Lakeland Financial Corporation Reports 19.6% Increase in Q2 Net Income to $26.97 Million

Lakeland Financial Corporation reported its financial results for the second quarter and first half of 2025, showing a net income of $26.97 million for the quarter, a 19.6% increase from $22.55 million in the same period last year. For the first six months, net income reached $47.05 million, up 2.4% from $46.0 million in 2024. The diluted earnings per share for the second quarter were $1.04, compared to $0.87 in the prior year, while for the first half, it was $1.82, up from $1.78. The increase in net income was primarily driven by a $6.6 million rise in net interest income and a $5.5 million reduction in the provision for credit losses.

Total assets increased to $6.964 billion as of June 30, 2025, a 4.3% rise from $6.678 billion at the end of 2024. This growth was attributed to a $128.3 million increase in net loans, which reached $5.160 billion, and a significant $142 million increase in cash and cash equivalents. Total deposits also rose by $275.9 million, or 4.7%, to $6.177 billion, with interest-bearing deposits contributing significantly to this growth. The company’s total equity increased by 3.8% to $710 million, supported by retained earnings that grew due to net income, offset by dividends paid.

In terms of operational metrics, the efficiency ratio improved to 45.86% for the second quarter, down from 48.49% a year earlier, indicating better cost management. The annualized return on average total equity was 15.52% for the second quarter of 2025, compared to 14.19% in the same quarter of 2024. However, the annualized return on average total assets slightly decreased to 1.57% from 1.37% year-over-year.

The company experienced a notable decline in noninterest income, which fell by 32.2% to $22.41 million for the first half of 2025, primarily due to the absence of a $9 million gain on Visa shares recorded in the previous year. Adjusted core noninterest income, excluding non-routine events, decreased marginally by 2.7%. Noninterest expenses also saw a slight reduction of 1.3% to $63.2 million, aided by a decrease in professional fees and other expenses.

Looking ahead, Lakeland Financial Corporation remains focused on managing its loan portfolio and maintaining strong capital ratios, with a tangible common equity to tangible assets ratio of 10.15% as of June 30, 2025. The company anticipates continued growth in its loan originations and is closely monitoring economic conditions that may impact credit quality. The management is optimistic about leveraging its diversified deposit base and liquidity sources to support future growth initiatives.