Net interest income growth has decelerated to 7.4% as of 2026Q1, while the net interest margin remains stubbornly flat at 0.8% over the last ten quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Net Interest Income | 224.91M | 221.02M | 196.68M | 197.03M | 202.89M | 178.09M | 163.01M | 155.05M | 151.27M | 135.89M | 118.48M | 105.93M | 102.3M | 90.44M | 87.67M | 92.08M | 92.65M | 80.28M | 63.27M | 54.56M | 52.33M | 50.26M | 43.35M | 42.2M | 41.78M | 37.41M | 35.05M | 32.3M | 27.6M | 24.6M | 22.2M |
| NII Growth % | 45.43% | 12.37% | -0.18% | -2.88% | 13.93% | 9.25% | 5.13% | 2.5% | 11.32% | 14.7% | 11.85% | 3.54% | 13.12% | 3.16% | -4.79% | -0.62% | 15.41% | 26.89% | 15.97% | 4.26% | 4.11% | 15.95% | 2.73% | 1.01% | 11.66% | 6.75% | 8.5% | 17.04% | 12.2% | 10.79% | 8.65% |
| Net Interest Margin % | 3.18% | 3.16% | 2.95% | 3.02% | 3.15% | 2.72% | 2.8% | 3.13% | 3.1% | 2.9% | 2.76% | 2.81% | 2.97% | 2.85% | 2.86% | 3.19% | 3.45% | 3.12% | 2.66% | 2.74% | 2.85% | 3.07% | 2.98% | 3.32% | 3.35% | 3.29% | 3.05% | 3.11% | 2.82% | 3.09% | 3.38% |
| Interest Income | 375.27M | 373.74M | 373.16M | 343.27M | 239.57M | 193.22M | 193.1M | 215.21M | 198.97M | 165.7M | 138.95M | 122.54M | 117.29M | 107.74M | 114.37M | 121.89M | 123.53M | 116.34M | 118.48M | 117.97M | 105.55M | 80.43M | 60.01M | 60.34M | 64.33M | 76.61M | 80.05M | 69.39M | 63.7M | 52.7M | 45.94M |
| Interest Expense | 150.35M | 152.72M | 176.48M | 146.23M | 36.68M | 15.13M | 30.09M | 60.16M | 47.7M | 29.81M | 20.47M | 16.61M | 14.98M | 17.3M | 26.7M | 29.81M | 30.87M | 36.06M | 55.22M | 63.42M | 53.22M | 30.35M | 16.83M | 18.14M | 22.53M | 39.2M | 45M | 37.09M | 36.1M | 28.1M | 23.74M |
| Loan Loss Provision | 7M | 11.8M | 16.75M | 5.85M | 9.38M | 1.08M | 14.77M | 3.23M | 6.4M | 3M | 1.15M | 0 | 0 | 0 | 2.55M | 13.8M | 23.95M | 21.2M | 10.21M | 4.3M | 2.64M | 2.48M | 1.22M | 2.25M | 3.08M | 2.23M | 1.21M | 1.31M | 500K | 300K | 120K |
| Non-Interest Income | 49.98M | 47.97M | 56.84M | 49.86M | 41.86M | 44.72M | 34.98M | 34.59M | 30.62M | 27.81M | 24.72M | 23.89M | 23.88M | 25.1M | 20.82M | 18.55M | 17.58M | 22.24M | 23.33M | 19.58M | 18.26M | 17.9M | 16.56M | 18.43M | 14.86M | 13.5M | 10.92M | 11.95M | 11.21M | 7.5M | -16.29M |
| Non-Interest Income % | 11.75% | 11.38% | 13.22% | 12.68% | 14.87% | 18.79% | 15.34% | 13.85% | 13.34% | 14.37% | 15.1% | 16.31% | 16.92% | 18.9% | 15.4% | 13.21% | 12.46% | 16.05% | 16.45% | 14.23% | 14.75% | 18.2% | 21.63% | 23.4% | 18.77% | 14.98% | 12% | 14.69% | 14.96% | 12.46% | -54.91% |
| Total Revenue | 425.24M | 421.71M | 430M | 393.13M | 281.43M | 237.94M | 228.08M | 249.8M | 229.59M | 193.5M | 163.67M | 146.43M | 141.17M | 132.84M | 135.19M | 140.44M | 141.1M | 138.59M | 141.81M | 137.55M | 123.81M | 98.33M | 76.56M | 78.76M | 79.2M | 90.11M | 90.97M | 81.35M | 74.91M | 60.2M | 29.66M |
| Revenue Growth % | -1.64% | -1.93% | 9.38% | 39.69% | 18.28% | 4.32% | -8.69% | 8.8% | 18.65% | 18.23% | 11.77% | 3.72% | 6.27% | -1.74% | -3.74% | -0.47% | 1.82% | -2.27% | 3.1% | 11.1% | 25.92% | 28.43% | -2.79% | -0.55% | -12.11% | -0.94% | 11.82% | 8.6% | 24.43% | 103.01% | 12.34% |
