Regional banking company Lakeland Financial (NASDAQGS:LKFN) reported revenue ahead of Wall Street’s expectations in Q3 CY2025, with sales up 10.8% year on year to $69.03 million. Its GAAP profit of $1.03 per share was 1.2% below analysts’ consensus estimates.
Is now the time to buy Lake City Bank? Find out by accessing our full research report, it’s free for active Edge members.
Lake City Bank (LKFN) Q3 CY2025 Highlights:
- Net Interest Income: $56.07 million vs analyst estimates of $57.55 million (13.8% year-on-year growth, 2.6% miss)
- Net Interest Margin: 3.5% vs analyst estimates of 3.4% (5.8 basis point beat)
- Revenue: $69.03 million vs analyst estimates of $68.18 million (10.8% year-on-year growth, 1.2% beat)
- Efficiency Ratio: 50.7% vs analyst estimates of 47.4% (325 basis point miss)
- EPS (GAAP): $1.03 vs analyst expectations of $1.04 (1.2% miss)
- Tangible Book Value per Share: $28.93 vs analyst estimates of $28.26 (6.3% year-on-year growth, 2.4% beat)
- Market Capitalization: $1.58 billion
“Healthy expansion in our net interest margin accompanied by great noninterest income growth and consistent loan growth delivered a strong quarter for the Lake City Bank team. We have had significant relationship growth in all areas of the business during 2025 with special emphasis on our commercial banking, treasury management services, and wealth advisory business units,” stated David M. Findlay, Chairman and CEO.
Company Overview
Dating back to 1872 and deeply rooted in Indiana's communities, Lakeland Financial Corporation (NASDAQ: LKFN) operates Lake City Bank, providing commercial and consumer banking services throughout Northern and Central Indiana.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Thankfully, Lake City Bank’s 5.2% annualized revenue growth over the last five years was decent. Its growth was slightly above the average banking company and shows its offerings resonate with customers.
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Lake City Bank’s recent performance shows its demand has slowed as its annualized revenue growth of 2.1% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Lake City Bank reported year-on-year revenue growth of 10.8%, and its $69.03 million of revenue exceeded Wall Street’s estimates by 1.2%.
Net interest income made up 75.6% of the company’s total revenue during the last five years, meaning lending operations are Lake City Bank’s largest source of revenue.
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend.
Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
Lake City Bank’s TBVPS grew at a sluggish 2.9% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 15.4% annually over the last two years from $21.71 to $28.93 per share.
Over the next 12 months, Consensus estimates call for Lake City Bank’s TBVPS to grow by 6.9% to $30.92, mediocre growth rate.
Key Takeaways from Lake City Bank’s Q3 Results
It was encouraging to see Lake City Bank beat analysts’ tangible book value per share expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its net interest income missed and its EPS fell a bit short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $61.85 immediately following the results.
Lake City Bank’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
