Market Overview

Lakeland Bancorp Announces Second Quarter Results and Increases Earnings by 18%

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OAK RIDGE, N.J., July 26, 2018 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (NASDAQ:LBAI) (the "Company"), the parent company of Lakeland Bank ("Lakeland"), reported net income and diluted earnings per share ("EPS") of $15.8 million and $0.33, respectively, for the three months ended June 30, 2018, an 18% increase compared to $13.4 million and $0.28 for the three months ended June 30, 2017.  For the second quarter of 2018, return on average assets was 1.17%, return on average common equity was 10.71%, and return on average tangible common equity was 13.97%.

For the six months ended June 30, 2018, the Company reported net income of $31.1 million, a 21% increase compared to $25.7 million for the same period in 2017.  For the six months ended June 30, 2018, the Company reported diluted EPS of $0.65, an increase of 23% compared to $0.53 for the first six months of 2017.  For the first six months of 2018, return on average assets was 1.16%, return on average common equity was 10.65%, and return on average tangible common equity was 13.94%. 

Thomas Shara, Lakeland Bancorp's President and CEO commented, "We are pleased to report another quarter of record net income, which is a result of our ability to carefully grow our loan portfolio and increase our net interest margin despite continued increases in short term market interest rates.  Our net interest margin has increased four basis points this quarter and six basis points year-to-date.  In addition this quarter, our return on assets rose to 1.17% and our return on common equity rose to nearly 14%, while our efficiency ratio remained low at 56%."

Net Interest Income
Net interest income increased to $43.5 million for the second quarter of 2018 compared to $41.4 million for the second quarter of 2017, due primarily to the growth of interest earning assets and increases in loan and lease yields.  Net interest income for the first six months of 2018 was $85.7 million, as compared to $80.7 million for the same period in 2017. 

The yield on interest earning assets for the second quarter of 2018 was 4.12% compared to 3.88% for the second quarter of 2017.  The yield on interest earning assets for the first six months of 2018 was 4.07% compared to 3.83% during the same period in 2017. The cost of interest-bearing liabilities for the second quarter of 2018 was 0.91% compared to 0.63% for the second quarter of 2017, reflecting the higher cost of deposits. The cost of interest-bearing liabilities for the first six months of 2018 was 0.87% compared to 0.62% during the same period in 2017.  Net interest margin for the second quarter of 2018 of 3.43% increased four basis points from the prior quarter and two basis points from the second quarter of 2017. Net interest margin for the first six months of 2018 of 3.41% increased four basis points from the same period in 2017.

Noninterest Income
Noninterest income decreased $0.4 million to $5.7 million for the second quarter of 2018 from $6.1 million for the second quarter of 2017.  This decline was due primarily to a $0.3 million gain on the sale of a former branch and $0.3 million gain on the payoff of an acquired loan recorded in the second quarter of 2017, partially offset by increases in commercial loan fees and income on bank owned life insurance in the second quarter of 2018. 

For the first six months of 2018, noninterest income totaled $11.0 million compared to $14.2 million for the same period in 2017.  The first half of 2017 included a $2.5 million gain on sales of investment securities, $0.7 million from the sales of two former branches, $0.4 million in gains on sales of other real estate owned and a $0.3 million gain on the payoff of an acquired loan.  In the first half of 2018, commissions and fees increased $0.4 million and income on bank owned life insurance increased $0.5 million, while gains on sales of loans decreased $0.3 million compared to the same period in 2017.

Noninterest Expense
Noninterest expense totaled $27.6 million for the second quarter of 2018 compared to $25.4 million for the second quarter of 2017, mainly as a result of salary and employee benefit expense increasing $1.6 million as a result of additions to our staff to support continued growth, as well as normal merit increases and higher benefit costs.  In the second quarter of 2018 data processing expense increased $0.5 million compared to the second quarter of 2017 due primarily to the Company's expansion and improvement of its digital infrastructure.  

For the first six months of 2018, noninterest expense totaled $54.7 million compared to $53.8 million for the same period in 2017.  Included within 2017 was $2.8 million in long term debt prepayment fees. Excluding the 2017 long term debt prepayment fees, the resulting $3.7 million net increase was primarily due to an increase in salary and employee benefit costs resulting from additions to our staff to support continued growth, as well as normal merit increases and higher benefit costs.    

Financial Condition
In 2018, total assets increased $128.8 million to $5.53 billion as total loans and leases grew $124.6 million to $4.28 billion, while investment securities decreased $0.3 million to $798.1 million.  On the funding side, total deposits increased $31.3 million to $4.40 billion, while borrowings increased $77.4 million to $499.2 million.  As of June 30, 2018, total loans and leases as a percent of total deposits was 97%. 

Asset Quality
At June 30, 2018, non-performing assets totaled $16.5 million (0.30% of total assets) compared to $14.5 million (0.27% of total assets) at December 31, 2017.  Non-accrual loans and leases as a percent of total loans and leases equaled 0.33% at both June 30, 2018 and December 31, 2017.  The allowance for loan and lease losses increased to $36.6 million at June 30, 2018 (0.85% of total loans and leases) compared to $35.5 million at December 31, 2017 (0.85% of total loans and leases).  In the second quarter of 2018, the Company had net charge-offs of $0.5 million (0.05% of average loans and leases, annualized) compared to $0.6 million (0.06% of average loans and leases, annualized) for the same period in 2017.  The second quarter of 2018 provision for loan and lease losses was $1.5 million compared to $1.8 million in the second quarter of 2017.

Capital
At June 30, 2018, stockholders' equity was $597.9 million compared to $583.1 million at December 31, 2017, a 3% increase.  Lakeland Bank remains above FDIC "well capitalized" standards, with a Tier 1 Leverage Ratio of 9.43% at June 30, 2018.  At June 30, 2018, the book value per common share and tangible book value per common share were $12.59 and $9.67 compared to $11.99 and $9.05 at June 30, 2017.  On July 24, 2018, the Company declared a quarterly cash dividend of $0.115 per share to be paid on August 15, 2018 to stockholders of record as of August 6, 2018.

Forward-Looking Statements
The information disclosed in this document includes various forward-looking statements 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.  The Company 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 and regulation affecting the financial services industry, government intervention in the U.S. financial system, changes in federal and state tax laws, changes in levels of market interest rates, pricing pressures on loan and deposit products, credit risks of the Company's lending and leasing activities, successful implementation, deployment and upgrades of new and existing technology, systems, services and products, customers' acceptance of the Company's products and services, and competition.  Any statements made by the Company that are not historical facts should be considered to be forward-looking statements.  The Company 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").  This press release also contains certain supplemental non-GAAP information that the Company's management uses in its analysis of the Company's financial results.  Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis, and excludes material non-routine operating items which affect the GAAP reporting of results of operations.  The Company's management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company's core financial results for the periods in question.

The Company also provides measurements and ratios based on tangible equity and tangible assets.  These measures are utilized by regulators and market analysts to evaluate a company's financial condition and, therefore, the Company's management believes that such information is useful to investors.

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, 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 gains and losses from the sale of investment securities and gain on debt extinguishment, which can vary from period to period.  The Company uses this ratio because it believes the ratio provides a relevant measure to compare the operating performance period to period.

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.  See accompanying non-GAAP tables. 

About Lakeland Bank
Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc. (NASDAQ:LBAI), which has $5.5 billion in total assets. The Bank operates 53 branch offices throughout Bergen, Essex, Morris, Ocean, Passaic, Somerset, Sussex, and Union counties in New Jersey including one branch in Highland Mills, New York; six New Jersey regional commercial lending centers in Bernardsville, Jackson, Montville, Newton, Teaneck and Waldwick; and one New York commercial lending center to serve the Hudson Valley region. Lakeland also has a commercial loan production office serving Middlesex and Monmouth counties in New Jersey.  Lakeland Bank offers an extensive suite of financial products and services for businesses and consumers. Visit LakelandBank.com for more information.

