OAK RIDGE, N.J., Jan. 26, 2017 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (NASDAQ:LBAI) (the “Company”) reported the following results for the fourth quarter of 2016 and for the year ended December 31, 2016:
- Net income for the fourth quarter of 2016 was $12.0 million, or $0.26 per diluted share, compared to net income of $8.5 million, or $0.22 per diluted share, for the same period in 2015. No merger related expenses were incurred during the fourth quarter of 2016. Excluding merger related expenses, fourth quarter 2015 net income was $9.2 million, or $0.24 per diluted share.
- For the fourth quarter of 2016, annualized return on average assets was 0.95%, annualized return on average common equity was 9.31%, and annualized return on average tangible common equity was 12.83%.
- For 2016, net income was $41.5 million, or $0.95 per diluted share, compared to net income of $32.5 million, or $0.85 per diluted share, for 2015, a 28% and 12% increase, respectively. Excluding merger related expenses and other items, net income for 2016 was $44.3 million, or $1.02 per diluted share, compared to $33.8 million, or $0.88 per diluted share, for 2015, a 31% and 16% increase, respectively.
- The return on average assets for the year ended December 31, 2016 was 0.90%, the return on average common equity was 8.75% and the return on average tangible common equity was 12.19%. Excluding merger related expenses and other items, these ratios were 0.96%, 9.34% and 13.01%, respectively.
- Total assets exceeded $5.0 billion for the first time in the Company’s history, finishing the year at $5.09 billion. During 2016, total assets grew $1.22 billion, comprised of organic growth of $491.8 million, or 12.7%, and growth through acquisitions of $731.8 million.
- The Company bolstered its capital levels with a $50 million common stock issuance of 2.7 million shares in December 2016 and the issuance of $75 million in subordinated debt in September 2016 bearing an annual interest rate of 5.125%.
- For the fourth quarter of 2016, the Company reported loan growth of $78.3 million, or 2%, to $3.87 billion, comprised primarily of $91.5 million in commercial real estate loans, which increased 3%. For the year, total loans and leases increased by $904.9 million, or 30%, with organic growth of $325.6 million, or 11%.
- For the fourth quarter of 2016, the Company reported deposit growth of $151.1 million, or 4%, to $4.09 billion. This overall increase was primarily due to additional growth in government deposits. For the year, total deposits increased $1.10 billion, or 37%, with organic growth of $514.7 million, or 17%, which included $125.4 million in non-interest bearing deposits.
- Net interest margin (“NIM”) was 3.27% for the fourth quarter of 2016, compared to 3.45% for the prior quarter and 3.43% for the fourth quarter of 2015. The decrease this quarter was primarily attributed to $1.0 million in interest expense from the recent, aforementioned subordinated debt issuance. In addition, relatively lower yielding cash balances increased as a result of the $75 million subordinated debt and $50 million common stock issuances as well as strong deposit growth.
- The efficiency ratio was 56.16% for the fourth quarter of 2016, as compared to 58.70% for the same period in 2015. The decrease in this ratio, in part, reflects the realization of cost savings from our acquisitions and the closure of seven branches in 2016.
- For the fourth quarter of 2016, the Company recorded a provision for loan and lease losses of $0.4 million and had net charge-offs of $0.5 million. The quarterly provision for loan and lease losses declined $1.4 million from the third quarter, primarily due to a significant payoff in classified loans. At December 31, 2016, the ratio of non-performing assets to total assets was 0.42%, down from 0.61% at December 31, 2015.
- On January 24, 2017, the Company declared a quarterly cash dividend of $0.095 per common share, payable February 17, 2017 to holders of record as of the close of business on February 7, 2017.
Thomas J. Shara, Lakeland Bancorp’s President and CEO, commented, “We are very proud of the Company’s many achievements in 2016 including our continued organic growth in both loans and deposits; the successful integration of two acquisitions in strategic market areas; and building our franchise to $5 billion in total assets. In addition to these successes, we took advantage of the opportunity to bolster our capital levels through an equity offering in December and the subordinated debt issuance in September. These moves position us favorably for future growth.”
Earnings
Net income for the fourth quarter of 2016 was $12.0 million, as compared to $8.5 million for the fourth quarter of 2015. Net income for the fourth quarter of 2015 excluding merger related expenses was $9.2 million.
Net income for 2016 was $41.5 million compared to $32.5 million for the same period in 2015. Excluding merger related expenses and other items, net income for 2016 was $44.3 million compared to $33.8 million in 2015.
Net Interest Income
Net interest income for the fourth quarter of 2016 was $38.2 million, as compared to $30.1 million for the same period in 2015. This increase was primarily due to higher levels of interest earnings assets as a result of our acquisitions as well as organic growth. NIM was 3.27% for the fourth quarter of 2016 compared to 3.43% for the fourth quarter of 2015. This decrease was primarily attributed to two factors. First, the $75 million subordinated debt offering in September 2016 added $1.0 million of interest expense for the quarter. Second, the Company temporarily maintained an elevated level of interest earning cash balances as a result of the proceeds from the subordinated debt and stock issuance offerings as well as an influx of deposits prior to the deployment of these funds into higher interest earning assets.
The yield on interest earning assets for the fourth quarter of 2016 was 3.74%, as compared to 3.76% reported in the fourth quarter of 2015. The cost of interest bearing liabilities for the fourth quarter of 2016 was 0.62%, as compared to 0.44% in the fourth quarter of 2015, reflecting the new subordinated debt and moderately higher cost of deposits.
Net interest income for 2016 was $145.6 million, as compared to $116.6 million reported for 2015. NIM for 2016 was 3.41%, compared to 3.47% in 2015. The yield on earning assets was 3.82% for 2016 and 3.79% for 2015. The cost of interest bearing liabilities for 2016 was 0.54%, as compared to 0.43% for 2015, reflecting the new subordinated debt and moderately higher cost of deposits.
Non-interest Income
Non-interest income totaled $5.2 million for the fourth quarter of 2016 compared to $4.8 million for the same period in 2015. This increase was primarily due to higher swap fee income during the quarter.
For the year, non-interest income totaled $21.3 million in 2016, as compared to $21.2 million in 2015, which included a $1.8 million gain on debt extinguishment. The most significant increases in 2016 included $0.7 million in swap fee income, $0.5 million in BOLI death benefits and $0.4 million in gain on sale of loans.
