Lakeland Financial Corporation Annual Report 2023

FY2023 Annual Report · Lakeland Financial Corporation

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Annual Report

(888) 522-2265

LAKECI TYBANK. CO M

LAKELAND FINANCIAL CORPORATION

Letter to Shareholders

The exceptional strength of our capital structure and our
extensive liquidity access provided a stable foundation
to navigate the pressures of 2023. We view our fortress
balance sheet as critical to our ability to fuel the economic
growth and expansion of our Indiana communities.
Across the board, our capital ratios significantly exceed
the regulatory thresholds that define a well-capitalized
financial institution and we will continue to focus on
creating quality growth to further build capital. Over the
past 32 years, our successful organic growth strategy has
increased tangible book value per share by an unparalleled
compounded annual growth rate of 10%. This track record
reflects our consistent operating performance and strong
financial results over a very long period of time.

The greatest driver of our ability to continue our organic
growth strategy is the meaningful relationships we develop
with our clients, prospects, centers of influence and
community leaders. In 2023, we recommitted to an active
and engaged business development program and are
happy to report that total business development calling
increased by 30% in 2023 versus 2022. Importantly,
prospect calling was up 51% for the year. Prospect calling
is the most important building block for future market
share growth. Client calling was up 18% and represented
critical face-to-face relationship building. It’s the life blood
of our balance sheet growth and we are very good at it.
Joint calling, which brings together our client contact
teams from different business lines, was up a whopping
302% in 2023. This joint calling results in a more focused
and targeted business development effort. With these
great calling efforts, we are well positioned to continue our
organic growth well into the future.

These efforts led to dynamic balance sheet growth again
in 2023. Average loans increased by a strong 9% in 2023.
Of note, this average loan growth of $387 million occurred
throughout our Indiana markets. While line of credit usage
remained historically low in 2023 ending the year at 39%,
we increased our overall lines of credit available by $124
million. Just as importantly, our deposit retention efforts
were successful, despite the challenges the banking
industry experienced in 2023. Our core deposit retention,
accompanied by robust liquidity availability, provided a

Lake City Bank Shareholders, Clients and
Community Partners:

2023 created many dynamic and unexpected challenges for
the Lake City Bank team, and once again, they answered
the call. After raising the target Fed Funds rate by 525 basis
points in 11 rate actions in 2022 and 2023, the banking
industry faced an unprecedented interest rate environment
that created net interest margin challenges for the entire
sector. In addition, the high-profile bank failures of 2023
had a significant impact on the industry. The combination of
the interest rate environment and the bank failures created
a dramatic and unprecedented increase in the banking
industry’s cost of deposits. Proudly, we moved through
these events with our solid balance sheet only getting
stronger and with an encouraging outlook for our future.

2 0 2 3 A N N U A L R E P O R T

stable funding position as we worked through 2023 and
prepared for continued growth in 2024.

While broad-based concerns of economic challenges
and a widely predicted recession have not occurred, we
remain diligently focused on preserving the historic quality
of our loan portfolio. We are pleased that we ended 2023
with key loan quality metrics near historic lows. While
this is encouraging, we continue to approach our credit
underwriting process with the consistent standards we
have applied for decades.

We view our fortress
balance sheet as critical
to our ability to fuel
the economic growth
and expansion of our
Indiana communities.

Innovation through technology-driven solutions continued
to be a critical focus. Lake City Bank Mobile Digital
represented 55% of our transactional activity with clients
in 2023, an increase of 53% versus only three years ago.
For both Commercial and Retail Banking clients, our
digital solutions provide the features and functionality
that allow us to compete with our bigger bank peers.
While technology is critical, our clients still leverage our
branch network. More than 2 million transactions were
completed in our offices in 2023, representing 15% of
total transactions, the same percentage it was three years
ago. This is evidence of the continued importance of a
strategic branch footprint to serve our clients. We like
seeing them and they like visiting us!

As a result, we will continue to build new branches and we
have exciting news on the branch development front. Our
next three offices are planned for the Indianapolis market.

In mid-2024, we’ll open a new office in the heart of
Carmel, Indiana. This eighth branch in the Indianapolis
market represents our continued growth and success
in this important market. Our planned 55th office will be
in Westfield, in the Northern portion of our Indianapolis
market. Westfield has also undergone a renaissance,
highlighted by significant partnership between the
public and private sectors.

