Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent
company of Lake City Bank, today reported net income of $14.6
million for the three months ended June 30, 2023, which
represents a decrease of $11.1 million, or 43%, compared with net
income of $25.7 million for the three months ended June 30,
2022. Diluted earnings per share were $0.57 for the second quarter
of 2023 and decreased 43% compared to $1.00 for the second quarter
of 2022. On a linked quarter basis, net income decreased 40%, or
$9.7 million, from first quarter 2023 net income of $24.3 million,
or $0.94 diluted earnings per share.
The company further reported net income of $38.9 million for the
six months ended June 30, 2023, versus $49.3 million for the
comparable period of 2022, a decrease of 21%, or $10.4 million.
Diluted earnings per share also decreased 21% to $1.51 for the six
months ended June 30, 2023, versus $1.92 for the comparable
period of 2022.
"Core operational profitability during the second quarter of
2023 improved by 10% on a linked quarter basis and 4% on an annual
basis. We are particularly pleased that loan growth of $438 million
represented 10% annual growth and occurred throughout the Lake City
Bank footprint," stated David M. Findlay, Chief Executive Officer.
"This organic expansion was driven by strong growth in the
Indianapolis market, where we continue to grow our market share and
where we opened our sixth office in the market during the second
quarter."
Quarterly Financial
Performance
Second Quarter 2023 versus Second Quarter 2022 highlights:
- Return on average equity of 9.70%, compared to 17.65%
- Return on average assets of 0.91%, compared to 1.59%
- Loan growth of $437.6 million, or 10%
- Investments as a percentage of total assets decreased to 18%
from 23%
- Deposit contraction of $198.5 million, or 4%
- Net interest margin expanded by 2 basis points from 3.26% to
3.28%
- Provision expense of $800,000, compared to no provision
expense
- Watch list loans as a percentage of total loans of 3.83%
compared to 4.34%
- Noninterest income increased $1.0 million, or 10%
- Noninterest expense increased $14.8 million, or 53%
- Wire fraud loss of $18.1 million, that represented $13.6
million net of tax, or $0.53 per diluted share
- Adjusted core noninterest expense declined 5%, or $1.4 million,
which excludes the wire fraud loss and a related reduction of
performance-based, long-term incentive compensation
- Tangible capital ratio of 9.04%, compared to 8.92%
Second Quarter 2023 versus First Quarter 2023 highlights:
- Return on average equity of 9.70%, compared to 16.81%
- Return on average assets of 0.91%, compared to 1.54%
- Loan growth of $107.3 million, or 2%
- Deposit contraction of $94.7 million, or 2%
- Net interest margin contraction of 26 basis points from 3.54%
to 3.28%
- Provision expense of $800,000, compared to $4.4 million
- Watch list loans as a percentage of total loans of 3.83%
compared to 3.68%
- Noninterest income increased $1.2 million, or 12%
- Noninterest expense increased $13.3 million, or 45%
- Wire fraud loss of $18.1 million, that represented $13.6
million net of tax, or $0.53 per diluted share
- Adjusted core noninterest expense declined 10%, or $2.9
million, which excludes the wire fraud loss and a related reduction
of performance-based, long-term incentive compensation
- Total risk-based capital ratio of 14.94%, compared to
15.21%
- Tangible capital ratio of 9.04%, compared to 9.34%
Wire Fraud Event
On June 30, 2023, the company discovered that it had been the
victim of international wire fraud resulting in an estimated loss
of $18.1 million. The loss net of tax amounts to $13.6 million, or
$0.53 diluted earnings per share for the three- and six-month
periods ended June 30, 2023.
As a result, the company’s core operational profitability, which
is a non-GAAP measure that excludes the estimated effect of this
one-time loss, was $26.8 million for the quarter ended June 30,
2023, compared to $25.7 million for the three months ended June 30,
2022 and $24.3 million for the linked quarter ended March 31, 2023.
The fraudulent wire activity resulted from a highly sophisticated
business email compromise directed by a foreign threat actor that
targeted a specific general ledger account at the bank. To
facilitate the fraud, the threat actor compromised a single
employee email account outside the company's network and used a
forged wire transfer form.
A third-party forensic investigation determined that no client
accounts were threatened by this activity, nor was there any
attempt to access any client information or funds. Additionally,
the investigation concluded that the company's network was never
penetrated and that the foreign threat actor made no attempt to
penetrate the network.
On June 30, 2023, the company notified its insurance carriers
about the fraudulent wire activity and engaged a forensic
technology investigation firm to conduct a thorough investigation.
The company also notified the United States Secret Service, the FBI
and the Financial Crimes Enforcement Network, or FinCEN. In
addition, the company has communicated actively with its primary
regulators.
Capital Strength
The company’s total capital as a percentage of risk-weighted
assets was 14.94% at June 30, 2023, compared to 15.24% at
June 30, 2022, and 15.21% at March 31, 2023. These
capital levels are well in excess of the 10.00% regulatory
threshold required to be characterized as “well-capitalized” and
represent a strong capital position.
Findlay commented, "The historical strength of our capital
structure has been critical to our long-term success. Over the last
two decades, we have diligently built the fortress balance sheet we
have today, and while we are disappointed in the wire fraud loss,
our healthy capital position remains the strong foundation for our
growth in the second half of 2023 and beyond."
The company’s tangible common equity to tangible assets ratio,
which is a non-GAAP financial measure, was 9.04% at June 30,
2023, compared to 8.92% at June 30, 2022 and 9.34% at
March 31, 2023. Tangible equity and tangible assets have been
impacted by declines in the market value of the company’s
available-for-sale investment securities portfolio as a result of
the rising interest rate environment. These declines have generated
unrealized losses in the available-for-sale investment securities
portfolio which are reflected in the company’s reported accumulated
other comprehensive income (loss). Unrealized losses from
available-for-sale investment securities were $202.0 million at
June 30, 2023, compared to $175.6 million at June 30,
2022 and $188.5 million at March 31, 2023. When excluding the
impact of accumulated other comprehensive income (loss) on tangible
common equity and tangible assets, the company’s ratio of adjusted
tangible common equity to adjusted tangible assets was 11.37% at
June 30, 2023 compared to 11.08% at June 30, 2022, and
11.56% at March 31, 2023.
As announced on July 11, 2023, the board of directors
approved a cash dividend for the second quarter of $0.46 per share,
payable on August 7, 2023, to shareholders of record as of
July 25, 2023. The second quarter dividend per share
represents a 15% increase from the $0.40 dividend per share paid
for the second quarter of 2022 and is unchanged from the dividend
paid in May 2023.
"We are pleased to support the double-digit growth of the common
stock dividend for shareholders through the continued growth and
profitability of Lake City Bank," commented Kristin L. Pruitt,
President. "Our conservative and disciplined balance sheet
management has positioned us with the strong capital structure that
supports this healthy dividend."
On April 11, 2023, the company’s board of directors reauthorized
and extended the company’s share repurchase program through April
30, 2025. Under the program the company is authorized to
repurchase, from time to time as the company deems appropriate,
shares of the company’s common stock with an aggregate purchase
price of up to $30.0 million, none of which has been utilized.
Loan Portfolio
Total loans outstanding increased by $437.6 million, or 10%,
from $4.42 billion as of June 30, 2022, to $4.86 billion as of
June 30, 2023. On a linked quarter basis, total outstanding
loans increased by $107.3 million, or 2%, from$4.75 billion as of
March 31, 2023. Linked quarter loan growth was negatively
impacted by seasonal reductions in agribusiness and agricultural
loans of $18.0 million. Total commercial loans, excluding the
impact of these seasonal reductions in agribusiness and
agricultural loans, increased by $109.6 million, or 3%. The company
experienced strong loan growth in owner and nonowner occupied
commercial real estate loans, multi-family residential loans and
non-working capital commercial and industrial loans.
Average total loans were $4.80 billion in the second quarter of
2023, an increase of $372.0 million, or 8%, from $4.43 billion for
the second quarter of 2022, and an increase of $72.3 million, or
2%, from $4.73 billion for the first quarter of 2023. Commercial
loan originations for the second quarter included approximately
$448.0 million in loan originations offset by approximately $356.0
million in commercial loan pay downs. Line of credit usage
decreased to 40% at June 30, 2023, compared to 43% at
June 30, 2022 and remained unchanged from 40% at
March 31, 2023. Total available lines of credit expanded by
$502.0 million, or 12%, as compared to a year ago, and line usage
increased by $83.0 million, or 5%, for the same period. The company
has limited exposure to commercial office space borrowers, all of
which are located in the bank’s Indiana markets. Loans totaling
$68.8 million for this sector represented 1.4% of total loans at
June 30, 2023.
"We experienced solid loan growth in both the commercial and
retail banking businesses. The healthy loan growth during the
quarter reflects our focus on expanding our relationships with
existing clients, while also seeing more penetration with our
prospects, contributing to an increase in market share," commented
Findlay. He added, "Although commercial line usage remains low
relative to historical levels at 40%, double-digit growth in line
availability under these facilities highlights the opportunities
for continued growth on the commercial banking front. Importantly,
our disciplined approach to credit administration remains at the
forefront of our growth."
