Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent
company of Lake City Bank, today reported net income of $22.5
million for the three months ended June 30, 2024, which
represents an increase of $7.9 million, or 54%, compared with net
income of $14.6 million for the three months ended June 30,
2023. Diluted earnings per share were $0.87 for the second quarter
of 2024 and increased 53% compared to $0.57 for the second quarter
of 2023. On a linked quarter basis, net income decreased $852,000,
or 4%, from first quarter 2024 net income of $23.4 million and
diluted earnings per share decreased $0.04 or 4% from $0.91 at
March 31, 2024.
Pretax pre-provision earnings, which is a non-GAAP measure, were
$35.4 million for the three months ended June 30, 2024, an increase
of $18.1 million, or 105%, compared to $17.3 million for the three
months ended June 30, 2023. On a linked quarter basis, pretax
pre-provision earnings increased $6.1 million, or 21%, compared to
$29.3 million for the first quarter of 2024.
“We are pleased to report healthy loan and core deposit growth
during the first six months of 2024. While the financial services
sector continues to battle the impact of higher interest rates, we
are pleased with our overall operating performance in 2024. We have
experienced healthy increases in core noninterest income
categories, which have contributed to annual revenue growth of 6%,
or $6.9 million, for the first six months of 2024. We opened our
54th branch and eighth location in the Indianapolis region this
week and have three additional branches in the market in various
stages of planning,” stated David M. Findlay, Chairman and Chief
Executive Officer. “We are encouraged by the significant
investments taking place throughout our footprint and are excited
to play a role in the great expansion and innovation occurring
throughout the state.”
The company further reported net income of $46.0 million for the
six months ended June 30, 2024, versus $38.9 million for the
comparable period of 2023, an increase of 18%, or $7.1 million.
Diluted earnings per share also increased 18% to $1.78 for the six
months ended June 30, 2024, versus $1.51 for the comparable
period of 2023. Pretax pre-provision earnings were $64.7 million
for the six months ended June 30, 2024, an increase of $15.0
million, or 30%, compared to $49.7 million for the six months ended
June 30, 2023.
Quarterly Financial Performance
Second Quarter 2024 versus Second Quarter 2023 highlights:
- Return on average equity of 14.19%, compared to 9.70%
- Return on average assets of 1.37%, compared to 0.91%
- Tangible book value per share grew by $2.37, or 10%, to
$25.34
- Average loans grew by $237.1 million, or 5%, to $5.03
billion
- Average investments declined by $92.1 million, or 8%
- Core deposit growth of $247.8 million, or 5%
- Net interest margin of 3.17% versus 3.28%
- Noninterest income growth of $8.9 million, or 78%
- Net gain on Visa shares of $9.0 million
- Revenue improves by 15% to $68.7 million
- Noninterest expense declined by $9.4 million, or 22%
- Provision expense of $8.5 million, compared to $800,000
- Net charge offs of $949,000 versus net recoveries of
$43,000
- Nonperforming loans increased from $18.0 million to $57.2
million
- Watch list loans as a percentage of total loans increased to
5.31% from 3.83%
- Average equity to average assets increased 23 basis points to
9.62%
- Total risk-based capital ratio of 15.54%, compared to
14.93%
- Cash dividends per share increased by $0.02, or 4%, to $0.48
per share
- Tangible capital ratio improved to 9.91%, compared to
9.04%
Second Quarter 2024 versus First Quarter 2024 highlights:
- Return on average equity of 14.19%, compared to 14.59%
- Return on average assets of 1.37%, compared to 1.44%
- Average loans grew by $63.8 million, or 1%, to $5.03
billion
- Average investments declined by $39.7 million, or 3%
- Core deposits increased by $170.2 million, or 3%
- Net interest margin improved 2 basis points, or 1%
- Noninterest income increased by $7.8 million, or 62%
- Noninterest expense increased by $2.6 million, or 9%
- Provision expense of $8.5 million compared to $1.5 million
- Net charge offs of $949,000 compared to $312,000
- Nonperforming loans increased from $14.8 million to $57.2
million
- Watch list loans as a percentage of total loans increased to
5.31% from 3.67%
- Total risk-based capital ratio improved to 15.54% from
15.46%
- Tangible capital ratio of 9.91%, compared to 9.80%
- Tangible common equity growth of $7.6 million, or 1%
The company’s performance in the second quarter was impacted by
two non-routine events. During the quarter, the bank recognized
$9.0 million in net gains on Visa shares previously carried at cost
basis of $0 since 2008. On April 8, 2024, Visa Inc. announced the
commencement of an exchange offer for Visa Class B-1 common stock
and the bank subsequently tendered its Visa Class B-1 common stock
in exchange for a combination of Visa Class C common stock and Visa
Class B-2 common stock. After entering the exchange, the bank
redeemed two-thirds of its Visa Class C common stock and sold its
remaining Visa B-2 common stock in the secondary market. As of June
30, 2024, the bank holds 1,574 shares of Visa Class C common stock
valued at $1.7 million and intends to redeem these remaining shares
during the third quarter of 2024 pursuant to the Visa redemption
provisions. In addition, the company incurred a one-time accrual of
$4.5 million related to the resolution of a legal matter during the
second quarter. The lawsuit against the bank related to this
resolution was dismissed by the court.
Capital Strength
The company’s total capital as a percentage of risk-weighted
assets improved to 15.54% at June 30, 2024, compared to 14.93%
at June 30, 2023 and 15.46% at March 31, 2024. These
capital levels are well in excess of the 10.00% regulatory
threshold required to be characterized as “well capitalized” and
reflect a strengthening of the company's exceptionally sound
capital base.
The company’s tangible common equity to tangible assets ratio,
which is a non-GAAP financial measure, improved to 9.91% at
June 30, 2024, compared to 9.04% at June 30, 2023 and
9.80% at March 31, 2024. Unrealized losses from
available-for-sale investment securities were $194.9 million at
June 30, 2024, compared to $202.0 million at June 30,
2023 and $189.9 million at March 31, 2024. When 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, improved to 12.18% at June 30, 2024,
compared to 11.45% at June 30, 2023 and 12.03% at
March 31, 2024.
“Strong capital levels are critical to the bank’s ability to
grow our balance sheet and result from our long and consistent
track record of profitability,” commented Kristin L. Pruitt,
President. “Our capital position provides stability to support our
continued balance sheet growth, and also provides for our dividend
growth for shareholders.”
As announced on July 9, 2024, the board of directors
approved a cash dividend for the second quarter of $0.48 per share,
payable on August 5, 2024, to shareholders of record as of
July 25, 2024. The second quarter dividend per share
represents a 4% increase from the $0.46 dividend per share paid for
the second quarter of 2023.
Loan Portfolio
Average total loans of $5.03 billion in the second quarter of
2024, increased $237.1 million, or 5%, from $4.80 billion for the
second quarter of 2023, and increased $63.8 million, or 1%, from
$4.97 billion for the first quarter of 2024. Average total loans
for the six months ended June 30, 2024, were $5.00 billion, an
increase of $241.2 million, or 5%, from $4.76 billion for the six
months ended June 30, 2023.
“We are pleased to have crossed the $5.0 billion milestone for
loans during 2024, which has been achieved through our 152 year
history of organic growth,” added Findlay. “As we look to the
future, we are confident that our Indiana communities will continue
the strong economic growth and vitality that we have experienced
over the past several years. In fact, 40% of our footprint is
projected to experience high growth in population of 10%-70% from
2015 through 2050 as measured by the Indiana Business Center and
the Kelley School of Business at Indiana University.”
Total loans increased by $190.1 million, or 4%, from $4.86
billion as of June 30, 2023, to $5.05 billion as of
June 30, 2024. The increase in loans occurred across much of
the portfolio with increases to commercial real estate and
multi-family residential loans of $127.0 million, or 5%, commercial
and industrial working lines of credit loans of $79.1 million, or
13%, and total consumer 1-4 family mortgage loans of $38.5 million,
or 9%. These increases were offset by decreases to commercial and
industrial non-working capital loans of $22.7 million, or 3%, total
agribusiness and agricultural loans of $13.9 million, or 4%, and
other commercial loans of $24.3 million, or 20%. On a linked
quarter basis, total loans increased by $54.8 million, or 1%, from
$4.998 billion to $5.05 billion at June 30, 2024. The linked
quarter increase was primarily a result of growth in commercial and
industrial working lines of credit loans $51.3 million, or 8%, and
growth in total commercial real estate and multi-family residential
loans of $25.9 million, or 1%.
Commercial loan originations for the second quarter included
approximately $369.0 million in loan originations, offset by
approximately $324.0 million in commercial loan pay downs. Line of
credit usage increased to 41% on June 30, 2024, compared to
40% at June 30, 2023, and 39% at March 31, 2024. Total
available lines of credit contracted by $107.0 million, or 2%, as
compared to a year ago, and line usage increased by $5.0 million,
or less than 1%, for the same period. The company has limited
exposure to commercial office space borrowers, all of which are in
the bank’s Indiana markets. Loans totaling $101.2 million for this
sector represented 2% of total loans at June 30, 2024, an
increase of $27.6 million, or 37%, from March 31, 2024.
Commercial real estate loans secured by multi-family residential
properties and secured by non-farm non-residential properties were
approximately 205% of total risk-based capital at June 30,
2024.
