Lakeland Financial Corporation Annual Report 2020

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FY2020 Annual Report · Lakeland Financial Corporation

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ANNUAL
REPORT

(888) 522-2265

LAKECITYBANK.COM

LAKELAND FINANCIAL CORPORATION

The value proposition
of the Lake City Bank
community banking
model has never been
more relevant.

Lake City Bank Shareholders, Clients and
Community Partners:

Lake City Bank team working everywhere from

their kitchen tables to our disaster recovery sites,

we came together quickly and cohesively to do

what we always do, and that is to take care of our

clients. The volume of interest and applications

was extraordinary and we were very pleased that

we were able to take care of 100% of our clients

who completed the application process before

the Small Business Administration closed the

application portal. These loans were critical lifelines

to our clients during an unprecedented period of

uncertainty and challenge. The value proposition of

the Lake City Bank community banking model has

never been more relevant.

Speaking of kitchen tables, we saw plenty of those

in virtual meetings as the majority of our team

transitioned to a remote workplace structure for

most of the year, as did many of you. We’ve tested

our business continuity plans frequently over the

years, but never on the scale that we experienced

in real time last year. It worked pretty seamlessly

and was proof that our substantial investment in

When should an annual report to shareholders

technology and innovation over the last decade

focus on more than just the financial performance

was money well spent. Critically, our digital banking

of an organization? That’s an easy one for all of us.

solutions provided uninterrupted access for our

In 2020. As it did for most organizations, the year

commercial and retail clients, despite our limited

challenged the Lake City Bank team in ways that we

lobby access and remote workforce arrangements.

couldn’t have imagined. And there wasn’t much fun

involved either. But we are a stronger organization

as a result. As we entered 2021, it seemed like all

anyone wanted to talk about was the fact that 2020

was over. And while the Lake City Bank team is

glad to have the year in our rearview mirror, we are

enormously proud of what the bank achieved.

While we are talking about a remote workforce, I’d

like to address the predictions that a permanent

remote workforce is here to stay and is even a

good idea. There is no way that an organization

that truly cares about developing and maintaining a

strong culture can argue that never being together,

or being together infrequently, will strengthen

Community banking shined in 2020. It became

its culture or create a good one. The banking

increasingly clear throughout the year that

business is really about the culture of the team and

community banks like Lake City Bank are critical to

how we approach client relationships. We don’t

the delivery of financial services in our communities

manufacture a product that defines our ultimate

and to our clients. This was particularly evident

client satisfaction; we are the product. At every level

with the Paycheck Protection Program (PPP). We

of the bank, and in every way we provide services

originated $571 million of PPP loans for 2,409

to clients, the teamwork and partnership that is

clients during the first round of the program. In

derived from face-to-face personal interaction is

a few short weeks, our balance sheet ballooned

critical. It defines our culture and our product. We

by more than 10% due to the program! With the

like each other, and we miss being together. And we

know we are better when we are together. We are

Lake City Bank Digital, our next generation digital

eager to get everyone back to work in a Lake City

banking platform, late in the first quarter.

Bank facility when we can do so safely.

Lake City Bank Digital is a truly transformational

Financial performance does matter, so let’s

change to our mobile and internet banking services.

address that as well. Lakeland Financial

For our clients, it’s a completely new way to connect

Corporation’s stock price ended the year up 10%

with us, and with their money, from a single solution

at $53.58 per share. Importantly, we fared well

that works the same way regardless of device or

relative to key banking indexes. The Nasdaq Bank

account type. From your phone, your laptop, your

Index and the KBW Bank Index fell (11)% and

tablet, or your desktop, it will be a seamless and

(14)%, respectively. Like all financial stocks, the

consistent way to access your Lake City Bank

uncertainty of our economic future in the early

relationships. With Lake City Bank Digital, we have

days of the pandemic severely impacted our stock.

reinvented our digital platform with a focus on

On March 23, 2020, our stock price hit a pandemic

innovative solutions that are built to serve our

low of $30.49 per share. Our 76% improvement

clients’ needs.

in 2020 relative to this low point reflects our

execution-driven reputation with investors.

We are an inherently optimistic organization and

remain so today, despite the twists and turns of 2020.

As detailed in this annual report, our net income

Our long term mission – “Lake City Bank will be the

and diluted earnings per share were down (3)%

acknowledged and recognized leader in Indiana

and (2)%, respectively. We concluded 2020 with

community banking,” is as relevant and achievable as

great momentum as we reported record quarterly

it has ever been. We are grateful for the partnerships

net income in both the third and fourth quarters

we have with our clients, employees, communities

and are cautiously optimistic as we enter 2021.

and shareholders. Thank you.

The Federal Reserve’s target Federal Funds Rate

of 0% to 0.25% will continue to present challenges

to the management of our balance sheet, but

we’ve successfully maneuvered through similar

cycles in the past and will do so again. While much

uncertainty remains, the Lake City Bank team is

focused on the future and our continued growth.

2020 tested every aspect of our business plan and

proved that the delivery of competitive banking

services will continue to rely upon both the

personal relationships we build with our clients and

the leveraging of technology in ways that we never

imagined. Our branch network and all of the client

contact people throughout the bank who connect

with our customers every day continue to be the

backbone of our community banking success.

Yet, our experience in 2020 demonstrated the

importance of offering a digital banking solution

that matches our large bank competition and

outperforms our community bank competition. As

a result, 2021 will be a critical year as we roll out

David M. Findlay
President and Chief Executive Officer

Management Committee

Lake City Bank has a strong history of
commitment to diversity and inclusion and we
are proud of our day-to-day actions supporting
this commitment.

