OAK RIDGE, N.J., July 26, 2018 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (NASDAQ:LBAI) (the “Company”), the parent company of Lakeland Bank (“Lakeland”), reported net income and diluted earnings per share (“EPS”) of $15.8 million and $0.33, respectively, for the three months ended June 30, 2018, an 18% increase compared to $13.4 million and $0.28 for the three months ended June 30, 2017. For the second quarter of 2018, return on average assets was 1.17%, return on average common equity was 10.71%, and return on average tangible common equity was 13.97%.
For the six months ended June 30, 2018, the Company reported net income of $31.1 million, a 21% increase compared to $25.7 million for the same period in 2017. For the six months ended June 30, 2018, the Company reported diluted EPS of $0.65, an increase of 23% compared to $0.53 for the first six months of 2017. For the first six months of 2018, return on average assets was 1.16%, return on average common equity was 10.65%, and return on average tangible common equity was 13.94%.
Thomas Shara, Lakeland Bancorp’s President and CEO commented, “We are pleased to report another quarter of record net income, which is a result of our ability to carefully grow our loan portfolio and increase our net interest margin despite continued increases in short term market interest rates. Our net interest margin has increased four basis points this quarter and six basis points year-to-date. In addition this quarter, our return on assets rose to 1.17% and our return on common equity rose to nearly 14%, while our efficiency ratio remained low at 56%.”
Net Interest Income
Net interest income increased to $43.5 million for the second quarter of 2018 compared to $41.4 million for the second quarter of 2017, due primarily to the growth of interest earning assets and increases in loan and lease yields. Net interest income for the first six months of 2018 was $85.7 million, as compared to $80.7 million for the same period in 2017.
The yield on interest earning assets for the second quarter of 2018 was 4.12% compared to 3.88% for the second quarter of 2017. The yield on interest earning assets for the first six months of 2018 was 4.07% compared to 3.83% during the same period in 2017. The cost of interest-bearing liabilities for the second quarter of 2018 was 0.91% compared to 0.63% for the second quarter of 2017, reflecting the higher cost of deposits. The cost of interest-bearing liabilities for the first six months of 2018 was 0.87% compared to 0.62% during the same period in 2017. Net interest margin for the second quarter of 2018 of 3.43% increased four basis points from the prior quarter and two basis points from the second quarter of 2017. Net interest margin for the first six months of 2018 of 3.41% increased four basis points from the same period in 2017.
Noninterest Income
Noninterest income decreased $0.4 million to $5.7 million for the second quarter of 2018 from $6.1 million for the second quarter of 2017. This decline was due primarily to a $0.3 million gain on the sale of a former branch and $0.3 million gain on the payoff of an acquired loan recorded in the second quarter of 2017, partially offset by increases in commercial loan fees and income on bank owned life insurance in the second quarter of 2018.
For the first six months of 2018, noninterest income totaled $11.0 million compared to $14.2 million for the same period in 2017. The first half of 2017 included a $2.5 million gain on sales of investment securities, $0.7 million from the sales of two former branches, $0.4 million in gains on sales of other real estate owned and a $0.3 million gain on the payoff of an acquired loan. In the first half of 2018, commissions and fees increased $0.4 million and income on bank owned life insurance increased $0.5 million, while gains on sales of loans decreased $0.3 million compared to the same period in 2017.
Noninterest Expense
Noninterest expense totaled $27.6 million for the second quarter of 2018 compared to $25.4 million for the second quarter of 2017, mainly as a result of salary and employee benefit expense increasing $1.6 million as a result of additions to our staff to support continued growth, as well as normal merit increases and higher benefit costs. In the second quarter of 2018 data processing expense increased $0.5 million compared to the second quarter of 2017 due primarily to the Company’s expansion and improvement of its digital infrastructure.
For the first six months of 2018, noninterest expense totaled $54.7 million compared to $53.8 million for the same period in 2017. Included within 2017 was $2.8 million in long term debt prepayment fees. Excluding the 2017 long term debt prepayment fees, the resulting $3.7 million net increase was primarily due to an increase in salary and employee benefit costs resulting from additions to our staff to support continued growth, as well as normal merit increases and higher benefit costs.
Financial Condition
In 2018, total assets increased $128.8 million to $5.53 billion as total loans and leases grew $124.6 million to $4.28 billion, while investment securities decreased $0.3 million to $798.1 million. On the funding side, total deposits increased $31.3 million to $4.40 billion, while borrowings increased $77.4 million to $499.2 million. As of June 30, 2018, total loans and leases as a percent of total deposits was 97%.
Asset Quality
At June 30, 2018, non-performing assets totaled $16.5 million (0.30% of total assets) compared to $14.5 million (0.27% of total assets) at December 31, 2017. Non-accrual loans and leases as a percent of total loans and leases equaled 0.33% at both June 30, 2018 and December 31, 2017. The allowance for loan and lease losses increased to $36.6 million at June 30, 2018 (0.85% of total loans and leases) compared to $35.5 million at December 31, 2017 (0.85% of total loans and leases). In the second quarter of 2018, the Company had net charge-offs of $0.5 million (0.05% of average loans and leases, annualized) compared to $0.6 million (0.06% of average loans and leases, annualized) for the same period in 2017. The second quarter of 2018 provision for loan and lease losses was $1.5 million compared to $1.8 million in the second quarter of 2017.
