Lakeland Financial Reports Third Quarter Net Income of $23.3 Million, Organic Loan Growth of 5% and Organic Deposit Growth of 4%
Lakeland Financial reported Q3 2024 net income of $23.3 million, down 8% from $25.3 million in Q3 2023. Diluted EPS decreased 7% to $0.91. The company showed organic growth with average loans up 4% to $5.06 billion and core deposits increasing 5% to $5.74 billion. The net interest margin was 3.16%, slightly down from 3.21% year-over-year. Total capital ratio improved to 15.75%, and tangible book value per share grew 25% to $27.07. Commercial loan originations reached $316 million in Q3, with line of credit usage at 41%. The company maintained strong liquidity with access to $3.7 billion in resources.
Lakeland Financial ha riportato un reddito netto per il terzo trimestre del 2024 di 23,3 milioni di dollari, in calo dell'8% rispetto ai 25,3 milioni di dollari nel terzo trimestre del 2023. L'utile per azione diluito è diminuito del 7%, attestandosi a $0,91. L'azienda ha mostrato una crescita organica con prestiti medi aumentati del 4%, raggiungendo i 5,06 miliardi di dollari e depositi core aumentati del 5%, per un totale di 5,74 miliardi di dollari. Il margine di interesse netto è stato del 3,16%, leggermente in calo rispetto al 3,21% dell'anno precedente. Il rapporto di capitale totale è migliorato al 15,75% e il valore contabile tangibile per azione è cresciuto del 25%, raggiungendo i 27,07 dollari. Le origini di prestiti commerciali hanno raggiunto i 316 milioni di dollari nel terzo trimestre, con un utilizzo della linea di credito pari al 41%. L'azienda ha mantenuto una forte liquidità con accesso a 3,7 miliardi di dollari in risorse.
Lakeland Financial reportó un ingreso neto para el tercer trimestre de 2024 de 23,3 millones de dólares, lo que representa una caída del 8% en comparación con los 25,3 millones de dólares del tercer trimestre de 2023. Las ganancias por acción diluidas disminuyeron un 7%, alcanzando los 0,91 dólares. La compañía mostró un crecimiento orgánico con préstamos promedio que aumentaron un 4% a 5,06 mil millones de dólares y depósitos principales que crecieron un 5% a 5,74 mil millones de dólares. El margen de interés neto fue del 3,16%, ligeramente por debajo del 3,21% en comparación con el año anterior. La relación total de capital mejoró al 15,75% y el valor contable tangible por acción creció un 25%, alcanzando los 27,07 dólares. Las originaciones de préstamos comerciales alcanzaron los 316 millones de dólares en el tercer trimestre, con un uso de la línea de crédito del 41%. La compañía mantuvo una fuerte liquidez con acceso a 3,7 mil millones de dólares en recursos.
라켈랜드 금융회사는 2024년 3분기 순이익이 2,330만 달러로, 2023년 3분기 2,530만 달러 대비 8% 감소했다고 보고했습니다. 희석 기준 주당 순이익은 7% 감소하여 0.91달러로 나타났습니다. 이 회사는 평균 대출이 4% 증가하여 50.6억 달러에 도달하고, 기본 예금이 5% 증가하여 57.4억 달러에 이르는 유기적인 성장을 보여주었습니다. 순이자 마진은 3.16%로, 지난해 같은 기간의 3.21%에서 약간 감소했습니다. 총 자본비율은 15.75%로 개선되었고, 주당 유형 장부가치는 25% 증가하여 27.07달러에 이르렀습니다. 상업 대출 발행액은 3분기에 3.16억 달러에 도달했으며, 신용 한도 사용률은 41%입니다. 이 회사는 37억 달러의 자원에 접근하며 강력한 유동성을 유지했습니다.
Lakeland Financial a annoncé un revenu net de 23,3 millions de dollars pour le troisième trimestre de 2024, en baisse de 8% par rapport aux 25,3 millions de dollars du troisième trimestre de 2023. Le bénéfice par action dilué a diminué de 7%, atteignant 0,91 dollar. L'entreprise a montré une croissance organique avec des prêts moyens en hausse de 4% pour atteindre 5,06 milliards de dollars et des dépôts de base augmentant de 5% pour un total de 5,74 milliards de dollars. La marge d'intérêt nette était de 3,16%, légèrement en baisse par rapport à 3,21% d'une année sur l'autre. Le ratio de capital total s'est amélioré à 15,75% et la valeur comptable tangible par action a augmenté de 25%, atteignant 27,07 dollars. Les origines de prêts commerciaux ont atteint 316 millions de dollars au troisième trimestre, avec un taux d'utilisation de la ligne de crédit de 41%. L'entreprise a maintenu une forte liquidité avec accès à 3,7 milliards de dollars de ressources.
Lakeland Financial meldete im dritten Quartal 2024 einen Nettogewinn von 23,3 Millionen Dollar, was einem Rückgang von 8% im Vergleich zu 25,3 Millionen Dollar im dritten Quartal 2023 entspricht. Der verwässerte Gewinn pro Aktie sank um 7% auf 0,91 Dollar. Das Unternehmen zeigte organisches Wachstum mit einem Anstieg der durchschnittlichen Kredite um 4% auf 5,06 Milliarden Dollar und einem Anstieg der Kern-Einlagen um 5% auf 5,74 Milliarden Dollar. Die Nettozinsspanne lag bei 3,16%, was einen leichten Rückgang von 3,21% im Vergleich zum Vorjahr darstellt. Die Gesamtkapitalquote verbesserte sich auf 15,75% und der tangible Buchwert pro Aktie stieg um 25% auf 27,07 Dollar. Die gewerblichen Kreditvergaben erreichten im dritten Quartal 316 Millionen Dollar, wobei die Nutzung der Kreditlinie bei 41% lag. Das Unternehmen hielt eine starke Liquidität mit Zugang zu 3,7 Milliarden Dollar an Ressourcen aufrecht.
