Open the filing on EDGARNEWS FROM LAKELAND FINANCIAL CORPORATION
Lisa M. O’Neill
Executive Vice President and Chief Financial Officer
Lakeland Financial Reports Record Second Quarter Performance; Net Income Increases 5% to $28.4 million on 7% Revenue Expansion; Average Loans Grow by 6%
Warsaw, Indiana (July 27, 2026) - Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported record second quarter net income of $28.4 million for the three months ended June 30, 2026, which represents an increase of $1.5 million, or 5%, compared to net income of $27.0 million for the three months ended June 30, 2025. Diluted earnings per share of $1.13 for the second quarter of 2026 also represents a record second quarter performance and increased $0.09, or 9%, compared to $1.04 for the second quarter of 2025. On a linked quarter basis, net income increased $2.0 million, or 7%, from $26.5 million. Diluted earnings per share increased $0.09, or 9%, from $1.04 on a linked quarter basis.
The company further reported record performance for the first half of the year with net income of $54.9 million for the six months ended June 30, 2026 versus $47.1 million for 2025, an increase of $7.9 million, or 17%. Diluted earnings per share increased $0.35, or 19%, to $2.17 for the six months ended June 30, 2026, versus $1.82 for 2025.
Total revenue was $70.9 million for the second quarter of 2026 representing an increase of $4.5 million, or 7%, as compared to $66.4 million for the second quarter of 2025. On a linked quarter basis, revenue increased by $1.2 million, or 2%, from $69.7 million in the first quarter of 2026. Total revenue increased by $10.4 million, or 8%, to $140.6 million for six months ended June 30, 2026, as compared to $130.2 million for 2025.
"During the first half of 2026, the Lake City Bank team delivered strong operating results led by healthy loan and revenue growth," stated David M. Findlay, Chairman and CEO. "Our record second quarter net income reflects the continued execution of our proven organic growth strategy. It's been a rewarding six months of 2026."
Quarterly Financial Performance
Second Quarter 2026 versus Second Quarter 2025 highlights:
- Loans grew by $352.8 million, or 7%, to $5.58 billion
- Total revenue improved by 7% from $66.4 million to $70.9 million
- Net interest margin improved 7 basis points to 3.49% versus 3.42%
- Net interest income increased by $3.4 million, or 6%
- Noninterest income increased by $1.1 million, or 9%
- Return on average equity of 15.00%, compared to 15.52%
- Return on average assets improved to 1.59%, compared to 1.57%
- Tangible book value per share grew by $3.27, or 12%, to $30.75
- Watch list loans as a percentage of total loans improved to 3.55% from 3.67%
- Nonaccrual loans declined to $19.9 million, compared to $30.6 million
- Common dividend per share increased to $0.52, or 4%, compared to $0.50
- Tangible capital ratio improved to 10.63%, compared to 10.15%
- Tangible common equity improved by $63.4 million, or 9%
- Common equity tier 1 capital ratio of 14.47%, compared to 14.73%
- Total risk-based capital ratio of 15.61%, compared to 15.86%
- Repurchased 70,873 shares at a weighted average per share price of $58.20
Second Quarter 2026 versus First Quarter 2026 highlights:
- Total loans increased by $106.3 million, or 2%, to $5.58 billion
- Core deposits expansion of $215.7 million, or 4%, to $6.03 billion
- Total revenue grew by 2% from $69.7 million to $70.9 million
- Return on average equity improved to 15.00%, compared to 13.89%
- Return on average assets improved to 1.59%, compared to 1.52%
- Tangible book value per share grew by $1.06, or 4%, to $30.75
- Net interest margin remained stable at 3.49%
- Net interest income increased by $1.5 million, or 3%
- Noninterest expense declined by 2% to $34.5 million from $35.2 million
- Common equity tier 1 capital ratio improved to 14.47%, compared to 14.45%
- Total risk-based capital ratio improved to 15.61%, compared to 15.58%
- Tangible capital ratio improved to 10.63%, compared to 10.53%
- Tangible common equity improved by $24.4 million, or 3%
Net Interest Margin
Net interest margin was 3.49% for the second quarter of 2026, representing a 7 basis point increase from 3.42% for the second quarter of 2025. 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 25 basis points from 2.41% for the second quarter of 2025 to 2.16% for the second quarter of 2026. Offsetting the decrease in funding costs was a decrease to earning asset yields of 18 basis points from 5.83% for the second quarter of 2025 to 5.65% for the second quarter of 2026. Net interest margin was favorably impacted by a reduction in deposit pricing that outpaced the decline in earning asset yields. The cumulative loan beta for the rate-easing cycle that began in September 2024 is 30% compared to the deposit beta of 43% during this period and has resulted in net interest margin expansion that has benefited net interest income.
Net interest margin remained at 3.49% for the second quarter of 2026 as compared to the linked first quarter of 2026. Average earning asset yields increased by 4 basis points from 5.61% to 5.65% on a linked quarter basis and were offset by increased interest expense as a percentage of average earning assets by 4 basis points from 2.12% to 2.16%. The second quarter cost of funds was impacted by seasonal public funds deposits in higher priced deposit products.
Net interest income was $58.3 million for the second quarter of 2026, representing an increase of $3.4 million, or 6%, as compared to $54.9 million for the second quarter of 2025. On a linked quarter basis, net interest income increased $1.5 million, or 3%, from $56.8 million. Net interest income increased by $7.3 million, or 7%, from $107.8 million for the six months ended June 30, 2025, to $115.1 million for the six months ended June 30, 2026.
"During the second quarter of 2026, our net interest margin remained unchanged at 3.49% as loan yield increases offset increased cost of funds," noted Lisa M. O'Neill, Executive Vice President and Chief Financial Officer. "We remain close to our recent peak net interest margin of 3.50% in the third quarter of 2025. We believe the steepening yield curve benefits our net interest margin outlook and as the outlook for interest rate policy shifts, we believe our neutral interest rate posture positions us well."
