EXHIBIT 99.1
OAK RIDGE, N.J., Oct. 16, 2012 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (Nasdaq:LBAI) reported Net Income Available to Common Shareholders of $5.5 million or $0.20 per diluted share for the third quarter of 2012 compared to $4.8 million, or $0.18 per diluted share for the same period last year. The annualized Return on Average Assets in the third quarter of 2012 was 0.77%, while the annualized Return on Average Common Equity was 8.48%. Net Income Available to Common Shareholders for the first nine months of 2012 was $15.3 million or $0.56 per diluted share, 19% above the $12.9 million, or $0.48 per diluted share reported for the same period last year.
The Company declared a quarterly cash dividend of $0.07 per common share, an increase of $0.01 per common share from the previous quarter. The cash dividend will be paid on November 15, 2012 to holders of record as of the close of business on October 31, 2012.
Thomas J. Shara, Lakeland Bancorp's President and CEO said, "We are pleased to report strong quarterly and year-to-date financial results, as well as improved credit trends. Furthermore, we successfully completed a $25 million common stock offering and raised the cash dividend 17%."
Earnings
Net Interest Income
Net interest income for the third quarter of 2012 was $23.7 million, as compared to $24.4 million for the same period in 2011. The annualized Net Interest Margin ("NIM") for the third quarter of 2012 was 3.66%, which compared to 3.85% reported in the third quarter of 2011. The decrease in NIM in the third quarter as compared to the same period last year reflects a greater reduction in yields on interest-earning assets as compared to interest-bearing liabilities. The annualized yield on interest-earning assets declined to 4.25% in the third quarter of 2012 compared to 4.63% for the same period last year. The annualized cost of interest-bearing liabilities decreased from 0.95% in the third quarter of 2011 to 0.74% in the third quarter of 2012. Subsequent to the end of the third quarter of 2012 on October 7, 2012, the Company redeemed $25.8 million of junior subordinated debentures with a coupon rate of 7.535%. This transaction will have a positive impact on the cost of interest-bearing liabilities in the fourth quarter this year.
Year-to-date, net interest income at $71.3 million compared to the $73.4 million reported for the first nine months of 2011. Annualized NIM for the first nine months of 2012 at 3.70% compared to 3.89% for the same period last year. The Company's annualized yield on earning assets decreased from 4.69% for the first nine months of 2011, to 4.34% for the same period this year. The Company's cost of interest bearing liabilities decreased from 0.98% for the first nine months of 2011 to 0.79% for the same period this year.
Noninterest Income
Noninterest income, exclusive of gains on sales of investment securities, totaled $4.6 million for the third quarter of 2012, as compared to $4.3 million for the same period last year, an increase of 8%. In the third quarter of 2011, the Company recorded $785,000 on gains on sales of investment securities, as compared to no gains for the same period this year. Service charges on deposit accounts totaling $2.8 million increased by 5% primarily due to the implementation of a new demand deposit pricing structure in the second quarter of 2012. Commissions and fees at $1.2 million increased by $247,000, or 27%, primarily due to increased loan fees.
Noninterest income, exclusive of gains on sales of investment securities, totaled $13.2 million for the first nine months of 2012, which was $389,000 higher than last year's nine month total. Gains on investment securities totaled $273,000 in 2012 as compared to $1.2 million in 2011. Service charges on deposit accounts at $7.9 million were up 3%, while commissions and fees at $3.4 million increased by 22%, primarily due to increased loan fees and investment commission income. Gains on leasing related assets at $403,000 decreased by $407,000 in 2012, reflecting the reduction in the size of the leasing portfolio.
Noninterest Expense
Noninterest expense for the third quarter of 2012 was $17.0 million, as compared to $18.0 million for the same period last year. Included in the third quarter 2011 total was an $800,000 prepayment fee on long-term debt. Salary and benefit expense at $9.6 million increased by 3%. Legal expense at $135,000 was $322,000 lower than the third quarter of 2011 partially due to a $150,000 recovery in the third quarter of 2012 of previously expensed legal fees. Net occupancy expense at $1.8 million increased by 7%, primarily due to expenses incurred relating to the new operations and training center that was opened in the second quarter of 2012. Expenses on other real estate owned and other repossessed assets declined $323,000 as compared to the same period last year.
For the first nine months of 2012, noninterest expense was $49.7 million, compared to $51.8 million in 2011. Salary and benefit costs at $28.6 million increased 4%, while occupancy, furniture and equipment expenses at $8.6 million decreased by 2%. FDIC insurance expense at $1.6 million decreased by $558,000, or 26%, resulting from a change in FDIC assessment rate methodology. Core deposit intangibles were fully amortized in 2011, which resulted in a $577,000 reduction in expenses in 2012, while expenses on other real estate owned and other repossessed assets declined by $719,000 compared to the first nine months of 2011.
