LBAI Lakeland Bancorp Inc

Lakeland Bancorp, Inc. (NASDAQ:LBAI) (the “Company”) reported the following results for the fourth quarter of 2015 and for the year ended December 31, 2015:

• Net income for the fourth quarter of 2015 was $8.5 million, a 7% increase compared to $7.9 million for the fourth quarter of 2014.  Earnings per diluted share in the fourth quarter of 2015 was $0.22, compared to $0.21 in the fourth quarter of 2014.  Excluding the impact of $822 thousand in merger related expenses, net income for the fourth quarter of 2015 was $9.2 million, or $0.24 per diluted share. 

• For the fourth quarter of 2015, annualized return on average assets was 0.89%, annualized return on average common equity was 8.40%, and annualized return on average tangible common equity was 11.64%.  Tangible book value per common share at December 31, 2015 was $7.62, an increase of 8% compared to December 31, 2014. 

• Net income for the year ended December 31, 2015 was $32.5 million, or $0.85 per diluted share, a 4% increase compared to $31.1 million, or $0.82 per diluted share, for 2014.  Excluding the impact of $1.6 million in net non-routine transactions, described below, net income for the year ended December 31, 2015 was $33.8 million, an 8% increase compared to 2014, or $0.88 per diluted share.  For 2015, return on average assets was 0.89%, the return on average common equity was 8.28%, and the return on average tangible common equity was 11.58%.

• The $1.6 million in net non-routine transactions in 2015 included $1.2 million of expenses related to the Pascack Bancorp, Inc. (“Pascack Bancorp”) merger, $2.4 million of prepayment fees from the repayment of $20.0 million of 4.44% long-term debt, $1.8 million of realized gain from the redemption of $10.0 million of trust preferred debt, and $173 thousand in related net realized gains on the sale of securities.  Merger expenses primarily include the cost of legal, accounting, and investment banking services as well as technology costs.

• During the fourth quarter of 2015, Pascack Bancorp shareholders approved the merger of Pascack Bancorp with and into the Company.  This merger, along with the merger of Pascack Community Bank with and into Lakeland Bank, was consummated on January 7, 2016, adding approximately $390 million in total assets to the Company.  The Company also acquired eight branches in the merger.  The Company intends to close a total of three branches in overlapping areas, which will result in a net total of 53 branches for Lakeland Bank.

• At December 31, 2015, loans totaled $2.97 billion, an increase of $114.2 million, or 4%, from September 30, 2015, and $312.3 million, or 12%, compared to December 31, 2014.  The annual increase was primarily due to an increase in commercial real estate loans of $285.9 million, or 18%, and commercial, industrial and other loans of $68.8 million, or 29%. 

• Total deposits were $3.0 billion at December 31, 2015, an increase of $75.9 million, or 3%, from September 30, 2015, and $204.8 million, or 7%, since December 31, 2014.  Noninterest bearing demand deposits, which totaled $693.7 million at December 31, 2015, increased by $47.7 million, or 7%, from December 31, 2014.  Noninterest bearing demand deposits represented 23% of total deposits at December 31, 2015.

• On January 26, 2016, the Company declared a quarterly cash dividend of $0.085 per common share, payable on February 17, 2016 to holders of record as of the close of business on February 10, 2016.

            Thomas J. Shara, Lakeland Bancorp’s President and CEO said, “We continued to successfully execute on our strategic growth initiatives during 2015.  By adding new lending teams and establishing two Loan Production Offices, the Bank expanded geographically within New Jersey while entering New York State for the first time.  This helped to contribute to our 19% combined growth in commercial real estate and C&I loans.  In addition, we expanded our presence in the Bergen and Essex County markets with the acquisition of Pascack Bancorp, increasing Lakeland’s total assets to $4.2 billion.”

Earnings

Net Interest Income

Net interest income for the fourth quarter of 2015 was $30.1 million, as compared to $28.9 million for the same period in 2014, an increase of 4%.  For the year ended December 31, 2015, net interest income was $116.6 million compared to $113.6 million for 2014, a 3% increase.  

In the fourth quarter of 2015, annualized net interest margin (“NIM”) was 3.43%, which was one basis point higher than the third quarter.  This 3.43% included four basis points from prepayment fees and net interest recoveries that did not occur in the third quarter.  For 2015, NIM was 3.47%, compared to 3.64% for 2014.  This decrease in NIM was due primarily to a decline in the yield on commercial loans as they were originated and refinanced at lower rates in 2015.    

