Lakeland Financial Corporation Annual Report 2021

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FY2021 Annual Report · Lakeland Financial Corporation

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(888) 522-2265

LAKECITYBANK.COM

2021 ANNUAL REPORT

LAKELAND FINANCIAL CORPORATION

We are an organization driven
by execution and results

strong performance for our shareholders. Speaking of

shareholders, our performance over the last 20 years has

produced a total return of 3,198%. In addition, our stock

price increased 50% during 2021 in a very challenging

market. We once again outperformed two key banking

indexes as the Nasdaq Bank Index and the KBW Bank

Index were up 40% and 35%, respectively.

These results are a testament to the disciplined focus of the

entire Lake City Bank team. We are an organization driven

by execution and results. Once again, we’ve proven that

our simple business model works well for our employees,

our clients, our communities, and our shareholders.

We enter 2022 with great optimism and confidence in the

core relationship businesses within Lake City Bank. During

the last two years, we have experienced unprecedented

growth that has challenged our management of the

balance sheet and necessitated a level of flexibility and

adaptability by the entire Lake City Bank team. There was

nothing easy about it as we continued to manage through

the COVID pandemic while at the same time maintaining

our disciplined focus on the future. Community banking

once again shined in 2021 and our business model

continues to be highly relevant and competitive, yet we

are under constant pressure from both bank and non-bank

competitors. This requires an intense curiosity about the

rapidly evolving role of technology in our industry. Being

good enough simply isn’t acceptable. We’ve got to ensure

that we continue to innovate and evolve our products and

services to provide our clients with technology-driven

solutions to their financial needs. We took a significant

step forward in 2021 with Lake City Bank Digital, a truly

transformational change in our mobile and internet banking

services. With Lake City Bank Digital, we have reinvented

our digital platform with a focus on innovative solutions that

are built around our clients’ needs.

Lake City Bank Shareholders, Clients and
Community Partners:

The Lake City Bank team is exceptionally proud of our

performance in 2021. For starters, we reported record

net income of $95.7 million, an increase of 14% versus

2020. We’ve reported record net income in 31 of the

last 33 years, with the Great Recession in 2009 and the

COVID pandemic in 2020 representing the only years in

which we did not have record net income performance.

It’s a three-decade track record of financial success that

We proved to be a resilient organization again in 2021.

reflects our consistent and stable ability to generate

We were happy to fully transition back to our workplaces

2021 ANNUAL RE POR T

in April and spent the balance of 2021 focused on

to be together, but challenges remain as our world

completing our Strategic Initiatives, which are a

continues to test our culture. We’re doing everything we

critical part of our annual planning process. Their

can to protect and evolve the culture of the organization

completion is at the core of our ability to move the

because culture has been and is central to our success,

business forward on everything from technology to

and we still believe that being together is the best path

branch facilities.

to long term success.

On the branch front, we were delighted to open

One thing that won’t be boring in 2022 is Lake City

our 51st office in Elkhart High School as part of our

Bank’s 150th Anniversary. In May of 1872, a group of

partnership with Elkhart Community Schools. The

community leaders came together and decided that

office is led by a Lake City Bank retail banker and

Warsaw, Indiana, a town of less than 2,000 residents,

staffed by high school students who are enrolled in

needed a fourth bank. As a result, Lake City Bank was

the school’s Business and International Relations

founded. That’s right, the same name has been on our

School of Study. Having students as part of our

doors for 150 years. Throughout 2022, we’ll proudly

branch team, and as our customers, will provide

celebrate our sesquicentennial and the wonderful

us with a unique and inventive way to gain real-life

impact that this community bank has had on the Indiana

intelligence about what the next generation is looking

communities we are lucky to serve.

for in financial services. It’s a fully digital office that

will serve as an innovative place to test our future

technology and ensure that we are prepared to serve

the next generation of bank clients.

We were excited that our clients returned to our

branch offices in 2021. While technology is playing

an increasing role in our relationships with clients,

it’s clear that face-to-face banking is still important.

Yet we know that the branch of the future must

be a different place to interact with our clients

and communities. As detailed on page 16, we’re

partnering with our client 16 Tech in Indianapolis

to bring a branch to the AMP, which is in HqO, the

innovation hub at the heart of the 16 Tech Innovation

District. By fostering collaboration and community,

the AMP serves as a springboard for Indy’s next

generation of culinary talent and entrepreneurship.

