WARSAW, Ind., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported record quarterly net income of $29.9 million for the three months ended December 31, 2025, which represents an increase of $5.7 million, or 24%, compared to net income of $24.2 million for the three months ended December 31, 2024. Diluted earnings per share were $1.16 for the fourth quarter of 2025 and increased $0.22, or 23%, compared to $0.94 for the fourth quarter of 2024. On a linked quarter basis, net income increased $3.5 million, or 13%, from $26.4 million. Diluted earnings per share increased $0.13, or 13%, from $1.03 on a linked quarter basis.

The company further reported net income of $103.4 million for the year ended December 31, 2025, versus $93.5 million for 2024, an increase of $9.9 million, or 11%. Diluted earnings per share increased $0.38, or 10%, to $4.01 for the year ended December 31, 2025, versus $3.63 for 2024. Pretax pre-provision earnings, a non-GAAP measure, were $137.4 million for the year ended December 31, 2025, an increase of $8.9 million, or 7%, compared to $128.4 million for the year ended December 31, 2024. Core operational profitability, a non-GAAP measure that excludes the impact of certain non-routine operating events that occurred during 2024, improved by $14.0 million, or 16%, from $89.4 million to $103.4 million for the years ended December 31, 2024 and 2025, respectively.

Pretax pre-provision earnings were $36.4 million for the three months ended December 31, 2025, an increase of $3.4 million, or 10%, compared to $32.9 million for the three months ended December 31, 2024. Pretax pre-provision earnings increased by $2.3 million, or 7%, compared to $34.1 million on a linked quarter basis.

Total revenue was $69.8 million for the fourth quarter of 2025 representing an increase of $6.2 million, or 10%, as compared to the fourth quarter of 2024. On a linked quarter basis, revenue increased by $769,000, or 1%, from $69.0 million in the third quarter of 2025. Total revenue increased by $15.5 million, or 6%, to $269.0 million for the year ended December 31, 2025, as compared to $253.5 million for 2024.

"The Lake City Bank team produced a very strong fourth quarter with exceptional performance metrics that has created good momentum as we move into 2026. We are pleased with double-digit growth of net income compared to the prior year, which was driven by healthy net interest margin expansion and broad-based core revenue growth," commented David M. Findlay, Chairman and CEO. "In 1990, we expanded outside of our home county for the first time. In the 34 years since, our organic growth model has produced compounded annual growth rates of 10% for loans and deposits, 11% for net income and diluted earnings per share and 10% for tangible book value per share. It's a track record of balance sheet growth and strong income metrics that has delivered healthy shareholder performance over a long period of time and we are laser focused on returning balance sheet growth to our historical levels."

Quarterly Financial Performance

Fourth Quarter 2025 versus Fourth Quarter 2024 highlights:

Return on average equity improved to 15.59%, compared to 13.87%
Return on average assets improved to 1.70%, compared to 1.42%
Tangible book value per share grew by $3.40, or 13%, to $29.87
Average loans grew by $185.1 million, or 4%, to $5.27 billion
Net interest margin improved 23 basis points to 3.48% versus 3.25%
Net interest income increased by $5.5 million, or 11%
Noninterest income increased by $727,000, or 6%
Revenue improved by 10% from $63.6 million to $69.8 million
Watch list loans as a percentage of total loans improved to 3.42% from 4.13%
Nonaccrual loans declined 63% to $20.9 million, compared to $56.4 million
Common equity tier 1 capital ratio improved to 14.77%, compared to 14.64%
Total risk-based capital ratio improved to 15.92%, compared to 15.90%
Tangible capital ratio improved to 10.86%, compared to 10.19%
Tangible common equity improved by $78.6 million, or 12%

Fourth Quarter 2025 versus Third Quarter 2025 highlights:

Return on average equity of 15.59%, compared to 14.60%
Return on average assets of 1.70%, compared to 1.53%
Tangible book value per share grew by $0.94, or 3%, to $29.87
Average loans improved by $65.9 million, or 1%, to $5.27 billion
Core deposits expansion of $74.1 million, or 1%, to $5.92 billion
Net interest margin of 3.48% versus 3.50%
Net interest income increased by $1.1 million, or 2%
Noninterest expense decreased $1.5 million, or 4%
Tangible common equity improved by $15.0 million, or 2%

Capital Strength

The company's total capital as a percentage of risk-weighted assets was 15.92% at December 31, 2025, compared to 15.90% at December 31, 2024 and 16.21% at September 30, 2025. These capital levels significantly exceeded the 10.00% regulatory threshold required to be characterized as "well capitalized" and reflect the company's robust capital base.

The company's tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to 10.86% at December 31, 2025, compared to 10.19% at December 31, 2024 and 10.79% at September 30, 2025. Unrealized losses from available-for-sale investment securities were $143.3 million at December 31, 2025, compared to $191.1 million at December 31, 2024 and $159.9 million at September 30, 2025. 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, a non-GAAP financial measure, was 12.45% at December 31, 2025, compared to 12.37% at December 31, 2024, and 12.57% at September 30, 2025.

As announced on January 13, 2026, the board of directors approved a cash dividend for the fourth quarter of $0.52 per share, payable on February 5, 2026, to shareholders of record as of January 25, 2026. The fourth quarter dividend per share represents a 4% increase from the $0.50 dividend per share paid for the fourth quarter of 2024.

Additionally, the company utilized its share repurchase program during the fourth quarter of 2025 and repurchased 307,590 shares of its common stock for $17.9 million at a weighted average price per share of $58.23. For the year ended December 31, 2025, the company repurchased 337,890 shares of its common stock for $19.6 million at a weighted average price per share of $58.03.

"We are pleased to report high quality income metrics with return on average equity of 15.6% and return on assets of 1.7% for the fourth quarter, while also continuing to grow capital," stated Kristin L. Pruitt, President. "Our fortress balance sheet and strong capital position supports our strategy of continued loan growth and the continued growth of our dividend. With the aggressive activation of our share repurchase program during 2025, particularly during the fourth quarter, we further increased the total return of capital to our shareholders."

