EXHIBIT 99.1
OAK RIDGE, N.J., Jan. 25, 2012 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (Nasdaq:LBAI) reported the following results:
Thomas J. Shara, Lakeland Bancorp's President and CEO, said, "In spite of a challenging economy, we are pleased to report a strong increase in earnings in the fourth quarter and full year of 2011. Loan growth was strong in the most recent quarter and demand deposits increased 6% for the fourth quarter, and 17% for the year. Asset quality also improved significantly in the fourth quarter as evidenced by the resolution of several non-performing loans. Additionally, non-interest expenses, which decreased in 2011, were well controlled this year."
Earnings
Net Interest Income
Net interest income for the fourth quarter of 2011 was $24.1 million, as compared to $25.2 million for the same period in 2010. Net Interest Margin for the fourth quarter of 2011 was 3.73% compared to 3.93% reported in the fourth quarter of 2010, which reflected a greater reduction in yields on interest-earning assets as compared to interest-bearing liabilities. The yield on interest-earning assets declined 35 basis points to 4.46% in the fourth quarter of 2011 compared to 4.81% for the same period last year. The cost of interest-bearing liabilities decreased 17 basis points from 1.07% in the fourth quarter of 2010 to 0.90% in the fourth quarter of 2011.
For 2011, net interest income totaled $97.4 million compared to $99.8 million reported for the year ended 2010. Net Interest Margin for 2011 at 3.85% compared to 3.95% for 2010. The Company's yield on earning assets decreased 34 basis points from 4.97% for the year ended December 31, 2010, to 4.63% for 2011. The Company's cost of interest bearing liabilities decreased 25 basis points from 1.21% for 2010 to 0.96% in 2011.
Noninterest Income
Noninterest income, exclusive of gains on sales of investment securities, totaled $4.1 million for the fourth quarter of 2011, as compared to $4.6 million for the fourth quarter of 2010. Service charges on deposit accounts totaling $2.6 million were equivalent to 2010's total. Gains on leasing related assets at $164,000 decreased by $245,000, reflecting a smaller leasing portfolio, while other income at $59,000 was $246,000 lower than the same period in 2010. Within this category, gains on loans sold were $210,000 lower in the fourth quarter of 2011 than the total reported for the fourth quarter of 2010.
Noninterest income, exclusive of gains on sales of investment securities, totaled $16.9 million for the year ended December 31, 2011 compared to $17.7 million for 2010. Gains on investment securities totaled $1.2 million for 2011 as compared to $1.6 million in 2010. Service charges on deposit accounts at $10.3 million were equivalent to last year's total. Gains on leasing related assets at $974,000 decreased by $606,000 in 2011, while other income at $526,000 was $221,000 lower in 2011 compared to 2010.
Noninterest Expense
Noninterest expense for the fourth quarter of 2011 was $16.4 million, as compared to $17.6 million for the fourth quarter of 2010, a decrease of $1.2 million, or 7%. Marketing expense decreased $424,000, or 43%, as certain costs incurred for the Company's new brand identity project were expensed in the fourth quarter of 2010. Additionally, FDIC insurance expense decreased by $318,000, or 34%, primarily as a result of changes made by the FDIC in the method of calculating assessment rates.
Noninterest expense for the full year ended December 31, 2011 was $68.2 million, compared to $70.4 million for 2010. Prepayment fees on the repayment of long-term debt were $800,000 and $1.8 million, respectively, in 2011 and 2010. Excluding the prepayment fees in both years, noninterest expense in 2011 was $67.4 million, compared to $68.6 million in 2010, a decrease of $1.2 million, or 2%. Stationery and supplies expense and marketing expense were down 15% and 11%, respectively, primarily due to the aforementioned new brand identity project in 2010. FDIC insurance expense at $2.8 million decreased by $974,000, or 26%, while collection expense at $343,000 decreased by $249,000 or 42%, reflecting lower leasing related collection costs.
Financial Condition
At December 31, 2011, total assets were $2.83 billion, an increase of $33.3 million from December 31, 2010. Total loans were $2.04 billion at year-end 2011, an increase of $29.0 million, net of a $38.3 million decrease in leasing loans this year. Total deposits were $2.25 billion, an increase of $53.8 million from year-end 2010. Non-interest bearing demand deposits totaling $449.6 million increased by $65.7 million, or 17%. Core deposits at $1.89 billion at year-end 2011 increased by $107.1 million, and represented 84% of total deposits at December 31, 2011.
Asset Quality
At December 31, 2011, non-performing assets totaled $50.2 million (1.78% of total assets) compared to $57.7 million (2.11% of total assets) at September 30, 2011. The Allowance for Loan and Lease Losses totaled $28.4 million at December 31, 2011 and represented 1.39% of total loans, as compared to 1.36% at year-end 2010. In the fourth quarter of 2011, the Company had net charge-offs totaling $4.0 million and for the full year ended December 31, 2011, had net charge-offs of $17.7 million (0.89% of average loans).
