Lakeland Financial (LKFN) investor relations material

Executive summary

• Net income for the first half of 2026 rose 17% year-over-year to $54.9 million, with diluted EPS up 19% to $2.17; Q2 2026 net income was $28.4 million, up 5% year-over-year, and diluted EPS reached $1.13, up 9%.

• Growth was driven by higher net interest and noninterest income, lower provision for credit losses, and continued organic loan and deposit growth.

• Maintained a strong capital position with risk-based capital ratio at 15.61% and tangible common equity to tangible assets at 10.63%.

• Efficiency ratio remained stable, ranging from 45% to 49.5%, reflecting disciplined expense management amid higher noninterest expense.

• Total assets reached $7.243 billion as of June 30, 2026, up 3.6% from year-end 2025.

Financial highlights

• Net interest income for the first half of 2026 was $115.1 million, up 7% year-over-year, with net interest margin expanding to 3.49%.

• Noninterest income for the first half was $25.5 million, up 14% year-over-year, driven by fee-based businesses and market performance.

• Noninterest expense increased 10% year-over-year, reflecting investment in people, technology, and branch expansion.

• Dividend per share increased 4% year-over-year, with an 11% CAGR over five years.

• Pretax pre-provision earnings increased 6% year-over-year.

Outlook and guidance

• Management expects continued loan growth, supported by strong liquidity and capital positions, and plans to use securities cash flows to fund loan growth.

• Focus remains on commercial banking, core deposit funding, and technology-driven service delivery.

• Indiana’s economic outlook is strong, with significant investments in manufacturing, life sciences, and technology sectors supporting future growth.

• No material changes to risk factors or forward-looking statements; ongoing monitoring of economic and market conditions.