As with the Elkhart High School branch, we’ll bring
an entirely new branch concept to the AMP—one
that is designed to appeal to the emerging generation

of clients. We look forward to exploring the future

while remaining connected to our past in our offices

throughout Central and Northern Indiana.

We’re hopeful that there’s some boredom in 2022.

That may sound uninspiring, but the last two years

have tested Lake City Bank, its clients, and its

communities in ways we could never imagine, as it did

nearly every business in our communities. We entered

2022 committed to continuing our historical success

and are off to a great start. Our workforce is happy

Community banking was once again at its best in 2021.

We have proven that our model of community banking

works. We have proven that respecting and caring for

each other matters. We have proven that our clients can

rely upon us in trying times. We have proven that our

culture can survive the most severe challenges. We’ve

demonstrated an incredible level of adaptability and

action. Lake City Bank has always been an execution-

oriented place, and that has been affirmed over and

over throughout this pandemic. We have become a

better organization through our response to this crisis

and we are excited for the future.

We are grateful for the partnerships we have with our

clients, employees, communities, and shareholders.

Thank you.

David M. Findlay
President and Chief Executive Officer

2021 ANNUAL REPOR T

MANAGEMENT COMMITTEE

Left to right:

Jonathan P. Steiner
Senior Vice President
Chief Wealth Advisory
Officer

Stephanie R. Leniski
Senior Vice President
Chief Retail Banking
Officer

Kristin L. Pruitt
Executive Vice President
Chief Administrative Officer

J. Rickard Donovan
Senior Vice President
General Counsel

David M. Findlay
President and Chief
Executive Officer

Kyra E. Clark
Senior Vice President
Chief Human Resources
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

In last year’s annual report, we shared with you that we had
formed the Diversity and Inclusion Task Force to affirm and
expand our commitment to this important initiative. 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. The task force is hard at work
developing and implementing actions that are designed to
ensure that we are dedicated to this movement for fairness as
racism and discrimination of any form are simply wrong. As we
write this report, the task force is finalizing an in-person Lake
City University course that every employee of the bank will

attend. Actions, not words will be the evidence of our success
on this front.

This leadership team averages 14 years of experience at Lake
City Bank and 28 years of total experience. Together, we
bring a passionate and enthusiastic leadership style to our
jobs. Simply put, we love what we do and are driven by the
mission statement of the bank, “Lake City Bank will be the
acknowledged and recognized leader in Indiana Community
Banking.” Every contact within our communities is a building
block to achieve this goal and we will relentlessly pursue it.

2021 ANNUAL RE POR T

BOARD OF DIRECTORS

Left to right:

Ronald D. Truex
Chairman
Creighton Brothers, LLC

Steven D. Ross
Owner
Ross and Associates

M. Scott Welch
Chief Executive Officer
Welch Packaging Group

Darrianne P. Christian
Civic Leader

Blake W. Augsburger
Founder and Chief
Executive Officer
LEA Professional

Emily E. Pichon
Chairman, ETP Asset
Holdings, Inc.
Officer and Director, Olive
B Cole Foundation and M E
Raker Foundation, Inc.

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

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

Robert E. Bartels, Jr.
Partner at Incedo LLC

Bradley J. Toothaker
President and CEO
Bradley Company
Managing Partner of
Great Lakes Capital
Development

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

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

The Lake City Bank board plays an important role on multiple

fronts. Strong corporate governance is at the core of the board’s

role. The board continues to actively engage and contribute

to our efforts on Environmental, Social, and Corporate

Governance (ESG) and diversity and inclusivity. They ensure

that management maintains its focus and efforts on these fronts

and effectively measures and reports on the central factors in

assessing the sustainability and societal impact we have on all

of our constituents. It’s important work.

At our 2022 annual meeting of shareholders, we will recognize
Dan Evans and Ron Truex upon their retirement from our
board. For 12 years, both Dan and Ron have brought informed,
experienced, and helpful voices into our boardroom. Dan’s
encyclopedic knowledge of our industry has been valued by
the board and management and Ron’s lifelong agribusiness
experience has proven to be incredibly valuable as we
continued to grow the sector. They have both delivered steady
and balanced perspectives. Thank you, Dan and Ron, for your
support and partnership inside and outside the boardroom.