Capital
At December 31, 2011, stockholders' equity was $259.8 million and book value per common share was $9.44. As of December 31, 2011, the Company's leverage ratio was 8.33%. Tier I and total risk based capital ratios were 11.23% and 13.39%, 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, provision for unfunded lending commitments, 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 northern 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, | |||
| 2011 | 2010 | 2011 | 2010 | |
| (Dollars in thousands except per share amounts) | ||||
| INCOME STATEMENT | ||||
| Net Interest Income | $ 24,057 | $ 25,248 | $ 97,413 | $ 99,754 |
| Provision for Loan and Lease Losses | (4,425) | (4,544) | (18,816) | (19,281) |
| Noninterest Income (excluding investment securities gains/losses) | 4,082 | 4,585 | 16,888 | 17,654 |
| Gains (losses) on investment securities | -- | (68) | 1,229 | 1,614 |
| Noninterest Expense | (16,353) | (17,567) | (68,151) | (70,405) |
| Pretax Income | 7,361 | 7,654 | 28,563 | 29,336 |
| Tax Expense | (2,245) | (2,634) | (8,712) | (10,125) |
| Net Income | $ 5,116 | $ 5,020 | $ 19,851 | $ 19,211 |
| Dividends on Preferred Stock and Discount Accretion | (294) | (596) | (2,167) | (3,987) |
| Net Income Available to Common Stockholders | $ 4,822 | $ 4,424 | $ 17,684 | $ 15,224 |
| Basic Earnings Per Common Share (1) | $ 0.19 | $ 0.17 | $ 0.69 | $ 0.60 |
| Diluted Earnings Per Common Share (1) | $ 0.19 | $ 0.17 | $ 0.69 | $ 0.60 |
| Dividends per Common Share (1) | $ 0.06 | $ 0.06 | $ 0.24 | $ 0.20 |
| Weighted Average Shares - Basic (1) | 25,361 | 25,166 | 25,307 | 25,097 |
| Weighted Average Shares - Diluted (1) | 25,416 | 25,307 | 25,411 | 25,128 |
| SELECTED OPERATING RATIOS | ||||
| Annualized Return on Average Assets | 0.72% | 0.71% | 0.71% | 0.69% |
| Annualized Return on Average Common Equity | 8.50% | 8.86% | 8.53% | 8.70% |
| Annualized Return on Average Tangible Common Equity (4) | 13.39% | 14.54% | 13.65% | 14.49% |
| Annualized Return on Interest Earning Assets | 4.46% | 4.81% | 4.63% | 4.97% |
| Annualized Cost of Interest Bearing Liabilities | 0.90% | 1.07% | 0.96% | 1.21% |
| Annualized Net interest spread | 3.56% | 3.74% | 3.67% | 3.76% |
| Annualized Net interest margin | 3.73% | 3.93% | 3.85% | 3.95% |
| Efficiency ratio | 57.67% | 57.21% | 56.87% | 56.40% |
| Stockholders' equity to total assets | 9.19% | 9.34% | ||
| Book value per common share (1) (2) | $ 9.44 | $ 8.82 | ||
| Tangible book value per common share (1) (2) (4) | $ 6.03 | $ 5.35 | ||
| Tangible common equity to tangible assets (2) (4) | 5.63% | 5.01% | ||
| ASSET QUALITY RATIOS | 12/31/2011 | 12/31/2010 | ||
| Ratio of allowance for loan and lease losses to total loans (3) | 1.39% | 1.36% | ||
| Non-performing loans to total loans (3) | 2.40% | 2.14% | ||
| Non-performing assets to total assets (3) | 1.78% | 1.60% | ||
| Annualized net charge-offs to average loans (3) | 0.89% | 0.88% | ||
| SELECTED BALANCE SHEET DATA AT PERIOD-END | 12/31/2011 | 12/31/2010 | ||
| Loans and Leases | $ 2,041,326 | $ 2,012,314 | ||
| Allowance for Loan and Lease Losses | (28,416) | (27,331) | ||
| Investment Securities | 543,644 | 553,680 | ||
| Total Assets | 2,825,950 | 2,792,674 | ||
| Total Deposits | 2,249,653 | 2,195,889 | ||
| Short-Term Borrowings | 72,131 | 52,123 | ||
| Other Borrowings | 232,322 | 272,322 | ||
| Stockholders' Equity | 259,783 | 260,709 | ||
| SELECTED AVERAGE BALANCE SHEET DATA | For the three months ended | For the Year Ended | ||
| 12/31/2011 | 12/31/2010 | 12/31/2011 | 12/31/2010 | |
