EXHIBIT 99.1
Lakeland Bancorp Announces Second Quarter Results
OAK RIDGE, N.J., July 22, 2021 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (NASDAQ: LBAI) (the “Company”), the parent company of Lakeland Bank (“Lakeland”), reported net income of $27.4 million and earnings per diluted share ("EPS") of $0.53 for the three months ended June 30, 2021 compared to net income of $11.9 million and diluted EPS of $0.23 for the three months ended June 30, 2020. For the second quarter of 2021, annualized return on average assets was 1.41%, annualized return on average common equity was 14.07% and annualized return on average tangible common equity was 17.67%.
For the six months ended June 30, 2021, the Company reported net income of $50.6 million and earnings per diluted share ("EPS") of $0.98 compared to net income of $24.2 million and diluted EPS of $0.47 for the first six months of 2020. Annualized return on average assets was 1.32%, annualized return on average common equity was 13.15% and annualized return on average tangible common equity was 16.55% for the first six months of 2021.
The second quarter and year-to-date 2021 results were favorably impacted by negative provisions for credit losses of $6.0 million and $8.6 million, respectively, compared to provisions of $9.0 million and $18.2 million for the same periods last year as forecasted macroeconomic conditions have improved and Lakeland's asset quality continues to be strong.
Thomas Shara, Lakeland Bancorp’s President and CEO commented, “We are pleased with the Company’s record earnings for the quarter and our continued improvement in asset quality with non-performing assets to total assets dropping to 29 basis points. Notwithstanding the negative provision for credit losses for the quarter, Lakeland continues to effectively navigate the current economic environment with increased net interest margin, prudent expense management and excellent credit metrics.”
Regarding last week’s announced merger agreement to acquire 1st Constitution Bancorp, Mr. Shara continued, “We are extremely excited to bring together two high performing banks who each were recently recognized by national news media outlets as the best banks in New Jersey. Lakeland was named Best In-State Bank in New Jersey by Forbes and 1st Constitution was awarded Best Small Bank in New Jersey by Newsweek.” This transaction is expected to close in the fourth quarter of 2021 or early first quarter 2022.
Second Quarter 2021 Highlights
- Net interest margin increased to 3.27% compared to 3.19% in the first quarter of 2021 and 3.06% in the second quarter of 2020.
- Nonperforming assets decreased $8.5 million or 27% to $22.6 million at June 30, 2021 compared to $31.1 million at March 31, 2021.
- Deposit growth was strong as saving and interest-bearing transaction accounts increased $148.8 million during the second quarter, while higher priced time deposits were allowed to run off. Noninterest-bearing deposits increased $51.9 million to $1.68 billion at June 30, 2021.
- Paycheck Protection Program ("PPP") loans totaled $207.0 million at June 30, 2021 compared to $346.2 million at March 31, 2021. New PPP loans booked during the second quarter totaled $14.2 million while $153.3 million in previously booked PPP loans were forgiven resulting in a net decrease of $139.1 million. Unamortized net deferred fees on PPP loans totaled $6.1 million at June 30, 2021 compared to $8.1 million at March 31, 2021.
Net Interest Margin and Net Interest Income
Net interest margin for the second quarter of 2021 of 3.27% increased 21 basis points compared to the second quarter of 2020 and increased 8 basis points compared to the first quarter of 2021. Net interest margin for the first six months of 2021 was 3.23% as compared to 3.16% for the same period in 2020. The increase in net interest margin compared to the second quarter 2020 and year-to-date 2020 was due primarily to a decrease in the cost of interest-bearing liabilities, while the increase in net interest margin compared to the linked quarter was due primarily to an increase in the yield on interest-earning assets as well as a reduction in the cost of interest-bearing liabilities.
The yield on interest-earning assets for the second quarter of 2021 was 3.57% as compared to 3.69% for the second quarter of 2020 and 3.56% for the first quarter of 2021. The yield on interest-earning assets for the first six months of 2021 was 3.57% as compared to 3.92% during the same period in 2020. The current quarter decrease in yield on interest-earning assets, when compared to the second quarter of 2020 was due primarily to a reduction in the yield on securities as well as an increase in average securities balances. The current quarter increase in yield on interest-earning assets compared to the first quarter of 2021 was due primarily to an increase in yield on loans resulting from an increase in prepayment fees and interest recoveries on non-performing assets. The 35 basis point reduction in yield on interest-earning assets for the first six months of 2021 compared to the same period in 2020 was due primarily to a reduction in the yield on loans due to decreases in the prime rate and LIBOR during 2020, an increase in lower yielding federal funds sold, as well as the origination of PPP loans during 2020, which earn an effective yield of 2.50% including amortization of fees and costs.
The cost of interest-bearing liabilities for the second quarter of 2021 was 0.42% compared to 0.86% for the second quarter of 2020 and 0.51% for the first quarter of 2021. The cost of interest-bearing liabilities for the first six months of 2021 was 0.47% compared to 1.02% during the same period in 2020. The reduction in the cost of interest-bearing liabilities compared to prior periods was largely driven by reductions in market interest rates as well as a change in the mix of interest-bearing liabilities. Higher cost time deposit and borrowings balances have decreased while lower cost interest-bearing transaction account balances have increased.
Net interest income for the second quarter of 2021 of $59.7 million increased $9.2 million and $3.0 million, respectively, compared to the second quarter of 2020 and the first quarter of 2021. Net interest income for the first six months of 2021 was $116.5 million as compared to $100.4 million for the first six months of 2020. The increase in net interest income compared to prior periods was due primarily to a reduction in the cost of interest-bearing deposits as well as growth in the volume of interest-earning assets.
Noninterest Income
Noninterest income decreased $212,000 to $5.3 million for the second quarter of 2021 from $5.5 million for the second quarter of 2020. Service charges on deposit accounts for the second quarter of 2021 increased $570,000 compared to the second quarter of 2020 due primarily to changes in customer behavior relating to the pandemic. Commissions and fees for the second quarter of 2021 increased $559,000 compared to the second quarter of 2020 due primarily to increases in commercial loan fees and investment commission income. Swap income decreased $695,000 compared to the second quarter of 2020 due primarily to the steepness of the yield curve which makes new swap agreements less attractive. Other income decreased $343,000 due primarily to a $400,000 write-down on a branch location held for sale.
For the first six months of 2021, noninterest income decreased $2.5 million to $11.0 million compared to the first six months of 2020 primarily due to a $3.0 million decrease in swap income resulting from the changes to the yield curve discussed above. Service charges on deposit accounts and commissions and fees increased $366,000 and $517,000, respectively, compared to the first half of 2020 due to the same reasons discussed in the quarterly comparison. Losses on equity securities totaled $133,000 in the first six months of 2021 compared to losses of $455,000 in the first six months of 2020. Other income decreased $497,000 due primarily to the same reason discussed in the quarterly comparison. Additionally, the first half of 2020 included gains on sales of investment securities of $342,000 compared to $9,000 for the same period in 2021.
