Lakeland Financial Corporation · NASDAQ:LKFN
Lakeland Financial — Q1 2023 Earnings Presentation
66 slides from Lakeland Financial's earnings presentation, Apr 25, 2023
Slide 1: A Proven History of Shareholder Value Creation and Commitment to Our Communities
Lakeland Financial Corporation A Proven History of Shareholder Value Creation And Commitment to Our Communities 1st Quarter 2023 LKFN L I S T E D
Slide 2: Presenter Contacts
2 David M. Findlay President & Chief Executive Officer david.findlay@lakecitybank.com (574) 267‐9197 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 Consecutive Increases in PTPP Income Since 2012(3) Profitable for the Last 10 Years(2) Exchange Traded Depositories with Assets Between $1B and $10B(1) LTM ROE >13% (including LKFN) 12 Institutions 17 Institutions 169 Institutions 200 Institutions Source: S&P Cap
Slide 5: Strong Capital Structure
$1 .2 1 $2 9. 87 $2 3. 36 $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 Tangible Common Equity 91.7% Reserves 8.3% Key Ratios and
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 ‐ $2.9 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 Strong Regional and Statewide Economy Indiana Unemployment Rate is Lower Than the National Average 9. 0% 8. 8% 6. 5% 5. 2% 4. 6% 3. 8% 3. 3% 3. 7% 3. 0% 11 .3 % 4. 5% 2. 4% 3. 3% 9. 0% 9. 0% 6. 9% 5. 6% 5. 1% 4. 3% 3. 8% 4. 1% 3. 4% 11 .9 % 4. 7% 3. 4% 3. 5% 8. 7% 8. 1% 7. 0% 5. 8% 5. 2% 4. 9% 4.
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: Capital Strength
11 Capital Strength Our Above Peer Profitability Has Contributed to our Strong Capital Foundation • Lake City Bank has significantly higher levels of capital than the minimum required by the regulators for “Well‐ Capitalized” status • A strong capital foundation has been maintained for a long period
Slide 12: Fortress Balance Sheet in Excess of Regulatory Capital Requirements
12 Fortress Balance Sheet in Excess of Regulatory Capital Requirements LKFN Performance Exceeds Minimums Required to be “Well‐Capitalized” 13.3% 15.1% 15.2% 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 Risk‐Based Ca
Slide 13: Lake City Bank Capital Adequacy
13 Lake City Bank Capital Adequacy Capital Strength Grows in March 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 March 31, 2023 Actual Regulatory
Slide 14: Impact of Banking Crisis on Lake City Bank
14 Impact of “Banking Crisis” on Lake City Bank Deposits Have Been Stable Since Banking Crisis Emerged • Deposit activity reflects customary fluctuations for this time of year • Daily monitoring of liquidity position, large depositor fluctuation report, uninsured deposit balances, and significant da
Slide 15: Deposit Composition Continues To Remain Stable In 2023
15 Deposit Composition Continues To Remain Stable In 2023 Runoff of PPP and Economic Stimulus Deposits Impacts Demand Deposit Balances Total Retail $1,894,707 34% Total Public Fund $1,356,851 25% Total Commercial $2,105,512 38% Brokered Deposits $160,658 3% Total Retail $1,934,787 36% Total Public F
Slide 16: Diversified Deposit Base
16 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 129,532 deposit accounts at March 31, 2023. 126,804, or 98%, of those accounts are les
Slide 17: Pre-Pandemic Deposit Comparison
17 Pre‐Pandemic Deposit Comparison Deposit Composition Has Remained Stable in 2022 versus 2019 Total Retail $1,934,787 36% Total Public Fund $1,429,872 26% Total Commercial $2,085,934 38% Brokered Deposits $10,027 0% Total Retail $1,617,133 39% Total Public Fund $1,127,111 27% Total Commercial $1,27
Slide 18: Checking Account Trends by Deposit Sector
18 Checking Accounting Trends by Deposit Sector Commercial and Retail Accounts Grow by Double Digits $1 ,1 05 ,2 67 $1 ,9 53 ,9 69 $1 ,9 97 ,0 92 $6 58 ,4 51 $1 ,0 73 ,3 14 $1 ,0 11 ,9 85 $8 34 ,9 53 $1 ,3 82 ,5 65 $1 ,2 04 ,3 48 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Dec 2019 Dec 2
Slide 19: Lake City Bank Uninsured Deposits
