EXHIBIT 99.1
Lakeland Bancorp Reports Strong Fourth Quarter and Full Year 2010 Results and Declares 5% Stock Dividend
OAK RIDGE, N.J., Jan. 20, 2011 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (Nasdaq:LBAI) reported the following developments for the fourth quarter and full year 2010:
- Net Income Available to Common Shareholders was $4.4 million or $0.17 per diluted share for the fourth quarter of 2010, as compared to $1.3 million, or $0.05 per diluted share reported in the same period last year. For the year ended 2010, Net Income Available to Common Shareholders was $15.2 million or $0.60 per diluted share, as compared to a net loss of ($8.6) million or ($0.35) per share in 2009.
- The Company declared a quarterly cash dividend of $0.06 per common share. The cash dividend will be paid on February 15, 2011 to holders of record as of the close of business on January 31, 2011. In addition, the Company has authorized a 5% stock dividend, which will be paid on February 16, 2011 to holders of record as of the close of business January 31, 2011. The Company also declared a dividend of 5% for the quarterly dividend payment due February 15, 2011 for the preferred stock issued to the U.S. Department of the Treasury under the Capital Purchase Program.
- In the fourth quarter of 2010, net interest margin ("NIM") at 3.93% was three basis points higher than the NIM reported for the same period last year, and equaled the third quarter of 2010. The NIM for 2010 was 3.95%, a 21 basis point improvement from 3.74% reported in 2009.
- Noninterest bearing demand deposits of $383.9 million at December 31, 2010 increased by $4.3 million from September 30, 2010 and by $60.7 million, or 19%, from year-end 2009.
- The efficiency ratio for the fourth quarter of 2010 was 57.0%, which equaled the efficiency ratio for the same period in 2009, reflecting the continued management of expenses. For the year ended 2010, the efficiency ratio was 56.6%, as compared to 62.1% in 2009.
- The provision for loan and lease losses in the fourth quarter of 2010 was $4.5 million, as compared to $6.4 million for the same period in 2009. For 2010, the provision for loan and lease losses was $19.3 million, which compared to $51.6 million in 2009. Included in the 2009 total was $35.2 million allocated to leasing loans. The loan loss reserve as a percentage of total loans was 1.36% at December 31, 2010, as compared to 1.27% at year-end 2009.
Thomas J. Shara, Lakeland Bancorp's President and CEO said, "We are pleased to report fourth quarter and full-year 2010 earnings which showed substantial improvement from the same respective periods last year. These results were driven by a continued strong net interest margin, controlled expenses, and a reduced provision for loan and lease losses. In 2010, we have continued to emphasize building long-term relationships with consumers and small businesses in the communities we serve. This effort is reflected in a 19% increase in non-interest bearing demand deposits, as well as increases in commercial and industrial loans and residential mortgage loans of 12% and 5%, respectively, in 2010. In the fourth quarter of 2010, loans increased overall by $28.2 million, including $15.2 million in commercial and industrial loans and $25.5 million in commercial real estate loans."
Earnings
Net Interest Income
Net interest income for the fourth quarter of 2010 was $25.3 million, which was equivalent to the net interest income for the same period last year. Net interest margin increased by three basis points to 3.93% from 3.90% reported in the fourth quarter of 2009. The increase in net interest margin was primarily driven by the continued decrease in the cost of funds. The Company's yield on interest-earning assets in the fourth quarter of 2010 was 4.81%, a decrease of 41 basis points from the same period in 2009 and twelve basis points lower than the third quarter of 2010. The cost of interest-bearing liabilities was 1.07%, a decrease of 50 basis points from the fourth quarter of 2009 and eleven basis points from the third quarter of 2010.
For 2010, net interest income was $99.8 million, or 7% higher than the $93.4 million reported in 2009. Net interest margin for 2010 at 3.95% compared to 3.74% for 2009. The Company's yield on interest-earning assets decreased 37 basis points from 5.34% in 2009, to 4.97% in 2010. The Company's cost of interest bearing liabilities decreased 68 basis points from 1.89% for 2009 to 1.21% in 2010.
Noninterest income
Noninterest income, excluding net gains (losses) on investment securities, totaled $4.6 million for the fourth quarter of 2010, an increase of $217,000, or 5%, as compared to the same period in 2009. Service charges on deposits at $2.7 million decreased by $132,000, while commissions and fees at $850,000 decreased by 12%, primarily due to reduced loan fees and investment commission income. Gains on leasing related assets were $409,000 in the fourth quarter of 2010 as compared to losses of $87,000 in the fourth quarter of 2009.
Noninterest income for 2010, excluding gains on the sale of investment securities, totaled $17.7 million, as compared to $16.0 million for 2009. Service charges on deposit accounts at $10.3 million were $640,000, or 6%, lower than 2009, primarily due to lower overdraft fees collected. Gains on leasing related assets were $1.6 million in 2010 as compared to losses of $1.1 million in 2009. Income on bank owned life insurance at $1.5 million decreased by $414,000 as compared to 2009 as the Company received an insurance benefit on a bank owned life insurance policy in 2009.
Noninterest expense
Noninterest expense for the fourth quarter of 2010 was $17.6 million, compared to $20.3 million for the same period in 2009. Included in noninterest expense in the fourth quarter of 2009 was a $3.1 million fee on the prepayment of long-term debt. Excluding this item, noninterest expenses at $17.6 million in the fourth quarter of 2010 were $329,000 higher than the total reported for the same period in 2009. Salary and benefit expense at $9.1 million was $476,000, or 6%, higher than the same period in 2009. Net occupancy, furniture and equipment expenses at $2.9 million remained unchanged. Marketing expense at $987,000 and stationery and supplies expense at $464,000 increased by $362,000 and $74,000, respectively, as compared to the same period in 2009 last year as certain expenses incurred for the Company's new brand identity project were expensed in the fourth quarter of 2010.