Noninterest Expense
Noninterest expense totaled $34.1 million for the second quarter of 2021 and increased $2.6 million compared to the second quarter of 2020. Compensation and employee benefit expense for the second quarter of 2021 increased $1.9 million or 10% compared to the same quarter of 2020 as a result of staff additions and normal merit increases. Premises and equipment increased $807,000 compared to the second quarter of 2020 predominately driven by an increase in costs associated with the Company's digital strategy initiative. Other operating expenses in the second quarter of 2021 were $123,000 less than the second quarter of 2020 due primarily to decreased consulting and professional fees.
Noninterest expense for the first half of 2021 of $68.0 million increased $4.0 million compared to the first half of 2020. Compensation and employee benefit expense and premises and equipment expense increased $2.7 million and $1.7 million, respectively, compared to the first half of 2020 due to the same reasons discussed in the quarterly comparison. FDIC insurance expense in the first six months of 2021 increased $584,000 due primarily to deposit growth and assessment credits recorded in the first half of 2020. Other operating expenses decreased $852,000 in the first half of 2021 compared to the same period in 2020 due primarily to a decrease in consulting and professional fees. Additionally, other operating expenses in the first half of 2020 included a long-term debt prepayment fee of $356,000 resulting from the payoff of $10.0 million in Federal Home Loan Bank debt yielding 2.89%.
Income Tax Expense
The effective tax rate for the second quarter of 2021 was 25.7% compared to 23.7% for the second quarter of 2020. The increased effective tax rate for the second quarter of 2021 was primarily a result of tax advantaged items declining as a percentage of pretax income due to the increase in pretax income.
Financial Condition
At June 30, 2021, total assets were $7.85 billion, an increase of $189.9 million compared to December 31, 2020. For the six months ended June 30, 2021, total loans decreased $32.4 million to $5.99 billion and investment securities increased $134.4 million to $1.11 billion. On the funding side, total deposits increased $259.3 million to $6.72 billion, while borrowings decreased $74.6 million to $238.2 million. At June 30, 2021, total loans as a percent of total deposits was 89.2%.
Asset Quality
At June 30, 2021, non-performing assets decreased 47% to $22.6 million or 0.29% of total assets compared to $42.8 million or 0.56% of total assets at December 31, 2020. Non-accrual loans as a percent of total loans decreased to 0.38% at June 30, 2021 compared to 0.71% at December 31, 2020. The allowance for credit losses decreased to $60.4 million, 1.01% of total loans, at June 30, 2021, compared to $71.1 million, 1.18% of total loans, at December 31, 2020. In the second quarter of 2021, the Company had net charge-offs of $1.5 million or 0.10% of average loans, on an annualized basis, compared to $45,000 or 0% for the same period in 2020. The provision for credit losses for the second quarter of 2021 was a benefit of $6.0 million compared to a provision of $9.0 million in the second quarter of 2020. In addition, the second quarter of 2021 included a sale of nonperforming residential mortgages and consumer loans totaling $5.0 million and resulted in an improvement of asset quality ratios.
Capital
At June 30, 2021, stockholders' equity was $796.7 million compared to $763.8 million at December 31, 2020, a 4% increase. Lakeland Bank remains above FDIC “well capitalized” standards, with a Tier 1 leverage ratio of 8.70% at June 30, 2021. The book value per common share and tangible book value per common share increased 7% and 9% to $15.74 and $12.60, respectively, compared to $14.77 and $11.60 at June 30, 2020 (see "Supplemental Information - Non-GAAP Financial Measures" for a reconciliation of non-GAAP financial measures, including tangible book value). At June 30, 2021, the Company’s common equity to assets ratio and tangible common equity to tangible assets ratio was 10.14% and 8.29%, respectively, compared to 9.97% and 8.05% at December 31, 2020. On July 21, 2021, the Company declared a quarterly cash dividend of $0.135 per share to be paid on August 13, 2021, to shareholders of record as of August 2, 2021.
Forward-Looking Statements
The information disclosed in this document includes various forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipates,” “projects,” “intends,” “estimates,” “expects,” “believes,” “plans,” “may,” “will,” “should,” “could,” and other similar expressions are intended to identify such forward-looking statements. The Company cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. Accordingly, you should not place undue reliance on forward-looking statements. In addition to the specific risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, the following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: changes in the financial services industry and the U.S. and global capital markets, changes in economic conditions nationally, regionally and in the Company’s markets, the nature and timing of actions of the Federal Reserve Board and other regulators, the nature and timing of legislation and regulation affecting the financial services industry, government intervention in the U.S. financial system, changes in federal and state tax laws, changes in levels of market interest rates, pricing pressures on loan and deposit products, credit risks of the Company’s lending and leasing activities, successful implementation, deployment and upgrades of new and existing technology, systems, services and products, customers’ acceptance of the Company’s products and services, competition, and failure to realize anticipated efficiencies and synergies from the merger of 1st Constitution Bancorp into Lakeland Bancorp and the merger of 1st Constitution Bank into Lakeland Bank. Further, given its ongoing and dynamic nature, it is difficult to predict the continuing effects that the COVID-19 pandemic will have on our business and results of operations. The pandemic and related local and national economic disruption may, among other effects, result in a material adverse change for the demand for our products and services; increased levels of loan delinquencies, problem assets and foreclosures; branch disruptions, unavailability of personnel and increased cybersecurity risks as employees work remotely. Any statements made by the Company that are not historical facts should be considered to be forward-looking statements. The Company is not obligated to update and does not undertake to update any of its forward-looking statements made herein.
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results.
The Company also provides measurements and ratios based on tangible equity and tangible assets. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.
Specifically, 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, and, where applicable, long-term debt prepayment fees and merger-related expenses. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes gains and losses from the sale of investment securities, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a relevant measure to compare the operating performance period to period.
These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. See accompanying "Supplemental Information - Non-GAAP Financial Measures" for a reconciliation of non-GAAP financial measures.
