion at December 31, 2024, reflecting a decrease of $58.7 million, or 5%, as compared to $1.18 billion at December 31, 2023. On a linked quarter basis, investment securities decreased $24.8 million, or 2%, due primarily to a decline in the fair market value of available-for-sale securities of $36.6 million, portfolio cash flows of $15.1 million and partially offset by investment security purchases of $30 million. Investment securities represented 17% of total assets on December 31, 2024, compared to 18% at December 31, 2023 and 17% at September 30, 2024. The ratio of investment securities as a percentage of total assets remains elevated over historical levels of approximately 12% to 14%. The company expects the investment securities portfolio as a percentage of assets to continue to decrease over time as the proceeds from pay downs, sales and maturities are used to fund loan growth and for general liquidity purposes. Tax equivalent adjusted effective duration for the investment portfolio was 6.0 years at December 31, 2024, compared to 6.5 years and 6.3 years at December 31, 2023 and September 30, 2024, respectively. Tax equivalent adjusted effective duration of the investment portfolio remains elevated as compared to 4.0 years at December 31, 2019 prior to the deployment of excess liquidity to the investment portfolio and the impact of the higher interest rate environment. The company anticipates receiving principal and interest cash flows of approximately $104.2 million during 2025 from the investment securities portfolio and plans to use that liquidity to fund loan growth and to fund new investment securities purchases.

Net interest income decreased by $356,000, or less than 1%, for the twelve months ended December 31, 2024, as compared to the twelve months ended December 31, 2023. Deposit interest expense increased by $35.0 million. Offsetting the increase in deposit interest expense was an increase in loan interest income of $29.8 million and a reduction in borrowings interest expense of $4.7 million. Net interest income was $51.7 million for the fourth quarter of 2024, representing an increase of $3.1 million, or 6%, as compared to the fourth quarter of 2023. Net interest income for the fourth quarter of 2024 benefited from an increase in loan interest income of $1.9 million and a reduction in interest expense of $667,000 compared to the prior year quarter. On a linked quarter basis, net interest income increased $2.4 million, or 5%, from $49.3 million for the third quarter of 2024. On a linked quarter basis, the increase to net interest income was driven by a $4.1 million reduction in interest expense and a $1.1 million increase in income from short-term investments. Offsetting the reduction in interest expense was a reduction in loan interest income of $2.9 million.

On a full year basis, revenue increased by $6.6 million, or 3%, to $253.5 million as compared to $246.9 million for 2023. Revenue was $63.6 million for the fourth quarter 2024 representing a decrease of $ 2.2 million or 3%, as compared to the fourth quarter of 2023. On a linked quarter basis, revenue increased by $2.4 million, or 4% from $61.2 million in the third quarter of 2024.

Asset Quality

Provision expense was $16.8 million for the year ended December 31, 2024, an increase of $10.9 million, or 186%, as compared to $5.9 million during 2023. The elevated provision recorded during 2024 as compared to the prior year was primarily driven by an increase in specific allocations from the downgrade of a $43.3 million credit to an industrial company in Northern Indiana. The relationship was placed on nonperforming status in conjunction with the downgrade, which occurred during the second quarter of 2024. Additional specific allocations of $5.5 million were reserved for this credit during the fourth quarter of 2024. The company recorded a provision expense of $3.7 million in the fourth quarter of 2024, compared to provision expense of $300,000 in the fourth quarter of 2023. On a linked quarter basis, provision expense increased by $632,000 from $3.1 million for the third quarter of 2024, or 21%.

The allowance for credit loss reserve to total loans was 1.68% at December 31, 2024, up from 1.46% at December 31, 2023, and 1.65% at September 30, 2024. Net charge offs were $2.8 million for the full year 2024 compared to $6.5 million for 2023. Net charge offs to total loans were 0.05% for 2024 compared to 0.13% for 2023. Net charge offs in the fourth quarter of 2024 were $1.4 million compared to $433,000 in the fourth quarter of 2023 and $143,000 during the linked third quarter of 2024. Annualized net charge offs to average loans were 0.11% for the fourth quarter of 2024, compared to 0.04% for the fourth quarter of 2023, and 0.01% for the linked third quarter of 2024.

Nonperforming assets increased $40.8 million, or 253%, to $56.9 million as of December 31, 2024, versus $16.1 million as of December 31, 2023. On a linked quarter basis, nonperforming assets decreased $1.2 million, or 2%, compared to $58.1 million as of September 30, 2024. The ratio of nonperforming assets to total assets at December 31, 2024 increased to 0.85% from 0.25% at December 31, 2023 and decreased from 0.87% at September 30, 2024. The full-year increase in nonperforming assets was primarily driven by the industrial borrower relationship referenced above.

