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Get filing alertsLakeland Financial reports record Q2 net income of $28.4M, up 5% YoY, with 7% loan growth
Filed July 27, 2026 · Period ending July 27, 2026 · ~1 min read
Key Changes
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Record Q2 net income of $28.4M (+5% YoY) and diluted EPS of $1.13 (+9% YoY), driven by 7% revenue growth to $70.9M and net interest margin expansion of 7 basis points to 3.49%.
Exhibit 99.1 view on EDGAR → -
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Total loans grew 7% YoY to $5.58B, led by commercial and industrial loans (+10%, $150.6M) and consumer 1-4 family mortgages (+16%, $82.7M).
Exhibit 99.1 view on EDGAR → -
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Funding costs fell 25 basis points YoY as deposit beta of 43% exceeded loan beta of 30% during the rate-easing cycle that began September 2024, driving margin expansion.
Exhibit 99.1 view on EDGAR → -
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Nonperforming assets declined 36% YoY to $20.0M (0.28% of total assets vs. 0.45% prior year); annualized net charge-offs were 0.00% in Q2 2026 vs. 2.22% in Q2 2025.
Exhibit 99.1 view on EDGAR → -
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Board raised quarterly dividend 4% to $0.52 per share (payable August 5, 2026) and repurchased 70,873 shares for $4.1M at a weighted average price of $58.20.
Exhibit 99.1 view on EDGAR →
Summary
Lakeland Financial delivered record second-quarter results with net income of $28.4 million (up 5% year-over-year) and diluted earnings per share of $1.13 (up 9%). The performance was driven by 7% revenue growth to $70.9 million and a 7-basis-point expansion in net interest margin to 3.49%, as the company's deposit beta of 43% outpaced its loan beta of 30% during the Federal Reserve's rate-easing cycle that began in September 2024. This favorable deposit repricing dynamic reduced funding costs by 25 basis points year-over-year, supporting profitability even as the rate environment shifted.
The balance sheet expanded with total loans growing 7% to $5.58 billion, led by commercial and industrial loans (+10%) and consumer 1-4 family mortgages (+16%). Asset quality improved materially, with nonperforming assets down 36% to $20.0 million (0.28% of total assets) and net charge-offs at 0.00% for the quarter, compared to 2.22% in the prior-year period when a previously disclosed credit was partially charged off. The board raised the quarterly dividend 4% to $0.52 per share and deployed $4.1 million to repurchase shares at an average price of $58.20, reflecting confidence in the company's capital position and earnings trajectory.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported record second quarter net income of $28.4 million for the three months ended June 30, 2026, which represents an increase of $1.5 million, or 5%, compared to net income of $27.0 million for the three months ended June 30, 2025. Diluted earnings per share of $1.13 for the second quarter of 2026 also represents a record second quarter performance and increased $0.09, or 9%, compared to $1.04 for the second quarter of 2025.
The company reported record second quarter net income of $28.4 million, up 5% year-over-year from $27.0 million, and diluted earnings per share of $1.13, up 9% from $1.04. On a linked quarter basis, net income increased 7% from $26.5 million and diluted EPS rose 9% from $1.04.
Added in current filing · view on EDGAR →
Total revenue was $70.9 million for the second quarter of 2026 representing an increase of $4.5 million, or 7%, as compared to $66.4 million for the second quarter of 2025. ... Total loans, net of deferred loan fees, increased by $352.8 million, or 7%, from $5.23 billion as of June 30, 2025, to $5.58 billion as of June 30, 2026. The growth in loans was driven by increases in both the commercial and consumer segments of the portfolio, with increases to the commercial and industrial loans of $150.6 million, or 10%, consumer 1-4 family mortgage loans of $82.7 million, or 16%, commercial real estate and multi-family residential loans of $80.2 million, or 3%, other commercial loans of $25.6 million, or 27%, and other consumer loans of $14.1 million, or 14%.
Total revenue increased 7% year-over-year to $70.9 million from $66.4 million. Total loans grew 7% to $5.58 billion from $5.23 billion, driven by commercial and industrial loan growth of 10% ($150.6 million), consumer 1-4 family mortgage growth of 16% ($82.7 million), and commercial real estate growth of 3% ($80.2 million).
Added in current filing · view on EDGAR →
Net interest margin was 3.49% for the second quarter of 2026, representing a 7 basis point increase from 3.42% for the second quarter of 2025. This improvement was driven by a reduction in the company's funding costs, with interest expense as a percentage of average earning assets falling by 25 basis points from 2.41% for the second quarter of 2025 to 2.16% for the second quarter of 2026. ... The cumulative loan beta for the rate-easing cycle that began in September 2024 is 30% compared to the deposit beta of 43% during this period and has resulted in net interest margin expansion that has benefited net interest income.
Net interest margin improved 7 basis points year-over-year to 3.49% from 3.42%, driven by a 25 basis point reduction in funding costs (interest expense as a percentage of average earning assets fell from 2.41% to 2.16%). The company's deposit beta of 43% exceeded its loan beta of 30% during the rate-easing cycle that began in September 2024, contributing to margin expansion.
Added in current filing · view on EDGAR → · paraphrased
Nonperforming assets decreased by $11.1 million, or 36%, to $20.0 million as of June 30, 2026, versus $31.1 million as of June 30, 2025. ... The ratio of nonperforming assets to total assets at June 30, 2026, decreased to 0.28% from 0.45% at June 30, 2025, and 0.30% when compared to March 31, 2026. ... Net charge offs during the second quarter of 2025 were driven by the partial charge off of a previously disclosed nonperforming credit. Annualized net charge offs to average loans were 0.00% for the second quarter of 2026, compared to 2.22% for the second quarter of 2025 and 0.16% for the linked first quarter of 2026.
Nonperforming assets declined 36% year-over-year to $20.0 million from $31.1 million, with the ratio of nonperforming assets to total assets improving to 0.28% from 0.45%. Annualized net charge-offs to average loans were 0.00% for Q2 2026, compared to 2.22% in Q2 2025 (which included a partial charge-off of a previously disclosed nonperforming credit) and 0.16% in Q1 2026.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 28, 2026 · How we verify