Lakeland Financial Reports Record Performance

Second Quarter Net Income Increases 13 percent


WARSAW, Ind., July 25, 2016 (GLOBE NEWSWIRE) -- Lakeland Financial Corporation (Nasdaq:LKFN), parent company of Lake City Bank, today reported record quarterly net income of $12.8 million for the second quarter of 2016, an increase of 13%, versus $11.4 million for the second quarter of 2015. Diluted net income per common share of $0.76 for the second quarter of 2016 also represents a quarterly record and an increase of 12%, versus $0.68 for the comparable period of 2015. On a linked-quarter basis net income increased by 4% or $524,000 from $12.3 million for the first quarter ended March 31, 2016.

The company further reported record net income of $25.1 million for the six months ended June 30, 2016 versus $22.5 million for the comparable period of 2015, an increase of 11%. Diluted net income per common share was also a record for the period and increased 10% to $1.48 for the six months ended June 30, 2016 versus $1.34 for the comparable period of 2015.

David M. Findlay, President and CEO, commented, “The Lake City Bank team is very proud of this record quarterly and year-to-date performance. We continue to be focused on the healthy growth of our balance sheet and taking care of clients in our communities each and every day. It’s a combination that has produced disciplined and strategic growth in our Indiana markets over a long period of time.”  

Highlights for the quarter are noted below:

2nd Quarter 2016 versus 2nd Quarter 2015 Highlights:

  • Organic average loan growth of $340 million or 12%
  • Average deposit growth of $371 million or 12%
  • Net interest income increase of $3.2 million or 12%
  • Continued strong asset quality with nonperforming assets to total assets at 0.24%
  • Tangible common equity increase of 12%

2nd Quarter 2016 versus 1st Quarter 2016 Highlights:

  • Organic average loan growth of $103 million or 3%
  • Core deposit growth of $160 million or 5%
  • Net interest income increase of $691,000 or 2%
  • Noninterest income increase of $1.0 million or 15%
  • Continued strong asset quality with loan loss reserve to nonperforming loans at 464%

Findlay noted, “We are particularly pleased with the continued loan and deposit growth that our retail and commercial banking teams are producing. At our core, we understand that an important part of our mission is to provide our clients with competitively priced and structured products and this overall growth is reflective of our success in delivering on this front.”

As previously announced, the board of directors approved a cash dividend for the second quarter of $0.28 per share, payable on August 5, 2016, to shareholders of record as of July 25, 2016. The quarterly dividend represents a 14% increase over the $0.245 quarterly dividends paid in the last three quarters of 2015 and in the first quarter of 2016.

On July 13, 2016, the company further announced that the board of directors approved a three-for-two common stock split that will be paid on August 5, 2016 in the form of a stock dividend to shareholders of record as of July 25, 2016. All per share data presented in this press release is prepared on a pre-split basis.

Findlay observed, “We’ve built a strong balance sheet with a conservative capital position that also has allowed us to pay a consistently healthy dividend. We further believe that the stock split is a reflection of our long-term value creation for shareholders. Over the past 10 years, our total return for shareholders, which reflects stock price performance and dividends, has increased by approximately 175%.”

Return on average total equity for the first six months of 2016 was 12.43% compared to 12.25% in the prior year period. Return on average assets for the first six months of 2016 was 1.29% compared to 1.30% in the same period of 2015. Total capital as a percent of assets was 13.65% at June 30, 2016, compared to 13.83% at June 30, 2015 and 13.72% at March 31, 2016. The company’s tangible common equity to tangible assets ratio was 10.57% at June 30, 2016, compared to 10.44% at June 30, 2015 and 10.61% at March 31, 2016.

Average total loans for the second quarter of 2016 were $3.19 billion, an increase of $340.2 million, or 12%, versus $2.85 billion for the comparable period of 2015. Total loans outstanding grew $304.5 million, or 11%, from $2.89 billion as of June 30, 2015 to $3.20 billion as of June 30, 2016. On a linked quarter basis, average total loans increased by $103.2 million, or 3%, from $3.09 billion for the first quarter of 2016 to $3.19 billion for the second quarter of 2016.

