-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Kkxuyp3+/Mw1cNTGvro0kGrKgSJUjPnMImcOoNMWuFjg81cAo26vcpkaoM5TcZ5X EC0Kaxo9O/407ga2l/6iiw== 0000721994-03-000189.txt : 20031015 0000721994-03-000189.hdr.sgml : 20031013 20031015102839 ACCESSION NUMBER: 0000721994-03-000189 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030930 ITEM INFORMATION: FILED AS OF DATE: 20031015 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LAKELAND FINANCIAL CORP CENTRAL INDEX KEY: 0000721994 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 351559596 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-11487 FILM NUMBER: 03940874 BUSINESS ADDRESS: STREET 1: 202 E CENTER ST STREET 2: P O BOX 1387 CITY: WARSAW STATE: IN ZIP: 46581-1387 BUSINESS PHONE: 5742676144 MAIL ADDRESS: STREET 1: 202 E CENTER ST STREET 2: PO BOX 1387 CITY: WARSAW STATE: IN ZIP: 46581 8-K 1 lkfn09038k.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report October 15, 2003 (Date of earliest event reported) Lakeland Financial Corporation (Exact name of Registrant as specified in its charter) Indiana (State or other jurisdiction of incorporation) 0-11487 35-1559596 (Commission File Number) (I.R.S. Employer Identification Number) 202 East Center Street, P.O. Box 1387, Warsaw, Indiana 46581-1387 (Address of principal executive offices) (Zip Code) (574) 267-6144 (Registrant's telephone number, including area code) Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (a) Financial Statements of Business Acquired. None. (b) Pro Forma Financial Information. None. (c) Exhibits. 99.1 Press Release dated October 15, 2003 Item 12. Results of Operations and Financial Condition On October 15, 2003, Lakeland Financial Corporation issued a press release announcing its earnings for the quarter ended September 30, 2003. The news release is attached as Exhibit 99.1. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LAKELAND FINANCIAL CORPORATION Dated: October 15, 2003 By: /s/David M. Findlay David M. Findlay Chief Financial Officer EX-99 3 exhibit991.txt Exhibit 99.1 LAKELAND FINANCIAL CORPORATION FOR IMMEDIATE RELEASE Contact: David M. Findlay Executive Vice President and Chief Financial Officer (574) 267-9197 LAKELAND FINANCIAL REPORTS THIRD QUARTER PERFORMANCE AND CASH DIVIDEND Warsaw, Indiana (October 15, 2003) - Lakeland Financial Corporation (Nasdaq/LKFN), parent company of Lake City Bank, today reported quarterly net income of $3.6 million for the third quarter of 2003, an increase of 18.9% versus $3.0 million for the comparable period in 2002. Diluted net income per common share for the quarter was $0.60 versus $0.50 for the comparable period in 2002, an increase of 20.0%. Net income for the nine months ended September 30, 2003 was a record $10.9 million versus $9.0 million for the comparable period in 2002, an increase of 20.2%. Diluted net income per share for the nine months ended September 30, 2003 was $1.81 per share versus $1.52 per share in 2002, an increase of 19.1%. The Company also announced that the Board of Directors approved a cash dividend for the third quarter of $0.19 per share, payable on October 24, 2003 to shareholders of record on October 10, 2003. The quarterly dividend represents a 12% increase over the quarterly dividend of $0.17 paid in 2002. Michael L. Kubacki, Chairman, President and Chief Executive Officer, commented on the performance, "We continue to be pleased about our 2003 performance, with net income for the nine months ended September 30th up over 20%. The third quarter represented a challenging operating environment as we continued to experience a decline in the net interest margin, which decreased from 3.89% in the second quarter of 2003 to 3.72% in the third quarter, thus putting pressure on net interest income. Negative earnings impact was created by the significant decline in mortgage sales gains, which were $383,000 versus $1.2 million in the second quarter of 2003. While these events have certainly impacted on our linked quarter performance, which saw a slight decline in net income from $3.7 million to $3.6 million, our overall results for the year are outstanding." Kubacki continued, "Noninterest income for the first nine months increased to $13.8 million versus $10.5 million in the comparable period in 2002, driven by mortgage sales gains of $2.7 million, an increase of $1.5 million versus the comparable period in 2002. Also adding to the strong increase in noninterest income was a $1.7 million increase