We are also enthusiastic about our planned 56th
office that will represent an extension of our terrific
relationship with the Flanner House, a not-for-profit
organization that serves the Black community on
the near Northwest side of Indianapolis. The Flanner
House’s mission is to support, advocate for and
empower individuals, children and families by applying
educational, social and economic resources that move
members of the community toward stabilization, and
self-sufficiency. We will build a full service office as
part of the Flanner House’s development of a grocery
store to serve the community. In partnership with the
Flanner House, we are excited to fill a long-needed
void in the banking desert of the near Northwest side
of Indianapolis.

We are, at our core, a community bank focused on
taking care of clients, team members, communities,
and shareholders. We love doing it.

David M. Findlay
Chairman and Chief Executive Officer

Kristin L. Pruitt
President

Management Committee

Board of Directors

Left to right:

Eric H. Ottinger
Executive Vice President
Chief Commercial
Banking Officer

Stephanie R. Leniski
Senior Vice President
Chief Retail Banking Officer

Donald J. Robinson Gay
Senior Vice President
Chief Credit Officer

Kristin L. Pruitt
President

J. Rickard Donovan
Senior Vice President
General Counsel

David M. Findlay
Chairman and Chief
Executive Officer

Kyra E. Clark
Senior Vice President
Chief Human Resources
Officer

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

Jonathan P. Steiner
Senior Vice President
Chief Wealth Advisory
Officer

Our leadership team is grateful that we get to lead
an organization with nearly 700 team members
all rowing in the same direction every day. While
strategic plans and strategic initiatives drive our
business execution, our success is only made
possible by the team members who do the heavy
lifting and manage our business day to day. We

2 0 2 3 A N N U A L R E P O R T

are grateful for their dedication and commitment.
For more than 150 years, the Lake City Bank team
has developed a culture built upon a foundation
of disciplined execution. It matters and it will be
preserved and nurtured.

Left to right:

Kristin L. Pruitt
President
Lakeland Financial Corporation
and Lake City Bank

A. Faraz Abassi
Managing Partner
Centerfield Capital

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

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

Bradley J. Toothaker
Executive Chairman
Bradley Company
Managing Partner
Great Lakes Capital Development

M. Scott Welch
Chief Executive Officer
Welch Packaging Group

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,
M E Raker Foundation, Inc. and Howard P.
Arnold Foundation, Inc.

Darrianne P. Christian
Civic Leader

Robert E. Bartels, Jr.
Partner, Incedo LLC

Steven D. Ross
Former Owner
Ross and Associates

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

After 26 years of leadership with the bank, Mike Kubacki will
retire from our board of directors in April 2024. Mike joined
Lake City Bank in 1998 as President and Chief Executive
Officer and has been managing, guiding, mentoring and
challenging the Lake City Bank team to achieve unrivaled
success for our team members, our clients, our communities
and our shareholders ever since. While Mike would never
admit to having a legacy, his fingerprints are all over this

organization and our success over the past quarter century.
He leaves a legacy of thoughtful and impactful leadership.

Our board of directors continues to serve a critical dual
role of engagement in our Indiana communities and strong
corporate governance and oversight. In addition, they are
invaluable partners to the bank’s leadership team both
strategically and operationally.

Wilson Fertilizer and Grain

ROCHESTE R | CL IE NT SI NCE 2 0 1 3

We feel like
Lake City Bank
understands
the farm side
of business so
much better
than our
previous bank.

From left to right: Left to right: Ren Zent, Operations Manager; Ashley Young; Jeff Zent, President; Wendy Zent,
Vice President; Whitley Moser, Office Manager

From left to right: Karen Francis, Vice President, Retail Banking Regional Manager; Corbin Holtsberry, Vice President,
Agribusiness Banking Officer; Ashley Young; Jeff Zent, President; Wendy Zent, Vice President; Whitley Moser, Office Manager;
Ren Zent, Operations Manager; Penny Ramsey, Assistant Vice President, Retail Banking Officer; Rod Hooley, First Vice
President, Agribusiness Manager

Wilson Fertilizer and Grain and Lake City Bank have

been running and growing the business ever since.

been partners for a long time—since 2013, in fact.

