Lakeland Financial (LKFN) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for the first quarter of 2025 was $20.1 million, a decrease of $3.3 million, or 14%, compared to $23.4 million in the same period of 2024[1] - Diluted earnings per share decreased to $0.78, down $0.13, or 14%, from $0.91 in the first quarter of 2024[1] - Net income decreased to $20,085 thousand for the three months ended March 31, 2025, down 16.00% from $24,190 thousand in the prior quarter[39] - Core operational profitability for the three months ended March 31, 2025, was $20,085 thousand, compared to $24,190 thousand in the previous quarter[57] - Basic earnings per common share decreased to $0.78 in Q1 2025 from $0.91 in Q1 2024, reflecting the lower net income[44] Loan and Deposit Growth - Average loans increased by $214.9 million, or 4%, to $5.19 billion compared to the first quarter of 2024[4] - Core deposits grew by $402.5 million, or 7%, to $5.83 billion year-over-year[12] - Total deposits increased by $342.1 million, or 6%, from $5.62 billion as of March 31, 2024, to $5.96 billion as of March 31, 2025[12] - Commercial deposits grew by $219.4 million, or 10%, to $2.34 billion year-over-year[13] - Total commercial loans increased to $4,623,085,000 in Q1 2025, up from $4,442,872,000 in Q1 2024, showing growth in lending activities[46] - Total deposits reached $5,960,194,000 in Q1 2025, compared to $5,900,996,000 in Q1 2024, indicating a stable deposit base[48] Interest Income and Margin - Net interest income rose by $5.5 million, or 12%, to $51.5 million for the first quarter of 2025[4] - Net interest margin improved by 25 basis points to 3.40% from 3.15% in the first quarter of 2024[20] - Net interest income increased by $5.5 million, or 12%, to $52.9 million for Q1 2025 compared to Q1 2024[23] - Net interest income for Q1 2025 was $52,875,000, an increase of 11.5% compared to $47,416,000 in Q1 2024[44] - Net interest margin improved to 3.40% in Q1 2025, up from 3.25% in Q4 2024, suggesting better interest income generation[40] Credit Quality and Loss Provisions - Provision for credit losses increased to $6.8 million in Q1 2025, up from $1.5 million in Q1 2024[24] - The allowance for credit loss reserve to total loans was 1.77% at March 31, 2025, up from 1.46% a year earlier[25] - The provision for credit losses increased to $6,800 thousand in Q1 2025, compared to $3,691 thousand in Q4 2024, indicating a rise in expected credit losses[39] - The allowance for credit losses increased to $92,433,000 in Q1 2025 from $73,180,000 in Q1 2024, reflecting a proactive approach to potential credit risks[46] - Nonperforming assets rose by $42.6 million, or 280%, to $57.9 million as of March 31, 2025, compared to $15.2 million a year earlier[26] Noninterest Income and Expenses - Noninterest income decreased by $1.7 million, or 13%, to $10.9 million for Q1 2025 compared to Q1 2024[30] - Noninterest expense increased by $2.1 million, or 7%, to $32.8 million for Q1 2025 compared to Q1 2024[33] - Total noninterest income decreased to $10,928,000 in Q1 2025, down 13.4% from $12,612,000 in Q1 2024[44] - Noninterest income for the three months ended March 31, 2025, was $10,928 thousand, down from $11,876 thousand in the previous quarter[57] Asset and Equity Growth - Total assets increased to $6,851,178 thousand as of March 31, 2025, up from $6,678,374 thousand at December 31, 2024, representing a growth of 2.59%[39] - The total equity increased to $694,509 thousand as of March 31, 2025, up from $683,911 thousand at December 31, 2024, marking a growth of 1.74%[39] - Tangible common equity increased to $690,706 thousand as of March 31, 2025, compared to $680,108 thousand at December 31, 2024[54] - Adjusted tangible common equity was $854,585 thousand for the three months ended March 31, 2025, up from $846,040 thousand in the previous quarter[54] Dividends - The company approved a cash dividend of $0.50 per share, representing a 4% increase from the previous year[7] - The dividend declared per common share increased to $0.50 in Q1 2025, compared to $0.48 in Q4 2024, reflecting a commitment to returning value to shareholders[39] Efficiency and Ratios - The efficiency ratio was 51.4% for Q1 2025, compared to 51.2% for Q1 2024[35] - The adjusted core efficiency ratio for the three months ended March 31, 2025, was 51.35%, compared to 48.22% in the previous quarter[57] - The return on average assets decreased to 1.20% in Q1 2025 from 1.42% in Q4 2024, indicating a decline in profitability relative to assets[40]