Lakeland Financial Corporation · NASDAQ:LKFN
Lakeland Financial — Q2 2025 Earnings Presentation
61 slides from Lakeland Financial's earnings presentation, Jul 25, 2025
Slide 1: A Proven History of Shareholder Value Creation – 2nd Quarter 2025
Lakeland Financial Corporation A Proven History of Shareholder Value Creation And Commitment to Our Communities 2nd Quarter 2025 LKFN L I S T E D
Slide 2: Executive contacts
2 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
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 March 31, 2025. (1) Includes banks and thrifts traded on the NYSE, NYSEAM or NASDAQ as of 7/8/25; excludes merger targets. (2) Defined as having positive net income before extraordinary items and pr
Slide 5: Strong Capital Structure
Tangible Common Equity 92.9% Allowance for Credit Losses 7.1% $3 3. 73 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 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 20 25 Tangible Book Value(1) Per Share 5 Strong Capital Structure
Slide 6: Lake City Bank Today
6 Lake City Bank Today •A long‐term and consistent organic growth story •Headquartered in Warsaw, Indiana • 54 branch offices ‐ $7.0 billion banking assets ‐ $3.4 billion trust, retirement and investment brokerage assets • Focused on execution – “blocking and tackling” • Continued growth potential
Slide 7: Years of Organic Growth
7 34 Years of Organic Growth Record Net Income for 30 of 34 Years $2 ,7 07 $9 3, 47 8 $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 17
Slide 8: Established Market Presence
8 Established Market Presence Organic Growth Potential in Mature and Expanding Markets
Slide 9: A Continued Path to Economic Growth
9 A Continued Path to Economic Growth • 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
Slide 10: Expansion and Innovation Occurring Throughout Indiana
10 Expansion and Innovation Occurring Throughout Indiana • Indiana #1 manufacturing state in the country(1) • Indiana to host 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
Slide 11: Strong Regional and Statewide Economy
11 Strong Regional and Statewide Economy Unemployment Rate In The Lake City Bank Footprint Is Lower Than The National Average U ne m pl oy m en t Source: United States Bureau of Labor Statistics. Lake City Bank footprint is defined as Kosciusko, Marshall, Fulton, Pulaski, Noble, Whitley, St. Joseph,
Slide 12: Fortress Balance Sheet And Capital In Excess of Requirements
12 Fortress Balance Sheet And Capital In Excess of Requirements LKFN Above Peer Long‐Term Profitability has Contributed to a Strong Capital Foundation 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 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 Q4'23 Q4'24 R
Slide 13: Net Interest Margin by Quarter
13 Net Interest Margin by Quarter NIM Expansion of 25 Basis Points Over Last Twelve Months 3.17% 3.16% 3.25% 3.40% 3.42% 3.00% 3.50% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Quarterly NIM
Slide 14: Net Interest Margin: Deposit Costs Coming Down Rapidly
14 Net Interest Margin Deposit Costs Coming Down Rapidly • Linked quarter net interest margin expanded by 2 basis points in 2Q25 compared to 1Q25 • Cumulative Loan Beta 29% for recent easing cycle • Cumulative Deposit Beta 50% for recent easing cycle • Deposit repricing in current easing cycle conti
Slide 15: Interest Rate Sensitivity
15 Interest Rate Sensitivity Deposits Have Repriced Quicker Than Loans During Current Easing Cycle Fixed Rate $1,512,245 33% Prime $1,111,700 24% SOFR $1,404,260 30% FHLB/Other $580,823 13% Commercial Loans $4.6 billion as of June 30, 2025 (000’s) • 88% of loan portfolio consists of commercial loans
Slide 16: Projected Impact of Rising/Falling Rates
