Lakeland Financial Corporation · NASDAQ:LKFN
Lakeland Financial — Q3 2025 Earnings Presentation
62 slides from Lakeland Financial's earnings presentation, 2025
Slide 1: A Proven History of Shareholder Value Creation
Lakeland Financial Corporation A Proven History of Shareholder Value Creation And Commitment to Our Communities 3rd Quarter 2025 LKFN LISTED
Slide 2: Executive contacts
David M. Findlay Chairman & 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 2
Slide 3: Forward-Looking Information
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 and
Slide 4: Long Term Success for Shareholders
Long Term Success for Shareholders 5 Institutions (including LKFN) LTM ROE >13% LTM ROE >13% 20-Year TBVPS 13 Institutions CAGR >8%(3) 141 Institutions Profitable for the Last 10 Years(2) 183 Institutions Exchange Traded Depositories with Assets Between $1B and $10B(1) Source: S&P Capital IQ Pro. Fi
Slide 5: Strong Capital Structure
Strong Capital Structure Tangible Book Value(1) Per Share Allowance for Credit Losses $34.39* $40.00 7.2% $35.00 Tangible Common $30.00 Equity 92.8% $25.00 $20.00 Key Ratios and Per Share Data as of September 30, 2025 $15.00 TCE/Tangible Assets 10.79% $10.00 Adj. TCE/Adj. Tangible Assets 12.57% Tota
Slide 6: Lake City Bank Today
Lake City Bank Today • An entrepreneurial 153-year-old de novo bank • A long-term and consistent organic growth story • Headquartered in Warsaw, Indiana • 55 branch offices - $6.9 billion banking assets • $3.6 billion in Wealth Advisory assets • A forward-thinking technology adopter • Focused on exe
Slide 7: 34 Years of Organic Growth
34 Years of Organic Growth A History of Balance Sheet and Income Statement Expansion (000’s) $120,000 $93,478 Compound Annual Growth 1991 – 2024 $100,000 • Loans = 10% • Deposits = 10% $80,000 • Net Income = 11% • Earnings Per Share = 11% $60,000 $40,000 $2,707 $20,000 $0 2000 2004 2019 1991 1992 19
Slide 8: Established Market Presence
Established Market Presence Organic Growth Potential in Mature and Expanding Markets 8
Slide 9: Projected Population Growth Should Create Economic Expansion
Projected Population Growth Should Create Economic Expansion • 67% of Lake City Bank counties are growth and high growth counties • 40% of Lake City Bank counties are high growth counties • Indiana is poised to experience continued economic strength and vitality 9
Slide 10: Indiana Is Poised For Continued Economic Growth
Indiana Is Poised For Continued Economic Growth • Indiana #1 manufacturing state in the country(1) • Indiana hosted a semiconductor event in 2025. The state has attracted seven new semiconductor companies, secured a federal tech hub designation for microelectronics and broken ground on a new, 10-acr
Slide 11: Strong Regional and Statewide Economy
Strong Regional and Statewide Economy Unemployment Rate In The Lake City Bank Footprint Is Lower Than The National Average 12.0% 10.0% 8.0% 8.5% Unemployment 8.2% 7.3% 6.0% 6.3% 8.4% 7.3% 7.2% 5.3% 5.2% 5.0% 5.9% 4.0% 4.5% 4.5% 4.4% 4.5% 4.5% 4.4% 3.9% 3.9% 3.8% 3.8% 4.0% 4.0% 3.8% 3.6% 8.4% 7.2% 5.
