Lakeland Financial Corporation · NASDAQ:LKFN
Lakeland Financial — Q3 2023 Earnings Presentation
64 slides from Lakeland Financial's earnings presentation, Oct 25, 2023
Slide 1: A Proven History of Shareholder Value Creation – 3rd Quarter 2023
Lakeland Financial Corporation A Proven History of Shareholder Value Creation And Commitment to Our Communities 3rd Quarter 2023 LKFN L I S T E D
Slide 2: Executive contacts
2 David M. Findlay Chief Executive Officer david.findlay@lakecitybank.com (574) 267‐9197 Kristin L. Pruitt President kristin.pruitt@lakecitybank.com (574) 371‐9220 Lisa M. O’Neill Executive Vice President & Chief Financial Officer lisa.oneill@lakecitybank.com (574) 267‐9125
Slide 3: Forward-Looking Information
3 Forward‐Looking Information This presentation 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. Forward‐looking statements are not historical facts a
Slide 4: Long Term Success for Shareholders
4 Long Term Success for Shareholders LTM ROE >13% Source: S&P Capital IQ Pro. Financial data is as of June 30, 2023. (1) Includes banks and thrifts traded on the NYSE, NYSEAM or NASDAQ as of 10/10/23; excludes merger targets. (2) Defined as having positive net income before extraordinary items and p
Slide 5: Strong Capital Structure
Tangible Common Equity 91.7% Allowance for Credit Losses 8.3% $3 0. 48 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 20 19 20 21 20 23 Tangible Book Value(1) Per Share 5 Strong Capital Structure Key Ratios an
Slide 6: Lake City Bank Today
6 Lake City Bank Today •A long‐term and consistent organic growth story •Headquartered in Warsaw, Indiana • 53 branch offices ‐ $6.4 billion banking assets ‐ $3.0 billion trust, retirement and investment brokerage assets • Focused on execution – “blocking and tackling” • Continued growth potential
Slide 7: Years of Organic Growth
7 32 Years of Organic Growth Record Net Income for 32 of 34 Years $2 ,7 07 $1 03 ,8 17 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 1
Slide 8: Established Market Presence
8 Established Market Presence Organic Growth Potential in Mature and Expanding Markets
Slide 9: Strong Regional and Statewide Economy
9. 5% 8. 4% 7. 2% 5. 7% 4. 2% 4. 1% 3. 7% 3. 4% 3. 0% 7. 5% 3. 3% 2. 9% 3. 6% 9. 4% 8. 4% 7. 3% 5. 9% 4. 5% 4. 4% 4. 0% 3. 6% 3. 2% 7. 2% 4. 0% 3. 2% 3. 7% 9. 1% 8. 2% 7. 3% 6. 3% 5. 2% 5. 0% 4. 5% 3. 9% 3. 8% 8. 5% 5. 3% 3. 8% 3. 9% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2011 August 2012 August 2013 Augus
Slide 10: Lake City Bank Balance Sheet Dynamics
10 Lake City Bank Balance Sheet Dynamics 1. Capital Strength 2. Diversified Deposit Composition 3. Liquidity Availability 4. Investment Securities Portfolio 5. Asset Liability Management
Slide 11: Fortress Balance Sheet in Excess of Regulatory Capital Requirements
11 Fortress Balance Sheet in Excess of Regulatory Capital Requirements LKFN Above Peer Long‐Term Profitability has Contributed to a Strong Capital Foundation 13.3% 15.1% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% Q4'10 Q4'11 Q4'12 Q4'13 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 Q4'19 Q4'20 Q4'21 Q4'22
Slide 12: Stable Deposit Base
12 Stable Deposit Base • Daily monitoring of liquidity position, large depositor fluctuation report, uninsured deposit balances, and significant daily balance fluctuations • Depositors greater than $10 million totaled $1.79 billion at March 6, 2023, and $2.10 billion on October 16, 2023, an increase
Slide 13: Deposit Composition Provides Diversification
