EX-99.1 2 presentation20241q.htm EX-99.1
Lakeland Financial Corporation A Proven History of Shareholder Value Creation And Commitment to Our Communities 1st Quarter 2024 LKFN L I S T E D

2 David M. Findlay Chairman & Chief Executive Officer david.findlay@lakecitybank.com (574) 267‐9197 Kristin L. Pruitt President kristin.pruitt@lakecitybank.com (574) 371‐9220 Lisa M. O’Neill Executive Vice President & Chief Financial Officer lisa.oneill@lakecitybank.com (574) 267‐9125

3 Forward‐Looking Information This presentation contains, and future oral and written statements of the Company and its management may contain, forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward‐looking statements are not historical facts and are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “continue,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” or other similar expressions. All statements in this presentation, including forward‐looking statements, speak only as of today’s date, and the Company undertakes no obligation to update any statement in light of new information or future events. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain and, accordingly, you are cautioned not to place undue reliance on any forward‐looking statement. Actual results could differ materially from those addressed in the forward looking statements as a result of numerous factors, including the effects of economic, business and market conditions and changes, particularly in our Indiana market area, including prevailing interest rates and the rate of inflation; governmental monetary and fiscal policies; the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities; and changes in borrowers’ credit risks and payment behaviors, as well as those identified in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10‐K and quarterly reports on Form 10‐Q.

4 Long Term Success for Shareholders LTM ROE >13% Source: S&P Capital IQ Pro. Financial data is as of December 31, 2023. (1) Includes banks and thrifts traded on the NYSE, NYSEAM or NASDAQ as of 4/5/24; excludes merger targets. (2) Defined as having positive net income before extraordinary items and preferred dividends for each of the last 10 years (calendar years ended December 31, 2014 through December 31, 2023). Net income before extraordinary items is defined by S&P Capital IQ Pro as GAAP net income, after taxes, minority interest, and other after tax items, but before any extraordinary items. Excludes any revaluation of net deferred tax assets due to tax reform per S&P Capital IQ Pro. (3) Defined as having compounded annual growth in tangible book value per share from 12/31/03 through 12/31/23 greater than 8%. 20-Year TBVPS CAGR >8%(3) Profitable for the Last 10 Years(2) Exchange Traded Depositories with Assets Between $1B and $10B(1) 6 Institutions 13 Institutions 158 Institutions 191 Institutions (including LKFN) LTM ROE >13%

Tangible Common Equity 91.9% Allowance for Credit Losses 8.1% $2 5. 05 $3 1. 52 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 20 19 20 21 20 23 Tangible Book Value(1) Per Share 5 Strong Capital Structure Key Ratios and Per Share Data as of March 31, 2024 9.80%TCE/Tangible Assets 12.03%Adj. TCE/Adj. Tangible Assets 15.46%Total Risk‐Based 12.01%Leverage $25.20Book Value $25.05Tangible Book Value $31.52Adj. Tangible Book Value Note: Tangible Common Equity to Tangible Assets and Tangible Book Value per Common Share are Non‐GAAP financial measures. See “Reconciliation of Non‐GAAP Financial Measures” in the First Quarter 2024 Earnings Press Release and Form 8‐K. (1)compounded annual growth rate computed from 1991‐2024 *TBV adjusted to exclude the market value impact of AFS investment securities for TCE and Tangible Assets *

6 Lake City Bank Today •A long‐term and consistent organic growth story •Headquartered in Warsaw, Indiana • 53 branch offices ‐ $6.6 billion banking assets ‐ $3.3 billion trust, retirement and investment brokerage assets • Focused on execution – “blocking and tackling” • Continued growth potential

7 32 Years of Organic Growth Record Net Income for 32 of 35 Years $2 ,7 07 $9 3, 76 7 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 Net Income (000’s) Compound Annual Growth 1991 – 2023 • Loans = 11% • Deposits = 10% • Net Income = 12% • Earnings Per Share = 12%

8 Established Market Presence Organic Growth Potential in Mature and Expanding Markets

9 A Continued Path to Economic Growth • 67% of Lake City Bank counties are growth counties • 40% are high growth counties • Indiana is poised to experience continued economic strength and vitality

10 Strong Regional and Statewide Economy Indiana Unemployment Rate is Lower than the National Average 8. 8% 6. 5% 5. 2% 4. 6% 3. 8% 3. 3% 3. 7% 3. 0% 11 .3 % 4. 5% 2. 4% 3. 3% 3. 9% 9. 0% 6. 9% 5. 6% 5. 1% 4. 3% 3. 8% 4. 1% 3. 4% 11 .9 % 4. 7% 3. 4% 3. 8% 4. 2% 8. 1% 7. 0% 5. 8% 5. 2% 4. 9% 4. 4% 4. 1% 3. 8% 13 .0 % 6. 6% 4. 1% 3. 9% 4. 2% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2013 Feb 2014 Feb 2015 Feb 2016 Feb 2017 Feb 2018 Feb 2019 Feb 2020 Feb 2020 May 2021 Feb 2022 Feb 2023 Feb 2024 Feb Consolidated LCB Footprint Indiana United States U ne m pl oy m en t Source: United States Bureau of Labor Statistics. Lake City Bank footprint is defined as Kosciusko, Marshall, Fulton, Pulaski, Noble, Whitley, St. Joseph, Elkhart, LaGrange, Allen, DeKalb, Huntington, Marion, Hamilton and Johnson Counties in Indiana

