OAK RIDGE, N.J., April 27, 2017 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (NASDAQ:LBAI) (the “Company”), the parent company of Lakeland Bank (“Lakeland”), reported net income of $12.3 million for the three months ended March 31, 2017 compared to $8.1 million for the same period in 2016. For the three months ended March 31, 2017, diluted earnings per share (“EPS”) of $0.26 increased over $0.20 for the same period in 2016. Core EPS, which excludes $1.7 million of pre-tax merger related expenses in the first quarter of 2016(1), increased 18% from $0.22 for the three months ended March 31, 2016 to $0.26 this quarter. For the first quarter of 2017, return on average assets was 0.97%, return on average common equity was 9.02%, and return on average tangible common equity was 12.04%.
Thomas J. Shara, Lakeland Bancorp’s President and CEO, commented, “We are pleased to report another strong quarter highlighted by robust loan and core deposit growth. Our net interest margin increased this quarter as a result of fully deploying the excess liquidity from our subordinated debt and equity offerings in late 2016.”
With respect to the Company’s markets, Mr. Shara added, “We are excited to expand our franchise into New York State with our opening of the Highland Mills branch in the Hudson Valley. This expansion compliments the two bank acquisitions we completed in 2016.”
The following represents performance highlights and significant events for the first quarter of 2017:
- Commercial loans grew $106.3 million, or 3.4%, since December 31, 2016, resulting in total loan growth of $100.8 million to $3.97 billion at March 31, 2017.
- Deposits increased $200.6 million, or 4.9%, since December 31, 2016, to $4.29 billion primarily due to growth in consumer accounts.
- The Company sold an investment security realizing a gain of $2.5 million. The Company elected to prepay $54.0 million in higher rate long-term borrowings and incurred a $2.8 million prepayment penalty.
- Net interest margin (“NIM”) rose to 3.33% compared to 3.27% in the prior quarter and 3.48% for the first quarter of 2016. The increase from the fourth quarter of 2016 was primarily due to the deployment of cash into higher yielding investments and loans as well as the paydown of higher rate long-term debt.
- The efficiency ratio of 56.36% for the first quarter of 2017 compares favorably to 60.48% for the same period in 2016.
- On April 25, 2017, the Company increased its quarterly cash dividend 5.3% to $0.10 per share to be paid on May 16, 2017 to stockholders of record as of May 5, 2017.
- The Company adopted Accounting Standards Update No. 2016-09 related to the accounting of stock compensation and the Company recorded a $0.6 million tax benefit associated with the vesting and exercise of equity awards during the quarter.
- The Company opened its first branch outside of New Jersey to enhance its presence in the Hudson Valley market in New York State.
Earnings
Net income for the first quarter of 2017 was $12.3 million compared to $8.1 million for the first quarter of 2016. Excluding merger related expenses, net income for the first quarter of 2016 was $9.3 million.
Net Interest Income
Net interest income for the first quarter of 2017 was $39.3 million, as compared to $33.9 million for the same period in 2016. Total interest income increased due to the organic growth of earning assets as well as the merger with Harmony Bank in July 2016 (“the merger”). Total interest expense increased $1.8 million, primarily due to additional deposits from the merger, organic deposit growth and the impact of the subordinated debt offering in September 2016.
The yield on interest earning assets for the first quarter of 2017 was 3.78%, as compared to 3.86% reported in the first quarter of 2016, due to a change in the mix of interest-earning assets. The cost of interest-bearing liabilities for the first quarter of 2017 was 0.60% compared to 0.49% for the first quarter of 2016, reflecting the additional interest expense from the subordinated debt offering in September 2016 and the higher cost of deposits.
Noninterest Income
Noninterest income totaled $8.1 million for the first quarter of 2017 compared to $4.9 million for the same period in 2016. This increase was primarily due to an additional $2.2 million gain on sale of investment securities, $0.4 million gain on sale of a former branch, $0.3 million additional gain on sale of other real estate owned, and $0.3 million in higher loan swap fee income.
Noninterest Expense
Noninterest expense totaled $28.5 million for the first quarter of 2017 compared to $25.4 million for the same period in 2016. This quarter, the Company incurred long-term debt prepayment penalties of $2.8 million, and in 2016, the Company incurred $1.7 million in merger related expenses. Salary and employee benefit expenses increased $1.3 million for the three months ended March 31, 2017 compared to the prior year period due primarily to additional staff from the merger and increases in employee salary and benefit costs. Other expenses increased $0.4 million primarily due to higher correspondent, legal, collection, courier and consulting expenses.