Expansion included new storage and dryer, and a

The family-owned business, founded in 1933, started

new shop. Today, Wilson’s capacity is just over 2.6

out offering coal and grain in Lakeville and Rochester.

million bushels. Lake City Bank has been right there

The business grew, multiplying storage capacity and

with the Zents, providing commercial loans, business

adding Anchor Mills to grind wheat (and later, corn),

and personal deposit accounts, credit cards and

purchasing additional elevators and adding acreage.

treasury management solutions. “We feel like Lake

As the time passed, the two locations became

City Bank understands the farm side of business so

separate businesses, with the Rochester location

much better than our previous bank,” Wendy Zent,

offering fertilizer and grain. In 2013, Jeff and Wendy

Vice President, said. “I can call with any question and

Zent purchased Wilson Fertilizer and Grain and have

they are right there to help.”

2 0 2 3 A N N U A L R E P O R T

Goshen College

GOSHEN | CLIENT SI NCE 201 8

We’ve found it’s
really beneficial
to work with a
local bank that
understands the
community and can
understand how an
academic institution
works, and how
a college can be
an anchor in the
community.

From left to right: Alma Jimenez, Assistant Vice President, Retail Banking Officer; Gabe Martinez, Student Senate President;
Ben Bontrager, Vice President for Finance and Operations; Rebecca Stoltzfus, Ph.D., President; Gilberto Perez, Jr., Ed.D.,
Vice President for Student Life and Hispanic Serving Initiatives, Dean of Students; Amber Wolfer, Vice President, Commercial
Banking Officer; Richard Delks, First Vice President, Senior Wealth Advisor; Michelle Harris, Assistant Vice President,
Corporate and Institutional Services Sales Officer

Spend a bit of time at Goshen College, and you’ll likely be
surprised at what you find on the 135-acre tree-filled campus
on the south side of Goshen. The beautiful setting is home to
about 800 students pursuing degrees—both undergraduate
and graduate, on campus and online—grounded in hands-
on, real-world experiences. But there’s more. A Goshen
College undergrad degree includes at least a semester’s
worth of global education, often while living abroad. The
school’s motto is “Culture for Service” and its mission is to
graduate courageous, creative and compassionate leaders
who transform local and global communities. A faith-based
institution since its founding in 1894, Goshen College is a
nationally ranked Hispanic-Serving Institution and Elkhart
County’s only four-year liberal arts college. The college is
made up of 64% of students from Indiana and 20,000+
alumni who are thriving in life, leadership and service around
the community, country and the world.

A multi-faceted organization like Goshen College needs
support from financial partners with a deep understanding
of the complexities of running an academic institution.
Since 2018 Lake City Bank has helped Goshen College
grow and thrive. The bank provides commercial loans,
deposit products, technology-driven treasury management
solutions, merchant card processing and services from the
Wealth Advisory Group.

“We’ve found it’s really beneficial to work with a local bank
that understands the community and can understand how
an academic institution works, and how a college can
be an anchor in the community,” said Rebecca Stoltzfus,
Ph.D., President. “Our team from Lake City Bank has been
a real benefit to Goshen College.”

Rebecca Stoltzfus, Ph.D., President

2 0 2 3 A N N U A L R E P O R T

Benchmark Human Services

FORT WAYNE | CL I E NT SI NCE 2 0 1 8

The bank
consistently brings
us well thought
out, creative
solutions.

From left to right: Front, David Curry, Vice President, Commercial Banking Officer; Shari Bail, Controller; Middle, Mark Flegge, Chief
Financial Officer; Doug Beebe, Chief Executive Officer; Andy Haddock, Senior Vice President, Chief Investment Officer; Kelly Stahl,
Assistant Controller; Back, Cammy Treadway, Senior Vice President, Commercial East Regional Manager; Dan Beechy, Assistant Vice
President, Corporate and Institutional Services Sales Officer; Jim Westerfield, Senior Vice President, Chief Fiduciary Officer; Carrie
Gutman, Senior Vice President, Chief Fiduciary Officer

Benchmark Human Services is an organization that is,
paradoxically, very complex and very simple at the same
time. Simply put, Benchmark helps support people
throughout life, from infancy to elder years. That means
that Benchmark staff members meet people where they
are—at home, at work or in the community. Since their
founding in 1960, Benchmark has grown to be one of
the most respected organizations in the country, serving
people with intellectual and developmental disabilities
and behavioral health needs. Benchmark’s complex
side emerges when considering the size and scope of
how it delivers high-quality, hands-on support to clients.
Benchmark’s team of 3,100 serves more than 23,000
children and adults across the U.S. through residential,

employment and day services, mobile crisis response
and behavioral health support, and children and family
services. Benchmark also works with state governments
and private organizations, focusing on systems design
and development, best practices, provider capacity
building, facility evaluation and staff training. Benchmark
has partnered with Lake City Bank since 2018, using lines
and letters of credit, deposit products, technology-driven
treasury management products, merchant services and
services from the bank’s Wealth Advisory Group. “We’ve
found that Lake City Bank is a strong partner for us,”
said Doug Beebe, Chief Executive Officer. “The bank
consistently brings us well thought out, creative solutions.”

