April 15, 2002
LAKELAND FINANCIAL REPORTS RECORD FIRST QUARTER PERFORMANCE AND CASH DIVIDEND
Warsaw, Indiana (April 15, 2002) -Lakeland Financial Corporation (NASDAQ/LKFN), parent company of Lake City Bank, today reported record net income of $2.9 million for the first quarter of 2002, an increase of 36% versus $2.1 million for the comparable period in 2001. Diluted net income per common share for the quarter was $0.49 versus $0.37 for the comparable period in 2001.
The Company announced that the Board of Directors approved a cash dividend for the first quarter of $0.17 per share, payable on April 25, 2002 to shareholders of record on April 10, 2002. The quarterly dividend represents an increase of 13% over the quarterly dividend paid in 2001.
Michael L. Kubacki, President and Chief Executive Officer, commented on the performance, "We are encouraged by our strong performance during the quarter. The net interest margin improved significantly from 3.49% in the first quarter of 2001 to 4.12% for the first quarter of 2002. With the prospect for interest rates to remain stable in the foreseeable future, we believe that our margin is well positioned for future quarters. "
Kubacki continued, "We experienced a 17% growth in noninterest income to $3.3 million for the quarter versus $2.9 million for the comparable period in 2001. Service charges on deposit accounts increased 19% to $1.3 million driven by increases in both business and retail accounts. Mortgage sales gains were $361,000 for the quarter versus $127,000 during the first quarter of 2001. With recent increases in overall mortgage rates, we expect to see a slowdown in mortgage originations and a resulting reduction in income from mortgage sales gains. Trust fees increased 26% to $518,000 for the quarter while brokerage fees decreased to $140,000 as a result of reduced trading volume and a decline in fee income related to annuity sales."
Lakeland Financial's allowance for loan losses as of March 31, 2002 was $8.3 million, or 1.12% of gross loans, compared to $7.2 million, or 1.01% of gross loans, as of March 31, 2001. The ratio of non-performing assets to loans was 0.46% on March 31, 2002 compared to 0.54% on March 31, 2001 and 0.56% at December 31, 2001.
Kubacki commented, "Our loan loss allowance has increased by over $1.1 million, or nearly 16%, during the last twelve months. We continued to reinforce our allowance in the first quarter with a provision for loan losses of $502,000. While our reported asset quality ratios remain stable, we continue to believe that it is prudent to maintain and build a reasonable loan loss allowance. We are encouraged by early signs of economic recovery, but will continue to approach the lending function with a careful mindset."
For the quarter ended March 31, 2002, Lakeland Financial's average equity to average assets ratio was 6.84% compared to 6.20% at the same point in 2001. Average Shareholders' equity was $75.2 million versus $66.0 million as March 31, 2001, an increase of 14%. Average loans for the quarter ended March 31, 2002 were $743 million versus $715 million during 2001. Average total deposits for the quarter ended March 31, 2002 were $818 million versus $851 million for the comparable period in 2001. Both the average loans and average total deposits reported were affected by the September 21, 2001 sale of five offices in which approximately $24 million of loans and $70 million of deposits were included.
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, Howe Barnes Investments, Inc., 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 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. |