11 Lake City Bank Balance Sheet Dynamics 1. Capital Strength 2. Diversified Deposit Composition 3. Liquidity Availability 4. Investment Securities Portfolio 5. Asset Liability Management

12 Fortress Balance Sheet in Excess of Regulatory Capital Requirements LKFN Above Peer Long‐Term Profitability has Contributed to a Strong Capital Foundation 13.3% 15.5% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% Q4'10 Q4'11 Q4'12 Q4'13 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 Risk‐Based Capital Ratio Proxy Peer Average RBC Q4’23 14.7% Well Capitalized Threshold 10.0% for Consolidated Risk‐Based Capital Source: S&P Capital IQ Pro. Financial data

13 Deposit Composition Provides Diversification Commercial Deposits Increase Share of Total Deposits Total Retail $1,770,007 32% Total Public Fund $1,544,775 27% Total Commercial $2,117,536 38% Brokered Deposits $185,767 3% March 31, 2024 Total Deposits ‐ $5.6 billion DDA $1,254,200 DDA % of Total Deposits – 22% (000’s) (000’s) Total Retail $1,617,133 39% Total Public Fund $1,127,111 27% Total Commercial $1,276,047 31% Brokered Deposits $113,528 3% December 31, 2019 Total Deposits ‐ $4.1 billion DDA‐ $983,307 DDA % of Total Deposits – 24%

14 Diversified Deposit Base Deposits Are Not Concentrated to Any Industry or Client • Deposit composition has remained stable with commercial deposits increasing as a percent of total deposits • Lake City Bank had 119,084 deposit accounts at March 31, 2024. 116,632, or 98%, of those accounts are less than $250,000 • Public Funds in Indiana are covered by the Public Deposit Insurance Fund (PDIF). Collateral is not pledged to public funds.

15 Checking Accounting Trends by Deposit Sector Commercial Accounts Grow by 20% since December 2019 $1 ,1 05 ,2 67 $2 ,0 79 ,4 07 $1 ,9 53 ,9 69 $2 ,1 05 ,4 11 $1 ,9 91 ,3 51 $6 58 ,4 51 $1 ,1 71 ,1 26 $1 ,0 73 ,3 14 $9 37 ,4 58 $9 39 ,0 93 $8 34 ,9 53 $1 ,2 18 ,8 54 $1 ,3 82 ,5 65 $1 ,3 09 ,9 65 $1 ,3 14 ,4 16 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Dec 2019 Dec 2021 Dec 2022 Dec 2023 Mar 2024 Commercial Retail Public Funds Ch ec ki ng A cc ou nt B al an ce s Checking Account Average Balances by Deposit Type Public FundsRetailCommercial (000) $5,454$15$12903/31/24 $5,369$15$13712/31/23 $6,615$18$13212/31/22 $6,004$20$14412/31/21 $4,073$12$8612/31/19 Number of Checking Accounts by Deposit Type Public FundsRetailCommercial 24161,94415,47503/31/24 24461,72515,40212/31/23 20960,52814,82412/31/22 20359,49214,41412/31/21 20556,17712,92112/31/19 Pre‐ Pandemic (000) Note: Checking account balances include demand deposits and interest‐bearing checking products and exclude goal accounts

16 Liquidity Overview • Available liquidity is stable at $3.1 billion, up from $3.0 billion at March 31, 2023 • Sources of liquidity are varied and represent wholesale funding and brokered deposits • Brokered deposits represent 3% of total deposits • Noncore funding represented 7% of total deposits and purchased funds as of March 31, 2024 vs. 6% as of March 31, 2023

17 Projected Impact of Rising/Falling Rates Asset Sensitive Balance Sheet Continues Neutral Shift Graph presents 12 month projected net interest income simulation results as of March 31, 2024 using parallel shocks ‐5.62% ‐2.98% ‐1.16% ‐0.49% ‐0.22% 0.17% 0.31% 0.52% 0.95% 1.35% ‐10.00% ‐5.00% 0.00% 5.00% 10.00% NII ‐ Rates Dn 300 NII ‐ Rates Dn 200 NII ‐ Rates Dn 100 NII ‐ Rates Dn 50 NII ‐ Rates Dn 25 NII ‐ Rates Up 25 NII ‐ Rates Up 50 NII ‐ Rates Up 100 NII ‐ Rates Up 200 NII ‐ Rates Up 300

18 Evolution of Deposit and Loan Betas Deposit Mix Shift Has Stabilized • NIM compressed by 39 basis points from 1Q23 to 1Q24 resulting primarily from a deposit mix shift to interest‐ bearing deposits • Noninterest bearing deposits represent 22% of total deposits at March 31, 2024 compared to 28% at March 31, 2023 and 24% at December 31, 2023 • Total cumulative deposit beta of 52% from March 2022 to March 2024 is higher than past FED tightening cycle (2016‐2018) of 45% • Total cumulative loan beta of 55% has lagged past FED tightening cycle (2016‐2018) of 61%

19 Interest Rate Sensitivity Asset Sensitivity Decreased Due to Shift to Shorter Term Funding Fixed Rate $1,623,285 37% Prime $1,100,397 25% SOFR $1,125,127 25% FHLB/Other $594,063 13% Commercial Loans $4.4 billion as of March 31, 2024 (000’s) • Asset sensitivity impacted by shift to interest‐bearing transaction and short‐term time deposit accounts • Approximately $690.7 million of fixed rate commercial loans are estimated to reprice in the next twelve months • Fixed rate loans have shorter, average original terms of approximately 5 years • 89% of loan portfolio consists of commercial loans and 63% of commercial loans are tied to variable interest rates