Capital
At June 30, 2018, stockholders' equity was $597.9 million compared to $583.1 million at December 31, 2017, a 3% increase. Lakeland Bank remains above FDIC “well capitalized” standards, with a Tier 1 Leverage Ratio of 9.43% at June 30, 2018. At June 30, 2018, the book value per common share and tangible book value per common share were $12.59 and $9.67 compared to $11.99 and $9.05 at June 30, 2017. On July 24, 2018, the Company declared a quarterly cash dividend of $0.115 per share to be paid on August 15, 2018 to stockholders of record as of August 6, 2018.
Forward-Looking Statements
The information disclosed in this document includes various forward-looking statements 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. The Company 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 and regulation affecting the financial services industry, government intervention in the U.S. financial system, changes in federal and state tax laws, changes in levels of market interest rates, pricing pressures on loan and deposit products, credit risks of the Company’s lending and leasing activities, successful implementation, deployment and upgrades of new and existing technology, systems, services and products, customers’ acceptance of the Company’s products and services, and competition. Any statements made by the Company that are not historical facts should be considered to be forward-looking statements. The Company 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 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 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 uses an efficiency ratio that is a non-GAAP financial measure. The ratio that the Company uses excludes amortization of core deposit intangibles, 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 gains and losses from the sale of investment securities and gain on debt extinguishment, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a relevant measure to compare the operating performance period to period.
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. See accompanying non-GAAP tables.
About Lakeland Bank
Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc. (NASDAQ:LBAI), which has $5.5 billion in total assets. The Bank operates 53 branch offices throughout Bergen, Essex, Morris, Ocean, Passaic, Somerset, Sussex, and Union counties in New Jersey including one branch in Highland Mills, New York; six New Jersey regional commercial lending centers in Bernardsville, Jackson, Montville, Newton, Teaneck and Waldwick; and one New York commercial lending center to serve the Hudson Valley region. Lakeland also has a commercial loan production office serving Middlesex and Monmouth counties in New Jersey. Lakeland Bank offers an extensive suite of financial products and services for businesses and consumers. Visit LakelandBank.com for more information.
Thomas J. Shara
President & CEO
Thomas F. Splaine
EVP & CFO
973-697-2000
Lakeland Bancorp, Inc. | ||||||||||||||||||
Financial Highlights | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
(Dollars in thousands, except per share amounts) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||
INCOME STATEMENT | ||||||||||||||||||
Net interest income | $ | 43,493 | $ | 41,421 | $ | 85,729 | $ | 80,744 | ||||||||||
Provision for loan and lease losses | (1,492 | ) | (1,827 | ) | (2,776 | ) | (3,045 | ) | ||||||||||
Gains (losses) on sales of investment securities | - | (15 | ) | - | 2,524 | |||||||||||||
Gains on sales of loans | 300 | 471 | 546 | 869 | ||||||||||||||
Other noninterest income | 5,409 | 5,655 | 10,497 | 10,812 | ||||||||||||||
Long-term debt prepayment fee | - | - | - | (2,828 | ) | |||||||||||||
Other noninterest expense | (27,574 | ) | (25,366 | ) | (54,711 | ) | (51,008 | ) | ||||||||||
Pretax income | 20,136 | 20,339 | 39,285 | 38,068 | ||||||||||||||
Provision for income taxes | (4,298 | ) | (6,969 | ) | (8,192 | ) | (12,386 | ) | ||||||||||
Net income | $ | 15,838 | $ | 13,370 | $ | 31,093 | $ | 25,682 | ||||||||||
Basic earnings per common share | $ | 0.33 | $ | 0.28 | $ | 0.65 | $ | 0.54 | ||||||||||
Diluted earnings per common share | $ | 0.33 | $ | 0.28 | $ | 0.65 | $ | 0.53 | ||||||||||
Dividends paid per common share | $ | 0.115 | $ | 0.100 | $ | 0.215 | $ | 0.195 | ||||||||||
Weighted average shares - basic | 47,600 | 47,465 | 47,552 | 47,410 | ||||||||||||||
