Lakeland Financial Reports Second Quarter Net Income of $22.5 million, and Reaches $5.0 Billion in Total Loans, Representing 5% Annual Average Loan Growth
Lakeland Financial (Nasdaq: LKFN), parent company of Lake City Bank, reported a net income of $22.5 million for Q2 2024, a 54% increase from $14.6 million in Q2 2023. Diluted EPS rose to $0.87, up 53% from $0.57 last year. However, net income fell by 4% from Q1 2024. Key metrics include a 5% loan growth to $5.03 billion and a 5% rise in core deposits to $5.60 billion. The net interest margin slightly decreased to 3.17% from 3.28% in Q2 2023. The company experienced a significant increase in nonperforming loans to $57.2 million. Pretax pre-provision earnings increased by 105% year-over-year to $35.4 million. Noninterest income surged 78% to $20.4 million, driven by a $9.0 million gain on Visa shares. The capital ratio improved to 15.54%. Lakeland Financial also opened its 54th branch in Indianapolis and reported a 10% growth in tangible book value per share to $25.34.
Lakeland Financial (Nasdaq: LKFN), la società madre di Lake City Bank, ha riportato un reddito netto di 22,5 milioni di dollari per il secondo trimestre del 2024, con un aumento del 54% rispetto ai 14,6 milioni di dollari nel secondo trimestre del 2023. L'EPS diluito è salito a 0,87 dollari, in crescita del 53% rispetto allo 0,57 dollari dell'anno scorso. Tuttavia, il reddito netto è diminuito del 4% rispetto al primo trimestre del 2024. Tra i principali indicatori, si segnala una crescita dei prestiti del 5% fino a 5,03 miliardi di dollari e un aumento del 5% nei depositi core, arrivando a 5,60 miliardi di dollari. Il margine di intermediazione netto è leggermente diminuito, passando dal 3,28% del secondo trimestre del 2023 al 3,17%. L'azienda ha registrato un significativo aumento nei prestiti non performanti, che hanno raggiunto i 57,2 milioni di dollari. Gli utili ante imposte e ante accantonamenti sono aumentati del 105% su base annua, arrivando a 35,4 milioni di dollari. Il reddito non interessato è balzato del 78%, arrivando a 20,4 milioni di dollari, grazie a un guadagno di 9,0 milioni di dollari su azioni Visa. Il rapporto di capitalizzazione è migliorato, attestandosi al 15,54%. Lakeland Financial ha anche aperto la sua 54esima filiale a Indianapolis e ha riportato una crescita del 10% del valore contabile tangibile per azione, raggiungendo i 25,34 dollari.
Lakeland Financial (Nasdaq: LKFN), la empresa matriz de Lake City Bank, reportó un ingreso neto de 22,5 millones de dólares para el segundo trimestre de 2024, un aumento del 54% en comparación con los 14,6 millones de dólares en el segundo trimestre de 2023. El EPS diluido aumentó a 0,87 dólares, un incremento del 53% respecto a los 0,57 dólares del año pasado. Sin embargo, el ingreso neto cayó un 4% respecto al primer trimestre de 2024. Los indicadores clave incluyen un crecimiento de préstamos del 5% hasta 5,03 mil millones de dólares y un aumento del 5% en los depósitos básicos, alcanzando los 5,60 mil millones de dólares. El margen de interés neto disminuyó ligeramente al 3,17%, desde el 3,28% en el segundo trimestre de 2023. La compañía experimentó un aumento significativo en los préstamos incobrables, alcanzando los 57,2 millones de dólares. Las ganancias antes de impuestos y ajustes aumentaron un 105% interanual, ascendiendo a 35,4 millones de dólares. Los ingresos no por intereses aumentaron un 78%, alcanzando los 20,4 millones de dólares, impulsados por una ganancia de 9,0 millones de dólares en acciones de Visa. El índice de capitalización mejoró al 15,54%. Lakeland Financial también abrió su 54ª sucursal en Indianápolis y reportó un crecimiento del 10% en el valor contable tangible por acción, alcanzando los 25,34 dólares.
라켈랜드 파이낸셜(Lakeland Financial)(Nasdaq: LKFN), 레이크 시티 은행의 모회사, 2024년 2분기 동안 2250만 달러의 순이익을 보고하며, 이는 2023년 2분기 1460만 달러에 비해 54% 증가한 수치입니다. 희석 EPS는 작년 0.57달러에서 53% 증가한 0.87달러로 상승했습니다. 그러나, 2024년 1분기 대비 순이익은 4% 감소했습니다. 주요 지표로는 대출 성장률 5%가 있어 50억 3000만 달러에 이르고, 핵심 예금은 5% 증가하여 56억 달러에 도달했습니다. 순이자 마진은 2023년 2분기 3.28%에서 3.17%로 약간 감소했습니다. 회사는 부실채권이 5720만 달러로 급증하는 중요한 변화를 경험했습니다. 세전 및 충당금 전 수익은 전년 대비 105% 증가하여 3540만 달러에 달했습니다. 비이자 수익은 비자 주식에서의 900만 달러의 이익 덕분에 78% 증가하여 2040만 달러에 도달했습니다. 자본비율은 15.54%로 개선되었습니다. 라켈랜드 파이낸셜은 또한 인디애나폴리스에 54번째 지점을 열었고, 주당 tangible book value가 10% 증가하여 25.34달러에 도달했다고 보고했습니다.
Lakeland Financial (Nasdaq: LKFN), la société mère de Lake City Bank, a annoncé un revenu net de 22,5 millions de dollars pour le deuxième trimestre 2024, ce qui représente une augmentation de 54 % par rapport à 14,6 millions de dollars au deuxième trimestre 2023. Le BPA dilué a augmenté à 0,87 dollar, en hausse de 53 % par rapport à 0,57 dollar l'année précédente. Cependant, le revenu net a diminué de 4 % par rapport au premier trimestre 2024. Les indicateurs clés incluent une croissance des prêts de 5 % pour atteindre 5,03 milliards de dollars et une augmentation de 5 % des dépôts de base pour atteindre 5,60 milliards de dollars. La marge d'intérêt nette a légèrement diminué à 3,17 % contre 3,28 % au deuxième trimestre 2023. L'entreprise a connu une augmentation significative des prêts non performants, qui s'élèvent à 57,2 millions de dollars. Le bénéfice avant impôt et provisions a augmenté de 105 % d'une année sur l'autre, atteignant 35,4 millions de dollars. Le revenu non lié aux intérêts a bondi de 78 % à 20,4 millions de dollars, soutenu par un gain de 9,0 millions de dollars sur des actions Visa. Le ratio de capital s'est amélioré à 15,54 %. Lakeland Financial a également ouvert sa 54ème agence à Indianapolis et a signalé une croissance de 10 % de la valeur comptable tangible par action, atteignant 25,34 dollars.
