Earnings of Lakeland Financial Corporation (LKFN), a bank holding company, are expected to decline due to a reduction in net interest margin and increase in non-interest expense. However, the pressure on the bottom-line is expected to be partly offset by loan growth. Despite the prospects of earnings decline, quarterly dividends are expected to be maintained at the current level, providing a decent dividend yield of 2.73%.
Loan Growth to Slow
LKFN operates solely in Indiana and focuses on the commercial loan segment; therefore, its loan growth depends on business sentiment and economic growth