Thomas J. Shara
President & CEO

Thomas F. Splaine
EVP & CFO
973-697-2000


Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
                     
        Three Months Ended June 30,   Six Months Ended June 30,
(Dollars in thousands, except per share amounts)   2018       2017       2018       2017  
                     
INCOME STATEMENT                
Net interest income     $   43,493     $   41,421     $   85,729     $   80,744  
Provision for loan and lease losses       (1,492 )       (1,827 )       (2,776 )       (3,045 )
Gains (losses) on sales of investment securities     -          (15 )       -          2,524  
Gains on sales of loans         300         471         546         869  
Other noninterest income         5,409         5,655         10,497         10,812  
Long-term debt prepayment fee       -          -          -          (2,828 )
Other noninterest expense       (27,574 )       (25,366 )       (54,711 )       (51,008 )
Pretax income         20,136         20,339         39,285         38,068  
Provision for income taxes       (4,298 )       (6,969 )       (8,192 )       (12,386 )
Net income      $   15,838     $   13,370     $   31,093     $   25,682  
                     
Basic earnings per common share   $   0.33     $   0.28     $   0.65     $   0.54  
Diluted earnings per common share   $   0.33     $   0.28     $   0.65     $   0.53  
Dividends paid per common share   $   0.115     $   0.100     $   0.215     $   0.195  
Weighted average shares - basic       47,600         47,465         47,552         47,410  
Weighted average shares - diluted       47,770         47,674         47,753         47,646  
                     
SELECTED OPERATING RATIOS                
Annualized return on average assets     1.17 %     1.02 %     1.16 %     1.00 %
Annualized return on average common equity   10.71 %     9.49 %     10.65 %     9.26 %
Annualized return on average tangible common equity (1)   13.97 %     12.58 %     13.94 %     12.31 %
Annualized return on interest-earning assets   4.12 %     3.88 %     4.07 %     3.83 %
Annualized cost of interest-bearing liabilities   0.91 %     0.63 %     0.87 %     0.62 %
Annualized net interest spread     3.21 %     3.25 %     3.20 %     3.22 %
Annualized net interest margin     3.43 %     3.41 %     3.41 %     3.37 %
Efficiency ratio (1)       55.60 %     52.64 %     56.08 %     54.44 %
Stockholders' equity to total assets             10.80 %     10.58 %
Book value per common share           $   12.59     $   11.99  
Tangible book value per common share (1)         $   9.67     $   9.05  
Tangible common equity to tangible assets (1)           8.51 %     8.20 %
                     
ASSET QUALITY RATIOS           6/30/2018   6/30/2017
Ratio of allowance for loan and lease losses to total loans and leases         0.85 %     0.81 %
Non-performing loans and leases to total loans and leases           0.33 %     0.40 %
Non-performing assets to total assets              0.30 %     0.33 %
Annualized net charge-offs to average loans and leases           0.08 %     0.07 %
                     
SELECTED BALANCE SHEET DATA AT PERIOD-END       6/30/2018   6/30/2017
Loans and leases             $   4,281,302     $   4,054,276  
Allowance for loan and lease losses              36,604         32,823  
Investment securities                 798,096         830,531  
Total assets                   5,534,488         5,362,187  
Total deposits                4,400,019         4,227,204  
Short-term borrowings                 197,870         118,487  
Other borrowings                 301,339         417,093  
Stockholders' equity                597,864         567,545  
                     
SELECTED AVERAGE BALANCE SHEET DATA For the Three Months Ended   For the Six Months Ended
        6/30/2018   6/30/2017   6/30/2018   6/30/2017
Loans and leases     $   4,247,443     $   4,011,325     $   4,220,972     $   3,958,564  
Investment securities         811,361         837,075         816,182         813,690  
Interest-earning assets        5,094,048         4,907,488         5,078,425         4,866,897  
Total assets        5,437,540         5,241,155         5,423,552         5,197,765  
Noninterest-bearing demand deposits       969,965         954,966         967,246         938,460  
Savings deposits         496,630         492,991         492,173         491,890  
Interest-bearing transaction accounts       2,195,553         2,295,256         2,217,676         2,268,752  
Time deposits         792,270         559,665         776,929         557,479  
Total deposits        4,454,418         4,302,878         4,454,024         4,256,581  
Short-term borrowings         73,305         52,951         64,271         40,722  
Other borrowings         283,206         291,882         283,425         312,203  
Total interest-bearing liabilities       3,840,964         3,692,745         3,834,474         3,671,047  
Stockholders' equity         593,388         565,211         588,571         559,528  
                     
