Lakeland Financial Reports Record Quarterly Performance with a 24% Increase in Net Income; Annual Net Income Grows by 11% to $103.4 Million, as Net Interest Income Expands by 12%
WARSAW, Ind., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported record quarterly net income of $29.9 million for the three months ended December 31, 2025, which represents an increase of $5.7 million, or 24%, compared to net income of $24.2 million for the three months ended December 31, 2024. Diluted earnings per share were $1.16 for the fourth quarter of 2025 and increased $0.22, or 23%, compared to $0.94 for the fourth quarter of 2024. On a linked quarter basis, net income increased $3.5 million, or 13%, from $26.4 million. Diluted earnings per share increased $0.13, or 13%, from $1.03 on a linked quarter basis.
The company further reported net income of $103.4 million for the year ended December 31, 2025, versus $93.5 million for 2024, an increase of $9.9 million, or 11%. Diluted earnings per share increased $0.38, or 10%, to $4.01 for the year ended December 31, 2025, versus $3.63 for 2024. Pretax pre-provision earnings, a non-GAAP measure, were $137.4 million for the year ended December 31, 2025, an increase of $8.9 million, or 7%, compared to $128.4 million for the year ended December 31, 2024. Core operational profitability, a non-GAAP measure that excludes the impact of certain non-routine operating events that occurred during 2024, improved by $14.0 million, or 16%, from $89.4 million to $103.4 million for the years ended December 31, 2024 and 2025, respectively.
Pretax pre-provision earnings were $36.4 million for the three months ended December 31, 2025, an increase of $3.4 million, or 10%, compared to $32.9 million for the three months ended December 31, 2024. Pretax pre-provision earnings increased by $2.3 million, or 7%, compared to $34.1 million on a linked quarter basis.
Total revenue was $69.8 million for the fourth quarter of 2025 representing an increase of $6.2 million, or 10%, as compared to the fourth quarter of 2024. On a linked quarter basis, revenue increased by $769,000, or 1%, from $69.0 million in the third quarter of 2025. Total revenue increased by $15.5 million, or 6%, to $269.0 million for the year ended December 31, 2025, as compared to $253.5 million for 2024.
"The Lake City Bank team produced a very strong fourth quarter with exceptional performance metrics that has created good momentum as we move into 2026. We are pleased with double-digit growth of net income compared to the prior year, which was driven by healthy net interest margin expansion and broad-based core revenue growth," commented David M. Findlay, Chairman and CEO. "In 1990, we expanded outside of our home county for the first time. In the 34 years since, our organic growth model has produced compounded annual growth rates of 10% for loans and deposits, 11% for net income and diluted earnings per share and 10% for tangible book value per share. It's a track record of balance sheet growth and strong income metrics that has delivered healthy shareholder performance over a long period of time and we are laser focused on returning balance sheet growth to our historical levels."
Quarterly Financial Performance
Fourth Quarter 2025 versus Fourth Quarter 2024 highlights:
Return on average equity improved to 15.59%, compared to 13.87%
Return on average assets improved to 1.70%, compared to 1.42%
Tangible book value per share grew by $3.40, or 13%, to $29.87
Average loans grew by $185.1 million, or 4%, to $5.27 billion
Net interest margin improved 23 basis points to 3.48% versus 3.25%
Net interest income increased by $5.5 million, or 11%
Noninterest income increased by $727,000, or 6%
Revenue improved by 10% from $63.6 million to $69.8 million
Watch list loans as a percentage of total loans improved to 3.42% from 4.13%
Nonaccrual loans declined 63% to $20.9 million, compared to $56.4 million
Common equity tier 1 capital ratio improved to 14.77%, compared to 14.64%
Total risk-based capital ratio improved to 15.92%, compared to 15.90%
Tangible capital ratio improved to 10.86%, compared to 10.19%
Tangible common equity improved by $78.6 million, or 12%
Fourth Quarter 2025 versus Third Quarter 2025 highlights:
Return on average equity of 15.59%, compared to 14.60%
Return on average assets of 1.70%, compared to 1.53%
Tangible book value per share grew by $0.94, or 3%, to $29.87
Average loans improved by $65.9 million, or 1%, to $5.27 billion
Core deposits expansion of $74.1 million, or 1%, to $5.92 billion
Net interest margin of 3.48% versus 3.50%
Net interest income increased by $1.1 million, or 2%
Noninterest expense decreased $1.5 million, or 4%
Tangible common equity improved by $15.0 million, or 2%
Capital Strength
The company's total capital as a percentage of risk-weighted assets was 15.92% at December 31, 2025, compared to 15.90% at December 31, 2024 and 16.21% at September 30, 2025. These capital levels significantly exceeded the 10.00% regulatory threshold required to be characterized as "well capitalized" and reflect the company's robust capital base.