13 Deposit Composition Provides Diversification Commercial Deposits Increase Share of Total Deposits Total Retail $1,761,235 31% Total Public Fund $1,563,557 28% Total Commercial $2,154,853 38% Brokered Deposits $177,430 3% September 30, 2023 Total Deposits ‐ $5.7 billion DDA $1,377,650 DDA % of Tot
Slide 14: Diversified Deposit Base
14 Diversified Deposit Base Deposits Are Not Concentrated to Any Industry or Client • Deposit composition has remained stable with commercial deposits increasing as a percent of total deposits • Lake City Bank had 127,108 deposit accounts at September 30, 2023. 124,380, or 98%, of those accounts are
Slide 15: Checking Account Trends by Deposit Sector
15 Checking Accounting Trends by Deposit Sector Commercial Accounts Grow by Double Digits since December 2019 $1 ,1 05 ,2 67 $1 ,9 32 ,8 75 $1 ,9 12 ,0 65 $2 ,0 20 ,8 47 $6 58 ,4 51 $9 94 ,3 55 $1 ,1 20 ,2 48 $9 00 ,3 11 $8 34 ,9 53 $1 ,2 25 ,4 13 $1 ,4 21 ,0 74 $1 ,2 54 ,3 40 $0 $500,000 $1,000,000
Slide 16: Liquidity Overview
16 Liquidity Overview • Available liquidity is stable $3.3 billion, up from $2.9 billion at June 30, 2023 • Sources of liquidity are varied and represent wholesale funding and brokered deposits • Brokered deposits represent 3% of total deposits • Noncore funding represented 5% of total deposits and
Slide 17: Liquidity Availability
Additional Loan Collateral Available for PledgeUnused/ AvailableUsed Liquidity Availability(000) Secured/Committed Borrowings: $ ‐‐$ 492,245$ 90,000$ 582,245Federal Home Loan Bank‐Indianapolis(1) 71,5161,291,010‐‐1,291,010Federal Reserve Bank Discount Window ‐‐153,280‐‐153,280FRB Bank Term Funding P
Slide 18: Investment Portfolio
18 Investment Portfolio Investment Portfolio as a Percent of Total Assets is Expected to Trend Lower Through Receipt of Cash Flows M V In ve st m en ts a s a % o f A ss et s Note: Ratio of total securities to total assets excludes PPP loans of $412 million in 2020, $26 million in 2021 and $2 million
Slide 19: Projected Impact of Rising/Falling Rates
19 Projected Impact of Rising/Falling Rates Asset Sensitive Balance Sheet ‐11.21% ‐7.02% ‐3.26% ‐1.58% ‐0.77% 0.61% 1.18% 2.30% 4.57% 6.83% ‐20.00% ‐15.00% ‐10.00% ‐5.00% 0.00% 5.00% 10.00% 15.00% NII ‐ Rates Dn 300 NII ‐ Rates Dn 200 NII ‐ Rates Dn 100 NII ‐ Rates Dn 50 NII ‐ Rates Dn 25 NII ‐ Rate
Slide 20: Evolution of Deposit and Loan Betas
20 Evolution of Deposit and Loan Betas Fed Tightening in 2022‐2023 Has Been More Aggressive Than Past Cycles • NIM expanded 102 basis points from 4Q21 through 4Q22 due to asset sensitive balance sheet and lagged deposit rate increases • Total cumulative deposit beta of 46% from March 2022 to Septemb
Slide 21: Interest Rate Sensitivity
21 Interest Rate Sensitivity Asset Sensitivity Attributable to Commercial Loan Portfolio Fixed Rate $1,554,244 36% Prime $1,174,398 27% SOFR $1,057,197 24% FHLB/Other $545,308 13% Commercial Loans $4.3 billion as of September 30, 2023 (000’s) • Cost of deposits increased due to deposit mix shift fro
Slide 22: Shareholder Value Strategy
22 Shareholder Value Strategy 1. Commercial Banking Focus 2. High Quality Team Members 3. Proven Organic Growth Experience 4. Focus on Core Deposit Funding 5. Commitment to Technology
Slide 23: Commercial Banking Focus
23 Commercial Banking Focus Experienced Relationship Driven Team • 41 credit “smart” commercial bankers • Average 24 years in banking & 13 years at Lake City Bank • We live where we lend • Face to face calling matters and is a team effort • We understand our clients’ needs • Deep organizational stru
