Lakeland Financial (US:LKFN)2025-01-24 11:59Financial Performance - Annual net income for 2024 was $93.5 million, a slight decrease from $93.8 million in 2023, with diluted earnings per share at $3.63 compared to $3.65[1] - Fourth quarter net income decreased by 18% to $24.2 million, with diluted earnings per share at $0.94, down from $1.16 in Q4 2023[2] - The company reported a net income of $24.190 million for Q4 2024, compared to $29.626 million in Q4 2023[46] - Net income for the full year 2024 was $93,478,000, slightly down from $93,767,000 in 2023, with diluted earnings per share at $3.63 compared to $3.65[50] Loan and Deposit Growth - Average total loans for 2024 increased by $225.7 million, or 5%, to $5.04 billion, with Q4 loans at $5.09 billion, up $206.9 million, or 4% from Q4 2023[10] - Loans increased to $5.118 billion as of December 31, 2024, from $4.917 billion at the end of 2023[46] - Total loans net as of December 31, 2024, were $5,031,988,000, an increase from $4,844,562,000 in December 2023[53] - Total deposits grew to $5,900,966 thousand, compared to $5,720,525 thousand in the previous year, representing an increase of approximately 3.15%[49] - As of December 31, 2024, deposits not covered by FDIC insurance were 62% of total deposits, up from 57% a year earlier[20] Asset Management - Total assets as of December 31, 2024, were $6.678 billion, compared to $6.524 billion at the end of 2023[46] - Total investment securities decreased by $58.7 million, or 5%, to $1.12 billion as of December 31, 2024, representing 17% of total assets[25] - The company reported total assets of $6,795,596 thousand, an increase from $6,514,430 thousand year-over-year[58] Capital and Efficiency Ratios - Total risk-based capital ratio improved to 15.90% at December 31, 2024, exceeding the 10.00% regulatory threshold[6] - The company's efficiency ratio improved to 49.3% for the twelve months ended December 31, 2024, down from 52.9% for the same period in 2023[39] - Adjusted core efficiency ratio for the twelve months ended December 31, 2024, was 49.5%, compared to 47.4% for the twelve months ended December 31, 2023[39] - The efficiency ratio (Noninterest Expense/Net Interest Income plus Noninterest Income) improved to 48.22% from 49.67% in the previous quarter, indicating enhanced operational efficiency[47] Noninterest Income and Expenses - Noninterest income for the year increased by 14% to $56.8 million, driven by a net gain on the sale of Visa shares of $9.0 million[32] - Noninterest expense decreased by 4% to $125.1 million for the year ended December 31, 2024, despite a 13% increase in salaries and employee benefits[36] - Noninterest income for Q4 2024 was $11.876 million, slightly down from $11.917 million in Q3 2024[46] - Total noninterest income decreased to $11,876,000 in Q4 2024 from $17,208,000 in Q4 2023, primarily due to lower other income and net securities gains[50] Credit Quality and Provisions - Provision expense for the year ended December 31, 2024, was $16.8 million, an increase of 186% compared to the prior year, primarily due to a downgrade of a $43.3 million credit[28] - Nonperforming assets increased by 253% to $56.9 million as of December 31, 2024, compared to $16.1 million a year earlier[30] - The allowance for credit loss reserve to total loans was 1.68% at December 31, 2024, up from 1.46% a year earlier[29] - Provision for credit losses increased significantly to $3,691,000 in Q4 2024 from $300,000 in Q4 2023, indicating a more cautious outlook on credit quality[50] Operational Highlights - The company declared a cash dividend of $0.50 per share for Q4 2024, a 4% increase from $0.48 in Q4 2023[8] - Full-time equivalent employees increased to 643 from 619 year-over-year, reflecting a growth in workforce[47] - The company maintained 54 offices as of December 31, 2024, unchanged from the previous year[47] - The company plans to continue focusing on market expansion and new product development to drive future growth[64]