Diversified Deposit Base
Core deposits, which consist of commercial, retail and public
fund deposits, and exclude brokered deposits, remained stable on a
year-over-year basis and on a linked quarter basis. Net retail
deposits outflows of $239.4 million since June 30, 2022, reflect
the continued utilization of deposits from peak levels as consumers
utilize their excess liquidity.
DEPOSIT DETAIL |
(unaudited, in thousands) |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
Retail |
$ |
1,821,607 |
|
33.6 |
% |
|
$ |
1,894,707 |
|
34.3 |
% |
|
$ |
2,061,051 |
|
36.7 |
% |
Commercial |
|
2,082,564 |
|
38.4 |
|
|
|
2,105,512 |
|
38.2 |
|
|
|
2,092,346 |
|
37.2 |
|
Public fund |
|
1,450,527 |
|
26.7 |
|
|
|
1,356,851 |
|
24.6 |
|
|
|
1,458,179 |
|
25.9 |
|
Core deposits |
|
5,354,698 |
|
98.7 |
|
|
|
5,357,070 |
|
97.1 |
|
|
|
5,611,576 |
|
99.8 |
|
Brokered deposits |
|
68,361 |
|
1.3 |
|
|
|
160,658 |
|
2.9 |
|
|
|
10,008 |
|
0.2 |
|
Total |
$ |
5,423,059 |
|
100.0 |
% |
|
$ |
5,517,728 |
|
100.0 |
% |
|
$ |
5,621,584 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total deposits were $5.55 billion for the second quarter
of 2023, a decrease of $201.4 million, or 4%, from $5.75 billion
for the second quarter of 2022, continuing the trend experienced
during the last five quarters as the excess deposits created by the
liquidity events of the economic stimulus payments and the Paycheck
Protection Program have slowly declined from their peaks. On a
linked quarter basis, average total deposits increased by $63.6
million, or 1%, driven by an increase in public fund deposits from
the seasonal collection of property tax payments.
Total deposits decreased $198.5 million, or 4%, from $5.62
billion as of June 30, 2022 to $5.42 billion as of
June 30, 2023. On a linked quarter basis, total deposits
decreased by $94.7 million, or 2%, from $5.52 billion at
March 31, 2023, and core deposits contracted by $2.4 million,
or less than 1%, from $5.36 billion at March 31, 2023 to $5.35
billion at June 30, 2023. Driving the linked quarter contraction in
core deposits were reductions in retail deposits, which contracted
$73.1 million, or 4%, and commercial deposits, which contracted
$22.9 million, or 1%. Offsetting these decreases was an increase
public fund deposits, which grew $93.7 million, or 7%.
"Our diverse core deposit base, which represents nearly 100% of
total deposits, continues to provide a stable funding source,"
commented Findlay. "We continue to monitor inflow and outflow of
deposit activity daily and our deposit activity remains stable and
typical of this time of year. We are grateful that new clients are
opening accounts with Lake City Bank every single day as our number
of accounts continues to rise. Importantly, we remain focused on
enhancing the customer experience surrounding our digital
application with the release of new features and
functionality."
Checking accounts by deposit sector, which include demand
deposits and interest-bearing checking accounts, continue to
maintain balances that are higher than pre-pandemic levels. Since
December 31, 2019, commercial checking account balances have grown
by $847.4 million, or 77%, retail checking account balances have
grown by $280.6 million, or 43%, and public fund checking account
balances have grown by $454.5 million, or 54%. Importantly, the
number of checking accounts have grown since December, 31, 2019 by
17% for commercial checking accounts, by 8% for retail checking
accounts and by 1% for public fund checking accounts. Overall, all
three sectors have grown in balance and in number of accounts since
December 31, 2019.
Checking account trends compared to a year ago in June 30, 2022
demonstrate checking account balance growth of $68.5 million, or
4%, for commercial checking account balances, $150.9 million, or
14%, contraction for retail checking account balances and $129.4
million, or 9%, contraction for public fund checking account
balances. These trends demonstrate continued organic deposit growth
of commercial deposits and 3% growth in number of commercial
checking accounts as compared to June 30, 2022. Retail checking
account balance declines reflect the anticipated utilization of
excess liquidity by our retail customers from peak levels as of
June 30, 2022. The number of retail accounts have grown by 1% since
June 30, 2022. Public funds checking account balances declines as
compared to a year ago, demonstrate the utilization of stimulus
funding received by our public fund depositors and number of
accounts are largely unchanged during the past year.
Uninsured deposits, not covered by FDIC deposit insurance or the
Indiana Public Deposit Insurance Fund (PDIF), were 28% of total
deposits as of June 30, 2023, versus 26% as of June 30,
2022, and 29% as of March 31, 2023. Deposits not insured by
FDIC Insurance coverage (including those public fund deposits that
are covered by the PDIF) were 54% as of June 30, 2023, versus
56% at June 30, 2022, and 54% at March 31, 2023. As of
June 30, 2023, March 31, 2023, and June 30, 2022,
98% of deposit accounts had deposit balances less than $250,000 and
2% of deposit accounts had deposit balances greater than
$250,000.
Liquidity Overview
The bank has robust liquidity resources available. These sources
include secured borrowings available from the Federal Home Loan
Bank, the Federal Reserve Bank Discount Window and the Federal
Reserve Bank Term Funding Program. In addition, the bank has
unsecured borrowing capacity through long established relationships
within the brokered deposits markets, Federal Funds lines from
correspondent bank partners, and Insured Cash Sweep (ICS) one-way
buy funds available from the Intrafi network. As of June 30,
2023, the company had access to $2.9 billion in unused
liquidity available from these aggregate sources, compared to
$3.2 billion at June 30, 2022, and $3.0 billion at
March 31, 2023. Utilization from these sources totaled $468.4
million at June 30, 2023, compared to $10.0 million at
June 30, 2022, and $360.7 million at March 31, 2023.
Importantly, core deposits have historically and currently
represent the primary funding resource of the bank.
Investment Portfolio Overview
Total investment securities were $1.19 billion at June 30,
2023, reflecting a decrease of $236.9 million, or 17%, as compared
to $1.43 billion at June 30, 2022. On a linked quarter basis,
investment securities decreased $45.8 million, or 4%. Investment
securities represented 18% of total assets on June 30, 2023,
compared to 23% on June 30, 2022, and 19% on March 31,
2023. Effective duration for the investment portfolio was 6.6 years
at June 30, 2023, compared to 4.0 years at December 31, 2019,
before the pandemic, and 6.5 years at December 31, 2022.
Duration of the portfolio expanded following the deployment of
excess liquidity to the portfolio and the dramatic rise in interest
rates during 2022 and into 2023. The ratio of investment securities
as a percentage of total assets remains elevated over historical
levels of approximately 12-14% during 2014 to 2020. The increase in
this ratio resulted from the deployment of excess liquidity during
2021 and 2022 to the investment securities portfolio as an earning
asset alternative for excess balance sheet liquidity stemming from
increased levels of core deposits from government stimulus
programs. The company expects the investment securities portfolio
as a percentage of assets to decrease over time as the proceeds
from pay downs, sales and maturities of these investment securities
are used to fund loan portfolio growth and for other general
liquidity purposes. Investment portfolio sales of $100.0 million
for gains of $19,000 and investment portfolio cash flows of $37.7
million provided liquidity of $137.7 million during the six months
ended June 30, 2023. The company anticipates receiving
principal and interest cash flows of $57.0 million during the
second half of 2023.
Net Interest Margin
"We were pleased to see stability in our net interest margin in
this challenging interest rate environment. Cumulative deposit
betas, which measure sensitivity of a bank’s deposit cost to
changes in short-term interest rates, are 44% compared to the 45%
cumulative deposit beta during the prior tightening cycle," noted
Findlay. "Importantly, the loan beta continues to make progress
with a cumulative beta today of 51% compared to the loan beta of
61% during the prior tightening cycle. The decline in noninterest
bearing deposits has slowed during the second quarter as compared
to the first quarter 2023."
The net interest margin was 3.28% for the second quarter of
2023, representing a 2 basis point expansion from 3.26% for the
second quarter of 2022. Earning assets yields increased by 207
basis points to 5.65% for the second quarter of 2023, up from 3.58%
for the second quarter of 2022. The increase in earning asset
yields was offset by an increase in the company's funding costs as
interest expense as a percentage of average earning assets
increased to 2.37% for the second quarter of 2023 from 0.32% for
the second quarter of 2022, an increase of 205 basis points.
