Lakeland Financial Corporation (NASDAQ:LKFN), the parent company of Lake City Bank, reported record second-quarter earnings that exceeded analyst expectations, driving shares up 2.1% after the announcement.
The company posted net income of $27.0 million, or $1.04 per diluted share, beating estimates of $0.97 per share. Revenue totaled $66.36 million, slightly below the consensus of $67.19 million. Earnings grew 20% from $22.5 million, or $0.87 per share, in the same quarter last year.
Net interest income increased 14% year-over-year to $54.9 million, helped by a 25 basis point rise in net interest margin to 3.42%. Total loans expanded by $173.8 million (3%) to $5.23 billion, while core deposits climbed 8% to $6.03 billion, up $423.9 million from the previous year.
David M. Findlay, Chairman and CEO, said, “We are pleased to report strong earnings momentum for the second quarter of 2025, which has benefited from double digit growth of net interest income and contributed to good overall performance in the first half of 2025.”
Asset quality improved sharply, with nonperforming assets down 46% year-over-year to $31.1 million. The company’s credit loss provision dropped to $3.0 million from $8.5 million in Q2 2024.
Commercial line utilization reached 44% as of June 30, 2025, compared to 41% a year earlier — the highest rate since 2020. Lakeland’s capital position remained robust, with a total risk-based capital ratio of 15.86%, comfortably above the 10% regulatory benchmark for being “well capitalized.”
The board approved a quarterly cash dividend of $0.50 per share, a 4% increase from the $0.48 dividend paid in the second quarter of 2024.
Lakeland Financial Corporation stock price
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