- Core deposits grew by $261.2 million (5%) YoY to $5.74 billion
- Average loans increased by $214.6 million (4%) YoY to $5.06 billion
- Tangible book value per share grew 25% YoY to $27.07
- Total risk-based capital ratio improved to 15.75% from 15.13% YoY
- Nine-month net income increased 8% to $69.3 million vs 2023
- Q3 net income decreased 8% YoY to $23.3 million
- Diluted EPS declined 7% YoY to $0.91
- Net interest margin contracted to 3.16% from 3.21% YoY
- Watch list loans increased to 5.27% from 3.83% YoY
- Noninterest expense increased 4% YoY
Insights
This Q3 earnings report reveals a mixed performance for Lakeland Financial. Net income of
The bank's capital position remains robust with a total risk-based capital ratio of
The bank's liquidity position remains strong with
Notable risk factors include increasing watch list loans and high exposure to commercial real estate at
WARSAW, Ind., Oct. 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
The company further reported net income of
“Our long-term track record of serving our clients and communities through organic loan and deposit growth continued during the third quarter of 2024 and we are pleased with our performance for the quarter,” commented David M. Findlay, Chairman and Chief Executive Officer. “We continue to be encouraged by the strength of economic activity in our Indiana markets and are really well positioned to take advantage of the ongoing growth and investment we are seeing throughout our footprint.”
Quarterly Financial Performance
Third Quarter 2024 versus Third Quarter 2023 highlights:
- Tangible book value per share grew by
$5.47 , or25% , to$27.07 - Total risk-based capital ratio of
15.75% , compared to15.13% - Tangible capital ratio improved to
10.47% , compared to8.62% - Average loans grew by
$214.6 million , or4% , to$5.06 billion - Core deposit growth of
$261.2 million , or5% - Return on average equity of
13.85% , compared to16.91% - Return on average assets of
1.39% , compared to1.54% - Net interest margin of
3.16% versus3.21% - Noninterest income growth of
$1.1 million , or10% - Revenue improved by
3% to$61.2 million - Noninterest expense increased by
$1.3 million , or4% - Provision expense of
$3.1 million , compared to$400,000 - Net charge offs of
$143,000 versus$353,000 - Watch list loans as a percentage of total loans increased to
5.27% from3.83%
Third Quarter 2024 versus Second Quarter 2024 highlights:
- Tangible book value per share grew by
$1.73 , or7% - Total risk-based capital ratio improved to
15.75% from15.53% - Tangible capital ratio of
10.47% , compared to9.91% - Core deposits increased by
$138.3 million , or2% - Average loans grew by
$29.5 million , or1% , to$5.06 billion - Net interest margin of
3.16% versus3.17% - Return on average equity of
13.85% , compared to14.19% - Return on average assets of
1.39% , compared to1.37% - Noninterest income decreased by
$8.5 million , or42% - Noninterest expense decreased by
$2.9 million , or9% - Provision expense of
$3.1 million compared to$8.5 million - Watch list loans as a percentage of total loans improved to
5.27% from5.31%
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
Kristin L. Pruitt, President, commented, “Our capital structure is a critical strength of our balance sheet, as it has been for a very long time. This exceptionally strong capital retention supports our plans for continued organic growth as well as total return to shareholders through our common stock dividend.”
As announced on October 8, 2024, the board of directors approved a cash dividend for the third quarter of
Loan Portfolio
Average total loans of
Average total loans for the nine months ended September 30, 2024 were
“Loan growth has been steady in 2024 and has been funded through healthy deposit growth. We are seeing increased activity with our manufacturing clients as we experienced
Total loans, net of deferred loan fees, increased by
Commercial loan originations for the third quarter included approximately
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) | |||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||
| Retail | $ | 1,709,899 | 29.3 | % | $ | 1,724,777 | 29.9 | % | $ | 1,761,235 | 31.1 | % | |||||
| Commercial | 2,304,041 | 39.5 | 2,150,127 | 37.3 | 2,154,853 | 38.1 | |||||||||||
| Public funds | 1,726,869 | 29.6 | 1,727,593 | 30.0 | 1,563,557 | 27.7 | |||||||||||
| Core deposits | 5,740,809 | 98.4 | 5,602,497 | 97.2 | 5,479,645 | 96.9 | |||||||||||
| Brokered deposits | 96,504 | 1.6 | 161,040 | 2.8 | 177,430 | 3.1 | |||||||||||
| Total | $ | 5,837,313 | 100.0 | % | $ | 5,763,537 | 100.0 | % | $ | 5,657,075 | 100.0 | % | |||||
Total deposits increased
The change in composition of core deposits since September 30, 2023 reflects growth in commercial deposits and public funds deposits. As of September 30, 2024, commercial deposits as a percentage of total deposits increased to
Findlay noted, “We are pleased with annual core deposit growth of
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 September 30, 2023, include 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 September 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 contracted by 1 basis point to
“Net interest margin has stabilized and has responded well to the first federal fund rate decrease of 50 basis points late in the third quarter. The bank’s net interest margin expanded by 4 basis points on a linked quarter basis, excluding the impact of increased nonperforming loans. In addition, noninterest bearing deposits grew modestly during the quarter as compared to June 30, 2024. While our balance sheet continues to be assets sensitive, we are encouraged by the impact of the Federal Reserve Bank rate action,” commented Lisa M. O’Neill, Executive Vice President and Chief Financial Officer.