Increases to the company's earning asset yields and interest
expense as a percentage of average earning assets between the two
periods were driven by the Federal Reserve's action to increase the
target Federal Funds rate to 5.25% from 0.25%. The target Federal
Funds rate was increased 350 basis points between June 30, 2022,
and June 30, 2023, increasing the target Federal Funds rate range
from 1.50%-1.75% to 5.00%-5.25%. While the rate increases have
positively affected the company's yields on earning assets between
the two periods, the company has experienced a corresponding
increase to funding costs as excess customer liquidity was utilized
and the competition for deposits has increased throughout the
industry.
Linked quarter net interest margin contracted by 26 basis points
and was 3.28% for the second quarter of 2023, compared to 3.54% for
the first quarter of 2023. The linked quarter contraction in net
interest income was a result of a net increase in funding costs
over average earning asset yields. Average earning asset yields
increased by 26 basis points from 5.39% during the first quarter of
2023 to 5.65% during the second quarter of 2023. Earning asset
yields benefited from a 25 basis point increase in the target
Federal Funds rate during the second quarter of 2023. The increase
in earning asset yields was offset by a 52 basis point increase in
interest expense as a percentage of average earning assets. This
increase in interest expense was driven by continued upward
pressure in deposit costs due to market competition to attract and
retain deposits. Total noninterest bearing deposits to total
deposits were 27% at June 30, 2023, compared to 28% at March 31,
2023 and 32% at June 30, 2022.
Net interest income was $48.5 million for the second quarter of
2023, representing a decrease of $154,000, or less than 1%, as
compared to the second quarter of 2022. On a linked quarter basis,
net interest income decreased $3.0 million, or 6%, from $51.5
million for the first quarter of 2023. Net interest income
increased by $6.5 million for the six months ended June 30,
2023, as compared to the six months ended June 30, 2022 due
primarily to an increase in loan interest income of $62.1 million,
offset by a decrease to securities interest income of $1.4 million,
an increase in deposit interest expense of $50.6 million and an
increase in borrowing expense of $5.0 million.
Asset Quality
The company recorded a provision expense of $800,000 in the
second quarter of 2023, compared to no provision expense in the
second quarter of 2022. On a linked quarter basis, the provision
expense decreased by $3.6 million from $4.4 million for the first
quarter of 2023, or 82%. The second quarter 2023 provision was
driven by loan portfolio growth during the period.
Findlay commented, "Despite broader industry concerns related to
the risk of asset quality, our outlook remains cautiously
optimistic. While the headwinds of elevated interest rates and
inflation are impacting our clients, they are not negatively
impacting loan portfolio quality in any material way. We continue
to focus on structure and terms as we move through this interesting
economic chapter."
The allowance for credit loss reserve to total loans was 1.48%
at June 30, 2023, versus 1.53% at June 30, 2022 and 1.50%
at March 31, 2023. Net charge offs (recoveries) in the second
quarter of 2023 were ($43,000) compared to $3,000 in the second
quarter of 2022 and $5.7 million during the linked first quarter of
2023. Annualized net charge offs to average loans were 0.00% for
both the second quarter of 2023, and the second quarter of 2022,
and 0.49% for the linked first quarter of 2023.
Nonperforming assets increased $5.6 million, or 44%, to $18.4
million as of June 30, 2023, versus $12.8 million as of
June 30, 2022. The increase was primarily a result of the net
addition of loan balances placed on nonaccrual status during the
first quarter of 2023 due primarily to a commercial borrower that
is undergoing bankruptcy reorganization. On a linked quarter basis,
nonperforming assets increased $494,000, or 3%, compared to $17.9
million as of March 31, 2023. The ratio of nonperforming
assets to total assets at June 30, 2023, increased to 0.28%
from 0.20% at June 30, 2022 and remained unchanged from 0.28%
at March 31, 2023.
Total individually analyzed and watch list loans decreased by
$6.0 million, or 3%, to $186.0 million at June 30, 2023,
versus $192.1 million as of June 30, 2022. On a linked quarter
basis, total individually analyzed and watch list loans increased
by $11.2 million, or 6%, from $174.9 million at March 31,
2023. The linked quarter increase was primarily a result of a net
increase in the balance of downgraded relationships during the
quarter. Watch list loans as a percentage of total loans decreased
by 51 basis points to 3.83% at June 30, 2023, compared to
4.34% at June 30, 2022, and increased by 15 basis points from
3.68% at March 31, 2023.
Noninterest Income
The company’s noninterest income increased $1.0 million, or 10%,
to $11.5 million for the second quarter of 2023, compared to $10.5
million for the second quarter of 2022. The increase in noninterest
income was primarily driven by an increase in bank owned life
insurance income of $876,000, or 479%, an increase in other income
of $446,000, or 183%, and an increase in interest rate swap fee
income of $440,000, or 124%. Bank owned life insurance income
benefited from improved market performance of the company's
variable life insurance policies which track to the overall
performance of the equity markets, and from the purchase of general
life insurance policies during the fourth quarter of 2022. Other
income increased due to increased dividends from the company's
Federal Home Loan Bank stock and activity from the company's
low-income housing tax credit investment holdings. An increase in
demand for fixed rate loan arrangements among certain commercial
borrowers drove the interest rate swap fee income increase.
Offsetting these increases was a decrease to mortgage banking
income of $386,000, or 110%, due to decreased mortgage volume.
Additionally, loan and service fees decreased $193,000, or 6%,
service charges on deposit accounts decreased $156,000, or 5%, and
investment brokerage income decreased of $113,000, or 21%.
Noninterest income for the second quarter of 2023 increased by
$1.2 million, or 12%, on a linked quarter basis from $10.3 million
during the first quarter of 2023. The linked quarter increase was
largely driven by an increase in interest rate swap fee income of
$794,000 due to increased demand for fixed rate loan arrangements
among certain commercial borrowers. Additionally, loan and service
fees increased $156,000, or 5%, service charges on deposit accounts
increased $96,000, or 4%, wealth advisory fees increased $71,000,
or 3%, and merchant and interchange fess increased $52,000, or 6%.
Offsetting these increases was a decrease in investment brokerage
fees of $106,000, or 20%.
Noninterest income increased by $636,000, or 3%, to $21.8
million for the six months ended June 30, 2023, compared to
$21.2 million for the prior year six-month period. The increase was
driven by increases to bank owned life insurance income of $1.7
million, or 620%, interest rate swap fee income of $390,000, or
97%, and other income of $173,000, or 15%. These increases were
offset by decreases to mortgage banking income of $994,000, or
116%, service charges on deposit accounts of $335,000, or 6%, and
loan and service fees of $236,000, or 4%.
Noninterest Expense
Noninterest expense increased $14.8 million, or 53%, to $42.7
million for the second quarter of 2023, compared to $27.9 million
during the second quarter of 2022. The increase to noninterest
expense during the quarter was driven by the previously described
wire fraud loss recorded as a component of noninterest expense in
the amount of $18.1 million. Adjusted core noninterest expense,
which is a non-GAAP financial measure, declined by $1.4 million, or
5%, as compared to the prior year quarter ended June 30, 2022,
excluding the impact of the wire fraud loss and the related
reduction of performance-based, long-term incentive compensation.
Salaries and benefits decreased by 23%, or $3.4 million as compared
to the prior year quarter due primarily to reduced
performance-based accruals, offset partially by higher salary
expense. Other expense decreased $728,000, or 22%, driven by a
decrease in accruals pertaining to ongoing legal matters.
Noninterest expense increases during the second quarter 2023
compared to the prior year quarter included professional fees of
$635,000, or 45%, data processing fees and supplies of $271,000, or
8%, and FDIC insurance and other regulatory fees of $184,000, or
30%.
On a linked quarter basis, noninterest expense increased by
$13.3 million, or 45%, compared to $29.4 million during the first
quarter of 2023. The increase to noninterest expense during the
quarter was driven by the previously described wire fraud loss
recorded as a component of noninterest expense in the amount of
$18.1 million. Adjusted core noninterest expense declined by $2.9
million, or 10%, as compared to the linked quarter ended March 31,
2023, excluding the impact of the wire fraud loss on recurring
operating expense and the related reduction of performance-based,
long-term incentive compensation. Salaries and benefits decreased
by 29%, or $4.7 million, as compared to the linked prior quarter
due primarily to reduced performance-based accruals offset
partially by higher salary expense. In addition, corporate business
and development expense decreased $133,000, or 9%.
Noninterest expense increased by $17.3 million, or 31%, for the
six months ended June 30, 2023, from $54.9 million to $72.2
million. The increase to noninterest expense during the year was
driven by the previously described wire fraud loss recorded as a
component of noninterest expense in the amount of $18.1 million in
June 2023. Adjusted core noninterest expense declined by $1.1
million, or 2%, as compared to the prior year six months ended June
30, 2022, excluding the impact of the wire fraud loss on recurring
operating expense, and the related reduction of performance-based,
long-term incentive compensation. The primary driver of the decline
in noninterest expense was a decline in other expense which
included settlement accruals in 2022 offset by increases of $1.2
million, or 40%, in professional fees, an increase of $642,000, or
10%, in data processing fees and supplies and an increase of
$540,000, or 51%, in FDIC insurance and other regulatory fees.