Financial Condition
In the first quarter of 2017, total assets increased $154.7 million, or 3.0%, to $5.25 billion as total loans and leases grew $100.8 million to $3.97 billion and investment securities increased $78.4 million to $847.8 million. On the funding side, total deposits grew $200.6 million to $4.29 billion while other borrowings declined $87.4 million to $173.4 million.
Asset Quality
At March 31, 2017, non-performing assets totaled $18.5 million (0.35% of total assets), compared to $21.5 million (0.42% of total assets) at December 31, 2016. Non-performing loans and leases as a percent of total loans and leases decreased to 0.45% at March 31, 2017 from 0.53% at December 31, 2016. The allowance for loan and lease losses totaled $31.6 million at March 31, 2017, and represented 0.79% of total loans and leases. During the first quarter of 2017, the Company had net charge-offs of $0.9 million (annualized 0.09% of average loans) compared to $1.4 million (annualized 0.17% of average loans) for the first quarter of 2016. The provision for loan and lease losses for the first quarter of 2017 was $1.2 million compared to $1.1 million for the first quarter of 2016.
Capital
At March 31, 2017, stockholders' equity was $557.6 million compared to $550.0 million at December 31, 2016. Book value per common share was $11.78 compared to $11.65 at December 31, 2016. Tangible book value per common share was $8.84 compared to $8.70 at December 31, 2016.
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. 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 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 realize anticipated efficiencies and synergies from the Pascack Community Bank and Harmony Bank acquisitions. 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.
(1) 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 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. See accompanying non-GAAP tables.
About Lakeland Bank
Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc., which has $5.2 billion in total assets. The Bank operates 52 New Jersey branch offices in Bergen, Essex, Morris, Ocean, Passaic, Somerset, Sussex, and Union counties and one branch in Highland Mills, New York; six New Jersey regional commercial lending centers in Bernardsville, Jackson, Montville, Newton, Teaneck and Waldwick; and one in New York 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.
| Lakeland Bancorp, Inc. | |||||||||
| Consolidated Statements of Operations | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended March 31, | |||||||||
| (Dollars in thousands, except per share amounts) | 2017 | 2016 | |||||||
| INTEREST INCOME | |||||||||
| Loans and fees | $ | 40,411 | $ | 34,121 | |||||
| Federal funds sold and interest-bearing deposits with banks | 276 | 75 | |||||||
| Taxable investment securities and other | 3,599 | 2,962 | |||||||
| Tax exempt investment securities | 510 | 413 | |||||||
| TOTAL INTEREST INCOME | 44,796 | 37,571 | |||||||
| INTEREST EXPENSE | |||||||||
| Deposits | 3,334 | 2,205 | |||||||
| Federal funds purchased and securities sold under agreements to repurchase | 10 | 38 | |||||||
| Other borrowings | 2,129 | 1,478 | |||||||
| TOTAL INTEREST EXPENSE | 5,473 | 3,721 | |||||||
| NET INTEREST INCOME | 39,323 | 33,850 | |||||||
| Provision for loan and lease losses | 1,218 | 1,075 | |||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 38,105 | 32,775 | |||||||
| NONINTEREST INCOME | |||||||||
| Service charges on deposit accounts | 2,455 | 2,442 | |||||||