| Loans and Leases, net | $ 2,024,559 | $ 1,995,857 | $ 1,997,652 | $ 1,995,158 |
| Investment Securities | 530,171 | 549,034 | 530,850 | 501,746 |
| Interest-Earning Assets | 2,585,062 | 2,577,464 | 2,560,441 | 2,550,082 |
| Total Assets | 2,809,452 | 2,802,024 | 2,782,829 | 2,776,969 |
| Non Interest-Bearing Demand Deposits | 452,638 | 393,710 | 422,568 | 359,915 |
| Savings Deposits | 332,258 | 316,261 | 330,646 | 317,620 |
| Interest-Bearing Transaction Accounts | 1,128,338 | 1,118,540 | 1,088,678 | 1,082,026 |
| Time Deposits | 380,443 | 425,951 | 400,442 | 456,692 |
| Total Deposits | 2,293,677 | 2,254,462 | 2,242,334 | 2,216,253 |
| Short-Term Borrowings | 54,056 | 75,020 | 59,240 | 62,774 |
| Other Borrowings | 190,826 | 197,316 | 213,504 | 215,980 |
| Total Interest-Bearing Liabilities | 2,085,921 | 2,133,088 | 2,092,510 | 2,135,092 |
| Stockholders' Equity | 257,164 | 262,270 | 254,975 | 269,260 |
| Common Stockholders' Equity | 238,713 | 224,849 | 232,711 | 220,796 |
| (1) Adjusted for 5% stock dividend payable on February 16, 2011 to shareholders of record January 31, 2011. | ||||
| (2) Excludes preferred stock | ||||
| (3) Includes leases held for sale | ||||
| (4) 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, | |||
| 2011 | 2010 | 2011 | 2010 | |
| (dollars in thousands, except per share amounts) | ||||
| INTEREST INCOME | ||||
| Loans and fees | $25,801 | $27,613 | $104,585 | $111,584 |
| Federal funds sold and interest bearing deposits with banks | 12 | 11 | 51 | 121 |
| Taxable investment securities | 2,434 | 2,835 | 10,882 | 11,934 |
| Tax exempt investment securities | 500 | 498 | 2,006 | 2,010 |
| TOTAL INTEREST INCOME | 28,747 | 30,957 | 117,524 | 125,649 |
| INTEREST EXPENSE | ||||
| Deposits | 2,568 | 3,338 | 10,878 | 15,195 |
| Federal funds purchased and securities sold under agreements to repurchase | 15 | 32 | 88 | 127 |
| Other borrowings | 2,107 | 2,339 | 9,145 | 10,573 |
| TOTAL INTEREST EXPENSE | 4,690 | 5,709 | 20,111 | 25,895 |
| NET INTEREST INCOME | 24,057 | 25,248 | 97,413 | 99,754 |
| Provision for loan and lease losses | 4,425 | 4,544 | 18,816 | 19,281 |
| NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 19,632 | 20,704 | 78,597 | 80,473 |
| NONINTEREST INCOME | ||||
| Service charges on deposit accounts | 2,590 | 2,652 | 10,262 | 10,278 |
| Commissions and fees | 916 | 850 | 3,703 | 3,533 |
| Gains (losses) on sales of investment securities | -- | (68) | 1,229 | 1,614 |
| Income on bank owned life insurance | 353 | 369 | 1,423 | 1,516 |
| Gain on leasing related assets | 164 | 409 | 974 | 1,580 |
| Other income | 59 | 305 | 526 | 747 |
| TOTAL NONINTEREST INCOME | 4,082 | 4,517 | 18,117 | 19,268 |
| NONINTEREST EXPENSE | ||||
| Salaries and employee benefits | 9,035 | 9,114 | 36,500 | 36,086 |
| Net occupancy expense | 1,680 | 1,710 | 6,885 | 6,735 |
| Furniture and equipment | 1,165 | 1,206 | 4,726 | 4,867 |
| Stationery, supplies and postage | 338 | 464 | 1,396 | 1,636 |
| Marketing expense | 563 | 987 | 2,409 | 2,700 |
| Amortization of core deposit intangibles | -- | 266 | 577 | 1,062 |
| FDIC insurance expense | 612 | 930 | 2,790 | 3,764 |
| Collection expense | 148 | 97 | 343 | 592 |
| Legal expense | 529 | 523 | 1,692 | 1,698 |
| Expenses (income) on other real estate owned and other repossessed assets | (28) | 129 | 780 | 483 |
| Long-term debt prepayment fee | -- | -- | 800 | 1,835 |
| Other expenses | 2,311 | 2,141 | 9,253 | 8,947 |
| TOTAL NONINTEREST EXPENSE | 16,353 | 17,567 | 68,151 | 70,405 |
| INCOME BEFORE PROVISION FOR INCOME TAXES | 7,361 | 7,654 | 28,563 | 29,336 |