Diversified Deposit Base
The bank's diversified deposit base has remained stable on a
year over year basis and on a linked quarter basis.
|
DEPOSIT DETAIL(unaudited, in
thousands) |
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
Retail |
$ |
1,724,777 |
|
29.9 |
% |
|
$ |
1,770,007 |
|
31.5 |
% |
|
$ |
1,821,607 |
|
33.6 |
% |
Commercial |
|
2,150,127 |
|
37.3 |
|
|
|
2,117,536 |
|
37.7 |
|
|
|
2,082,564 |
|
38.4 |
|
Public
fund |
|
1,727,593 |
|
30.0 |
|
|
|
1,544,775 |
|
27.5 |
|
|
|
1,450,527 |
|
26.7 |
|
Core
deposits |
|
5,602,497 |
|
97.2 |
|
|
|
5,432,318 |
|
96.7 |
|
|
|
5,354,698 |
|
98.7 |
|
Brokered
deposits |
|
161,040 |
|
2.8 |
|
|
|
185,767 |
|
3.3 |
|
|
|
68,361 |
|
1.3 |
|
Total |
$ |
5,763,537 |
|
100.0 |
% |
|
$ |
5,618,085 |
|
100.0 |
% |
|
$ |
5,423,059 |
|
100.0 |
% |
Total deposits increased $340.5 million, or 6%, from $5.42
billion as of June 30, 2023, to $5.76 billion as of
June 30, 2024. The increase in total deposits was driven by an
increase in core deposits (which excludes brokered deposits) of
$247.8 million, or 5%. Total core deposits at June 30, 2024
were $5.60 billion and represented 97% of total deposits, as
compared to $5.35 billion and 99% of total deposits at
June 30, 2023. Brokered deposits were $161.0 million, or 3% of
total deposits, at June 30, 2024, compared to $68.4 million,
or 1% of total deposits, at June 30, 2023.
Core deposit composition remains stable with commercial deposits
accounting for 37% of total deposits, public funds increasing to
30% of total deposits and retail deposits contracting to 30% of
total deposits as of June 30, 2024. The change in composition of
core deposits since June 30, 2023, reflects growth in
commercial deposits and public funds deposits. Commercial deposits
grew annually by $67.6 million to $2.15 billion, or 3%. Public
funds deposits grew annually by $277.1 million to $1.73 billion, or
19%. Retail deposits contracted annually by $96.8 million, or 5%.
Public fund growth was positively impacted by the addition of a new
public fund customer in the Lake City Bank footprint and the
addition of its operating accounts. Net retail outflows since
June 30, 2023 reflect the continued utilization of deposits
from peak savings levels during 2021.
“We are pleased that core deposits represent 97% of total
deposits and annual core deposit growth has exceeded loan funding
requirements in 2024, enabling the bank to reduce reliance on more
expensive wholesale funding. Continued growth of our core deposit
franchise is critical to our long-term growth,” noted Findlay.
“Checking account growth is evident across all three deposit
sectors despite contraction in retail deposits.”
On a linked quarter basis, total deposits increased $145.5
million, or 3%, from $5.62 billion at March 31, 2024 to $5.76
billion at June 30, 2024. Core deposits increased by $170.2
million, or 3%, while brokered deposits decreased by $24.7 million,
or 13%. Linked quarter growth in core deposits resulted from
expansion in public fund deposits of $182.8 million, or 12%, and
commercial deposits of $32.6 million, or 2%. Retail deposits
contracted by $45.2 million, or 3%.
Average total deposits were $5.82 billion for the second quarter
of 2024, an increase of $268.8 million, or 5%, from $5.55 billion
for the second quarter of 2023. Average interest-bearing deposits
drove the increase to average total deposits, increasing $488.3
million, or 12%. Contributing to this increase were increases to
average interest-bearing checking accounts of $345.2 million, or
12%, and average time deposits of $214.2 million, or 26%.
Offsetting these increases was a decrease to average savings
deposits of $71.1 million, or 20%. Average noninterest-bearing
demand deposits decreased by $219.5 million, or 15%.
On a linked quarter basis, average total deposits increased by
$189.5 million, or 3%, from $5.63 billion for the first quarter of
2024 to $5.82 billion for the second quarter of 2024. Average
interest-bearing deposits drove the increase to total average
deposits, increasing by $232.7 million, or 5%. Interest bearing
checking accounts increased by $228.5 million, or 8%, and total
average time deposits increased by $10.7 million, or 1%. Average
noninterest-bearing demand deposits decreased by $43.2 million, or
3%.
Checking account trends compared to June 30, 2023,
demonstrate average aggregate checking account balance growth of
$221.4 million, or 17%, for aggregate public fund checking account
balances and $66.4 million, or 3%, for aggregate commercial
checking account balances, offset by a contraction of $33.4
million, or 4%, for aggregate retail checking account balances. The
number of accounts also has grown for all three segments, with
growth of 3% for commercial accounts, 2% for retail accounts and
17% for public fund accounts.
Deposits not covered by FDIC deposit insurance as a percentage
of total deposits were 58% as of June 30, 2024, compared to
54% at both March 31, 2024, and June 30, 2023. Deposits
not covered by FDIC deposit insurance or the Indiana Public Deposit
Insurance Fund (which insures public fund deposits in Indiana),
were 29% of total deposits as of June 30, 2024, compared to
27% at March 31, 2024, and 28% as of June 30, 2023. As of
June 30, 2024, 98% of deposit accounts had deposit balances
less than $250,000.
Liquidity Overview
The bank has robust liquidity resources. These resources include
secured borrowings available from the Federal Home Loan Bank and
the Federal Reserve Bank Discount Window. In addition, the bank has
unsecured borrowing capacity through long established relationships
within the brokered deposits markets, Federal Funds lines from
correspondent bank partners, and Insured Cash Sweep (ICS) one-way
buy funds available from the Intrafi network. As of June 30,
2024, the company had access to an aggregate of $3.3 billion
in liquidity from these sources, compared to $2.9 billion at
June 30, 2023 and $3.1 billion at March 31, 2024.
Utilization from these sources totaled $161.0 million at
June 30, 2024, compared to $468.4 million at June 30,
2023 and $385.8 million at March 31, 2024. Core deposits have
historically represented, and currently represent, the primary
funding resource of the bank at 96% of total deposits and purchased
funds.
Investment Portfolio Overview
Total investment securities were $1.12 billion at June 30,
2024, reflecting a decrease of $67.3 million, or 6%, as compared to
$1.19 billion at June 30, 2023. On a linked quarter basis,
investment securities decreased $21.0 million, or 2%, due primarily
to portfolio cash flows of $15.2 million and a decline in the fair
value of available-for-sale securities of $5.0 million. Investment
securities represented 17% of total assets on June 30, 2024,
compared to 18% on June 30, 2023, and 17% on March 31,
2024. The ratio of investment securities as a percentage of total
assets remains elevated over historical levels of approximately 12%
to 14%. The company expects the investment securities portfolio as
a percentage of assets to continue to decrease over time as the
proceeds from pay downs, sales and maturities are used to fund loan
portfolio growth and for general liquidity purposes. Tax equivalent
adjusted effective duration for the investment portfolio was 6.5
years at June 30, 2024, compared to 6.6 years at March 31,
2024 and June 30, 2023. Effective duration of the investment
portfolio remains elevated as compared to 4.0 years at December 31,
2019 before the deployment of excess liquidity to the investment
portfolio and the rise in interest rates from the recent tightening
cycle by the Federal Reserve. The company anticipates receiving
principal and interest cash flows of approximately $52.4 million
throughout the remainder of 2024 from its investment securities
portfolio.
Net Interest Margin
Net interest margin was 3.17% for the second quarter of 2024,
representing an 11 basis point decrease from 3.28% for the second
quarter of 2023. Earning assets yields increased by 42 basis points
to 6.07% for the second quarter of 2024, up from 5.65% for the
second quarter of 2023. The increase in earning asset yields was
offset by an increase in the company's funding costs of 53 basis
points as interest expense as a percentage of average earning
assets increased to 2.90% for the second quarter of 2024 from 2.37%
for the second quarter of 2023. While earning asset yields
benefited from a 25 basis point increase in the target Federal
Funds Rate between June 30, 2023 and 2024, the company has
experienced an offsetting increase to funding costs from increased
competition for deposits throughout the industry. Notably, a
deposit mix shift from noninterest bearing deposits to interest
bearing deposits has further eroded net interest margin with
noninterest bearing deposits as a percentage of total deposits
declining to 21% at June 30, 2024, compared to 27% at June 30, 2023
and 22% at March 31, 2024.
Linked quarter net interest margin expanded by 2 basis points to
3.17% for the second quarter of 2024, compared to 3.15% for the
first quarter of 2024. Average earning asset yields increased by 10
basis points from 5.97% during the first quarter of 2024 to 6.07%
during the second quarter of 2024 and were offset by an 8 basis
point increase in interest expense as a percentage of average
earning assets. The increase in linked quarter interest expense was
driven by continued upward pressure in deposit costs.
“The expansion of net interest margin on a linked quarter basis
is directionally encouraging and highlights the positive impact of
loan growth on earning asset yields. In addition, we have
successfully tested deposit rate sensitivity for selective products
and will continue to evaluate additional opportunities in the
future,” stated Lisa M. O’Neill, Executive Vice President, and
Chief Financial Officer. “Our reduced asset sensitivity posture
positions the bank well for the anticipated Federal Reserve Bank
easing that is expected to occur in the second half of 2024.”