2021 ANNUAL REPOR T

S
I
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A
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Conquest
Racing

E
C
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N
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20
14

2021 ANNUAL RE POR T

Eric Bachelart, President

Left to right:
Sara Hill, Vice
President,
Retail Regional
Manager; Eric
Bachelart,
President;
Melanie McIntyre,
Vice President,
Treasury
Management
Sales Officer;
Ryan Hart,
Vice President,
Commercial
Banking Officer

Think Indianapolis, and racing springs to mind.
But there’s more to racing in Indy than that event
each year at the end of May. 1991 Indy Lights
champion and Indianapolis 500 veteran Eric
Bachelart founded Conquest Racing in 1997 to
compete in North American open-wheel racing.
Today, Conquest Racing operates cars in the
Ferrari Challenge Series and the International
Motor Sports Association (IMSA) Prototype
Challenge. The Ferrari Challenge brings together
Ferrari owners who want to compete in top-level
sprint races on storied tracks around the world.
Conquest Racing prepares Ferraris to customer
specifications for racing, and provides the team
support for competing in the Challenge Series.
“It’s so exciting to give our Ferrari owners a
genuine race experience in such an iconic car,”

said Bachelart, President. Conquest Racing
began working with Lake City Bank and Sara
Hill, Vice President, Retail Regional Manager, in
2014. Fast forward to 2020, and Lake City Bank
stepped in to provide Conquest Racing with a
Paycheck Protection Program (PPP) loan quickly
and efficiently, when the company’s primary bank
did not. “Working with Sara and the Lake City
Bank team has made a definite difference for our
company,” Bachelart said. “We’ve been more than
satisfied, especially in terms of responsiveness.”
In fact, Lake City Bank is now Conquest Racing’s
primary bank, with commercial and real estate
loans, deposits and a range of technology
focused treasury management products. We call
that a win-win.

2021 ANNUAL REPOR T

D
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Williamsburg Marine &
Williamsburg Furniture

E
C
N
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T
N
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20
09

2021 ANNUAL RE POR T

Left to right: Gus Feiler, Chief Executive Officer; Lance Feiler,
President, Williamsburg Furniture; and Karen Weaver, General
Manager, Williamsburg Marine

Left to right:
Richard Delks,
Vice President,
Senior Wealth
Advisor; Karen
Weaver, General
Manager,
Williamsburg
Marine; Gus
Feiler, Chief
Executive
Officer; Lance
Feiler, President,
Williamsburg
Furniture;
Gavin Miller,
Vice President,
Commercial
Banking Officer

Williamsburg Marine is a wonderful COVID-19
success story. Founded in 2019 as a sister
company to Williamsburg Furniture, the company
took off when consumer needs changed in the
pandemic. Sheltering in place and working from
home translated to an increased market for
at-home recreation, including an uptick in the
pontoon boat market. Williamsburg Furniture,
which manufactures furniture and bedding for the
RV industry, pivoted to start Williamsburg Marine,
which manufactures seating for the boat industry,
with an emphasis on pontoon boats. Starting with
two employees in 2019, Williamsburg Marine has
grown to such a degree that it’s building a new
facility to expand operations, and Lake City Bank
has been a partner along the way. “We wouldn’t
be here without the bank,” said Gus Feiler, Chief

Executive Officer of Williamsburg Marine and
Williamsburg Furniture. “We started working with
Lake City Bank back in 2009, when other banks
were not willing to work with RV companies.
Our relationship works because the bank takes
time to understand all aspects of our business.”
Both companies and their principals use Lake
City Bank for lines of credit, commercial loans
and deposits, and technology-forward treasury
management products. They also rely on the bank
for personal banking and wealth management
services. “Our business has been getting bigger,
not smaller,” Feiler said. “Lake City Bank has
proven to be the best partner for our success.”