Total individually analyzed and watch list loans increased by $28.1 million, or 15%, to $211.1 million as of December 31, 2024, versus $183.1 million as of December 31, 2023. On a linked quarter basis, total individually analyzed and watch list loans decreased by $56.4 million, or 21%, from $267.6 million at September 30, 2024. Watch list loans as a percentage of total loans increased by 41 basis points to 4.13% at December 31, 2024, compared to 3.72% at December 31, 2023, and decreased by 114 basis points from 5.27% at September 30, 2024. The linked quarter decrease in total individually analyzed and watch list loans was primarily driven by the removal of six relationships from the watch list with an aggregate balance of $63.7 million, offset by the addition of four downgraded credits with an aggregated balance of $8.4 million. Approximately $45.5 million of the watch list removals were attributable to credit upgrades, with the remaining $18.2 million in removals attributable to payoffs.

“We are encouraged by the $56 million decrease in watch list credits during the quarter and are cautiously optimistic following our fourth quarter, semi-annual portfolio reviews meetings during which we review every commercial banker’s portfolio,” stated Findlay. “Economic conditions in all of our markets remain stable and we continue to actively manage our loan portfolio challenges.”

Noninterest Income

Noninterest income increased by $7.0 million, or 14%, to $56.8 million for the twelve months ended December 31, 2024, compared to $49.9 million for the prior year. The increase in noninterest income for the twelve months ended December 31, 2024 was primarily driven by the net gain on sale of Visa shares of $9.0 million. Contributing further to the increase in noninterest income was an increase to wealth and advisory fees of $1.4 million, or 15%, driven by growth in customers and favorable market performance. Bank owned life insurance income increased $1.1 million, or 34%, due to favorable market performance of the company's variable bank owned life insurance policies. Offsetting these increases was a $4.5 million, or 49%, decrease to other income. Other income was elevated during the twelve months ended December 31, 2023 from insurance and loss recoveries of $6.3 million that were related to the 2023 wire fraud loss. Offsetting the impact of these recoveries was increased investment income from the company's limited partnership investments and the receipt of an additional $1.0 million in recoveries from the wire fraud loss. Adjusted core noninterest income, a non-GAAP financial measure that excludes the effects of certain non-routine operating events, was $46.8 million for the twelve months ended December 31, 2024, an increase of $3.3 million, or 8%, compared to $43.6 million for twelve months ended December 31, 2023.

Findlay added, “It is very gratifying to report strong growth in core noninterest income for 2024. Our fee-based lines of business made significant contributions to revenue growth during the year. Notably, Wealth Advisory fees grew by 15% and treasury management fees grew by 5%. As we move into 2025, our teams continue to be focused on driving continued growth in these business lines.”

The company’s noninterest income decreased $5.3 million, or 31%, to $11.9 million for the fourth quarter of 2024, compared to $17.2 million for the fourth quarter of 2023. Wealth advisory fees increased $388,000, or 17%, and bank owned life insurance increased $476,000, or 64%. Other income decreased $6.5 million, or 89%. Other income was elevated during the fourth quarter of 2023 primarily due to insurance and loss recoveries of $6.3 million related to the wire fraud loss. Adjusted core noninterest income was $11.9 million for the fourth quarter of 2024, an increase of $968,000, or 9%, compared to $10.9 million for the fourth quarter of 2023.

On a linked quarter basis, noninterest income for the fourth quarter of 2024 decreased by $41,000, or less than 1%, from $11.9 million during the third quarter of 2024. The linked quarter decrease was driven by a decrease to other income of $261,000, or 25%, and was offset by an increase to bank owned life insurance income $148,000, or 14%.

Noninterest Expense

Noninterest expense decreased by $5.6 million, or 4%, from $130.7 million to $125.1 million for the twelve months ended December 31, 2023 and 2024, respectively. Noninterest expense during 2023 was elevated as compared to 2024 due to the wire fraud loss, which added a net $16.7 million to noninterest expense. Offsetting this impact on noninterest expense was a $7.6 million, or 13%, increase in salaries and employees benefits during the full year 2024. The increase to salaries and benefits expense resulted primarily from increases to salaries and wages of $3.2 million, performance-based incentive compensation of $2.3 million, health insurance expense of $918,000, and variable deferred compensation of $950,000, which relates to the company's variable bank owned life insurance. Other expense increased $2.6 million, or 24%, primarily due to an accrued legal expense of $4.5 million. Data processing fees and supplies increased by $1.2 million, or 8%, from the continued investment in customer-facing and operational technology solutions. Adjusted core noninterest expense, a non-GAAP financial measure that excludes the effects of certain non-routine operating events, was $120.5 million for the twelve months ended December 31, 2024, an increase of $6.5 million, or 6%, compared to $114.0 million for the twelve months ended December 31, 2023.

