July 15, 2002
LAKELAND FINANCIAL REPORTS RECORD PERFORMANCE AND CASH DIVIDEND
Warsaw, Indiana (July 15, 2002) - Lakeland Financial Corporation (Nasdaq/LKFN), parent company of Lake City Bank, today reported record net income of $3.0 million for the second quarter of 2002, an increase of 26% versus $2.4 million for the comparable period in 2001. Diluted net income per common share for the quarter was $0.50 versus $0.41 for the comparable period in 2001. Net income for the six months ended June 30, 2002 was $5.9 million, or $0.99 per diluted share, an increase of 31% versus $4.5 million, or $0.78 per diluted share, in the first half of 2001.
The Company announced that the Board of Directors approved a cash dividend for the second quarter of $0.17 per share, payable on July 25, 2002 to shareholders of record on July 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 pleased with the overall performance of Lake City Bank during the first half of 2002. The Company's strong year to date net interest margin of 4.15% and a 13% increase in noninterest income contributed to a 31% growth in net income for the first six months of 2002 versus the same period in 2001."
Kubacki continued, "The improvement in noninterest income was led by a 22% increase in service charges on deposit accounts, which increased by $529,000 to $3.0 million for the first six months of 2002 versus the same period in 2001. Net gains on the sale of real estate mortgages increased 60% from $444,000 to $711,000 and trust fees increased 24% from $803,000 to $999,000 for the six month period compared to the same period in 2001."
Lakeland Financial's allowance for loan losses as of June 30, 2002 was $8.9 million, or 1.16% of gross loans, compared to $7.4 million, or 1.00% of gross loans, as of June 30, 2001 and $8.3 million, or 1.12% of gross loans, as of March 31, 2002. The ratio of non-performing assets to loans was 0.84% on June 30, 2002 compared to 0.61% on June 30, 2001 and 0.46% at March 31, 2002. Nonperforming assets increased from $3.4 million at March 31, 2002 to $6.5 million at June 30, 2002 as a result of one loan totaling $3.4 million. The Company's loan loss allowance represented 138% of total nonperforming assets as of June 30, 2002 and increased by $1.5 million, or 20%, during the last twelve months.
Kubacki commented, "Asset quality issues and concerns about the financial and economic climate continue to support an increased loan loss allowance. While the performance of certain segments of our commercial customer base appear to be improving with the economic recovery, we continue to be concerned with the prolonged impact of the slowdown on many of our customers".
For the six months ended June 30, 2002, Lakeland Financial's average equity to average assets ratio was 6.81% compared to 6.03% at the same point in 2001. Average shareholders' equity for the period was $76.4 million versus $67.2 million as June 30, 2001, an increase of 14%. Average loans for the six months ended June 30, 2002 were $751 million versus $721 million during the same period in 2001. Average total deposits for the six months ended June 30, 2002 were $835 million versus $840 million for the comparable period in 2001. The average loans and average total deposits reported for the first half of 2001 included approximately $24 million of loans and $70 million of deposits which were included in the September 21, 2001 sale of five offices.
Lakeland Financial Corporation is a $1.2 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. The Company plans to open its' 41st office in Auburn, Indiana during the fourth quarter of 2002.
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. |