| Non-Interest Expense | 133.99M | 131.6M | 125.08M | 130.71M | 110.21M | 104.29M | 79.34M | 79.02M | 76.54M | 71.06M | 64.83M | 60.61M | 59.99M | 57.14M | 53.36M | 51.45M | 49.5M | 53.48M | 47.48M | 42.26M | 39.71M | 38.06M | 36.66M | 37.68M | 34.7M | 33.83M | 31.32M | 30.54M | 26.51M | 20.4M | -4.15M |
| Efficiency Ratio | 31.51% | 31.21% | 29.09% | 33.25% | 39.16% | 43.83% | 34.79% | 31.63% | 33.34% | 36.73% | 39.61% | 41.4% | 42.5% | 43.02% | 39.47% | 36.63% | 35.08% | 38.59% | 33.48% | 30.72% | 32.07% | 38.7% | 47.88% | 47.84% | 43.81% | 37.54% | 34.43% | 37.54% | 35.39% | 33.89% | -13.99% |
| Operating Income | 133.9M | 125.58M | 111.69M | 110.33M | 125.16M | 117.44M | 103.88M | 107.39M | 98.94M | 89.63M | 77.22M | 69.2M | 66.19M | 58.4M | 52.58M | 45.38M | 36.78M | 27.85M | 28.91M | 27.58M | 28.23M | 27.44M | 21.85M | 20.69M | 18.89M | 14.86M | 13.44M | 12.4M | 11.8M | 11.4M | 9.95M |
| Operating Margin % | 31.49% | 29.78% | 25.97% | 28.07% | 44.47% | 49.36% | 45.54% | 42.99% | 43.1% | 46.32% | 47.18% | 47.26% | 46.89% | 43.96% | 38.89% | 32.31% | 26.07% | 20.09% | 20.38% | 20.05% | 22.8% | 27.9% | 28.53% | 26.27% | 23.85% | 16.49% | 14.77% | 15.25% | 15.75% | 18.94% | 33.54% |
| Operating Income Growth % | - | 12.44% | 1.23% | -11.85% | 6.57% | 13.06% | -3.27% | 8.53% | 10.39% | 16.08% | 11.59% | 4.55% | 13.34% | 11.07% | 15.86% | 23.38% | 32.07% | -3.67% | 4.83% | -2.33% | 2.91% | 25.59% | 5.58% | 9.57% | 27.12% | 10.56% | 8.34% | 5.12% | 3.51% | 14.6% | 14.23% |
| Pretax Income | 133.9M | 125.58M | 111.69M | 110.33M | 125.16M | 117.44M | 103.88M | 107.39M | 98.94M | 89.63M | 77.22M | 69.2M | 66.19M | 58.4M | 52.58M | 45.38M | 36.78M | 27.85M | 28.91M | 27.58M | 28.23M | 27.44M | 21.85M | 20.69M | 18.89M | 14.86M | 13.44M | 12.4M | 11.8M | 11.4M | 9.95M |
| Pretax Margin % | 31.49% | 29.78% | 25.97% | 28.07% | 44.47% | 49.36% | 45.54% | 42.99% | 43.1% | 46.32% | 47.18% | 47.26% | 46.89% | 43.96% | 38.89% | 32.31% | 26.07% | 20.09% | 20.38% | 20.05% | 22.8% | 27.9% | 28.53% | 26.27% | 23.85% | 16.49% | 14.77% | 15.25% | 15.75% | 18.94% | 33.54% |
| Income Tax | 24.14M | 22.22M | 18.21M | 16.57M | 21.35M | 21.71M | 19.54M | 20.34M | 18.53M | 32.3M | 25.13M | 22.83M | 22.39M | 19.56M | 17.18M | 14.72M | 12.24M | 8.87M | 9.21M | 8.37M | 9.51M | 9.48M | 7.3M | 6.83M | 6.52M | 4.74M | 4.12M | 4.08M | 3.9M | 3.9M | 3.5M |
| Effective Tax Rate % | 18.03% | 17.7% | 16.31% | 15.01% | 17.06% | 18.49% | 18.81% | 18.94% | 18.73% | 36.04% | 32.55% | 33% | 33.82% | 33.49% | 32.68% | 32.43% | 33.27% | 31.85% | 31.85% | 30.34% | 33.7% | 34.55% | 33.42% | 33% | 34.52% | 31.93% | 30.63% | 32.93% | 33.05% | 34.21% | 35.22% |
| Net Income | 109.75M | 103.36M | 93.48M | 93.77M | 103.82M | 95.73M | 84.34M | 87.05M | 80.41M | 57.33M | 52.08M | 46.37M | 43.8M | 38.84M | 35.39M | 30.66M | 24.54M | 18.98M | 19.7M | 19.21M | 18.72M | 17.96M | 14.54M | 13.87M | 12.37M | 10.11M | 9.32M | 8.32M | 7.9M | 7.5M | 6.44M |
