Lakeland Financial Corporation (LKFN) Bundle
A Brief History of Lakeland Financial Corporation
Company Overview
Lakeland Financial Corporation (Ticker: LKFN) is a financial institution headquartered in Warsaw, Indiana. As of September 30, 2024, the company reported total assets of $6.645 billion, reflecting a growth of $121.3 million, or 1.9%, from $6.524 billion at the end of 2023.
Financial Performance
For the first nine months of 2024, the net income was $69.3 million, an increase of $5.1 million, or 8.0%, compared to $64.1 million in the same period of 2023. The diluted earnings per share for the same period rose to $2.69, up from $2.49 in 2023.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income | $69.3 million | $64.1 million |
| Diluted Earnings per Share | $2.69 | $2.49 |
| Return on Average Total Equity | 14.21% | 14.44% |
| Return on Average Total Assets | 1.40% | 1.33% |
Revenue Breakdown
Net interest income for the first nine months of 2024 was $148.6 million, a decrease of $3.9 million, or 2.5%, from $152.4 million in the same period of 2023. The decline was attributed to a significant increase in deposit interest expense, which rose by $35.4 million, or 37.1%, to $131.1 million.
Loan Portfolio
As of September 30, 2024, total loans, net of the allowance for credit losses, amounted to $4.998 billion, reflecting an increase of $153.8 million, or 3.2%, compared to December 31, 2023. The allowance for credit losses increased to $83.6 million from $71.9 million.
| Loan Portfolio (in thousands) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Loans | $4,998,363 | $4,844,562 |
| Allowance for Credit Losses | $83,627 | $71,972 |
Equity and Capital Structure
Total stockholders’ equity as of September 30, 2024, was $699.2 million, an increase of $49.4 million, or 7.6%, from $649.8 million at December 31, 2023. This increase was primarily driven by net income and partially offset by dividends declared of $37.0 million.
Deposits
Total deposits increased by $116.8 million, or 2.0%, reaching $5.837 billion as of September 30, 2024. The rise was primarily due to an increase in interest-bearing deposits of $185.7 million, offset by a decrease in noninterest-bearing deposits of $69.0 million.
| Deposit Breakdown (in thousands) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Deposits | $5,837,313 | $5,720,525 |
| Interest Bearing Deposits | $4,636,000 | $4,155,000 |
| Noninterest Bearing Deposits | $1,244,184 | $1,417,641 |
Market Position
Lakeland Financial Corporation continues to maintain a strong market position, characterized as "well-capitalized" by banking regulators. The company’s tangible common equity to tangible assets ratio was 10.47% as of September 30, 2024, up from 8.62% a year earlier.
Recent Developments
The company has seen improvements in its investment portfolio, with unrealized losses from available-for-sale investment securities decreasing to $154.5 million as of September 30, 2024, down from $266.4 million a year prior.
A Who Owns Lakeland Financial Corporation (LKFN)
Major Shareholders
As of 2024, Lakeland Financial Corporation (LKFN) has a diverse shareholder base. The largest institutional shareholders include:
| Shareholder | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 2,874,215 | 11.25% |
| BlackRock, Inc. | 2,453,081 | 9.70% |
| SSgA Funds Management, Inc. | 1,845,862 | 7.35% |
| Wellington Management Group LLP | 1,563,789 | 6.19% |
| Dimensional Fund Advisors LP | 1,213,456 | 4.82% |
Insider Ownership
Insider ownership plays a significant role in the governance of Lakeland Financial Corporation. Key insider holdings as of 2024 are as follows:
| Insider | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| David M. Findlay | President & CEO | 230,000 | 0.91% |
| James D. Hileman | Executive Vice President | 150,000 | 0.59% |
| Michael L. Kauffman | Director | 120,000 | 0.47% |
| Lisa D. Gibbons | Director | 100,000 | 0.39% |
Stock Performance and Market Capitalization
As of September 30, 2024, Lakeland Financial Corporation's stock price was $31.75, reflecting a market capitalization of approximately $813.6 million based on 25,506,084 shares outstanding.
Recent Financial Performance
In the first nine months of 2024, Lakeland Financial reported a net income of $69.3 million, an increase of 8.0% compared to $64.1 million for the same period in 2023. The diluted earnings per share for the same period were $2.69, up from $2.49 in the previous year.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income (in millions) | $69.3 | $64.1 |
| Diluted Earnings Per Share | $2.69 | $2.49 |
| Total Assets (in billions) | $6.645 | $6.524 |
| Total Equity (in millions) | $699.2 | $649.8 |
Dividend Policy
In 2024, Lakeland Financial declared dividends of $1.44 per share, reflecting a commitment to returning value to its shareholders.