The cumulative loan beta, which measures the sensitivity of a
bank's average loan yield to changes in short-term interest rates,
is 56% for the current rate-tightening cycle, compared to 61%
during the prior tightening cycle from 2016 through 2019. The
cumulative deposit beta, which measures the sensitivity of a bank's
deposit cost to changes in short-term interest rates, is 54% for
the current rate-tightening cycle, compared to 45% during the prior
tightening cycle.
Net interest income was $48.3 million for the second quarter of
2024, representing a decrease of $228,000, or less than 1%, as
compared to the second quarter of 2023. On a linked quarter basis,
net interest income increased $880,000, or 2%, from $47.4 million
for the first quarter of 2024. Net interest income decreased by
$4.3 million, or 4%, from $100.0 million for the six months ended
June 30, 2023 to $95.7 million for the six months ended
June 30, 2024.
Asset Quality
The company recorded a provision for credit losses of $8.5
million in the second quarter of 2024, an increase of $7.7 million,
as compared to $800,000 in the second quarter of 2023. On a linked
quarter basis, the provision expense increased by $7.0 million,
from $1.5 million for the first quarter of 2024. The provision
expense recorded during the second quarter of 2024 was primarily
attributable to an increase in the specific reserve allocation from
the downgrade of a single $43.3 million commercial relationship
that was placed on nonperforming status during the second quarter
of 2024. The downgraded borrower is an industrial company in
Northern Indiana.
The ratio of allowance for credit losses to total loans was
1.60% at June 30, 2024, up from 1.48% at June 30, 2023,
and 1.46% at March 31, 2024. Net charge offs in the second
quarter of 2024 were $949,000, compared to net recoveries of
$43,000 in the second quarter of 2023 and net charge offs of
$312,000 during the linked first quarter of 2024. Annualized net
charge offs to average loans were 0.08% for the second quarter of
2024, compared to none for the second quarter of 2023 and 0.03% for
the linked first quarter of 2024.
Nonperforming assets increased $39.2 million, or 213%, to $57.6
million as of June 30, 2024, versus $18.4 million as of
June 30, 2023. On a linked quarter basis, nonperforming assets
increased $42.4 million, or 278%, compared to $15.2 million as of
March 31, 2024. The ratio of nonperforming assets to total
assets at June 30, 2024 increased to 0.88% from 0.28% at
June 30, 2023 and from 0.23% at March 31, 2024. These
increases were driven by the nonperforming loan relationship
described above.
Total individually analyzed and watch list loans increased by
$82.2 million, or 44%, to $268.3 million as of June 30, 2024,
versus $186.0 million as of June 30, 2023. On a linked quarter
basis, total individually analyzed and watch list loans increased
by $84.9 million, or 46%, from $183.3 million at March 31,
2024. Watch list loans as a percentage of total loans increased by
148 basis points to 5.31% at June 30, 2024, compared to 3.83%
at June 30, 2023, and increased by 164 basis points from 3.67%
at March 31, 2024. The increase in individually analyzed and
watch list loans during the second quarter of 2024 was primarily
driven by the downgrade of the $43.3 million commercial
relationship to nonperforming status. In addition to this
relationship, three other commercial relationships with an
aggregate balance of $40.5 million were downgraded to the watch
list during the second quarter of 2024.
“While we have not experienced any broad-based loan portfolio
concerns, we are disappointed by the increase in our nonperforming
loans, driven by the single industrial credit relationship. We are
working closely with the borrower to improve the operating
performance of the business,” stated Findlay. “Encouragingly, the
second quarter Commercial Portfolio Reviews did not identify any
meaningful shifts in credit quality across the bank’s diversified
loan portfolio,” Findlay continued. “We continue to stress test our
portfolio, particularly on the interest rate front, and have not
identified any meaningful concerns. In addition, our commercial
real estate portfolio continues to be a focus, and while we have
identified a few downgrades in that portfolio, the portfolio is
performing well overall. Finally, with an allowance for credit
losses at 1.6% of total loans, we continue to approach asset
quality management conservatively.”
Noninterest Income
The company’s noninterest income increased $8.9 million, or 78%,
to $20.4 million for the second quarter of 2024, compared to $11.5
million for the second quarter of 2023. The increase in noninterest
income was driven primarily by the net gain on Visa shares of $9.0
million. Wealth advisory fees increased $326,000, or 14%, because
of new volume growth in addition to favorable market performance.
Bank owned life insurance income increased $197,000, or 28%,
primarily from improved market performance of the company's
variable bank owned life insurance policies. Offsetting these
increases was a decrease in interest rate swap fee income of
$794,000, or 100%, due to no new swap fee activity during the
quarter. Adjusted core noninterest income, a non-GAAP financial
measure that excludes the impact of certain non-routine events,
including the net gain on Visa shares referenced above, was $11.4
million for the second quarter of 2024, a decrease of $73,000, or
1%, compared to $11.5 million for the second quarter of 2023.
Noninterest income for the second quarter of 2024 increased by
$7.8 million, or 62%, on a linked quarter basis from $12.6 million
during the first quarter of 2024. The linked quarter increase was
driven largely by the net gain on Visa shares of $9.0 million.
Offsetting this activity was a decrease in other income of $1.5
million, or 68%. Linked first quarter other income benefited from
the recognition of a $1.0 million insurance recovery related to the
wire fraud loss and income from the company's bank owned life
insurance policies. Adjusted core non-interest income decreased
$184,000, or 2%, from $11.6 million for the linked first quarter of
2024.
Noninterest income increased by $11.2 million, or 52%, to $33.1
million for the six months ended June 30, 2024, compared to
$21.8 million for the prior year six-month period. The increase in
noninterest income was driven primarily by net gain on Visa shares
of $9.0 million. Additionally, other income increased $1.6 million,
or 120%, wealth advisory fees increased $581,000, or 13%, bank
owned life insurance income increased $542,000, or 39%, and
mortgage banking income increased $209,000. Other income increased
from the insurance recovery and bank owned life insurance benefit
received during the first quarter of 2024. Wealth advisory fees
increased from new volume growth in addition to favorable market
performance. Bank owned life insurance income increased through an
improvement in market valuation for the company's variable bank
owned life insurance policies, which are tied to the performance of
the equity markets. Adjusted core noninterest income for the six
months ended June 30, 2024, was $23.0 million, an increase of
$1.2 million, or 6%, compared to $21.8 million for the six months
ended June 30, 2023.
Noninterest Expense
Noninterest expense decreased $9.4 million, or 22%, to $33.3
million for the second quarter of 2024, compared to $42.7 million
during the second quarter of 2023. Noninterest expense for the
second quarter of 2023 included an $18.1 million wire fraud loss.
During the second quarter 2024 salaries and benefits expense
increased $4.8 million, or 42%, other expense increased $3.5
million, or 138%, and data processing fees and supplies expense
increased $338,000, or 10%, compared to the second quarter of 2023.
Salaries and employee benefits expense increased due to higher
performance-based incentive compensation of $2.9 million, salaries
and wages increases of $1.5 million and increased health insurance
expense of $500,000. During the second quarter of 2023
performance-based incentive accruals were reversed by $1.9 million
due to the wire fraud loss. Other expense increased primarily due
to a $4.5 million litigation accrual. Data processing fees
increased due to investments in software, digital banking, and core
data processing technologies. Adjusted core noninterest expense, a
non-GAAP financial measure that excludes the impact of certain
non-routine operating events, including the litigation accrual
referenced above, was $28.8 million for the three months ended
June 30, 2024, an increase of $2.3 million, or 9%, from $26.5
million for the three months ended June 30, 2023.
On a linked quarter basis, noninterest expense increased by $2.6
million, or 9%, from $30.7 million during the first quarter of
2024. Other expense increased by $3.9 million, or 172% due to the
$4.5 million legal accrual. Offsetting this increase was a decrease
in salaries and employee benefits of $675,000, or 4%, and a
decrease in professional fees of $340,000, or 14%. The decrease in
salaries and employee benefits was attributable to reduced variable
compensation expense related to a decline in linked quarter market
performance for the company's variable bank owned life insurance
policies and a reduction in employee benefits expense caused by the
timing of the company's annual HSA contributions. Professional fees
decreased due primarily to a reduction in legal expense incurred
during the quarter. Adjusted core noninterest expense decreased by
$1.9 million, or 6%, on a linked quarter basis from $30.7 million
for the first quarter of 2024.
Noninterest expense decreased by $8.1 million, or 11%, for the
six months ended June 30, 2024, to $64.0 million compared to
$72.2 million for the six months ended June 30, 2023. The
primary driver behind the decrease was the $18.1 million wire fraud
loss recorded during the second quarter of 2023. Offsetting this
decrease were increases to salaries and employee benefits expense
of $5.6 million, or 20%, other expense of $3.2 million or 63%, data
processing fees of $725,000, or 10%, and professional fees of
$416,000, or 10%. The increase to data processing fees resulted
from continued investment in customer-facing and operational
technology solutions. Professional fees increased due to higher
costs to implement technology solutions as well as higher legal and
accounting costs. Adjusted core noninterest expense was $59.5
million for the six months ended June 30, 2024, an increase of
$3.5 million, or 6%, from $56.0 million recorded during the
comparable period of 2023.
“We continue to invest in the disciplined growth of the bank
with a focus on people and technology. Our teams have grown to
support revenue generation positions, technology, data analytics,
and credit support functions,” stated Findlay. “We are also
thrilled to support our annual internship program with seventeen
interns that are participating in numerous departments throughout
the bank and support our talent generation pipeline.”
