WARSAW, Ind. — The parent company of Warsaw-based Lake City Bank is reporting the highest quarterly profit in its history.

Lakeland Financial Corp. says its second quarter profit of $8.8 million is up from $8 million for the same period a year earlier.

Diluted net income per share also increased 10 percent to a record level of $0.54 in the second quarter versus $0.49 for the comparable period of 2011.

The Company also announced that the Board of Directors approved a cash dividend for the second quarter of $0.17 per share, payable on Aug. 6, 2012 to shareholders of record as of July 25, 2012. The quarterly dividend represents a 10 percent increase over the quarterly dividends paid in 2011.

The Company further reported record net income of $17.4 million for the six months ended June 30, 2012 versus $14 million for the comparable period of 2011, an increase of 25 percent.

Diluted net income per common share also set a new record and increased 23 percent to $1.06 for the six months ended June 30, 2012 versus $0.86 for the comparable period of 2011.

Michael L. Kubacki, Chairman and Chief Executive Officer, commented, “With strong earnings momentum and a robust balance sheet, Lake City Bank is well positioned to capitalize on our reputation as one of the leading commercial banks in Indiana. Our shareholders continue to be rewarded by these good results through a healthy dividend, as well as the performance of our stock, which has increased more than 30% in the last two years.”

Average total loans for the second quarter of 2012 were $2.22 billion versus $2.14 billion for the second quarter of 2011, an increase of 4 percent.

On a linked quarter basis, average loans grew by $5 million compared to the first quarter of 2012.

Total loans outstanding grew $66 million, or 3 percent, from $2.15 billion as of June 30, 2011 to $2.21 billion as of June 30, 2012.

Net loans outstanding at June 30, 2012 represented a decrease of $19 million versus $2.23 billion as of Dec. 31, 2011. Driving this $19 million decrease in net loans outstanding were anticipated reductions in nonowner occupied commercial real estate loans of $52 million and seasonal reductions in total agribusiness loans of $17 million.

Kubacki added, “Overall, loan demand has been good in 2012. Yet, quarter end loan totals reflect the impact of payoffs of existing credit facilities, particularly in our commercial real estate portfolio. This portfolio has been significantly reduced through the anticipated and successful placement of these interim project financings with long-term, non-bank institutional lenders.”

For more information about Lake City Bank, Lakeland Financial or its quarterly report, visit www.lakecitybank.com.

Source: Lakeland Financial Group