| Commissions and fees | 1,156 | 979 | |||||||
| Gain on sale of investment securities | 2,539 | 370 | |||||||
| Gain on sale of loans | 398 | 420 | |||||||
| Income on bank owned life insurance | 426 | 408 | |||||||
| Other income | 1,120 | 248 | |||||||
| TOTAL NONINTEREST INCOME | 8,094 | 4,867 | |||||||
| NONINTEREST EXPENSE | |||||||||
| Salaries and employee benefit expense | 15,417 | 14,085 | |||||||
| Net occupancy expense | 2,836 | 2,688 | |||||||
| Furniture and equipment expense | 2,097 | 1,946 | |||||||
| Stationary, supplies and postage expense | 443 | 443 | |||||||
| Marketing expense | 401 | 309 | |||||||
| FDIC insurance expense | 318 | 590 | |||||||
| ATM and debit card expense | 441 | 346 | |||||||
| Telecommunications expense | 404 | 424 | |||||||
| Data processing expense | 553 | 520 | |||||||
| Other real estate owned and other repossessed assets expense | 37 | 39 | |||||||
| Long-term debt prepayment fee | 2,828 | - | |||||||
| Merger related expenses | - | 1,721 | |||||||
| Core deposit intangible amortization | 195 | 167 | |||||||
| Other expenses | 2,500 | 2,146 | |||||||
| TOTAL NONINTEREST EXPENSE | 28,470 | 25,424 | |||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 17,729 | 12,218 | |||||||
| Provision for income taxes | 5,417 | 4,110 | |||||||
| NET INCOME | $ | 12,312 | $ | 8,108 | |||||
| EARNINGS PER COMMON SHARE | |||||||||
| Basic | $ | 0.26 | $ | 0.20 | |||||
| Diluted | $ | 0.26 | $ | 0.20 | |||||
| DIVIDENDS PER COMMON SHARE | $ | 0.095 | $ | 0.085 | |||||
| Lakeland Bancorp, Inc. | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| March 31, | December 31, | ||||||||||
| (Dollars in thousands) | 2017 | 2016 | |||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 141,757 | $ | 169,149 | |||||||
| Federal funds sold and interest-bearing deposits due from banks | 8,649 | 6,652 | |||||||||
| Total cash and cash equivalents | 150,406 | 175,801 | |||||||||
| Investment securities available for sale, at fair value | 687,352 | 606,704 | |||||||||
| Investment securities held to maturity; fair value of $148,083 in 2017 | |||||||||||
| and $146,990 in 2016 | 148,409 | 147,614 | |||||||||
| Federal Home Loan Bank and other membership stocks, at cost | 12,072 | 15,099 | |||||||||
| Loans held for sale | 767 | 1,742 | |||||||||
| Loans and leases: | |||||||||||
| Commercial, real estate | 2,881,972 | 2,767,710 | |||||||||
| Commercial, industrial and other | 342,264 | 350,228 | |||||||||
| Leases | 67,488 | 67,016 | |||||||||
| Residential mortgages | 344,890 | 349,581 | |||||||||
| Consumer and home equity | 338,104 | 339,360 | |||||||||
| Total loans and leases | 3,974,718 | 3,873,895 | |||||||||
| Net deferred costs (fees) | (3,564 | ) | (3,297 | ) | |||||||
| Allowance for loan and lease losses | (31,590 | ) | (31,245 | ) | |||||||
| Net loans and leases | 3,939,564 | 3,839,353 | |||||||||
| Premises and equipment, net | 51,286 | 52,236 | |||||||||
| Accrued interest receivable | 13,345 | 12,557 | |||||||||
| Goodwill | 135,747 | 135,747 | |||||||||
| Other identifiable intangible assets | 3,149 | 3,344 | |||||||||
| Bank owned life insurance | 72,823 | 72,384 | |||||||||
| Other assets | 32,895 | 30,550 | |||||||||
| TOTAL ASSETS | $ | 5,247,815 | $ | 5,093,131 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| LIABILITIES | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 924,581 | $ | 927,270 | |||||||
| Savings and interest-bearing transaction accounts | 2,809,705 | 2,620,657 | |||||||||
| Time deposits through $250,000 | 414,123 | 404,680 | |||||||||
