Lakeland Financial Corporation (NASDAQ:LKFN) reported first-quarter results on Monday that exceeded earnings expectations but came in slightly below revenue forecasts.
Adjusted earnings per share were $1.04, beating the analyst consensus of $1.01 by $0.03, while revenue totaled $69.71 million, missing estimates of $70.42 million. The stock remained unchanged in after-hours trading following the release.
Net income reached a record $26.5 million for the quarter ended March 31, 2026, marking a 32% increase from $20.1 million in the same period last year.
Total revenue rose 9% year-over-year, supported by net interest income of $56.8 million, up 7%, and noninterest income of $12.9 million, which increased 18%.
Net interest margin improved to 3.49%, compared with 3.40% a year earlier, as deposit costs declined more quickly than loan yields following recent interest rate cuts by the Federal Reserve.
“We started 2026 with robust, record net income for the second consecutive quarter and high single-digit revenue growth on a year-over-year basis,” said David M. Findlay, Chairman and CEO. “Our record profitability in the first quarter was driven by healthy loan growth, strong net interest margin expansion, and across-the-board growth in fee based revenue.”
Average loan balances increased by $255.0 million, or 5%, to $5.44 billion compared with the first quarter of 2025, while average deposits rose by $180.8 million, or 3%, to $6.06 billion.
The company recorded a provision for credit losses of $2.0 million, down from $6.8 million a year earlier, reflecting improved credit conditions.
Nonperforming assets declined sharply by 64% to $20.9 million from $57.9 million in the prior-year period.
Profitability metrics also strengthened, with return on average equity rising to 13.89% from 11.70%, and return on average assets increasing to 1.52% from 1.20%.
During the quarter, Lakeland repurchased 336,853 shares at an average price of $56.99 and declared a quarterly dividend of $0.52 per share, up 4% from the previous year.