Average total deposits for the second quarter of 2016 were $3.44 billion, an increase of $371.0 million, or 12%, versus $3.07 billion for the corresponding period of 2015. Total deposits grew $383.3 million, or 13%, from $3.02 billion as of June 30, 2015 to $3.40 billion as of June 30, 2016. In addition, total core deposits, which exclude brokered deposits, increased $391.3 million, or 13%, from $2.90 billion at June 30, 2015 to $3.29 billion at June 30, 2016.

The company’s net interest margin was 3.24% in the second quarter of 2016, compared to 3.18% for the second quarter of 2015. The higher margin in the second quarter of 2016 was due to higher yields on both loans and securities, partially offset by a higher cost of funds. The net interest margin was 3.26% in the linked first quarter of 2016. On a quarter-linked basis, cost of funds increased by 3 basis points but was offset by improved earning asset yields of 1 basis point. The company’s net interest margin for the six months ended June 30, 2016 was 3.24% compared to 3.23% in the prior year six month period. 

Findlay further commented, “The absence of any action by the Federal Reserve Bank will continue to create challenges for the industry, and for Lake City Bank. While we are pleased with our net interest margin performance in 2016, we believe, pressure will continue until we see some relief in the form of rate action by the Federal Reserve Bank.”

Net interest income increased $3.2 million, or 12%, to $29.3 million for the second quarter of 2016, versus $26.1 million in the second quarter of 2015. Net interest income for the six months ended June 30, 2016 increased $6.1 million, or 12%, to $57.9 million, versus $51.8 million for the six months ended June 30, 2015.

For the fourteenth consecutive quarter, the company did not record a provision for loan losses. The absence of a provision for loan losses was generally driven by continued stability in key loan quality metrics, including appropriate reserve coverage of nonperforming loans, a decrease in historical loss percentages, stable economic conditions in the company’s markets and sustained signs of improvement in its borrowers’ performance and future prospects. The company’s allowance for loan losses as of June 30, 2016 was $43.2 million compared to $44.8 million as of June 30, 2015 and $43.3 million as of March 31, 2016. The allowance for loan losses represented 1.35% of total loans as of June 30, 2016 versus 1.55% at June 30, 2015 and 1.39% as of March 31, 2016. The allowance for loan losses as a percentage of nonperforming loans was 464% as of June 30, 2016, versus 312% as of June 30, 2015, and 571% as of March 31, 2016.

Nonperforming assets decreased $5.0 million, or 35%, to $9.6 million as of June 30, 2016 versus $14.6 million as of June 30, 2015. On a linked quarter basis, nonperforming assets were $1.7 million higher than the $7.8 million reported as of March 31, 2016. The increase in nonperforming assets from the linked quarter was primarily due to placing a single $2.0 million commercial credit in nonaccrual status. The ratio of nonperforming assets to total assets at June 30, 2016 declined to 0.24% from 0.41% at June 30, 2015 and was 0.21% at March 31, 2016. Net charge-offs totaled $36,000 in the second quarter of 2016 versus net charge-offs of $861,000 during the second quarter of 2015 and net charge-offs of $326,000 during the linked first quarter of 2016.

The company’s noninterest income increased 5% to $8.1 million for the second quarter of 2016 versus $7.7 million for the second quarter of 2015. Noninterest income was positively impacted by increases in recurring fee income for service charges on deposit accounts, merchant card fee income and mortgage banking income. The company’s noninterest income decreased 3% to $15.1 million for the six months ended June 30, 2016 compared to $15.5 million in the prior year period. Noninterest income was negatively impacted by decreases in other income due primarily to credit valuation adjustment losses related to the company’s swap arrangements of $605,000, as well as a $226,000 write down to a property formerly used as a Lake City Bank branch that is held for sale.

The company’s noninterest expense increased by 10% to $18.4 million in the second quarter of 2016 compared to $16.7 million in the second quarter of 2015. Salaries and employee benefits increased by $1.1 million in the three month period ended June 30, 2016 versus the same period of 2015. These increases in salary and employee benefits were driven by higher performance incentive-based compensation costs, staff additions and normal merit increases. Data processing fees increased primarily due to increased technology and software related expenditures with the company’s core processor, which are volume and product driven and represent digital solutions and forward technology for clients. The company's efficiency ratio was 49% for the second quarter of 2016, compared to 50% for the second quarter of 2015 and 49% for the linked first quarter of 2016. The company’s noninterest expense increased by 7% to $35.8 million for the six months ended June 30, 2016 compared to $33.6 million in the prior year period primarily due to increases in salaries and employee benefits, data processing fees and professional fees.