Noninterest expense increased $1.2 million, or 4%, to $30.7 million for the fourth quarter of 2024, compared to $29.4 million during the fourth quarter of 2023. Driving the fourth quarter 2024 increase to noninterest expense was an increase to salaries and benefits expense of $1.5 million, or 10%, which was primarily attributable to increased salary expense of $825,000, deferred compensation of $414,000 and increased health insurance of $222,000. Other expense decreased by $595,000, or 20%, from lower legal accruals. Adjusted core noninterest expense increased by $1.7 million, or 6%, from $29.0 million during the fourth quarter of 2023.

On a linked quarter basis, noninterest expense increased by $260,000, or 1%, from $30.4 million during the third quarter of 2024. Driving the increase in noninterest expense was an increase in salaries and employee benefits of $785,000, or 5% primarily due to performance-based incentive compensation. Corporate and business development expense decreased by $419,000, or 31%, which was driven by a reduction in advertising expense during the quarter. Other expense decreased by $132,000, or 5%.

The company's efficiency ratio for the twelve months ended December 31, 2024 was 49.3% compared to 52.9% for the twelve months ended December 31, 2023. The company's adjusted core efficiency ratio, a non-GAAP financial measure that excludes the impact of certain non-routine operating events, was 49.5% for the twelve months ended December 31, 2024 as compared to 47.4% for the twelve months ended December 31, 2023.

The company’s efficiency ratio was 48.2% for the fourth quarter of 2024, compared to 44.7% for the fourth quarter of 2023 and 49.7% for the linked third quarter of 2024. The company's adjusted core efficiency ratio was 48.7% for the fourth quarter of 2023 and unchanged when compared to the company's efficiency ratio for the third and fourth quarters of 2024.

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 $6.7 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 54 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, 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 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 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.

 
LAKELAND FINANCIAL CORPORATION
FOURTH QUARTER 2024 FINANCIAL HIGHLIGHTS
    
 Three Months Ended Twelve Months Ended
(Unaudited – Dollars in thousands, except per share data)December 31, September 30, December 31, December 31, December 31,
END OF PERIOD BALANCES2024 2024 2023 2024 2023
Assets$6,678,374  $6,645,371  $6,524,029  $6,678,374  $6,524,029 
Investments 1,122,994   1,147,806   1,181,646   1,122,994   1,181,646 
Loans 5,117,948   5,081,990   4,916,534   5,117,948   4,916,534 
Allowance for Credit Losses 85,960   83,627   71,972   85,960   71,972 
Deposits 5,900,966   5,837,313   5,720,525   5,900,966   5,720,525 
Brokered Deposits 41,560   96,504   135,405   41,560   135,405 
Core Deposits (1) 5,859,406   5,740,809   5,585,120   5,859,406   5,585,120 
Total Equity 683,911   699,181   649,793   683,911   649,793 
Goodwill Net of Deferred Tax Assets 3,803   3,803   3,803   3,803   3,803 
Tangible Common Equity (2) 680,108   695,378   645,990   680,108   645,990 
Adjusted Tangible Common Equity (2) 846,040   832,813   800,450   846,040   800,450 
AVERAGE BALANCES         
Total Assets$6,795,596  $6,656,464  $6,514,430  $6,662,718  $6,464,980 
Earning Assets 6,470,920   6,329,287   6,145,937   6,328,498   6,114,225 
Investments 1,134,011   1,128,705   1,107,862   1,134,979   1,184,659 
Loans 5,086,614   5,064,348   4,879,695   5,039,406   4,813,678 
Total Deposits 6,011,122   5,880,177   5,802,592   5,836,025   5,604,228 
Interest Bearing Deposits 4,729,201   4,635,993   4,428,140   4,578,219   4,128,922 
Interest Bearing Liabilities 4,729,206   4,649,745   4,441,425   4,644,553   4,295,743 
Total Equity 693,744   670,160   572,653   662,087   588,667 
INCOME STATEMENT DATA         
Net Interest Income$51,694  $49,273  $48,599  $196,679  $197,035 
Net Interest Income-Fully Tax Equivalent 52,804   50,383   49,914   201,363   202,347 
Provision for Credit Losses 3,691   3,059   300   16,750   5,850 
Noninterest Income 11,876   11,917   17,208   56,844   49,858 
Noninterest Expense 30,653   30,393   29,445   125,084   130,710 
Net Income 24,190   23,338   29,626   93,478   93,767 
Pretax Pre-Provision Earnings (2) 32,917   30,797   36,362   128,439   116,183 
PER SHARE DATA         
Basic Net Income Per Common Share$0.94  $0.91  $1.16  $3.64  $3.67 
Diluted Net Income Per Common Share 0.94   0.91   1.16   3.63   3.65 
Cash Dividends Declared Per Common Share 0.48   0.48   0.46   1.92   1.84 
Dividend Payout 51.06%  52.75%  39.66%  52.89%  50.41%
Book Value Per Common Share (equity per share issued)$26.62  $27.22  $25.37  $26.62  $25.37 
Tangible Book Value Per Common Share (2) 26.47   27.07   25.22   26.47   25.22 
Market Value – High$78.61  $72.25  $67.88  $78.61  $77.07 
Market Value – Low 61.10   57.45
   45.59   57.45   43.05 
                    