The company's tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to 10.86% at December 31, 2025, compared to 10.19% at December 31, 2024 and 10.79% at September 30, 2025. Unrealized losses from available-for-sale investment securities were $143.3 million at December 31, 2025, compared to $191.1 million at December 31, 2024 and $159.9 million at September 30, 2025. Excluding the impact of accumulated other comprehensive income (loss) on tangible common equity and tangible assets, the company's ratio of adjusted tangible common equity to adjusted tangible assets, a non-GAAP financial measure, was 12.45% at December 31, 2025, compared to 12.37% at December 31, 2024, and 12.57% at September 30, 2025.
As announced on January 13, 2026, the board of directors approved a cash dividend for the fourth quarter of $0.52 per share, payable on February 5, 2026, to shareholders of record as of January 25, 2026. The fourth quarter dividend per share represents a 4% increase from the $0.50 dividend per share paid for the fourth quarter of 2024.
Additionally, the company utilized its share repurchase program during the fourth quarter of 2025 and repurchased 307,590 shares of its common stock for $17.9 million at a weighted average price per share of $58.23. For the year ended December 31, 2025, the company repurchased 337,890 shares of its common stock for $19.6 million at a weighted average price per share of $58.03.
"We are pleased to report high quality income metrics with return on average equity of 15.6% and return on assets of 1.7% for the fourth quarter, while also continuing to grow capital," stated Kristin L. Pruitt, President. "Our fortress balance sheet and strong capital position supports our strategy of continued loan growth and the continued growth of our dividend. With the aggressive activation of our share repurchase program during 2025, particularly during the fourth quarter, we further increased the total return of capital to our shareholders."
Net Interest Margin
Net interest margin was 3.48% for the fourth quarter of 2025, representing a 23 basis point increase from 3.25% for the fourth quarter of 2024. This improvement was driven by a reduction in the company's funding costs, with interest expense as a percentage of average earning assets falling by 36 basis points from 2.56% for the fourth quarter of 2024 to 2.20% for the fourth quarter of 2025. Offsetting the decrease in funding costs was a decrease to earning asset yields of 13 basis points from 5.81% for the fourth quarter of 2024 to 5.68% for the fourth quarter of 2025. The easing of monetary policy by the Federal Reserve Bank, which continued through the duration of 2025, favorably impacted the net interest margin as deposits repriced more quickly than loans during the fourth quarter. The cumulative loan beta for the current rate-easing cycle that began in September 2024 is 24% compared to the deposit beta of 40% during this period and has resulted in net interest margin expansion that has benefited net interest income.
Net interest margin contracted by 2 basis points to 3.48% for the fourth quarter of 2025, compared to 3.50% for the linked third quarter of 2025. Average earning asset yields decreased by 19 basis points from 5.87% to 5.68% on a linked quarter basis and interest expense as a percentage of average earning assets decreased 17 basis points from 2.37% to 2.20%. Fourth quarter cost of funds was impacted by seasonal public funds deposits in higher priced deposit products.