(1) See Supplemental Information - Non-GAAP Financial Measures            
             

 

Lakeland Bancorp, Inc.   
Consolidated Statements of Operations  
(Unaudited)  
                       
            Three Months Ended June 30,   Six Months Ended June 30,  
(Dollars in thousands, except per share amounts)           2018   2017       2018   2017  
                       
INTEREST INCOME                    
Loans, leases and fees         $   47,659 $   42,740     $   93,203 $   83,151  
Federal funds sold and interest-bearing deposits with banks      145    132        311    408  
Taxable investment securities and other        4,027    3,818        8,019    7,417  
Tax exempt investment securities          429    522        872    1,032  
  TOTAL INTEREST INCOME          52,260    47,212        102,405    92,008  
INTEREST EXPENSE                    
Deposits              6,501    3,784        12,256    7,118  
Federal funds purchased and securities sold under agreements to repurchase      233    98        367    108  
Other borrowings            2,033    1,909        4,053    4,038  
  TOTAL INTEREST EXPENSE        8,767    5,791        16,676    11,264  
NET INTEREST INCOME          43,493    41,421        85,729    80,744  
Provision for loan and lease losses            1,492     1,827         2,776     3,045  
  NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES    42,001    39,594        82,953    77,699  
NONINTEREST INCOME                  
Service charges on deposit accounts          2,545    2,674        5,156    5,129  
Commissions and fees            1,410    1,135        2,682    2,291  
Income on bank owned life insurance          711    500        1,430    926  
Gains on sales of loans            300    471        546    869  
Gains on sales of investment securities           -      (15 )       -     2,524  
Other income              743    1,346        1,229    2,466  
  TOTAL NONINTEREST INCOME            5,709    6,111        11,043    14,205  
NONINTEREST EXPENSE                  
Salaries and employee benefit expense          16,708    15,096        33,569    30,513  
Net occupancy expense            2,603    2,507        5,341    5,343  
Furniture and equipment expense          2,011    1,996        4,217    4,093  
FDIC insurance expense            400    425        825    743  
Stationary, supplies and postage expense        443    572        859    1,015  
Marketing expense            456    508        817    909  
Data processing expense            976    502        1,442    1,055  
Telecommunications expense          462    372        883    776  
ATM and debit card expense          558    517        1,068    958  
Core deposit intangible amortization           153     190         310     385  
Other real estate owned and other repossessed assets expense      21    4        67    41  
Long-term debt prepayment fee           -      -          -      2,828  
Other expenses              2,783    2,677        5,313    5,177  
  TOTAL NONINTEREST EXPENSE      27,574    25,366        54,711    53,836  
INCOME BEFORE PROVISION FOR INCOME TAXES              20,136    20,339        39,285    38,068  
Provision for income taxes              4,298    6,969        8,192    12,386  
NET INCOME         $   15,838 $   13,370     $   31,093 $   25,682  
                       
EARNINGS PER COMMON SHARE:                
Basic           $   0.33 $   0.28     $   0.65 $   0.54  
Diluted           $   0.33 $   0.28     $   0.65 $   0.53  
DIVIDENDS PAID PER COMMON SHARE           $   0.115 $   0.100     $   0.215 $   0.195  
                       

 