The cumulative loan beta, which measures the sensitivity of a bank's average loan yield to changes in short-term interest rates, was
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
“Overall, we continue to observe stable economic conditions in our Lake City Bank footprint. The commencement of the Federal Reserve Bank easing cycle will provide some interest relief to variable rate borrowers, in particular for commercial real estate clients. We believe that loan demand could accelerate for our commercial and industrial sector if the Federal Reserve Bank takes additional easing actions,” stated Findlay.
Noninterest Income
The company’s noninterest income increased
Noninterest income for the third quarter of 2024 decreased by
Noninterest income increased by
“While not robust, we are pleased to report that revenue growth for the nine months ended September 30, 2024, was
Noninterest Expense
Noninterest expense increased
On a linked quarter basis, noninterest expense decreased by
Noninterest expense decreased by
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 THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| (Unaudited – Dollars in thousands, except per share data) | September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||
| END OF PERIOD BALANCES | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Assets | $ | 6,645,371 | $ | 6,568,807 | $ | 6,426,844 | $ | 6,645,371 | $ | 6,426,844 | |||||||||
| Investments | 1,147,806 | 1,123,803 | 1,105,026 | 1,147,806 | 1,105,026 | ||||||||||||||
| Loans | 5,081,990 | 5,052,341 | 4,870,965 | 5,081,990 | 4,870,965 | ||||||||||||||
| Allowance for Credit Losses | 83,627 | 80,711 | 72,105 | 83,627 | 72,105 | ||||||||||||||
| Deposits | 5,837,313 | 5,763,537 | 5,657,075 | 5,837,313 | 5,657,075 | ||||||||||||||
| Brokered Deposits | 96,504 | 161,040 | 177,430 | 96,504 | 177,430 | ||||||||||||||
| Core Deposits (1) | 5,740,809 | 5,602,497 | 5,479,645 | 5,740,809 | 5,479,645 | ||||||||||||||
| Total Equity | 699,181 | 654,590 | 557,184 | 699,181 | 557,184 | ||||||||||||||
| Goodwill Net of Deferred Tax Assets | 3,803 | 3,803 | 3,803 | 3,803 | 3,803 | ||||||||||||||
| Tangible Common Equity (2) | 695,378 | 650,787 | 553,381 | 695,378 | 553,381 | ||||||||||||||
| Adjusted Tangible Common Equity (2) | 832,813 | 820,534 | 780,756 | 832,813 | 780,756 | ||||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||
| Total Assets | $ | 6,656,464 | $ | 6,642,954 | $ | 6,498,984 | $ | 6,618,102 | $ | 6,448,316 | |||||||||
| Earning Assets | 6,329,287 | 6,295,281 | 6,145,894 | 6,280,677 | 6,103,538 | ||||||||||||||
| Investments | 1,128,705 | 1,118,776 | 1,171,426 | 1,135,304 | 1,210,540 | ||||||||||||||
| Loans | 5,064,348 | 5,034,851 | 4,849,758 | 5,023,556 | 4,791,431 | ||||||||||||||
| Total Deposits | 5,880,177 | 5,819,962 | 5,572,466 | 5,777,234 | 5,537,379 | ||||||||||||||
| Interest Bearing Deposits | 4,635,993 | 4,589,059 | 4,154,825 | 4,527,524 | 4,028,087 | ||||||||||||||
| Interest Bearing Liabilities | 4,649,745 | 4,666,136 | 4,382,380 | 4,616,129 | 4,246,648 | ||||||||||||||
| Total Equity | 670,160 | 638,999 | 592,510 | 651,457 | 594,063 | ||||||||||||||
| INCOME STATEMENT DATA | |||||||||||||||||||
| Net Interest Income | $ | 49,273 | $ | 48,296 | $ | 48,393 | $ | 144,985 | $ | 148,436 | |||||||||
| Net Interest Income-Fully Tax Equivalent | 50,383 | 49,493 | 49,712 | 148,558 | 152,436 | ||||||||||||||
| Provision for Credit Losses | 3,059 | 8,480 | 400 | 13,059 | 5,550 | ||||||||||||||
| Noninterest Income | 11,917 | 20,439 | 10,835 | 44,968 | 32,650 | ||||||||||||||
| Noninterest Expense | 30,393 | 33,333 | 29,097 | 94,431 | 101,265 | ||||||||||||||
| Net Income | 23,338 | 22,549 | 25,252 | 69,288 | 64,141 | ||||||||||||||
| Pretax Pre-Provision Earnings (2) | 30,797 | 35,402 | 30,131 | 95,522 | 79,821 | ||||||||||||||
| PER SHARE DATA | |||||||||||||||||||
| Basic Net Income Per Common Share | $ | 0.91 | $ | 0.88 | $ | 0.99 | $ | 2.70 | $ | 2.51 | |||||||||
| Diluted Net Income Per Common Share | 0.91 | 0.87 | 0.98 | 2.69 | 2.49 | ||||||||||||||
| Cash Dividends Declared Per Common Share | 0.48 | 0.48 | 0.46 | 1.44 | 1.38 | ||||||||||||||
| Dividend Payout | 52.75 | % | 55.17 | % | 46.94 | % | 53.53 | % | 36.95 | % | |||||||||