For 2010, noninterest expense at $70.4 million compared to $73.8 million for 2009. Included in the total for 2010 is a $1.8 million prepayment fee on long-term debt expensed in the third quarter of 2010, while in 2009 noninterest expense included the $3.1 prepayment fee previously mentioned, a $1.2 million industry-wide special FDIC assessment and a $704,000 expense incurred relating to the pretax payout on a life insurance benefit. Excluding all of these items, non-interest expenses in 2010 at $68.5 million were $245,000 lower than the $68.8 million reported for 2009. Collection expenses at $592,000 and expenses on other real estate owned and other repossessed assets at $483,000, decreased by $960,000 and $519,000, respectively, while legal expenses at $1.7 million increased by $694,000 as compared to the same period last year.
Financial Condition
At December 31, 2010, total assets were $2.8 billion, a $68.7 million, or 3%, increase from year-end 2009. Total loans at $2.0 billion were equivalent to total loans at December 31, 2009. Residential mortgage loans at $403.6 million and commercial and industrial loans at $188.4 million, increased in 2010 by $20.8 million and $19.9 million, respectively, while leasing loans at $67.2 million decreased by $53.3 million. Total deposits at $2.2 billion increased by $38.7 million, or 2% from year-end 2009. Noninterest bearing demand deposits at $383.9 million and savings and interest-bearing transaction accounts at $1.4 billion have increased by $60.7 million and $30.9 million, respectively. This increase was partially offset by a decrease in time deposits of $52.9 million. The loan-to-deposit ratio on December 31, 2010 was 92%, which compared to 94% on December 31, 2009.
Asset Quality
At December 31, 2010, non-performing assets totaled $44.6 million (1.60% of total assets), as compared to $45.2 million (1.63% of total assets) at September 30, 2010. The Allowance for Loan and Lease Losses totaled $27.3 million at December 31, 2010, and represented 1.36% of total loans. During the fourth quarter of 2010, the Company had net charge-offs of $4.4 million (annualized 0.89% of total loans). For 2010, the net charge-offs totaled $17.5 million.
Capital
Stockholders' equity was $260.7 million and book value per common share was $8.82 as of December 31, 2010. As of December 31, 2010, the Company's leverage ratio was 9.21%. Tier I and total risk based capital ratios were 12.43% and 13.68%, respectively. These regulatory capital ratios exceed those necessary to be considered a well-capitalized institution under Federal guidelines.
Forward-Looking Statements
The information disclosed in this document includes various forward-looking statements (with respect to corporate objectives, trends, and other financial and business matters) that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipates", "projects", "intends", "estimates", "expects", "believes", "plans", "may", "will", "should", "could", and other similar expressions are intended to identify such forward-looking statements. Lakeland cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. The following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: changes in the financial services industry and the U.S. and global capital markets, changes in economic conditions nationally, regionally and in the Company's markets, the nature and timing of actions of the Federal Reserve Board and other regulators, the nature and timing of legislation affecting the financial services industry, government intervention in the U.S. financial system, passage by the U.S. Congress of legislation which unilaterally amends the terms of the U.S. Department of the Treasury's preferred stock investment in the Company, 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 and competition. Any statements made by Lakeland that are not historical facts should be considered to be forward-looking statements. Lakeland is not obligated to update and does not undertake to update any of its forward-looking statements made herein.
EXPLANATION OF NON-GAAP FINANCIAL MEASURES
Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. 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.
The Company also uses an efficiency ratio that is a non-GAAP financial measure. The ratio that the Company uses excludes amortization of core deposit intangibles, expenses on other real estate owned and other repossessed assets and, where applicable, long-term debt prepayment fees. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes securities gains and losses, 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.
Lakeland Bancorp, the holding company for Lakeland Bank, has a current asset base of $2.8 billion and forty-seven (47) offices spanning six northwestern New Jersey counties: Bergen, Essex, Morris, Passaic, Sussex and Warren. Lakeland Bank, headquartered at 250 Oak Ridge Road, Oak Ridge, New Jersey offers an extensive array of consumer and commercial products and services, including online banking, localized commercial lending teams, and 24-hour or less turnaround time on consumer loan applications. For more information about their full line of products and services, visit their website at www.lakelandbank.com.