From left to right: Kelly Stahl, Assistant Controller; Mark Flegge, Chief Financial Officer; Shari Bail, Controller;
Doug Beebe, Chief Executive Officer

2 0 2 3 A N N U A L R E P O R T

weIMPACT Group

ELKHART | CL I ENT SI N CE 201 9

weIMPACT’s
involvement
in public
and private
partnerships
makes a
difference
across Elkhart.

From left to right: Todd Bruce, Senior Vice President, Commercial North Regional Manager; Dave Weaver, Founder; Brian Oakes, Fa-
cilities Manager; JJ Osterloo-Bond, Design Partner; Steve Brown, Vice President, Commercial Banking Officer; Meggan Fink, Marketing
& Community Partner; Emily Wold, Assistant Vice President, Retail Banking Manager; Brett Brumbaugh, Accountant; Brittany Croyle,
Partner; Susan Diehl, Assistant to Dave Weaver

weIMPACT Group focuses on what is possible at the
intersection of entrepreneurship and philanthropy, using
entrepreneurship to tackle solvable yet persistent opportunities
in Elkhart. More specifically, weIMPACT’s initiatives are
intentionally designed to be transformational—focusing
traditional investment on local social priority projects to create
sustainable local impact. weIMPACT Group primarily targets
social priorities in arts and culture, education and community
development. A lofty mission, certainly, but evidence of the
company’s success is growing in the Elkhart area. Founded by
Elkhart native Dave Weaver, weIMPACT’s involvement in public
and private partnerships makes a difference across Elkhart.

When the Community Foundation of Elkhart County led the
development of the Elkhart Health and Aquatics Center through
a progressive public-private sector partnership, it represented
the beginning of a transformational change to Downtown
Elkhart. It resulted from a collaboration that included Elkhart
Community Schools, the City of Elkhart, Beacon Health System,
the community foundation, and numerous community leaders
and organizations. That’s when weIMPACT began a further
transformation in Downtown Elkhart. Since 2019, weIMPACT
Group has been quietly but thoughtfully making an impact

in the community with intentional energy and time invested
in the redevelopment of the Elkhart River District. The multi-
phase River District combines public and private resources to
reimagine a 105-acre multi-use campus that continues to grow.
The Riverbend Building at 240 E. Jackson Blvd., where Lake
City Bank is located in the River District, embodies the spirit of
the projects weIMPACT Group champions. The building grew
up during the COVID-19 pandemic as a mixed-use space for
the intersection of people, businesses, recreation and local
resources. With several developments in the River District
on the horizon led by weIMPACT, the group is committed to
doubling down on the work they’ve set out to do in making
noticeable and intentional change in our community.

Since 2019, weIMPACT and Lake City Bank have partnered,
with the bank providing financing for development, technology-
driven treasury management solutions and deposit products.
“Lake City Bank has been a great partner, taking an active
interest in the River District projects. They have roots in Elkhart
and that has only enhanced their commitment,” said Dave
Weaver, Founder.

Dave Weaver, Founder

2 0 2 3 A N N U A L R E P O R T

Wedgewood Building Company

CARMEL | CLIENT SI NCE 2018

Working with
an Indiana bank
works well for
us. Lake City
Bank knows the
community and
the market.

From left to right: Erin Martz, Assistant Vice President, Senior Loan Administration Officer; Brad Love, Partner; Randy
Henry, Director of Finance; Gary McNutt, Partner; Greg Lentz, Vice President, Commercial Banking Officer; Ashley
Bridges, Assistant Vice President, Retail Banking Officer

Wedgewood Building Company has put down roots
in Carmel, in a lovingly restored and adapted former
preschool in the heart of downtown. Partners Brad
Love and Gary McNutt chose the spot as downtown
Carmel was evolving into the charming city it is
today—think brick walkways, bike and pedestrian
paths and unique retail and restaurant options. It’s
the perfect location for the company that creates
high quality custom homes in Hamilton County,
Zionsville and northern Marion County. Wedgewood
prides itself on listening carefully. They believe that
understanding a customer’s lifestyle is the only way

they can create the best possible home for them.
Careful listening has proven the right approach for
Wedgewood and Lake City Bank as well. “Working
with an Indiana bank works well for us,” McNutt
said. “Lake City Bank knows the community and
the market. They understand our business and our
customers.” Wedgewood has multiple commercial
loan products with Lake City Bank, technology-
driven treasury management solutions, deposits and
merchant services. The flexibility and local decision
making that are central to Lake City Bank’s culture
help lay the foundation for a thriving partnership.