Net Interest Margin

Net interest margin was 3.48% for the fourth quarter of 2025, representing a 23 basis point increase from 3.25% for the fourth quarter of 2024. This improvement was driven by a reduction in the company's funding costs, with interest expense as a percentage of average earning assets falling by 36 basis points from 2.56% for the fourth quarter of 2024 to 2.20% for the fourth quarter of 2025. Offsetting the decrease in funding costs was a decrease to earning asset yields of 13 basis points from 5.81% for the fourth quarter of 2024 to 5.68% for the fourth quarter of 2025. The easing of monetary policy by the Federal Reserve Bank, which continued through the duration of 2025, favorably impacted the net interest margin as deposits repriced more quickly than loans during the fourth quarter. The cumulative loan beta for the current rate-easing cycle that began in September 2024 is 24% compared to the deposit beta of 40% during this period and has resulted in net interest margin expansion that has benefited net interest income.

Net interest margin contracted by 2 basis points to 3.48% for the fourth quarter of 2025, compared to 3.50% for the linked third quarter of 2025. Average earning asset yields decreased by 19 basis points from 5.87% to 5.68% on a linked quarter basis and interest expense as a percentage of average earning assets decreased 17 basis points from 2.37% to 2.20%. Fourth quarter cost of funds was impacted by seasonal public funds deposits in higher priced deposit products.

Net interest income increased by $24.3 million, or 12%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024. Net interest income was $57.2 million for the fourth quarter of 2025, representing an increase of $5.5 million, or 11%, as compared to the fourth quarter of 2024. On a linked quarter basis, net interest income increased $1.1 million, or 2%, from $56.1 million for the third quarter of 2025.

"Net interest margin improved by 23 basis points during the fourth quarter of 2025 as compared to the fourth quarter of 2024 while the Federal Reserve Bank easing monetary cycle continued. Our disciplined deposit cost repricing strategy offset the decline in loan yields. In addition, new loan origination yields improved compared to yields of fixed rate loan runoff," stated Lisa M. O'Neill, Executive Vice President and Chief Financial Officer. "We experienced the seasonal influx of municipal deposits during the fourth quarter, which offset some of the net interest margin expansion we experienced in the third quarter of 2025. Our neutral interest rate position is expected to provide stability for net interest margin in a higher-for-longer interest rate environment or continued easing by the Federal Reserve Bank in 2026."

Loan Portfolio

Average total loans of $5.27 billion in the fourth quarter of 2025 increased $185.1 million, or 4%, from $5.09 billion for the fourth quarter of 2024 and increased $65.9 million, or 1%, from $5.21 billion for the third quarter of 2025. Average total loans for the year ended December 31, 2025 were $5.22 billion, an increase of $184.1 million, or 4%, from $5.04 billion for the year ended December 31, 2024.

Total loans, excluding deferred fees and costs, increased by $257.2 million, or 5%, from $5.12 billion as of December 31, 2024, to $5.38 billion as of December 31, 2025. The growth in loans occurred across all primary segments within the portfolio, with increases to commercial and industrial loan portfolio of $102.8 million, or 7%, commercial real estate and multi-family residential loans of $74.0 million, or 3%, consumer 1-4 family mortgage loans of $47.0 million, or 10%, agri-business and agricultural loans of $19.5 million, or 5%, other consumer loans of $12.2 million, or 12%, and other commercial loans of $1.8 million, or 2%. On a linked quarter basis, total loans, excluding deferred fees and costs, increased by $126.8 million, or 2%, from $5.25 billion at September 30, 2025. The linked quarter increase occurred across all primary segments within the portfolio, with growth in agri-business and agricultural loans of $66.9 million, or 20%, total commercial and industrial loans of $35.7 million, or 2%, commercial real estate and multi-family residential loans of $11.3 million, or less than 1%, other commercial loans of $5.5 million, or 6%, other consumer loans of $3.8 million, or 3%, and consumer 1-4 family mortgage loans of $3.7 million, or 1%.

"We continued to generate a high volume of gross commercial loan originations during the fourth quarter of $567 million. For the full year of 2025, our team produced gross originations of $1.7 billion," noted Findlay. "Loan growth during 2025 was positively impacted by commercial and industrial loan growth of 7%, or $103 million, which contributed to our organic loan growth increase. Importantly, we experienced healthy commercial and industrial growth from our more mature markets and commercial loans overall grew by 10% on a linked quarter, annualized basis. We're also encouraged that commercial line utilization increased to 44% at December 31, 2025. As we enter 2026, we continue to be focused on increased market share take strategies with our expanding universe of prospects in the commercial banking business."

As noted earlier, total outstanding commercial loans for the fourth quarter included approximately $567.0 million in loan originations, offset by approximately $447.0 million in loan pay downs. Line of credit usage increased to 44% as of December 31, 2025, from 41% at December 31, 2024, and increased from 43% at September 30, 2025. Total available lines of credit expanded by $241.0 million, or 5%, as compared to a year ago, and line usage increased by $257.0 million, or 14%, over that period.

Diversified Deposit Base

The bank's diversified deposit base has grown on a year-over-year basis and core deposits, which exclude brokered deposits, represented 99% of total deposits.