Non-interest Expense
Non-interest expense for the fourth quarter of 2016 was $24.8 million, an increase of $2.6 million compared to $22.1 million for the same period in 2015. Excluding the impact of merger related expenses, non-interest expense increased by $3.5 million. Salary and employee benefit expense increased $1.9 million due primarily to the additional staff from the acquisitions and year-over-year increases in employee salary and benefit costs. Net occupancy expense increased $0.5 million and furniture and equipment expense increased $0.3 million, due primarily to the additional locations. Other expenses increased $0.8 million, primarily due to higher legal, collection, insurance and personnel expenses.
For 2016, non-interest expense was $99.9 million, an increase of $12.7 million compared to 2015. Excluding the impact of merger related expenses and the 2015 long-term debt prepayment fee of $2.4 million, non-interest expense increased by $12.2 million. Salary and employee benefit expense increased by $7.5 million, due primarily to the additional staff from the acquisitions and year-over-year increases in employee salary and benefit costs. Furniture and equipment expense increased $1.1 million and net occupancy expense increased $1.0 million due primarily to the additional locations. Other expenses increased $1.2 million, due primarily to higher consulting, courier, director, insurance and investor relations expenses.
Financial Condition
In 2016, total assets increased $1.22 billion to $5.09 billion. Total loans and leases increased by $904.9 million to $3.87 billion. Total deposits increased $1.10 billion to $4.09 billion. In January 2016, the Company acquired Pascack Bancorp, Inc., which had total assets, total loans and total deposits of $405.3 million, $319.6 million and $304.5 million, respectively. In July 2016, the Company acquired Harmony Bank, which had total assets, total loans and total deposits of $326.4 million, $259.7 million and $278.1 million, respectively.
Asset Quality
At December 31, 2016, non-performing assets totaled $21.5 million (0.42% of total assets), compared to $23.7 million (0.61% of total assets) at December 31, 2015. Non-performing loans and leases as a percent of total loans and leases decreased to 0.53% at December 31, 2016 from 0.76% at December 31, 2015. The allowance for loan and lease losses totaled $31.2 million at December 31, 2016, and represented 0.81% of total loans and leases, compared to $30.9 million at December 31, 2015, which represented 1.04% of total loans and leases. The decline in the allowance coverage is primarily attributed to improvement in asset quality and to the addition of acquired loans with no allowance for loan losses. The Company had net charge-offs of $3.9 million (0.11% of average loans) in 2016 and $0.5 million (0.05% of average loans) for the fourth quarter of 2016. The provision for loan and lease losses for 2016 was $4.2 million, versus $1.9 million in 2015.
Capital
At December 31, 2016, stockholders' equity was $550.0 million, while book value per common share was $11.65, an increase of 10% from December 31, 2015. Tangible book value per common share was $8.69, an increase of 14% from December 31, 2015. As of December 31, 2016, the Company’s leverage ratio was 9.06%. Tier I and total risk based capital ratios were 10.84% and 13.47%, respectively, reflecting the issuance of the subordinated notes and additional shares of common stock. The common equity tier 1 capital ratio was 10.10%. At December 31, 2016, the tangible common equity ratio was 8.28%, compared to 7.69% as of December 31, 2015. The regulatory capital ratios exceed those necessary to be considered a well-capitalized institution under Federal regulatory guidelines.
Forward-Looking Statements
The information disclosed in this document includes various forward-looking statements (with respect to corporate objectives, trends, and other financial and business matters) that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipates”, “projects”, “intends”, “estimates”, “expects”, “believes”, “plans”, “may”, “will”, “should”, “could”, and other similar expressions are intended to identify such forward-looking statements. Lakeland cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. The following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: changes in the financial services industry and the U.S. and global capital markets, changes in economic conditions nationally, regionally and in the Company’s markets, the nature and timing of actions of the Federal Reserve Board and other regulators, the nature and timing of legislation affecting the financial services industry, government intervention in the U.S. financial system, changes in levels of market interest rates, pricing pressures on loan and deposit products, credit risks of the Company’s lending and leasing activities, customers’ acceptance of the Company’s products and services, competition, and failure to successfully integrate and realize anticipated efficiencies and synergies after the Pascack Community Bank and Harmony Bank mergers. Any statements made by Lakeland that are not historical facts should be considered to be forward-looking statements. Lakeland is not obligated to update and does not undertake to update any of its forward-looking statements made herein.
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measurements and ratios based on tangible equity and tangible assets. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.
The Company also provides measures based on what it believes are its operating earnings on a consistent basis, and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods in question.
The Company also uses an efficiency ratio that is a non-GAAP financial measure. The ratio that the Company uses excludes amortization of core deposit intangibles, expenses on other real estate owned and other repossessed assets, provision for unfunded lending commitments and, where applicable, long-term debt prepayment fees and merger related expenses. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes securities gains and losses and gain on debt extinguishment, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a better comparison of period to period operating performance.
These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.
About Lakeland Bank
Lakeland Bancorp, the holding company for Lakeland Bank, has $5.1 billion in total assets with 52 New Jersey branch offices in Bergen, Essex, Morris, Ocean, Passaic, Somerset, Sussex, and Union counties; six New Jersey regional commercial lending centers in Bernardsville, Jackson, Montville, Newton, Teaneck and Waldwick; and two commercial loan production offices serving Middlesex and Monmouth counties in New Jersey and the Hudson Valley region of New York. Lakeland Bank offers an extensive suite of financial products and services for businesses and consumers. Visit LakelandBank.com for more information.