Capital Strength
The company’s total capital as a percentage of risk-weighted assets was 15.61% at June 30, 2026, compared to 15.86% at June 30, 2025, and 15.58% at March 31, 2026. 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, was 10.63% at June 30, 2026, an improvement from 10.15% at June 30, 2025, and 10.53% at March 31, 2026. Unrealized losses from available-for-sale investment securities were $140.9 million at June 30, 2026, compared to $185.3 million at June 30, 2025 and $154.5 million at March 31, 2026. 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 12.14% at June 30, 2026, compared to 12.17% at June 30, 2025, and 12.20% at March 31, 2026.
The company utilized its share repurchase program to repurchase 70,873 shares of its common stock at a weighted average price per share of $58.20 during the second quarter of 2026. The aggregate purchase price of these repurchases was $4.1 million. The current program authorizes the company to repurchase up to $60.0 million in aggregate purchase price of the company's common stock through April 30, 2027. The company has repurchased a total of 745,616 shares at an aggregate purchase price of $42.9 million and weighted average purchase price per share of $57.58 under the current program with $17.1 million in remaining repurchase authority as of June 30, 2026.
As announced on July 14, 2026, the board of directors approved a cash dividend for the second quarter of $0.52 per share, payable on August 5, 2026, to shareholders of record as of July 25, 2026. The second quarter dividend per share represents a 4% increase from the $0.50 dividend per share paid for the second quarter of 2025.
"Strength of capital continues to support our growing balance sheet," stated Kristin L. Pruitt, President. "Tangible common equity improved by 9% at June 30, 2026 compared to June 30, 2025. We strategically continued our share repurchase program during the first half of 2026. Our healthy capital levels provide ample capacity for continued balance sheet growth as we experience strong loan growth in the Lake City Bank footprint."
Loan Portfolio
Average total loans of $5.53 billion in the second quarter of 2026 increased $301.7 million, or 6%, from $5.23 billion for the second quarter of 2025, and increased $90.5 million, or 2%, from $5.44 billion for the first quarter of 2026.
Total loans, net of deferred loan fees, increased by $352.8 million, or 7%, from $5.23 billion as of June 30, 2025, to $5.58 billion as of June 30, 2026. The growth in loans was driven by increases in both the commercial and consumer segments of the portfolio, with increases to the commercial and industrial loans of $150.6 million, or 10%, consumer 1-4 family mortgage loans of $82.7 million, or 16%, commercial real estate and multi-family residential loans of $80.2 million, or 3%, other commercial loans of $25.6 million, or 27%, and other consumer loans of $14.1 million, or 14%. On a linked quarter basis, total loans increased by $106.3 million, or 2%, from $5.48 billion at March 31, 2026. The linked quarter increase was driven by growth in both the commercial and consumer segments of the portfolio, with increases to the commercial and industrial loan portfolio of $65.6 million, or 4%, consumer 1-4 family mortgage loans of $28.0 million, or 5%, other commercial loans of $25.3 million, or 26.4%, and commercial real estate and multi-family residential loans of $20.3 million, or 1%. Offsetting these increases, agri-business and agricultural loans declined by $34.7 million, or 9%.
Commercial loan originations for the second quarter were approximately $504.0 million and were offset by approximately $427.0 million in loan pay downs. Commercial and industrial line of credit usage increased to 43% as of June 30, 2026, from 40% at June 30, 2025, and 41% at March 31, 2026. Total commercial and industrial lines of credit expanded by $155.0 million, or 7%, as compared to a year ago, and line usage increased by $120.0 million, or 14%, over that period.
Findlay added, "Our year-over-year organic loan growth of 7% reflects outstanding work by our commercial and retail lending teams. Our prospect and client business development program is yielding tangible results, and we remain well positioned for continued growth. We are very pleased with 10% growth in commercial and industrial loans, which represent the foundation of our commercial banking business. In addition, commercial and industrial line of credit utilization of 43% at June 30, 2026, represents increased usage compared to 39% at December 31, 2025. We are particularly pleased to report that our total consumer loans have grown by 16% on a year-over-year basis."
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 95% of total deposits.
| (in thousands) | June 30, 2026 | March 31, 2026 | June 30, 2025 |
| Retail | $1,769,029 | 28.0% | $1,800,420 | 29.1% | $1,755,750 | 28.4% |
| Commercial | 2,113,784 | 33.4 | 2,136,404 | 34.5 | 2,256,620 | 36.6 |
| Public funds | 2,147,600 | 33.9 | 1,877,855 | 30.3 | 2,014,047 | 32.6 |
| Core deposits | 6,030,413 | 95.3 | 5,814,679 | 93.9 | 6,026,417 | 97.6 |
| Brokered deposits | 299,155 | 4.7 | 375,581 | 6.1 | 150,416 | 2.4 |
| Total | $6,329,568 | 100.0% | $6,190,260 | 100.0% | $6,176,833 | 100.0% |
Total deposits increased $152.7 million, or 2%, from $6.18 billion as of June 30, 2025, to $6.33 billion as of June 30, 2026. The increase in total deposits was driven by an increase in brokered deposits of $148.7 million, or 99%. Core deposits increased by $4.0 million, or less than 1%. Public funds deposits grew annually by $133.6 million, or 7%, to $2.15 billion. Retail deposits expanded by $13.3 million, or 1%, to $1.77 billion. Commercial deposits contracted by $142.8 million, or 6%, to $2.11 billion.
On a linked quarter basis, total deposits increased $139.3 million, or 2%, from $6.19 billion at March 31, 2026, to $6.33 billion at June 30, 2026. Core deposits increased by $215.7 million, or 4%, while brokered deposits decreased by $76.4 million, or 20%. The linked quarter growth in core deposits was driven primarily by a seasonal growth in public funds of $269.7 million, or 14%. Commercial deposits decreased by $22.6 million, or 1%, and retail deposits decreased by $31.4 million, or 2%.
Average total deposits were $6.31 billion for the second quarter of 2026, an increase of $216.2 million, or 4%, from $6.10 billion for the second quarter of 2025. Average interest-bearing deposits drove the increase in average total deposits and increased by $232.5 million, or 5%. Contributing to the overall growth of interest-bearing deposits was an increase in total average time deposits of $131.4 million, or 16%. Average interest-bearing checking accounts increased $99.5 million, or 3%. Average noninterest-bearing demand deposits decreased by $16.3 million, or 1%, to $1.23 billion.