(in thousands)	December 31, 2025				September 30, 2025				December 31, 2024
Retail	$	1,763,452	29.5	%	$	1,724,983	28.6	%	$	1,780,726	30.2	%
Commercial		2,179,999	36.5			2,288,701	38.0			2,269,049	38.4
Public funds		1,979,327	33.2			1,834,987	30.5			1,809,631	30.7
Core deposits		5,922,778	99.2			5,848,671	97.1			5,859,406	99.3
Brokered deposits		50,572	0.8			175,647	2.9			41,560	0.7
Total	$	5,973,350	100.0	%	$	6,024,318	100.0	%	$	5,900,966	100.0	%

Total deposits increased $72.4 million, or 1%, from $5.90 billion as of December 31, 2024, to $5.97 billion as of December 31, 2025. The increase in total deposits was primarily driven by an increase in core deposits of $63.4 million, or 1%. Public funds deposits grew annually by $169.7 million, or 9%, to $1.98 billion. Public funds deposits as a percentage of total deposits were 33%, up from 31% a year ago. Growth in public funds was positively impacted by the addition of new public funds customers in the Lake City Bank footprint, including their operating accounts. Commercial deposits contracted annually by $89.1 million, or 4%, to $2.18 billion. Retail deposits contracted by $17.3 million, or 1%, to $1.76 billion.

On a linked quarter basis, total deposits decreased $51.0 million, or 1%, from $6.02 billion at September 30, 2025, to $5.97 billion at December 31, 2025. Core deposits increased by $74.1 million, or 1%, while brokered deposits decreased by $125.1 million, or 71%. The linked quarter growth in core deposits was driven primarily by a seasonal growth in public funds of $144.3 million, or 8%. Additionally, retail deposits increased by $38.5 million, or 2%.

Average total deposits were $6.16 billion for the fourth quarter of 2025, an increase of $144.4 million, or 2%, from $6.01 billion for the fourth quarter of 2024. Average interest-bearing deposits drove the increase in average total deposits and increased by $154.3 million, or 3%. Contributing to the overall growth of interest-bearing deposits was an increase to average interest-bearing checking accounts of $344.7 million, or 10%. Offsetting this increase was a reduction in average time deposits of $196.1 million, or 21%. Average noninterest-bearing demand deposits decreased by $9.9 million, or 1%, to $1.27 billion.

On a linked quarter basis, average total deposits increased by $126.0 million, or 2%, from $6.03 billion for the third quarter of 2025 to $6.16 billion for the fourth quarter of 2025. Average interest-bearing deposits drove the increase to total average deposits, which improved by $98.3 million, or 2%. An increase to interest-bearing checking accounts drove the increase to interest bearing deposits, increasing by $118.5 million, or 3%. Offsetting this increase was a decrease in total average time deposits of $16.2 million, or 2%. Average noninterest bearing demand deposits increased by $27.6 million, or 2%.

Checking account growth as of December 31, 2025, compared to December 31, 2024, includes growth of $256.6 million, or 16%, in aggregate public fund checking account balances and growth of $3.3 million, or less than 1%, in aggregate retail checking account balances. Aggregate commercial checking account balances declined by $102.8 million, or 5%. The number of accounts has also grown for all three segments, with growth of 3% for public funds accounts, 2% for commercial accounts and 1% for retail accounts during 2025.

"Deposit growth, together with other sources of on balance sheet liquidity, funded our loan growth during the year. Public fund deposits increased by 9% during 2025 due to continued growth of public fund core operating accounts. In addition, the number of commercial checking accounts increased during 2025," commented O'Neill. "We continue to add functionality to the Lake City Bank digital app to increase usability by our customers. We are encouraged by the continued growth in digital adoption which improved to 53% in 2025 compared to 51% a year ago."

Asset Quality

Provision expense was $11.8 million for the year ended December 31, 2025, a decrease of $5.0 million, or 30%, as compared to $16.8 million during 2024. Provision expense in 2025 was partially driven by the recognition of additional specific allocations related to the downgrade of a previously disclosed commercial relationship. A partial charge off of $28.6 million was recognized during the second quarter of 2025 in conjunction with the disposition of the credit together with a recovery of $800,000 during the fourth quarter of 2025 for the aforementioned credit. The remainder of provision expense was attributable to growth of the loan portfolio and a net increase in specific allocations to other watch list credits. The company recorded no provision expense in the fourth quarter of 2025, compared to provision expense of $3.7 million in the fourth quarter of 2024 and $2.0 million for the linked third quarter of 2025.

The allowance for credit loss reserve to total loans was 1.28% at December 31, 2025, down from 1.68% at December 31, 2024 and 1.30% at September 30, 2025. The decrease in allowance coverage compared to the prior year was primarily driven by the previously disclosed partial charge off that was primarily reserved for in 2024. The company recorded net recoveries of $827,000 in the fourth quarter of 2025, compared to net charge offs of $1.4 million in the fourth quarter of 2024 and $384,000 during the linked third quarter of 2025. Annualized net recoveries to average loans were 0.06% for the fourth quarter of 2025, compared to annualized net charge offs to average loans of 0.11% for the fourth quarter of 2024 and 0.03% for the linked third quarter of 2025.

Nonperforming assets decreased by $36.0 million, or 63%, to $20.9 million as of December 31, 2025, versus $56.9 million as of December 31, 2024. On a linked quarter basis, nonperforming assets increased $1.9 million, or 10%, compared to $19.1 million as of September 30, 2025. The ratio of nonperforming assets to total assets at December 31, 2025 decreased to 0.30% from 0.85% at December 31, 2024, and was up from 0.28% at September 30, 2025.

Total individually analyzed and watch list loans decreased by $27.1 million, or 13%, to $184.0 million as of December 31, 2025, versus $211.1 million as of December 31, 2024. On a linked quarter basis, total individually analyzed and watch list loans increased by $26.8 million, or 17%, from $157.2 million at September 30, 2025. The linked quarter increase in total individually analyzed and watch list loans was driven by net downgrades to the watch list that were primarily concentrated with two unrelated commercial borrowers. Watch list loans as a percentage of total loans were 3.42% at December 31, 2025, a 71 basis point decrease compared to 4.13% at December 31, 2024, and a 42 basis point increase compared to 3.00% at September 30, 2025.