Weighted average shares - diluted | 47,770 | 47,674 | 47,753 | 47,646 | ||||||||||||||
SELECTED OPERATING RATIOS | ||||||||||||||||||
Annualized return on average assets | 1.17 | % | 1.02 | % | 1.16 | % | 1.00 | % | ||||||||||
Annualized return on average common equity | 10.71 | % | 9.49 | % | 10.65 | % | 9.26 | % | ||||||||||
Annualized return on average tangible common equity (1) | 13.97 | % | 12.58 | % | 13.94 | % | 12.31 | % | ||||||||||
Annualized return on interest-earning assets | 4.12 | % | 3.88 | % | 4.07 | % | 3.83 | % | ||||||||||
Annualized cost of interest-bearing liabilities | 0.91 | % | 0.63 | % | 0.87 | % | 0.62 | % | ||||||||||
Annualized net interest spread | 3.21 | % | 3.25 | % | 3.20 | % | 3.22 | % | ||||||||||
Annualized net interest margin | 3.43 | % | 3.41 | % | 3.41 | % | 3.37 | % | ||||||||||
Efficiency ratio (1) | 55.60 | % | 52.64 | % | 56.08 | % | 54.44 | % | ||||||||||
Stockholders' equity to total assets | 10.80 | % | 10.58 | % | ||||||||||||||
Book value per common share | $ | 12.59 | $ | 11.99 | ||||||||||||||
Tangible book value per common share (1) | $ | 9.67 | $ | 9.05 | ||||||||||||||
Tangible common equity to tangible assets (1) | 8.51 | % | 8.20 | % | ||||||||||||||
ASSET QUALITY RATIOS | 6/30/2018 | 6/30/2017 | ||||||||||||||||
Ratio of allowance for loan and lease losses to total loans and leases | 0.85 | % | 0.81 | % | ||||||||||||||
Non-performing loans and leases to total loans and leases | 0.33 | % | 0.40 | % | ||||||||||||||
Non-performing assets to total assets | 0.30 | % | 0.33 | % | ||||||||||||||
Annualized net charge-offs to average loans and leases | 0.08 | % | 0.07 | % | ||||||||||||||
SELECTED BALANCE SHEET DATA AT PERIOD-END | 6/30/2018 | 6/30/2017 | ||||||||||||||||
Loans and leases | $ | 4,281,302 | $ | 4,054,276 | ||||||||||||||
Allowance for loan and lease losses | 36,604 | 32,823 | ||||||||||||||||
Investment securities | 798,096 | 830,531 | ||||||||||||||||
Total assets | 5,534,488 | 5,362,187 | ||||||||||||||||
Total deposits | 4,400,019 | 4,227,204 | ||||||||||||||||
Short-term borrowings | 197,870 | 118,487 | ||||||||||||||||
Other borrowings | 301,339 | 417,093 | ||||||||||||||||
Stockholders' equity | 597,864 | 567,545 | ||||||||||||||||
SELECTED AVERAGE BALANCE SHEET DATA | For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
6/30/2018 | 6/30/2017 | 6/30/2018 | 6/30/2017 | |||||||||||||||
Loans and leases | $ | 4,247,443 | $ | 4,011,325 | $ | 4,220,972 | $ | 3,958,564 | ||||||||||
Investment securities | 811,361 | 837,075 | 816,182 | 813,690 | ||||||||||||||
Interest-earning assets | 5,094,048 | 4,907,488 | 5,078,425 | 4,866,897 | ||||||||||||||
Total assets | 5,437,540 | 5,241,155 | 5,423,552 | 5,197,765 | ||||||||||||||
Noninterest-bearing demand deposits | 969,965 | 954,966 | 967,246 | 938,460 | ||||||||||||||
Savings deposits | 496,630 | 492,991 | 492,173 | 491,890 | ||||||||||||||
Interest-bearing transaction accounts | 2,195,553 | 2,295,256 | 2,217,676 | 2,268,752 | ||||||||||||||
Time deposits | 792,270 | 559,665 | 776,929 | 557,479 | ||||||||||||||
Total deposits | 4,454,418 | 4,302,878 | 4,454,024 | 4,256,581 | ||||||||||||||
Short-term borrowings | 73,305 | 52,951 | 64,271 | 40,722 | ||||||||||||||
Other borrowings | 283,206 | 291,882 | 283,425 | 312,203 | ||||||||||||||
Total interest-bearing liabilities | 3,840,964 | 3,692,745 | 3,834,474 | 3,671,047 | ||||||||||||||
Stockholders' equity | 593,388 | 565,211 | 588,571 | 559,528 | ||||||||||||||
(1) See Supplemental Information - Non-GAAP Financial Measures | ||||||||||||||||||
Lakeland Bancorp, Inc. | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands, except per share amounts) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
INTEREST INCOME | ||||||||||||||||
Loans, leases and fees | $ | 47,659 | $ | 42,740 | $ | 93,203 | $ | 83,151 | ||||||||
Federal funds sold and interest-bearing deposits with banks | 145 | 132 | 311 | 408 | ||||||||||||
Taxable investment securities and other | 4,027 | 3,818 | 8,019 | 7,417 | ||||||||||||
Tax exempt investment securities | 429 | 522 | 872 | 1,032 | ||||||||||||
TOTAL INTEREST INCOME | 52,260 | 47,212 | 102,405 | 92,008 | ||||||||||||
INTEREST EXPENSE | ||||||||||||||||
Deposits | 6,501 | 3,784 | 12,256 | 7,118 | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 233 | 98 | 367 | 108 | ||||||||||||
Other borrowings | 2,033 | 1,909 | 4,053 | 4,038 | ||||||||||||
TOTAL INTEREST EXPENSE | 8,767 | 5,791 | 16,676 | 11,264 | ||||||||||||
NET INTEREST INCOME | 43,493 | 41,421 | 85,729 | 80,744 | ||||||||||||
Provision for loan and lease losses | 1,492 | 1,827 | 2,776 | 3,045 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 42,001 | 39,594 | 82,953 | 77,699 | ||||||||||||
NONINTEREST INCOME | ||||||||||||||||
Service charges on deposit accounts | 2,545 | 2,674 | 5,156 | 5,129 | ||||||||||||
Commissions and fees | 1,410 | 1,135 | 2,682 | 2,291 | ||||||||||||
Income on bank owned life insurance | 711 | 500 | 1,430 | 926 | ||||||||||||
Gains on sales of loans | 300 | 471 | 546 | 869 | ||||||||||||
Gains on sales of investment securities | - | (15 | ) | - | 2,524 | |||||||||||
Other income | 743 | 1,346 | 1,229 | 2,466 | ||||||||||||
TOTAL NONINTEREST INCOME | 5,709 | 6,111 | 11,043 | 14,205 | ||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||
Salaries and employee benefit expense | 16,708 | 15,096 | 33,569 | 30,513 | ||||||||||||
Net occupancy expense | 2,603 | 2,507 | 5,341 | 5,343 | ||||||||||||
Furniture and equipment expense | 2,011 | 1,996 | 4,217 | 4,093 | ||||||||||||
FDIC insurance expense | 400 | 425 | 825 | 743 | ||||||||||||
Stationary, supplies and postage expense | 443 | 572 | 859 | 1,015 | ||||||||||||
Marketing expense | 456 | 508 | 817 | 909 | ||||||||||||
Data processing expense | 976 | 502 | 1,442 | 1,055 | ||||||||||||
Telecommunications expense | 462 | 372 | 883 | 776 | ||||||||||||
ATM and debit card expense | 558 | 517 | 1,068 | 958 | ||||||||||||
Core deposit intangible amortization | 153 | 190 | 310 | 385 | ||||||||||||
Other real estate owned and other repossessed assets expense | 21 | 4 | 67 | 41 | ||||||||||||
Long-term debt prepayment fee | - | - | - | 2,828 | ||||||||||||
Other expenses | 2,783 | 2,677 | 5,313 | 5,177 | ||||||||||||
TOTAL NONINTEREST EXPENSE | 27,574 | 25,366 | 54,711 | 53,836 | ||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 20,136 | 20,339 | 39,285 | 38,068 | ||||||||||||
Provision for income taxes | 4,298 | 6,969 | 8,192 | 12,386 | ||||||||||||
NET INCOME | $ | 15,838 | $ | 13,370 | $ | 31,093 | $ | 25,682 | ||||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||||
Basic | $ | 0.33 | $ | 0.28 | $ | 0.65 | $ | 0.54 | ||||||||
Diluted | $ | 0.33 | $ | 0.28 | $ | 0.65 | $ | 0.53 | ||||||||
DIVIDENDS PAID PER COMMON SHARE | $ | 0.115 | $ | 0.100 | $ | 0.215 | $ | 0.195 | ||||||||
Lakeland Bancorp, Inc. | |||||||||||
Consolidated Balance Sheets | |||||||||||
June 30, | December 31, | ||||||||||
(Dollars in thousands) | 2018 | 2017 | |||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Cash | $ | 139,438 | $ | 114,138 | |||||||
Interest-bearing deposits due from banks | 3,374 | 28,795 | |||||||||
Total cash and cash equivalents | 142,812 | 142,933 | |||||||||
Investment securities available for sale, at fair value | 606,231 | 628,046 | |||||||||
Equity securities, at fair value | 16,798 | 18,089 | |||||||||
Investment securities held to maturity; fair value of $155,316 at June 30, 2018 | |||||||||||
and $138,688 at December 31, 2017 | 158,832 | 139,685 | |||||||||
Federal Home Loan Bank and other membership stocks, at cost | 16,235 | 12,576 | |||||||||
Loans held for sale | 1,692 | 456 | |||||||||
Loans and leases: | |||||||||||
Commercial, real estate | 3,222,461 | 3,096,092 | |||||||||
Commercial, industrial and other | 339,974 | 340,400 | |||||||||
Leases | 82,006 | 75,039 | |||||||||
Residential mortgages | 321,717 | 322,880 | |||||||||
Consumer and home equity | 315,144 | 322,269 | |||||||||
Total loans and leases | 4,281,302 | 4,156,680 | |||||||||
Net deferred costs (fees) | (3,763 | ) | (3,960 | ) | |||||||
Allowance for loan and lease losses | (36,604 | ) | (35,455 | ) | |||||||
Net loans and leases | 4,240,935 | 4,117,265 | |||||||||
Premises and equipment, net | 50,409 | 50,313 | |||||||||
Accrued interest receivable | 14,612 | 14,416 | |||||||||
Goodwill | 136,433 | 136,433 | |||||||||
Other identifiable intangible assets | 2,052 | 2,362 | |||||||||
Bank owned life insurance | 108,952 | 107,489 | |||||||||
Other assets | 38,495 | 35,576 | |||||||||
TOTAL ASSETS | $ | 5,534,488 | $ | 5,405,639 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
LIABILITIES | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $ | 967,911 | $ | 967,335 | |||||||