20 Shareholder Value Strategy 1. Commercial Banking Focus 2. High Quality Team Members 3. Proven Organic Growth Experience 4. Focus on Core Deposit Funding 5. Commitment to Technology

21 Commercial Banking Focus Experienced Relationship Driven Team • 42 credit “smart” commercial bankers • Average 24 years in banking & 13 years at Lake City Bank • We live where we lend • Face to face calling matters and is a team effort • We understand our clients’ needs • Deep organizational structure provides credit and administrative support • We cross sell aggressively by leveraging technology • Capital capacity supports organic loan growth

22 Credit Process Commercial Banking Focus • Our credit discipline has never changed • We have a centralized committee structure • We are in‐market lender to in‐market clients • Character matters – we lend to people first • We focus on management/cash flow • Structure is important and is disciplined • CRE portfolio has nominal office exposure (1.5% of total) with focus on owner occupied, in‐market multifamily, and strong credit tenant transact projects

23 Corporate Social Responsibility Over 150 Years of Focusing on Our Customers, Employees and Our Communities • Supporting our communities since 1872 • Caring for and building a diverse and inclusive team • Delivering customer‐focused loan and deposit products to our communities • Developing strong cybersecurity controls to protect our customers’ data • Supporting financial literacy in our footprint • Caring for the environment • Focusing on continued, positive corporate stewardship

24 Lake City Bank Culture High Quality Team Members • Our culture is our greatest asset and we will preserve it • Lake City University drives our culture • Diversity, Equity and Inclusion are ongoing initiatives that create a culture of belonging • Our community involvement is real and critical to our strategy • Our culture has not been diluted by acquisition

25 Mature1 Market Deposit Performance Organic Growth 2013 – 2023 $2,631 $2,419 $1,975 $483 $459 $417 $359 $221 ‐$300 ‐$1,472 ‐$2,000 ‐$1,500 ‐$1,000 ‐$500 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 1st Source Lake City Bank JPM Chase PN C Star First M erchants Fifth Third O ld N ational KeyBank Flagstar(2) Lake City Bank has grown deposits by 100% over the last ten‐year period. 1Mature Markets include 12 Northern Indiana counties and exclude 3 Central Indiana counties 2Flagstar acquired Wells Fargo branches in 2018 Totals adjusted to include branches subsequently acquired by surviving banks. Source: FDIC 6/30/23 Statistics

26 A Strong Environment for Growth and Expansion • Indiana #1 manufacturing state in the country(1) • Indiana seasonally adjusted unemployment at 3.5% as of February 2024(2) • Indiana received three tech hub designations from the federal government in microelectronics, hydrogen energy and biotechnology for tech‐focused ventures.(3) • Electric Vehicle battery plant planned in St. Joseph County (South Bend) will add approximately 1,700 jobs in the area • General Motors is making a $632 million investment in its Allen County (Fort Wayne) facility • Stellantis and Samsung SDI make $3.2 billion investment in Electric Vehicle battery manufacturing facility in Kokomo, IN(4) • A new semiconductor factory will be built by SK hynix, Inc. in West Lafayette and will add over 800 high wage jobs. SK hynix’s investment is the first of its kind in the U.S. (1) https://www.statsamerica.org/sip/rank_list.aspx?rank_label=gsp2_b&item_in=12&ct=S18 (2) https://fred.stlouisfed.org/graph/?graph_id=880632&rn=643 (3) https://www.iedc.in.gov/events/news/details/2023/11/28/indiana‐tech‐hub‐wins‐will‐surge‐state‐s‐economy (4) https://www.iedc.in.gov/events/news/details/2023/10/11/gov‐holcomb‐announces‐second‐stellantis‐samsung‐sdi‐ ev‐battery‐manufacturing‐facility‐3b‐investment (5) https://www.iedc.in.gov/events/news/details/2024/04/03/gov.‐holcomb‐announces‐generational‐multi‐billion‐ dollar‐investment‐to‐make‐indiana‐leader‐in‐semiconductor‐packaging

27 Commitment to Technology Innovation and Competitive Technology is a Focus • Fintech partnerships play a significant role in our technology stack and enable delivery of innovative solutions to our customers • Investments in Lake City Bank Digital, a Q2 product implemented in 2021 with ongoing functionality added since initial adoption • Technology partnership with FIS is strong – User Planning Council and Strategic Planning Advisory Council • Retail and Commercial platforms ensure competitive positioning • AI and data gathering and analysis is playing an increasingly important role • Branch design and functionality is ever evolving based on client transaction and relationship activity

28 Channel Utilization Today versus Pre‐Pandemic Mobile Adoption Outpacing All Other Delivery Channels Period Change % of Total Total Transactions 2024(1) % of Total Total Transactions 2019(1) Channel Type (10)%15%2,048,09418%2,279,975Branch Transactions (16)%6%790,4947%944,785ATM/ITM (36)%23%3,247,54440%5,058,317Online Logins 84%55%7,743,14433%4,199,910Mobile Logins(2) (25)%1%200,4222%265,475Telephone Banking 10%100%14,029,698100%12,748,462Total (1) Measurement period includes twelve months of data ending December 31, 2019 and March 31, 2024 (2) Includes mobile phone, Apple watch and iPad app use

