Lakeland Financial Corporation (LKFN) Q3 2025 Financial Results Summary

Release Date: The financial results for the third quarter of 2025 were released on September 30, 2025.

Financial Summary

• Net Income:
• Q3 2025 net income was $4.04 per diluted share, marking a 6% increase year-over-year.

• Net income totaled $103.8 million, enhancing 6% from Q3 2024.

• Earnings Metrics:

• Return on Average Assets (ROAA): 1.62%, up from 1.56% in Q3 2024.

• Return on Average Equity (ROAE): 17.40%, an increase from 14.19% a year prior.

• Net Interest Income:

• Achieved $196.7 million, reflecting a 13% growth year-over-year.

• Net Interest Margin (NIM):

• Expanded to 3.44% in Q3 2025, up from 3.16% in Q3 2024.

• Linked quarter NIM increased by 8 basis points compared to Q2 2025.

• Average Loans:

• Increased by 4% annually to $5.23 billion, contributing to the growth in net interest income.

• Average Deposits:

• Totaled $6.0 billion, representing a 4% increase year-on-year.

• Dividend Declared:

• The company declared a quarterly dividend of $0.46 per share.

• Loan Portfolio:

• 88% of the loan portfolio consists of commercial loans.

• Commercial & Industrial loans amounted to $1.52 billion (29% of total loans).

• Cost of Deposits:

• The cost of funds reduced significantly from 2.90% in Q2 2024 to 2.37% in Q3 2025.

• Dividend Yield:

• The yield for investors is documented at 2.79% compared to 2.19% in Q3 2024, an increase of 4% annually in dividend per share.

• Non-Interest Income:

• Contributed $56.8 million in Q3 2025, experiencing a 21% decrease due to the impacts of non-core income.

• Efficiency Ratio:

• Remained stable at 49%, reflecting effective cost management in operations.

• Credit Quality:

• Nonperforming loans repositioned to a healthy 0.25% of total loans, signaling improved asset quality.

• The allowance for credit losses accounted for 2.15%, aligning with historical norms.

• Tangible Common Equity Ratio:

• Registered at 10.79%, indicating a robust capital structure.

• Key Ratios:

• Leverage Ratio stood at 12.56% and Total Risk-Based Capital Ratio at 16.22%.

• Share Repurchase Program:

• No share repurchase program was mentioned in the report.

Key Highlights

• Long-Term Success for Shareholders:
• Recent performance illustrates a comprehensive commitment to consistent growth, underpinned by significant organic expansion.

• The return on tangible equity exceeds 13%, indicative of effective capital management.

• Community Presence:

• Lake City Bank holds an extensive market reach with 55 branches across Indiana and over $6.9 billion in assets.

• Investments in technology signify the company’s forward-thinking strategy aimed at enhancing customer engagement.

• Positive Market Outlook:

• Indiana’s robust economic environment affords Lake City Bank advantageous conditions for growth, with anticipated population increases contributing to demand for banking services.

In conclusion, Lakeland Financial Corporation’s Q3 2025 results manifest a strong operational performance with notable growth metrics, robust returns for shareholders, and enhanced credit quality, positioning the bank favorably within the evolving financial landscape.

Income Statement Table (CONDENSED CONSOLIDATED STATEMENTS OF INCOME)

Balance Sheet Table (CONDENSED CONSOLIDATED BALANCE SHEETS)