Lakeland Financial Corporation · NASDAQ:LKFN
Lakeland Financial — Shareholder Meeting (2013)
36 slides from Lakeland Financial's shareholder meeting presentation, 2013
Slide 1: Annual Meeting
Meeting 2012 Annual Report @ake City Bank | @akeland Financial Corporation
Slide 2: 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 with respect to the financial condition, results of oper
Slide 3: Net Income and EPS
Net Income and EPS “Record net income 24 out of last 25 years” Record net income and EPS $40,000 $35,394 $2.80 $35,000 $30,662 $30,000 $2.30 $24,543 $25,000 $2.15 $19,701 $1.80 $20,000 $19,211 $18,979 $1.88 $1.55 $1.58 $15,000 $1.30 $1.26 $1.32 $10,000 $0.80 $5,000 $0 $0.30 2007 2008 2009 2010 2011
Slide 4: Average Loans
Average Loans “Most significant driver of income growth” $2,216,131 $2,148,046 $2,300,000 $2,049,209 $2,100,000 $1,901,746 $1,900,000 $1,665,024 $1,700,000 $1,404,068 $1,500,000 $1,300,000 $1,100,000 $900,000 $700,000 $500,000 $300,000 2007 2008 2009 2010 2011 2012 Commercial Retail 2012 Growth 3%
Slide 5: Loan Breakdown
Loan Breakdown “Commercial and industrial lending drives business” Residential Mortgage Commercial RE - Agri-business - Agriculture $109,823 Construction $224,719 5% Home Equity $82,494 10% $161,366 Commercial RE - Multifamily 4% Installment - Other 7% $45,011 Consumer 2% $57,296 3% Commercial RE -
Slide 6: Average Deposits
Average Deposits “Demonstrated ability to fund loan growth” $2,700,000 $2,505,195 $2,325,963 $2,132,608 $2,200,000 $1,870,231 $1,637,794 $1,700,000 $1,476,725 $1,200,000 $700,000 $200,000 2007 2008 2009 2010 2011 2012 2012 Growth 8%
Slide 7: Deposit Breakdown – 2008 vs. 2012
Deposit Breakdown – 2008 vs. 2012 “A concentrated focus on core funding” Cost of Deposits in Period 5.00% 4.35% 3.96% 4.00% 3.10% 3.00% 1.72% 2.00% 1.30% 1.19% 0.98% 1.00% 0.00% December 31, 2008 2006 2007 2008 2009 2010 2011 2012 December 31, 2012 Total CDARS Total Brokered Commercial $26,077 Broke
Slide 8: Funding Snapshot – 2009-2012
Funding Snapshot – 2009-2012 “Funding mix improves due to client deposits” Total Total Dec 31, 2009 % of Mix Dec 31, 2012 % of Mix Client Funding Total Deposits $1,851 81% $2,582 94% Repurchase Agreements $127 6% $122 4% Total Client $1,978 87% $2,704 98% Wholesale Funding Federal Reserve Programs $
Slide 9: Net Interest Income
Net Interest Income “Tightening margin is affecting contribution” Q4 3.10% $100,000 $92,653 5.00% $92,080 $90,000 $87,671 $80,281 $80,000 4.50% $70,000 $63,268 $60,000 $54,556 4.00% 3.73% $50,000 3.54% 3.51% $40,000 3.50% 3.28% 3.22% $30,000 3.14% $20,000 3.00% $10,000 $0 2.50% 2007 2008 2009 2010 2
Slide 10: Non-Interest Income
Non-Interest Income = Fee Services “Stabilization in fee business with good mortgage growth” $30,000 50% $25,196 45% $25,000 $23,225 $22,686 $22,243 $22,205 40% Non-Interest Income/Total Revenue $20,242 35% $20,000 Non-Interest Income 27% 27% 30% $15,000 22% 25% 20% 20% 19% 20% $10,000 15% 10% $5,00
Slide 11: Non-Interest Expense
Non-Interest Expense “Diligently managing expenses” $57,742 $60,000 $53,895(2) $53,435 $55,105 $47,481 $50,000 $42,923 $40,000 $30,000 $20,000 $10,000 $0 2007 2008 2009 2010 2011 2012 2012 Growth 6% (1) Excluding special FDIC assessment and temporary increase in 2009 (2) Includes FDIC special assess
Slide 12: Efficiency Ratio
Efficiency Ratio “Investment in expansion drives ratio increase” 70% 65% 60% 55% 57% 57% 55% 50% 52% 51% 48% 45% 47% 40% 2006 2007 2008 2009 2010 2011 2012
Slide 13: Loan and Investment Quality
Loan and Investment Quality “Loan quality measures improving and losses reducing” 0.60% 2.50% 0.50% 1.95% 1.86% 2.00% NonPerforming Assets to Total Loans Net Chargeoffs/Average Loans 0.40% 1.57% 1.40% 1.50% 1.22% 0.30% 1.00% 0.20% 0.65% 0.50% 0.10% 0.21% 0.43% 0.42% 0.54% 0.25% 0.20% 0.00% 0.00% 200
Slide 14: Asset Quality
Asset Quality “Nonperforming Asset Levels Stabilized” 1.95% 1.86% 2.00% 1.77% 1.77% 1.80% 1.57% 1.53% 1.60% 1.37% 1.40% 1.40% 1.16% 1.22% 1.20% 1.00% 0.80% 0.65% 0.49% 0.60% 0.40% 0.20% 0.00% 2007 2008 2009 2010 2011 2012 Nonperforming Loans/Total Loans Nonperforming Assets/Total Loans
Slide 15: Reserve to Total Nonperforming Loans
Asset Quality “Reserve is strong by any measure” 180% 2.39% 167% 2.50% 160% 2.15% Reserve to Total Nonperforming Loans 140% 2.28% Loan Loss Reserve to Total Loans 2.00% 120% 135% 1.59% 122% 100% 1.50% 104% 80% 89% 1.00% 60% 1.03% 40% 0.50% 20% 0% 0.00% 2008 2009 2010 2011 2012 Reserve to Total Nonpe
Slide 16: Paid Dividends Per Share