Lakeland Financial Corporation is a $3.9 billion bank holding company headquartered in Warsaw, Indiana. Lake City Bank, its single bank subsidiary, is the fourth largest bank headquartered in the state, and the largest bank 100% invested in Indiana. Lake City Bank operates 48 offices in Northern and Central Indiana, delivering technology driven and client-centric financial services solutions to individuals and businesses.

Information regarding Lakeland Financial Corporation may be accessed on the home page of its subsidiary, Lake City Bank, at www.lakecitybank.com. The company’s common stock is traded on the Nasdaq Global Select Market under “LKFN.” In addition to the results presented in accordance with generally accepted accounting principles in the United States of America, this earnings release contains certain non-GAAP financial measures. Lakeland Financial believes that providing non-GAAP financial measures provides investors with information useful to understanding the company’s financial performance. Additionally, these non-GAAP measures are used by management for planning and forecasting purposes, including measures based on “tangible common equity” which is “common stockholders’ equity” excluding intangible assets, net of deferred tax and “tangible assets” which is “assets” excluding intangible assets, net of deferred tax. A reconciliation of these non-GAAP measures to the most comparable GAAP equivalent is included in the attached financial tables where the non-GAAP measure is presented. 

This document 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 operations, plans, objectives, future performance and business of the company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “continue,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the company undertakes no obligation to update any statement in light of new information or future events. Additional information concerning the company and its business, including factors that could materially affect the company’s financial results, is included in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K.   