                    
 Three Months Ended Twelve Months Ended
(Unaudited – Dollars in thousands, except per share data)December 31, September 30, December 31, December 31, December 31,
PER SHARE DATA (continued)2024 2024 2023 2024 2023
Basic Weighted Average Common Shares Outstanding 25,686,276   25,684,407   25,614,420   25,676,543   25,604,751 
Diluted Weighted Average Common Shares Outstanding 25,792,460   25,767,739   25,732,870   25,769,018   25,723,165 
KEY RATIOS         
Return on Average Assets 1.42%  1.39%  1.80%  1.40%  1.45%
Return on Average Total Equity 13.87   13.85   20.52   14.12   15.93 
Average Equity to Average Assets 10.21   10.07   8.79   9.94   9.11 
Net Interest Margin 3.25   3.16   3.23   3.18   3.31 
Efficiency  (Noninterest Expense/Net Interest Income plus Noninterest Income) 48.22   49.67   44.74   49.34   52.94 
Loans to Deposits 86.73   87.06   85.95   86.73   85.95 
Investment Securities to Total Assets 16.82   17.27   18.11   16.82   18.11 
Tier 1 Leverage (3) 12.15   12.18   11.82   12.15   11.82 
Tier 1 Risk-Based Capital (3) 14.64   14.50   14.21   14.64   14.21 
Common Equity Tier 1 (CET1) (3) 14.64   14.50   14.21   14.64   14.21 
Total Capital (3) 15.90   15.75   15.47   15.90   15.47 
Tangible Capital (2) 10.19   10.47   9.91   10.19   9.91 
Adjusted Tangible Capital (2) 12.37   12.29   11.99   12.37   11.99 
ASSET QUALITY         
Loans Past Due 30 - 89 Days$4,273  $829  $3,360  $4,273  $3,360 
Loans Past Due 90 Days or More 28   95   27   28   27 
Nonaccrual Loans 56,431   57,551   15,687   56,431   15,687 
Nonperforming Loans 56,459   57,646   15,714   56,459   15,714 
Other Real Estate Owned 284   384   384   284   384 
Other Nonperforming Assets 143   21   8   143   8 
Total Nonperforming Assets 56,886   58,051   16,106   56,886   16,106 
Individually Analyzed Loans 78,647   77,654   16,124   78,647   16,124 
Non-Individually Analyzed Watch List Loans 132,499   189,918   166,961   132,499   166,961 
Total Individually Analyzed and Watch List Loans 211,146   267,572   183,085   211,146   183,085 
Gross Charge Offs 1,657   231   566   3,468   7,332 
Recoveries 299   88   133   706   848 
Net Charge Offs/(Recoveries) 1,358   143   433   2,762   6,484 
Net Charge Offs/(Recoveries) to Average Loans 0.11%  0.01%  0.04%  0.05%  0.13%
Credit Loss Reserve to Loans 1.68   1.65   1.46   1.68   1.46 
Credit Loss Reserve to Nonperforming Loans 152.25   145.07   458.01   152.25   458.01 
Nonperforming Loans to Loans 1.10   1.13   0.32   1.10   0.32 
Nonperforming Assets to Assets 0.85   0.87   0.25   0.85   0.25 
Total Individually Analyzed and Watch List Loans to Total Loans 4.13%  5.27%  3.72%  4.13%  3.72%
          
          
 Three Months Ended Twelve Months Ended
(Unaudited – Dollars in thousands, except per share data)December 31, September 30, December 31, December 31, December 31,
PER SHARE DATA (continued)2024 2024 2023 2024 2023
OTHER DATA         
Full Time Equivalent Employees 643   639   619   643   619 
Offices 54   54   53   54   53 

________________________________________________________________
(1)  Core deposits equals deposits less brokered deposits.
(2)  Non-GAAP financial measure - see “Reconciliation of Non-GAAP Financial Measures”.
(3)  Capital ratios for December 31, 2024 are preliminary until the Call Report is filed.