16 Projected Impact of Rising/Falling Rates Asset Sensitive Balance Sheet Maintains Neutral Shift Graph presents 12 month projected net interest income simulation results as of June 30, 2025 using parallel shocks ‐3.08% ‐1.35% ‐0.42% ‐0.14% ‐0.04% 0.01% (0.00%) (0.06%) (0.27%) (0.54%) ‐4.00% ‐2.00%
Slide 17: Deposit Composition Provides Diversification
17 Deposit Composition Provides Diversification Strong Multi‐Year Deposit Growth Total Retail $1,755,750 28% Total Public Fund $2,014,047 33% Total Commercial $2,256,620 37% Brokered Deposits $150,416 2% June 30, 2025 Total Deposits ‐ $6.2 billion DDA $1,261,740 DDA % of Total Deposits – 20% (000’s)
Slide 18: Diversified Deposit Base
18 Diversified Deposit Base Deposit Franchise Consists of Broad‐based and Deep Relationships • Deposit composition has remained stable with growth in all three deposit segments • 98% of deposit accounts are less than $250,000 at June 30, 2025 • Public Funds in Indiana are covered by the Public Depos
Slide 19: Public Fund Deposit Trends
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 Checking and MMA CDs 19 Public Fund Deposit Trends 88% of Large Public Fund Deposits are Operating Relationships $1 ,2 53 ,7 04 $1 ,2 81 ,4 51 $1 ,1 27 ,1 11 $1 ,1 32 ,4 38 $1 ,1 03 ,0 14 $1 ,2 12 ,1 31 $1 ,1 62 ,4 57 $1 ,2 04 ,1 53 $1 ,2 75 ,3 88 $1 ,2 8
Slide 20: Checking Account Trends by Deposit Sector
20 Checking Accounting Trends by Deposit Sector Commercial Accounts Grow by 23% since December 2019 $1 ,1 05 ,2 67 $1 ,9 53 ,9 69 $2 ,1 05 ,4 11 $2 ,1 29 ,9 52 $2 ,1 12 ,4 05 $6 58 ,4 51 $1 ,0 73 ,3 14 $9 37 ,4 58 $9 71 ,8 52 $9 57 ,8 54 $8 34 ,9 53 $1 ,3 82 ,5 65 $1 ,3 09 ,9 65 $1 ,6 20 ,4 60 $1 ,8
Slide 21: Shareholder Value Strategy
21 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 22: Commercial Banking Focus
22 Commercial Banking Focus Experienced Relationship Driven Team • 42 credit “smart” commercial bankers • Average 25 years in banking & 14 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 23: Credit Process
23 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
24 Corporate Social Responsibility Over 150 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
Slide 25: Lake City Bank Culture
25 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 • Inclusion initiatives continue, such as employee education and marketing campaigns to create a culture of belonging • Our community involvement
Slide 26: Mature Market Deposit Performance
26 Mature1 Market Deposit Performance Organic Growth 2014 – 2024 $2,688 $2,495 $1,763 $521 $447 $373 $332 $257 ‐$219 ‐$1,210‐$1,500 ‐$1,000 ‐$500 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 1st Source Lake City Bank JPM Chase Star Fifth Third PN C First M erchants O ld N ational KeyBank Flagstar(2) L
Slide 27: Commitment to Technology
27 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 28: Channel Utilization Today versus Pre-Pandemic
28 Channel Utilization Today versus Pre‐Pandemic Mobile Adoption Outpacing All Other Delivery Channels Period Change % of Total Total Transactions 2025(1) % of Total Total Transactions 2019(1) Channel Type (10)%14%2,044,40418%2,279,975Branch Transactions (23)%5%723,4657%944,785ATM/ITM (26)%25%3,737,
Slide 29: Customer Composition and Digital Adoption
29 Customer Composition and Digital Adoption Digital Platform Upgrade with Fintech Partner in 2021 Positively Impacting Digital Adoption Across All Generations Customer Composition and Digital Adoption Over Three Years 6/30/236/30/246/30/25 Customer Breakdown Generation(1) n/a1%4%4%Gen Alpha (2010 ‐
Slide 30: Financial Performance
Financial Performance
Slide 31: Income Performance Metrics
31 Income Performance Metrics LKFN Performance Exceeds National Peers and Contributes to Strong Capital Levels 1.55% 1.56% 1.62% 1.45% 1.40% 1.39% 13.51% 14.19% 17.40% 15.93% 14.12% 13.62% 13.59% 14.27% 17.52% 16.03% 14.20% 13.70% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 0.
