Lakeland Financial (LKFN) investor relations material

Executive summary

• Net income for the first six months of 2025 rose 2.4% year-over-year to $47.1 million, with diluted EPS up 2.2% to $1.82; Q2 net income increased 19.6% to $27.0 million, with diluted EPS up 19.5% to $1.04.

• Achieved record Q2 net income of $27.0M, up 20% year-over-year and 34% sequentially; EPS rose 20% to $1.04 year-over-year and 33% sequentially.

• Strong loan and deposit growth, with healthy balance sheet expansion and continued business development success.

• Core operational profitability improved 12.5% year-over-year to $47.1 million for the six months and 40.5% to $27.0 million for Q2, excluding non-routine items from 2024.

• Total assets grew 4.3% since year-end to $6.964 billion, driven by loan and deposit growth; total equity increased 3.8% to $710.0 million.

Financial highlights

• Net interest income for the first half of 2025 increased 12.6% to $107.8 million; Q2 net interest income rose 14% year-over-year to $54.9M.

• Net interest margin expanded to 3.41% for the six months and 3.42% for Q2, up 25 basis points year-over-year.

• Core deposits grew 8% year-over-year to $6.03B; total deposits up 7% to $6.18B.

• Noninterest income declined 44% year-over-year due to a $9M Visa gain in 2024; adjusted core noninterest income stable.

• Noninterest expense decreased 1.3% to $63.2 million for the six months and 8.7% to $30.4 million for Q2, reflecting the absence of a prior-year legal accrual.

Outlook and guidance

• Management expects continued downward pressure on loan yields if monetary policy easing persists, but anticipates further reductions in deposit pricing could offset margin compression.

• Management expects strong capital to support continued organic balance sheet and loan growth, with a focus on Indiana markets.

• Dividend growth and capital retention remain priorities to fund expansion and shareholder returns.

• The company expects to collect the remaining balance of the previously charged-off industrial loan through sale and liquidation proceeds and personal guarantees.

• The investment portfolio is expected to provide $54.5 million in principal and interest cash flows for the remainder of 2025, supporting loan growth and reinvestment.