Savings and interest-bearing transaction accounts | 2,625,325 | 2,663,985 | |||||||||
Time deposits $250 thousand and under | 611,777 | 556,863 | |||||||||
Time deposits over $250 thousand | 195,006 | 180,565 | |||||||||
Total deposits | 4,400,019 | 4,368,748 | |||||||||
Federal funds purchased and securities sold under agreements to repurchase | 197,870 | 124,936 | |||||||||
Other borrowings | 196,376 | 192,011 | |||||||||
Subordinated debentures | 104,963 | 104,902 | |||||||||
Other liabilities | 37,396 | 31,920 | |||||||||
TOTAL LIABILITIES | 4,936,624 | 4,822,517 | |||||||||
STOCKHOLDERS' EQUITY | |||||||||||
Common stock, no par value; authorized 70,000,000 shares; | |||||||||||
issued 47,484,057 shares at June 30, 2018 and 47,353,864 shares at December 31, 2017 | 513,756 | 512,734 | |||||||||
Retained earnings | 95,586 | 72,737 | |||||||||
Accumulated other comprehensive gain (loss) | (11,478 | ) | (2,349 | ) | |||||||
TOTAL STOCKHOLDERS' EQUITY | 597,864 | 583,122 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,534,488 | $ | 5,405,639 | |||||||
Lakeland Bancorp, Inc. | |||||||||||||||||
Financial Highlights | |||||||||||||||||
(Unaudited) | |||||||||||||||||
For the Quarter Ended | |||||||||||||||||
June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | |||||||||||||
(Dollars in thousands, except per share data) | 2018 | 2018 | 2017 | 2017 | 2017 | ||||||||||||
INCOME STATEMENT | |||||||||||||||||
Net interest income | $ | 43,493 | $ | 42,236 | $ | 42,379 | $ | 42,115 | $ | 41,421 | |||||||
Provision for loan and lease losses | (1,492 | ) | (1,284 | ) | (1,218 | ) | (1,827 | ) | (1,827 | ) | |||||||
Gains (losses) on sales of investment securities | - | - | - | - | (15 | ) | |||||||||||
Gains on sales of loans | 300 | 246 | 489 | 478 | 471 | ||||||||||||
Other noninterest income | 5,409 | 5,088 | 5,287 | 4,976 | 5,655 | ||||||||||||
Other noninterest expense | (27,574 | ) | (27,137 | ) | (25,849 | ) | (24,849 | ) | (25,366 | ) | |||||||
Pretax income | 20,136 | 19,149 | 21,088 | 20,893 | 20,339 | ||||||||||||
Provision for income taxes | (4,298 | ) | (3,894 | ) | (7,913 | ) | (7,170 | ) | (6,969 | ) | |||||||
Net income | $ | 15,838 | $ | 15,255 | $ | 13,175 | $ | 13,723 | $ | 13,370 | |||||||
Basic earnings per common share | $ | 0.33 | $ | 0.32 | $ | 0.28 | $ | 0.29 | $ | 0.28 | |||||||
Diluted earnings per common share | $ | 0.33 | $ | 0.32 | $ | 0.27 | $ | 0.29 | $ | 0.28 | |||||||
Dividends paid per common share | $ | 0.115 | $ | 0.100 | $ | 0.100 | $ | 0.100 | $ | 0.100 | |||||||
Dividends paid | $ | 5,509 | $ | 4,778 | $ | 4,776 | $ | 4,775 | $ | 4,775 | |||||||
Weighted average shares - basic | 47,600 | 47,503 | 47,466 | 47,466 | 47,465 | ||||||||||||
Weighted average shares - diluted | 47,770 | 47,736 | 47,719 | 47,692 | 47,674 | ||||||||||||
SELECTED OPERATING RATIOS | |||||||||||||||||
Annualized return on average assets | 1.17 | % | 1.14 | % | 0.97 | % | 1.03 | % | 1.02 | % | |||||||
Annualized return on average common equity | 10.71 | % | 10.60 | % | 8.99 | % | 9.48 | % | 9.49 | % | |||||||
Annualized return on average tangible common equity (1) | 13.97 | % | 13.90 | % | 11.82 | % | 12.51 | % | 12.58 | % | |||||||
Annualized net interest margin | 3.43 | % | 3.39 | % | 3.37 | % | 3.39 | % | 3.41 | % | |||||||
Efficiency ratio (1) | 55.60 | % | 56.58 | % | 53.06 | % | 51.72 | % | 52.64 | % | |||||||
Common stockholders' equity to total assets | 10.80 | % | 10.75 | % | 10.79 | % | 10.69 | % | 10.58 | % | |||||||
Tangible common equity to tangible assets (1) | 8.51 | % | 8.43 | % | 8.44 | % | 8.33 | % | 8.20 | % | |||||||
Tier 1 risk-based ratio | 11.16 | % | 11.08 | % | 10.87 | % | 10.82 | % | 10.77 | % | |||||||
Total risk-based ratio | 13.67 | % | 13.61 | % | 13.40 | % | 13.37 | % | 13.32 | % | |||||||
Tier 1 leverage ratio | 9.43 | % | 9.28 | % | 9.12 | % | 9.07 | % | 8.99 | % | |||||||
Common equity tier 1 capital ratio | 10.49 | % | 10.40 | % | 10.18 | % | 10.13 | % | 10.06 | % | |||||||
Book value per common share | $ | 12.59 | $ | 12.40 | $ | 12.31 | $ | 12.19 | $ | 11.99 | |||||||
Tangible book value per common share (1) | $ | 9.67 | $ | 9.48 | $ | 9.38 | $ | 9.25 | $ | 9.05 | |||||||
(1) See Supplemental Information - Non-GAAP Financial Measures | |||||||||||||||||
Lakeland Bancorp, Inc. | ||||||||||||||||||
Financial Highlights | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||
