EX-99 2 exhibit991.txt Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: David M. Findlay Executive Vice President- Administration and Chief Financial Officer (574) 267-9197 INCOME SETS RECORD AT LAKELAND FINANCIAL First Quarter Performance and Cash Dividend Announced Warsaw, Indiana (April 15, 2005) - Lakeland Financial Corporation (Nasdaq/LKFN), parent company of Lake City Bank, today reported record net income of $4.1 million for the first quarter of 2005. Net income increased 16% over the $3.5 million reported for the comparable period in 2004 and 8% versus the $3.7 million reported for the fourth quarter of 2004. Diluted net income per common share for the quarter was $0.66 versus $0.58 for the comparable period of 2004 and $0.62 for the fourth quarter of 2004. Michael L. Kubacki, Chairman, President and Chief Executive Officer, commented, "Led by healthy loan growth and further margin enhancement, our financial results for the quarter were gratifying. We continue to experience greater market penetration in Northern Indiana, particularly in the commercial lending segment, which has led to linked-quarter average loan growth of 4%. This level of growth represents a great start to the year and further contributes to our reputation as an aggressive, thoughtful lender in Northern Indiana." Kubacki continued, "Our focus on relationship building is the leading contributor to our financial success. At Lake City Bank, we value every client relationship as much as the next one, regardless of its size or scope. While some of our larger competitors would view our approach as unsophisticated in this day and age, we think it works well for our clients and provides a foundation for long-term shareholder value. We believe that our results for the quarter further affirm our strategy." Kubacki added, "Our net interest margin improved to 3.77% for the quarter versus 3.63% for all of 2004 and represents the fourth consecutive quarter of margin expansion. The strengthening net interest margin contributed to an increase in net interest income in the quarter and establishes a positive trend for the balance of 2005, particularly if there are additional interest rate increases during the year." The Company also announced that the Board of Directors approved a cash dividend for the first quarter of $0.23 per share, payable on April 25, 2005 to shareholders of record on April 10, 2005. The quarterly dividend represents a 10% increase over the quarterly dividend of $0.21 paid in 2004. Average total loans for the first quarter of 2005 were $1.0 billion versus $975 million during the fourth quarter of 2004, a linked-quarter increase of 4%. Total loans as of March 31, 2005 were $1.022 billion, an increase of $19.0 million, versus $1.003 billion as of December 31, 2004. Total loans as of March 31, 2004 were $884 million. Lakeland Financial's allowance for loan losses as of March 31, 2005 was $11.1 million, compared to $10.8 million as of December 31, 2004 and $10.5 million as of March 31, 2004. Non-performing assets totaled $9.8 million as of March 31, 2005 versus $10.3 million as of December 31, 2004 and $4.5 million on March 31, 2004. The ratio of non-performing assets to loans was 0.96% on March 31, 2005 compared to 1.02% at December 31, 2004 and 0.51% at March 31, 2004. Net charge offs totaled $96,000 in the first quarter of 2005 versus $562,000 during the fourth quarter of 2004 and $9,000 in the first quarter of 2004. For the three months ended March 31, 2005, Lakeland Financial's average equity to average assets ratio was 7.32% compared to 7.24% for the fourth quarter of 2004 and 7.21% for the first quarter of 2004. Average stockholders' equity for the quarter ended March 31, 2005 was $103.6 million versus $100.8 million for the fourth quarter of 2004 and $92.4 million