| Time deposits over $250,000 | 144,984 | 140,228 | |||||||||
| Total deposits | 4,293,393 | 4,092,835 | |||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 84,850 | 56,354 | |||||||||
| Other borrowings | 173,425 | 260,866 | |||||||||
| Subordinated debentures | 104,813 | 104,784 | |||||||||
| Other liabilities | 33,692 | 28,248 | |||||||||
| TOTAL LIABILITIES | 4,690,173 | 4,543,087 | |||||||||
| STOCKHOLDERS' EQUITY | |||||||||||
| Common stock, no par value; authorized 70,000,000 shares; | |||||||||||
| issued 47,350,165 shares at March 31, 2017 | |||||||||||
| and 47,222,914 shares at December 31, 2016 | 511,575 | 510,861 | |||||||||
| Retained earnings | 46,375 | 38,590 | |||||||||
| Accumulated other comprehensive (loss) gain | (308 | ) | 593 | ||||||||
| TOTAL STOCKHOLDERS' EQUITY | 557,642 | 550,044 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,247,815 | $ | 5,093,131 | |||||||
| Lakeland Bancorp, Inc. | ||||||||||||||||||
| Financial Highlights | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||
| Mar 31, | Dec 31, | Sept 30, | June 30, | Mar 31, | ||||||||||||||
| (Dollars in thousands, except per share data) | 2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||
| INCOME STATEMENT | ||||||||||||||||||
| Net interest income | $ | 39,323 | $ | 38,179 | $ | 38,518 | $ | 35,102 | $ | 33,850 | ||||||||
| Provision for loan and lease losses | (1,218 | ) | (375 | ) | (1,763 | ) | (1,010 | ) | (1,075 | ) | ||||||||
| Other noninterest income | 5,157 | 4,636 | 5,664 | 4,460 | 4,077 | |||||||||||||
| Gain on investment securities | 2,539 | - | - | - | 370 | |||||||||||||
| Gain on sale of loans | 398 | 525 | 753 | 425 | 420 | |||||||||||||
| Long-term debt prepayment fee | (2,828 | ) | - | - | - | - | ||||||||||||
| Merger related expenses | - | - | (1,697 | ) | (685 | ) | (1,721 | ) | ||||||||||
| Other noninterest expense | (25,642 | ) | (24,772 | ) | (24,309 | ) | (23,030 | ) | (23,703 | ) | ||||||||
| Pretax income | 17,729 | 18,193 | 17,166 | 15,262 | 12,218 | |||||||||||||
| Provision for income taxes | (5,417 | ) | (6,240 | ) | (5,839 | ) | (5,132 | ) | (4,110 | ) | ||||||||
| Net income | $ | 12,312 | $ | 11,953 | $ | 11,327 | $ | 10,130 | $ | 8,108 | ||||||||
| Basic earnings per common share | $ | 0.26 | $ | 0.26 | $ | 0.25 | $ | 0.24 | $ | 0.20 | ||||||||
| Diluted earnings per common share | $ | 0.26 | $ | 0.26 | $ | 0.25 | $ | 0.24 | $ | 0.20 | ||||||||
| Dividends per common share | $ | 0.095 | $ | 0.095 | $ | 0.095 | $ | 0.095 | $ | 0.085 | ||||||||
| Dividends paid | $ | 4,527 | $ | 4,265 | $ | 4,261 | $ | 3,955 | $ | 3,525 | ||||||||
| Weighted average shares - basic | 47,354 | 45,002 | 44,439 | 41,238 | 40,931 | |||||||||||||
| Weighted average shares - diluted | 47,623 | 45,257 | 44,659 | 41,406 | 41,091 | |||||||||||||
| SELECTED OPERATING RATIOS | ||||||||||||||||||
| Annualized return on average assets | 0.97 | % | 0.95 | % | 0.94 | % | 0.93 | % | 0.77 | % | ||||||||
| Annualized return on average common equity | 9.02 | % | 9.31 | % | 9.10 | % | 9.04 | % | 7.40 | % | ||||||||
| Annualized return on average tangible common equity (1) | 12.04 | % | 12.83 | % | 12.68 | % | 12.63 | % | 10.40 | % | ||||||||
| Annualized net interest margin | 3.33 | % | 3.27 | % | 3.45 | % | 3.47 | % | 3.48 | % | ||||||||
| Efficiency ratio (1) | 56.36 | % | 56.35 | % | 53.35 | % | 56.29 | % | 60.48 | % | ||||||||
| Common stockholders' equity to total assets | 10.63 | % | 10.80 | % | 10.17 | % | 10.18 | % | 10.15 | % | ||||||||
