Lakeland Financial Corporation · NASDAQ:LKFN
Lakeland Financial — Shareholder Meeting (2017)
21 slides from Lakeland Financial's shareholder meeting presentation, 2017
Slide 1: 2017 Annual Meeting
_- 5 2017 ANNUAL MEETING THE LARGEST BANK 100% INVESTED IN INDIANA. @iake City Bank
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: A High Performer Among Peers
A High Performer Among Peers 2 Institutions LTM (including LKFN) ROE >12% Consecutive Increases in Net Income Since 2009(3) 13 Institutions Profitable for the Last 10 Years(2) 74 Institutions Exchange Traded Depositories with Assets Between $1B and $5B(1) 165 Institutions Source: SNL Financial. Fina
Slide 4: A Quarter Century of Organic Growth
A Quarter Century of Organic Growth Record Net Income for 27 of 28 Years (000’s) $52,084 $60,000 Compound Annual Growth 1991 – 2016 $50,000 • Loans = 11% • Deposits = 12% $40,000 • Net Income = 13% $30,000 $20,000 $2,707 $10,000 $0 2001 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2002 2003 200
Slide 5: Long-Term Mission
Long-Term Mission Lake City Bank Will be the Acknowledged and Recognized Leader in Indiana Community Banking Management Committee Board of Directors
Slide 6: 2017 Strategic Plan
2017 Strategic Plan A Continued Commitment to Execution, Culture and Performance
Slide 7: Positioned for Growth
Positioned for Growth Organic Growth Potential in Mature and New Markets Market Data Warsaw – 1872 22 offices Elkhart – 1990 11 offices South Bend – 1997 4 offices Fort Wayne – 1999 7 offices Indianapolis – 2011 5 offices
Slide 8: Critical Role of Culture
Critical Role of Culture Our unique, caring and community-driven culture is our greatest asset and will be preserved. It matters.
Slide 9: Critical Role of Culture
Critical Role of Culture ‘Working at Lake City Bank has really renewed my faith in “doing banking the right way”! The commitment to serve our clients, know who they are and what their world is about is very meaningful and rewarding. Lake City Bank’s commitment to tenaciously protect our company cult
Slide 10: Organizational Vision
Organizational Vision We’re driven by the growth of shareholder value and the delivery of competitive banking services through a progressive business model that preserves the principles and ideals of a community bank.
Slide 11: Shareholder Value
Shareholder Value Creation of shareholder value will result from the successful long-term execution of our Mission. Long-Term Mission Execution Key: While important, we will not allow short term financial results to impact our commitment to the Long Term Mission.
Slide 12: Financial Performance
Financial Performance LAKELAND FINANCIAL CORPORATION LAKE CITY BANK
Slide 13: Income Performance Metrics
Income Performance Metrics LKFN performance exceeds National and Indiana Peers 14.00% 12.98% 1.90% 12.76% 12.61% 12.55% 12.45% 13.00% 12.05% 12.77% 12.50% 12.52% 12.00% 1.70% 12.30% 12.26% 11.78% 11.00% ROE and ROTE LTM Peer Data(1) National Indiana 1.50% 10.00% ROE 7.49% 8.80% ROTE 8.33% 9.72% 9.00
Slide 14: Net Income and EPS
Net Income and EPS Record Net Income and EPS $60,000 $52,084 $2.80 $50,000 $46,367 $43,805 $2.30 $40,000 $38,839 $35,394 $2.05 $30,662 $1.80 $30,000 $1.84 $1.74 $1.55 $1.43 $1.30 $20,000 $1.25 $10,000 $0.80 $0 $0.30 2011 2012 2013 2014 2015 2016 Net Income Diluted EPS 2016 Net Income Growth 12% 2016
Slide 15: Average Loans
Average Loans Commercial Emphasis Drives Growth $3,500,000 120% $3,225,635 $3,000,000 110% $2,885,568 $2,650,678 $2,343,422 100% $2,500,000 $2,148,046 $2,216,131 95% 90% 93% 93% 93% 93% $2,000,000 87% 80% $1,500,000 70% $1,000,000 60% $500,000 50% $0 40% 2011 2012 2013 2014 2015 2016 Retail Commerci
Slide 16: Loan Breakdown
Loan Breakdown C&I Drives Lending Business Residential Mortgage Agri-business - Agriculture Other Commercial $163,155 Commercial RE - Construction $394,843 $98,270 5% $245,182 11% 3% Home Equity 7% $169,664 5% Commercial RE - Multifamily Installment - Other Consumer $127,632 $76,323 4% 2% Commercial
Slide 17: Efficiency Ratio
Efficiency Ratio Revenue Growth is Primary Driver of Low Efficiency Ratio 60% Indianapolis – Indianapolis and South Fishers and Clearwater Michigan Rd and Bend Market Expansion offices in Indianapolis 55% Fort Wayne DT 52% 50% 52% 51% 50% 50% 48% 48% 47% 45% 40% 2009 2010 2011 2012 2013 2014 2015 20
Slide 18: Asset Quality: Net Chargeoffs/Average Loans
Asset Quality Strong Reserve Coverage 0.25% 2.70% 2.39% Reserve to 2.28% 2.40% Nonperforming Loan Loss Reserve to Total Loans Net Chargeoffs/Average Loans 0.20% Loans = 653% 2.10% 1.92% 1.67% 1.80% 0.15% 1.42% 1.50% 1.26% 1.20% 0.10% 0.90% 0.60% 0.05% 0.30% 0.25% 0.20% 0.11% 0.10% 0.09% 0.03% 0.00%
Slide 19: Stable Healthy Dividend
Stable Healthy Dividend Significant Increase in Dividend Reflects Strength of Balance Sheet Dividend Payout Ratio of 37% $0.90 $0.76 $0.80 $0.65 $0.70 $0.56 $0.60 $0.51 $0.45 $0.50 $0.41 $0.40 $0.30 $0.20 $0.10 2011 2012 2013 2014 2015 2016 Annualized 2016 Growth 17%
Slide 20: LKFN Shareholder Value
LKFN Shareholder Value Total Return Performance from 12/31/00 to 1/27/17 LKFN: 1,586% SNL US Bank: 70% S&P 500 Bank: 51% S&P 500: 139%
Slide 21: Lake City Bank
Qvake City Bank (800) 827-4522 LAKECITYBANK.COM