Net interest income increased by $24.3 million, or 12%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024. Net interest income was $57.2 million for the fourth quarter of 2025, representing an increase of $5.5 million, or 11%, as compared to the fourth quarter of 2024. On a linked quarter basis, net interest income increased $1.1 million, or 2%, from $56.1 million for the third quarter of 2025.
"Net interest margin improved by 23 basis points during the fourth quarter of 2025 as compared to the fourth quarter of 2024 while the Federal Reserve Bank easing monetary cycle continued. Our disciplined deposit cost repricing strategy offset the decline in loan yields. In addition, new loan origination yields improved compared to yields of fixed rate loan runoff," stated Lisa M. O'Neill, Executive Vice President and Chief Financial Officer. "We experienced the seasonal influx of municipal deposits during the fourth quarter, which offset some of the net interest margin expansion we experienced in the third quarter of 2025. Our neutral interest rate position is expected to provide stability for net interest margin in a higher-for-longer interest rate environment or continued easing by the Federal Reserve Bank in 2026."
Loan Portfolio
Average total loans of $5.27 billion in the fourth quarter of 2025 increased $185.1 million, or 4%, from $5.09 billion for the fourth quarter of 2024 and increased $65.9 million, or 1%, from $5.21 billion for the third quarter of 2025. Average total loans for the year ended December 31, 2025 were $5.22 billion, an increase of $184.1 million, or 4%, from $5.04 billion for the year ended December 31, 2024.
Total loans, excluding deferred fees and costs, increased by $257.2 million, or 5%, from $5.12 billion as of December 31, 2024, to $5.38 billion as of December 31, 2025. The growth in loans occurred across all primary segments within the portfolio, with increases to commercial and industrial loan portfolio of $102.8 million, or 7%, commercial real estate and multi-family residential loans of $74.0 million, or 3%, consumer 1-4 family mortgage loans of $47.0 million, or 10%, agri-business and agricultural loans of $19.5 million, or 5%, other consumer loans of $12.2 million, or 12%, and other commercial loans of $1.8 million, or 2%. On a linked quarter basis, total loans, excluding deferred fees and costs, increased by $126.8 million, or 2%, from $5.25 billion at September 30, 2025. The linked quarter increase occurred across all primary segments within the portfolio, with growth in agri-business and agricultural loans of $66.9 million, or 20%, total commercial and industrial loans of $35.7 million, or 2%, commercial real estate and multi-family residential loans of $11.3 million, or less than 1%, other commercial loans of $5.5 million, or 6%, other consumer loans of $3.8 million, or 3%, and consumer 1-4 family mortgage loans of $3.7 million, or 1%.
"We continued to generate a high volume of gross commercial loan originations during the fourth quarter of $567 million. For the full year of 2025, our team produced gross originations of $1.7 billion," noted Findlay. "Loan growth during 2025 was positively impacted by commercial and industrial loan growth of 7%, or $103 million, which contributed to our organic loan growth increase. Importantly, we experienced healthy commercial and industrial growth from our more mature markets and commercial loans overall grew by 10% on a linked quarter, annualized basis. We're also encouraged that commercial line utilization increased to 44% at December 31, 2025. As we enter 2026, we continue to be focused on increased market share take strategies with our expanding universe of prospects in the commercial banking business."
As noted earlier, total outstanding commercial loans for the fourth quarter included approximately $567.0 million in loan originations, offset by approximately $447.0 million in loan pay downs. Line of credit usage increased to 44% as of December 31, 2025, from 41% at December 31, 2024, and increased from 43% at September 30, 2025. Total available lines of credit expanded by $241.0 million, or 5%, as compared to a year ago, and line usage increased by $257.0 million, or 14%, over that period.
Diversified Deposit Base
The bank's diversified deposit base has grown on a year-over-year basis and core deposits, which exclude brokered deposits, represented 99% of total deposits.