| Tangible common equity to tangible assets (1) | 8.20 | % | 8.30 | % | 7.53 | % | 7.53 | % | 7.45 | % | ||||||||
| Tier 1 risk-based ratio | 10.73 | % | 10.85 | % | 9.70 | % | 9.73 | % | 9.93 | % | ||||||||
| Total risk-based ratio | 13.29 | % | 13.48 | % | 12.40 | % | 10.65 | % | 10.87 | % | ||||||||
| Tier 1 leverage ratio | 8.97 | % | 9.07 | % | 8.26 | % | 8.24 | % | 8.33 | % | ||||||||
| Common equity tier 1 capital ratio | 10.01 | % | 10.11 | % | 8.94 | % | 8.90 | % | 9.06 | % | ||||||||
| Book value per common share | $ | 11.78 | $ | 11.65 | $ | 11.22 | $ | 11.03 | $ | 10.84 | ||||||||
| Tangible book value per common share (1) | $ | 8.84 | $ | 8.70 | $ | 8.07 | $ | 7.93 | $ | 7.72 | ||||||||
| (1) See Supplemental Information - Non-GAAP Financial Measures | ||||||||||||||||||
| Lakeland Bancorp, Inc. | ||||||||||||||||||
| Financial Highlights | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||
| Mar 31, | Dec 31, | Sept 30, | June 30, | Mar 31, | ||||||||||||||
| (Dollars in thousands) | 2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||
| SELECTED BALANCE SHEET DATA AT PERIOD-END | ||||||||||||||||||
| Loans and leases | $ | 3,974,718 | $ | 3,873,895 | $ | 3,794,519 | $ | 3,454,304 | $ | 3,368,961 | ||||||||
| Allowance for loan and lease losses | (31,590 | ) | (31,245 | ) | (31,369 | ) | (30,667 | ) | (30,553 | ) | ||||||||
| Investment securities | 847,833 | 769,417 | 638,091 | 602,408 | 573,136 | |||||||||||||
| Total assets | 5,247,815 | 5,093,131 | 4,904,291 | 4,467,860 | 4,404,233 | |||||||||||||
| Total deposits | 4,293,393 | 4,092,835 | 3,941,742 | 3,537,331 | 3,462,636 | |||||||||||||
| Short-term borrowings | 84,850 | 56,354 | 29,699 | 123,662 | 128,841 | |||||||||||||
| Other borrowings | 278,238 | 365,650 | 398,671 | 326,009 | 341,269 | |||||||||||||
| Stockholders' equity | 557,642 | 550,044 | 498,722 | 454,934 | 446,875 | |||||||||||||
| LOANS AND LEASES | ||||||||||||||||||
| Commercial, real estate | $ | 2,881,972 | $ | 2,767,710 | $ | 2,675,154 | $ | 2,353,125 | $ | 2,243,335 | ||||||||
| Commercial, industrial and other | 342,264 | 350,228 | 339,291 | 313,062 | 332,097 | |||||||||||||
| Leases | 67,488 | 67,016 | 65,659 | 63,338 | 60,925 | |||||||||||||
| Residential mortgages | 344,890 | 349,581 | 370,766 | 383,823 | 392,387 | |||||||||||||
| Consumer and home equity | 338,104 | 339,360 | 343,649 | 340,956 | 340,217 | |||||||||||||
| Total loans and leases | $ | 3,974,718 | $ | 3,873,895 | $ | 3,794,519 | $ | 3,454,304 | $ | 3,368,961 | ||||||||
| DEPOSITS | ||||||||||||||||||
| Noninterest-bearing | $ | 924,581 | $ | 927,270 | $ | 931,385 | $ | 824,077 | $ | 774,487 | ||||||||
| Savings and interest-bearing transaction accounts | 2,809,705 | 2,620,657 | 2,471,097 | 2,235,918 | 2,204,356 | |||||||||||||
| Time deposits | 559,107 | 544,908 | 539,260 | 477,336 | 483,793 | |||||||||||||
| Total deposits | $ | 4,293,393 | $ | 4,092,835 | $ | 3,941,742 | $ | 3,537,331 | $ | 3,462,636 | ||||||||
| SELECTED AVERAGE BALANCE SHEET DATA | ||||||||||||||||||
| Loans and leases | $ | 3,905,216 | $ | 3,806,588 | $ | 3,743,434 | $ | 3,412,503 | $ | 3,284,339 | ||||||||
| Investment securities | 790,046 | 683,986 | 606,779 | 575,206 | 570,581 | |||||||||||||
| Interest-earning assets | 4,825,855 | 4,680,156 | 4,467,524 | 4,094,575 | 3,933,160 | |||||||||||||
| Total assets | 5,153,893 | 5,015,439 | 4,805,381 | 4,403,588 | 4,248,468 | |||||||||||||
| Noninterest-bearing demand deposits | 921,770 | 951,418 | 895,851 | 801,488 | 760,198 | |||||||||||||
| Savings deposits | 490,777 | 490,556 | 487,918 | 485,580 | 475,870 | |||||||||||||