About Lakeland
Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc. (NASDAQ:LBAI), which had $7.85 billion in total assets at June 30, 2021. With an extensive branch network and commercial lending centers throughout New Jersey and Highland Mills, New York, the Bank offers business and retail banking products and services. Business services include commercial loans and lines of credit, commercial real estate loans, loans for healthcare services, asset-based lending, equipment financing, small business loans and lines and cash management services. Consumer services include online and mobile banking, home equity loans and lines, mortgage options and wealth management solutions. Lakeland is proud to be recognized as one of New Jersey's Best-In State Banks by Forbes and Statista, rated a 5-Star Bank by Bauer Financial and named one of New Jersey's 50 Fastest Growing Companies by NJBIZ. Visit LakelandBank.com or 973-697-2000 for more information.
| Thomas J. Shara | Thomas F. Splaine |
| President & CEO | EVP & CFO |
| Lakeland Bancorp, Inc. |
| Financial Highlights |
| (Unaudited) |
| | | | | | | | |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| (dollars in thousands, except per share amounts) | 2021 | | 2020 | | 2021 | | 2020 |
| Income Statement | | | | | | | |
| Net interest income | $ | 59,740 | | | | $ | 50,519 | | | | $ | 116,468 | | | | $ | 100,418 | | |
| Provision for credit losses (2) | 5,959 | | | | (9,000 | ) | | | 8,601 | | | | (18,223 | ) | |
| Gains on sales of investment securities | 9 | | | | — | | | | 9 | | | | 342 | | |
| Gains on sales of loans | 607 | | | | 710 | | | | 1,315 | | | | 1,125 | | |
| Gain (loss) on equity securities | 11 | | | | 198 | | | | (133 | ) | | | (455 | ) | |
| Other noninterest income | 4,642 | | | | 4,573 | | | | 9,837 | | | | 12,480 | | |
| Long-term debt prepayment fee | — | | | | — | | | | — | | | | (356 | ) | |
| Other noninterest expense | (34,097 | ) | | | (31,462 | ) | | | (68,000 | ) | | | (63,610 | ) | |
| Pretax income | 36,871 | | | | 15,538 | | | | 68,097 | | | | 31,721 | | |
| Provision for income taxes | (9,464 | ) | | | (3,687 | ) | | | (17,515 | ) | | | (7,478 | ) | |
| Net income | $ | 27,407 | | | | $ | 11,851 | | | | $ | 50,582 | | | | $ | 24,243 | | |
| | | | | | | | |
| Basic earnings per common share | $ | 0.53 | | | | $ | 0.23 | | | | $ | 0.99 | | | | $ | 0.48 | | |
| Diluted earnings per common share | $ | 0.53 | | | | $ | 0.23 | | | | $ | 0.98 | | | | $ | 0.47 | | |
| Dividends paid per common share | $ | 0.135 | | | | $ | 0.125 | | | | $ | 0.260 | | | | $ | 0.250 | | |
| Weighted average shares - basic | 50,636 | | | | 50,522 | | | | 50,606 | | | | 50,554 | | |
| Weighted average shares - diluted | 50,858 | | | | 50,593 | | | | 50,821 | | | | 50,660 | | |
| | | | | | | | |
| Selected Operating Ratios | | | | | | | |
| Annualized return on average assets | 1.41 | | % | | 0.67 | | % | | 1.32 | | % | | 0.71 | | % |
| Annualized return on average common equity | 14.07 | | % | | 6.42 | | % | | 13.15 | | % | | 6.59 | | % |
| Annualized return on average tangible common equity (1) | 17.67 | | % | | 8.19 | | % | | 16.55 | | % | | 8.42 | | % |
| Annualized yield on interest-earning assets | 3.57 | | % | | 3.69 | | % | | 3.57 | | % | | 3.92 | | % |
| Annualized cost of interest-bearing liabilities | 0.42 | | % | | 0.86 | | % | | 0.47 | | % | | 1.02 | | % |
| Annualized net interest spread | 3.15 | | % | | 2.83 | | % | | 3.10 | | % | | 2.91 | | % |
| Annualized net interest margin | 3.27 | | % | | 3.06 | | % | | 3.23 | | % | | 3.16 | | % |
| Efficiency ratio (1) | 51.98 | | % | | 55.62 | | % | | 52.85 | | % | | 55.46 | | % |
| Stockholders' equity to total assets | | | | | 10.14 | | % | | 9.96 | | % |
| Book value per common share | | | | | $ | 15.74 | | | | $ | 14.77 | | |
| Tangible book value per common share (1) | | | | | $ | 12.60 | | | | $ | 11.60 | | |
| Tangible common equity to tangible assets (1) | | | | | 8.29 | | % | | 7.99 | | % |
| | | | | | | | |
| Asset Quality Ratios | | | | | June 30, 2021 | | June 30, 2020 |
| Ratio of allowance for credit losses to total loans (2) | | | | | 1.01 | | % | | 1.00 | | % |
| Non-performing loans to total loans | | | | | 0.38 | | % | | 0.57 | | % |
| Non-performing assets to total assets | | | | | 0.29 | | % | | 0.44 | | % |
| Annualized net charge-offs to average loans | | | | | 0.09 | | % | | 0.01 | | % |
| | | | | | | | |
| (1) See Supplemental Information - Non-GAAP Financial Measures | | | | | | |
(2) The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") on December 31, 2020, with a $6.7 million transition adjustment retroactive to January 1, 2020. Periods prior to December 31, 2020 do not reflect the adoption of ASU 2016-13.
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| Lakeland Bancorp, Inc. |
| Financial Highlights |
| (Unaudited) |
| | | | | | | | |
| (dollars in thousands) | | | | | June 30, 2021 | | June 30, 2020 |
| Selected Balance Sheet Data at Period End | | | | | | |
| Loans | | | | | $ | 5,988,832 | | | | $ | 5,756,155 | | |
| Allowance for credit losses (1) | | | | | 60,389 | | | | 57,839 | | |
| Investment securities | | | | | 1,107,601 | | | | 957,985 | | |
| Total assets | | | | | 7,854,238 | | | | 7,488,516 | | |
| Total deposits | | | | | 6,715,035 | | | | 6,125,502 | | |
| Short-term borrowings | | | | | 100,190 | | | | 183,116 | | |
| Other borrowings | | | | | 138,045 | | | | 273,954 | | |
| Stockholders' equity | | | | | 796,676 | | | | 745,489 | | |
| | | | | | | | |
| | Three Months Ended
June 30, | | Six Months Ended
June 30, |
| | 2021 | | 2020 | | 2021 | | 2020 |
| Selected Average Balance Sheet Data | | | | | | | |
| Loans | $ | 6,080,408 | | | | $ | 5,572,865 | | | | $ | 6,085,057 | | | | $ | 5,390,481 | | |
| Investment securities | 1,066,086 | | | | 891,037 | | | | 1,034,956 | | | | 885,512 | | |
| Interest-earning assets | 7,342,952 | | | | 6,650,993 | | | | 7,286,856 | | | | 6,391,998 | | |
| Total assets | 7,784,385 | | | | 7,137,529 | | | | 7,744,714 | | | | 6,851,415 | | |
| Noninterest-bearing demand deposits | 1,660,825 | | | | 1,364,785 | | | | 1,603,714 | | | | 1,237,212 | | |
| Savings deposits | 639,540 | | | | 525,224 | | | | 622,331 | | | | 511,011 | | |
| Interest-bearing transaction accounts | 3,495,610 | | | | 2,908,299 | | | | 3,442,116 | | | | 2,869,539 | | |
| Time deposits | 880,079 | | | | 1,093,760 | | | | 962,042 | | | | 983,379 | | |
| Total deposits | 6,676,054 | | | | 5,892,068 | | | | 6,630,203 | | | | 5,601,141 | | |
| Short-term borrowings | 85,325 | | | | 82,694 | | | | 79,441 | | | | 121,260 | | |
| Other borrowings | 140,162 | | | | 273,904 | | | | 141,703 | | | | 275,828 | | |
| Total interest-bearing liabilities | 5,240,716 | | | | 4,883,881 | | | | 5,247,633 | | | | 4,761,017 | | |
| Stockholders' equity | 781,299 | | | | 742,050 | | | | 775,808 | | | | 739,385 | | |
| | | | | | | | |
(1) Periods prior to December 31, 2020 do not reflect the adoption of ASU 2016-13.