Lakeland Financial (Nasdaq: LKFN), die Muttergesellschaft der Lake City Bank, hat im 2. Quartal 2024 einen Nettogewinn von 22,5 Millionen US-Dollar gemeldet, was einem Anstieg von 54% gegenüber 14,6 Millionen US-Dollar im 2. Quartal 2023 entspricht. Der verwässerte Gewinn pro Aktie (EPS) stieg auf 0,87 US-Dollar, ein Anstieg um 53% im Vergleich zu 0,57 US-Dollar im Vorjahr. Der Nettogewinn fiel jedoch um 4% gegenüber dem 1. Quartal 2024. Die wichtigsten Kennzahlen umfassen ein Wachstum des Kreditvolumens um 5% auf 5,03 Milliarden US-Dollar sowie einen Anstieg der Kern-Einlagen um 5% auf 5,60 Milliarden US-Dollar. Die Nettokreditmarge verringerte sich leicht auf 3,17% von 3,28% im 2. Quartal 2023. Das Unternehmen verzeichnete einen signifikanten Anstieg an notleidenden Krediten auf 57,2 Millionen US-Dollar. Die Erträge vor Steuern und vor Rückstellungen stiegen im Jahresvergleich um 105% auf 35,4 Millionen US-Dollar. Das nebengewinnbringende Einkommen stieg um 78% auf 20,4 Millionen US-Dollar, angetrieben durch einen Gewinn von 9,0 Millionen US-Dollar aus Visa-Aktien. Das Kapitalverhältnis verbesserte sich auf 15,54%. Lakeland Financial eröffnete zudem seine 54. Filiale in Indianapolis und berichtete von einem 10%igen Anstieg des materiellen Buchwerts pro Aktie auf 25,34 US-Dollar.
- Net income increased by 54% year-over-year to $22.5 million.
- Diluted EPS grew by 53% to $0.87.
- Pretax pre-provision earnings rose by 105% year-over-year to $35.4 million.
- Core deposits grew by 5% to $5.60 billion.
- Noninterest income increased by 78%, largely due to a $9.0 million gain on Visa shares.
- Tangible book value per share increased by 10% to $25.34.
- Capital ratio improved to 15.54%.
- Net income decreased by 4% from Q1 2024.
- Nonperforming loans surged to $57.2 million, a significant increase.
- Provision for credit losses increased to $8.5 million from $800,000 in Q2 2023.
Insights
Lakeland Financial's Q2 2024 results reveal a strong financial performance with several positive indicators:
- Net income increased by 54% year-over-year to $22.5 million
- Diluted EPS rose 53% to $0.87
- Return on average equity improved to 14.19% from 9.70%
- Total loans reached a milestone of $5.0 billion, representing 5% annual average loan growth
The bank's capital position remains robust, with a total risk-based capital ratio of 15.54%, well above the 10% 'well-capitalized' threshold. This strong capital base provides a solid foundation for future growth and stability.
However, there are some areas of concern:
- Nonperforming loans increased significantly from $18.0 million to $57.2 million
- Watch list loans as a percentage of total loans rose to 5.31% from 3.83%
- The provision for credit losses jumped to $8.5 million, up from $800,000 in Q2 2023
These credit quality issues, particularly the downgrade of a single $43.3 million commercial relationship, warrant close monitoring. While the bank's overall performance is strong, investors should keep an eye on asset quality trends in the coming quarters.
WARSAW, Ind., July 25, 2024 (GLOBE NEWSWIRE) -- Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported net income of
Pretax pre-provision earnings, which is a non-GAAP measure, were
“We are pleased to report healthy loan and core deposit growth during the first six months of 2024. While the financial services sector continues to battle the impact of higher interest rates, we are pleased with our overall operating performance in 2024. We have experienced healthy increases in core noninterest income categories, which have contributed to annual revenue growth of
The company further reported net income of
Quarterly Financial Performance
Second Quarter 2024 versus Second Quarter 2023 highlights:
- Return on average equity of
14.19% , compared to9.70% - Return on average assets of
1.37% , compared to0.91% - Tangible book value per share grew by
$2.37 , or10% , to$25.34 - Average loans grew by
$237.1 million , or5% , to$5.03 billion - Average investments declined by
$92.1 million , or8% - Core deposit growth of
$247.8 million , or5% - Net interest margin of
3.17% versus3.28% - Noninterest income growth of
$8.9 million , or78% - Net gain on Visa shares of
$9.0 million - Revenue improves by
15% to$68.7 million - Noninterest expense declined by
$9.4 million , or22% - Provision expense of
$8.5 million , compared to$800,000 - Net charge offs of
$949,000 versus net recoveries of$43,000 - Nonperforming loans increased from
$18.0 million to$57.2 million - Watch list loans as a percentage of total loans increased to
5.31% from3.83% - Average equity to average assets increased 23 basis points to
9.62% - Total risk-based capital ratio of
15.54% , compared to14.93% - Cash dividends per share increased by
$0.02 , or4% , to$0.48 per share - Tangible capital ratio improved to
9.91% , compared to9.04%
Second Quarter 2024 versus First Quarter 2024 highlights:
- Return on average equity of
14.19% , compared to14.59% - Return on average assets of
1.37% , compared to1.44% - Average loans grew by
$63.8 million , or1% , to$5.03 billion - Average investments declined by
$39.7 million , or3% - Core deposits increased by
$170.2 million , or3% - Net interest margin improved 2 basis points, or
1% - Noninterest income increased by
$7.8 million , or62% - Noninterest expense increased by
$2.6 million , or9% - Provision expense of
$8.5 million compared to$1.5 million - Net charge offs of
$949,000 compared to$312,000 - Nonperforming loans increased from
$14.8 million to$57.2 million - Watch list loans as a percentage of total loans increased to
5.31% from3.67% - Total risk-based capital ratio improved to
15.54% from15.46% - Tangible capital ratio of
9.91% , compared to9.80% - Tangible common equity growth of
$7.6 million , or1%
The company’s performance in the second quarter was impacted by two non-routine events. During the quarter, the bank recognized
Capital Strength
The company’s total capital as a percentage of risk-weighted assets improved to
The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to
“Strong capital levels are critical to the bank’s ability to grow our balance sheet and result from our long and consistent track record of profitability,” commented Kristin L. Pruitt, President. “Our capital position provides stability to support our continued balance sheet growth, and also provides for our dividend growth for shareholders.”