Slide 24: Credit Process
24 Credit Process Commercial Banking Focus • Our credit discipline has never changed • We have a centralized committee structure • We are in‐market lender to in‐market clients • Character matters – we lend to people first • We focus on management/cash flow • Structure is important and is disciplined
Slide 25: Corporate Social Responsibility
25 Corporate Social Responsibility Over 150 Years of Focusing on Our Customers, Employees and Our Communities • Supporting our communities since 1872 • Caring for and building a diverse and inclusive team • Delivering loan and deposit products to our communities • Developing strong cybersecurity con
Slide 26: Lake City Bank Culture
26 Lake City Bank Culture High Quality Team Members • Our culture is our greatest asset and we will preserve it • Lake City University drives our culture • Diversity, Equity and Inclusion are ongoing initiatives that create a culture of belonging • Our community involvement is real and critical to o
Slide 27: Mature Market Deposit Performance
27 Mature1 Market Deposit Performance Organic Growth 2013 – 2023 $2,631 $2,419 $1,975 $483 $459 $417 $359 $221 ‐$300 ‐$1,472 ‐$2,000 ‐$1,500 ‐$1,000 ‐$500 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 1st Source Lake City Bank JPM Chase PN C Star First M erchants Fifth Third O ld N ational KeyBank Flag
Slide 28: Indianapolis Market Opportunity
28 Organic Growth Indianapolis Market Opportunity Share of MarketIndianapolis Market Banks 20%1. JPM Chase 16%2. Merchants Bank 13%3. PNC 9%4. Fifth Third 7%5. Huntington National 5%6. Bank of America 5%7. First Internet Bank 5%8. BMO Harris 3%9. National Bank of Indy 3%10. First Merchants 1%16. Lak
Slide 29: A Strong Environment for Growth and Expansion
29 A Strong Environment for Growth and Expansion • Indiana #1 manufacturing state in the country(1) • Manufacturing jobs decreased slightly by 0.6% from 543,600 to 540,600 from August ‘22 to August ‘23(2) • Indiana unemployment at 3.4% as of August 2023(3) • Indiana ranked 14 in CNBC’s “America’s To
Slide 30: Commitment to Technology
30 Commitment to Technology Innovation and Competitive Technology is a Focus • Fintech partnerships play a significant role in our technology stack and enable delivery of innovative solutions to our customers • Investments in Lake City Bank Digital, a Q2 product implemented in 2021 with ongoing func
Slide 31: Channel Utilization over Three-year Horizon
31 Channel Utilization over Three‐year Horizon Number of Bank Transactions Increase by 7% Over Three Years Three Year Change % of Total Total Transactions 2023(1) % of Total Total Transactions 2020(1) Channel Type 0%15%2,064,61716%2,073,708Branch Transactions (9)%6%815,3667%891,756ATM/ITM (35)%23%3,
Slide 32: Customer Composition and Digital Adoption
32 Customer Composition and Digital Adoption Digital Platform Upgrade in March of 2021 Positively Impacting Digital Adoption Across All Generations Customer Composition and Digital Adoption Over Three Years 9/30/219/30/229/30/23 Customer Breakdown Generation 41%49%53%17%Gen Z (1996 ‐ Current) 51%57%
Slide 33: Financial Performance
Financial Performance
Slide 34: Income Performance Metrics
34 Income Performance Metrics LKFN Performance Exceeds National Peers and Contributes to Strong Capital Levels 1.69% 1.76% 1.55% 1.56% 1.62% 1.33% 16.51% 15.47% 13.51% 14.19% 17.40% 14.44% 16.64% 15.57% 13.59% 14.27% 17.52% 14.53% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 0.
