Lakeland Financial Corporation reported net income of $20.1 million for the first quarter of 2025, a 14% decrease compared to the same quarter in 2024. Net interest income rose 12% year-over-year, supported by a 25-basis-point expansion in net interest margin to 3.40%. Organic loan growth reached 4% annually, and core deposits expanded 7%. However, the company recorded a provision for credit losses of $6.8 million, primarily due to a previously disclosed nonperforming credit, which contributed to the overall earnings decline. Tangible book value per share increased by 7% year-over-year to $26.85, and the company's capital ratios remained strong, with a common equity tier 1 capital ratio of 14.51%.

The company’s deposit base showed healthy growth, increasing 6% year-over-year to $5.96 billion, while noninterest income fell 13% largely due to a prior-year insurance recovery not repeated this quarter. Asset quality remained relatively stable despite higher nonperforming assets linked to a single credit. The bank also announced a 4% dividend increase and the reauthorization of its $30 million share repurchase program. Management emphasized strong liquidity, improved net interest margin, and a solid loan pipeline, while acknowledging continued monitoring of potential impacts from tariff-related economic developments.