Lakeland Financial Q2 profit rises on loan growth

Overview

• U.S. regional bank's Q2 revenue rose 7% and net income grew 5% yr/yr

• Diluted EPS for Q2 rose 9% yr/yr to a record $1.13

• Company repurchased 70,873 shares for $4.1 mln and raised dividend by 4%

Outlook

• Company did not provide specific guidance for the current quarter or full year in its press release

Result Drivers

• LOAN GROWTH - Co said Q2 loan growth was driven by increases in both commercial and consumer segments, including 10% growth in commercial and industrial loans and 16% growth in consumer 1-4 family mortgage loans

• NET INTEREST MARGIN - Net interest margin improved due to a reduction in funding costs that outpaced a decline in earning asset yields, supporting higher net interest income

• NONINTEREST INCOME - Higher noninterest income was driven by increased wealth advisory fees and improved returns on bank-owned life insurance policies

Company press release: ID:nGNX2yN1J0

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "hold"

• Wall Street's median 12-month price target for Lakeland Financial Corp is $65.50, about 7.2% above its July 24 closing price of $61.11

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• July 27 - Bank of Hawaii Q2 net income rises on higher asset pricing

• July 24 - First Bancshares Missouri Q2 profit rises helped by branch acquisition

• July 24 - Tompkins Financial's Q2 EPS rises on improved interest margin and loan growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)