M. Scott Welch, Director of Lakeland Financial Corporation (NASDAQ:LKFN), executed three open-market purchases of LKFN common stock between Feb. 27, 2026, and March 12, 2026, as disclosed in SEC Form 4 filings. Transaction summary Metric Value Shares traded 25,000 Transaction value $1,419,064 Post-transaction shares (indirect) 266,006 Post-transaction value (indirect ownership) $15.1M Transaction value based on SEC Form 4 reported prices. Key questions What was the structure a ...

Financial Performance - Net income for 2025 was $103.4 million, a 10.6% increase from $93.5 million in 2024[199]. - Diluted net income per share rose to $4.01 in 2025 from $3.63 in 2024, with a return on average total assets of 1.50% in 2025[200]. - Net income for 2025 was $103.4 million, an increase of $9.9 million or 10.6% compared to $93.5 million in 2024, driven by a $24.3 million increase in net interest income, or 12.4%[229]. - Diluted earnings per share increased to $4.01 in 2025, up from $3.63 in 2024, representing a growth of 10.5%[229]. - Total equity increased to $762.5 million in 2025, up from $683.9 million in 2024, reflecting a growth of $78.6 million or 11.5%[224]. - The Company earned $103.4 million in 2025, compared to $93.5 million in 2024[285]. Asset and Loan Growth - Total assets increased to $6.990 billion in 2025, up 4.7% from $6.678 billion in 2024, driven by loan growth of $274.4 million or 5.5%[203]. - Total loans outstanding rose by $257.4 million, or 5.0%, to $5.375 billion at December 31, 2025, from $5.118 billion at December 31, 2024[262]. - Average loan balances increased by $184.1 million, or 3.7%, from $5.039 billion during 2024 to $5.223 billion during 2025[244]. - The loan portfolio increased to $5.38 billion in 2025, up from $5.12 billion in 2024 and $4.92 billion in 2023, with commercial and industrial loans comprising 28.9% of total loans[270]. - The Company experienced organic growth in total loans, with an increase of $257.4 million, or 5.0%, from December 31, 2024, to December 31, 2025[306]. Income and Expense Analysis - Net interest income increased by $24.3 million, or 12.4%, contributing to the overall net income growth[216]. - Noninterest income was $48.0 million in 2025, a decrease of $8.9 million or 15.6% compared to $56.8 million in 2024, primarily due to the absence of a $9.0 million net gain on Visa shares recorded in 2024[230]. - Noninterest expense rose to $131.6 million in 2025, an increase of $11.1 million or 9.2% from $120.5 million in 2024[230]. - The efficiency ratio improved to 48.93% in 2025 from 49.34% in 2024, indicating better cost management[224]. Credit Losses and Provisions - The provision for credit losses decreased by $5.0 million in 2025, positively impacting net income[201]. - Provision for credit losses decreased to $11.8 million in 2025 from $16.8 million in 2024, with the allowance for credit losses representing 1.28% of total loans as of December 31, 2025[246]. - The allowance for credit losses decreased by $17,965 thousand, or 19.7%, from $85,960 thousand at December 31, 2024, to $68,995 thousand at December 31, 2025[305]. - Nonperforming loans decreased to $20,904 thousand, or 0.39% of total loans, at December 31, 2025, compared to $56,446 thousand, or 1.10% of total loans, at December 31, 2024, reflecting a reduction of $35,542 thousand[299]. Interest Income and Margin - The net interest margin expanded by 27 basis points from 3.18% in 2024 to 3.45% in 2025[216]. - Net interest income reached $221.0 million in 2025, up from $196.7 million in 2024, reflecting a growth of $24.3 million or 12.4%[229]. - Total interest expense decreased by $23.8 million, or 13.5%, with deposit interest expense decreasing by $22.0 million, or 12.8%[240]. - The yield on earning assets decreased by 18 basis points during 2025, while the investment securities yield improved by 16 basis points[321]. Branch Expansion and Strategy - The company plans to open a new branch in Whitestown, Indiana, in 2026, as part of its expansion strategy[218]. - The Company opened its 55th branch location in Westfield, Indiana, contributing to the increase in net occupancy expense by $659,000, or 9.6%[253]. Capital and Liquidity - The Company had a total risk-based capital ratio of 15.92% and a Tier I risk-based capital ratio of 14.77% as of December 31, 2025, exceeding the Federal Reserve's minimums[283]. - Total available sources of liquidity were $3.526 billion at December 31, 2025, down from $3.681 billion at December 31, 2024[310]. - The Company had $134.5 million expected from cash flow of the securities portfolio for potential contingent funding in 2026[309]. Market and Economic Conditions - The Company anticipates that the cost of funds will continue to respond favorably to further monetary policy easing by the Federal Reserve Bank[321]. - The cumulative rate sensitivity gap as of December 31, 2025, is a negative 12.76% of earning assets[327].