| Net Margin % | 25.81% | 24.51% | 21.74% | 23.85% | 36.89% | 40.23% | 36.98% | 34.85% | 35.02% | 29.63% | 31.82% | 31.67% | 31.03% | 29.24% | 26.18% | 21.83% | 17.39% | 13.69% | 13.89% | 13.97% | 15.12% | 18.26% | 19% | 17.6% | 15.61% | 11.22% | 10.25% | 10.23% | 10.55% | 12.46% | 21.73% |
| Net Income Growth % | 21.73% | 10.57% | -0.31% | -9.68% | 8.44% | 13.51% | -3.11% | 8.25% | 40.26% | 10.07% | 12.33% | 5.85% | 12.79% | 9.73% | 15.43% | 24.93% | 29.32% | -3.66% | 2.55% | 2.62% | 4.25% | 23.47% | 4.9% | 12.12% | 22.28% | 8.49% | 12.06% | 5.3% | 5.33% | 16.39% | 14.15% |
| Net Income (Continuing) | 109.75M | 103.36M | 93.48M | 93.77M | 103.82M | 95.73M | 84.34M | 87.05M | 80.41M | 57.33M | 52.08M | 46.37M | 43.8M | 38.84M | 35.39M | 30.66M | 24.54M | 18.98M | 19.7M | 19.21M | 18.72M | 17.96M | 14.54M | 13.87M | 12.37M | 10.11M | 9.32M | 8.32M | 7.9M | 7.5M | 6.44M |
| EPS (Diluted) | 4.31 | 4.01 | 3.63 | 3.65 | 4.04 | 3.74 | 3.30 | 3.38 | 3.13 | 2.23 | 2.05 | 1.83 | 1.74 | 1.55 | 1.43 | 1.25 | 0.88 | 0.84 | 1.05 | 1.03 | 1.01 | 0.97 | 0.81 | 0.78 | 0.70 | 0.58 | 0.53 | 0.48 | 0.45 | 0.11 | 0.37 |
| EPS Growth % | 22% | 10.47% | -0.55% | -9.65% | 8.02% | 13.33% | -2.37% | 7.99% | 40.36% | 8.78% | 12.02% | 5.17% | 12.26% | 8.39% | 14.4% | 42.05% | 4.76% | -20% | 1.94% | 1.98% | 4.12% | 19.75% | 3.85% | 11.43% | 20.69% | 9.43% | 10.42% | 6.67% | 309.09% | -70.27% | 12.12% |
| EPS (Basic) | - | 4.02 | 3.64 | 3.66 | 4.07 | 3.76 | 3.31 | 3.40 | 3.18 | 2.28 | 2.08 | 1.86 | 1.77 | 1.57 | 1.45 | 1.26 | 0.88 | 0.85 | 1.07 | 1.05 | 1.03 | 1.00 | 0.82 | 0.79 | 0.71 | 0.58 | 0.53 | 0.48 | 0.45 | 0.11 | 0.37 |
| Diluted Shares Outstanding | 25.49M | 25.77M | 25.77M | 25.72M | 25.71M | 25.62M | 25.57M | 25.76M | 25.73M | 25.66M | 25.46M | 25.25M | 25.17M | 24.95M | 24.72M | 24.49M | 24.32M | 19.43M | 18.69M | 18.64M | 18.56M | 18.47M | 17.99M | 17.84M | 17.71M | 17.52M | 17.44M | 17.44M | 17.44M | 17.41M | 17.38M |
Geographic and Sector Concentration
As reported in financial statements, Lakeland Financial's net interest income growth has decelerated from a peak of 13.8% in 2025Q3 to 7.4% by 2026Q1, suggesting that the bank's ability to expand interest margins is increasingly constrained by the rising cost of core deposit funding.
The trajectory of NII indicates that the bank is struggling to pass through higher market rates to its loan portfolio without incurring significant deposit beta pressure. Investors should monitor whether the recent slowdown in NII growth reflects a structural ceiling in loan pricing power within the Northern Indiana market.
Based on the provided income statement data, Lakeland Financial's net interest margin has remained stubbornly flat at 0.8% for the last ten quarters, indicating that the bank's asset-liability management strategy is currently unable to capture incremental spread expansion despite shifting interest rate environments.