2021 ANNUAL REPOR T

N
O
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D
U
H

Pranger Enterprises LLC
& Hydronov LLC

E
C
N
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T
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20
10

2021 ANNUAL RE POR T

Left to right: Gabe Pranger, Owner and Chief Operating Officer; Nick
Pranger, Owner and Chief Executive Officer

Left to right:
Joe Kessie,
Senior Vice
President,
Commercial
South Regional
Manager; Tabitha
Williamson,
Vice President,
Treasury
Management
Sales Officer
and Operations
Manager; Gabe
Pranger, Owner
and Chief
Operating Officer;
Nick Pranger,
Owner and Chief
Executive Officer;
Sheena White,
Vice President,
Merchant and
Cardholder
Services Manager

When you see those beautifully packaged fresh
herbs and lettuce in the produce section at your
supermarket, you might not think “Aha! Commercial
mechanical systems,” but chances are those
systems are what brought the product to your
store. Pranger Enterprises, founded in 1964, installs
mechanical systems like process plumbing, fire
protection and HVAC systems for commercial
enterprises, and has grown in expertise and
technology to meet customer needs across a variety
of industries. Pranger’s background in plumbing
and piping led them to hydroponic production and
purchasing Hydronov, a company that offers leading
edge automation, design, equipment and installation
for hydroponic growing. Hydroponics, or growing
plants without soil, has been around for decades.
Hydronov has developed a commercial system for
greenhouses that uses Floating Raft Technology to
automatically move plants from seed to harvest in a
matter of weeks. At maturity, herbs and produce are
transferred to another automated line for harvest,
cleaning, packaging and shipping. This process
allows for clean, climate controlled growing and
up to 18 harvests each year. Without weather as a

factor, production can take place much closer to
markets, saving on transportation and energy costs,
and allowing products to get to market much fresher
than by conventional means. Pranger Enterprises
has worked with Lake City Bank since 2010,
using commercial lines of credit and term loans,
technology-forward treasury management products,
commercial deposits and merchant and credit card
services. “Lake City Bank has been our partner
for more than a decade now,” said Nick Pranger,
Owner and Chief Executive Officer. “We couldn’t
have grown in size and in new technologies without
the bank behind us.” In addition to its position as
an expert provider—from design to completion—of
complex commercial plumbing, piping, HVAC and
fire protection systems, Pranger, through Hydronov,
is designing and building hydroponic growing
systems all over the world. The Pranger Enterprises
and Lake City Bank teams are pictured at Eden
Valley Farms in Francesville, Indiana, which grows
herbs and lettuces for local outlets using a system
designed and built by Hydronov.

2021 ANNUAL REPOR T

N
E
H
S
O
G

Genesis
Products, LLC.

E
C
N
I
S
T
N
E
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C

20
16

2021 ANNUAL RE POR T

Left to right: Jon Wenger, President, Chief Executive Officer; Chris
Westerbeek, Chief Financial Officer

Left to right:
Anna Corkill,
Vice President,
Treasury
Management
Sales Officer;
Jon Wenger,
President,
Chief Executive
Officer; Chris
Westerbeek,
Chief Financial
Officer; Steve
Brown, Vice
President,
Commercial
Banking Officer

with our culture. But we have seen no lack in the
level of sophistication in the solutions it provides.”
Genesis has a commercial credit facility with
Lake City Bank, structured along with partners
the bank identified. In addition, Genesis uses the
bank’s technology-forward treasury management
products. “We’ve grown our company based on
our culture and an appetite for innovation,” said
Wenger. “Lake City Bank has proven itself a great
match to both.”

While Genesis Products, founded in 2002, serves
Fortune 200 companies across the country and
across a variety of industries, its story begins in
Northern Indiana creating better solutions for the
RV market. Expertise in high-volume commercial
lamination products led to growth in just-in-time
manufacturing, custom product development,
domestic outsourcing and supply chain
management. Genesis works with manufacturers
of all sizes across the RV, manufactured housing,
building materials, health care, office and
education, furniture, heavy truck industries, and
more. Genesis found a partner in Lake City Bank
in 2016. “We’ve been more than pleased with
Lake City Bank,” said Jon Wenger, President,
Chief Executive Officer. “The bank is a community
bank first and foremost, which meshes perfectly