From left to right: Gary McNutt, Partner; Brad Love, Partner; Randy Henry, Director of Finance

2 0 2 3 A N N U A L R E P O R T

Seymour Midwest

WARSAW | CLIENT SI NCE 199 1

Lake City Bank
shares our
commitment
to customer
service and
quality.

From left to right: Bill Henthorn, Chief Executive Officer and Owner; Bobbi Henthorn, Assistant Vice President and Owner
Not pictured: Chuck & Judy Yeager and Randy Swanson, Owners

From left to right: Jason Henthorn, Vice President, Logistics and Information Systems; Shelly Kammerer, Vice President, Retail Banking
Officer and Private Banker; Chris Wiggins, Senior Vice President, Commercial South Regional Manager; Bill Henthorn, Chief Executive
Officer and Owner; Bobbi Henthorn, Assistant Vice President and Owner; Randy Huss, Chief Financial Officer; Tiffany Mudd, Assistant
Vice President, Corporate and Institutional Services Sales Officer; Matt Teevan, President and Chief Operating Officer

Seymour Midwest is a family owned, global supplier to the hand
tools market, with a product offering that includes 3,500+ unique
tools and more than 8,000 different replacement handles.
The origins of the company date back to 1872 when it began
producing snath handles and wagon wheel spokes. Over the
decades, the company has grown through acquisitions, product
line expansions and a focus on organic growth. The range of
products Seymour Midwest offers is vast and renowned in the
marketplace for both its specialization and quality.
Seymour Midwest operates two manufacturing facilities in
Indiana as well as a sawmill and hickory handle finishing location
in Tennessee. Vertically integrated, the company also has a
sawmill at its Seymour, Indiana facility that processes a variety
of American hardwoods for use in the company’s long handled
tools and replacement handles. Additionally, the company’s
manufacturing operations include presses that create the steel
heads for many of its products, a furnace for heat treating them
and both wet paint and powder coating operations. Customer
orders are shipped from three warehouses with the majority being
fulfilled from the Warsaw, Indiana headquarters.

The company is equally diversified through the numerous
channels and markets that count on Seymour Midwest’s
tools and handles including retail, industrial, ag, irrigation
and municipalities, fencing, sports field and turf, lake
maintenance, resinous flooring, asphalt and seal coating, as
well as seasonal products such as an industrial snow tool
line. Seymour Midwest products are marketed under the
Structron®, Seymour®, Kenyon®, Toolite®, Link Handles® and
Midwest Rake® brands that are known in the marketplace for
their superior quality.
In its more than 150-year history, Seymour Midwest remains
a company of toolmakers committed to quality and customer
service. That commitment resonates with Lake City Bank.
Seymour Midwest has commercial loans and lines of credit,
technology-driven treasury management solutions, business
credit cards and personal accounts with Lake City Bank.
“Lake City Bank shares our commitment to customer service
and quality,” said Bill Henthorn, Chief Executive Officer. “As
our business grows and becomes more complex, the bank is
ready with solutions that work for us.”

2 0 2 3 A N N U A L R E P O R T

Five Year Summary of Financial Highlights

(in thousands, except share and per share data)

Condensed Consolidated Balance Sheets

(Years ended December 31)
(in thousands, except 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
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

2023
$6,524,029
5,720,525
4,916,534
71,972
649,793

2022
$6,432,371
5,460,620
4,710,396
72,606
568,887

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

$6,464,980
6,114,225
1,184,659
4,813,678

$6,427,579
6,123,163
1,432,287
4,427,166

$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

$5,604,228
4,128,922
4,295,743
588,667

$5,717,358
3,874,581
3,913,195
596,487

$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

$197,035
202,347
5,850
49,858
130,710
93,767

$3.67

3.65

1.84

50.41%

$25.37

$202,887
208,514
9,375
41,862
110,210
103,817

$4.07

4.04

1.60

39.60%

$22.28

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

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

$3.76

3.74

1.36

36.36%

$27.65

$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

25,604,751

25,528,328

25,475,994

25,469,242

25,588,404

25,723,165

25,712,538

25,620,105

25,573,941

25,758,893

1.45%

15.93%

9.11%

3.31%

1.62%

17.40%

9.28%

3.40%

52.94%

45.03%

0.13%

1.46%

0.10%

1.54%

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%

458.01%

424.91%

449.13%

507.42%

270.58%

0.33%

0.37%

0.36%

0.26%

0.47%

Assets

Cash and due from banks

Short-term investments

Total cash and cash equivalents

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

Securities held-to-maturity (carried at amortized cost)