On a linked quarter basis, average total deposits increased by $257.1 million, or 4%, from $6.06 billion for the first quarter of 2026 to $6.31 billion for the second quarter of 2026. Average interest-bearing deposits drove the increase in total average deposits, which increased by $264.0 million, or 5%. Interest bearing checking accounts grew by $180.7 million, or 5%. Average time deposits expanded by $83.4 million, or 10%. Offsetting these increases was a decrease in average noninterest bearing demand deposits of $6.8 million, or 1%.
Checking account growth as of June 30, 2026, compared to June 30, 2025, includes growth of $249.2 million, or 13%, in aggregate public fund checking account balances. Offsetting this increase was a reduction of $10.4 million, or 1%, in aggregate retail checking account balances and a decline of $173.5 million, or 8%, in aggregate commercial checking account balances. The number of accounts expanded for all three segments, with growth of 3% for public funds accounts, 2% for commercial accounts and 1% for retail accounts.
"Core deposits represented 95% of total deposits at June 30, 2026", commented O'Neill. "On a linked-quarter basis core deposits improved by $215.7 million or 3.7% with double-digit growth in the public funds sector. Public fund account checking balances grew by $249 million or 13% due to new municipal depositors who represent relationship-driven clients. We continue to experience an increase in the number of checking accounts year-over-year, and average checking account balances remain higher than pre-pandemic levels."
Asset Quality
The company recorded a provision for credit losses of $1.7 million in the second quarter of 2026, compared to $3.0 million in the second quarter of 2025 and $2.0 million for the linked first quarter of 2026.
The allowance for credit loss reserve to total loans was 1.27% at June 30, 2026, unchanged from 1.27% at June 30, 2025 and increased from 1.26% at March 31, 2026. The company recorded net charge offs of $24,000 in the second quarter of 2026, compared to net charge offs of $28.9 million in the second quarter of 2025 and $2.1 million during the linked first quarter of 2026. Net charge offs during the second quarter of 2025 were driven by the partial charge off of a previously disclosed nonperforming credit. Annualized net charge offs to average loans were 0.00% for the second quarter of 2026, compared to 2.22% for the second quarter of 2025 and 0.16% for the linked first quarter of 2026.
Nonperforming assets decreased by $11.1 million, or 36%, to $20.0 million as of June 30, 2026, versus $31.1 million as of June 30, 2025. The decrease to nonperforming assets was primarily driven by the resolution of the previously disclosed nonperforming credit during the third quarter of 2025. On a linked quarter basis, nonperforming assets decreased by $938,000, or 4%. The ratio of nonperforming assets to total assets at June 30, 2026, decreased to 0.28% from 0.45% at June 30, 2025, and 0.30% when compared to March 31, 2026.
Total individually analyzed and watch list loans increased by $6.4 million, or 3%, to $198.0 million as of June 30, 2026, versus $191.6 million as of June 30, 2025. On a linked quarter basis, total individually analyzed and watch list loans increased by $15.7 million, or 9%, from $182.3 million at March 31, 2026. The increase in individually analyzed and watch list loans during the linked quarter was driven primarily by credit downgrades to the watch list of approximately $13.2 million. Migration within the watch list was driven by three unrelated relationships, with an aggregate balance of approximately $24.7 million, that were moved from the pooled watch list to individually analyzed status during the second quarter of 2026. Watch list loans as a percentage of total loans were 3.55% at June 30, 2026, a 12 basis point decrease compared to 3.67% at June 30, 2025, and a 22 basis point increase from 3.33% at March 31, 2026.
"Our loan portfolio is well-diversified, and our loan portfolio continues to demonstrate stable performance trends," commented Findlay. "Our borrowers continue to navigate the changing economic landscape well and our mid-year loan portfolio reviews did not identify significant credit concerns."
Investment Portfolio Overview
Total investment securities were $1.17 billion at June 30, 2026, reflecting an increase of $39.8 million, or 4%, as compared to $1.13 billion at June 30, 2025. Investment securities represented 16% of total assets as of June 30, 2026. The company anticipates receiving principal and interest cash flows of approximately $51.9 million during the remainder of 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 contracted to 5.8 years at June 30, 2026, compared to 5.9 years at June 30, 2025, and 6.0 years at March 31, 2026.
Noninterest Income
The company’s noninterest income increased $1.1 million, or 9%, to $12.6 million for the second quarter of 2026, compared to $11.5 million for the second quarter of 2025. Wealth advisory fees increased $350,000, or 13%, driven by continued growth in customers and assets under management. Bank owned life insurance income increased $577,000, or 55%, from improved market performance of the bank's variable owned life insurance policies which reflect returns in the equity markets. Other income increased by $127,000, or 32%, primarily from increased limited partnership investment income.
Noninterest income for the second quarter of 2026 decreased by $361,000, or 3%, on a linked quarter basis from $12.9 million during the first quarter of 2026. Bank owned life insurance increased $641,000, or 66%, from improved variable owned life insurance policy market performance and increased general account income, which is impacted during the first quarter from annual insurance costs that are charged against certain policies. Conversely, interest rate swap fee income decreased $701,000. Other income decreased by $205,000, or 28%, which was impacted during the first quarter of 2026 from the recognition of death benefit income from bank owned life insurance policies. Loan and service fee income decreased $147,000, or 5%, from reduced commercial loan fees.
Findlay noted, "We are pleased to report nearly double-digit growth in quarterly noninterest income on a year-over-year basis and 14% growth in noninterest income for the six months ended June 30, 2026 as compared to the same period in 2025. Our fee-based business is growing with 10% growth in the Wealth Advisory Group and 6% improvement in loan and service fees. Interest rate swap fees have also contributed nicely to noninterest revenue growth for the first six months of 2026 together with an increase in mortgage banking income."
