SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 15, 2005
Lakeland Financial Corporation
(Exact name of Registrant as specified in its charter)
Indiana 0-11487 35-1559596
(State or other jurisdiction (Commission file (I.R.S. Employer
of incorporation) Number) Identification Number)
202 East Center Street, P.O. Box 1387, Warsaw, Indiana 46581-1387
(Address of principal executive offices) (Zip Code)
(574) 267-6144
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Solicitation material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c)
Item 2.02. Results of Operations and Financial Condition
On July 15, 2005, Lakeland Financial Corporation issued a press release
announcing its earnings for the six-months and three-months ended June 30,
2005. The news release is attached as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release dated July 15, 2005
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
LAKELAND FINANCIAL CORPORATION
Dated: July 15, 2005 By: /s/David M. Findlay
David M. Findlay
Chief Financial Officer
Exhibit 99.1
FOR IMMEDIATE RELEASE Contact: David M. Findlay
Executive Vice President-
Administration and
Chief Financial Officer
(574) 267-9197
32% INCREASE IN INCOME AT LAKELAND FINANCIAL
Second Quarter Record Earnings and Cash Dividend Announced
Warsaw, Indiana (July 15, 2005) - Lakeland Financial Corporation
(Nasdaq/LKFN), parent company of Lake City Bank, today reported record
quarterly net income of $4.4 million for the second quarter of 2005. Net
income increased 32% over the $3.3 million reported for the second quarter in
2004. Diluted net income per common share for the quarter was $0.72 versus
$0.55 for the comparable period of 2004. Net income for the six months ended
June 30, 2005 was a record $8.5 million, an increase of 24%, versus $6.8
million for the six months ended June 30, 2004. Diluted net income per common
share was $1.38 for the six months ended June 30, 2005, versus $1.13 for the
six months ended June 30, 2004.
Michael L. Kubacki, Chairman, President and Chief Executive Officer,
commented, "Lake City Bank's performance in the first half of the year
generated the most profitable quarter in our long history. Outstanding loan
growth, an improving net interest margin and continued sound expense
management all combined to produce these gratifying results."
Kubacki continued, "Since the end of 2004, total loans have grown by more
than 9%, further establishing our reputation as the bank for business in
Northern Indiana. In addition, with $72 million of loan growth during the
second quarter, we experienced the single largest quarterly loan growth in our
Company's history. Our system-wide commercial lending expertise has
contributed to excellent growth across all markets."
Kubacki added, "With ongoing penetration in all business lines, Lake City
Bank is well positioned to continue to expand in every region we serve. We are
making particularly strong progress in the important Fort Wayne market, where
we believe we have positioned ourselves as an aggressive, yet thoughtful
lender that is firmly committed to the Fort Wayne community."
The Company also announced that the Board of Directors approved a cash
dividend for the second quarter of $0.23 per share, payable on July 25, 2005
to shareholders of record on July 10, 2005. The quarterly dividend represents
a 10% increase over the quarterly dividend of $0.21 paid in 2004.
Average total loans for the second quarter of 2005 were $1.061 billion
versus $1.010 billion during the first quarter of 2005, a linked-quarter
increase of 5%. Total loans as of June 30, 2005 were $1.094 billion, an
increase of $71.9 million, versus $1.022 billion as of March 31, 2005. Total
loans as of June 30, 2004 were $930 million.
Lakeland Financial's allowance for loan losses as of June 30, 2005 was
$11.7 million, compared to $11.1 million as of March 31, 2005 and $10.6
million as of June 30, 2004. Non-performing assets totaled $9.2 million as of
June 30, 2005 versus $9.8 million as of March 31, 2005 and $4.7 million on
June 30, 2004. The ratio of non-performing assets to loans was 0.84% on June
30, 2005 compared to 0.96% at March 31, 2005 and 0.51% at June 30, 2004. Net
charge offs totaled $54,000 in the second quarter of 2005 versus $96,000
during the first quarter of 2005 and $80,000 in the second quarter of 2004.
For the three months ended June 30, 2005, Lakeland Financial's average
equity to average assets ratio was 7.27% compared to 7.32% for the first
quarter of 2005 and 7.10% for the second quarter of 2004. Average
stockholders' equity for the quarter ended June 30, 2005 was $106.6 million
versus $103.6 million for the first quarter of 2005 and $93.8 million for the
second quarter of 2004. Average total deposits were $1.130 billion for the
second quarter of 2005 versus $1.110 billion for the first quarter of 2005 and
$1.017 billion for the second quarter of 2004.
Lakeland Financial Corporation is a $1.5 billion bank holding company
headquartered in Warsaw, Indiana. Lake City Bank serves Northern Indiana with
43 branches located in the following Indiana counties: Kosciusko, Elkhart,
Allen, St. Joseph, DeKalb, 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". Market makers in Lakeland Financial Corporation common
shares include Citigroup Global Market Holdings, Inc., FTN Financial
Securities Corp., Hill, Thompson, Magid & Co., Howe Barnes Investments, Inc.,
Keefe, Bruyette & Woods, Inc., Knight Equity Markets, L.P., Lehman Brothers
Inc., Morgan Stanley & Co., Inc., Schwab Capital Markets, Stifel Nicolaus &
Company, Inc., Goldman Sachs & Co., UBS Securities, LLC, and Susquehanna
Capital Group.
