Profile: Lakeland Financial Corp (LKFN.OQ)
Lakeland Financial Corporation, incorporated on February 8, 1983, is a bank holding company. The Company owns all of the outstanding stock of Lake City Bank (the Bank), which is a full-service commercial bank. The Bank has a wholly-owned subsidiary, LCB Investments II, Inc., which manages a portion of the Bank’s investment portfolio. The Bank’s deposits are insured by the Federal Deposit Insurance Corporation. The Bank’s activities cover all phases of commercial banking, including checking accounts, savings accounts, time deposits, the sale of securities under agreements to repurchase, commercial, real estate and agricultural lending, direct and indirect consumer lending, commercial and residential real estate mortgage lending, retail and merchant credit card services, corporate treasury management services, retirement services, bond administration, safe deposit box service and wealth advisory, trust and brokerage services. As of December 31, 2012, the Bank had 45 offices in thirteen counties throughout Northern and Central Indiana.
The Company operates in thirteen counties, it operates in five primary geographical markets: the South Region, which includes Kosciusko County and portions of contiguous counties; the North Region, which includes portions of Elkhart and St. Joseph Counties; the Central Region, which includes portions of Elkhart County and contiguous counties; the East Region, which includes Allen County and contiguous counties; and the Indianapolis Region, which includes the metropolitan market of Indianapolis, including primarily Marion and Hamilton Counties. The Company is a full-service commercial bank and provides commercial, retail, wealth advisory, trust and investment management services to its customers. Commercial products include commercial loans and technology-driven solutions to commercial customers’ treasury management needs, such as Internet business banking and on-line treasury management services in addition to retirement services, bond administration and health savings account services.
Retail banking clients are provided 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, including indirect automotive financing. The Company provides credit card services to retail and commercial customers through an outsourced retail card program and merchant processing activity. It provides wealth advisory clients with traditional personal and corporate trust and investment services. The Company also provides retail brokerage services, including an array of financial and investment products such as annuities and life insurance.
The Bank’s loan portfolio as of December 31, 2012, consisted of commercial real estate and multi-family residential loans, agri-business and agricultural loans, other commercial loans, and other consumer loans. The residential construction and land development loans class included construction loans totaling $10,697,000 as of December 31, 2012. The Bank generally 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 31,2012, the Bank’s investment portfolio consisted of the United States Treasury securities, the United States government sponsored agencies, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities and state and municipal securities. As of December 31, 2012, the Company had $6.5 million of non-agency residential mortgage-backed securities which were not issued by the United States government or government sponsored agencies.
Sources of Funds
Sources of funds consisted of demand deposits, savings and transaction accounts, and Time deposits. During the year ending December 31, 2012, securities sold under agreements to repurchase included corporate sweep accounts. Short-term borrowings of the Company includes Federal funds purchased and securities sold under agreements to repurchase. As of December 31, 2012, its long term borrowings included Federal Home Loan Bank of Indianapolis Notes.
Lakeland Financial Corp
202 E CENTER ST,
P O Box 1387
WARSAW IN 46581-1387