Slide 12: Fortress Balance Sheet
Fortress Balance Sheet LKFN Above Peer Long-Term Profitability has Contributed to a Strong Capital Foundation Proxy Peer Average 18.0% RBC Q2’25 15.1% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% Well Capitalized Threshold 10.0% for Consolidated Risk-Based Capital 10.0% 9.0% 8.0% Q4'10 Q4'11 Q4'12 Q4'1
Slide 13: Net Interest Margin by Quarter
Net Interest Margin by Quarter NIM Expansion of 34 Basis Points Over Last Twelve Months 3.50% 3.50% 3.40% 3.42% 3.25% 3.16% 3.00% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Quarterly NIM 13
Slide 14: Net Interest Margin
Net Interest Margin Deposit Costs Coming Down Rapidly • Linked quarter net interest margin expanded by 8 basis points in 3Q25 compared to 2Q25 • Cumulative Loan Beta 20% for recent easing cycle • Cumulative Deposit Beta 43% for recent easing cycle • Deposit repricing in current easing cycle continue
Slide 15: Interest Rate Sensitivity
Interest Rate Sensitivity Deposits Have Repriced Quicker Than Loans During Current Easing Cycle • 88% of loan portfolio consists of commercial loans and 67% of FHLB/Other $604,684 commercial loans are tied to variable 13% interest rates Fixed Rate • Approximately $710.5 million of fixed SOFR $1,538,
Slide 16: Projected Impact of Rising/Falling Rates
Projected Impact of Rising/Falling Rates Asset Sensitive Balance Sheet Maintains Neutral Shift 4.00% 2.00% 0.05% 0.06% 0.04% 0.00% -0.07% -0.05% -0.18% -0.23% -0.61% -2.00% -1.75% -3.41% -4.00% Dn 300 Dn 200 Dn 100 Dn 50 Dn 25 Up 25 Up 50 Up 100 Up 200 Up 300 Graph presents 12 month projected net in
Slide 17: Deposit Composition Provides Diversification
Deposit Composition Provides Diversification Core Deposit Growth Consistently Funds Loan Growth Brokered Deposits $175,647 3% Total Retail Total $1,724,983 Commercial 29% $2,288,701 38% Total Public Fund $1,834,987 30% September 30, 2025 Total Deposits - $6.0 billion DDA $1,268,241 DDA % of Total De
Slide 18: Diversified Deposit Base
Diversified Deposit Base Deposit Franchise Consists of Broad-based and Deep Relationships • Deposit composition is stable with growth in all three deposit segments • 98% of deposit accounts are less than $250,000 at September 30, 2025 • Public Funds in Indiana are covered by the Public Deposit Insur
Slide 19: Public Fund Deposit Trends
Public Fund Deposit Trends 86% of Large Public Fund Deposits are Operating Relationships (000) $2,000,000 $1,834,987 $1,809,631 $1,563,015 $1,429,873 $1,500,000 $1,284,641 $1,162,457 $1,127,111 $1,000,000 $500,000 $0 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Sep-25 Checking and MMA CDs 19
Slide 20: Checking Account Trends by Deposit Sector
Checking Accounting Trends by Deposit Sector Commercial Accounts Grow by 23% since December 2019 (000) Checking Account Average Balances $2,500,000 by Deposit Type (000) Public Commercial Retail Funds 09/30/25 $134 $15 $6,281 $2,134,129 $2,129,952 $2,000,000 $2,105,411 12/31/24 $136 $16 $6,209 $1,95
Slide 21: Shareholder Value Strategy
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 21
Slide 22: Commercial Banking Focus
Commercial Banking Focus Experienced Relationship Driven Team • 47 credit “smart” commercial bankers • Average 23 years in banking & 13 years at Lake City Bank • We live where we lend • Face to face calling matters and is a team effort • Deep organizational structure provides credit and administrati
Slide 23: Credit Process
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 24: Corporate Social Responsibility
Corporate Social Responsibility Over 153 Years of Focusing on Our Customers, Employees and Our Communities • Supporting our communities since 1872 • Focusing on continued, positive corporate stewardship • Caring for and building a diverse and inclusive team • Delivering customer-focused loan and dep
Slide 25: Lake City Bank Culture
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 • Our community involvement is real and critical to our strategy • Inclusion initiatives continue and create a culture of belonging • Our culture has
Slide 26: Mature Market Deposit Performance
Mature1 Market Deposit Performance Organic Growth 2015 – 2025 $3,500 $3,000 $2,821 $2,689 Lake City Bank has grown $2,500 deposits by 103% over the $2,000 last ten-year period. $1,500 $1,324 $1,000 $494 $457 $428 $500 $287 $283 $201 $0 -$500 -$1,000 -$1,500 -$1,186 Lake City Bank 1st Source JPM Chas
Slide 27: Commitment to Technology