 
CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
 
​December 31,
2024		 December 31,
2023
​(Unaudited) ​
ASSETS   
Cash and due from banks$71,733  $70,451 
Short-term investments 96,472   81,373 
Total cash and cash equivalents 168,205   151,824 
​   
Securities available-for-sale, at fair value 991,426   1,051,728 
Securities held-to-maturity, at amortized cost (fair value of $113,107 and $119,215, respectively) 131,568   129,918 
Real estate mortgage loans held-for-sale 1,700   1,158 
​   
Loans, net of allowance for credit losses of $85,960 and $71,972 5,031,988   4,844,562 
​   
Land, premises and equipment, net 60,489   57,899 
Bank owned life insurance 113,320   109,114 
Federal Reserve and Federal Home Loan Bank stock 21,420   21,420 
Accrued interest receivable 28,446   30,011 
Goodwill 4,970   4,970 
Other assets 124,842   121,425 
Total assets$6,678,374  $6,524,029 
​   
​   
LIABILITIES   
Noninterest bearing deposits$1,297,456  $1,353,477 
Interest bearing deposits 4,603,510   4,367,048 
Total deposits 5,900,966   5,720,525 
    
Borrowings - Federal Home Loan Bank advances 0   50,000 
Accrued interest payable 15,117   20,893 
Other liabilities 78,380   82,818 
Total liabilities 5,994,463   5,874,236 
​   
STOCKHOLDERS’ EQUITY   
Common stock: 90,000,000 shares authorized, no par value   
25,978,831 shares issued and 25,509,592 outstanding as of December 31, 2024   
25,903,686 shares issued and 25,430,566 outstanding as of December 31, 2023 129,664   127,692 
Retained earnings 736,412   692,760 
Accumulated other comprehensive income (loss) (166,500)  (155,195)
Treasury stock, at cost (469,239 shares and 473,120 shares as of December 31, 2024 and December 31, 2023, respectively) (15,754)  (15,553)
Total stockholders’ equity 683,822   649,704 
Noncontrolling interest 89   89 
Total equity 683,911   649,793 
Total liabilities and equity$6,678,374  $6,524,029 
        


 
CONSOLIDATED STATEMENTS OF INCOME (unaudited - in thousands, except share and per share data)
 
​Three Months Ended December 31, Twelve Months Ended December 31,
​2024
 2023 2024 2023
NET INTEREST INCOME       
Interest and fees on loans       
Taxable$83,253  $80,631  $335,639  $304,130 
Tax exempt 296   1,016   2,126   3,885 
Interest and dividends on securities       
Taxable 2,997   3,187   12,048   13,153 
Tax exempt 3,914   4,009   15,714   16,396 
Other interest income 2,910   2,099   7,631   5,703 
Total interest income 93,370   90,942   373,158   343,267 
​​ ​ ​ ​
Interest on deposits 41,676   42,154   172,759   137,791 
Interest on short-term borrowings 0   189   3,720   8,441 
Total interest expense 41,676   42,343   176,479   146,232 
​​ ​ ​ ​
NET INTEREST INCOME 51,694   48,599   196,679   197,035 
​​ ​ ​ ​
Provision for credit losses 3,691   300   16,750   5,850 
​​ ​ ​ ​
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 48,003   48,299   179,929   191,185 
​​ ​ ​ ​
NONINTEREST INCOME       
Wealth advisory fees 2,699   2,311   10,469   9,080 
Investment brokerage fees 456   445   1,894   1,815 
Service charges on deposit accounts 2,825   2,682   11,157   10,773 
Loan and service fees 2,977   2,968   11,832   11,750 
Merchant and interchange fee income 889   907   3,542   3,651 
Bank owned life insurance income 1,216   740   4,210   3,133 
Interest rate swap fee income 0   0   0   794 
Mortgage banking income (loss) 48   (70)  116   (254)
Net securities gains (losses) 0   (9)  (46)  (25)
Net gain on Visa shares 0   0   8,996   0 
Other income 766   7,234   4,674   9,141 
Total noninterest income 11,876   17,208   56,844   49,858 
​​ ​ ​ ​
NONINTEREST EXPENSE       
Salaries and employee benefits 17,261   15,733   66,728   59,147 
Net occupancy expense 1,706   1,486   6,865   6,360 
Equipment costs 1,405   1,443   5,612   5,632 
Data processing fees and supplies 3,742   3,698   15,161   14,003 
Corporate and business development 950   877   4,965   4,807 
FDIC insurance and other regulatory fees 894   894   3,465   3,363 
Professional fees 2,275   2,299   8,950   8,583 
Wire fraud loss 0   0   0   18,058 
Other expense 2,420   3,015   13,338   10,757 
Total noninterest expense 30,653   29,445   125,084   130,710 
​​ ​ ​ ​
INCOME BEFORE INCOME TAX EXPENSE 29,226   36,062   111,689   110,333 
Income tax expense 5,036   6,436   18,211   16,566 
NET INCOME$24,190  $29,626  $93,478  $93,767 
​​ ​ ​ ​
BASIC WEIGHTED AVERAGE COMMON SHARES 25,686,276   25,614,420   25,676,543   25,604,751 
​​ ​ ​ ​
BASIC EARNINGS PER COMMON SHARE$0.94  $1.16  $3.64  $3.67 
​       
DILUTED WEIGHTED AVERAGE COMMON SHARES 25,792,460   25,732,870   25,769,018   25,723,165 
​       
DILUTED EARNINGS PER COMMON SHARE$0.94  $1.16  $3.63  $3.65 
                