Lakeland Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
| | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| (in thousands, except per share data) | | 2021 | | 2020 | | 2021 | | 2020 |
| Interest Income | | | | | | | | |
| Loans and fees | | $ | 60,529 | | | $ | 55,825 | | | $ | 119,307 | | | $ | 113,682 | |
| Federal funds sold and interest-bearing deposits with banks | | 52 | | | 36 | | | 89 | | | 195 | |
| Taxable investment securities and other | | 4,029 | | | 4,763 | | | 8,010 | | | 9,992 | |
| Tax-exempt investment securities | | 631 | | | 349 | | | 1,243 | | | 681 | |
| Total Interest Income | | 65,241 | | | 60,973 | | | 128,649 | | | 124,550 | |
| Interest Expense | | | | | | | | |
| Deposits | | 4,238 | | | 8,094 | | | 9,362 | | | 18,957 | |
| Federal funds purchased and securities sold under agreements to repurchase | | 16 | | | 75 | | | 39 | | | 504 | |
| Other borrowings | | 1,247 | | | 2,285 | | | 2,780 | | | 4,671 | |
| Total Interest Expense | | 5,501 | | | 10,454 | | | 12,181 | | | 24,132 | |
| Net Interest Income | | 59,740 | | | 50,519 | | | 116,468 | | | 100,418 | |
| Provision for credit losses (1) | | (5,959 | ) | | 9,000 | | | (8,601 | ) | | 18,223 | |
| Net Interest Income after Provision for Credit Losses | | 65,699 | | | 41,519 | | | 125,069 | | | 82,195 | |
| Noninterest Income | | | | | | | | |
| Service charges on deposit accounts | | 2,445 | | | 1,875 | | | 4,741 | | | 4,375 | |
| Commissions and fees | | 1,755 | | | 1,196 | | | 3,353 | | | 2,836 | |
| Income on bank owned life insurance | | 643 | | | 665 | | | 1,277 | | | 1,330 | |
| Gain (loss) on equity securities | | 11 | | | 198 | | | (133 | ) | | (455 | ) |
| Gains on sales of loans | | 607 | | | 710 | | | 1,315 | | | 1,125 | |
| Gains on sales of investment securities, net | | 9 | | | — | | | 9 | | | 342 | |
| Swap income | | 72 | | | 767 | | | 634 | | | 3,610 | |
| Other income | | (273 | ) | | 70 | | | (168 | ) | | 329 | |
| Total Noninterest Income | | 5,269 | | | 5,481 | | | 11,028 | | | 13,492 | |
| Noninterest Expense | | | | | | | | |
| Compensation and employee benefits | | 20,407 | | | 18,490 | | | 40,925 | | | 38,217 | |
| Premises and equipment | | 6,078 | | | 5,271 | | | 12,396 | | | 10,667 | |
| FDIC insurance | | 621 | | | 450 | | | 1,332 | | | 748 | |
| Data processing | | 1,299 | | | 1,436 | | | 2,554 | | | 2,689 | |
| Other operating expenses | | 5,692 | | | 5,815 | | | 10,793 | | | 11,645 | |
| Total Noninterest Expense | | 34,097 | | | 31,462 | | | 68,000 | | | 63,966 | |
| Income before provision for income taxes | | 36,871 | | | 15,538 | | | 68,097 | | | 31,721 | |
| Provision for income taxes | | 9,464 | | | 3,687 | | | 17,515 | | | 7,478 | |
| Net Income | | $ | 27,407 | | | $ | 11,851 | | | $ | 50,582 | | | $ | 24,243 | |
| Per Share of Common Stock | | | | | | |
| Basic earnings | | $ | 0.53 | | | $ | 0.23 | | | $ | 0.99 | | | $ | 0.47 | |
| Diluted earnings | | $ | 0.53 | | | $ | 0.23 | | | $ | 0.98 | | | $ | 0.47 | |
| Dividends | | $ | 0.135 | | | $ | 0.125 | | | $ | 0.260 | | | $ | 0.250 | |
(1) Periods prior to December 31, 2020 do not reflect the adoption of ASU 2016-13.
