updated 4/25/2011 8:16:49 AM ET 2011-04-25T12:16:49

WARSAW, Ind., April 25, 2011 (GLOBE NEWSWIRE) -- Lakeland Financial Corporation (Nasdaq:LKFN), parent company of Lake City Bank, today reported net income available to shareholders of $6.0 million for the first quarter of 2011, an increase of 14% versus $5.2 million in the first quarter of 2010. Diluted net income per share for the quarter increased 16% to $0.37 versus $0.32 for the comparable period of 2010. On a linked quarter basis, net income increased 3% to $6.0 million compared to net income of $5.8 million, or $0.36 per diluted share, for the fourth quarter of 2010.

Michael L. Kubacki, Chairman and Chief Executive Officer, commented, "We continue to be pleased with the strength of our operating performance, which is reflected in the favorable increase in diluted earnings per share. We also believe that we are in a great competitive position in all of our Indiana markets to take advantage of future growth. Throughout the prolonged economic challenges of the past several years, we have continued to build a balance sheet that is ready for business expansion and the opportunities it will bring." 

The Company also announced that the Board of Directors approved a cash dividend for the first quarter of $0.155 per share, payable on May 5, 2011 to shareholders of record as of April 25, 2011. 

Kubacki noted, "Our dividend to shareholders represents a further affirmation of the strength of our financial performance. The uninterrupted dividend is reflective of our confidence in the future and our ability to consistently produce quality earnings."

Average total loans for the first quarter of 2011 were $2.10 billion versus $2.01 billion for the first quarter of 2010 and $2.08 billion for the linked fourth quarter of 2010. Total loans outstanding grew $93 million, or 5%, from $2.0 billion as of March 31, 2010 to $2.1 billion as of March 31, 2011. Total loans increased by $14 million, or 1%, during the first quarter of 2011.

Kubacki added, "Quality loan demand remains somewhat muted. While we're observing some signs of borrower strengthening in our markets, it has not translated into substantive business expansion actions by our clients and prospects."

The Company's net interest margin was 3.78% in the first quarter of 2011 versus 3.86% for the first quarter of 2010 and 3.62% in the linked fourth quarter of 2010. The year-over-year margin decline resulted primarily from higher costs of funds as the Company increased its reliance on core deposits as a funding source.

The Company's provision for loan losses in the quarter of $5.6 million represented an increase of $74,000, versus $5.5 million in the same period of 2010. In the fourth quarter of 2010, the provision was $6.5 million. The Company's allowance for loan losses as of March 31, 2011 was $48.5 million, compared to $36.3 million as of March 31, 2010 and $45.0 million as of December 31, 2010. The allowance for loan losses increased to 2.30% of total loans as of March 31, 2011 versus 1.81% at March 31, 2010 and 2.15% as of December 31, 2010.

Net charge-offs totaled $2.1 million in the first quarter of 2011, versus $1.3 million during the first quarter of 2010 and $3.5 million during the fourth quarter of 2010. Losses on three commercial real estate-related credits represented $1.2 million, or 58%, of the net charge-offs for the quarter. In total, there were 11 commercial credits and 28 retail credits that experienced charge-offs during the quarter. Nonperforming assets were $39.9 million as of March 31, 2011 versus $33.0 million as of March 31, 2010 and $40.7 million as of December 31, 2010. The decrease during the first quarter resulted primarily from charge-offs of $1.6 million taken on loans that were on nonaccrual status as of December 31, 2010. As a result, the ratio of nonperforming assets to total assets at March 31, 2011 was 1.45% versus 1.52% at December 31, 2010. The allowance for loan losses increased to 132% of nonperforming loans as of March 31, 2011 versus 122% at December 31, 2010 and 113% at March 31, 2010.

David M. Findlay, President and Chief Financial Officer, stated, "Since 2007, we have increased our allowance for loan losses by over 200% from $15.8 million to $48.5 million. This $32.7 million increase has substantially strengthened our balance sheet and gives us adequate coverage of our nonperforming loans. While we are encouraged by recent trends in watchlist credits and a stabilization in nonperforming asset totals, we continue to be aware of risks inherent in our loan portfolio. As a result, we have been prudent in ensuring appropriate coverage of these risks." 