Core Viewpoint - Lakeland Financial reported strong financial results for the quarter ended December 2025, with significant year-over-year growth in revenue and earnings per share, exceeding market expectations [1]. Financial Performance - Revenue for the quarter was $69.8 million, reflecting a year-over-year increase of 9.8% [1]. - Earnings per share (EPS) for the quarter was $1.16, compared to $0.94 a year ago, indicating a solid growth in profitability [1]. - The reported revenue surpassed the Zacks Consensus Estimate of $68.4 million, resulting in a positive surprise of +2.04% [1]. - The EPS also exceeded expectations, with a surprise of +11.01% against the consensus estimate of $1.05 [1]. Key Metrics - Net Interest Margin stood at 3.5%, matching the average estimate from two analysts [4]. - The efficiency ratio was reported at 47.9%, slightly higher than the estimated 47.3% [4]. - Net Interest Income (FTE) was $58.31 million, surpassing the average estimate of $57.25 million [4]. - Total Noninterest Income reached $12.6 million, exceeding the average estimate of $12.1 million [4]. Stock Performance - Over the past month, shares of Lakeland Financial returned +0.1%, compared to a +0.2% change in the Zacks S&P 500 composite [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3].

Lakeland Financial Corporation A Proven History of Shareholder Value Creation And Commitment to Our Communities 4 th Quarter 2025 LKFN L I S T E D David M. Findlay Chairman & Chief Executive Officer david.findlay@lakecitybank.com (574) 267-9197 Kristin L. Pruitt President kristin.pruitt@lakecitybank.com (574) 371-9220 Lisa M. O'Neill Executive Vice President & Chief Financial Officer lisa.oneill@lakecitybank.com (574) 267-9125 2 Forward-Looking Information This presentation contains, and future oral and wri ...