| Lakeland Bancorp, Inc. |
| Financial Highlights |
| (unaudited) |
| | | |
| | Three months ended December 31, | Year Ended December 31, |
| | | �� | | |
| | 2010 | 2009 | 2010 | 2009 |
| | (Dollars in thousands except per share amounts) |
| INCOME STATEMENT | | | | |
| Net Interest Income | $ 25,248 | $ 24,982 | $ 99,754 | $ 93,379 |
| Provision for Loan and Lease Losses | (4,544) | (6,438) | (19,281) | (51,615) |
| Noninterest Income (excluding investment securities gains/losses) | 4,585 | 4,368 | 17,654 | 15,952 |
| Gains (losses) on investment securities | (68) | 2,552 | 1,614 | 2,905 |
| Noninterest Expense | (17,567) | (20,313) | (70,405) | (73,794) |
| Pretax Income (Loss) | 7,654 | 5,151 | 29,336 | (13,173) |
| Tax (Expense) Benefit | (2,634) | (3,011) | (10,125) | 7,777 |
| Net Income (Loss) | $ 5,020 | $ 2,140 | $ 19,211 | $ (5,396) |
| Dividends on Preferred Stock and Discount Accretion | (596) | (885) | (3,987) | (3,194) |
| Net Income (Loss) Available to Common Stockholders | $ 4,424 | $ 1,255 | $ 15,224 | $ (8,590) |
| | | | | |
| | | | | |
| Basic Earnings (Loss) Per Common Share (1) | $ 0.17 | $ 0.05 | $ 0.60 | $ (0.35) |
| Diluted Earnings (Loss) Per Common Share (1) | $ 0.17 | $ 0.05 | $ 0.60 | $ (0.35) |
| Dividends per Common Share (1) | $ 0.06 | $ 0.05 | $ 0.20 | $ 0.29 |
| Weighted Average Shares - Basic (1) | 25,166 | 24,923 | 25,097 | 24,856 |
| Weighted Average Shares - Diluted (1) | 25,307 | 24,926 | 25,128 | 24,856 |
| | | | | |
| SELECTED OPERATING RATIOS | | | | |
| Annualized Return on Average Assets (2) | 0.71% | 0.30% | 0.69% | NM |
| Annualized Return on Average Common Equity (2) | 8.86% | 3.98% | 8.70% | NM |
| Annualized Return on Average Tangible Common Equity (2) (5) | 14.54% | 6.82% | 14.49% | NM |
| Annualized Return on Interest Earning Assets | 4.81% | 5.22% | 4.97% | 5.34% |
| Annualized Cost of Interest Bearing Liabilities | 1.07% | 1.57% | 1.21% | 1.89% |
| Annualized Net interest spread | 3.74% | 3.65% | 3.76% | 3.45% |
| Annualized Net interest margin | 3.93% | 3.90% | 3.95% | 3.74% |
| Efficiency ratio | 57.05% | 56.99% | 56.57% | 62.11% |
| Stockholders' equity to total assets | | | 9.34% | 9.84% |
| Book value per common share (1) (3) | | | $8.82 | $8.46 |
| Tangible book value per common share (1) (3) (5) | | | $5.35 | $4.92 |
| Tangible common equity to tangible assets (3) (5) | | | 5.01% | 4.68% |
| | | | | |
| ASSET QUALITY RATIOS | | | 12/31/2010 | 12/31/2009 |
| Ratio of allowance for loan and lease losses to total loans (4) | | | 1.36% | 1.27% |
| Non-performing loans to total loans (4) | | | 2.14% | 1.92% |
| Non-performing assets to total assets (4) | | | 1.60% | 1.49% |
| Annualized net charge-offs to average loans (4) | | | 0.88% | 2.55% |
| | | | | |
| SELECTED BALANCE SHEET DATA AT PERIOD-END | | | 12/31/2010 | 12/31/2009 |
| Loans and Leases | | | $ 2,012,314 | $ 2,014,127 |
| Allowance for Loan and Lease Losses | | | (27,331) | (25,563) |
| Investment Securities | | | 553,680 | 457,351 |
| Total Assets | | | 2,792,674 | 2,723,968 |
| Total Deposits | | | 2,195,889 | 2,157,187 |
| Short-Term Borrowings | | | 52,123 | 63,672 |
| Other Borrowings | | | 272,322 | 223,222 |
| Stockholders' Equity | | | 260,709 | 267,986 |
| | | | | |
| SELECTED AVERAGE BALANCE SHEET DATA | For the three months ended | For the Year Ended |
| | 12/31/2010 | 12/31/2009 | 12/31/2010 | 12/31/2009 |
| Loans and Leases, net | $ 1,995,857 | $ 1,999,830 | $ 1,995,158 | $ 2,007,881 |
| Investment Securities | 549,034 | 538,830 | 501,746 | 479,118 |
| Interest-Earning Assets | 2,577,464 | 2,572,501 | 2,550,082 | 2,530,007 |
| Total Assets | 2,802,024 | 2,790,501 | 2,776,969 | 2,737,175 |
| Core Deposits | 1,828,511 | 1,689,148 | 1,759,561 | 1,533,972 |
| Time Deposits | 425,951 | 498,987 | 456,692 | 589,499 |
| Total Deposits | 2,254,462 | 2,188,135 | 2,216,253 | 2,123,471 |
| Short-Term Borrowings | 75,020 | 56,507 | 62,774 | 49,887 |
| Other Borrowings | 119,994 | 184,241 | 138,658 | 202,653 |
| Subordinated Debentures | 77,322 | 77,322 | 77,322 | 77,322 |
| Total Interest-Bearing Liabilities | 2,133,088 | 2,172,252 | 2,135,092 | 2,138,139 |
| Stockholders' Equity | 262,270 | 269,358 | 269,260 | 267,327 |
| Common Stockholders' Equity | 224,849 | 213,422 | 220,796 | 217,062 |