| Lakeland Bancorp, Inc. | ||||||||||||||||||
| Financial Highlights | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| INCOME STATEMENT | ||||||||||||||||||
| Net interest income | $ | 38,179 | $ | 30,119 | $ | 145,649 | $ | 116,640 | ||||||||||
| Provision for loan and lease losses | (375 | ) | - | (4,223 | ) | (1,942 | ) | |||||||||||
| Other non-interest income | 4,636 | 4,290 | 18,837 | 17,409 | ||||||||||||||
| Gain on sale of investment securities | - | 51 | 370 | 241 | ||||||||||||||
| Gain on sale of loans | 525 | 437 | 2,123 | 1,681 | ||||||||||||||
| Gain on debt extinguishment | - | - | - | 1,830 | ||||||||||||||
| Long-term debt prepayment fee | - | - | - | (2,407 | ) | |||||||||||||
| Merger related expenses | - | (822 | ) | (4,103 | ) | (1,152 | ) | |||||||||||
| Other non-interest expense | (24,772 | ) | (21,320 | ) | (95,814 | ) | (83,652 | ) | ||||||||||
| Pretax income | 18,193 | 12,755 | 62,839 | 48,648 | ||||||||||||||
| Provision for income taxes | (6,240 | ) | (4,291 | ) | (21,321 | ) | (16,167 | ) | ||||||||||
| Net income | $ | 11,953 | $ | 8,464 | $ | 41,518 | $ | 32,481 | ||||||||||
| Basic earnings per common share | $ | 0.26 | $ | 0.22 | $ | 0.96 | $ | 0.85 | ||||||||||
| Diluted earnings per common share | $ | 0.26 | $ | 0.22 | $ | 0.95 | $ | 0.85 | ||||||||||
| Dividends per common share | $ | 0.095 | $ | 0.085 | $ | 0.370 | $ | 0.330 | ||||||||||
| Weighted average shares - basic | 45,002 | 37,865 | 42,912 | 37,843 | ||||||||||||||
| Weighted average shares - diluted | 45,257 | 38,048 | 43,114 | 37,993 | ||||||||||||||
| SELECTED OPERATING RATIOS | ||||||||||||||||||
| Annualized return on average assets | 0.95 | % | 0.89 | % | 0.90 | % | 0.89 | % | ||||||||||
| Annualized return on average common equity | 9.31 | % | 8.40 | % | 8.75 | % | 8.28 | % | ||||||||||
| Annualized return on average tangible common equity (1) | 12.83 | % | 11.64 | % | 12.19 | % | 11.58 | % | ||||||||||
| Annualized return on interest earning assets | 3.74 | % | 3.76 | % | 3.82 | % | 3.79 | % | ||||||||||
| Annualized cost of interest bearing liabilities | 0.62 | % | 0.44 | % | 0.54 | % | 0.43 | % | ||||||||||
| Annualized net interest spread | 3.12 | % | 3.32 | % | 3.28 | % | 3.36 | % | ||||||||||
| Annualized net interest margin | 3.27 | % | 3.43 | % | 3.41 | % | 3.47 | % | ||||||||||
| Efficiency ratio (1) | 56.16 | % | 58.70 | % | 56.41 | % | 60.18 | % | ||||||||||
| Stockholders' equity to total assets | 10.80 | % | 10.35 | % | ||||||||||||||
| Book value per common share | $ | 11.65 | $ | 10.57 | ||||||||||||||
| Tangible book value per common share (1) | $ | 8.69 | $ | 7.62 | ||||||||||||||
| Tangible common equity to tangible assets (1) | 8.28 | % | 7.69 | % | ||||||||||||||
| ASSET QUALITY RATIOS | 12/31/2016 | 12/31/2015 | ||||||||||||||||
| Ratio of allowance for loan and lease losses to total loans and leases | 0.81 | % | 1.04 | % | ||||||||||||||
| Non-performing loans and leases to total loans and leases | 0.53 | % | 0.76 | % | ||||||||||||||
| Non-performing assets to total assets | 0.42 | % | 0.61 | % | ||||||||||||||
| Annualized net charge-offs to average loans and leases | 0.11 | % | 0.06 | % | ||||||||||||||
| SELECTED BALANCE SHEET DATA AT PERIOD-END | 12/31/2016 | 12/31/2015 | ||||||||||||||||
| Loans and leases | $ | 3,872,805 | $ | 2,967,946 | ||||||||||||||
| Allowance for loan and lease losses | (31,245 | ) | (30,874 | ) | ||||||||||||||
| Investment securities | 769,417 | 573,176 | ||||||||||||||||
| Total assets | 5,093,131 | 3,869,550 | ||||||||||||||||
| Total deposits | 4,092,835 | 2,995,571 | ||||||||||||||||
| Short-term borrowings | 56,354 | 151,234 | ||||||||||||||||
| Other borrowings | 365,650 | 303,143 | ||||||||||||||||
| Stockholders' equity | 550,044 | 400,516 | ||||||||||||||||
| SELECTED AVERAGE BALANCE SHEET DATA | For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||||
| 12/31/2016 | 12/31/2015 | 12/31/2016 | 12/31/2015 | |||||||||||||||
| Loans and leases | $ | 3,806,576 | $ | 2,898,477 | $ | 3,562,879 | $ | 2,773,601 | ||||||||||
| Investment securities | 683,986 | 561,024 | 609,336 | 581,452 | ||||||||||||||
| Interest earning assets | 4,680,144 | 3,509,867 | 4,295,381 | 3,390,112 | ||||||||||||||
| Total assets | 5,015,439 | 3,779,819 | 4,619,816 | 3,648,836 | ||||||||||||||
| Non-interest bearing demand deposits | 951,418 | 722,270 | 852,629 | 695,630 | ||||||||||||||
| Savings deposits | 490,556 | 402,217 | 485,004 | 399,431 | ||||||||||||||
| Interest bearing transaction accounts | 2,072,154 | 1,573,638 | 1,880,391 | 1,511,954 | ||||||||||||||
| Time deposits | 539,870 | 328,080 | 506,487 | 303,682 | ||||||||||||||
| Total deposits | 4,053,998 | 3,026,205 | 3,724,511 | 2,910,697 | ||||||||||||||
| Short-term borrowings | 27,538 | 47,276 | 36,242 | 54,027 | ||||||||||||||
| Other borrowings | 392,789 | 286,887 | 356,907 | 274,908 | ||||||||||||||
| Total interest bearing liabilities | 3,522,907 | 2,638,098 | 3,265,031 | 2,544,003 | ||||||||||||||
| Stockholders' equity | 510,562 | 399,987 | 474,540 | 392,221 | ||||||||||||||