"Asset quality is stable and we are pleased to have ended 2025 with improved asset quality metrics as compared to 2024," commented Findlay. "Our overall asset quality metrics are near historical lows, which is excellent, and we are encouraged by the results of our year-end loan portfolio reviews during which we met with every commercial banker and reviewed their respective portfolios. Our borrowers continue to effectively manage through this period of heightened uncertainty impacted by the evolving state of tariffs and the challenges that accompanies them."

Investment Portfolio Overview

Total investment securities were $1.19 billion at December 31, 2025, reflecting an increase of $62.3 million, or 6%, as compared to $1.12 billion at December 31, 2024. Investment securities represented 17% of total assets on December 31, 2025, unchanged from 17% at December 31, 2024 and September 30, 2025. The company anticipates receiving principal and interest cash flows of approximately $134.5 million during 2026 from the investment securities portfolio and plans to use that liquidity to fund loan growth as well as reinvestments to the investment securities portfolio. Tax equivalent adjusted effective duration for the investment portfolio was 5.9 years at December 31, 2025, compared to 6.0 years at December 31, 2024 and 5.8 years at September 30, 2025.

Noninterest Income

Noninterest income decreased by $8.9 million, or 16%, to $48.0 million for the year ended December 31, 2025, compared to $56.8 million for the prior year. Noninterest income was elevated during the prior year primarily due to the net gain of $9.0 million on the sale of Visa shares and a $1.0 million insurance recovery. Adjusted core noninterest income, a non-GAAP financial measure that excludes the impact of these events, increased by $1.1 million, or 2%, from $46.8 million for the year ended December 31, 2024. Noninterest income for the year ended December 31, 2025, benefited from fee-based service increases to wealth advisory fees of $896,000, or 9%, loan and service fees of $462,000, or 4%, service charges on deposit accounts of $317,000, or 3%, and investment brokerage fees of $304,000, or 16%, as compared to the prior year. Wealth advisory fees growth was driven by continued client relationship expansion and increased assets under management. Commercial service fee growth was the primary contributor for the increase in loan and service fees. The expansion of investment brokerage fees was driven by increased volume and commissions on product mix. Offsetting these increases was a decrease in other income of $1.9 million, or 41%. The decline in other income was primarily attributable to reduced limited partnership income and the insurance recovery of $1.0 million in 2024.

Findlay noted, "Fee-based revenue was strong during 2025, in particular, wealth advisory fees and investment brokerage fees improved by double digit growth. The combined impact of growth in net interest income and core noninterest income during 2025 generated 6% revenue growth year-over-year."

The company's noninterest income increased $727,000, or 6%, to $12.6 million for the fourth quarter of 2025, compared to $11.9 million for the fourth quarter of 2024. Wealth advisory fees increased $277,000, or 10%, and investment brokerage fees increased $183,000, or 40%. Service fees on deposit accounts expanded $127,000, 4%. Bank owned life insurance increased $111,000, or 9%.

On a linked quarter basis, noninterest income for the fourth quarter of 2025 decreased by $351,000, or 3%, from $13.0 million during the third quarter of 2025. The linked quarter decrease was driven by a decrease to loan and service fees of $434,000, or 13%, and bank owned life insurance income of $240,000, or 15%. Loan and service fee income was elevated in the linked third quarter of 2025 due to the recognition of a loan syndication fee. Bank owned life insurance income decreased primarily from reduced performance for the company's variable bank owned life insurance policies, which trend directionally with the performance of the broader equity markets. Offsetting these declines were increases to wealth advisory fees of $121,000, or 4%, mortgage banking income of $73,000, and interest rate swap fee income of $63,000.

Noninterest Expense

Noninterest expense increased by $6.5 million, or 5%, from $125.1 million to $131.6 million for the year ended December 31, 2024 and 2025, respectively. Salaries and benefits expense increased $8.6 million, or 13%. The primary drivers for the increase to salaries and benefits expense were increased performance-based incentive compensation accruals of $5.3 million and salaries and wages of $3.3 million. Data processing fees and supplies expense increased $1.4 million, or 9%, from continued investment in customer-facing and operational technology solutions, including artificial intelligence. Net occupancy expense increased $659,000, or 10%, from the continued expansion of the bank's branch and operational networks, with the 55th branch location opening in Westfield, Indiana during 2025. Offsetting these increases was a decrease in professional fees of $1.3 million, or 14%, and other expense of $3.1 million, or 24%. Legal accruals of $4.5 million were incurred in 2024 that were related to a one-time matter, previously disclosed. Adjusted core noninterest expense, a non-GAAP financial measure, increased $11.1 million, or 9%, to $131.6 million from $120.5 million for the year ended December 31, 2025 and 2024, respectively.

Noninterest expense increased $2.8 million, or 9%, to $33.4 million for the fourth quarter of 2025, compared to $30.7 million during the fourth quarter of 2024. Salaries and benefits expense increased by $2.6 million, or 15%, primarily the result of increased accruals related to performance-based incentive compensation plans as strong year-to-date performance impacting these accruals. Data processing fees and supplies expense increased $259,000, or 7%. Net occupancy expense increased $214,000, or 13%. Corporate and business development expense increased $198,000, or 21%. Offsetting these increases was a decrease to professional fees of $389,000, or 17%.

On a linked quarter basis, noninterest expense decreased by $1.5 million, or 4%, from $35.0 million during the third quarter of 2025. The primary driver behind the linked quarter decrease to noninterest expense was a decrease to other expense of $573,000, or 20%. This decrease was due to the timing of semi-annual stock-based compensation awards to directors, that were paid in July. Salaries and employee benefits expense decreased $533,000, or 3%. Corporate and business development expenses decreased $415,000, or 27%.

The company's efficiency ratio for the year ended December 31, 2025, was 48.9%, compared to 49.3% for the year ended December 31, 2024. The company's adjusted core efficiency ratio, a non-GAAP financial measure, was 48.9% for the year ended December 31, 2025, as compared to 49.5% for the year ended December 31, 2024.