Financial Condition
At September 30, 2012, total assets were $2.86 billion, an increase of $33.7 million from December 31, 2011. Total loans were $2.06 billion, an increase of $23.6 million from $2.04 billion at year-end 2011, primarily due to increases in commercial real estate loans and residential mortgage loans of $15.8 million and $13.5 million, respectively. Total deposits were $2.34 billion, an increase of $91.5 million from December 31, 2011. Noninterest bearing demand deposits at $485.3 million have increased by $35.7 million or 8% from year-end 2011. Savings and interest-bearing transaction accounts at $1.54 billion have increased by $94.9 million, primarily in the public funds sector, while time deposits at $320.4 million, have decreased by $39.1 million.
Asset Quality
At September 30, 2012, non-performing assets totaled $29.2 million (1.02% of total assets) compared to $35.3 million (1.24% of total assets) at June 30, 2012. The Allowance for Loan and Lease Losses totaled $28.7 million at September 30, 2012 and represented 1.39% of total loans, and 101% of non-performing loans. In the third quarter of 2012, the Company had net charge offs totaling $3.2 million, or 0.63% of average loans. For the first nine months of 2012, the Company had net charge-offs of $11.5 million, as compared to $13.7 million for the same period last year.
Capital
At September 30, 2012, stockholders' equity was $277.5 million and book value per common share was $9.35, as compared to $8.99 at year-end 2011. As of September 30, 2012, the Company's leverage ratio was 9.05%. Tier I and total risk based capital ratios were 12.24% and 14.14%, respectively. These regulatory capital ratios exceed those necessary to be considered a well-capitalized institution under Federal guidelines. As previously discussed, the Company repaid $25.8 million in subordinated debentures. The Company's pro forma capital ratios considering the payment of the subordinated debentures would have been 8.61%, 11.65% and 12.90% for the leverage ratio, the Tier I risk based capital ratio and the total risk based capital ratio, respectively.
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, 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 $2.9 billion and forty-six (46) 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 September 30, | Nine Months Ended September 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| (Dollars in thousands except per share amounts) | ||||
| INCOME STATEMENT | ||||
| Net Interest Income | $ 23,655 | $ 24,351 | $ 71,349 | $ 73,356 |
| Provision for Loan and Lease Losses | (3,350) | (4,058) | (11,783) | (14,391) |
| Noninterest Income (excluding investment securities gains/losses) | 4,640 | 4,310 | 13,195 | 12,806 |
| Gains on investment securities | -- | 785 | 273 | 1,229 |
| Noninterest Expense | (16,968) | (18,040) | (49,713) | (51,798) |
| Pretax Income | 7,977 | 7,348 | 23,321 | 21,202 |
| Tax Expense | (2,488) | (2,242) | (7,408) | (6,467) |
| Net Income | $ 5,489 | $ 5,106 | $ 15,913 | $ 14,735 |
| Dividends on Preferred Stock and Discount Accretion | -- | (293) | (620) | (1,873) |
| Net Income Available to Common Stockholders | $ 5,489 | $ 4,813 | $ 15,293 | $ 12,862 |
| Basic Earnings Per Common Share (1) | $ 0.20 | $ 0.18 | $ 0.56 | $ 0.48 |
| Diluted Earnings Per Common Share (1) | $ 0.20 | $ 0.18 | $ 0.56 | $ 0.48 |
| Dividends per Common Share (1) | $ 0.06 | $ 0.057 | $ 0.18 | $ 0.17 |
| Weighted Average Shares - Basic (1) | 27,550 | 26,588 | 26,998 | 26,552 |
| Weighted Average Shares - Diluted (1) | 27,642 | 26,639 | 27,065 | 26,681 |
| SELECTED OPERATING RATIOS | ||||
| Annualized Return on Average Assets | 0.77% | 0.73% | 0.75% | 0.71% |
| Annualized Return on Average Common Equity | 8.48% | 8.59% | 8.55% | 8.54% |
| Annualized Return on Average Tangible Common Equity (3) | 12.81% | 13.63% | 13.16% | 13.74% |