The company’s efficiency ratio was 71.2% for the second quarter
of 2023, compared to 47.2% for the second quarter of 2022 and 47.6%
for the linked first quarter of 2023. The company's efficiency
ratio for the six months ended June 30, 2023, was 59.2% compared to
47.8% for the six months ended June 30, 2022. The company’s
adjusted core efficiency ratio, which is a non-GAAP financial
measure, was 44.2% and 45.9% for the three- and six-month periods
ended June 30, 2023, respectively.
Information regarding Lakeland Financial Corporation may be
accessed on the home page of its subsidiary, Lake City Bank, at
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, this earnings release contains
certain non-GAAP financial measures. The company 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
tangible common equity, tangible assets, tangible book value per
share, tangible common equity to tangible assets ratio and pretax
pre-provision earnings. A reconciliation of these and other
non-GAAP measures to the most comparable GAAP equivalents is
included in the attached financial tables where the non-GAAP
measures are 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.
The company’s ability to predict results or the actual effect of
future plans or strategies is inherently uncertain and,
accordingly, the reader is cautioned not to place undue reliance on
any forward-looking statements made by the company. 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. Numerous factors could cause
the company’s actual results to differ from those reflected in
forward-looking statements, including the effects of the COVID-19
pandemic, including its effects on our customers, local economic
conditions, our operations and vendors, and the responses of
federal, state and local governmental authorities, as well as those
identified in the company’s filings with the Securities and
Exchange Commission, including the company’s Annual Report on Form
10-K and quarterly reports on Form 10-Q.
LAKELAND FINANCIAL CORPORATION |
SECOND QUARTER 2023 FINANCIAL
HIGHLIGHTS |
|
|
Three Months Ended |
|
Six Months Ended |
(Unaudited – Dollars in
thousands, except per share data) |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
END OF PERIOD BALANCES |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Assets |
$ |
6,509,546 |
|
|
$ |
6,411,529 |
|
|
$ |
6,265,087 |
|
|
$ |
6,509,546 |
|
|
$ |
6,265,087 |
|
Investments |
|
1,191,139 |
|
|
|
1,236,932 |
|
|
|
1,427,991 |
|
|
|
1,191,139 |
|
|
|
1,427,991 |
|
Loans |
|
4,862,260 |
|
|
|
4,754,928 |
|
|
|
4,424,699 |
|
|
|
4,862,260 |
|
|
|
4,424,699 |
|
Allowance for Credit Losses |
|
72,058 |
|
|
|
71,215 |
|
|
|
67,523 |
|
|
|
72,058 |
|
|
|
67,523 |
|
Deposits |
|
5,423,059 |
|
|
|
5,517,728 |
|
|
|
5,621,584 |
|
|
|
5,423,059 |
|
|
|
5,621,584 |
|
Brokered Deposits |
|
68,361 |
|
|
|
160,658 |
|
|
|
10,008 |
|
|
|
68,361 |
|
|
|
10,008 |
|
Core Deposits (1) |
|
5,354,698 |
|
|
|
5,357,070 |
|
|
|
5,611,576 |
|
|
|
5,354,698 |
|
|
|
5,611,576 |
|
Total Equity |
|
591,995 |
|
|
|
602,006 |
|
|
|
562,063 |
|
|
|
591,995 |
|
|
|
562,063 |
|
Goodwill net of deferred tax assets |
|
3,803 |
|
|
|
3,803 |
|
|
|
3,803 |
|
|
|
3,803 |
|
|
|
3,803 |
|
Tangible Common Equity (2) |
|
588,192 |
|
|
|
598,203 |
|
|
|
558,260 |
|
|
|
588,192 |
|
|
|
558,260 |
|
Adjusted Tangible Common Equity (2) |
|
765,090 |
|
|
|
764,815 |
|
|
|
715,885 |
|
|
|
765,090 |
|
|
|
715,885 |
|
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
6,432,929 |
|
|
$ |
6,412,080 |
|
|
$ |
6,460,888 |
|
|
$ |
6,422,562 |
|
|
$ |
6,555,888 |
|
Earning Assets |
|
6,096,284 |
|
|
|
6,067,576 |
|
|
|
6,157,051 |
|
|
|
6,082,009 |
|
|
|
6,273,914 |
|
Investments |
|
1,210,870 |
|
|
|
1,250,189 |
|
|
|
1,476,144 |
|
|
|
1,230,421 |
|
|
|
1,494,979 |
|
Loans |
|
4,797,742 |
|
|
|
4,725,427 |
|
|
|
4,425,713 |
|
|
|
4,761,784 |
|
|
|
4,363,664 |
|
Total Deposits |
|
5,551,145 |
|
|
|
5,487,592 |
|
|
|
5,752,519 |
|
|
|
5,519,545 |
|
|
|
5,800,313 |
|
Interest Bearing Deposits |
|
4,100,749 |
|
|
|
3,825,062 |
|
|
|
3,927,191 |
|
|
|
3,963,668 |
|
|
|
3,904,979 |
|
Interest Bearing Liabilities |
|
4,287,167 |
|
|
|
4,066,932 |
|
|
|
3,981,587 |
|
|
|
4,177,658 |
|
|
|
3,969,634 |
|
Total Equity |
|
603,999 |
|
|
|
585,604 |
|
|
|
583,324 |
|
|
|
594,852 |
|
|
|
632,733 |
|
INCOME STATEMENT
DATA |
|
|
|
|
|
|
|
|
|
Net Interest Income |
$ |
48,524 |
|
|
$ |
51,519 |
|
|
$ |
48,678 |
|
|
$ |
100,043 |
|
|
$ |
93,558 |
|
Net Interest Income-Fully Tax Equivalent |
|
49,842 |
|
|
|
52,887 |
|
|
|
50,079 |
|
|
|
102,727 |
|
|
|
96,227 |
|
Provision for Credit Losses |
|
800 |
|
|
|
4,350 |
|
|
|
0 |
|
|
|
5,150 |
|
|
|
417 |
|
Noninterest Income |
|
11,501 |
|
|
|
10,314 |
|
|
|
10,492 |
|
|
|
21,815 |
|
|
|
21,179 |
|
Noninterest Expense |
|
42,734 |
|
|
|
29,434 |
|
|
|
27,913 |
|
|
|
72,168 |
|
|
|
54,882 |
|
Net Income |
|
14,611 |
|
|
|
24,278 |
|
|
|
25,673 |
|
|
|
38,889 |
|
|
|
49,315 |
|
Pretax Pre-Provision Earnings (2) |
|
17,291 |
|
|
|
32,399 |
|
|
|
31,257 |
|
|
|
49,690 |
|
|
|
59,855 |
|
PER SHARE
DATA |
|
|
|
|
|
|
|
|
|
Basic Net Income Per Common Share |
$ |
0.57 |
|
|
$ |
0.95 |
|
|
$ |
1.00 |
|
|
$ |
1.52 |
|
|
$ |
1.93 |
|
Diluted Net Income Per Common Share |
|
0.57 |
|
|
|
0.94 |
|
|
|
1.00 |
|
|
|
1.51 |
|
|
|
1.92 |
|
Cash Dividends Declared Per Common Share |
|
0.46 |
|
|
|
0.46 |
|
|
|
0.40 |
|
|
|
0.92 |
|
|
|
0.80 |
|
Dividend Payout |
|
80.70 |
% |
|
|
48.94 |
% |
|
|
40.00 |
% |
|
|
60.93 |
% |
|
|
41.67 |
% |
Book Value Per Common Share (equity per share issued) |
$ |
23.12 |
|
|
$ |
23.51 |
|
|
$ |
22.01 |
|
|
$ |
23.12 |
|
|
$ |
22.01 |
|
Tangible Book Value Per Common Share (2) |
|
22.97 |
|
|
|
23.36 |
|
|
|
21.87 |
|
|
|
22.97 |
|
|
|
21.87 |
|
Market Value – High |
|
62.71 |
|
|
|
77.07 |
|
|
|
79.14 |
|
|
|
77.07 |
|
|
|
85.71 |
|
Market Value – Low |
|
43.05 |
|
|
|
59.55 |
|
|
|
64.84 |
|
|
|
43.05 |
|
|
|
64.84 |
|
|
|
Three Months Ended |
|
Six Months Ended |
(Unaudited – Dollars in thousands, except per share data) |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
KEY RATIOS (continued) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Basic Weighted Average Common Shares Outstanding |
|
25,607,663 |
|
|
|
25,583,026 |
|
|
|
25,527,896 |
|
|
|
25,595,412 |
|
|
|
25,521,618 |
|
Diluted Weighted Average Common Shares Outstanding |
|
25,686,354 |
|
|
|
