ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (Tables)

3 Months Ended

Mar. 31, 2026

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

Schedule of Activity in the Allowance for Credit Losses by Portfolio Segment

The following tables present the activity in the allowance for credit losses by portfolio segment for the periods shown:


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multifamily Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Three Months Ended March 31, 2026
Beginning balance, January 1	$	28,436	$	30,163	$	3,315	$	1,041	$	3,996	$	1,719	$	325	$	68,995
Provision for credit losses	1,587		429		106		(226)		247		157		(300)		2,000
Loans charged-off	(1,986)		0		0		0		(65)		(145)		0		(2,196)
Recoveries	16		26		0		0		7		66		0		115
Net loans (charged-off) recovered	(1,970)		26		0		0		(58)		(79)		0		(2,081)
Ending balance	$	28,053	$	30,618	$	3,421	$	815	$	4,185	$	1,797	$	25	$	68,914


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multifamily Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Three Months Ended March 31, 2025
Beginning balance, January 1	$	45,539	$	30,865	$	3,541	$	743	$	3,358	$	1,531	$	383	$	85,960
Provision for credit losses	6,741		(423)		(41)		(20)		124		343		76		6,800
Loans charged-off	(10)		0		0		0		(24)		(474)		0		(508)
Recoveries	32		26		0		0		6		117		0		181
Net loans (charged-off) recovered	22		26		0		0		(18)		(357)		0		(327)
Ending balance	$	52,302	$	30,468	$	3,500	$	723	$	3,464	$	1,517	$	459	$	92,433

Schedule of Risk Category of Loans by Loan Segment and Origination Date

The following table summarizes the risk category of loans by loan segment and year of origination as of March 31, 2026:


(dollars in thousands)	2026		2025		2024		2023		2022		Prior		Term Total		Revolving		Total
Commercial and industrial loans:
Working capital lines of credit loans:
Pass	$	0	$	996	$	2,252	$	0	$	55	$	1,290	$	4,593	$	667,590	$	672,183
Special Mention	0		0		0		0		0		0		0		39,195		39,195
Substandard	0		300		97		2,057		922		377		3,753		27,258		31,011


Total	0		1,296		2,349		2,057		977		1,667		8,346		734,043		742,389
Working capital lines of credit loans:
Current period gross write offs	0		1,975		0		0		0		0		1,975		0		1,975
Non-working capital loans:
Pass	31,623		222,567		97,357		95,291		109,672		40,386		596,896		194,456		791,352
Special Mention	768		5,391		2,090		139		7,445		10,201		26,034		6,773		32,807
Substandard	0		314		647		1,986		1,490		4,011		8,448		387		8,835
Doubtful	0		0		0		0		0		73		73		0		73
Not Rated	45		1,038		263		621		471		224		2,662		0		2,662
Total	32,436		229,310		100,357		98,037		119,078		54,895		634,113		201,616		835,729
Non-working capital loans:
Current period gross write offs	0		0		0		0		0		0		0		11		11
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	8,069		20,475		29,894		5,263		491		709		64,901		436,730		501,631
Special Mention	0		0		0		0		0		0		0		5,798		5,798



Total	8,069		20,475		29,894		5,263		491		709		64,901		442,528		507,429
Construction and land development loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Owner occupied loans:
Pass	45,626		147,291		102,710		92,857		116,224		237,806		742,514		28,509		771,023
Special Mention	0		3,003		695		1,724		14,500		12,877		32,799		0		32,799
Substandard	0		0		303		277		0		2,959		3,539		0		3,539


Total	45,626		150,294		103,708		94,858		130,724		253,642		778,852		28,509		807,361
Owner occupied loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Nonowner occupied loans:
Pass	64,830		186,611		110,685		107,868		124,997		227,096		822,087		124,372		946,459


(dollars in thousands)	2026	2025	2024	2023	2022	Prior	Term Total	Revolving	Total
Nonowner occupied loans (continued):
Special Mention	0	0	0	11,223	58	0	11,281	0	11,281
Substandard	0	0	0	0	0	0	0	1,958	1,958


Total	64,830	186,611	110,685	119,091	125,055	227,096	833,368	126,330	959,698
Nonowner occupied loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Multifamily loans:
Pass	86,361	151,498	5,419	93,564	19,839	41,044	397,725	64,498	462,223
Special Mention	0	0	0	0	287	0	287	0	287



