Lakeland Financial (LKFN) investor relations material

Executive summary

• Net income for 2025 rose 6% year-over-year to $103.8 million, with diluted EPS up 6% to $4.50; for the first nine months, net income was $73.5 million, and Q3 net income increased 13% to $26.4 million.

• Growth was driven by higher net interest income, lower provision for credit losses, and consistent loan and deposit growth, partially offset by lower noninterest income and higher noninterest expense.

• Core operational profitability improved 12.7% year-over-year to $73.5 million for the nine months ended September 30, 2025.

• Total assets reached $6.895 billion, up 3.2% from December 31, 2024, with total equity up 9.3% to $747.5 million.

• Opened 55th branch in Westfield, Indiana, and expanded Indianapolis presence.

Financial highlights

• Net interest income for 2025 increased 13% year-over-year, reaching $163.8 million for the first nine months and $56.1 million in Q3.

• Average loans grew by $184 million (4%) and average deposits by $224 million (4%) compared to the prior year.

• Noninterest income decreased 21% year-over-year for the nine months, but core noninterest income rose 1% and Q3 noninterest income increased 9%.

• Noninterest expense increased 4% year-over-year, with core noninterest expense up 9%.

• Provision for credit losses decreased 9.6% year-over-year to $11.8 million for the nine months; Q3 provision was $2.0 million, down 34.6%.

Outlook and guidance

• Management expects continued growth in loans and deposits, supported by branch expansion and a strong capital position.

• Asset-sensitive balance sheet expected to maintain a neutral interest rate risk profile, with deposit costs repricing downward as the Federal Funds Rate declines.

• Loan growth is anticipated to be funded by principal and interest cash flows from the investment securities portfolio.

• The company continues to monitor economic and market conditions, focusing on credit quality and interest rate risk.