| (1) See Supplemental Information - Non-GAAP Financial Measures | ||||||||||||||||||
| Lakeland Bancorp, Inc. | ||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| (Dollars in thousands, except per share amounts) | 2016 | 2015 | 2016 | 2015 | ||||||||||
| INTEREST INCOME | ||||||||||||||
| Loans and fees | $ | 40,090 | $ | 30,065 | $ | 149,777 | $ | 115,295 | ||||||
| Federal funds sold and interest bearing deposits with banks | 228 | 32 | 569 | 62 | ||||||||||
| Taxable investment securities and other | 2,878 | 2,562 | 11,163 | 10,563 | ||||||||||
| Tax exempt investment securities | 487 | 396 | 1,787 | 1,594 | ||||||||||
| TOTAL INTEREST INCOME | 43,683 | 33,055 | 163,296 | 127,514 | ||||||||||
| INTEREST EXPENSE | ||||||||||||||
| Deposits | 3,017 | 1,662 | 10,512 | 5,755 | ||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 3 | 18 | 69 | 110 | ||||||||||
| Other borrowings | 2,484 | 1,256 | 7,066 | 5,009 | ||||||||||
| TOTAL INTEREST EXPENSE | 5,504 | 2,936 | 17,647 | 10,874 | ||||||||||
| NET INTEREST INCOME | 38,179 | 30,119 | 145,649 | 116,640 | ||||||||||
| Provision for loan and lease losses | 375 | - | 4,223 | 1,942 | ||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 37,804 | 30,119 | 141,426 | 114,698 | ||||||||||
| NON-INTEREST INCOME | ||||||||||||||
| Service charges on deposit accounts | 2,577 | 2,620 | 10,157 | 10,024 | ||||||||||
| Commissions and fees | 1,089 | 1,081 | 4,349 | 4,568 | ||||||||||
| Gain on sale of investment securities | - | 51 | 370 | 241 | ||||||||||
| Gain on sale of loans | 525 | 437 | 2,123 | 1,681 | ||||||||||
| Gain on debt extinguishment | - | - | - | 1,830 | ||||||||||
| Income on bank owned life insurance | 437 | 475 | 2,562 | 2,017 | ||||||||||
| Other income | 533 | 114 | 1,769 | 800 | ||||||||||
| TOTAL NON-INTEREST INCOME | 5,161 | 4,778 | 21,330 | 21,161 | ||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||
| Salaries and employee benefit expense | 14,305 | 12,370 | 56,107 | 48,640 | ||||||||||
| Net occupancy expense | 2,534 | 2,068 | 9,935 | 8,956 | ||||||||||
| Furniture and equipment expense | 2,113 | 1,764 | 8,017 | 6,930 | ||||||||||
| Stationary, supplies and postage expense | 456 | 392 | 1,727 | 1,529 | ||||||||||
| Marketing expense | 549 | 534 | 1,672 | 1,586 | ||||||||||
| FDIC insurance expense | 262 | 563 | 2,248 | 2,086 | ||||||||||
| ATM and debit card expense | 433 | 317 | 1,582 | 1,398 | ||||||||||
| Telecommunications expense | 342 | 374 | 1,631 | 1,448 | ||||||||||
| Data processing expense | 394 | 392 | 1,891 | 1,524 | ||||||||||
| Other real estate owned and other repossessed assets expense | 83 | 135 | 116 | 181 | ||||||||||
| Long-term debt prepayment fee | - | - | - | 2,407 | ||||||||||
| Merger related expenses | - | 822 | 4,103 | 1,152 | ||||||||||
| Core deposit intangible amortization | 202 | 99 | 734 | 415 | ||||||||||
| Other expenses | 3,099 | 2,312 | 10,154 | 8,959 | ||||||||||
| TOTAL NON-INTEREST EXPENSE | 24,772 | 22,142 | 99,917 | 87,211 | ||||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 18,193 | 12,755 | 62,839 | 48,648 | ||||||||||
| Provision for income taxes | 6,240 | 4,291 | 21,321 | 16,167 | ||||||||||
| NET INCOME | $ | 11,953 | $ | 8,464 | $ | 41,518 | $ | 32,481 | ||||||
| EARNINGS PER COMMON SHARE | ||||||||||||||
| Basic | $ | 0.26 | $ | 0.22 | $ | 0.96 | $ | 0.85 | ||||||
| Diluted | $ | 0.26 | $ | 0.22 | $ | 0.95 | $ | 0.85 | ||||||
| DIVIDENDS PER COMMON SHARE | $ | 0.095 | $ | 0.085 | $ | 0.370 | $ | 0.330 | ||||||
| Lakeland Bancorp, Inc. | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| December 31, | December 31, | ||||||||||
| (Dollars in thousands) | 2016 | 2015 | |||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 169,149 | $ | 113,894 | |||||||
| Federal funds sold and interest bearing deposits due from banks | 6,652 | 4,599 | |||||||||
| Total cash and cash equivalents | 175,801 | 118,493 | |||||||||
| Investment securities available for sale, at fair value | 606,704 | 442,349 | |||||||||
| Investment securities held to maturity; fair value of $146,990 in 2016 | |||||||||||
| and $117,594 in 2015 | 147,614 | 116,740 | |||||||||
| Federal Home Loan Bank and other membership stocks, at cost | 15,099 | 14,087 | |||||||||
| Loans held for sale | 1,742 | 1,233 | |||||||||
| Loans and leases: | |||||||||||
| Commercial, real estate | 2,766,620 | 1,879,659 | |||||||||
| Commercial, industrial and other | 350,228 | 307,044 | |||||||||
| Leases | 67,016 | 56,660 | |||||||||
| Residential mortgages | 349,581 | 389,692 | |||||||||
| Consumer and home equity | 339,360 | 334,891 | |||||||||
| Total loans and leases | 3,872,805 | 2,967,946 | |||||||||
| Net deferred costs (fees) | (3,297 | ) | (2,746 | ) | |||||||
| Allowance for loan and lease losses | (31,245 | ) | (30,874 | ) | |||||||
| Net loans and leases | 3,838,263 | 2,934,326 | |||||||||
| Premises and equipment, net | 52,236 | 35,881 | |||||||||
| Accrued interest receivable | 12,557 | 9,208 | |||||||||
| Goodwill | 136,392 | 109,974 | |||||||||
| Other identifiable intangible assets | 3,344 | 1,545 | |||||||||