Core Insights - Lakeland Financial Corporation reported record quarterly net income of $29.9 million for Q4 2025, a 24% increase from $24.2 million in Q4 2024 [1] - For the year ended December 31, 2025, net income was $103.4 million, an 11% increase from $93.5 million in 2024 [2] - Diluted earnings per share for Q4 2025 were $1.16, up 23% from $0.94 in Q4 2024 [1] Quarterly Financial Performance - Total revenue for Q4 2025 was $69.8 million, a 10% increase from $63.6 million in Q4 2024 [4] - Return on average equity improved to 15.59% from 13.87% year-over-year [6] - Average loans grew by $185.1 million, or 4%, to $5.27 billion compared to Q4 2024 [6] Capital Strength - The total capital ratio was 15.92% at December 31, 2025, exceeding the 10% regulatory threshold [7] - Tangible common equity to tangible assets ratio improved to 10.86% from 10.19% year-over-year [8] Dividend and Share Repurchase - The board approved a cash dividend of $0.52 per share for Q4 2025, a 4% increase from $0.50 in Q4 2024 [9] - The company repurchased 307,590 shares for $17.9 million in Q4 2025 [10] Net Interest Margin - Net interest margin for Q4 2025 was 3.48%, a 23 basis point increase from 3.25% in Q4 2024 [12] - The improvement was driven by a reduction in funding costs, with interest expense as a percentage of average earning assets falling by 36 basis points [12] Loan Portfolio - Total loans increased by $257.2 million, or 5%, from $5.12 billion at December 31, 2024, to $5.38 billion at December 31, 2025 [18] - Gross commercial loan originations for Q4 2025 were $567 million, contributing to a total of $1.7 billion for the year [19] Asset Quality - Nonperforming assets decreased by 63% to $20.9 million as of December 31, 2025, compared to $56.9 million a year earlier [31] - The allowance for credit loss reserve to total loans was 1.28%, down from 1.68% at December 31, 2024 [29] Investment Portfolio Overview - Total investment securities were $1.19 billion at December 31, 2025, a 6% increase from $1.12 billion a year earlier [34] Noninterest Income - Noninterest income decreased by 16% to $48.0 million for the year ended December 31, 2025, compared to $56.8 million in 2024 [35] - Adjusted core noninterest income increased by 2% from $46.8 million for the year ended December 31, 2024 [35] Noninterest Expense - Noninterest expense increased by 5% to $131.6 million for the year ended December 31, 2025, primarily due to increased salaries and benefits [39] - The company's efficiency ratio improved to 48.9% for the year ended December 31, 2025, compared to 49.3% in 2024 [42]

Financial Performance - Record quarterly net income of $29.9 million for Q4 2025, a 24% increase from $24.2 million in Q4 2024[1] - Annual net income grew by 11% to $103.4 million for the year ended December 31, 2025, compared to $93.5 million in 2024[2] - Net income for Q4 2025 was $29.91 million, compared to $24.19 million in Q4 2024, marking an increase of approximately 23.1% year-over-year[45] - Net income for the twelve months ended December 31, 2025, was $103,361,000, an increase of 10.0% from $93,478,000 in 2024[49] - Basic net income per common share increased to $1.16 in Q4 2025 from $0.94 in Q4 2024, reflecting a growth of approximately 23.4%[45] Revenue and Income - Total revenue for Q4 2025 was $69.8 million, a 10% increase from $63.6 million in Q4 2024[4] - Net interest income rose by $24.3 million, or 12%, for the year ended December 31, 2025, compared to 2024[16] - Noninterest income decreased by $8.9 million, or 16%, to $48.0 million for the year ended December 31, 2025, compared to $56.8 million for the prior year[34] - Noninterest income for the twelve months ended December 31, 2025, was $47.97 million, down from $56.84 million in the previous year, indicating a decrease of about 15.6%[45] - Noninterest income for Q4 2025 was $12,603,000, up 6.1% from $11,876,000 in Q4 2024[49] Assets and Loans - Total assets increased to $6.99 billion in Q4 2025, up from $6.68 billion in Q4 2024, reflecting a growth of approximately 4.67% year-over-year[45] - Loans reached $5.38 billion in Q4 2025, an increase from $5.12 billion in Q4 2024, representing a growth of about 5.06% year-over-year[45] - Average total loans increased by $185.1 million, or 4%, to $5.27 billion in Q4 2025 compared to Q4 2024[18] - Total commercial loans reached $4,724,441,000 as of December 31, 2025, representing 87.8% of total loans[51] Deposits and Equity - Total deposits increased by $72.4 million, or 1%, from $5.90 billion as of December 31, 2024, to $5.97 billion as of December 31, 2025[22] - Core deposits expanded by $74.1 million, or 1%, to $5.92 billion[13] - Total equity rose to $762.49 million in Q4 2025, up from $683.91 million in Q4 2024, representing a growth of about 11.5% year-over-year[45] - Total deposits as of December 31, 2025, were $5,973,350,000, a decrease from $6,024,318,000 as of September 30, 2025[53] Efficiency and Ratios - Return on average equity improved to 15.59% in Q4 2025, up from 13.87% in Q4 2024[6] - The company's efficiency ratio for the year ended December 31, 2025, was 48.9%, compared to 49.3% for the previous year[41] - Efficiency ratio (Noninterest Expense/Net Interest Income plus Noninterest Income) improved to 47.92% from 50.65% in the previous quarter[46] - Return on Average Assets improved to 1.70% in 2025, up from 1.53% in 2024[46] - Common Equity Tier 1 (CET1) ratio remained stable at 14.77% in 2025, consistent with the previous year[46] Credit Quality - Nonaccrual loans declined 63% to $20.9 million compared to $56.4 million in the previous year[13] - Nonperforming assets decreased by $36.0 million, or 63%, to $20.9 million as of December 31, 2025[30] - The allowance for credit loss reserve to total loans was 1.28% at December 31, 2025, down from 1.68% at December 31, 2024[29] - The allowance for credit losses was $68,995,000 as of December 31, 2025, compared to $85,960,000 a year earlier[51] - The company reported a provision for credit losses of $11,800,000 for the twelve months ended December 31, 2025, down from $16,750,000 in 2024[49] Shareholder Returns - The dividend payout ratio for Q4 2025 was 43.10%, down from 51.06% in Q4 2024, indicating a more conservative approach to dividend distribution[45] - The company repurchased 307,590 shares for $17.9 million at an average price of $58.23 during Q4 2025[10] Strategic Initiatives - The company plans to use approximately $134.5 million in cash flows from the investment securities portfolio to fund loan growth in 2026[33] - The company plans to accelerate branch development in Indianapolis and other Indiana markets to enhance market share[42] - The company continues to focus on building long-term customer relationships while delivering technology-forward solutions for retail and commercial clients[42] Employment and Operations - Full-time equivalent employees increased to 669 in 2025, up from 643 in 2024, reflecting a growth of 4.05%[48] - The company maintained 55 offices as of December 31, 2025, unchanged from the previous year[48]