As announced on July 9, 2024, the board of directors approved a cash dividend for the second quarter of
Loan Portfolio
Average total loans of
“We are pleased to have crossed the
Total loans increased by
Commercial loan originations for the second quarter included approximately
Diversified Deposit Base
The bank's diversified deposit base has remained stable on a year over year basis and on a linked quarter basis.
| DEPOSIT DETAIL (unaudited, in thousands) | |||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||||||||
| Retail | $ | 1,724,777 | 29.9 | % | $ | 1,770,007 | 31.5 | % | $ | 1,821,607 | 33.6 | % | |||||
| Commercial | 2,150,127 | 37.3 | 2,117,536 | 37.7 | 2,082,564 | 38.4 | |||||||||||
| Public fund | 1,727,593 | 30.0 | 1,544,775 | 27.5 | 1,450,527 | 26.7 | |||||||||||
| Core deposits | 5,602,497 | 97.2 | 5,432,318 | 96.7 | 5,354,698 | 98.7 | |||||||||||
| Brokered deposits | 161,040 | 2.8 | 185,767 | 3.3 | 68,361 | 1.3 | |||||||||||
| Total | $ | 5,763,537 | 100.0 | % | $ | 5,618,085 | 100.0 | % | $ | 5,423,059 | 100.0 | % | |||||
Total deposits increased
Core deposit composition remains stable with commercial deposits accounting for
“We are pleased that core deposits represent
On a linked quarter basis, total deposits increased
Average total deposits were
On a linked quarter basis, average total deposits increased by
Checking account trends compared to June 30, 2023, demonstrate average aggregate checking account balance growth of
Deposits not covered by FDIC deposit insurance as a percentage of total deposits were
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 June 30, 2024, the company had access to an aggregate of
Investment Portfolio Overview
Total investment securities were
Net Interest Margin
Net interest margin was
Linked quarter net interest margin expanded by 2 basis points to
“The expansion of net interest margin on a linked quarter basis is directionally encouraging and highlights the positive impact of loan growth on earning asset yields. In addition, we have successfully tested deposit rate sensitivity for selective products and will continue to evaluate additional opportunities in the future,” stated Lisa M. O’Neill, Executive Vice President, and Chief Financial Officer. “Our reduced asset sensitivity posture positions the bank well for the anticipated Federal Reserve Bank easing that is expected to occur in the second half of 2024.”
The cumulative loan beta, which measures the sensitivity of a bank's average loan yield to changes in short-term interest rates, is
Net interest income was
Asset Quality
The company recorded a provision for credit losses of
The ratio of allowance for credit losses to total loans was
Nonperforming assets increased
Total individually analyzed and watch list loans increased by
“While we have not experienced any broad-based loan portfolio concerns, we are disappointed by the increase in our nonperforming loans, driven by the single industrial credit relationship. We are working closely with the borrower to improve the operating performance of the business,” stated Findlay. “Encouragingly, the second quarter Commercial Portfolio Reviews did not identify any meaningful shifts in credit quality across the bank’s diversified loan portfolio,” Findlay continued. “We continue to stress test our portfolio, particularly on the interest rate front, and have not identified any meaningful concerns. In addition, our commercial real estate portfolio continues to be a focus, and while we have identified a few downgrades in that portfolio, the portfolio is performing well overall. Finally, with an allowance for credit losses at
Noninterest Income
The company’s noninterest income increased
Noninterest income for the second quarter of 2024 increased by
Noninterest income increased by
Noninterest Expense
Noninterest expense decreased
On a linked quarter basis, noninterest expense increased by
Noninterest expense decreased by
“We continue to invest in the disciplined growth of the bank with a focus on people and technology. Our teams have grown to support revenue generation positions, technology, data analytics, and credit support functions,” stated Findlay. “We are also thrilled to support our annual internship program with seventeen interns that are participating in numerous departments throughout the bank and support our talent generation pipeline.”
The company’s efficiency ratio was
The company's efficiency ratio was
Information regarding Lakeland Financial Corporation may be accessed on the home page of its subsidiary, Lake City Bank, at lakecitybank.com. The company’s common stock is traded on the Nasdaq Global Select Market under “LKFN.” Lake City Bank, a
This document contains, and future oral and written statements of the company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, 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 SECOND QUARTER 2024 FINANCIAL HIGHLIGHTS | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| (Unaudited – Dollars in thousands, except per share data) | June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||
| END OF PERIOD BALANCES | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Assets | $ | 6,568,807 | $ | 6,566,861 | $ | 6,509,546 | $ | 6,568,807 | $ | 6,509,546 | |||||||||
| Investments | 1,123,803 | 1,144,816 | 1,191,139 | 1,123,803 | 1,191,139 | ||||||||||||||
| Loans | 5,052,341 | 4,997,559 | 4,862,260 | 5,052,341 | 4,862,260 | ||||||||||||||
| Allowance for Credit Losses | 80,711 | 73,180 | 72,058 | 80,711 | 72,058 | ||||||||||||||
| Deposits | 5,763,537 | 5,618,085 | 5,423,059 | 5,763,537 | 5,423,059 | ||||||||||||||
| Brokered Deposits | 161,040 | 185,767 | 68,361 | 161,040 | 68,361 | ||||||||||||||
| Core Deposits (1) | 5,602,497 | 5,432,318 | 5,354,698 | 5,602,497 | 5,354,698 | ||||||||||||||
| Total Equity | 654,590 | 647,009 | 591,995 | 654,590 | 591,995 | ||||||||||||||
| Goodwill Net of Deferred Tax Assets | 3,803 | 3,803 | 3,803 | 3,803 | 3,803 | ||||||||||||||
| Tangible Common Equity (2) | 650,787 | 643,206 | 588,192 | 650,787 | 588,192 | ||||||||||||||
| Adjusted Tangible Common Equity (2) | 820,534 | 809,395 | 765,090 | 820,534 | 765,090 | ||||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||
