Buoyed by stronger credit quality and higher mortgage banking income, Lakeland Financial of Warsaw, Ind., reported record first-quarter income of $8.6 million, up 45% from a year earlier.
The $2.9 billion-asset company said Wednesday that earnings per share totaled 52 cents, beating analysts' estimates by three cents, according to Thomson Reuters.
Lower net charge-offs, adequate reserve coverage for nonperforming loans and continued signs of the economy stabilizing led to the company's provision for loan losses falling almost 86%, to $799,000, from a year earlier.
Lakeland's noninterest income rose 21%, to $5.9 million, year over year, as mortgage banking income, wealth advisory fees and investment brokerage fees all increased. The bank's mortgage banking income was aided by a larger pipeline of refinanced loans stemming from low interest rates.
Net loans totaled $2.2 billion, up more than 5% from a year earlier. This growth was driven by a 13% increase in commercial and industrial loans. David M. Findlay, president and chief financial officer at Lakeland, said in a news release that he expects loan growth to be moderate as the economic recovery in the bank's markets continued.
The company's net interest income fell 4%, to $22.5 million, year over year, as interest and dividends on securities declined.