Noninterest Income

Noninterest income totaled $4.8 million for the fourth quarter of 2015, a 7% increase when compared to $4.5 million for the same period in 2014.  Noninterest income totaled $21.2 million for 2015, compared to $17.7 million for 2014.  Excluding the $1.8 million gain on debt extinguishment and $173 thousand net gain on sale of securities related to debt prepayments, total noninterest income totaling $19.2 million was $1.4 million greater than the same period in 2014.  The primary differences between 2015 and 2014 were $1.1 million in additional gains on the sale of loans, $0.6 million in death benefits as well as additional accrued income from bank owned life insurance policies, and $0.4 million in swap fee income received in 2015.  These increases were partially offset by $0.5 million in lower demand deposit account fees and overdraft charges in 2015.

Noninterest Expense  

Noninterest expense for the fourth quarter of 2015 was $22.1 million compared to $20.2 million for the same period in 2014.  Excluding the $822 thousand in merger related expenses, noninterest expense totaling $21.3 million was $1.1 million greater than the same period in 2014.  The provision for unfunded lending commitments increased $0.6 million from the fourth quarter of 2014 to the fourth quarter of 2015 due to an increase in unfunded commercial mortgage commitments.  Salary and benefit expenses increased $0.5 million, due primarily to the two new Loan Production Offices (“LPOs”) as well as year-over-year incremental salary increases, pension expenses, increasing benefit costs and benefit increases.  The fourth quarter 2015 efficiency ratio was 58.70%, as compared to 59.87% for the fourth quarter of 2014.

Noninterest expense for 2015 was $87.2 million, compared to $79.1 million for 2014.  Excluding the $1.2 million in merger related expenses and $2.4 million of debt prepayment fees, noninterest expense totaling $83.7 million was $4.5 million greater than the same period in 2014.  Additional salary and benefit expenses of $3.5 million comprised most of this increase, due primarily to the two new LPOs as well as year-over-year incremental salary increases, pension expenses, increasing benefit costs and benefit increases.  The provision for unfunded lending commitments increased $0.9 million due to an increase in unfunded commercial mortgage commitments. 

Financial Condition

At December 31, 2015, total assets were $3.87 billion, an increase of $331.2 million, or 9%, from December 31, 2014.  Included in this increase was a $312.3 million, or 12%, increase in total loans.  Total liabilities increased $310.1 million, primarily because of a $204.8 million increase in total deposits and $69.4 million increase in other borrowings from the addition of Federal Home Loan Bank borrowings.  Stockholders’ equity increased $21.1 million during 2015, primarily because of the $19.9 million increase in retained earnings from 2015 net income less quarterly dividends.

Asset Quality

At December 31, 2015, non-performing assets totaled $23.7 million (0.61% of total assets) compared to $21.7 million (0.61% of total assets) at December 31, 2014.  The allowance for loan and lease losses totaled $30.9 million at December 31, 2015 and represented 1.04% of total loans and leases.  In the fourth quarter of 2015, the Company had net charge-offs totaling $0.1 million, compared to $1.0 million in the fourth quarter of 2014.  For the year ended December 31, 2015, the Company had net charge-offs of $1.8 million (0.06% of average loans), as compared to $5.0 million (0.19% of average loans) for 2014.  The Company had no provision for loan and lease losses in the fourth quarter of 2015, compared to $1.6 million for the same period in 2014, $1.9 million for 2015, and $5.9 million for 2014.

Capital

At December 31, 2015, stockholders' equity was $400.5 million; and, book value per common share was $10.57.  Tangible book value per common share was $7.62 at December 31, 2015, an increase of 8% compared to December 31, 2014.  As of December 31, 2015, the Company’s leverage ratio was 8.70%.  Tier 1 and total risk based capital ratios were 10.53% and 11.61%, respectively.  The common equity tier 1 capital ratio was 9.54% and the tangible common equity ratio was 7.69%.  The 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, 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, competition, and failure to realize anticipated efficiencies and synergies from the mergers of Pascack Bancorp into the Company and Pascack Community Bank into Lakeland Bank.  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 and merger related expenses.  Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes securities gains and losses and gain on debt extinguishment, 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.

About Lakeland BankLakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc. (NASDAQ:LBAI), which has $4.2 billion in total assets including the merger with Pascack Bancorp.  The Bank operates 53 New Jersey branch offices in Bergen, Essex, Morris, Passaic, Somerset, Sussex, Union and Warren counties; five New Jersey regional commercial lending centers in Bernardsville, Montville, Newton, Teaneck and Wyckoff/Waldwick; and, two commercial loan production offices serving Middlesex and Monmouth counties in New Jersey and the Hudson Valley region of New York.  Lakeland Bank offers an extensive suite of financial products and services for businesses and consumers.  Visit LakelandBank.com for more information.