| Book Value Per Common Share (equity per share issued) | $ | 27.22 | $ | 25.49 | $ | 21.75 | $ | 27.22 | $ | 21.75 | |||||||||
| Tangible Book Value Per Common Share (2) | 27.07 | 25.34 | 21.60 | 27.07 | 21.60 | ||||||||||||||
| Market Value – High | $ | 72.25 | $ | 66.62 | $ | 57.00 | $ | 73.22 | $ | 77.07 | |||||||||
| Market Value – Low | 57.45 | 57.59 | 44.46 | 57.45 | 43.05 | ||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| (Unaudited – Dollars in thousands, except per share data) | September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||
| PER SHARE DATA (continued) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Basic Weighted Average Common Shares Outstanding | 25,684,407 | 25,678,231 | 25,613,456 | 25,673,275 | 25,601,493 | ||||||||||||||
| Diluted Weighted Average Common Shares Outstanding | 25,767,739 | 25,742,871 | 25,693,535 | 25,754,357 | 25,709,841 | ||||||||||||||
| KEY RATIOS | |||||||||||||||||||
| Return on Average Assets | 1.39 | % | 1.37 | % | 1.54 | % | 1.40 | % | 1.33 | % | |||||||||
| Return on Average Total Equity | 13.85 | 14.19 | 16.91 | 14.21 | 14.44 | ||||||||||||||
| Average Equity to Average Assets | 10.07 | 9.62 | 9.12 | 9.84 | 9.21 | ||||||||||||||
| Net Interest Margin | 3.16 | 3.17 | 3.21 | 3.16 | 3.33 | ||||||||||||||
| Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income) | 49.67 | 48.49 | 49.13 | 49.71 | 55.92 | ||||||||||||||
| Loans to Deposits | 87.06 | 87.66 | 86.10 | 87.06 | 86.10 | ||||||||||||||
| Investment Securities to Total Assets | 17.27 | 17.11 | 17.19 | 17.27 | 17.19 | ||||||||||||||
| Tier 1 Leverage (3) | 12.18 | 11.98 | 11.64 | 12.18 | 11.64 | ||||||||||||||
| Tier 1 Risk-Based Capital (3) | 14.50 | 14.28 | 13.88 | 14.50 | 13.88 | ||||||||||||||
| Common Equity Tier 1 (CET1) (3) | 14.50 | 14.28 | 13.88 | 14.50 | 13.88 | ||||||||||||||
| Total Capital (3) | 15.75 | 15.53 | 15.13 | 15.75 | 15.13 | ||||||||||||||
| Tangible Capital (2) | 10.47 | 9.91 | 8.62 | 10.47 | 8.62 | ||||||||||||||
| Adjusted Tangible Capital (2) | 12.29 | 12.18 | 11.74 | 12.29 | 11.74 | ||||||||||||||
| ASSET QUALITY | |||||||||||||||||||
| Loans Past Due 30 - 89 Days | $ | 829 | $ | 1,615 | $ | 1,782 | $ | 829 | $ | 1,782 | |||||||||
| Loans Past Due 90 Days or More | 95 | 26 | 19 | 95 | 19 | ||||||||||||||
| Nonaccrual Loans | 57,551 | 57,124 | 16,290 | 57,551 | 16,290 | ||||||||||||||
| Nonperforming Loans | 57,646 | 57,150 | 16,309 | 57,646 | 16,309 | ||||||||||||||
| Other Real Estate Owned | 384 | 384 | 384 | 384 | 384 | ||||||||||||||
| Other Nonperforming Assets | 21 | 90 | 45 | 21 | 45 | ||||||||||||||
| Total Nonperforming Assets | 58,051 | 57,624 | 16,738 | 58,051 | 16,738 | ||||||||||||||
| Individually Analyzed Loans | 77,654 | 78,533 | 16,739 | 77,654 | 16,739 | ||||||||||||||
| Non-Individually Analyzed Watch List Loans | 189,918 | 189,726 | 169,621 | 189,918 | 169,621 | ||||||||||||||
| Total Individually Analyzed and Watch List Loans | 267,572 | 268,259 | 186,360 | 267,572 | 186,360 | ||||||||||||||
| Gross Charge Offs | 231 | 1,076 | 480 | 1,811 | 6,766 | ||||||||||||||
| Recoveries | 88 | 127 | 127 | 407 | 715 | ||||||||||||||
| Net Charge Offs/(Recoveries) | 143 | 949 | 353 | 1,404 | 6,051 | ||||||||||||||
| Net Charge Offs/(Recoveries) to Average Loans | 0.01 | % | 0.08 | % | 0.03 | % | 0.04 | % | 0.17 | % | |||||||||
| Credit Loss Reserve to Loans | 1.65 | 1.60 | 1.48 | 1.65 | 1.48 | ||||||||||||||
| Credit Loss Reserve to Nonperforming Loans | 145.07 | 141.23 | 442.11 | 145.07 | 442.11 | ||||||||||||||
| Nonperforming Loans to Loans | 1.13 | 1.13 | 0.33 | 1.13 | 0.33 | ||||||||||||||
| Nonperforming Assets to Assets | 0.87 | 0.88 | 0.26 | 0.87 | 0.26 | ||||||||||||||
| Total Individually Analyzed and Watch List Loans to Total Loans | 5.27 | % | 5.31 | % | 3.83 | % | 5.27 | % | 3.83 | % | |||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| (Unaudited – Dollars in thousands, except per share data) | September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||
| PER SHARE DATA (continued) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| OTHER DATA | |||||||||||||||||||
| Full Time Equivalent Employees | 639 | 653 | 614 | 639 | 614 | ||||||||||||||
| Offices | 54 | 53 | 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 September 30, 2024 are preliminary until the Call Report is filed.
