Lakeland Financial (US:LKFN)2026-01-26 11:59Financial 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]