Community banking is about the connections we have with
our communities. Our communities were challenged on many
levels in 2020, including the upheaval and angst prompted
by continuing racial injustice. At Lake City Bank, our culture
is built upon a foundation of equitable treatment of everyone
we interact with and serve – our employees, our clients, our
communities, our business partners and our shareholders. As
a society, we must insist on empathy and respect for human
dignity for all. This is not debatable.

Lake City Bank has a strong history of commitment to diversity
and inclusion and we are proud of our day-to-day actions
supporting this commitment. In order to affirm and expand
our commitment, we formed the Diversity and Inclusion Task
Force in 2020. Additionally, we added the word Inclusivity to
our Core Values. Inclusivity is an intentionally broad term and
the task force will have authority to develop a plan to review
where we are today and where we want to be in the future.
We must not only aspire to be an organization of Inclusivity,
we must actually be one, and it is important that we become a
leader in our communities on this front. As a community bank,
we are dedicated to working to serve our underserved and
underbanked communities and we support this movement for
fairness as racism and discrimination of any form are simply
wrong. We are dedicated to serving everyone equally in our
great Indiana communities.

David M. Findlay
President and Chief
Executive Officer

Michael E. Gavin
Executive Vice President
Chief Credit Officer

Lisa M. O’Neill
Executive Vice President
Chief Financial Officer

Eric H. Ottinger
Executive Vice President
Chief Commercial
Banking Officer

Kristin L. Pruitt
Executive Vice President
Chief Administrative Officer

Kyra E. Clark
Senior Vice President
Chief Human Resources
Officer

J. Rickard Donovan
Senior Vice President
General Counsel

Stephanie R. Leniski
Senior Vice President
Chief Retail Banking
Officer

Jonathan P. Steiner
Senior Vice President
Chief Wealth Advisory
Officer

Board of Directors

The strength of the board and its imprint on
our performance was evident as we moved
through 2020 and into 2021.

Our board of directors last met in person in

January 2020. More than a year has passed

since our directors were together. Yet, the

strength of the board and its imprint on our

performance was evident as we moved

through 2020 and into 2021. Good corporate

governance cannot take a break during a

pandemic and the collective and individual

efforts of the board were critical to our success

as we traversed a uniquely challenging, yet

rewarding, year for the company. The Lake City

Bank board was fully aligned and supportive

of the company’s efforts on diversity and

inclusion, and also provided a leading voice

on Environmental, Social and Corporate

Governance (ESG). The board’s focus and

efforts on the diversity and ESG fronts will

ensure that we effectively measure and

report on the central factors in assessing the

sustainability and societal impact we have on all

of our constituents.

Michael L. Kubacki
Chairman
Lakeland Financial
Corporation and
Lake City Bank

Blake W. Augsburger
Founder and Chief
Executive Officer
LEA Professional

Robert E. Bartels, Jr.
Partner
Incedo LLC

Darrianne P. Christian
Civic Leader

Emily E. Pichon
Chairman
ExTech Plastics, Inc.
Officer and Director
Olive B Cole Foundation and
M E Raker Foundation, Inc.

Bradley J. Toothaker
President and Chief
Executive Officer
Bradley Company

Daniel F. Evans, Jr.
President Emeritus
Indiana University Health

Steven D. Ross
Owner
Ross and Associates

Ronald D. Truex
Chairman of the Board
Creighton Brothers, LLC

David M. Findlay
President and Chief
Executive Officer
Lakeland Financial
Corporation and Lake
City Bank

Brian J. Smith
Co-Chief Executive
Officer
Heritage Group, Inc.

M. Scott Welch
Chief Executive Officer
Welch Packaging Group

At our 2021 annual meeting of shareholders, we will recognize Tom Hiatt upon his retirement
from our board. For 14 years, Tom has been a quietly influential and valuable partner to the board
of directors and the leadership team. His measured and thoughtful partnership will be missed.
Thank you, Tom.

Thomas A. Hiatt
Former Founding Partner
Centerfield Capital
Partners, LP

ChromaSource
Inc.

Columbia City
Client since 1996

We wouldn’t be
where we are
today without that
relationship.

- Jason Brooks

Left to right: Doug Spare, Vice President of Product Development; Cammy Treadway, Senior Vice President, Commercial East Regional
Manager; Shannon Getty, Vice President of Sales; and Jason Brooks, Chief Executive Officer.

No matter where you find yourself, undoubtedly you’ll be
surrounded by color. Simple, right? Perhaps not so much.
It’s very likely that the person who selected the colors in
your environment used samples from ChromaSource to do
so. Located in Columbia City, ChromaSource produces and
delivers color sampling resources for retail and commercial
paint manufacturers around the country and around the world.
For example, the paint color samples you choose from and
take home from your local home-improvement or paint retailer
are produced by applying actual paint to the sample card. The
process of matching color on paint samples to exact color
formulas is painstaking and rigorous, and something that
ChromaSource has perfected. Founded in 1996, ChromaSource
has grown with the paint industry over the years, adding color
systems production and management in 1998, followed by
fulfillment solutions in 2006. Constant throughout the company’s
history have been its commitments to innovation and to superior
service. Lake City Bank has been another familiar feature of the

growth at ChromaSource. “The bank, and Cammy Treadway,
have gone above and beyond for us since the beginning,” said
Jason Brooks, Chief Executive Officer. “We wouldn’t be where
we are today without that relationship.” ChromaSource has
commercial loans and deposits, and technology-driven treasury
management products with Lake City Bank. In addition, the
senior management team uses the bank for its personal banking
needs. Quality, innovation and attention to detail have served
ChromaSource well. In the midst of the COVID-19 pandemic,
ChromaSource developed a fulfillment system for one of its
customers that enables do-it-yourself homeowners to order
paint color samples online from ChromaSource, choose their
color and type of paint, and pick up their order curbside at their
local retailer. This combination of technology and hands-on
fulfillment enabled ChromaSource to help its customer respond
to new demands from consumers wanting to do improvement
projects while staying at home during the pandemic.