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
				Three Months Ended December 31,								Twelve Months Ended December 31,
(Dollars in thousands, except per share amounts)					2015				2014				2015				2014
INCOME STATEMENT
Net Interest Income				$	30,119			$	28,850			$	116,640			$	113,566
Provision for Loan and Lease Losses					-				(1,589	)			(1,942	)			(5,865	)
Other Noninterest Income					4,290				4,274				17,409				17,147
Gain on Investment Securities					51				-				241				2
Gain on Sale of Loans					437				195				1,681				573
Gain on Debt Extinguishment					-				-				1,830				-
Long-Term Debt Prepayment Fee					-				-				(2,407	)			-
Merger Related Expenses					(822	)			-				(1,152	)			-
Provision for Unfunded Lending Commitments					(506	)			89				(864	)			65
Other Noninterest Expense					(20,814	)			(20,267	)			(82,788	)			(79,200	)
Pretax Income					12,755				11,552				48,648				46,288
Tax Expense					(4,291	)			(3,613	)			(16,167	)			(15,159	)
Net Income				$	8,464			$	7,939			$	32,481			$	31,129
Basic Earnings per Common Share				$	0.22			$	0.21			$	0.85			$	0.82
Diluted Earnings per Common Share				$	0.22			$	0.21			$	0.85			$	0.82
Dividends per Common Share				$	0.085			$	0.075			$	0.330			$	0.293
Weighted Average Shares - Basic					37,865				37,765				37,844				37,749
Weighted Average Shares - Diluted					38,048				37,920				37,993				37,869
SELECTED OPERATING RATIOS
Annualized Return on Average Assets					0.89	%			0.90	%			0.89	%			0.92	%
Annualized Return on Average Common Equity					8.40	%			8.35	%			8.28	%			8.48	%
Annualized Return on Average Tangible Common Equity (1)					11.64	%			11.87	%			11.58	%			12.21	%
Annualized Return on Interest Earning Assets					3.76	%			3.87	%			3.79	%			3.92	%
Annualized Cost of Interest Bearing Liabilities					0.44	%			0.39	%			0.43	%			0.38	%
Annualized Net Interest Spread					3.32	%			3.48	%			3.36	%			3.54	%
Annualized Net Interest Margin					3.43	%			3.58	%			3.47	%			3.64	%
Efficiency Ratio (1)					58.70	%			59.87	%			60.18	%			59.35	%
Stockholders' Equity to Total Assets													10.35	%			10.72	%
Book Value per Common Share												$	10.57			$	10.01
Tangible Book Value per Common Share (1)												$	7.62			$	7.06
Tangible Common Equity to Tangible Assets (1)													7.69	%			7.81	%
ASSET QUALITY RATIOS												12/31/2015				12/31/2014
Ratio of Allowance for Loan and Lease Losses to Total Loans													1.04	%			1.16	%
Non-accruing Loans to Total Loans													0.76	%			0.78	%
Non-performing Assets to Total Assets													0.61	%			0.61	%
Annualized Net Charge-Offs to Average Loans													0.06	%			0.19	%
SELECTED BALANCE SHEET DATA AT PERIOD-END												12/31/2015				12/31/2014
Loans and Leases												$	2,967,946			$	2,655,614
Allowance for Loan and Lease Losses													(30,874	)			(30,684	)
Investment Securities													573,176				575,271
Total Assets													3,869,550				3,538,325
Total Deposits													2,995,571				2,790,819
Short-Term Borrowings													151,234				108,935
Other Borrowings													303,143				243,736
Stockholders' Equity													400,516				379,438
SELECTED AVERAGE BALANCE SHEET DATA				For the Three Months Ended								For the Twelve Months Ended
				12/31/2015				12/31/2014				12/31/2015				12/31/2014
Loans and Leases, net				$	2,898,477			$	2,622,602			$	2,773,601			$	2,568,056
Investment Securities					561,024				566,039				581,452				543,806
Interest Earning Assets					3,509,867				3,227,390				3,390,112				3,147,266
Total Assets					3,779,819				3,483,162				3,648,836				3,400,461
Noninterest Bearing Demand Deposits					722,270				679,796				695,630				652,685
Savings Deposits					402,217				384,064				399,431				384,715
Interest Bearing Transaction Accounts					1,573,638				1,487,492				1,511,954				1,454,967
Time Deposits					328,080				277,930				303,682				283,905
Total Deposits					3,026,205				2,829,282				2,910,697				2,776,272
Short-Term Borrowings					47,276				38,653				54,027				55,798
Other Borrowings					286,887				221,848				274,908				186,022
Total Interest Bearing Liabilities					2,638,098				2,409,988				2,544,003				2,365,407
Stockholders' Equity					399,987				377,379				392,221				367,210
(1) See supplemental information - Non-GAAP financial measures