| Provision for income taxes | 2,245 | 2,634 | 8,712 | 10,125 |
| NET INCOME | $5,116 | $5,020 | $19,851 | $19,211 |
| Dividends on Preferred Stock and Discount Accretion | 294 | 596 | 2,167 | 3,987 |
| Net Income Available to Common Stockholders | $4,822 | $4,424 | $17,684 | $15,224 |
| EARNINGS PER COMMON SHARE | ||||
| Basic | $0.19 | $0.17 | $0.69 | $0.60 |
| Diluted | $0.19 | $0.17 | $0.69 | $0.60 |
| DIVIDENDS PER COMMON SHARE | $0.06 | $0.06 | $0.24 | $0.20 |
| Lakeland Bancorp, Inc. and Subsidiaries | ||
| CONSOLIDATED BALANCE SHEETS | ||
| December 31, | December 31, | |
| ASSETS | 2011 | 2010 |
| (dollars in thousands) | (unaudited) | |
| Cash and due from banks | $60,688 | $26,063 |
| Federal funds sold and interest-bearing deposits due from banks | 11,870 | 23,215 |
| Total cash and cash equivalents | 72,558 | 49,278 |
| Investment securities available for sale | 471,944 | 487,107 |
| Investment securities held to maturity; fair value of $74,274 in 2011 and $68,815 in 2010 | 71,700 | 66,573 |
| Loans: | ||
| Commercial, secured by real estate | 1,092,120 | 1,041,015 |
| Commercial, industrial and other | 209,915 | 194,259 |
| Leases | 28,879 | 65,640 |
| Residential mortgages | 406,222 | 403,561 |
| Consumer and home equity | 304,190 | 306,322 |
| Leases held for sale, at fair value | -- | 1,517 |
| Total loans | 2,041,326 | 2,012,314 |
| Deferred cost | 249 | 2,303 |
| Allowance for loan and lease losses | (28,416) | (27,331) |
| Net loans | 2,013,159 | 1,987,286 |
| Premises and equipment, net | 27,917 | 27,554 |
| Accrued interest receivable | 8,369 | 8,849 |
| Goodwill | 87,111 | 87,111 |
| Other identifiable intangible assets, net | -- | 578 |
| Bank owned life insurance | 44,760 | 43,284 |
| Other assets | 28,432 | 35,054 |
| TOTAL ASSETS | $2,825,950 | $2,792,674 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| LIABILITIES: | ||
| Deposits: | ||
| Noninterest bearing | $449,560 | $383,877 |
| Savings and interest-bearing transaction accounts | 1,440,541 | 1,399,163 |
| Time deposits under $100,000 | 211,797 | 241,911 |
| Time deposits $100,000 and over | 147,755 | 170,938 |
| Total deposits | 2,249,653 | 2,195,889 |
| Federal funds purchased and securities sold under agreements to repurchase | 72,131 | 52,123 |
| Other borrowings | 155,000 | 195,000 |
| Subordinated debentures | 77,322 | 77,322 |
| Other liabilities | 12,061 | 11,631 |
| TOTAL LIABILITIES | 2,566,167 | 2,531,965 |
| STOCKHOLDERS' EQUITY | ||
| Preferred stock, Series A, no par value, $1,000 liquidation value, authorized | ||
| 1,000,000 shares; issued 19,000 shares at December 31, 2011 and | ||
| 39,000 shares at December 31, 2010 | 18,480 | 37,474 |
| Common stock, no par value; authorized 40,000,000 shares; | ||
| issued 25,976,648 shares at December 31, 2011 and 25,977,592 | ||
| shares at December 31, 2010 | 270,044 | 271,595 |
| Accumulated Deficit | (26,061) | (38,004) |
| Treasury shares, at cost, 418,419 shares at December 31, 2011 and | ||
| 655,768 shares at December 31, 2010 | (5,551) | (8,683) |
| Accumulated other comprehensive gain (loss) | 2,871 | (1,673) |
| TOTAL STOCKHOLDERS' EQUITY | 259,783 | 260,709 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $2,825,950 | $2,792,674 |
| Lakeland Bancorp, Inc. | |||||
| Financial Highlights | |||||
| (unaudited) | |||||
| For the quarter ended | |||||
| Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | |
| (dollars in thousands, except per share data) | 2011 | 2011 | 2011 | 2011 | 2010 |
| INCOME STATEMENT | (unaudited) | ||||