Paid Dividends Per Share “Consistent earnings performance makes this possible” $0.68 $0.70 $0.62 $0.62 $0.62 $0.62 $0.55 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 2007 2008 2009 2010 2011 2012 Note - Split Adjusted - Paid Dividends
Slide 17: Capital Strength
Capital Strength “We have built a fortress balance sheet” Subordinated Debt Key Ratios and Per Share Data 8.2% Reserves As of December 31, 2012 13.6% TCE /Tangible Assets 9.63% Tier 1 Risk-Based 13.01% Total Risk-Based 14.27% Tangible Common Leverage 10.46% Equity 78.2% Book Value $18.18 Tangible Bo
Slide 18: LKFN Performance vs. Key Industry Index and Markets
LKFN Performance vs. Key Industry Index and Markets
Slide 19: 2013 Annual Meeting
2013 Annual Meeting 2012 Annual Report @ake City Bank | @akeland Financial Corporation
Slide 20: Lake City Bank Today
Lake City Bank Today • Headquartered in Warsaw, Indiana • 45 branch offices • 493 FTEs • $3.0 billion banking assets • $900 million trust assets • Regional franchise • Low market shares – high growth potential
Slide 21: Historical Highlights
Historical Highlights Founded as the Entered Opened Indianapolis 4th bank in Elkhart Indianapolis Loan Full Service Warsaw, IN Market Production Office Office opens 1872 1933 1965 1990 1999 2006 2011 2012 “It’s a Began Entered Fort Currently Wonderful Life” Branching Wayne Market Operate 45 Branch O
Slide 22: Diversified Market Area
Diversified Market Area 13 Counties and 30 Communities
Slide 23: Growth Strategy
Growth Strategy Business Owner Focus High Quality People Larger Market Organic Expansion
Slide 24: Business Owner Focus
Business Owner Focus • 35 Corporate Banking Officers • Average 20 years experience in banking • Average 10 years at Lake City Bank
Slide 25: Relationship Strategy
Business Owner Focus Relationship Strategy • Lead with Credit • Understand Client Needs • Cross-sell Based on Needs
Slide 26: Lake City Bank Culture
Quality People Lake City Bank Culture
Slide 27: Commitment to Development
Quality People Commitment to Development • Over 90 instructor-led courses, seminars, workshops and live webinars • 17,000 Contact Hours • Average 34 hours training per employee • Over 3400 online courses completed through e-learning
Slide 28: Face to Face Contact
Quality People Face to Face Contact • Over 107 Calling Officers • 16,146 Calls in 2012 • Establish our people as the competitive advantage
Slide 29: Community Involvement
Quality People Community Involvement • Company-wide involvement • Connections with hundreds of community groups • Thousands of volunteer hours
Slide 30: Larger Market Organic Expansion
Larger Market Organic Expansion State LCB LCB Deposit # of Rank County Primary City Population* Entry Market Share** Branches 20. Kosciusko Warsaw 77,336 1872 51% 12 6. Elkhart Elkhart 198,941 1990 22% 9 5. St. Joseph South Bend 266,700 1997 5% 4 3. Allen Fort Wayne 358,327 1999 10% 4 4. Hamilton/Ma
Slide 31: Lake City Bank Market Area Deposit Performance
Larger Markets Lake City Bank Market Area* Deposit Performance (millions) 2012 2002 Deposits Share Deposits Share Increase # of Offices 1. First Source $2,550 12.08% $2,435 17.51% 4.72% 49 2. Lake City Bank $2,527 11.97% $845 6.07% 199.05% 47 3. JPM Chase $2,352 11.14% $1,698 12.21% 38.57% 47 4. Wel
Slide 32: Market Area Deposit Performance
Larger Markets Market Area Deposit Performance $1,800 $1,682 $1,600 Dominant market share $1,400 winner in last decade $1,158 $1,200 $1,000 $780 $800 $655 $600 $400 $300 $283 $237 $221 $200 $116 $115 $0 Lake City Wells Fargo Bank of JPM Chase Fifth Third Tower KeyBank Star PNC 1st Source Bank Americ
Slide 33: Commercial Banking Market
Larger Markets Commercial Banking Market Companies $1-30 Million Elkhart/South Bend 2,296 22% Warsaw 650 6% Fort Wayne 1,757 17% Indianapolis 5,652 Source: Hoover’s 55%
Slide 34: Indianapolis Market Area Deposit Performance
Larger Markets Indianapolis Market Area* Deposit Performance (millions) 2012 2002 Deposits Share Deposits Share Increase 1. JPM Chase $7,540 28.44% $4,631 29.56% 62.82% 2. PNC $5,640 21.27% $4,176 26.66% 35.06% 3. Fifth Third $2,987 11.27% $1,263 8.06% 136.50% 4. Huntington National $2,200 8.30% $1,
Slide 35: Indianapolis Market Deposit Concentrations
Larger Markets Indianapolis Market Deposit Concentrations* 12% Great opportunity for Indiana-based players to grab market share 88% Out of State In State *Marion and Hamilton Counties as of 6/30/12
Slide 36: Annual Meeting
@akeland Financial Corporation | 1.800.827.4522 | www.lakecitybank.com