29 Customer Composition and Digital Adoption Digital Platform Upgrade with Fintech Partner in 2021 Positively Impacting Digital Adoption Across All Generations Customer Composition and Digital Adoption Over Three Years 3/31/223/31/233/31/24 Customer Breakdown Generation(1) n/an/a1%3%Gen Alpha (2010 ‐ Current) 45%52%67%15%Gen Z (1996 ‐ 2009) 55%60%60%26%Millennial (1977 ‐ 1995) 46%50%51%19%Gen X (1965 ‐ 1976) 41%44%44%29%Baby Boomer (1946 ‐ 1964) 27%30%31%8%Mature (1945 or before) 44%49%50%Digital Adoption (1) Gen Alpha previously included with Gen Z data for periods prior to March 2024

Financial Performance

31 Income Performance Metrics LKFN Performance Exceeds National Peers and Contributes to Strong Capital Levels 1.76% 1.55% 1.56% 1.62% 1.45% 1.44% 15.47% 13.51% 14.19% 17.40% 15.93% 14.59% 15.57% 13.59% 14.27% 17.52% 16.03% 14.68% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 0.70% 1.20% 1.70% 2.20% 2.70% 2019 2020 2021 2022 2023 YTD 2024 Return on Average Assets Return on Average Equity Return on Average Tangible Common Equity RO AA RO AE a nd R O AT E 1Source KBW Price Performance Review December 31, 2023 ROAE and ROATE LTM Peer Average Data1 National Indiana ROAE 8.6% 8.9% ROATE 10.0% 10.3% ROAA LTM Peer Average Data1 National Indiana ROAA 0.75% 0.78%

32 Net Income and EPS Core Operational Profitability Declines by 7% in 2024 $87,047 $84,337 $95,733 $103,817 $93,767 $101,575 $24,278 $23,401 $3.38 $3.30 $3.74 $4.04 $3.65 $3.95 $0.94 $0.91 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $0 $20,000 $40,000 $60,000 $80,000 $100,000 2019 2020 2021 2022 2023 2023 Adjusted (1) YTD 2023 YTD 2024 Net Income Diluted EPS N et In co m e EP S 2024 Net Income YOY decrease (4)% 2024 Diluted EPS YOY decrease (3)% 2024 Core Operational Profitability YOY decrease (7)% 2024 Core Operational Profitability per share YOY decrease (6)% 12023 Year to date net income adjusted reflects Core Operational Profitability and excludes the 2023 wire fraud loss net of insurance recoveries, salary and benefits adjustment and taxes for a total net of tax impact of $7.8 million or $0.30 per diluted share Compound annual growth rate “CAGR” is based on the most recent 5‐year calculation

33 Pretax Pre‐Provision Earnings Pretax Pre‐Provision Earnings Impacted by Decline in Net Interest Income $110,620 $118,646 $118,521 $134,539 $116,183 $126,544 $32,399 $29,323 2.24% 2.19% 1.93% 2.09% 1.80% 1.96% 2.05% 1.80% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 2019 2020 2021 2022 2023 2023 (1) YTD 2023 YTD 2024 Pretax Pre‐Provision Earnings Pretax Pre‐Provision/Average Assets Pr et ax P re ‐P ro vi sio n Ea rn in gs Pr et ax P re ‐P ro vi sio n Ea rn in gs /A ve ra ge A ss et s Note: Pretax Pre‐Provision Earnings is a Non‐GAAP financial measure. See “Reconciliation of Non‐ GAAP Financial Measures” in the First Quarter 2024 Earnings Press Release and Form 8‐K. 2024 Pretax Pre‐Provision Earnings YOY Decrease (9)% 12023 Year‐to‐date Adjusted Earnings Before Income Taxes excludes the wire fraud loss net of recoveries and salary and benefits adjustments totaling $10.4 million Compound annual growth rate “CAGR” is based on the most recent 5‐year calculation

34 Average Loans Average YTD Loan Growth of $246 million or 5% Compared to Prior Year 94% 95% 83% 77% 86% 88% 50% 60% 70% 80% 90% 100% 110% 120% $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2019 2020 (1) 2021 (1) 2022 (1) 2023 YTD 2024 Retail Commercial Average Loans to Average Deposits Lo an s Lo an s to D ep os it Ra tio (1) Includes $377 million in Average PPP loans in 2020, $238 million in 2021, and $8 million in 2022 2024 YOY Increase 5% $3,974,532 $4,424,472 $4,421,094 $4,427,166 $4,813,678 $4,971,020 Compound annual growth rate “CAGR” is based on the most recent 5‐year calculation