Slide 35: Net Income and EPS
35 Net Income and EPS Core Operational Profitability Declines by 2% in 2023 $80,411 $87,047 $84,337 $95,733 $103,817 $77,840 $64,141 $76,356 $3.13 $3.38 $3.30 $3.74 $4.04 $3.03 $2.49 $2.97 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $0 $20,000 $40,000 $60,000 $80,000 $100,000 2018 2019 202
Slide 36: Pretax Pre-Provision Earnings
36 Pretax Pre‐Provision Earnings Core Pretax Pre‐Provision Earnings Improve by 1% $105,344 $110,620 $118,646 $118,521 $134,539 $94,617 $79,821 $96,029 2.21% 2.24% 2.19% 1.93% 2.09% 1.96% 1.66% 1.99% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,0
Slide 37: Average Loans
37 Average Loans Average YTD Loan Growth of $410 million or 9% Compared to Prior Year 94% 94% 95% 83% 77% 87% 50% 60% 70% 80% 90% 100% 110% 120% $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 2018 2019 2020 (1) 2021 (1) 2022 (1) YTD 202
Slide 38: Line of Credit Utilization
$1 ,6 64 $1 ,6 96 $1 ,6 16 $1 ,6 69 $1 ,6 30 $1 ,5 93 $1 ,6 37 $1 ,4 73 $1 ,4 46 $1 ,4 99 $1 ,4 10 $1 ,4 94 $1 ,5 53 $1 ,6 90 $1 ,7 46 $1 ,8 05 $1 ,8 24 $1 ,9 66 $1 ,8 85 $1 ,8 88 $1 ,8 07 $1 ,8 06 $1 ,7 37 $1 ,7 97 $1 ,7 38 $1 ,7 85 $1 ,8 35 $1 ,7 85 $2 ,0 66 $2 ,1 09 $2 ,0 44 $2 ,1 90 $2 ,2 06 $2
Slide 39: Line of Credit Utilization vs. Commercial DDA
39 Line of Credit Utilization vs. Commercial DDA Commercial DDA Deposit Balances Normalize in 2023 $3 89 ,0 51 $4 67 ,4 58 $5 72 ,9 66 $6 60 ,3 60 $7 40 ,5 76 $6 84 ,5 11 $6 89 ,4 50 $7 30 ,3 73 $7 75 ,9 47 $7 61 ,6 86 $7 72 ,9 95 $8 49 ,0 92 $8 14 ,4 30 $8 83 ,9 56 $1 ,2 16 ,4 14 $1 ,2 18 ,9 43 $1
Slide 40: Loan Portfolio Breakdown
40 Loan Portfolio Breakdown C&I Drives Lending Business Commercial & Industrial $1,402,220 29% Commercial RE ‐ Owner Occupied $811,175 17% Commercial RE ‐ Nonowner Occupied $740,783 15% Commercial RE ‐Multifamily $236,581 5% Commercial RE ‐ Construction $633,920 13% Agri‐business ‐ Agriculture $380,
Slide 41: Top 10 Industry Concentrations
Multifamily Housing $511,204 10% Agriculture $419,487 9% Industrial Warehouses $195,671 4% RV Industry $189,552 4% Senior Living $156,496 3% Lessors of Nonresidential Buildings $130,402 3% Automobile Dealers $116,794 2% Nonbank Lenders $110,029 2% Misc. Durable Goods Merchant Wholesalers $105,206 2%
Slide 42: Average Deposits
42 Average Deposits Pandemic’s Deposit Surge Abates in 2023 $4,093,894 $4,242,524 $4,650,597 $5,357,284 $5,717,358 $5,537,379 97% 98% 98% 99% 100% 96% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 150% $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2018 2019 2020 2021 2022 YTD 2
Slide 43: Deposit Breakdown
43 Deposit Breakdown Deposit Costs Rise in Response to Interest Rate Environment and Increased Competition Total Retail $1,761,235 31% Total Public Fund $1,563,557 28% Total Commercial $2,154,853 38% Brokered Deposits $177,430 3% September 30, 2023 Total Deposits ‐ $5.7 billion (000’s) 1.19%0.98% 0.