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 (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

See Annual Report on Form 10-K.

Report of Independent Registered Public Accounting Firm

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

2023
$70,451

81,373

151,824

1,051,728

129,918

1,158

4,916,534

71,972

4,844,562

57,899

109,114

21,420

30,011

4,970

2022
$80,992

49,290

130,282

1,185,528

128,242

357

4,710,396

72,606

4,637,790

58,097

108,407

15,795

27,994

4,970

121,425

$6,524,029

134,909

$6,432,371

$1,353,477

4,367,048

5,720,525

103,711

50,000

5,874,236

127,692

692,760

(155,195)

(15,553)

649,704

649,793

$6,524,029

25,903,686

25,430,566

$1,736,761

3,723,859

5,460,620

105,864

297,000

5,863,484

127,004

646,100

(188,923)

(15,383)

568,798

568,887

$6,432,371

25,825,127

25,349,225

*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 2023 for a complete set of consolidated financials.

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, 2023 and 2022, and the related consolidated statements of income, comprehensive income (loss), changes in stockholders’ equity, and
cash flows for each of the years in the three-year period ended December 31, 2023 (not presented herein); and in our report dated February 21, 2024, 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 consolidated financial statements from which it has been derived.

Crowe LLP, South Bend, Indiana, February 21, 2024

2 0 2 3 A N N U A L R E P O R 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 (loss)
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

2023
$308,015

2022
$203,668

2021
$170,551

13,153

16,396

5,703

343,267

137,791
8,441
146,232

197,035
5,850
191,185

10,895
10,773
11,750
3,651
3,133
794
(254)
(25)
9,141
49,858

59,147
11,992
14,003
45,568

130,710

110,333
16,566
$93,767

14,132

19,553

2,214

239,567

36,281
399
36,680

202,887
9,375
193,512

10,954
11,595
12,214
3,560
432
579
633
21
1,874
41,862

58,530
12,050
12,826
26,804

110,210

125,164
21,347
$103,817

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

BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

25,604,751

25,528,328

25,475,994

BASIC EARNINGS PER COMMON SHARE

$3.67

$4.07

$3.76

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

25,723,165

25,712,538

25,620,105

DILUTED EARNINGS PER COMMON SHARE

$3.65

$4.04

$3.74

See Annual Report on Form 10-K.

2 0 2 3 A N N U A L R E P O R T

Corporate Information

Nature of Business
Lakeland Financial Corporation is a $6.5 billion bank
holding company located in Warsaw, Indiana. Lake City
Bank, its single bank subsidiary, is the seventh largest bank
headquartered in the state and is 100% invested in Indiana.
Lake City Bank operates 53 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
Tuesday, April 9, 2024
3:30 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
Cantor Fitzgerald & Co.
Citadel Securities LLC
Cowen and Company, LLC
Cannacord Genuity LLC.
D.A. Davidson & Co.
G1 Execution Services, LLC
Goldman, Sachs & Co. LLC
GTS Securities LLC
IMC Financial Markets
StoneX Financial Inc.
Janney Montgomery Scott Inc.
Keefe, Bruyette & Woods, Inc.
Keybanc Capital Markets Inc.
Leerink Partners, LLC
Maxim Group LLC
Bofa Securities, Inc.
Morgan Stanley & Co. LLC
VIRTU Americas LLC
Piper Sandler & Co.
Raymond James & Associates, Inc.
RBC Capital Markets, LLC
SG Americas Securities, LLC
Two Sigma Securities, LLC
Susquehanna Financial Group, LLP
Two Sigma Securities, LLC
UBS Securities LLC
Virtu Americas LLC
Wall Street Access
William Blair
Summit Securities Group, LLC
Wells Fargo Securities, LLC
Latour Trading LLC