 
LAKELAND FINANCIAL CORPORATION  
SECOND QUARTER 2016 FINANCIAL HIGHLIGHTS  
 Three Months Ended Six Months Ended  
(Unaudited – Dollars in thousands)Jun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30,  
END OF PERIOD BALANCES 2016   2016   2015   2016   2015   
Assets$3,937,304  $3,808,907  $3,572,106  $3,937,304  $3,572,106   
Deposits 3,403,455   3,250,735   3,020,151   3,403,455   3,020,151   
Brokered Deposits 112,884   120,125   120,861   112,884   120,861   
Core Deposits 3,290,571   3,130,610   2,899,290   3,290,571   2,899,290   
Loans 3,197,997   3,113,300   2,893,462   3,197,997   2,893,462   
Allowance for Loan Losses 43,247   43,284   44,816   43,247   44,816   
Total Equity 418,893   406,963   375,764   418,893   375,764   
Goodwill net of deferred tax assets 3,137   3,140   3,176   3,137   3,176   
Tangible Common Equity 415,756   403,823   372,588   415,756   372,588   
AVERAGE BALANCES           
Total Assets$4,003,633  $3,812,316  $3,552,029  $3,907,974  $3,496,860   
Earning Assets 3,705,666   3,590,822   3,342,275   3,648,244   3,294,762   
Investments 488,762   478,537   475,803   483,650   476,520   
Loans 3,192,545   3,089,348   2,852,382   3,140,947   2,803,884   
Total Deposits 3,437,493   3,231,298   3,066,483   3,334,395   3,002,184   
Interest Bearing Deposits 2,759,696   2,569,704   2,488,227   2,664,700   2,435,003   
Interest Bearing Liabilities 2,887,534   2,727,422   2,581,664   2,807,478   2,540,996   
Total Equity 411,986   399,921   374,339   405,953   370,536   
INCOME STATEMENT DATA           
Net Interest Income$29,273  $28,582  $26,064  $57,855  $51,764   
Net Interest Income-Fully Tax Equivalent 29,818   29,102   26,559   58,920   52,745   
Provision for Loan Losses 0   0   0   0   0   
Noninterest Income 8,067   7,043   7,713   15,110   15,508   
Noninterest Expense 18,446   17,384   16,741   35,830   33,642   
Net Income 12,803   12,279   11,380   25,082   22,516   
PER SHARE DATA           
Basic Net Income Per Common Share$0.77  $0.74  $0.69  $1.50  $1.36   
Diluted Net Income Per Common Share 0.76   0.73   0.68   1.48   1.34   
Cash Dividends Declared Per Common Share 0.28   0.245   0.245   0.525   0.455   
Dividend Payout 36.84 % 33.56 % 36.03 % 35.47 % 33.96 % 
Book Value Per Common Share (equity per share issued) 25.08   24.37   22.61   25.08   22.61   
Tangible Book Value Per Common Share 24.90   24.19   22.42   24.90   22.42   
Market Value – High 49.91   46.55   44.27   49.91   44.27   
Market Value – Low 43.41   39.80   38.71   39.80   37.42   
Basic Weighted Average Common Shares Outstanding 16,696,834   16,679,835   16,611,974   16,688,335   16,601,189   
Diluted Weighted Average Common Shares Outstanding 16,930,513   16,885,204   16,820,052   16,913,738   16,795,907   
KEY RATIOS           
Return on Average Assets 1.29 % 1.30 % 1.29 % 1.29 % 1.30 % 
Return on Average Total Equity 12.50   12.35   12.19   12.43   12.25   
Average Equity to Average Assets 10.29   10.49   10.54   10.39   10.60   
Net Interest Margin 3.24   3.26   3.18   3.24   3.23   
Efficiency  (Noninterest Expense / Net Interest Income plus Noninterest Income) 49.40   48.80   49.57   49.11   50.01   
Tier 1 Leverage (1) 10.85   11.15   11.22   10.85   11.22   
Tier 1 Risk-Based Capital (1) 12.41   12.46   12.58   12.41   12.58   
Common Equity Tier 1 (CET1) (1) 11.55   11.58   11.63   11.55   11.63   
Total Capital (1) 13.65   13.72   13.83   13.65   13.83   
Tangible Capital (1) 10.57   10.61   10.44   10.57   10.44   
ASSET QUALITY            
Loans Past Due 30 - 89 Days$1,795  $4,024   4,580  $1,795  $4,580   
Loans Past Due 90 Days or More 0   0   284   0   284   
Non-accrual Loans 9,329   7,579   14,089   9,329   14,089   
Nonperforming Loans (includes nonperforming TDR's) 9,329   7,579   14,373   9,329   14,373   
Other Real Estate Owned 238   243   231   238   231   
Other Nonperforming Assets 0   0   7   0   7   
Total Nonperforming Assets 9,567   7,822   14,611   9,567   14,611   
Performing Troubled Debt Restructurings 8,647   8,590   7,606   8,647   7,606   
Nonperforming Troubled Debt Restructurings (included in nonperforming loans) 6,040   5,519   11,176   6,040   11,176   
Total Troubled Debt Restructurings 14,688   14,109   18,783   14,688   18,783   
Impaired Loans 19,267   17,418   22,328   19,267   22,328   
Non-Impaired Watch List Loans 139,706   123,984   130,735   139,706   130,735   
Total Impaired and Watch List Loans 158,973   141,402   153,063   158,973   153,063   
Gross Charge Offs 296   466   995   762   1,703   
Recoveries 260   140   134   400   257   
Net Charge Offs/(Recoveries) 36   326   861   362   1,446   
Net Charge Offs/(Recoveries)  to Average Loans 0.00 % 0.04 % 0.12 % 0.02 % 0.10 % 
Loan Loss Reserve to Loans 1.35 % 1.39 % 1.55 % 1.35 % 1.55 % 
Loan Loss Reserve to Nonperforming Loans 463.58 % 571.11 % 311.80 % 463.58 % 311.80 % 
Loan Loss Reserve to Nonperforming Loans and Performing TDR's 240.58 % 267.70 % 203.90 % 240.58 % 203.90 % 
Nonperforming Loans to Loans 0.29 % 0.24 % 0.50 % 0.29 % 0.50 % 
Nonperforming Assets to Assets 0.24 % 0.21 % 0.41 % 0.24 % 0.41 % 
Total Impaired and Watch List Loans to Total Loans 4.97 % 4.54 % 5.29 % 4.97 % 5.29 % 
OTHER DATA           
Full Time Equivalent Employees 531   521   514   531   514   
Offices 48   48   46   48   46   
            
(1) Capital ratios for June 30, 2016 are preliminary until the Call Report is filed.           
            