Slide 44: Public Fund Deposit Trends
‐$100,000 $100,000 $300,000 $500,000 $700,000 $900,000 $1,100,000 $1,300,000 $1,500,000 $1,700,000 M ar ‐1 7 Ju n‐ 17 Se p‐ 17 De c‐ 17 M ar ‐1 8 Ju n‐ 18 Se p‐ 18 De c‐ 18 M ar ‐1 9 Ju n‐ 19 Se p‐ 19 De c‐ 19 M ar ‐2 0 Ju n‐ 20 Se p‐ 20 De c‐ 20 M ar ‐2 1 Ju n‐ 21 Se p‐ 21 De c‐ 21 M ar ‐2 2 Ju n‐
Slide 45: Net Interest Income
45 Net Interest Income Year‐to‐date Net Interest Margin Improvement in 2023 $151,271 $155,047 $163,008 $178,088 $202,887 $146,050 $148,436 3.43% 3.38% 3.19% 3.07% 3.40% 3.25% 3.33% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% $0 $50,000 $100,000 $150,000 $200,000 $250,000 2018 2019 2020 2021 2022 YTD 2022 YT
Slide 46: Asset Quality: Watchlist Loans
46 Asset Quality Watchlist Loans as a Percentage of Total Loans Remain at Historic Lows 1. 52 % 2. 15 % 2. 75 % 1. 37 % 0. 94 % 0. 50 % 0. 42 % 0. 19 % 0. 25 % 0. 19 % 0. 46 % 0. 26 % 0. 35 % 0. 36 % 0. 33 % 1. 22 % 1. 82 % 2. 20 % 1. 75 % 1. 31 % 0. 41 % 0. 35 % 0. 16 % 0. 20 % 0. 16 % 0. 38 % 0. 2
Slide 47: Asset Quality: Allowance for Credit Losses
47 Asset Quality Allowance for Credit Losses Represents Strong Coverage 0. 42 % 0. 54 % 0. 25 % 0. 20 % 0. 11 % 0. 10 % 0. 09 % 0. 03 % ‐0 .0 1% 0. 13 % 0. 03 % 0. 09 % 0. 09 % 0. 10 % 0. 17 % 1.59% 2.15% 2.39% 2.28% 1.92% 1.67% 1.42% 1.26% 1.23% 1.24% 1.25% 1.45% 1.59% 1.54% 1.48% 0.00% 0.30% 0.60%
Slide 48: Noninterest Income
48 Noninterest Income Noninterest Income as a Percentage of Total Revenue Stable at 18% $40,302 $44,997 $46,843 $44,720 $41,862 $31,343 $32,650 21% 22% 22% 20% 17% 18% 18% 0% 10% 20% 30% 40% 50% 60% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 2018 2019 2020 2021
Slide 49: Total Revenue
49 2023 YOY Increase 2% Total Revenue Revenue Growth Benefited by Loan Growth and Improvement in Noninterest Income $191,573 $200,044 $209,851 $222,808 $244,749 $177,393 $181,086 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2018 2019 2020 2021 2022 YTD 2022 YTD 2023 (000’s)
Slide 50: Non-Interest Expense
50 Non‐Interest Expense $86,229 $89,424 $91,205 $104,287 $110,210 $82,776 $101,265 $85,057 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2018 2019 2020 2021 2022 YTD 2022 YTD 2023 YTD 2023 Adj. (1) (000’s) 2023 YOY Increase 22% 2023 Core Noninterest Expense YOY Increase 3% 12023 Year to date
Slide 51: Efficiency Ratio
51 Efficiency Ratio Adjusted Core Efficiency Ratio of 47% Excludes Impact of Wire Fraud Loss 51% 52% 50% 50% 48% 46% 45% 45% 43% 47% 45% 56% 47% 0% 10% 20% 30% 40% 50% 60% 70% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD 2023 Efficiency Ratio Adjusted Core Efficiency Ratio Constant inv
Slide 52: Stable Healthy Dividend
52 Stable Healthy Dividend Growth in Dividend Reflects Strength of Capital $1.00 $1.16 $1.20 $1.36 $1.60 $1.20 $1.38 2.25% 2.40% 2.24% 1.70% 2.19% 2.20% 3.88% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% $0.10 $0.30 $0.50 $0.70 $0.90 $1.10 $1.30 $1.50 $1.70 2018 2019 2020 2021 2022 YTD 2022
Slide 53: LKFN Shareholder Value Total Return Performance
53 LKFN Shareholder Value Total Return Performance from 12/31/00 to 9/30/23 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 LKFN S&P 500 S&P 500 Financials S&P US BMI Banks Index 3,500.00 3,000.00 2,500.00 2,00
