Lakeland Financial Income Hits Record Level
July 28, 2016 at 4:25 p.m.
By Staff Report-
The Company also announced that the board of directors approved a cash dividend for the first quarter of $0.17 per share, payable on May 7 to shareholders of record as of today. The quarterly dividend represents a 10 percent increase over the quarterly dividends paid in 2011.
Michael L. Kubacki, Chairman and Chief Executive Officer, commented, "We entered 2012 with strong earnings momentum and delivered an excellent first quarter for our shareholders. We're excited by the growth we've experienced in the Indianapolis market and our Northern Indiana markets continue to provide good potential for expanded market share opportunities as our regional economy continues to rebound."
Kubacki continued, "We're especially pleased to increase our dividend by 10 percent. During the economic downturn, our consistent earnings strength and strong capital position permitted us to pay a healthy and uninterrupted dividend. This dividend increase is further evidence of the strength of our balance sheet and our positive outlook for the future."
Average total loans for the first quarter of 2012 were $2.22 billion versus $2.10 billion for the first quarter of 2011, an increase of 6 percent.
David M. Findlay, President and Chief Financial Officer, observed, "Overall, loan demand continues to be good, as demonstrated by the growth in average loans in the first quarter. During the quarter, we experienced a high level of reductions in agri-business loans as favorable commodity prices resulted in strong results for these borrowers. These seasonal reductions impacted our overall loan totals and offset the positive organic growth in the quarter. We expect loan growth to continue to be moderate as the economic recovery in our markets moves along."
The Company's net interest margin was 3.41 percent in the first quarter of 2012 versus 3.78% for the first quarter of 2011 and 3.38% in the linked fourth quarter of 2011. The year-over-year margin decline resulted primarily from reduced yields in the investment portfolio and slightly lower commercial loan yields as interest rates continue to be at historic lows.
The Company's provision for loan losses in the first quarter of 2012 was $799,000 versus $5.6 million in the same period of 2011.
In the fourth quarter of 2011, the provision was $2.9 million.
The provision decrease on a year-over-year basis was generally driven by the stabilization and improvement in key loan quality metrics, including lower net charge offs, adequate reserve coverage of nonperforming loans, continuing signs of stabilization in the economic conditions of the Company's markets and general signs of improvement in our borrowers' performance and future prospects. The Company's allowance for loan losses as of March 31, 2012 was $52.8 million compared to $48.5 million as of March 31, 2011 and $53.4 million as of December 31, 2011. The allowance for loan losses represented 2.37% of total loans as of March 31, 2012 versus 2.30 percent at March 31, 2011 and 2.39 percent as of December 31, 2011.
Findlay added, "We're encouraged by the stability of our loan portfolio and the generally positive trends in overall loan quality. While we continue to experience some challenges in our regional economy, conditions are generally improving and our overall outlook is favorable. We've built the allowance to a level that provides strong coverage for our troubled loan situations. Our history proves that we understand the importance of a strong balance sheet, which has allowed us to navigate the past several years and we will continue to diligently monitor our borrower's condition to ensure that we maintain this strong coverage."
The Company's noninterest expense increased $512,000, or 4 percent, to $14.7 million in the first quarter of 2012 versus $14.2 million in the comparable quarter of 2011.
On a year-over-year basis, data processing fees decreased $271,000 due to the Company's conversion to a new core processor during the second quarter of 2011.
Other expense decreased $192,000 primarily due to lower FDIC deposit insurance premiums.
Salaries and employee benefits increased by $902,000 in the three-month period ended March 31 versus the same period of 2011.
Performance based employee incentive compensation expense, which includes the Company's 401(k) plan and various incentive programs, increased from $872,000 to $1.3 million as a result of the company's strong results for the quarter versus internal objectives and higher participation levels. In addition, the fourth quarter of 2011 expense was lower than previous quarters in 2011 due to a final reconciliation of these expenses in the fourth quarter. Stock compensation expenses in the first quarter increased by $178,000 versus the linked fourth quarter primarily due to the annual director stock compensation expense, which was not present in the fourth quarter of 2011.[[In-content Ad]]
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The Company also announced that the board of directors approved a cash dividend for the first quarter of $0.17 per share, payable on May 7 to shareholders of record as of today. The quarterly dividend represents a 10 percent increase over the quarterly dividends paid in 2011.