The company's efficiency ratio was 47.9% for the fourth quarter of 2025, compared to 48.2% for the fourth quarter of 2024 and 50.7% for the linked third quarter of 2025.

"The growth in noninterest expense during 2025 reflects the addition of revenue producing team members in commercial banking, wealth advisory and private banking teams that support our organic loan and deposit growth strategies. We also continued to invest in our branch footprint with a focus on adding branches in the Indianapolis market," stated Findlay. "Our low efficiency ratio highlights our disciplined growth strategy and the impact of revenue outpacing expense growth. We have plans for accelerated branch development in Indianapolis as well as South Bend, Fort Wayne and Elkhart over the next several years as we continue to grow market share in our Indiana footprint."

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." Lake City Bank, a $7.0 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 55 branch offices and a robust digital banking platform. Lake City Bank's community banking model prioritizes building in-market long-term customer relationships while delivering technology-forward solutions for retail and commercial clients.

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, 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 the company's operating environment or its 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 economic, business and market conditions and changes, particularly in our Indiana market area, including prevailing interest rates and the rate of inflation; governmental trade, monetary and fiscal policies; including any effects resulting from international government conflicts; the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities; and changes in borrowers' credit risks and payment behaviors, 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 FOURTH QUARTER 2025 FINANCIAL HIGHLIGHTS

	Three Months Ended									Twelve Months Ended
(Unaudited – Dollars in thousands, except per share data)	December 31,			September 30,			December 31,			December 31,			December 31,
END OF PERIOD BALANCES		2025			2025			2024			2025			2024
Assets	$	6,990,022		$	6,895,028		$	6,678,374		$	6,990,022		$	6,678,374
Investments		1,185,270			1,164,737			1,122,994			1,185,270			1,122,994
Loans		5,375,349			5,248,619			5,117,948			5,375,349			5,117,948
Allowance for Credit Losses		68,995			68,168			85,960			68,995			85,960
Deposits		5,973,350			6,024,318			5,900,966			5,973,350			5,900,966
Brokered Deposits		50,572			175,647			41,560			50,572			41,560
Core Deposits (1)		5,922,778			5,848,671			5,859,406			5,922,778			5,859,406
Total Equity		762,492			747,503			683,911			762,492			683,911
Goodwill Net of Deferred Tax Assets		3,803			3,803			3,803			3,803			3,803
Tangible Common Equity (2)		758,689			743,700			680,108			758,689			680,108
Adjusted Tangible Common Equity (2)		885,298			883,865			846,040			885,298			846,040
AVERAGE BALANCES
Total Assets	$	6,993,954		$	6,850,671		$	6,795,596		$	6,878,627		$	6,662,718
Earning Assets		6,641,584			6,492,640			6,470,920			6,534,373			6,328,498
Investments		1,175,389			1,127,094			1,134,011			1,141,189			1,134,979
Loans		5,271,687			5,205,833			5,086,614			5,223,458			5,039,406
Total Deposits		6,155,526			6,029,557			6,011,122			6,039,821			5,836,025
Interest Bearing Deposits		4,883,496			4,785,176			4,729,201			4,785,109			4,578,219
Interest Bearing Liabilities		4,893,050			4,818,115			4,729,206			4,829,098			4,644,553
Total Equity		760,954			717,428			693,744			718,029			662,087
INCOME STATEMENT DATA
Net Interest Income	$	57,193		$	56,073		$	51,694		$	221,017		$	196,679
Net Interest Income-Fully Tax Equivalent		58,307			57,180			52,804			225,458			201,363
Provision for Credit Losses		0			2,000			3,691			11,800			16,750
Noninterest Income		12,603			12,954			11,876			47,971			56,844
Noninterest Expense		33,445			34,965			30,653			131,605			125,084
Net Income		29,906			26,404			24,190			103,361			93,478
Pretax Pre-Provision Earnings (2)		36,351			34,062			32,917			137,383			128,439
PER SHARE DATA
Basic Net Income Per Common Share	$	1.16		$	1.03		$	0.94		$	4.02		$	3.64
Diluted Net Income Per Common Share		1.16			1.03			0.94			4.01			3.63
Cash Dividends Declared Per Common Share		0.50			0.50			0.48			2.00			1.92
Dividend Payout		43.10	%		48.54	%		51.06	%		49.88	%		52.89	%
Book Value Per Common Share (equity per share issued)	$	30.02		$	29.08		$	26.62		$	30.02		$	26.62