| Interest-bearing transaction accounts | 2,241,954 | 2,072,154 | 1,988,405 | 1,775,129 | 1,682,580 | |||||||||||||
| Time deposits | 555,270 | 539,870 | 533,224 | 487,169 | 465,024 | |||||||||||||
| Total deposits | 4,209,771 | 4,053,998 | 3,905,398 | 3,549,366 | 3,383,672 | |||||||||||||
| Short-term borrowings | 28,358 | 27,538 | 35,608 | 31,591 | 50,335 | |||||||||||||
| Other borrowings | 332,750 | 392,789 | 339,204 | 346,347 | 349,088 | |||||||||||||
| Total interest-bearing liabilities | 3,649,109 | 3,522,907 | 3,384,359 | 3,125,815 | 3,022,897 | |||||||||||||
| Stockholders' equity | 553,782 | 510,562 | 495,343 | 450,806 | 440,823 | |||||||||||||
| Lakeland Bancorp, Inc. | |||||||||||||||||||
| Financial Highlights | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||
| Mar 31, | Dec 31, | Sept 30, | June 30, | Mar 31, | |||||||||||||||
| (Dollars in thousands) | 2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||
| AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT BASIS) | |||||||||||||||||||
| ASSETS | |||||||||||||||||||
| Loans and leases | 4.20 | % | 4.19 | % | 4.23 | % | 4.22 | % | 4.18 | % | |||||||||
| Taxable investment securities and other | 2.13 | % | 2.00 | % | 2.06 | % | 2.18 | % | 2.39 | % | |||||||||
| Tax-exempt securities | 2.78 | % | 2.75 | % | 3.01 | % | 3.15 | % | 3.40 | % | |||||||||
| Federal funds sold and interest-bearing cash accounts | 0.85 | % | 0.48 | % | 0.48 | % | 0.46 | % | 0.38 | % | |||||||||
| Total interest-earning assets | 3.78 | % | 3.74 | % | 3.85 | % | 3.85 | % | 3.86 | % | |||||||||
| LIABILITIES | |||||||||||||||||||
| Savings accounts | 0.06 | % | 0.06 | % | 0.06 | % | 0.05 | % | 0.08 | % | |||||||||
| Interest-bearing transaction accounts | 0.38 | % | 0.35 | % | 0.34 | % | 0.31 | % | 0.30 | % | |||||||||
| Time deposits | 0.83 | % | 0.84 | % | 0.81 | % | 0.79 | % | 0.74 | % | |||||||||
| Borrowings | 2.37 | % | 2.37 | % | 1.71 | % | 1.62 | % | 1.52 | % | |||||||||
| Total interest-bearing liabilities | 0.60 | % | 0.62 | % | 0.53 | % | 0.50 | % | 0.49 | % | |||||||||
| Net interest spread (taxable equivalent basis) | 3.18 | % | 3.12 | % | 3.32 | % | 3.35 | % | 3.37 | % | |||||||||
| Annualized net interest margin (taxable equivalent basis) | 3.33 | % | 3.27 | % | 3.45 | % | 3.47 | % | 3.48 | % | |||||||||
| Annualized cost of deposits | 0.32 | % | 0.30 | % | 0.29 | % | 0.27 | % | 0.26 | % | |||||||||
| ASSET QUALITY DATA | |||||||||||||||||||
| ALLOWANCE FOR LOAN AND LEASE LOSSES | |||||||||||||||||||
| Balance at beginning of period | $ | 31,245 | $ | 31,369 | $ | 30,667 | $ | 30,553 | $ | 30,874 | |||||||||
| Provision for loan and lease losses | 1,218 | 375 | 1,763 | 1,010 | 1,075 | ||||||||||||||
| Charge-offs | (1,360 | ) | (795 | ) | (1,273 | ) | (1,045 | ) | (1,543 | ) | |||||||||
| Recoveries | 487 | 296 | 212 | 149 | 147 | ||||||||||||||
| Balance at end of period | $ | 31,590 | $ | 31,245 | $ | 31,369 | $ | 30,667 | $ | 30,553 | |||||||||
| NET LOAN AND LEASE CHARGE-OFFS (RECOVERIES) | |||||||||||||||||||
| Commercial, real estate | $ | 595 | $ | (87 | ) | $ | (11 | ) | $ | 113 | $ | 81 | |||||||
| Commercial, industrial and other | 68 | (96 | ) | (30 | ) | 137 | 583 | ||||||||||||
| Leases | 39 | 42 | 40 | 183 | 69 | ||||||||||||||
| Residential mortgages | 141 | 231 | 385 | 213 | 89 | ||||||||||||||
| Consumer and home equity | 30 | 409 | 677 | 250 | 574 | ||||||||||||||
| Net charge-offs (recoveries) | $ | 873 | $ | 499 | $ | 1,061 | $ | 896 | $ | 1,396 | |||||||||
| NON-PERFORMING ASSETS | |||||||||||||||||||