for the comparable period in 2004. Average total deposits for the first quarter of 2005 and the fourth quarter of 2004 were $1.1 billion compared to $968.7 million for the first quarter of 2004. Lakeland Financial Corporation is a $1.4 billion bank holding company headquartered in Warsaw, Indiana. Lake City Bank serves Northern Indiana with 43 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". Market makers in Lakeland Financial Corporation common shares include Citigroup Global Market Holdings, Inc., FTN Financial Securities Corp., Hill, Thompson, Magid & Co., Howe Barnes Investments, Inc., Keefe, Bruyette & Woods, Inc., Knight Equity Securities, L.P., Morgan Stanley & Co., Inc., Schwab Capital Markets, Stifel Nicolaus & Company, Inc. and Susquehanna Capital Group. 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 FIRST QUARTER 2005 FINANCIAL HIGHLIGHTS (Unaudited - Dollars in thousands except Share and Per Share Data)
Three Months Ended -------------------------------------------------------- Mar. 31, Dec. 31, Mar. 31, 2005 2004 2004 -------------- ------------- --------------- END OF PERIOD BALANCES Assets $ 1,426,032 $ 1,453,122 $ 1,285,929 Deposits 1,132,546 1,115,399 1,006,811 Loans 1,022,184 1,003,219 884,499 Allowance for Loan Losses 11,115 10,754 10,477 Common Stockholders' Equity 103,271 101,765 94,191 AVERAGE BALANCES Assets Total Assets $ 1,416,307 $ 1,391,171 $ 1,281,413 Earning Assets 1,305,117 1,281,124 1,176,928 Investments 285,971 285,344 282,053 Loans 1,009,607 974,732 883,692 Liabilities and Stockholders' Equity Total Deposits 1,109,551 1,126,411 968,724 Interest Bearing Deposits 893,265 903,633 781,823 Interest Bearing Liabilities 1,086,741 1,057,924 993,786 Common Stockholders' Equity 103,625 100,779 92,444 INCOME STATEMENT DATA Net Interest Income $ 11,851 $ 11,549 $ 10,335 Net Interest Income-Fully Tax Equivalent 12,154 11,869 10,653 Provision for Loan Losses 458 575 252 Noninterest Income 4,119 4,044 4,033 Noninterest Expense 9,363 9,356 8,908 Net Income 4,055 3,748 3,502 PER SHARE DATA Basic Net Income Per Common Share $ 0.68 $ 0.64 $ 0.60 Diluted Net Income Per Common Share 0.66 0.62 0.58 Cash Dividends Per Common Share 0.23 0.21 0.21 Book Value Per Common Share (equity per share issued) 17.35 17.20 16.10 Market Value - High 41.38 40.90 38.05 Market Value - Low 37.11 33.80 31.41 Basic Weighted Average Common Shares Outstanding 5,936,370 5,893,060 5,842,946 Diluted Weighted Average Common Shares Outstanding 6,132,482 6,098,920 6,052,537 KEY RATIOS Return on Average Assets 1.16 % 1.07 % 1.10 % Return on Average Common Stockholders' Equity 15.87 14.80 15.24 Efficiency (Noninterest Expense / Net Interest Income plus Noninterest Income) 58.63 60.00 61.98 Average Equity to Average Assets 7.32 7.24 7.21 Net Interest Margin 3.77 3.69 3.65 Net Charge Offs to Average Loans 0.04 0.23 0.00 Loan Loss Reserve to Loans 1.09 1.07 1.18 Nonperforming Assets to Loans 0.96 1.02 0.51 Tier 1 Leverage 9.17 9.15 9.23 Tier 1 Risk-Based Capital 11.55 11.41 11.95 Total Capital 12.54 12.38 13.02 ASSET QUALITY Loans Past Due 90 Days or More $ 2,809 $ 2,778 $ 3,211 Non-accrual Loans 6,876 7,213 997 Net Charge Offs 96 562 9 Other Real Estate Owned 91 261 277 Other Nonperforming Assets 6 13 39 Total Nonperforming Assets 9,782 10,265 4,524
LAKELAND FINANCIAL CORPORATION CONSOLIDATED BALANCE SHEETS As of March 31, 2005 and December 31, 2004 (in thousands)