Please note: We created the photography in this report following guidelines for social distancing and safety outlined by the Centers for Disease
Control and the Indiana State Department of Health.

Birge &
Held

Indianapolis
Client since 2016

The bank really
understands our
business.

- J. Taggart Birge

Left to right: Andrew Held, President and Chief Operating Officer; J. Taggart Birge, President and Chief Executive Officer; and Tim
Schlichte, Vice President, Commercial Banking Officer.

Birge & Held, a real estate investment, property

great prospects, and we understand that we serve the

management and construction firm, focuses on

tenants and communities where our properties are

multifamily commercial real estate across the

located, in addition to our investors.” Birge & Held’s

Midwest, Southeast and Western markets. Using

dedication to analysis, agility and innovation match

experience, innovation and agility honed over nearly

up well with Lake City Bank, its partner for banking

three decades, the firm manages more than $1 billion

services since 2016. The company has commercial

in assets for clients including institutional investors,

loans, a line of credit and deposits with the bank,

private equity funds, banks, private wealth offices

along with private banking services for the principals.

and individual and large-scale real estate investors.

“Lake City Bank has proven to be just the partner we

The company has built a reputation for improving the

need,” Birge said. “The bank really understands our

properties it acquires and manages. “We focus on the

business, and that has supported our growth.”

whole picture,” said Tag Birge, President and Chief

Executive Officer. “We look for quality properties with

South Bend
Clinic

South Bend
Client since 2020

Everyone on the
team has been
willing to go the
extra mile for us.

- Kelly Macken-Marble

Left to right: Lisa Wine, Chief Financial Officer; Patti McNarney, Vice President, Commercial Banking Officer; and Kelly Macken-Marble,
Chief Executive Officer.

Back in 1916, a group of doctors, inspired by the Mayo

collaboration and teamwork to bear in its relationship

Clinic in Rochester, Minnesota, founded what would

with the South Bend Clinic. When this 105-year-old

become the South Bend Clinic. Today, the South Bend

practice selected a new financial partner in 2020, they

Clinic encompasses 10 campuses, and nearly 150

chose Lake City Bank. The bank provides commercial

providers holding 30 different board certifications.

loans to the clinic, as well as treasury management

Even in light of such growth, the South Bend

solutions that are technology driven and structured

Clinic remains true to its roots—providing patient-

around the health care provider’s needs. In addition,

centered, physician-led health care. “We believe

Lake City Bank participated with two other Indiana

in collaboration—that access to colleagues and

banks in another commercial loan. “We’ve been really

specialties under one roof, sharing expertise, improves

pleased with Lake City Bank’s ability to respond to our

treatment and outcomes for all of our patients,”

needs,” Macken-Marble said. “Everyone on the team

said Kelly Macken-Marble, Chief Executive Officer.

has been willing to go the extra mile for us.”

The Lake City Bank team brought similar skills in

Boys &
Girls Club

Goshen
Client since 2006

We know we’re
working with
trusted advisors
who respect the
work we do, and
we rely on them to
do their job as well.

- Kevin Deary

Left to right: Kevin Deary, Chief Executive Officer; and Amber Wolfer, Vice President, Commercial Banking Officer.

The Boys & Girls Club of Elkhart County (BGCEC), founded
in 1956, inspires and empowers young people to reach their
full potential through a variety of programs and experiences,
of course, but also through building powerful relationships
that help guide young people as they grow. Every day, the
organization welcomes more than 1,500 youth ages six
through 18 to its clubhouses in Elkhart, Goshen, Middlebury
and Nappanee, serving more than 5,000 young people each
year. Clubs are located where families need them most, and
they are open when youth need them most as well—after
school, during school breaks and in the summer. Kids can
also visit Camp Koda in Goshen for summer day camp. The
BGCEC team practices what it preaches, relying on partners
for advice, support and services. Lake City Bank has partnered
with BGCEC since 2006. The bank provides commercial loans,
technology-driven treasury management products and credit
card processing. On closer examination, though, the relationship

goes much deeper—BGCEC relies on the Lake City Bank team
for advice, knowledge and help with planning. “Lake City Bank
is part of our community. They live and work here,” said Kevin
Deary, Chief Executive Officer. “We know we’re working with
trusted advisors who respect the work we do, and we rely on
them to do their job as well.” Through the years, as BGCEC
has grown from one club in Goshen to four full-service clubs
throughout Elkhart County, the organization has changed and
grown with the needs of the community. Its ability to pivot,
adapt and change has served BGCEC well during the COVID-19
crisis, when it had to shift services to support families faced with
changing work, school and child care situations, all the while
maintaining a safe environment for young people and staff. “It
makes a huge difference when you have a true relationship with
your bank,” Deary said. “We wouldn’t have all of this, without
the bank as our partner.”

G&G Hauling
& Excavating,
Inc.

Warsaw
Client since 1966

Both of our
organizations are
very community
focused and
dedicated to great
service. We rely
on them.

- Cary Groninger

Left to right: Richard Groninger, Vice President; Everett Nifong, Vice President, Commercial Banking Officer; Cary Groninger, President;
and Krista Campbell, Controller.