| Annualized Return on Interest Earning Assets | 4.25% | 4.63% | 4.34% | 4.69% |
| Annualized Cost of Interest Bearing Liabilities | 0.74% | 0.95% | 0.79% | 0.98% |
| Annualized Net interest spread | 3.51% | 3.68% | 3.55% | 3.71% |
| Annualized Net interest margin | 3.66% | 3.85% | 3.70% | 3.89% |
| Efficiency ratio (3) | 58.91% | 57.01% | 57.93% | 56.61% |
| Stockholders' equity to total assets | 9.71% | 9.30% | ||
| Book value per common share (1) (2) | $ 9.35 | $ 8.82 | ||
| Tangible book value per common share (1) (2) (3) | $ 6.41 | $ 5.57 | ||
| Tangible common equity to tangible assets (2) (3) | 6.87% | 5.63% | ||
| ASSET QUALITY RATIOS | 9/30/2012 | 12/31/2011 | ||
| Ratio of allowance for loan and lease losses to total loans | 1.39% | 1.39% | ||
| Non-performing loans to total loans | 1.37% | 2.40% | ||
| Non-performing assets to total assets | 1.02% | 1.78% | ||
| Annualized net charge-offs to average loans | 0.75% | 0.89% | ||
| SELECTED BALANCE SHEET DATA AT PERIOD-END | 9/30/2012 | 12/31/2011 | ||
| Loans and Leases | $ 2,064,913 | $ 2,041,326 | ||
| Allowance for Loan and Lease Losses | (28,669) | (28,416) | ||
| Investment Securities | 521,294 | 543,644 | ||
| Total Assets | 2,859,647 | 2,825,950 | ||
| Total Deposits | 2,341,108 | 2,249,653 | ||
| Short-Term Borrowings | 54,581 | 72,131 | ||
| Other Borrowings | 172,322 | 232,322 | ||
| Stockholders' Equity | 277,544 | 259,783 | ||
| SELECTED AVERAGE BALANCE SHEET DATA | For the Three Months Ended | For the Nine Months Ended | ||
| 9/30/2012 | 9/30/2011 | 9/30/2012 | 9/30/2011 | |
| Loans and Leases, net | $ 2,062,928 | $ 1,982,637 | $ 2,063,609 | $ 1,988,585 |
| Investment Securities | 501,862 | 518,194 | 508,254 | 531,078 |
| Interest-Earning Assets | 2,598,061 | 2,537,284 | 2,599,163 | 2,552,144 |
| Total Assets | 2,827,885 | 2,762,305 | 2,818,326 | 2,773,858 |
| Non Interest-Bearing Demand Deposits | 477,311 | 424,938 | 466,747 | 412,435 |
| Savings Deposits | 350,135 | 334,909 | 346,829 | 330,103 |
| Interest-Bearing Transaction Accounts | 1,169,953 | 1,058,085 | 1,149,501 | 1,075,313 |
| Time Deposits | 324,355 | 397,029 | 335,947 | 407,182 |
| Total Deposits | 2,321,754 | 2,214,961 | 2,299,024 | 2,225,033 |
| Short-Term Borrowings | 50,180 | 58,983 | 63,402 | 60,986 |
| Other Borrowings | 184,023 | 222,086 | 190,992 | 221,147 |
| Total Interest-Bearing Liabilities | 2,078,647 | 2,071,092 | 2,086,671 | 2,094,731 |
| Stockholders' Equity | 257,557 | 254,174 | 251,185 | 254,237 |
| Common Stockholders' Equity | 257,557 | 235,785 | 248,622 | 230,689 |
| (1) Adjusted for 5% stock dividend payable on April 16, 2012 to shareholders of record March 30, 2012. | ||||
| (2) Excludes preferred stock | ||||
| (3) See supplemental information - non-GAAP financial measures | ||||
| Lakeland Bancorp, Inc. and Subsidiaries | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
| 2012 | 2011 | 2012 | 2011 | |||||
| (dollars in thousands, except per share amounts) | ||||||||
| INTEREST INCOME | ||||||||
| Loans and fees | $24,929 | $25,999 | $75,659 | $78,784 | ||||
| Federal funds sold and interest bearing deposits with banks | 17 | 16 | 29 | 39 | ||||
| Taxable investment securities and other | 2,121 | 2,773 | 6,668 | 8,448 | ||||
| Tax exempt investment securities | 428 | 500 | 1,371 | 1,506 | ||||
| TOTAL INTEREST INCOME | 27,495 | 29,288 | 83,727 | 88,777 | ||||
| INTEREST EXPENSE | ||||||||
| Deposits | 2,026 | 2,572 | 6,421 | 8,310 | ||||
| Federal funds purchased and securities sold under agreements to repurchase | 12 | 18 | 68 | 73 | ||||
| Other borrowings | 1,802 | 2,347 | 5,889 | 7,038 | ||||
| TOTAL INTEREST EXPENSE | 3,840 | 4,937 | 12,378 | 15,421 | ||||
| NET INTEREST INCOME | 23,655 | 24,351 | 71,349 | 73,356 | ||||
| Provision for loan and lease losses | 3,350 | 4,058 | 11,783 | 14,391 | ||||
| NET INTEREST INCOME AFTER PROVISION FOR | ||||||||