| Lakeland Bancorp, Inc. |
| Consolidated Balance Sheets |
| (dollars in thousands) | June 30, 2021 | | December 31, 2020 |
| | (Unaudited) | | |
| Assets | | | |
| Cash | $ | 358,052 | | | $ | 262,327 | |
| Interest-bearing deposits due from banks | 17,348 | | | 7,763 | |
| Total cash and cash equivalents | 375,400 | | | 270,090 | |
| Investment securities available for sale, at estimated fair value (allowance for credit losses of $21 at June 30, 2021 and $2 at December 31, 2020 ) | 988,673 | | | 855,746 | |
| Investment securities held to maturity (estimated fair value of $96,311 at June 30, 2021 and $93,868 at December 31, 2020, allowance for credit losses of $137 at June 30, 2021 and none at December 31, 2020) | 94,278 | | | 90,766 | |
| Equity securities, at fair value | 15,440 | | | 14,694 | |
| Federal Home Loan Bank and other membership stocks, at cost | 9,210 | | | 11,979 | |
| Loans held for sale | 816 | | | 1,335 | |
| Loans, net of deferred fees | 5,988,832 | | | 6,021,232 | |
| Less: Allowance for credit losses | 60,389 | | | 71,124 | |
| Net loans | 5,928,443 | | | 5,950,108 | |
| Premises and equipment, net | 47,641 | | | 48,495 | |
| Operating lease right-of-use assets | 15,513 | | | 16,772 | |
| Accrued interest receivable | 18,309 | | | 19,339 | |
| Goodwill | 156,277 | | | 156,277 | |
| Other identifiable intangible assets | 2,841 | | | 3,288 | |
| Bank owned life insurance | 116,398 | | | 115,115 | |
| Other assets | 84,999 | | | 110,293 | |
| Total Assets | $ | 7,854,238 | | | $ | 7,664,297 | |
| Liabilities and Stockholders' Equity | | | |
| Liabilities | | | |
| Deposits: | | | |
| Noninterest-bearing | $ | 1,683,887 | | | $ | 1,510,224 | |
| Savings and interest-bearing transaction accounts | 4,198,709 | | | 3,867,303 | |
| Time deposits $250 thousand and under | 685,583 | | | 895,056 | |
| Time deposits over $250 thousand | 146,856 | | | 183,200 | |
| Total deposits | 6,715,035 | | | 6,455,783 | |
| Federal funds purchased and securities sold under agreements to repurchase | 100,190 | | | 169,560 | |
| Other borrowings | 25,000 | | | 25,000 | |
| Subordinated debentures | 113,045 | | | 118,257 | |
| Operating lease liabilities | 16,847 | | | 18,183 | |
| Other liabilities | 87,445 | | | 113,730 | |
| Total Liabilities | 7,057,562 | | | 6,900,513 | |
| Stockholders' Equity | | | |
| Common stock, no par value; authorized 100,000,000 shares; issued 50,732,384 shares and outstanding 50,601,349 shares at June 30, 2021 and issued 50,610,681 shares and outstanding 50,479,646 shares at December 31, 2020 | 563,980 | | | 562,421 | |
| Retained earnings | 228,803 | | | 191,418 | |
| Treasury shares, at cost, 131,035 shares at June 30, 2021 and December 31, 2020 | (1,452 | ) | | (1,452 | ) |
| Accumulated other comprehensive income | 5,345 | | | 11,397 | |
| Total Stockholders' Equity | 796,676 | | | 763,784 | |
| Total Liabilities and Stockholders' Equity | $ | 7,854,238 | | | $ | 7,664,297 | |
| Lakeland Bancorp, Inc. |
| Financial Highlights |
| (Unaudited) |
| | | | | | |
| | For the Quarter Ended |
| | June 30, | March 31, | December 31, | September 30, | June 30, |
| (dollars in thousands, except per share data) | 2021 | 2021 | 2020 | 2020 | 2020 |
| Income Statement | | | | | |
| Net interest income | $ | 59,740 | | | $ | 56,728 | | | $ | 55,135 | | | $ | 52,134 | | | $ | 50,519 | | |
| Provision for credit losses (1) | 5,959 | | | 2,642 | | | (789 | ) | | (8,000 | ) | | (9,000 | ) | |
| Gains on sales of investment securities | 9 | | | — | | | 871 | | | — | | | — | | |
| Gains on sales of loans | 607 | | | 708 | | | 760 | | | 1,437 | | | 710 | | |
| Gain (loss) on equity securities | 11 | | | (144 | ) | | 73 | | | (170 | ) | | 198 | | |
| Other noninterest income | 4,642 | | | 5,195 | | | 5,141 | | | 5,506 | | | 4,573 | | |
| Long-term debt prepayment fee | — | | | — | | | (3,777 | ) | | — | | | — | | |
| Other noninterest expense | (34,097 | ) | | (33,903 | ) | | (33,168 | ) | | (32,097 | ) | | (31,462 | ) | |
| Pretax income | 36,871 | | | 31,226 | | | 24,246 | | | 18,810 | | | 15,538 | | |
| Provision for income taxes | (9,464 | ) | | (8,051 | ) | | (5,398 | ) | | (4,383 | ) | | (3,687 | ) | |
| Net income | $ | 27,407 | | | $ | 23,175 | | | $ | 18,848 | | | $ | 14,427 | | | $ | 11,851 | | |
| | | | | | |
| Basic earnings per common share | $ | 0.53 | | | $ | 0.45 | | | $ | 0.37 | | | $ | 0.28 | | | $ | 0.23 | | |
| Diluted earnings per common share | $ | 0.53 | | | $ | 0.45 | | | $ | 0.37 | | | $ | 0.28 | | | $ | 0.23 | | |
| Dividends paid per common share | $ | 0.135 | | | $ | 0.125 | | | $ | 0.125 | | | $ | 0.125 | | | $ | 0.125 | | |
| Dividends paid | $ | 6,828 | | | $ | 6,369 | | | $ | 6,364 | | | $ | 6,365 | | | $ | 6,365 | | |
| Weighted average shares - basic | 50,636 | | | 50,576 | | | 50,527 | | | 50,526 | | | 50,522 | | |
| Weighted average shares - diluted | 50,858 | | | 50,780 | | | 50,672 | | | 50,620 | | | 50,593 | | |
| | | | | | |
| Selected Operating Ratios | | | | | |
| Annualized return on average assets | 1.41 | | % | 1.22 | | % | 0.98 | | % | 0.76 | | % | 0.67 | | % |
| Annualized return on average common equity | 14.07 | | % | 12.20 | | % | 9.96 | | % | 7.64 | | % | 6.42 | | % |
| Annualized return on average tangible common equity (2) | 17.67 | | % | 15.39 | | % | 12.64 | | % | 9.71 | | % | 8.19 | | % |
| Annualized net interest margin | 3.27 | | % | 3.19 | | % | 3.08 | | % | 2.96 | | % | 3.06 | | % |
| Efficiency ratio (2) | 51.98 | | % | 53.75 | | % | 53.74 | | % | 53.96 | | % | 55.62 | | % |
| Common stockholders' equity to total assets | 10.14 | | % | 9.88 | | % | 9.97 | | % | 10.02 | | % | 9.96 | | % |
| Tangible common equity to tangible assets (2) | 8.29 | | % | 8.00 | | % | 8.05 | | % | 8.06 | | % | 7.99 | | % |
| Tier 1 risk-based ratio | 10.78 | | % | 10.47 | | % | 10.22 | | % | 10.34 | | % | 10.45 | | % |
| Total risk-based ratio | 13.11 | | % | 13.02 | | % | 12.85 | | % | 12.93 | | % | 12.98 | | % |
| Tier 1 leverage ratio | 8.70 | | % | 8.51 | | % | 8.37 | | % | 8.36 | | % | 8.69 | | % |
| Common equity tier 1 capital ratio | 10.29 | | % | 9.98 | | % | 9.73 | | % | 9.83 | | % | 9.93 | | % |
| Book value per common share | $ | 15.74 | | | $ | 15.18 | | | $ | 15.13 | | | $ | 14.93 | | | $ | 14.77 | | |
| Tangible book value per common share (2) | $ | 12.60 | | | $ | 12.03 | | | $ | 11.97 | | | $ | 11.77 | | | $ | 11.60 | | |
(1) Periods prior to December 31, 2020 do not reflect the adoption of ASU 2016-13.