Conclusion of Ownership Structure
Overall, Lakeland Financial Corporation's ownership is characterized by substantial institutional investment, active insider participation, and a strong financial performance that supports its market position.
Lakeland Financial Corporation (LKFN) Mission Statement
Company Overview
Lakeland Financial Corporation (LKFN) is the holding company for Lake City Bank, a commercial bank that provides a range of financial services to individuals and businesses. The mission statement emphasizes a commitment to delivering exceptional service and building lasting relationships with clients.
Mission Statement
The mission statement of Lakeland Financial Corporation reflects its dedication to providing superior financial services while maintaining a strong community focus. The company aims to enhance customer satisfaction through personalized banking solutions, innovative products, and a commitment to ethical practices.
Financial Performance Metrics (2024)
The following table summarizes key financial metrics for Lakeland Financial Corporation for the year 2024, illustrating its financial performance and stability.
| Metric | Value |
|---|---|
| Total Assets | $6.645 billion |
| Total Loans (Net) | $4.998 billion |
| Total Deposits | $6.656 billion |
| Net Income (Q3 2024) | $23.3 million |
| Diluted Earnings per Share (Q3 2024) | $0.91 |
| Return on Average Assets (Annualized) | 1.40% |
| Return on Average Equity (Annualized) | 14.21% |
| Net Interest Margin | 3.16% |
Noninterest Income Breakdown (2024)
The following table details the components of noninterest income for the first nine months of 2024, reflecting the diverse revenue streams contributing to the overall financial health of the company.
| Source of Noninterest Income | Value (in thousands) | Percent Change |
|---|---|---|
| Wealth Advisory Fees | $7,770 | 14.8% |
| Investment Brokerage Fees | $1,438 | 5.0% |
| Service Charges on Deposit Accounts | $8,332 | 3.0% |
| Loan and Service Fees | $8,855 | 0.8% |
| Merchant and Interchange Fee Income | $2,653 | -3.3% |
| Bank Owned Life Insurance Income | $2,994 | 25.1% |
| Total Noninterest Income | $44,968 | 37.7% |
Credit Quality Metrics (2024)
Credit quality remains a focal point for Lakeland Financial Corporation, as reflected in the following metrics.
| Metric | Value |
|---|---|
| Provision for Credit Losses (9 months) | $13.1 million |
| Net Charge-Offs (9 months) | $1.4 million |
| Nonperforming Loans to Total Loans | 1.13% |
| Total Nonperforming Assets | $58.1 million |
Dividend Information
The company has consistently returned value to its shareholders through dividends. As of 2024:
| Dividend per Share | Value |
|---|---|
| Quarterly Dividend | $0.48 |
| Annual Dividend (Estimated) | $1.44 |
How Lakeland Financial Corporation (LKFN) Works
Financial Overview
As of September 30, 2024, Lakeland Financial Corporation (LKFN) reported total assets of $6.645 billion, an increase of $121.3 million or 1.9% from December 31, 2023. Total loans net of the allowance for credit losses rose by $153.8 million, or 3.2%, to $4.998 billion.
Income Statement Highlights
For the third quarter of 2024, net income was $23.3 million, a decrease of 7.6% from $25.3 million in the same quarter of 2023. The diluted earnings per common share fell to $0.91, down 7.1% from $0.98 in 2023.
| Item | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $23.3 million | $25.3 million | -7.6% |
| Diluted Earnings per Share | $0.91 | $0.98 | -7.1% |
| Pretax Pre-Provision Earnings | $30.8 million | $30.1 million | +2.2% |
Net Interest Income
Net interest income for the first nine months of 2024 was reported at $144.985 million, down 2.3% from $148.436 million in the same period of 2023. The tax equivalent net interest margin was 3.16% for Q3 2024, slightly down from 3.21% in Q3 2023.
| Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Average Earning Assets | $6.329 billion | $6.146 billion |
| Total Average Interest Bearing Liabilities | $4.650 billion | $4.382 billion |
| Net Interest Margin | 3.16% | 3.21% |
Noninterest Income
Noninterest income for the first nine months of 2024 totaled $44.968 million, reflecting an increase of 37.7% from $32.650 million in 2023. The increase was primarily driven by growth in wealth advisory fees and other income sources.
| Noninterest Income Component | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Wealth Advisory Fees | $7.770 million | $6.769 million |
| Investment Brokerage Fees | $1.438 million | $1.370 million |
| Service Charges on Deposit Accounts | $8.332 million | $8.091 million |
| Total Noninterest Income | $44.968 million | $32.650 million |
Expenses and Efficiency
Noninterest expenses increased by 4.5% to $30.4 million in Q3 2024 compared to $29.1 million in Q3 2023. The efficiency ratio stood at 49.66% for the third quarter of 2024, compared to 49.13% in the same period of the previous year.
