Executive Summary

Q4 2024 diluted EPS was $0.94, down 19% year-over-year but up 3% sequentially; net income was $24.2M (+4% q/q, -18% y/y). Net interest margin expanded 9bps q/q to 3.25% as deposit costs fell faster than loan yields .
Revenue was $63.6M, down 3% y/y on lapping 2023 insurance recoveries, but up 4% q/q; net interest income rose 6% y/y and 5% q/q to $51.7M .
Asset quality mixed: allowance rose to 1.68% of loans; watch list loans improved to 4.13% of loans from 5.27% in Q3, but NCOs rose to $1.36M; provision was $3.7M vs. $0.3M y/y and $3.1M in Q3 .
Deposits grew 3% y/y to $5.90B with core deposits at 99% of total; the Board raised the quarterly dividend 4% to $0.50, effective Q1 2025, underscoring capital strength (Total Capital 15.90%) .
Management emphasized balanced loan/deposit growth and NIM resilience: “thoughtful and strategic balance sheet management” drove NIM expansion; focus remains on core deposit growth and credit portfolio vigilance .

What Went Well and What Went Wrong

What Went Well

Net interest margin expanded 9bps q/q to 3.25% as funding costs declined 32bps versus a 23bps decline in earning asset yields; CFO: “NIM expansion resulted from reduced deposit costs that outpaced loan repricing due to falling short term rates” .
Core deposits rose $274.3M y/y to $5.86B, now 99% of total deposits; CEO: “We continue to successfully fund the loan growth with in-market stable and diversified deposit growth” .
Watch list loans improved q/q to 4.13% of loans (down from 5.27%) driven by six removals ($63.7M), including $45.5M upgrades; management “encouraged” by semi-annual portfolio review outcomes .

What Went Wrong

EPS and net income declined y/y (EPS $0.94 vs. $1.16; net income $24.2M vs. $29.6M) driven by a higher provision ($3.7M vs. $0.3M) and noninterest income normalizing after prior-year insurance recoveries .
Nonperforming assets remained elevated at $56.9M (0.85% of assets) due to a downgraded $43.3M industrial credit; allowance coverage increased to 1.68% of loans .
Tangible book value per share contracted sequentially ($26.47 vs. $27.07) as unrealized AFS losses widened ($191.1M vs. $154.5M in Q3), highlighting OCI sensitivity to rates .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Diluted EPS ($)	1.16	0.91	0.94
Net Income ($M)	29.6	23.3	24.2
Net Interest Income ($M)	48.6	49.3	51.7
Noninterest Income ($M)	17.2	11.9	11.9
Provision for Credit Losses ($M)	0.3	3.1	3.7
Efficiency Ratio (%)	44.74	49.67	48.22
Net Interest Margin (%)	3.23	3.16	3.25
ROA (%)	1.80	1.39	1.42
ROE (%)	20.52	13.85	13.87
Revenue ($M)	48.6 + 17.2 = 65.8	49.3 + 11.9 = 61.2	63.6

Segment/Composition

Deposits ($M)	Q4 2023	Q3 2024	Q4 2024
Retail	1,794.96	1,709.90	1,780.73
Commercial	2,227.15	2,304.04	2,269.05
Public Funds	1,563.02	1,726.87	1,809.63
Core Deposits	5,585.12	5,740.81	5,859.41
Brokered	135.41	96.50	41.56
Total	5,720.53	5,837.31	5,900.97

KPIs

KPI	Q4 2023	Q3 2024	Q4 2024
Loans EOP ($M)	4,916.53	5,081.99	5,117.95
Allowance / Loans (%)	1.46	1.65	1.68
Nonperforming Assets ($M)	16.11	58.05	56.89
NPA / Assets (%)	0.25	0.87	0.85
Net Charge-offs ($M)	0.433	0.143	1.358
Watch List Loans / Total Loans (%)	3.72	5.27	4.13
Total Capital Ratio (%)	15.47	15.75	15.90
Tangible Book Value per Share ($)	25.22	27.07	26.47

Non-GAAP

Metric	Q4 2023	Q3 2024	Q4 2024
Pretax, Pre-Provision Earnings ($M)	36.36	30.80	32.92
Core Operational Diluted EPS ($)	0.98	0.91	0.94
Adjusted Core Efficiency Ratio (%)	48.72	49.66	48.22

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend per Share ($)	Q1 2025	0.48 (2024 quarterly rate)	0.50	Raised
Investment Securities Cash Flows ($M)	FY 2025	N/A	~104.2 expected principal & interest cash flows	Informational
Core Funding Mix (%)	Ongoing	~98% core deposits (Q3 2024)	99% core deposits (Q4 2024)	Improved

Note: The company did not provide formal ranges for revenue, margins, OpEx, OI&E, or tax rate in Q4 2024 materials .

Earnings Call Themes & Trends

Earnings call transcript was not available in our document set; themes below are drawn from company press releases across quarters.