(2) See Supplemental Information - Non-GAAP Financial Measures
| Lakeland Bancorp, Inc. |
| Financial Highlights |
| (Unaudited) |
| | For the Quarter Ended |
| | June 30, | March 31, | December 31, | September 30, | June 30, |
| (dollars in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 |
| Selected Balance Sheet Data at Period End | | | | |
| Loans | $ | 5,988,832 | | $ | 6,108,946 | | $ | 6,021,232 | | $ | 5,843,591 | | $ | 5,756,155 | |
| Allowance for credit losses on loans (1) | 60,389 | | 67,252 | | 71,124 | | 65,242 | | 57,839 | |
| Investment securities | 1,107,601 | | 1,078,750 | | 973,185 | | 909,535 | | 957,985 | |
| Total assets | 7,854,238 | | 7,771,761 | | 7,664,297 | | 7,522,184 | | 7,488,516 | |
| Total deposits | 6,715,035 | | 6,635,226 | | 6,455,783 | | 6,266,516 | | 6,125,502 | |
| Short-term borrowings | 100,190 | | 111,999 | | 169,560 | | 97,874 | | 183,116 | |
| Other borrowings | 138,045 | | 143,267 | | 143,257 | | 253,359 | | 273,954 | |
| Stockholders' equity | 796,676 | | 768,065 | | 763,784 | | 753,572 | | 745,489 | |
| | | | | | |
| Loans | | | | | |
| Non-owner occupied commercial | $ | 2,330,376 | | $ | 2,375,024 | | $ | 2,398,946 | | | |
| Owner occupied commercial | 870,535 | | 857,506 | | 827,092 | | | |
| Multifamily | 902,394 | | 858,168 | | 813,225 | | | |
| Non-owner occupied residential | 189,765 | | 195,534 | | 200,229 | | | |
| Total commercial, secured by real estate (1) | $ | 4,293,070 | | $ | 4,286,232 | | $ | 4,239,492 | | $ | 4,042,946 | | $ | 3,955,045 | |
| Commercial, industrial and other | 358,659 | | 394,416 | | 433,553 | | 418,813 | | 393,017 | |
| Construction | 335,167 | | 291,252 | | 266,883 | | 275,716 | | 298,180 | |
| Paycheck Protection Program | 207,045 | | 346,150 | | 284,636 | | 325,115 | | 325,999 | |
| Equipment financing | 121,096 | | 119,428 | | 116,690 | | 118,320 | | 117,569 | |
| Residential mortgages | 391,589 | | 385,778 | | 377,380 | | 343,317 | | 335,135 | |
| Consumer and home equity | 282,206 | | 285,690 | | 302,598 | | 319,364 | | 331,210 | |
| Total loans | $ | 5,988,832 | | $ | 6,108,946 | | $ | 6,021,232 | | $ | 5,843,591 | | $ | 5,756,155 | |
| | | | | | |
| Deposits | | | | | |
| Noninterest-bearing | $ | 1,683,887 | | $ | 1,631,942 | | $ | 1,510,224 | | $ | 1,474,847 | | $ | 1,486,273 | |
| Savings and interest-bearing transaction accounts | 4,198,709 | | 4,049,914 | | 3,867,303 | | 3,647,328 | | 3,510,723 | |
| Time deposits | 832,439 | | 953,370 | | 1,078,256 | | 1,144,341 | | 1,128,506 | |
| Total deposits | $ | 6,715,035 | | $ | 6,635,226 | | $ | 6,455,783 | | $ | 6,266,516 | | $ | 6,125,502 | |
| | | | | | |
| Total loans to total deposits ratio | 89.2 | % | 92.1 | % | 93.3 | % | 93.3 | % | 94 | % |
| | | | | | |
| Selected Average Balance Sheet Data | | | | | |
| Loans | $ | 6,080,408 | | $ | 6,089,757 | | $ | 5,939,904 | | $ | 5,775,093 | | $ | 5,572,865 | |
| Investment securities | 1,066,086 | | 1,003,479 | | 912,723 | | 873,066 | | 891,037 | |
| Interest-earning assets | 7,342,952 | | 7,230,136 | | 7,137,884 | | 7,009,939 | | 6,650,993 | |
| Total assets | 7,784,385 | | 7,704,603 | | 7,625,458 | | 7,516,069 | | 7,137,529 | |
| Noninterest-bearing demand deposits | 1,660,825 | | 1,545,968 | | 1,499,093 | | 1,475,422 | | 1,364,785 | |
| Savings deposits | 639,540 | | 604,931 | | 571,794 | | 548,662 | | 525,224 | |
| Interest-bearing transaction accounts | 3,495,610 | | 3,388,027 | | 3,313,556 | | 3,086,260 | | 2,908,299 | |
| Time deposits | 880,079 | | 1,044,915 | | 1,112,053 | | 1,176,181 | | 1,093,760 | |
| Total deposits | 6,676,054 | | 6,583,841 | | 6,496,496 | | 6,286,525 | | 5,892,068 | |
| Short-term borrowings | 85,325 | | 73,492 | | 68,962 | | 58,845 | | 82,694 | |
| Other borrowings | 140,162 | | 143,261 | | 155,943 | | 269,093 | | 273,904 | |
| Total interest-bearing liabilities | 5,240,716 | | 5,254,626 | | 5,222,308 | | 5,139,042 | | 4,883,881 | |
| Stockholders' equity | 781,299 | | 770,255 | | 753,059 | | 751,099 | | 742,050 | |
(1) Periods prior to December 31, 2020 do not reflect the adoption of ASU 2016-13.
