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Regional Banks Lakeland Financial and Southern Michigan Log Q3 Profit Gains on Wider Margins

Credit watchers note higher reserves at Southern Michigan despite stronger earnings.

Overview

  • Lakeland Financial reported Q3 net income of $26.4 million, up 13% year over year, as net interest margin rose to 3.50% from 3.16%.
  • The company cited reduced funding costs, stronger loan originations topping $400 million, and higher fee income as key drivers, and it offered no forward guidance.
  • Southern Michigan Bancorp posted Q3 net income of $3.019 million, a 16.7% increase, with a tax-equivalent net interest margin of 3.21% for the year to date versus 2.94% a year earlier.
  • CEO John R. Waldron said loans, deposits, and total assets reached record levels at quarter end, reflecting market expansion and staffing investments.
  • Southern Michigan increased its allowance for credit losses to $14.41 million, or 1.17% of loans, as nonperforming loans rose to 1.03% from 0.08% at year-end 2024.