| CONSOLIDATED BALANCE SHEETS (in thousands, except share data) | |||||||
| | September 30, 2024 | December 31, 2023 | |||||
| | (Unaudited) | | |||||
| ASSETS | |||||||
| Cash and due from banks | $ | 86,785 | $ | 70,451 | |||
| Short-term investments | 73,405 | 81,373 | |||||
| Total cash and cash equivalents | 160,190 | 151,824 | |||||
| | |||||||
| Securities available-for-sale, at fair value | 1,016,649 | 1,051,728 | |||||
| Securities held-to-maturity, at amortized cost (fair value of | 131,157 | 129,918 | |||||
| Real estate mortgage loans held-for-sale | 3,148 | 1,158 | |||||
| | |||||||
| Loans, net of allowance for credit losses of | 4,998,363 | 4,844,562 | |||||
| | |||||||
| Land, premises and equipment, net | 59,987 | 57,899 | |||||
| Bank owned life insurance | 112,075 | 109,114 | |||||
| Federal Reserve and Federal Home Loan Bank stock | 21,420 | 21,420 | |||||
| Accrued interest receivable | 28,471 | 30,011 | |||||
| Goodwill | 4,970 | 4,970 | |||||
| Other assets | 108,941 | 121,425 | |||||
| Total assets | $ | 6,645,371 | $ | 6,524,029 | |||
| | |||||||
| | |||||||
| LIABILITIES | |||||||
| Noninterest bearing deposits | $ | 1,284,527 | $ | 1,353,477 | |||
| Interest bearing deposits | 4,552,786 | 4,367,048 | |||||
| Total deposits | 5,837,313 | 5,720,525 | |||||
| Federal Funds purchased | 30,000 | 0 | |||||
| Federal Home Loan Bank advances | 0 | 50,000 | |||||
| Total borrowings | 30,000 | 50,000 | |||||
| Accrued interest payable | 14,784 | 20,893 | |||||
| Other liabilities | 64,093 | 82,818 | |||||
| Total liabilities | 5,946,190 | 5,874,236 | |||||
| | |||||||
| STOCKHOLDERS’ EQUITY | |||||||
| Common stock: 90,000,000 shares authorized, no par value | |||||||
| 25,974,017 shares issued and 25,506,084 outstanding as of September 30, 2024 | |||||||
| 25,903,686 shares issued and 25,430,566 outstanding as of December 31, 2023 | 128,346 | 127,692 | |||||
| Retained earnings | 724,550 | 692,760 | |||||
| Accumulated other comprehensive income (loss) | (138,136 | ) | (155,195 | ) | |||
| Treasury stock, at cost (467,933 shares and 473,120 shares as of September 30, 2024 and December 31, 2023, respectively) | (15,668 | ) | (15,553 | ) | |||
| Total stockholders’ equity | 699,092 | 649,704 | |||||
| Noncontrolling interest | 89 | 89 | |||||
| Total equity | 699,181 | 649,793 | |||||
| Total liabilities and equity | $ | 6,645,371 | $ | 6,524,029 | |||
| CONSOLIDATED STATEMENTS OF INCOME (unaudited - in thousands, except share and per share data) | |||||||||||||||
| | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| | 2024 | 2023 | 2024 | 2023 | |||||||||||
| NET INTEREST INCOME | |||||||||||||||
| Interest and fees on loans | |||||||||||||||
| Taxable | $ | 86,118 | $ | 78,910 | $ | 252,386 | $ | 223,499 | |||||||
| Tax exempt | 298 | 1,008 | 1,830 | 2,869 | |||||||||||
| Interest and dividends on securities | |||||||||||||||
| Taxable | 2,908 | 3,077 | 9,051 | 9,966 | |||||||||||
| Tax exempt | 3,921 | 4,023 | 11,800 | 12,387 | |||||||||||
| Other interest income | 1,773 | 1,605 | 4,721 | 3,604 | |||||||||||
| Total interest income | 95,018 | 88,623 | 279,788 | 252,325 | |||||||||||
| | | | | | |||||||||||
| Interest on deposits | 45,556 | 37,108 | 131,083 | 95,637 | |||||||||||
| Interest on short-term borrowings | 189 | 3,122 | 3,720 | 8,252 | |||||||||||
| Total interest expense | 45,745 | 40,230 | 134,803 | 103,889 | |||||||||||
| | | | | | |||||||||||
| NET INTEREST INCOME | 49,273 | 48,393 | 144,985 | 148,436 | |||||||||||
| | | | | | |||||||||||
| Provision for credit losses | 3,059 | 400 | 13,059 | 5,550 | |||||||||||
| | | | | | |||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 46,214 | 47,993 | 131,926 | 142,886 | |||||||||||
| | | | | | |||||||||||
| NONINTEREST INCOME | |||||||||||||||
| Wealth advisory fees | 2,718 | 2,298 | 7,770 | 6,769 | |||||||||||
| Investment brokerage fees | 438 | 408 | 1,438 | 1,370 | |||||||||||
| Service charges on deposit accounts | 2,835 | 2,735 | 8,332 | 8,091 | |||||||||||
| Loan and service fees | 2,955 | 2,934 | 8,855 | 8,782 | |||||||||||
| Merchant and interchange fee income | 898 | 938 | 2,653 | 2,744 | |||||||||||
| Bank owned life insurance income | 1,068 | 1,009 | 2,994 | 2,393 | |||||||||||
| Interest rate swap fee income | 0 | 0 | 0 | 794 | |||||||||||
| Mortgage banking income (loss) | (7 | ) | (50 | ) | 68 | (184 | ) | ||||||||
