This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Lakeland Financial Repays TARP

WARSAW, Ind., June 9, 2010 (GLOBE NEWSWIRE) -- Lakeland Financial Corporation (Nasdaq:LKFN), parent company of Lake City Bank, announced today that it has redeemed all of the 56,004 shares of preferred stock issued to Treasury in February 2009 under the Capital Purchase Program (the "CPP") of the Emergency Economic Stabilization Act of 2008. Lakeland Financial paid $56.0 million to redeem the shares.  Lakeland Financial expects to give notice to Treasury of its intent to enter into negotiations for the repurchase of the 10-year warrant issued in conjunction with the preferred stock, which entitles Treasury to purchase shares of Lakeland Financial common stock.

According to the U.S. Treasury Department, a total of 707 financial institutions received TARP funding and as of June 4, 2010, 82, or 12%, had repaid TARP. 

"Since funding TARP in 2009, we have continued to use our balance sheet to support the Indiana markets we serve. We believe that we've contributed to the economic stabilization of our region through increased lending and expansion and are very proud of our performance during these challenging times. One of the primary objectives of the program was to promote continued lending by the banking industry. Since year-end 2008, the quarter which preceded our Capital Purchase Program funding, we have increased total loans by $178 million, or 10%. This robust loan growth demonstrates that we're supporting our Hoosier communities," said Michael L. Kubacki, Chairman, President and Chief Executive Officer of Lakeland Financial. 

"During the same 15 month time period, our balance sheet has been strengthened considerably, led by our $58 million common stock offering in the fourth quarter of 2009. Another indicator of balance sheet strength is the growth in our loan loss reserve, which increased by 93% from $18.9 million at year-end 2008 to $36.3 million at March 31, 2010. We believe that we've got a balance sheet that is well structured relative to today's economic environment and for future growth," added Kubacki.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
LKFN $40.44 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs