NASDAQ$LKFN

Lakeland Financial Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Lakeland Financial reported second quarter earnings, highlighted by net income increase and loan growth.

Lakeland Financial Corporation reported a net income of $22.5 million for the second quarter of 2024, a 54% increase compared to the same period in 2023. The company reached $5.0 billion in total loans, representing 5% annual average loan growth. The company's performance was impacted by a $9.0 million net gain on Visa shares and a $4.5 million accrual related to the resolution of a legal matter.

  • Net income increased by 54% year-over-year, reaching $22.5 million.
  • Diluted earnings per share increased by 53% year-over-year, reaching $0.87.
  • Total loans reached $5.0 billion, with 5% annual average loan growth.
  • Noninterest income increased by 78%, driven by a net gain on Visa shares.

Headline financials

Total Revenue

$68.7M

Previous: $60M+14.5%
EPS

$0.87

Previous: $0.57+52.6%
Efficiency Ratio

48.5%

No prior period
Net Interest Margin

3.2%

Previous: 3.3%-3.4%
Tangible Book Value/Share

$25.34

No prior period
Common Equity Tier 1

14.3%

No prior period
Tangible Capital Ratio

9.9%

Previous: 9.0%+9.6%
Total Capital to Risk Assets

15.5%

No prior period
TCE to Tangible Assets

9.9%

No prior period
Adj. TCE to Adj. Tangible Assets

12.2%

No prior period
ACL Reserve to Loans

1.6%

No prior period
NPA to Total Assets

0.9%

No prior period
Watch List Loans to Loans

5.3%

No prior period
Investment Securities to Assets

17.1%

No prior period
Capital Expenditures

-$3.97M

Previous: -$3.82M-3.7%
Free Cash Flow

$18.6M

Previous: $10.8M+72.3%
Net Income

$22.5M

Previous: $14.6M+54.3%
Operating Income

$2.5M

Previous: $15.8M-84.2%
Gross Profit

$60M

Previous: $58.9M+1.8%
Cash & Equivalents

$121M

Previous: $173M-30.0%
Total Assets

$6.57B

Previous: $6.51B+0.9%
Stock-Based Comp

$995K

Previous: -$2.55M+139.0%

Revenue & EPS history

Lakeland Financial · Revenue · Quarterly

$68.7M

Q2 2024+14.5%vs Q2 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Lakeland Financial's reduced asset sensitivity posture positions the bank well for the anticipated Federal Reserve Bank easing that is expected to occur in the second half of 2024.

Tailwinds

  • Expansion of net interest margin on a linked quarter basis.
  • Positive impact of loan growth on earning asset yields.
  • Successful testing of deposit rate sensitivity for selective products.
  • Continued evaluation of additional opportunities in the future.
  • Reduced asset sensitivity posture positions the bank well for the anticipated Federal Reserve Bank easing.

Headwinds

  • The company's performance in the second quarter was impacted by two non-routine events, including a $9.0 million net gain on Visa shares and a one-time accrual of $4.5 million related to the resolution of a legal matter.
  • Increase in nonperforming loans, driven by a single industrial credit relationship.
  • The provision expense recorded during the second quarter of 2024 was primarily attributable to an increase in the specific reserve allocation from the downgrade of a single $43.3 million commercial relationship that was placed on nonperforming status during the second quarter of 2024.
  • Net interest margin decreased 11 basis points year-over-year.
  • Experienced an increase to funding costs from increased competition for deposits throughout the industry.

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 Q2 2024

Historical avgQ2 2024

+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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