Lakeland Financial Corporation · NASDAQ:LKFN
Lakeland Financial — Shareholder Meeting (2016)
23 slides from Lakeland Financial's shareholder meeting presentation, 2016
Slide 1: 2016 Annual Meeting
5 2016 ANNUAL MEETING THE LARGEST BANK 100% INVESTED IN INDIANA. @oake 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 4 Institutions LTM (including LKFN) ROE >12% Consecutive Increases in Net Income Since 2009(3) 16 Institutions Profitable for the Last 10 Years(2) 73 Institutions Exchange Traded Depositories with Assets Between $1B and $5B(1) 181 Institutions Source: SNL Financial. Fina
Slide 4: A Quarter Century of Strong Organic Growth
A Quarter Century of Strong Organic Growth Record Net Income for 26 of 27 Years (000’s) $46,367 $50,000 Compound Annual Growth $45,000 1991 – 2015 $40,000 • Loans = 12% $35,000 • Deposits = 11% • Net Income = 13% $30,000 $25,000 $20,000 $15,000 $10,000 $2,707 $5,000 $0 1991 1992 1993 1994 1995 1996
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: 2016 Strategic Plan
2016 Strategic Plan A Continued Commitment to Execution, Culture and Performance
Slide 7: Established Market Presence
Established Market Presence 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 4 offices +1 under development
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.
Slide 9: 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 10: 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 11: Financial Performance
Financial Performance LAKELAND FINANCIAL CORPORATION LAKE CITY BANK
Slide 12: Income Performance Metrics
Income Performance Metrics LKFN performance exceeds National and Indiana Peers 14.00% 12.98% 1.90% 12.76% 12.55% 12.45% 13.00% 12.05% 12.77% 12.50% 12.00% 1.70% 12.30% 12.26% 11.78% 11.00% LTM Peer Data(1) 1.50% National Indiana 10.00% 8.10% 8.59% 9.00% 1.30% 1.32% 1.29% 1.29% 8.00% 1.19% 1.10% LTM
Slide 13: Net Income and EPS
Net Income and EPS Record Net Income and EPS $50,000 $46,367 $43,805 $2.80 $45,000 $2.75 $40,000 $38,839 $2.61 $35,394 $2.30 $35,000 $2.33 $30,662 $2.15 $30,000 $1.80 $1.88 $25,000 $20,000 $1.30 $15,000 $10,000 $0.80 $5,000 $0 $0.30 2011 2012 2013 2014 2015 Net Income Diluted EPS 2015 Net Income Gro
Slide 14: Average Loans
Average Loans Commercial Emphasis Drives Growth $3,000,000 $2,885,568 $2,650,678 120% $2,343,422 $2,500,000 $2,148,046 $2,216,131 100% $2,000,000 95% 93% 93% 93% 87% 80% $1,500,000 60% $1,000,000 $500,000 40% $0 20% 2011 2012 2013 2014 2015 Retail Commercial Loans to Deposits 2015 Growth 9%
Slide 15: Loan Breakdown
Loan Breakdown C&I Drives Lending Business Residential Mortgage $158,062 Other Commercial 5% Agri-business - Agriculture Commercial RE - Construction $85,075 $306,094 Home Equity $230,719 3% 10% $163,700 8% 5% Commercial RE - Multifamily Installment - Other Consumer $79,425 $59,210 3% 2% Commercial
Slide 16: Efficiency Ratio
Efficiency Ratio Revenue Growth is Primary Driver of Low Efficiency Ratio 60% Indianapolis and South Fishers and Clearwater Indianapolis – Bend Market Expansion offices in Indianapolis Michigan Road 55% 52% 52% 50% 51% 50% 50% 48% 47% 45% 40% 2009 2010 2011 2012 2013 2014 2015
Slide 17: Asset Quality
Asset Quality Strong Reserve Coverage 0.30% 2.70% 2.39% 2.28% Reserve to 2.40% Nonperforming Loan Loss Reserve to Total Loans 0.25% Loans = 334% Net Chargeoffs/Average Loans 1.92% 2.10% 0.20% 1.67% 1.80% 1.42% 1.50% 0.15% 1.20% 0.10% 0.90% 0.60% 0.05% 0.30% 0.25% 0.20% 0.11% 0.10% 0.09% 0.00% 0.00%
Slide 18: Stable Healthy Dividend
Stable Healthy Dividend Significant Increase in Dividend Reflects Strength of Balance Sheet Dividend Payout Ratio of 35% $0.98 $1.00 $0.84 $0.90 $0.76 $0.80 $0.68 $0.62 $0.62 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 2010 2011 2012 2013 2014 2015 Annualized 2015 Growth 17%
Slide 19: Long Term Shareholder Value
Long Term Shareholder Value Lakeland Financial Corporation - Price Change (%) w= LKFN (+514.96%) === KBW Nasdaq Bank (-14.51%) wee SNL U.S. Bank (6.33%) === NASDAQ Bank (+59.21%) == S&P 500 (+39.51%) 600, 400) Price Change (%) -200) T T T T T T T T T T T T T T T T 2000 2001 2002 2003 2004 2005 2006
Slide 20: The Kubacki Impact
The Kubacki Impact 1998 to 2016
Slide 21: The Kubacki Impact
The Kubacki Impact 1998 2015 Change Total Assets (000) $979 $3,766 +285% Tangible Book Value Per Share $3.77 $23.42 +521% Stock Price $9.25 $46.62 +404% Market Capitalization (000,000) $107 $771 +621% Source: SNL for December 31
Slide 22: Thanks for your leadership, vision and friendship.
“It’s all good.” --Mike Kubacki Thanks for your leadership, vision and friendship.
Slide 23: Lake City Bank
Qiake City Bank (800) 827-4522 LAKECITYBANK.COM