	Three Months Ended									Twelve Months Ended
(Unaudited – Dollars in thousands, except per share data)	December 31,			September 30,			December 31,			December 31,			December 31,
PER SHARE DATA (continued)		2025			2025			2024			2025			2024
Tangible Book Value Per Common Share (2)		29.87			28.93			26.47			29.87			26.47
Market Value – High	$	65.43		$	69.40		$	78.61		$	71.77		$	78.61
Market Value – Low		56.04			59.08			61.10			50.00			57.45
Basic Weighted Average Common Shares Outstanding		25,623,703			25,703,699			25,686,276			25,687,159			25,676,543
Diluted Weighted Average Common Shares Outstanding		25,770,280			25,821,360			25,792,460			25,799,047			25,769,018
KEY RATIOS
Return on Average Assets		1.70	%		1.53	%		1.42	%		1.50	%		1.40	%
Return on Average Total Equity		15.59			14.60			13.87			14.40			14.12
Average Equity to Average Assets		10.88			10.47			10.21			10.44			9.94
Net Interest Margin		3.48			3.50			3.25			3.45			3.18
Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income)		47.92			50.65			48.22			48.93			49.34
Loans to Deposits		89.99			87.12			86.73			89.99			86.73
Investment Securities to Total Assets		16.96			16.89			16.82			16.96			16.82
Tier 1 Leverage (3)		12.39			12.56			12.15			12.39			12.15
Tier 1 Risk-Based Capital (3)		14.77			15.05			14.64			14.77			14.64
Common Equity Tier 1 (CET1) (3)		14.77			15.05			14.64			14.77			14.64
Total Capital (3)		15.92			16.21			15.90			15.92			15.90
Tangible Capital (2)		10.86			10.79			10.19			10.86			10.19
Adjusted Tangible Capital (2)		12.45			12.57			12.37			12.45			12.37
ASSET QUALITY
Loans Past Due 30 - 89 Days	$	2,320		$	984		$	4,273		$	2,320		$	4,273
Loans Past Due 90 Days or More		7			7			28			7			28
Nonaccrual Loans		20,872			18,701			56,431			20,872			56,431
Nonperforming Loans		20,879			18,708			56,459			20,879			56,459
Other Real Estate Owned		0			284			284			0			284
Other Nonperforming Assets		47			82			143			47			143
Total Nonperforming Assets		20,926			19,074			56,886			20,926			56,886
Individually Analyzed Loans		43,024			39,497			78,647			43,024			78,647
Non-Individually Analyzed Watch List Loans		140,997			117,746			132,499			140,997			132,499
Total Individually Analyzed and Watch List Loans		184,021			157,243			211,146			184,021			211,146
Gross Charge Offs		221			573			1,657			30,414			3,468
Recoveries		1,048			189			299			1,649			706
Net Charge Offs/(Recoveries)		(827	)		384			1,358			28,765			2,762

	Three Months Ended									Twelve Months Ended
(Unaudited – Dollars in thousands, except per share data)	December 31,			September 30,			December 31,			December 31,			December 31,
OTHER DATA		2025			2025			2024			2025			2024
Net Charge Offs/(Recoveries) to Average Loans	(0.06)%				0.03	%		0.11	%		0.55	%		0.05	%
Credit Loss Reserve to Loans		1.28			1.30			1.68			1.28			1.68
Credit Loss Reserve to Nonperforming Loans		330.45			364.38			152.25			330.45			152.25
Nonperforming Loans to Loans		0.39			0.36			1.10			0.39			1.10
Nonperforming Assets to Assets		0.30			0.28			0.85			0.30			0.85
Total Individually Analyzed and Watch List Loans to Total Loans		3.42			3.00			4.13			3.42			4.13
Full Time Equivalent Employees		669			666			643			669			643
Offices		55			55			54			55			54

______________________________

(1)  Core deposits equals deposits less brokered deposits.

(2)  Non-GAAP financial measure - see "Reconciliation of Non-GAAP Financial Measures".

(3)  Capital ratios for December 31, 2025 are preliminary until the Call Report is filed.


CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share data)

	December 31, 2025			December 31, 2024
	(Unaudited)
ASSETS
Cash and due from banks	$	57,139		$	71,733
Short-term investments		84,179			96,472
Total cash and cash equivalents		141,318			168,205

Securities available-for-sale, at fair value		1,052,062			991,426
Securities held-to-maturity, at amortized cost (fair value of $117,510 and $113,107, respectively)		133,208			131,568
Real estate mortgage loans held-for-sale		2,707			1,700
Loans, net of allowance for credit losses of $68,995 and $85,960		5,306,354			5,031,988
Land, premises and equipment, net		65,542			60,489
Bank owned life insurance		129,978			113,320
Federal Reserve and Federal Home Loan Bank stock		21,420			21,420
Accrued interest receivable		28,997			28,446
Goodwill		4,970			4,970
Other assets		103,466			124,842
Total assets	$	6,990,022		$	6,678,374


LIABILITIES
Noninterest bearing deposits	$	1,221,327		$	1,297,456
Interest bearing deposits		4,752,023			4,603,510
Total deposits		5,973,350			5,900,966

Borrowings - Federal Home Loan Bank advances:
Short-term advance		170,000			0
Long-term advance		1,200			0
Other borrowings		13,000			0
Total borrowings		184,200			0

Accrued interest payable		8,868			15,117
Other liabilities		61,112			78,380
Total liabilities		6,227,530			5,994,463

STOCKHOLDERS' EQUITY
Common stock: 90,000,000 shares authorized, no par value
26,023,644 shares issued and 25,219,634 outstanding as of December 31, 2025
25,978,831 shares issued and 25,509,592 outstanding as of December 31, 2024		136,965			129,664
Retained earnings		788,345			736,412
Accumulated other comprehensive income (loss)		(127,137	)		(166,500	)
Treasury stock at cost (804,010 shares as of December 31, 2025, 469,239 shares as of December 31, 2024)		(35,770	)		(15,754	)
Total stockholders' equity		762,403			683,822
Noncontrolling interest		89			89
Total equity		762,492			683,911
Total liabilities and equity	$	6,990,022		$	6,678,374


CONSOLIDATED STATEMENTS OF INCOME (unaudited - in thousands, except share and per share data)

	Three Months Ended December 31,				Twelve Months Ended December 31,
		2025		2024		2025		2024
NET INTEREST INCOME
Interest and fees on loans
Taxable	$	84,208	$	83,253	$	335,856	$	335,639
Tax exempt		316		296		1,186		2,126
Interest and dividends on securities
Taxable		3,720		2,997		14,055		12,048
Tax exempt		3,908		3,914		15,650		15,714
Other interest income		1,856		2,910		6,988		7,631
Total interest income		94,008		93,370		373,735		373,158

Interest on deposits		36,717		41,676		150,732		172,759
Interest on short-term borrowings		98		0		1,986		3,720
Total interest expense		36,815		41,676		152,718		176,479

NET INTEREST INCOME		57,193		51,694		221,017		196,679

Provision for credit losses		0		3,691		11,800		16,750

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		57,193		48,003		209,217		179,929

