Lakeland Financial (US:LKFN)2025-10-27 10:59Financial Performance - Net income for Q3 2025 increased by 13% to $26.4 million, compared to $23.3 million in Q3 2024[1] - Diluted earnings per share rose by 13% to $1.03 for Q3 2025, up from $0.91 in Q3 2024[1] - Net income for the nine months ended September 30, 2025, was $73,455, up from $69,288 in the same period last year, indicating a growth of 4.2%[41] - Basic net income per common share for Q3 2025 was $1.03, compared to $0.91 in Q3 2024, reflecting a growth of 13.2%[41] - Core operational profitability for the three months ended September 30, 2025, was $26,404 million, compared to $23,349 million a year earlier, reflecting a growth of 13.1%[57] Loan and Deposit Growth - Average loans grew by $141.5 million, or 3%, to $5.21 billion compared to Q3 2024[4] - Core deposits increased by $107.9 million, or 2%, to $5.85 billion year-over-year[4] - Total deposits rose by $187.0 million, or 3%, to $6.02 billion compared to September 30, 2024[12] - Total deposits as of September 30, 2025, were $6,024,318, an increase from $5,837,313 in the previous year, representing a growth of 3.2%[41] - Total commercial loans as of September 30, 2025, were $4,605,071,000, a slight decrease from $4,609,028,000 as of June 30, 2025[47] - Total consumer loans increased to $645,972,000 as of September 30, 2025, compared to $619,948,000 as of June 30, 2025, marking a 4.5% growth[47] Asset Quality - Nonaccrual loans declined by 68% to $18.7 million from $57.6 million[4] - Nonperforming assets decreased by 67% to $19.1 million as of September 30, 2025, compared to $58.1 million a year earlier[26] - The allowance for credit losses decreased to $68,168 from $83,627 year-over-year, a reduction of 18.5%[41] - The allowance for credit losses decreased to $67.12 million from $93.64 million in the previous quarter, indicating improved asset quality[50] - The provision for credit losses for Q3 2025 was $2,000,000, down from $3,059,000 in Q3 2024[45] Revenue and Income Sources - Net interest income rose to $56.1 million for Q3 2025, a 14% increase from $49.3 million in Q3 2024, and up 2% from $54.9 million in Q2 2025[22] - Noninterest income increased by 9% to $13.0 million for Q3 2025, driven by strong growth in loan and service fees[29] - Noninterest income for Q3 2025 increased to $12,954,000, up from $11,917,000 in Q3 2024, representing an 8.7% growth[45] - Total interest income for the nine months ended September 30, 2025, was $279,727,000, slightly down from $279,788,000 in the same period of 2024[45] Operational Efficiency - The efficiency ratio was 50.7% for Q3 2025, compared to 49.7% in Q3 2024, indicating increased operational costs relative to revenue[36] - The adjusted core efficiency ratio for the three months ended September 30, 2025, was 50.65%, compared to 49.66% in the same period last year, indicating a slight decline in efficiency[57] Capital and Equity - The common equity tier 1 capital ratio improved to 15.06%, compared to 14.49% a year ago[4] - Tangible common equity as of September 30, 2025, was $743,700, an increase from $695,378 in the same period last year, representing a growth of 6.9%[41] - Total equity increased to $747,503 million as of September 30, 2025, compared to $699,181 million a year earlier, reflecting a growth of 6.9%[54] Dividends and Shareholder Returns - A cash dividend of $0.50 per share was approved, representing a 4% increase from the previous year[7] - The dividend payout ratio for Q3 2025 was 48.54%, slightly up from 52.75% in Q3 2024[41] Market Performance - Market value per share reached a high of $69.40 in Q3 2025, compared to $72.25 in Q3 2024, indicating a decrease of 2.5%[41]