| Total Assets | $ | 6,642,954 | $ | 6,554,468 | $ | 6,432,929 | $ | 6,598,711 | $ | 6,422,562 | |||||||||
| Earning Assets | 6,295,281 | 6,216,929 | 6,096,284 | 6,256,105 | 6,082,009 | ||||||||||||||
| Investments | 1,118,776 | 1,158,503 | 1,210,870 | 1,138,639 | 1,230,421 | ||||||||||||||
| Loans | 5,034,851 | 4,971,020 | 4,797,742 | 5,002,935 | 4,761,784 | ||||||||||||||
| Total Deposits | 5,819,962 | 5,630,431 | 5,551,145 | 5,725,196 | 5,519,545 | ||||||||||||||
| Interest Bearing Deposits | 4,589,059 | 4,356,328 | 4,100,749 | 4,472,693 | 3,963,668 | ||||||||||||||
| Interest Bearing Liabilities | 4,666,136 | 4,532,137 | 4,287,167 | 4,599,136 | 4,177,658 | ||||||||||||||
| Total Equity | 638,999 | 645,007 | 603,999 | 642,003 | 594,852 | ||||||||||||||
| INCOME STATEMENT DATA | |||||||||||||||||||
| Net Interest Income | $ | 48,296 | $ | 47,416 | $ | 48,524 | $ | 95,712 | $ | 100,043 | |||||||||
| Net Interest Income-Fully Tax Equivalent | 49,493 | 48,683 | 49,842 | 98,176 | 102,727 | ||||||||||||||
| Provision for Credit Losses | 8,480 | 1,520 | 800 | 10,000 | 5,150 | ||||||||||||||
| Noninterest Income | 20,439 | 12,612 | 11,501 | 33,051 | 21,815 | ||||||||||||||
| Noninterest Expense | 33,333 | 30,705 | 42,734 | 64,038 | 72,168 | ||||||||||||||
| Net Income | 22,549 | 23,401 | 14,611 | 45,950 | 38,889 | ||||||||||||||
| Pretax Pre-Provision Earnings (2) | 35,402 | 29,323 | 17,291 | 64,725 | 49,690 | ||||||||||||||
| PER SHARE DATA | |||||||||||||||||||
| Basic Net Income Per Common Share | $ | 0.88 | $ | 0.91 | $ | 0.57 | $ | 1.79 | $ | 1.52 | |||||||||
| Diluted Net Income Per Common Share | 0.87 | 0.91 | 0.57 | 1.78 | 1.51 | ||||||||||||||
| Cash Dividends Declared Per Common Share | 0.48 | 0.48 | 0.46 | 0.96 | 0.92 | ||||||||||||||
| Dividend Payout | 55.17 | % | 52.75 | % | 80.70 | % | 53.93 | % | 60.93 | % | |||||||||
| Book Value Per Common Share (equity per share issued) | $ | 25.49 | $ | 25.20 | $ | 23.12 | $ | 25.49 | $ | 23.12 | |||||||||
| Tangible Book Value Per Common Share (2) | 25.34 | 25.05 | 22.97 | 25.34 | 22.97 | ||||||||||||||
| Market Value – High | $ | 66.62 | $ | 73.22 | $ | 62.71 | $ | 73.22 | $ | 77.07 | |||||||||
| Market Value – Low | 57.59 | 60.56 | 43.05 | 57.59 | 43.05 | ||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
| (Unaudited – Dollars in thousands, except per share data) | June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||
| PER SHARE DATA (continued) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Basic Weighted Average Common Shares Outstanding | 25,678,231 | 25,657,063 | 25,607,663 | 25,667,647 | 25,595,412 | ||||||||||||||
| Diluted Weighted Average Common Shares Outstanding | 25,742,871 | 25,747,643 | 25,686,354 | 25,746,773 | 25,696,370 | ||||||||||||||
| KEY RATIOS | |||||||||||||||||||
| Return on Average Assets | 1.37 | % | 1.44 | % | 0.91 | % | 1.40 | % | 1.22 | % | |||||||||
| Return on Average Total Equity | 14.19 | 14.59 | 9.70 | 14.39 | 13.18 | ||||||||||||||
| Average Equity to Average Assets | 9.62 | 9.84 | 9.39 | 9.73 | 9.26 | ||||||||||||||
| Net Interest Margin | 3.17 | 3.15 | 3.28 | 3.16 | 3.41 | ||||||||||||||
| Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income) | 48.49 | 51.15 | 71.19 | 49.73 | 59.22 | ||||||||||||||
| Loans to Deposits | 87.66 | 88.95 | 89.66 | 87.66 | 89.66 | ||||||||||||||
| Investment Securities to Total Assets | 17.11 | 17.43 | 18.30 | 17.11 | 18.30 | ||||||||||||||
| Tier 1 Leverage (3) | 11.98 | 12.01 | 11.54 | 11.98 | 11.54 | ||||||||||||||
| Tier 1 Risk-Based Capital (3) | 14.29 | 14.21 | 13.68 | 14.29 | 13.68 | ||||||||||||||
| Common Equity Tier 1 (CET1) (3) | 14.29 | 14.21 | 13.68 | 14.29 | 13.68 | ||||||||||||||
| Total Capital (3) | 15.54 | 15.46 | 14.93 | 15.54 | 14.93 | ||||||||||||||
| Tangible Capital (2) | 9.91 | 9.80 | 9.04 | 9.91 | 9.04 | ||||||||||||||
| Adjusted Tangible Capital (2) | 12.18 | 12.03 | 11.45 | 12.18 | 11.45 | ||||||||||||||
| ASSET QUALITY | |||||||||||||||||||
| Loans Past Due 30 - 89 Days | $ | 1,615 | $ | 3,177 | $ | 1,207 | $ | 1,615 | $ | 1,207 | |||||||||
| Loans Past Due 90 Days or More | 26 | 7 | 8 | 26 | 8 | ||||||||||||||
| Nonaccrual Loans | 57,124 | 14,762 | 18,004 | 57,124 | 18,004 | ||||||||||||||
| Nonperforming Loans | 57,150 | 14,769 | 18,012 | 57,150 | 18,012 | ||||||||||||||
| Other Real Estate Owned | 384 | 384 | 384 | 384 | 384 | ||||||||||||||
| Other Nonperforming Assets | 90 | 78 | 20 | 90 | 20 | ||||||||||||||
| Total Nonperforming Assets | 57,624 | 15,231 | 18,416 | 57,624 | 18,416 | ||||||||||||||
| Individually Analyzed Loans | 78,533 | 15,181 | 18,465 | 78,533 | 18,465 | ||||||||||||||
| Non-Individually Analyzed Watch List Loans | 189,726 | 168,133 | 167,562 | 189,726 | 167,562 | ||||||||||||||
| Total Individually Analyzed and Watch List Loans | 268,259 | 183,314 | 186,027 | 268,259 | 186,027 | ||||||||||||||
| Gross Charge Offs | 1,076 | 504 | 390 | 1,580 | 6,286 | ||||||||||||||
| Recoveries | 127 | 192 | 433 | 319 | 588 | ||||||||||||||
| Net Charge Offs/(Recoveries) | 949 | 312 | (43 | ) | 1,261 | 5,698 | |||||||||||||
| Net Charge Offs/(Recoveries) to Average Loans | 0.08 | % | 0.03 | % | 0.00 | % | 0.05 | % | 0.24 | % | |||||||||
| Credit Loss Reserve to Loans | 1.60 | 1.46 | 1.48 | 1.60 | 1.48 | ||||||||||||||
| Credit Loss Reserve to Nonperforming Loans | 141.23 | 495.51 | 400.06 | 141.23 | 400.06 | ||||||||||||||
| Nonperforming Loans to Loans | 1.13 | 0.30 | 0.37 | 1.13 | 0.37 | ||||||||||||||
| Nonperforming Assets to Assets | 0.88 | 0.23 | 0.28 | 0.88 | 0.28 | ||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
| (Unaudited – Dollars in thousands, except per share data) | June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||||
| ASSET QUALITY (continued) | |||||||||||||||||||
| Total Individually Analyzed and Watch List Loans to Total Loans | 5.31 | % | 3.67 | % | 3.83 | % | 5.31 | % | 3.83 | % | |||||||||
| OTHER DATA | |||||||||||||||||||
| Full Time Equivalent Employees | 653 | 628 | 632 | 653 | 632 | ||||||||||||||
| Offices | 53 | 53 | 53 | 53 | 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 June 30, 2024 are preliminary until the Call Report is filed.