The company’s efficiency ratio was 48.5% for the second quarter
of 2024, compared to 71.2% for the second quarter of 2023 and 51.2%
for the linked first quarter of 2024. The company's adjusted core
efficiency ratio, a non-GAAP measure that excludes the impact of
certain non-routine operating events, was 48.2% for the second
quarter of 2024, compared to 44.2% for the second quarter of 2023
and 52.0% for the linked first quarter of 2024.
The company's efficiency ratio was 49.7% for the six months
ended June 30, 2024, compared to 59.2% for the comparable
period in 2023. The company's adjusted core efficiency ratio was
50.1% for the six months ended June 30, 2024 compared to 45.9%
for the comparable period in 2023.
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 $6.6
billion bank headquartered in Warsaw, Indiana, was founded in 1872
and serves Central and Northern Indiana communities with 54 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, future 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
future 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 monetary and fiscal policies; 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
CORPORATIONSECOND
QUARTER 2024 FINANCIAL
HIGHLIGHTS |
|
|
Three Months Ended |
|
Six Months Ended |
(Unaudited – Dollars in
thousands, except per share data) |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
END OF PERIOD BALANCES |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Assets |
$ |
6,568,807 |
|
|
$ |
6,566,861 |
|
|
$ |
6,509,546 |
|
|
$ |
6,568,807 |
|
|
$ |
6,509,546 |
|
Investments |
|
1,123,803 |
|
|
|
1,144,816 |
|
|
|
1,191,139 |
|
|
|
1,123,803 |
|
|
|
1,191,139 |
|
Loans |
|
5,052,341 |
|
|
|
4,997,559 |
|
|
|
4,862,260 |
|
|
|
5,052,341 |
|
|
|
4,862,260 |
|
Allowance for Credit Losses |
|
80,711 |
|
|
|
73,180 |
|
|
|
72,058 |
|
|
|
80,711 |
|
|
|
72,058 |
|
Deposits |
|
5,763,537 |
|
|
|
5,618,085 |
|
|
|
5,423,059 |
|
|
|
5,763,537 |
|
|
|
5,423,059 |
|
Brokered Deposits |
|
161,040 |
|
|
|
185,767 |
|
|
|
68,361 |
|
|
|
161,040 |
|
|
|
68,361 |
|
Core Deposits (1) |
|
5,602,497 |
|
|
|
5,432,318 |
|
|
|
5,354,698 |
|
|
|
5,602,497 |
|
|
|
5,354,698 |
|
Total Equity |
|
654,590 |
|
|
|
647,009 |
|
|
|
591,995 |
|
|
|
654,590 |
|
|
|
591,995 |
|
Goodwill Net of Deferred Tax Assets |
|
3,803 |
|
|
|
3,803 |
|
|
|
3,803 |
|
|
|
3,803 |
|
|
|
3,803 |
|
Tangible Common Equity (2) |
|
650,787 |
|
|
|
643,206 |
|
|
|
588,192 |
|
|
|
650,787 |
|
|
|
588,192 |
|
Adjusted Tangible Common Equity (2) |
|
820,534 |
|
|
|
809,395 |
|
|
|
765,090 |
|
|
|
820,534 |
|
|
|
765,090 |
|
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
6,642,954 |
|
|
$ |
6,554,468 |
|
|
$ |
6,432,929 |
|
|
$ |
6,598,711 |
|
|
$ |
6,422,562 |
|
Earning Assets |
|
6,295,281 |
|
|
|
6,216,929 |
|
|
|
6,096,284 |
|
|
|
6,256,105 |
|
|
|
6,082,009 |
|
Investments |
|
1,118,776 |
|
|
|
1,158,503 |
|
|
|
1,210,870 |
|
|
|
1,138,639 |
|
|
|
1,230,421 |
|
Loans |
|
5,034,851 |
|
|
|
4,971,020 |
|
|
|
4,797,742 |
|
|
|
5,002,935 |
|
|
|
4,761,784 |
|
Total Deposits |
|
5,819,962 |
|
|
|
5,630,431 |
|
|
|
5,551,145 |
|
|
|
5,725,196 |
|
|
|
5,519,545 |
|
Interest Bearing Deposits |
|
4,589,059 |
|
|
|
4,356,328 |
|
|
|
4,100,749 |
|
|
|
4,472,693 |
|
|
|
3,963,668 |
|
Interest Bearing Liabilities |
|
4,666,136 |
|
|
|
4,532,137 |
|
|
|
4,287,167 |
|
|
|
4,599,136 |
|
|
|
4,177,658 |
|
Total Equity |
|
638,999 |
|
|
|
645,007 |
|
|
|
603,999 |
|
|
|
642,003 |
|
|
|
594,852 |
|
INCOME STATEMENT
DATA |
|
|
|
|
|
|
|
|
|
Net Interest Income |
$ |
48,296 |
|
|
$ |
47,416 |
|
|
$ |
48,524 |
|
|
$ |
95,712 |
|
|
$ |
100,043 |
|
Net Interest Income-Fully Tax Equivalent |
|
49,493 |
|
|
|
48,683 |
|
|
|
49,842 |
|
|
|
98,176 |
|
|
|
102,727 |
|
Provision for Credit Losses |
|
8,480 |
|
|
|
1,520 |
|
|
|
800 |
|
|
|
10,000 |
|
|
|
5,150 |
|
Noninterest Income |
|
20,439 |
|
|
|
12,612 |
|
|
|
11,501 |
|
|
|
33,051 |
|
|
|
21,815 |
|
Noninterest Expense |
|
33,333 |
|
|
|
30,705 |
|
|
|
42,734 |
|
|
|
64,038 |
|
|
|
72,168 |
|
Net Income |
|
22,549 |
|
|
|
23,401 |
|
|
|
14,611 |
|
|
|
45,950 |
|
|
|
38,889 |
|
Pretax Pre-Provision Earnings (2) |
|
35,402 |
|
|
|
29,323 |
|
|
|
17,291 |
|
|
|
64,725 |
|
|
|
49,690 |
|
PER SHARE
DATA |
|
|
|
|
|
|
|
|
|
Basic Net Income Per Common Share |
$ |
0.88 |
|
|
$ |
0.91 |
|
|
$ |
0.57 |
|
|
$ |
1.79 |
|
|
$ |
1.52 |
|
Diluted Net Income Per Common Share |
|
0.87 |
|
|
|
0.91 |
|
|
|
0.57 |
|
|
|
1.78 |
|
|
|
1.51 |
|
Cash Dividends Declared Per Common Share |
|
0.48 |
|
|
|
0.48 |
|
|
|
0.46 |
|
|
|
0.96 |
|
|
|
0.92 |
|
Dividend Payout |
|
55.17 |
% |
|
|
52.75 |
% |
|
|
80.70 |
% |
|
|
53.93 |
% |
|
|
60.93 |
% |
Book Value Per Common Share (equity per share issued) |
$ |
25.49 |
|
|
$ |
25.20 |
|
|
$ |
23.12 |
|
|
$ |
25.49 |
|
|
$ |
23.12 |
|
Tangible Book Value Per Common Share (2) |
|
25.34 |
|
|
|
25.05 |
|
|
|
22.97 |
|
|
|
25.34 |
|
|
|
22.97 |
|
Market Value – High |
$ |
66.62 |
|
|
$ |
73.22 |
|
|
$ |
62.71 |
|
|
$ |
73.22 |
|
|
$ |
77.07 |
|
Market Value – Low |
|
57.59 |
|
|
|
60.56 |
|
|
|
43.05 |
|
|
|
57.59 |
|
|
|
43.05 |
|
|
Three Months Ended |
|
Six Months Ended |
(Unaudited – Dollars in
thousands, except per share data) |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
PER SHARE DATA
(continued) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Basic Weighted Average Common Shares Outstanding |
|
25,678,231 |
|
|
|
25,657,063 |
|
|
|
25,607,663 |
|
|
|
25,667,647 |
|
|
|
25,595,412 |
|
Diluted Weighted Average Common Shares Outstanding |
|
25,742,871 |
|
|
|
25,747,643 |
|
|
|
25,686,354 |
|
|
|
25,746,773 |
|
|
|
25,696,370 |
|
KEY
RATIOS |
|
|
|
|
|
|
|
|
|
Return on Average Assets |
|
1.37 |
% |
|
|
1.44 |
% |
|
|
0.91 |
% |
|
|
1.40 |
% |
|
|
1.22 |
% |
Return on Average Total Equity |
|
14.19 |
|
|
|
14.59 |
|
|
|
9.70 |
|
|
|
14.39 |
|
|
|
13.18 |
|
Average Equity to Average Assets |
|
9.62 |
|
|
|
9.84 |
|
|
|
9.39 |
|
|
|
9.73 |
|
|
|
9.26 |
|
Net Interest Margin |
|
3.17 |
|
|
|
3.15 |
|
|
|
3.28 |
|
|
|
3.16 |
|
|
|
3.41 |
|
Efficiency (Noninterest Expense/Net Interest Income plus
Noninterest Income) |
|
48.49 |
|
|
|
51.15 |
|
|
|
71.19 |
|
|
|
49.73 |
|
|
|
59.22 |
|
Loans to Deposits |
|
87.66 |
|
|
|
88.95 |
|
|
|
89.66 |
|
|
|
87.66 |
|
|
|
89.66 |
|
Investment Securities to Total Assets |
|
17.11 |
|
|
|
17.43 |
|
|
|
18.30 |
|
|
|
17.11 |
|
|
|
18.30 |
|
Tier 1 Leverage (3) |
|
11.98 |
|
|
|
12.01 |
|
|
|
11.54 |
|
|
|
11.98 |
|
|
|
11.54 |
|
Tier 1 Risk-Based Capital (3) |