| LOAN AND LEASE LOSSES | 20,305 | 20,293 | 59,566 | 58,965 | ||||
| NONINTEREST INCOME | ||||||||
| Service charges on deposit accounts | 2,757 | 2,623 | 7,914 | 7,672 | ||||
| Commissions and fees | 1,162 | 915 | 3,401 | 2,787 | ||||
| Gains on sales of investment securities | -- | 785 | 273 | 1,229 | ||||
| Income on bank owned life insurance | 357 | 356 | 1,035 | 1,070 | ||||
| Gain on leasing related assets | 100 | 117 | 403 | 810 | ||||
| Other income | 264 | 299 | 442 | 467 | ||||
| TOTAL NONINTEREST INCOME | 4,640 | 5,095 | 13,468 | 14,035 | ||||
| NONINTEREST EXPENSE | ||||||||
| Salaries and employee benefits | 9,578 | 9,280 | 28,578 | 27,465 | ||||
| Net occupancy expense | 1,807 | 1,692 | 5,131 | 5,205 | ||||
| Furniture and equipment | 1,205 | 1,172 | 3,427 | 3,561 | ||||
| Stationery, supplies and postage | 388 | 298 | 1,079 | 1,058 | ||||
| Marketing expense | 718 | 612 | 1,646 | 1,846 | ||||
| Amortization of core deposit intangibles | -- | 46 | -- | 577 | ||||
| FDIC insurance expense | 519 | 636 | 1,620 | 2,178 | ||||
| Collection expense | 58 | 70 | 231 | 195 | ||||
| Legal expense | 135 | 457 | 880 | 1,163 | ||||
| Expenses on other real estate owned and other repossessed assets | 13 | 336 | 89 | 808 | ||||
| Long-term debt prepayment fee | -- | 800 | -- | 800 | ||||
| Other expenses | 2,547 | 2,641 | 7,032 | 6,942 | ||||
| TOTAL NONINTEREST EXPENSE | 16,968 | 18,040 | 49,713 | 51,798 | ||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 7,977 | 7,348 | 23,321 | 21,202 | ||||
| Provision for income taxes | 2,488 | 2,242 | 7,408 | 6,467 | ||||
| NET INCOME | $5,489 | $5,106 | $15,913 | $14,735 | ||||
| Dividends on Preferred Stock and Discount Accretion | -- | 293 | 620 | 1,873 | ||||
| Net Income Available to Common Stockholders | $5,489 | $4,813 | $15,293 | $12,862 | ||||
| EARNINGS PER COMMON SHARE | ||||||||
| Basic | $0.20 | $0.18 | $0.56 | $0.48 | ||||
| Diluted | $0.20 | $0.18 | $0.56 | $0.48 | ||||
| DIVIDENDS PER COMMON SHARE | $0.06 | $0.057 | $0.18 | $0.17 | ||||
| Lakeland Bancorp, Inc. and Subsidiaries | ||
| CONSOLIDATED BALANCE SHEETS | ||
| September 30, | December 31, | |
| ASSETS | 2012 | 2011 |
| (dollars in thousands) | (unaudited) | |
| Cash and due from banks | $95,702 | $60,688 |
| Federal funds sold and interest-bearing deposits due from banks | 7,349 | 11,870 |
| Total cash and cash equivalents | 103,051 | 72,558 |
| Investment securities available for sale, at fair value | 419,449 | 463,611 |
| Investment securities held to maturity; fair value of $99,237 in 2012 and $74,274 in 2011 | 95,996 | 71,700 |
| Federal Home Loan Bank Stock, at cost | 5,849 | 8,333 |
| Loans: | ||
| Commercial, secured by real estate | 1,107,907 | 1,092,120 |
| Commercial, industrial and other | 201,308 | 209,915 |
| Leases | 26,548 | 28,879 |
| Residential mortgages | 419,685 | 406,222 |
| Consumer and home equity | 309,465 | 304,190 |
| Total loans | 2,064,913 | 2,041,326 |
| Deferred cost | (134) | 249 |
| Allowance for loan and lease losses | (28,669) | (28,416) |
| Net loans | 2,036,110 | 2,013,159 |
| Premises and equipment, net | 33,237 | 27,917 |
| Accrued interest receivable | 8,065 | 8,369 |
| Goodwill | 87,111 | 87,111 |
| Bank owned life insurance | 45,773 | 44,760 |
| Other assets | 25,006 | 28,432 |
| TOTAL ASSETS | $2,859,647 | $2,825,950 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| LIABILITIES: | ||
| Deposits: | ||
| Noninterest bearing | $485,256 | $449,560 |
| Savings and interest-bearing transaction accounts | 1,535,422 | 1,440,541 |
| Time deposits under $100,000 | 196,939 | 211,797 |
| Time deposits $100,000 and over | 123,491 | 147,755 |
| Total deposits | 2,341,108 | 2,249,653 |
| Federal funds purchased and securities sold under agreements to repurchase | 54,581 | 72,131 |
| Other borrowings | 95,000 | 155,000 |
| Subordinated debentures | 77,322 | 77,322 |
| Other liabilities | 14,092 | 12,061 |