2021 ANNUAL REPOR T

E
N
Y
A
W
T
R
O
F

Humane
Fort Wayne

E
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N
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20
20

2021 AN N U AL R EPO RT

Left to right: Tanya Gallo, Director of Operations with Luna; Jessica
Henry, Executive Director with Nancy Grace

Left to right, front:
Reneta Thurairatnam, Vice
President, Senior Wealth
Advisor and Humane
Fort Wayne treasurer
and board member
with Wicket; Nichole
Mendez, Assistant Retail
Banking Officer; Doug
Samuels, Vice President,
Treasury Management
Sales Officer; Beth
Squires, Development
Manager with Nancy
Grace
Back row: Melissa
Osborn, Pet Promises
and Community Outreach
Coordinator with
Thelma Lou; Marshall
Weadick, Vice President,
Commercial Banking
Officer; Jessica Henry,
Executive Director with
Keokuk; Tanya Gallo,
Director of Operations
with Luna; Jenny King,
Vice President, Personal
Trust Officer

Humane Fort Wayne has helped pets and people
find each other since 1956. The organization is
deeply rooted in the concept that pets thrive when
they’re in a safe and loving home, and, likewise,
people thrive along with animal companions.
Humane Fort Wayne connects pets with humans,
but more importantly the organization provides
resources that support pets and their owners
in a variety of ways, including spay/neuter and
wellness services, along with community outreach
programs across Northeast Indiana. The shelter
takes in dogs and cats from around the region,
evaluates and treats any health issues, and
prepares them for adoption, including spaying/
neutering and vaccinations. Animals stay at
the shelter or are placed in the Foster Program
until they find a home. In addition, Humane
Fort Wayne’s low-cost walk-in clinic offers
non-emergency wellness care, vaccinations,
and heartworm and flea care for both cats and

dogs. Outreach programs include a weekly
pet food pantry, and in-home services for pet
owners, as well as compassion fostering for
the pets of people in personal crisis. Lake City
Bank started working with Humane Fort Wayne
in 2020, when the bank stepped in to provide
a Paycheck Protection Program (PPP) loan
during the coronavirus pandemic. Since then,
the relationship has grown to include a line of
credit, technology-forward treasury management
products including Lake City Bank Digital, and
services from the bank’s Wealth Advisory Group.
“Even in this relatively short span of time, Lake
City Bank has proven to be the right partner for
us,” said Jessica Henry, Executive Director. “The
bank stepped in when we needed a PPP loan,
and our relationship has grown from there. They
really understand our mission and want to help us
achieve our goals.”

The furry friends in our pictures have been adopted by their forever (dare we say fur-ever?) families.

2021 ANNUAL REPOR T

S
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A
N
A
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D
N

16 Tech Community
Corporation

E
C
N
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T
N
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20
19

The 16 Tech Innovation District in Indianapolis,

established in 2015, is a catalyst for growth in the

region, and Lake City Bank has been a partner in the

initiative just about since its inception. The 50-acre

community in the Riverside District of downtown

Indianapolis is strategically located at the intersection

of Central Indiana’s top health care, academic and 13

corporate institutions. 16 Tech leverages its location

to foster collaboration that translates into innovation,

job creation and economic growth for the region and

beyond. The nonprofit 16 Tech Community Corporation

oversees the development district and helps extend

benefits like job creation and economic growth beyond

the district.

“16 Tech is committed to serving, supporting, and

working alongside our neighbors in the Near West,

Near Northwest and other nearby communities,

including the Riverside neighborhood,” said Bob Coy,

President and Chief Executive Officer.

16 Tech’s first building opened in 2020, home to the

Indiana Biosciences Research Institute, the Central

Indiana Corporate Partnership (CICP) and the Indiana

University School of Medicine. Expansion has

continued, even with slowdowns brought on by the

Bob Coy, President and Chief Executive Officer

2021 ANNUAL RE POR T

Left to right: Bill
Redman, Senior Vice
President, Commercial
Indianapolis Regional
Manager; Bob Coy,
President and Chief
Executive Officer; John
Dietzen, Vice President,
Commercial Banking
Officer

COVID-19 pandemic, to include more than $130

of Indianapolis. As part of the 16 Tech community,

million invested in buildings and infrastructure.

we think this connection is critical to both of these

Also open is HqO, the district’s innovation hub,

community partners.”