 

 
LAKELAND FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
June 30, 2016 and December 31, 2015
(in thousands, except share data)
 
 June 30, December 31,
  2016   2015 
 (Unaudited)  
ASSETS   
Cash and due from banks$  77,361   $67,484 
Short-term investments 31,502    13,190 
Total cash and cash equivalents 108,863    80,674 
    
Securities available for sale (carried at fair value) 499,600    478,071 
Real estate mortgage loans held for sale 4,009    3,294 
    
Loans, net of allowance for loan losses of $43,247 and $43,610 3,154,750    3,037,319 
    
Land, premises and equipment, net 49,144    46,684 
Bank owned life insurance 70,610    69,698 
Federal Reserve and Federal Home Loan Bank stock 8,373    7,668 
Accrued interest receivable 10,294    9,462 
Goodwill 4,970    4,970 
Other assets 26,691    28,446 
Total assets$  3,937,304   $3,766,286 
    
LIABILITIES AND STOCKHOLDERS' EQUITY   
    
LIABILITIES   
Noninterest bearing deposits$  727,308   $715,093 
Interest bearing deposits 2,676,147    2,468,328 
Total deposits 3,403,455    3,183,421 
    
Short-term borrowings   
Securities sold under agreements to repurchase 56,368    69,622 
Other short-term borrowings 0    70,000 
Total short-term borrowings 56,368    139,622 
    
Long-term borrowings 32    34 
Subordinated debentures 30,928    30,928 
Accrued interest payable 4,403    3,773 
Other liabilities 23,225    15,607 
Total liabilities 3,518,411    3,373,385 
    
STOCKHOLDERS' EQUITY   
Common stock:  90,000,000 shares authorized, no par value   
16,696,834 shares issued and 16,596,152 outstanding as of June 30, 2016   
16,641,651 shares issued and 16,546,044 outstanding as of December 31, 2015 101,002    99,123 
Retained earnings 310,317    294,002 
Accumulated other comprehensive income 10,166    2,142 
Treasury stock, at cost (2016 - 100,682 shares, 2015 - 95,607 shares) (2,681)  (2,455)
Total stockholders' equity 418,804    392,812 
Noncontrolling interest 89    89 
Total equity 418,893    392,901 
Total liabilities and equity$  3,937,304   $3,766,286 
    


 
LAKELAND FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months and Six Months Ended June 30, 2016 and 2015
(unaudited in thousands except for share and per share data)
 
    
 Three Months Ended Six Months Ended
 June 30, June 30,
  2016   2015   2016   2015 
NET INTEREST INCOME       
Interest and fees on loans       
Taxable$  30,918   $27,315  $  60,548   $53,572 
Tax exempt   111    117     222    234 
Interest and dividends on securities       
Taxable   2,297    2,002     4,843    4,450 
Tax exempt   947    842      1,842    1,671 
Interest on short-term investments   82    14     110    27 
Total interest income   34,355    30,290     67,565    59,954 
        
Interest on deposits   4,694    3,930     8,889    7,578 
Interest on borrowings       
Short-term    99    35     246    95 
Long-term   289    261     575    517 
Total interest expense    5,082    4,226     9,710    8,190 
        
NET INTEREST INCOME   29,273    26,064     57,855    51,764 
        
Provision for loan losses   0    0     0    0 
        
NET INTEREST INCOME AFTER PROVISION FOR       
LOAN LOSSES   29,273    26,064     57,855    51,764 
        
NONINTEREST INCOME       
Wealth advisory fees   1,133    1,106     2,293    2,290 
Investment brokerage fees   212    311     500    803 
Service charges on deposit accounts   2,843    2,573     5,623    4,947 
Loan, insurance and service fees   1,892    1,900     3,730    3,469 
Merchant card fee income   527    431     1,024    847 
Bank owned life insurance income   489    360     662    735 
Other income   587    681     515    1,635 
Mortgage banking income   384    351     711    740 
Net securities gains/(losses)   0    0      52    42 
Total noninterest income   8,067    7,713     15,110    15,508 
        
NONINTEREST EXPENSE       
Salaries and employee benefits    10,592    9,444     20,197    19,167 
Net occupancy expense   1,041    915     2,137    1,999 
Equipment costs   909    913     1,810    1,829 
Data processing fees and supplies   2,120    1,938     4,152    3,705 
Corporate and business development    763    714     1,620    1,504 
FDIC insurance and other regulatory fees   557    511     1,080    997 
Professional fees   859    728     1,686    1,417 
Other expense   1,605    1,578     3,148    3,024 
Total noninterest expense   18,446    16,741     35,830    33,642 
        