19 Lake City Bank Uninsured Deposits Uninsured Deposits Excluding Public Funds are 29% $2 ,5 47 $2 ,8 74 $3 ,1 84 $3 ,5 81 $4 ,0 10 $4 ,0 45 $4 ,1 36 $5 ,0 37 $5 ,7 36 $5 ,4 61 $5 ,3 90 $5 ,5 42 $5 ,5 23 $5 ,5 22 $5 ,5 20 $5 ,4 87 $5 ,4 86 $5 ,4 64 $5 ,4 79 $5 ,5 14 $5 ,5 60 $5 ,5 72 $5 ,5 62 $5 ,5
Slide 20: Liquidity Overview
20 Liquidity Overview • Available liquidity is stable and has remained unchanged at $3.0 billion since year end • Sources of liquidity are varied and represent wholesale funding and brokered deposits • In December 2022, loan growth and deposit outflows contributed to a need of wholesale funding, pri
Slide 21: Liquidity Preparedness
21 Liquidity Preparedness March 31, 2023 Additional Loan Collateral Available for PledgeUnused/ AvailableUsedLiquidity Availability(000) Secured/Committed Borrowings: $ ‐‐$ 306,702$ 200,000$ 506,702Federal Home Loan Bank‐Indianapolis(1) 349,4261,150,910‐‐1,150,910Federal Reserve Bank Discount Window
Slide 22: Investment Securities Overview
Investment Securities Overview Excess Liquidity Deployed to Investment Security Portfolio Over Two Years • 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 managem
Slide 23: Investment Portfolio Analysis
Investment Portfolio Analysis Linked Quarter Comparison 23 12/31/20223/31/2023 % of Total Market Value Weighted Maturity % of Total Market Value Weighted Maturity 9%114,3555.979%108,0216.17US Govt REMICS 29%377,9537.3431%376,4407.85US Govt Pools 10%126,9618.8211%127,9959.24US Agencies 0%3,0340.920%3
Slide 24: Investment Security Portfolio Cashflows
24 Investment Security Portfolio Cashflows Nearly $400 million of Principal and Interest Cash Flows Expected from 2023‐2026 16 ,5 92 ,2 10 25 ,4 92 ,0 16 15 ,6 97 ,4 75 18 ,0 20 ,4 76 14 ,9 96 ,0 63 18 ,3 10 ,0 81 14 ,8 52 ,1 34 19 ,2 51 ,6 55 14 ,0 03 ,7 15 17 ,7 90 ,5 80 14 ,5 75 ,9 61 20 ,1 76 ,9
Slide 25: Investment Portfolio
25 Investment Portfolio Investment Portfolio Decreasing in Size as a Percentage of Total Assets M V In ve st m en ts a s a % o f A ss et s (1) Ratio for 12/31/20 excludes PPP loans of $412 million in total assets (2) Ratio for 12/31/21 excludes PPP loans of $26 million in total assets (3) Ratio for
Slide 26: Projected Impact of Rising/Falling Rates
26 Projected Impact of Rising/Falling Rates Asset Sensitive Balance Sheet ‐13.12% ‐8.09% ‐3.74% ‐1.81% ‐0.88% 0.71% 1.42% 2.82% 5.62% 8.47% ‐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 27: Evolution of Deposit and Loan Betas
27 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 34% from March 2022 to March 2
Slide 28: Interest Rate Sensitivity
28 Interest Rate Sensitivity Asset Sensitivity Generated From Commercial Loan Portfolio Fixed Rate $1,488,019 35% Prime $1,325,805 31% 1 Mo. LIBOR $399,178 9% FHLB/Other $1,037,638 25% Commercial Loans $4.3 billion as of March 31, 2023 (000’s) • Cost of deposits and purchased funds increased due to
Slide 29: Shareholder Value Strategy
29 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 30: Commercial Banking Focus
30 Commercial Banking Focus Experienced Relationship Driven Team • 39 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 • We understand our clients’ needs • Deep organizational stru
Slide 31: Credit Process
31 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 32: Corporate Social Responsibility
32 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 products to our communities • Developing strong cybersecurity controls to pro
Slide 33: Lake City Bank Culture
33 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 34: Mature Market Deposit Performance
34 Mature1 Market Deposit Performance Organic Growth 2012 ‐ 2022 $2,509 $2,501 $2,373 $596 $509 $486 $328 $93 ‐$210 ‐$1,162‐$1,500 ‐$1,000 ‐$500 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Lake City Bank 1st Source JPM Chase PN C Star First M erchants FSB of M iddlebury O ld N ational KeyBank Flagsta
Slide 35: Organic Growth Indianapolis Market Opportunity
35 Organic Growth Indianapolis Market Opportunity Share of MarketIndianapolis Market Banks 24%1. JPM Chase 14%2. PNC 10%3. Merchants Bank 8%4. Fifth Third 7%5. Huntington National 5%6. BMO Harris 5%7. Bank of America 5%8. First Internet Bank 4%9. National Bank of Indy 3%10. KeyBank 1%16. Lake City B