Lake City Bank’s partnership began with a multi-year

pledge of support. The bank was instrumental in

structuring initial financing, followed by collaboration

with 16 Tech and other investors to identify additional

funding and tax credit opportunities. Lake City Bank

also plans to build a branch office in the AMP.

which is home to the AMP (a food hall and artisan

marketplace), Machyne Makerspace, and flexible

office space. In 2021, the district welcomed more

than 50 companies, including biotech and tech

startups, venture studios, and three institutes

focused on the life sciences, data analytics and

advanced manufacturing sectors, six universities

and 21 restaurants and retail establishments.

Together these organizations employ more than 500

people in the district.

“Joining efforts to develop 16 Tech was a natural

fit for Lake City Bank,” said David M. Findlay,

President and Chief Executive Officer. “We view

our partnership with 16 Tech, and our presence on

their expanding campus, as a natural link between

our efforts with the Flanner House to improve the

quality of life for residents on the Northwest side

2021 ANNUAL REPOR T

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 Credit 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 Credit Losses*
Noninterest Income
Noninterest 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
Credit Loss Reserve to Total Loans
Credit Loss Reserve to Nonperforming Loans
Nonperforming Assets to Total Loans

2021
$6,557,323
5,735,407
4,287,841
67,773
704,906

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

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

$6,153,780
5,906,640
1,068,325
4,421,094

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

$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

$5,357,284
3,686,112
3,761,520
674,637

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

$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

$178,088
181,675
1,077
44,720
104,287
95,733

$3.76

3.74

1.36

36.36%

$27.65

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

$3.31

3.30

1.20

36.36%

$25.85

$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

25,475,994

25,469,242

25,588,404

25,288,533

25,181,208

25,620,105

25,573,941

25,758,893

25,727,831

25,663,381

1.56%

14.19%

10.96%

3.07%

46.81%

0.09%

1.58%

1.55%

13.51%

11.51%

3.19%

43.46%

0.09%

1.32%

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%

449.13%

507.42%

270.58%

667.40%

500.91%

0.36%

0.26%

0.47%

0.19%

0.25%

2021 AN N U AL R EPO RT

*Beginning January 1, 2021 calculation is based on the current expected credit loss methodology.
Prior to January 1, 2021 calculation was based on the incurred loss methodology.

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 2021 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 credit 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

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

2021
$51,830

631,410

683,240

1,398,558

7,470

4,287,841

67,773

4,220,068

59,309

97,652

13,772

17,674

4,970

54,610

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

$6,557,323

$5,830,435

$1,895,481

3,839,926

5,735,407

42,010

75,000

5,852,417

120,615

583,134

16,093

(15,025)

704,817

704,906

$6,557,323

25,777,609

25,300,793

$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

See Annual Report on Form 10-K.
*Beginning January 1, 2021 calculation is based on the current expected credit loss methodology. Prior to January 1, 2021 calculation was based on the incurred loss methodology.

Report of Independent Registered Public Accounting Firm

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

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, 2021 and 2020, 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, 2021 (not presented herein); and in our report dated February
23, 2022, 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, 2021 consolidated financial statements from which it has
been derived.

Crowe LLP, South Bend, Indiana, February 23, 2022

2021 ANNUAL REPOR T

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 credit losses*

Net Interest Income After Provision for
Credit Losses
Noninterest 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 Noninterest Income