| TOTAL LIABILITIES | 2,582,103 | 2,566,167 |
| STOCKHOLDERS' EQUITY | ||
| Preferred stock, Series A, no par value, $1,000 liquidation value, authorized | ||
| 1,000,000 shares; issued 0 shares at September 30, 2012 and 19,000 shares at December 31, 2011 | -- | 18,480 |
| Common stock, no par value; authorized 40,000,000 shares; issued 29,941,967 shares at September 30, 2012 and 27,275,480 shares at December 31, 2011 | 303,719 | 270,044 |
| Accumulated Deficit | (27,895) | (26,061) |
| Treasury shares, at cost, 251,425 shares at September 30, 2012 and 439,340 shares at December 31, 2011 | (3,163) | (5,551) |
| Accumulated other comprehensive gain | 4,883 | 2,871 |
| TOTAL STOCKHOLDERS' EQUITY | 277,544 | 259,783 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $2,859,647 | $2,825,950 |
| Lakeland Bancorp, Inc. | |||||
| Financial Highlights | |||||
| (unaudited) | |||||
| For the quarter ended | |||||
| Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | |
| (dollars in thousands, except per share data) | 2012 | 2012 | 2012 | 2011 | 2011 |
| INCOME STATEMENT | (unaudited) | ||||
| Net Interest Income | $ 23,655 | $ 23,748 | $ 23,946 | $ 24,057 | $ 24,351 |
| Provision for Loan and Lease Losses | (3,350) | (3,877) | (4,556) | (4,425) | (4,058) |
| Noninterest Income (excluding investment securities gains) | 4,640 | 4,530 | 4,025 | 4,082 | 4,310 |
| Gains on investment securities | -- | 241 | 32 | -- | 785 |
| Long-term debt prepayment fee | -- | -- | -- | -- | (800) |
| Noninterest Expense, excluding long-term debt prepayment fee | (16,968) | (16,470) | (16,275) | (16,353) | (17,240) |
| Pretax Income | 7,977 | 8,172 | 7,172 | 7,361 | 7,348 |
| Tax Expense | (2,488) | (2,719) | (2,201) | (2,245) | (2,242) |
| Net Income | $ 5,489 | $ 5,453 | $ 4,971 | $ 5,116 | $ 5,106 |
| Dividends on Preferred Stock and Discount Accretion | -- | -- | (620) | (294) | (293) |
| Net Income Available to Common Stockholders | $ 5,489 | $ 5,453 | $ 4,351 | $ 4,822 | $ 4,813 |
| Basic Earnings Per Common Share (1) | $ 0.20 | $ 0.20 | $ 0.16 | $ 0.18 | $ 0.18 |
| Diluted Earnings Per Common Share (1) | $ 0.20 | $ 0.20 | $ 0.16 | $ 0.18 | $ 0.18 |
| Dividends per Common Share (1) | $ 0.060 | $ 0.060 | $ 0.057 | $ 0.057 | $ 0.057 |
| Weighted Average Shares - Basic (1) | 27,550 | 26,737 | 26,700 | 26,629 | 26,589 |
| Weighted Average Shares - Diluted (1) | 27,642 | 26,800 | 26,747 | 26,688 | 26,638 |
| SELECTED OPERATING RATIOS | |||||
| Annualized Return on Average Assets | 0.77% | 0.78% | 0.71% | 0.72% | 0.73% |
| Annualized Return on Average Common Equity | 8.48% | 8.94% | 8.23% | 8.50% | 8.59% |
| Annualized Return on Tangible Common Equity (3) | 12.81% | 13.87% | 12.83% | 13.39% | 13.63% |
| Annualized Net Interest Margin | 3.66% | 3.70% | 3.76% | 3.73% | 3.85% |
| Efficiency ratio (3) | 58.91% | 57.18% | 57.71% | 57.67% | 57.01% |
| Stockholders' equity to total assets | 9.71% | 8.65% | 8.48% | 9.19% | 9.30% |
| Common stockholders' equity to total assets | 9.71% | 8.65% | 8.48% | 8.54% | 8.62% |
| Tangible common equity to tangible assets (3) | 6.87% | 5.78% | 5.60% | 5.63% | 5.63% |
| Tier 1 risk-based ratio | 12.24% | 10.21% | 9.92% | 11.23% | 11.21% |
| Total risk-based ratio | 14.14% | 12.59% | 12.37% | 13.39% | 13.46% |
| Tier 1 leverage ratio | 9.05% | 7.62% | 7.46% | 8.33% | 8.29% |
| Book value per common share (1) (2) | $ 9.35 | $ 9.15 | $ 8.97 | $ 8.99 | $ 8.82 |
| Tangible book value per common share (1) (2) (3) | $ 6.41 | $ 5.92 | $ 5.74 | $ 5.75 | $ 5.57 |
| (1) Adjusted for 5% stock dividend payable on April 16, 2012 to shareholders of record March 30, 2012. | |||||
| (2) Excludes preferred stock | |||||
| (3) See Supplemental Information - Non GAAP financial measures | |||||
| Lakeland Bancorp, Inc. | |||||
| Financial Highlights | |||||
| (unaudited) | |||||
| For the quarter ended | |||||
| Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | |
| (dollars in thousands) | 2012 | 2012 | 2012 | 2011 | 2011 |
| (unaudited) | |||||
| SELECTED BALANCE SHEET DATA AT PERIOD-END | |||||
| Loans and Leases | $ 2,064,913 | $ 2,088,695 | $ 2,073,527 | $ 2,041,326 | $ 1,991,874 |
| Allowance for Loan and Lease Losses | (28,669) | (28,543) | (28,700) | (28,416) | (28,024) |
| Investment Securities | 521,294 | 516,432 | 522,761 | 543,644 | 515,019 |
| Total Assets | 2,859,647 | 2,853,202 | 2,852,347 | 2,825,950 | 2,741,768 |
| Total Deposits | 2,341,108 | 2,277,400 | 2,288,128 | 2,249,653 | 2,232,565 |
| Short-Term Borrowings | 54,581 | 92,958 | 96,453 | 72,131 | 53,175 |
| Other Borrowings | 172,322 | 222,322 | 212,322 | 232,323 | 187,322 |
| Stockholders' Equity | 277,544 | 246,941 | 241,955 | 259,783 | 254,898 |
| Loans and Leases | |||||
| Commercial real estate | $ 1,107,907 | $ 1,116,726 | $ 1,114,042 | $ 1,092,120 | $ 1,064,009 |
| Commercial, industrial and other | 201,308 | 216,406 | 219,270 | 209,915 | 195,121 |
| Leases | 26,548 | 25,603 | 26,214 | 28,879 | 36,178 |
| Residential mortgages | 419,685 | 421,338 | 412,027 | 406,222 | 392,454 |
| Consumer and Home Equity | 309,465 | 308,622 | 301,974 | 304,190 | 304,112 |
| Total loans | $ 2,064,913 | $ 2,088,695 | $ 2,073,527 | $ 2,041,326 | $ 1,991,874 |
| Deposits | |||||
| Noninterest bearing | $ 485,256 | $ 474,233 | $ 476,349 | $ 449,560 | $ 424,789 |
| Savings and interest-bearing transaction accounts | 1,535,422 | 1,476,127 | 1,473,051 | 1,440,541 | 1,411,058 |
| Time deposits under $100,000 | 196,939 | 201,817 | 206,766 | 211,797 | 222,337 |
| Time deposits $100,000 and over | 123,491 | 125,223 | 131,962 | 147,755 | 174,381 |
| Total deposits | $ 2,341,108 | $ 2,277,400 | $ 2,288,128 | $ 2,249,653 | $ 2,232,565 |
| SELECTED AVERAGE BALANCE SHEET DATA | |||||
| Loans and Leases, net | $ 2,062,928 | $ 2,077,813 | $ 2,050,093 | $ 2,024,559 | $ 1,982,637 |
| Investment Securities | 501,862 | 502,931 | 520,039 | 530,171 | 518,194 |
| Interest-Earning Assets | 2,598,061 | 2,605,294 | 2,592,654 | 2,585,062 | 2,537,284 |
| Total Assets | 2,827,885 | 2,820,789 | 2,806,197 | 2,809,452 | 2,762,305 |
| Non Interest-Bearing Demand Deposits | 477,311 | 473,853 | 448,893 | 452,638 | 424,938 |
| Savings Deposits | 350,135 | 352,095 | 338,221 | 332,258 | 334,909 |
| Interest-Bearing Transaction Accounts | 1,169,953 | 1,141,263 | 1,137,069 | 1,128,338 | 1,058,085 |
| Time Deposits | 324,355 | 332,669 | 350,937 | 380,443 | 397,029 |
| Total Deposits | 2,321,754 | 2,299,880 | 2,275,120 | 2,293,677 | 2,214,961 |
| Short-Term Borrowings | 50,180 | 71,558 | 68,612 | 54,056 | 58,983 |
| Other Borrowings | 184,023 | 190,478 | 198,553 | 190,826 | 222,086 |
| Total Interest-Bearing Liabilities | 2,078,647 | 2,088,062 | 2,093,392 | 2,085,921 | 2,071,092 |
| Stockholders' Equity | 257,557 | 245,253 | 250,676 | 257,164 | 254,174 |
| Common Stockholders' Equity | 257,557 | 245,253 | 242,957 | 238,713 | 235,785 |
| Lakeland Bancorp, Inc. | |||||
| Financial Highlights | |||||
| (unaudited) | |||||
| For the quarter ended | |||||
| Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | |
| (dollars in thousands) | 2012 | 2012 | 2012 | 2011 | 2011 |
| (unaudited) | |||||
| AVERAGE ANNUALIZED YIELDS (taxable equivalent basis) | |||||
| Assets: | |||||
| Loans and leases | 4.81% | 4.89% | 4.99% | 5.06% | 5.20% |
| Taxable investment securities and other | 1.96% | 2.03% | 2.09% | 2.12% | 2.48% |
| Tax-exempt securities | 3.84% | 4.09% | 4.14% | 4.28% | 4.33% |
| Federal funds sold and interest-bearing cash accounts | 0.20% | 0.10% | 0.11% | 0.16% | 0.18% |
| Total interest-earning assets | 4.25% | 4.35% | 4.43% | 4.46% | 4.63% |
| Liabilities: | |||||
| Savings accounts | 0.10% | 0.11% | 0.11% | 0.11% | 0.12% |
| Interest-bearing transaction accounts | 0.40% | 0.44% | 0.45% | 0.51% | 0.50% |