| | | | | |
| (1) Adjusted for 5% stock dividend payable on February 16, 2011 to shareholders of record January 31, 2011. | | |
| (2) Ratios for the year ended December 31, 2009 are not meaningful and therefore not reported. | | |
| (3) Excludes preferred stock | | | | |
| (4) Includes leases held for sale | | | | |
| (5) See supplemental information - non-GAAP financial measures | | | | |
| |
| Lakeland Bancorp, Inc. and Subsidiaries |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| | | | | |
| | Three Months Ended December 31, | Year Ended December 31, |
| | 2010 | 2009 | 2010 | 2009 |
| (dollars in thousands, except per share amounts) | | | | |
| INTEREST INCOME | | | | |
| Loans and fees | $27,613 | $29,192 | $111,584 | $117,123 |
| Federal funds sold and interest bearing deposits with banks | 11 | 20 | 121 | 109 |
| Taxable investment securities | 2,835 | 3,785 | 11,934 | 14,351 |
| Tax exempt investment securities | 498 | 526 | 2,010 | 2,239 |
| TOTAL INTEREST INCOME | 30,957 | 33,523 | 125,649 | 133,822 |
| INTEREST EXPENSE | | | | |
| Deposits | 3,338 | 5,324 | 15,195 | 26,793 |
| Federal funds purchased and securities sold under agreements to repurchase | 32 | 43 | 127 | 139 |
| Other Borrowings | 2,339 | 3,174 | 10,573 | 13,511 |
| TOTAL INTEREST EXPENSE | 5,709 | 8,541 | 25,895 | 40,443 |
| NET INTEREST INCOME | 25,248 | 24,982 | 99,754 | 93,379 |
| Provision for loan and lease losses | 4,544 | 6,438 | 19,281 | 51,615 |
| NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 20,704 | 18,544 | 80,473 | 41,764 |
| | | | | |
| NONINTEREST INCOME | | | | |
| Service charges on deposit accounts | 2,652 | 2,784 | 10,278 | 10,918 |
| Commissions and fees | 850 | 968 | 3,533 | 3,709 |
| Gains (losses) on sales of investment securities | (68) | 2,552 | 1,614 | 2,905 |
| Income on bank owned life insurance | 369 | 457 | 1,516 | 1,930 |
| Gain (loss) on leasing related assets | 409 | (87) | 1,580 | (1,142) |
| Other income | 305 | 246 | 747 | 537 |
| TOTAL NONINTEREST INCOME | 4,517 | 6,920 | 19,268 | 18,857 |
| NONINTEREST EXPENSE | | | | |
| Salaries and employee benefits | 9,114 | 8,638 | 36,086 | 34,505 |
| Net occupancy expense | 1,710 | 1,570 | 6,735 | 6,637 |
| Furniture and equipment | 1,206 | 1,319 | 4,867 | 5,038 |
| Stationery, supplies and postage | 464 | 390 | 1,636 | 1,605 |
| Marketing expense | 987 | 625 | 2,700 | 2,633 |
| Amortization of core deposit intangibles | 266 | 266 | 1,062 | 1,062 |
| FDIC insurance expense | 930 | 1,272 | 3,764 | 5,819 |
| Collection expense | 97 | 265 | 592 | 1,552 |
| Legal expense | 523 | 350 | 1,698 | 1,004 |
| Expenses on other real estate owned and other repossessed assets | 129 | 85 | 483 | 1,002 |
| Long-term debt prepayment fee | -- | 3,075 | 1,835 | 3,075 |
| Other expenses | 2,141 | 2,458 | 8,947 | 9,862 |
| TOTAL NONINTEREST EXPENSE | 17,567 | 20,313 | 70,405 | 73,794 |
| INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | 7,654 | 5,151 | 29,336 | (13,173) |
| Provision (benefit) for income taxes | 2,634 | 3,011 | 10,125 | (7,777) |
| NET INCOME (LOSS) | $5,020 | $2,140 | $19,211 | ($5,396) |
| Dividends on Preferred Stock and Discount Accretion | 596 | 885 | 3,987 | 3,194 |
| Net Income (Loss) Available to Common Stockholders | $4,424 | $1,255 | $15,224 | ($8,590) |
| EARNINGS (LOSS) PER COMMON SHARE | | | | |
| Basic | $0.17 | $0.05 | $0.60 | $(0.35) |
| Diluted | $0.17 | $0.05 | $0.60 | $(0.35) |
| | | | | |
| DIVIDENDS PER COMMON SHARE | $0.06 | $0.05 | $0.20 | $0.29 |
| |
| Lakeland Bancorp, Inc. and Subsidiaries |
| CONSOLIDATED BALANCE SHEETS (Unaudited) |
| | | |
| ASSETS | December 31,
2010 | December 31,
2009 |
| (dollars in thousands) | | |
| Cash and due from banks | $26,063 | $31,869 |
| Federal funds sold and interest-bearing deposits due from banks | 23,215 | 26,794 |
| Total cash and cash equivalents | 49,278 | 58,663 |
| | | |
| Investment securities available for sale | 487,107 | 375,530 |
| Investment securities held to maturity; fair value of $68,815 in 2010 and $84,389 in 2009 | 66,573 | 81,821 |
| Loans: | | |
| Commercial real estate | 1,046,920 | 1,026,494 |
| Commercial and industrial | 188,354 | 168,450 |
| Leases | 65,640 | 113,161 |
| Residential mortgages | 403,561 | 382,778 |
| Consumer and home equity | 306,322 | 315,930 |
