LakeLand Financial Corp. (LKFN) stock prices were up 9.49% some time after the market opened on July 28th, 2021, bringing the price per share up to USD$64.95 early on in the trading day.
LKFN Stock Approves Cash Dividend
July 13th, 2021 saw LKFN stock’s board of directors approve a cash dividend for the second quarter of 2021. The dividend has been set at USD$0.34 per share and is payable on August 5th, 2021 to shareholders of record as of July 25th, 2021. The second-quarter dividend is the same as the dividend paid out for the first quarter of 2021, reflecting a 13% increase from the dividend rate from the prior year’s quarter.
Share Repurchasing Program
LKFN stock’s board of directors also approved the reauthorization and extension of a share repurchase program on April 13th, 2021, with the program scheduled to run through to April 30th, 2023. As per the program, LKFN has been authorized to repurchase from time to time, as the company sees fit, shares of its common stock. The aggregate purchase price set by the share repurchasing program is a maximum of USD$30 million. 2021 did not see the repurchasing of any shares, while the first quarter of 2020 saw 289,101 shares being repurchased at an average price per share of USD$34.66.
LKFN’s Allocation of Resources
LKFN stock has deployed USD$600 million since late 2020 in excess liquidity to the company’s investment securities portfolio. This move was a response to the increase in deposit balances that started in 2020 and has carried over to 2021. The unprecedented solid liquidity position has afforded the company unique challenges, resulting in the allocation of the excess liquidity to the investment portfolio without any significant impact to LKFN’s asset sensitive balance sheet
Commercial Line Utilization
The company’s commercial line utilization was up from 39% in March 2021 to 41% in July 2021. Despite the improvement, this is still considerably lower than over the past several years. Over the course of the past 8 years, LKFN stock has averaged a commercial line utilization of 49%.
Future Outlook for LKFN Stock
Armed with solid financials for the second quarter of 2021, LKFN is keen to facilitate continued developments that will instill shareholder confidence. The company is keen to spearhead its fiscal performance as the global economy slowly returns to pre-pandemic levels. Investors are hopeful that management will be able to usher in further growth over the long term.