$1 ,6 16 $1 ,6 69 $1 ,6 30 $1 ,5 93 $1 ,6 37 $1 ,4 73 $1 ,4 46 $1 ,4 99 $1 ,4 10 $1 ,4 94 $1 ,5 53 $1 ,6 90 $1 ,7 46 $1 ,8 05 $1 ,8 24 $1 ,9 66 $1 ,8 85 $1 ,8 88 $1 ,8 07 $1 ,8 68 $1 ,8 37 $1 ,7 97 $1 ,7 38 $1 ,7 85 $1 ,8 35 $1 ,7 85 $2 ,0 66 $2 ,1 09 $2 ,0 44 $2 ,1 90 $2 ,2 06 $2 ,2 43 $2 ,3 21 $2 ,3 53 $2 ,3 98 $2 ,5 17 $2 ,6 96 $2 ,7 96 $2 ,8 17 $2 ,8 80 $2 ,9 18 $2 ,8 48 47% 49% 48% 46% 48% 42% 41% 42% 39% 40% 41% 42% 43% 43% 42% 42% 40% 40% 39% 39% 39% ‐$200 $300 $800 $1,300 $1,800 $2,300 $2,800 $3,300 $3,800 $4,300 $4,800 25% 35% 45% 55% 65% 75% 85% 95% Outstanding Available % Line Usage 35 Line of Credit Utilization Line Availability Increase Demonstrates Potential for Growth 4, 78 6 3, 41 3 3, 40 7 3, 41 6 3, 42 9 3, 42 3 3, 53 9 3, 55 4 3, 54 4 3, 60 0 3, 70 0 3, 79 5 4, 01 1 4, 20 3 4, 09 8 4, 34 2 4, 66 2 PPP Round 1 PPP Round 2 4, 68 1 4, 70 5 4, 68 7 4, 68 5

36 Line of Credit Utilization vs. Commercial DDA Commercial DDA Deposit Balances Continue to Normalize $3 89 ,0 51 $4 67 ,4 58 $5 72 ,9 66 $6 60 ,3 60 $7 40 ,5 76 $7 75 ,9 47 $7 61 ,6 86 $7 72 ,9 95 $8 49 ,0 92 $8 14 ,4 30 $8 83 ,9 56 $1 ,2 16 ,4 14 $1 ,2 18 ,9 43 $1 ,2 73 ,8 86 $1 ,3 39 ,6 73 $1 ,4 62 ,9 35 $1 ,4 93 ,2 45 $1 ,5 71 ,9 64 $1 ,5 61 ,7 47 $1 ,4 77 ,3 56 $1 ,5 10 ,9 10 $1 ,4 35 ,7 46 $1 ,2 57 ,7 97 $1 ,1 66 ,5 41 $1 ,1 13 ,4 49 $1 ,0 73 ,2 39 $1 ,0 02 ,1 12 50% 51% 50% 52% 54% 49% 47% 49% 48% 46% 48% 42% 41% 42% 39% 40% 41% 42% 43% 43% 42% 42% 40% 40% 39% 39% 39% $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 30% 35% 40% 45% 50% 55% 60% De c‐ 13 De c‐ 14 De c‐ 15 De c‐ 16 De c‐ 17 De c‐ 18 M ar ‐1 9 Ju n‐ 19 Se p‐ 19 De c‐ 19 M ar ‐2 0 Ju n‐ 20 Se p‐ 20 De c‐ 20 M ar ‐2 1 Ju n‐ 21 Se p‐ 21 De c‐ 21 M ar ‐2 2 Ju n‐ 22 Se p‐ 22 De c‐ 22 M ar ‐2 3 Ju n‐ 23 Se p‐ 23 De c‐ 23 M ar ‐2 4 Commercial DDA Line of Credit Utilization Li ne o f C re di t U til iza tio n Co m m er ci al D DA PPP Round 2 (000’s) PPP Round 1

37 Loan Portfolio Breakdown C&I Drives Lending Business Commercial & Industrial $1,477,276 30% Commercial RE ‐ Owner Occupied $833,410 17% Commercial RE ‐ Nonowner Occupied $744,346 15% Commercial RE ‐Multifamily $239,974 5% Commercial RE ‐ Construction $659,712 13% Agri‐business ‐ Agriculture $367,852 7% Other Commercial $120,302 2% Residential Mortgage $260,633 5% Home Equity $188,927 4% Installment ‐ Other Consumer $108,325 2% $5.0 billion as of March 31, 2024 (000’s) Note: Loan breakdown is presented by Federal Reserve Bank (“FRB”) Collateral Code as reported on the call report.

Multifamily Housing $545,292 11% Agriculture $428,470 9% Industrial Warehouses $179,719 4% RV Industry $211,145 4% Senior Living $154,370 3% Lessors of Nonresidential Buildings $138,848 3% Automobile Dealers $125,751 2% Nonbank Lenders $126,083 2% Misc. Durable Goods Merchant Wholesalers $105,381 2% Restaurants $104,527 2% 38 Top 10 Industry Concentrations Loan Portfolio is Diversified ‐ Commercial Office Space Represents 1.5% of Loans Top 10 Industries Represent 42% or $2.1 billion of Total Loans Note: Industry data is obtained from loan classifications pursuant to the North American Industry Classification System (“NAICS”)

39 Average Deposits Pandemic’s Deposit Surge Peaked in 2022 $4,242,524 $4,650,597 $5,357,284 $5,717,358 $5,604,228 $5,630,431 98% 98% 99% 100% 97% 97% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 150% $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2019 2020 2021 2022 2023 YTD 2024 Average Deposits % of Funding De po sit s De po sit s as a P er ce nt o f T ot al F un di ng (000’s) 2024 YOY Increase 3% Compound annual growth rate “CAGR” is based on the most recent 5‐year calculation