Topic	Q2 2024 (Prior-2)	Q3 2024 (Prior-1)	Q4 2024 (Current)	Trend
Net Interest Margin	NIM 3.17%; asset sensitivity reduced; expected Fed easing in H2 2024	NIM 3.16%; stabilized; modest benefit from first Fed cut	NIM 3.25%; 9bps q/q expansion on lower deposit costs	Improving sequentially
Deposit Mix/Core Growth	Core deposits 97% of total; +$170M q/q; public funds +12% q/q	Core deposits 98% of total; +$138M q/q; brokered down 40%	Core deposits 99% of total; +$119M q/q; brokered down 57%	Mix improving; wholesale funding reduced
Asset Quality	Allowance 1.60%; NPA rose on $43.3M industrial downgrade	Allowance 1.65%; additional specific reserves; NPA 0.87%	Allowance 1.68%; NPA 0.85%; watch list ratio improved to 4.13%	Elevated but stabilizing watch list
Noninterest Income Drivers	$9.0M Visa gain; core noninterest income −1% y/y	Visa residual redeemed (−$15k); core noninterest +4% q/q	Core noninterest +9% y/y; 2023 insurance recoveries lapped	Core fee momentum intact
Capital & Dividends	Total capital 15.54%; tangible capital 9.91%; dividend $0.48	Total capital 15.75%; tangible capital 10.47%; dividend $0.48	Total capital 15.90%; tangible capital 10.19%; dividend to $0.50	Capital strong; dividend rising
Liquidity	Access ~$3.3B; reduced utilization	Access ~$3.7B; utilization $96.5M	Access ~$3.7B; utilization $41.6M	Robust; utilization declining
Technology Investments	Higher data processing fees; tech/digital investments cited	Continued investment in customer-facing/operational tech	Data processing +8% y/y; ongoing tech investment	Ongoing opex in tech

Management Commentary

CEO (David M. Findlay): “2024 continued a long and consistent trend of organic growth in our balance sheet. We successfully expanded both our loan and deposit franchises during the year” .
CFO (Lisa M. O’Neill): “Our thoughtful and strategic balance sheet management strategies led to healthy net interest margin expansion of 9 basis points during the fourth quarter… reduced deposit costs outpaced loan repricing due to falling short term rates” .
President (Kristin L. Pruitt): “The continued growth in our capital base supports the increase in our dividend rate… The compounded annual growth rate for our dividend is 15% since 2012” .
CEO: On deposits—“Core deposit growth was steady throughout 2024… We continue to successfully fund the loan growth with in-market stable and diversified deposit growth” .
CEO: On credit—“We are encouraged by the $56 million decrease in watch list credits during the quarter… we continue to actively manage our loan portfolio challenges” .

Q&A Highlights

Earnings call transcript for Q4 2024 was not available in our document catalog; therefore, Q&A themes and any guidance clarifications cannot be summarized. We rely on management’s press release commentary above .

Estimates Context

S&P Global consensus estimates for Q4 2024 EPS and revenue were unavailable due to provider request limits; we cannot determine beat/miss versus Wall Street expectations at this time. Values would be retrieved from S&P Global, but access was not available during this session.*

Key Takeaways for Investors

Sequential margin inflection: NIM expanded 9bps q/q to 3.25% on deposit cost relief; further rate-easing could support margin if deposit beta remains favorable .
Core funding strength: Core deposits 99% of total with brokered down to 0.7%—lower funding cost risk and reduced wholesale reliance .
Credit normalization underway: Watch list loans fell q/q to 4.13% of loans; allowance coverage at 1.68%; monitor the remaining impact of the $43.3M industrial credit on reserves/NCOs .
Fee momentum: Wealth advisory and BOLI contributed; prior-year insurance recoveries made y/y comparisons tough, but adjusted core noninterest income rose 9% y/y .
Capital and dividend support: Total Capital 15.90%; dividend up 4% to $0.50—supports total return and signals confidence in balance sheet resilience .
Liquidity optionality: ~$3.7B in available liquidity with falling utilization ($41.6M), enabling flexibility around loan growth and investment portfolio repositioning .
Near-term focus: Watch net interest margin trajectory, deposit mix stability, and continued progress on watch list reductions; medium term, technology investments and fee businesses can enhance revenue diversification .

Appendix: Additional Data Points

End-of-period deposits $5.90B (+3% y/y); loans $5.12B (+4% y/y); TBVPS $26.47 (+5% y/y, −2% q/q) .
Revenue $63.6M (−3% y/y; +4% q/q); net interest income $51.7M (+6% y/y; +5% q/q) .
Efficiency ratio 48.22% (vs. 44.74% y/y; 49.67% q/q); ROA 1.42%; ROE 13.87% .

References: ; Q3 press release data -; Q2 press release data -; Dividend release .

Disclaimer: *Estimates unavailable—values would be retrieved from S&P Global.

LAKELAND FINANCIAL CORP (LKFN)·Q4 2024 Earnings Summary