June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | ||||||||||||||
(Dollars in thousands) | 2018 | 2018 | 2017 | 2017 | 2017 | |||||||||||||
SELECTED BALANCE SHEET DATA AT PERIOD-END | ||||||||||||||||||
Loans and leases | $ | 4,281,302 | $ | 4,228,052 | $ | 4,156,680 | $ | 4,092,893 | $ | 4,054,276 | ||||||||
Allowance for loan and lease losses | 36,604 | 35,644 | 35,455 | 33,925 | 32,823 | |||||||||||||
Investment securities | 798,096 | 805,654 | 798,396 | 795,096 | 830,531 | |||||||||||||
Total assets | 5,534,488 | 5,477,829 | 5,405,639 | 5,399,481 | 5,362,187 | |||||||||||||
Total deposits | 4,400,019 | 4,447,965 | 4,368,748 | 4,356,996 | 4,227,204 | |||||||||||||
Short-term borrowings | 197,870 | 126,485 | 124,936 | 133,960 | 118,487 | |||||||||||||
Other borrowings | 301,339 | 281,906 | 296,913 | 301,411 | 417,093 | |||||||||||||
Stockholders' equity | 597,864 | 588,648 | 583,122 | 577,081 | 567,545 | |||||||||||||
LOANS AND LEASES | ||||||||||||||||||
Commercial, real estate | $ | 3,222,461 | $ | 3,169,375 | $ | 3,096,092 | $ | 3,018,106 | $ | 2,955,596 | ||||||||
Commercial, industrial and other | 339,974 | 339,665 | 340,400 | 342,775 | 352,977 | |||||||||||||
Leases | 82,006 | 78,238 | 75,039 | 71,698 | 70,295 | |||||||||||||
Residential mortgages | 321,717 | 323,054 | 322,880 | 329,625 | 337,765 | |||||||||||||
Consumer and home equity | 315,144 | 317,720 | 322,269 | 330,689 | 337,643 | |||||||||||||
Total loans and leases | $ | 4,281,302 | $ | 4,228,052 | $ | 4,156,680 | $ | 4,092,893 | $ | 4,054,276 | ||||||||
DEPOSITS | ||||||||||||||||||
Noninterest-bearing | $ | 967,911 | $ | 974,641 | $ | 967,335 | $ | 955,444 | $ | 978,668 | ||||||||
Savings and interest-bearing transaction accounts | 2,625,325 | 2,682,726 | 2,663,985 | 2,681,512 | 2,682,291 | |||||||||||||
Time deposits | 806,783 | 790,598 | 737,428 | 720,040 | 566,245 | |||||||||||||
Total deposits | $ | 4,400,019 | $ | 4,447,965 | $ | 4,368,748 | $ | 4,356,996 | $ | 4,227,204 | ||||||||
Total loans and leases to total deposits ratio | 97.3 | % | 95.1 | % | 95.1 | % | 93.9 | % | 95.9 | % | ||||||||
SELECTED AVERAGE BALANCE SHEET DATA | ||||||||||||||||||
Loans and leases | $ | 4,247,443 | $ | 4,194,207 | $ | 4,116,920 | $ | 4,060,838 | $ | 4,011,325 | ||||||||
Investment securities | 811,361 | 821,055 | 798,687 | 815,773 | 837,075 | |||||||||||||
Interest-earning assets | 5,094,048 | 5,062,628 | 5,014,333 | 4,957,856 | 4,907,488 | |||||||||||||
Total assets | 5,437,540 | 5,409,409 | 5,372,248 | 5,300,191 | 5,241,155 | |||||||||||||
Noninterest-bearing demand deposits | 969,965 | 964,498 | 988,451 | 971,143 | 954,966 | |||||||||||||
Savings deposits | 496,630 | 487,666 | 478,685 | 484,982 | 492,991 | |||||||||||||
Interest-bearing transaction accounts | 2,195,553 | 2,240,044 | 2,222,221 | 2,206,206 | 2,295,256 | |||||||||||||
Time deposits | 792,270 | 761,418 | 730,590 | 645,333 | 559,665 | |||||||||||||
Total deposits | 4,454,418 | 4,453,626 | 4,419,947 | 4,307,664 | 4,302,878 | |||||||||||||
Short-term borrowings | 73,305 | 55,137 | 43,130 | 42,172 | 52,951 | |||||||||||||
Other borrowings | 283,206 | 283,645 | 295,818 | 344,775 | 291,882 | |||||||||||||
Total interest-bearing liabilities | 3,840,964 | 3,827,910 | 3,770,444 | 3,723,468 | 3,692,745 | |||||||||||||
Stockholders' equity | 593,388 | 583,700 | 581,254 | 574,113 | 565,211 | |||||||||||||
Lakeland Bancorp, Inc. | ||||||||||||||||||
Financial Highlights | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||
June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | ||||||||||||||
(Dollars in thousands) | 2018 | 2018 | 2017 | 2017 | 2017 | |||||||||||||
AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT BASIS) | ||||||||||||||||||
ASSETS | ||||||||||||||||||
Loans and leases | 4.50 | % | 4.40 | % | 4.33 | % | 4.33 | % | 4.27 | % | ||||||||
Taxable investment securities and other | 2.21 | % | 2.17 | % | 2.17 | % | 2.09 | % | 2.11 | % | ||||||||
Tax-exempt securities | 2.66 | % | 2.65 | % | 3.21 | % | 2.98 | % | 2.86 | % | ||||||||
Federal funds sold and interest-bearing cash accounts | 1.65 | % | 1.40 | % | 1.06 | % | 1.03 | % | 0.89 | % | ||||||||
Total interest-earning assets | 4.12 | % | 4.02 | % | 3.95 | % | 3.93 | % | 3.88 | % | ||||||||
LIABILITIES | ||||||||||||||||||
Savings accounts | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | ||||||||