(in thousands)
December 31, 2025
September 30, 2025
December 31, 2024
Retail
$
1,763,452
29.5
%
$
1,724,983
28.6
%
$
1,780,726
30.2
%
Commercial
2,179,999
36.5
2,288,701
38.0
2,269,049
38.4
Public funds
1,979,327
33.2
1,834,987
30.5
1,809,631
30.7
Core deposits
5,922,778
99.2
5,848,671
97.1
5,859,406
99.3
Brokered deposits
50,572
0.8
175,647
2.9
41,560
0.7
Total
$
5,973,350
100.0
%
$
6,024,318
100.0
%
$
5,900,966
100.0
%
Total deposits increased $72.4 million, or 1%, from $5.90 billion as of December 31, 2024, to $5.97 billion as of December 31, 2025. The increase in total deposits was primarily driven by an increase in core deposits of $63.4 million, or 1%. Public funds deposits grew annually by $169.7 million, or 9%, to $1.98 billion. Public funds deposits as a percentage of total deposits were 33%, up from 31% a year ago. Growth in public funds was positively impacted by the addition of new public funds customers in the Lake City Bank footprint, including their operating accounts. Commercial deposits contracted annually by $89.1 million, or 4%, to $2.18 billion. Retail deposits contracted by $17.3 million, or 1%, to $1.76 billion.
On a linked quarter basis, total deposits decreased $51.0 million, or 1%, from $6.02 billion at September 30, 2025, to $5.97 billion at December 31, 2025. Core deposits increased by $74.1 million, or 1%, while brokered deposits decreased by $125.1 million, or 71%. The linked quarter growth in core deposits was driven primarily by a seasonal growth in public funds of $144.3 million, or 8%. Additionally, retail deposits increased by $38.5 million, or 2%.
Average total deposits were $6.16 billion for the fourth quarter of 2025, an increase of $144.4 million, or 2%, from $6.01 billion for the fourth quarter of 2024. Average interest-bearing deposits drove the increase in average total deposits and increased by $154.3 million, or 3%. Contributing to the overall growth of interest-bearing deposits was an increase to average interest-bearing checking accounts of $344.7 million, or 10%. Offsetting this increase was a reduction in average time deposits of $196.1 million, or 21%. Average noninterest-bearing demand deposits decreased by $9.9 million, or 1%, to $1.27 billion.
On a linked quarter basis, average total deposits increased by $126.0 million, or 2%, from $6.03 billion for the third quarter of 2025 to $6.16 billion for the fourth quarter of 2025. Average interest-bearing deposits drove the increase to total average deposits, which improved by $98.3 million, or 2%. An increase to interest-bearing checking accounts drove the increase to interest bearing deposits, increasing by $118.5 million, or 3%. Offsetting this increase was a decrease in total average time deposits of $16.2 million, or 2%. Average noninterest bearing demand deposits increased by $27.6 million, or 2%.
Checking account growth as of December 31, 2025, compared to December 31, 2024, includes growth of $256.6 million, or 16%, in aggregate public fund checking account balances and growth of $3.3 million, or less than 1%, in aggregate retail checking account balances. Aggregate commercial checking account balances declined by $102.8 million, or 5%. The number of accounts has also grown for all three segments, with growth of 3% for public funds accounts, 2% for commercial accounts and 1% for retail accounts during 2025.
"Deposit growth, together with other sources of on balance sheet liquidity, funded our loan growth during the year. Public fund deposits increased by 9% during 2025 due to continued growth of public fund core operating accounts. In addition, the number of commercial checking accounts increased during 2025," commented O'Neill. "We continue to add functionality to the Lake City Bank digital app to increase usability by our customers. We are encouraged by the continued growth in digital adoption which improved to 53% in 2025 compared to 51% a year ago."