Slide 32: Net Income and EPS
32 Net Income and EPS Net Interest Income Growth of 13% in 2025 $84,337 $95,733 $103,817 $93,767 $93,478 $45,950 $47,051 $3.30 $3.74 $4.04 $3.65 $3.63 $1.78 $1.82 $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 2020 2021 2022 2023 2024 YTD 2024 YTD 2
Slide 33: Pretax Pre-Provision Earnings
33 Pretax Pre‐Provision Earnings Pretax Pre‐Provision Earnings Improves by 3% in 2025 $118,646 $118,521 $134,539 $116,183 $128,439 $64,725 $66,970 2.19% 1.93% 2.09% 1.80% 1.93% 1.97% 1.98% 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 $140,000 $160,00
Slide 34: Average Loans
34 Average Loans Average YTD Loan Growth of $205 million or 4% Compared to Prior Year 95% 83% 77% 86% 86% 87% 50% 60% 70% 80% 90% 100% 110% 120% $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2020 (1) 2021 (1) 2022 (1) 2023 2024 YTD 2025 Retail Commercial Average Loans to Avera
Slide 35: Line of Credit Utilization
$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 68 $1 ,8 37 $1 ,8 93 $1 ,9 03 $1 ,8 66 $1 ,9 59 $1 ,9 93 $2 ,0 66 $2 ,1 09 $2 ,0 44 $2 ,1 90 $2 ,2 06 $2 ,2 43 $2 ,3 21 $2 ,3 53 $2 ,3 98 $2 ,5 17 $2 ,6 96 $2 ,7 96 $2
Slide 36: Line of Credit Utilization vs. Commercial DDA
36 Line of Credit Utilization vs. Commercial DDA Commercial DDA Deposit Balances Grow by 3% Annually $3 89 ,0 51 $4 67 ,4 58 $5 72 ,9 66 $6 60 ,3 60 $7 40 ,5 76 $7 75 ,9 47 $8 14 ,4 30 $1 ,2 73 ,8 86 $1 ,3 39 ,6 73 $1 ,4 62 ,9 35 $1 ,4 93 ,2 45 $1 ,5 71 ,9 64 $1 ,5 61 ,7 47 $1 ,4 77 ,3 56 $1 ,5 10 ,
Slide 37: Loan Portfolio Breakdown
37 Loan Portfolio Breakdown C&I Drives Lending Business Commercial & Industrial $1,493,762 29% Commercial RE ‐ Owner Occupied $780,285 15% Commercial RE ‐ Nonowner Occupied $869,196 17% Commercial RE ‐Multifamily $477,910 9% Commercial RE ‐ Construction $552,998 11% Agri‐business ‐ Agriculture $339,
Slide 38: Top 10 Industry Concentrations
Multifamily Housing $760,780 15%Agriculture $406,905 8% Industrial CRE $250,572 5% RV Industry $212,257 4% Senior Living $116,713 2% Automobile Dealers $130,352 2% Restaurants $103,905 2% Nonbank Lenders $103,922 2% Hotels $132,599 2% Commercial Office Real Estate $106,919 2% 38 Top 10 Industry Conc
Slide 39: Average Deposits
$4,650,597 $5,357,284 $5,717,358 $5,604,228 $5,836,025 $5,986,227 98% 99% 100% 97% 99% 99% 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 2020 2021 2022 2023 2024 YTD 2025 Average Deposits % of Funding 39 Average Deposits Averag
Slide 40: Deposit Breakdown
40 Deposit Breakdown Deposit Costs Are Repricing Downward with Federal Funds Rate Cuts Total Retail $1,755,750 28% Total Public Fund $2,014,047 33% Total Commercial $2,256,620 37% Brokered Deposits $150,416 2% June 30, 2025 Total Deposits ‐ $6.2 billion (000’s) 0.00% 1.00% 2.00% 3.00% 20 11 20 12 20
Slide 41: Net Interest Income