| Lakeland Bancorp, Inc. |
| Financial Highlights |
| (Unaudited) |
| | For the Quarter Ended |
| | June 30, | March 31, | December 31, | September 30, | June 30, |
| (dollars in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 |
| Average Annualized Yields (Taxable Equivalent Basis) and Costs | | | |
| Assets | | | | | |
| Loans | 3.99 | | % | 3.91 | | % | 3.92 | | % | 3.91 | | % | 4.03 | | % |
| Taxable investment securities and other | 1.72 | | % | 1.81 | | % | 1.84 | | % | 2.09 | | % | 2.31 | | % |
| Tax-exempt securities | 2.50 | | % | 2.54 | | % | 2.51 | | % | 2.55 | | % | 2.70 | | % |
| Federal funds sold and interest-bearing cash accounts | 0.11 | | % | 0.11 | | % | 0.09 | | % | 0.10 | | % | 0.08 | | % |
| Total interest-earning assets | 3.57 | | % | 3.56 | | % | 3.51 | | % | 3.49 | | % | 3.69 | | % |
| Liabilities | | | | | |
| Savings accounts | 0.05 | | % | 0.05 | | % | 0.05 | | % | 0.06 | | % | 0.07 | | % |
| Interest-bearing transaction accounts | 0.32 | | % | 0.34 | | % | 0.38 | | % | 0.44 | | % | 0.55 | | % |
| Time deposits | 0.61 | | % | 0.83 | | % | 1.01 | | % | 1.19 | | % | 1.48 | | % |
| Borrowings | 2.22 | | % | 2.87 | | % | 2.84 | | % | 2.73 | | % | 2.62 | | % |
| Total interest-bearing liabilities | 0.42 | | % | 0.51 | | % | 0.59 | | % | 0.72 | | % | 0.86 | | % |
| Net interest spread (taxable equivalent basis) | 3.15 | | % | 3.05 | | % | 2.92 | | % | 2.77 | | % | 2.83 | | % |
| Annualized net interest margin (taxable equivalent basis) | 3.27 | | % | 3.19 | | % | 3.08 | | % | 2.96 | | % | 3.06 | | % |
| Annualized cost of deposits | 0.25 | | % | 0.32 | | % | 0.37 | | % | 0.44 | | % | 0.55 | | % |
| Asset Quality Data | | | | | |
| Allowance for Credit Losses on Loans | | | | | |
| Balance at beginning of period | $ | 67,252 | | | $ | 71,124 | | | $ | 65,242 | | | $ | 57,839 | | | $ | 48,884 | | |
| Impact of adopting ASU 2016-13 (1) | — | | | — | | | 6,656 | | | — | | | — | | |
| Provision for credit losses on loans | (5,314 | ) | | (2,808 | ) | | (246 | ) | | 8,000 | | | 9,000 | | |
| Charge-offs | (1,862 | ) | | (1,270 | ) | | (746 | ) | | (682 | ) | | (142 | ) | |
| Recoveries | 313 | | | 206 | | | 218 | | | 85 | | | 97 | | |
| Balance at end of period | $ | 60,389 | | | $ | 67,252 | | | $ | 71,124 | | | $ | 65,242 | | | $ | 57,839 | | |
| | | | | | |
| Net Loan Charge-Offs (Recoveries) | | | | | |
| Commercial, real estate | $ | 1,590 | | | $ | 843 | | | $ | (47 | ) | | $ | 298 | | | $ | (36 | ) | |
| Commercial, industrial and other | 5 | | | 221 | | | 478 | | | 173 | | | (13 | ) | |
| Equipment financing | 4 | | | 83 | | | 64 | | | 95 | | | (11 | ) | |
| Residential mortgages | (82 | ) | | (58 | ) | | — | | | (1 | ) | | — | | |
| Consumer and home equity | 32 | | | (25 | ) | | 33 | | | 32 | | | 105 | | |
| Net charge-offs (recoveries) | $ | 1,549 | | | $ | 1,064 | | | $ | 528 | | | $ | 597 | | | $ | 45 | | |
| Non-Performing Assets (2) | | | | | |
| Commercial, real estate | $ | 20,594 | | | $ | 23,984 | | | $ | 35,091 | | | $ | 26,145 | | | $ | 25,615 | | |
| Commercial, industrial and other | 1,449 | | | 2,252 | | | 2,633 | | | 1,484 | | | 1,546 | | |
| Equipment financing | 264 | | | 293 | | | 327 | | | 444 | | | 400 | | |
| Residential mortgages | — | | | 2,323 | | | 2,469 | | | 2,695 | | | 2,860 | | |
| Consumer and home equity | 308 | | | 2,274 | | | 2,243 | | | 2,322 | | | 2,432 | | |
| Total non-accrual loans | 22,615 | | | 31,126 | | | 42,763 | | | 33,090 | | | 32,853 | | |
| Property acquired through foreclosure or repossession | — | | | — | | | — | | | — | | | 354 | | |
| Total non-performing assets | $ | 22,615 | | | $ | 31,126 | | | $ | 42,763 | | | $ | 33,090 | | | $ | 33,207 | | |
| Loans past due 90 days or more and still accruing | $ | — | | | $ | — | | | $ | 1 | | | $ | 165 | | | $ | 58 | | |
| Loans restructured and still accruing | $ | 3,595 | | | $ | 3,799 | | | $ | 3,856 | | | $ | 4,299 | | | $ | 4,667 | | |
| Ratio of allowance for loan losses to total loans | 1.01 | | % | 1.10 | | % | 1.18 | | % | 1.11 | | % | 1.00 | | % |
| Total non-accrual loans to total loans | 0.38 | | % | 0.51 | | % | 0.71 | | % | 0.57 | | % | 0.57 | | % |
| Total non-performing assets to total assets | 0.29 | | % | 0.40 | | % | 0.56 | | % | 0.44 | | % | 0.44 | | % |
| Annualized net charge-offs to average loans | 0.10 | | % | 0.07 | | % | 0.04 | | % | 0.04 | | % | — | | % |
(1) Periods prior to December 31, 2020 do not reflect the adoption of ASU 2016-13
(2) Includes non-accrual purchased credit deteriorated loans from December 31, 2020 forward
| Lakeland Bancorp, Inc. |
| Supplemental Information - Non-GAAP Financial Measures |
| (Unaudited) |
| | At or for the Quarter Ended |
| | June 30, | March 31, | December 31, | September 30, | June 30, |
| (dollars in thousands, except per share amounts) | 2021 | 2021 | 2020 | 2020 | 2020 |
| Calculation of Tangible Book Value Per Common Share | | | | |
| Total common stockholders' equity at end of period - GAAP | $ | 796,676 | | | $ | 768,065 | | | $ | 763,784 | | | $ | 753,572 | | | $ | 745,489 | | |
| Less: Goodwill | 156,277 | | | 156,277 | | | 156,277 | | | 156,277 | | | 156,277 | | |