25,742,885 |
|
|
|
25,697,577 |
|
|
|
25,696,370 |
|
|
|
25,699,908 |
|
Return on Average Assets |
|
0.91 |
% |
|
|
1.54 |
% |
|
|
1.59 |
% |
|
|
1.22 |
% |
|
|
1.52 |
% |
Return on Average Total Equity |
|
9.70 |
|
|
|
16.81 |
|
|
|
17.65 |
|
|
|
13.18 |
|
|
|
15.72 |
|
Average Equity to Average Assets |
|
9.39 |
|
|
|
9.13 |
|
|
|
9.03 |
|
|
|
9.26 |
|
|
|
9.65 |
|
Net Interest Margin |
|
3.28 |
|
|
|
3.54 |
|
|
|
3.26 |
|
|
|
3.41 |
|
|
|
3.09 |
|
Efficiency (Noninterest Expense / Net Interest Income plus
Noninterest Income) |
|
71.19 |
|
|
|
47.60 |
|
|
|
47.17 |
|
|
|
59.22 |
|
|
|
47.83 |
|
Loans to Deposits |
|
89.66 |
|
|
|
86.18 |
|
|
|
78.71 |
|
|
|
89.66 |
|
|
|
78.71 |
|
Investment Securities to Total Assets |
|
18.30 |
|
|
|
19.29 |
|
|
|
22.79 |
|
|
|
18.30 |
|
|
|
22.79 |
|
Tier 1 Leverage (3) |
|
11.54 |
|
|
|
11.57 |
|
|
|
10.85 |
|
|
|
11.54 |
|
|
|
10.85 |
|
Tier 1 Risk-Based Capital (3) |
|
13.68 |
|
|
|
13.96 |
|
|
|
13.99 |
|
|
|
13.68 |
|
|
|
13.99 |
|
Common Equity Tier 1 (CET1) (3) |
|
13.68 |
|
|
|
13.96 |
|
|
|
13.99 |
|
|
|
13.68 |
|
|
|
13.99 |
|
Total Capital (3) |
|
14.94 |
|
|
|
15.21 |
|
|
|
15.24 |
|
|
|
14.94 |
|
|
|
15.24 |
|
Tangible Capital (2) |
|
9.04 |
|
|
|
9.34 |
|
|
|
8.92 |
|
|
|
9.04 |
|
|
|
8.92 |
|
Adjusted Tangible Capital (2) |
|
11.37 |
|
|
|
11.56 |
|
|
|
11.08 |
|
|
|
11.37 |
|
|
|
11.08 |
|
ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
Loans Past Due 30 - 89 Days |
$ |
1,207 |
|
|
$ |
2,403 |
|
|
$ |
784 |
|
|
$ |
1,207 |
|
|
$ |
784 |
|
Loans Past Due 90 Days or More |
|
8 |
|
|
|
25 |
|
|
|
105 |
|
|
|
8 |
|
|
|
105 |
|
Non-accrual Loans |
|
18,004 |
|
|
|
17,715 |
|
|
|
12,494 |
|
|
|
18,004 |
|
|
|
12,494 |
|
Nonperforming Loans |
|
18,012 |
|
|
|
17,740 |
|
|
|
12,599 |
|
|
|
18,012 |
|
|
|
12,599 |
|
Other Real Estate Owned |
|
384 |
|
|
|
100 |
|
|
|
196 |
|
|
|
384 |
|
|
|
196 |
|
Other Nonperforming Assets |
|
20 |
|
|
|
82 |
|
|
|
0 |
|
|
|
20 |
|
|
|
0 |
|
Total Nonperforming Assets |
|
18,416 |
|
|
|
17,922 |
|
|
|
12,795 |
|
|
|
18,416 |
|
|
|
12,795 |
|
Individually Analyzed Loans |
|
18,465 |
|
|
|
18,188 |
|
|
|
19,986 |
|
|
|
18,465 |
|
|
|
19,986 |
|
Non-Individually Analyzed Watch List Loans |
|
167,562 |
|
|
|
156,663 |
|
|
|
172,084 |
|
|
|
167,562 |
|
|
|
172,084 |
|
Total Individually Analyzed and Watch List Loans |
|
186,027 |
|
|
|
174,851 |
|
|
|
192,070 |
|
|
|
186,027 |
|
|
|
192,070 |
|
Gross Charge Offs |
|
390 |
|
|
|
5,896 |
|
|
|
98 |
|
|
|
6,286 |
|
|
|
838 |
|
Recoveries |
|
433 |
|
|
|
155 |
|
|
|
95 |
|
|
|
588 |
|
|
|
171 |
|
Net Charge Offs/(Recoveries) |
|
(43 |
) |
|
|
5,741 |
|
|
|
3 |
|
|
|
5,698 |
|
|
|
667 |
|
Net Charge Offs/(Recoveries) to Average Loans |
|
0.00 |
% |
|
|
0.49 |
% |
|
|
0.00 |
% |
|
|
0.24 |
% |
|
|
0.03 |
% |
Credit Loss Reserve to Loans |
|
1.48 |
|
|
|
1.50 |
|
|
|
1.53 |
|
|
|
1.48 |
|
|
|
1.53 |
|
Credit Loss Reserve to Nonperforming Loans |
|
400.06 |
|
|
|
401.44 |
|
|
|
535.97 |
|
|
|
400.06 |
|
|
|
535.97 |
|
Nonperforming Loans to Loans |
|
0.37 |
|
|
|
0.37 |
|
|
|
0.28 |
|
|
|
0.37 |
|
|
|
0.28 |
|
Nonperforming Assets to Assets |
|
0.28 |
|
|
|
0.28 |
|
|
|
0.20 |
|
|
|
0.28 |
|
|
|
0.20 |
|
Total Individually Analyzed and Watch List Loans to Total
Loans |
|
3.83 |
|
|
|
3.68 |
|
|
|
4.34 |
|
|
|
3.83 |
|
|
|
4.34 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
(Unaudited – Dollars in
thousands, except per share data) |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
KEY RATIOS
(continued) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
Full Time Equivalent Employees |
|
632 |
|
|
|
619 |
|
|
|
606 |
|
|
|
632 |
|
|
|
606 |
|
Offices |
|
53 |
|
|
|
52 |
|
|
|
52 |
|
|
|
53 |
|
|
|
52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Core deposits equals deposits less brokered
deposits.(2) Non-GAAP financial measure - see “Reconciliation
of Non-GAAP Financial Measures”.(3) Capital ratios for
June 30, 2023 are preliminary until the Call Report is
filed.
CONSOLIDATED BALANCE
SHEETS (in thousands, except share data) |
|
|
|
|
June 30, 2023 |
|
December 31, 2022 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Cash and due from banks |
$ |
75,081 |
|
|
$ |
80,992 |
|
Short-term investments |
|
98,056 |
|
|
|
49,290 |
|
Total cash and cash equivalents |
|
173,137 |
|
|
|
130,282 |
|
|
|
|
|
Securities available-for-sale,
at fair value |
|
1,062,069 |
|
|
|
1,185,528 |
|
Securities held-to-maturity,
at amortized cost (fair value of $114,264 and $111,029,
respectively) |
|
129,070 |
|
|
|
128,242 |
|
Real estate mortgage loans
held-for-sale |
|
1,298 |
|
|
|
357 |
|
|
|
|
|
Loans, net of allowance for
credit losses of $72,058 and $72,606 |
|
4,790,202 |
|
|
|
4,637,790 |
|
|
|
|
|
Land, premises and equipment,
net |
|
58,839 |
|
|
|
58,097 |
|
Bank owned life insurance |
|
107,738 |
|
|
|
108,407 |
|
Federal Reserve and Federal
Home Loan Bank stock |
|
21,420 |
|
|
|
15,795 |
|
Accrued interest
receivable |
|
27,398 |
|
|
|
27,994 |
|
Goodwill |
|
4,970 |
|
|
|
4,970 |
|
Other assets |
|
133,405 |
|
|
|
134,909 |
|
Total assets |
$ |
6,509,546 |
|
|
$ |
6,432,371 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
Noninterest bearing
deposits |
$ |
1,438,030 |
|
|
$ |
1,736,761 |
|
Interest bearing deposits |
|
3,985,029 |
|
|
|
3,723,859 |
|
Total deposits |
|
5,423,059 |
|
|
|
5,460,620 |
|
|
|
|
|
Federal Funds purchased |
|
0 |
|
|
|
22,000 |
|
Federal Home Loan Bank
advances |
|
400,000 |
|
|
|
275,000 |
|
Total borrowings |
|
400,000 |
|
|
|
297,000 |
|
|
|
|
|
Accrued interest payable |
|
9,833 |
|
|
|
3,186 |
|
Other liabilities |
|
84,659 |
|
|
|
102,678 |
|
Total liabilities |
|
5,917,551 |
|
|
|
5,863,484 |
|
|
|
|
|
STOCKHOLDERS’
EQUITY |
|
|
|
Common stock: 90,000,000
shares authorized, no par value |
|
|
|
25,896,764 shares issued and 25,429,216 outstanding as of
June 30, 2023 |
|
|
|
25,825,127 shares issued and 25,349,225 outstanding as of
December 31, 2022 |
|
123,367 |
|
|
|
127,004 |
|
Retained earnings |
|
661,447 |
|
|
|
646,100 |
|
Accumulated other
comprehensive income (loss) |
|
(177,645 |
) |
|
|
(188,923 |
) |
Treasury stock, at cost
(467,548 shares and 475,902 shares as of
June 30, 2023 and December 31, 2022, respectively) |
|
(15,263 |
) |
|
|
(15,383 |
) |
Total stockholders’ equity |
|
591,906 |
|
|
|
568,798 |
|
Noncontrolling interest |
|
89 |
|
|
|
89 |
|
Total equity |
|
591,995 |
