Press Release

            Announces Acquisition of Indiana Capital Management's
                         Northeast Indiana Operations

WARSAW, Ind., Sept. 02 /PRNewswire-FirstCall/ -- Lake City Bank, whose parent company is Lakeland Financial Corporation (Nasdaq: LKFN), announced today that it has entered into a definitive purchase agreement for the acquisition of the northeast Indiana operations of Indiana Capital Management, based in Fort Wayne, Indiana.

Michael L. Kubacki, President and Chief Executive Officer, commented, "We are proud to have the Indiana Capital Management staff of Bill Tucker, Larry Moeller, Jeannette Weigand and Marilyn Proctor join the Lake City Bank team. Since entering the Fort Wayne market in 1999, we have been extremely pleased with our success in the market. With seven offices now open in the market, we have more than $125 million in total deposits and more than $200 million in loan commitments. The addition of Indiana Capital Management group will provide us a full service trust office staffed with a team of skilled and committed Fort Wayne trust professionals. With over 70 years of combined experience serving the trust needs of Fort Wayne and northeast Indiana clients, they will be a great addition to Lake City Bank."

Tucker, Senior Vice President, commented, "We are excited to join the Lake City Bank team. For many years, the company has provided families, institutions and corporations in northeast Indiana with trust, investment and retirement planning services. By affiliating with Lake City Bank, our clients will see an expanded range of financial services, as we will continue to provide a wide array of trust services and have the additional benefits of a full menu of traditional bank services. The fact that Lake City Bank is a locally based institution with a significant Fort Wayne and northeast Indiana banking presence will expand and improve our overall capabilities. The Bank clearly shares our emphasis on personal attention to clients and we're excited by the benefits they will see from this change."

Robert C. Condon, Executive Vice President of Trust at Lake City Bank added, "Bill and Larry bring a wealth of local knowledge and experience to our Trust and Investment Department and will join Keith Davis in serving the Fort Wayne and northeast Indiana market. With over $700 million of trust assets under administration, Lake City Bank has built a solid reputation for sophisticated trust and fiduciary services. We will work extensively with our Fort Wayne based retail and commercial banking teams to leverage the capabilities of the Bank for the benefit of our local clients."

Kubacki concluded, "Our success in northeast Indiana and Fort Wayne has resulted from the combination of a talented team of local bankers familiar with the market and the customer driven strategic focus of the Lake City Bank. This transaction will ultimately provide our mutual clients with a broad offering of financial services. We are enthusiastic about our ability to continue to grow our business in this important market."

The transaction is subject to regulatory approval and is expected to close in the fourth quarter of 2003.

Lakeland Financial Corporation is a $1.2 billion bank holding company headquartered in Warsaw, Indiana. Lake City Bank serves Northern Indiana with 41 branches located in the following Indiana counties: Kosciusko, Elkhart, Allen, St. Joseph, DeKalb, Fulton, Huntington, LaGrange, Marshall, Noble, Pulaski and Whitley. A 42nd office is currently under construction in Warsaw and is expected to open in late 2003.

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., First Tennessee Capital Markets and Trident Securities.

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 (including information incorporated by reference) 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.

SOURCE  Lakeland Financial Corporation
    -0-                             09/02/2003
    /CONTACT:  David M. Findlay, Executive Vice President and Chief Financial
Officer of Lakeland Financial Corporation, +1-574-267-9197/
    /Web site:  http://www.lakecitybank.com/
    (LKFN LKFNP)

CO:  Lakeland Financial Corporation
ST:  Indiana
IN:  FIN
SU:  TNM

WB-JJ 
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3131 09/02/200308:00 EDThttp://www.prnewswire.com