| Less: Other identifiable intangible assets | 2,841 | | | 3,063 | | | 3,288 | | | 3,538 | | | 3,788 | | |
| Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 637,558 | | | $ | 608,725 | | | $ | 604,219 | | | $ | 593,757 | | | $ | 585,424 | | |
| Shares outstanding at end of period | 50,601 | | | 50,598 | | | 50,480 | | | 50,468 | | | 50,463 | | |
| Book value per share - GAAP | $ | 15.74 | | | $ | 15.18 | | | $ | 15.13 | | | $ | 14.93 | | | $ | 14.77 | | |
| Tangible book value per share - Non-GAAP | $ | 12.60 | | | $ | 12.03 | | | $ | 11.97 | | | $ | 11.77 | | | $ | 11.60 | | |
| Calculation of Tangible Common Equity to Tangible Assets | | | |
| Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 637,558 | | | $ | 608,725 | | | $ | 604,219 | | | $ | 593,757 | | | $ | 585,424 | | |
| Total assets at end of period - GAAP | $ | 7,854,238 | | | $ | 7,771,761 | | | $ | 7,664,297 | | | $ | 7,522,184 | | | $ | 7,488,516 | | |
| Less: Goodwill | 156,277 | | | 156,277 | | | 156,277 | | | 156,277 | | | 156,277 | | |
| Less: Other identifiable intangible assets | 2,841 | | | 3,063 | | | 3,288 | | | 3,538 | | | 3,788 | | |
| Total tangible assets at end of period - Non-GAAP | $ | 7,695,120 | | | $ | 7,612,421 | | | $ | 7,504,732 | | | $ | 7,362,369 | | | $ | 7,328,451 | | |
| Common equity to assets - GAAP | 10.14 | | % | 9.88 | | % | 9.97 | | % | 10.02 | | % | 9.96 | | % |
| Tangible common equity to tangible assets - Non-GAAP | 8.29 | | % | 8.00 | | % | 8.05 | | % | 8.06 | | % | 7.99 | | % |
| Calculation of Return on Average Tangible Common Equity | | | |
| Net income - GAAP | $ | 27,407 | | | $ | 23,175 | | | $ | 18,848 | | | $ | 14,427 | | | $ | 11,851 | | |
| Total average common stockholders' equity - GAAP | $ | 781,299 | | | $ | 770,255 | | | $ | 753,059 | | | $ | 751,099 | | | $ | 742,050 | | |
| Less: Average goodwill | 156,277 | | | 156,277 | | | 156,277 | | | 156,277 | | | 156,277 | | |
| Less: Average other identifiable intangible assets | 2,979 | | | 3,192 | | | 3,433 | | | 3,689 | | | 3,942 | | |
| Total average tangible common stockholders' equity - Non-GAAP | $ | 622,043 | | | $ | 610,786 | | | $ | 593,349 | | | $ | 591,133 | | | $ | 581,831 | | |
| Return on average common stockholders' equity - GAAP | 14.07 | | % | 12.20 | | % | 9.96 | | % | 7.64 | | % | 6.42 | | % |
| Return on average tangible common stockholders' equity - Non-GAAP | 17.67 | | % | 15.39 | | % | 12.64 | | % | 9.71 | | % | 8.19 | | % |
| Calculation of Efficiency Ratio | | | | | |
| Total noninterest expense | $ | 34,097 | | | $ | 33,903 | | | $ | 36,945 | | | $ | 32,097 | | | $ | 31,462 | | |
| Amortization of core deposit intangibles | (221 | ) | | (226 | ) | | (249 | ) | | (250 | ) | | (261 | ) | |
| Long term debt prepayment fees | — | | | — | | | (3,777 | ) | | — | | | — | | |
| Noninterest expense, as adjusted | $ | 33,876 | | | $ | 33,677 | | | $ | 32,919 | | | $ | 31,847 | | | $ | 31,201 | | |
| Net interest income | $ | 59,740 | | | $ | 56,728 | | | $ | 55,135 | | | $ | 52,134 | | | $ | 50,519 | | |
| Total noninterest income | 5,269 | | | 5,759 | | | 6,845 | | | 6,773 | | | 5,481 | | |
| Total revenue | 65,009 | | | 62,487 | | | 61,980 | | | 58,907 | | | 56,000 | | |
| Tax-equivalent adjustment on municipal securities | 167 | | | 163 | | | 149 | | | 108 | | | 93 | | |
| Gains on sales of investment securities | (9 | ) | | — | | | (871 | ) | | — | | | — | | |
| Total revenue, as adjusted | $ | 65,167 | | | $ | 62,650 | | | $ | 61,258 | | | $ | 59,015 | | | $ | 56,093 | | |
| Efficiency ratio - Non-GAAP | 51.98 | | % | 53.75 | | % | 53.74 | | % | 53.96 | | % | 55.62 | | % |
| Lakeland Bancorp, Inc. |
| Supplemental Information - Non-GAAP Financial Measures |
| (Unaudited) |
| | For the Six Months Ended June 30, |
| (dollars in thousands) | 2021 | | 2020 |
| Calculation of Return on Average Tangible Common Equity | | | |
| Net income - GAAP | $ | 50,582 | | | | $ | 24,243 | | |
| | | | |
| Total average common stockholders' equity - GAAP | $ | 775,808 | | | | $ | 739,385 | | |
| Less: Average goodwill | 156,277 | | | | 156,277 | | |
| Less: Average other identifiable intangible assets | 3,085 | | | | 4,073 | | |
| Total average tangible common stockholders' equity - Non-GAAP | $ | 616,446 | | | | $ | 579,035 | | |
| Return on average common stockholders' equity - GAAP | 13.15 | | % | | 6.59 | | % |
| Return on average tangible common stockholders' equity - Non-GAAP | 16.55 | | % | | 8.42 | | % |
| | | | |
| Calculation of Efficiency Ratio | | | |
| Total noninterest expense | $ | 68,000 | | | | $ | 63,966 | | |
| Amortization of core deposit intangibles | (447 | ) | | | (526 | ) | |
| Long-term debt prepayment fee | — | | | | (356 | ) | |
| Noninterest expense, as adjusted | $ | 67,553 | | | | $ | 63,084 | | |
| | | | |
| Net interest income | $ | 116,468 | | | | $ | 100,418 | | |
| Noninterest income | 11,028 | | | | 13,492 | | |
| Total revenue | $ | 127,496 | | | | $ | 113,910 | | |
| Tax-equivalent adjustment on municipal securities | 330 | | | | 181 | | |
| Gains on sales of investment securities | (9 | ) | | | (342 | ) | |
| Total revenue, as adjusted | $ | 127,817 | | | | $ | 113,749 | | |
| Efficiency ratio - Non-GAAP | 52.85 | | % | | 55.46 | | % |