Asset Quality
Provision expense was $11.8 million for the year ended December 31, 2025, a decrease of $5.0 million, or 30%, as compared to $16.8 million during 2024. Provision expense in 2025 was partially driven by the recognition of additional specific allocations related to the downgrade of a previously disclosed commercial relationship. A partial charge off of $28.6 million was recognized during the second quarter of 2025 in conjunction with the disposition of the credit together with a recovery of $800,000 during the fourth quarter of 2025 for the aforementioned credit. The remainder of provision expense was attributable to growth of the loan portfolio and a net increase in specific allocations to other watch list credits. The company recorded no provision expense in the fourth quarter of 2025, compared to provision expense of $3.7 million in the fourth quarter of 2024 and $2.0 million for the linked third quarter of 2025.
The allowance for credit loss reserve to total loans was 1.28% at December 31, 2025, down from 1.68% at December 31, 2024 and 1.30% at September 30, 2025. The decrease in allowance coverage compared to the prior year was primarily driven by the previously disclosed partial charge off that was primarily reserved for in 2024. The company recorded net recoveries of $827,000 in the fourth quarter of 2025, compared to net charge offs of $1.4 million in the fourth quarter of 2024 and $384,000 during the linked third quarter of 2025. Annualized net recoveries to average loans were 0.06% for the fourth quarter of 2025, compared to annualized net charge offs to average loans of 0.11% for the fourth quarter of 2024 and 0.03% for the linked third quarter of 2025.
Nonperforming assets decreased by $36.0 million, or 63%, to $20.9 million as of December 31, 2025, versus $56.9 million as of December 31, 2024. On a linked quarter basis, nonperforming assets increased $1.9 million, or 10%, compared to $19.1 million as of September 30, 2025. The ratio of nonperforming assets to total assets at December 31, 2025 decreased to 0.30% from 0.85% at December 31, 2024, and was up from 0.28% at September 30, 2025.
Total individually analyzed and watch list loans decreased by $27.1 million, or 13%, to $184.0 million as of December 31, 2025, versus $211.1 million as of December 31, 2024. On a linked quarter basis, total individually analyzed and watch list loans increased by $26.8 million, or 17%, from $157.2 million at September 30, 2025. The linked quarter increase in total individually analyzed and watch list loans was driven by net downgrades to the watch list that were primarily concentrated with two unrelated commercial borrowers. Watch list loans as a percentage of total loans were 3.42% at December 31, 2025, a 71 basis point decrease compared to 4.13% at December 31, 2024, and a 42 basis point increase compared to 3.00% at September 30, 2025.
"Asset quality is stable and we are pleased to have ended 2025 with improved asset quality metrics as compared to 2024," commented Findlay. "Our overall asset quality metrics are near historical lows, which is excellent, and we are encouraged by the results of our year-end loan portfolio reviews during which we met with every commercial banker and reviewed their respective portfolios. Our borrowers continue to effectively manage through this period of heightened uncertainty impacted by the evolving state of tariffs and the challenges that accompanies them."
Investment Portfolio Overview
Total investment securities were $1.19 billion at December 31, 2025, reflecting an increase of $62.3 million, or 6%, as compared to $1.12 billion at December 31, 2024. Investment securities represented 17% of total assets on December 31, 2025, unchanged from 17% at December 31, 2024 and September 30, 2025. The company anticipates receiving principal and interest cash flows of approximately $134.5 million during 2026 from the investment securities portfolio and plans to use that liquidity to fund loan growth as well as reinvestments to the investment securities portfolio. Tax equivalent adjusted effective duration for the investment portfolio was 5.9 years at December 31, 2025, compared to 6.0 years at December 31, 2024 and 5.8 years at September 30, 2025.