| Bank owned life insurance | 72,384 | 65,361 | |||||||||
| Other assets | 30,995 | 20,353 | |||||||||
| TOTAL ASSETS | $ | 5,093,131 | $ | 3,869,550 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| LIABILITIES | |||||||||||
| Deposits: | |||||||||||
| Non-interest bearing | $ | 927,270 | $ | 693,741 | |||||||
| Savings and interest bearing transaction accounts | 2,620,657 | 1,958,510 | |||||||||
| Time deposits through $250,000 | 404,680 | 270,623 | |||||||||
| Time deposits over $250,000 | 140,228 | 72,698 | |||||||||
| Total deposits | 4,092,835 | 2,995,572 | |||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 56,354 | 151,234 | |||||||||
| Other borrowings | 260,866 | 271,905 | |||||||||
| Subordinated debentures | 104,784 | 31,238 | |||||||||
| Other liabilities | 28,248 | 19,085 | |||||||||
| TOTAL LIABILITIES | 4,543,087 | 3,469,034 | |||||||||
| STOCKHOLDERS' EQUITY | |||||||||||
| Common stock, no par value; authorized 70,000,000 shares; | |||||||||||
| issued 47,222,914 shares at December 31, 2016 | |||||||||||
| and 37,906,481 shares at December 31, 2015 | 510,861 | 386,287 | |||||||||
| Retained earnings | 38,590 | 13,079 | |||||||||
| Accumulated other comprehensive gain | 593 | 1,150 | |||||||||
| TOTAL STOCKHOLDERS' EQUITY | 550,044 | 400,516 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,093,131 | $ | 3,869,550 | |||||||
| Lakeland Bancorp, Inc. | ||||||||||||||||||
| Financial Highlights | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||
| Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | ||||||||||||||
| (Dollars in thousands, except per share data) | 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||
| INCOME STATEMENT | ||||||||||||||||||
| Net interest income | $ | 38,179 | $ | 38,518 | $ | 35,102 | $ | 33,850 | $ | 30,119 | ||||||||
| Provision for loan and lease losses | (375 | ) | (1,763 | ) | (1,010 | ) | (1,075 | ) | - | |||||||||
| Other non-interest income | 4,636 | 5,664 | 4,460 | 4,077 | 4,290 | |||||||||||||
| Gain on investment securities | - | - | - | 370 | 51 | |||||||||||||
| Gain on sale of loans | 525 | 753 | 425 | 420 | 437 | |||||||||||||
| Merger related expenses | - | (1,697 | ) | (685 | ) | (1,721 | ) | (822 | ) | |||||||||
| Other non-interest expense | (24,772 | ) | (24,309 | ) | (23,030 | ) | (23,703 | ) | (21,320 | ) | ||||||||
| Pretax income | 18,193 | 17,166 | 15,262 | 12,218 | 12,755 | |||||||||||||
| Provision for income taxes | (6,240 | ) | (5,839 | ) | (5,132 | ) | (4,110 | ) | (4,291 | ) | ||||||||
| Net income | $ | 11,953 | $ | 11,327 | $ | 10,130 | $ | 8,108 | $ | 8,464 | ||||||||
| Basic earnings per common share | $ | 0.26 | $ | 0.25 | $ | 0.24 | $ | 0.20 | $ | 0.22 | ||||||||
| Diluted earnings per common share | $ | 0.26 | $ | 0.25 | $ | 0.24 | $ | 0.20 | $ | 0.22 | ||||||||
| Dividends per common share | $ | 0.095 | $ | 0.095 | $ | 0.095 | $ | 0.085 | $ | 0.085 | ||||||||
| Dividends paid | $ | 4,265 | $ | 4,261 | $ | 3,955 | $ | 3,525 | $ | 3,246 | ||||||||
| Weighted average shares - basic | 45,002 | 44,439 | 41,238 | 40,931 | 37,865 | |||||||||||||
| Weighted average shares - diluted | 45,257 | 44,659 | 41,406 | 41,091 | 38,048 | |||||||||||||
| SELECTED OPERATING RATIOS | ||||||||||||||||||
| Annualized return on average assets | 0.95 | % | 0.94 | % | 0.93 | % | 0.77 | % | 0.89 | % | ||||||||
| Annualized return on average common equity | 9.31 | % | 9.10 | % | 9.04 | % | 7.40 | % | 8.40 | % | ||||||||
| Annualized return on average tangible common equity (1) | 12.83 | % | 12.68 | % | 12.63 | % | 10.40 | % | 11.64 | % | ||||||||
| Annualized net interest margin | 3.27 | % | 3.45 | % | 3.47 | % | 3.48 | % | 3.43 | % | ||||||||
| Efficiency ratio (1) | 56.16 | % | 53.42 | % | 56.23 | % | 60.38 | % | 58.70 | % | ||||||||
| Common stockholders' equity to total assets | 10.80 | % | 10.17 | % | 10.18 | % | 10.15 | % | 10.35 | % | ||||||||
| Tangible common equity to tangible assets (1) | 8.28 | % | 7.53 | % | 7.53 | % | 7.45 | % | 7.69 | % | ||||||||
| Tier 1 risk-based ratio | 10.84 | % | 9.70 | % | 9.73 | % | 9.93 | % | 10.53 | % | ||||||||
| Total risk-based ratio | 13.47 | % | 12.40 | % | 10.65 | % | 10.87 | % | 11.61 | % | ||||||||
| Tier 1 leverage ratio | 9.06 | % | 8.26 | % | 8.24 | % | 8.33 | % | 8.70 | % | ||||||||
| Common equity tier 1 capital ratio | 10.10 | % | 8.94 | % | 8.90 | % | 9.06 | % | 9.54 | % | ||||||||
| Book value per common share | $ | 11.65 | $ | 11.22 | $ | 11.03 | $ | 10.84 | $ | 10.57 | ||||||||
| Tangible book value per common share (1) | $ | 8.69 | $ | 8.07 | $ | 7.93 | $ | 7.72 | $ | 7.62 | ||||||||
| (1) See Supplemental Information - Non-GAAP Financial Measures | ||||||||||||||||||
| Lakeland Bancorp, Inc. | ||||||||||||||||||
| Financial Highlights | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||
| Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | ||||||||||||||
| (Dollars in thousands) | 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||
| SELECTED BALANCE SHEET DATA AT PERIOD-END | ||||||||||||||||||
| Loans and leases | $ | 3,872,805 | $ | 3,794,519 | $ | 3,454,304 | $ | 3,368,961 | $ | 2,967,946 | ||||||||