| Leases held for sale, at fair value | 1,517 | 7,314 |
| Total loans | 2,012,314 | 2,014,127 |
| Deferred cost | 2,303 | 2,908 |
| Allowance for loan and lease losses | (27,331) | (25,563) |
| Net loans | 1,987,286 | 1,991,472 |
| Premises and equipment, net | 27,554 | 29,196 |
| Accrued interest receivable | 8,849 | 8,943 |
| Goodwill | 87,111 | 87,111 |
| Other identifiable intangible assets, net | 578 | 1,640 |
| Bank owned life insurance | 43,284 | 41,720 |
| Other assets | 35,054 | 47,872 |
| TOTAL ASSETS | $2,792,674 | $2,723,968 |
| | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | |
| LIABILITIES: | | |
| Deposits: | | |
| Noninterest bearing | $383,877 | $323,175 |
| Savings and interest-bearing transaction accounts | 1,399,163 | 1,368,272 |
| Time deposits under $100,000 | 241,911 | 283,512 |
| Time deposits $100,000 and over | 170,938 | 182,228 |
| Total deposits | 2,195,889 | 2,157,187 |
| Federal funds purchased and securities sold under agreements to repurchase | 52,123 | 63,672 |
| Other Borrowings | 195,000 | 145,900 |
| Subordinated debentures | 77,322 | 77,322 |
| Other liabilities | 11,631 | 11,901 |
| TOTAL LIABILITIES | 2,531,965 | 2,455,982 |
| | | |
| STOCKHOLDERS' EQUITY | | |
| Preferred stock, Series A, no par value, $1,000 liquidation value, authorized 1,000,000 shares; issued 39,000 shares at December 31, 2010 and 59,000 shares at December 31, 2009 | 37,474 | 56,023 |
| Common stock, no par value; authorized 40,000,000 shares; issued 25,977,592 shares at December 31, 2010 and December 31, 2009 | 271,595 | 259,521 |
| Accumulated Deficit | (38,004) | (34,961) |
| Treasury shares, at cost, 655,768 shares at December 31, 2010 and 911,849 at December 31, 2009 | (8,683) | (11,940) |
| Accumulated other comprehensive loss | (1,673) | (657) |
| TOTAL STOCKHOLDERS' EQUITY | 260,709 | 267,986 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $2,792,674 | $2,723,968 |
| Lakeland Bancorp, Inc. |
| Financial Highlights |
| (unaudited) |
| | For the quarter ended |
| (dollars in thousands, except per share data) | Dec. 31,
2010 | Sept 30,
2010 | June 30,
2010 | Mar. 31,
2010 | Dec. 31,
2009 |
| INCOME STATEMENT | (unaudited) |
| Net Interest Income | $ 25,248 | $ 24,990 | $ 24,929 | $ 24,587 | $ 24,982 |
| Provision for Loan and Lease Losses | (4,544) | (4,857) | (5,001) | (4,879) | (6,438) |
| Noninterest Income (excluding investment securities gains/losses) | 4,585 | 4,408 | 4,553 | 4,108 | 4,368 |
| Gains on investment securities | (68) | 1,681 | -- | 1 | 2,552 |
| Long-term debt prepayment fee | -- | (1,835) | -- | -- | (3,075) |
| Noninterest Expense, excluding long-term debt prepayment fee | (17,567) | (17,116) | (17,107) | (16,780) | (17,238) |
| Pretax Income | 7,654 | 7,271 | 7,374 | 7,037 | 5,151 |
| Tax Expense | (2,634) | (2,399) | (2,621) | (2,471) | (3,011) |
| Net Income | $ 5,020 | $ 4,872 | $ 4,753 | $ 4,566 | $ 2,140 |
| Dividends on Preferred Stock and Discount Accretion | (596) | (1,589) | (904) | (898) | (885) |
| Net Income Available to Common Stockholders | $ 4,424 | $ 3,283 | $ 3,849 | $ 3,668 | $ 1,255 |
| | | | | | |
| Basic Earnings Per Common Share (1) | $ 0.17 | $ 0.13 | $ 0.15 | $ 0.15 | $ 0.05 |
| Diluted Earnings Per Common Share (1) | $ 0.17 | $ 0.13 | $ 0.15 | $ 0.15 | $ 0.05 |
| Dividends per Common Share (1) | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 |
| Weighted Average Shares - Basic (1) | 25,166 | 25,117 | 25,083 | 25,020 | 24,923 |
| Weighted Average Shares - Diluted (1) | 25,307 | 25,156 | 25,162 | 25,031 | 24,926 |
| | | | | | |
| SELECTED OPERATING RATIOS | | | | | |
| Annualized Return on Average Assets | 0.71% | 0.69% | 0.69% | 0.67% | 0.30% |
| Annualized Return on Average Common Equity | 8.86% | 8.63% | 8.70% | 8.60% | 3.98% |
| Annualized Return on Tangible Common Equity (3) | 14.54% | 14.23% | 14.59% | 14.63% | 6.82% |
| Annualized Net Interest Margin | 3.93% | 3.93% | 3.96% | 3.99% | 3.90% |
| Efficiency ratio (3) | 57.05% | 56.40% | 55.94% | 56.87% | 56.99% |
| Stockholders' equity to total assets | 9.34% | 9.41% | 10.15% | 9.85% | 9.84% |
| Common stockholders' equity to total assets | 7.99% | 8.07% | 8.09% | 7.82% | 7.78% |
| Tangible common equity to tangible assets (3) | 5.01% | 5.05% | 5.03% | 4.78% | 4.68% |
