Welcome to our dedicated page for Lakeland Financial news (Ticker: LKFN), a resource for investors and traders seeking the latest updates and insights on Lakeland Financial stock.
Lakeland Financial Corp (NASDAQ: LKFN) is a bank holding company headquartered in Warsaw, Indiana. It operates through its wholly-owned subsidiary, Lake City Bank, which provides a wide range of commercial, retail, wealth advisory, and investment management services. The company has a strong presence across Northern and Central Indiana, offering its services through 53 branch offices and a robust digital banking platform.
Lake City Bank caters to various sectors including commercial real estate, manufacturing, agriculture, construction, retail, wholesale, finance and insurance, accommodation and food services, and healthcare. The bank's diversified product offerings include commercial and consumer banking services, trust and wealth management, brokerage services, and treasury management commercial services.
In recent developments, Lakeland Financial reported net income of $38.9 million for the first half of 2023, a decrease of 21% compared to the same period in 2022. Despite this, the company saw a 10% improvement in core operational profitability in the second quarter of 2023. Loan growth was strong, with a $438 million increase, representing a 10% annual growth, particularly driven by the Indianapolis market.
However, the company faced challenges, notably a wire fraud event in June 2023 that resulted in an estimated loss of $18.1 million. A thorough investigation confirmed no client accounts were affected, and the company's network was not penetrated. The bank's strong capital structure, with a total capital ratio of 14.94% as of June 2023, remains a cornerstone of its financial stability. The board approved a second-quarter cash dividend of $0.46 per share, reflecting a 15% increase from the previous year.
The company's total loans outstanding grew by $437.6 million, reaching $4.86 billion by mid-2023. Despite seasonal reductions in agribusiness loans, commercial real estate and industrial loans saw significant growth. The bank's diversified deposit base remained stable, with a slight decrease in total deposits by 4% from June 2022 to June 2023. The bank maintains robust liquidity resources, with access to $2.9 billion in unused liquidity as of June 2023.
For the third quarter of 2023, Lakeland Financial reported net income of $25.3 million, a decrease of 11% year-over-year but a 73% increase from the previous quarter. The company continued to expand its loan portfolio, with total loans outstanding reaching $4.87 billion. The bank's net interest margin was 3.21%, reflecting a challenging interest rate environment, but there was stability in loan betas and a slight decline in noninterest bearing deposits.
The company has shown resilience with strong capital ratios and continued dividend growth, reflecting confidence in its long-term profitability and stability. As Lakeland Financial moves forward, its focus remains on organic growth, disciplined credit administration, and maintaining a strong balance sheet to support dividend payouts and shareholder value.
Lakeland Financial Corporation (Nasdaq/LKFN) reported a record net income of $24.3 million for Q1 2023, a 3% increase from $23.6 million in Q1 2022. Diluted EPS rose to $0.94, up 2% from $0.92. Despite this, net income fell 7% from Q4 2022’s $26.0 million. The company registered loan growth of $401.2 million (9%) over the year but reported a deposit contraction of $302.9 million (5%). Key metrics included a return on average equity of 16.81% and a net interest margin of 3.54%. Noninterest income decreased 3% due to lower mortgage banking activities. The board approved a dividend of $0.46 per share, reflecting a 15% increase from the prior year.
Lake City Bank, a subsidiary of Lakeland Financial Corporation (LKFN), has been recognized in the 2023 KBW Bank Honor Roll, marking its twelfth consecutive year of inclusion. Only 14 out of the 350 banks screened met the qualifications, indicating strong long-term performance. Banks must demonstrate consistent annual earnings per share growth over the past decade to qualify. David M. Findlay, CEO, emphasized the importance of this recognition, especially amid recent banking sector challenges, as a testament to the bank's commitment to shareholder value and disciplined strategies. Lake City Bank, with total assets of $6.4 billion and headquartered in Warsaw, Indiana, operates 53 branches across the state, highlighting its significant local presence.
Lake City Bank has expanded its presence by opening its 53rd branch in the 16 Tech Innovation District, located inside the AMP food and event hall in Indianapolis, IN. The full-service branch, which operates from 9 a.m. to 5 p.m. Monday through Friday, aims to cater to local businesses and consumers. This new location marks the bank's seventh branch in the Indianapolis area and the second on the city's northwest side.
Bank executives expressed enthusiasm for establishing relationships with the 16 Tech community, emphasizing their role as a partner in improving local quality of life. The 16 Tech Innovation District is home to over 90 companies and focuses on fostering innovation and economic opportunity in the region.
Lake City Bank has received certification from the Cities for Financial Empowerment Fund for its Essential Checking and Getting Ahead Checking accounts, adhering to the 2023-24 Bank On National Account Standards. The Essential Checking account features a low monthly fee of $5, no overdraft fees, and access to digital banking. Getting Ahead Checking, linked to the bank's loan program, also meets these standards. This certification ensures that consumers have access to safe and affordable banking products. The bank emphasizes its commitment to providing innovative financial solutions for the community.
Lakeland Financial Corporation (LKFN) reported record net income of $103.8 million for 2022, an increase of 8% from $95.7 million in 2021. Diluted earnings per share reached $4.04, up 8% from $3.74. For Q4 2022, net income was $26.0 million, a 7% rise from $24.3 million in Q4 2021. Core loan growth was 10%, totaling $4.71 billion in loans. The company increased its dividend to $0.46 per share, up 15% from the previous quarter. However, noninterest expense grew 6% to $110.2 million, partly due to legal accruals. Additionally, nonperforming assets rose to $17.2 million, reflecting isolated credit issues.
Lake City Bank has promoted Donald J. Robinson-Gay to Senior Vice President, Chief Credit Officer, effective January 27, 2023. He succeeds Michael E. Gavin, who retires after 31 years. Robinson-Gay, 45, joined the bank in 2018 as Vice President and Regional Credit Officer and has a strong background in credit administration and commercial banking. He is set to enhance Lake City Bank’s credit culture and strategic initiatives. The bank, with $6.3 billion in assets, operates 52 branches across Indiana, making it the sixth largest bank in the state and the largest fully invested in Indiana.
On January 10, 2023, Lakeland Financial Corporation (Nasdaq Global Select/LKFN) announced a quarterly cash dividend of $0.46 per share for Q1 2023, marking a 15% increase from the $0.40 per share dividend paid in 2022. The dividend will be payable on February 6, 2023, to shareholders of record as of January 25, 2023. President and CEO David M. Findlay expressed confidence in the company's financial health and capital foundation, enabling this increase. Lake City Bank, part of Lakeland, is the largest bank fully invested in Indiana.
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