 

Lakeland Bancorp, Inc.
Consolidated Statements of Operations
(Unaudited)
						Three Months Ended December 31,							Twelve Months Ended December 31,
(Dollars in thousands, except per share amounts)							2015			2014				2015			2014
INTEREST INCOME
Loans and fees						$	30,065		$	28,182			$	115,295		$	110,587
Federal funds sold and interest bearing deposits with banks							32			25				62			71
Taxable investment securities and other							2,562			2,592				10,563			10,040
Tax exempt investment securities							396			429				1,594			1,805
TOTAL INTEREST INCOME							33,055			31,228				127,514			122,503
INTEREST EXPENSE
Deposits							1,662			1,302				5,755			5,064
Federal funds purchased and securities sold under agreements to repurchase							18			9				110			78
Other borrowings							1,256			1,067				5,009			3,795
TOTAL INTEREST EXPENSE							2,936			2,378				10,874			8,937
NET INTEREST INCOME							30,119			28,850				116,640			113,566
Provision for loan and lease losses							-			1,589				1,942			5,865
NET INTEREST INCOME AFTER PROVISION FOR
LOAN AND LEASE LOSSES							30,119			27,261				114,698			107,701
NONINTEREST INCOME
Service charges on deposit accounts							2,620			2,612				10,024			10,523
Commissions and fees							1,081			1,168				4,568			4,634
Gain on investment securities							51			-				241			2
Gain on sale of loans							437			195				1,681			573
Gain on debt extinguishment							-			-				1,830			-
Income on bank owned life insurance							475			363				2,017			1,453
Other income							114			131				800			537
TOTAL NONINTEREST INCOME							4,778			4,469				21,161			17,722
NONINTEREST EXPENSE
Salaries and employee benefits							12,370			11,827				48,640			45,167
Net occupancy expense							2,068			2,190				8,956			8,865
Furniture and equipment							1,764			1,647				6,930			6,605
Stationery, supplies and postage							392			347				1,529			1,403
Marketing expense							534			534				1,586			2,025
FDIC insurance expense							563			518				2,086			2,019
ATM and debit card expense							317			353				1,398			1,432
Telecommunications expense							374			341				1,448			1,386
Data processing expense							392			362				1,524			1,245
Other real estate owned and other repossessed assets expense							135			69				181			234
Long-term debt prepayment fee							-			-				2,407			-
Merger related expenses							822			-				1,152			-
Core deposit intangible amortization							99			111				415			464
Provision for unfunded lending commitments							506			(89	)			864			(65	)
Other expenses							1,806			1,968				8,095			8,355
TOTAL NONINTEREST EXPENSE							22,142			20,178				87,211			79,135
INCOME BEFORE PROVISION FOR INCOME TAXES							12,755			11,552				48,648			46,288
Provision for income taxes							4,291			3,613				16,167			15,159
NET INCOME						$	8,464		$	7,939			$	32,481		$	31,129
EARNINGS PER COMMON SHARE
Basic						$	0.22		$	0.21			$	0.85		$	0.82
Diluted						$	0.22		$	0.21			$	0.85		$	0.82
DIVIDENDS PER COMMON SHARE						$	0.085		$	0.075			$	0.330		$	0.293

 