Slide 36: A Strong Environment for Growth and Expansion
36 A Strong Environment for Growth and Expansion • Indiana #1 manufacturing state in the country(1) • Manufacturing jobs increased 0.5% or 537,600 from February ‘22 to February ‘23(2) • U.S. Census Bureau announced Indiana’s population grew by 4.7% between 2010 and 2020 • Indiana unemployment at 3.1
Slide 37: Commitment to Technology and Cyber Risk Management
37 Commitment to Technology and Cyber Risk Management 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
Slide 38: Channel Utilization Over Three Year Horizon
38 Channel Utilization Over Three Year Horizon Mobile Channel Engagement Continues to Accelerate Three Year Change % of Total Total Transactions 2023(1) % of Total Total Transactions 2020(1) Channel Type (8)%15%2,064,32318%2,254,349Branch Transactions (9)%6%857,7807%947,292ATM/ITM (25)%27%3,686,8163
Slide 39: Customer Composition and Digital Adoption
39 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 3/31/213/31/223/31/23 Customer Breakdown Generation 45%49%52%17%Gen Z (1996 ‐ Current) 56%61%
Slide 40: Financial Performance
Financial Performance
Slide 41: Income Performance Metrics
41 Income Performance Metrics LKFN Performance Exceeds National and Indiana Peers and Maintains Strong Capital Levels 1.69% 1.76% 1.55% 1.56% 1.62% 1.54% 16.51% 15.47% 13.51% 14.19% 17.40% 16.81% 16.64% 15.57% 13.59% 14.27% 17.52% 16.92% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 0.
Slide 42: Net Income and EPS
42 Net Income and EPS Record Profitability in 2022 $80,411 $87,047 $84,337 $95,733 $103,817 $23,642 $24,278 $3.13 $3.38 $3.30 $3.74 $4.04 $0.92 $0.94 $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 2020 2021 2022 YTD 2022 YTD 2023 Net Incom
Slide 43: Pretax Pre-Provision Earnings
43 Pretax Pre‐Provision Earnings Significant Growth in Net Interest Income Offset by Decline in Noninterest Income $105,344 $110,620 $118,646 $118,521 $134,539 $28,598 $32,399 2.21% 2.24% 2.19% 1.93% 2.09% 1.74% 2.05% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% $0 $20,000 $40,000 $60,000 $80,000 $100,
Slide 44: Average Loans
44 Average Loans Average Loan Growth of $425 million or 10% for 2023 94% 94% 95% 83% 77% 86% 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 2023 Retail Commerci
Slide 45: Line of Credit Utilization
45 Line of Credit Utilization Line Availability Outpacing Utilization $1 ,7 15 $1 ,6 55 $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 ,6 12 $1 ,6 11 $1 ,8 06 $1 ,7 37 $1 ,7
Slide 46: Line of Credit Utilization vs. Commercial DDA
46 Line of Credit Utilization vs. Commercial DDA DDA Deposit Balances Remain Elevated in 2022 $3 89 ,0 51 $4 67 ,4 58 $5 72 ,9 66 $6 60 ,3 60 $6 20 ,1 74 $6 13 ,4 45 $6 79 ,0 78 $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
Slide 47: Loan Portfolio Breakdown
47 Loan Portfolio Breakdown C&I Drives Lending Business Commercial & Industrial $1,459,618 31% Commercial RE ‐ Owner Occupied $750,840 16% Commercial RE ‐ Nonowner Occupied $705,830 15% Commercial RE ‐Multifamily $217,274 4% Commercial RE ‐ Construction $591,812 12% Agri‐business ‐ Agriculture $392,
Slide 48: Top 10 Industry Concentrations
Multifamily Housing $480,648 10% Agriculture $455,042 9% Lessors of Nonresidential Buildings $213,754 4% RV Industry $205,690 4% Senior Living $154,627 3% Automobile Dealers $122,308 3% Restaurants $99,964 2% Hotels $99,501 2% Nondepository Credit Intermediation $98,152 2% Misc. Durable Goods Mercha
Slide 49: Average Deposits
49 Average Deposits Deposit Surge During Pandemic Abates in 2023 $4,093,894 $4,242,524 $4,650,597 $5,357,284 $5,717,358 $5,487,593 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
Slide 50: Deposit Breakdown
50 Deposit Breakdown Deposit Costs Rise in Response to Rising Competition and Interest Rate Environment Total Retail $1,894,707 34% Total Public Fund $1,356,851 25% Total Commercial $2,105,512 38% Brokered Deposits $160,658 3% March 31, 2023 Total Deposits ‐ $5.5 billion (000’s) 1.19% 0.98% 0.63% 0.
