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Dec 31, 2021
Lakeland Financial Q4 2021 Earnings Report
Lakeland Financial reported a decrease in quarterly net income and pretax pre-provision earnings, driven by lower Paycheck Protection Program (PPP) loan income, but ended the year strongly with record net income and a balance sheet ready for future growth.
Key Takeaways
Lakeland Financial Corporation reported a record full year net income of $95.7 million, an increase of 13.5% compared to 2020. However, quarterly net income decreased by 1.3% to $24.3 million for the three months ended December 31, 2021, versus $24.6 million for the comparable period of 2020. The decrease in net income was primarily driven by lower Paycheck Protection Program (PPP) loan income in the fourth quarter of 2021.
Record full year net income of $95.7 million, a 13.5% increase compared to 2020.
Quarterly net income decreased 1.3% to $24.3 million compared to the same period in 2020.
Average loan growth, excluding PPP loans, increased by 2%.
Core deposit growth increased by 14%.
Lakeland Financial
Lakeland Financial
Forward Guidance
Lakeland Financial enters 2022 with optimism and confidence in its core relationship businesses, a balance sheet ready for future growth, and is well-positioned for expected interest rate hikes.
Positive Outlook
- Balance sheet is ready for future growth.
- Highly asset sensitive balance sheet is well-positioned for expected interest rate hikes.
- Liquidity on the balance sheet will be valuable for future organic loan growth opportunities.
- Capital structure is exceptionally strong, allowing for an 18% increase in the dividend.
- Confident in future growth and performance, with a strong balance sheet critical to long-term success.
Challenges Ahead
- Commercial borrowers continue to feel the impact of inflation.
- Commercial borrowers continue to feel the impact of supply chain challenges.
- Commercial borrowers continue to feel the impact of workforce availability and readiness.
- Commercial borrowers continue to feel the impact of wage pressures.
- Operating margins are being impacted for commercial borrowers.