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 functio
Slide 28: Channel Utilization Today versus Pre-Pandemic
Channel Utilization Today versus Pre-Pandemic Mobile Adoption Outpacing All Other Delivery Channels Total Total Channel Transactions % of Transactions % of Period Type 2019(1) Total 2025(1) Total Change Branch Transactions 2,279,975 18% 2,038,771 13% (11)% ATM/ITM 944,785 7% 717,008 5% (24)% Online
Slide 29: Customer Composition and Digital Adoption
Customer Composition and Digital Adoption Digital Adoption Across All Generations Is Strong Customer Composition and Digital Adoption Over Three Years Customer Generation(1) Breakdown 9/30/25 9/30/24 9/30/23 Gen Alpha (2010 - Current) 4% 5% 2% n/a Gen Z (1996 - 2009) 16% 73% 70% 53% Millennial (1977
Slide 30: Financial Performance
Qoake City Bank Financial Performance
Slide 31: Income Performance Metrics
Income Performance Metrics LKFN Performance Exceeds National Peers and Contributes to Strong Capital Levels ROAE and ROATE LTM Peer Average Data1 22.00% National Indiana ROAE 10.3% 10.5% 2.70% ROATE 11.7% 11.8% 20.00% 17.52% 18.00% 16.03% 2.20% 17.40% 16.00% 14.27% 14.20% 14.03% ROAE and ROATE 13.59
Slide 32: Net Income and EPS
Net Income and EPS Net Interest Income Growth of 13% in 2025 $103,817 $4.50 $100,000 $95,733 $93,478 $93,767 $4.00 $84,337 $4.04 $3.74 $3.50 $80,000 $3.65 $3.63 $73,455 $69,288 Net Income $3.30 $3.00 EPS $60,000 $2.85 $2.50 $2.69 $40,000 $2.00 $1.50 $20,000 $1.00 $0 $0.50 2020 2021 2022 2023 2024 YT
Slide 33: Pretax Pre-Provision Earnings
Pretax Pre-Provision Earnings Pretax Pre-Provision Earnings Improves by 6% in 2025 $160,000 6.00% $140,000 $134,539 $128,439 Pretax Pre-Provision Earnings/Average Assets 5.00% $118,646 $118,521 $120,000 $116,183 Pretax Pre-Provision Earnings $101,032 4.00% $100,000 $95,522 $80,000 3.00% $60,000 2.00
Slide 34: Average Loans
Average Loans Average YTD Loan Growth of $184 million or 4% Compared to Prior Year $6,000,000 $5,207,205 120% $5,039,406 $5,000,000 $4,813,678 $4,421,094 $4,427,166 110% $4,424,472 $4,000,000 100% Loans to Deposit Ratio 95% 90% $3,000,000 Loans 86% 86% 87% 80% 83% $2,000,000 77% 70% $1,000,000 60% $
Slide 35: Line of Credit Utilization
25% 35% 45% 55% 65% 75% 85% 95% $1,446 $2,109 3,554 $1,499 $2,044 3,544 41% 42% PPP Round 2 $1,410 $2,190 3,600 $1,494 $2,206 3,700 39% 40% $1,553 $2,243 3,795 41% $1,690 $2,321 4,011 $1,746 $2,353 4,098 $1,805 $2,398 4,203 $1,824 $2,517 4,342 $1,966 $2,696 4,662 42% 43% 43% 42% 42% $1,885 $2,796 4,
Slide 36: Loan Portfolio Breakdown
Loan Portfolio Breakdown C&I Drives Lending Business Agri-business - Other Residential Commercial RE - Agriculture Commercial Mortgage Construction $339,972 $91,833 $273,580 $574,896 6% 2% 5% 11% Home Equity $241,256 5% Commercial RE - Multifamily Installment - Other $413,016 Consumer 8% $131,136 3%
Slide 37: Top Industry Concentrations
Top 10 Industry Concentrations Loan Portfolio is Diversified Commercial Office Real Estate Restaurants Automobile Dealers $107,401 $101,727 $135,489 2% 2% Self-Storage 2% Hotels $91,414 $146,128 2% 2% RV & Marine Industry Senior Living $228,234 $90,362 4% 2% Industrial CRE $236,654 5% Multifamily Ho
Slide 38: Average Deposits
Average Deposits Average YTD Deposit Growth of $224 million or 4% Compared to Prior Year (000’s) 150% $6,000,829 $6,000,000 $5,717,358 $5,836,025 $5,604,228 140% $5,357,284 $4,650,597 130% Deposits as a Percent of Total Funding $5,000,000 120% $4,000,000 110% Deposits 100% $3,000,000 98% 99% 100% 99
Slide 39: Deposit Breakdown
Deposit Breakdown Deposit Costs Are Repricing Downward with Federal Funds Rate Cuts Brokered Deposits Annual Cost of Deposits $175,647 3.00% 3% 2.00% 1.00% 0.00% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2025 Total Retail Total $1,724,983 Commercial 29% $2,288,701 Dep
Slide 40: Net Interest Income
Net Interest Income Net Interest Margin Expansion and Loan and Deposit Growth Drive Increases (000’s) in Net Interest Income $250,000 4.50% $202,887 Net Interest Margin, fully tax equivalent $197,035 $196,679 $200,000 $178,088 Net Interest Income $163,008 $163,824 4.00% $144,985 $150,000 3.40% 3.50%
Slide 41: Asset Quality: Nonperforming Assets
Asset Quality Total Individually Analyzed and Watchlist Loans at a 23 Year Low As a Percentage of Total Loans 6.00% 14.00% 5.00% Watch List Loans to Total Loans excluding PPP 12.00% Nonperforming Assets to Total Assets 4.00% 10.00% 8.86% 8.17% 8.06% 3.00% 7.46% 8.00% 6.64% 6.75% 2.00% 5.75% 5.50% 6.