Stock Transfer Agent and Registrar
Equinity Trust Company, LLC (“EQ”)
PO Box 500
Newark, NJ 07101
(800) 937-5449
(718) 236-2641 fax
helpAST@equiniti.com
equinity.com/us/
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 on its investor relations site, free of
charge, 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 investor relations
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

Lake City Bank Officers

Management Committee
David M. Findlay
Chairman &

Chief Executive Officer

Kristin L. Pruitt
President

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

Eric H. Ottinger
Executive Vice President

Chief Commercial Banking 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

Donald J. Robinson-Gay
Senior Vice President
Chief Credit Officer

Jonathan P. Steiner
Senior Vice President

Chief Wealth Advisory Officer

Brokerage
Vice President
Eric J. Frappier
Michael O. Jenkins

Assistant Vice President
Greg L. Emmack

Officer
Ashley N. Brewer

Commercial Banking
Senior Vice President—Regional
Manager
Todd A. Bruce
William R. Redman
J. Chad Stoltzfus
Camalyn M. Treadway
Christopher W. Wiggins

First Vice President
Chad A. Glassburn
Rodney B. Hooley
Timothy M. Schlichte

Vice President
Ronald L. BonDurant
Steven L. Brown
Nathan R. Burnell
Brian D. Burrell
Nathan R. Conley
David E. Davis
John F. Dietzen
Chad P. Douglass
Keith B. Goodman
Ryan L. Hart
Justin T. Hayes
Corbin J. Holtsberry
Cari J. Juillerat
Jeffery W. Krusenklaus
Gregory W. Lentz
Meghan C. Marrello
Cory E. McClarnon
Patricia T. McNarney
Shelly A. Meyer
Gavin S. Miller
Cameron V. Plew
Benjamin A. Rice
Michael J. Ryan
D. Andrew Skaggs
Eric J. Steenman
Nicholas A. Toney
Steven J. Troike
Amber M. Wolfer

Kris J. Kerlin
Erin R. Martz
Sara B. Millspaugh
Luke C. Mungovan
Kevin R. Poe
Stacy M. Richardson
Robin R. Ritchie
Elizabeth A. Schmidlin
Jordan D. Smith
Virginia E. Wirt

Officer
Quinten J. Bender
Trenton H. Cooper
Brandon J. Krutsch
Marlee J. Richter

Consumer & Home Loans
Senior Vice President
Kirtus D. Murray

Vice President
Denise M. Brennan
Sabrina N. Brown
Scott B. Bucher
Holly N. Clevenger
Phillip G. Ensley
Glenn A. Goudey
Jodi L. Hammond
Cheryl L. Luke
Sarah J. Miller-Bontrager
W. John Pritz
Mark R. Rensner

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

Officer
Sandra F. Medina

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

Assistant Vice President
Dan L. Beechy
Michelle L. Harris
Tiffany R. Mudd

Credit Administration
Senior Vice President
Bradford S. Grabow
Kimberly A. Hooley

Vice President
Amanda R. Ellsworth
Cynthia J. Gianneschi
Christopher D. Hanson
Kerry M. Jones
Judd P. McNally
Matthew R. Smith
Marshall C. Weadick

Assistant Vice President
Joseph D. Burtnette
Bridget M. Camden
Seth M. Greiner
Kyle A. Grimm
Megan E. Ottinger
Christoffer C. Penny
Aaron T. Wood
Jeffrey L. Wyckoff

Officer
Victoria A. Larrew
Maxxwell P. Sell
Troy D. Tom
Branden P. Wildey

Executive Administration
Officer
Tina A. Rensberger

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
Luke A. Weick

Operations
Senior Vice President
Lisa A. Fulton

First Vice President
Eric D. Wagoner

Vice President
Michele R. Ganser
Shannan L. Hepler
Michelle L. Jacobsen
Miranda R. Jordan
Scot A. Karbach
Jan R. Martin
Leslie R. Rutherford
Timothy C. Vosberg
Diane M. Wirth
Donna J. Wolfe

Assistant Vice President
Katrina L. Beverly
Lisa M. Bicknese
Jennifer A. Bradley
Sherri L. DiRico
Jill E. Garber
Brittney C. Hollopeter
Lindsay A. Ignasiak
Jennifer R. Kooistra
Karla J. Kroll
Jennifer L. Mosier
Michele I. Myers
Natalie M. Ousley
Ashaunte M. Wallen
Thomas B. Weimer

