Lakeland Financial Reports Record Third-Quarter Net Income

The Tip Desk · November 8, 2026 · 3 min read

Third-quarter net income reached a record $28.9 million as net interest income rose 8% to $60.7 million and the margin widened to 3.58%.

Lakeland Financial Corporation (LKFN), parent of Lake City Bank, reported record third-quarter net income of $28.9 million for the three months ended September 30, 2026, up $2.5 million, or 9%, from $26.4 million a year earlier. Diluted earnings were a record $1.14 a share, up 11% from $1.03.

That result followed record first-quarter net income of $26.5 million and record second-quarter net income of $28.4 million. Total revenue was $73.0 million, up 6% from $69.0 million a year earlier. Chairman and CEO David M. Findlay said strong loan growth and net interest margin expansion were reflected in the quarter’s earnings.

Net interest income was $60.7 million, up $4.6 million, or 8%, from $56.1 million. Net interest margin was 3.58%, up 8 basis points from 3.50%. Funding costs fell 24 basis points to 2.13% while earning-asset yields declined 16 basis points to 5.71%. On a linked-quarter basis, the margin rose 9 basis points from 3.49% after second-quarter seasonal public-funds inflows had lifted funding costs. Chief Financial Officer Lisa M. O’Neill said the expansion reflected loan growth and deposit pricing.

Average loans were $5.59 billion, up 7% from $5.21 billion. Period-end loans were $5.68 billion, up 8% from $5.25 billion. Commercial and industrial loans rose $187.4 million, or 12%; commercial real estate and multi-family residential loans rose $117.6 million, or 4%; consumer 1-4 family mortgages rose $83.2 million, or 16%. Commercial originations were about $525.0 million against about $443.0 million of paydowns. C&I line usage was 42% at quarter-end. Findlay said commercial originations had outpaced paydowns for a fourth consecutive quarter.

Core deposits were $6.05 billion, up 3% from $5.85 billion, and represented 96% of total deposits. Total deposits were $6.29 billion. Public funds rose $189.6 million, or 10%, to $2.02 billion; retail deposits rose $93.0 million, or 5%, to $1.82 billion; commercial deposits contracted $78.3 million, or 3%, to $2.21 billion. Average total deposits were $6.34 billion, up 5%, with average time deposits up $174.4 million, or 23%. O’Neill said Indianapolis deposit strategies yielded $106.1 million, of which $83.2 million was new money.

The provision for credit losses was $1.2 million. The allowance-to-loans ratio was 1.21%. Net charge-offs were $3.0 million, or 0.21% annualized, driven by a $2.8 million partial charge-off on a fully reserved nonperforming commercial credit. Nonperforming assets were $18.0 million. Watch-list loans were 3.56% of total loans, up 56 basis points from 3.00% a year earlier. Individually analyzed and watch-list loans were $202.0 million.

Noninterest income was $12.3 million, down 5% from $13.0 million. Wealth advisory fees rose $298,000, or 10%; loan and service fees fell $384,000, or 11%. Noninterest expense was $36.1 million, up 3%. The efficiency ratio was 49.5%. Return on average equity was 14.88%.

Total capital was 15.56% of risk-weighted assets. The tangible common equity to tangible assets ratio was 10.11%, down from 10.79% a year earlier, which the company attributed primarily to unrealized losses on available-for-sale securities after an 85 basis point rise in the 10-year Treasury yield. The board approved a $0.52 a share dividend, up 4% from $0.50. The company repurchased 41,550 shares for $2.4 million, leaving $14.6 million of remaining authorization under the $60.0 million program.