|
14.29 |
|
|
|
14.21 |
|
|
|
13.68 |
|
|
|
14.29 |
|
|
|
13.68 |
|
Common Equity Tier 1 (CET1) (3) |
|
14.29 |
|
|
|
14.21 |
|
|
|
13.68 |
|
|
|
14.29 |
|
|
|
13.68 |
|
Total Capital (3) |
|
15.54 |
|
|
|
15.46 |
|
|
|
14.93 |
|
|
|
15.54 |
|
|
|
14.93 |
|
Tangible Capital (2) |
|
9.91 |
|
|
|
9.80 |
|
|
|
9.04 |
|
|
|
9.91 |
|
|
|
9.04 |
|
Adjusted Tangible Capital (2) |
|
12.18 |
|
|
|
12.03 |
|
|
|
11.45 |
|
|
|
12.18 |
|
|
|
11.45 |
|
ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
Loans Past Due 30 - 89 Days |
$ |
1,615 |
|
|
$ |
3,177 |
|
|
$ |
1,207 |
|
|
$ |
1,615 |
|
|
$ |
1,207 |
|
Loans Past Due 90 Days or More |
|
26 |
|
|
|
7 |
|
|
|
8 |
|
|
|
26 |
|
|
|
8 |
|
Nonaccrual Loans |
|
57,124 |
|
|
|
14,762 |
|
|
|
18,004 |
|
|
|
57,124 |
|
|
|
18,004 |
|
Nonperforming Loans |
|
57,150 |
|
|
|
14,769 |
|
|
|
18,012 |
|
|
|
57,150 |
|
|
|
18,012 |
|
Other Real Estate Owned |
|
384 |
|
|
|
384 |
|
|
|
384 |
|
|
|
384 |
|
|
|
384 |
|
Other Nonperforming Assets |
|
90 |
|
|
|
78 |
|
|
|
20 |
|
|
|
90 |
|
|
|
20 |
|
Total Nonperforming Assets |
|
57,624 |
|
|
|
15,231 |
|
|
|
18,416 |
|
|
|
57,624 |
|
|
|
18,416 |
|
Individually Analyzed Loans |
|
78,533 |
|
|
|
15,181 |
|
|
|
18,465 |
|
|
|
78,533 |
|
|
|
18,465 |
|
Non-Individually Analyzed Watch List Loans |
|
189,726 |
|
|
|
168,133 |
|
|
|
167,562 |
|
|
|
189,726 |
|
|
|
167,562 |
|
Total Individually Analyzed and Watch List Loans |
|
268,259 |
|
|
|
183,314 |
|
|
|
186,027 |
|
|
|
268,259 |
|
|
|
186,027 |
|
Gross Charge Offs |
|
1,076 |
|
|
|
504 |
|
|
|
390 |
|
|
|
1,580 |
|
|
|
6,286 |
|
Recoveries |
|
127 |
|
|
|
192 |
|
|
|
433 |
|
|
|
319 |
|
|
|
588 |
|
Net Charge Offs/(Recoveries) |
|
949 |
|
|
|
312 |
|
|
|
(43 |
) |
|
|
1,261 |
|
|
|
5,698 |
|
Net Charge Offs/(Recoveries) to Average Loans |
|
0.08 |
% |
|
|
0.03 |
% |
|
|
0.00 |
% |
|
|
0.05 |
% |
|
|
0.24 |
% |
Credit Loss Reserve to Loans |
|
1.60 |
|
|
|
1.46 |
|
|
|
1.48 |
|
|
|
1.60 |
|
|
|
1.48 |
|
Credit Loss Reserve to Nonperforming Loans |
|
141.23 |
|
|
|
495.51 |
|
|
|
400.06 |
|
|
|
141.23 |
|
|
|
400.06 |
|
Nonperforming Loans to Loans |
|
1.13 |
|
|
|
0.30 |
|
|
|
0.37 |
|
|
|
1.13 |
|
|
|
0.37 |
|
Nonperforming Assets to Assets |
|
0.88 |
|
|
|
0.23 |
|
|
|
0.28 |
|
|
|
0.88 |
|
|
|
0.28 |
|
|
Three Months Ended |
|
Six Months Ended |
(Unaudited – Dollars in thousands, except per share data) |
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
ASSET QUALITY (continued) |
|
|
|
|
|
|
|
|
|
Total Individually Analyzed and Watch List Loans to Total
Loans |
|
5.31 |
% |
|
|
3.67 |
% |
|
|
3.83 |
% |
|
|
5.31 |
% |
|
|
3.83 |
% |
OTHER
DATA |
|
|
|
|
|
|
|
|
|
Full Time Equivalent Employees |
|
653 |
|
|
|
628 |
|
|
|
632 |
|
|
|
653 |
|
|
|
632 |
|
Offices |
|
53 |
|
|
|
53 |
|
|
|
53 |
|
|
|
53 |
|
|
|
53 |
|
___________________________(1) Core deposits equals
deposits less brokered deposits.(2) Non-GAAP financial
measure - see “Reconciliation of Non-GAAP Financial
Measures”.(3) Capital ratios for June 30, 2024 are
preliminary until the Call Report is filed.
CONSOLIDATED BALANCE
SHEETS (in thousands, except share data) |
|
|
|
|
June 30,2024 |
|
December 31,2023 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Cash and due from banks |
$ |
60,887 |
|
|
$ |
70,451 |
|
Short-term investments |
|
60,290 |
|
|
|
81,373 |
|
Total cash and cash equivalents |
|
121,177 |
|
|
|
151,824 |
|
|
|
|
|
Securities available-for-sale,
at fair value |
|
993,057 |
|
|
|
1,051,728 |
|
Securities held-to-maturity,
at amortized cost (fair value of $113,997 and $119,215,
respectively) |
|
130,746 |
|
|
|
129,918 |
|
Real estate mortgage loans
held-for-sale |
|
399 |
|
|
|
1,158 |
|
|
|
|
|
Loans, net of allowance for
credit losses of $80,711 and $71,972 |
|
4,971,630 |
|
|
|
4,844,562 |
|
|
|
|
|
Land, premises and equipment,
net |
|
58,793 |
|
|
|
57,899 |
|
Bank owned life insurance |
|
110,985 |
|
|
|
109,114 |
|
Federal Reserve and Federal
Home Loan Bank stock |
|
21,420 |
|
|
|
21,420 |
|
Accrued interest
receivable |
|
30,681 |
|
|
|
30,011 |
|
Goodwill |
|
4,970 |
|
|
|
4,970 |
|
Other assets |
|
124,949 |
|
|
|
121,425 |
|
Total assets |
$ |
6,568,807 |
|
|
$ |
6,524,029 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
Noninterest bearing
deposits |
$ |
1,212,989 |
|
|
$ |
1,353,477 |
|
Interest bearing deposits |
|
4,550,548 |
|
|
|
4,367,048 |
|
Total deposits |
|
5,763,537 |
|
|
|
5,720,525 |
|
|
|
|
|
Federal Funds purchased |
|
55,000 |
|
|
|
0 |
|
Federal Home Loan Bank
advances |
|
0 |
|
|
|
50,000 |
|
Total borrowings |
|
55,000 |
|
|
|
50,000 |
|
|
|
|
|
Accrued interest payable |
|
15,354 |
|
|
|
20,893 |
|
Other liabilities |
|
80,326 |
|
|
|
82,818 |
|
Total liabilities |
|
5,914,217 |
|
|
|
5,874,236 |
|
|
|
|
|
STOCKHOLDERS’
EQUITY |
|
|
|
Common stock: 90,000,000
shares authorized, no par value |
|
|
|
25,968,167 shares issued and 25,503,744 outstanding as of
June 30, 2024 |
|
|
|
25,903,686 shares issued and 25,430,566 outstanding as of
December 31, 2023 |
|
126,871 |
|
|
|
127,692 |
|
Retained earnings |
|
713,541 |
|
|
|
692,760 |
|
Accumulated other
comprehensive income (loss) |
|
(170,458 |
) |
|
|
(155,195 |
) |
Treasury stock, at cost
(464,423 shares and 473,120 shares as of
June 30, 2024 and December 31, 2023, respectively) |
|
(15,453 |
) |
|
|
(15,553 |
) |
Total stockholders’ equity |
|
654,501 |
|
|
|
649,704 |
|
Noncontrolling interest |
|
89 |
|
|
|
89 |
|
Total equity |
|
654,590 |
|
|
|
649,793 |
|
Total liabilities and equity |
$ |
6,568,807 |
|
|
$ |
6,524,029 |
|
CONSOLIDATED STATEMENTS OF INCOME (unaudited - in
thousands, except share and per share data) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
NET INTEREST
INCOME |
|
|
|
|
|
|
|
Interest and fees on
loans |
|
|
|
|
|
|
|
Taxable |
$ |
84,226 |
|
$ |
75,047 |
|
|
$ |
166,268 |
|
|
$ |
144,589 |
|
Tax exempt |
|
632 |
|
|
960 |
|
|
|
1,532 |
|
|
|
1,861 |
|
Interest and dividends on
securities |
|
|
|
|
|
|
|
Taxable |
|
3,104 |
|
|
3,376 |
|
|
|
6,143 |
|
|
|
6,889 |
|
Tax exempt |
|
3,932 |
|
|
4,064 |
|
|
|
7,879 |
|
|
|
8,364 |
|
Other interest income |
|
1,842 |
|
|
1,035 |
|
|
|
2,948 |
|
|
|
1,999 |
|
Total interest income |
|
93,736 |
|
|
84,482 |
|
|
|
184,770 |
|
|
|
163,702 |
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
44,363 |
|
|
33,611 |
|
|
|
85,527 |
|
|
|
58,529 |
|
Interest on short-term
borrowings |
|
1,077 |
|
|
2,347 |
|
|
|
3,531 |
|
|
|
5,130 |
|
Total interest expense |
|
45,440 |
|
|
35,958 |
|
|
|
89,058 |