NONINTEREST INCOME
Wealth advisory fees		2,976		2,699		11,365		10,469
Investment brokerage fees		639		456		2,198		1,894
Service charges on deposit accounts		2,952		2,825		11,474		11,157
Loan and service fees		2,985		2,977		12,294		11,832
Merchant and interchange fee income		848		889		3,416		3,542
Bank owned life insurance income		1,327		1,216		4,256		4,210
Interest rate swap fee income		63		0		83		0
Mortgage banking income		67		48		134		116
Net securities gains (losses)		0		0		0		(46	)
Net gain on Visa shares		0		0		0		8,996
Other income		746		766		2,751		4,674
Total noninterest income		12,603		11,876		47,971		56,844

NONINTEREST EXPENSE
Salaries and employee benefits		19,881		17,261		75,293		66,728
Net occupancy expense		1,920		1,706		7,524		6,865
Equipment costs		1,422		1,405		5,716		5,612
Data processing fees and supplies		4,001		3,742		16,534		15,161
Corporate and business development		1,148		950		5,277		4,965
FDIC insurance and other regulatory fees		844		894		3,361		3,465
Professional fees		1,886		2,275		7,698		8,950
Other expense		2,343		2,420		10,202		13,338
Total noninterest expense		33,445		30,653		131,605		125,084

INCOME BEFORE INCOME TAX EXPENSE		36,351		29,226		125,583		111,689
Income tax expense		6,445		5,036		22,222		18,211
NET INCOME	$	29,906	$	24,190	$	103,361	$	93,478

BASIC WEIGHTED AVERAGE COMMON SHARES		25,623,703		25,686,276		25,687,159		25,676,543

BASIC EARNINGS PER COMMON SHARE	$	1.16	$	0.94	$	4.02	$	3.64

DILUTED WEIGHTED AVERAGE COMMON SHARES		25,770,280		25,792,460		25,799,047		25,769,018

DILUTED EARNINGS PER COMMON SHARE	$	1.16	$	0.94	$	4.01	$	3.63


LAKELAND FINANCIAL CORPORATION LOAN DETAIL (unaudited, in thousands)

	December 31, 2025					September 30, 2025					December 31, 2024
Commercial and industrial loans:
Working capital lines of credit loans	$	711,742		13.2	%	$	709,645		13.5	%	$	649,609		12.7	%
Non-working capital loans		841,947		15.7			808,371		15.4			801,256		15.6
Total commercial and industrial loans		1,553,689		28.9			1,518,016		28.9			1,450,865		28.3

Commercial real estate and multi-family residential loans:
Construction and land development loans		497,239		9.2			574,896		10.9			567,781		11.1
Owner occupied loans		807,335		15.0			804,253		15.3			807,090		15.8
Nonowner occupied loans		923,708		17.2			863,085		16.5			872,671		17.0
Multifamily loans		438,233		8.1			413,016		7.9			344,978		6.7
Total commercial real estate and multi-family residential loans		2,666,515		49.5			2,655,250		50.6			2,592,520		50.6

Agri-business and agricultural loans:
Loans secured by farmland		155,073		2.9			153,904		2.9			156,609		3.1
Loans for agricultural production		251,783		4.7			186,068		3.6			230,787		4.5
Total agri-business and agricultural loans		406,856		7.6			339,972		6.5			387,396		7.6

Other commercial loans		97,381		1.8			91,833		1.7			95,584		1.9
Total commercial loans		4,724,441		87.8			4,605,071		87.7			4,526,365		88.4

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		267,134		5.0			273,580		5.2			259,286		5.1
Open end and junior lien loans		251,185		4.7			241,256		4.6			214,125		4.2
Residential construction and land development loans		18,873		0.3			18,706		0.4			16,818		0.3
Total consumer 1-4 family mortgage loans		537,192		10.0			533,542		10.2			490,229		9.6

Other consumer loans		116,224		2.2			112,430		2.1			104,041		2.0
Total consumer loans		653,416		12.2			645,972		12.3			594,270		11.6
Subtotal		5,377,857		100.0	%		5,251,043		100.0	%		5,120,635		100.0	%
Less: Allowance for credit losses		(68,995	)				(68,168	)				(85,960	)
Net deferred loan fees		(2,508	)				(2,424	)				(2,687	)
Loans, net	$	5,306,354				$	5,180,451				$	5,031,988


LAKELAND FINANCIAL CORPORATION DEPOSITS AND BORROWINGS (unaudited, in thousands)

	December 31, 2025		September 30, 2025		December 31, 2024
Noninterest bearing demand deposits	$	1,221,327	$	1,268,241	$	1,297,456
Savings and transaction accounts:
Savings deposits		285,834		281,291		276,179
Interest bearing demand deposits		3,715,463		3,689,037		3,471,455
Time deposits:
Deposits of $100,000 or more		549,381		580,499		642,777
Other time deposits		201,345		205,250		213,099
Total deposits	$	5,973,350	$	6,024,318	$	5,900,966
FHLB advances and other borrowings		184,200		56,200		0
Total funding sources	$	6,157,550	$	6,080,518	$	5,900,966


LAKELAND FINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS (UNAUDITED)

	Three Months Ended December 31, 2025							Three Months Ended September 30, 2025							Three Months Ended December 31, 2024
(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)	$	5,245,483		$	84,208	6.37	%	$	5,180,847		$	85,490	6.55	%	$	5,060,397		$	83,253	6.54	%
Tax exempt (1)		26,204			392	5.93			24,986			354	5.62			26,217			364	5.52
Investments: (1)
Securities		1,175,389			8,666	2.93			1,127,094			8,444	2.97			1,134,011			7,953	2.79
Short-term investments		2,752			24	3.46			2,795			27	3.83			2,765			29	4.17
Interest bearing deposits		191,756			1,832	3.79			156,918			1,679	4.25			247,530			2,881	4.63
Total earning assets	$	6,641,584		$	95,122	5.68	%	$	6,492,640		$	95,994	5.87	%	$	6,470,920		$	94,480	5.81	%
Less: Allowance for credit losses		(68,391	)						(67,115	)						(84,687	)
Nonearning Assets
Cash and due from banks		68,620							62,671							67,994
Premises and equipment		64,928							64,391							60,325
Other nonearning assets		287,213							298,084							281,044
Total assets	$	6,993,954						$	6,850,671						$	6,795,596