Lakeland Bancorp, Inc.
Consolidated Balance Sheets
					December 31,				December 31,
(Dollars in thousands)						2015				2014
					(Unaudited)
ASSETS
Cash and due from banks					$	113,894			$	102,549
Federal funds sold and interest bearing deposits due from banks						4,599				6,767
Total cash and cash equivalents						118,493				109,316
Investment securities available for sale, at fair value						442,349				457,449
Investment securities held to maturity; fair value of $117,594 in 2015
and $109,030 in 2014						116,740				107,976
Federal Home Loan Bank and other membership stocks, at cost						14,087				9,846
Loans held for sale						1,233				592
Loans:
Commercial, secured by real estate						1,879,659				1,593,781
Commercial, industrial and other						307,044				238,252
Leases						56,660				54,749
Residential mortgages						389,692				431,190
Consumer and home equity						334,891				337,642
Total loans						2,967,946				2,655,614
Net deferred costs						(2,746	)			(1,788	)
Allowance for loan and lease losses						(30,874	)			(30,684	)
Net loans						2,934,326				2,623,142
Premises and equipment, net						35,881				35,675
Accrued interest receivable						9,208				8,896
Goodwill						109,974				109,974
Other identifiable intangible assets						1,545				1,960
Bank owned life insurance						65,361				57,476
Other assets						20,353				16,023
TOTAL ASSETS					$	3,869,550			$	3,538,325
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest bearing					$	693,741			$	646,052
Savings and interest bearing transaction accounts						1,958,509				1,864,805
Time deposits under $100,000						164,886				165,625
Time deposits $100,000 and over						178,435				114,337
Total deposits						2,995,571				2,790,819
Federal funds purchased and securities sold under agreements to repurchase						151,234				108,935
Other borrowings						271,905				202,498
Subordinated debentures						31,238				41,238
Other liabilities						19,086				15,397
TOTAL LIABILITIES						3,469,034				3,158,887
STOCKHOLDERS' EQUITY:
Common stock, no par value; authorized 70,000,000 shares;
issued 37,906,481 shares at December 31, 2015
and 37,910,840 shares at December 31, 2014						386,287				384,731
Retained Earnings (Accumulated Deficit)						13,079				(6,816	)
Accumulated other comprehensive gain						1,150				1,523
TOTAL STOCKHOLDERS' EQUITY						400,516				379,438
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY					$	3,869,550			$	3,538,325

 

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
			For the Quarter Ended
			Dec 31,			Sept 30,			Jun 30,			Mar 31,			Dec 31,
(Dollars in thousands, except per share data)				2015			2015			2015			2015			2014
INCOME STATEMENT
Net Interest Income			$	30,119		$	29,334		$	28,669		$	28,518		$	28,850
Provision for Loan and Lease Losses				-			(332	)		(740	)		(870	)		(1,589	)
Other Noninterest Income				4,290			4,169			4,477			4,473			4,274
Gain on Investment Securities				51			173			17			-			-
Gain on Sale of Loans				437			515			464			265			195
Gain on Debt Extinguishment				-			1,830			-			-			-
Long-Term Debt Prepayment Fee				-			(2,407	)		-			-			-
Merger Related Expenses				(822	)		(330	)		-			-			-
Provision for Unfunded Lending Commitments				(506	)		(168	)		(60	)		(130	)		89
Other Noninterest Expense				(20,814	)		(20,927	)		(21,135	)		(19,912	)		(20,267	)
Pretax Income				12,755			11,857			11,692			12,344			11,552
Tax Expense				(4,291	)		(4,032	)		(3,830	)		(4,014	)		(3,613	)
Net Income			$	8,464		$	7,825		$	7,862		$	8,330		$	7,939
Basic Earnings Per Common Share			$	0.22		$	0.20		$	0.21		$	0.22		$	0.21
Diluted Earnings Per Common Share			$	0.22		$	0.20		$	0.21		$	0.22		$	0.21
Dividends Per Common Share			$	0.085		$	0.085		$	0.085		$	0.075		$	0.075
Dividends Paid			$	3,246		$	3,244		$	3,243		$	2,852		$	2,853
Weighted Average Shares - Basic				37,865			37,856			37,854			37,800			37,765
Weighted Average Shares - Diluted				38,048			38,016			37,988			37,937			37,920
SELECTED OPERATING RATIOS
Annualized Return on Average Assets				0.89	%		0.84	%		0.88	%		0.96	%		0.90	%
Annualized Return on Average Common Equity				8.40	%		7.86	%		8.08	%		8.81	%		8.35	%
Annualized Return on Tangible Common Equity (1)				11.64	%		10.96	%		11.33	%		12.43	%		11.87	%
Annualized Net Interest Margin				3.43	%		3.42	%		3.46	%		3.56	%		3.58	%
Efficiency Ratio (1)				58.70	%		60.77	%		62.09	%		59.17	%		59.87	%
Common Stockholders' Equity to Total Assets				10.35	%		10.62	%		10.57	%		10.70	%		10.72	%
Tangible Common Equity to Tangible Assets (1)				7.69	%		7.88	%		7.78	%		7.86	%		7.81	%
Tier 1 Risk-Based Ratio (2)				10.53	%		10.81	%		11.05	%		11.23	%		11.76	%
Total Risk-Based Ratio (2)				11.61	%		11.93	%		12.15	%		12.37	%		12.98	%
Tier 1 Leverage Ratio (2)				8.70	%		8.77	%		9.12	%		9.17	%		9.08	%
Common Equity Tier 1 Capital Ratio (2)				9.54	%		9.78	%		9.66	%		9.79	%	N/A
Book Value per Common Share			$	10.57		$	10.49		$	10.31		$	10.24		$	10.01
Tangible Book Value per Common Share (1)			$	7.62		$	7.55		$	7.36		$	7.29		$	7.06
(1) See Supplemental Information - Non-GAAP financial measures
(2) Beginning March 31, 2015, these ratios were calculated according to the Basel III capital rules that took effect on January 1, 2015.