| Tier 1 risk-based ratio | 12.43% | 12.44% | 13.24% | 12.94% | 12.65% |
| Total risk-based ratio | 13.68% | 13.69% | 14.49% | 14.19% | 13.90% |
| Tier 1 leverage ratio | 9.21% | 9.14% | 9.77% | 9.72% | 9.44% |
| Book value per common share (1) (2) | $ 8.82 | $ 8.84 | $ 8.78 | $ 8.59 | $ 8.46 |
| Tangible book value per common share (1) (2) (3) | $ 5.35 | $ 5.36 | $ 5.28 | $ 5.08 | $ 4.92 |
| | | | | | |
| (1) Adjusted for 5% stock dividend payable on February 16, 2011 to shareholders of record January 31, 2011. | | | |
| (2) Excludes preferred stock | | | | | |
| (3) See Supplemental Information - Non GAAP financial measures | | | | | |
| |
| Lakeland Bancorp, Inc. |
| Financial Highlights |
| (unaudited) |
| | |
| | For the quarter ended |
| (dollars in thousands) | Dec. 31,
2010 | Sept. 30
2010 | June 30,
2010 | Mar. 31,
2010 | Dec. 31,
2009 |
| | (unaudited) |
| SELECTED BALANCE SHEET DATA AT PERIOD-END | | | | | |
| Loans and Leases | $ 2,012,314 | $ 1,984,139 | $ 1,992,848 | $ 2,005,327 | $ 2,014,127 |
| Allowance for Loan and Lease Losses | (27,331) | (27,218) | (27,728) | (26,836) | (25,563) |
| Investment Securities | 553,680 | 508,606 | 512,154 | 473,400 | 457,351 |
| Total Assets | 2,792,674 | 2,769,471 | 2,738,557 | 2,767,976 | 2,723,968 |
| Total Deposits | 2,195,889 | 2,234,772 | 2,170,145 | 2,202,776 | 2,157,187 |
| Short-Term Borrowings | 52,123 | 68,448 | 54,176 | 57,326 | 63,672 |
| Other Borrowings | 272,322 | 193,222 | 223,222 | 223,222 | 223,222 |
| Stockholders' Equity | 260,709 | 260,725 | 277,862 | 272,684 | 267,986 |
| | | | | | |
| Loans and Leases | | | | | |
| Commercial real estate | $ 1,046,920 | $ 1,021,401 | $ 1,026,815 | $ 1,030,638 | $ 1,026,494 |
| Commercial and industrial | 188,354 | 173,163 | 174,899 | 173,056 | 168,450 |
| Leases | 65,640 | 77,440 | 87,936 | 100,738 | 113,161 |
| Leases held for sale | 1,517 | 2,029 | 3,233 | 4,128 | 7,314 |
| Residential mortgages | 403,561 | 403,019 | 394,610 | 387,477 | 382,778 |
| Consumer and Home Equity | 306,322 | 307,087 | 305,355 | 309,290 | 315,930 |
| Total loans | $ 2,012,314 | $ 1,984,139 | $ 1,992,848 | $ 2,005,327 | $ 2,014,127 |
| | | | | | |
| Deposits | | | | | |
| Noninterest bearing | $ 383,877 | $ 379,625 | $ 358,054 | $ 346,651 | $ 323,175 |
| Savings and interest-bearing transaction accounts | 1,399,163 | 1,413,063 | 1,352,373 | 1,373,972 | 1,368,272 |
| Time deposits under $100,000 | 241,911 | 256,705 | 266,891 | 280,500 | 283,512 |
| Time deposits $100,000 and over | 170,938 | 185,379 | 192,827 | 201,653 | 182,228 |
| Total deposits | $ 2,195,889 | $ 2,234,772 | $ 2,170,145 | $ 2,202,776 | $ 2,157,187 |
| | | | | | |
| SELECTED AVERAGE BALANCE SHEET DATA | | | | | |
| Loans and Leases, net | $ 1,995,857 | $ 1,976,248 | $ 1,999,494 | $ 2,009,389 | $ 1,999,830 |
| Investment Securities | 549,034 | 506,485 | 482,386 | 468,138 | 538,830 |
| Interest-Earning Assets | 2,577,464 | 2,546,557 | 2,550,143 | 2,525,632 | 2,572,501 |
| Total Assets | 2,802,024 | 2,781,733 | 2,771,724 | 2,751,793 | 2,790,501 |
| Non Interest-Bearing Demand Deposits | 393,710 | 364,075 | 351,970 | 329,152 | 333,932 |
| Savings Deposits | 316,261 | 319,438 | 321,699 | 313,025 | 309,154 |
| Interest-Bearing Transaction Accounts | 1,118,540 | 1,082,769 | 1,051,107 | 1,075,203 | 1,046,062 |
| Time Deposits | 425,951 | 452,129 | 477,542 | 471,699 | 498,987 |
| Total Deposits | 2,254,462 | 2,218,411 | 2,202,318 | 2,189,079 | 2,188,135 |
| Short-Term Borrowings | 75,020 | 62,015 | 58,050 | 55,807 | 56,507 |
| Other Borrowings | 197,316 | 220,371 | 223,269 | 223,279 | 261,563 |
| Total Interest-Bearing Liabilities | 2,133,088 | 2,136,722 | 2,131,667 | 2,139,013 | 2,172,272 |
| Stockholders' Equity | 262,270 | 268,295 | 275,277 | 271,309 | 269,358 |
| Common Stockholders' Equity | 224,849 | 223,941 | 219,028 | 215,228 | 213,422 |
| |
| Lakeland Bancorp, Inc. |
| Financial Highlights |
| (unaudited) |
| | For the quarter ended |
| (dollars in thousands) | Dec. 31,
2010 | Sept. 30,
2010 | June 30,
2010 | Mar. 31,
2010 | Dec. 31,
2009 |
| | (unaudited) |
| AVERAGE ANNUALIZED YIELDS (taxable equivalent basis) | | | | |
| Assets: | | | | | |
| Loans and leases | 5.49% | 5.55% | 5.63% | 5.70% | 5.79% |
| Taxable investment securities | 2.35% | 2.80% | 2.86% | 2.94% | 3.18% |
| Tax-exempt securities | 4.67% | 4.81% | 5.03% | 5.12% | 5.12% |
| Federal funds sold and interest-bearing cash accounts | 0.14% | 0.26% | 0.23% | 0.23% | 0.23% |
| Total interest-earning assets | 4.81% | 4.93% | 5.01% | 5.14% | 5.22% |
| Liabilities: | | | | | |
| Savings accounts | 0.17% | 0.18% | 0.19% | 0.24% | 0.33% |
| Interest-bearing transaction accounts | 0.63% | 0.68% | 0.76% | 0.89% | 0.97% |
| Time deposits | 1.33% | 1.40% | 1.45% | 1.57% | 2.02% |
| Borrowings | 3.48% | 3.88% | 3.98% | 4.00% | 4.05% |
| Total interest-bearing liabilities | 1.07% | 1.18% | 1.25% | 1.36% | 1.57% |
| Net interest spread (taxable equivalent basis) | 3.74% | 3.74% | 3.76% | 3.78% | 3.65% |
| Annualized Net Interest Margin (taxable equivalent basis) | 3.93% | 3.93% | 3.96% | 3.99% | 3.90% |
| Annualized Cost of Deposits | 0.59% | 0.64% | 0.70% | 0.82% | 0.97% |
| | | | | | |
| ASSET QUALITY DATA | | | | | |
| Allowance for Loan Losses | | | | | |
| Balance at beginning of period | $ 27,218 | $ 27,728 | $ 26,836 | $ 25,563 | $ 24,149 |
| Provision for loan losses | 4,544 | 4,857 | 5,001 | 4,879 | 6,438 |
| Net Charge-offs | (4,431) | (5,367) | (4,109) | (3,606) | (5,024) |
| Balance at end of period | $ 27,331 | $ 27,218 | $ 27,728 | $ 26,836 | $ 25,563 |
| | | | | | |
| Net Loan Charge-offs (Recoveries) | | | | | |
| Commercial real estate | $ 1,991 | $ 2,937 | $ 1,963 | $ 2,241 | $ 1,778 |
| Commercial and industrial | 972 | 1,077 | 989 | 198 | 527 |
| Leases | 963 | 462 | 828 | 664 | 1,902 |
| Home equity and consumer | 298 | 784 | 254 | 504 | 573 |
| Real estate - mortgage | 207 | 107 | 75 | (1) | 244 |
| Net charge-offs | $ 4,431 | $ 5,367 | $ 4,109 | $ 3,606 | $ 5,024 |
| | | | | | |
| Nonperforming Assets | | | | | |
| Commercial real estate | $ 19,226 | $ 20,766 | $ 20,053 | $ 23,150 | $ 25,798 |
| Commercial and industrial | 1,702 | 2,641 | 3,701 | 3,984 | 2,047 |
| Leases | 6,277 | 5,453 | 6,274 | 7,582 | 3,511 |
| Home equity and consumer | 2,930 | 2,653 | 2,436 | 2,436 | 1,890 |
| Real estate - mortgage | 12,834 | 11,960 | 8,576 | 7,043 | 5,465 |
| Total non-accruing loans | 42,969 | 43,473 | 41,040 | 44,195 | 38,711 |
| Property acquired through foreclosure or repossession | 1,592 | 1,745 | 1,277 | 1,480 | 1,864 |
| Total non-performing assets | $ 44,561 | $ 45,218 | $ 42,317 | $ 45,675 | $ 40,575 |
| | | | | | |
| Loans past due 90 days or more | $ 1,218 | $ 263 | $ 578 | $ 383 | $ 1,437 |
| Loans restructured and still accruing | $ 8,905 | $ 6,326 | $ 8,561 | $ 7,943 | $ 3,432 |
| | | | | | |
| Ratio of allowance for loan and lease losses to total loans * | 1.36% | 1.37% | 1.39% | 1.34% | 1.27% |
| Non-performing loans to total loans * | 2.14% | 2.19% | 2.06% | 2.20% | 1.92% |
| Non-performing assets to total assets * | 1.60% | 1.63% | 1.55% | 1.65% | 1.49% |
| Annualized net charge-offs to average loans * | 0.89% | 1.09% | 0.82% | 0.72% | 1.00% |
| | | | | | |
| * Includes leases held for sale | | | | | |
| Lakeland Bancorp, Inc. |
| Supplemental Information - Non-GAAP Financial Measures |
| (unaudited) |
| | | | | | |
| | At or for the quarter ended, |
| (dollars in thousands, except per share amounts) | Dec. 31,
2010 | Sept. 30,
2010 | June 30,
2010 | Mar. 31,
2010 | Dec. 31,
2009 |
| Calculation of tangible book value per common share | | | | | |
| Total common stockholders' equity at end of period - GAAP | $ 223,235 | $ 223,360 | $ 221,512 | $ 216,501 | $ 211,963 |
| Less: | | | | | |
| Goodwill | 87,111 | 87,111 | 87,111 | 87,111 | 87,111 |
| Other identifiable intangible assets, net | 578 | 843 | 1,109 | 1,374 | 1,640 |
| Total tangible common stockholders' equity at end of period - Non- GAAP | $ 135,546 | $ 135,406 | $ 133,292 | $ 128,016 | $ 123,212 |
| | | | | | |
| Shares outstanding at end of period (1) | 25,322 | 25,264 | 25,229 | 25,199 | 25,066 |
| | | | | | |
| Book value per share - GAAP (1) | $ 8.82 | $ 8.84 | $ 8.78 | $ 8.59 | $ 8.46 |
| | | | | | |
| Tangible book value per share - Non-GAAP (1) | $ 5.35 | $ 5.36 | $ 5.28 | $ 5.08 | $ 4.92 |
| | | | | | |
| | | | | | |
| Calculation of tangible common equity to tangible assets | | | | | |
| Total tangible common stockholders' equity at end of period - Non- GAAP | $ 135,546 | $ 135,406 | $ 133,292 | $ 128,016 | $ 123,212 |
| | | | | | |
| Total assets at end of period | $ 2,792,674 | $ 2,769,471 | $ 2,738,557 | $ 2,767,976 | $ 2,723,968 |
| Less: | | | | | |
| Goodwill | 87,111 | 87,111 | 87,111 | 87,111 | 87,111 |
| Other identifiable intangible assets, net | 578 | 843 | 1,109 | 1,374 | 1,640 |
| Total tangible assets at end of period - Non-GAAP | $ 2,704,985 | $ 2,681,517 | $ 2,650,337 | $ 2,679,491 | $ 2,635,217 |
| | | | | | |
| Common equity to assets - GAAP | 7.99% | 8.07% | 8.09% | 7.82% | 7.78% |
| | | | | | |
| Tangible common equity to tangible assets - Non-GAAP | 5.01% | 5.05% | 5.03% | 4.78% | 4.68% |
| | | | | | |
| Calculation of return on average tangible common equity | | | | | ` |
| Net income - GAAP | $ 5,020 | $ 4,872 | $ 4,753 | $ 4,566 | $ 2,140 |
| | | | | | |
| Total average common stockholders' equity | 224,849 | 223,941 | 219,028 | $ 215,228 | $ 213,422 |
| Less: | | | | | |
| Average goodwill | 87,111 | 87,111 | 87,111 | 87,111 | 87,111 |
| Average other identifiable intangible assets, net | 724 | 990 | 1,255 | 1,521 | 1,785 |
| Total average tangible common stockholders' equity - Non GAAP | $ 137,014 | $ 135,840 | $ 130,662 | $ 126,596 | $ 124,526 |
| | | | | | |
| Return on average common stockholders' equity - GAAP | 8.86% | 8.63% | 8.70% | 8.60% | 3.98% |
| | | | | | |
| Return on average tangible common stockholders' equity - Non-GAAP | 14.54% | 14.23% | 14.59% | 14.63% | 6.82% |
| | | | | | |
| Calculation of efficiency ratio | | | | | |
| Total non-interest expense | $ 17,567 | $ 18,951 | $ 17,107 | $ 16,780 | $ 20,313 |
| Less: | | | | | |
| Amortization of core deposit intangibles | (266) | (265) | (266) | (265) | (266) |
| Other real estate owned and other repossessed asset expense | (129) | (119) | (198) | (37) | (85) |
| Long-term debt prepayment fee | -- | (1,835) | -- | -- | (3,075) |
| Non-interest expense, as adjusted | $ 17,172 | $ 16,732 | $ 16,643 | $ 16,478 | $ 16,887 |
| | | | | | |
| Net interest income | $ 25,248 | $ 24,990 | $ 24,929 | $ 24,587 | $ 24,982 |
| Noninterest income | 4,517 | 6,089 | 4,553 | 4,109 | 6,920 |
| Total revenue | 29,765 | 31,079 | 29,482 | 28,696 | 31,902 |
| Plus: Tax-equivalent adjustment on municipal securities | 268 | 267 | 268 | 280 | 283 |
| Less: (gains) losses on investment securities | 68 | (1,681) | -- | (1) | (2,552) |
| Total revenue, as adjusted | $ 30,101 | $ 29,665 | $ 29,750 | $ 28,975 | $ 29,633 |
| | | | | | |
| Efficiency ratio - Non-GAAP | 57.05% | 56.40% | 55.94% | 56.87% | 56.99% |
| | | | | | |
| (1) Adjusted for 5% stock dividend payable on February 16, 2011 to shareholders of record January 31, 2011. | | | | |
| Lakeland Bancorp, Inc. |
| Supplemental Information - Non-GAAP Financial Measures |
| (unaudited) |
| | | |
| | For the Year Ended, |
| (dollars in thousands, except per share amounts) | December 31,
2010 | December 31,
2009 |
| Calculation of return on average tangible common equity | | |
| Net income (loss) - GAAP | $19,211 | ($5,396) |
| | | |
| Total average common stockholders' equity | $ 220,796 | $ 217,062 |
| Less: | | |
| Average goodwill | 87,111 | 87,111 |
| Average other identifiable intangible assets, net | 1,120 | 2,182 |
| Total average tangible common stockholders' equity - Non GAAP | $ 132,565 | $ 127,769 |
| | | |
| Return on average common stockholders' equity - GAAP | 8.70% | -2.49% |
| | | |
| Return on average tangible common stockholders' equity - Non-GAAP | 14.49% | -4.22% |
| | | |
| Calculation of efficiency ratio | | |
| Total non-interest expense | $ 70,405 | $ 73,794 |
| Less: | | |
| Amortization of core deposit intangibles | (1,062) | (1,062) |
| Other real estate owned and other repossessed asset expense | (483) | (1,002) |
| Long-term debt prepayment fee | (1,835) | (3,075) |
| Non-interest expense, as adjusted | $ 67,025 | $ 68,655 |
| | | |
| Net interest income | $ 99,754 | $ 93,379 |
| Noninterest income | 19,268 | 18,857 |
| Total revenue | 119,022 | 112,236 |
| Plus: Tax-equivalent adjustment on municipal securities | 1,082 | 1,206 |
| Less: gains on investment securities | (1,614) | (2,905) |
| Total revenue, as adjusted | $ 118,490 | $ 110,537 |
| | | |
| Efficiency ratio - Non - GAAP | 56.57% | 62.11% |
CONTACT: Thomas J. Shara
President & CEO
Joseph F. Hurley
EVP & CFO
973-697-2000