40 Deposit Breakdown Deposit Costs Rise in Response to Interest Rate Environment and Increased Competition Total Retail $1,770,007 32% Total Public Fund $1,544,775 27% Total Commercial $2,117,536 38% Brokered Deposits $185,767 3% March 31, 2024 Total Deposits ‐ $5.6 billion (000’s) 1.19%0.98% 0.63%0.48%0.50%0.54% 0.72% 1.10% 1.35% 0.63% 0.28% 0.63% 2.46% 2.94% 0.00% 1.00% 2.00% 3.00% 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 YT D 20 24 Cost of Deposits 20242019Deposit Composition at end of period 22%24%Non‐interest Bearing Demand Deposits 60%47%Interest Bearing Demand, Savings & MMA 14%22%Time Deposits > or = to $100,000 4%7%Time Deposits < $100,000 $5.6$4.1Total Deposits (billions)

‐$100,000 $100,000 $300,000 $500,000 $700,000 $900,000 $1,100,000 $1,300,000 $1,500,000 $1,700,000 Checking and MMA CDs 41 Public Fund Deposit Trends Majority of Public Funds are Core Checking Account Deposits $1 ,2 91 ,1 70 $1 ,2 25 ,1 27 $1 ,2 50 ,5 76 $1 ,2 15 ,5 33 $1 ,2 11 ,1 48 $1 ,2 53 ,7 04 $1 ,2 81 ,4 51 $1 ,1 27 ,1 11 $1 ,1 32 ,4 38 $1 ,1 03 ,0 14 $1 ,2 12 ,1 31 $1 ,1 62 ,4 57 $1 ,2 04 ,1 53 $1 ,2 75 ,3 88 $1 ,2 89 ,6 03 $1 ,2 84 ,6 41 $1 ,4 81 ,1 00 $1 ,4 58 ,1 79 $1 ,3 40 ,5 66 $1 ,3 56 ,8 51 $1 ,4 29 ,8 73 $1 ,5 63 ,5 57 $1 ,4 50 ,5 27 $1 ,5 63 ,0 15 $1 ,5 44 ,7 75

42 Net Interest Income Deposit Mix Shift Reduces Net Interest Margin $155,047 $163,008 $178,088 $202,887 $197,035 $51,519 $47,416 3.38% 3.19% 3.07% 3.40% 3.31% 3.54% 3.15% 2.50% 3.00% 3.50% 4.00% 4.50% $0 $50,000 $100,000 $150,000 $200,000 $250,000 2019 2020 2021 2022 2023 YTD 2023 YTD 2024 Net Interest Income Net Interest Margin, fully tax equivalent (000’s) N et In te re st In co m e N et In te re st M ar gi n, fu lly ta x eq ui va le nt 2024 YOY Decrease (8)%Compound annual growth rate “CAGR” is based on the most recent 5‐year calculation

43 Asset Quality Watchlist Loans as a Percentage of Total Loans Remain at Historic Lows 1. 52 % 2. 15 % 2. 75 % 1. 37 % 0. 94 % 0. 50 % 0. 42 % 0. 19 % 0. 25 % 0. 19 % 0. 46 % 0. 26 % 0. 35 % 0. 36 % 0. 32 % 0. 30 % 1. 22 % 1. 82 % 2. 20 % 1. 75 % 1. 31 % 0. 41 % 0. 35 % 0. 16 % 0. 20 % 0. 16 % 0. 38 % 0. 21 % 0. 23 % 0. 27 % 0. 25 % 0. 23 % 8.86% 8.17% 7.46% 8.06% 6.64% 5.75% 4.64% 4.28%4.50%4.77% 4.43% 6.75% 5.50% 3.42%3.72%3.67% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD 2024 Nonperforming Loans/Total Loans Nonperforming Assets/Total Assets Individually Analyzed and Watch List Loans to Total Loans excluding PPP N on pe rf or m in g As se ts to T ot al A ss et s W at ch L ist L oa ns to T ot al L oa ns e xc lu di ng P PP

44 Asset Quality Allowance for Credit Losses Represents Strong Coverage 0. 42 % 0. 54 % 0. 25 % 0. 20 % 0. 11 % 0. 10 % 0. 09 % 0. 03 % ‐0 .0 1% 0. 13 % 0. 03 % 0. 09 % 0. 09 % 0. 10 % 0. 13 % 0. 03 % 1.59% 2.15% 2.39% 2.28% 1.92% 1.67% 1.42% 1.26% 1.23% 1.24% 1.25% 1.45% 1.59% 1.54% 1.46% 1.46% 0.00% 0.30% 0.60% 0.90% 1.20% 1.50% 1.80% 2.10% 2.40% 2.70% ‐0.10% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD 2024 AC L to T ot al L oa ns , e xc lu di ng P PP N et C ha rg eo ffs to A ve ra ge L oa ns Net Chargeoffs/Average Loans Allowance for Credit Losses to Total Loans, excluding PPP Note: Current Expected Credit Loss (“CECL”) Standard adopted effective 1/1/21

45 Noninterest Income Noninterest Income Includes $1.0 million in Insurance Recoveries in 2024 $44,997 $46,843 $44,720 $41,862 $49,858 $10,314 $12,61222% 22% 20% 17% 20% 17% 21% 0% 10% 20% 30% 40% 50% 60% $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2019 2020 2021 2022 2023 (1) YTD 2023 YTD 2024 N on ‐In te re st In co m e as % o f T ot al R ev en ue N on ‐In te re st In co m e Non‐Interest Income % of Total Revenue 2024 YOY Increase 22% 2024 Core Noninterest Income YOY Increase 13% (000’s) 12023 Year‐to‐date noninterest income adjusted reflects Core noninterest income and excludes 2023 wire fraud loss recoveries of $6.3 million. Compound annual growth rate “CAGR” is based on the most recent 5‐year calculation

