Lakeland Financial (LKFN) investor relations material

Executive summary

• Achieved 17% year-over-year net income growth and 19% increase in diluted EPS for the first half of 2026, with 8% total revenue growth and 14% noninterest income growth; Q2 2026 net income was $28.4 million, up 5% year-over-year, and diluted EPS reached $1.13, up 9%.

• Maintained a strong capital position with risk-based capital ratio at 15.61% and tangible common equity to tangible assets at 10.63%.

• Continued organic growth with average loans up 5% and average deposits up 3% year-over-year; commercial and industrial loans grew 10%, and consumer 1-4 family mortgage loans up 16%.

• Efficiency ratio remained stable at 45% for the first half, while Q2 2026 was 48.6%, improving from Q1 2026.

• Opened two new branch locations in Indianapolis, with further expansion planned.

Financial highlights

• Net interest income rose 7% year-over-year, driven by loan growth and net interest margin expansion to 3.49%; Q2 2026 net interest income was $58.3 million, up 6%.

• Noninterest income increased 14% year-over-year for the first half, with Q2 2026 up 9% to $12.6 million.

• Noninterest expense increased 13% year-over-year in Q2 2026, mainly due to higher salaries, benefits, and technology investments.

• Dividend per share increased 4% year-over-year, with an 11% CAGR over five years.

• Pretax pre-provision earnings increased 6% year-over-year.

Outlook and guidance

• Focus remains on commercial banking, core deposit funding, and technology-driven service delivery; management expects continued benefit from a steepening yield curve and maintains a neutral interest rate posture.

• Indiana’s economic outlook is strong, with significant investments in manufacturing, life sciences, and technology sectors supporting future growth.