GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Lakeland Financial Corp. Reports Operating Results (10-Q)

May 08, 2009 | About:

Lakeland Financial Corp. (LKFN) filed Quarterly Report for the period ended 2009-03-31.

LAKELAND FINANCIAL CORP. is a bank holding company engaged in general banking business. Lakeland Financial Corp. has a market cap of $234.1 million; its shares were traded at around $18.86 with a P/E ratio of 13 and P/S ratio of 1.7. The dividend yield of Lakeland Financial Corp. stocks is 3.3%. Lakeland Financial Corp. had an annual average earning growth of 10.3% over the past 5 years.

Highlight of Business Operations:

Lakeland Financial Corporation is the holding company for Lake City Bank. The Company is headquartered in Warsaw, Indiana and operates 43 offices in 12 counties in northern Indiana. The Company earned $3.9 million for the first three months of 2009, versus $5.2 million in the same period of 2008, a decrease of 26.2%. Net income was positively impacted by a $2.5 million increase in net interest income. Offsetting this positive impact was an increase of $3.4 million in the provision for loan losses, an increase of $1.3 million in noninterest expense and a decrease of $199,000 in noninterest income. Basic earnings per common share for the first three months of 2009 were $0.29 per share, versus $0.43 per share for the first three months of 2008. Diluted earnings per common share reflect the potential dilutive impact of stock options granted under the stock option plan. Diluted earnings per common share for the first three months of 2009 were $0.29 per share, versus $0.42 for the first three months of 2008.

During the first three months of 2009, loan interest income decreased by $2.6 million, or 10.4%, to $22.9 million, versus $25.5 million during the first three months of 2008. The decrease was driven by a 153 basis point decrease in the tax equivalent yield on loans to 5.0%, versus 6.6% in the first three months of 2008, somewhat offset by a $280.0 million, or 17.9%, increase in average daily loan balances.

The average daily securities balances for the first three months of 2009 increased $55.5 million, or 16.6%, to $389.2 million, versus $333.7 million for the same period of 2008. During the same periods, income from securities increased by $1.1 million, or 26.8%, to $5.1 million versus $4.0 million during the first three months of 2008. The increase was primarily the result of the increase in average daily securities balances, as well as a 44 basis point increase in the tax equivalent yield on securities, to 5.6%, versus 5.1% in the first three months of 2008.

On an average daily basis, total deposits (including demand deposits) increased $393.9 million, or 26.0%, to $1.909 billion for the three-month period ended March 31, 2009, versus $1.515 billion during the same period in 2008. On an average daily basis, noninterest bearing demand deposits were $217.7 million for the three-month period ended March 31, 2009, versus $217.8 million for the same period in 2008. On an average daily basis, interest bearing transaction accounts increased $119.6 million, or 28.1%, to $546.0 million for the three-month period ended March 31, 2009, versus the same period in 2008. When comparing the three months ended March 31, 2009 with the same period of 2008, the average daily balance of time deposits, which pay a higher rate of interest compared to demand deposit and transaction accounts, increased $277.2 million, primarily as a result of increases in brokered time deposits. The rate paid on time deposit accounts decreased 148 basis points to 3.1% for the three-month period ended March 31, 2009, versus the same period in 2008.

Due to strong loan growth and additional relationship opportunities, the Company continued to focus on public fund deposits as a core funding strategy. In addition, the Company has increased its usage of brokered certificates of deposits as a result of loan growth and overall liquidity and funding management. On an average daily basis, total brokered certificates of deposit increased $184.9 million to $229.2 million for the three-month period ended March 31, 2009, versus $44.3 million for the same period in 2008. On an average daily basis, total public fund certificates of deposit decreased $73.2 million to $219.3 million for the three-month period ended March 31, 2009, versus $292.5 million for the same period in 2008. Public fund deposits are highly variable primarily due to the timing differences between when real estate property taxes are collected versus when those tax revenues are spent, as well as the intense competition for these funds.

Average daily balances of borrowings were $284.1 million during the three months ended March 31, 2009, versus $345.7 million during the same period of 2008, and the rate paid on borrowings decreased 187 basis points to 1.7%. The decrease in average borrowings was driven by decreases of $37.5 million in federal funds purchased and $30.3 million in securities sold under agreements to repurchase. On an average daily basis, total deposits (including demand deposits) and purchased funds increased 17.9%, when comparing the three-month period ended March 31, 2009 versus the same period in 2008.

Read the The complete Report

Rating: 2.0/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide