Lakeland Bancorp Announces Second Quarter Results and Increases Earnings by 18%


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 DATAFor 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%