| CONSOLIDATED BALANCE SHEETS (in thousands, except share data) | |||||||
| | June 30, 2024 | December 31, 2023 | |||||
| | (Unaudited) | | |||||
| ASSETS | |||||||
| Cash and due from banks | $ | 60,887 | $ | 70,451 | |||
| Short-term investments | 60,290 | 81,373 | |||||
| Total cash and cash equivalents | 121,177 | 151,824 | |||||
| | |||||||
| Securities available-for-sale, at fair value | 993,057 | 1,051,728 | |||||
| Securities held-to-maturity, at amortized cost (fair value of | 130,746 | 129,918 | |||||
| Real estate mortgage loans held-for-sale | 399 | 1,158 | |||||
| | |||||||
| Loans, net of allowance for credit losses of | 4,971,630 | 4,844,562 | |||||
| | |||||||
| Land, premises and equipment, net | 58,793 | 57,899 | |||||
| Bank owned life insurance | 110,985 | 109,114 | |||||
| Federal Reserve and Federal Home Loan Bank stock | 21,420 | 21,420 | |||||
| Accrued interest receivable | 30,681 | 30,011 | |||||
| Goodwill | 4,970 | 4,970 | |||||
| Other assets | 124,949 | 121,425 | |||||
| Total assets | $ | 6,568,807 | $ | 6,524,029 | |||
| | |||||||
| | |||||||
| LIABILITIES | |||||||
| Noninterest bearing deposits | $ | 1,212,989 | $ | 1,353,477 | |||
| Interest bearing deposits | 4,550,548 | 4,367,048 | |||||
| Total deposits | 5,763,537 | 5,720,525 | |||||
| Federal Funds purchased | 55,000 | 0 | |||||
| Federal Home Loan Bank advances | 0 | 50,000 | |||||
| Total borrowings | 55,000 | 50,000 | |||||
| Accrued interest payable | 15,354 | 20,893 | |||||
| Other liabilities | 80,326 | 82,818 | |||||
| Total liabilities | 5,914,217 | 5,874,236 | |||||
| | |||||||
| STOCKHOLDERS’ EQUITY | |||||||
| Common stock: 90,000,000 shares authorized, no par value | |||||||
| 25,968,167 shares issued and 25,503,744 outstanding as of June 30, 2024 | |||||||
| 25,903,686 shares issued and 25,430,566 outstanding as of December 31, 2023 | 126,871 | 127,692 | |||||
| Retained earnings | 713,541 | 692,760 | |||||
| Accumulated other comprehensive income (loss) | (170,458 | ) | (155,195 | ) | |||
| Treasury stock, at cost (464,423 shares and 473,120 shares as of June 30, 2024 and December 31, 2023, respectively) | (15,453 | ) | (15,553 | ) | |||
| Total stockholders’ equity | 654,501 | 649,704 | |||||
| Noncontrolling interest | 89 | 89 | |||||
| Total equity | 654,590 | 649,793 | |||||
| Total liabilities and equity | $ | 6,568,807 | $ | 6,524,029 | |||
| CONSOLIDATED STATEMENTS OF INCOME (unaudited - in thousands, except share and per share data) | ||||||||||||||
| | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| | 2024 | 2023 | 2024 | 2023 | ||||||||||
| NET INTEREST INCOME | ||||||||||||||
| Interest and fees on loans | ||||||||||||||
| Taxable | $ | 84,226 | $ | 75,047 | $ | 166,268 | $ | 144,589 | ||||||
| Tax exempt | 632 | 960 | 1,532 | 1,861 | ||||||||||
| Interest and dividends on securities | ||||||||||||||
| Taxable | 3,104 | 3,376 | 6,143 | 6,889 | ||||||||||
| Tax exempt | 3,932 | 4,064 | 7,879 | 8,364 | ||||||||||
| Other interest income | 1,842 | 1,035 | 2,948 | 1,999 | ||||||||||
| Total interest income | 93,736 | 84,482 | 184,770 | 163,702 | ||||||||||
| | | | | | ||||||||||
| Interest on deposits | 44,363 | 33,611 | 85,527 | 58,529 | ||||||||||
| Interest on short-term borrowings | 1,077 | 2,347 | 3,531 | 5,130 | ||||||||||
| Total interest expense | 45,440 | 35,958 | 89,058 | 63,659 | ||||||||||
| | | | | | ||||||||||
| NET INTEREST INCOME | 48,296 | 48,524 | 95,712 | 100,043 | ||||||||||
| | | | | | ||||||||||
| Provision for credit losses | 8,480 | 800 | 10,000 | 5,150 | ||||||||||
| | | | | | ||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 39,816 | 47,724 | 85,712 | 94,893 | ||||||||||
| | | | | | ||||||||||
| NONINTEREST INCOME | ||||||||||||||
| Wealth advisory fees | 2,597 | 2,271 | 5,052 | 4,471 | ||||||||||
| Investment brokerage fees | 478 | 428 | 1,000 | 962 | ||||||||||
| Service charges on deposit accounts | 2,806 | 2,726 | 5,497 | 5,356 | ||||||||||
| Loan and service fees | 3,048 | 3,002 | 5,900 | 5,848 | ||||||||||
| Merchant and interchange fee income | 892 | 929 | 1,755 | 1,806 | ||||||||||
| Bank owned life insurance income | 890 | 693 | 1,926 | 1,384 | ||||||||||
| Interest rate swap fee income | 0 | 794 | 0 | 794 | ||||||||||
| Mortgage banking income (loss) | 23 | (35 | ) | 75 | (134 | ) | ||||||||
| Net securities gains (losses) | 0 | 3 | (46 | ) | 19 | |||||||||
| Net gain on Visa shares | 9,011 | 0 | 9,011 | 0 | ||||||||||