41 Net Interest Income Net Interest Margin Expansion and Loan and Deposit Growth Drive Increases in Net Interest Income $163,008 $178,088 $202,887 $197,035 $196,679 $95,712 $107,751 3.19% 3.07% 3.40% 3.31% 3.18% 3.16% 3.41% 2.50% 3.00% 3.50% 4.00% 4.50% $0 $50,000 $100,000 $150,000 $200,000 $250,000
Slide 42: Asset Quality
42 Asset Quality Total Individually Analyzed and Watchlist Loans Decline by $77 Million in a Year 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. 32 % 1. 10 % 0. 59 % 1. 22 % 1. 82 % 2. 20 % 1. 75 % 1. 31 % 0. 41 % 0. 35 % 0. 16 % 0.
Slide 43: Asset Quality: Allowance for Credit Losses
43 Asset Quality Allowance for Credit Losses Coverage Normalizes in Second Quarter 2025 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. 13 % 0. 05 % 1. 13 % 1.59% 2.15% 2.39% 2.28% 1.92% 1.67% 1.42% 1.26% 1.23% 1.24% 1.25% 1.45% 1.5
Slide 44: Noninterest Income
44 Noninterest Income Wealth Advisory Group and Treasury Management Fees Continue to Grow $46,843 $44,720 $41,862 $49,858 $56,844 $33,051 $22,414 22% 20% 17% 20% 22% 26% 17% 0% 10% 20% 30% 40% 50% 60% $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2020 2021 2022 2023 2024(1) YTD 2024(1) YTD 2025
Slide 45: Total Revenue
45 2025 YOY Increase 1% 2025 YOY Core Revenue Increase 1 10% Total Revenue Revenue Growth Benefits from Double Digit Growth in Net Interest Income $209,851 $222,808 $244,749 $246,893 $253,523 $128,763 $130,165 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2020 2021 2022 2023 2024 YTD 2024
Slide 46: Noninterest Expense
46 Noninterest Expense $91,205 $104,287 $110,210 $130,710 $125,084 $64,038 $63,195 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 2020 2021 2022 2023 2024(1) YTD 2024(1) YTD 2025 (000’s) 2025 YOY Decrease (1)% 2025 YOY Core Noninterest Expense Increase 6%(1) Disciplined Investment in
Slide 47: Efficiency Ratio
47 Efficiency Ratio Efficiency Ratio is Stable 51% 52% 50% 50% 48% 46% 45% 45% 43% 47% 45% 53% 49% 49% 47% 0% 10% 20% 30% 40% 50% 60% 70% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2025 Efficiency Ratio Adjusted Core Efficiency Ratio Constant investment in technology and fa
Slide 48: Stable Healthy Dividend
48 Stable Healthy Dividend Growth in Dividend Reflects Strength of Capital $1.20 $1.36 $1.60 $1.84 $1.92 $0.96 $1.00 2.24% 1.70% 2.19% 2.82% 2.79% 3.14% 3.28% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% $0.10 $0.30 $0.50 $0.70 $0.90 $1.10 $1.30 $1.50 $1.70 $1.90 2020 2021 2022 2023 2024 YT
Slide 49: LKFN Shareholder Value Total Return Performance
49 LKFN Shareholder Value Total Return Performance from 12/31/00 to 6/30/25 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 20 23 20 24 LKFN S&P 500 S&P US Bank Index S&P 500 Financials 2,887.40% 638.53% 268.87
Slide 50: Investment Highlights
50 Investment Highlights •Proven History of Organic Growth •Disciplined and Focused Strategy • Strong Internal Culture •Consistent Execution • Service Excellence Drives Shareholder Value
