Lakeland Bancorp Earnings Increase of 9% for Fourth Quarter and 16% for Full Year

Lakeland Bancorp, Inc.

reported the following results: Net Income Available to Common Shareholders in the fourth quarter of 2011 was $4.8 million or $0.19 per diluted share, up 9% from $4.4 million or $0.17 per diluted share for the fourth quarter of 2010. Net Income Available to Common Shareholders for the year ended 2011 was $17.7 million or $0.69 per diluted share, a 16% increase from the $15.2 million, or $0.60 per diluted share for 2010. The Company reported strong growth in both loans and core deposits in the fourth quarter of 2011. Loans totaling $2.04 billion at year-end 2011 increased by $49.5 million from September 30, 2011. Commercial loans represented the area of greatest growth. Core deposits increased in the fourth quarter by $54.3 million, including a $24.8 million, or 6%, increase in non-interest bearing demand deposits. For the full year December 31, 2011, non-interest bearing demand deposits increased by $65.7 million, or 17%, to $449.6 million. Asset quality improved in the fourth quarter of 2011, as non-performing assets, which totaled $50.2 million at December 31, 2011, were $7.5 million, or 13%, lower than the total reported at September 30, 2011, due to the favorable resolution of several non-performing loans. Fourth quarter non-interest expense of $16.4 million was $1.2 million, or 7%, lower than the fourth quarter of 2010. For the full year 2011, non-interest expense, excluding prepayment fees on long-term debt, was $67.4 million, or 2%, lower than the total for 2010. Our capital position strengthened in 2011. Tangible book value per common share increased to $6.03 at December 31, 2011 from $5.35 at December 31, 2010, or 13%.