The Company's noninterest income was $4.8 million for the first quarters of both 2011 and 2010, versus $5.1 million for the fourth quarter of 2010. Non-interest income was positively impacted by a $186,000 increase in investment brokerage income and a $156,000 increase in loan, insurance and service fees, which were driven by increases in several ancillary commercial and retail revenue sources. Non-interest income was negatively impacted by $198,000 in net losses on securities sales related to a strategic realignment in the investment portfolio, which included the sale of eight private label mortgage-backed securities.  As a result of this activity, the Company sold six of the seven private label mortgage-backed securities on which it had previously recognized other than temporary impairment. Further impacting noninterest income was a net loss of $49,000 in mortgage banking income. This loss resulted from a non-cash decrease in the fair value of the mortgage banking derivative of $219,000 during the first quarter of 2011. The decline in the derivative value was due to significantly lower mortgage loan volumes during the quarter in comparison to prior fiscal periods. In addition, other income declined due to a write-down of other real estate owned totaling $194,000. 

Overall, total revenue for the first quarter of 2011 increased 2% to $28.4 million versus $27.8 million for the comparable period of 2010 and $28.4 million in the fourth quarter of 2010.

Findlay added, "Our core fee-based revenue sources had a good quarter, led by a 34% increase in brokerage revenues and a 17% increase in loan, insurance and service fees. In addition, our wealth advisory and service charges on deposit accounts recognized year-over-year increases of 3% and 6%, respectively."

The Company's noninterest expense increased $1.1 million, or 9%, to $14.2 million in the first quarter of 2011, versus $13.0 million in the comparable quarter of 2010. On a linked quarter basis, non-interest expense increased 6% from $13.3 million in the fourth quarter of 2010. Salaries and employee benefits increased by $662,000 in the three-month period ended March 31, 2011 versus the same period of 2010.  These increases were driven by staff additions, normal merit increases and higher health insurance expense. In addition, the Company's performance based compensation expense increased due to performance versus corporate objectives and increased recognition levels. Data processing fees increased by $146,000 due to expenses associated with the Company's conversion to a new core processor. The core conversion was completed during the second quarter of 2011. In addition, other expense increased by $263,000 in the first quarter of 2011 versus the comparable period of 2010, driven by $116,000 of credit related costs and higher advertising expenses of $111,000. The Company's efficiency ratio for the first quarter of 2011 was 50%, compared to a ratio of 47% for the comparable quarter of 2010.

Lakeland Financial's tangible equity to tangible assets ratio was 9.02% at March 31, 2011 compared to 8.74% at March 31, 2010 and 9.10% at December 31, 2010. Average total deposits for the quarter ended March 31, 2011 were $2.22 billion versus $2.27 billion for the fourth quarter of 2010 and $1.93 billion for the first quarter of 2010.

Lakeland Financial Corporation is a $2.7 billion bank holding company headquartered in Warsaw, Indiana. Lake City Bank serves Northern Indiana with 43 branches located in the following Indiana counties: Kosciusko, Elkhart, Allen, St. Joseph, DeKalb, Fulton, Huntington, LaGrange, Marshall, Noble, Pulaski and Whitley. The Company also has a Loan Production Office in Indianapolis, Indiana.

Lakeland Financial Corporation may be accessed on its home page at www.lakecitybank.com . The Company's common stock is traded on the Nasdaq Global Select Market under "LKFN". Market makers in Lakeland Financial Corporation common shares include Automated Trading Desk Financial Services, LLC, B-Trade Services, LLC, Citadel Securities, LLC, Citigroup Global Markets Holdings, Inc., Domestic Securities, Inc., E*TRADE Capital Markets LLC, FTN Financial Securities Corp., FTN Equity Capital Markets Corp., Goldman Sachs & Company, Howe Barnes Hoefer & Arnett, Inc., Keefe, Bruyette & Woods, Inc., Knight Equity Markets, L.P., Morgan Stanley & Co., Inc., Stifel Nicolaus & Company, Inc., Susquehanna Capital Group and UBS Securities LLC.