| Net Interest Income | $ 24,057 | $ 24,351 | $ 24,421 | $ 24,584 | $ 25,248 |
| Provision for Loan and Lease Losses | (4,425) | (4,058) | (5,406) | (4,927) | (4,544) |
| Noninterest Income (excluding investment securities gains) | 4,082 | 4,310 | 4,266 | 4,230 | 4,585 |
| Gains (losses) on investment securities | -- | 785 | 444 | -- | (68) |
| Long-term debt prepayment fee | -- | (800) | -- | -- | -- |
| Noninterest Expense, excluding long-term debt prepayment fee | (16,353) | (17,240) | (16,732) | (17,026) | (17,567) |
| Pretax Income | 7,361 | 7,348 | 6,993 | 6,861 | 7,654 |
| Tax Expense | (2,245) | (2,242) | (2,135) | (2,090) | (2,634) |
| Net Income | $ 5,116 | $ 5,106 | $ 4,858 | $ 4,771 | $ 5,020 |
| Dividends on Preferred Stock and Discount Accretion | (294) | (293) | (294) | (1,286) | (596) |
| Net Income Available to Common Stockholders | $ 4,822 | $ 4,813 | $ 4,564 | $ 3,485 | $ 4,424 |
| Basic Earnings Per Common Share (1) | $ 0.19 | $ 0.19 | $ 0.18 | $ 0.14 | $ 0.17 |
| Diluted Earnings Per Common Share (1) | $ 0.19 | $ 0.19 | $ 0.18 | $ 0.14 | $ 0.17 |
| Dividends per Common Share (1) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 |
| Weighted Average Shares - Basic (1) | 25,361 | 25,322 | 25,290 | 25,249 | 25,166 |
| Weighted Average Shares - Diluted (1) | 25,416 | 25,370 | 25,480 | 25,382 | 25,307 |
| SELECTED OPERATING RATIOS | |||||
| Annualized Return on Average Assets | 0.72% | 0.73% | 0.71% | 0.69% | 0.71% |
| Annualized Return on Average Common Equity | 8.50% | 8.59% | 8.47% | 8.56% | 8.86% |
| Annualized Return on Tangible Common Equity (3) | 13.39% | 13.63% | 13.64% | 13.97% | 14.54% |
| Annualized Net Interest Margin | 3.73% | 3.85% | 3.90% | 3.91% | 3.93% |
| Efficiency ratio (3) | 57.67% | 57.01% | 56.11% | 56.71% | 57.21% |
| Stockholders' equity to total assets | 9.19% | 9.30% | 9.14% | 8.91% | 9.34% |
| Common stockholders' equity to total assets | 8.54% | 8.62% | 8.47% | 8.24% | 7.99% |
| Tangible common equity to tangible assets (3) | 5.63% | 5.63% | 5.46% | 5.23% | 5.01% |
| Tier 1 risk-based ratio | 11.23% | 11.21% | 10.95% | 10.72% | 12.43% |
| Total risk-based ratio | 13.39% | 13.46% | 13.26% | 13.10% | 13.68% |
| Tier 1 leverage ratio | 8.33% | 8.29% | 8.09% | 7.79% | 9.21% |
| Book value per common share (1) (2) | $ 9.44 | $ 9.26 | $ 9.11 | $ 8.90 | $ 8.82 |
| Tangible book value per common share (1) (2) (3) | $ 6.03 | $ 5.85 | $ 5.69 | $ 5.47 | $ 5.35 |
| (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 | |||||
| Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | |
| (dollars in thousands) | 2011 | 2011 | 2011 | 2011 | 2010 |
| (unaudited) | |||||
| SELECTED BALANCE SHEET DATA AT PERIOD-END | |||||
| Loans and Leases | $ 2,041,326 | $ 1,991,874 | $ 1,983,675 | $ 1,975,483 | $ 2,012,314 |
| Allowance for Loan and Lease Losses | (28,416) | (28,024) | (28,252) | (28,192) | (27,331) |
| Investment Securities | 543,644 | 515,019 | 515,042 | 540,041 | 553,680 |
| Total Assets | 2,825,950 | 2,741,768 | 2,741,335 | 2,751,576 | 2,792,674 |
| Total Deposits | 2,249,653 | 2,232,565 | 2,182,383 | 2,238,512 | 2,195,889 |
| Short-Term Borrowings | 72,131 | 53,175 | 90,251 | 46,382 | 52,123 |
| Other Borrowings | 232,323 | 187,322 | 207,322 | 207,322 | 272,322 |
| Stockholders' Equity | 259,783 | 254,898 | 250,568 | 245,071 | 260,709 |
| Loans and Leases | |||||
| Commercial real estate | $ 1,092,120 | $ 1,064,009 | $ 1,050,458 | $ 1,038,850 | $ 1,041,015 |
| Commercial, industrial and other | 209,915 | 195,121 | 197,770 | 194,616 | 194,259 |
| Leases | 28,879 | 36,178 | 38,895 | 46,050 | 65,640 |
