Lakeland Financial Corporation · NASDAQ:LKFN
Lakeland Financial — Q1 2025 Earnings Presentation
62 slides from Lakeland Financial's earnings presentation, Apr 25, 2025
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 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: Bank Director Magazine – Top U.S. Banks
4 Bank Director Magazine – Top U.S. Banks
Slide 5: Long Term Success for Shareholders
5 Long Term Success for Shareholders LTM ROE >13% Source: S&P Capital IQ Pro. Financial data is as of December 31, 2024. (1) Includes banks and thrifts traded on the NYSE, NYSEAM or NASDAQ as of 4/7/25; excludes merger targets. (2) Defined as having positive net income before extraordinary items and
Slide 6: Strong Capital Structure
Tangible Common Equity 92.0% Allowance for Credit Losses 8.0%$3 3. 22 $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 20 25 Tangible Book Value(1) Per Share 6 Strong Capital Structure Key Rati
Slide 7: Lake City Bank Today
7 Lake City Bank Today •A long‐term and consistent organic growth story •Headquartered in Warsaw, Indiana • 54 branch offices ‐ $6.9 billion banking assets ‐ $3.3 billion trust, retirement and investment brokerage assets • Focused on execution – “blocking and tackling” • Continued growth potential
Slide 8: Years of Organic Growth
8 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 9: Established Market Presence
9 Established Market Presence Organic Growth Potential in Mature and Expanding Markets
Slide 10: A Continued Path to Economic Growth
10 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 11: Expansion and Innovation Occurring Throughout Indiana
11 Expansion and Innovation Occurring Throughout Indiana • Indiana #1 manufacturing state in the country(1) • Indiana received tech hub designations from the federal government in microelectronics, hydrogen energy and biotechnology.(2) • Indiana to host semiconductor event in 2025. The state has att
Slide 12: Strong Regional and Statewide Economy
12 Strong Regional and Statewide Economy Indiana Unemployment Rate is Lower than the National Average 8. 8% 6. 5% 5. 2% 4. 6% 3. 8% 3. 3% 3. 7% 3. 0% 11 .3 % 4. 5% 2. 4% 3. 3% 4. 2% 4. 2% 9. 0% 6. 9% 5. 6% 5. 1% 4. 3% 3. 8% 4. 1% 3. 4% 11 .9 % 4. 7% 3. 4% 3. 8% 4. 2% 4. 5% 8. 1% 7. 0% 5. 8% 5. 2% 4.
Slide 13: Fortress Balance Sheet and Capital in Excess of Requirements
13 Fortress Balance Sheet And Capital In Excess of Requirements LKFN Above Peer Long‐Term Profitability has Contributed to a Strong Capital Foundation 13.3% 15.8% 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 Q4'23 Q
Slide 14: Quarterly Net Interest Margin
14 Quarterly Net Interest Margin Healthy Margin Expansion Underway 3.15% 3.17% 3.16% 3.25% 3.40% 3.00% 3.50% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Quarterly NIM
Slide 15: Net Interest Margin: Deposit Costs Coming Down
15 Net Interest Margin Deposit Costs Coming Down Rapidly • Noninterest bearing deposits to total deposits were 22% unchanged from the fourth quarter 2024 • Linked quarter net interest margin expanded by 15 basis points in 1Q25 compared to 4Q24 • Cumulative Loan Beta 37% for recent easing cycle • Cum
Slide 16: Interest Rate Sensitivity
16 Interest Rate Sensitivity Deposits Have Repriced Quicker Than Loans During Current Easing Cycle Fixed Rate $1,538,105 33% Prime $1,103,231 24% SOFR $1,387,148 30% FHLB/Other $594,601 13% Commercial Loans $4.6 billion as of March 31, 2025 (000’s) • 89% of loan portfolio consists of commercial loan
Slide 17: Projected Impact of Rising/Falling Rates
17 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 March 31, 2025, using parallel shocks ‐3.34% ‐1.48% ‐0.51% ‐0.19% ‐0.07% 0.02% 0.03% 0.01% (0.12%) (0.29%) ‐4.00% ‐2.00% 0.