In addition to the results presented in accordance with generally accepted accounting principles in the United States of America, this press release contains certain non-GAAP financial measures. Lakeland Financial believes that providing non-GAAP financial measures provides investors with information useful to understanding Lakeland Financial's financial performance. Additionally, these non-GAAP measures are used by management for planning and forecasting purposes, including measures based on "tangible equity" which is "common stockholders' equity" excluding intangible assets, net of deferred tax. A reconciliation of these non-GAAP measures to the most comparable GAAP equivalent is included in the attached financial tables where the non-GAAP measure is presented.

This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company's management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could," "should" or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events. Additional information concerning the Company and its business, including factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on form 10-K.



 

 

LAKELAND FINANCIAL CORPORATION
FIRST QUARTER 2011 FINANCIAL HIGHLIGHTS
(Unaudited – Dollars in thousands except share and per share data)
       
  Three Months Ended
  Mar. 31, Dec. 31, Mar. 31,
  2011 2010 2010
END OF PERIOD BALANCES      
 Assets  $ 2,749,240  $ 2,681,926  $ 2,618,635
 Deposits  2,292,468  2,201,025  2,031,152
 Loans  2,104,366  2,089,959  2,011,443
 Allowance for Loan Losses  48,495  45,007  36,332
 Total Equity  251,142  247,086  286,633
 Tangible Common Equity  247,792  243,779  228,543
AVERAGE BALANCES      
 Total Assets  $ 2,693,279  $ 2,727,958  $ 2,572,694
 Earning Assets  2,561,864  2,598,620  2,445,158
 Investments  438,470  444,292  413,987
 Loans  2,097,256  2,081,535   2,009,808
 Total Deposits  2,224,764  2,266,681  1,927,872
 Interest Bearing Deposits  1,930,606  1,972,667  1,687,187
 Interest Bearing Liabilities  2,134,282  2,169,913  2,031,015
 Total Equity   250,024  248,194  284,784
INCOME STATEMENT DATA      
 Net Interest Income  $ 23,534  $ 23,323  $ 22,961
 Net Interest Income-Fully Tax Equivalent  23,917  23,666  23,293
 Provision for Loan Losses  5,600  6,521  5,526
 Noninterest Income  4,826  5,091  4,847
 Noninterest Expense  14,168  13,333  13,048
 Net Income   5,965  5,782  6,021
 Net Income Available to Common Shareholders  5,965  5,782  5,216
PER SHARE DATA      
 Basic Net Income Per Common Share  $ 0.37  $ 0.36  $  0.32
 Diluted Net Income Per Common Share  0.37  0.36  0.32
 Cash Dividends Declared Per Common Share  0.155  0.155  0.155
 Book Value Per Common Share (equity per share issued)  15.50  15.28  14.44
 Market Value – High  23.65  22.28  19.18
 Market Value – Low  20.50  18.34  17.00
 Basic Weighted Average Common Shares Outstanding  16,195,352  16,145,823  16,091,626
 Diluted Weighted Average Common Shares Outstanding  16,285,161  16,240,353  16,176,406
KEY RATIOS      
 Return on Average Assets  0.90%  0.84%  0.95%
 Return on Average Total Equity  9.68  9.24  8.57
 Efficiency (Noninterest Expense / Net Interest Income      
 plus Noninterest Income)  49.96  46.92   46.92
 Average Equity to Average Assets  9.28  9.10  11.07
 Net Interest Margin  3.78  3.62  3.86
 Net Charge Offs to Average Loans  0.41   0.67  0.26
 Loan Loss Reserve to Loans  2.30  2.15  1.81
 Loan Loss Reserve to Nonperforming Loans  132.28  121.90  112.56
 Nonperforming Loans to Loans   1.74  1.77  1.60
 Nonperforming Assets to Assets  1.45  1.52  1.26
 Tier 1 Leverage  10.21  9.93  12.25
 Tier 1 Risk-Based Capital  12.21  12.00  14.35
 Total Capital  13.47  13.26  15.61
 Tangible Capital  9.02  9.10  8.74
ASSET QUALITY      
 Loans Past Due 30 - 89 Days  $ 2,881  $ 3,212  $ 7,237
 Loans Past Due 90 Days or More  764  330  1,069
 Non-accrual Loans  35,896  36,591  31,209
 Nonperforming Loans (includes nonperforming TDR's)  36,660  36,921  32,278
 Other Real Estate Owned  3,215  3,695  700
 Other Nonperforming Assets  3  42  15
 Total Nonperforming Assets  39,878  40,659  32,993
 Nonperforming Troubled Debt Restructurings (included in      
 nonperforming loans)  7,656  6,091  6,283
 Performing Troubled Debt Restructurings  9,730  8,547  8,039
 Total Troubled Debt Restructurings  17,386  14,638  14,322
 Impaired Loans  48,695  48,015  38,711
 Total Watch List Loans  158,483  169,269  180,696
 Net Charge Offs/(Recoveries)  2,111  3,526  1,267