|
|
|
568,887 |
|
Total liabilities and equity |
$ |
6,509,546 |
|
|
$ |
6,432,371 |
|
CONSOLIDATED STATEMENTS OF INCOME (unaudited - in
thousands, except share and per share data) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
NET INTEREST
INCOME |
|
|
|
|
|
|
|
|
Interest and fees on
loans |
|
|
|
|
|
|
|
|
Taxable |
$ |
75,047 |
|
|
$ |
44,138 |
|
|
$ |
144,589 |
|
|
$ |
83,873 |
|
|
Tax exempt |
|
960 |
|
|
|
280 |
|
|
|
1,861 |
|
|
|
449 |
|
|
Interest and dividends on
securities |
|
|
|
|
|
|
|
|
Taxable |
|
3,376 |
|
|
|
3,727 |
|
|
|
6,889 |
|
|
|
7,005 |
|
|
Tax exempt |
|
4,064 |
|
|
|
4,994 |
|
|
|
8,364 |
|
|
|
9,600 |
|
|
Other interest income |
|
1,035 |
|
|
|
483 |
|
|
|
1,999 |
|
|
|
729 |
|
|
Total interest income |
|
84,482 |
|
|
|
53,622 |
|
|
|
163,702 |
|
|
|
101,656 |
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
33,611 |
|
|
|
4,890 |
|
|
|
58,529 |
|
|
|
7,971 |
|
|
Interest on borrowings |
|
|
|
|
|
|
|
|
Short-term |
|
2,347 |
|
|
|
0 |
|
|
|
5,130 |
|
|
|
0 |
|
|
Long-term |
|
0 |
|
|
|
54 |
|
|
|
0 |
|
|
|
127 |
|
|
Total interest expense |
|
35,958 |
|
|
|
4,944 |
|
|
|
63,659 |
|
|
|
8,098 |
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME |
|
48,524 |
|
|
|
48,678 |
|
|
|
100,043 |
|
|
|
93,558 |
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
|
800 |
|
|
|
0 |
|
|
|
5,150 |
|
|
|
417 |
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION FOR CREDIT LOSSES |
|
47,724 |
|
|
|
48,678 |
|
|
|
94,893 |
|
|
|
93,141 |
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME |
|
|
|
|
|
|
|
|
Wealth advisory fees |
|
2,271 |
|
|
|
2,204 |
|
|
|
4,471 |
|
|
|
4,491 |
|
|
Investment brokerage fees |
|
428 |
|
|
|
541 |
|
|
|
962 |
|
|
|
1,060 |
|
|
Service charges on deposit
accounts |
|
2,726 |
|
|
|
2,882 |
|
|
|
5,356 |
|
|
|
5,691 |
|
|
Loan and service fees |
|
3,002 |
|
|
|
3,195 |
|
|
|
5,848 |
|
|
|
6,084 |
|
|
Merchant and interchange fee
income |
|
929 |
|
|
|
904 |
|
|
|
1,806 |
|
|
|
1,719 |
|
|
Bank owned life insurance
income (loss) |
|
693 |
|
|
|
(183 |
) |
|
|
1,384 |
|
|
|
(266 |
) |
|
Interest rate swap fee
income |
|
794 |
|
|
|
354 |
|
|
|
794 |
|
|
|
404 |
|
|
Mortgage banking income
(loss) |
|
(35 |
) |
|
|
351 |
|
|
|
(134 |
) |
|
|
860 |
|
|
Net securities gains |
|
3 |
|
|
|
0 |
|
|
|
19 |
|
|
|
0 |
|
|
Other income |
|
690 |
|
|
|
244 |
|
|
|
1,309 |
|
|
|
1,136 |
|
|
Total noninterest income |
|
11,501 |
|
|
|
10,492 |
|
|
|
21,815 |
|
|
|
21,179 |
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE |
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
11,374 |
|
|
|
14,798 |
|
|
|
27,437 |
|
|
|
29,190 |
|
|
Net occupancy expense |
|
1,681 |
|
|
|
1,688 |
|
|
|
3,253 |
|
|
|
3,317 |
|
|
Equipment costs |
|
1,426 |
|
|
|
1,459 |
|
|
|
2,864 |
|
|
|
2,870 |
|
|
Data processing fees and
supplies |
|
3,474 |
|
|
|
3,203 |
|
|
|
6,926 |
|
|
|
6,284 |
|
|
Corporate and business
development |
|
1,298 |
|
|
|
1,433 |
|
|
|
2,729 |
|
|
|
2,652 |
|
|
FDIC insurance and other
regulatory fees |
|
803 |
|
|
|
619 |
|
|
|
1,598 |
|
|
|
1,058 |
|
|
Professional fees |
|
2,049 |
|
|
|
1,414 |
|
|
|
4,170 |
|
|
|
2,973 |
|
|
Wire fraud loss |
|
18,058 |
|
|
|
0 |
|
|
|
18,058 |
|
|
|
0 |
|
|
Other expense |
|
2,571 |
|
|
|
3,299 |
|
|
|
5,133 |
|
|
|
6,538 |
|
|
Total noninterest expense |
|
42,734 |
|
|
|
27,913 |
|
|
|
72,168 |
|
|
|
54,882 |
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAX EXPENSE |
|
16,491 |
|
|
|
31,257 |
|
|
|
44,540 |
|
|
|
59,438 |
|
|
Income tax expense |
|
1,880 |
|
|
|
5,584 |
|
|
|
5,651 |
|
|
|
10,123 |
|
|
NET
INCOME |
$ |
14,611 |
|
|
$ |
25,673 |
|
|
$ |
38,889 |
|
|
$ |
49,315 |
|
|
|
|
|
|
|
|
|
|
|
BASIC WEIGHTED AVERAGE
COMMON SHARES |
|
25,607,663 |
|
|
|
25,527,896 |
|
|
|
25,595,412 |
|
|
$ |
25,521,618 |
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
COMMON SHARE |
$ |
0.57 |
|
|
$ |
1.00 |
|
|
$ |
1.52 |
|
|
$ |
1.93 |
|
|
|
|
|
|
|
|
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON SHARES |
|
25,686,354 |
|
|
|
25,697,577 |
|
|
|
25,696,370 |
|
|
|
25,699,908 |
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
COMMON SHARE |
$ |
0.57 |
|
|
$ |
1.00 |
|
|
$ |
1.51 |
|
|
$ |
1.92 |
|
|
LAKELAND FINANCIAL CORPORATION |
LOAN DETAIL |
(unaudited, in thousands) |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
Commercial and industrial
loans: |
|
|
|
|
|
|
|
|
|
|
|
Working capital lines of credit loans |
$ |
618,655 |
|
|
12.7 |
% |
|
$ |
636,171 |
|
|
13.4 |
% |
|
$ |
726,798 |
|
|
16.4 |
% |
Non-working capital loans |
|
851,232 |
|
|
17.5 |
|
|
|
823,447 |
|
|
17.3 |
|
|
|
802,994 |
|
|
18.2 |
|
Total commercial and industrial loans |
|
1,469,887 |
|
|
30.2 |
|
|
|
1,459,618 |
|
|
30.7 |
|
|
|
1,529,792 |
|
|
34.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate and
multi-family residential loans: |
|
|
|
|
|
|
|
|
|
|
|
Construction and land development loans |
|
590,860 |
|
|
12.1 |
|
|
|
591,812 |
|
|
12.4 |
|
|
|
418,284 |
|
|
9.4 |
|
Owner occupied loans |
|
806,072 |
|
|
16.6 |
|
|
|
750,840 |
|
|
15.8 |
|
|
|
726,531 |
|
|
16.4 |
|
Nonowner occupied loans |
|
724,799 |
|
|
14.9 |
|
|
|
705,830 |
|
|
14.8 |
|
|
|
635,477 |
|
|
14.4 |
|
Multifamily loans |
|
254,662 |
|
|
5.2 |
|
|
|
217,274 |
|
|
4.5 |
|
|
|
173,875 |
|
|
3.9 |
|
Total commercial real estate and multi-family residential
loans |
|
2,376,393 |
|
|
48.8 |
|
|
|
2,265,756 |
|
|
47.5 |
|
|
|
1,954,167 |
|
|
44.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Agri-business and agricultural
loans: |
|
|
|
|
|
|
|
|
|
|
|
Loans secured by farmland |
|
176,807 |
|
|
3.6 |
|
|
|
178,683 |
|
|
3.8 |
|
|
|
194,248 |
|
|
4.4 |
|
Loans for agricultural production |
|
198,155 |
|
|
4.1 |
|
|
|
214,299 |
|
|
4.5 |
|
|
|
193,654 |
|
|
4.4 |
|
Total agri-business and agricultural loans |
|
374,962 |
|
|
7.7 |
|
|
|
392,982 |
|
|
8.3 |
|
|
|
387,902 |
|
|
8.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other commercial loans |
|
120,958 |
|
|
2.5 |
|
|
|
132,284 |
|
|
2.8 |
|
|
|
93,157 |
|
|
2.1 |
|
Total commercial loans |
|
4,342,200 |
|
|
89.2 |
|
|
|
4,250,640 |
|
|
89.3 |
|
|
|
3,965,018 |
|
|
89.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer 1-4 family mortgage
loans: |
|
|
|
|
|
|
|
|
|
|
|
Closed end first mortgage loans |
|
229,078 |
|
|
4.7 |
|
|
|
221,616 |
|
|
4.7 |
|
|
|
190,988 |
|
|
4.3 |
|
Open end and junior lien loans |
|