Total	86,361	151,498	5,419	93,564	20,126	41,044	398,012	64,498	462,510
Multifamily loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland:
Pass	32,464	27,911	12,823	14,781	35,519	41,893	165,391	9,972	175,363
Special Mention	0	1,970	114	189	0	153	2,426	0	2,426
Substandard	0	0	0	0	0	44	44	0	44


Total	32,464	29,881	12,937	14,970	35,519	42,090	167,861	9,972	177,833
Loans secured by farmland:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Loans for agricultural production:
Pass	745	5,216	12,421	6,318	18,077	13,436	56,213	132,926	189,139
Special Mention	0	0	0	643	251	0	894	6,323	7,217



Total	745	5,216	12,421	6,961	18,328	13,436	57,107	139,249	196,356
Loans for agricultural production:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Other commercial loans:
Pass	3,091	10,737	1,033	12,968	24,259	14,582	66,670	28,897	95,567




Total	3,091	10,737	1,033	12,968	24,259	14,582	66,670	28,897	95,567
Other commercial loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans:
Pass	14,765	14,535	9,890	6,216	6,547	14,605	66,558	4,101	70,659
Special Mention	0	188	118	212	154	60	732	0	732


(dollars in thousands)	2026		2025		2024		2023		2022		Prior		Term Total		Revolving		Total
Closed end first mortgage loans (continued):
Substandard	0		24		0		226		429		573		1,252		0		1,252
Doubtful	0		0		0		0		0		0		0		0		0
Not Rated	14,691		36,025		22,699		48,765		42,307		55,223		219,710		0		219,710
Total	29,456		50,772		32,707		55,419		49,437		70,461		288,252		4,101		292,353
Closed end first mortgage loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Open end and junior lien loans:
Pass	0		654		475		670		0		184		1,983		9,243		11,226
Special Mention	0		279		0		0		0		0		279		0		279
Substandard	0		1,711		38		116		73		1		1,939		566		2,505

Not Rated	12,092		23,539		11,339		8,282		8,823		2,394		66,469		185,372		251,841
Total	12,092		26,183		11,852		9,068		8,896		2,579		70,670		195,181		265,851
Open end and junior lien loans:
Current period gross write offs	0		0		0		0		0		0		0		65		65
Residential construction loans:




Not Rated	789		6,785		1,814		557		1,557		2,838		14,340		0		14,340
Total	789		6,785		1,814		557		1,557		2,838		14,340		0		14,340
Residential construction loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Other consumer loans:
Pass	4		373		0		930		104		14		1,425		40,179		41,604

Substandard	0		0		28		230		82		61		401		0		401

Not Rated	3,973		17,487		14,482		12,246		6,759		6,933		61,880		12,057		73,937
Total	3,977		17,860		14,510		13,406		6,945		7,008		63,706		52,236		115,942
Other consumer loans:
Current period gross write offs	0		9		3		37		12		0		61		84		145

Total Loans	$	319,936	$	886,918	$	439,686	$	526,219	$	541,392	$	732,047	$	3,446,198	$	2,027,160	$	5,473,358

Total period gross write offs	$	0	$	1,984	$	3	$	37	$	12	$	0	$	2,036	$	160	$	2,196

The following table summarizes the risk category of loans by loan segment and year of origination as of December 31, 2025:


(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Commercial and industrial loans:
Working capital lines of credit loans:
Pass	$	5,863	$	1,405	$	19	$	63	$	1,066	$	334	$	8,750	$	633,270	$	642,020
Special Mention	0		0		0		0		0		0		0		38,014		38,014
Substandard	300		0		2,057		924		211		230		3,722		27,759		31,481


Total	6,163		1,405		2,076		987		1,277		564		12,472		699,043		711,515
Working capital lines of credit loans:
Current period gross write offs	0		0		0		28,607		0		12		28,619		45		28,664
Non-working capital loans:
Pass	210,230		109,036		101,984		114,735		32,420		20,755		589,160		204,275		793,435
Special Mention	5,819		2,671		154		8,359		7,024		5,060		29,087		7,493		36,580
Substandard	314		327		1,998		1,543		105		3,913		8,200		391		8,591
Doubtful	0		0		0		0		0		74		74		0		74
Not Rated	939		322		767		558		107		173		2,866		0		2,866
Total	217,302		112,356		104,903		125,195		39,656		29,975		629,387		212,159		841,546
Non-working capital loans:
Current period gross write offs	1		2		0		0		0		0		3		201		204
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	20,946		25,430		11,990		20,692		720		0		79,778		414,386		494,164
Special Mention	1,242		0		0		0		0		0		1,242		0		1,242