|
|
|
63,659 |
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME |
|
48,296 |
|
|
48,524 |
|
|
|
95,712 |
|
|
|
100,043 |
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
|
8,480 |
|
|
800 |
|
|
|
10,000 |
|
|
|
5,150 |
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION FOR CREDIT LOSSES |
|
39,816 |
|
|
47,724 |
|
|
|
85,712 |
|
|
|
94,893 |
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME |
|
|
|
|
|
|
|
Wealth advisory fees |
|
2,597 |
|
|
2,271 |
|
|
|
5,052 |
|
|
|
4,471 |
|
Investment brokerage fees |
|
478 |
|
|
428 |
|
|
|
1,000 |
|
|
|
962 |
|
Service charges on deposit
accounts |
|
2,806 |
|
|
2,726 |
|
|
|
5,497 |
|
|
|
5,356 |
|
Loan and service fees |
|
3,048 |
|
|
3,002 |
|
|
|
5,900 |
|
|
|
5,848 |
|
Merchant and interchange fee
income |
|
892 |
|
|
929 |
|
|
|
1,755 |
|
|
|
1,806 |
|
Bank owned life insurance
income |
|
890 |
|
|
693 |
|
|
|
1,926 |
|
|
|
1,384 |
|
Interest rate swap fee
income |
|
0 |
|
|
794 |
|
|
|
0 |
|
|
|
794 |
|
Mortgage banking income
(loss) |
|
23 |
|
|
(35 |
) |
|
|
75 |
|
|
|
(134 |
) |
Net securities gains
(losses) |
|
0 |
|
|
3 |
|
|
|
(46 |
) |
|
|
19 |
|
Net gain on Visa shares |
|
9,011 |
|
|
0 |
|
|
|
9,011 |
|
|
|
0 |
|
Other income |
|
694 |
|
|
690 |
|
|
|
2,881 |
|
|
|
1,309 |
|
Total noninterest income |
|
20,439 |
|
|
11,501 |
|
|
|
33,051 |
|
|
|
21,815 |
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE |
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
16,158 |
|
|
11,374 |
|
|
|
32,991 |
|
|
|
27,437 |
|
Net occupancy expense |
|
1,698 |
|
|
1,681 |
|
|
|
3,438 |
|
|
|
3,253 |
|
Equipment costs |
|
1,343 |
|
|
1,426 |
|
|
|
2,755 |
|
|
|
2,864 |
|
Data processing fees and
supplies |
|
3,812 |
|
|
3,474 |
|
|
|
7,651 |
|
|
|
6,926 |
|
Corporate and business
development |
|
1,265 |
|
|
1,298 |
|
|
|
2,646 |
|
|
|
2,729 |
|
FDIC insurance and other
regulatory fees |
|
816 |
|
|
803 |
|
|
|
1,605 |
|
|
|
1,598 |
|
Professional fees |
|
2,123 |
|
|
2,049 |
|
|
|
4,586 |
|
|
|
4,170 |
|
Wire fraud loss |
|
0 |
|
|
18,058 |
|
|
|
0 |
|
|
|
18,058 |
|
Other expense |
|
6,118 |
|
|
2,571 |
|
|
|
8,366 |
|
|
|
5,133 |
|
Total noninterest expense |
|
33,333 |
|
|
42,734 |
|
|
|
64,038 |
|
|
|
72,168 |
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAX EXPENSE |
|
26,922 |
|
|
16,491 |
|
|
|
54,725 |
|
|
|
44,540 |
|
Income tax expense |
|
4,373 |
|
|
1,880 |
|
|
|
8,775 |
|
|
|
5,651 |
|
NET
INCOME |
$ |
22,549 |
|
$ |
14,611 |
|
|
$ |
45,950 |
|
|
$ |
38,889 |
|
|
|
|
|
|
|
|
|
BASIC WEIGHTED AVERAGE
COMMON SHARES |
|
25,678,231 |
|
|
25,607,663 |
|
|
|
25,667,647 |
|
|
|
25,595,412 |
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
COMMON SHARE |
$ |
0.88 |
|
$ |
0.57 |
|
|
$ |
1.79 |
|
|
$ |
1.52 |
|
|
|
|
|
|
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON SHARES |
|
25,742,871 |
|
|
25,686,354 |
|
|
|
25,746,773 |
|
|
|
25,696,370 |
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
COMMON SHARE |
$ |
0.87 |
|
$ |
0.57 |
|
|
$ |
1.78 |
|
|
$ |
1.51 |
|
|
LAKELAND FINANCIAL CORPORATIONLOAN
DETAIL(unaudited, in thousands) |
|
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
Commercial and industrial
loans: |
|
|
|
|
|
|
|
|
|
|
|
Working capital lines of credit loans |
$ |
697,754 |
|
|
13.8 |
% |
|
$ |
646,459 |
|
|
12.9 |
% |
|
$ |
618,655 |
|
|
12.7 |
% |
Non-working capital loans |
|
828,523 |
|
|
16.4 |
|
|
|
830,817 |
|
|
16.6 |
|
|
|
851,232 |
|
|
17.5 |
|
Total commercial and industrial loans |
|
1,526,277 |
|
|
30.2 |
|
|
|
1,477,276 |
|
|
29.5 |
|
|
|
1,469,887 |
|
|
30.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate and
multi-family residential loans: |
|
|
|
|
|
|
|
|
|
|
|
Construction and land development loans |
|
658,345 |
|
|
13.0 |
|
|
|
659,712 |
|
|
13.2 |
|
|
|
590,860 |
|
|
12.1 |
|
Owner occupied loans |
|
830,018 |
|
|
16.4 |
|
|
|
833,410 |
|
|
16.7 |
|
|
|
806,072 |
|
|
16.6 |
|
Nonowner occupied loans |
|
762,365 |
|
|
15.1 |
|
|
|
744,346 |
|
|
14.9 |
|
|
|
724,799 |
|
|
14.9 |
|
Multifamily loans |
|
252,652 |
|
|
5.0 |
|
|
|
239,974 |
|
|
4.8 |
|
|
|
254,662 |
|
|
5.2 |
|
Total commercial real estate and multi-family residential
loans |
|
2,503,380 |
|
|
49.5 |
|
|
|
2,477,442 |
|
|
49.6 |
|
|
|
2,376,393 |
|
|
48.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Agri-business and agricultural
loans: |
|
|
|
|
|
|
|
|
|
|
|
Loans secured by farmland |
|
161,410 |
|
|
3.2 |
|
|
|
167,271 |
|
|
3.3 |
|
|
|
176,807 |
|
|
3.6 |
|
Loans for agricultural production |
|
199,654 |
|
|
4.0 |
|
|
|
200,581 |
|
|
4.0 |
|
|
|
198,155 |
|
|
4.1 |
|
Total agri-business and agricultural loans |
|
361,064 |
|
|
7.2 |
|
|
|
367,852 |
|
|
7.3 |
|
|
|
374,962 |
|
|
7.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other commercial loans |
|
96,703 |
|
|
1.9 |
|
|
|
120,302 |
|
|
2.4 |
|
|
|
120,958 |
|
|
2.5 |
|
Total commercial loans |
|
4,487,424 |
|
|
88.8 |
|
|
|
4,442,872 |
|
|
88.8 |
|
|
|
4,342,200 |
|
|
89.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer 1-4 family mortgage
loans: |
|
|
|
|
|
|
|
|
|
|
|
Closed end first mortgage loans |
|
259,094 |
|
|
5.1 |
|
|
|
260,633 |
|
|
5.2 |
|
|
|
229,078 |
|
|
4.7 |
|
Open end and junior lien loans |
|
197,861 |
|
|
3.9 |
|
|
|
188,927 |
|
|
3.8 |
|
|
|
183,738 |
|
|
3.8 |
|
Residential construction and land development loans |
|
12,952 |
|
|
0.3 |
|
|
|
10,956 |
|
|
0.2 |
|
|
|
18,569 |
|
|
0.4 |
|
Total consumer 1-4 family mortgage loans |
|
469,907 |
|
|
9.3 |
|
|
|
460,516 |
|
|
9.2 |
|
|
|
431,385 |
|
|
8.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other consumer loans |
|
97,895 |
|
|
1.9 |
|
|
|
97,369 |
|
|
2.0 |
|
|
|
92,139 |
|
|
1.9 |
|
Total consumer loans |
|
567,802 |
|
|
11.2 |
|
|
|
557,885 |
|
|
11.2 |
|
|
|
523,524 |
|
|
10.8 |
|
Subtotal |
|
5,055,226 |
|
|
100.0 |
% |
|
|
5,000,757 |
|
|
100.0 |
% |
|
|
4,865,724 |
|
|
100.0 |
% |
Less: Allowance for
credit losses |
|
(80,711 |
) |
|
|
|
|
(73,180 |
) |
|
|
|
|
(72,058 |
) |
|
|
Net deferred loan fees |
|
(2,885 |
) |
|
|
|
|
(3,198 |
) |
|
|
|
|
(3,464 |
) |
|
|
Loans, net |
$ |
4,971,630 |
|
|
|
|
$ |
4,924,379 |
|
|
|
|
$ |
4,790,202 |
|
|
|
|
LAKELAND FINANCIAL CORPORATIONDEPOSITS AND
BORROWINGS(unaudited, in thousands) |
|
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
Noninterest bearing demand deposits |
$ |
1,212,989 |
|
$ |
1,254,200 |
|
$ |
1,438,030 |
Savings and transaction
accounts: |
|
|
|
|
|
Savings deposits |
|
283,809 |
|
|
296,671 |
|
|
342,847 |
Interest bearing demand deposits |