183,738 |
|
|
3.8 |
|
|
|
175,907 |
|
|
3.7 |
|
|
|
172,449 |
|
|
3.9 |
|
Residential construction and land development loans |
|
18,569 |
|
|
0.4 |
|
|
|
20,393 |
|
|
0.4 |
|
|
|
10,075 |
|
|
0.2 |
|
Total consumer 1-4 family mortgage loans |
|
431,385 |
|
|
8.9 |
|
|
|
417,916 |
|
|
8.8 |
|
|
|
373,512 |
|
|
8.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other consumer loans |
|
92,139 |
|
|
1.9 |
|
|
|
89,734 |
|
|
1.9 |
|
|
|
88,683 |
|
|
2.0 |
|
Total consumer loans |
|
523,524 |
|
|
10.8 |
|
|
|
507,650 |
|
|
10.7 |
|
|
|
462,195 |
|
|
10.4 |
|
Subtotal |
|
4,865,724 |
|
|
100.0 |
% |
|
|
4,758,290 |
|
|
100.0 |
% |
|
|
4,427,213 |
|
|
100.0 |
% |
Less: Allowance for credit
losses |
|
(72,058 |
) |
|
|
|
|
(71,215 |
) |
|
|
|
|
(67,523 |
) |
|
|
Net deferred loan fees |
|
(3,464 |
) |
|
|
|
|
(3,362 |
) |
|
|
|
|
(2,514 |
) |
|
|
Loans, net |
$ |
4,790,202 |
|
|
|
|
$ |
4,683,713 |
|
|
|
|
$ |
4,357,176 |
|
|
|
LAKELAND FINANCIAL CORPORATION |
DEPOSITS AND BORROWINGS |
(unaudited, in thousands) |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
Noninterest bearing demand deposits |
$ |
1,438,030 |
|
$ |
1,548,066 |
|
$ |
1,797,614 |
Savings and transaction
accounts: |
|
|
|
|
|
Savings deposits |
|
342,847 |
|
|
385,353 |
|
|
430,752 |
Interest bearing demand deposits |
|
2,819,385 |
|
|
2,820,146 |
|
|
2,631,304 |
Time deposits: |
|
|
|
|
|
Deposits of $100,000 or more |
|
616,455 |
|
|
577,549 |
|
|
577,571 |
Other time deposits |
|
206,342 |
|
|
186,614 |
|
|
184,343 |
Total deposits |
$ |
5,423,059 |
|
$ |
5,517,728 |
|
$ |
5,621,584 |
FHLB advances and other
borrowings |
|
400,000 |
|
|
200,000 |
|
|
0 |
Total funding sources |
$ |
5,823,059 |
|
$ |
5,717,728 |
|
$ |
5,621,584 |
LAKELAND FINANCIAL CORPORATION |
AVERAGE BALANCE SHEET AND NET INTEREST
ANALYSIS |
(UNAUDITED) |
|
|
|
Three Months Ended June 30, 2023 |
|
Three Months Ended March 31, 2023 |
|
Three Months Ended June 30, 2022 |
(fully
tax equivalent basis, dollars in thousands) |
|
Average Balance |
|
Interest Income |
|
Yield (1)/Rate |
|
Average Balance |
|
Interest Income |
|
Yield (1)/Rate |
|
Average Balance |
|
Interest Income |
|
Yield (1)/Rate |
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (2)(3) |
|
$ |
4,739,885 |
|
|
$ |
75,047 |
|
6.35 |
% |
|
$ |
4,667,867 |
|
|
$ |
69,542 |
|
6.04 |
% |
|
$ |
4,396,333 |
|
|
$ |
44,138 |
|
4.03 |
% |
Tax exempt (1) |
|
|
57,857 |
|
|
|
1,198 |
|
8.31 |
|
|
|
57,560 |
|
|
|
1,126 |
|
7.93 |
|
|
|
29,380 |
|
|
|
353 |
|
4.82 |
|
Investments: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities |
|
|
1,210,870 |
|
|
|
8,520 |
|
2.82 |
|
|
|
1,250,189 |
|
|
|
8,956 |
|
2.91 |
|
|
|
1,476,144 |
|
|
|
10,049 |
|
2.73 |
|
Short-term investments |
|
|
2,308 |
|
|
|
26 |
|
4.52 |
|
|
|
2,242 |
|
|
|
22 |
|
3.98 |
|
|
|
2,301 |
|
|
|
2 |
|
0.35 |
|
Interest bearing deposits |
|
|
85,364 |
|
|
|
1,009 |
|
4.74 |
|
|
|
89,718 |
|
|
|
942 |
|
4.26 |
|
|
|
252,893 |
|
|
|
481 |
|
0.76 |
|
Total earning assets |
|
$ |
6,096,284 |
|
|
$ |
85,800 |
|
5.65 |
% |
|
$ |
6,067,576 |
|
|
$ |
80,588 |
|
5.39 |
% |
|
$ |
6,157,051 |
|
|
$ |
55,023 |
|
3.58 |
% |
Less: Allowance for credit
losses |
|
|
(71,477 |
) |
|
|
|
|
|
|
(73,266 |
) |
|
|
|
|
|
|
(67,527 |
) |
|
|
|
|
Nonearning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
69,057 |
|
|
|
|
|
|
|
76,578 |
|
|
|
|
|
|
|
74,158 |
|
|
|
|
|
Premises and equipment |
|
|
58,992 |
|
|
|
|
|
|
|
58,319 |
|
|
|
|
|
|
|
58,978 |
|
|
|
|
|
Other nonearning assets |
|
|
280,073 |
|
|
|
|
|
|
|
282,873 |
|
|
|
|
|
|
|
238,228 |
|
|
|
|
|
Total assets |
|
$ |
6,432,929 |
|
|
|
|
|
|
$ |
6,412,080 |
|
|
|
|
|
|
$ |
6,460,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits |
|
$ |
360,173 |
|
|
$ |
65 |
|
0.07 |
% |
|
$ |
392,567 |
|
|
$ |
71 |
|
0.07 |
% |
|
$ |
425,102 |
|
|
$ |
81 |
|
0.08 |
% |
Interest bearing checking accounts |
|
|
2,930,285 |
|
|
|
27,226 |
|
3.73 |
|
|
|
2,757,120 |
|
|
|
21,402 |
|
3.15 |
|
|
|
2,710,674 |
|
|
|
3,784 |
|
0.56 |
|
Time deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In denominations under $100,000 |
|
|
198,864 |
|
|
|
1,147 |
|
2.31 |
|
|
|
180,502 |
|
|
|
642 |
|
1.44 |
|
|
|
189,538 |
|
|
|
307 |
|
0.65 |
|
In denominations over $100,000 |
|
|
611,427 |
|
|
|
5,173 |
|
3.39 |
|
|
|
494,873 |
|
|
|
2,803 |
|
2.30 |
|
|
|
601,877 |
|
|
|
718 |
|
0.48 |
|
Miscellaneous short-term borrowings |
|
|
186,418 |
|
|
|
2,347 |
|
5.05 |
|
|
|
241,870 |
|
|
|
2,783 |
|
4.67 |
|
|
|
0 |
|
|
|
0 |
|
0.00 |
|
Long-term borrowings and
subordinated debentures |
|
|
0 |
|
|
|
0 |
|
0.00 |
|
|
|
0 |
|
|
|
0 |
|
0.00 |
|
|
|
54,396 |
|
|
|
54 |
|
0.40 |
|
Total interest bearing
liabilities |
|
$ |
4,287,167 |
|
|
$ |
35,958 |
|
3.36 |
% |
|
$ |
4,066,932 |
|
|
$ |
27,701 |
|
2.76 |
% |
|
$ |
3,981,587 |
|
|
$ |
4,944 |
|
0.50 |
% |
Noninterest Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
1,450,396 |
|
|
|
|
|
|
|
1,662,530 |
|
|
|
|
|
|
|
1,825,327 |
|
|
|
|
|
Other liabilities |
|
|
91,367 |
|
|
|
|
|
|
|
97,014 |
|
|
|
|
|
|
|
70,650 |
|
|
|
|
|
Stockholders' Equity |
|
|
603,999 |
|
|
|
|
|
|
|
585,604 |
|
|
|
|
|
|
|
583,324 |
|
|
|
|
|
Total liabilities and
stockholders' equity |
|
$ |
6,432,929 |
|
|
|
|
|
|
$ |
6,412,080 |
|
|
|
|
|
|
$ |
6,460,888 |
|
|
|
|
|
Interest Margin Recap |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income/average
earning assets |
|
|
|
|
85,800 |
|
5.65 |
% |
|
|
|
|
80,588 |
|
5.39 |
% |
|
|
|
|
55,023 |
|
3.58 |
% |
Interest expense/average
earning assets |
|
|
|
|
35,958 |
|
2.37 |
|
|
|
|
|
27,701 |
|
1.85 |
|
|
|
|
|
4,944 |
|
0.32 |
|
Net interest income and
margin |
|
|
|
$ |
49,842 |
|
3.28 |
% |
|
|
|
$ |
52,887 |
|
3.54 |
% |
|
|
|
$ |
50,079 |
|
3.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tax exempt income was converted to a fully taxable
equivalent basis at a 21 percent tax rate. 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. Taxable equivalent basis adjustments were $1.32
million, $1.37 million and $1.40 million in the three month periods
ended June 30, 2023, March 31, 2023 and June 30,
2022, respectively.(2) Loan fees, which are immaterial in
relation to total taxable loan interest income for the three months
ended June 30, 2023, March 31, 2023 and June 30,
2022, are included as taxable loan interest income.(3)
Nonaccrual loans are included in the average balance of taxable
loans.