Noninterest Expense

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

Total Noninterest Expense

Income Before Income Tax Expense

Income tax expense

Net Income

2021
$170,551

2020
$177,185

2019
$197,684

9,086

13,033

549

193,219

14,827
304
15,131

178,088
1,077
177,011

10,725
10,608
11,922
3,023
2,467
1,035
1,418
797
2,725
44,720

57,882
11,258
12,674
22,473

104,287

117,444
21,711
$95,733

6,973

8,577

368

8,909

7,127

1,490

193,103

215,210

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

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

107,385
20,338
$87,047

BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

25,475,994

25,469,242

25,588,404

BASIC EARNINGS PER COMMON SHARE

$3.76

$3.31

$3.40

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

25,620,105

25,573,941

25,758,893

DILUTED EARNINGS PER COMMON SHARE

$3.74

$3.30

$3.38

2021 AN N U AL R EPO RT

Condensed Consolidated Statements of Income

Corporate Information

Nature of Business
Lakeland Financial Corporation is a $6.6 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 52 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
Annual Meeting
Live Webcast
Tuesday, April 12, 2022
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
Canaccord Genuity Inc.
Robert W. Baird & Co. Incorporated
Boenning & Scattergood, Inc.
Cantor Fitzgerald & Co.
Citadel Securities LLC
Cowen and Company, LLC
Canaccord Genuity LLC.
Citadel Derivatives Group Llc
D.A. Davidson & Co.
G1 Execution Services, LLC
Goldman, Sachs & Co. LLC
GTS Securities LLC
HRT Financial LLC
IMC Financial Markets
StoneX Financial Inc.
Janney Montgomery Scott Inc.
Jefferies LLC
Keefe, Bruyette & Woods, Inc.
Keybanc Capital Markets Inc.
SVB Leerink LLC
Maxim Group LLC
Bofa Securities, Inc.
Morgan Stanley & Co. LLC
VIRTU Americas LLC
Two Sigma Securities, LLC
RBC Capital Markets, LLC
SG Americas Securities, LLC
Two Sigma Securities, LLC
Stephens, Inc.
Susquehanna Securities
Stifel, Nicolaus & Company, Incorporated
Susquehanna Financial Group, LLP
Two Sigma Securities, LLC
UBS Securities LLC
Virtu Americas LLC
Wall Street Access
William Blair
Wells Fargo Securities, LLC
Latour Trading LLC

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

2021 ANNUAL REPOR T

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

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

Brokerage
Vice President
Scott M. Hartman
Adam C. Johnston

Officer
Greg L. Emmack
Eric Frappier

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
Steven L. Brown
Brian D. Burrell
Nathan R. Conley
David E. Davis
John F. Dietzen
David S. Frey
Chad A. Glassburn
Keith B. Goodman
Ryan L. Hart
Matthew J. Highbarger
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

Assistant Vice President
David J. Curry

Holly A. Davis
Corbin J. Holtsberry
Kelsey M. Jenkins
Cari J. Juillerat
Kris J. Kerlin
Sara B. Millspaugh
Luke C. Mungovan
Kevin R. Poe
Stacy M. Richardson
Robin R. Ritchie
Elizabeth A. Schmidlin

Officer
Virginia E. Wirt

Consumer & Home Loans
Senior Vice President
Kirtus D. Murray

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

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

Officer
Sandra F. Medina

Corporate & Institutional Services
Vice President
Anna N. Corkill
Melanie A. McIntyre
Douglas R. Samuels
Sheena L. White
Tabitha A. Williamson

Assistant Vice President
Michelle L. Harris
Tiffany R. Mudd

Officer
Grant R. Toney

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

Vice President
Amanda R. Ellsworth
Cynthia J. Gianneschi
Bradford S. Grabow
Justin T. Hayes
Judd P. McNally
Benjamin A. Rice
Matthew R. Smith

Assistant Vice President
Bridget M. Camden
Megan E. Ottinger
Christoffer C. Penny
Daniel M. Sloan
Aaron T. Wood
Jeffrey L. Wyckoff

Officer
Joseph D. Burtnette
Victoria A. Fulton
Seth M. Greiner
Kyle A. Grimm
Trent W. Koble
Troy D. Tom
Thomas B. Weimer

2021 AN N U AL R EPO RT

Executive Administration
Officer
Tina A. Rensberger

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

Vice President
Melissa D. Davison
David J. Hughes
Ryan D. Neese
Stacy L. Price

Assistant Vice President
Samantha D. Ducey
Crystal A. Vander Bie
Beth A. Weber

Marketing
Vice President
Mary S. Horan

Assistant Vice President
Caitlin E. Steiner
Luke A. Weick

Operations
Senior Vice President
Lisa A. Fulton

Vice President
Michele R. Ganser
Shannan L. Hepler
Scot A. Karbach
Michelle L. Jacobsen
Jan R. Martin
Eric D. Wagoner
Donna J. Wolfe

