ratio of nonperforming assets to loans was 1.09% on June 30, 2007 compared to 1.01% at March 31, 2007 and 0.52% at June 30, 2006. The increase in nonperforming assets for the second quarter of 2007 resulted primarily from the addition of a single borrowing relationship. The long-time borrower is engaged in mobile home financing and rental activities in Northern Indiana. Borrower collateral, including receivables, real estate and certain mobile home units support this credit. There can be no assurances that full repayment of the loans will result. Net charge offs totaled $313,000 in the second quarter of 2007, versus $346,000 during the first quarter of 2007, and $81,000 during the second quarter of 2006. The majority of the charge off activity in the quarter resulted from charge offs related to the nonperforming borrower discussed above.

Kubacki concluded, “The community banking environment in the Midwest has been particularly challenging over the past several years, driven by net interest margin compression and negative trends in asset quality. With respect to net interest margin, we are pleased with the recent stabilization in our margin. On the asset quality front, recent increases in our nonperforming loan totals are concerning, but are being aggressively managed. While our nonperforming levels have increased, our charge off levels were consistent with our recent history. As always, we continue to diligently manage our credit exposure.”

For the three months ended June 30, 2007, Lakeland Financial’s average equity to average assets ratio was 7.56% compared to 7.45% for the first quarter of 2007 and 7.07% for the second quarter of 2006. Average stockholders' equity for the quarter ended June 30, 2007 was $136.3 million versus $131.9 million for the first quarter of 2007 and $119.4 million for the second quarter of 2006. Average total deposits were $1.45 billion for the second and first quarters of 2007, versus $1.38 billion for the second quarter of 2006.

Lakeland Financial Corporation is a $1.8 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. The Company also has a Loan Production Office in Indianapolis, Indiana.

In addition to the results presented in accordance with generally accepted accounting principles in the United States of America, this press release contains certain non-GAAP financial measures. Lakeland Financial believes that providing non-GAAP financial measures provides investors with information useful to understanding Lakeland Financial’s financial performance. Additionally, these non-GAAP measures are used by management for planning and forecasting purposes, including measures based on “tangible equity” which is “common stockholders’ equity” excluding intangible assets, net of deferred tax. A reconciliation of these non-GAAP measures to the most comparable GAAP equivalent is included in the attached financial tables where the non-GAAP measure is presented.

Lakeland Financial Corporation may be accessed on its home page at www.lakecitybank.com. The Company’s common stock is traded on the Nasdaq Global Select Market under “LKFN”. Market makers in Lakeland Financial Corporation common shares include Automated Trading Desk Financial Services, LLC, B-Trade Services, LLC, Citadel Derivatives Group, LLC, Citigroup Global Markets Holdings, Inc., Domestic Securities, Inc., E*TRADE Capital Markets LLC, FTN Financial Securities Corp., FTN Midwest Securities Corp., Goldman Sachs & Company, Howe Barnes Hoefer & Arnett, Inc., Keefe, Bruyette & Woods, Inc., Knight Equity Markets, L.P., Lehman Brothers Inc., Morgan Stanley & Co., Inc., Stifel Nicolaus & Company, Inc., Susquehanna Capital Group and UBS Securities LLC.

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. Additional information concerning the Company and its business, including factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on form 10-K.

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