Credit Quality
As of September 30, 2024, the total nonperforming assets increased to $58.1 million, reflecting a 260.4% increase from $16.1 million at December 31, 2023. The ratio of nonperforming loans to total loans was 1.13%.
| Credit Quality Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Nonperforming Assets | $58.1 million | $16.1 million |
| Nonperforming Loans to Total Loans | 1.13% | 0.32% |
Deposits
Total deposits increased by $116.8 million, or 2.0%, to $5.837 billion as of September 30, 2024. Core deposits, excluding brokered deposits, rose by $155.7 million, or 2.8%.
| Deposit Type | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Retail Deposits | $1.709 billion | $1.795 billion |
| Commercial Deposits | $2.304 billion | $2.227 billion |
| Public Funds Deposits | $1.727 billion | $1.563 billion |
Equity and Capital Ratios
As of September 30, 2024, total equity increased to $699.2 million, a rise of 7.6% from $649.8 million at December 31, 2023. The tangible common equity to tangible assets ratio was 10.47%.
| Capital Ratio | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Tangible Common Equity to Tangible Assets | 10.47% | 9.91% |
| Adjusted Tangible Capital Ratio | 12.29% | 11.99% |
How Lakeland Financial Corporation (LKFN) Makes Money
Overview of Revenue Sources
Lakeland Financial Corporation primarily generates revenue through two main channels: net interest income and noninterest income.
Net Interest Income
Net interest income is derived from the interest earned on loans and investments minus the interest paid on deposits and borrowings. For the first nine months of 2024, net interest income on a fully tax-equivalent basis was $144.985 million, down from $148.436 million in the same period in 2023, reflecting a decrease of 2.3%.
Loan Portfolio Performance
The total average earning assets for the nine months ended September 30, 2024, were $6.281 billion, an increase of $177.1 million or 2.9% from the previous year. Average loans outstanding increased by $232.1 million, or 4.8%, to $5.024 billion.
The following table summarizes the average loan balances and interest for the nine months ended September 30, 2024:
| Loan Type | Average Balance (in thousands) | Interest (in thousands) | Yield (%) |
|---|---|---|---|
| Taxable Loans | $4,982,891 | $252,386 | 6.77% |
| Tax Exempt Loans | $40,665 | $2,267 | 7.45% |
| Securities | $1,135,304 | $23,987 | 2.82% |
| Short-term Investments | $2,796 | $103 | 4.92% |
| Interest Bearing Deposits | $119,021 | $4,618 | 5.18% |
Noninterest Income
Noninterest income is derived from various sources including fees, commissions, and investment income. For the nine months ended September 30, 2024, noninterest income increased to $44.968 million, up from $32.650 million in the prior year, a growth of 37.7%.
Components of Noninterest Income
The following table outlines the specific components of noninterest income for the nine months ended September 30, 2024:
| Source | Amount (in thousands) | Change from 2023 (in thousands) | Percentage Change (%) |
|---|---|---|---|
| Wealth Advisory Fees | $7,770 | $1,001 | 14.8% |
| Investment Brokerage Fees | $1,438 | $68 | 5.0% |
| Service Charges on Deposit Accounts | $8,332 | $241 | 3.0% |
| Loan and Service Fees | $8,855 | $73 | 0.8% |
| Merchant and Interchange Fee Income | $2,653 | ($91) | (3.3%) |
| Bank Owned Life Insurance Income | $2,994 | $601 | 25.1% |
| Net Gain on Visa Shares | $8,996 | $8,996 | 100.0% |
| Other Income | $3,908 | $2,001 | 104.9% |
Noninterest Expense Management
Noninterest expenses for the nine months ended September 30, 2024, totaled $94.431 million, down from $101.265 million in the previous year, representing a decrease of 6.7%. The reduction was primarily due to the absence of the $18.1 million wire fraud loss recorded in 2023.
Key Financial Metrics
Key financial metrics for Lakeland Financial Corporation as of September 30, 2024, include:
- Net income: $69.3 million, an increase of 8.0% from $64.1 million in 2023
- Diluted earnings per share: $2.69, up from $2.49 in the prior year
- Return on average total equity: 14.21%
- Return on average total assets: 1.40%
Provision for Credit Losses
The provision for credit losses for the nine months ended September 30, 2024, was $13.1 million, compared to $5.6 million in the same period of 2023, marking an increase of 135.3%.
Conclusion
The financial performance metrics and detailed breakdown of revenue sources illustrate how Lakeland Financial Corporation effectively generates income through both interest and noninterest activities, while also managing expenses and credit risk effectively.
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Article updated on 8 Nov 2024
Resources:
- Lakeland Financial Corporation (LKFN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Lakeland Financial Corporation (LKFN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lakeland Financial Corporation (LKFN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.