Noninterest Income
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. Noninterest income was elevated during the prior year primarily due to the net gain of $9.0 million on the sale of Visa shares and a $1.0 million insurance recovery. Adjusted core noninterest income, a non-GAAP financial measure that excludes the impact of these events, increased by $1.1 million, or 2%, from $46.8 million for the year ended December 31, 2024. Noninterest income for the year ended December 31, 2025, benefited from fee-based service increases to wealth advisory fees of $896,000, or 9%, loan and service fees of $462,000, or 4%, service charges on deposit accounts of $317,000, or 3%, and investment brokerage fees of $304,000, or 16%, as compared to the prior year. Wealth advisory fees growth was driven by continued client relationship expansion and increased assets under management. Commercial service fee growth was the primary contributor for the increase in loan and service fees. The expansion of investment brokerage fees was driven by increased volume and commissions on product mix. Offsetting these increases was a decrease in other income of $1.9 million, or 41%. The decline in other income was primarily attributable to reduced limited partnership income and the insurance recovery of $1.0 million in 2024.
Findlay noted, "Fee-based revenue was strong during 2025, in particular, wealth advisory fees and investment brokerage fees improved by double digit growth. The combined impact of growth in net interest income and core noninterest income during 2025 generated 6% revenue growth year-over-year."
The company's noninterest income increased $727,000, or 6%, to $12.6 million for the fourth quarter of 2025, compared to $11.9 million for the fourth quarter of 2024. Wealth advisory fees increased $277,000, or 10%, and investment brokerage fees increased $183,000, or 40%. Service fees on deposit accounts expanded $127,000, 4%. Bank owned life insurance increased $111,000, or 9%.
On a linked quarter basis, noninterest income for the fourth quarter of 2025 decreased by $351,000, or 3%, from $13.0 million during the third quarter of 2025. The linked quarter decrease was driven by a decrease to loan and service fees of $434,000, or 13%, and bank owned life insurance income of $240,000, or 15%. Loan and service fee income was elevated in the linked third quarter of 2025 due to the recognition of a loan syndication fee. Bank owned life insurance income decreased primarily from reduced performance for the company's variable bank owned life insurance policies, which trend directionally with the performance of the broader equity markets. Offsetting these declines were increases to wealth advisory fees of $121,000, or 4%, mortgage banking income of $73,000, and interest rate swap fee income of $63,000.
Noninterest Expense
Noninterest expense increased by $6.5 million, or 5%, from $125.1 million to $131.6 million for the year ended December 31, 2024 and 2025, respectively. Salaries and benefits expense increased $8.6 million, or 13%. The primary drivers for the increase to salaries and benefits expense were increased performance-based incentive compensation accruals of $5.3 million and salaries and wages of $3.3 million. Data processing fees and supplies expense increased $1.4 million, or 9%, from continued investment in customer-facing and operational technology solutions, including artificial intelligence. Net occupancy expense increased $659,000, or 10%, from the continued expansion of the bank's branch and operational networks, with the 55th branch location opening in Westfield, Indiana during 2025. Offsetting these increases was a decrease in professional fees of $1.3 million, or 14%, and other expense of $3.1 million, or 24%. Legal accruals of $4.5 million were incurred in 2024 that were related to a one-time matter, previously disclosed. Adjusted core noninterest expense, a non-GAAP financial measure, increased $11.1 million, or 9%, to $131.6 million from $120.5 million for the year ended December 31, 2025 and 2024, respectively.
Noninterest expense increased $2.8 million, or 9%, to $33.4 million for the fourth quarter of 2025, compared to $30.7 million during the fourth quarter of 2024. Salaries and benefits expense increased by $2.6 million, or 15%, primarily the result of increased accruals related to performance-based incentive compensation plans as strong year-to-date performance impacting these accruals. Data processing fees and supplies expense increased $259,000, or 7%. Net occupancy expense increased $214,000, or 13%. Corporate and business development expense increased $198,000, or 21%. Offsetting these increases was a decrease to professional fees of $389,000, or 17%.
On a linked quarter basis, noninterest expense decreased by $1.5 million, or 4%, from $35.0 million during the third quarter of 2025. The primary driver behind the linked quarter decrease to noninterest expense was a decrease to other expense of $573,000, or 20%. This decrease was due to the timing of semi-annual stock-based compensation awards to directors, that were paid in July. Salaries and employee benefits expense decreased $533,000, or 3%. Corporate and business development expenses decreased $415,000, or 27%.