| Allowance for loan and lease losses | (31,245 | ) | (31,369 | ) | (30,667 | ) | (30,553 | ) | (30,874 | ) | ||||||||
| Investment securities | 769,417 | 638,091 | 602,408 | 573,136 | 573,176 | |||||||||||||
| Total assets | 5,093,131 | 4,904,291 | 4,467,860 | 4,404,233 | 3,869,550 | |||||||||||||
| Total deposits | 4,092,835 | 3,941,742 | 3,537,331 | 3,462,636 | 2,995,571 | |||||||||||||
| Short-term borrowings | 56,354 | 29,699 | 123,662 | 128,841 | 151,234 | |||||||||||||
| Other borrowings | 365,650 | 398,671 | 326,009 | 341,269 | 303,143 | |||||||||||||
| Stockholders' equity | 550,044 | 498,722 | 454,934 | 446,875 | 400,516 | |||||||||||||
| LOANS AND LEASES | ||||||||||||||||||
| Commercial, real estate | $ | 2,766,620 | $ | 2,675,154 | $ | 2,353,125 | $ | 2,243,335 | $ | 1,879,659 | ||||||||
| Commercial, industrial and other | 350,228 | 339,291 | 313,062 | 332,097 | 307,044 | |||||||||||||
| Leases | 67,016 | 65,659 | 63,338 | 60,925 | 56,660 | |||||||||||||
| Residential mortgages | 349,581 | 370,766 | 383,823 | 392,387 | 389,692 | |||||||||||||
| Consumer and home equity | 339,360 | 343,649 | 340,956 | 340,217 | 334,891 | |||||||||||||
| Total loans and leases | $ | 3,872,805 | $ | 3,794,519 | $ | 3,454,304 | $ | 3,368,961 | $ | 2,967,946 | ||||||||
| DEPOSITS | ||||||||||||||||||
| Non-interest bearing | $ | 927,270 | $ | 931,385 | $ | 824,077 | $ | 774,487 | $ | 693,741 | ||||||||
| Savings and interest bearing transaction accounts | 2,620,657 | 2,471,097 | 2,235,918 | 2,204,356 | 1,958,510 | |||||||||||||
| Time deposits | 544,908 | 539,260 | 477,336 | 483,793 | 343,321 | |||||||||||||
| Total deposits | $ | 4,092,835 | $ | 3,941,742 | $ | 3,537,331 | $ | 3,462,636 | $ | 2,995,572 | ||||||||
| SELECTED AVERAGE BALANCE SHEET DATA | ||||||||||||||||||
| Loans and leases | $ | 3,806,576 | $ | 3,743,434 | $ | 3,412,503 | $ | 3,284,339 | $ | 2,898,477 | ||||||||
| Investment securities | 683,986 | 606,779 | 575,206 | 570,581 | 561,024 | |||||||||||||
| Interest earning assets | 4,680,144 | 4,467,524 | 4,094,575 | 3,933,160 | 3,509,867 | |||||||||||||
| Total assets | 5,015,439 | 4,805,381 | 4,403,588 | 4,248,468 | 3,779,819 | |||||||||||||
| Non-interest bearing demand deposits | 951,418 | 895,851 | 801,488 | 760,198 | 722,270 | |||||||||||||
| Savings deposits | 490,556 | 487,918 | 485,580 | 475,870 | 402,217 | |||||||||||||
| Interest bearing transaction accounts | 2,072,154 | 1,988,405 | 1,775,129 | 1,682,580 | 1,573,638 | |||||||||||||
| Time deposits | 539,870 | 533,224 | 487,169 | 465,024 | 328,080 | |||||||||||||
| Total deposits | 4,053,998 | 3,905,398 | 3,549,366 | 3,383,672 | 3,026,205 | |||||||||||||
| Short-term borrowings | 27,538 | 35,608 | 31,591 | 50,335 | 47,276 | |||||||||||||
| Other borrowings | 392,789 | 339,204 | 346,347 | 349,088 | 286,887 | |||||||||||||
| Total interest bearing liabilities | 3,522,907 | 3,384,359 | 3,125,815 | 3,022,897 | 2,638,098 | |||||||||||||
| Stockholders' equity | 510,562 | 495,343 | 450,806 | 440,823 | 399,987 | |||||||||||||
| Lakeland Bancorp, Inc. | ||||||||||||||||||
| Financial Highlights | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||
| Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | ||||||||||||||
| (Dollars in thousands) | 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||
| AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT BASIS) | ||||||||||||||||||
| ASSETS | ||||||||||||||||||
| Loans and leases | 4.19 | % | 4.23 | % | 4.22 | % | 4.18 | % | 4.12 | % | ||||||||
| Taxable investment securities and other | 2.00 | % | 2.06 | % | 2.18 | % | 2.39 | % | 2.09 | % | ||||||||
| Tax-exempt securities | 2.75 | % | 3.01 | % | 3.15 | % | 3.40 | % | 3.49 | % | ||||||||
| Federal funds sold and interest bearing cash accounts | 0.48 | % | 0.48 | % | 0.46 | % | 0.38 | % | 0.25 | % | ||||||||
| Total interest earning assets | 3.74 | % | 3.85 | % | 3.85 | % | 3.86 | % | 3.76 | % | ||||||||
| LIABILITIES | ||||||||||||||||||
| Savings accounts | 0.06 | % | 0.06 | % | 0.05 | % | 0.08 | % | 0.05 | % | ||||||||
| Interest bearing transaction accounts | 0.35 | % | 0.34 | % | 0.31 | % | 0.30 | % | 0.26 | % | ||||||||
| Time deposits | 0.84 | % | 0.81 | % | 0.79 | % | 0.74 | % | 0.70 | % | ||||||||
| Borrowings | 2.37 | % | 1.71 | % | 1.62 | % | 1.52 | % | 1.53 | % | ||||||||
| Total interest bearing liabilities | 0.62 | % | 0.53 | % | 0.50 | % | 0.49 | % | 0.44 | % | ||||||||
| Net interest spread (taxable equivalent basis) | 3.12 | % | 3.32 | % | 3.35 | % | 3.37 | % | 3.32 | % | ||||||||
| Annualized net interest margin (taxable equivalent basis) | 3.27 | % | 3.45 | % | 3.47 | % | 3.48 | % | 3.43 | % | ||||||||
| Annualized cost of deposits | 0.30 | % | 0.29 | % | 0.27 | % | 0.26 | % | 0.22 | % | ||||||||
| ASSET QUALITY DATA | ||||||||||||||||||
| ALLOWANCE FOR LOAN AND LEASE LOSSES | ||||||||||||||||||
| Balance at beginning of period | $ | 31,369 | $ | 30,667 | $ | 30,553 | $ | 30,874 | $ | 30,994 | ||||||||
| Provision for loan and lease losses | 375 | 1,763 | 1,010 | 1,075 | - | |||||||||||||