| Leases held for sale | -- | -- | -- | -- | 1,517 |
| Residential mortgages | 406,222 | 392,454 | 393,062 | 393,935 | 403,561 |
| Consumer and Home Equity | 304,190 | 304,112 | 303,490 | 302,032 | 306,322 |
| Total loans | $ 2,041,326 | $ 1,991,874 | $ 1,983,675 | $ 1,975,483 | $ 2,012,314 |
| Deposits | |||||
| Noninterest bearing | $ 449,560 | $ 424,789 | $ 409,795 | $ 407,099 | $ 383,877 |
| Savings and interest-bearing transaction accounts | 1,440,541 | 1,411,058 | 1,370,190 | 1,414,604 | 1,399,163 |
| Time deposits under $100,000 | 211,797 | 222,337 | 230,510 | 240,614 | 241,911 |
| Time deposits $100,000 and over | 147,755 | 174,381 | 171,888 | 176,195 | 170,938 |
| Total deposits | $ 2,249,653 | $ 2,232,565 | $ 2,182,383 | $ 2,238,512 | $ 2,195,889 |
| SELECTED AVERAGE BALANCE SHEET DATA | |||||
| Loans and Leases, net | $ 2,024,559 | $ 1,982,637 | $ 1,983,253 | $ 2,000,057 | $ 1,995,857 |
| Investment Securities | 530,171 | 518,194 | 531,045 | 544,282 | 549,034 |
| Interest-Earning Assets | 2,585,062 | 2,537,284 | 2,542,351 | 2,577,235 | 2,577,464 |
| Total Assets | 2,809,452 | 2,762,305 | 2,762,024 | 2,797,539 | 2,802,024 |
| Non Interest-Bearing Demand Deposits | 452,638 | 424,938 | 411,212 | 400,891 | 393,710 |
| Savings Deposits | 332,258 | 334,909 | 333,036 | 322,225 | 316,261 |
| Interest-Bearing Transaction Accounts | 1,128,338 | 1,058,085 | 1,074,620 | 1,093,625 | 1,118,540 |
| Time Deposits | 380,443 | 397,029 | 411,216 | 413,481 | 425,951 |
| Total Deposits | 2,293,677 | 2,214,961 | 2,230,084 | 2,230,222 | 2,254,462 |
| Short-Term Borrowings | 54,056 | 58,983 | 64,015 | 59,972 | 75,020 |
| Other Borrowings | 190,826 | 222,086 | 207,353 | 234,134 | 197,316 |
| Total Interest-Bearing Liabilities | 2,085,921 | 2,071,092 | 2,090,239 | 2,123,437 | 2,133,088 |
| Stockholders' Equity | 257,164 | 254,174 | 248,455 | 260,148 | 262,270 |
| Common Stockholders' Equity | 238,713 | 235,785 | 230,123 | 226,051 | 224,849 |
| Lakeland Bancorp, Inc. | |||||||||
| Financial Highlights | |||||||||
| (unaudited) | |||||||||
| For the quarter ended | |||||||||
| Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | |||||
| (dollars in thousands) | 2011 | 2011 | 2011 | 2011 | 2010 | ||||
| (unaudited) | |||||||||
| AVERAGE ANNUALIZED YIELDS (taxable equivalent basis) | |||||||||
| Assets: | |||||||||
| Loans and leases | 5.06% | 5.20% | 5.28% | 5.41% | 5.49% | ||||
| Taxable investment securities | 2.12% | 2.48% | 2.58% | 2.28% | 2.35% | ||||
| Tax-exempt securities | 4.28% | 4.33% | 4.38% | 4.54% | 4.67% | ||||
| Federal funds sold and interest-bearing cash accounts | 0.16% | 0.18% | 0.16% | 0.15% | 0.14% | ||||
| Total interest-earning assets | 4.46% | 4.63% | 4.71% | 4.74% | 4.81% | ||||
| Liabilities: | |||||||||
| Savings accounts | 0.11% | 0.12% | 0.16% | 0.16% | 0.17% | ||||
| Interest-bearing transaction accounts | 0.51% | 0.50% | 0.55% | 0.56% | 0.63% | ||||
| Time deposits | 1.07% | 1.13% | 1.18% | 1.26% | 1.33% | ||||
| Borrowings | 3.47% | 3.37% | 3.50% | 3.23% | 3.48% | ||||
| Total interest-bearing liabilities | 0.90% | 0.95% | 0.99% | 1.00% | 1.07% | ||||
| Net interest spread (taxable equivalent basis) | 3.56% | 3.68% | 3.72% | 3.73% | 3.74% | ||||
| Annualized Net Interest Margin (taxable equivalent basis) | 3.73% | 3.85% | 3.90% | 3.91% | 3.93% | ||||
| Annualized Cost of Deposits | 0.44% | 0.46% | 0.50% | 0.53% | 0.59% | ||||
| ASSET QUALITY DATA | |||||||||
| Allowance for Loan Losses | |||||||||
| Balance at beginning of period | $ 28,024 | $ 28,252 | $ 28,192 | $ 27,331 | $ 27,218 | ||||
