Bank Investing in Warsaw Training Center

May 9, 2011

News Release

Warsaw, Indiana – Lake City Bank announced today that construction has begun at the Lake City Bank People Development Center located at 109 South Buffalo Street in Warsaw. The building has served as the Lake City Bank Training Center since 1999 and became home to the Bank’s Lake City University in 2000. Following a complete remodeling of the building, it will be renamed the Lake City Bank People Development Center and continue to serve as the home of Lake City University. In addition, the Bank’s entire People Development Staff, which includes specialists in human resource functions and training and personal development services, will be located in the building. With over 9,000 square feet of space, the facility will serve as the entry point for the Bank’s recruiting and hiring initiatives and staff development. The Bank will invest over $400,000 in the project.

In 2010, Lake City University provided over 17,000 hours of staff development for employees of Lake City Bank. Every employee of the Bank participated in some form of training at the facility and employees averaged 34 hours of training and development. In addition, numerous community organizations use the facility for meetings, events and presentations.

Michael L. Kubacki, Chairman and Chief Executive Officer, commented, “We’re proud of our commitment to the professional and personal development of the Lake City Bank Team. Lake City University is much more than job skills development. It is about personal development and skill building that not only enriches the Bank’s future, but strengthens our commitment to the communities we serve. We’re in the people business, and this facility is dedicated to ensuring that we have not only the most well trained bankers in Indiana, but employees who are also well rounded.”

Lake City University provides courses in personal development and job skills development through more than 90 instructor-led courses, seminars, workshops and live webinars. Courses include: Becoming the Leader Within, You are Lake City Bank, Financial Products and Services, Principles of Banking, Teller School, Customer Care School, Technology Fundamentals, Effective Sales, Law and Banking Principles and Client Service Representative School. In addition, Lake City University is the training point for all of the Bank’s technology applications and the staff of Lake City University is certified to teach these specialized tracks.

David M. Findlay, President, stated, “The People Development Center is an important part of the Bank’s culture. While it’s a physical testament to the importance of training and development for our Team, it’s also part of our commitment to Kosciusko County. A vibrant and active downtown is important to the community and the People Development Center is one of five facilities we have in downtown Warsaw where 215 Lake City Bank Team members work every day.”

The People Development Center was designed by Warsaw-based Scearce Rudisel Architects and Mary Ellen Rudisel-Jordan served as the architect on the project. The Bank will work with DJ Construction Company, Inc. on the remodeling project of the facility. DJ Construction has offices in both Warsaw and Goshen and has been serving the Michiana area for over 57 years.

Lakeland Financial Corporation is a $2.7 billion bank holding company headquartered in Warsaw, Indiana. Lake City Bank serves Northern Indiana with 43 branches located in the following Indiana counties: Kosciusko, Elkhart, Allen, St. Joseph, DeKalb, Fulton, Huntington, LaGrange, Marshall, Noble, Pulaski and Whitley. The Company also has a Loan Production Office in Indianapolis, Indiana.

Lakeland Financial Corporation may be accessed on its home page at www.lakecitybank.com. The Company’s common stock is traded on the Nasdaq Global Select Market under “LKFN”. Market makers in Lakeland Financial Corporation common shares include Automated Trading Desk Financial Services, LLC, B-Trade Services, LLC, Citadel Securities, LLC, Citigroup Global Markets Holdings, Inc., Domestic Securities, Inc., E*TRADE Capital Markets LLC, FTN Financial Securities Corp., FTN Equity Capital Markets Corp., Goldman Sachs & Company, Howe Barnes Hoefer & Arnett, Inc., Keefe, Bruyette & Woods, Inc., Knight Equity Markets, L.P., Morgan Stanley & Co., Inc., Stifel Nicolaus & Company, Inc., Susquehanna Capital Group and UBS Securities LLC.

Source: Lake City Bank