| Other income | 694 | 690 | 2,881 | 1,309 | ||||||||||
| Total noninterest income | 20,439 | 11,501 | 33,051 | 21,815 | ||||||||||
| | | | | | ||||||||||
| NONINTEREST EXPENSE | ||||||||||||||
| Salaries and employee benefits | 16,158 | 11,374 | 32,991 | 27,437 | ||||||||||
| Net occupancy expense | 1,698 | 1,681 | 3,438 | 3,253 | ||||||||||
| Equipment costs | 1,343 | 1,426 | 2,755 | 2,864 | ||||||||||
| Data processing fees and supplies | 3,812 | 3,474 | 7,651 | 6,926 | ||||||||||
| Corporate and business development | 1,265 | 1,298 | 2,646 | 2,729 | ||||||||||
| FDIC insurance and other regulatory fees | 816 | 803 | 1,605 | 1,598 | ||||||||||
| Professional fees | 2,123 | 2,049 | 4,586 | 4,170 | ||||||||||
| Wire fraud loss | 0 | 18,058 | 0 | 18,058 | ||||||||||
| Other expense | 6,118 | 2,571 | 8,366 | 5,133 | ||||||||||
| Total noninterest expense | 33,333 | 42,734 | 64,038 | 72,168 | ||||||||||
| | | | | | ||||||||||
| INCOME BEFORE INCOME TAX EXPENSE | 26,922 | 16,491 | 54,725 | 44,540 | ||||||||||
| Income tax expense | 4,373 | 1,880 | 8,775 | 5,651 | ||||||||||
| NET INCOME | $ | 22,549 | $ | 14,611 | $ | 45,950 | $ | 38,889 | ||||||
| | | | | | ||||||||||
| BASIC WEIGHTED AVERAGE COMMON SHARES | 25,678,231 | 25,607,663 | 25,667,647 | 25,595,412 | ||||||||||
| | | | | | ||||||||||
| BASIC EARNINGS PER COMMON SHARE | $ | 0.88 | $ | 0.57 | $ | 1.79 | $ | 1.52 | ||||||
| | ||||||||||||||
| DILUTED WEIGHTED AVERAGE COMMON SHARES | 25,742,871 | 25,686,354 | 25,746,773 | 25,696,370 | ||||||||||
| | ||||||||||||||
| DILUTED EARNINGS PER COMMON SHARE | $ | 0.87 | $ | 0.57 | $ | 1.78 | $ | 1.51 | ||||||
| LAKELAND FINANCIAL CORPORATION LOAN DETAIL (unaudited, in thousands) | ||||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||||
| Commercial and industrial loans: | ||||||||||||||||||||
| Working capital lines of credit loans | $ | 697,754 | 13.8 | % | $ | 646,459 | 12.9 | % | $ | 618,655 | 12.7 | % | ||||||||
| Non-working capital loans | 828,523 | 16.4 | 830,817 | 16.6 | 851,232 | 17.5 | ||||||||||||||
| Total commercial and industrial loans | 1,526,277 | 30.2 | 1,477,276 | 29.5 | 1,469,887 | 30.2 | ||||||||||||||
| | ||||||||||||||||||||
| Commercial real estate and multi-family residential loans: | ||||||||||||||||||||
| Construction and land development loans | 658,345 | 13.0 | 659,712 | 13.2 | 590,860 | 12.1 | ||||||||||||||
| Owner occupied loans | 830,018 | 16.4 | 833,410 | 16.7 | 806,072 | 16.6 | ||||||||||||||
| Nonowner occupied loans | 762,365 | 15.1 | 744,346 | 14.9 | 724,799 | 14.9 | ||||||||||||||
| Multifamily loans | 252,652 | 5.0 | 239,974 | 4.8 | 254,662 | 5.2 | ||||||||||||||
| Total commercial real estate and multi-family residential loans | 2,503,380 | 49.5 | 2,477,442 | 49.6 | 2,376,393 | 48.8 | ||||||||||||||
| | ||||||||||||||||||||
| Agri-business and agricultural loans: | ||||||||||||||||||||
| Loans secured by farmland | 161,410 | 3.2 | 167,271 | 3.3 | 176,807 | 3.6 | ||||||||||||||
| Loans for agricultural production | 199,654 | 4.0 | 200,581 | 4.0 | 198,155 | 4.1 | ||||||||||||||
| Total agri-business and agricultural loans | 361,064 | 7.2 | 367,852 | 7.3 | 374,962 | 7.7 | ||||||||||||||
| | ||||||||||||||||||||
| Other commercial loans | 96,703 | 1.9 | 120,302 | 2.4 | 120,958 | 2.5 | ||||||||||||||
| Total commercial loans | 4,487,424 | 88.8 | 4,442,872 | 88.8 | 4,342,200 | 89.2 | ||||||||||||||
| | ||||||||||||||||||||
| Consumer 1-4 family mortgage loans: | ||||||||||||||||||||
| Closed end first mortgage loans | 259,094 | 5.1 | 260,633 | 5.2 | 229,078 | 4.7 | ||||||||||||||
| Open end and junior lien loans | 197,861 | 3.9 | 188,927 | 3.8 | 183,738 | 3.8 | ||||||||||||||
| Residential construction and land development loans | 12,952 | 0.3 | 10,956 | 0.2 | 18,569 | 0.4 | ||||||||||||||
| Total consumer 1-4 family mortgage loans | 469,907 | 9.3 | 460,516 | 9.2 | 431,385 | 8.9 | ||||||||||||||
| | | |||||||||||||||||||
| Other consumer loans | 97,895 | 1.9 | 97,369 | 2.0 | 92,139 | 1.9 | ||||||||||||||
| Total consumer loans | 567,802 | 11.2 | 557,885 | 11.2 | 523,524 | 10.8 | ||||||||||||||
| Subtotal | 5,055,226 | 100.0 | % | 5,000,757 | 100.0 | % | 4,865,724 | 100.0 | % | |||||||||||
| Less: Allowance for credit losses | (80,711 | ) | (73,180 | ) | | (72,058 | ) | | ||||||||||||
| Net deferred loan fees | (2,885 | ) | (3,198 | ) | | (3,464 | ) | | ||||||||||||
| Loans, net | $ | 4,971,630 | $ | 4,924,379 | | $ | 4,790,202 | | ||||||||||||