 

LAKELAND FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
As of March 31, 2011 and December 31, 2010
(in thousands, except share data)
     
  March 31, December 31,
  2011 2010
  (Unaudited)  
ASSETS    
Cash and due from banks  $ 75,056  $ 42,513
Short-term investments 122,075 17,628
 Total cash and cash equivalents 197,131 60,141
     
Securities available for sale (carried at fair value) 368,106 442,620
Real estate mortgage loans held for sale 697 5,606
     
Loans, net of allowance for loan losses of $48,495 and $45,007 2,055,871 2,044,952
     
Land, premises and equipment, net 30,597 30,405
Bank owned life insurance 39,284 38,826
Accrued income receivable 8,900 9,074
Goodwill 4,970 4,970
Other intangible assets 139 153
Other assets 43,545 45,179
 Total assets  $ 2,749,240  $ 2,681,926
     
LIABILITIES AND EQUITY    
     
LIABILITIES    
Noninterest bearing deposits  $ 302,552  $ 305,107
Interest bearing deposits 1,989,916 1,895,918
 Total deposits 2,292,468 2,201,025
     
Short-term borrowings    
 Securities sold under agreements to repurchase 142,430 142,015
 U.S. Treasury demand notes 2,494 2,037
 Other short-term borrowings 0 30,000
 Total short-term borrowings 144,924 174,052
     
Accrued expenses payable 12,561 11,476
Other liabilities 2,177 2,318
Long-term borrowings 15,040 15,041
Subordinated debentures 30,928 30,928
 Total liabilities 2,498,098 2,434,840
     
EQUITY    
Common stock: 90,000,000 shares authorized, no par value    
 16,198,619 shares issued and 16,103,335 outstanding as of March 31, 2011    
 16,169,119 shares issued and 16,078,420 outstanding as of December 31, 2010 86,401 85,766
Retained earnings 164,754 161,299
Accumulated other comprehensive income 1,419 1,350
Treasury stock, at cost (2011 - 95,284 shares, 2010 - 90,699 shares) (1,521) (1,418)
 Total stockholders' equity 251,053 246,997
     
 Noncontrolling interest 89 89
 Total equity 251,142 247,086
 Total liabilities and equity  $ 2,749,240  $ 2,681,926

 

LAKELAND FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended March 31, 2011 and 2010
(in thousands except for share and per share data)
(unaudited)
     
  Three Months Ended
  March 31,
  2011 2010
NET INTEREST INCOME    
Interest and fees on loans    
 Taxable  $ 25,865  $ 25,350
 Tax exempt   121  19
Interest and dividends on securities    
 Taxable  4,057  4,228
 Tax exempt  689  645
Interest on short-term investments  18   14
 Total interest income  30,750  30,256
Interest on deposits  6,685  6,515
Interest on borrowings    
 Short-term  171  249
 Long-term   360  531
 Total interest expense  7,216  7,295
NET INTEREST INCOME  23,534  22,961
Provision for loan losses  5,600  5,526
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES  17,934  17,435
     
