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Lakeland Bancorp Reports Record Full Year Results and Closes Pascack Bancorp Acquisition

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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 DATAFor 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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