| Net securities gains (losses) | 0 | (35 | ) | (46 | ) | (16 | ) | ||||||||
| Net gain (loss) on Visa shares | (15 | ) | 0 | 8,996 | 0 | ||||||||||
| Other income | 1,027 | 598 | 3,908 | 1,907 | |||||||||||
| Total noninterest income | 11,917 | 10,835 | 44,968 | 32,650 | |||||||||||
| | | | | | |||||||||||
| NONINTEREST EXPENSE | |||||||||||||||
| Salaries and employee benefits | 16,476 | 15,977 | 49,467 | 43,414 | |||||||||||
| Net occupancy expense | 1,721 | 1,621 | 5,159 | 4,874 | |||||||||||
| Equipment costs | 1,452 | 1,325 | 4,207 | 4,189 | |||||||||||
| Data processing fees and supplies | 3,768 | 3,379 | 11,419 | 10,305 | |||||||||||
| Corporate and business development | 1,369 | 1,201 | 4,015 | 3,930 | |||||||||||
| FDIC insurance and other regulatory fees | 966 | 871 | 2,571 | 2,469 | |||||||||||
| Professional fees | 2,089 | 2,114 | 6,675 | 6,284 | |||||||||||
| Wire fraud loss | 0 | 0 | 0 | 18,058 | |||||||||||
| Other expense | 2,552 | 2,609 | 10,918 | 7,742 | |||||||||||
| Total noninterest expense | 30,393 | 29,097 | 94,431 | 101,265 | |||||||||||
| | | | | | |||||||||||
| INCOME BEFORE INCOME TAX EXPENSE | 27,738 | 29,731 | 82,463 | 74,271 | |||||||||||
| Income tax expense | 4,400 | 4,479 | 13,175 | 10,130 | |||||||||||
| NET INCOME | $ | 23,338 | $ | 25,252 | $ | 69,288 | $ | 64,141 | |||||||
| | | | | | |||||||||||
| BASIC WEIGHTED AVERAGE COMMON SHARES | 25,684,407 | 25,613,456 | 25,673,275 | 25,601,493 | |||||||||||
| | | | | | |||||||||||
| BASIC EARNINGS PER COMMON SHARE | $ | 0.91 | $ | 0.99 | $ | 2.70 | $ | 2.51 | |||||||
| | |||||||||||||||
| DILUTED WEIGHTED AVERAGE COMMON SHARES | 25,767,739 | 25,693,535 | 25,754,357 | 25,709,841 | |||||||||||
| | |||||||||||||||
| DILUTED EARNINGS PER COMMON SHARE | $ | 0.91 | $ | 0.98 | $ | 2.69 | $ | 2.49 | |||||||
| LAKELAND FINANCIAL CORPORATION LOAN DETAIL (unaudited, in thousands) | ||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||||||||||
| Commercial and industrial loans: | ||||||||||||||||||||
| Working capital lines of credit loans | $ | 678,079 | 13.3 | % | $ | 697,754 | 13.8 | % | $ | 589,345 | 12.1 | % | ||||||||
| Non-working capital loans | 814,804 | 16.0 | 828,523 | 16.4 | 812,875 | 16.7 | ||||||||||||||
| Total commercial and industrial loans | 1,492,883 | 29.3 | 1,526,277 | 30.2 | 1,402,220 | 28.8 | ||||||||||||||
| | ||||||||||||||||||||
| Commercial real estate and multi-family residential loans: | ||||||||||||||||||||
| Construction and land development loans | 729,293 | 14.3 | 658,345 | 13.0 | 633,920 | 13.0 | ||||||||||||||
| Owner occupied loans | 810,453 | 15.9 | 830,018 | 16.4 | 811,175 | 16.6 | ||||||||||||||
| Nonowner occupied loans | 766,821 | 15.1 | 762,365 | 15.1 | 740,783 | 15.2 | ||||||||||||||
| Multifamily loans | 243,283 | 4.8 | 252,652 | 5.0 | 236,581 | 4.8 | ||||||||||||||
| Total commercial real estate and multi-family residential loans | 2,549,850 | 50.1 | 2,503,380 | 49.5 | 2,422,459 | 49.6 | ||||||||||||||
| | ||||||||||||||||||||
| Agri-business and agricultural loans: | ||||||||||||||||||||
| Loans secured by farmland | 157,413 | 3.1 | 161,410 | 3.2 | 183,241 | 3.8 | ||||||||||||||
| Loans for agricultural production | 200,971 | 4.0 | 199,654 | 4.0 | 197,287 | 4.0 | ||||||||||||||
| Total agri-business and agricultural loans | 358,384 | 7.1 | 361,064 | 7.2 | 380,528 | 7.8 | ||||||||||||||
| | ||||||||||||||||||||
| Other commercial loans | 94,309 | 1.9 | 96,703 | 1.9 | 125,939 | 2.6 | ||||||||||||||
| Total commercial loans | 4,495,426 | 88.4 | 4,487,424 | 88.8 | 4,331,146 | 88.8 | ||||||||||||||
| | ||||||||||||||||||||
| Consumer 1-4 family mortgage loans: | ||||||||||||||||||||
| Closed end first mortgage loans | 261,462 | 5.1 | 259,094 | 5.1 | 247,114 | 5.1 | ||||||||||||||
| Open end and junior lien loans | 210,275 | 4.1 | 197,861 | 3.9 | 189,611 | 3.9 | ||||||||||||||
| Residential construction and land development loans | 14,200 | 0.3 | 12,952 | 0.3 | 12,888 | 0.3 | ||||||||||||||
| Total consumer 1-4 family mortgage loans | 485,937 | 9.5 | 469,907 | 9.3 | 449,613 | 9.3 | ||||||||||||||
| | | |||||||||||||||||||
| Other consumer loans | 103,547 | 2.1 | 97,895 | 1.9 | 93,737 | 1.9 | ||||||||||||||
| Total consumer loans | 589,484 | 11.6 | 567,802 | 11.2 | 543,350 | 11.2 | ||||||||||||||
| Subtotal | 5,084,910 | 100.0 | % | 5,055,226 | 100.0 | % | 4,874,496 | 100.0 | % | |||||||||||
