LKFN

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Lakeland Financial (LKFN) recently reported second quarter 2026 results that combined higher net interest income and net income with much lower net charge offs, a mix that can reshape how investors view the stock. See our latest analysis for Lakeland Financial. The recent earnings and buyback activity sit against a share price of $62.31, with a year to date share price return of 10.36% and a 3 year total shareholder return of 22.71%. This suggests momentum has been building over a longer horizon despite a more muted 1 year total shareholder return of 7.01%. If Lakeland Financial's mix of earnings growth and improving credit quality has your attention, this can be a good moment to widen your search and check out our screener of 20 top founder-led companies The share price has already climbed on stronger earnings and cleaner credit. The real question now is whether most of Lakeland Financial’s upside has already played out or if the current valuation still leaves meaningful room ahead. The current P/E of 13.9x for Lakeland Financial sits in a middle ground. It is slightly below close peers yet above the broader US banks industry. The P/E ratio compares the company’s share price to its earnings per share. For a bank such as Lakeland Financial, this helps you see how much the market is paying for each dollar of profit, given its earnings profile and credit quality. Based on the statements, Lakeland Financial screens as good value against its direct peer group, with a P/E of 13.9x compared to a peer average of 14.7x. However, the same 13.9x looks richer when set against the wider US banks industry on 12.1x and also against an estimated fair P/E of 11x. That fair ratio level is where the valuation could eventually gravitate if sentiment or growth expectations cool from here. Explore the SWS fair ratio for Lakeland Financial Result: Price-to-Earnings of 13.9x (ABOUT RIGHT) However, Lakeland Financial’s story can change quickly if credit costs rise again, or if loan demand and fee income soften from current levels. Find out about the key risks to this Lakeland Financial narrative. The P/E of 13.9x suggests Lakeland Financial is roughly in line with peers, yet the SWS DCF model points the other way. With an estimated future cash flow value of $97.23 per share versus a $62.31 price, the stock screens as materially undervalued. Which lens do you trust more? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Lakeland Financial for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. The balance of risks and rewards around Lakeland Financial may look finely poised to you right now. This is a useful moment to review the underlying data, stress test your own assumptions, and then weigh the 3 key rewards and 1 important warning sign. If Lakeland Financial has sharpened your focus on quality, now is the moment to broaden your watchlist. Do not let other compelling opportunities pass you by. Spot potential value opportunities early and review 51 high quality undervalued stocks that combine solid fundamentals with room for a better price story. Strengthen the defensive side of your portfolio and scan 78 resilient stocks with low risk scores that aim to keep volatility in check when markets turn. Hunt for quality that is still off most radars and sift through our screener containing 19 high quality undiscovered gems before wider attention moves the needle. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LKFN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

WARSAW, Ind., July 27, 2026 (GLOBE NEWSWIRE) -- 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. 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. 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. 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). ContactLisa M. O’NeillExecutive Vice President and Chief Financial Officer (574) [email protected]

Lakeland Financial Corporation (NASDAQ:LKFN) reported second-quarter results that exceeded earnings expectations but delivered revenue below Wall Street forecasts, as the regional bank continued to benefit from loan growth and a stronger net interest margin. The company posted adjusted earnings per share of $1.13, topping analysts’ consensus estimate of $1.08. Revenue totaled $70.9 million, missing the expected $72.25 million. Shares were little changed in after-hours trading following the earnings announcement. Net income increased 5% year over year to $28.4 million, while total revenue rose 7% from $66.4 million in the second quarter of 2025. Average loans climbed 6% to $5.53 billion, driven by a 10% increase in commercial and industrial lending and 16% growth in consumer loans compared with the same period last year. “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.” Net interest margin improved to 3.49%, up from 3.42% a year earlier, as a 25-basis-point decline in funding costs more than offset an 18-basis-point reduction in earning asset yields. Net interest income rose $3.4 million, or 6%, to $58.3 million. Lakeland Financial reported total deposits of $6.33 billion, an increase of 2% from the prior year. Core deposits accounted for 95% of the deposit base. Public funds deposits grew 7% to $2.15 billion, while commercial deposits declined 6% to $2.11 billion. The provision for credit losses fell to $1.7 million from $3.0 million in the prior-year quarter. Net charge-offs remained minimal at just $24,000, while nonperforming assets declined 36% year over year to $20.0 million, highlighting continued strength in asset quality. Noninterest income advanced 9% to $12.6 million, supported by a 13% increase in wealth advisory fees and a 55% jump in income from bank-owned life insurance. Noninterest expenses increased 13% to $34.5 million, primarily reflecting higher salary and employee benefit costs. The company’s efficiency ratio rose to 48.6% from 45.9% in the same quarter last year. During the quarter, Lakeland Financial repurchased 70,873 shares at a weighted average price of $58.20 and raised its quarterly dividend by 4% to $0.52 per share, up from $0.50 a year earlier. Lakeland Financial Corporation stock price