| Charge-offs | (795 | ) | (1,273 | ) | (1,045 | ) | (1,543 | ) | (1,140 | ) | ||||||||
| Recoveries | 296 | 212 | 149 | 147 | 1,020 | |||||||||||||
| Balance at end of period | $ | 31,245 | $ | 31,369 | $ | 30,667 | $ | 30,553 | $ | 30,874 | ||||||||
| NET LOAN AND LEASE CHARGE-OFFS (RECOVERIES) | ||||||||||||||||||
| Commercial, real estate | $ | (87 | ) | $ | (11 | ) | $ | 113 | $ | 81 | $ | (450 | ) | |||||
| Commercial, industrial and other | (96 | ) | (30 | ) | 137 | 583 | (56 | ) | ||||||||||
| Leases | 42 | 40 | 183 | 69 | (1 | ) | ||||||||||||
| Residential mortgages | 231 | 385 | 213 | 89 | 66 | |||||||||||||
| Consumer and home equity | 409 | 677 | 250 | 574 | 561 | |||||||||||||
| Net charge-offs (recoveries) | $ | 499 | $ | 1,061 | $ | 896 | $ | 1,396 | $ | 120 | ||||||||
| NON-PERFORMING ASSETS | ||||||||||||||||||
| Commercial, real estate | $ | 11,885 | $ | 13,068 | $ | 12,554 | $ | 11,943 | $ | 10,446 | ||||||||
| Commercial, industrial and other | 167 | 39 | 41 | 1,163 | 103 | |||||||||||||
| Leases | 153 | 78 | 159 | 282 | 316 | |||||||||||||
| Residential mortgages | 6,048 | 7,264 | 8,865 | 8,330 | 8,664 | |||||||||||||
| Consumer and home equity | 2,151 | 2,210 | 3,325 | 3,249 | 3,167 | |||||||||||||
| Total non-accruing loans and leases | 20,404 | 22,659 | 24,944 | 24,967 | 22,696 | |||||||||||||
| Property acquired through foreclosure or repossession | 1,072 | 1,918 | 1,594 | 792 | 983 | |||||||||||||
| Total non-performing assets | $ | 21,476 | $ | 24,577 | $ | 26,538 | $ | 25,759 | $ | 23,679 | ||||||||
| Loans past due 90 days or more and still accruing | $ | 10 | $ | 10 | $ | 42 | $ | 101 | $ | 331 | ||||||||
| Loans restructured and still accruing | $ | 8,802 | $ | 9,251 | $ | 9,509 | $ | 10,545 | $ | 10,108 | ||||||||
| Ratio of allowance for loan and lease losses to total loans and leases | 0.81 | % | 0.83 | % | 0.89 | % | 0.91 | % | 1.04 | % | ||||||||
| Non-performing loans and leases to total loans and leases | 0.53 | % | 0.60 | % | 0.72 | % | 0.74 | % | 0.76 | % | ||||||||
| Non-performing assets to total assets | 0.42 | % | 0.50 | % | 0.59 | % | 0.58 | % | 0.61 | % | ||||||||
| Annualized net charge-offs (recoveries) to average loans | 0.05 | % | 0.11 | % | 0.11 | % | 0.17 | % | 0.02 | % | ||||||||
| Lakeland Bancorp, Inc. | ||||||||||||||||||
| Supplemental Information - Non-GAAP Financial Measures | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| At or for the Quarter Ended | ||||||||||||||||||
| Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | ||||||||||||||
| (Dollars in thousands, except per share amounts) | 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||
| CALCULATION OF TANGIBLE BOOK VALUE PER COMMON SHARE | ||||||||||||||||||
| Total common stockholders' equity at end of period - GAAP | $ | 550,044 | $ | 498,722 | $ | 454,934 | $ | 446,875 | $ | 400,516 | ||||||||
| Less: Goodwill | 136,392 | 136,392 | 125,285 | 125,443 | 109,974 | |||||||||||||
| Less: Other identifiable intangible assets | 3,344 | 3,545 | 2,728 | 2,891 | 1,545 | |||||||||||||
| Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 410,308 | $ | 358,785 | $ | 326,921 | $ | 318,541 | $ | 288,997 | ||||||||
| Shares outstanding at end of period | 47,223 | 44,443 | 41,241 | 41,241 | 37,906 | |||||||||||||
| Book value per share - GAAP | $ | 11.65 | $ | 11.22 | $ | 11.03 | $ | 10.84 | $ | 10.57 | ||||||||
| Tangible book value per share - Non-GAAP | $ | 8.69 | $ | 8.07 | $ | 7.93 | $ | 7.72 | $ | 7.62 | ||||||||
| CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | ||||||||||||||||||
| Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 410,308 | $ | 358,785 | $ | 326,921 | $ | 318,541 | $ | 288,997 | ||||||||
| Total assets at end of period - GAAP | $ | 5,093,131 | $ | 4,904,291 | $ | 4,467,860 | $ | 4,404,233 | $ | 3,869,550 | ||||||||
| Less: Goodwill | 136,392 | 136,392 | 125,285 | 125,443 | 109,974 | |||||||||||||
| Less: Other identifiable intangible assets | 3,344 | 3,545 | 2,728 | 2,891 | 1,545 | |||||||||||||
| Total tangible assets at end of period - Non-GAAP | $ | 4,953,395 | $ | 4,764,354 | $ | 4,339,847 | $ | 4,275,899 | $ | 3,758,031 | ||||||||
| Common equity to assets - GAAP | 10.80 | % | 10.17 | % | 10.18 | % | 10.15 | % | 10.35 | % | ||||||||
| Tangible common equity to tangible assets - Non-GAAP | 8.28 | % | 7.53 | % | 7.53 | % | 7.45 | % | 7.69 | % | ||||||||
| CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY | ||||||||||||||||||
| Net income - GAAP | $ | 11,953 | $ | 11,327 | $ | 10,130 | $ | 8,108 | $ | 8,464 | ||||||||
| Total average common stockholders' equity - GAAP | $ | 510,562 | $ | 495,343 | $ | 450,806 | $ | 440,823 | $ | 399,987 | ||||||||
| Less: Average goodwill | 136,392 | 136,392 | 125,424 | 124,423 | 109,974 | |||||||||||||
| Less: Average other identifiable intangible assets | 3,459 | 3,685 | 2,828 | 2,920 | 1,606 | |||||||||||||
| Total average tangible common stockholders' equity - Non-GAAP | $ | 370,711 | $ | 355,266 | $ | 322,554 | $ | 313,480 | $ | 288,407 | ||||||||