Slide 18: Deposit Composition Provides Diversification
18 Deposit Composition Provides Diversification Strong Commercial Deposit Growth Total Retail $1,787,992 30% Total Public Fund $1,709,883 29% Total Commercial $2,336,910 39% Brokered Deposits $125,409 2% March 31, 2025 Total Deposits ‐ $6.0 billion DDA $1,296,907 DDA % of Total Deposits – 22% (000’s
Slide 19: Diversified Deposit Base
19 Diversified Deposit Base Deposit Franchise Consists of Broad‐based and Deep Relationships • Deposit composition has remained stable with commercial deposits increasing as a percent of total deposits • 98% of deposit accounts are less than $250,000 at March 31, 2025 • Public Funds in Indiana are c
Slide 20: Public Fund Deposit Trends
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 Checking and MMA CDs 20 Public Fund Deposit Trends 83% of Public Fund Deposits are Operating Relationships $1 ,2 11 ,1 48 $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
Slide 21: Checking Account Trends by Deposit Sector
21 Checking Accounting Trends by Deposit Sector Commercial Accounts Grow by 22% since December 2019 $1 ,1 05 ,2 67 $1 ,9 53 ,9 69 $2 ,1 05 ,4 11 $2 ,1 29 ,9 52 $2 ,2 03 ,6 90 $6 58 ,4 51 $1 ,0 73 ,3 14 $9 37 ,4 58 $9 71 ,8 52 $9 74 ,6 09 $8 34 ,9 53 $1 ,3 82 ,5 65 $1 ,3 09 ,9 65 $1 ,6 20 ,4 60 $1 ,5
Slide 22: Shareholder Value Strategy
22 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 23: Commercial Banking Focus
23 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 24: Credit Process
24 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 25: Corporate Social Responsibility
25 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 customer‐focused loan and deposit products to our communities • Developing strong
Slide 26: Lake City Bank Culture
26 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 27: Mature Market Deposit Performance
27 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 28: Commitment to Technology
28 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 29: Channel Utilization Today versus Pre-Pandemic
29 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%2,046,57118%2,279,975Branch Transactions (22)%5%740,3767%944,785ATM/ITM (27)%25%3,685,
Slide 30: Customer Composition and Digital Adoption
30 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 3/31/233/31/243/31/25 Customer Breakdown Generation(1) n/a1%3%4%Gen Alpha (2010 ‐
Slide 31: Financial Performance
Financial Performance
Slide 32: Income Performance Metrics
32 Income Performance Metrics LKFN Performance Exceeds National Peers and Contributes to Strong Capital Levels 1.55% 1.56% 1.62% 1.45% 1.40% 1.20% 13.51% 14.19% 17.40% 15.93% 14.12% 11.70% 13.59% 14.27% 17.52% 16.03% 14.20% 11.77% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 0.
Slide 33: Net Income and EPS
33 Net Income and EPS Revenue Growth of 6% in 2025 $84,337 $95,733 $103,817 $93,767 $93,478 $23,401 $20,085 $3.30 $3.74 $4.04 $3.65 $3.63 $0.91 $0.78 $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 2025 Net Incom
Slide 34: Pretax Pre-Provision Earnings
34 Pretax Pre‐Provision Earnings Pretax Pre‐Provision Earnings Improves by 6% in 2025 $118,646 $118,521 $134,539 $116,183 $128,439 $29,323 $31,040 2.19% 1.93% 2.09% 1.80% 1.93% 1.80% 1.87% 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 35: Average Loans
35 Average Loans Average YTD Loan Growth of $215 million or 4% Compared to Prior Year 95% 83% 77% 86% 86% 88% 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 36: Line of Credit Utilization
$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 ,8 88 $1 ,8 07 $1 ,8 68 $1 ,8 37 $1 ,8 93 $1 ,9 03 $1 ,8 66 $1 ,9 59 $1 ,7 85 $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
Slide 37: Line of Credit Utilization vs. Commercial DDA
37 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 $8 83 ,9 56 $1 ,2 16 ,4 14 $1 ,2 18 ,9 43 $1 ,2 73 ,8 86 $1 ,3 39 ,6 73 $1 ,4 62 ,9 35 $1 ,4 93 ,2 45 $1 ,5 71 ,9 6
Slide 38: Loan Portfolio Breakdown
38 Loan Portfolio Breakdown C&I Drives Lending Business Commercial & Industrial $1,523,570 29% Commercial RE ‐ Owner Occupied $804,933 16% Commercial RE ‐ Nonowner Occupied $852,033 16% Commercial RE ‐Multifamily $339,946 7% Commercial RE ‐ Construction $623,905 12% Agri‐business ‐ Agriculture $383,
Slide 39: Top 10 Industry Concentrations
Multifamily Housing $722,752 14% Agriculture $450,452 9% Industrial CRE $252,170 5% RV Industry $214,656 4% Senior Living $124,663 2% Automobile Dealers $124,800 2% Restaurants $108,129 2% Nonbank Lenders $103,607 2% Hotels $119,047 2% Misc. Durable Goods Merchant Wholesalers $105,703 2% 39 Top 10 I
Slide 40: Average Deposits
40 Average Deposits Average YTD Deposit Growth of $244 million or 4% Compared to Prior Year $4,650,597 $5,357,284 $5,717,358 $5,604,228 $5,836,025 $5,874,725 98% 99% 100% 97% 99% 98% 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 $6,000,00
Slide 41: Deposit Breakdown