 

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
				For the Quarter Ended
				Dec 31,			Sept 30,			Jun 30,			Mar 31,			Dec 31,
(Dollars in thousands)					2015			2015			2015			2015			2014
SELECTED BALANCE SHEET DATA AT PERIOD-END
Loans and Leases				$	2,967,946		$	2,853,764		$	2,756,694		$	2,691,705		$	2,655,614
Allowance for Loan and Lease Losses					(30,874	)		(30,994	)		(30,174	)		(30,505	)		(30,684	)
Investment Securities					573,176			559,295			597,598			599,986			575,271
Total Assets					3,869,550			3,743,100			3,699,127			3,627,764			3,538,325
Total Deposits					2,995,571			2,919,673			2,842,953			2,842,565			2,790,819
Short-Term Borrowings					151,234			131,356			146,249			117,351			108,935
Other Borrowings					303,143			275,666			303,966			263,966			243,736
Stockholders' Equity					400,516			397,687			390,860			388,084			379,438
Loans and Leases
Commercial Real Estate				$	1,879,659		$	1,776,911		$	1,695,276		$	1,636,128		$	1,593,781
Commercial, Industrial and Other					307,044			290,961			262,617			244,162			238,252
Leases					56,660			55,057			53,798			54,271			54,749
Residential Mortgages					389,692			400,247			414,339			426,339			431,190
Consumer and Home Equity					334,891			330,588			330,664			330,805			337,642
Total Loans				$	2,967,946		$	2,853,764		$	2,756,694		$	2,691,705		$	2,655,614
Deposits
Noninterest Bearing				$	693,741		$	694,267		$	714,227		$	672,264		$	646,052
Savings and Interest Bearing Transaction Accounts					1,958,509			1,907,858			1,822,295			1,878,598			1,864,805
Time Deposits Under $100,000					164,886			164,291			165,105			164,946			165,625
Time Deposits $100,000 and Over					178,435			153,257			141,326			126,757			114,337
Total Deposits				$	2,995,571		$	2,919,673		$	2,842,953		$	2,842,565		$	2,790,819
SELECTED AVERAGE BALANCE SHEET DATA
Loans and Leases, net				$	2,898,477		$	2,811,581		$	2,720,801		$	2,660,512		$	2,622,602
Investment Securities					561,024			581,565			600,547			582,912			566,039
Interest Earning Assets					3,509,867			3,431,018			3,345,380			3,271,110			3,227,390
Total Assets					3,779,819			3,685,573			3,600,416			3,526,898			3,483,162
Noninterest Bearing Demand Deposits					722,270			710,011			688,854			660,548			679,796
Savings Deposits					402,217			398,147			402,142			395,153			384,064
Interest Bearing Transaction Accounts					1,573,638			1,497,340			1,480,866			1,495,270			1,487,492
Time Deposits					328,080			309,235			295,996			280,837			277,930
Total Deposits					3,026,205			2,914,733			2,867,858			2,831,808			2,829,282
Short-Term Borrowings					47,276			61,679			59,249			47,827			38,653
Other Borrowings					286,887			297,140			267,610			247,316			221,848
Total Interest Bearing Liabilities					2,638,098			2,563,542			2,505,863			2,466,403			2,409,988
Stockholders' Equity					399,987			394,948			390,151			383,587			377,379

 