 
LAKELAND FINANCIAL CORPORATION
LOAN DETAIL
(unaudited, in thousands)
      
 December 31,
2024		 September 30,
2024		 December 31,
2023
Commercial and industrial loans:           
Working capital lines of credit loans$649,609  12.7% $678,079  13.3% $604,893  12.3%
Non-working capital loans 801,256  15.6   814,804  16.0   815,871  16.6 
Total commercial and industrial loans 1,450,865  28.3   1,492,883  29.3   1,420,764  28.9 
     ​      
Commercial real estate and multi-family residential loans:           
Construction and land development loans 567,781  11.1   729,293  14.3   634,435  12.9 
Owner occupied loans 807,090  15.8   810,453  15.9   825,464  16.8 
Nonowner occupied loans 872,671  17.0   766,821  15.1   724,101  14.7 
Multifamily loans 344,978  6.7   243,283  4.8   253,534  5.1 
Total commercial real estate and multi-family residential loans 2,592,520  50.6   2,549,850  50.1   2,437,534  49.5 
     ​      
Agri-business and agricultural loans:           
Loans secured by farmland 156,609  3.1   157,413  3.1   162,890  3.3 
Loans for agricultural production 230,787  4.5   200,971  4.0   225,874  4.6 
Total agri-business and agricultural loans 387,396  7.6   358,384  7.1   388,764  7.9 
     ​      
Other commercial loans 95,584  1.9   94,309  1.9   120,726  2.5 
Total commercial loans 4,526,365  88.4   4,495,426  88.4   4,367,788  88.8 
     ​      
Consumer 1-4 family mortgage loans:           
Closed end first mortgage loans 259,286  5.1   261,462  5.1   258,103  5.2 
Open end and junior lien loans 214,125  4.2   210,275  4.1   189,663  3.9 
Residential construction and land development loans 16,818  0.3   14,200  0.3   8,421  0.2 
Total consumer 1-4 family mortgage loans 490,229  9.6   485,937  9.5   456,187  9.3 
 ​   ​      
Other consumer loans 104,041  2.0   103,547  2.1   96,022  1.9 
Total consumer loans 594,270  11.6   589,484  11.6   552,209  11.2 
Subtotal 5,120,635  100.0%  5,084,910  100.0%  4,919,997  100.0%
Less:  Allowance for credit losses (85,960)    (83,627) ​  (71,972) ​
Net deferred loan fees (2,687)    (2,920) ​  (3,463) ​
Loans, net$5,031,988    $4,998,363  ​ $4,844,562  ​
                  


 
LAKELAND FINANCIAL CORPORATION
DEPOSITS AND BORROWINGS
(unaudited, in thousands)
      
 December 31,
2024		 September 30,
2024		 December 31,
2023
Noninterest bearing demand deposits$1,297,456  $1,284,527  $1,353,477 
Savings and transaction accounts:     
Savings deposits 276,179   276,468   301,168 
Interest bearing demand deposits 3,471,455   3,273,405   3,049,059 
Time deposits:     
Deposits of $100,000 or more 642,776   787,095   792,738 
Other time deposits 213,100   215,818   224,083 
Total deposits$5,900,966  $5,837,313  $5,720,525 
FHLB advances and other borrowings 0   30,000   50,000 
Total funding sources$5,900,966  $5,867,313  $5,770,525 
            


 
LAKELAND FINANCIAL CORPORATION
AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS
(UNAUDITED)
       
  Three Months Ended December 31, 2024 Three Months Ended September 30, 2024 Three Months Ended December 31, 2023
(fully tax equivalent basis, dollars in thousands) Average Balance Interest Income Yield (1)/
Rate		 Average Balance Interest Income Yield (1)/
Rate		 Average Balance Interest Income Yield (1)/
Rate
Earning Assets                  
Loans:                  
Taxable (2)(3) $5,060,397  $83,253  6.54% $5,037,855  $86,118  6.80% $4,820,389  $80,631  6.64%
Tax exempt (1)  26,217   364  5.52   26,493   366  5.50   59,306   1,265  8.46 
Investments: (1)                  
Securities  1,134,011   7,953  2.79   1,128,705   7,871  2.77   1,107,862   8,262  2.96 
Short-term investments  2,765   29  4.17   2,841   35  4.90   2,610   32  4.86 
Interest bearing deposits  247,530   2,881  4.63   133,393   1,738  5.18   155,770   2,067  5.26 
Total earning assets $6,470,920  $94,480  5.81% $6,329,287  $96,128  6.04% $6,145,937  $92,257  5.96%
Less:  Allowance for credit losses  (84,687)      (81,353)      (72,165)    
Nonearning Assets                  
Cash and due from banks  67,994       63,744       69,563     
Premises and equipment  60,325       59,493       58,436     
Other nonearning assets  281,044       285,293       312,659     
Total assets $6,795,596      $6,656,464      $6,514,430     
                   