Interest-bearing transaction accounts | 0.69 | % | 0.61 | % | 0.51 | % | 0.49 | % | 0.44 | % | ||||||||
Time deposits | 1.34 | % | 1.23 | % | 1.17 | % | 1.03 | % | 0.86 | % | ||||||||
Borrowings | 2.51 | % | 2.54 | % | 2.36 | % | 2.20 | % | 2.30 | % | ||||||||
Total interest-bearing liabilities | 0.91 | % | 0.83 | % | 0.75 | % | 0.71 | % | 0.63 | % | ||||||||
Net interest spread (taxable equivalent basis) | 3.21 | % | 3.19 | % | 3.20 | % | 3.22 | % | 3.25 | % | ||||||||
Annualized net interest margin (taxable equivalent basis) | 3.43 | % | 3.39 | % | 3.37 | % | 3.39 | % | 3.41 | % | ||||||||
Annualized cost of deposits | 0.59 | % | 0.52 | % | 0.45 | % | 0.41 | % | 0.35 | % | ||||||||
ASSET QUALITY DATA | ||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ||||||||||||||||||
Balance at beginning of period | $ | 35,644 | $ | 35,455 | $ | 33,925 | $ | 32,823 | $ | 31,590 | ||||||||
Provision for loan and lease losses | 1,492 | 1,284 | 1,218 | 1,827 | 1,827 | |||||||||||||
Charge-offs | (963 | ) | (1,250 | ) | (347 | ) | (869 | ) | (870 | ) | ||||||||
Recoveries | 431 | 155 | 659 | 144 | 276 | |||||||||||||
Balance at end of period | $ | 36,604 | $ | 35,644 | $ | 35,455 | $ | 33,925 | $ | 32,823 | ||||||||
NET LOAN AND LEASE CHARGE-OFFS (RECOVERIES) | ||||||||||||||||||
Commercial, real estate | $ | 181 | $ | (13 | ) | $ | 132 | $ | 285 | $ | (67 | ) | ||||||
Commercial, industrial and other | 213 | 992 | 25 | 168 | 44 | |||||||||||||
Leases | 69 | 21 | 34 | 80 | 92 | |||||||||||||
Residential mortgages | (3 | ) | 79 | 31 | 95 | 169 | ||||||||||||
Consumer and home equity | 72 | 16 | (534 | ) | 97 | 356 | ||||||||||||
Net charge-offs (recoveries) | $ | 532 | $ | 1,095 | $ | (312 | ) | $ | 725 | $ | 594 | |||||||
NON-PERFORMING ASSETS | ||||||||||||||||||
Commercial, real estate | $ | 7,353 | $ | 6,204 | $ | 7,362 | $ | 6,820 | $ | 10,240 | ||||||||
Commercial, industrial and other | 1,171 | 1,505 | 184 | 172 | 378 | |||||||||||||
Leases | 834 | 250 | 144 | 110 | 81 | |||||||||||||
Residential mortgages | 2,992 | 3,045 | 3,860 | 4,410 | 3,857 | |||||||||||||
Consumer and home equity | 1,917 | 2,341 | 2,105 | 2,033 | 1,689 | |||||||||||||
Total non-accrual loans and leases | 14,267 | 13,345 | 13,655 | 13,545 | 16,245 | |||||||||||||
Property acquired through foreclosure or repossession | 2,184 | 1,392 | 843 | 1,168 | 1,415 | |||||||||||||
Total non-performing assets | $ | 16,451 | $ | 14,737 | $ | 14,498 | $ | 14,713 | $ | 17,660 | ||||||||
Loans past due 90 days or more and still accruing | $ | - | $ | 1 | $ | 200 | $ | 9 | $ | 20 | ||||||||
Loans restructured and still accruing | $ | 7,926 | $ | 9,526 | $ | 11,462 | $ | 11,279 | $ | 11,697 | ||||||||
Ratio of allowance for loan and lease losses to total loans and leases | 0.85 | % | 0.84 | % | 0.85 | % | 0.83 | % | 0.81 | % | ||||||||
Total non-accrual loans and leases to total loans and leases | 0.33 | % | 0.32 | % | 0.33 | % | 0.33 | % | 0.40 | % | ||||||||
Total non-performing assets to total assets | 0.30 | % | 0.27 | % | 0.27 | % | 0.27 | % | 0.33 | % | ||||||||
Annualized net charge-offs (recoveries) to average loans and leases | 0.05 | % | 0.10 | % | -0.03 | % | 0.07 | % | 0.06 | % | ||||||||
Lakeland Bancorp, Inc. | ||||||||||||||||||
Supplemental Information - Non-GAAP Financial Measures | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
At or for the Quarter Ended | ||||||||||||||||||
June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | ||||||||||||||
(Dollars in thousands, except per share amounts) | 2018 | 2018 | 2017 | 2017 | 2017 | |||||||||||||
CALCULATION OF TANGIBLE BOOK VALUE PER COMMON SHARE | ||||||||||||||||||
Total common stockholders' equity at end of period - GAAP | $ | 597,864 | $ | 588,648 | $ | 583,122 | $ | 577,081 | $ | 567,545 | ||||||||
Less: Goodwill | 136,433 | 136,433 | 136,433 | 136,433 | 136,433 | |||||||||||||
Less: Other identifiable intangible assets | 2,052 | 2,205 | 2,362 | 2,526 | 2,631 | |||||||||||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 459,379 | $ | 450,010 | $ | 444,327 | $ | 438,122 | $ | 428,481 | ||||||||
Shares outstanding at end of period | 47,484 | 47,476 | 47,354 | 47,353 | 47,353 | |||||||||||||
Book value per share - GAAP | 12.59 | $ | 12.40 | $ | 12.31 | $ | 12.19 | $ | 11.99 | |||||||||
Tangible book value per share - Non-GAAP | 9.67 | $ | 9.48 | $ | 9.38 | $ | 9.25 | $ | 9.05 | |||||||||
CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | ||||||||||||||||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 459,379 | $ | 450,010 | $ | 444,327 | $ | 438,122 | $ | 428,481 | ||||||||
Total assets at end of period - GAAP | $ | 5,534,488 | $ | 5,477,829 | $ | 5,405,639 | $ | 5,399,481 | $ | 5,362,187 | ||||||||
Less: Goodwill | 136,433 | 136,433 | 136,433 | 136,433 | 136,433 | |||||||||||||
Less: Other identifiable intangible assets | 2,052 | 2,205 | 2,362 | 2,526 | 2,631 | |||||||||||||
Total tangible assets at end of period - Non-GAAP | $ | 5,396,003 | $ | 5,339,191 | $ | 5,266,844 | $ | 5,260,522 | $ | 5,223,123 | ||||||||
Common equity to assets - GAAP | 10.80 | % | 10.75 | % | 10.79 | % | 10.69 | % | 10.58 | % | ||||||||
Tangible common equity to tangible assets - Non-GAAP | 8.51 | % | 8.43 | % | 8.44 | % | 8.33 | % | 8.20 | % | ||||||||
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY | ||||||||||||||||||
Net income - GAAP | $ | 15,838 | $ | 15,255 | $ | 13,175 | $ | 13,723 | $ | 13,370 | ||||||||
Total average common stockholders' equity - GAAP | $ | 593,388 | $ | 583,700 | $ | 581,254 | $ | 574,113 | $ | 565,211 | ||||||||
Less: Average goodwill | 136,433 | 136,433 | 136,433 | 136,433 | 135,755 | |||||||||||||
Less: Average other identifiable intangible assets | 2,134 | 2,300 | 2,450 | 2,606 | 3,069 | |||||||||||||
Total average tangible common stockholders' equity - Non-GAAP | $ | 454,821 | $ | 444,967 | $ | 442,371 | $ | 435,074 | $ | 426,387 | ||||||||
Return on average common stockholders' equity - GAAP | 10.71 | % | 10.60 | % | 8.99 | % | 9.48 | % | 9.49 | % | ||||||||
Return on average tangible common stockholders' equity - Non-GAAP | 13.97 | % | 13.90 | % | 11.82 | % | 12.51 | % | 12.58 | % | ||||||||
CALCULATION OF EFFICIENCY RATIO | ||||||||||||||||||
Total noninterest expense | $ | 27,574 | $ | 27,137 | $ | 25,849 | $ | 24,849 | $ | 25,366 | ||||||||
Amortization of core deposit intangibles | (153 | ) | (157 | ) | (165 | ) | (104 | ) | (190 | ) | ||||||||
Noninterest expense, as adjusted | $ | 27,421 | $ | 26,980 | $ | 25,684 | $ | 24,745 | $ | 25,176 | ||||||||
Net interest income | $ | 43,493 | $ | 42,236 | $ | 42,379 | $ | 42,115 | $ | 41,421 | ||||||||
Total noninterest income | 5,709 | 5,334 | 5,776 | 5,454 | 6,111 | |||||||||||||
Total revenue | 49,202 | 47,570 | 48,155 | 47,569 | 47,532 | |||||||||||||
Tax-equivalent adjustment on municipal securities | 114 | 118 | 247 | 271 | 281 | |||||||||||||
(Gains) losses on sales of investment securities | - | - | - | - | 15 | |||||||||||||
Total revenue, as adjusted | $ | 49,316 | $ | 47,688 | $ | 48,402 | $ | 47,840 | $ | 47,828 | ||||||||
Efficiency ratio - Non-GAAP | 55.60 | % | 56.58 | % | 53.06 | % | 51.72 | % | 52.64 | % | ||||||||
Lakeland Bancorp, Inc. | |||||||||
Supplemental Information - Non-GAAP Financial Measures | |||||||||
(Unaudited) | |||||||||
For the Six Months Ended, | |||||||||
June 30, | June 30, | ||||||||
(Dollars in thousands) | 2018 | 2017 | |||||||
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY | |||||||||
Net income - GAAP | $ | 31,093 | $ | 25,682 | |||||
Total average common stockholders' equity - GAAP | $ | 588,571 | $ | 559,528 | |||||
Less: Average goodwill | 136,433 | 135,751 | |||||||
Less: Average other identifiable intangible assets | 2,217 | 3,172 | |||||||
Total average tangible common stockholders' equity - Non-GAAP | $ | 449,921 | $ | 420,605 | |||||
Return on average common stockholders' equity - GAAP | 10.65 | % | 9.26 | % | |||||
Return on average tangible common stockholders' equity - Non-GAAP | 13.94 | % | 12.31 | % | |||||
CALCULATION OF EFFICIENCY RATIO | |||||||||
Total noninterest expense | $ | 54,711 | $ | 53,836 | |||||
Amortization of core deposit intangibles | (310 | ) | (385 | ) | |||||
Long-term debt prepayment fee | - | (2,828 | ) | ||||||
Noninterest expense, as adjusted | $ | 54,401 | $ | 50,623 | |||||
Net interest income | $ | 85,729 | $ | 80,744 | |||||
Noninterest income | 11,043 | 14,205 | |||||||
Total revenue | 96,772 | 94,949 | |||||||
Tax-equivalent adjustment on municipal securities | 232 | 556 | |||||||
Gains on sales of investment securities | - | (2,524 | ) | ||||||
Total revenue, as adjusted | $ | 97,004 | $ | 92,981 | |||||
Efficiency ratio - Non-GAAP | 56.08 | % | 54.44 | % | |||||