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Lakeland Financial Reports Record First Quarter Performance; Loan Growth of 5% and Revenue Growth of 9% Contribute to 32% Increase in Net Income to $26.5 Million

LKFN
  • Lakeland Financial Corporation reported record first quarter 2026 net income of $26.5 million, a 32% increase from $20.1 million in the same period of 2025.
  • Diluted earnings per share reached a record $1.04, up 33% from $0.78 in the first quarter of 2025, though down 10% from $1.16 in the linked fourth quarter of 2025.
  • Pretax pre-provision earnings, a non-GAAP measure, rose 11% year-over-year to $34.6 million but decreased 5% on a linked quarter basis to $34.6 million from $36.4 million.
  • Net interest margin expanded 9 basis points to 3.49% year-over-year, driven by a 25 basis point reduction in funding costs that outpaced the 16 basis point decline in earning asset yields.
  • Average loan balances grew 5% year-over-year to $5.44 billion, fueled by increases in commercial real estate, commercial and industrial, and consumer mortgage segments.
  • Total deposits increased 4% to $6.19 billion, primarily driven by a 199% surge in brokered deposits, while core deposits declined slightly to $5.81 billion.
  • Asset quality improved significantly with nonaccrual loans dropping to $20.9 million from $57.4 million year-over-year, and watch list loans decreasing to 3.33% of total loans.
  • The company repurchased 336,853 shares for $19.2 million during the quarter, bringing total repurchases under the current program to 674,743 shares.
  • The board approved a first quarter cash dividend of $0.52 per share, representing a 4% increase from the prior year, payable on May 5, 2026.
  • Noninterest income increased 18% to $12.9 million, with notable growth in bank owned life insurance income and loan and service fees.
  • Noninterest expense rose 7% to $35.2 million, primarily due to increased salaries and benefits expenses linked to human capital investments.
  • Capital ratios remained robust, with a Common Equity Tier 1 ratio of 14.45% and a Total risk-based capital ratio of 15.58%, both exceeding regulatory requirements.
  • The efficiency ratio for the quarter was 50.4%, reflecting improved operational performance compared to 51.4% in the first quarter of 2025.