Lakeland Financial Corporation

Lakeland Financial Corporation reported record second quarter net income of $28.4 million for the three months ended June 30, 2026, a 5% increase from $27.0 million a year earlier. Diluted earnings per share rose 9% to a record $1.13, while total revenue expanded 7% to $70.9 million. Average loans grew 6% to $5.53 billion, and the net interest margin improved 7 basis points to 3.49%. The company also declared a quarterly cash dividend of $0.52 per share, up 4% from the prior year.

Shares of several regional banks rose sharply in afternoon trading after softer-than-expected inflation data reduced expectations for further Federal Reserve interest rate hikes. Lake City Bank gained 3.5%, First Hawaiian Bank rose 3.3%, First Financial Bankshares added 3.1%, and both First Financial Bancorp and Customers Bancorp climbed 3.7%. The moves followed a June CPI reading of 3.5% and lower-than-expected producer prices, which bolstered investor confidence that inflationary pressures may be easing. A more stable rate environment is generally favorable for regional banks, potentially alleviating funding pressures and supporting lending activity, while strong second-quarter earnings from major financial institutions offered a bullish read-through for smaller lenders.