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.
LAKELAND FINANCIAL CORPORATION
SECOND QUARTER 2005 FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in thousands except Share and Per Share Data)
Three Months Ended Six Months Ended
--------------------------------------- -------------------------
Jun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30,
2005 2005 2004 2005 2004
----------- ----------- ----------- ----------- -----------
END OF PERIOD BALANCES
Assets $ 1,538,615 $ 1,426,032 $ 1,338,100 $ 1,538,615 $ 1,338,100
Deposits 1,125,872 1,132,546 1,022,335 1,125,872 1,022,335
Loans 1,094,048 1,022,184 929,565 1,094,048 929,565
Allowance for Loan Losses 11,724 11,115 10,643 11,724 10,643
Common Stockholders' Equity 108,456 103,271 92,930 108,456 92,930
AVERAGE BALANCES
Assets
Total Assets $ 1,466,900 $ 1,416,307 $ 1,323,015 $ 1,441,743 $ 1,302,961
Earning Assets 1,354,199 1,305,117 1,212,945 1,329,794 1,194,936
Investments 286,638 285,971 280,159 286,307 281,106
Loans 1,061,289 1,009,607 924,817 1,035,591 904,254
Liabilities and Stockholders' Equity
Total Deposits 1,129,776 1,109,551 1,016,951 1,119,719 992,837
Interest Bearing Deposits 906,288 893,265 808,726 899,812 795,274
Interest Bearing Liabilities 1,127,307 1,086,741 1,013,015 1,107,136 1,004,122
Common Stockholders' Equity 106,600 103,625 93,808 105,121 93,126
INCOME STATEMENT DATA
Net Interest Income $ 12,504 $ 11,851 $ 10,379 $ 24,355 $ 20,714
Net Interest Income-Fully Tax Equivalent 12,804 12,154 10,390 24,955 21,372
Provision for Loan Losses 662 458 246 1,120 498
Noninterest Income 4,218 4,119 4,045 8,337 8,078
Noninterest Expense 9,298 9,363 9,195 18,661 18,103
Net Income 4,404 4,055 3,344 8,459 6,846
PER SHARE DATA
Basic Net Income Per Common Share $ 0.74 $ 0.68 $ 0.57 $ 1.42 $ 1.17
Diluted Net Income Per Common Share 0.72 0.66 0.55 1.38 1.13
Cash Dividends Per Common Share 0.23 0.23 0.21 0.46 0.42
Book Value Per Common Share (equity per share issued) 18.17 17.35 15.82 18.17 15.82
Market Value - High 40.75 41.38 34.49 41.38 38.05
Market Value - Low 35.00 37.11 28.31 35.00 28.31
Basic Weighted Average Common Shares Outstanding 5,953,831 5,936,370 5,859,474 5,945,149 5,851,210
Diluted Weighted Average Common Shares Outstanding 6,129,603 6,132,482 6,048,256 6,130,937 6,050,297
KEY RATIOS
Return on Average Assets 1.20 % 1.16 % 1.02 % 1.18 % 1.06 %
Return on Average Common Stockholders' Equity 16.57 15.87 14.34 16.23 14.78
Efficiency (Noninterest Expense / Net Interest Income
plus Noninterest Income) 55.60 58.63 65.19 57.08 62.88
Average Equity to Average Assets 7.27 7.32 7.10 7.29 7.16
Net Interest Margin 3.78 3.77 3.45 3.78 3.60
Net Charge Offs to Average Loans 0.02 0.04 0.04 0.03 0.02
Loan Loss Reserve to Loans 1.07 1.09 1.14 1.07 1.14
Nonperforming Assets to Loans 0.84 0.96 0.51 0.84 0.51
Tier 1 Leverage 9.19 9.17 9.14 9.19 9.14
Tier 1 Risk-Based Capital 11.02 11.55 11.60 11.02 11.60
Total Capital 11.99 12.54 12.63 11.99 12.63
ASSET QUALITY
Loans Past Due 90 Days or More $ 2,542 $ 2,809 $ 2,855 $ 2,542 $ 2,855
Non-accrual Loans 6,665 6,876 1,575 6,665 1,575
Net Charge Offs 54 96 80 150 89
Other Real Estate Owned 0 91 277 0 277
Other Nonperforming Assets 15 6 30 15 30
Total Nonperforming Assets 9,221 9,782 4,737 9,221 4,737
LAKELAND FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
As of June 30, 2005 and December 31, 2004
(in thousands)
June 30, December 31,
2005 2004
------------ ------------
(Unaudited)
ASSETS
Cash and due from banks $ 87,862 $ 81,144
Short-term investments 5,079 22,714
------------ ------------
Total cash and cash equivalents 92,941 103,858
Securities available-for-sale (carried at fair value) 289,557 286,582
Real estate mortgages held-for-sale 4,269 2,991
Loans:
Total loans 1,094,048 1,003,219
Less: Allowance for loan losses 11,724 10,754
------------ ------------
Net loans 1,082,324 992,465
Land, premises and equipment, net 25,091 25,057
Bank owned life insurance 17,328 16,896
Accrued income receivable 6,403 5,765
Goodwill 4,970 4,970
Other intangible assets 1,140 1,245
Other assets 14,592 13,293
------------ ------------
Total assets $ 1,538,615 $ 1,453,122