| Time deposits | 0.94% | 0.97% | 1.02% | 1.07% | 1.13% |
| Borrowings | 3.10% | 3.13% | 3.13% | 3.47% | 3.37% |
| Total interest-bearing liabilities | 0.74% | 0.81% | 0.83% | 0.90% | 0.95% |
| Net interest spread (taxable equivalent basis) | 3.51% | 3.54% | 3.60% | 3.56% | 3.68% |
| Annualized Net Interest Margin (taxable equivalent basis) | 3.66% | 3.70% | 3.76% | 3.73% | 3.85% |
| Annualized Cost of Deposits | 0.35% | 0.37% | 0.40% | 0.44% | 0.46% |
| ASSET QUALITY DATA | |||||
| Allowance for Loan and Lease Losses | |||||
| Balance at beginning of period | $ 28,543 | $ 28,700 | $ 28,416 | $ 28,024 | $ 28,252 |
| Provision for loan losses | 3,350 | 3,877 | 4,556 | 4,425 | 4,058 |
| Net Charge-offs | (3,224) | (4,034) | (4,272) | (4,033) | (4,286) |
| Balance at end of period | $ 28,669 | $ 28,543 | $ 28,700 | $ 28,416 | $ 28,024 |
| Net Loan Charge-offs (Recoveries) | |||||
| Commercial real estate | $ 1,420 | $ 2,938 | $ 3,550 | $ 1,367 | $ 1,420 |
| Commercial, industrial and other | 258 | 258 | (30) | (201) | 1,929 |
| Leases | 291 | 150 | (210) | 358 | 353 |
| Home equity and consumer | 334 | 528 | 617 | 1,355 | 422 |
| Real estate - mortgage | 921 | 160 | 345 | 1,154 | 162 |
| Net charge-offs | $ 3,224 | $ 4,034 | $ 4,272 | $ 4,033 | $ 4,286 |
| Nonperforming Assets | |||||
| Commercial real estate | $ 14,211 | $ 18,843 | $ 23,119 | $ 28,971 | $ 30,970 |
| Commercial, industrial and other | 1,533 | 1,650 | 5,611 | 4,608 | 4,416 |
| Leases | 294 | 536 | 621 | 575 | 4,670 |
| Home equity and consumer | 3,104 | 2,818 | 2,725 | 3,252 | 3,840 |
| Real estate - mortgage | 9,235 | 10,197 | 9,943 | 11,610 | 12,503 |
| Total non-accruing loans | 28,377 | 34,044 | 42,019 | 49,016 | 56,399 |
| Property acquired through foreclosure or repossession | 775 | 1,250 | 1,314 | 1,182 | 1,342 |
| Total non-performing assets | $ 29,152 | $ 35,294 | $ 43,333 | $ 50,198 | $ 57,741 |
| Loans past due 90 days or more | $ 1,828 | $ 1,566 | $ 2,343 | $ 1,367 | $ 1,304 |
| Loans restructured and still accruing | $ 10,937 | $ 10,776 | $ 8,744 | $ 8,856 | $ 6,075 |
| Ratio of allowance for loan and lease losses to total loans | 1.39% | 1.37% | 1.38% | 1.39% | 1.41% |
| Non-performing loans to total loans | 1.37% | 1.63% | 2.03% | 2.40% | 2.83% |
| Non-performing assets to total assets | 1.02% | 1.24% | 1.52% | 1.78% | 2.11% |
| Annualized net charge-offs to average loans | 0.63% | 0.78% | 0.83% | 0.80% | 0.86% |
| Lakeland Bancorp, Inc. | |||||
| Supplemental Information - Non-GAAP Financial Measures | |||||
| (unaudited) | |||||
| At or for the quarter ended, | |||||
| Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | |
| (dollars in thousands, except per share amounts) | 2012 | 2012 | 2012 | 2011 | 2011 |
| Calculation of tangible book value per common share | |||||
| Total common stockholders' equity at end of period - GAAP | $ 277,544 | $ 246,941 | $ 241,955 | $ 241,303 | $ 236,474 |
| Less: | |||||
| Goodwill | 87,111 | 87,111 | 87,111 | 87,111 | 87,111 |
| Other identifiable intangible assets, net | -- | -- | -- | -- | -- |
| Total tangible common stockholders' equity at end of period - Non- GAAP | $ 190,433 | $ 159,830 | $ 154,844 | $ 154,192 | $ 149,363 |
| Shares outstanding at end of period (1) | 29,691 | 26,993 | 26,963 | 26,836 | 26,804 |
| Book value per share - GAAP (1) | $ 9.35 | $ 9.15 | $ 8.97 | $ 8.99 | $ 8.82 |
| Tangible book value per share - Non-GAAP (1) | $ 6.41 | $ 5.92 | $ 5.74 | $ 5.75 | $ 5.57 |
| Calculation of tangible common equity to tangible assets | |||||
| Total tangible common stockholders' equity at end of period - Non- GAAP | $ 190,433 | $ 159,830 | $ 154,844 | $ 154,192 | $ 149,363 |
| Total assets at end of period | $ 2,859,647 | $ 2,853,202 | $ 2,852,347 | $ 2,825,950 | $ 2,741,768 |
| Less: | |||||
| Goodwill | 87,111 | 87,111 | 87,111 | 87,111 | 87,111 |
| Other identifiable intangible assets, net | -- | -- | -- | -- | -- |
