UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
Form 8-K
______________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): January 28, 2016
Lakeland Bancorp, Inc.
(Exact Name of Registrant as Specified in Charter)
| NEW JERSEY | 000-17820 | 22-2953275 |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
| 250 Oak Ridge Road, Oak Ridge, New Jersey 07438 |
| (Address of Principal Executive Offices) (Zip Code) |
(973) 697-2000
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
| | [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| | [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| | [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| | [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On January 28, 2016, Lakeland Bancorp, Inc. ("Company") disseminated a press release reporting results for the fourth quarter of 2015 and for the year ended December 31, 2015. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Item 8.01. Other Events.
In the press release referred to in Item 2.02, the Company reported the following events. On January 26, 2016, the Company declared a $0.085 cash dividend per common share payable on February 17, 2016 to shareholders of record at the close of business February 10, 2016.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibit 99.1 Press Release, dated January 28, 2016.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | Lakeland Bancorp, Inc. |
| | | |
| | | |
| Date: January 28, 2016 | By: | /s/ Thomas J. Shara |
| | | Name: Thomas J. Shara |
| | | Title: President and Chief Executive Officer |
| | | |
EXHIBIT 99.1
Lakeland Bancorp Reports Record Full Year Results and Closes Pascack Bancorp Acquisition
OAK RIDGE, N.J., Jan. 28, 2016 (GLOBE NEWSWIRE) -- 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 Bank
Lakeland 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
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