Core Insights - Lake City Bank has promoted Donald J. Robinson-Gay to Executive Vice President, Chief Credit Officer, recognizing his extensive experience in banking and credit management [1][2]. Group 1: Promotion and Role - Robinson-Gay has been with Lake City Bank for eight years, serving as Chief Credit Officer for the last three years, where he has effectively adapted his technical credit skills to the bank's culture [2][3]. - His responsibilities include managing the bank's loan portfolio, overseeing credit quality and policies, and collaborating with lending teams to ensure sustainable loan growth [5]. Group 2: Career Background - Prior to his tenure at Lake City Bank, Robinson-Gay worked in management consulting at Accenture and held various roles in commercial banking and credit at M&I Bank and BMO Harris Bank [4]. - He has a strong background in commercial banking, having served as a senior credit administration officer during the Great Recession, focusing on loan workout strategies [4]. Group 3: Educational Background and Community Involvement - Robinson-Gay holds an MBA from Marquette University and a bachelor's degree from Miami University [6]. - He is also involved in the community, serving on the board of directors of the Kosciusko Economic Development Corporation [6]. Group 4: Company Overview - Lake City Bank, headquartered in Warsaw, Indiana, has assets of $6.9 billion and operates 55 branch offices, focusing on building long-term customer relationships while providing technology-forward solutions [7].