in other income, which grew from $2.5 million for the first nine months of 2002 to $4.2 million for the comparable period in 2003 as a result of the implementation of an insurance investment program, income due to a reduction in the valuation allowance related to accounting for mortgage servicing rights and increased service fees. "Our income performance is notable given that net interest income after the provision for loan losses increased by only 2.5% from $29.2 million in the first nine months of 2002 to $30.0 million for the comparable period in 2003. Net interest income continued to be negatively impacted by a decline in the net interest margin from 4.10% in the first nine months of 2002 to 3.84% in the comparable period of 2003. As we conclude 2003, we anticipate that the net interest margin will remain one of our primary challenges, barring any upward movement in rates. As a result of the overall low interest rate environment throughout 2003, our margin has declined in each successive quarter of 2003," added Kubacki. Average loans for the nine months ended September 30, 2003 were $843.3 million versus $759.4 million during the comparable period in 2002. Total loans as of September 30, 2003 were $847.7 million versus $839.4 million as of June 30, 2003. Lakeland Financial's allowance for loan losses as of September 30, 2003 was $10.1 million, or 1.19% of gross loans, compared to $9.1 million, or 1.15% of gross loans, as of September 30, 2002 and $9.8 million, or 1.17% of gross loans as of June 30, 2003. Non-performing assets totaled $6.2 million as of September 30, 2003 versus $7.7 million on September 30, 2002 and $8.2 million as of June 30, 2003. On a linked quarter basis, total nonperforming assets declined by approximately $2.0 million from the second quarter of 2003 to the third quarter. The ratio of non-performing assets to loans was 0.73% on September 30, 2003 compared to 0.98% at both September 30, 2002 and June 30, 2003. Kubacki commented, "During the first nine months of 2003, average loans increased by 9.4% to $843.3 million versus $770.9 million for all of 2002. Average loans during the third quarter of 2003 were $853.4 million versus $846.5 million in the second quarter of 2003, an increase of only 1%. On a net basis, loan growth was minimal as the region continues to slowly climb out of the difficult economic conditions that we believe have suppressed overall loan demand. Net charge offs totaled $102,000 in the quarter versus $843,000 in the third quarter of 2002 and $673,000 during the second quarter of 2003. Net charge offs totaled $1.2 million during both of the nine-month periods ended September 30, 2003 and 2002. For the nine months ended September 30, 2003, net charge offs were 0.20% of average loans on an annualized basis. We further believe that the decline in nonperforming assets on a linked quarter basis is reflective of the overall quality of our portfolio in a difficult commercial lending environment." For the nine months ended September 30, 2003, Lakeland Financial's average equity to average assets ratio was 7.05% versus 6.91% for the comparable period in 2002 and 7.07% for the second quarter of 2003. Average stockholders' equity for the first nine months of 2003 was $86.7 million versus $77.9 million for the comparable period in 2002. Average total deposits for the nine months ended September 30, 2003 were $961.8 million versus $846.0 million for the comparable period in 2002. In addition, the Company announced that D. Jean Northenor had retired from the Board of Directors. Kubacki concluded, "For nearly 20 years, Jean has helped define the organization and contributed to our many successes." Lakeland Financial Corporation is a $1.2 billion bank holding company headquartered in Warsaw, Indiana. Lake City Bank serves Northern Indiana with 42 branches located in the following Indiana counties: Kosciusko, Elkhart, Allen, St. Joseph, DeKalb, Fulton, Huntington, LaGrange, Marshall, Noble, Pulaski and Whitley. Lakeland Financial Corporation may be accessed on its home page at www.lakecitybank.com. The Company's common stock is traded on the Nasdaq Stock Market under "LKFN". Marketmakers in Lakeland Financial Corporation common shares include Stifel Nicolaus & Company, Howe Barnes Investments, Inc., Raymond James & Associates, Inc., McDonald Investments, Inc., First Tennessee Capital Markets and Trident Securities. 