41 Deposit Breakdown Deposit Costs Are Repricing Downward with Federal Funds Rate Cuts Total Retail $1,787,992 30% Total Public Fund $1,709,883 29% Total Commercial $2,336,910 39% Brokered Deposits $125,409 2% March 31, 2025 Total Deposits ‐ $6.0 billion (000’s) 0.00% 1.00% 2.00% 3.00% 20 11 20 12 2
Slide 42: Net Interest Income
42 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 $47,416 $52,875 3.19% 3.07% 3.40% 3.31% 3.18% 3.15% 3.40% 2.50% 3.00% 3.50% 4.00% 4.50% $0 $50,000 $100,000 $150,000 $200,000 $250,000
Slide 43: Asset Quality: Nonperforming Loans
43 Asset Quality Nonperforming Loans Rise Due Primarily to a Single Commercial Credit 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 % 1. 10 % 1. 22 % 1. 82 % 2. 20 % 1. 75 % 1. 31 % 0. 41 % 0. 35 % 0. 16 % 0. 20 % 0. 16
Slide 44: Asset Quality: Allowance for Credit Losses
44 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. 13 % 0. 05 % 0. 03 % 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% 1.46% 1
Slide 45: Noninterest Income
45 Noninterest Income Wealth Advisory Group and Treasury Management Fees Continue to Grow $46,843 $44,720 $41,862 $49,858 $56,844 $12,612 $10,928 22% 20% 17% 20% 22% 21% 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 YTD 2025 N
Slide 46: Total Revenue
46 2025 YOY Increase 6% Total Revenue Revenue Growth Benefits from Double Digit Growth in Net Interest Income $209,851 $222,808 $244,749 $246,893 $253,523 $60,028 $63,803 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2020 2021 2022 2023 2024 YTD 2024 YTD 2025 (000’s) Compound annual growth
Slide 47: Noninterest Expense
47 Noninterest Expense $91,205 $104,287 $110,210 $130,710 $125,084 $30,705 $32,763 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 2020 2021 2022 2023 2024 (1) YTD 2024 YTD 2025 (000’s) 2025 YOY Increase 7% Disciplined Investment in People and Technology Continues Compound annual growt
Slide 48: Efficiency Ratio
48 Efficiency Ratio Efficiency Ratio is Stable 51% 52% 50% 50% 48% 46% 45% 45% 43% 47% 45% 53% 49% 51% 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 49: Stable Healthy Dividend
49 Stable Healthy Dividend Growth in Dividend Reflects Strength of Capital $1.20 $1.36 $1.60 $1.84 $1.92 $0.48 $0.50 2.24% 1.70% 2.19% 2.82% 2.79% 2.90% 3.36% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% $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 YTD 2024 YTD 2
Slide 50: LKFN Shareholder Value Total Return Performance
50 LKFN Shareholder Value Total Return Performance from 12/31/00 to 3/31/25 (500.00) 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 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
Slide 51: Investment Highlights
51 Investment Highlights • Proven History of Organic Growth •Disciplined and Focused Strategy • Strong Internal Culture • Consistent Execution • Service Excellence Drives Shareholder Value
Slide 52: Supplemental Information
Supplemental Information
Slide 53: Lake City Bank Capital Adequacy
53 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 March 31, 2025 Actual Regulatory Ratio Des
Slide 54: Robust Liquidity Sources
54 Robust Liquidity Sources • Available liquidity is stable at $3.5 billion, an increase from $3.1 billion at March 31, 2024 • Sources of liquidity are varied and represent wholesale funding and brokered deposits • Brokered deposits represent 2% of total deposits • Noncore funding represented 4% of
Slide 55: Liquidity Availability
Additional Loan Collateral Available for PledgeUnused/ AvailableUsed Liquidity Availability(000) Secured/Committed Borrowings: $ ‐‐$ 447,624$ 108,200$ 555,824Federal Home Loan Bank‐Indianapolis(1) 174,3461,360,408‐‐1,364,475Federal Reserve Bank Discount Window $ 174,346 $ 1,808,032$ 108,200$ 1,916,2
Slide 56: Investment Portfolio
56 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 57: Investment Security Portfolio Cashflows
57 Investment Security Portfolio Cashflows Cash Flows of $406 million Expected Through March 2029 20 ,4 35 19 ,3 80 18 ,2 22 20 ,5 20 17 ,5 76 18 ,7 41 17 ,1 28 15 ,5 27 17 ,3 60 15 ,8 12 14 ,6 54 15 ,3 01 25 ,6 29 15 ,3 91 18 ,1 59 14 ,6 54 7, 81 2 8, 79 7 7, 58 0 8, 58 9 7, 38 6 8, 31 9 7, 19 2 8,
Slide 58: Investment Portfolio Analysis
Investment Portfolio Analysis Investment Portfolio as a Percentage of Total Assets Continues to Decline 58 12/31/20243/31/2025 % of Total Market Value Weighted Maturity % of Total Market Value Weighted Maturity 8%85,7946.059%95,9995.83US Govt REMICS 30%336,6156.8331%342,9196.84US Govt Pools 10%109,4
Slide 59: Commercial Loans by County
59 Commercial Loans by County Commercial Customers in 49 Indiana Counties and 21 Other States (1) All other counties individually represent less than 2% of total March 31, 2025 (000’s) Allen 18% Elkhart 13%St. Joseph 8% Kosciusko 9% Hamilton 10% Marion 16% Marshall 3% Other IN Counties (1) 17% Outsi
Slide 60: Larger Market Organic Expansion
60 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 61: Mature Market Strength and Growth
61 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 62: Lake City Bank
Qiake City Bank LAKECITYBANK.COM