Lakeland Financial Reports First Quarter Net Income Of $23.4 Million
April 27, 2024 at 1:00 a.m.
Lakeland Financial Corporation, parent company of Lake City Bank, reported net income of $23.4 million for the three months ended March 31, 2024, which represents a decrease of $877,000, or 4%, compared with net income of $24.3 million for the three months ended March 31, 2023. Diluted earnings per share were $0.91 for the first quarter of 2024 and decreased 3% compared to $0.94 for the first quarter of 2023. On a linked quarter basis, net income decreased $6.2 million, or 21%, from fourth quarter 2023 net income of $29.6 million. Diluted earnings per share decreased from $1.16, or 22%.
Net income for the first quarter of 2024 benefited from the recognition of $1 million in additional insurance recoveries associated with the wire fraud loss that occurred during the second quarter of 2023. This created an after-tax benefit of $0.03 diluted earnings per common share for the first quarter of 2024. This recovery was in addition to insurance and loss recoveries of $6.3 million, or $0.18 diluted earnings per common share, that were recorded during the fourth quarter of 2023. Adjusting for these recoveries, the company's core operational profitability, a non-GAAP financial measure that excludes the impact of the wire fraud loss, insurance and loss recoveries and other related effects, was $22.7 million for the first quarter of 2024, a decrease of $1.6 million, or 7%, compared to the first quarter of 2023.
"We have entered 2024 with good momentum on the critical goal of continuing our long history of healthy, organic balance-sheet growth. With annual loan growth of 5% in the quarter, we are off to a fine start. While the prevailing interest rate environment continues to put pressure on our net interest margin, the Lake City Bank team did a terrific job of identifying revenue growth opportunities and diligently managing expenses. Despite the pressure on our net interest margin, we continue to focus on our future growth through investments in people, technology and new branch office opportunities," said David M. Findlay, chairman and chief executive officer.
Lakeland Financial Corporation, parent company of Lake City Bank, reported net income of $23.4 million for the three months ended March 31, 2024, which represents a decrease of $877,000, or 4%, compared with net income of $24.3 million for the three months ended March 31, 2023. Diluted earnings per share were $0.91 for the first quarter of 2024 and decreased 3% compared to $0.94 for the first quarter of 2023. On a linked quarter basis, net income decreased $6.2 million, or 21%, from fourth quarter 2023 net income of $29.6 million. Diluted earnings per share decreased from $1.16, or 22%.
Net income for the first quarter of 2024 benefited from the recognition of $1 million in additional insurance recoveries associated with the wire fraud loss that occurred during the second quarter of 2023. This created an after-tax benefit of $0.03 diluted earnings per common share for the first quarter of 2024. This recovery was in addition to insurance and loss recoveries of $6.3 million, or $0.18 diluted earnings per common share, that were recorded during the fourth quarter of 2023. Adjusting for these recoveries, the company's core operational profitability, a non-GAAP financial measure that excludes the impact of the wire fraud loss, insurance and loss recoveries and other related effects, was $22.7 million for the first quarter of 2024, a decrease of $1.6 million, or 7%, compared to the first quarter of 2023.
"We have entered 2024 with good momentum on the critical goal of continuing our long history of healthy, organic balance-sheet growth. With annual loan growth of 5% in the quarter, we are off to a fine start. While the prevailing interest rate environment continues to put pressure on our net interest margin, the Lake City Bank team did a terrific job of identifying revenue growth opportunities and diligently managing expenses. Despite the pressure on our net interest margin, we continue to focus on our future growth through investments in people, technology and new branch office opportunities," said David M. Findlay, chairman and chief executive officer.