Lakeland Financial Q2 net income jumps 20%

Overview

• Lakeland Financial Q2 net income rises 20% yr/yr to $27 mln

• Diluted EPS for Q2 increases 20% to $1.04

• Net interest income grows 14%, driven by improved net interest margin

Outlook

• Company highlights strong capital position supporting future growth

• Company notes there appears to be less concern on the impact of tariffs that it heard from borrowing clients previously

Result Drivers

• NET INTEREST INCOME - Driven by a 25 basis point improvement in net interest margin to 3.42%, contributing to a 14% increase in net interest income

• LOAN AND DEPOSIT GROWTH - Average loans grew by 4% and core deposits increased by 8%, supporting overall financial performance

• ASSET QUALITY IMPROVEMENT - Nonaccrual loans declined by 46%, and provision expenses decreased significantly, enhancing asset quality

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Lakeland Financial Corp is $65.00, about 1.1% above its July 24 closing price of $64.26

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX6KJZMB