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]

Financial Performance - Net income for the first nine months of 2025 was $73.5 million, a 6.0% increase from $69.3 million in the same period of 2024[117] - Diluted earnings per share for the first nine months of 2025 rose to $2.85, up 5.9% from $2.69 in the comparable period of 2024[117] - Pretax pre-provision earnings for the first nine months of 2025 were $101.0 million, a 5.8% increase from $95.5 million in the same period of 2024[117] - For the third quarter of 2025, net income was $26.4 million, an improvement of 13.1% from $23.3 million in the same quarter of 2024[136] - The diluted earnings per common share for the third quarter of 2025 was $1.03, an increase of 13.2% from $0.91 in the comparable period of 2024[136] Income and Expenses - Net interest income increased by $18.8 million, or 13.0%, while noninterest income decreased by $9.6 million, or 21.3% in the first nine months of 2025[117] - Noninterest expense increased by $3.7 million, or 3.9%, in the first nine months of 2025[117] - Noninterest expense increased by $4.6 million, or 15.0%, during the third quarter of 2025[137] - Total noninterest income decreased by $9.6 million, or 21.3%, to $35.4 million for the nine months ended September 30, 2025, compared to $45.0 million for the same period in 2024[155] - Total noninterest expense increased by $3.7 million, or 3.9%, to $98.2 million for the nine months ended September 30, 2025, compared to $94.4 million for the same period in 2024[157] Assets and Equity - Total assets as of September 30, 2025, were $6.895 billion, reflecting a 3.2% increase from $6.678 billion at December 31, 2024[122] - Total equity increased by $63.6 million, or 9.3%, from $683.9 million at December 31, 2024, to $747.5 million at September 30, 2025[122] - Total average earning assets rose to $6.498 billion for the nine months ended September 30, 2025, an increase of $217.6 million, or 3.5%, from $6.281 billion in the prior year[144] - Total cash and cash equivalents increased by $24.6 million, or 14.6%, to $192.8 million at September 30, 2025, from $168.2 million at December 31, 2024[163] - Total deposits increased by $123.4 million, or 2.1%, from December 31, 2024, to $6.024 billion as of September 30, 2025[181] Loan and Credit Quality - Average loans outstanding increased by $183.6 million, or 3.7%, to $5.207 billion for the nine months ended September 30, 2025[144] - The loan portfolio increased by $148.5 million, or 3.0%, to $5.180 billion at September 30, 2025, driven primarily by growth in commercial and industrial loans, commercial real estate loans, and consumer mortgage loans[169] - Net charge-offs increased significantly to $29.6 million during the nine months ended September 30, 2025, compared to $1.4 million in the same period of 2024[151] - The allowance for credit losses was 1.30% of total loans as of September 30, 2025, down from 1.68% at December 31, 2024, reflecting a decrease attributed to a previously disclosed charge-off[174] - Total nonperforming assets decreased by $37.8 million, or 66.5%, to $19.1 million during the nine-month period ended September 30, 2025, with the nonperforming assets to total assets ratio dropping to 0.28%[171] Capital and Liquidity - The Tier I Capital ratio was 15.06% for the consolidated entity as of September 30, 2025, exceeding the minimum required of 6.00%[187] - The Company had access to $3.585 billion in unused liquidity as of September 30, 2025, compared to $3.681 billion at December 31, 2024[179] - Brokered deposits increased by $134.1 million, or 322.6%, to $175.6 million at September 30, 2025, compared to $41.6 million at December 31, 2024[181] - The effective tax rate increased to 17.7% for the nine months ended September 30, 2025, compared to 16.0% for the same period in 2024[160] - The allowance for credit losses decreased by $17.8 million, or 20.7%, from $86.0 million at December 31, 2024, to $68.2 million at September 30, 2025[178] Interest Rate and Market Risks - The Company’s interest rate risk is primarily managed through a policy reviewed annually by the Corporate Risk Committee, with the last review conducted in July 2025[192] - The Company anticipates that actual results may differ materially from forward-looking statements due to various economic and market conditions, including interest rates and inflation[190] - The Company faces risks related to changes in borrowers' credit risks and payment behaviors, which could impact loan demand and collateral values[190] - The Company’s performance in the commercial real estate loan portfolio is influenced by the elevated interest rate environment and changing retail and office usage patterns[190] - The Company’s interest rate scenarios include a range of changes from falling 300 basis points to rising 300 basis points, affecting cumulative net interest income over a twelve-month horizon[193]

Core Viewpoint - Lakeland Financial Corporation (NASDAQ:LKFN) has demonstrated strong financial performance, with consistent growth in earnings and revenue, despite some fluctuations in quarterly results [1][2][4]. Financial Performance - For the third quarter of 2025, Lakeland Financial reported earnings per share (EPS) of $1.03, which met market expectations and represented a 13% increase in net income to $26.4 million compared to the previous year [2][4][5]. - The company's revenue for the quarter was $69.03 million, reflecting a 12.8% increase year-over-year, although it fell short of the estimated $69.7 million [2][5]. - The EPS of $1.03 surpassed the Zacks Consensus Estimate of $1.02 by 0.98%, indicating the company's ability to exceed market expectations [3][5]. Year-over-Year Comparison - The net income for the nine months ending September 30, 2025, showed a 6% increase compared to the same period in the previous year, highlighting overall growth despite a slight quarterly decline [4]. - The EPS improved from $0.91 in the previous year, showcasing consistent growth in profitability [3]. Competitive Position - Lakeland Financial operates within the Zacks Banks - Midwest industry, competing with other regional banks in the Midwest, and has consistently outperformed market expectations in recent quarters [1].