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. A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local and national economy; (ii) the economic impact of past and any future terrorist attacks, acts of war or threats thereof and the response of the United States to any such attacks and threats; (iii) changes in state and federal laws, regulations and governmental policies concerning the Company's general business; (iv) changes in interest rates and prepayment rates of the Company's assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the loss of key executives or employees; (viii) changes in consumer spending; (ix) unexpected results of acquisitions; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission. LAKELAND FINANCIAL CORPORATION THIRD QUARTER 2003 FINANCIAL HIGHLIGHTS (Unaudited - Dollars in thousands except Share and Per Share Data)
3 Months Ended 9 Months Ended September 30 September 30 2003 2002 2003 2002 ----------- ------------ ------------- ------------- END OF PERIOD BALANCES Assets $ 1,248,162 $ 1,172,049 $ 1,248,162 $ 1,172,049 Deposits 1,002,037 877,814 1,002,037 877,814 Loans 847,714 792,552 847,714 792,552 Allowance for Loan Losses 10,064 9,082 10,064 9,082 Common Stockholders' Equity 88,799 82,293 88,799 82,293 AVERAGE BALANCES Assets Total Assets $ 1,244,032 $ 1,145,577 $ 1,230,511 $ 1,129,696 Earning Assets 1,141,973 1,063,798 1,130,915 1,046,792 Investments 267,756 274,626 270,941 274,116 Loans 853,425 771,516 843,271 759,380 Liabilities and Stockholders' Equity Total Deposits 982,617 868,450 961,770 846,010 Interest Bearing Deposits 804,096 716,002 792,761 699,770 Interest Bearing Liabilities 969,747 898,002 964,110 892,928 Common Stockholders' Equity 87,260 80,722 86,749 77,885 INCOME STATEMENT DATA Net Interest Income $ 10,412 $ 10,625 $ 31,721 $ 31,511 Net Interest Income-Fully Tax Equivalent 10,718 10,840 32,535 32,148 Provision for Loan Loss 380 1,041 1,764 2,290 Noninterest Income 4,467 3,635 13,764 10,540 Noninterest Expense 9,089 8,593 27,314 25,961 Net Income 3,591 3,021 10,855 9,034 PER SHARE DATA Basic Net Income Per Common Share $ 0.62 $ 0.52 $ 1.87 $ 1.55 Diluted Net Income Per Common Share 0.60 0.50 1.81 1.52 Cash Dividends Per Common Share 0.19 0.17 0.57 0.51 Book Value Per Common Share (equity per share issued) 15.25 14.15 15.25 14.15 Market Value - High 34.40 29.76 34.40 29.76 Market Value - Low 29.51 23.57 23.00 17.26 Basic Weighted Average Common Shares Outstanding 5,819,671 5,813,984 5,816,830 5,813,984 Diluted Weighted Average Common Shares Outstanding 6,017,241 5,992,824 5,982,283 5,957,792 KEY RATIOS Return on Average Assets 1.15% 1.05% 1.18% 1.07% Return on Average Common Stockholders' Equity 16.33 14.83 16.73 15.48 Efficiency (Noninterest Expense / Gross Interest Income plus Noninterest Income) 61.08 60.26 60.05 61.74 Average Equity to Average Assets 7.01 7.05 7.05 6.91 Net Interest Margin 3.72 4.04 3.84 4.10 Net Charge Offs to Average Loans 0.05 0.43 0.20 0.20 Loan Loss Reserve to Loans 1.19 1.15 1.19 1.15 Nonperforming Assets to Loans 0.73 0.98 0.73 0.98 Tier 1 Leverage 8.31 8.07 8.31 8.07 Tier 1 Risk-Based Capital 10.81 10.49 10.81 10.49 Total Capital 11.86 11.53 11.86 11.53 ASSET QUALITY Loans Past Due 90 Days or More $ 3,226 $ 3,627 $ 3,226 $ 3,627 Non-accrual Loans 1,291 3,973 1,291 3,973 Net Charge Offs 102 843 1,232 1,154 Other Real Estate Owned 1,530 38 1,530 38 Other Nonperforming Assets 120 104 120 104 Total Nonperforming Assets 6,167 7,742 6,167 7,742
LAKELAND FINANCIAL CORPORATION CONSOLIDATED BALANCE SHEETS As of September 30, 2003 and December 31, 2002 (in thousands)
September 30, December 31, 2003 2002 ------------ ------------ (Unaudited) ASSETS Cash and cash equivalents: Cash and due from banks $ 52,373 $ 74,149 Short-term investments 7,233 13,000 ------------ ------------ Total cash and cash equivalents 59,606 87,149 Securities available-for-sale: U. S. Treasury and government agency securities 13,962 17,284 Mortgage-backed securities 209,683 222,036 State and municipal securities 52,520 34,785 ------------ ----------- Total securities available-for-sale 276,165 274,105 Real estate mortgages held-for-sale 9,742 10,395 Loans: Total loans 847,714 822,676 Less: Allowance for loan losses 10,064 9,533 ------------ ------------ Net loans 837,650 813,143 Land, premises and equipment, net 26,444 24,768 Accrued income receivable 4,945 4,999 Goodwill 4,970 4,970 Other intangible assets 930 1,042 Other assets 27,710 27,215 ------------ ------------ Total assets $ 1,248,162 $ 1,247,786 