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Lakeland Financial Q1 2025 Earnings Report
Lakeland Financial Corporation reported a 14% decrease in net income for the first quarter of 2025, despite a 12% increase in net interest income and 4% organic loan growth.
Key Takeaways
Lakeland Financial Corporation reported net income of $20.1 million for the first quarter of 2025, a 14% decrease from the same period last year. Diluted earnings per share also decreased by 14% to $0.78. Despite the decline in net income, the company saw a 12% increase in net interest income and maintained strong organic loan growth of 4%.
Net income for Q1 2025 was $20.1 million, a 14% decrease from Q1 2024.
Diluted earnings per share for Q1 2025 was $0.78, down 14% from Q1 2024.
Net interest income increased by $5.5 million, or 12%, to $52.9 million in Q1 2025.
Average loans grew by $214.9 million, or 4%, to $5.19 billion in Q1 2025.
Lakeland Financial
Lakeland Financial
Lakeland Financial Revenue by Segment
Lakeland Financial Revenue by Geographic Location
Revenue by Segment
Retail deposits Revenue
CapyFin.comCommercial deposits Revenue
CapyFin.comPublic funds deposits Revenue
CapyFin.comBrokered deposits Revenue
CapyFin.comRevenue by Geographic Location
Indiana operations Revenue
CapyFin.com Forward Guidance
The company anticipates activating its share repurchase program during the second quarter of 2025 and plans to use investment securities cash flows to fund loan growth and reinvestment. Management expects continued organic loan growth and positive revenue growth from fee-based businesses.
Positive Outlook
- Anticipates activating the share repurchase program during Q2 2025.
- Strong capital levels provide capacity for organic loan growth in Indiana markets.
- Capital position supports continued growth in the dividend paid to shareholders.
- Plans to use investment securities cash flows to fund loan growth and reinvestment.
- Continued focus on fee-based businesses to contribute to noninterest income and revenue growth.
Challenges Ahead
- The company has limited exposure to commercial office space borrowers.
- The increase in nonperforming assets was primarily driven by a previously disclosed nonperforming credit.
- The company is actively talking with clients to understand the impact of tariff activity on borrowers' businesses.
- The company initiated a detailed plan to identify and analyze specific industries and clients sensitive to tariff effects.
- The company is aggregating and segmenting direct and indirect exposure with international trading partners.