|
3,274,179 |
|
|
3,041,025 |
|
|
2,819,385 |
Time deposits: |
|
|
|
|
|
Deposits of $100,000 or more |
|
776,314 |
|
|
805,832 |
|
|
616,455 |
Other time deposits |
|
216,246 |
|
|
220,357 |
|
|
206,342 |
Total deposits |
$ |
5,763,537 |
|
$ |
5,618,085 |
|
$ |
5,423,059 |
FHLB advances and other
borrowings |
|
55,000 |
|
|
200,000 |
|
|
400,000 |
Total funding sources |
$ |
5,818,537 |
|
$ |
5,818,085 |
|
$ |
5,823,059 |
|
LAKELAND FINANCIAL CORPORATIONAVERAGE BALANCE SHEET AND NET
INTEREST ANALYSIS(UNAUDITED) |
|
|
|
Three Months Ended June 30, 2024 |
|
Three Months Ended March 31, 2024 |
|
Three Months Ended June 30, 2023 |
(fully
tax equivalent basis, dollars in thousands) |
|
Average Balance |
|
Interest Income |
|
Yield (1)/Rate |
|
Average Balance |
|
Interest Income |
|
Yield (1)/Rate |
|
Average Balance |
|
Interest Income |
|
Yield (1)/Rate |
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (2)(3) |
|
$ |
4,993,270 |
|
|
$ |
84,226 |
|
6.78 |
% |
|
$ |
4,916,943 |
|
|
$ |
82,042 |
|
6.71 |
% |
|
$ |
4,739,885 |
|
|
$ |
75,047 |
|
6.35 |
% |
Tax exempt (1) |
|
|
41,581 |
|
|
|
783 |
|
7.57 |
|
|
|
54,077 |
|
|
|
1,118 |
|
8.31 |
|
|
|
57,857 |
|
|
|
1,198 |
|
8.31 |
|
Investments: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities |
|
|
1,118,776 |
|
|
|
8,082 |
|
2.91 |
|
|
|
1,158,503 |
|
|
|
8,035 |
|
2.79 |
|
|
|
1,210,870 |
|
|
|
8,520 |
|
2.82 |
|
Short-term investments |
|
|
2,836 |
|
|
|
35 |
|
4.96 |
|
|
|
2,710 |
|
|
|
33 |
|
4.90 |
|
|
|
2,308 |
|
|
|
26 |
|
4.52 |
|
Interest bearing deposits |
|
|
138,818 |
|
|
|
1,807 |
|
5.24 |
|
|
|
84,696 |
|
|
|
1,073 |
|
5.10 |
|
|
|
85,364 |
|
|
|
1,009 |
|
4.74 |
|
Total
earning assets |
|
$ |
6,295,281 |
|
|
$ |
94,933 |
|
6.07 |
% |
|
$ |
6,216,929 |
|
|
$ |
92,301 |
|
5.97 |
% |
|
$ |
6,096,284 |
|
|
$ |
85,800 |
|
5.65 |
% |
Less: Allowance for credit losses |
|
|
(74,166 |
) |
|
|
|
|
|
|
(72,433 |
) |
|
|
|
|
|
|
(71,477 |
) |
|
|
|
|
Nonearning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
64,518 |
|
|
|
|
|
|
|
68,584 |
|
|
|
|
|
|
|
69,057 |
|
|
|
|
|
Premises and equipment |
|
|
58,702 |
|
|
|
|
|
|
|
57,883 |
|
|
|
|
|
|
|
58,992 |
|
|
|
|
|
Other nonearning assets |
|
|
298,619 |
|
|
|
|
|
|
|
283,505 |
|
|
|
|
|
|
|
280,073 |
|
|
|
|
|
Total
assets |
|
$ |
6,642,954 |
|
|
|
|
|
|
$ |
6,554,468 |
|
|
|
|
|
|
$ |
6,432,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits |
|
$ |
289,107 |
|
|
$ |
48 |
|
0.07 |
% |
|
$ |
295,650 |
|
|
$ |
49 |
|
0.07 |
% |
|
$ |
360,173 |
|
|
$ |
65 |
|
0.07 |
% |
Interest bearing checking accounts |
|
|
3,275,502 |
|
|
|
33,323 |
|
4.09 |
|
|
|
3,046,958 |
|
|
|
30,365 |
|
4.01 |
|
|
|
2,930,285 |
|
|
|
27,226 |
|
3.73 |
|
Time deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In denominations under $100,000 |
|
|
217,146 |
|
|
|
1,871 |
|
3.47 |
|
|
|
224,139 |
|
|
|
1,918 |
|
3.44 |
|
|
|
198,864 |
|
|
|
1,147 |
|
2.31 |
|
In denominations over $100,000 |
|
|
807,304 |
|
|
|
9,121 |
|
4.54 |
|
|
|
789,581 |
|
|
|
8,832 |
|
4.50 |
|
|
|
611,427 |
|
|
|
5,173 |
|
3.39 |
|
Miscellaneous short-term borrowings |
|
|
77,077 |
|
|
|
1,077 |
|
5.62 |
|
|
|
175,809 |
|
|
|
2,454 |
|
5.61 |
|
|
|
186,418 |
|
|
|
2,347 |
|
5.05 |
|
Total
interest bearing liabilities |
|
$ |
4,666,136 |
|
|
$ |
45,440 |
|
3.92 |
% |
|
$ |
4,532,137 |
|
|
$ |
43,618 |
|
3.87 |
% |
|
$ |
4,287,167 |
|
|
$ |
35,958 |
|
3.36 |
% |
Noninterest Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
1,230,903 |
|
|
|
|
|
|
|
1,274,103 |
|
|
|
|
|
|
|
1,450,396 |
|
|
|
|
|
Other liabilities |
|
|
106,916 |
|
|
|
|
|
|
|
103,221 |
|
|
|
|
|
|
|
91,367 |
|
|
|
|
|
Stockholders' Equity |
|
|
638,999 |
|
|
|
|
|
|
|
645,007 |
|
|
|
|
|
|
|
603,999 |
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
6,642,954 |
|
|
|
|
|
|
$ |
6,554,468 |
|
|
|
|
|
|
$ |
6,432,929 |
|
|
|
|
|
Interest Margin Recap |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income/average earning assets |
|
|
|
|
94,933 |
|
6.07 |
% |
|
|
|
|
92,301 |
|
5.97 |
% |
|
|
|
|
85,800 |
|
5.65 |
% |
Interest expense/average earning assets |
|
|
|
|
45,440 |
|
2.90 |
|
|
|
|
|
43,618 |
|
2.82 |
|
|
|
|
|
35,958 |
|
2.37 |
|
Net
interest income and margin |
|
|
|
$ |
49,493 |
|
3.17 |
% |
|
|
|
$ |
48,683 |
|
3.15 |
% |
|
|
|
$ |
49,842 |
|
3.28 |
% |
(1) Tax exempt income was converted
to a fully taxable equivalent basis at a 21 percent tax rate. The
tax equivalent rate for tax exempt loans and tax exempt securities
acquired after January 1, 1983 included the Tax Equity and Fiscal
Responsibility Act of 1982 (“TEFRA”) adjustment applicable to
nondeductible interest expenses. Taxable equivalent basis
adjustments were $1.20 million, $1.27 million and $1.32 million in
the three-month periods ended June 30, 2024, March 31,
2024 and June 30, 2023, respectively.(2) Loan fees,
which are immaterial in relation to total taxable loan interest
income for the three months ended June 30, 2024,
March 31, 2024 and June 30, 2023, are included as taxable
loan interest income.(3) Nonaccrual loans are included
in the average balance of taxable loans.
Reconciliation of Non-GAAP Financial
Measures
Tangible common equity, adjusted tangible common equity,
tangible assets, adjusted tangible assets, tangible book value per
common share, tangible common equity to tangible assets, adjusted
tangible common equity to adjusted tangible assets, and pretax
pre-provision earnings are non-GAAP financial measures calculated
based on GAAP amounts. Tangible common equity is calculated by
excluding the balance of goodwill and other intangible assets from
the calculation of equity, net of deferred tax. Tangible assets are
calculated by excluding the balance of goodwill and other
intangible assets from the calculation of total assets, net of
deferred tax. Adjusted tangible assets and adjusted tangible common
equity remove the fair market value adjustment impact of the
available-for-sale investment securities portfolio in accumulated
other comprehensive income (loss) ("AOCI"). Tangible book value per
common share is calculated by dividing tangible common equity by
the number of shares outstanding less true treasury stock. Pretax
pre-provision earnings is calculated by adding net interest income
to noninterest income and subtracting noninterest expense. Because
not all companies use the same calculation of tangible common
equity and tangible assets, this presentation may not be comparable
to other similarly titled measures calculated by other companies.