The company's efficiency ratio for the year ended December 31, 2025, was 48.9%, compared to 49.3% for the year ended December 31, 2024. The company's adjusted core efficiency ratio, a non-GAAP financial measure, was 48.9% for the year ended December 31, 2025, as compared to 49.5% for the year ended December 31, 2024.
The company's efficiency ratio was 47.9% for the fourth quarter of 2025, compared to 48.2% for the fourth quarter of 2024 and 50.7% for the linked third quarter of 2025.
"The growth in noninterest expense during 2025 reflects the addition of revenue producing team members in commercial banking, wealth advisory and private banking teams that support our organic loan and deposit growth strategies. We also continued to invest in our branch footprint with a focus on adding branches in the Indianapolis market," stated Findlay. "Our low efficiency ratio highlights our disciplined growth strategy and the impact of revenue outpacing expense growth. We have plans for accelerated branch development in Indianapolis as well as South Bend, Fort Wayne and Elkhart over the next several years as we continue to grow market share in our Indiana footprint."
Information regarding Lakeland Financial Corporation may be accessed on the home page of its subsidiary, Lake City Bank, at lakecitybank.com. The company's common stock is traded on the Nasdaq Global Select Market under "LKFN." Lake City Bank, a $7.0 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 55 branch offices and a robust digital banking platform. Lake City Bank's community banking model prioritizes building in-market long-term customer relationships while delivering technology-forward solutions for retail and commercial clients.
This document contains, and future oral and written statements of the company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, performance and business of the company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the company's management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "continue," "plan," "intend," "estimate," "may," "will," "would," "could," "should" or other similar expressions. The company's ability to predict results or the actual effect of the company's operating environment or its plans or strategies is inherently uncertain and, accordingly, the reader is cautioned not to place undue reliance on any forward-looking statements made by the company. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the company undertakes no obligation to update any statement in light of new information or future events. Numerous factors could cause the company's actual results to differ from those reflected in forward-looking statements, including the effects of economic, business and market conditions and changes, particularly in our Indiana market area, including prevailing interest rates and the rate of inflation; governmental trade, monetary and fiscal policies; including any effects resulting from international government conflicts; the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities; and changes in borrowers' credit risks and payment behaviors, as well as those identified in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
LAKELAND FINANCIAL CORPORATIONFOURTH QUARTER 2025 FINANCIAL HIGHLIGHTS
Three Months Ended
Twelve Months Ended
(Unaudited, Dollars in thousands, except per share data)
December 31,
September 30,
December 31,
December 31,
December 31,
END OF PERIOD BALANCES
2025
2025
2024
2025
2024
Assets
$
6,990,022
$
6,895,028
$
6,678,374