| Provision for loan losses | 4,425 | 4,058 | 5,406 | 4,927 | 4,544 | ||||
| Net Charge-offs | (4,033) | (4,286) | (5,346) | (4,066) | (4,431) | ||||
| Balance at end of period | $ 28,416 | $ 28,024 | $ 28,252 | $ 28,192 | $ 27,331 | ||||
| Net Loan Charge-offs (Recoveries) | |||||||||
| Commercial real estate | $ 1,367 | $ 1,420 | $ 2,047 | $ 2,003 | $ 1,991 | ||||
| Commercial, industrial and other | (201) | 1,929 | 2,484 | 598 | 972 | ||||
| Leases | 358 | 353 | 354 | 587 | 963 | ||||
| Home equity and consumer | 1,355 | 422 | 329 | 586 | 298 | ||||
| Real estate - mortgage | 1,154 | 162 | 132 | 292 | 207 | ||||
| Net charge-offs | $ 4,033 | $ 4,286 | $ 5,346 | $ 4,066 | $ 4,431 | ||||
| Nonperforming Assets | |||||||||
| Commercial real estate | $ 28,971 | $ 30,970 | $ 27,596 | $ 26,202 | $ 19,226 | ||||
| Commercial, industrial and other | 4,608 | 4,416 | 6,312 | 920 | 1,702 | ||||
| Leases | 575 | 4,670 | 4,971 | 5,299 | 6,277 | ||||
| Home equity and consumer | 3,252 | 3,840 | 3,456 | 3,259 | 2,930 | ||||
| Real estate - mortgage | 11,610 | 12,503 | 12,710 | 13,023 | 12,834 | ||||
| Total non-accruing loans | 49,016 | 56,399 | 55,045 | 48,703 | 42,969 | ||||
| Property acquired through foreclosure or repossession | 1,182 | 1,342 | 1,439 | 1,729 | 1,592 | ||||
| Total non-performing assets | $ 50,198 | $ 57,741 | $ 56,484 | $ 50,432 | $ 44,561 | ||||
| Loans past due 90 days or more | $ 1,367 | $ 1,304 | $ 2,793 | $ 1,902 | $ 1,218 | ||||
| Loans restructured and still accruing | $ 8,856 | $ 6,075 | $ 7,476 | $ 8,356 | $ 9,073 | ||||
| Ratio of allowance for loan and lease losses to total loans * | 1.39% | 1.41% | 1.42% | 1.43% | 1.36% | ||||
| Non-performing loans to total loans * | 2.40% | 2.83% | 2.77% | 2.47% | 2.14% | ||||
| Non-performing assets to total assets * | 1.78% | 2.11% | 2.06% | 1.83% | 1.60% | ||||
| Annualized net charge-offs to average loans * | 0.80% | 0.86% | 1.08% | 0.81% | 0.89% | ||||
| * Includes leases held for sale | |||||||||
| Lakeland Bancorp, Inc. | |||||
| Supplemental Information - Non-GAAP Financial Measures | |||||
| (unaudited) | |||||
| At or for the quarter ended, | |||||
| Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | |
| (dollars in thousands, except per share amounts) | 2011 | 2011 | 2011 | 2011 | 2010 |
| Calculation of tangible book value per common share | |||||
| Total common stockholders' equity at end of period - GAAP | $ 241,303 | $ 236,474 | $ 232,201 | $ 226,760 | $ 223,235 |
| Less: | |||||
| Goodwill | 87,111 | 87,111 | 87,111 | 87,111 | 87,111 |
| Other identifiable intangible assets, net | -- | -- | 47 | 312 | 578 |
| Total tangible common stockholders' equity at end of period - Non- GAAP | $ 154,192 | $ 149,363 | $ 145,043 | $ 139,337 | $ 135,546 |
| Shares outstanding at end of period (1) | 25,558 | 25,528 | 25,498 | 25,466 | 25,322 |
| Book value per share - GAAP (1) | $ 9.44 | $ 9.26 | $ 9.11 | $ 8.90 | $ 8.82 |
| Tangible book value per share - Non-GAAP (1) | $ 6.03 | $ 5.85 | $ 5.69 | $ 5.47 | $ 5.35 |
| Calculation of tangible common equity to tangible assets | |||||
| Total tangible common stockholders' equity at end of period - Non- GAAP | $ 154,192 | $ 149,363 | $ 145,043 | $ 139,337 | $ 135,546 |
| Total assets at end of period | $ 2,825,950 | $ 2,741,768 | $ 2,741,335 | $ 2,751,576 | $ 2,792,674 |
| Less: | |||||
| Goodwill | 87,111 | 87,111 | 87,111 | 87,111 | 87,111 |
| Other identifiable intangible assets, net | -- | -- | 47 | 312 | 578 |
| Total tangible assets at end of period - Non-GAAP | $ 2,738,839 | $ 2,654,657 | $ 2,654,177 | $ 2,664,153 | $ 2,704,985 |