Reconciliation of Non-GAAP Financial
Measures
Tangible common equity, adjusted tangible common equity,
tangible assets, adjusted tangible assets, tangible book value per
common share, tangible common equity to tangible assets, adjusted
tangible common equity to adjusted tangible assets, and pretax
pre-provision earnings are non-GAAP financial measures calculated
using GAAP amounts. Tangible common equity is calculated by
excluding the balance of goodwill and other intangible assets from
the calculation of equity, net of deferred tax. Tangible assets are
calculated by excluding the balance of goodwill and other
intangible assets from the calculation of total assets, net of
deferred tax. Adjusted tangible assets and adjusted tangible common
equity remove the fair market value adjustment impact of the
available-for-sale investment securities portfolio. Tangible book
value per share is calculated by dividing tangible common equity by
the number of shares outstanding less true treasury stock. Pretax
pre-provision earnings is calculated by adding net interest income
to noninterest income and subtracting noninterest expense. Because
not all companies use the same calculation of tangible common
equity and tangible assets, this presentation may not be comparable
to other similarly titled measures calculated by other companies.
However, management considers these measures of the company’s value
meaningful to understanding of the company’s financial
information.
A reconciliation of these non-GAAP financial measures is
provided below (dollars in thousands, except per share data).
|
Three Months Ended |
|
Six Months Ended |
|
Jun. 30, 2023 |
|
Mar. 31, 2023 |
|
Jun. 30, 2022 |
|
Jun. 30, 2023 |
|
Jun. 30, 2022 |
Total Equity |
$ |
591,995 |
|
|
$ |
602,006 |
|
|
$ |
562,063 |
|
|
$ |
591,995 |
|
|
$ |
562,063 |
|
Less: Goodwill |
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
Plus: DTA Related to
Goodwill |
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
Tangible Common Equity |
|
588,192 |
|
|
|
598,203 |
|
|
|
558,260 |
|
|
|
588,192 |
|
|
|
558,260 |
|
AOCI Market Value
Adjustment |
|
176,898 |
|
|
|
166,612 |
|
|
|
157,625 |
|
|
|
176,898 |
|
|
|
157,625 |
|
Adjusted Tangible Common
Equity |
|
765,090 |
|
|
|
764,815 |
|
|
|
715,885 |
|
|
|
765,090 |
|
|
|
715,885 |
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
6,509,546 |
|
|
$ |
6,411,529 |
|
|
$ |
6,265,087 |
|
|
$ |
6,509,546 |
|
|
$ |
6,265,087 |
|
Less: Goodwill |
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
|
|
(4,970 |
) |
Plus: DTA Related to
Goodwill |
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
|
|
1,167 |
|
Tangible Assets |
|
6,505,743 |
|
|
|
6,407,726 |
|
|
|
6,261,284 |
|
|
|
6,505,743 |
|
|
|
6,261,284 |
|
Securities Market Value
Adjustment |
|
223,922 |
|
|
|
210,901 |
|
|
|
199,525 |
|
|
|
223,922 |
|
|
|
199,525 |
|
Adjusted Tangible Assets |
|
6,729,665 |
|
|
|
6,618,627 |
|
|
|
6,460,809 |
|
|
|
6,729,665 |
|
|
|
6,460,809 |
|
|
|
|
|
|
|
|
|
|
|
Ending Common Shares
Issued |
|
25,607,663 |
|
|
|
25,607,663 |
|
|
|
25,527,896 |
|
|
|
25,607,663 |
|
|
|
25,527,896 |
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value Per Common
Share |
$ |
22.97 |
|
|
$ |
23.36 |
|
|
$ |
21.87 |
|
|
$ |
22.97 |
|
|
$ |
21.87 |
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Equity/Tangible Assets |
|
9.04 |
% |
|
|
9.34 |
% |
|
|
8.92 |
% |
|
|
9.04 |
% |
|
|
8.92 |
% |
Adjusted Tangible Common
Equity / Adjusted Tangible Assets |
|
11.37 |
% |
|
|
11.56 |
% |
|
|
11.08 |
% |
|
|
11.37 |
% |
|
|
11.08 |
% |
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
$ |
48,524 |
|
|
$ |
51,519 |
|
|
$ |
48,678 |
|
|
$ |
100,043 |
|
|
$ |
93,558 |
|
Plus: Noninterest Income |
|
11,501 |
|
|
|
10,314 |
|
|
|
10,492 |
|
|
|
21,815 |
|
|
|
21,179 |
|
Minus: Noninterest
Expense |
|
(42,734 |
) |
|
|
(29,434 |
) |
|
|
(27,913 |
) |
|
|
(72,168 |
) |
|
|
(54,882 |
) |
|
|
|
|
|
|
|
|
|
|
Pretax Pre-Provision
Earnings |
$ |
17,291 |
|
|
$ |
32,399 |
|
|
$ |
31,257 |
|
|
$ |
49,690 |
|
|
$ |
59,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted core noninterest expense, adjusted earnings before
income taxes, core operational profitability, core operational
diluted earnings per common share and adjusted core efficiency
ratio are non-GAAP financial measures calculated using GAAP
amounts. These adjusted amounts are calculated by excluding the
impact of the wire fraud loss and corresponding reduction to
salaries and employee benefits for the three- and six-month periods
ended June 30, 2023. Management considers these measures of
financial performance to be meaningful to understanding the
company’s core business performance for these periods.
A reconciliation of these non-GAAP financial measures is
provided below (dollars in thousands, except per share data).
|
Three Months Ended June 30,
2023 |
|
Six Months Ended June 30,
2023 |
Noninterest Expense |
$ |
42,734 |
|
|
$ |
72,168 |
|
Less: Wire Fraud Loss |
|
(18,058 |
) |
|
|
(18,058 |
) |
Plus: Salaries and Employee
Benefits (1) |
|
1,850 |
|
|
|
1,850 |
|
Adjusted Core Noninterest
Expense |
$ |
26,526 |
|
|
$ |
55,960 |
|
|
|
|
|
Earnings Before Income
Taxes |
$ |
16,491 |
|
|
$ |
44,540 |
|
Adjusted Core Noninterest
Expense Impact |
|
16,208 |
|
|
|
16,208 |
|
Adjusted Earnings Before
Income Taxes |
|
32,699 |
|
|
|
60,748 |
|
Tax Effect |
|
(5,873 |
) |
|
|
(9,644 |
) |
Core Operational
Profitability |
$ |
26,826 |
|
|
$ |
51,104 |
|
|
|
|
|
Core Operational
Diluted Earnings Per Common Share |
$ |
1.05 |
|
|
$ |
1.99 |
|
|
|
|
|
Adjusted Core
Efficiency Ratio |
|
44.19 |
% |
|
|
45.92 |
% |
|
|
|
|
|
|
|
|
(1) Long-term, incentive-based compensation accruals were
reduced as a result of the wire fraud loss.
ContactLisa M. O’NeillExecutive
Vice President and Chief Financial Officer(574)
267-9125lisa.oneill@lakecitybank.com
Lakeland Financial (NASDAQ:LKFN)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Lakeland Financial (NASDAQ:LKFN)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024