LAKELAND FINANCIAL CORPLKFN

LAKELAND FINANCIAL CORP Commitments Disclosure

10-KFiled Feb 25, 20262 min read
COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES
During the normal course of business, the Company becomes a party to financial instruments with off-balance sheet risk in order to meet the financing needs of its customers. These financial instruments include commitments to make loans and open-ended revolving lines of credit. Amounts as of the years ended December 31, 2025 and 2024, were as follows:
20252024
(dollars in thousands)Fixed
Rate		Variable RateFixed
Rate		Variable Rate
Commercial loan lines of credit$44,962 $2,121,585 $60,856 $2,150,375 
Standby letters of credit0 47,358 0 49,558 
Real estate mortgage loans1,234 7,536 2,032 5,854 
Real estate construction mortgage loans0 3,770 1,010 5,165 
Home equity mortgage open-ended revolving lines0 421,480 0 388,235 
Consumer loan open-ended revolving lines0 26,131 0 26,589 
Total$46,196 $2,627,860 $63,898 $2,625,776 
NOTE 17 – COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES (continued)
The index on variable rate commercial loan commitments is principally the national prime rate. Interest rate ranges on commitments and open-ended revolving lines of credit for years ended December 31, 2025 and 2024, were as follows:
20252024
Fixed
Rate		Variable
Rate		Fixed
Rate		Variable
Rate
Commercial loan
1.00-14.50%
3.35-10.75%
1.00-14.50%
3.35-11.75%
Real estate mortgage loan
6.38-6.50%
5.50-11.75%
3.00-7.38%
6.00-12.50%
Consumer loan open-ended revolving line
15.00%
6.75-15.00%
15.00%
7.50-15.00%
Commitments, excluding open-ended revolving lines, generally have fixed expiration dates of one year or less. Open-ended revolving lines are monitored for proper performance and compliance on a monthly basis. Since many commitments expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company follows the same credit policy (including requiring collateral, if deemed appropriate) to make such commitments as it follows for those loans that are recorded in its financial statements.
The Company’s exposure to credit losses in the event of nonperformance is represented by the contractual amount of the commitments. Management does not expect any significant losses as a result of these commitments.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 19, 2025
2023Feb 21, 2024
2022Feb 22, 2023
2020Feb 23, 2021

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

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