INCOME BEFORE INCOME TAX EXPENSE   18,894    17,036     37,135    33,630 
Income tax expense   6,091    5,656     12,053    11,114 
NET INCOME$  12,803   $11,380  $  25,082   $22,516 
        
BASIC WEIGHTED AVERAGE COMMON SHARES   16,696,834    16,611,974     16,688,335    16,601,189 
BASIC EARNINGS PER COMMON SHARE$  0.77   $0.69  $  1.50   $1.36 
DILUTED WEIGHTED AVERAGE COMMON SHARES   16,930,513    16,820,052     16,913,738    16,795,907 
DILUTED EARNINGS PER COMMON SHARE$  0.76   $0.68  $  1.48   $1.34 
        


LAKELAND FINANCIAL CORPORATION
LOAN DETAIL
SECOND QUARTER 2016
(unaudited in thousands)
             
 June 30,March 31,December 31,June 30,
 2016201620152015
Commercial and industrial loans:            
Working capital lines of credit loans$598,531 18.7%$591,136 19.0%$581,025 18.9%$606,169 20.9%
Non-working capital loans 628,119 19.6  614,619 19.7  598,487 19.4  537,708 18.6 
Total commercial and industrial loans 1,226,650 38.4  1,205,755 38.7  1,179,512 38.3  1,143,877 39.5 
             
Commercial real estate and multi-family residential loans:            
Construction and land development loans 221,027 6.9  206,378 6.6  230,719 7.5  152,292 5.3 
Owner occupied loans 457,461 14.3  447,620 14.4  412,026 13.4  409,650 14.2 
Nonowner occupied loans 395,597 12.4  408,273 13.1  407,883 13.2  399,583 13.8 
Multifamily loans 114,618 3.6  104,303 3.4  79,425 2.6  90,175 3.1 
Total commercial real estate and multi-family residential loans 1,188,703 37.2  1,166,574 37.5  1,130,053 36.7  1,051,700 36.3 
             
Agri-business and agricultural loans:            
Loans secured by farmland 146,519 4.6  144,687 4.6  164,375 5.3  156,001 5.4 
Loans for agricultural production 162,240 5.1  128,456 4.1  141,719 4.6  95,327 3.3 
Total agri-business and agricultural loans 308,759 9.7  273,143 8.8  306,094 9.9  251,328 8.7 
             
Other commercial loans 82,786 2.6  83,617 2.7  85,075 2.8  82,247 2.8 
Total commercial loans 2,806,898 87.8  2,729,089 87.7  2,700,734 87.7  2,529,152 87.4 
             
Consumer 1-4 family mortgage loans:            
Closed end first mortgage loans 164,564 5.1  161,701 5.2  158,062 5.1  148,977 5.1 
Open end and junior lien loans 164,645 5.1  160,734 5.2  163,700 5.3  155,902 5.4 
Residential construction and land development loans 9,570 0.3  8,488 0.3  9,341 0.3  8,821 0.3 
Total consumer 1-4 family mortgage loans 338,779 10.6  330,923 10.6  331,103 10.7  313,700 10.8 
             
Other consumer loans 52,492 1.6  53,327 1.7  49,113 1.6  50,813 1.8 
Total consumer loans 391,271 12.2  384,250 12.3  380,216 12.3  364,513 12.6 
Subtotal 3,198,169 100.0% 3,113,339 100.0% 3,080,950 100.0% 2,893,665 100.0%
Less:  Allowance for loan losses (43,247)   (43,284)   (43,610)   (44,816)  
Net deferred loan fees (172)   (39)   (21)   (203)  
Loans, net$3,154,750   $3,070,016   $3,037,319   $2,848,646   
             
             
             
LAKELAND FINANCIAL CORPORATION
DEPOSITS AND BORROWINGS
SECOND QUARTER 2016
(unaudited in thousands)
             