Lake City Bank and G&G Hauling & Excavating have

commercial and industrial snow removal. Community

been partners right from the company’s founding

means a lot to G&G—not only has the family-led

in 1966. G&G started small—doing excavation and

company grown up here, G&G has built strong

site preparation. Very soon the company began to

relationships with local organizations that improve

grow, adding mining its own gravel and, soon after,

the service they can offer to customers. Lake City

concrete and asphalt recycling. G&G has continued

Bank’s relationship with G&G has grown over the

to grow over the years, adding capabilities and

years as well. The company has commercial loans and

building a reputation for quality workmanship, satisfied

deposits, technology-driven treasury management

customers and a strong connection to the community.

services, credit cards and personal services with Lake

The company’s extensive list of capabilities also

City Bank. “We work well with Lake City Bank,” said

includes commercial site preparation and site utilities;

Cary Groninger, President. “Both of our organizations

demolition, clearing and trucking; production and

are very community focused and dedicated to great

sales; design build services and development; and

service. We rely on them.”

Long-term client pleased with service

From my perspective as a client,
the feeling was that everything was
done to get this loan processed and
funded with the highest sense of
urgency and as efficiently as if I were
the only client being helped. And I
cannot emphasize how crucial this
funding was and is to our practice,
our patients, and our employees,
during these most difficult and
challenging times.

Time was of the essence

Got the wonderful word late today
that the Paycheck Protection Program
loan application for our company has
been not only approved but funded.
Kudos and thanks—I know this ‘easy’
funding has been anything but to get,
and I am equally certain that, but for
the focused efforts of Lake City, this
good news would likely never have
happened for us.

Small business client values team

When I deal with Lake City Bank, I
always feel like I am the office’s most
important customer, no matter what I
need. We were able to get a PPP loan
from Lake City Bank to help keep our
business going, and the service and
attention we received was exactly the
same—we were treated like VIPs.

The
Community
Bank Model
at its Best

As a public company, we are often asked by the
investment community how we compete with
significantly larger and more resourced competitors
and how we differentiate Lake City Bank from our
competitors of all sizes. 2020 provided a resounding
real-time answer to these frequently asked questions
on many levels.

When the COVID-19 crisis arrived, we moved quickly
to ensure uninterrupted access for our clients to
their bank and their bankers while at the same time
adapting our offices and practices to protect our
employees and our customers. We are proud that
from the start of the pandemic we were able to
continue to support our team members, clients, and
communities safely.

Our response to the Paycheck Protection Program
illustrated Lake City Bank’s management of the crisis.
In a few short weeks, we provided critical funding to
2,409 clients totaling $571 million in the first round
of PPP activity. As we entered 2021, we began
working with our clients to ensure that their PPP
loans qualified for forgiveness as rapidly as possible
and initiated another round of PPP lending with our
clients. The efficiency and speed of our PPP process
was exceptional.

We’re proud of our PPP numbers, but they only
tell part of the story. Every one of our customers
who needed, qualified and applied for a PPP loan
was served, regardless of whether they were a
commercial client, a private banking sole practitioner,
or a business served by branch bankers throughout
our footprint. Every single client. Here is what they
told us.

Communication and timeliness matter

Feedback from a happy client

Our banker reached out to us in
advance of the PPP rollout and did a
tremendous job—we can’t thank him
enough for his attention to our small
business and he has been a pleasure
to work with. The Lake City team was
obviously prepared and committed to
helping its customers.

Big-bank client appreciates service

What has blown us away is your
manager treated us the entire time
as though we were a beloved friend
and gave us professional help as
though we were a multi-million
dollar account.

24/7 effort recognized

I want to express my sincere
appreciation to you and your team at
Lake City Bank for the extraordinary
effort made to work with our CFO to
secure SBA approval of our PPP loan
that was funded last week. It did not
escape my attention that many of your
email communications with us were
sent late evenings and over weekends.
So thanks again for everything you
did, and for going the extra mile to
get us approved under this program
during the brief window of opportunity
that was available.

I wanted to reach out to you and
say thank you for how LCB and its
people handled the SBA loan for
my company. You folks were on it!
I have several friends and business
associates throughout the tri-state
area who were applying for the
same loan and didn’t have near
the success that I had in getting
their loans processed. I received
my funds 12 days after I dropped
off my application. My banker did a
great job keeping me informed on
the changes that were happening
as everyone was trying to figure out
how it was going to be handled.

Reflections from a client with multiple banks

I applied for the PPP SBA program
with my banker last week...her
knowledge of what was needed to
get it done and keeping abreast
of the SBA’s changing documents
was simply outstanding. She also
contacted me well before the other
banks I have relationships with did,
which was really appreciated in this
time of uncertainty.

Five Year Summary of Financial Highlights

(in thousands, except share and per share data)

End of Period Balances

Assets
Deposits
Loans, net of Deferred Fees
Allowance for Loan Losses
Total Equity

Average Balances

Assets

Total Assets
Earning Assets
Investments - Available-for-Sale
Loans, net of Deferred Fees

Liabilities and Equity
Total Deposits
Interest Bearing Deposits
Interest Bearing Liabilities
Total Equity

Income Statement Data

Net Interest Income
Net Interest Income - Fully Tax Equivalent
Provision for Loan Loss
Non Interest Income
Non Interest Expense
Net Income

Per Share Data

Basic Net Income Per Common Share
Diluted Net Income Per Common Share
Cash Dividends Per Common Share
Dividend Payout
Book Value Per Common Share
Basic Weighted Average Common Shares Outstanding
Diluted Weighted Average Common Shares Outstanding