Total	22,188		25,430		11,990		20,692		720		0		81,020		414,386		495,406
Construction and land development loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Owner occupied loans:
Pass	151,944		106,040		89,724		118,976		128,712		143,199		738,595		31,378		769,973
Special Mention	3,083		163		1,810		14,683		0		13,069		32,808		550		33,358
Substandard	0		306		284		0		1,520		1,442		3,552		0		3,552


Total	155,027		106,509		91,818		133,659		130,232		157,710		774,955		31,928		806,883
Owner occupied loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Nonowner occupied loans:
Pass	184,183		114,323		108,411		128,867		93,880		154,390		784,054		125,655		909,709


(dollars in thousands)	2025	2024	2023	2022	2021	Prior	Term Total	Revolving	Total
Nonowner occupied loans (continued):
Special Mention	0	0	11,321	59	0	0	11,380	0	11,380
Substandard	0	0	0	0	0	0	0	1,957	1,957


Total	184,183	114,323	119,732	128,926	93,880	154,390	795,434	127,612	923,046
Nonowner occupied loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Multifamily loans:
Pass	191,399	21,552	63,810	21,472	8,485	32,995	339,713	97,877	437,590
Special Mention	0	0	0	291	0	0	291	0	291



Total	191,399	21,552	63,810	21,763	8,485	32,995	340,004	97,877	437,881
Multifamily loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland:
Pass	28,600	13,595	15,258	31,324	19,915	30,669	139,361	13,202	152,563
Special Mention	1,987	118	193	0	25	148	2,471	0	2,471
Substandard	0	0	0	0	0	49	49	0	49


Total	30,587	13,713	15,451	31,324	19,940	30,866	141,881	13,202	155,083
Loans secured by farmland:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Loans for agricultural production:
Pass	5,560	13,158	21,355	18,848	21,215	12,502	92,638	151,443	244,081
Special Mention	0	0	654	258	0	1	913	6,891	7,804



Total	5,560	13,158	22,009	19,106	21,215	12,503	93,551	158,334	251,885
Loans for agricultural production:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Other commercial loans:
Pass	11,178	1,199	13,637	24,506	2,504	11,665	64,689	30,722	95,411
Special Mention	0	0	0	0	0	1,754	1,754	0	1,754



Total	11,178	1,199	13,637	24,506	2,504	13,419	66,443	30,722	97,165
Other commercial loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans:
Pass	14,058	9,978	6,465	6,793	10,248	5,525	53,067	2,427	55,494


(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Closed end first mortgage loans (continued):
Special Mention	189		119		215		156		61		0		740		0		740
Substandard	55		305		232		436		0		755		1,783		0		1,783

Not Rated	36,511		23,578		50,011		42,657		24,998		31,020		208,775		0		208,775
Total	50,813		33,980		56,923		50,042		35,307		37,300		264,365		2,427		266,792
Closed end first mortgage loans:
Current period gross write offs	0		0		0		0		0		24		24		0		24
Open end and junior lien loans:
Pass	665		487		684		0		190		4		2,030		8,477		10,507
Special Mention	286		0		0		0		0		0		286		0		286
Substandard	1,728		38		99		0		3		0		1,868		317		2,185

Not Rated	28,327		13,016		9,566		10,347		1,849		1,138		64,243		176,160		240,403
Total	31,006		13,541		10,349		10,347		2,042		1,142		68,427		184,954		253,381
Open end and junior lien loans:
Current period gross write offs	0		0		0		29		2		22		53		149		202
Residential construction loans:




Not Rated	6,684		6,852		575		1,680		1,189		1,798		18,778		0		18,778
Total	6,684		6,852		575		1,680		1,189		1,798		18,778		0		18,778
Residential construction loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Other consumer loans:
Pass	384		0		939		120		22		0		1,465		37,683		39,148

Substandard	0		35		273		91		6		11		416		0		416

Not Rated	19,055		15,982		13,837		7,631		4,301		3,349		64,155		12,269		76,424
Total	19,439		16,017		15,049		7,842		4,329		3,360		66,036		49,952		115,988
Other consumer loans:
Current period gross write offs	4		187		306		161		58		0		716		604		1,320

Total loans	$	931,529	$	480,035	$	528,322	$	576,069	$	360,776	$	476,022	$	3,352,753	$	2,022,596	$	5,375,349

Total current period gross write offs	$	5	$	189	$	306	$	28,797	$	60	$	58	$	29,415	$	999	$	30,414

Schedule of Aging of the Amortized Cost Basis in Past Due Loans

The following table presents the aging of the amortized cost basis in past due loans as of March 31, 2026 by class of loans and loans past due 90 days or more and still accruing by class of loan:


