About Lakeland Financial

Lakeland Financial Corporation operates as the bank holding company for Lake City Bank (the bank) that provides a broad array of financial products and services throughout its Northern and Central Indiana markets. The company offers commercial and consumer banking services, as well as trust and wealth management, brokerage, and treasury management commercial services. The company serves a diverse customer base, including commercial customers across a wide variety of industries including, among others, commercial real estate, manufacturing, agriculture, construction, retail, wholesale, finance and insurance, accommodation and food services, and health care. The bank has offices in fifteen counties, including offices in Northern Indiana and Central Indiana, in the Indianapolis market. The bank’s activities cover all traditional facets of commercial banking, including deposit products, commercial and consumer lending, retail and merchant credit card services, corporate treasury management services, and wealth advisory, trust and brokerage services. The bank’s business strategy is focused on building long-term relationships with its customers based on in person, top-quality service, high ethical standards and safe and sound lending. The bank operates as a community-based financial services organization augmented by experienced, centralized support in select critical areas. The bank’s local market orientation is reflected in its regional management, which divides the bank’s market area into five distinct geographic regions, each headed by a retail and commercial regional manager. While the company’s strategy encompasses all phases of traditional community banking, including consumer lending and wealth advisory and trust services, the company focuses on building expansive commercial relationships and developing retail and commercial deposit gathering strategies through relationship-based client services. Substantially all of the bank’s assets and income are located in and derived from the United States. Loan Portfolio As of December 31, 2023, the company’s loan portfolio included commercial and industrial loans, such as working capital lines of credit loans and non-working capital loans; commercial real estate and multi-family residential loans, such as construction and land development loans, owner occupied loans, nonowner occupied loans, and multi-family loans; agri-business and agricultural loans, such as loans secured by farmland and loans for agricultural production; other commercial loans; consumer 1-4 family mortgage loans, such as closed end first mortgage loans, and open end and junior lien loans; residential construction and land development loans; and other consumer loans. Investment Portfolio The company’s investment portfolio consists of the U.S. treasuries, government agencies, and municipal bonds. As of December 31, 2023, the company’s investment in the U.S government sponsored mortgage-backed securities represented approximately 38% of total investment securities fair value consisting of mortgage pools issued by Ginnie Mae, Fannie Mae, and Freddie Mac. Deposits As of December 31, 2023, the company’s deposits included non-interest bearing demand deposits; savings and transaction accounts, such as savings deposits and interest bearing demand deposits; and time deposits, such as other time deposits, deposits of $100,000 to $250,000, and deposits of $250,000 or more. Supervision and Regulation As a bank holding company, the company is registered with, and subject to regulation by, the Board of Governors of the Federal Reserve System (Federal Reserve) under the Bank Holding Company Act of 1956, as amended (BHCA). The bank’s deposits are insured by the Federal Deposit Insurance Corporation (the ‘FDIC’) to the maximum extent provided under federal law and FDIC regulations. In order to maintain the company’s status as a financial holding company, the company and the bank must be well-capitalized, well-managed, and the bank must have at least a satisfactory CRA (Community Reinvestment Act) rating. The company’s common stock is registered with the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934, as amended (Exchange Act). Consequently, the company is subject to the information, proxy solicitation, insider trading and other restrictions and requirements of the SEC under the Exchange Act. The deposit accounts of the bank are insured by the FDIC's Deposit Insurance Fund (DIF) to the maximum extent provided under federal law and FDIC regulations, $250,000 per insured depositor category. The bank is also a member of the Federal Reserve System (a ‘member bank’). As an Indiana-chartered FDIC- insured member bank, the bank is subject to the examination, supervision, reporting and enforcement requirements of the Indiana Department of Financial Institutions (DFI), the chartering authority for Indiana banks, the Federal Reserve, as the primary federal regulator of member banks, and the FDIC, as administrator of the DIF. CRA requires the bank to have a continuing and affirmative obligation in a safe and sound manner to help meet the credit needs of its entire community, including low- and moderate-income neighborhoods. The Consumer Financial Protection Bureau has broad rulemaking authority for a wide range of consumer protection laws that apply to all providers of consumer products and services, including the bank, as well as the authority to prohibit ‘unfair, deceptive or abusive’ acts and practices. History Lakeland Financial Corporation was founded in 1872. The company, an Indiana corporation, was incorporated in 1983.