March 31, December 31, 2005 2004 ------------ ------------ (Unaudited) ASSETS Cash and due from banks $ 52,419 $ 81,144 Short-term investments 5,665 22,714 ------------ ------------ Total cash and cash equivalents 58,084 103,858 Securities available-for-sale (carried at fair value) 285,162 286,582 Real estate mortgages held-for-sale 2,726 2,991 Loans: Total loans 1,022,184 1,003,219 Less: Allowance for loan losses 11,115 10,754 ------------ ------------ Net loans 1,011,069 992,465 Land, premises and equipment, net 24,951 25,057 Bank owned life insurance 17,156 16,896 Accrued income receivable 6,044 5,765 Goodwill 4,970 4,970 Other intangible assets 1,193 1,245 Other assets 14,677 13,293 ------------ ------------ Total assets $ 1,426,032 $ 1,453,122 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Noninterest bearing deposits $ 228,391 $ 237,261 Interest bearing deposits 904,155 878,138 ------------ ------------ Total deposits 1,132,546 1,115,399 Short-term borrowings: Federal funds purchased 12,500 20,000 Securities sold under agreements to repurchase 89,959 88,057 U.S. Treasury demand notes 1,262 2,593 Other borrowings 35,000 75,000 ------------ ------------ Total short-term borrowings 138,721 185,650 Accrued expenses payable 8,505 7,445 Other liabilities 2,015 1,889 Long-term borrowings 10,046 10,046 Subordinated debentures 30,928 30,928 ------------ ------------ Total liabilities 1,322,761 1,351,357 STOCKHOLDERS' EQUITY Common stock: No par value, 90,000,000 shares authorized, 5,950,554 shares issued and 5,914,149 outstanding as of March 31 2005, and 5,915,854 shares issued and 5,881,283 outstanding at December 31, 2004 1,453 1,453 Additional paid-in capital 13,316 12,463 Retained earnings 92,675 89,864 Accumulated other comprehensive income/(loss) (3,353) (1,267) Treasury stock, at cost (820) (748) ------------ ------------ Total stockholders' equity 103,271 101,765 ------------ ------------ Total liabilities and stockholders' equity $ 1,426,032 $ 1,453,122 ============ ============
LAKELAND FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME For the Three Months Ended March 31, 2005 and 2004 (in thousands except for share data) (Unaudited)
Three Months Ended March 31, --------------------------- 2005 2004 ------------ ------------ NET INTEREST INCOME ---------------------------- Interest and fees on loans: Taxable $ 14,513 $ 11,443 Tax exempt 45 68 Interest and dividends on securities: Taxable 2,272 2,179 Tax exempt 587 584 Short-term investments 56 28 ------------ ------------ Total interest and dividend income 17,473 14,302 Interest on deposits 4,448 3,031 Interest on short-term borrowings 680 346 Interest on long-term borrowings 494 590 ------------ ------------ Total interest expense 5,622 3,967 ------------ ------------ NET INTEREST INCOME 11,851 10,335 ------------------- Provision for loan losses 458 252 ------------ ------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 11,393 10,083 ------------------------- ------------ ------------ NONINTEREST INCOME ------------------ Trust and brokerage fees 728 739 Service charges on deposit accounts 1,549 1,657 Loan, insurance and service fees 415 487 Merchant card fee income 536 500 Other income 647 330 Net gains on sale of real estate mortgages held for sale 244 320 ------------ ------------ Total noninterest income 4,119 4,033 NONINTEREST EXPENSE ------------------- Salaries and employee benefits 5,146 4,925 Net occupancy expense 656 578 Equipment costs 517 439 Data processing fees and supplies 558 595 Credit card interchange 328 290 Other expense 2,158 2,081 ------------ ------------ Total noninterest expense 9,363 8,908 INCOME BEFORE INCOME TAX EXPENSE 6,149 5,208 -------------------------------- Income tax expense 2,094 1,706 ------------ ------------ NET INCOME $ 4,055 $ 3,502 ---------- ============ ============ BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 5,936,370 5,842,946 BASIC EARNINGS PER COMMON SHARE $ 0.68 $ 0.60 ------------------------------- ============ ============ DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 6,132,482 6,052,537 DILUTED EARNINGS PER COMMON SHARE $ 0.66 $ 0.58 --------------------------------- ============ ============