Slide 54: Investment Highlights
54 Investment Highlights • Proven History of Organic Growth •Disciplined and Focused Strategy • Strong Internal Culture • Consistent Execution • Service Excellence Drives Shareholder Value
Slide 55: Supplemental Information
Supplemental Information
Slide 56: Lake City Bank Capital Adequacy
56 Lake City Bank Capital Adequacy Capital Strength Continues in September 2023 Non‐GAAP Adjusted Capital Ratios with AOCI and HTM Losses Non‐GAAP Excess Capital after AOCI and HTM Non‐GAAP AOCI and HTM Losses‐ after tax Capital Cushion (in 000’s) Well‐ Capitalized Threshold September 30, 2023 Actua
Slide 57: Lake City Bank Uninsured Deposits
57 Lake City Bank Uninsured Deposits Public Funds Account for 28% of Total Uninsured Deposits $1 ,1 35 $1 ,3 34 $1 ,6 25 $1 ,9 96 $1 ,9 91 $2 ,0 17 $2 ,0 68 $2 ,7 40 $3 ,2 58 $3 ,0 69 $2 ,9 76 $2 ,9 64 $2 ,9 55 $2 ,9 72 $3 ,1 86 $2 ,9 19 $3 ,0 93 $3 ,1 78 $3 ,0 80 56% 54% 54% 54% 30% 29% 28% 28% 0%
Slide 58: Investment Securities Overview
Investment Securities Overview Excess Liquidity Deployed to Investment Security Portfolio • Excess liquidity of $1 billion deployed to investment portfolio during 2020‐2022 • Investment portfolio longer duration offsets shorter duration of loan portfolio for interest rate risk management • The inves
Slide 59: Investment Portfolio Analysis
Investment Portfolio Analysis Investment Portfolio Declines as a Percentage of Total Assets in 2023 59 12/31/20229/30/2023 % of Total Market Value Weighted Maturity % of Total Market Value Weighted Maturity 9%114,3555.979%97,2376.26US Govt REMICS 29%377,9537.3431%332,4257.35US Govt Pools 10%126,9618
Slide 60: Investment Security Portfolio Cashflows
60 Investment Security Portfolio Cashflows Cash Flows of $353 million Expected Through June 2027 17 ,4 17 ,2 19 15 ,5 96 ,1 22 16 ,9 18 ,4 87 16 ,6 57 ,0 25 16 ,2 35 ,3 56 14 ,3 95 ,7 73 15 ,6 94 ,5 52 16 ,1 94 ,5 68 15 ,2 97 ,8 27 14 ,3 01 ,2 65 14 ,9 18 ,6 12 19 ,6 80 ,8 25 14 ,1 73 ,4 34 13 ,4 31
Slide 61: Commercial Loans by County
61 Commercial Loans by County Commercial Customers in 46 Indiana Counties and 22 Other States (1) All other counties individually represent less than 2% of total September 30, 2023 (000’s) Allen 18% Elkhart 14%St. Joseph 9% Kosciusko 10% Hamilton 8% Marion 14% Marshall 4% Other IN Counties (1) 17% O
Slide 62: Larger Market Organic Expansion
62 Larger Market Organic Expansion Organic Growth # of Branches LCB Deposit Market Share** LCB EntryPopulation*Primary CityCounty State Rank 1264%187280,826WarsawKosciusko 21. 1123%1990206,890ElkhartElkhart6. 48%1997272,234South BendSt. Joseph5. 512%1999391,449Fort WayneAllen3. 71%20111,500,169India
Slide 63: Mature Market Strength and Growth
63 Mature Market Strength and Growth Organic Growth 2023 # of Offices 20132023 (millions)1 IncreaseShareDepositsShareDeposits 53100.15%14.33%$2,62719.69%$5,2581. 1st Source 53101.42%13.14%$2,40918.08%$4,8282. Lake City Bank 20117.84%9.14%$1,67613.68%$3,6513. JPM Chase 1739.88%6.60%$1,2116.34%$1,6944
Slide 64: Lake City Bank
5 Qiake City Bank LAKECITYBANK.COM