| Return on average common stockholders' equity - GAAP | 9.31 | % | 9.10 | % | 9.04 | % | 7.40 | % | 8.40 | % | ||||||||
| Return on average tangible common stockholders' equity - Non-GAAP | 12.83 | % | 12.68 | % | 12.63 | % | 10.40 | % | 11.64 | % | ||||||||
| CALCULATION OF EFFICIENCY RATIO | ||||||||||||||||||
| Total non-interest expense | $ | 24,772 | $ | 26,006 | $ | 23,715 | $ | 25,424 | $ | 22,142 | ||||||||
| Amortization of core deposit intangibles | (202 | ) | (201 | ) | (164 | ) | (167 | ) | (99 | ) | ||||||||
| Other real estate owned and other repossessed asset expense | (83 | ) | 32 | (26 | ) | (39 | ) | (135 | ) | |||||||||
| Merger related expenses | - | (1,697 | ) | (685 | ) | (1,721 | ) | (822 | ) | |||||||||
| Provision for unfunded lending commitments | - | - | (230 | ) | (208 | ) | (506 | ) | ||||||||||
| Non-interest expense, as adjusted | $ | 24,487 | $ | 24,140 | $ | 22,610 | $ | 23,289 | $ | 20,580 | ||||||||
| Net interest income | $ | 38,179 | $ | 38,518 | $ | 35,102 | $ | 33,850 | $ | 30,119 | ||||||||
| Total non-interest income | 5,161 | 6,417 | 4,885 | 4,867 | 4,778 | |||||||||||||
| Total revenue | 43,340 | 44,935 | 39,987 | 38,717 | 34,897 | |||||||||||||
| Tax-equivalent adjustment on municipal securities | 262 | 253 | 225 | 222 | 212 | |||||||||||||
| Gains on sale of investment securities | - | - | - | (370 | ) | (51 | ) | |||||||||||
| Total revenue, as adjusted | $ | 43,602 | $ | 45,188 | $ | 40,212 | $ | 38,569 | $ | 35,058 | ||||||||
| Efficiency ratio - Non-GAAP | 56.16 | % | 53.42 | % | 56.23 | % | 60.38 | % | 58.70 | % | ||||||||
| For the Quarter Ended | For the Twelve Months Ended | |||||||||||||||||
| Dec 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||||||||
| (Dollars in thousands, except per share amounts) | 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| RECONCILIATION OF EARNINGS PER SHARE | ||||||||||||||||||
| Net income - GAAP | $ | 11,953 | $ | 8,464 | $ | 41,518 | $ | 32,481 | ||||||||||
| NON-ROUTINE TRANSACTIONS | ||||||||||||||||||
| Debt prepayment charges ($2,407 before tax) | - | - | - | 1,424 | ||||||||||||||
| Gain on debt extinguishment ($1,830 before tax) | - | - | - | (1,082 | ) | |||||||||||||
| Associated gain on sale of investment securities ($173 before tax) | - | - | - | (102 | ) | |||||||||||||
| Tax deductible merger related expenses | - | 60 | 1,915 | 150 | ||||||||||||||
| Non-tax deductible merger related expenses | - | 716 | 866 | 889 | ||||||||||||||
| Net effect of non-routine transactions | - | 776 | 2,781 | 1,279 | ||||||||||||||
| Adjusted net income | 11,953 | 9,240 | 44,299 | 33,760 | ||||||||||||||
| Less: Earnings allocated to participating securities | (122 | ) | (74 | ) | (396 | ) | (263 | ) | ||||||||||
| Total adjusted net income - Non-GAAP | $ | 11,831 | $ | 9,166 | $ | 43,903 | $ | 33,497 | ||||||||||
| Weighted average shares - Basic | 45,002 | 37,865 | 42,912 | 37,843 | ||||||||||||||
| Weighted average shares - Diluted | 45,257 | 38,048 | 43,114 | 37,993 | ||||||||||||||
| Basic earnings per share - Non-GAAP | $ | 0.26 | $ | 0.24 | $ | 1.02 | $ | 0.89 | ||||||||||
| Diluted earnings per share - Non-GAAP | $ | 0.26 | $ | 0.24 | $ | 1.02 | $ | 0.88 | ||||||||||
| Lakeland Bancorp, Inc. | |||||||||
| Supplemental Information - Non-GAAP Financial Measures | |||||||||
| (Unaudited) | |||||||||
| For the Twelve Months Ended, | |||||||||
| Dec 31, | Dec 31, | ||||||||
| (Dollars in thousands) | 2016 | 2015 | |||||||
| CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY | |||||||||
| Net income - GAAP | $ | 41,518 | $ | 32,481 | |||||
| Total average common stockholders' equity - GAAP | $ | 474,540 | $ | 392,221 | |||||
| Less: Average goodwill | 130,689 | 109,974 | |||||||
| Less: Average other identifiable intangible assets | 3,225 | 1,759 | |||||||
| Total average tangible common stockholders' equity - Non-GAAP | $ | 340,626 | $ | 280,488 | |||||
| Return on average common stockholders' equity - GAAP | 8.75 | % | 8.28 | % | |||||
| Return on average tangible common stockholders' equity - Non-GAAP | 12.19 | % | 11.58 | % | |||||
| CALCULATION OF EFFICIENCY RATIO | |||||||||
| Total non-interest expense | $ | 99,917 | $ | 87,211 | |||||
| Amortization of core deposit intangibles | (734 | ) | (415 | ) | |||||
| Other real estate owned and other repossessed asset expense | (116 | ) | (181 | ) | |||||
| Long-term debt prepayment fee | - | (2,407 | ) | ||||||
| Merger related expenses | (4,103 | ) | (1,152 | ) | |||||
| Provision for unfunded lending commitments | (438 | ) | (864 | ) | |||||
| Non-interest expense, as adjusted | $ | 94,526 | $ | 82,192 | |||||
| Net interest income | $ | 145,649 | $ | 116,640 | |||||
| Non-interest income | 21,330 | 21,161 | |||||||
| Total revenue | 166,979 | 137,801 | |||||||
| Tax-equivalent adjustment on municipal securities | 962 | 857 | |||||||
| Gain on debt extinguishment | - | (1,830 | ) | ||||||
| Gain on sale of investment securities | (370 | ) | (241 | ) | |||||
| Total revenue, as adjusted | $ | 167,571 | $ | 136,587 | |||||
| Efficiency ratio - Non-GAAP | 56.41 | % | 60.18 | % | |||||