Key Ratios

Return on Average Assets
Return on Average Total Equity
Average Equity to Average Assets
Net Interest Margin
Efficiency
Net Charge Offs to Average Loans
Loan Loss Reserve to Total Loans
Loan Loss Reserve to Nonperforming Loans
Nonperforming Assets to Total Loans

2020
$5,830,435
5,036,805
4,649,156
61,408
657,184

$5,424,796
5,184,836
633,957
4,424,472

$4,650,597
3,340,696
3,437,338
624,174

$163,008
165,454
14,770
46,843
91,205
84,337

$3.31

3.30

1.20

36.36%

$25.85

2019
$4,946,745
4,133,819
4,065,828
50,652
598,100

2018
$4,875,254
4,044,065
3,914,745
48,453
521,704

2017
$4,682,976
4,008,655
3,818,459
47,121
468,667

2016
$4,290,025
3,577,912
3,470,927
43,718
427,067

$4,941,904
4,656,707
603,580
3,974,532

$4,758,392
4,461,366
562,385
3,843,912

$4,443,106
4,183,112
530,275
3,610,908

$4,039,719
3,799,963
493,656
3,225,635

$4,242,524
3,298,406
3,390,512
562,601

$4,093,894
3,235,867
3,382,507
487,062

$3,757,209
2,967,902
3,178,439
450,796

$3,477,816
2,753,466
2,872,691
416,034

$155,047
157,176
3,235
44,997
89,424
87,047

$3.40

3.38

1.16

34.32%

$23.34

$151,271
153,088
6,400
40,302
86,229
80,441

$3.18

3.13

1.00

31.95%

$20.62

$135,892
139,015
3,000
36,040
79,298
57,330

$2.28

2.23

0.85

38.12%

$18.60

$118,481
120,719
1,150
32,864
72,978
52,084

$2.08

2.05

0.73

35.61%

$17.01

25,469,242

25,573,941

25,588,404

25,288,533

25,181,208

25,056,095

25,758,893

25,727,831

25,663,381

25,460,727

1.55%

13.51%

11.51%

3.19%

43.46%

0.09%

1.32%

507.42%

0.26%

1.76%

15.47%

11.38%

3.38%

44.70%

0.03%

1.25%

1.69%

16.51%

10.24%

3.43%

45.01%

0.13%

1.24%

1.29%

12.72%

10.15%

3.33%

46.11%

-0.01%

1.23%

1.29%

12.52%

10.30%

3.18%

48.22%

0.03%

1.26%

270.58%

667.40%

500.91%

653.31%

0.47%

0.19%

0.25%

0.20%

The following selected data has been taken from the Company’s consolidated financial statements. Refer to Lakeland Financial Corporation’s
Annual Report on Form 10-K for the year 2020 for a complete set of consolidated financials.

Condensed Consolidated Balance Sheets

(Years ended December 31)
(in thousands, except share data)

Assets

Cash and due from banks

Short-term investments

Total cash and cash equivalents

Securities available-for-sale (carried at fair value)

Real estate mortgage loans held-for-sale

Total loans

Less: Allowance for loan losses

Net loans

Land, premises and equipment, net

Bank owned life insurance

Federal Reserve and Federal Home Loan Bank stock

Accrued interest receivable

Goodwill

Other assets

Total Assets

Liabilities

Noninterest bearing deposits

Interest bearing deposits

Total deposits

Accrued interest payable and other liabilities

FHLB advances and other borrowings

Total Liabilities

Stockholders’ Equity

Common stock: 90,000,000 shares authorized, no par value

Retained earnings

Accumulated other comprehensive income (loss)

Treasury stock

Total Stockholders’ Equity

Total Noncontrolling Interest

Total Equity

Total Liabilities and Stockholders’ Equity

End of period shares issued

End of period shares outstanding

2020
$74,457

175,470

249,927

734,845

11,218

4,649,156

61,408

4,587,748

59,298

95,227

13,772

18,761

4,970

54,669

2019
$68,605

30,776

99,381

608,233

4,527

4,065,828

50,652

4,015,176

60,154

83,848

13,772

15,391

4,970

41,293

$5,830,435

$4,946,745

$1,538,331

3,498,474

5,036,805

50,946

85,500

5,173,251

114,927

529,005

27,744

(14,581)

657,095

657,184

$5,830,435

25,713,408

25,239,748

$983,307

3,150,512

4,133,819

44,826

170,000

4,348,645

114,858

475,247

12,059

(4,153)

598,011

598,100

$4,946,745

25,623,016

25,444,275

Report of Independent Registered Public Accounting Firm

Stockholders and the Board of Directors of Lakeland Financial Corporation, Warsaw, Indiana

See Annual Report on Form 10-K

We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheets
of Lakeland Financial Corporation as of December 31, 2020 and 2019, and the related consolidated statements of income, comprehensive income, changes in
stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2020 (not presented herein); and in our report dated February
23, 2021, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed
consolidated financial statements is fairly stated, in all material respects, in relation to the December 31, 2020 consolidated financial statements from which it has
been derived.