Assistant Vice President
Lisa M. Bicknese
Sherri L. DiRico
Jill E. Garber
Miranda R. Jordon
Karla J. Kroll
Katrina L. Mills
Natalie M. Ousley
Melissa S. Rupe
Leslie R. Rutherford
Diane M. Wirth

Officer
Jennifer A. Bradley
Kelly S. Gochenour
Susan K. Hayes
Christine M. Himes
Brittney C. Hollopeter
Jennifer R. Kooistra
Cynthia L. Montel
Jennifer L. Mosier
Michele I. Myers
Maritza Patino
Carla A. Snyder

People Development
Vice President
Alice G. Hitchcock
Mary A. Lepird
Tori L. Platt

Assistant Vice President
Ana Karina Cervantes
Rhonda K. Frank
Brianna D. Kreczmer

Officer
Kristen J. Heiman
Marissa Rico

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
Kimberly K. Strawbridge

Retail Administration
Vice President
Lisa S. Fitzgerald

Assistant Vice President
Jean A. Ciriello

Officer
Megan L. Sutter
Justin Taylor

Risk Management
Senior Vice President
Matthew D. VanDeWielle

Vice President
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
Becka J. Turnbow
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
Darrin M. McLaughlin

Vice President
Joanie L. Foreman
Christopher D. Merrill

Assistant Vice President
Kimberly K. Mattke

Officer
Jordan M. Bell
Matti E. Gray
Andrew D. Lockridge

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

Vice President
Robert M. Congdon
Lili A. Dailey
Richard A. Delks
Kevin D. Hampton
Michelle L. Kindler
Jennifer I. King
Lisa A. Mansberger
Scott R. Tapley
Reneta U. Thurairatnam

Assistant Vice President
Steven B. Burnside
Leslie E. Rohrer

Officer
Deborah R. Cataldo
Adam L. Esterline

Lake City Bank Officers

Lake City Bank Offices

Akron
Argos
Auburn
Bremen
Columbia City
Concord
Elkhart Beardsley
Elkhart Downtown

Elkhart East

Elkhart High School
Elkhart Northwest
Fishers
Fort Wayne Downtown

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

Grace Village
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
Melissa J. Blosser
Christina J. Myer
Phillip G. Ensley
Clayton J. Bright
Emily E. Wold
Emily E. Wold
Dana L. Hess
Bruce A. Wright
Nichole L. Mendez
Kristi L. Manwaring
Steve D. Schumacher
Andrew P. Dance
Amy M. Weisman
Angela M. Daly
Kimberly K. Strawbridge
Alma R. Jimenez
Sheryl L. Harlan
Kathryn A. Smith
Joseph P. Waltermann
Paula J. Whiting
Dereck L. Stinson
Jody M. Meyer
Terry L. Bradley
Sara B. Hill
Ashley A. Gott
Codie N. Gluchowski
Brooke E. Bentley
Mareen L. Barton
Lori I. Cunningham
Jana L. Miller
Karen S. Scott
Karen A. Francis
Kimberly S. Orr
Lindsay N. Stanifer
Brooke C. Williams
Brandon Prince
Katina A. Stephenson
Brenda S. Peterson
Kelli-Anna Cook
Carol D. Brown
Penny S. Ramsey
Kourtney M. Gray
Sandra A. Nelson-Rowland
Alexandra L. Mitchell
Mark A. Berta
Brittni A. Kuhn
Shelly R. Kammerer
Jennifer M. Flinn
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
Assistant Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Regional Manager
Assistant Retail Banking Officer
Vice President, Retail Banking Officer
Assistant Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Senior Vice President, Regional Manager
Assistant Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Regional Manager
Assistant Retail Banking Officer
Assistant 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
Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
Vice President, Regional Manager
Assistant Retail Banking Officer
Retail Banking Officer
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
Retail Banking Officer
Assistant Vice President, Retail Banking Officer
Vice President, Retail Banking Officer
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
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
Vice President, Retail Banking Officer
Vice President, Regional Manager
Assistant Vice President, 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.

2021 ANNUAL REPOR T

(888) 522-2265
LAKECITYBANK.COM

2021 ANNUAL REPORT

LAKELAND FINANCIAL CORPORATION