Slide 51: Public Fund Deposit Trends
51 Public Fund Deposit Trends Majority of Public Funds are Core Checking Account Deposits $6 29 ,8 92 $6 49 ,2 71 $6 38 ,3 49 $7 31 ,4 45 $7 52 ,7 45 $7 80 ,0 46 $7 21 ,2 03 $7 43 ,9 61 $6 95 ,9 81 $8 45 ,4 89 $8 28 ,1 57 $8 34 ,9 53 $7 92 ,0 55 $8 71 ,2 75 $9 04 ,1 53 $1 ,0 14 ,4 30 $1 ,0 81 ,8 65
Slide 52: Net Interest Income
52 Net Interest Income Growth in Net Interest Income Impacted by Higher Rates and Growth in Loans $151,271 $155,047 $163,008 $178,088 $202,887 $44,880 $51,519 3.43% 3.38% 3.19% 3.07% 3.40% 2.93% 3.54% 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 2
Slide 53: Asset Quality: Watchlist Loans
53 Asset Quality Watchlist Loans as a Percentage of Total Loans 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. 48 % 0. 37 % 1. 22 % 1. 82 % 2. 20 % 1. 75 % 1. 31 % 0. 41 % 0. 35 % 0. 16 % 0. 20 % 0. 16 % 0. 38 % 0. 21 % 0.
Slide 54: Asset Quality: Allowance for Credit Losses
54 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. 49 % 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% 1.50% 0.00% 0.30% 0.60%
Slide 55: Noninterest Income
55 Noninterest Income Growth in Fee Generating Lines of Business is Offset by Volatile Market Driven Activity $40,302 $44,997 $46,843 $44,720 $41,862 $10,687 $10,314 21% 22% 22% 20% 17% 19% 17% 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 $50,0
Slide 56: Total Revenue
56 2023 YOY Increase 11% Total Revenue Revenue Growth Benefited by Core Loan Growth and Rising Rates $191,573 $200,044 $209,851 $222,808 $244,749 $55,567 $61,833 $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 57: Non-Interest Expense
57 Non‐Interest Expense Disciplined Operating Expense Management $86,229 $89,424 $91,205 $104,287 $110,210 $26,969 $29,434 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2018 2019 2020 2021 2022 YTD 2022 YTD 2023 (000’s) 2023 YOY Increase 9%
Slide 58: Efficiency Ratio
58 Efficiency Ratio Revenue Growth Outpaces Expense Growth 51% 52% 50% 50% 48% 46% 45% 45% 43% 47% 45% 48% 0% 10% 20% 30% 40% 50% 60% 70% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD 2023 Constant investment in technology and facilities
Slide 59: Stable Healthy Dividend
59 Stable Healthy Dividend Growth in Dividend Reflects Strength of Capital $1.00 $1.16 $1.20 $1.36 $1.60 $0.40 $0.46 2.25% 2.40% 2.24% 1.70% 2.19% 2.20% 2.94% 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 60: LKFN Shareholder Value Total Return Performance
60 LKFN Shareholder Value Total Return Performance from 12/31/00 to 3/31/23 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LKFN S&P 500 S&P US BMI Banks Index S&P 500 Financials 3,500.00 3,000.00 2,500.00 2,000.00 1,500.00 1,000.00
Slide 61: Investment Highlights
61 Investment Highlights • Proven History of Organic Growth •Disciplined and Focused Strategy • Strong Internal Culture • Consistent Execution • Service Excellence Drives Shareholder Value
Slide 62: Supplemental Information
Supplemental Information
Slide 63: Commercial Loans by County
63 Commercial Loans by County Commercial Customers in 46 Indiana Counties and 22 Other States Allen 16% Elkhart 15% St. Joseph 8% Kosciusko 11% Hamilton 9% Marion 13% Marshall 4% Other IN Counties (1) 18% Outside IN 6% Commercial Loans Outstanding as of 3/31/2023 $4.8 billion (1) All other counties
Slide 64: Larger Market Organic Expansion
64 Larger Market Organic Expansion Organic Growth # of Branches LCB Deposit Market Share** LCB EntryPopulation*Primary CityCounty State Rank 1260%187280,106WarsawKosciusko 22. 1123%1990206,921ElkhartElkhart6. 49%1997272,212South BendSt. Joseph5. 513%1999388,608Fort WayneAllen3. 61%20111,492,050India
Slide 65: Mature Market Strength and Growth
65 Mature Market Strength and Growth Organic Growth 2022 # of Offices 20122022 (millions)1 IncreaseShareDepositsShareDeposits 5398.08%14.77%$2,55018.67%$5,0511. 1st Source 52101.62%14.30%$2,46918.40%$4,9782. Lake City Bank 20155.81%8.82%$1,52314.40%$3,8963. JPM Chase 1747.72%7.24%$1,2496.82%$1,8454.
Slide 66: Lake City Bank
5 Qiake City Bank LAKECITYBANK.COM