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Lake City Bank Lakeland Financial Reports Record Second Quarter 2021 Performance July 26 , 2021 WARSAW , Ind . , July 26 , 2021 ( GLOBE NEWSWIRE ) -- Lakeland Financial Corporation ( Nasdaq Global Select / LKFN ) , parent company of Lake City Bank , today reported record quarterly net income of $ 24.3 million for the three months ended June 30 , 2021 , an increase of 24 % versus $ 19.7 million for the second quarter of 2020. Diluted earnings per share increased 23 % to $ 0.95 for the second quarter of 2021 , versus $ 0.77 for the second quarter of 2020. On a linked quarter basis , net income increased $ 1.4 million , or 6 % , from the first quarter of 2021 , in which the company had net income of $ 23.0 million , or $ 0.90 , diluted earnings per share . Pretax pre - provision earnings¹ were $ 28.4 million for the second quarter of 2021 , a decrease of 4 % , or $ 1.3 million , from $ 29.6 million for the second quarter of 2020. On a linked quarter basis , pretax pre - provision earnings decreased 4 % , or $ 1.1 million , from $ 29.5 million for the first quarter of 2021 . The company further reported record net income of $ 47.3 million for the six months ended June 30 , 2021 versus $ 37.0 million for the comparable period of 2020 , an increase of 28 % . Diluted earnings per share also increased 28 % to $ 1.85 for the six months ended June 30 , 2021 versus $ 1.44 for the comparable period of 2020. Pretax pre - provision earnings 1 were $ 57.8 million for the six months ended June 30 , 2021 , versus $ 57.2 million for the comparable period of 2020 , an increase of 1 % , or $ 0.7 million . David M. Findlay , President and Chief Executive Officer commented , " We are very pleased with our strong performance in 2021 under challenging conditions . Our record net income for the quarter and first six months of the year reflects strong organic loan and deposit growth , exceptional management of the Paycheck Protection Program and prudent overall balance sheet management . As we transition to the second half of 2021 , we look forward to expanding our business development efforts and focusing on growing relationships with clients and prospects . " Financial Performance - Second Quarter 2021 Second Quarter 2021 versus Second Quarter 2020 highlights : • Return on average equity of 14.71 % , compared to 12.92 % • Return on average assets of 1.58 % , compared to 1.45 % • Organic loan growth , excluding PPP loans , of $ 223.6 million , or 6 % • Core deposit growth of $ 769.3 million , or 17 % • Noninterest bearing demand deposit account growth of $ 317.1 million , or 22 % • Net interest income increase of $ 4.1 million , or 10 % • Net interest margin of 3.01 % compared to 3.10 % • Noninterest income increase of $ 171,000 , or 2 % • Revenue growth of $ 4.3 million , or 8 % • Noninterest expense increase of $ 5.6 million , or 26 % • Recovery of a $ 1.7 million loan charged off in 2009 , resulting in $ 1.7 million reverse provision compared to provision expense of $ 5.5 million , a decrease of $ 7.2 million • Dividend per share increase of 13 % to $ 0.34 from $ 0.30 • Average total equity increase of $ 51.7 million , or 8 % • Total risk - based capital ratio improved to 15.04 % compared to 14.93 % • Tangible capital ratio of 10.81 % compared to 11.35 % Second Quarter 2021 versus First Quarter 2021 highlights : • Return on average equity of 14.71 % , compared to 14.27 % • Return on average assets of 1.58 % for both periods • Organic loan growth , excluding PPP loans , of $ 81.6 million , or 2 % • Core deposit growth of $ 164.7 million , or 3 % • Noninterest bearing demand deposit account growth of $ 138.9 million , or 9 % • Net interest income decrease of $ 18,000 • Net interest margin of 3.01 % compared to 3.19 % • Noninterest income decrease of $ 1.2 million , or 10 % • Recovery of a $ 1.7 million loan charged off in 2009 , resulting in $ 1.7 million reverse provision compared to provision expense of $ 1.5 million , a decrease of $ 3.2 million • Decrease in watch list loans of $ 10.8 million , or 4 % decline • Noninterest expense decrease of $ 98,000 • Total risk - based capital declined to 15.04 % compared to 15.20 % • Average total equity increase of $ 10.7 million , or 2 % • Tangible capital ratio was 10.81 % compared to 10.77 %