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 (Date of earliest event reported) April 15, 2005
Lakeland Financial Corporation
(Exact name of Registrant as specified in its charter)
Indiana 0-11487 35-1559596
(State or other jurisdiction (Commission file (I.R.S. Employer
of incorporation) Number) 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)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Solicitation material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c)
Item 2.02. Results of Operations and Financial Condition
On April 15, 2005, Lakeland Financial Corporation issued a press release
announcing its earnings for the quarter ended March 31, 2005. The news release
is attached as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release dated April 15, 2005
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: April 15, 2005 By: /s/David M. Findlay
David M. Findlay
Chief Financial Officer
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
- --------------------------------- ============ ============