Crowe LLP, South Bend, Indiana, February 23, 2021

Condensed Consolidated Statements of Income

(Years ended December 31)
(in thousands, except for share and per share data)

Interest Income

Interest and fees on loans
Interest and dividends on securities

Taxable
Tax exempt

Interest on short-term investments
Total Interest Income

Interest Expense
Interest on deposits
Interest on FHLB advances and other borrowings

Total Interest Expense

Net Interest Income
Provision for loan losses

Net Interest Income After Provision for
Loan Losses
Non-interest Income

Wealth advisory and investment brokerage income
Service charges on deposit accounts
Loan and service fees
Merchant card fee income
Bank owned life insurance income
Interest rate swap fee income
Mortgage banking income
Net securities gains (losses)
Other income

Total Non Interest Income

Non-interest Expense

Salaries and employee benefits
Occupancy and equipment expense
Data processing fees and supplies
Other expense

Total Non Interest Expense

Income Before Income Tax Expense

Income tax expense

Net Income

BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
BASIC EARNINGS PER COMMON SHARE
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
DILUTED EARNINGS PER COMMON SHARE

2020
$177,185

2019
$197,684

2018
$182,265

6,973

8,577

368

8,909

7,127

1,490

9,717

6,079

909

193,103

215,210

198,970

29,342
753
30,095

163,008
14,770
148,238

9,138
10,110
10,085
2,408
2,105
5,089
3,911
433
3,564
46,843

49,413
11,617
11,864
18,311

91,205

103,876
19,539
$84,337

25,469,242
$3.31
25,573,941
$3.30

57,148
3,015
60,163

155,047
3,235
151,812

8,522
15,717
9,911
2,641
1,890
1,691
1,626
142
2,857
44,997

48,742
10,816
10,407
19,459

89,424

44,913
2,786
47,699

151,271
6,400
144,871

7,802
15,831
9,291
2,461
1,244
475
1,150
(50)
2,098
40,302

47,645
10,392
9,685
18,507

86,229

107,385
20,338
$87,047

25,588,404
$3.40
25,758,893
$3.38

98,944
18,533
$80,411

25,288,533
$3.18
25,727,831
$3.13

See Annual Report on Form 10-K

Corporate Information

Nature of Business
Lakeland Financial Corporation is a $5.8 billion bank
holding company located in Warsaw, Indiana. Lake City
Bank, its single bank subsidiary, is the sixth largest bank
headquartered in the state and the largest bank 100%
invested in Indiana. Lake City Bank operates 50 offices in
Northern and Central Indiana, delivering technology-driven
and client-centric financial services solutions to individuals
and businesses.
Headquarters
Lakeland Financial Corporation
202 E Center Street
Warsaw, IN 46580
(574) 267-6144
(800) 827-4522
lakecitybank.com
Virtual Annual Meeting
Tuesday, April 13, 2021
4:30 pm eastern
Common Stock Listing
Lakeland Financial Corporation common stock is traded on
the Nasdaq Global Select Market under the symbol “LKFN.”
Market Makers
Robert W. Baird & Co. Incorporated
BofA Securities, Inc.
Cantor Fitzgerald & Co.
Citadel Securities LLC
Cowen and Company, LLC
Canaccord Genuity Inc.
Cannacord Genuity LLC.
Citadel Derivatives Group LLC
D.A. Davidson & Co.
G1 Execution Services, LLC
Goldman, Sachs & Co. LLC
GTS Securities LLC
Janney Montgomery Scott Inc.
IMC Financial Markets
Jefferies LLC
Keefe, Bruyette & Woods, Inc.
Keybanc Capital Markets Inc.
Maxim Group LLC
Morgan Stanley & Co. LLC
OTA LLC
VIRTU Americas LLC
Piper Sandler & Co.
Puma Capital, LLC
Raymond James & Associates, Inc.
RBC Capital Markets, LLC
SG Americas Securities, LLC
Two Sigma Securities, LLC
Stephens, Inc.
Susquehanna Securities
Stifel, Nicolaus & Company, Incorporated
Susquehanna Financial Group, LLP
UBS Securities LLC
Wall Street Access
Wells Fargo Securities, LLC
Wolverine Securities, LLC
Latour Trading LCC

Stock Transfer Agent and Registrar
American Stock Transfer and Trust Company
6201 15th Avenue
Brooklyn, NY 11219
(800) 937-5449
(718) 236-4588 fax
info@amstock.com
amstock.com
Dividend Reinvestment and Stock
Purchase Plan
Lakeland Financial Corporation offers stockholders a
convenient way to increase their investment through the
Lakeland Financial Dividend Reinvestment and Stock Purchase
Plan. Under the plan, investors can elect to acquire Lakeland
Financial shares in the open market by reinvesting dividends
and through optional cash payments. Lakeland Financial
absorbs the fees and brokerage commissions on shares
acquired through the plan. To obtain a plan prospectus and
authorization form, call Tina Rensberger at (800) 827-4522. The
plan prospectus is also available on the company’s website at
lakecitybank.com.
Direct Deposit of Dividends
The direct deposit program, which is offered at no charge,
provides for automatic deposit of quarterly dividends directly to
a checking or savings account. For information regarding this
program, call Tina Rensberger at (800) 827-4522.
Form 10-K and Other Financial Reports
The company maintains a website at lakecitybank.com. The
company makes available free of charge on this site its annual
report on Form 10-K, quarterly reports on Form 10-Q, current
reports on Form 8-K and other reports filed or furnished
pursuant to Section 13(a) or 15(d) of the Exchange Act as
soon as reasonably practicable after it electronically files such
material with, or furnishes it to, the Securities and Exchange
Commission. The company will also provide copies of its filings
free of charge upon written request to:
Lakeland Financial Corporation
Attn: Investor Relations
PO Box 1387
Warsaw IN 46581-1387
Corporate Governance
Lakeland Financial Corporation corporate governance
documents are available on the company’s website at
lakecitybank.com or may be obtained in print form by
contacting Tina Rensberger at (800) 827-4522.
Independent Registered Public
Accounting Firm
Crowe LLP
330 E Jefferson Boulevard
PO Box 7
South Bend, IN 46624-0007
Corporate Counsel
Barack Ferrazzano Kirschbaum & Nagelberg LLP
200 W Madison Street
Suite 3900
Chicago, IL 60606