Noninterest income increased by $3.1 million, or 14%, to $25.5 million for the six months ended June 30, 2026, compared to $22.4 million for the prior year period. Increases in fee-based revenue streams contributed to the increase to noninterest income, with wealth advisory fees improving by $546,000, or 10%, loan and service fees improving by $377,000, or 6%, service charges on deposit accounts improving by $151,000, or 3%, and investment brokerage fees improving by $33,000, or 3%. Additionally, bank owned life insurance increased $1.2 million, or 90.4%, from improved market performance from variable bank owned life insurance policies and incremental income from general account policies purchased in 2025. Increased transaction volume drove increases to interest rate swap fee income of $681,000 and mortgage banking income of $136,000.
Noninterest Expense
Noninterest expense increased $4.0 million, or 13%, to $34.5 million for the second quarter of 2026, compared to $30.4 million during the second quarter of 2025. Salaries and employee benefits expense increased by $3.4 million, or 20%, primarily the result of increased salaries and wages, performance-based incentive compensation accruals, and benefits expenses. Deferred variable compensation expense, which is offset by noninterest income recorded from the performance of the company's variable bank owned life insurance policies, contributed further to the increase. Net occupancy expense increased $220,000, or 13%, from the company's continued expansion and reinvestment into its physical branch and operational infrastructure. Data processing fees and supplies increased $222,000, or 5%, from continued investment in customer-facing and operational technology solutions, including artificial intelligence capabilities. Additionally, corporate and business development expense increased $82,000, or 7%, professional fees increased $79,000, or 5%, and FDIC insurance and other regulatory fees increased $42,000, or 5%.
On a linked quarter basis, noninterest expense decreased by $694,000, or 2%, from $35.2 million during the first quarter of 2026. Other expense decreased $421,000, or 15%, primarily from semi-annual board of directors share grants that occurred in the linked first quarter. Corporate and business development expense decreased by $251,000, or 17%, from a reduction in seasonal advertising expense. Net occupancy expense decreased by $137,000, or 7%, driven by reduced seasonal occupancy expenses, and professional fees decreased $152,000, or 8%, from reduced accruals for legal and accounting fees. Offsetting these decreases was an increase to salaries and employee benefits expense of $199,000, or 1%, and data processing fees and supplies expense of $115,000, or 3%.
Noninterest expense increased by $6.4 million, or 10%, for the six months ended June 30, 2026, to $69.6 million compared to $63.2 million for the six months ended June 30, 2025. Salaries and employee benefits expense increased $5.8 million, or 17%, primarily due to increased salaries and wages of $2.0 million, performance-based incentive compensation accruals of $2.3 million, variable deferred compensation expense of $799,000, and health insurance expense of $677,000. Net occupancy expense increased $344,000, or 9%. Data processing fees and supplies expense increased $216,000, or 3%, from continued investment in customer-facing and operational technology solutions. Corporate and business development expense increased $169,000, or 7%, from increased advertising and corporate development expenses. FDIC insurance and other regulatory fees increased $115,000, or 7%, from increased FDIC insurance premium accruals. Offsetting these increases was a decrease in professional fees of $364,000, or 9%, primarily driven by reduced technology implementation fees.
The company’s efficiency ratio was 48.6% for the second quarter of 2026, compared to 45.9% for the second quarter of 2025 and 50.4% for the linked first quarter of 2026. The company's efficiency ratio was 49.5% for the six months ended June 30, 2026, compared to 48.6% for the comparable period in 2025.
"We are pleased to report that strong revenue growth during the second quarter of 2026 improved our efficiency ratio on a linked quarter basis. Our largest investments in the business continue to be focused on revenue generating human capital, strategic branch development in our Lake City Bank footprint and investments in technology solutions," noted Findlay. "In addition to two new branch locations under development in Indianapolis currently, we have future plans for increased presence in our South Bend and Fort Wayne markets."
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 $7.2 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.
Forward-looking statements notice
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, which are incorporated herein by reference.
LAKELAND FINANCIAL CORPORATION
SECOND QUARTER 2026 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 | | 2026 | | 2026 | | 2025 | | 2026 | | 2025 |
| Assets | $7,242,959 | | $7,083,680 | | $6,964,301 | | $7,242,959 | | $6,964,301 | |
| Investments | 1,169,188 | | 1,160,608 | | 1,129,346 | | 1,169,188 | | 1,129,346 | |
| Loans | 5,579,625 | | 5,473,358 | | 5,226,827 | | 5,579,625 | | 5,226,827 | |
| Allowance for Credit Losses | 70,598 | | 68,914 | | 66,552 | | 70,598 | | 66,552 | |
| Deposits | 6,329,568 | | 6,190,260 | | 6,176,833 | | 6,329,568 | | 6,176,833 | |
| Brokered Deposits | 299,155 | | 375,581 | | 150,416 | | 299,155 | | 150,416 | |
| Core Deposits (1) | 6,030,413 | | 5,814,679 | | 6,026,417 | | 6,030,413 | | 6,026,417 | |
| Total Equity | 773,374 | | 748,993 | | 709,987 | | 773,374 | | 709,987 | |