However, management considers these measures of the company’s value
meaningful to understanding of the company’s financial information
and performance.
A reconciliation of these non-GAAP financial measures is
provided below (dollars in thousands, except per share data).
|
Three Months Ended |
|
Six Months Ended |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Jun. 30, 2023 |
|
Jun. 30, 2024 |
|
Jun. 30, 2023 |
Total Equity |
$ |
654,590 |
|
|
$ |
647,009 |
|
|
$ |
591,995 |
|
|
$ |
654,590 |
|
|
$ |
591,995 |
|
Less: Goodwill |
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
Plus: DTA Related to
Goodwill |
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
Tangible Common Equity |
|
650,787 |
|
|
|
643,206 |
|
|
|
588,192 |
|
|
|
650,787 |
|
|
|
588,192 |
|
Market Value Adjustment in
AOCI |
|
169,747 |
|
|
|
166,189 |
|
|
|
176,898 |
|
|
|
169,747 |
|
|
|
176,898 |
|
Adjusted Tangible Common
Equity |
|
820,534 |
|
|
|
809,395 |
|
|
|
765,090 |
|
|
|
820,534 |
|
|
|
765,090 |
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
6,568,807 |
|
|
$ |
6,566,861 |
|
|
$ |
6,509,546 |
|
|
$ |
6,568,807 |
|
|
$ |
6,509,546 |
|
Less: Goodwill |
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
Plus: DTA Related to
Goodwill |
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
Tangible Assets |
|
6,565,004 |
|
|
|
6,563,058 |
|
|
|
6,505,743 |
|
|
|
6,565,004 |
|
|
|
6,505,743 |
|
Market Value Adjustment in
AOCI |
|
169,747 |
|
|
|
166,189 |
|
|
|
176,898 |
|
|
|
169,747 |
|
|
|
176,898 |
|
Adjusted Tangible Assets |
|
6,734,751 |
|
|
|
6,729,247 |
|
|
|
6,682,641 |
|
|
|
6,734,751 |
|
|
|
6,682,641 |
|
|
|
|
|
|
|
|
|
|
|
Ending Common Shares
Issued |
|
25,679,066 |
|
|
|
25,677,399 |
|
|
|
25,607,663 |
|
|
|
25,679,066 |
|
|
|
25,607,663 |
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value Per Common
Share |
$ |
25.34 |
|
|
$ |
25.05 |
|
|
$ |
22.97 |
|
|
$ |
25.34 |
|
|
$ |
22.97 |
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Equity/Tangible Assets |
|
9.91 |
% |
|
|
9.80 |
% |
|
|
9.04 |
% |
|
|
9.91 |
% |
|
|
9.04 |
% |
Adjusted Tangible Common
Equity/Adjusted Tangible Assets |
|
12.18 |
% |
|
|
12.03 |
% |
|
|
11.45 |
% |
|
|
12.18 |
% |
|
|
11.45 |
% |
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
$ |
48,296 |
|
|
$ |
47,416 |
|
|
$ |
48,524 |
|
|
$ |
95,712 |
|
|
$ |
100,043 |
|
Plus: Noninterest
Income |
|
20,439 |
|
|
|
12,612 |
|
|
|
11,501 |
|
|
|
33,051 |
|
|
|
21,815 |
|
Minus: Noninterest
Expense |
|
(33,333 |
) |
|
|
(30,705 |
) |
|
|
(42,734 |
) |
|
|
(64,038 |
) |
|
|
(72,168 |
) |
|
|
|
|
|
|
|
|
|
|
Pretax Pre-Provision
Earnings |
$ |
35,402 |
|
|
$ |
29,323 |
|
|
$ |
17,291 |
|
|
$ |
64,725 |
|
|
$ |
49,690 |
|
Adjusted core noninterest income, adjusted core noninterest
expense, adjusted earnings before income taxes, core operational
profitability, core operational diluted earnings per common share
and adjusted core efficiency ratio are non-GAAP financial measures
calculated based on GAAP amounts. These adjusted amounts are
calculated by excluding the impact of the net gain on Visa shares,
legal accrual, and wire fraud loss and associated insurance and
loss recoveries and adjustments to salaries and employee benefits
expense for the periods presented below. Management considers these
measures of financial performance to be meaningful to understanding
the company’s core business performance for these periods.
A reconciliation of these non-GAAP financial measures is
provided below (dollars in thousands, except per share data).
|
Three Months Ended |
|
Six Months Ended |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Jun. 30, 2023 |
|
Jun. 30, 2024 |
|
Jun. 30, 2023 |
Noninterest Income |
$ |
20,439 |
|
|
$ |
12,612 |
|
|
$ |
11,501 |
|
|
$ |
33,051 |
|
|
$ |
21,815 |
|
Less: Net Gain on Visa
Shares |
|
(9,011 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
(9,011 |
) |
|
|
0 |
|
Less: Insurance
Recoveries |
|
0 |
|
|
|
(1,000 |
) |
|
|
0 |
|
|
|
(1,000 |
) |
|
|
0 |
|
Adjusted Core Noninterest
Income |
$ |
11,428 |
|
|
$ |
11,612 |
|
|
$ |
11,501 |
|
|
$ |
23,040 |
|
|
$ |
21,815 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense |
$ |
33,333 |
|
|
$ |
30,705 |
|
|
$ |
42,734 |
|
|
$ |
64,038 |
|
|
$ |
72,168 |
|
Less: Legal Accrual |
|
(4,537 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
(4,537 |
) |
|
|
0 |
|
Less: Wire Fraud Loss |
|
0 |
|
|
|
0 |
|
|
|
(18,058 |
) |
|
|
0 |
|
|
|
(18,058 |
) |
Plus: Salaries and Employee
Benefits (1) |
|
0 |
|
|
|
0 |
|
|
|
1,850 |
|
|
|
0 |
|
|
|
1,850 |
|
Adjusted Core Noninterest
Expense |
$ |
28,796 |
|
|
$ |
30,705 |
|
|
$ |
26,526 |
|
|
$ |
59,501 |
|
|
$ |
55,960 |
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Income
Taxes |
$ |
26,922 |
|
|
$ |
27,803 |
|
|
$ |
16,491 |
|
|
$ |
54,725 |
|
|
$ |
44,540 |
|
Adjusted Core Impact: |
|
|
|
|
|
|
|
|
|
Noninterest Income |
|
(9,011 |
) |
|
|
(1,000 |
) |
|
|
0 |
|
|
|
(10,011 |
) |
|
|
0 |
|
Noninterest Expense |
|
4,537 |
|
|
|
0 |
|
|
|
16,208 |
|
|
|
4,537 |
|
|
|
16,208 |
|
Total Adjusted Core
Impact |
|
(4,474 |
) |
|
|
(1,000 |
) |
|
|
16,208 |
|
|
|
(5,474 |
) |
|
|
16,208 |
|
Adjusted Earnings Before
Income Taxes |
|
22,448 |
|
|
|
26,803 |
|
|
|
32,699 |
|
|
|
49,251 |
|
|
|
60,748 |
|
Tax Effect |
|
(3,261 |
) |
|
|
(4,153 |
) |
|
|
(5,873 |
) |
|
|
(7,414 |
) |
|
|
(9,644 |
) |
Core Operational Profitability
(2) |
$ |
19,187 |
|
|
$ |
22,650 |
|
|
$ |
26,826 |
|
|
$ |
41,837 |
|
|
$ |
51,104 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Common
Share |
$ |
0.87 |
|
|
$ |
0.91 |
|
|
$ |
0.57 |
|
|
$ |
1.78 |
|
|
$ |
1.51 |
|
Impact of Adjusted Core
Items |
|
(0.13 |
) |
|
|
(0.03 |
) |
|
|
0.48 |
|
|
|
(0.16 |
) |
|
|
0.48 |
|
Core Operational Diluted
Earnings Per Common Share |
$ |
0.74 |
|
|
$ |
0.88 |
|
|
$ |
1.05 |
|
|
$ |
1.62 |
|
|
$ |
1.99 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Core Efficiency
Ratio |
|
48.22 |
% |
|
|
52.02 |
% |
|
|
44.19 |
% |
|
|
50.11 |
% |
|
|
45.92 |
% |
(1) In 2023, long-term,
incentive-based compensation accruals were reduced as a result of
the wire fraud loss and subsequent insurance and loss
recoveries.(2) Core operational profitability was $3.4
million lower, $751,000 lower and $12.2 million higher than
reported net income for the three months ended June 30, 2024, March
31, 2024, and June 30, 2023, respectively. Core operational
profitability was and $4.1 million lower and $12.2 million higher
than reported net income for the six months ended June 30, 2024 and
2023, respectively.
ContactLisa M. O’NeillExecutive
Vice President and Chief Financial Officer (574)
267-9125lisa.oneill@lakecitybank.com
Lakeland Financial (NASDAQ:LKFN)
過去 株価チャート
から 6 2024 まで 7 2024
Lakeland Financial (NASDAQ:LKFN)
過去 株価チャート
から 7 2023 まで 7 2024