(dollars in thousands)	Loans Not Past Due		30-89 Days Past Due		Greater than 89 Days Past Due and Accruing		Total Accruing		Total Nonaccrual		Nonaccrual With No Allowance For Credit Loss		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	737,163	$	0	$	0	$	737,163	$	5,226	$	1,433	$	742,389
Non-working capital loans	828,036		24		0		828,060		7,669		82		835,729
Commercial real estate and multi-family residential loans:
Construction and land development loans	507,429		0		0		507,429		0		0		507,429
Owner occupied loans	801,433		4,041		0		805,474		1,887		170		807,361
Nonowner occupied loans	957,740		0		0		957,740		1,958		0		959,698
Multifamily loans	462,510		0		0		462,510		0		0		462,510
Agri-business and agricultural loans:
Loans secured by farmland	177,789		0		0		177,789		44		0		177,833
Loans for agricultural production	195,808		548		0		196,356		0		0		196,356
Other commercial loans	95,567		0		0		95,567		0		0		95,567
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	289,255		1,839		7		291,101		1,252		507		292,353
Open end and junior lien loans	262,924		422		0		263,346		2,505		403		265,851
Residential construction loans	14,340		0		0		14,340		0		0		14,340
Other consumer loans	115,009		532		0		115,541		401		9		115,942
Total	$	5,445,003	$	7,406	$	7	$	5,452,416	$	20,942	$	2,604	$	5,473,358

The following table presents the aging of the amortized cost basis in past due loans as of December 31, 2025 by class of loans and loans past due 90 days or more and still accruing by class of loan:


(dollars in thousands)	Loans Not Past Due		30-89 Days Past Due		Greater than 89 Days Past Due and Accruing		Total Accruing		Total Nonaccrual		Nonaccrual With No Allowance For Credit Loss		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	706,317	$	0	$	0	$	706,317	$	5,198	$	1,434	$	711,515
Non-working capital loans	834,134		0		0		834,134		7,412		86		841,546
Commercial real estate and multi-family residential loans:
Construction and land development loans	495,406		0		0		495,406		0		0		495,406
Owner occupied loans	804,986		0		0		804,986		1,897		170		806,883
Nonowner occupied loans	921,089		0		0		921,089		1,957		0		923,046
Multifamily loans	437,881		0		0		437,881		0		0		437,881
Agri-business and agricultural loans:
Loans secured by farmland	155,035		0		0		155,035		48		0		155,083
Loans for agricultural production	251,885		0		0		251,885		0		0		251,885
Other commercial loans	97,165		0		0		97,165		0		0		97,165
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	263,385		1,617		7		265,009		1,783		690		266,792
Open end and junior lien loans	251,009		186		0		251,195		2,186		405		253,381
Residential construction loans	18,778		0		0		18,778		0		0		18,778
Other consumer loans	115,046		526		0		115,572		416		6		115,988
Total	$	5,352,116	$	2,329	$	7	$	5,354,452	$	20,897	$	2,791	$	5,375,349

Schedule of Amortized Cost Basis of Collateral Dependent Loans

The following tables present the amortized cost basis of collateral dependent loans by class of loan as of:


	March 31, 2026
(dollars in thousands)	Real Estate		General Business Assets		Other		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	2,388	$	23,997	$	570	$	26,955
Non-working capital loans	25		4,455		43		4,523
Commercial real estate and multi-family residential loans:
Owner occupied loans	473		1,716		0		2,189
Nonowner occupied loans	1,958		0		0		1,958
Agri-business and agricultural loans:
Loans secured by farmland	0		44		0		44
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	3,100		0		0		3,100
Open end and junior lien loans	657		0		0		657

Other consumer loans	0		0		401		401
Total	$	8,601	$	30,212	$	1,014	$	39,827


	December 31, 2025
(dollars in thousands)	Real Estate		General Business Assets		Other		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	2,388	$	23,827	$	673	$	26,888
Non-working capital loans	464		3,715		49		4,228
Commercial real estate and multi-family residential loans:
Owner occupied loans	476		1,726		0		2,202
Nonowner occupied loans	1,958		0		0		1,958
Agri-business and agricultural loans:
Loans secured by farmland	0		49		0		49
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,725		0		0		1,725
Open end and junior lien loans	2,186		0		0		2,186
Other consumer loans	0		0		416		416
Total	$	9,197	$	29,317	$	1,138	$	39,652

LAKELAND FINANCIAL CORP 10-Q