| LAKELAND FINANCIAL CORPORATION DEPOSITS AND BORROWINGS (unaudited, in thousands) | ||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||
| Noninterest bearing demand deposits | $ | 1,212,989 | $ | 1,254,200 | $ | 1,438,030 | ||
| Savings and transaction accounts: | ||||||||
| Savings deposits | 283,809 | 296,671 | 342,847 | |||||
| Interest bearing demand deposits | 3,274,179 | 3,041,025 | 2,819,385 | |||||
| Time deposits: | ||||||||
| Deposits of | 776,314 | 805,832 | 616,455 | |||||
| Other time deposits | 216,246 | 220,357 | 206,342 | |||||
| Total deposits | $ | 5,763,537 | $ | 5,618,085 | $ | 5,423,059 | ||
| FHLB advances and other borrowings | 55,000 | 200,000 | 400,000 | |||||
| Total funding sources | $ | 5,818,537 | $ | 5,818,085 | $ | 5,823,059 | ||
| LAKELAND FINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | Three Months Ended March 31, 2024 | Three Months Ended June 30, 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) | $ | 4,993,270 | $ | 84,226 | 6.78 | % | $ | 4,916,943 | $ | 82,042 | 6.71 | % | $ | 4,739,885 | $ | 75,047 | 6.35 | % | ||||||||||||
| Tax exempt (1) | 41,581 | 783 | 7.57 | 54,077 | 1,118 | 8.31 | 57,857 | 1,198 | 8.31 | |||||||||||||||||||||
| Investments: (1) | ||||||||||||||||||||||||||||||
| Securities | 1,118,776 | 8,082 | 2.91 | 1,158,503 | 8,035 | 2.79 | 1,210,870 | 8,520 | 2.82 | |||||||||||||||||||||
| Short-term investments | 2,836 | 35 | 4.96 | 2,710 | 33 | 4.90 | 2,308 | 26 | 4.52 | |||||||||||||||||||||
| Interest bearing deposits | 138,818 | 1,807 | 5.24 | 84,696 | 1,073 | 5.10 | 85,364 | 1,009 | 4.74 | |||||||||||||||||||||
| Total earning assets | $ | 6,295,281 | $ | 94,933 | 6.07 | % | $ | 6,216,929 | $ | 92,301 | 5.97 | % | $ | 6,096,284 | $ | 85,800 | 5.65 | % | ||||||||||||
| Less: Allowance for credit losses | (74,166 | ) | (72,433 | ) | (71,477 | ) | ||||||||||||||||||||||||
| Nonearning Assets | ||||||||||||||||||||||||||||||
| Cash and due from banks | 64,518 | 68,584 | 69,057 | |||||||||||||||||||||||||||
| Premises and equipment | 58,702 | 57,883 | 58,992 | |||||||||||||||||||||||||||
| Other nonearning assets | 298,619 | 283,505 | 280,073 | |||||||||||||||||||||||||||
| Total assets | $ | 6,642,954 | $ | 6,554,468 | $ | 6,432,929 | ||||||||||||||||||||||||
| Interest Bearing Liabilities | ||||||||||||||||||||||||||||||
| Savings deposits | $ | 289,107 | $ | 48 | 0.07 | % | $ | 295,650 | $ | 49 | 0.07 | % | $ | 360,173 | $ | 65 | 0.07 | % | ||||||||||||
| Interest bearing checking accounts | 3,275,502 | 33,323 | 4.09 | 3,046,958 | 30,365 | 4.01 | 2,930,285 | 27,226 | 3.73 | |||||||||||||||||||||
| Time deposits: | ||||||||||||||||||||||||||||||
| In denominations under | 217,146 | 1,871 | 3.47 | 224,139 | 1,918 | 3.44 | 198,864 | 1,147 | 2.31 | |||||||||||||||||||||
| In denominations over | 807,304 | 9,121 | 4.54 | 789,581 | 8,832 | 4.50 | 611,427 | 5,173 | 3.39 | |||||||||||||||||||||
| Miscellaneous short-term borrowings | 77,077 | 1,077 | 5.62 | 175,809 | 2,454 | 5.61 | 186,418 | 2,347 | 5.05 | |||||||||||||||||||||
| Total interest bearing liabilities | $ | 4,666,136 | $ | 45,440 | 3.92 | % | $ | 4,532,137 | $ | 43,618 | 3.87 | % | $ | 4,287,167 | $ | 35,958 | 3.36 | % | ||||||||||||
| Noninterest Bearing Liabilities | ||||||||||||||||||||||||||||||
| Demand deposits | 1,230,903 | 1,274,103 | 1,450,396 | |||||||||||||||||||||||||||
| Other liabilities | 106,916 | 103,221 | 91,367 | |||||||||||||||||||||||||||
| Stockholders' Equity | 638,999 | 645,007 | 603,999 | |||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 6,642,954 | $ | 6,554,468 | $ | 6,432,929 | ||||||||||||||||||||||||
| Interest Margin Recap | ||||||||||||||||||||||||||||||
| Interest income/average earning assets | 94,933 | 6.07 | % | 92,301 | 5.97 | % | 85,800 | 5.65 | % | |||||||||||||||||||||
| Interest expense/average earning assets | 45,440 | 2.90 | 43,618 | 2.82 | 35,958 | 2.37 | ||||||||||||||||||||||||
| Net interest income and margin | $ | 49,493 | 3.17 | % | $ | 48,683 | 3.15 | % | $ | 49,842 | 3.28 | % | ||||||||||||||||||
(1) Tax exempt income was converted to a fully taxable equivalent basis at a 21 percent tax rate. The tax equivalent rate for tax exempt loans and tax exempt securities acquired after January 1, 1983 included the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) adjustment applicable to nondeductible interest expenses. Taxable equivalent basis adjustments were