Michael L. Kubacki, Chairman and Chief Executive Officer, commented, "We entered 2012 with strong earnings momentum and delivered an excellent first quarter for our shareholders. We're excited by the growth we've experienced in the Indianapolis market and our Northern Indiana markets continue to provide good potential for expanded market share opportunities as our regional economy continues to rebound."
Kubacki continued, "We're especially pleased to increase our dividend by 10 percent. During the economic downturn, our consistent earnings strength and strong capital position permitted us to pay a healthy and uninterrupted dividend. This dividend increase is further evidence of the strength of our balance sheet and our positive outlook for the future."
Average total loans for the first quarter of 2012 were $2.22 billion versus $2.10 billion for the first quarter of 2011, an increase of 6 percent.
David M. Findlay, President and Chief Financial Officer, observed, "Overall, loan demand continues to be good, as demonstrated by the growth in average loans in the first quarter. During the quarter, we experienced a high level of reductions in agri-business loans as favorable commodity prices resulted in strong results for these borrowers. These seasonal reductions impacted our overall loan totals and offset the positive organic growth in the quarter. We expect loan growth to continue to be moderate as the economic recovery in our markets moves along."
The Company's net interest margin was 3.41 percent in the first quarter of 2012 versus 3.78% for the first quarter of 2011 and 3.38% in the linked fourth quarter of 2011. The year-over-year margin decline resulted primarily from reduced yields in the investment portfolio and slightly lower commercial loan yields as interest rates continue to be at historic lows.
The Company's provision for loan losses in the first quarter of 2012 was $799,000 versus $5.6 million in the same period of 2011.
In the fourth quarter of 2011, the provision was $2.9 million.
The provision decrease on a year-over-year basis was generally driven by the stabilization and improvement in key loan quality metrics, including lower net charge offs, adequate reserve coverage of nonperforming loans, continuing signs of stabilization in the economic conditions of the Company's markets and general signs of improvement in our borrowers' performance and future prospects. The Company's allowance for loan losses as of March 31, 2012 was $52.8 million compared to $48.5 million as of March 31, 2011 and $53.4 million as of December 31, 2011. The allowance for loan losses represented 2.37% of total loans as of March 31, 2012 versus 2.30 percent at March 31, 2011 and 2.39 percent as of December 31, 2011.
Findlay added, "We're encouraged by the stability of our loan portfolio and the generally positive trends in overall loan quality. While we continue to experience some challenges in our regional economy, conditions are generally improving and our overall outlook is favorable. We've built the allowance to a level that provides strong coverage for our troubled loan situations. Our history proves that we understand the importance of a strong balance sheet, which has allowed us to navigate the past several years and we will continue to diligently monitor our borrower's condition to ensure that we maintain this strong coverage."
The Company's noninterest expense increased $512,000, or 4 percent, to $14.7 million in the first quarter of 2012 versus $14.2 million in the comparable quarter of 2011.
On a year-over-year basis, data processing fees decreased $271,000 due to the Company's conversion to a new core processor during the second quarter of 2011.
Other expense decreased $192,000 primarily due to lower FDIC deposit insurance premiums.
Salaries and employee benefits increased by $902,000 in the three-month period ended March 31 versus the same period of 2011.
Performance based employee incentive compensation expense, which includes the Company's 401(k) plan and various incentive programs, increased from $872,000 to $1.3 million as a result of the company's strong results for the quarter versus internal objectives and higher participation levels. In addition, the fourth quarter of 2011 expense was lower than previous quarters in 2011 due to a final reconciliation of these expenses in the fourth quarter. Stock compensation expenses in the first quarter increased by $178,000 versus the linked fourth quarter primarily due to the annual director stock compensation expense, which was not present in the fourth quarter of 2011.[[In-content Ad]]
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