NASDAQ$LKFN

Lakeland Financial Corp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Lakeland Financial reported a decrease in net income and diluted earnings per share for the first quarter of 2020, while managing the impact of COVID-19.

Lakeland Financial Corporation reported a decrease in net income to $17.3 million for Q1 2020, a 20% decrease compared to Q1 2019. Diluted earnings per share also decreased by 20% to $0.67. The company focused on managing the challenges presented by the COVID-19 pandemic, taking aggressive steps to manage net interest margin and working with borrowers during this period.

  • Net income for the first quarter of 2020 was $17.3 million, a 20% decrease compared to the first quarter of 2019.
  • Diluted earnings per share decreased 20% to $0.67 for the first quarter of 2020.
  • Pretax pre-provision earnings increased by 1% to $27.5 million for the first quarter of 2020.
  • The company recorded a provision for loan losses of $6.6 million in the first quarter of 2020, a 450% increase compared to the first quarter of 2019, driven by the potential negative impact of the COVID-19 pandemic.

Headline financials

Total Revenue

$49.6M

Previous: $49.7M-0.2%
EPS (adj)

$0.67

Previous: $0.84-20.2%
Efficiency Ratio

44.5%

Previous: 45.2%-1.5%
Net Interest Margin

3.4%

Previous: 3.5%-2.9%
TCE to Tangible Assets

12.0%

Previous: 11.0%+8.6%
Capital Expenditures

-$2.13M

Previous: -$2.09M-2.0%
Free Cash Flow

$15.2M

Previous: $19.6M-22.6%
Net Income

$17.3M

Previous: $21.7M-20.2%
Operating Income

$25.9M

Previous: $28.4M-8.9%
Gross Profit

$42.9M

Previous: $48.4M-11.5%
Cash & Equivalents

$133M

Previous: $189M-29.8%
Total Assets

$5.03B

Previous: $4.89B+2.8%
Stock-Based Comp

$413K

Previous: $1.2M-65.6%

Revenue & EPS history

Lakeland Financial · Revenue · Quarterly

$49.6M

Q1 2020-0.2%vs Q1 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Forward guidance

Lakeland Financial Corporation did not provide a specific financial outlook for future periods in the provided document. However, they discussed their management of the COVID-19 crisis, credit risk, and liquidity preparedness.

Tailwinds

  • The Lake City Bank team has done an exceptional job managing through an intensely challenging period.
  • The company entered 2020 with an optimistic outlook and strong momentum in all business units.
  • Core operating performance was strong as the company moved into March.
  • Net interest margin was improving versus the linked fourth quarter.
  • The company was experiencing healthy growth in core commercial and retail deposits as well as strong loan growth.

Headwinds

  • The challenging environment created by the COVID-19 pandemic affected borrowers and the regional economy.
  • Interest rate actions by the Federal Reserve Bank quickly influenced net interest margin.
  • Transactions in the company’s 50 offices are down approximately 30% since the start of the crisis.
  • COVID-19 loan deferrals had increased to $467.1 million as of April 22, 2020.
  • The company expects that COVID-19 loan deferrals will increase at least through the second quarter of 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.7%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+2.5%

Avg return

30 days after

53%

35 / 66 earnings

Positive

+14.2%

Q4 2023

Best reaction

-8.1%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%+2.8%+0.9%
Q4 2025+4.3%+1.3%+0.9%
Q3 2025-5.2%-7.8%-5.0%
Q2 2025-0.8%+0.2%+2.6%
Q1 2025-2.0%+2.0%+7.4%
Q4 2024+2.8%+1.7%-2.6%
Q3 2024+2.3%+2.5%+15.5%
Q2 2024+2.1%-1.5%-4.2%
Q1 2024-4.6%-6.2%-2.5%
Q4 2023+14.2%+13.4%+0.5%
Q3 2023+5.7%+4.1%+18.2%
Q2 2023+0.6%+1.5%+1.4%
Q1 2023-8.1%-9.7%-10.2%
Q4 2022-6.7%-5.9%-2.7%
Q3 2022+6.4%+8.0%+1.4%
Q2 2022+6.6%+10.5%+9.9%
Q1 2022-3.1%-4.7%-5.8%
Q4 2021-0.7%-2.3%-4.6%
Q3 2021-4.8%-8.0%-5.0%
Q2 2021+4.2%+17.4%+17.0%
Q1 2021-3.2%-5.7%-12.1%
Q4 2020+3.0%-2.1%+16.1%
Q3 2020+2.6%+3.9%+10.2%
Q2 2020-2.5%-2.7%+1.5%
Q1 2020+12.3%+8.2%+19.5%
Q4 2019+1.8%-0.5%-10.0%
Q3 2019+2.0%+3.1%+3.4%
Q2 2019+0.2%+0.8%-8.0%
Q1 2019+1.6%+1.7%-1.8%
Q4 2018+2.0%+2.9%+8.8%
Q3 2018+7.2%+9.5%+15.3%
Q2 2018+1.5%-1.5%+1.5%
Q1 2018-1.3%-3.0%+0.7%
Q4 2017-3.0%-3.5%-4.6%
Q3 2017+0.8%-2.1%-1.2%
Q2 2017+1.6%+0.8%-3.0%
Q1 2017+7.1%+2.5%-1.8%
Q4 2016+3.3%-1.3%+3.1%
Q3 2016+5.8%+4.6%+24.8%
Q2 2016+3.3%+3.3%+6.4%
Q1 2016+1.9%
Q4 2015-0.4%
Q3 2015-3.4%
Q2 2015-1.0%
Q1 2015+1.7%
Q4 2014-4.6%
Q3 2014+2.9%
Q2 2014+0.3%
Q1 2014-1.8%
Q4 2013+4.9%
Q3 2013+2.2%
Q2 2013+5.1%
Q1 2013+2.9%
Q4 2012-2.1%
Q3 2012+1.0%
Q2 2012-1.7%
Q1 2011-0.9%
Q1 2012-0.7%
Q4 2011-1.5%
Q4 2009-1.5%
Q3 2011-2.9%
Q3 2010-2.9%
Q2 2011-3.7%
Q2 2010-3.7%
Q4 2010-3.7%
Q1 2010-2.0%

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