| Less: Allowance for credit losses | (83,627 | ) | (80,711 | ) | | (72,105 | ) | | ||||||||||||
| Net deferred loan fees | (2,920 | ) | (2,885 | ) | | (3,531 | ) | | ||||||||||||
| Loans, net | $ | 4,998,363 | $ | 4,971,630 | | $ | 4,798,860 | | ||||||||||||
| LAKELAND FINANCIAL CORPORATION DEPOSITS AND BORROWINGS (unaudited, in thousands) | ||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||
| Noninterest bearing demand deposits | $ | 1,284,527 | $ | 1,212,989 | $ | 1,377,650 | ||
| Savings and transaction accounts: | ||||||||
| Savings deposits | 276,468 | 283,809 | 315,651 | |||||
| Interest bearing demand deposits | 3,273,405 | 3,274,179 | 2,891,683 | |||||
| Time deposits: | ||||||||
| Deposits of | 787,095 | 776,314 | 756,107 | |||||
| Other time deposits | 215,818 | 216,246 | 315,984 | |||||
| Total deposits | $ | 5,837,313 | $ | 5,763,537 | $ | 5,657,075 | ||
| FHLB advances and other borrowings | 30,000 | 55,000 | 90,000 | |||||
| Total funding sources | $ | 5,867,313 | $ | 5,818,537 | $ | 5,747,075 | ||
| LAKELAND FINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS (UNAUDITED) | ||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2024 | Three Months Ended June 30, 2024 | Three Months Ended September 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) | $ | 5,037,855 | $ | 86,118 | 6.80 | % | $ | 4,993,270 | $ | 84,226 | 6.78 | % | $ | 4,791,156 | $ | 78,910 | 6.53 | % | ||||||||||||
| Tax exempt (1) | 26,493 | 366 | 5.50 | 41,581 | 783 | 7.57 | 58,602 | 1,258 | 8.52 | |||||||||||||||||||||
| Investments: (1) | ||||||||||||||||||||||||||||||
| Securities | 1,128,705 | 7,871 | 2.77 | 1,118,776 | 8,082 | 2.91 | 1,171,426 | 8,169 | 2.77 | |||||||||||||||||||||
| Short-term investments | 2,841 | 35 | 4.90 | 2,836 | 35 | 4.96 | 2,533 | 29 | 4.54 | |||||||||||||||||||||
| Interest bearing deposits | 133,393 | 1,738 | 5.18 | 138,818 | 1,807 | 5.24 | 122,177 | 1,576 | 5.12 | |||||||||||||||||||||
| Total earning assets | $ | 6,329,287 | $ | 96,128 | 6.04 | % | $ | 6,295,281 | $ | 94,933 | 6.07 | % | $ | 6,145,894 | $ | 89,942 | 5.81 | % | ||||||||||||
| Less: Allowance for credit losses | (81,353 | ) | (74,166 | ) | (71,997 | ) | ||||||||||||||||||||||||
| Nonearning Assets | ||||||||||||||||||||||||||||||
| Cash and due from banks | 63,744 | 64,518 | 68,669 | |||||||||||||||||||||||||||
| Premises and equipment | 59,493 | 58,702 | 58,782 | |||||||||||||||||||||||||||
| Other nonearning assets | 285,293 | 298,619 | 297,636 | |||||||||||||||||||||||||||
| Total assets | $ | 6,656,464 | $ | 6,642,954 | $ | 6,498,984 | ||||||||||||||||||||||||
| Interest Bearing Liabilities | ||||||||||||||||||||||||||||||
| Savings deposits | $ | 280,180 | $ | 45 | 0.06 | % | $ | 289,107 | $ | 48 | 0.07 | % | $ | 329,557 | $ | 57 | 0.07 | % | ||||||||||||
| Interest bearing checking accounts | 3,295,911 | 33,822 | 4.08 | 3,275,502 | 33,323 | 4.09 | 2,873,795 | 27,891 | 3.85 | |||||||||||||||||||||
| Time deposits: | ||||||||||||||||||||||||||||||
| In denominations under | 215,020 | 1,914 | 3.54 | 217,146 | 1,871 | 3.47 | 211,039 | 1,507 | 2.83 | |||||||||||||||||||||
| In denominations over | 844,882 | 9,775 | 4.60 | 807,304 | 9,121 | 4.54 | 740,434 | 7,654 | 4.10 | |||||||||||||||||||||
| Miscellaneous short-term borrowings | 13,752 | 189 | 5.48 | 77,077 | 1,077 | 5.62 | 227,555 | 3,121 | 5.44 | |||||||||||||||||||||
| Total interest bearing liabilities | $ | 4,649,745 | $ | 45,745 | 3.91 | % | $ | 4,666,136 | $ | 45,440 | 3.92 | % | $ | 4,382,380 | $ | 40,230 | 3.64 | % | ||||||||||||
| Noninterest Bearing Liabilities | ||||||||||||||||||||||||||||||
| Demand deposits | 1,244,184 | 1,230,903 | 1,417,641 | |||||||||||||||||||||||||||
| Other liabilities | 92,375 | 106,916 | 106,453 | |||||||||||||||||||||||||||
| Stockholders' Equity | 670,160 | 638,999 | 592,510 | |||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 6,656,464 | $ | 6,642,954 | $ | 6,498,984 | ||||||||||||||||||||||||
| Interest Margin Recap | ||||||||||||||||||||||||||||||
| Interest income/average earning assets | 96,128 | 6.04 | % | 94,933 | 6.07 | % | 89,942 | 5.81 | % | |||||||||||||||||||||
| Interest expense/average earning assets | 45,745 | 2.88 | 45,440 | 2.90 | 40,230 | 2.60 | ||||||||||||||||||||||||
| Net interest income and margin | $ | 50,383 | 3.16 | % | $ | 49,493 | 3.17 | % | $ | 49,712 | 3.21 | % | ||||||||||||||||||
