Lakeland Financial Reports Q1 2025 Results with $20.1 Million Net Income, 14.2% Decrease

Lakeland Financial Corporation reported its financial results for the first quarter of 2025, revealing a net income of $20.1 million, a decrease of 14.2% from $23.4 million in the same period of 2024. The diluted earnings per share also fell to $0.78, down from $0.91 year-over-year. The decline in profitability was attributed to a significant increase in the provision for credit losses, which rose by 347.4% to $6.8 million, alongside a $2.1 million increase in noninterest expenses and a $1.7 million drop in noninterest income. However, net interest income increased by $5.5 million, or 11.5%, to $52.9 million, contributing positively to the overall financial performance.

Total assets for Lakeland Financial reached $6.851 billion as of March 31, 2025, marking a 2.6% increase from $6.678 billion at the end of 2024. This growth was primarily driven by a $98.8 million increase in net loans, which rose to $5.131 billion, and a $67 million increase in cash and cash equivalents. Total deposits also saw a modest increase of $59.2 million, or 1.0%, while total equity rose by $10.6 million to $694.5 million. The company’s tangible common equity to tangible assets ratio stood at 10.09%, reflecting a slight improvement from the previous year.

In terms of operational metrics, the company reported a total loan portfolio of $5.225 billion, with notable increases in commercial and industrial loans, as well as consumer mortgage loans. The allowance for credit losses increased to $92.4 million, representing 1.77% of total loans, up from 1.68% at the end of 2024. The company’s nonperforming assets also rose slightly to $57.9 million, with a nonperforming loans ratio of 1.10%. The increase in nonperforming loans was primarily linked to a specific credit relationship that was downgraded to nonperforming status.

Looking ahead, Lakeland Financial anticipates continued challenges in the economic environment, particularly concerning credit quality and interest rate fluctuations. The company is closely monitoring its loan portfolio and adjusting its credit loss provisions accordingly. Management remains optimistic about the potential for growth in loan originations, particularly if interest rates decline, which could stimulate demand in the housing market. The company’s strategic focus will continue to be on maintaining a strong capital position while navigating the evolving market conditions.