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Lake City Bank Lakeland Financial Reports Record First Quarter 2021 Performance April 26 , 2021 WARSAW , Ind . , April 26 , 2021 ( GLOBE NEWSWIRE ) -- Lakeland Financial Corporation ( Nasdaq Global Select / LKFN ) , parent company of Lake City Bank , today reported record quarterly net income of $ 23.0 million for the three months ended March 31 , 2021 , an increase of 33 % versus $ 17.3 million for the first quarter of 2020. Diluted earnings per share increased 34 % to $ 0.90 for the first quarter of 2021 , versus $ 0.67 for the first quarter of 2020 . On a linked quarter basis , net income decreased $ 1.6 million , or 7 % , from the fourth quarter of 2020 , in which the company had net income of $ 24.6 million , or $ 0.97 , diluted earnings per share . Pretax pre - provision earnings were $ 29.5 million for the first quarter of 2021 , an increase of 7 % , or $ 1.9 million , from $ 27.5 million for the first quarter of 2020. On a linked quarter basis , pretax pre - provision earnings decreased 7 % , or $ 2.1 million , from $ 31.6 million for the fourth quarter of 2020 . David M. Findlay , President and Chief Executive Officer stated , " As we look back on the last year , we are immensely proud of our performance , both financially and operationally . With first quarter record net income , we continue to move through the challenging environment with strong financial results . Operationally , we continue to take care of our clients in our Indiana communities . During the quarter we were excited to reopen our branch lobbies to an enthusiastic response from our clients . And it was good to see them . We also took the next step in our unwavering focus on delivering technology - driven solutions to our clients with the roll out of Lake City Bank Digital , our next generation digital platform for retail and commercial banking clients . " Financial Performance - First Quarter 2021 First Quarter 2021 versus First Quarter 2020 highlights : • Return on average equity of 14.27 % , compared to 11.51 % • Return on average assets of 1.58 % , compared to 1.40 % • Loan growth of $ 389 million , or 10 % • Paycheck Protection Program ( PPP ) loans of $ 397 million outstanding o Average loan growth , excluding PPP loans , of $ 105 million , or 3 % • Core deposit growth of $ 1.0 billion , or 25 % • Noninterest bearing demand deposit account growth of $ 546 million , or 52 % • Net interest income increase of $ 4.8 million , or 12 % • Noninterest income increase of $ 1.8 million , or 17 % • Revenue growth of $ 6.6 million , or 13 % • Noninterest expense increase of $ 4.7 , or 21 % • Pretax pre - provision earnings¹ increase of $ 1.9 million , or 7 % • Provision for credit losses² of $ 1.5 million compared to $ 6.6 million , a decrease of $ 5.1 million • Average total equity increase of $ 49 million , or 8 % First Quarter 2021 versus Fourth Quarter 2020 highlights : • Return on average equity of 14.27 % , compared to 15.18 % • Return on average assets of 1.58 % , compared to 1.70 % • Average loan growth , excluding PPP loans , of $ 50 million , or 1 % • Core deposit growth of $ 198 million , or 4 % • Net interest income decrease of $ 1.0 million , or 2 % • Noninterest income increase of $ 775,000 , or 7 % • Provision for credit losses² of $ 1.5 million compared to $ 920,000 , an increase of $ 557,000 • Noninterest expense increase of $ 1.8 million , or 7 % • Average total equity increase of $ 8.7 million , or 1 % Return on average total equity for the first quarter of 2021 was 14.27 % , compared to 11.51 % in the first quarter of 2020 and 15.18 % in the linked fourth quarter of 2020. Return on average assets for the first quarter of 2021 was 1.58 % , compared to 1.40 % in the first quarter of 2020 and 1.70 % in the linked fourth quarter of 2020. The company's total capital as a percent of risk - weighted assets was 15.20 % at March 31 , 2021 , compared to 14.23 % at March 31 , 2020 and 14.65 % at December 31 , 2020. The company's tangible common equity to tangible assets ratio 1 was 10.77 % at March 31 , 2021 , compared to 11.99 % at March 31 , 2020 and 11.21 % at December 31 , 2020 . As announced on April 13 , 2021 , the board of directors approved a cash dividend for the first quarter of $ 0.34 per share , payable on May 5 , 2021 , to shareholders of record as of April 25 , 2021. The first quarter dividend per share of $ 0.34 is unchanged from the dividend per share paid for the fourth quarter of 2020 . Findlay added , " Our exceptional capital strength has represented a strong foundation as we have navigated the uncertainty of the past year . Our balance sheet is well positioned for future growth and we're looking forward to a more normalized environment to continue our focus on doing what we do best and that is to grow our balance sheet through organic loan opportunities in all of our markets . Our strong capital position has also provided the