Lakeland Financial | 10-K: FY2025 Revenue: USD 421.71 M

Revenue: As of FY2025, the actual value is USD 421.71 M.EPS: As of FY2025, the actual value is USD 4.01, beating the estimate of USD 3.906.EBIT: As of FY2025, the actual value is USD -95.43 M.Lakeland Financial Corporation operates as one reportable operating segment, with financial performance monitored and evaluated on a Company-wide basis.Operational MetricsNet Income: Net income was $103.4 million in 2025, an increase of 10.6% from $93.5 million in 2024. Net income for 2024 was less than 1% lower compared to $93.8 million in 2023.Return on Average Total Assets (ROAA): ROAA was 1.50% in 2025, versus 1.40% in 2024 and 1.45% in 2023.Return on Average Total Equity (ROAE): ROAE was 14.40% in 2025, versus 14.12% in 2024 and 15.93% in 2023.Dividend Payout Ratio: The dividend payout ratio was 49.88% in 2025, versus 52.89% in 2024 and 50.41% in 2023.Average Equity to Average Assets Ratio: This ratio was 10.44% in 2025, compared to 9.94% in 2024 and 9.11% in 2023.Pretax Pre-Provision Earnings (Non-GAAP): Pretax pre-provision earnings were $137.4 million for 2025, an increase of 7.0% compared to $128.4 million for 2024, and $116.2 million for 2023.Efficiency Ratio: The efficiency ratio was 48.93% in 2025, 49.34% in 2024, and 52.94% in 2023.Adjusted Core Operational Profitability (Non-GAAP): Core operational profitability was $103.4 million for 2025, an increase of 15.6% compared to $89.4 million for 2024, and $101.6 million for 2023.Net Interest Income: Net interest income increased by $24.3 million to $221.0 million in 2025 compared to $196.7 million in 2024, and $197.0 million in 2023.Net Interest Margin: Net interest margin increased 27 basis points to 3.45% in 2025 versus 3.18% in 2024, and 3.31% in 2023.Provision for Credit Losses: The Company recorded a provision for credit losses of $11.8 million in 2025 compared to $16.8 million in 2024 and $5.9 million in 2023.Noninterest Income: Noninterest income decreased by $8.9 million, or 15.6%, to $48.0 million for 2025, compared to $56.8 million for 2024, and $49.9 million for 2023.Adjusted Core Noninterest Income (Non-GAAP): Adjusted core noninterest income increased by $1.1 million, or 2.4%, to $48.0 million for 2025, from $46.8 million for 2024, and $43.6 million for 2023.Noninterest Expense: Noninterest expense increased by $6.5 million, or 5.2%, from $125.1 million to $131.6 million for 2025, compared to $130.7 million in 2023.Adjusted Core Noninterest Expense (Non-GAAP): Adjusted core noninterest expense increased $11.1 million, or 9.2%, to $131.6 million for 2025, from $120.5 million for 2024, and $114.0 million for 2023.Total Assets: Total assets were $6.990 billion as of December 31, 2025, an increase of $311.6 million or 4.7%, from $6.678 billion as of December 31, 2024.Total Loans Outstanding: Total loans outstanding increased by $257.4 million, or 5.0%, to $5.375 billion at December 31, 2025, from $5.118 billion at December 31, 2024.Total Deposits: Total deposits increased $72.4 million, or 1.2%, to $5.973 billion at December 31, 2025, from $5.901 billion at December 31, 2024.Total Borrowings Outstanding: Borrowings outstanding were $184.2 million at December 31, 2025, compared to no borrowings outstanding at December 31, 2024.Allowance for Credit Losses: The allowance for credit losses was $69.0 million as of December 31, 2025, compared to $86.0 million as of December 31, 2024, and $72.0 million as of December 31, 2023.Allowance for Credit Losses to Total Loans: This ratio was 1.28% as of December 31, 2025, versus 1.68% at December 31, 2024, and 1.46% at December 31, 2023.Net Charge Offs to Average Loans: Net charge offs were $28.8 million, or 0.55% of average loans, in 2025, compared to $2.8 million, or 0.05% of average loans, in 2024, and $6.5 million, or 0.13% of average loans, in 2023.Nonperforming Loans: Total nonperforming loans were $20.9 million, or 0.39% of total loans, at December 31, 2025, versus $56.4 million, or 1.10% of total loans, at December 31, 2024.Total Investment Securities: Total investment securities increased by $62.3 million to $1.185 billion at December 31, 2025, from $1.123 billion at December 31, 2024.Investment Securities as % of Total Assets: Investment securities represented 17.0% of total assets on December 31, 2025, compared to 16.8% on December 31, 2024, and 18.1% on December 31, 2023.Bank Owned Life Insurance: Increased by $16.7 million to $130.0 million at December 31, 2025, and by $4.2 million to $113.3 million at December 31, 2024, from $109.1 million at December 31, 2023.Total Risk-Based Capital Ratio: 15.92% as of December 31, 2025.Tier I Risk-Based Capital Ratio: 14.77% as of December 31, 2025.Common Tier 1 Risk-Based Capital Ratio: 14.77% as of December 31, 2025.Tier 1 Leverage Ratio: 12.39% as of December 31, 2025.Tangible Equity Ratio: 10.86% as of December 31, 2025.Adjusted Tangible Common Equity to Adjusted Tangible Assets: 12.45% as of December 31, 2025.Unrealized Losses in Available-for-Sale Investment Securities: $143.3 million at December 31, 2025.Segment Revenue (Major Revenue Categories)Wealth Advisory Fees: $11.365 million in 2025, an 8.6% increase from $10.469 million in 2024, and $9.080 million in 2023.Investment Brokerage Fees: $2.198 million in 2025, a 16.1% increase from $1.894 million in 2024, and $1.815 million in 2023.Service Charges on