Lake City Bank Officers

Management Committee
David M. Findlay
President &

Chief Executive Officer

Michael E. Gavin
Executive Vice President

Chief Credit Officer

Lisa M. O’Neill
Executive Vice President
Chief Financial Officer

Eric H. Ottinger
Executive Vice President

Chief Commercial Banking Officer

Assistant Vice President
Holly A. Davis
Corbin J. Holtsberry
Kelsey M. Jenkins
Cari J. Juillerat
Kris J. Kerlin
Sara B. Millspaugh
Kevin R. Poe
Nathan R. Poe
Stacy M. Richardson
Robin R. Ritchie

Officer
Luke C. Mungovan
Elizabeth A. Schmidlin
Virginia E. Wirt

Kristin L. Pruitt
Executive Vice President

Chief Administrative Officer

Consumer & Home Loans
Senior Vice President
Kirtus D. Murray

Kyra E. Clark
Senior Vice President

Chief Human Resources Officer

J. Rickard Donovan
Senior Vice President
General Counsel

Stephanie R. Leniski
Senior Vice President

Chief Retail Banking Officer

Jonathan P. Steiner
Senior Vice President

Chief Wealth Advisory Officer

Brokerage
Vice President
Scott M. Hartman
Adam C. Johnston

Officer
Greg L. Emmack
Zachary A. Fiandt
Lori A. Richcreek

Commercial Banking
Senior Vice President—Regional
Manager
Todd A. Bruce
Joseph F. Kessie
William R. Redman
J. Chad Stoltzfus
Camalyn M. Treadway

Vice President
Ronald L. BonDurant
Gregory C. Brown
Brian D. Burrell
Nathan R. Conley
Amy M. Counts
Grant N. Daily
David E. Davis
John F. Dietzen
David S. Frey
Chad A. Glassburn
Keith B. Goodman
Ryan L. Hart
Matthew J. Highbarger
Ryan J. Hoffman
Rodney B. Hooley
Karese E. Kitch
Gregory W. Lentz
Cory E. McClarnon
Patricia T. McNarney
Gavin S. Miller
Everett L. Nifong
Cameron V. Plew
Michael J. Ryan
Timothy M. Schlichte
D. Andrew Skaggs
Eric J. Steenman
Nicholas A. Toney
Steven J. Troike
Marshall C. Weadick
Christopher W. Wiggins
Amber M. Wolfer

Vice President
Denise M. Brennan
Sabrina N. Brown
Scott B. Bucher
Holly N. Clevenger
Glenn A. Goudey
Jodi L. Hammond
Jeffery W. Krusenklaus
W. John Pritz
Mark R. Rensner
Sue L. Sands

Assistant Vice President
Chad J. Clinton
John J. (J.J.) Foster
Anna A. Jimenez
Sarah J. Miller-Bontrager
Todd E. Pequignot
Amanda M. Tom

Officer
Ashley R. Hite
Susan R. McClanahan

Corporate & Institutional Services
Senior Vice President
Douglas R. Samuels

Vice President
Anna N. Corkill
Melanie A. McIntyre
Sheena L. White
Tabitha A. Williamson

Assistant Vice President
Michelle L. Harris

Officer
Tiffany R. Peterson
Grant R. Toney

Credit Administration
Senior Vice President
Kimberly A. Hooley
Donald J. Robinson-Gay

Vice President
Ronald E. Cotton
Amanda R. Ellsworth
Cynthia J. Gianneschi
Bradford S. Grabow
Judd P. McNally
Benjamin A. Rice

Assistant Vice President
David J. Curry
Justin T. Hayes
Megan E. Ottinger
Daniel M. Sloan
Matthew R. Smith
Aaron T. Wood
Jeffrey L. Wyckoff

Officer
Joseph D. Burtnette
Bridget M. Camden
Seth M. Greiner

Executive Administration
Officer
Tina A. Rensberger

Officer
Megan L. Sutter
Justin Taylor

Risk Management
Senior Vice President
Matthew D. VanDeWielle

Vice President
Teresa A. Bartman
Gloria J. Crawford
Jeannine P. Draper Cooley
Dianne C. Harris
Candy A. Little
Amanda M. Longmire
Kyle G. Schmidt

Assistant Vice President
Kristin D. Brown
Aaron T. Connell
Eric D. Neuenschwander
Victoria L. Starr

Officer
Austin L. Bair
Wendy N. Brown
Hilda E. Cantu
Kristina R. Kiracofe
Kimberly A. Knoerzer
Dakotah B. Lantz
Ashley L. Pluta

Technology Services
Senior Vice President
Angela K. Ritchey

Vice President
Joanie L. Foreman
George H. Goodlink
Jolene D. Howard
Christopher D. Merrill
Donna J. Wolfe

Assistant Vice President
Lisa M. Bicknese
Jean A. Ciriello
Lisa S. Fitzgerald
Michele R. Ganser
Jill E. Garber
R. David Hume
Scot A. Karbach
Evan R. Kehr
Kimberly K. Mattke
Sean P. Raver
Melissa S. Rupe
Diane M. Wirth

Officer
Jordan M. Bell

Wealth Advisory Group
Senior Vice President
Andrew R. Haddock
James D. Westerfield

Vice President
Randall J. Crouch
Richard A. Delks
Michelle L. Kindler
Jennifer I. King
Lisa A. Mansberger
Peggy L. Michel
Benjamin D. Shively
Reneta U. Thurairatnam