Slide 42: Asset Quality: Allowance for Credit Losses
Asset Quality Allowance for Credit Losses Coverage Normalizes 2.70% 1.40% 2.39% 2.28% 2.40% ACL to Total Loans, excluding PPP 2.15% 1.20% 2.10% Net Chargeoffs to Average Loans 1.92% 1.00% 1.67% 1.68% 1.80% 1.59% 1.59% 1.54% 0.80% 1.42% 1.45% 1.46% 1.30% 1.50% 1.26% 1.23% 1.24% 1.25% 0.60% 1.20% 0.40
Slide 43: Noninterest Income
Noninterest Income Wealth Advisory Group and Treasury Management Fees Continue to Grow (000’s) $60,000 $56,844 60% Non-Interest Income as % of Total Revenue $49,858 $50,000 $46,843 50% $44,720 $44,968 $41,862 Non-Interest Income $40,000 $35,368 40% $30,000 30% $20,000 24% 20% 22% 22% 20% 20% 17% 18%
Slide 44: Total Revenue
Total Revenue Revenue Growth Benefits from Double Digit Growth in Net Interest Income (000’s) $300,000 $253,523 $244,749 $246,893 $250,000 $222,808 $209,851 $199,192 $200,000 $189,953 $150,000 $100,000 $50,000 $0 2020 2021 2022 2023 2024 YTD 2024 YTD 2025 Compound annual growth rate “CAGR” is based
Slide 45: Noninterest Expense
Noninterest Expense Disciplined Investment in People and Technology Continues (000’s) $140,000 $130,710 $125,084 $120,000 $110,210 $104,287 $94,431 $98,160 $100,000 $91,205 $80,000 $60,000 $40,000 $20,000 $0 2020 2021 2022 2023 2024(1) YTD 2024(1) YTD 2025 (1) Noninterest Expense includes $4.5 milli
Slide 46: Efficiency Ratio
Efficiency Ratio Efficiency Ratio is Stable 70% Constant investment in technology and facilities 60% 53% 51% 52% 50% 50% 48% 49% 49% 50% 46% 45% 45% 47% 45% 43% 47% 40% 30% 20% 10% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 12023 Year-to-date adjusted core efficiency rat
Slide 47: Stable Healthy Dividend
Stable Healthy Dividend Growth in Dividend Reflects Strength of Capital $1.92 8.00% $1.90 $1.84 7.00% $1.70 $1.60 $1.50 $1.50 $1.44 6.00% $1.36 Dividend per Share $1.30 $1.20 5.00% Dividend Yield $1.10 4.00% $0.90 2.82% 2.79% 3.00% 2.24% 2.19% 3.12% $0.70 2.95% 1.70% 2.00% $0.50 $0.30 1.00% $0.10 0.