46 2024 YOY Decrease (3)% Total Revenue Revenue Growth Benefited by Loan Growth and Improvement in Noninterest Income $200,044 $209,851 $222,808 $244,749 $246,893 $61,883 $60,028 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2019 2020 2021 2022 2023 YTD 2023 YTD 2024 (000’s) Compound annual growth rate “CAGR” is based on the most recent 5‐year calculation

47 Non‐Interest Expense $89,424 $91,205 $104,287 $110,210 $130,710 $114,049 $29,434 $30,705 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 2019 2020 2021 2022 2023 2023 Adj. (1) YTD 2023 YTD 2024 (000’s) 2024 YOY Increase 4% 12023 Year‐to‐date noninterest expense adjusted reflects Core Noninterest Expense and excludes the 2023 wire fraud loss of $18.1 million net of $1.4 million salary and benefits adjustment, or $16.7 million, net. Noninterest Expense Growth at 4% for 2024 Compound annual growth rate “CAGR” is based on the most recent 5‐year calculation

48 Efficiency Ratio Efficiency Ratio Normalizing in 2024 51% 52% 50% 50% 48% 46% 45% 45% 43% 47% 45% 53% 51% 47% 0% 10% 20% 30% 40% 50% 60% 70% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD 2024 Efficiency Ratio Adjusted Core Efficiency Ratio Constant investment in technology and facilities 12023 Year‐to‐date adjusted core efficiency ratio excludes the second quarter 2023 wire fraud loss loss, net, of salary and benefits adjustment for a total of $16.2 million

49 Stable Healthy Dividend Growth in Dividend Reflects Strength of Capital $1.16 $1.20 $1.36 $1.60 $1.84 $0.46 $0.48 2.40% 2.24% 1.70% 2.19% 2.82% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% $0.10 $0.30 $0.50 $0.70 $0.90 $1.10 $1.30 $1.50 $1.70 $1.90 2019 2020 2021 2022 2023 YTD 2023 YTD 2024 Dividend Per Share ‐ split adjusted Dividend Yield 2024 YOY Increase 4% Di vi de nd p er S ha re Di vi de nd Y ie ld Compound annual growth rate “CAGR” is based on the most recent 5‐year calculation

50 LKFN Shareholder Value Total Return Performance from 12/31/00 to 3/31/24 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 LKFN S&P 500 S&P 500 Financials S&P US BMI Banks Index 3,500.00 3,000.00 2,500.00 2,000.00 1,500.00 1,000.00 500.00 0.00 (500.00) 2,800.73% 521.43% 190.77% 179.99%

51 Investment Highlights • Proven History of Organic Growth •Disciplined and Focused Strategy • Strong Internal Culture • Consistent Execution • Service Excellence Drives Shareholder Value

Supplemental Information

53 Lake City Bank Capital Adequacy Capital Strength Continues in March 2024 Non‐GAAP Adjusted Capital Ratios with AOCI and HTM Losses Non‐GAAP Excess Capital after AOCI and HTM Non‐GAAP AOCI and HTM Losses‐ after tax Capital Cushion (in 000’s) Well‐ Capitalized Threshold March 31, 2024 Actual Regulatory Ratio Description * 9.28%$288,132$(177,935)$466,0665.00%11.93%Tier 1 Leverage Ratio 10.98%$254,785$(171,935)$432,7206.50%14.11%Common Tier 1 (CET) 10.98%$169,444$(177,935)$347,3198.00%14.11%Tier 1 Risk Based Capital 12.23%$126,888$(177,935)$304,82310.00%15.36%Tier 2 Risk Based Capital * Regulatory Ratios are preliminary pending the finalization of regulatory filings

54 Liquidity Preparedness March 31, 2024 Additional Loan Collateral Available for PledgeUnused/ AvailableUsed Liquidity Availability(000) Secured/Committed Borrowings: $ ‐‐$ 408,036$ 200,000$ 608,036Federal Home Loan Bank‐Indianapolis(1) 205,0791,241,996‐‐1,241,996Federal Reserve Bank Discount Window $ 205,079$ 1,650,032$ 200,000$ 1,850,032 Total Secured/Committed Unsecured/Uncommitted Borrowings: $ ‐‐$ 431,809$ 150,000 $ 581,809Brokered Certificates of Deposit(2) ‐‐171,27825,728197,006Brokered Money Market Deposit(3) ‐‐89,96110,039100,000Insured Cash Sweep‐One Way Buy(4) ‐‐325,000‐‐325,000Fed Fund Lines $ ‐‐$ 1,018,048$ 185,767$ 1,203,815Total Unsecured/uncommitted borrowings Investment Securities available for pledge: ‐‐126,243‐‐126,243Agencies, MBS and CMO(5) ‐‐337,311‐‐337,311Municipals(6) ‐‐463,554‐‐463,554Total Investment Securities Available $ 205,079$ 3,131,634$ 385,767$ 3,517,401Total Lake City Bank Liquidity Preparedness (1) The BOD has authorized borrowing capacity up to $800 million, and qualifying collateral is required for availability (2) Brokered deposit capacity is equal to 10% of total deposits plus purchased funds, per LCB policy (3) Brokered money market capacity is equal to 3% of total assets, per LCB policy (4) Insured cash sweep OWB capacity is approved under program by IntraFi Network (formerly Promontory) (5) Investment securities are eligible collateral at the FRB – Discount Window and FHLB (6) Municipal securities are eligible collateral at the FRB – Discount Window