Deposit Accounts: $11.474 million in 2025, a 2.8% increase from $11.157 million in 2024, and $10.773 million in 2023.Loan and Service Fees: $12.294 million in 2025, a 3.9% increase from $11.832 million in 2024, and $11.750 million in 2023.Merchant and Interchange Fee Income: $3.416 million in 2025, a -3.6% decrease from $3.542 million in 2024, and $3.651 million in 2023.Bank Owned Life Insurance Income: $4.256 million in 2025, a 1.1% increase from $4.210 million in 2024, and $3.133 million in 2023.Interest Rate Swap Fee Income: $83,000 in 2025, compared to $0 in 2024, and $794,000 in 2023.Mortgage Banking Income (Loss): $134,000 in 2025, compared to $116,000 in 2024, and - $254,000 in 2023.Net Securities Gains (Losses): $0 in 2025, compared to - $46,000 in 2024, and - $25,000 in 2023.Net Gain on Visa Shares: $0 in 2025, compared to $8.996 million in 2024, and $0 in 2023.Other Income: $2.751 million in 2025, compared to $4.674 million in 2024, and $9.141 million in 2023.Loan Portfolio Composition (as of December 31, 2025)Commercial and Industrial Loans: $1.554 billion (28.9% of total loans), including $711.742 million in working capital lines of credit and $841.947 million in non-working capital loans.Commercial Real Estate and Multi-family Residential Loans: $2.667 billion (49.5% of total loans), comprising $497.239 million in construction and land development, $807.335 million in owner occupied, $923.708 million in nonowner occupied, and $438.233 million in multi-family loans.Agri-business and Agricultural Loans: $406.856 million (7.6% of total loans), with $155.073 million secured by farmland and $251.783 million for agricultural production.Other Commercial Loans: $97.381 million (1.8% of total loans).Consumer 1-4 Family Mortgage Loans: $537.192 million (10.0% of total loans), consisting of $267.134 million closed end first mortgage, $251.185 million open end and junior lien, and $18.873 million residential construction and land development loans.Other Consumer Loans: $116.224 million (2.2% of total loans).Deposit Portfolio Composition (as of December 31, 2025)Commercial Deposits: $2.180 billion (36.5% of total deposits).Retail Deposits: $1.763 billion (29.5% of total deposits).Public Fund Deposits: $1.979 billion (33.2% of total deposits).Core Deposits: $5.923 billion (99.2% of total deposits).Brokered Deposits: $50.572 million (0.8% of total deposits).Cash FlowInvestment Securities Cash Flows: The Company anticipates receiving approximately $134.5 million of principal and interest cash flows from investment securities in 2026.Other Unique MetricsTotal Branches: 55 offices as of December 31, 2025.Employees: 701 people strong as of December 31, 2025, including 655 full-time, 20 part-time, and 26 seasonal/temporary employees.Women/People of Color Employees: 73% of employees identify as women or people of color.Women Officers: Women represent 60% of the Bank’s officers (186 out of 310 officers).Women in Senior Leadership Council: 38% (9 of 24 members) are women.Women in Executive Management Committee: 56% (5 of 9 members) are women.Board Diversity: 5 out of 13 board members identify as women or people of color.Lake City University Learning Hours: Employees averaged 21 hours of instructor-led learning per employee in 2025.Employee Promotions: 176 employees were promoted in 2025.New Hires: 132 employees were hired externally in 2025.Tuition Reimbursement Users: 23 employees used tuition reimbursement in 2025.Unused Loan Commitments: $2.627 billion as of December 31, 2025.Standby Letters of Credit: $47.358 million as of December 31, 2025.Available Liquidity: $3.526 billion at December 31, 2025.Secondary Funding Sources: $3.747 billion approved, with $221.8 million utilized as of December 31, 2025.Federal Funds Lines: $395.0 million available with thirteen correspondent banks, none drawn as of December 31, 2025.FHLB Borrowing Capacity: Up to $473.6 million under current collateral, with additional collateral of $241.8 million available to pledge as of December 31, 2025.Federal Reserve Bank Discount Window Capacity: Up to $1.190 billion available as of December 31, 2025, with no balances outstanding.American Financial Exchange (AFX) Approval: $312.0 million approved for unsecured, overnight lines, none outstanding at year-end December 31, 2025.Effective Duration of Investment Portfolio: Approximately 5.94 years as of December 31, 2025.Unallocated Allowance for Credit Losses: $325,000 at December 31, 2025.Watch List Loans: Decreased $27.1 million, or 12.8%, to $184.0 million as of December 31, 2025, representing 3.4% of total loans.Classified Loans (as of December 31, 2025): $134.0 million as Special Mention, $50.0 million as Substandard, $74,000 as Doubtful, and none as Loss.Outlook / GuidanceLakeland Financial Corporation plans for continued organic balance sheet growth in 2026, alongside maintaining a disciplined credit philosophy and proactive management of loan portfolio challenges, and continuing investments in human and technological capital. The Lake City Bank Innovation and Technology Center is scheduled for completion, and the branch network will expand into Boone County, Indiana, with a new office opening in Whitestown in 2026. Beyond 2026, the Company intends to accelerate branch development in Indianapolis, South Bend, Fort Wayne, and Elkhart to become a recognized Midwest leader in community banking.