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) October 17, 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 October 17, 2005, Lakeland Financial Corporation issued a press
release announcing its earnings for the nine-months and three-months ended
September 30, 2005. The news release is attached as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release dated October 17, 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: October 17, 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 AND LOAN GROWTH SET
RECORDS AT LAKELAND FINANCIAL
Third Quarter Performance and Cash Dividend Announced
Warsaw, Indiana (October 17, 2005) - Lakeland Financial Corporation
(Nasdaq/LKFN), parent company of Lake City Bank, today reported record
quarterly net income of $4.5 million for the third quarter of 2005. Net income
increased 14% over the $4.0 million reported for the third quarter in 2004.
Diluted net income per common share for the quarter was $0.73 versus $0.65 for
the comparable period of 2004. Net income for the nine months ended September
30, 2005 was a record $13.0 million, an increase of 20%, versus $10.8 million
for the nine months ended September 30, 2004. Diluted net income per common
share was $2.11 for the nine months ended September 30, 2005, versus $1.78 for
the nine months ended September 30, 2004.
Michael L. Kubacki, Chairman, President and Chief Executive Officer,
commented, "Lake City Bank has established record income performance in every
quarter of 2005. This has been accomplished through outstanding loan growth
and strong revenue generation across the organization. As demonstrated by our
further market penetration in every region, our reputation as the bank for
business in Northern Indiana continues to grow."
Kubacki continued, "Since the end of 2004, total loans have grown by $142
million, or 14%, with $51 million of that growth occurring in the third
quarter. With a quarter still to go, we have already experienced more loan
growth in 2005 than in any other year in our history. "
Kubacki added, "The Lake City Bank team continues to leverage our
operations through strong revenue growth and disciplined expense management.
Our efficiency ratio of 56% for the nine months represents an all-time low and
a gratifying reduction from 62% for the same period in 2004." Noninterest
expense increased only 2.6% for the year-to-date period versus the comparable
period in 2004, while total revenues increased 12% year-over-year.
The Company also announced that the Board of Directors approved a cash
dividend for the third quarter of $0.23 per share, payable on October 25, 2005
to shareholders of record on October 10, 2005. The quarterly dividend
represents a 10% increase over the quarterly dividend of $0.21 paid in 2004.
Average total loans for the third quarter of 2005 were $1.116 billion
versus $1.061 billion during the second quarter of 2005, a linked-quarter
increase of 5%. Total loans as of September 30, 2005 were $1.145 billion, an
increase of $51.3 million, versus $1.094 billion as of June 30, 2005. Total
loans as of September 30, 2004 were $953 million.
Lakeland Financial's allowance for loan losses as of September 30, 2005
was $12.2 million, compared to $11.7 million as of June 30, 2005 and $10.7
million as of September 30, 2004. Non-performing assets totaled $7.8 million
as of September 30, 2005 versus $9.2 million as of June 30, 2005 and $10.9
million on September 30, 2004. The ratio of non-performing assets to loans was
0.68% on September 30, 2005 compared to 0.84% at June 30, 2005 and 1.14% at
September 30, 2004. Net charge offs totaled $159,000 in the third quarter of
2005 versus $54,000 during the second quarter of 2005 and $52,000 in the third
quarter of 2004.
For the three months ended September 30, 2005, Lakeland Financial's
average equity to average assets ratio was 7.21% compared to 7.27% for the
second quarter of 2005 and 7.28% for the third quarter of 2004. Average
stockholders' equity for the quarter ended September 30, 2005 was $110.1
million versus $106.6 million for the second quarter of 2005 and $97.5 million
for the third quarter of 2004. Average total deposits were $1.193 billion for
the third quarter of 2005 versus $1.130 billion for the second quarter of 2005
and $1.022 billion for the third quarter of 2004.
Lakeland Financial Corporation is a $1.6 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., E*Trade Capital Markets
LLC, FTN Financial Securities Corp., Goldman Sachs & Company, Hill, Thompson,
Magid & Co., Howe Barnes Investments, Inc., Keefe, Bruyette & Woods, Inc.,
Knight Equity Markets, L.P., Lehman Brothers Inc., Morgan Stanley & Co., Inc.,
Stifel Nicolaus & Company, Inc., Susquehanna Capital Group, UBS Capital
Markets L.P., and UBS Securities LLC.
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
THIRD QUARTER 2005 FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in thousands except Share and Per Share Data)
Three Months Ended Nine Months Ended
--------------------------------------- -------------------------
Sep. 30, Jun. 30, Sep. 30, Sep. 30, Sep. 30,
2005 2005 2004 2005 2004
----------- ---------- ------------ ----------- ------------
END OF PERIOD BALANCES
Assets $ 1,557,713 $ 1,538,615 $ 1,349,534 $ 1,557,713 $ 1,349,534
Deposits 1,250,970 1,125,872 1,043,513 1,250,970 1,043,513
Loans 1,145,366 1,094,048 952,671 1,145,366 952,671
Allowance for Loan Losses 12,233 11,724 10,741 12,233 10,741
Common Stockholders' Equity 110,471 108,456 98,737 110,471 98,737
AVERAGE BALANCES
Assets
Total Assets $ 1,525,945 $ 1,466,900 $ 1,338,968 $ 1,470,119 $ 1,314,524
Earning Assets 1,413,814 1,354,199 1,229,356 1,358,108 1,206,493
Investments 287,968 286,638 279,907 286,866 280,704
Loans 1,115,866 1,061,289 939,914 1,062,643 916,228
Liabilities and Stockholders' Equity
Total Deposits 1,192,656 1,129,776 1,022,216 1,144,299 1,002,702
Interest Bearing Deposits 975,661 906,288 809,971 925,373 800,209
Interest Bearing Liabilities 1,188,964 1,127,307 1,020,926 1,134,712 1,008,805
Common Stockholders' Equity 110,060 106,600 97,490 106,785 95,081
INCOME STATEMENT DATA
Net Interest Income $ 12,534 $ 12,504 $ 10,586 $ 36,889 $ 31,300
Net Interest Income-Fully Tax Equivalent 12,832 12,804 11,224 37,780 32,595
Provision for Loan Losses 659 662 150 1,779 648
Noninterest Income 4,380 4,218 4,759 12,717 12,837
Noninterest Expense 9,355 9,298 9,201 28,016 27,304
Net Income 4,522 4,404 3,951 12,981 10,797
PER SHARE DATA
Basic Net Income Per Common Share $ 0.76 $ 0.74 $ 0.67 $ 2.18 $ 1.84
Diluted Net Income Per Common Share 0.73 0.72 0.65 2.11 1.78
Cash Dividends Per Common Share 0.23 0.23 0.21 0.69 0.63
Book Value Per Common Share (equity per share issued) 18.46 18.17 16.80 18.46 16.80
Market Value - High 43.88 40.75 34.46 43.88 38.05
Market Value - Low 38.60 35.00 30.74 35.00 28.31
Basic Weighted Average Common Shares Outstanding 5,978,865 5,953,831 5,874,981 5,956,507 5,859,191
Diluted Weighted Average Common Shares Outstanding 6,154,777 6,129,603 6,058,608 6,139,587 6,053,125
KEY RATIOS
Return on Average Assets 1.18 % 1.20 % 1.17 % 1.18 % 1.10 %
Return on Average Common Stockholders' Equity 16.30 16.57 16.12 16.25 15.17
Efficiency (Noninterest Expense / Net Interest Income
plus Noninterest Income) 55.31 55.60 59.96 56.48 61.86
Average Equity to Average Assets 7.21 7.27 7.28 7.26 7.23
Net Interest Margin 3.59 3.78 3.60 3.72 3.57
Net Charge Offs to Average Loans 0.05 0.02 0.02 0.04 0.02
Loan Loss Reserve to Loans 1.07 1.07 1.13 1.07 1.13
Nonperforming Assets to Loans 0.68 0.84 1.14 0.68 1.14
Tier 1 Leverage 8.96 9.19 9.24 8.96 9.24
Tier 1 Risk-Based Capital 10.93 11.02 11.72 10.93 11.72
Total Capital 11.91 11.99 12.74 11.91 12.74
ASSET QUALITY
Loans Past Due 90 Days or More $ 218 $ 2,542 $ 2,821 $ 218 $ 2,821
Non-accrual Loans 7,600 6,665 7,779 7,600 7,779
Net Charge Offs 159 54 52 299 141
Other Real Estate Owned 0 0 277 0 277
Other Nonperforming Assets 12 15 28 12 28
Total Nonperforming Assets 7,830 9,221 10,905 7,830 10,905
LAKELAND FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
As of September 30, 2005 and December 31, 2004
(in thousands)
September 30, December 31,
2005 2004
------------ ------------
(Unaudited)
ASSETS
Cash and due from banks $ 56,361 $ 81,144
Short-term investments 6,082 22,714
------------ ------------
Total cash and cash equivalents 62,443 103,858
Securities available-for-sale (carried at fair value) 289,198 286,582
Real estate mortgages held-for-sale 3,478 2,991
Loans:
Total loans 1,145,366 1,003,219
Less: Allowance for loan losses 12,233 10,754
------------ ------------
Net loans 1,133,133 992,465
Land, premises and equipment, net 24,820 25,057
Bank owned life insurance 17,521 16,896
Accrued income receivable 6,503 5,765
Goodwill 4,970 4,970
Other intangible assets 1,087 1,245
Other assets 14,560 13,293
------------ ------------
Total assets $ 1,557,713 $ 1,453,122