| Goodwill Net of Deferred Tax Assets | 3,803 | | 3,803 | | 3,803 | | 3,803 | | 3,803 | |
| Tangible Common Equity (2) | 769,571 | | 745,190 | | 706,184 | | 769,571 | | 706,184 | |
| Adjusted Tangible Common Equity (2) | 893,530 | | 880,296 | | 866,758 | | 893,530 | | 866,758 | |
| AVERAGE BALANCES | | | | | |
| Total Assets | $7,190,663 | | $7,082,213 | | $6,904,681 | | $7,136,737 | | $6,834,217 | |
| Earning Assets | 6,832,702 | | 6,729,394 | | 6,570,607 | | 6,781,334 | | 6,501,092 | |
| Investments | 1,161,807 | | 1,190,278 | | 1,125,597 | | 1,175,964 | | 1,130,970 | |
| Loans | 5,531,344 | | 5,440,876 | | 5,229,646 | | 5,486,359 | | 5,207,903 | |
| Total Deposits | 6,312,674 | | 6,055,539 | | 6,096,504 | | 6,184,817 | | 5,986,227 | |
| Interest Bearing Deposits | 5,084,953 | | 4,821,000 | | 4,852,446 | | 4,953,706 | | 4,735,066 | |
| Interest Bearing Liabilities | 5,133,439 | | 5,004,623 | | 4,886,943 | | 5,069,387 | | 4,802,175 | |
| Total Equity | 760,533 | | 772,946 | | 696,976 | | 766,706 | | 696,517 | |
| INCOME STATEMENT DATA | | | | | |
| Net Interest Income | $58,301 | | $56,773 | | $54,876 | | $115,074 | | $107,751 | |
| Net Interest Income-Fully Tax Equivalent | 59,404 | | 57,878 | | 55,986 | | 117,282 | | 109,970 | |
| Provision for Credit Losses | 1,708 | | 2,000 | | 3,000 | | 3,708 | | 9,800 | |
| Noninterest Income | 12,572 | | 12,933 | | 11,486 | | 25,505 | | 22,414 | |
| Noninterest Expense | 34,457 | | 35,151 | | 30,432 | | 69,608 | | 63,195 | |
| Net Income | 28,440 | | 26,478 | | 26,966 | | 54,918 | | 47,051 | |
| Pretax Pre-Provision Earnings (2) | 36,416 | | 34,555 | | 35,930 | | 70,971 | | 66,970 | |
| PER SHARE DATA | | | | | |
| Basic Net Income Per Common Share | $1.14 | | $1.04 | | $1.05 | | $2.18 | | $1.83 | |
| Diluted Net Income Per Common Share | 1.13 | | 1.04 | | 1.04 | | 2.17 | | 1.82 | |
| Cash Dividends Declared Per Common Share | 0.52 | | 0.52 | | 0.50 | | 1.04 | | 1.00 | |
| Dividend Payout | 46.02% | | 50.00% | | 48.08% | | 47.93% | | 54.95% | |
| Book Value Per Common Share (equity per share issued) | $30.90 | | $29.84 | | $27.63 | | $30.90 | | $27.63 | |
| Tangible Book Value Per Common Share (2) | 30.75 | | 29.69 | | 27.48 | | 30.75 | | 27.48 | |
| Market Value - High | $63.03 | | $63.80 | | $62.39 | | $63.80 | | $71.77 | |
| Market Value - Low | 56.56 | | 54.36 | | 50.00 | | 54.36 | | 50.00 | |
| Basic Weighted Average Common Shares Outstanding | 25,058,539 | | 25,344,757 | | 25,707,233 | | 25,201,252 | | 25,711,004 | |
| 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) | | 2026 | | 2026 | | 2025 | | 2026 | | 2025 |
| Diluted Weighted Average Common Shares Outstanding | 25,231,590 | | 25,493,920 | | 25,776,205 | | 25,361,745 | | 25,782,817 | |
| KEY RATIOS | | | | | |
| Return on Average Assets | 1.59% | | 1.52% | | 1.57% | | 1.55% | | 1.39% | |
| Return on Average Total Equity | 15.00 | | 13.89 | | 15.52 | | 14.44 | | 13.62 | |
| Average Equity to Average Assets | 10.58 | | 10.91 | | 10.09 | | 10.74 | | 10.19 | |
| Net Interest Margin | 3.49 | | 3.49 | | 3.42 | | 3.49 | | 3.41 | |
| Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income) | 48.62 | | 50.43 | | 45.86 | | 49.51 | | 48.55 | |
| Loans to Deposits | 88.15 | | 88.42 | | 84.62 | | 88.15 | | 84.62 | |
| Investment Securities to Total Assets | 16.14 | | 16.38 | | 16.22 | | 16.14 | | 16.22 | |
| Tier 1 Leverage (3) | 12.17 | | 12.20 | | 12.21 | | 12.17 | | 12.21 | |
| Tier 1 Risk-Based Capital (3) | 14.47 | | 14.45 | | 14.73 | | 14.47 | | 14.73 | |
| Common Equity Tier 1 (CET1) (3) | 14.47 | | 14.45 | | 14.73 | | 14.47 | | 14.73 | |
| Total Capital (3) | 15.61 | | 15.58 | | 15.86 | | 15.61 | | 15.86 | |
| Tangible Capital (2) | 10.63 | | 10.53 | | 10.15 | | 10.63 | | 10.15 | |
| Adjusted Tangible Capital (2) | 12.14 | | 12.20 | | 12.17 | | 12.14 | | 12.17 | |
| ASSET QUALITY | | | | | |
| Loans Past Due 30 - 89 Days | $3,026 | | $7,416 | | $1,648 | | $3,026 | | $1,648 | |
| Loans Past Due 90 Days or More | 6 | | 7 | | 7 | | 6 | | 7 | |
| Nonaccrual Loans | 19,946 | | 20,909 | | 30,627 | | 19,946 | | 30,627 | |
| Nonperforming Loans | 19,952 | | 20,916 | | 30,634 | | 19,952 | | 30,634 | |
| Other Real Estate Owned | 0 | | 0 | | 284 | | 0 | | 284 | |
| Other Nonperforming Assets | 48 | | 22 | | 183 | | 48 | | 183 | |
| Total Nonperforming Assets | 20,000 | | 20,938 | | 31,101 | | 20,000 | | 31,101 | |
| Individually Analyzed Loans | 66,945 | | 43,160 | | 52,069 | | 66,945 | | 52,069 | |
| Non-Individually Analyzed Watch List Loans | 131,070 | | 139,117 | | 139,548 | | 131,070 | | 139,548 | |
| Total Individually Analyzed and Watch List Loans | 198,015 | | 182,277 | | 191,617 | | 198,015 | | 191,617 | |
| Gross Charge Offs | 431 | | 2,196 | | 29,111 | | 2,627 | | 29,619 | |
| Recoveries | 407 | | 115 | | 230 | | 522 | | 411 | |
| Net Charge Offs/(Recoveries) | 24 | | 2,081 | | 28,881 | | 2,105 | | 29,208 | |
| Net Charge Offs/(Recoveries) to Average Loans | 0.00% | | 0.16% | | 2.22% | | 0.08% | | 1.13% | |
| Credit Loss Reserve to Loans | 1.27 | | 1.26 | | 1.27 | | 1.27 | | 1.27 | |
| Credit Loss Reserve to Nonperforming Loans | 353.84 | | 329.48 | | 217.25 | | 353.84 | | 217.25 | |
| Nonperforming Loans to Loans | 0.36 | | 0.38 | | 0.59 | | 0.36 | | 0.59 | |
| Nonperforming Assets to Assets | 0.28 | | 0.30 | | 0.45 | | 0.28 | | 0.45 | |
| Total Individually Analyzed and Watch List Loans to Total Loans | 3.55 | | 3.33 | | 3.67 | | 3.55 | | 3.67 | |
| OTHER DATA | | | | | |
| Full Time Equivalent Employees | 695 | | 674 | | 675 | | 695 | | 675 | |
| Offices | 55 | | 55 | | 54 | | 55 | | 54 | |
(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, 2026 are preliminary until the FR Y-9C is filed.
CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share data)
| June 30, 2026 | December 31, 2025 |
|---|
| (unaudited) | |
|---|
| ASSETS | | |
| Cash and due from banks | $69,864 | $57,139 |
| Short-term investments | 124,262 | 84,179 |
| Total cash and cash equivalents | 194,126 | 141,318 |
| Securities available-for-sale, at fair value | 1,035,163 | 1,052,062 |
| Securities held-to-maturity, at amortized cost (fair value of $119,433 and $117,510, respectively) | 134,025 | 133,208 |
| Real estate mortgage loans held-for-sale | 3,630 | 2,707 |
| Loans, net of allowance for credit losses of $70,598 and $68,995 | 5,509,027 | 5,306,354 |
| Land, premises and equipment, net | 72,504 | 65,542 |
| Bank owned life insurance | 132,366 | 129,978 |
| Federal Reserve and Federal Home Loan Bank stock | 21,420 | 21,420 |
| Accrued interest receivable | 29,514 | 28,997 |
| Goodwill | 4,970 | 4,970 |
| Other assets | 106,214 | 103,466 |
| Total assets | $7,242,959 | $6,990,022 |
| LIABILITIES | | |
| Noninterest bearing deposits | $1,292,033 | $1,221,327 |
| Interest bearing deposits | 5,037,535 | 4,752,023 |
| Total deposits | 6,329,568 | 5,973,350 |
| Borrowings - Federal Home Loan Bank advances: | | |
| Short-term advance | 70,000 | 170,000 |
| Long-term advance | 1,200 | 1,200 |
| Other borrowings | 0 | 13,000 |
| Total borrowings | 71,200 | 184,200 |
| Accrued interest payable | 8,961 | 8,868 |
| Other liabilities | 59,856 | 61,112 |
| Total liabilities | 6,469,585 | 6,227,530 |
| STOCKHOLDERS’ EQUITY | | |
| Common stock: 90,000,000 shares authorized, no par value | | |
| 26,063,576 shares issued and 24,858,875 outstanding as of June 30, 2026 | | |
| 26,023,644 shares issued and 25,219,634 outstanding as of December 31, 2025 | 140,020 | 136,965 |
| Retained earnings | 817,002 | 788,345 |
| Accumulated other comprehensive income (loss) | (124,463) | (127,137) |
| Treasury stock at cost (1,204,701 shares as of June 30, 2026, 804,010 shares as of December 31, 2025) | (59,274) | (35,770) |
| Total stockholders’ equity | 773,285 | 762,403 |
| Noncontrolling interest | 89 | 89 |
| Total equity | 773,374 | 762,492 |
| Total liabilities and equity | $7,242,959 | $6,990,022 |
CONSOLIDATED STATEMENTS OF INCOME (unaudited - in thousands, except share and per share data)
| Three Months Ended June 30, | Six Months Ended June 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| NET INTEREST INCOME | | | | |
| Interest and fees on loans | | | | |
| Taxable | $85,994 | | $84,418 | | $169,105 | | $166,158 | |
| Tax exempt | 293 | | 291 | | 572 | | 583 | |
| Interest and dividends on securities | | | | |
| Taxable | 3,764 | | 3,457 | | 7,605 | | 6,846 | |
| Tax exempt | 3,883 | | 3,917 | | 7,790 | | 7,827 | |
| Other interest income | 1,214 | | 2,302 | | 2,063 | | 3,426 | |
| Total interest income | 95,148 | | 94,385 | | 187,135 | | 184,840 | |
| Interest on deposits | 36,379 | | 39,111 | | 69,810 | | 75,569 | |
| Interest on short-term borrowings | 468 | | 398 | | 2,251 | | 1,520 | |
| Total interest expense | 36,847 | | 39,509 | | 72,061 | | 77,089 | |
| NET INTEREST INCOME | 58,301 | | 54,876 | | 115,074 | | 107,751 | |
| Provision for credit losses | 1,708 | | 3,000 | | 3,708 | | 9,800 | |
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 56,593 | | 51,876 | | 111,366 | | 97,951 | |
| NONINTEREST INCOME | | | | |
| Wealth advisory fees | 3,017 | | 2,667 | | 6,080 | | 5,534 | |
| Investment brokerage fees | 511 | | 550 | | 1,035 | | 1,002 | |
| Service charges on deposit accounts | 2,878 | | 2,827 | | 5,752 | | 5,601 | |
| Loan and service fees | 3,060 | | 3,006 | | 6,267 | | 5,890 | |
| Merchant and interchange fee income | 836 | | 854 | | 1,613 | | 1,676 | |
| Bank owned life insurance income | 1,617 | | 1,040 | | 2,593 | | 1,362 | |
| Interest rate swap fee income | 0 | | 20 | | 701 | | 20 | |
| Mortgage banking income | 128 | | 124 | | 209 | | 73 | |
| Other income | 525 | | 398 | | 1,255 | | 1,256 | |
| Total noninterest income | 12,572 | | 11,486 | | 25,505 | | 22,414 | |
| NONINTEREST EXPENSE | | | | |
| Salaries and employee benefits | 20,494 | | 17,096 | | 40,789 | | 34,998 | |
| Net occupancy expense | 1,967 | | 1,747 | | 4,071 | | 3,727 | |
| Equipment costs | 1,409 | | 1,437 | | 2,873 | | 2,819 | |
| Data processing fees and supplies | 4,374 | | 4,152 | | 8,633 | | 8,417 | |