| Common equity to assets - GAAP | 8.54% | 8.62% | 8.47% | 8.24% | 7.99% |
| Tangible common equity to tangible assets - Non-GAAP | 5.63% | 5.63% | 5.46% | 5.23% | 5.01% |
| Calculation of return on average tangible common equity | |||||
| Net income - GAAP | $ 5,116 | $ 5,106 | $ 4,858 | $ 4,771 | $ 5,020 |
| Total average common stockholders' equity | 238,713 | 235,785 | 230,123 | 226,051 | 224,849 |
| Less: | |||||
| Average goodwill | 87,111 | 87,111 | 87,111 | 87,111 | 87,111 |
| Average other identifiable intangible assets, net | -- | 15 | 194 | 460 | 724 |
| Total average tangible common stockholders' equity - Non - GAAP | $ 151,602 | $ 148,659 | $ 142,818 | $ 138,480 | $ 137,014 |
| Return on average common stockholders' equity - GAAP | 8.50% | 8.59% | 8.47% | 8.56% | 8.86% |
| Return on average tangible common stockholders' equity - Non-GAAP | 13.39% | 13.63% | 13.64% | 13.97% | 14.54% |
| Calculation of efficiency ratio | |||||
| Total non-interest expense | $ 16,353 | $ 18,040 | $ 16,732 | $ 17,026 | $ 17,567 |
| Less: | |||||
| Amortization of core deposit intangibles | -- | (46) | (266) | (265) | (266) |
| Other real estate owned and other repossessed asset (expense) income | 28 | (336) | (200) | (272) | (129) |
| Long-term debt prepayment fee | -- | (800) | -- | -- | -- |
| Provision for unfunded lending commitments, net | 3 | (365) | (17) | 4 | 50 |
| Non-interest expense, as adjusted | $ 16,384 | $ 16,493 | $ 16,249 | $ 16,493 | $ 17,222 |
| Net interest income | $ 24,057 | $ 24,351 | $ 24,421 | $ 24,584 | $ 25,248 |
| Noninterest income | 4,082 | 5,095 | 4,710 | 4,230 | 4,517 |
| Total revenue | 28,139 | 29,446 | 29,131 | 28,814 | 29,765 |
| Plus: Tax-equivalent adjustment on municipal securities | 269 | 269 | 273 | 269 | 268 |
| Less: (gains) losses on investment securities | -- | (785) | (444) | -- | 68 |
| Total revenue, as adjusted | $ 28,408 | $ 28,930 | $ 28,960 | $ 29,083 | $ 30,101 |
| Efficiency ratio - Non-GAAP | 57.67% | 57.01% | 56.11% | 56.71% | 57.21% |
| (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, | ||
| Dec 31, | Dec 31, | |
| (dollars in thousands, except per share amounts) | 2011 | 2010 |
| Calculation of return on average tangible common equity | ||
| Net income - GAAP | $ 19,851 | $ 19,211 |
| Total average common stockholders' equity | $ 232,711 | $ 220,796 |
| Less: | ||
| Average goodwill | 87,111 | 87,111 |
| Average other identifiable intangible assets, net | 166 | 1,120 |
| Total average tangible common stockholders' equity - Non GAAP | $ 145,434 | $ 132,565 |
| Return on average common stockholders' equity - GAAP | 8.53% | 8.70% |
| Return on average tangible common stockholders' equity - Non-GAAP | 13.65% | 14.49% |
| Calculation of efficiency ratio | ||
| Total non-interest expense | $ 68,151 | $ 70,405 |
| Less: | ||
| Amortization of core deposit intangibles | (577) | (1,062) |
| Other real estate owned and other repossessed asset expense | (780) | (483) |
| Long-term debt prepayment fee | (800) | (1,835) |
| Provision for unfunded lending commitments | (375) | (195) |
| Non-interest expense, as adjusted | $ 65,619 | $ 66,830 |
| Net interest income | $ 97,413 | $ 99,754 |
| Noninterest income | 18,117 | 19,268 |
| Total revenue | 115,530 | 119,022 |
| Plus: Tax-equivalent adjustment on municipal securities | 1,080 | 1,082 |
| Less: gains on investment securities | (1,229) | (1,614) |
| Total revenue, as adjusted | $ 115,381 | $ 118,490 |
| Efficiency ratio - Non - GAAP | 56.87% | 56.40% |
CONTACT: Thomas J. Shara
President & CEO
Joseph F. Hurley
EVP & CFO
973-697-2000