Slide 51: Supplemental Information
Supplemental Information
Slide 52: Lake City Bank Capital Adequacy
52 Lake City Bank Capital Adequacy Capital Strength Continues 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 June 30, 2025 Actual Regulatory Ratio Desc
Slide 53: Robust Liquidity Sources
53 Robust Liquidity Sources • Available liquidity is stable at $3.7 billion, an increase from $3.3 billion at June 30, 2024 • Sources of liquidity are varied and represent wholesale funding and brokered deposits • Brokered deposits represent 2% of total deposits compared to 3% at June 30, 2024 • Non
Slide 54: Liquidity Availability
Additional Loan Collateral Available for PledgeUnused/ AvailableUsed Liquidity Availability(000) Secured/Committed Borrowings: $ ‐‐$ 608,831$ 1,200$ 610,031Federal Home Loan Bank‐Indianapolis(1) 161,4021,363,528‐‐1,363,528Federal Reserve Bank Discount Window $ 161,402 $ 1, 972,359$ 1,200$ 1,973,559
Slide 55: Investment Portfolio
55 Investment Portfolio Recurring Cash Flows Used to Fund Organic Loan Growth 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 in 2022 from total assets 12% 12% 12% 12% 14% 21% 20
Slide 56: Investment Security Portfolio Cashflows
56 Investment Security Portfolio Cashflows Cash Flows of $407 million Expected Through June 2029 20 ,2 66 17 ,5 75 19 ,9 51 17 ,0 44 17 ,7 95 16 ,3 49 16 ,2 36 17 ,1 53 15 ,6 00 14 ,5 29 16 ,1 99 27 ,5 65 20 ,2 84 17 ,6 29 14 ,6 84 17 ,1 64 8, 93 7 7, 70 2 8, 74 2 7, 50 6 8, 45 4 7, 30 7 8, 23 0 7,
Slide 57: Investment Portfolio Analysis
Investment Portfolio Analysis Investment Portfolio as a Percentage of Total Assets Continues to Decline 57 12/31/20246/30/2025 % of Total Market Value Weighted Maturity % of Total Market Value Weighted Maturity 8%85,7946.058%92,8265.80US Govt REMICS 30%336,6156.8332%346,9796.69US Govt Pools 10%109,4
Slide 58: Commercial Loans by County
58 Commercial Loans by County Commercial Customers in 50 Indiana Counties and 21 Other States (1) All other counties individually represent less than 2% of total June 30, 2025 (000’s) Allen 17% Elkhart 13% St. Joseph 8% Kosciusko 10% Hamilton 10% Marion 16% Marshall 3% Other IN Counties (1) 16% Outs
Slide 59: Larger Market Organic Expansion
59 Larger Market Organic Expansion Organic Growth # of Branches LCB Deposit Market Share** LCB EntryPopulation*Primary CityCounty State Rank 1267%187280,364WarsawKosciusko 22. 1122%1990206,409ElkhartElkhart6. 48%1997272,848South BendSt. Joseph5. 514%1999394,545Fort WayneAllen3. 81%20111,507,924India
Slide 60: Mature Market Strength and Growth
60 Mature Market Strength and Growth Organic Growth 2024 # of Offices 20142024 (millions)1 IncreaseShareDepositsShareDeposits 5299.52%15.68%$2,70119.43%$5,3891. 1st Source 5492.85%15.60%$2,68718.68%$5,1822. Lake City Bank 20102.50%9.99%$1,72012.56%$3,4833. JPM Chase 1630.67%7.06%$1,2165.73%$1,5894.
Slide 61: Lake City Bank
Qake City Bank LAKECITYBANK.COM