Regional banking company Lakeland Financial (NASDAQGS:LKFN) met Wall Streets revenue expectations in Q4 CY2025, with sales up 7.9% year on year to $69.8 million. Its GAAP profit of $1.16 per share was 9.8% above analysts’ consensus estimates.
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Lake City Bank (LKFN) Q4 CY2025 Highlights:
- Net Interest Income: $57.19 million vs analyst estimates of $57.4 million (10.6% year-on-year growth, in line)
- Net Interest Margin: 3.5% vs analyst estimates of 3.5% (in line)
- Revenue: $69.8 million vs analyst estimates of $69.69 million (7.9% year-on-year growth, in line)
- Efficiency Ratio: 47.9% vs analyst estimates of 47.2% (74 basis point miss)
- EPS (GAAP): $1.16 vs analyst estimates of $1.06 (9.8% beat)
- Tangible Book Value per Share: $29.87 vs analyst estimates of $29.69 (12.2% year-on-year growth, 0.6% beat)
- Market Capitalization: $1.50 billion
“The Lake City Bank team produced a very strong fourth quarter with exceptional performance metrics that has created good momentum as we move into 2026. We are pleased with double-digit growth of net income compared to the prior year, which was driven by healthy net interest margin expansion and broad-based core revenue growth,” commented 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
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Unfortunately, Lake City Bank’s 5.1% annualized revenue growth over the last five years was sluggish. This was below our standard for the banking sector and is a rough starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Lake City Bank’s annualized revenue growth of 5.2% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. 
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 grew its revenue by 7.9% year on year, and its $69.8 million of revenue was in line with Wall Street’s estimates.
Net interest income made up 80.1% of the company’s total revenue during the last five years, meaning Lake City Bank barely relies on non-interest income to drive its overall growth.
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.
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Tangible Book Value Per Share (TBVPS)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.
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. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
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 8.5% annually over the last two years from $25.35 to $29.87 per share.
Over the next 12 months, Consensus estimates call for Lake City Bank’s TBVPS to grow by 8% to $32.26, paltry growth rate.
Key Takeaways from Lake City Bank’s Q4 Results
It was good to see Lake City Bank beat analysts’ EPS expectations this quarter. We were also happy its tangible book value per share narrowly outperformed Wall Street’s estimates. On the other hand, its net interest income was just in line. Zooming out, we think this was a mixed quarter. The stock remained flat at $58.83 immediately after reporting.
Is Lake City Bank an attractive investment opportunity right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