NONINTEREST INCOME    
Wealth advisory fees  818  792
Investment brokerage fees  731  545
Service charges on deposit accounts  1,963  1,858
Loan, insurance and service fees  1,076  920
Merchant card fee income  234  280
Other income  372   532
Mortgage banking income (loss)  (49)  91
Net securities gains (losses)  (198)  0
Other than temporary impairment loss on available-for-sale securities:    
 Total impairment losses recognized on securities  (121)  (193)
 Loss recognized in other comprehensive income  0  22
 Net impairment loss recognized in earnings  (121)  (171)
 Total noninterest income  4,826  4,847
NONINTEREST EXPENSE    
Salaries and employee benefits  8,173  7,511
Occupancy expense  875  789
Equipment costs  554  529
Data processing fees and supplies  1,112  966
Credit card interchange  2  64
Other expense  3,452   3,189
 Total noninterest expense  14,168  13,048
INCOME BEFORE INCOME TAX EXPENSE  8,592  9,234
Income tax expense  2,627  3,213
NET INCOME  $ 5,965  $  6,021
Dividends and accretion of discount on preferred stock  0  805
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS  $ 5,965  $ 5,216
BASIC WEIGHTED AVERAGE COMMON SHARES  16,195,352  16,091,626
BASIC EARNINGS PER COMMON SHARE  $ 0.37  $ 0.32
DILUTED WEIGHTED AVERAGE COMMON SHARES  16,285,161  16,176,406
DILUTED EARNINGS PER COMMON SHARE  $ 0.37  $ 0.32

 

 

LAKELAND FINANCIAL CORPORATION
LOAN DETAIL
FIRST QUARTER 2011
(unaudited in thousands)
             
  March 31, December 31, March 31,
  2011 2010 2010
Commercial and industrial loans:            
 Working capital lines of credit loans  $ 312,258  14.8%  $ 281,546  13.5%  $ 244,379  12.1%
 Non-working capital loans  376,875  17.9  384,138  18.4 412,398  20.5
 Total commercial and industrial loans  689,133  32.7  665,684  31.8 656,777  32.6
             
Commercial real estate and multi-family residential loans:            
 Construction and land development loans  112,339  5.3  106,980  5.1  190,874  9.5
 Owner occupied loans  334,562  15.9  329,760  15.8  346,669  17.2
 Nonowner occupied loans  346,971  16.5  355,393  17.0  251,114  12.5
 Multifamily loans  22,530  1.1  24,158  1.2  25,324  1.3
  Total commercial real estate and multi-family residential loans  816,402  38.8  816,291  39.0  813,981  40.4
             
Agri-business and agricultural loans:            
 Loans secured by farmland 99,073  4.7 111,961  5.4  91,903  4.6
 Loans for agricultural production 118,842  5.6 117,518  5.6 72,506  3.6
 Total agri-business and agricultural loans 217,915  10.4 229,479  11.0 164,409  8.2
             
Other commercial loans  44,454  2.1  38,778  1.9 21,129  1.0
 Total commercial loans  1,767,904  84.0  1,750,232  83.7  1,656,296  82.3
             
Consumer 1-4 family mortgage loans:            
 Closed end first mortgage loans  106,176  5.0  103,118  4.9 115,759  5.8
 Open end and junior lien loans  176,725  8.4  182,325  8.7 177,359  8.8
 Residential construction and land development loans  3,438  0.2  4,140  0.2 7,033  0.3
 Total consumer 1-4 family mortgage loans  286,339  13.6  289,583  13.8  300,151  14.9
             
Other consumer loans  50,804  2.4   51,123  2.4 56,465  2.8
 Total consumer loans  337,143  16.0  340,706  16.3  356,616  17.7
 Subtotal  2,105,047  100.0%  2,090,938  100.0%  2,012,912  100.0%
Less: Allowance for loan losses  (48,495)    (45,007)    (36,332)  
 Net deferred loan fees  (681)    (979)    (1,469)  
Loans, net  $2,055,871    $2,044,952    $1,975,111  
             
             

Note: As a result of FASB ASU 2010-20, Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses, the Company has revised this table in order to present the data with greater granularity. This disaggregation will be substantially the same as those used in disclosures of credit quality.

CONTACT: David M. Findlay
         President and
         Chief Financial Officer
         (574) 267-9197
         david.findlay@lakecitybank.com

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 5.03%
$30K home equity loan FICO 5.68%
$75K home equity loan FICO 5.00%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.42%
13.42%
Cash Back Cards 17.94%
17.94%
Rewards Cards 17.15%
17.15%
Source: Bankrate.com