Interest Bearing Liabilities
Savings deposits	$	280,620		$	40	0.06	%	$	284,553		$	41	0.06	%	$	274,960		$	43	0.06	%
Interest bearing checking accounts		3,850,205			29,906	3.08			3,731,706			31,382	3.34			3,505,470			31,562	3.58
Time deposits:
In denominations under $100,000		203,083			1,635	3.19			204,997			1,678	3.25			214,429			1,921	3.56
In denominations over $100,000		549,588			5,136	3.71			563,920			5,345	3.76			734,342			8,150	4.42
Short-term borrowings		8,354			98	4.65			31,739			368	4.60			5			0	5.30
Long-term borrowings		1,200			0	0.00			1,200			0	0.00			0			0	0.00
Total interest bearing liabilities	$	4,893,050		$	36,815	2.99	%	$	4,818,115		$	38,814	3.20	%	$	4,729,206		$	41,676	3.51	%
Noninterest Bearing Liabilities
Demand deposits		1,272,030							1,244,381							1,281,921
Other liabilities		67,920							70,747							90,725
Stockholders' Equity		760,954							717,428							693,744
Total liabilities and stockholders' equity	$	6,993,954						$	6,850,671						$	6,795,596
Interest Margin Recap
Interest income/average earning assets					95,122	5.68	%					95,994	5.87	%					94,480	5.81	%
Interest expense/average earning assets					36,815	2.20						38,814	2.37						41,676	2.56
Net interest income and margin				$	58,307	3.48	%				$	57,180	3.50	%				$	52,804	3.25	%

(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 $1.11 million, in the three-month periods ended December 31, 2025, September 30, 2025, and December 31, 2024.

(2)  Loan fees, which are immaterial in relation to total taxable loan interest income for the three-month periods ended December 31, 2025, September 30, 2025, and December 31, 2024, 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 based on 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 in accumulated other comprehensive income (loss) ("AOCI"). Tangible book value per common 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 and performance.

A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

	Three Months Ended									Twelve Months Ended
	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Total Equity	$	762,492		$	747,503		$	683,911		$	762,492		$	683,911
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		758,689			743,700			680,108			758,689			680,108
Market Value Adjustment in AOCI		126,609			140,165			165,932			126,609			165,932
Adjusted Tangible Common Equity		885,298			883,865			846,040			885,298			846,040

Assets	$	6,990,022		$	6,895,028		$	6,678,374		$	6,990,022		$	6,678,374
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		6,986,219			6,891,225			6,674,571			6,986,219			6,674,571
Market Value Adjustment in AOCI		126,609			140,165			165,932			126,609			165,932
Adjusted Tangible Assets		7,112,828			7,031,390			6,840,503			7,112,828			6,840,503

Ending Common Shares Issued		25,396,653			25,704,243			25,689,730			25,396,653			25,689,730

Tangible Book Value Per Common Share	$	29.87		$	28.93		$	26.47		$	29.87		$	26.47

Tangible Common Equity/Tangible Assets		10.86	%		10.79	%		10.19	%		10.86	%		10.19	%
Adjusted Tangible Common Equity/Adjusted Tangible Assets		12.45	%		12.57	%		12.37	%		12.45	%		12.37	%

Net Interest Income	$	57,193		$	56,073		$	51,694		$	221,017		$	196,679
Plus: Noninterest Income		12,603			12,954			11,876			47,971			56,844
Minus: Noninterest Expense		(33,445	)		(34,965	)		(30,653	)		(131,605	)		(125,084	)
Pretax Pre-Provision Earnings	$	36,351		$	34,062		$	32,917		$	137,383		$	128,439

Adjusted core noninterest income, 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 based on GAAP amounts. These adjusted amounts are calculated by excluding the impact of the net gain on Visa shares, legal accrual and wire fraud loss insurance recoveries for the periods presented below. Management considers these measures of financial performance to be meaningful to understanding the company's core business performance for the periods presented below.

A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

	Twelve Months Ended
	December 31, 2025			December 31, 2024
Noninterest Income	$	47,971		$	56,844
Less: Net Gain on Visa Shares		0			(8,996	)
Less: Insurance Recovery		0			(1,000	)
Adjusted Core Noninterest Income	$	47,971		$	46,848

Noninterest Expense	$	131,605		$	125,084
Less: Legal Accrual		0			(4,537	)
Adjusted Core Noninterest Expense	$	131,605		$	120,547

Earnings Before Income Taxes	$	125,583		$	111,689
Adjusted Core Impact:
Noninterest Income		0			(9,996	)
Noninterest Expense		0			4,537
Total Adjusted Core Impact		0			(5,459	)
Adjusted Earnings Before Income Taxes		125,583			106,230
Tax Effect		(22,222	)		(16,853	)
Core Operational Profitability (1)	$	103,361		$	89,377

Diluted Earnings Per Common Share	$	4.01		$	3.63
Impact of Adjusted Core Items		0.00			(0.16	)
Core Operational Diluted Earnings Per Common Share	$	4.01		$	3.47

Adjusted Core Efficiency Ratio		48.93	%		49.49	%

(1) Core operational profitability was $4.1 million lower than the reported net income for the twelve months ended December 31, 2024.

Contact

Lisa M. O'Neill

Executive Vice President and Chief Financial Officer

(574) 267-9125

lisa.oneill@lakecitybank.com

Lakeland Financial Reports Record Quarterly Performance with a 24% Increase in Net Income; Annual Net Income Grows by 11% to $103.4 Million, as Net Interest Income Expands by 12%