$
6,990,022
$
6,678,374
Investments
1,185,270
1,164,737
1,122,994
1,185,270
1,122,994
Loans
5,375,349
5,248,619
5,117,948
5,375,349
5,117,948
Allowance for Credit Losses
68,995
68,168
85,960
68,995
85,960
Deposits
5,973,350
6,024,318
5,900,966
5,973,350
5,900,966
Brokered Deposits
50,572
175,647
41,560
50,572
41,560
Core Deposits (1)
5,922,778
5,848,671
5,859,406
5,922,778
5,859,406
Total Equity
762,492
747,503
683,911
762,492
683,911
Goodwill Net of Deferred Tax Assets
3,803
3,803
3,803
3,803
3,803
Tangible Common Equity (2)
758,689
743,700
680,108
758,689
680,108
Adjusted Tangible Common Equity (2)
885,298
883,865
846,040
885,298
846,040
AVERAGE BALANCES
Total Assets
$
6,993,954
$
6,850,671
$
6,795,596
$
6,878,627
$
6,662,718
Earning Assets
6,641,584
6,492,640
6,470,920
6,534,373
6,328,498
Investments
1,175,389
1,127,094
1,134,011
1,141,189
1,134,979
Loans
5,271,687
5,205,833
5,086,614
5,223,458
5,039,406
Total Deposits
6,155,526
6,029,557
6,011,122
6,039,821
5,836,025
Interest Bearing Deposits
4,883,496
4,785,176
4,729,201
4,785,109
4,578,219
Interest Bearing Liabilities
4,893,050
4,818,115
4,729,206
4,829,098
4,644,553
Total Equity
760,954
717,428
693,744
718,029
662,087
INCOME STATEMENT DATA
Net Interest Income
$
57,193
$
56,073
$
51,694
$
221,017
$
196,679
Net Interest Income-Fully Tax Equivalent
58,307
57,180
52,804
225,458
201,363
Provision for Credit Losses
0
2,000
3,691
11,800
16,750
Noninterest Income
12,603
12,954
11,876
47,971
56,844
Noninterest Expense
33,445
34,965
30,653
131,605
125,084
Net Income
29,906
26,404
24,190
103,361
93,478
Pretax Pre-Provision Earnings (2)
36,351
34,062
32,917
137,383
128,439
PER SHARE DATA
Basic Net Income Per Common Share
$
1.16
$
1.03
$
0.94
$
4.02
$
3.64
Diluted Net Income Per Common Share
1.16
1.03
0.94
4.01
3.63
Cash Dividends Declared Per Common Share
0.50
0.50
0.48
2.00
1.92
Dividend Payout
43.10
%
48.54
%
51.06
%
49.88
%
52.89
%
Book Value Per Common Share (equity per share issued)
$
30.02
$
29.08
$
26.62
$
30.02
$
26.62
Three Months Ended
Twelve Months Ended
(Unaudited, Dollars in thousands, except per share data)
December 31,
September 30,
December 31,
December 31,
December 31,
PER SHARE DATA (continued)
2025
2025
2024
2025
2024
Tangible Book Value Per Common Share (2)
29.87
28.93
26.47
29.87
26.47
Market Value, High
$
65.43
$
69.40
$
78.61
$
71.77
$
78.61
Market Value, Low
56.04
59.08
61.10
50.00
57.45
Basic Weighted Average Common Shares Outstanding
25,623,703
25,703,699
25,686,276
25,687,159
25,676,543
Diluted Weighted Average Common Shares Outstanding
25,770,280
25,821,360
25,792,460
25,799,047
25,769,018
KEY RATIOS
Return on Average Assets
1.70
%
1.53
%
1.42
%
1.50
%
1.40
%
Return on Average Total Equity
15.59
14.60
13.87
14.40
14.12
Average Equity to Average Assets
10.88
10.47
10.21
10.44
9.94
Net Interest Margin
3.48
3.50
3.25
3.45
3.18
Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income)
47.92
50.65
48.22
48.93
49.34
Loans to Deposits
89.99
87.12
86.73
89.99
86.73
Investment Securities to Total Assets
16.96
16.89
16.82
16.96
16.82
Tier 1 Leverage (3)
12.39
12.56
12.15
12.39
12.15
Tier 1 Risk-Based Capital (3)
14.77
15.05
14.64
14.77
14.64
Common Equity Tier 1 (CET1) (3)
14.77
15.05
14.64
14.77
14.64
Total Capital (3)
15.92
16.21
15.90
15.92
15.90
Tangible Capital (2)
10.86
10.79
10.19
10.86
10.19
Adjusted Tangible Capital (2)
12.45
12.57
12.37
12.45
12.37
ASSET QUALITY
Loans Past Due 30 - 89 Days
$
2,320
$
984
$
4,273
$
2,320
$
4,273
Loans Past Due 90 Days or More
7
7
28
7
28
Nonaccrual Loans
