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Mar 31, 2020
Lakeland Financial Q1 2020 Earnings Report
Lakeland Financial reported a decrease in net income and diluted earnings per share for the first quarter of 2020, while managing the impact of COVID-19.
Key Takeaways
Lakeland Financial Corporation reported a decrease in net income to $17.3 million for Q1 2020, a 20% decrease compared to Q1 2019. Diluted earnings per share also decreased by 20% to $0.67. The company focused on managing the challenges presented by the COVID-19 pandemic, taking aggressive steps to manage net interest margin and working with borrowers during this period.
Net income for the first quarter of 2020 was $17.3 million, a 20% decrease compared to the first quarter of 2019.
Diluted earnings per share decreased 20% to $0.67 for the first quarter of 2020.
Pretax pre-provision earnings increased by 1% to $27.5 million for the first quarter of 2020.
The company recorded a provision for loan losses of $6.6 million in the first quarter of 2020, a 450% increase compared to the first quarter of 2019, driven by the potential negative impact of the COVID-19 pandemic.
Forward Guidance
Lakeland Financial Corporation did not provide a specific financial outlook for future periods in the provided document. However, they discussed their management of the COVID-19 crisis, credit risk, and liquidity preparedness.
Positive Outlook
- The Lake City Bank team has done an exceptional job managing through an intensely challenging period.
- The company entered 2020 with an optimistic outlook and strong momentum in all business units.
- Core operating performance was strong as the company moved into March.
- Net interest margin was improving versus the linked fourth quarter.
- The company was experiencing healthy growth in core commercial and retail deposits as well as strong loan growth.
Challenges Ahead
- The challenging environment created by the COVID-19 pandemic affected borrowers and the regional economy.
- Interest rate actions by the Federal Reserve Bank quickly influenced net interest margin.
- Transactions in the company’s 50 offices are down approximately 30% since the start of the crisis.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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