Lakeland Financial Reports $93.5 Million Net Income for Fiscal Year 2024

Lakeland Financial Corporation reported a net income of $93.5 million for the fiscal year ending December 31, 2024, a slight decrease of 0.3% from $93.8 million in 2023. The diluted earnings per share were $3.63, down from $3.65 in the previous year. The company's total assets increased to $6.678 billion, reflecting a growth of 2.4% compared to $6.524 billion in 2023. This growth was primarily driven by a 4.1% increase in total loans, which reached $5.120 billion, and a 3.2% rise in total deposits, amounting to $5.901 billion.

The financial performance of Lakeland Financial showed mixed results compared to the previous fiscal year. While noninterest income rose by $7.0 million, or 14%, largely due to a $9.0 million net gain from the sale of Visa shares, the provision for credit losses increased significantly by $10.9 million, or 186.3%, primarily due to the downgrade of a large commercial loan. Additionally, net interest income experienced a slight decline of $356,000, attributed to increased funding costs and a shift in deposit mix. The efficiency ratio improved to 49.34% from 52.94% in 2023, indicating better cost management.

Strategically, Lakeland Financial has focused on organic growth, expanding its branch network to 54 locations across Northern and Central Indiana, including the opening of a new branch in Carmel in July 2024. The company has maintained a strong employee base of 683 individuals, with a commitment to diversity and inclusion reflected in its workforce composition. The bank's strategy emphasizes building long-term relationships with customers through high-quality service and community engagement.

Operationally, the company has seen an increase in nonperforming loans, which rose to $56.4 million, or 1.1% of total loans, compared to $15.7 million, or 0.3%, in 2023. This increase was primarily due to the downgrade of a significant commercial credit. The allowance for credit losses also increased to $86.0 million, representing 1.68% of total loans, up from 1.46% in the previous year. Despite these challenges, the company remains optimistic about its credit quality and continues to actively manage its loan portfolio.

Looking ahead, Lakeland Financial plans to continue its organic growth strategy, with expectations for further expansion in its branch network and investments in technology and human capital. The company aims to navigate potential economic challenges while maintaining a disciplined credit philosophy and proactive management of its loan portfolio. The outlook for 2025 includes the establishment of the Lake City Bank Innovation and Technology Center in Warsaw, Indiana, and the opening of a new office in the Indianapolis market.