(2) Loan fees, which are immaterial in relation to total taxable loan interest income for the three months ended June 30, 2024, March 31, 2024 and June 30, 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 | Six Months Ended | ||||||||||||||||||
| Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |||||||||||||||
| Total Equity | $ | 654,590 | $ | 647,009 | $ | 591,995 | $ | 654,590 | $ | 591,995 | |||||||||
| 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 | 650,787 | 643,206 | 588,192 | 650,787 | 588,192 | ||||||||||||||
| Market Value Adjustment in AOCI | 169,747 | 166,189 | 176,898 | 169,747 | 176,898 | ||||||||||||||
| Adjusted Tangible Common Equity | 820,534 | 809,395 | 765,090 | 820,534 | 765,090 | ||||||||||||||
| Assets | $ | 6,568,807 | $ | 6,566,861 | $ | 6,509,546 | $ | 6,568,807 | $ | 6,509,546 | |||||||||
| 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 | 6,565,004 | 6,563,058 | 6,505,743 | 6,565,004 | 6,505,743 | ||||||||||||||
| Market Value Adjustment in AOCI | 169,747 | 166,189 | 176,898 | 169,747 | 176,898 | ||||||||||||||
| Adjusted Tangible Assets | 6,734,751 | 6,729,247 | 6,682,641 | 6,734,751 | 6,682,641 | ||||||||||||||
| Ending Common Shares Issued | 25,679,066 | 25,677,399 | 25,607,663 | 25,679,066 | 25,607,663 | ||||||||||||||
| Tangible Book Value Per Common Share | $ | 25.34 | $ | 25.05 | $ | 22.97 | $ | 25.34 | $ | 22.97 | |||||||||
| Tangible Common Equity/Tangible Assets | 9.91 | % | 9.80 | % | 9.04 | % | 9.91 | % | 9.04 | % | |||||||||
| Adjusted Tangible Common Equity/Adjusted Tangible Assets | 12.18 | % | 12.03 | % | 11.45 | % | 12.18 | % | 11.45 | % | |||||||||
| Net Interest Income | $ | 48,296 | $ | 47,416 | $ | 48,524 | $ | 95,712 | $ | 100,043 | |||||||||
| Plus: Noninterest Income | 20,439 | 12,612 | 11,501 | 33,051 | 21,815 | ||||||||||||||
| Minus: Noninterest Expense | (33,333 | ) | (30,705 | ) | (42,734 | ) | (64,038 | ) | (72,168 | ) | |||||||||
| Pretax Pre-Provision Earnings | $ | 35,402 | $ | 29,323 | $ | 17,291 | $ | 64,725 | $ | 49,690 | |||||||||
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 | Six Months Ended | ||||||||||||||||||
| Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |||||||||||||||
| Noninterest Income | $ | 20,439 | $ | 12,612 | $ | 11,501 | $ | 33,051 | $ | 21,815 | |||||||||
| Less: Net Gain on Visa Shares | (9,011 | ) | 0 | 0 | (9,011 | ) | 0 | ||||||||||||
| Less: Insurance Recoveries | 0 | (1,000 | ) | 0 | (1,000 | ) | 0 | ||||||||||||
| Adjusted Core Noninterest Income | $ | 11,428 | $ | 11,612 | $ | 11,501 | $ | 23,040 | $ | 21,815 | |||||||||
| Noninterest Expense | $ | 33,333 | $ | 30,705 | $ | 42,734 | $ | 64,038 | $ | 72,168 | |||||||||
| Less: Legal Accrual | (4,537 | ) | 0 | 0 | (4,537 | ) | 0 | ||||||||||||
| Less: Wire Fraud Loss | 0 | 0 | (18,058 | ) | 0 | (18,058 | ) | ||||||||||||
| Plus: Salaries and Employee Benefits (1) | 0 | 0 | 1,850 | 0 | 1,850 | ||||||||||||||
| Adjusted Core Noninterest Expense | $ | 28,796 | $ | 30,705 | $ | 26,526 | $ | 59,501 | $ | 55,960 | |||||||||
| Earnings Before Income Taxes | $ | 26,922 | $ | 27,803 | $ | 16,491 | $ | 54,725 | $ | 44,540 | |||||||||
| Adjusted Core Impact: | |||||||||||||||||||
| Noninterest Income | (9,011 | ) | (1,000 | ) | 0 | (10,011 | ) | 0 | |||||||||||
| Noninterest Expense | 4,537 | 0 | 16,208 | 4,537 | 16,208 | ||||||||||||||
| Total Adjusted Core Impact | (4,474 | ) | (1,000 | ) | 16,208 | (5,474 | ) | 16,208 | |||||||||||
| Adjusted Earnings Before Income Taxes | 22,448 | 26,803 | 32,699 | 49,251 | 60,748 | ||||||||||||||
| Tax Effect | (3,261 | ) | (4,153 | ) | (5,873 | ) | (7,414 | ) | (9,644 | ) | |||||||||
| Core Operational Profitability (2) | $ | 19,187 | $ | 22,650 | $ | 26,826 | $ | 41,837 | $ | 51,104 | |||||||||
| Diluted Earnings Per Common Share | $ | 0.87 | $ | 0.91 | $ | 0.57 | $ | 1.78 | $ | 1.51 | |||||||||
| Impact of Adjusted Core Items | (0.13 | ) | (0.03 | ) | 0.48 | (0.16 | ) | 0.48 | |||||||||||
| Core Operational Diluted Earnings Per Common Share | $ | 0.74 | $ | 0.88 | $ | 1.05 | $ | 1.62 | $ | 1.99 | |||||||||
| Adjusted Core Efficiency Ratio | 48.22 | % | 52.02 | % | 44.19 | % | 50.11 | % | 45.92 | % | |||||||||
(1) In 2023, long-term, incentive-based compensation accruals were reduced as a result of the wire fraud loss and subsequent insurance and loss recoveries.
(2) Core operational profitability was
Contact
Lisa M. O’Neill
Executive Vice President and Chief Financial Officer
(574) 267-9125
lisa.oneill@lakecitybank.com
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