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Noninterest bearing deposits $ 228,242 $ 237,261
Interest bearing deposits 1,022,728 878,138
------------ ------------
Total deposits 1,250,970 1,115,399
Short-term borrowings:
Federal funds purchased 2,600 20,000
Securities sold under agreements
to repurchase 70,626 88,057
U.S. Treasury demand notes 1,428 2,593
Other borrowings 70,000 75,000
------------ ------------
Total short-term borrowings 144,654 185,650
Accrued expenses payable 8,797 7,445
Other liabilities 1,847 1,889
Long-term borrowings 10,046 10,046
Subordinated debentures 30,928 30,928
------------ ------------
Total liabilities 1,447,242 1,351,357
STOCKHOLDERS' EQUITY
Common stock: No par value, 90,000,000 shares authorized,
5,985,354 shares issued and 5,946,864 outstanding as of
September 30 2005, and 5,915,854 shares issued and 5,881,283
outstanding at December 31, 2004 1,453 1,453
Additional paid-in capital 14,259 12,463
Retained earnings 98,729 89,864
Accumulated other comprehensive income/(loss) (3,060) (1,267)
Treasury stock, at cost (910) (748)
------------ ------------
Total stockholders' equity 110,471 101,765
------------ ------------
Total liabilities and stockholders' equity $ 1,557,713 $ 1,453,122
============ ============
LAKELAND FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months and Nine Months Ended September 30, 2005 and 2004
(in thousands except for share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
NET INTEREST INCOME
- ----------------------------
Interest and fees on loans:
Taxable $ 17,894 $ 12,124 $ 48,561 $ 35,255
Tax exempt 47 67 132 206
Interest and dividends on securities:
Taxable 2,313 1,971 6,949 6,018
Tax exempt 585 585 1,759 1,757
Short-term investments 83 33 184 82
------------ ------------ ------------ ------------
Total interest and dividend income 20,922 14,780 57,585 43,318
Interest on deposits 6,609 3,249 16,139 9,381
Interest on short-term borrowings 1,207 517 2,950 1,215
Interest on long-term borrowings 572 428 1,607 1,422
------------ ------------ ------------ ------------
Total interest expense 8,388 4,194 20,696 12,018
------------ ------------ ------------ ------------
NET INTEREST INCOME 12,534 10,586 36,889 31,300
- -------------------
Provision for loan losses 659 150 1,779 648
------------ ------------ ------------ ------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 11,875 10,436 35,110 30,652
- ------------------------- ------------ ------------ ------------ ------------
NONINTEREST INCOME
- ------------------
Trust and brokerage fees 742 800 2,261 2,319
Service charges on deposit accounts 1,860 1,840 5,112 5,194
Loan, insurance and service fees 440 749 1,333 1,706
Merchant card fee income 692 576 1,857 1,657
Other income 371 363 1,428 1,237
Net gains on sale of real
estate mortgages held for sale 275 431 726 724
------------ ------------ ------------ ------------
Total noninterest income 4,380 4,759 12,717 12,837
NONINTEREST EXPENSE
- -------------------
Salaries and employee benefits 5,051 4,921 15,224 14,705
Net occupancy expense 728 634 2,059 1,802
Equipment costs 468 569 1,476 1,532
Data processing fees and supplies 586 656 1,715 1,901
Credit card interchange 442 404 1,158 1,037
Other expense 2,080 2,017 6,384 6,327
------------ ------------ ------------ ------------
Total noninterest expense 9,355 9,201 28,016 27,304
INCOME BEFORE INCOME TAX EXPENSE 6,900 5,994 19,811 16,185
- --------------------------------
Income tax expense 2,378 2,043 6,830 5,388
------------ ------------ ------------ ------------
NET INCOME $ 4,522 $ 3,951 $ 12,981 $ 10,797
- ---------- ============ ============ ============ ============
BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 5,978,865 5,874,981 5,956,507 5,859,191
BASIC EARNINGS PER COMMON SHARE $ 0.76 $ 0.67 $ 2.18 $ 1.84
- ------------------------------- ============ ============ ============ ============
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 6,154,777 6,058,608 6,139,587 6,053,125
DILUTED EARNINGS PER COMMON SHARE $ 0.73 $ 0.65 $ 2.11 $ 1.78
- --------------------------------- ============ ============ ============ ============