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Deposits: Noninterest bearing deposits $ 193,258 $ 192,787 Interest bearing deposits 808,779 720,538 ------------ ------------ Total deposits 1,002,037 913,325 Short-term borrowings: Federal funds purchased 7,000 30,000 Securities sold under agreements to repurchase 78,765 124,968 U.S. Treasury demand notes 3,289 4,000 Other borrowings 10,000 26,000 ------------ ------------ Total short-term borrowings 99,054 184,968 Accrued expenses payable 7,575 12,503 Other liabilities 1,285 2,417 Long-term borrowings 30,047 31,348 Guaranteed preferred beneficial interests in Company's subordinated debentures 19,365 19,345 ------------ ------------ Total liabilities 1,159,363 1,163,906 STOCKHOLDERS' EQUITY Common stock: No par value, 90,000,000 shares authorized, 5,822,429 shares issued and 5,776,202 outstanding as of September 30 2003, and 5,813,984 shares issued and 5,767,010 outstanding at December 31, 2002 1,453 1,453 Additional paid-in capital 9,924 8,537 Retained earnings 78,358 70,819 Accumulated other comprehensive income/(loss) (26) 3,937 Treasury stock, at cost (910) (866) ------------ ------------ Total stockholders' equity 88,799 83,880 ------------ ------------ Total liabilities and stockholders' equity $ 1,248,162 $ 1,247,786 ============ ============
LAKELAND FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME For the Three Months and Nine Months Ended September 30, 2003 and 2002 (in thousands except for share data) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, --------------------------- --------------------------- 2003 2002 2003 2002 ------------ ------------ ------------ ------------ INTEREST AND DIVIDEND INCOME - ---------------------------- Interest and fees on loans: Taxable $ 11,543 $ 12,309 $ 35,453 $ 36,960 Tax exempt 74 58 203 125 ------------ ------------ ------------ ------------ Total loan income 11,617 12,367 35,656 37,085 Short-term investments 48 73 133 165 Securities: U.S. Treasury and government agency securities 145 340 460 1,077 Mortgage-backed securities 2,473 3,028 8,099 8,825 State and municipal securities 550 402 1,475 1,202 Other debt securities 0 6 0 208 ------------ ------------ ------------ ------------ Total interest and dividend income 14,833 16,216 45,823 48,562 INTEREST EXPENSE - ---------------- Interest on deposits 3,421 4,277 10,909 12,855 Interest on short-term borrowings 244 536 897 2,091 Interest on long-term debt 756 778 2,296 2,105 ------------ ------------ ------------ ------------ Total interest expense 4,421 5,591 14,102 17,051 ------------ ------------ ------------ ------------ NET INTEREST INCOME 10,412 10,625 31,721 31,511 - ------------------- Provision for loan losses 380 1,041 1,764 2,290 ------------ ------------ ------------ ------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 10,032 9,584 29,957 29,221 - ------------------------- ------------ ------------ ------------ ------------ NONINTEREST INCOME - ------------------ Trust and brokerage fees 627 590 1,802 1,889 Service charges on deposit accounts 1,736 1,785 5,136 4,922 Other income (net) 1,729 728 4,179 2,470 Net gains on the sale of real estate mortgages held-for-sale 383 493 2,655 1,204 Net securities gains/(losses) (8) 39 (8) 55 ------------ ------------ ------------ ------------ Total noninterest income 4,467 3,635 13,764 10,540 NONINTEREST EXPENSE - ------------------- Salaries and employee benefits 5,076 4,803 14,789 13,937 Occupancy and equipment expense 1,192 1,171 3,772 3,352 Other expense 2,821 2,619 8,753 8,672 ------------ ------------ ------------ ------------ Total noninterest expense 9,089 8,593 27,314 25,961 INCOME BEFORE INCOME TAX EXPENSE 5,410 4,626 16,407 13,800 - -------------------------------- Income tax expense 1,819 1,605 5,552 4,766 ------------ ------------ ------------ ------------ NET INCOME $ 3,591 $ 3,021 $ 10,855 $ 9,034 - ---------- ============ ============ ============ ============ BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 5,819,671 5,813,984 5,816,830 5,813,984 BASIC EARNINGS PER COMMON SHARE $ 0.62 $ 0.52 $ 1.87 $ 1.55 - ------------------------------- ============ ============ ============ ============ DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 6,017,241 5,992,824 5,982,283 5,957,792 DILUTED EARNINGS PER COMMON SHARE $ 0.60 $ 0.50 $ 1.81 $ 1.52 - --------------------------------- ============ ============ ============ ============
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