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
				For the Quarter Ended
				Dec 31,			Sept 30,			Jun 30,			Mar 31,			Dec 31,
(Dollars in thousands)					2015			2015			2015			2015			2014
AVERAGE ANNUALIZED YIELDS (Taxable Equivalent Basis)
Assets:
Loans and leases					4.12	%		4.11	%		4.16	%		4.25	%		4.26	%
Taxable investment securities and other					2.09	%		2.06	%		2.02	%		2.08	%		2.09	%
Tax-exempt securities					3.49	%		3.41	%		3.58	%		3.67	%		3.75	%
Federal funds sold and interest bearing cash accounts					0.25	%		0.07	%		0.18	%		0.17	%		0.26	%
Total interest earning assets					3.76	%		3.75	%		3.78	%		3.86	%		3.87	%
Liabilities:
Savings accounts					0.05	%		0.05	%		0.05	%		0.05	%		0.05	%
Interest bearing transaction accounts					0.26	%		0.25	%		0.23	%		0.23	%		0.23	%
Time deposits					0.70	%		0.63	%		0.59	%		0.56	%		0.54	%
Borrowings					1.53	%		1.52	%		1.58	%		1.61	%		1.65	%
Total interest bearing liabilities					0.44	%		0.44	%		0.42	%		0.40	%		0.39	%
Net interest spread (taxable equivalent basis)					3.32	%		3.31	%		3.36	%		3.46	%		3.48	%
Annualized net interest margin (taxable equivalent basis)					3.43	%		3.42	%		3.46	%		3.56	%		3.58	%
Annualized cost of deposits					0.22	%		0.20	%		0.19	%		0.18	%		0.18	%
ASSET QUALITY DATA
Allowance for Loan and Lease Losses
Balance at beginning of period				$	30,994		$	30,174		$	30,505		$	30,684		$	30,047
Provision for loan losses					-			332			740			870			1,589
Net recoveries (charge-offs)					(120	)		488			(1,071	)		(1,049	)		(952	)
Balance at end of period				$	30,874		$	30,994		$	30,174		$	30,505		$	30,684
Net Loan Charge-offs (Recoveries)
Commercial real estate				$	(450	)	$	(936	)	$	476		$	426		$	(287	)
Commercial, industrial and other					(56	)		88			21			(31	)		99
Leases					(1	)		13			102			407			185
Home equity and consumer					561			204			386			231			860
Real estate - mortgage					66			143			86			16			95
Net charge-offs (recoveries)				$	120		$	(488	)	$	1,071		$	1,049		$	952
Non-performing Assets
Commercial real estate				$	10,446		$	8,176		$	5,307		$	6,994		$	7,612
Commercial, industrial and other					103			832			1,354			285			308
Leases					316			154			79			111			88
Home equity and consumer					3,167			3,530			3,143			3,472			3,415
Real estate - mortgage					8,664			8,805			9,098			9,552			9,246
Total non-accruing loans					22,696			21,497			18,981			20,414			20,669
Property acquired through foreclosure or repossession					983			819			1,078			826			1,026
Total non-performing assets				$	23,679		$	22,316		$	20,059		$	21,240		$	21,695
Loans past due 90 days or more and still accruing				$	331		$	123		$	102		$	134		$	66
Loans restructured and still accruing				$	10,108		$	11,927		$	12,419		$	11,538		$	10,579
Ratio of allowance for loan and lease losses to total loans					1.04	%		1.09	%		1.09	%		1.13	%		1.16	%
Non-performing loans to total loans					0.76	%		0.75	%		0.69	%		0.76	%		0.78	%
Non-performing assets to total assets					0.61	%		0.60	%		0.54	%		0.59	%		0.61	%
Annualized net charge-offs (recoveries) to average loans					0.02	%		-0.07	%		0.16	%		0.16	%		0.15	%

 

Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)
				At or for the Quarter Ended
				Dec 31,			Sept 30,			Jun 30,			Mar 31,			Dec 31,
(Dollars in thousands, except per share amounts)					2015			2015			2015			2015			2014
Calculation of tangible book value per common share
Total common stockholders' equity at end of period - GAAP				$	400,516		$	397,687		$	390,860		$	388,084		$	379,438
Less:
Goodwill					109,974			109,974			109,974			109,974			109,974
Other identifiable intangible assets, net					1,545			1,644			1,742			1,849			1,960
Total tangible common stockholders' equity at end of period - Non-GAAP				$	288,997		$	286,069		$	279,144		$	276,261		$	267,504
Shares outstanding at end of period					37,906			37,906			37,903			37,900			37,911
Book value per share - GAAP				$	10.57		$	10.49		$	10.31		$	10.24		$	10.01
Tangible book value per share - Non-GAAP				$	7.62		$	7.55		$	7.36		$	7.29		$	7.06
Calculation of tangible common equity to tangible assets
Total tangible common stockholders' equity at end of period - Non-GAAP				$	288,997		$	286,069		$	279,144		$	276,261		$	267,504
Total assets at end of period				$	3,869,550		$	3,743,100		$	3,699,127		$	3,627,764		$	3,538,325
Less:
Goodwill					109,974			109,974			109,974			109,974			109,974
Other identifiable intangible assets, net					1,545			1,644			1,742			1,849			1,960
Total tangible assets at end of period - Non-GAAP				$	3,758,031		$	3,631,482		$	3,587,411		$	3,515,941		$	3,426,391
Common equity to assets - GAAP					10.35	%		10.62	%		10.57	%		10.70	%		10.72	%
Tangible common equity to tangible assets - Non-GAAP					7.69	%		7.88	%		7.78	%		7.86	%		7.81	%
Calculation of return on average tangible common equity
Net income - GAAP				$	8,464		$	7,825		$	7,862		$	8,330		$	7,939
Total average common stockholders' equity				$	399,987		$	394,948		$	390,151		$	383,587		$	377,379
Less:
Average goodwill					109,974			109,974			109,974			109,974			109,974
Average other identifiable intangible assets, net					1,606			1,706			1,807			1,919			2,028
Total average tangible common stockholders' equity - Non-GAAP				$	288,407		$	283,268		$	278,370		$	271,694		$	265,377
Return on average common stockholders' equity - GAAP					8.40	%		7.86	%		8.08	%		8.81	%		8.35	%
Return on average tangible common stockholders' equity - Non-GAAP					11.64	%		10.96	%		11.33	%		12.43	%		11.87	%
Calculation of efficiency ratio
Total noninterest expense				$	22,142		$	23,832		$	21,195		$	20,042		$	20,178
Amortization of core deposit intangibles					(99	)		(98	)		(107	)		(111	)		(111	)
Other real estate owned and other repossessed asset (expense) income					(135	)		(27	)		(27	)		8			(69	)
Long-term debt prepayment fee					-			(2,407	)		-			-			-
Merger related expenses					(822	)		(330	)		-			-			-
Provision for unfunded lending commitments, net					(506	)		(168	)		(60	)		(130	)		89
Noninterest expense, as adjusted				$	20,580		$	20,802		$	21,001		$	19,809		$	20,087
Net interest income				$	30,119		$	29,334		$	28,669		$	28,518		$	28,850
Total noninterest income					4,778			6,687			4,958			4,738			4,469
Total revenue					34,897			36,021			33,627			33,256			33,319
Tax-equivalent adjustment on municipal securities					212			210			214			221			231
Gains on debt extinguishment					-			(1,830	)		-			-			-
Gains on sales investment securities					(51	)		(173	)		(17	)		-			-
Total revenue, as adjusted				$	35,058		$	34,228		$	33,824		$	33,477		$	33,550
Efficiency ratio - Non-GAAP					58.70	%		60.77	%		62.09	%		59.17	%		59.87	%

 

Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)
				For the Twelve Months Ended,
				Dec 31,			Dec 31,
(Dollars in thousands)					2015			2014
Calculation of return on average tangible common equity
Net income - GAAP				$	32,481		$	31,129
Total average common stockholders' equity				$	392,221		$	367,210
Less:
Average goodwill					109,974			109,974
Average other identifiable intangible assets, net					1,759			2,200
Total average tangible common stockholders' equity - Non-GAAP				$	280,488		$	255,036
Return on average common stockholders' equity - GAAP					8.28	%		8.48	%
Return on average tangible common stockholders' equity - Non-GAAP					11.58	%		12.21	%
Calculation of efficiency ratio
Total noninterest expense				$	87,211		$	79,135
Amortization of core deposit intangibles					(415	)		(464	)
Other real estate owned and other repossessed asset expense					(181	)		(234	)
Long-term debt prepayment fee					(2,407	)		-
Merger related expenses					(1,152	)		-
Provision for unfunded lending commitments					(864	)		65
Noninterest expense, as adjusted				$	82,192		$	78,502
Net interest income				$	116,640		$	113,566
Noninterest income					21,161			17,722
Total revenue					137,801			131,288
Tax-equivalent adjustment on municipal securities					857			972
Gains on investment securities					(241	)		(2	)
Gains on extinguishment of debt					(1,830	)		-
Total revenue, as adjusted				$	136,587		$	132,258
Efficiency ratio - Non-GAAP					60.18	%		59.35	%

 

 

 

CONTACT:
Thomas J. Shara
President & CEO

Joseph F. Hurley
EVP & CFO
973-697-2000