Interest Bearing Liabilities                  
Savings deposits $274,960  $43  0.06% $280,180  $45  0.06% $306,875  $52  0.07%
Interest bearing checking accounts  3,505,470   31,562  3.58   3,295,911   33,822  4.08   3,073,570   30,953  4.00 
Time deposits:                  
In denominations under $100,000  214,429   1,921  3.56   215,020   1,914  3.54   220,678   1,810  3.25 
In denominations over $100,000  734,342   8,150  4.42   844,882   9,775  4.60   827,017   9,339  4.48 
Miscellaneous short-term borrowings  5   0  5.30   13,752   189  5.48   13,285   189  5.64 
Total interest bearing liabilities $4,729,206  $41,676  3.51% $4,649,745  $45,745  3.91% $4,441,425  $42,343  3.78%
Noninterest Bearing Liabilities                  
Demand deposits  1,281,921       1,244,184       1,374,452     
Other liabilities  90,725       92,375       125,900     
Stockholders' Equity  693,744       670,160       572,653     
Total liabilities and stockholders' equity $6,795,596      $6,656,464      $6,514,430     
Interest Margin Recap                  
Interest income/average earning assets    94,480  5.81%    96,128  6.04%    92,257  5.96%
Interest expense/average earning assets    41,676  2.56     45,745  2.88     42,343  2.73 
Net interest income and margin   $52,804  3.25%   $50,383  3.16%   $49,914  3.23%
                            

(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 $1.11 million, $1.11 million and $1.32 million in the three-month periods ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
(2)  Loan fees, which are immaterial in relation to total taxable loan interest income for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, are included as taxable loan interest income.
(3)  Nonaccrual loans are included in the average balance of taxable loans.

Reconciliation of Non-GAAP Financial Measures

Tangible common equity, adjusted tangible common equity, tangible assets, adjusted tangible assets, tangible book value per common share, tangible common equity to tangible assets, adjusted tangible common equity to adjusted tangible assets, and pretax pre-provision earnings are non-GAAP financial measures calculated based on GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of equity, net of deferred tax. Tangible assets are calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets, net of deferred tax. Adjusted tangible assets and adjusted tangible common equity remove the fair market value adjustment impact of the available-for-sale investment securities portfolio in accumulated other comprehensive income (loss) ("AOCI"). Tangible book value per common share is calculated by dividing tangible common equity by the number of shares outstanding less true treasury stock. Pretax pre-provision earnings is calculated by adding net interest income to noninterest income and subtracting noninterest expense. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. However, management considers these measures of the company’s value meaningful to understanding of the company’s financial information and performance.

A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

 Three Months Ended Twelve Months Ended
 Dec. 31, 2024 Sep. 30, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023
Total Equity$683,911  $699,181  $649,793  $683,911  $649,793 
Less: Goodwill (4,970)  (4,970)  (4,970)  (4,970)  (4,970)
Plus: DTA Related to Goodwill 1,167   1,167   1,167   1,167   1,167 
Tangible Common Equity 680,108   695,378   645,990   680,108   645,990 
Market Value Adjustment in AOCI 165,932   137,435   154,460   165,932   154,460 
Adjusted Tangible Common Equity 846,040   832,813   800,450   846,040   800,450 
          
Assets$6,678,374  $6,645,371  $6,524,029  $6,678,374  $6,524,029 
Less: Goodwill (4,970)  (4,970)  (4,970)  (4,970)  (4,970)
Plus: DTA Related to Goodwill 1,167   1,167   1,167   1,167   1,167 
Tangible Assets 6,674,571   6,641,568   6,520,226   6,674,571   6,520,226 
Market Value Adjustment in AOCI 165,932   137,435   154,460   165,932   154,460 
Adjusted Tangible Assets 6,840,503   6,779,003   6,674,686   6,840,503   6,674,686 
          
Ending Common Shares Issued 25,689,730   25,684,916   25,614,585   25,689,730   25,614,585 
          
Tangible Book Value Per Common Share$26.47  $27.07  $25.22  $26.47  $25.22 
          
Tangible Common Equity/Tangible Assets 10.19%  10.47%  9.91%  10.19%  9.91%
Adjusted Tangible Common Equity/Adjusted Tangible Assets 12.37%  12.29%  11.99%  12.37%  11.99%
          
Net Interest Income$51,694  $49,273  $48,599  $196,679  $197,035 
Plus:  Noninterest Income 11,876   11,917   17,208   56,844   49,858 
Minus:  Noninterest Expense (30,653)  (30,393)  (29,445)  (125,084)  (130,710)
          
Pretax Pre-Provision Earnings$32,917  $30,797  $36,362  $128,439  $116,183 
                    

Adjusted core noninterest income, adjusted core noninterest expense, adjusted earnings before income taxes, core operational profitability, core operational diluted earnings per common share and adjusted core efficiency ratio are non-GAAP financial measures calculated based on GAAP amounts. These adjusted amounts are calculated by excluding the impact of the net gain on Visa shares, legal accrual, and wire fraud loss and associated insurance and loss recoveries and adjustments to salaries and employee benefits expense for the periods presented below. Management considers these measures of financial performance to be meaningful to understanding the company’s core business performance for these periods.