| Corporate and business development | 1,242 | | 1,160 | | 2,735 | | 2,566 | |
| FDIC insurance and other regulatory fees | 881 | | 839 | | 1,754 | | 1,639 | |
| Professional fees | 1,785 | | 1,706 | | 3,722 | | 4,086 | |
| Other expense | 2,305 | | 2,295 | | 5,031 | | 4,943 | |
| Total noninterest expense | 34,457 | | 30,432 | | 69,608 | | 63,195 | |
| INCOME BEFORE INCOME TAX EXPENSE | 34,708 | | 32,930 | | 67,263 | | 57,170 | |
| Income tax expense | 6,268 | | 5,964 | | 12,345 | | 10,119 | |
| NET INCOME | $28,440 | | $26,966 | | $54,918 | | $47,051 | |
| BASIC WEIGHTED AVERAGE COMMON SHARES | 25,058,539 | | 25,707,233 | | 25,201,252 | | 25,711,004 | |
| BASIC EARNINGS PER COMMON SHARE | $1.14 | | $1.05 | | $2.18 | | $1.83 | |
| DILUTED WEIGHTED AVERAGE COMMON SHARES | 25,231,590 | | 25,776,205 | | 25,361,745 | | 25,782,817 | |
| DILUTED EARNINGS PER COMMON SHARE | $1.13 | | $1.04 | | $2.17 | | $1.82 | |
LAKELAND FINANCIAL CORPORATION
LOAN DETAIL
(unaudited, in thousands)
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |
|---|
| Commercial and industrial loans: | | | | | | |
| Working capital lines of credit loans | $815,493 | 14.6% | $742,655 | 13.6% | $717,484 | 13.7% |
| Non-working capital loans | 828,878 | 14.9 | 836,121 | 15.3 | 776,278 | 14.9 |
| Total commercial and industrial loans | 1,644,371 | 29.5 | 1,578,776 | 28.9 | 1,493,762 | 28.6 |
| Commercial real estate and multi-family residential loans: | | | | | | |
| Construction and land development loans | 439,987 | 7.9 | 509,143 | 9.3 | 552,998 | 10.6 |
| Owner occupied loans | 804,995 | 14.4 | 807,813 | 14.8 | 780,285 | 14.9 |
| Nonowner occupied loans | 937,493 | 16.8 | 960,395 | 17.5 | 869,196 | 16.6 |
| Multifamily loans | 578,151 | 10.4 | 462,984 | 8.5 | 477,910 | 9.1 |
| Total commercial real estate and multi-family residential loans | 2,760,626 | 49.5 | 2,740,335 | 50.1 | 2,680,389 | 51.2 |
| Agri-business and agricultural loans: | | | | | | |
| Loans secured by farmland | 180,871 | 3.2 | 177,823 | 3.2 | 150,934 | 2.9 |
| Loans for agricultural production | 158,522 | 2.8 | 196,258 | 3.6 | 188,501 | 3.6 |
| Total agri-business and agricultural loans | 339,393 | 6.0 | 374,081 | 6.8 | 339,435 | 6.5 |
| Other commercial loans | 121,060 | 2.2 | 95,764 | 1.7 | 95,442 | 1.8 |
| Total commercial loans | 4,865,450 | 87.2 | 4,788,956 | 87.5 | 4,609,028 | 88.1 |
| Consumer 1-4 family mortgage loans: | | | | | | |
| Closed end first mortgage loans | 302,799 | 5.4 | 292,724 | 5.3 | 273,287 | 5.2 |
| Open end and junior lien loans | 283,099 | 5.1 | 263,600 | 4.8 | 226,114 | 4.4 |
| Residential construction and land development loans | 12,904 | 0.2 | 14,429 | 0.3 | 16,667 | 0.3 |
| Total consumer 1-4 family mortgage loans | 598,802 | 10.7 | 570,753 | 10.4 | 516,068 | 9.9 |
| Other consumer loans | 117,953 | 2.1 | 116,158 | 2.1 | 103,880 | 2.0 |
| Total consumer loans | 716,755 | 12.8 | 686,911 | 12.5 | 619,948 | 11.9 |
| Subtotal | 5,582,205 | 100.0% | 5,475,867 | 100.0% | 5,228,976 | 100.0% |
| Less: Allowance for credit losses | (70,598) | | (68,914) | | (66,552) | |
| Net deferred loan fees | (2,580) | | (2,509) | | (2,149) | |
| Loans, net | $5,509,027 | | $5,404,444 | | $5,160,275 | |
LAKELAND FINANCIAL CORPORATION
DEPOSITS AND BORROWINGS
(unaudited, in thousands)
| June 30, 2026 | March 31, 2026 | June 30, 2025 |
|---|
| Noninterest bearing demand deposits | $1,292,033 | $1,301,547 | $1,261,740 |
| Savings and transaction accounts: | | | |
| Savings deposits | 281,901 | 291,355 | 283,976 |
| Interest bearing demand deposits | 3,828,259 | 3,649,409 | 3,841,703 |
| Time deposits: | | | |
| Deposits of $100,000 or more | 727,412 | 746,168 | 584,165 |
| Other time deposits | 199,963 | 201,781 | 205,249 |
| Total deposits | $6,329,568 | $6,190,260 | $6,176,833 |
| FHLB advances and other borrowings | 71,200 | 68,200 | 6,200 |
| Total funding sources | $6,400,768 | $6,258,460 | $6,183,033 |
LAKELAND FINANCIAL CORPORATION
AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS
(UNAUDITED)
| Three Months Ended June 30, 2026 | Three Months Ended March 31, 2026 | Three Months Ended June 30, 2025 |
|---|
| (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) | $5,507,100 | $85,994 | 6.26% | $5,417,380 | $83,111 | 6.22% | $5,204,006 | $84,418 | 6.51% |
| Tax exempt (1) | 24,244 | 363 | 6.01 | 23,496 | 346 | 5.98 | 25,640 | 359 | 5.62 |