(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 September 30, 2024, June 30, 2024, and September 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 | Nine Months Ended | ||||||||||||||||||
| Sep. 30, 2024 | Jun. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |||||||||||||||
| Total Equity | $ | 699,181 | $ | 654,590 | $ | 557,184 | $ | 699,181 | $ | 557,184 | |||||||||
| 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 | 695,378 | 650,787 | 553,381 | 695,378 | 553,381 | ||||||||||||||
| Market Value Adjustment in AOCI | 137,435 | 169,747 | 227,375 | 137,435 | 227,375 | ||||||||||||||
| Adjusted Tangible Common Equity | 832,813 | 820,534 | 780,756 | 832,813 | 780,756 | ||||||||||||||
| Assets | $ | 6,645,371 | $ | 6,568,807 | $ | 6,426,844 | $ | 6,645,371 | $ | 6,426,844 | |||||||||
| 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 | 6,641,568 | 6,565,004 | 6,423,041 | 6,641,568 | 6,423,041 | ||||||||||||||
| Market Value Adjustment in AOCI | 137,435 | 169,747 | 227,375 | 137,435 | 227,375 | ||||||||||||||
| Adjusted Tangible Assets | 6,779,003 | 6,734,751 | 6,650,416 | 6,779,003 | 6,650,416 | ||||||||||||||
| Ending Common Shares Issued | 25,684,916 | 25,679,066 | 25,614,163 | 25,684,916 | 25,614,163 | ||||||||||||||
| Tangible Book Value Per Common Share | $ | 27.07 | $ | 25.34 | $ | 21.60 | $ | 27.07 | $ | 21.60 | |||||||||
| Tangible Common Equity/Tangible Assets | 10.47 | % | 9.91 | % | 8.62 | % | 10.47 | % | 8.62 | % | |||||||||
| Adjusted Tangible Common Equity/Adjusted Tangible Assets | 12.29 | % | 12.18 | % | 11.74 | % | 12.29 | % | 11.74 | % | |||||||||
| Net Interest Income | $ | 49,273 | $ | 48,296 | $ | 48,393 | $ | 144,985 | $ | 148,436 | |||||||||
| Plus: Noninterest Income | 11,917 | 20,439 | 10,835 | 44,968 | 32,650 | ||||||||||||||
| Minus: Noninterest Expense | (30,393 | ) | (33,333 | ) | (29,097 | ) | (94,431 | ) | (101,265 | ) | |||||||||
| Pretax Pre-Provision Earnings | $ | 30,797 | $ | 35,402 | $ | 30,131 | $ | 95,522 | $ | 79,821 | |||||||||
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 | Nine Months Ended | ||||||||||||||||||
| Sep. 30, 2024 | Jun. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |||||||||||||||
| Noninterest Income | $ | 11,917 | $ | 20,439 | $ | 10,835 | $ | 44,968 | $ | 32,650 | |||||||||
| Less: Net (Gain) Loss on Visa Shares | 15 | (9,011 | ) | 0 | (8,996 | ) | 0 | ||||||||||||
| Less: Insurance Recoveries | 0 | 0 | 0 | (1,000 | ) | 0 | |||||||||||||
| Adjusted Core Noninterest Income | $ | 11,932 | $ | 11,428 | $ | 10,835 | $ | 34,972 | $ | 32,650 | |||||||||
| Noninterest Expense | $ | 30,393 | $ | 33,333 | $ | 29,097 | $ | 94,431 | $ | 101,265 | |||||||||
| Less: Legal Accrual | 0 | (4,537 | ) | 0 | (4,537 | ) | 0 | ||||||||||||
| Less: Wire Fraud Loss | 0 | 0 | 0 | 0 | (18,058 | ) | |||||||||||||
| Plus: Salaries and Employee Benefits (1) | 0 | 0 | 0 | 0 | 1,850 | ||||||||||||||
| Adjusted Core Noninterest Expense | $ | 30,393 | $ | 28,796 | $ | 29,097 | $ | 89,894 | $ | 85,057 | |||||||||
| Earnings Before Income Taxes | $ | 27,738 | $ | 26,922 | $ | 29,731 | $ | 82,463 | $ | 74,271 | |||||||||
| Adjusted Core Impact: | |||||||||||||||||||
| Noninterest Income | 15 | (9,011 | ) | 0 | (9,996 | ) | 0 | ||||||||||||
| Noninterest Expense | 0 | 4,537 | 0 | 4,537 | 16,208 | ||||||||||||||
| Total Adjusted Core Impact | 15 | (4,474 | ) | 0 | (5,459 | ) | 16,208 | ||||||||||||
| Adjusted Earnings Before Income Taxes | 27,753 | 22,448 | 29,731 | 77,004 | 90,479 | ||||||||||||||
| Tax Effect | (4,404 | ) | (3,261 | ) | (4,479 | ) | (11,817 | ) | (14,123 | ) | |||||||||
| Core Operational Profitability (2) | $ | 23,349 | $ | 19,187 | $ | 25,252 | $ | 65,187 | $ | 76,356 | |||||||||
| Diluted Earnings Per Common Share | $ | 0.91 | $ | 0.87 | $ | 0.98 | $ | 2.69 | $ | 2.49 | |||||||||
| Impact of Adjusted Core Items | 0.00 | (0.13 | ) | 0.00 | (0.16 | ) | 0.48 | ||||||||||||
| Core Operational Diluted Earnings Per Common Share | $ | 0.91 | $ | 0.74 | $ | 0.98 | $ | 2.53 | $ | 2.97 | |||||||||
| Adjusted Core Efficiency Ratio | 49.66 | % | 48.22 | % | 49.13 | % | 49.95 | % | 46.97 | % | |||||||||
(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
Contact
Lisa M. O’Neill
Executive Vice President and Chief Financial Officer
(574) 267-9125
lisa.oneill@lakecitybank.com
FAQ
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