Regional banking company Lakeland Financial (NASDAQGS:LKFN) missed Wall Street’s revenue expectations in Q2 CY2026, but sales rose 5% year on year to $70.87 million. Its GAAP profit of $1.13 per share was 5.1% above analysts’ consensus estimates. Is now the time to buy Lake City Bank? Find out in our full research report. Net Interest Income: $58.3 million vs analyst estimates of $59.47 million (6.2% year-on-year growth, 2% miss) Net Interest Margin: 3.5% vs analyst estimates of 3.5% (in line) Revenue: $70.87 million vs analyst estimates of $72.12 million (5% year-on-year growth, 1.7% miss) Efficiency Ratio: 48.6% vs analyst estimates of 48.1% (54.5 basis point miss) EPS (GAAP): $1.13 vs analyst estimates of $1.08 (5.1% beat) Tangible Book Value per Share: $30.90 vs analyst estimates of $30.25 (11.9% year-on-year growth, 2.1% beat) Market Capitalization: $1.52 billion “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. Dating back to 1872 and deeply rooted in Indiana's communities, Lakeland Financial Corporation (NASDAQ:LKFN) operates Lake City Bank, providing commercial and consumer banking services throughout Northern and Central Indiana. Net interest income and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Unfortunately, Lake City Bank’s 4.9% annualized revenue growth over the last five years was sluggish. This was below our standard for the banking sector and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Lake City Bank’s annualized revenue growth of 8% over the last two years is above its five-year trend, which is encouraging. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Lake City Bank’s revenue grew by 5% year on year to $70.87 million, missing Wall Street’s estimates. Net interest income made up 80.3% of the company’s total revenue during the last five years, meaning Lake City Bank barely relies on non-interest income to drive its overall growth. Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams. ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE. Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability. This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules. Lake City Bank’s TBVPS grew at a tepid 3.1% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 10.1% annually over the last two years from $25.47 to $30.90 per share. Over the next 12 months, Consensus estimates call for Lake City Bank’s TBVPS to grow by 7.1% to $33.09, lousy growth rate. It was encouraging to see Lake City Bank beat analysts’ EPS and tangible book value per share expectations this quarter. On the other hand, its net interest income missed and its revenue fell short of Wall Street’s estimates. Overall, this quarter was mixed. The stock remained flat at $61.11 immediately after reporting. Big picture, is Lake City Bank a buy here and now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

Lakeland Financial (LKFN) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $1.07 per share. This compares to earnings of $1.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.61%. A quarter ago, it was expected that this holding company for Lake City Bank would post earnings of $1.01 per share when it actually produced earnings of $1.04, delivering a surprise of +2.97%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Lakeland Financial, which belongs to the Zacks Banks - Midwest industry, posted revenues of $70.87 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.10%. This compares to year-ago revenues of $66.36 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Lakeland Financial shares have added about 7.1% since the beginning of the year versus the S&P 500's gain of 8.3%. While Lakeland Financial has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Lakeland Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.06 on $71.9 million in revenues for the coming quarter and $4.30 on $284.6 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Ames National (ATLO), another stock in the same industry, has yet to report results for the quarter ended June 2026. This bank is expected to post quarterly earnings of $0.65 per share in its upcoming report, which represents a year-over-year change of +27.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Ames National's revenues are expected to be $18.6 million, up 15.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lakeland Financial Corporation (LKFN) : Free Stock Analysis Report Ames National Corporation (ATLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Lakeland Financial Corporation reported past first-quarter 2026 results with net interest income of US$56.77 million and net income of US$26.48 million, alongside basic and diluted earnings per share from continuing operations of US$1.04, while also recording higher net charge offs of US$2.08 million. Over the same period, the company completed a share repurchase program totaling 674,743 shares, or 2.66% of its stock, for US$38.81 million, signaling continued capital return to shareholders even as credit costs rose. Next, we’ll examine how the stronger earnings alongside increased net charge offs shape Lakeland Financial’s current investment narrative for investors. Capitalize on the AI infrastructure supercycle with our selection of the 38 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. To own Lakeland Financial, you really need to be comfortable with a slower‑growing regional bank that leans on consistent profitability, disciplined capital returns and a long dividend track record rather than rapid expansion. The latest quarter reinforces that trade‑off: stronger net interest income and higher earnings came alongside a jump in net charge offs, which raises questions about whether credit costs could become a bigger swing factor in the near term. At the same time, management finished a sizeable buyback and maintained a higher dividend, signaling confidence in the balance sheet and earnings power despite rising credit losses. Given the relatively muted share price reaction and prior analysis that already framed growth as modest, the main near‑term catalyst now is how effectively the new Chief Credit Officer manages asset quality from here. However, rising credit losses could quietly reshape the risk profile that shareholders thought they understood. Despite retreating, Lakeland Financial's shares might still be trading 39% above their fair value. Discover the potential downside here. The Simply Wall St Community currently has 1 fair value estimate clustered around US$99.92, suggesting some retail investors see very large upside. Others may focus more on rising charge offs and slower forecast growth, so it is worth weighing how these different views could affect expectations for Lakeland Financial’s returns and risk profile over time. Explore another fair value estimate on Lakeland Financial - why the stock might be worth just $99.92! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Lakeland Financial research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Lakeland Financial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lakeland Financial's overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: Outshine the giants: these 19 early-stage AI stocks could fund your retirement. The future of work is here. Discover the 34 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. AI is about to change healthcare. These 33 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LKFN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Lakeland Financial (LKFN) came out with quarterly earnings of $1.04 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.97%. A quarter ago, it was expected that this holding company for Lake City Bank would post earnings of $1.05 per share when it actually produced earnings of $1.16, delivering a surprise of +10.48%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Lakeland Financial, which belongs to the Zacks Banks - Midwest industry, posted revenues of $69.71 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.18%. This compares to year-ago revenues of $63.8 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Lakeland Financial shares have added about 4.6% since the beginning of the year versus the S&P 500's gain of 4.7%. While Lakeland Financial has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Lakeland Financial was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.04 on $69.9 million in revenues for the coming quarter and $4.20 on $282.8 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. First Busey (BUSE), another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 28. This bank holding company is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. First Busey's revenues are expected to be $197.16 million, up 57.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lakeland Financial Corporation (LKFN) : Free Stock Analysis Report First Busey Corporation (BUSE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research