Core Viewpoint - Allspring Global Investments Holdings LLC has initiated a new position in Lakeland Financial Corporation, acquiring 23,726 shares valued at approximately $1.52 million, representing about 0.09% ownership of the company [2] Institutional Investment Activity - Parkside Financial Bank & Trust increased its position in Lakeland Financial by 248.0%, now owning 442 shares worth $27,000 after purchasing an additional 315 shares [3] - Osaic Holdings Inc. raised its stake by 186.0%, owning 469 shares valued at $29,000 after acquiring 305 additional shares [3] - EverSource Wealth Advisors LLC boosted its position by 1,212.5%, now holding 630 shares worth $39,000 after acquiring 582 shares [3] - GAMMA Investing LLC grew its position by 80.9%, owning 1,670 shares valued at $107,000 after purchasing 747 shares [3] - Dynamic Technology Lab Private Ltd acquired a new stake worth $215,000 in the first quarter [3] - Hedge funds and institutional investors collectively own 81.15% of Lakeland Financial's stock [3] Analyst Ratings Changes - Weiss Ratings reaffirmed a "hold (c)" rating on Lakeland Financial [4] - Hovde Group downgraded the stock from "outperform" to "market perform" [4] - Raymond James Financial maintained an "outperform" rating with a target price of $68.00, down from $74.00 [4] - Keefe, Bruyette & Woods reduced their price objective from $68.00 to $66.00, assigning a "market perform" rating [4] - The stock has an average rating of "Hold" and an average target price of $68.67 [4] Stock Performance - Lakeland Financial's stock opened at $57.57, with a market capitalization of $1.47 billion and a P/E ratio of 15.19 [5] - The stock has a 50-day moving average of $58.30 and a 200-day moving average of $61.92 [5] - The one-year low for the stock is $50.00, while the one-year high is $71.76 [5] Earnings Results - Lakeland Financial reported earnings of $1.03 per share for the quarter, exceeding analysts' expectations of $1.02 by $0.01 [6] - The company generated revenue of $69.03 million, slightly below the consensus estimate of $69.15 million [6] - The net margin was 23.23%, and return on equity was 13.77% [6] - Revenue increased by 3.9% compared to the same quarter last year [6] - Analysts forecast earnings per share of 3.7 for the current fiscal year [6] Dividend Announcement - Lakeland Financial announced a quarterly dividend of $0.50, paid on November 5th, with an annualized dividend of $2.00 and a yield of 3.5% [7] - The dividend payout ratio stands at 52.77% [7] Company Profile - Lakeland Financial Corporation is a bank holding company based in Warsaw, Indiana, offering a full range of commercial and consumer banking services [9] - The company operates through its principal subsidiary, Lakeland Bank, providing various deposit products and loan offerings [9]

Group 1 - Lake City Bank's CEO, David M. Findlay, has been appointed as the Chairman of the Indiana Bankers Association Board of Directors for 2026 [1] - The Indiana Bankers Association is recognized as a leading state banking association, credited for its engaged membership and strong leadership, which helps Indiana banks remain competitive in the evolving financial services landscape [2] - Findlay has extensive experience in leadership roles within Lakeland Financial and Lake City Bank, having served as CEO and in various executive positions since 2000 [3] Group 2 - Lake City Bank, founded in 1872, is a $6.9 billion institution headquartered in Warsaw, Indiana, operating 55 branch offices and a digital banking platform [5] - The bank focuses on community banking, emphasizing long-term customer relationships and technology-driven solutions for both retail and commercial clients [5] - Lake City Bank is the sole bank subsidiary of Lakeland Financial Corporation, which is listed on the Nasdaq Global Select under the ticker LKFN [5]

Core Insights - Spiral has partnered with Lake City Bank to enhance financial wellness and grow deposits through personalized digital banking experiences [1][4] - The integration of Spiral's Roundup Center, branded as Lake City Bank SpendSave, allows customers to round up debit card purchases to save or donate to charities [2][3] Company Overview - Spiral is an award-winning platform based in New York City, focused on redefining personalized banking and helping financial institutions grow deposits and retention [5] - Lake City Bank, with assets of $6.9 billion, serves communities in Central and Northern Indiana and emphasizes long-term customer relationships and technology-forward solutions [6] Product Features - The SpendSave solution enables customers to allocate rounded-up amounts to savings or charitable causes, supporting local nonprofits and community initiatives [3] - The platform includes features like real-time impact tracking and tax-deductible donation receipts, enhancing customer engagement and community support [3]