Officer
Micaela M. Alvarez
Ashley D. Boyer
Denise M. Eldridge
Lisa M. Goon
Kelli L. Hatfield
Susan K. Hayes
Jillian M. Howell
Candince M. Leedy
Maritza Patino
Carla A. Snyder
Brandice M. Wampler

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

Assistant Vice President
Rhonda K. Frank
Kristen J. Heiman
Brianna D. Kreczmer
Justin Taylor

Officer
Marissa Rico

Property Management
Vice President
Richard A. Hoover

Sara B. Hill
Alexandra L. Rhodes
Steve D. Schumacher
Kimberly K. Strawbridge

Vice President
Lisa S. Fitzgerald
Melissa S. Rupe

Assistant Vice President
Jean A. Ciriello

Officer
Amanda C. Benzing
Megan L. Sutter

Risk Management
Senior Vice President
Matthew D. VanDeWielle

First Vice President
Jeannine P. Draper Cooley

Vice President
Gloria J. Crawford
Dianne C. Harris
Candy A. Little
Amanda M. Longmire
Kyle G. Schmidt
Becka J. Turnbow

Assistant Vice President
Austin L. Bair
Wendy N. Brown
Aaron T. Connell
Kristin D. Hohman
Kristina R. Kiracofe
Kimberly A. Knoerzer
Dakotah B. Lantz
Eric D. Neuenschwander
Ashley L. Pluta
Brandon Prince
Victoria L. Starr

Officer
Hilda E. Cantu

Technology Services
Senior Vice President
Darrin M. McLaughlin

Vice President
Paul D. Dausman
Joanie L. Foreman
Kimberly K. Mattke
Christopher D. Merrill

Assistant Vice President
Jordan M. Bell

Officer
Noah S. Blakesley
David J. Miller
Jackie L. Stout

Wealth Advisory Group
Senior Vice President
Carrie A. H. Gutman
Andrew R. Haddock

First Vice President
Richard A. Delks
Reneta U. Thurairatnam

Vice President
Steven B. Burnside
Robert M. Congdon
Lili A. Dailey
Michelle L. Kindler
Jennifer I. King
Lisa A. Mansberger
Scott R. Tapley

Assistant Vice President
Adam L. Esterline
Leslie E. Rohrer

Retail Banking
First Vice President—Retail Banking
Regional Manager
Melissa J. Blosser

Officer
Janel A. Burnworth
Deborah R. Cataldo
Phillip Nguyen

Assistant Vice President
Christy E. Adams
Holly A. Davis
Kelsey M. Jenkins

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

Vice President—Retail Banking
Regional Manager
Karen A. Francis

2 0 2 3 A N N U A L R E P O R T

Lake City Bank Offices

Akron
Argos
Auburn
Bremen

Columbia City
Concord
Elkhart Beardsley
Elkhart East
Elkhart High School
Elkhart Northwest
Elkhart River District

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 16 Tech
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
Alexandra L. Rhodes
Sonia R. Teske
Carolyn M. Ross
Carrie L. Heavner
Rebecca L. Miller
Katelynn E. Rowe
Melissa J. Blosser
Marissa K. Sparks
Melissa J. Blosser
Emily E. Wold
Dana L. Hess
Steve D. Schumacher
Nichole L. Mendez
Kristi L. Manwaring
Andrew P. Dance
Breanne Kohli
Ameenah K. Outlaw
Imelda Herrera
Alma R. Jimenez
Sheryl L. Harlan
Kathryn A. Smith
Joseph P. Waltermann
Paula J. Whiting
Kyle R. Means
Dereck L. Stinson
Jody M. Meyer
Terry L. Bradley
Sara B. Hill
Ashley G. Bridges
Codie N. Gluchowski
Brooke E. Bentley
Mareen L. Barton
Lori I. Cunningham
Jana L. Miller
Nema R. Wireman
Karen A. Francis
Kimberly S. Orr
Stephanie M. Butler
Brooke C. Williams
Andrea R. Bowers
Katina A. Stephenson
Brenda S. Peterson
Kelli-Anna Cook
Carol D. Brown
Penny S. Ramsey
Kourtney M. Jackson
Sandra A. Nelson-Rowland
Christina J. Myer
Mark A. Berta
Brittni A. Kuhn
Kimberly K. Strawbridge
Shelly R. Kammerer
Jennifer M. Flinn
Kathleen Madden
Jessica L. Slone
Sheryl L. Harlan

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

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
LAKECI TYBANK. CO M

LAKELAND FINANCIAL CORPORATION