| Commercial, real estate | $ | 10,443 | $ | 11,885 | $ | 13,068 | $ | 12,554 | $ | 11,943 | |||||||||
| Commercial, industrial and other | 136 | 167 | 39 | 41 | 1,163 | ||||||||||||||
| Leases | 179 | 153 | 78 | 159 | 282 | ||||||||||||||
| Residential mortgages | 4,715 | 6,048 | 7,264 | 8,865 | 8,330 | ||||||||||||||
| Consumer and home equity | 2,270 | 2,151 | 2,210 | 3,325 | 3,249 | ||||||||||||||
| Total non-accrual loans and leases | 17,743 | 20,404 | 22,659 | 24,944 | 24,967 | ||||||||||||||
| Property acquired through foreclosure or repossession | 710 | 1,072 | 1,918 | 1,594 | 792 | ||||||||||||||
| Total non-performing assets | $ | 18,453 | $ | 21,476 | $ | 24,577 | $ | 26,538 | $ | 25,759 | |||||||||
| Loans past due 90 days or more and still accruing | $ | - | $ | 10 | $ | 10 | $ | 42 | $ | 101 | |||||||||
| Loans restructured and still accruing | $ | 11,553 | $ | 8,802 | $ | 9,251 | $ | 9,509 | $ | 10,545 | |||||||||
| Ratio of allowance for loan and lease losses to total loans and leases | 0.79 | % | 0.81 | % | 0.83 | % | 0.89 | % | 0.91 | % | |||||||||
| Total non-accrual loans and leases to total loans and leases | 0.45 | % | 0.53 | % | 0.60 | % | 0.72 | % | 0.74 | % | |||||||||
| Total non-performing assets to total assets | 0.35 | % | 0.42 | % | 0.50 | % | 0.59 | % | 0.58 | % | |||||||||
| Annualized net charge-offs (recoveries) to average loans and leases | 0.09 | % | 0.05 | % | 0.11 | % | 0.11 | % | 0.17 | % | |||||||||
| Lakeland Bancorp, Inc. | ||||||||||||||||||
| Supplemental Information - Non-GAAP Financial Measures | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| At or for the Quarter Ended | ||||||||||||||||||
| Mar 31, | Dec 31, | Sept 30, | June 30, | Mar 31, | ||||||||||||||
| (Dollars in thousands, except per share amounts) | 2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||
| CALCULATION OF TANGIBLE BOOK VALUE PER COMMON SHARE | ||||||||||||||||||
| Total common stockholders' equity at end of period - GAAP | $ | 557,642 | $ | 550,044 | $ | 498,722 | $ | 454,934 | $ | 446,875 | ||||||||
| Less: Goodwill | 135,747 | 135,747 | 136,392 | 125,285 | 125,443 | |||||||||||||
| Less: Other identifiable intangible assets | 3,149 | 3,344 | 3,545 | 2,728 | 2,891 | |||||||||||||
| Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 418,746 | $ | 410,953 | $ | 358,785 | $ | 326,921 | $ | 318,541 | ||||||||
| Shares outstanding at end of period | 47,350 | 47,223 | 44,443 | 41,241 | 41,241 | |||||||||||||
| Book value per share - GAAP | $ | 11.78 | $ | 11.65 | $ | 11.22 | $ | 11.03 | $ | 10.84 | ||||||||
| Tangible book value per share - Non-GAAP | $ | 8.84 | $ | 8.70 | $ | 8.07 | $ | 7.93 | $ | 7.72 | ||||||||
| CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | ||||||||||||||||||
| Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 418,746 | $ | 410,953 | $ | 358,785 | $ | 326,921 | $ | 318,541 | ||||||||
| Total assets at end of period - GAAP | $ | 5,247,815 | $ | 5,093,131 | $ | 4,904,291 | $ | 4,467,860 | $ | 4,404,233 | ||||||||
| Less: Goodwill | 135,747 | 135,747 | 136,392 | 125,285 | 125,443 | |||||||||||||
| Less: Other identifiable intangible assets | 3,149 | 3,344 | 3,545 | 2,728 | 2,891 | |||||||||||||
| Total tangible assets at end of period - Non-GAAP | $ | 5,108,919 | $ | 4,954,040 | $ | 4,764,354 | $ | 4,339,847 | $ | 4,275,899 | ||||||||
| Common equity to assets - GAAP | 10.63 | % | 10.80 | % | 10.17 | % | 10.18 | % | 10.15 | % | ||||||||
| Tangible common equity to tangible assets - Non-GAAP | 8.20 | % | 8.30 | % | 7.53 | % | 7.53 | % | 7.45 | % | ||||||||
| CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY | ||||||||||||||||||
| Net income - GAAP | $ | 12,312 | $ | 11,953 | $ | 11,327 | $ | 10,130 | $ | 8,108 | ||||||||
| Total average common stockholders' equity - GAAP | $ | 553,782 | $ | 510,562 | $ | 495,343 | $ | 450,806 | $ | 440,823 | ||||||||
| Less: Average goodwill | 135,747 | 136,385 | 136,392 | 125,424 | 124,423 | |||||||||||||
| Less: Average other identifiable intangible assets | 3,276 | 3,459 | 3,685 | 2,828 | 2,920 | |||||||||||||
| Total average tangible common stockholders' equity - Non-GAAP | $ | 414,759 | $ | 370,718 | $ | 355,266 | $ | 322,554 | $ | 313,480 | ||||||||
| Return on average common stockholders' equity - GAAP | 9.02 | % | 9.31 | % | 9.10 | % | 9.04 | % | 7.40 | % | ||||||||
| Return on average tangible common stockholders' equity - Non-GAAP | 12.04 | % | 12.83 | % | 12.68 | % | 12.63 | % | 10.40 | % | ||||||||
| CALCULATION OF EFFICIENCY RATIO | ||||||||||||||||||
| Total noninterest expense | $ | 28,470 | $ | 24,772 | $ | 26,006 | $ | 23,715 | $ | 25,424 | ||||||||
| Amortization of core deposit intangibles | (195 | ) | (202 | ) | (201 | ) | (164 | ) | (167 | ) | ||||||||
| Long-term debt prepayment fee | (2,828 | ) | - | - | - | - | ||||||||||||
| Merger related expenses | - | - | (1,697 | ) | (685 | ) | (1,721 | ) | ||||||||||
| Provision for unfunded lending commitments | - | - | - | (230 | ) | (208 | ) | |||||||||||
| Noninterest expense, as adjusted | $ | 25,447 | $ | 24,570 | $ | 24,108 | $ | 22,636 | $ | 23,328 | ||||||||
| Net interest income | $ | 39,323 | $ | 38,179 | $ | 38,518 | $ | 35,102 | $ | 33,850 | ||||||||
| Total noninterest income | 8,094 | 5,161 | 6,417 | 4,885 | 4,867 | |||||||||||||
| Total revenue | 47,417 | 43,340 | 44,935 | 39,987 | 38,717 | |||||||||||||
| Tax-equivalent adjustment on municipal securities | 275 | 262 | 253 | 225 | 222 | |||||||||||||
| Gains on sale of investment securities | (2,539 | ) | - | - | - | (370 | ) | |||||||||||
| Total revenue, as adjusted | $ | 45,153 | $ | 43,602 | $ | 45,188 | $ | 40,212 | $ | 38,569 | ||||||||
| Efficiency ratio - Non-GAAP | 56.36 | % | 56.35 | % | 53.35 | % | 56.29 | % | 60.48 | % | ||||||||
| For the Quarter Ended | ||||||||||||||||||
| Mar 31, | Mar 31, | |||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2017 | 2016 | ||||||||||||||||
| RECONCILIATION OF EARNINGS PER SHARE | ||||||||||||||||||
| Net income - GAAP | $ | 12,312 | $ | 8,108 | ||||||||||||||
| NON-ROUTINE TRANSACTIONS, NET OF TAX | ||||||||||||||||||
| Tax deductible merger related expenses | - | 819 | ||||||||||||||||
| Non-tax deductible merger related expenses | - | 336 | ||||||||||||||||
| Net effect of non-routine transactions | - | 1,155 | ||||||||||||||||
| Net income available to common shareholders excluding non-routine transactions | 12,312 | 9,263 | ||||||||||||||||
| Less: Earnings allocated to participating securities | (121 | ) | (58 | ) | ||||||||||||||
| $ | 12,191 | $ | 9,205 | |||||||||||||||
| Weighted average shares - Basic | 47,354 | 40,931 | ||||||||||||||||
| Weighted average shares - Diluted | 47,623 | 41,091 | ||||||||||||||||
| Basic earnings per share - GAAP | $ | 0.26 | $ | 0.20 | ||||||||||||||
| Diluted earnings per share - GAAP | $ | 0.26 | $ | 0.20 | ||||||||||||||
| Basic earnings per share, adjusted for non-routine transactions | $ | 0.26 | $ | 0.22 | ||||||||||||||
| Diluted earnings per share, adjusted for non-routine transactions (Core EPS) | $ | 0.26 | $ | 0.22 | ||||||||||||||