A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

 Three Months Ended Twelve Months Ended
 Dec. 31, 2024 Sep. 30, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023
Noninterest Income$11,876  $11,917  $17,208  $56,844  $49,858 
Less: Net (Gain) Loss on Visa Shares 0   15   0   (8,996)  0 
Less: Insurance and Loss Recoveries 0   0   (6,300)  (1,000)  (6,300)
Adjusted Core Noninterest Income$11,876  $11,932  $10,908  $46,848  $43,558 
          
Noninterest Expense$30,653  $30,393  $29,445  $125,084  $130,710 
Less: Legal Accrual 0   0   0   (4,537)  0 
Less: Wire Fraud Loss 0   0   0   0   (18,058)
Plus: Salaries and Employee Benefits (1) 0   0   (453)  0   1,397 
Adjusted Core Noninterest Expense$30,653  $30,393  $28,992  $120,547  $114,049 
          
Earnings Before Income Taxes$29,226  $27,738  $36,062  $111,689  $110,333 
Adjusted Core Impact:         
Noninterest Income 0   15   (6,300)  (9,996)  (6,300)
Noninterest Expense 0   0   453   4,537   16,661 
Total Adjusted Core Impact 0   15   (5,847)  (5,459)  10,361 
Adjusted Earnings Before Income Taxes 29,226   27,753   30,215   106,230   120,694 
Tax Effect (5,036)  (4,404)  (4,996)  (16,853)  (19,119)
Core Operational Profitability (2)$24,190  $23,349  $25,219  $89,377  $101,575 
          
Diluted Earnings Per Common Share$0.94  $0.91  $1.16  $3.63  $3.65 
Impact of Adjusted Core Items 0.00   0.00   (0.18)  (0.16)  0.30 
Core Operational Diluted Earnings Per Common Share$0.94  $0.91  $0.98  $3.47  $3.95 
          
Adjusted Core Efficiency Ratio 48.22%  49.66%  48.72%  49.49%  47.40%
                    

(1)  In 2023, long-term, incentive-based compensation accruals were reduced as a result of the wire fraud loss and associated insurance and loss recoveries.
(2)  Core operational profitability was $11,000 higher and $4.4 million lower than reported net income for the three months ended September 30, 2024 and December 31, 2023, respectively. Core operational profitability was $4.1 million lower and $7.8 million higher than reported net income for the twelve months ended December 31, 2024 and 2023, respectively.

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


FAQ

What was Lakeland Financial's (LKFN) net income for Q4 2024?

Lakeland Financial reported net income of $24.2 million for Q4 2024, representing an 18% decrease from $29.6 million in Q4 2023.

How much did LKFN's core deposits grow in 2024?

LKFN's core deposits grew by $274.3 million, or 5%, reaching $5.9 billion by the end of 2024.

What was LKFN's net interest margin in Q4 2024?

LKFN's net interest margin was 3.25% in Q4 2024, showing a 9 basis point improvement from 3.16% in Q3 2024.

How much did LKFN increase its quarterly dividend in Q4 2024?

LKFN increased its quarterly dividend by 4% to $0.50 per share, compared to $0.48 in Q4 2023.

What was LKFN's total capital ratio at the end of 2024?

LKFN's total capital ratio was 15.90% at December 31, 2024, significantly above the 10% regulatory requirement.

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Lakeland Financial Corp

NASDAQ:LKFN

LKFN Rankings

#2074 Ranked by Market Cap
#1089 Ranked by Dividends

LKFN Latest News

Jan 16, 2025
Lake City Bank Promotes Stephanie R. Leniski to Executive Vice President
Jan 14, 2025
Lake City Bank Parent Announces 4% Increase in Quarterly Dividend
Nov 13, 2024
Lake City Bank Promotes Carrie A. Gutman to Chief Wealth Advisory Officer
Oct 25, 2024
Lakeland Financial Reports Third Quarter Net Income of $23.3 Million, Organic Loan Growth of 5% and Organic Deposit Growth of 4%
Sep 3, 2024
Lake City Bank Expands Downtown Campus with Building Acquisition to become the Innovation and Technology Center

LKFN Stock Data

1.78B
24.66M
3.24%
86.34%
8.71%
Banks - Regional
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United States of America
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