UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________
FORM 8-K
______________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 1, 2016
______________
Lakeland Financial Corporation
(Exact name of Registrant as specified in its charter)
______________

Indiana
0-11487
35-1559596
(State or other jurisdiction
(Commission File Number)
(IRS Employer
Of incorporation)
  
Identification No.)

202 East Center Street, P.O. Box 1387, Warsaw, Indiana 46581-1387
 (Address of principal executive offices) (Zip Code)
(574) 267-6144
 (Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Solicitation material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR  240.14d-2(b)
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)




Item 7.01. Regulation FD Disclosure

On November 1, 2016, Lakeland Financial Corporation (the "Company) reported that during the Company's review of third quarter results, it identified that cash held at the Federal Reserve Bank of Chicago was not included in total earning assets. Instead, the cash was reported in cash and due from banks in nonearning assets.  The resulting understatement of earning assets had the effect of overstating the net interest margin for the second and third quarters of 2016, as well as the nine months ended September 30, 2016 as detailed in the Company's October 25, 2016 press release.

The balance sheet and income statement of the Company are not impacted by this change.

Net interest margin for the second and third quarters of 2016 was 3.19% and 3.08%, respectively. The year-to-date net interest margin for the nine months ended September 30, 2016 was 3.17%.  The Company previously reported 3.24% and 3.20% for the second and third quarters of 2016, respectively, and year-to-date net interest margin of 3.22% for the nine months ended September 30, 2016.

The average balance of interest earning cash that was reclassified from nonearning assets is $57.4 million and $127.0 million for the second and third quarters of 2016, respectively.  The year-to-date 2016 average balance of interest earning cash that was reclassified from nonearning assets is $64.9 million. The net interest margin for the third quarter 2015 was not impacted by this change.

The following table discloses the components of net interest margin for the quarters ended September 30, 2016, June 30, 2016 and September 30, 2015.





























LAKELAND FINANCIAL CORPORATION
AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS
(UNAUDITED)


 
Three Months Ended
    
Three Months Ended
    
Three Months Ended
  
 
September 30, 2016
    
June 30, 2016
    
September 30, 2015
  
 
Average
  
Interest
  
Yield (1)/
    
Average
  
Interest
  
Yield (1)/
    
Average
  
Interest
  
Yield (1)/
  
(fully tax equivalent basis, dollars in thousands)
Balance
  
Income
  
Rate
    
Balance
  
Income
  
Rate
    
Balance
  
Income
  
Rate
  
Earning Assets
                                        
  Loans:
                                        
    Taxable (2)(3)
 $3,233,394
  
 $31,538
  
 3.88
%
  
 $3,180,783
  
 $30,918
  
 3.91
%
  
 $2,910,663
  
 $27,981
  
 3.81
%
    Tax exempt (1)
 11,600
  
 164
  
 5.62
    
 11,763
  
 164
  
 5.62
    
 12,496
  
 170
  
 5.40
  
  Investments: (1)
                                        
    Available for sale
 500,384
  
 3,747
  
 2.98
    
 488,762
  
 3,736
  
 3.07
    
 471,641
  
 3,269
  
 2.75
  
  Short-term investments
 6,885
  
 4
  
 0.23
    
 5,805
  
 3
  
 0.21
    
 5,836
  
 1
  
 0.07
  
  Interest bearing deposits
 148,388
  
 181
  
 0.49
    
 75,908
  
 79
  
 0.42
    
 18,354
  
 15
  
 0.68
  
Total earning assets
 $3,900,651
  
 $35,634
  
 3.63
%
  
 $3,763,021
  
 $34,900
  
 3.73
%
  
 $3,418,990
  
 $31,436
  
 3.65
%
Less:  Allowance for loan losses
 (43,402)
            
 (43,228)
            
 (44,751)
          
Nonearning Assets
                                        
  Cash and due from banks
 122,811
            
 109,744
            
 108,441
          
  Premises and equipment
 50,921
            
 48,921
            
 44,240
          
  Other nonearning assets
 121,352
            
 125,175
            
 113,849
          
Total assets
 $4,152,333
            
 $4,003,633
            
 $3,640,769
          
                                         
Interest Bearing Liabilities
                                        
  Savings deposits
 $270,136
  
 $103
  
 0.15
%
  
 $263,331
  
 $115
  
 0.18
%
  
 $234,360
  
 $115
  
 0.19
%
  Interest bearing checking accounts
 1,261,390
  
 1,362
  
 0.43
    
 1,309,443
  
 1,455
  
 0.45
    
 1,221,190
  
 1,225
  
 0.40
  
  Time deposits:
                                        
    In denominations under $100,000
 243,148
  
 696
  
 1.14
    
 249,452
  
 719
  
 1.16
    
 279,734
  
 846
  
 1.20
  
    In denominations over $100,000
 1,068,341
  
 2,871
  
 1.07
    
 937,470
  
 2,405
  
 1.03
    
 756,206
  
 1,787
  
 0.94
  
  Miscellaneous short-term borrowings
 59,133
  
 37
  
 0.25
    
 96,878
  
 99
  
 0.41
    
 83,015
  
 43
  
 0.21
  
  Long-term borrowings and
                                        
    subordinated debentures (4)
 30,960
  
 291
  
 3.74
    
 30,960
  
 289
  
 3.75
    
 30,962
  
 239
  
 3.06
  
Total interest bearing liabilities
 $2,933,108
  
 $5,360
  
 0.73
%
  
 $2,887,534
  
 $5,082
  
 0.71
%
  
 $2,605,467
  
 $4,255
  
 0.65
%
Noninterest Bearing Liabilities
                                        
  Demand deposits
 768,095
            
 677,797
            
 634,982
          
  Other liabilities
 27,772
            
 26,316
            
 19,455
          
Stockholders' Equity
 423,358
            
 411,986
            
 380,865
          
Total liabilities and stockholders' equity
 $4,152,333
            
 $4,003,633
            
 $3,640,769
          
                                         
Interest Margin Recap
                                        
Interest income/average earning assets
    
35,634
  
 3.63
        
34,900
  
 3.73
        
31,436
  
 3.65
  
Interest expense/average earning assets
    
5,360
  
 0.55
        
5,082
  
 0.54
        
4,255
  
 0.49
  
Net interest income and margin
    
 $30,274
  
 3.08
%
      
 $29,818
  
 3.19
%
      
 $27,181
  
 3.16
%

(1)
Tax exempt income was converted to a fully taxable equivalent basis at a 35 percent tax rate for 2016 and 2015. The tax equivalent rate for tax exempt loans and tax exempt securities acquired after January 1, 1983 included the Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA") adjustment applicable to nondeductible interest expenses.
(2)
Loan fees, which are immaterial in relation to total taxable loan interest income for 2016 and 2015, are included as taxable loan interest income.
(3)
Nonaccrual loans are included in the average balance of taxable loans.
(4)
Long-term borrowings and subordinated debentures interest expense was reduced by interest capitalized on construction in process for 2015.








SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LAKELAND FINANCIAL CORPORATION

Dated:  November 1, 2016 By:  /s/Lisa M. O'Neill
                                          Lisa M. O'Neill
                                          Executive Vice President
                                          and Chief Financial Officer