55 Investment Portfolio Recurring Cash Flows Used to Fund Organic Loan Growth M V In ve st m en ts a s a % o f A ss et s Note: Ratio of total securities to total assets excludes PPP loans of $412 million in 2020, $26 million in 2021 and $2 million in 2022 from total assets 13% 12% 12% 12% 12% 14% 21% 20% 18% 17% 0% 5% 10% 15% 20% 25% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 March 31, 2024 Market ValueBook YieldWeighted Maturity 95,2192.064.27US Govt REMICS 336,7991.997.68US Govt Pools 116,4521.559.71US Agencies 466,0112.8915.51AFS Municipals (TEY) 115,4672.7316.67HTM Municipals (TEY) $1,129,9482.39%11.73Total (Tax‐Equivalent Yield) Held‐to‐Maturity 130,335$ Available‐for‐Sale 1,014,481$ Carrying Value US Govt Remics 9% US Govt Pools 30% AFS Municipals 41% HTM Municipals 10% US Govt Agencies 10%

56 Investment Security Portfolio Cashflows Cash Flows of $386 million Expected Through March 2028 18 ,6 92 ,6 99 18 ,4 30 ,7 39 17 ,2 61 ,2 99 16 ,5 76 ,6 91 16 ,7 57 ,3 28 17 ,0 54 ,1 99 16 ,0 31 ,2 91 18 ,1 26 ,6 89 15 ,3 79 ,4 20 23 ,6 36 ,2 36 14 ,7 87 ,8 36 14 ,4 44 ,9 40 16 ,6 15 ,7 68 14 ,5 58 ,6 26 13 ,7 41 ,2 64 14 ,1 08 ,5 82 7, 67 4, 70 6 8, 65 9, 49 3 7, 45 7, 92 1 8, 46 1, 63 4 7, 28 1, 32 9 8, 26 1, 80 3 7, 09 9, 51 1 8, 08 6, 54 5 6, 93 7, 24 2 7, 85 7, 00 7 6, 75 4, 73 9 7, 64 9, 20 3 6, 60 7, 19 0 7, 45 0, 81 4 6, 41 6, 22 1 7, 30 6, 41 1 ‐ 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 Principal Interest (000) Investment Portfolio has generated $227 million in cash flow and proceeds from sales January 2023 through March 2024

Investment Portfolio Analysis Investment Portfolio Declines as a Percentage of Total Assets in 2023 57 12/31/20233/31/2024 % of Total Market Value Weighted Maturity % of Total Market Value Weighted Maturity 8%98,2656.289%95,2194.27US Govt REMICS 30%349,5777.4430%336,7997.68US Govt Pools 10%119,4799.6810%116,4529.71US Agencies ‐‐‐‐‐‐US Treasury Notes/Bills 41%484,40715.6741%466,01115.51AFS Municipals (Exempt) 10%119,21516.9210%115,46716.67HTM Municipals 100%$1,170,943 11.89100%$1,129,94811.73Total ($174,591)($189,933)Unrealized losses AFS ($10,703)($14,868)Unrealized losses HTM ($185,294)($204,801)Total market value losses 6.56.6Portfolio effective duration 18%17%Investment securities as a % of assets

58 Commercial Loans by County Commercial Customers in 49 Indiana Counties and 21 Other States (1) All other counties individually represent less than 2% of total March 31, 2024 (000’s) Allen 18% Elkhart 15%St. Joseph 8% Kosciusko 10% Hamilton 9% Marion 14% Marshall 3% Other IN Counties (1) 17% Outside IN 6% Commercial Loans Outstanding as of 3/31/2024 $4.5 billion

59 Larger Market Organic Expansion Organic Growth # of Branches LCB Deposit Market Share** LCB EntryPopulation*Primary CityCounty State Rank 1264%187280,826WarsawKosciusko 21. 1123%1990206,890ElkhartElkhart6. 48%1997272,234South BendSt. Joseph5. 512%1999391,449Fort WayneAllen3. 71%20111,500,169IndianapolisHamilton, Johnson, Marion1. * Source: STATS Indiana ** Source: FDIC 6/30/23 Statistics

60 Mature Market Strength and Growth Organic Growth 2023 # of Offices 20132023 (millions)1 IncreaseShareDepositsShareDeposits 53100.15%14.33%$2,62719.69%$5,2581. 1st Source 53100.42%13.14%$2,40918.08%$4,8282. Lake City Bank 20117.84%9.14%$1,67613.68%$3,6513. JPM Chase 1739.88%6.60%$1,2116.34%$1,6944. PNC 963.76%3.57%$6544.01%$1,0715. First Merchants 23(59.69)%13.46%$2,4663.72%$9946. Flagstar/Wells Fargo(2) 10103.38%2.42%$4443.38%$9037. Star 937.97%3.18%$5823.01%$8038. Old National 897.03%2.02%$3702.73%$7299. Fifth Third 14(30.80)%5.32%$9742.52%$67410. KeyBank 45.66%$18,331$26,701Market Total 1Mature Markets includes 12 Northern Indiana counties and excludes 3 Central Indiana counties 2Flagstar purchased Wells Fargo Indiana branches in 2018 Adjusted to include branches subsequently acquired by surviving banks. Data based on June 30th regulatory reporting for each year presented.