FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024:


	2025
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets:
U.S. Treasury securities	$	10,119	$	0	$	0	$	10,119
U.S. government sponsored agency securities	0		115,690		0		115,690
Mortgage-backed securities: residential	0		454,163		0		454,163

State and municipal securities	0		467,589		4,501		472,090
Total available-for-sale securities	10,119		1,037,442		4,501		1,052,062
Mortgage banking derivative	0		115		0		115
Interest rate swap derivative	0		14,634		0		14,634
Total assets	$	10,119	$	1,052,191	$	4,501	$	1,066,811

Liabilities:
Mortgage banking derivative	$	0	$	8	$	0	$	8
Interest rate swap derivative	0		14,634		0		14,634
Total liabilities	$	0	$	14,642	$	0	$	14,642


	2024
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets:

U.S. government sponsored agency securities	$	0	$	109,435	$	0	$	109,435
Mortgage-backed securities: residential	0		422,409		0		422,409

State and municipal securities	0		454,922		4,660		459,582
Total available-for-sale securities	0		986,766		4,660		991,426
Mortgage banking derivative	0		94		0		94
Interest rate swap derivative	0		25,403		0		25,403
Total assets	$	0	$	1,012,263	$	4,660	$	1,016,923

Liabilities:

Interest rate swap derivative	$	0	$	25,403	$	0	$	25,403
Total liabilities	$	0	$	25,403	$	0	$	25,403

Schedule of Assets Measured at Fair Value on a Non-Recurring Basis

The tables below present the amount of assets measured at fair value on a nonrecurring basis as of December 31, 2025 and 2024:


	2025
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Collateral dependent loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	0	$	0	$	1,719	$	1,719
Non-working capital loans	0		0		1,672		1,672
Commercial real estate and multi-family residential loans:
Owner occupied loans	0		0		811		811
Nonowner occupied loans	0		0		1,543		1,543
Agri-business and agricultural loans:
Loans secured by farmland	0		0		18		18
Consumer 1‑4 family mortgage loans:

Open end and junior lien loans	0		0		1,523		1,523

Total collateral dependent loans	0		0		7,286		7,286

Total assets	$	0	$	0	$	7,286	$	7,286


	2024
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Collateral dependent loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	0	$	0	$	23,174	$	23,174
Non-working capital loans	0		0		3,281		3,281
Commercial real estate and multi-family residential loans:

Owner occupied loans	0		0		664		664
Agri-business and agricultural loans:
Loans secured by farmland	0		0		32		32




Total collateral dependent loans	0		0		27,151		27,151

Total assets	$	0	$	0	$	27,151	$	27,151

Schedule of Valuation Methodology and Unobservable Inputs for Level 3 Assets Measured at Fair Value on a Non-Recurring Basis

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2025:

(dollars in thousands)

Fair Value

Valuation Methodology

Unobservable Inputs

Average

Range of Inputs

Collateral dependent loans:

Commercial and industrial

3,391

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

52%

6%-99%

Collateral dependent loans:

Commercial real estate and
multi-family residential

2,354

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

28%

7%-62%

Collateral dependent loans:

Loans secured by farmland

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

62%

Collateral dependent loans:

Consumer 1-4 family mortgage

1,523

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

12%

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2024:

(dollars in thousands)

Fair Value

Valuation Methodology

Unobservable Inputs

Average

Range of Inputs

Collateral dependent loans:

Commercial and industrial

26,455

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

51%

4%-99%

Collateral dependent loans:

Commercial real estate and multi-family residential

664

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

54%

Collateral dependent loans:

Loans secured by farmland

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

54%

Schedule of Estimated Fair Values and Related Carrying Values of Financial Instruments

The following tables contain the estimated fair values and the related carrying values of the Company’s financial instruments at December 31, 2025 and 2024. Items which are not financial instruments are not included.


	2025
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	141,318	$	141,318	$	0	$	0	$	141,318
Securities available-for-sale	1,052,062		10,119		1,037,442		4,501		1,052,062
Securities held-to-maturity	133,208		0		117,510		0		117,510
Real estate mortgages held-for-sale	2,707		0		2,753		0		2,753
Loans, net	5,306,354		0		0		5,257,552		5,257,552
Mortgage banking derivative	115		0		115		0		115
Interest rate swap derivative	14,634		0		14,634		0		14,634
Federal Reserve and Federal Home Loan Bank Stock	21,420		N/A		N/A		N/A		N/A
Accrued interest receivable	28,997		0		8,306		20,691		28,997
Financial Liabilities:
Certificates of deposit	$	750,726	$	0	$	748,798	$	0	$	748,798
All other deposits	5,222,624		5,222,624		0		0		5,222,624

Federal Home Loan Bank advances:
Short-term advance	170,000		169,998		0		0		169,998
Long-term advance	1,200		0		792		0		792
Other borrowings	13,000		0		12,997		0		12,997
Mortgage banking derivative	8		0		8		0		8
Interest rate swap derivative	14,634		0		14,634		0		14,634
Standby letters of credit	296		0		0		296		296
Accrued interest payable	8,868		410		8,458		0		8,868


	2024
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	168,205	$	168,205	$	0	$	0	$	168,205
Securities available-for-sale	991,426		0		986,766		4,660		991,426
Securities held-to-maturity	131,568		0		113,107		0		113,107
Real estate mortgages held-for-sale	1,700		0		1,733		0		1,733
Loans, net	5,031,988		0		0		4,916,231		4,916,231
Mortgage banking derivative	94		0		94		0		94
Interest rate swap derivative	25,403		0		25,403		0		25,403
Federal Reserve and Federal Home Loan Bank Stock	21,420		N/A		N/A		N/A		N/A
Accrued interest receivable	28,446		0		8,178		20,268		28,446
Financial Liabilities:
Certificates of deposit	$	855,876	$	0	$	851,933	$	0	$	851,933
All other deposits	5,045,090		5,045,090		0		0		5,045,090




Interest rate swap derivative	25,403		0		25,403		0		25,403
Standby letters of credit	294		0		0		294		294
Accrued interest payable	15,117		425		14,692		0		15,117

LAKELAND FINANCIAL CORP 10-K