Assistant Vice President
Steven B. Burnside
Leslie E. Rohrer

Officer
Deborah R. Cataldo

Finance & Treasury
Senior Vice President
Jennifer M. Hurford—Treasurer
Brok A. Lahrman—Chief Accounting
Officer

Vice President
Melissa D. Davison
Brian M. Lamb
Ryan D. Neese

Assistant Vice President
Stacy L. Price
Becka J. Turnbow
Beth A. Weber

Officer
Samantha D. Ducey

Marketing
Vice President—Manager
Mary S. Horan

Vice President
Cindy A. Bateman

Assistant Vice President
Caitlin E. Steiner

Operations
Senior Vice President
Lisa A. Fulton

Vice President
Lili A. Dailey
Shannan L. Hepler
Jan R. Martin
Eric D. Wagoner

Assistant Vice President
Leslie R. Baker
Sherri L. DiRico
Tana J. Johnson
Miranda R. Jordon
Karla J. Kroll
Natalie M. Ousley

Officer
Susan K. Hayes
Christine M. Himes
Brittney C. Hollopeter
Jennifer R. Kooistra
Katrina L. Mills
Cynthia L. Montel
Jennifer L. Mosier

People Development
Vice President
Alice G. Hitchcock
Kathleen M. Keirn
Tori L. Platt

Assistant Vice President
Ana Karina Cervantes
Rhonda K. Frank
Mary A. Lepird

Officer
Alma R. Jimenez
Brianna D. Kreczmer

Property Management
Vice President
Rick Hatcher

Officer
Richard A. Hoover

Retail Banking
Senior Vice President—Retail Banking
Regional Manager
Bruce A. Wright

Vice President—Retail Banking
Regional Manager
Melissa J. Blosser
Karen A. Francis
Sara B. Hill
Pamela F. Messmore
Margaret A. Waddell

Lake City Bank Offices

Akron
Argos
Auburn
Bremen
Columbia City
Concord
Elkhart Beardsley
Elkhart East

Elkhart Northwest
Fishers
Fort Wayne Downtown

Fort Wayne Jefferson
Fort Wayne North
Fort Wayne Northeast
Fort Wayne Southwest
Goshen Downtown
Goshen South

Granger
Greenwood
Huntington
Indianapolis Clearwater
Indianapolis Downtown
Indianapolis Michigan Road
Indianapolis North

Jimtown
Kendallville
LaGrange
Ligonier Downtown
Ligonier South
Medaryville
Mentone

Middlebury
Milford
Mishawaka
Nappanee
North Webster
Pierceton
Plymouth
Rochester
Shipshewana
Silver Lake
South Bend Downtown

South Bend Northwest
Syracuse
Warsaw Downtown
Warsaw East
Warsaw North
Warsaw West
Winona Lake

L. Jane Murphy
Kimberly K. Vermillion
Rebekah K. Hefty
Sonia R. Teske
Carolyn M. Ross
Andrea R. Bowers
Rebecca L. Miller
Phillip G. Ensley
Clayton J. Bright
Emily E. Wold
Dana L. Hess
Kristi L. Manwaring
Bruce A. Wright
Robert J. Savage
Steve D. Schumacher
Philip W. Dwire, Jr.
Amy M. Weisman
Angela M. Daly
Rosa M. Alba
Margaret A. Waddell
Kathryn A. Smith
Joseph P. Waltermann
Paula J. Whiting
Dereck L. Stinson
Jody M. Meyer
Terry L. Bradley
Sara B. Hill
Ashley A. Gott
Alexandra L. Mitchell
Barbara E. Keene
Mareen L. Barton
Lori I. Cunningham
Jana L. Miller
Karen S. Scott
Karen A. Francis
Kimberly S. Orr
Lindsay N. Stanifer
Cheryl L. Luke
Brandon Prince
Katina A. Stephenson
Brenda S. Peterson
Kelli-Anna Cook
Carol D. Brown
Penny S. Ramsey
Jennifer M. Wilson
Sandra A. Nelson-Rowland
Melissa J. Blosser
Christina J. Myer
Mark A. Berta
Kimberly K. Strawbridge
Shelly R. Kammerer
Jennifer M. Orr
Pamela F. Messmore
Kathleen Madden
Sheryl L. Harlan

Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Retail Banking Officer
Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Assistant Retail Banking Officer
Retail Banking Officer
Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Senior Vice President, Regional Manager
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Vice President, Regional Manager
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Vice President, Regional Manager
Assistant Retail Banking Officer
Retail Banking Officer
Vice President, Retail Banking Officer
Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Vice President, Regional Manager
Assistant Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Retail Banking Officer
Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Vice President, Regional Manager
Assistant Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Regional Manager
Retail Banking Officer
Assistant Vice President, Retail Banking Officer

Forward Looking Statement
This document (including information incorporated by reference) contains, and future oral and written statements of the Company and its management may contain,
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans,
objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the
Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,”
“plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this document, including forward-looking
statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.
A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-
looking statements. These factors include, among others, the following: (i) the strength of the local and national economy; (ii) the economic impact of future terrorist attacks
and threats or acts of war and the response of the United States to any such attacks or threats; (iii) changes in state and federal laws, regulations and governmental policies
concerning the Company’s general business; (iv) changes in interest rates and prepayment rates of the Company’s assets; (v) increased competition in the financial services
sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the loss of
key executives or employees; (viii) changes in consumer spending; (ix) unexpected results of acquisitions; (x) unexpected outcomes of existing or new litigation involving the
Company; and (xi) changes in accounting standards and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue
reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect
the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

ANNUAL

REPORT

(888) 522-2265
LAKECITYBANK.COM

LAKELAND FINANCIAL CORPORATION