Slide 48: LKFN Shareholder Value
LKFN Shareholder Value Total Return Performance from 12/31/00 to 9/30/25 3,500.00 3,000.00 3,044.73% 2,500.00 2,000.00 1,500.00 1,000.00 698.53% 500.00 301.21% 277.33% 0.00 (500.00) 2025 2014 2019 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 2016 2017 2018 2020 2021 202
Slide 49: Investment Highlights
Investment Highlights • Proven History of Organic Growth • Disciplined and Focused Strategy • Strong Internal Culture • Consistent Execution and Financial Results • Service Excellence Drives Shareholder Value • Unwavering Focus on Core Business Strategy • Dedication to Long-term Shareholder Value Cr
Slide 50: Supplemental Information
Supplemental Information Qoake City Bank
Slide 51: Lake City Bank Capital Adequacy
Lake City Bank Capital Adequacy Capital Strength Continues Non-GAAP Non-GAAP Non-GAAP Adjusted September Well- Capital AOCI and Excess Capital Regulatory Ratio 30, 2025 Capitalized Cushion HTM Capital Ratios with Description * Actual Threshold (in 000’s) Losses- after AOCI AOCI and after tax and HTM
Slide 52: Robust Liquidity Sources
Robust Liquidity Sources • Available liquidity is stable at $3.6 billion, a decrease from $3.7 billion at September 30, 2024 • Sources of liquidity are varied and represent wholesale funding and brokered deposits • Brokered deposits represent 3% of total deposits compared to 2% at September 30, 2024
Slide 53: Liquidity Preparedness
Liquidity Preparedness September 30, 2025 Additional Loan Collateral Liquidity Available for (000) Availability Used Unused/ Available Pledge Secured/Committed Borrowings: Federal Home Loan Bank-Indianapolis(1) $ 651,374 $ 56,200 $ 595,174 $ -- Federal Reserve Bank Discount Window 1,287,717 -- 1,287
Slide 54: Commercial Loans by County
Commercial Loans by County Commercial Customers in 50 Indiana Counties and 20 Other States Other IN Marshall Counties (1) 3% 15% Outside IN 7% Marion 16% Allen 17% Hamilton 11% Commercial Loans Kosciusko Elkhart Outstanding as of 9% 13% 9/30/2025 St. Joseph $4.6 billion 9% September 30, 2025 (000’s)
Slide 55: Investment Portfolio
Investment Portfolio Recurring Cash Flows Used to Fund Organic Loan Growth 25% 20% US Govt MV Investments as a % of Assets 21% Remics 20% US Govt 18% 17% 17% 8% Pools 15% US Govt 31% Agencies 14% 10% 10% 12% 12% 12% 12% HTM 5% Municipals 10% AFS 0% Municipals 2016 2017 2018 2019 2020 2021 2022 2023
Slide 56: Investment Security Portfolio Cashflows
Investment Security Portfolio Cashflows Cash Flows of $467 million Expected Through September 2029 (000,000) Investment Portfolio has generated $288 40,000 million in cash flow from January 2023 through September 2025 35,000 6,801 7,945 30,000 6,392 8,943 8,633 8,109 7,662 25,000 8,347 6,149 7,184 7
Slide 57: Investment Portfolio Analysis
Investment Portfolio Analysis Investment Portfolio as a Percentage of Total Assets Continues to Decline 9/30/2025 12/31/2024 Weighted Market % of Weighted Market % of Maturity Value Total Maturity Value Total US Govt REMICS 5.70 94,732 8% 6.05 85,794 8% US Govt Pools 6.35 353,476 31% 6.83 336,615 30
Slide 58: Line of Credit Utilization vs. Commercial DDA
Line of Credit Utilization 35% 40% 45% 50% 55% 60% 30% Dec-13 $389,051 50% Dec-14 $467,458 51% Dec-15 $572,966 50% Dec-16 $660,360 52% Dec-17 $740,576 54% Dec-18 $775,947 49% PPP $814,430 Round 1 Dec-19 Commercial DDA 46% Dec-20 $1,273,886 42% Mar-21 $1,339,673 39% PPP Round 2 Jun-21 $1,462,935 40%
Slide 59: Larger Market Organic Expansion
Larger Market Organic Expansion Organic Growth State LCB LCB Deposit Rank County Primary City Population* Entry Market Share** # of Branches 22. Kosciusko Warsaw 80,669 1872 67% 12 6. Elkhart Elkhart 207,436 1990 24% 11 5. St. Joseph South Bend 273,744 1997 8% 4 3. Allen Fort Wayne 399,295 1999 16%
Slide 60: Branch Expansion Strategy for Growth
Branch Expansion Strategy for Growth Lake City Bank Deposits in Indianapolis Total $606 Million at June 30, 2025 Lake City Bank Lake City 2025 2050 25- year 2025 Deposits Bank 2025 Deposit Lake City Indiana 2025 Projected projected in Market Deposits Market Bank County Population Population % growth
Slide 61: Mature Market Strength and Growth
Mature Market Strength and Growth Organic Growth (millions)1 2025 2015 2025 # of Deposits Share Deposits Share Increase Offices 1. Lake City Bank $5,573 19.68% $2,752 15.53% 102.51% 55 2. 1st Source $5,539 19.56% $2,850 16.09% 94.35% 51 3. JPM Chase $3,242 11.45% $1,918 10.83% 69.03% 20 4. PNC $1,56
Slide 62: Lake City Bank
Qiake City Bank LAKECITYBANK.COM