Lakeland Financial (LKFN) investor relations material

Executive summary

• Achieved 11% year-over-year net income growth to $103.4 million and 10% EPS growth in 2025, with Q4 net income at a record $29.9 million, up 24% year-over-year.

• Net interest income rose 12% for the year, with total revenue up 10% and core operational profitability improving 16% year-over-year.

• Maintained a strong capital structure, with tangible common equity at 92.8% and a 34-year tangible book value CAGR of 10%.

• Demonstrated consistent organic growth, doubling deposits over the last decade and expanding in both mature and high-growth Indiana markets.

• Diluted EPS for Q4 2025 was $1.16, up 23% year-over-year; full-year diluted EPS increased to $4.04.

Financial highlights

• Net income for 2025 reached $103.4 million, with diluted EPS of $4.04; Q4 2025 net income was $29.9 million.

• Net interest margin expanded by 23 basis points over the prior four quarters, reaching 3.48% in Q4 2025.

• Average loans grew 4% and average deposits grew 3% compared to the prior year; commercial and industrial loans grew 7% year-over-year.

• Core noninterest income increased 2% year-over-year, while noninterest expense rose 9% on a core basis; full-year noninterest expense increased 5%.

• Dividend per share increased 4% to $2.00, with an 11% five-year CAGR; board approved a 4% increase in quarterly dividend to $0.52 per share.

Outlook and guidance

• Focus remains on organic growth, core deposit funding, and technology investment, with plans for accelerated branch development in key Indiana markets.

• Management expects continued stability in net interest margin in 2026, supported by a neutral interest rate position and ongoing Federal Reserve easing.