| Total tangible assets at end of period - Non-GAAP | $ 2,772,536 | $ 2,766,091 | $ 2,765,236 | $ 2,738,839 | $ 2,654,657 |
| Common equity to assets - GAAP | 9.71% | 8.65% | 8.48% | 8.54% | 8.62% |
| Tangible common equity to tangible assets - Non-GAAP | 6.87% | 5.78% | 5.60% | 5.63% | 5.63% |
| Calculation of return on average tangible common equity | |||||
| Net income - GAAP | $ 5,489 | $ 5,453 | $ 4,971 | $ 5,116 | $ 5,106 |
| Total average common stockholders' equity | 257,557 | 245,253 | 242,957 | 238,713 | 235,785 |
| Less: | |||||
| Average goodwill | 87,111 | 87,111 | 87,111 | 87,111 | 87,111 |
| Average other identifiable intangible assets, net | -- | -- | -- | -- | 15 |
| Total average tangible common stockholders' equity - Non - GAAP | $ 170,446 | $ 158,142 | $ 155,846 | $ 151,602 | $ 148,659 |
| Return on average common stockholders' equity - GAAP | 8.48% | 8.94% | 8.23% | 8.50% | 8.59% |
| Return on average tangible common stockholders' equity - Non-GAAP | 12.81% | 13.87% | 12.83% | 13.39% | 13.63% |
| Calculation of efficiency ratio | |||||
| Total non-interest expense | $ 16,968 | $ 16,470 | $ 16,275 | $ 16,353 | $ 18,040 |
| Less: | |||||
| Amortization of core deposit intangibles | -- | -- | -- | -- | (46) |
| Other real estate owned and other repossessed asset (expense) income | (13) | (38) | (38) | 28 | (336) |
| Long-term debt prepayment fee | -- | -- | -- | -- | (800) |
| Provision for unfunded lending commitments, net | (150) | (122) | 56 | 3 | (365) |
| Non-interest expense, as adjusted | $ 16,805 | $ 16,310 | $ 16,293 | $ 16,384 | $ 16,493 |
| Net interest income | $ 23,655 | $ 23,748 | $ 23,946 | $ 24,057 | $ 24,351 |
| Noninterest income | 4,640 | 4,771 | 4,057 | 4,082 | 5,095 |
| Total revenue | 28,295 | 28,519 | 28,003 | 28,139 | 29,446 |
| Plus: Tax-equivalent adjustment on municipal securities | 230 | 244 | 264 | 269 | 269 |
| Less: (gains) on investment securities | -- | (241) | (32) | -- | (785) |
| Total revenue, as adjusted | $ 28,525 | $ 28,522 | $ 28,235 | $ 28,408 | $ 28,930 |
| Efficiency ratio - Non-GAAP | 58.91% | 57.18% | 57.71% | 57.67% | 57.01% |
| (1) Adjusted for 5% stock dividend payable on April 16, 2012 to shareholders of record March 30, 2012. | |||||
| Lakeland Bancorp, Inc. | ||
| Supplemental Information - Non-GAAP Financial Measures | ||
| (unaudited) | ||
| For the Nine Months Ended, | ||
| September 30 | September 30 | |
| (dollars in thousands, except per share amounts) | 2012 | 2011 |
| Calculation of return on average tangible common equity | ||
| Net income - GAAP | $ 15,913 | $ 14,735 |
| Total average common stockholders' equity | $ 248,622 | $ 230,689 |
| Less: | ||
| Average goodwill | 87,111 | 87,111 |
| Average other identifiable intangible assets, net | -- | 221 |
| Total average tangible common stockholders' equity - Non GAAP | $ 161,511 | $ 143,357 |
| Return on average common stockholders' equity - GAAP | 8.55% | 8.54% |
| Return on average tangible common stockholders' equity - Non-GAAP | 13.16% | 13.74% |
| Calculation of efficiency ratio | ||
| Total non-interest expense | $ 49,713 | $ 51,798 |
| Less: | ||
| Amortization of core deposit intangibles | -- | (577) |
| Other real estate owned and other repossessed asset expense | (89) | (808) |
| Long-term debt prepayment fee | -- | (800) |
| Provision for unfunded lending commitments | (217) | (378) |
| Non-interest expense, as adjusted | $ 49,407 | $ 49,235 |
| Net interest income | $ 71,349 | $ 73,356 |
| Noninterest income | 13,468 | 14,035 |
| Total revenue | 84,817 | 87,391 |
| Plus: Tax-equivalent adjustment on municipal securities | 738 | 811 |
| Less: gains on investment securities | (273) | (1,229) |
| Total revenue, as adjusted | $ 85,282 | $ 86,973 |
| Efficiency ratio - Non - GAAP | 57.93% | 56.61% |
CONTACT: Thomas J. Shara
President & CEO
Joseph F. Hurley
EVP & CFO
973-697-2000