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Noninterest bearing deposits $ 232,413 $ 237,261
Interest bearing deposits 893,459 878,138
------------ ------------
Total deposits 1,125,872 1,115,399
Short-term borrowings:
Federal funds purchased 69,500 20,000
Securities sold under agreements
to repurchase 92,589 88,057
U.S. Treasury demand notes 2,077 2,593
Other borrowings 89,900 75,000
------------ ------------
Total short-term borrowings 254,066 185,650
Accrued expenses payable 7,311 7,445
Other liabilities 1,936 1,889
Long-term borrowings 10,046 10,046
Subordinated debentures 30,928 30,928
------------ ------------
Total liabilities 1,430,159 1,351,357
STOCKHOLDERS' EQUITY
Common stock: No par value, 90,000,000 shares authorized,
5,968,204 shares issued and 5,931,568 outstanding as of
March 31 2005, and 5,915,854 shares issued and 5,881,283
outstanding at December 31, 2004 1,453 1,453
Additional paid-in capital 13,754 12,463
Retained earnings 95,586 89,864
Accumulated other comprehensive income/(loss) (1,508) (1,267)
Treasury stock, at cost (829) (748)
------------ ------------
Total stockholders' equity 108,456 101,765
------------ ------------
Total liabilities and stockholders' equity $ 1,538,615 $ 1,453,122
============ ============
LAKELAND FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months and Six Months Ended June 30, 2005 and 2004
(in thousands except for share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ---------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
NET INTEREST INCOME
- ----------------------------
Interest and fees on loans:
Taxable $ 16,154 $ 11,688 $ 30,667 $ 23,131
Tax exempt 40 71 85 139
Interest and dividends on securities:
Taxable 2,364 1,868 4,636 4,047
Tax exempt 587 588 1,174 1,172
Short-term investments 45 21 101 49
------------ ------------ ------------ ------------
Total interest and dividend income 19,190 14,236 36,663 28,538
Interest on deposits 5,082 3,101 9,530 6,132
Interest on short-term borrowings 1,063 352 1,743 698
Interest on long-term borrowings 541 404 1,035 994
------------ ------------ ------------ ------------
Total interest expense 6,686 3,857 12,308 7,824
------------ ------------ ------------ ------------
NET INTEREST INCOME 12,504 10,379 24,355 20,714
- -------------------
Provision for loan losses 662 246 1,120 498
------------ ------------ ------------ ------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 11,842 10,133 23,235 20,216
- ------------------------- ------------ ------------ ------------ ------------
NONINTEREST INCOME
- ------------------
Trust and brokerage fees 791 780 1,519 1,519
Service charges on deposit accounts 1,703 1,697 3,252 3,354
Loan, insurance and service fees 478 470 893 957
Merchant card fee income 629 581 1,165 1,081
Other income 410 544 1,057 874
Net gains on sale of real
estate mortgages held for sale 207 (27) 451 293
------------ ------------ ------------ ------------
Total noninterest income 4,218 4,045 8,337 8,078
NONINTEREST EXPENSE
- -------------------
Salaries and employee benefits 5,027 4,859 10,173 9,784
Net occupancy expense 675 590 1,331 1,168
Equipment costs 491 524 1,008 963
Data processing fees and supplies 571 650 1,129 1,245
Credit card interchange 388 343 716 633
Other expense 2,146 2,229 4,304 4,310
------------ ------------ ------------ ------------
Total noninterest expense 9,298 9,195 18,661 18,103
INCOME BEFORE INCOME TAX EXPENSE 6,762 4,983 12,911 10,191
- --------------------------------
Income tax expense 2,358 1,639 4,452 3,345
------------ ------------ ------------ ------------
NET INCOME $ 4,404 $ 3,344 $ 8,459 $ 6,846
- ---------- ============ ============ ============ ============
BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 5,953,831 5,859,474 5,945,149 5,851,210
BASIC EARNINGS PER COMMON SHARE $ 0.74 $ 0.57 $ 1.42 $ 1.17
- ------------------------------- ============ ============ ============ ============
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 6,129,603 6,048,256 6,130,937 6,050,297
DILUTED EARNINGS PER COMMON SHARE $ 0.72 $ 0.55 $ 1.38 $ 1.13
- --------------------------------- ============ ============ ============ ============