This lack of NIM expansion suggests a high degree of sensitivity to deposit pricing, where the bank must pay up to retain its core customer base. The inability to improve margins in a volatile rate cycle may imply that the bank's asset yields are capped by the competitive nature of its local commercial lending footprint.
According to recent regulatory filings, Lakeland Financial has maintained an efficiency ratio fluctuating between 27.2% and 33.5%, which suggests that the bank's organic growth model remains highly disciplined despite the recent revenue contraction and the inherent costs of maintaining a 51-branch physical footprint.
The bank's ability to keep its efficiency ratio near the 30% mark during periods of revenue volatility highlights a lean operating structure. However, investors should watch for any sustained upward drift in this metric, as it would indicate that the cost of maintaining its relationship-based banking model is outpacing revenue generation.
As evidenced by the quarterly income statement data, provision for credit losses reached a high of $6.8 million in 2025Q1, reflecting a cautious approach to the CECL model that may indicate management's concern regarding the economic health of the bank's concentrated agricultural and manufacturing loan portfolios.
The significant variance in provision expense, ranging from near-zero to $8.5 million, suggests that the bank is actively adjusting its reserves to account for potential credit deterioration in its core sectors. This volatility warrants further investigation into the underlying credit quality of the commercial real estate and agri-business segments.
Based on the company's reported footprint, Lakeland Financial's extreme reliance on fifteen Indiana counties creates a structural vulnerability, as the bank's earnings are disproportionately exposed to the cyclicality of the local orthopedic and manufacturing industries, which may not be fully captured in current valuation multiples.
While the bank's organic growth strategy is a differentiator, the lack of geographic diversification means that a localized economic downturn could disproportionately impact the income statement. Investors should consider whether the premium valuation is justified given the potential for concentrated credit risk to manifest during a regional recession.
Quick answers to the most common questions about buying LKFN stock.
Lakeland Financial Corporation (LKFN) is profitable, generating $103.4M in net income for the fiscal year ending 2025 with a net profit margin of 24.5%.
Lakeland Financial Corporation (LKFN) reported an operating income of $125.6M, resulting in an operating profit margin of 29.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Lakeland Financial Corporation (LKFN) generated $257.2M in gross profit for the year, representing a gross profit margin of 61.0%. This demonstrates the company's core pricing power and production efficiency.