January 17, 2001
LAKELAND FINANCIAL CORPORATION REPORTS RECORD RESULTS AND EXECUTIVE PROMOTIONS
Warsaw, Indiana (January 17, 2001) - Lakeland Financial Corporation (Nasdaq/:LKFN) today announced record net income of $9.3 million, or $1.60 per diluted share, for the fiscal year ended December 31, 2000, an increase of 12.1% when compared to net income of $8.3 million, or $1.43 per diluted share, in 1999. The earnings improvement was driven primarily by significant growth in net interest income and strong expense control. Net interest income after the provision for loan losses increased 9.2% to $33.8 million for the year versus $31.0 million in 1999. Non-interest expense increased less than 1% to $30.8 million versus $30.5 million in 1999.
Trust and brokerage fees increased 23.2% during the year to $2.1 million versus $1.7 million in 1999. Total non-interest income for the year was $10.4 million versus $12.0 million in 1999. This decrease resulted from the presence of security gains and mortgage sales gains totaling $2.6 million in 1999 versus $504,000 in 2000. Excluding these components, non-interest income increased by 6.0% during the year.
Michael L. Kubacki, President and Chief Executive Officer stated, "We are happy to report a 12% earnings increase and record net income for the thirteenth consecutive year. Despite the challenges of a significant reduction in the mortgage origination business and softening economic conditions in the northern part of our market area, we are pleased with our overall performance in 2000".
Kubacki continued, "Our substantial investment in technology helped improve productivity, as non-interest expenses were up only 1%. We continued to expand our branch network though the opening of a second office in Fort Wayne in October and we plan to open a third office in both the Ft. Wayne and South Bend markets in 2001, thereby expanding our presence in these important markets. Our people continue to deliver the high quality, personal service that Lake City Bank is known for, and do so in a way that we believe produces long term value for our shareholders."
The Company also announced the following management changes. Effective February, 9, 2001 D. Jean Northenor will retire from her position as Executive Vice President, Human Resources and Marketing, after a 17 year career with the bank. In addition, it was announced that Northenor would be appointed to the Lakeland Financial Corporation and Lake City Bank Boards of Directors effective at the time of her retirement. Walter L. Weldy, Executive Vice President, will assume responsibilities for Marketing and Business Development. Kevin L. Deardorff was promoted to Executive Vice President, Retail Banking, to succeed Weldy and will be responsible for the administration of the Bank's 42 offices, as well as consumer lending. Thomas P. Frantz was promoted to Senior Vice President; Consumer Credit to succeed Deardorff and Jill A. DeBatty was promoted to Senior Vice President, Human Resources.
Commenting on the changes, Kubacki said, "While we are saddened by Jean's retirement and will miss her valuable contributions as a member of senior management, we are pleased to have her join our Boards. In addition, these promotions are well-deserved recognition for the excellent performance of each of these individuals and their valuable contribution to our success."
Kubacki concluded, "As always, our customers remain the highest priority. With a focus on providing business and personal banking customers with the support and guidance to help them in reaching their financial goals, we are well positioned for future success."
Lakeland Financial Corporation is a $1.1 billion bank holding company headquartered in Warsaw, Indiana. Lake City Bank, the Company's primary subsidiary, has 43 branches located in the following Indiana counties: Kosciusko, Elkhart, Allen, St. Joseph, Cass, Fulton, Howard, Huntington, LaGrange, Marshall, Miami, Noble, Pulaski, Whitley and Wabash.
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. |
