January 15, 2002
LAKELAND FINANCIAL REPORTS YEAR END PERFORMANCE AND CASH DIVIDEND
Warsaw, Indiana (January 15, 2002) - Lakeland Financial Corporation (NASDAQ/LKFN), parent company of Lake City Bank, today reported net income of $2.8 million for the fourth quarter of 2001 versus $2.3 million for the comparable period in 2000. Diluted net income per common share for the fourth quarter of 2001 was $0.48 versus $0.39 for the comparable period in 2000. Net income for the year ended December 31, 2001 was a record $10.1 million, or $1.73 per diluted share, versus $9.3 million, or $1.60 per diluted share, in 2000.
The Company announced that the Board of Directors approved a cash dividend for the fourth quarter of $0.15 per share, payable on January 25, 2001 to shareholders of record on January 10, 2001. The Company will have paid total dividends of $0.60 per share in 2001, an increase of 15% over dividends paid in 2000.
Michael L. Kubacki, President and Chief Executive Officer, commented on the performance, "We are gratified by our performance during the fourth quarter and the past year. As was the case for many banks, 2001 has been a tremendously challenging year for Lake City Bank due to the significant decline in interest rates and the overall economic weakness in our markets. During the fourth quarter, our earnings improvement was driven primarily by an increase in the net interest margin and strong noninterest income performance. The net interest margin improved to 3.93% for the fourth quarter versus 3.64% during the same period in 2000. For the year, we reported a net interest margin of 3.70% versus 3.72% in 2000."
Kubacki continued, "We are very pleased with the expansive growth in noninterest income during 2001. Noninterest income increased 23% to $3.4 million in the fourth quarter from $2.8 million in the year ago quarter. For the year, noninterest income, exclusive of the gain on sale of branches that occurred during the third quarter of 2001, increased 17% from $10.9 million to $12.7 million in 2001. Trust and brokerage fees increased 24% while deposit service fees increased 13%. For the year, we recognized $1.2 million in mortgage sales gains as a result of the favorably low interest rate environment versus $504,000 in 2000. While we do not anticipate that we will see a repeat of mortgage sales gains in 2002, noninterest income growth will remain a key focus in the future."
In the fourth quarter, the Company recognized income due to a reduction of $83,000 in its valuation allowance related to accounting for mortgage servicing rights. For the year, the Company recorded non-cash impairment totaling $388,000 for mortgage servicing rights.
Lakeland Financial's allowance for loan losses as of December 31, 2001 was $7.9 million, or 1.08% of gross loans, compared to $7.1 million, or 0.99% of gross loans, as of December 31, 2000. The ratio of non-performing assets to loans was 0.56% on December 31, 2001 compared to 1.34% on December 31, 2000 and 0.61% at the conclusion of the second quarter of 2001.
Kubacki commented, "As a result of the continuing economic pressures in our markets, we have further reinforced the Company's loan loss allowance. In addition, we have bolstered our lending function with the addition of a senior credit officer and a full time loan review officer. While we are pleased with the general level of our non-performing assets to loans ratio, we remain concerned with the potential impact of the extended economic weakness on our customers."
For the year ended December 31, 2001, Lakeland Financial's equity to average assets ratio was 6.56% compared to 6.14% in 2000. Shareholders' equity was $73.5 million versus $65.0 million as of year-end 2000, an increase of 13%. Average loans for the year ended December 31, 2001 were $728 million versus $679 million during 2000, an increase of 7%. Average total deposits for the year ended December 31, 2001 increased 6% percent versus 2000 from $784 million to $833 million.
Lakeland Financial Corporation is a $1.1 billion bank holding company headquartered in Warsaw, Indiana. Lake City Bank serves Northern Indiana with 40 branches located in the following Indiana counties: Kosciusko, Elkhart, Allen, St. Joseph, 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". Marketmakers in Lakeland Financial Corporation common shares include Stifel Nicolaus & Company, Raymond James & Associates, Inc., McDonald Investments, Inc. and First Tennessee Capital Markets.
The Company's fixed rate cumulative trust preferred securities are traded on the Nasdaq Stock Market under the symbols "LKFNP". The annual rate on the fixed rate securities is 9.0%.
This release may contain forward-looking statements. Forward looking statements are identifiable by the inclusion of such qualifications as expects, intends, believes, may, likely or similar statements or variations of such terms which express views concerning trends and the future. These forward looking statements are not historical facts and instead they are expressions about management's confidence and strategies and management's expectations about new and existing programs and products, relationships, opportunities, technology and market conditions. Actual events and results may differ significantly from those described in such forward looking statements, due to changes in general economic or market conditions, government regulation, competition or other factors. For additional information about these factors, please review our filings with the Securities and Exchange Commission. |