 June 30,  March 31,  December 31,  June 30,  
  2016    2016    2015    2015   
Non-interest bearing demand deposits$727,308   $660,318   $715,093   $602,898   
Interest bearing demand, savings & money market accounts 1,500,720    1,475,291    1,470,814    1,422,200   
Time deposits under $100,000 247,271    250,998    259,260    283,138   
Time deposits of $100,000 or more 928,156    864,128    738,254    711,915   
Total deposits 3,403,455    3,250,735    3,183,421    3,020,151   
Short-term borrowings 56,368    94,504    139,622    126,615   
Long-term borrowings 32    32    34    34   
Subordinated debentures 30,928    30,928    30,928    30,928   
Total borrowings 87,328    125,464    170,584    157,577   
Total funding sources$3,490,783   $3,376,199   $3,354,005   $3,177,728   
             


LAKELAND FINANCIAL CORPORATION
AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS
(UNAUDITED)
 
 Three Months Ended  Three Months Ended  Three Months Ended   
 June 30, 2016  March 31, 2016  June 30, 2015   
 Average Interest Yield (1)/  Average Interest Yield (1)/  Average Interest Yield (1)/   
(fully tax equivalent basis, dollars in thousands)Balance Income Rate  Balance Income Rate  Balance Income Rate   
Earning Assets                      
  Loans:                      
  Taxable (2)(3)$  3,180,783  $  30,918    3.91% $  3,077,441  $  29,630    3.87% $  2,839,605  $  27,315    3.86% 
  Tax exempt (1)   11,763     164    5.62     11,907     166    5.61     12,777     174    5.47   
  Investments: (1)                      
  Available for sale   488,762     3,736    3.07     478,537     3,906    3.28     475,803     3,282    2.77   
  Short-term investments   5,805     3    0.21     6,210     4    0.26     5,154     1    0.08   
  Interest bearing deposits   18,553     79    1.71     16,727     24    0.58     8,936     13    0.58   
Total earning assets$  3,705,666  $  34,900    3.79% $  3,590,822  $  33,730    3.78% $  3,342,275  $  30,785    3.69% 
Less:  Allowance for loan losses   (43,228)         (43,394)         (45,693)       
Nonearning Assets                      
  Cash and due from banks   167,099          97,093          98,133        
  Premises and equipment   48,921          47,237          42,919        
  Other nonearning assets   125,175          120,558          114,395        
Total assets$  4,003,633       $  3,812,316       $  3,552,029        
                       
Interest Bearing Liabilities                      
  Savings deposits$  263,331  $  115    0.18% $  253,313  $  123    0.20% $  231,505  $  116    0.20% 
  Interest bearing checking accounts   1,309,443     1,455    0.45     1,240,226     1,324    0.43     1,255,838     1,250    0.40   
  Time deposits:                      
  In denominations under $100,000   249,452     719    1.16     254,605     737    1.16     286,266     855    1.20   
  In denominations over $100,000   937,470     2,405    1.03     821,560     2,011    0.98     714,618     1,709    0.96   
  Miscellaneous short-term borrowings   96,878     99    0.41     126,758     147    0.47     62,475     35    0.22   
  Long-term borrowings and                      
  subordinated debentures (4)   30,960     289    3.75     30,960     286    3.72     30,962     261    3.38   
Total interest bearing liabilities$  2,887,534  $  5,082    0.71% $  2,727,422  $  4,628    0.68% $  2,581,664  $  4,226    0.66% 
Noninterest Bearing Liabilities                      
  Demand deposits   677,797          661,594          578,255        
  Other liabilities   26,316          23,379          17,772        
Stockholders' Equity   411,986          399,921          374,338        
Total liabilities and stockholders' equity$  4,003,633       $  3,812,316       $  3,552,029        
                       
Interest Margin Recap                      
Interest income/average earning assets   34,900    3.79     33,730    3.78     30,785    3.69   
Interest expense/average earning assets   5,082    0.55     4,628    0.52     4,226    0.51   
Net interest income and margin  $  29,818    3.24%   $  29,102    3.26%   $  26,559    3.18% 
 
(1) Tax exempt income was converted to a fully taxable equivalent basis at a 35 percent tax rate for 2016 and 2015. The tax equivalent rate for tax exempt loans and tax exempt securities acquired after January 1, 1983 included the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) adjustment applicable to nondeductible interest expenses.
(2) Loan fees, which are immaterial in relation to total taxable loan interest income for 2016 and 2015, are included as taxable loan interest income.
(3) Nonaccrual loans are included in the average balance of taxable loans.
(4) Long-term borrowings and subordinated debentures interest expense was reduced by interest capitalized on construction in process for 2015.
 

            

Contact Data