| Investments: (1) | | | | | | | | | |
| Securities | 1,161,807 | 8,680 | 3.00 | 1,190,278 | 8,786 | 2.99 | 1,125,597 | 8,416 | 3.00 |
| Short-term investments | 3,567 | 28 | 3.15 | 2,701 | 21 | 3.15 | 2,832 | 28 | 3.97 |
| Interest bearing deposits | 135,984 | 1,186 | 3.50 | 95,539 | 828 | 3.51 | 212,532 | 2,274 | 4.29 |
| Total earning assets | $6,832,702 | $96,251 | 5.65% | $6,729,394 | $93,092 | 5.61% | $6,570,607 | $95,495 | 5.83% |
| Less: Allowance for credit losses | (69,959) | | | (68,944) | | | (93,644) | | |
| Nonearning Assets | | | | | | | | | |
| Cash and due from banks | 64,197 | | | 67,282 | | | 66,713 | | |
| Premises and equipment | 69,499 | | | 65,997 | | | 61,280 | | |
| Other nonearning assets | 294,224 | | | 288,484 | | | 299,725 | | |
| Total assets | $7,190,663 | | | $7,082,213 | | | $6,904,681 | | |
| Interest Bearing Liabilities | | | | | | | | | |
| Savings deposits | $287,520 | $41 | 0.06% | $287,643 | $41 | 0.06% | $285,944 | $43 | 0.06% |
| Interest bearing checking accounts | 3,867,392 | 28,184 | 2.92 | 3,686,666 | 26,110 | 2.87 | 3,767,903 | 31,499 | 3.35 |
| Time deposits: | | | | | | | | | |
| In denominations under $100,000 | 201,696 | 1,576 | 3.13 | 201,974 | 1,548 | 3.11 | 208,770 | 1,745 | 3.35 |
| In denominations over $100,000 | 728,345 | 6,578 | 3.62 | 644,717 | 5,732 | 3.61 | 589,829 | 5,824 | 3.96 |
| Short-term borrowings | 47,286 | 468 | 3.97 | 182,423 | 1,783 | 3.96 | 33,297 | 398 | 4.79 |
| Long-term borrowings | 1,200 | 0 | 0.00 | 1,200 | 0 | 0.00 | 1,200 | 0 | 0.00 |
| Total interest bearing liabilities | $5,133,439 | $36,847 | 2.88% | $5,004,623 | $35,214 | 2.85% | $4,886,943 | $39,509 | 3.24% |
| Noninterest Bearing Liabilities | | | | | | | | | |
| Demand deposits | 1,227,721 | | | 1,234,539 | | | 1,244,058 | | |
| Other liabilities | 68,970 | | | 70,105 | | | 76,704 | | |
| Stockholders' Equity | 760,533 | | | 772,946 | | | 696,976 | | |
| Total liabilities and stockholders' equity | $7,190,663 | | | $7,082,213 | | | $6,904,681 | | |
| Interest Margin Recap | | | | | | | | | |
| Interest income/average earning assets | | 96,251 | 5.65% | | 93,092 | 5.61% | | 95,495 | 5.83% |
| Interest expense/average earning assets | | 36,847 | 2.16 | | 35,214 | 2.12 | | 39,509 | 2.41 |
| Net interest income and margin | | $59,404 | 3.49% | | $57,878 | 3.49% | | $55,986 | 3.42% |
(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 $1.10 million in the three-month periods ended June 30, 2026, and $1.11 million in the three-month periods ended March 31, 2026, and June 30, 2025.
(2)Loan fees, which are immaterial in relation to total taxable loan interest income for the three-month periods ended June 30, 2026, March 31, 2026, and June 30, 2025, 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 |
|---|
| June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 |
|---|
| Total Equity | $773,374 | $748,993 | $709,987 | $773,374 | $709,987 |
| 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 | 769,571 | 745,190 | 706,184 | 769,571 | 706,184 |
| Market Value Adjustment in AOCI | 123,959 | 135,106 | 160,574 | 123,959 | 160,574 |
| Adjusted Tangible Common Equity | 893,530 | 880,296 | 866,758 | 893,530 | 866,758 |
| Assets | $7,242,959 | $7,083,680 | $6,964,301 | $7,242,959 | $6,964,301 |
| 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 | 7,239,156 | 7,079,877 | 6,960,498 | 7,239,156 | 6,960,498 |
| Market Value Adjustment in AOCI | 123,959 | 135,106 | 160,574 | 123,959 | 160,574 |
| Adjusted Tangible Assets | 7,363,115 | 7,214,983 | 7,121,072 | 7,363,115 | 7,121,072 |
| Ending Common Shares Issued | 25,028,859 | 25,098,219 | 25,697,093 | 25,028,859 | 25,697,093 |
| Tangible Book Value Per Common Share | $30.75 | $29.69 | $27.48 | $30.75 | $27.48 |
| Tangible Common Equity/Tangible Assets | 10.63% | 10.53% | 10.15% | 10.63% | 10.15% |
| Adjusted Tangible Common Equity/Adjusted Tangible Assets | 12.14% | 12.20% | 12.17% | 12.14% | 12.17% |
| Net Interest Income | $58,301 | $56,773 | $54,876 | $115,074 | $107,751 |
| Plus: Noninterest Income | 12,572 | 12,933 | 11,486 | 25,505 | 22,414 |
| Minus: Noninterest Expense | (34,457) | (35,151) | (30,432) | (69,608) | (63,195) |
| Pretax Pre-Provision Earnings | $36,416 | $34,555 | $35,930 | $70,971 | $66,970 |
Contacts
(574) 267-9125 lisa.oneill@lakecitybank.com