FOR IMMEDIATE RELEASE


                                             Contact:  John Fredericks
                                                       (201) 697-2000
                                                                 or
                                                       Paul P. Lubertazzi
                                                       (201) 882-0800

Oak Ridge and  Montville,  NJ September  16, 1997 - Lakeland  Bancorp,  Inc. and
Metropolitan  State  Bank  jointly  announced  today  that  they  have  signed a
definitive  Agreement by which Lakeland Bancorp will acquire  Metropolitan State
Bank,  a two- branch bank  headquartered  in  Montville.  The merger will expand
Lakeland's presence in Morris County.

Under the terms of the  Agreement,  Metropolitan  State  Bank will  continue  to
operate  as a  separate  bank  under  Lakeland's  holding  company.  Subject  to
adjustment,  each common share of Metropolitan  State Bank will be exchanged for
$26.20 in shares of Lakeland  Bancorp  stock.  Based on today's price of $27.00,
each share of Metropolitan would receive 0.9704 shares of Lakeland Bancorp stock
for a total value of the transaction of $17.8 million.

John  Fredericks,  President of Lakeland  Bancorp said that  "Metropolitan  is a
quality  institution with the same customer  philosophy as Lakeland and serves a
growing market that Lakeland has included in its expansion  plans for some time"
and he is "pleased that they had elected to join Lakeland as our second bank.

Paul P. Lubertazzi,  Chairman and Chief Executive Officer of Metropolitan  State
Bank,  stated that he is "very pleased to be joining with  Lakeland  Bancorp and
look  forward  to the  benefits  this  affiliation  offers to our  shareholders,
customers and employees."

The  acquisition  is  condition  upon  necessary   regulatory  and  shareholders
approvals,  satisfactory due diligence review and other customary conditions. It
is anticipated that the merger will close during the first half of 1998.

Metropolitan  State Bank had total  assets of  $85,500,000  and total  equity of
$7,093,000 at June 30, 1997. Metropolitan earned $352,000 or $0.52 per share for
the first six months of 1997.

Lakeland  Bancorp is the holding company for Lakeland State Bank and at June 30,
1997, had total assets of $402,733,000 and total equity of $38,919,000. Lakeland
Bancorp earned $2,538,000 or $0.75 per share for the first six months of 1997.