Profile: Lakeland Financial Corp (LKFN.OQ)
Lakeland Financial Corporation (Lakeland Financial), incorporated on February 8, 1983, is a bank holding company. The Company, through its subsidiary, Lake City Bank (the Bank), provides an array of products and services throughout its Northern and Central Indiana markets. The Company offers commercial and consumer banking services, as well as trust and wealth management, brokerage, and treasury management commercial services. The Company serves a range of industries, including, among others, commercial real estate, manufacturing, agriculture, construction, retail, wholesale, finance and insurance, accommodation and food services, and healthcare. The Bank's activities cover all phases of commercial banking, including deposit products, commercial and consumer lending, retail and merchant credit card services, corporate treasury management services, and wealth advisory, trust and brokerage services. The Company provides financial services through the Bank, a full-service commercial bank with approximately 50 branch offices in 15 counties in Northern and Central Indiana.
The Company's commercial products include commercial loans and technology-driven solutions to meet commercial customers' treasury management needs, such as Internet business banking and online treasury management services. Retail banking clients are provided with a range of traditional retail banking services, including lending, deposit and investment services. Retail lending programs are focused on mortgage loans, home equity lines of credit and traditional retail installment loans. The Company provides credit card services to retail and commercial customers through its retail card program and merchant processing activity. The Company provides wealth advisory and trust clients with traditional personal and corporate trust services. The Company also provides retail brokerage services, including an array of financial and investment products, such as annuities and life insurance. Other financial instruments include deposit accounts in other financial institutions.
The Bank's loan portfolio consists of commercial and industrial loans, commercial real estate and multi-family residential loans, agri-business and agricultural loans, other commercial loans, and other consumer loans, among others. As of December 31, 2016, its residential construction and land development loans class included construction loans totaling $11.4 million. The Bank sells conforming mortgage loans, which it originates on the secondary market. These loans generally represent mortgage loans that are made to clients with long-term or substantial relationships with the Bank on terms consistent with secondary market requirements. As of December 31, 2016, its total commercial loans totaled $3,062.52 million. As of December 31, 2016, its total loans totaled $3.471 billion.
The Company's investment portfolio consists of treasury securities, government agencies, and municipal tax exempt bonds. As of December 31, 2016, its purchases in the securities portfolio consisted of primarily mortgage-backed securities and municipal bonds. As of December 31, 2016, the Company's investment in mortgage-backed securities represented approximately 70% of total securities consisting of collateralized mortgage obligations (CMOs), commercial mortgage-backed securities (CMBSs) and mortgage pools issued by the Government National Mortgage Association (Ginnie Mae), Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corp (Freddie Mac).
Sources of Funds
The Company's primary sources of funds consist of deposits, cash from operations, investment maturities and sales and deposits. Additional liquidity is provided by brokered deposits, certificate of deposit account registry service (CDARS) deposits, repurchase agreements, as well as its ability to borrow from the Federal Reserve and the Federal Home Loan Bank (the FHLB). The primary source of funds for the Company is dividends from the Bank. The Bank's total deposits were $3,477.81 million.
Lakeland Financial Corp
202 E Center St
PO Box 1387
WARSAW IN 46581-1387