Lakeland Bancorp, Inc.
Consolidated Balance Sheets
               
          June 30,   December 31,
(Dollars in thousands)         2018       2017  
          (Unaudited)    
ASSETS              
Cash         $   139,438     $   114,138  
Interest-bearing deposits due from banks           3,374       28,795  
Total cash and cash equivalents            142,812        142,933  
Investment securities available for sale, at fair value       606,231         628,046  
Equity securities, at fair value         16,798         18,089  
Investment securities held to maturity; fair value of $155,316 at June 30, 2018      
  and $138,688 at December 31, 2017        158,832        139,685  
Federal Home Loan Bank and other membership stocks, at cost    16,235        12,576  
Loans held for sale           1,692         456  
Loans and leases:            
Commercial, real estate          3,222,461        3,096,092  
Commercial, industrial and other        339,974        340,400  
Leases            82,006        75,039  
Residential mortgages          321,717        322,880  
Consumer and home equity        315,144        322,269  
Total loans and leases        4,281,302        4,156,680  
Net deferred costs (fees)         (3,763 )       (3,960 )
Allowance for loan and lease losses       (36,604 )     (35,455 )
Net loans and leases            4,240,935        4,117,265  
Premises and equipment, net         50,409        50,313  
Accrued interest receivable        14,612        14,416  
Goodwill             136,433        136,433  
Other identifiable intangible assets        2,052         2,362  
Bank owned life insurance          108,952        107,489  
Other assets             38,495        35,576  
  TOTAL ASSETS         $   5,534,488     $   5,405,639  
               
LIABILITIES AND STOCKHOLDERS' EQUITY        
LIABILITIES            
Deposits:              
Noninterest-bearing       $   967,911     $   967,335  
Savings and interest-bearing transaction accounts      2,625,325        2,663,985  
Time deposits $250 thousand and under            611,777        556,863  
Time deposits over $250 thousand            195,006        180,565  
Total deposits            4,400,019        4,368,748  
Federal funds purchased and securities sold under agreements to repurchase    197,870        124,936  
Other borrowings          196,376        192,011  
Subordinated debentures          104,963         104,902  
Other liabilities              37,396        31,920  
TOTAL LIABILITIES          4,936,624        4,822,517  
               
STOCKHOLDERS' EQUITY          
Common stock, no par value; authorized 70,000,000 shares;       
 issued 47,484,057 shares at June 30, 2018 and 47,353,864 shares at December 31, 2017            513,756        512,734  
Retained earnings          95,586        72,737  
Accumulated other comprehensive gain (loss)         (11,478 )     (2,349 )
TOTAL STOCKHOLDERS' EQUITY            597,864        583,122  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $   5,534,488     $   5,405,639  
               

 

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
               
      For the Quarter Ended
      June 30, Mar 31, Dec 31, Sept 30, June 30,
(Dollars in thousands, except per share data)     2018     2018     2017     2017     2017  
               
INCOME STATEMENT            
Net interest income   $   43,493   $   42,236   $   42,379   $   42,115   $   41,421  
Provision for loan and lease losses       (1,492 )     (1,284 )     (1,218 )     (1,827 )     (1,827 )
Gains (losses) on sales of investment securities       -        -        -        -        (15 )
Gains on sales of loans       300       246       489       478       471  
Other noninterest income       5,409       5,088       5,287       4,976       5,655  
Other noninterest expense       (27,574 )     (27,137 )     (25,849 )     (24,849 )     (25,366 )
Pretax income       20,136       19,149       21,088       20,893       20,339  
Provision for income taxes       (4,298 )     (3,894 )     (7,913 )     (7,170 )     (6,969 )
Net income   $   15,838   $   15,255   $   13,175   $   13,723   $   13,370  
               
Basic earnings per common share   $   0.33   $   0.32   $   0.28   $   0.29   $   0.28  
Diluted earnings per common share   $   0.33   $   0.32   $   0.27   $   0.29   $   0.28  
Dividends paid per common share   $   0.115   $   0.100   $   0.100   $   0.100   $   0.100  
Dividends paid   $   5,509   $   4,778   $   4,776   $   4,775   $   4,775  
Weighted average shares - basic       47,600       47,503       47,466       47,466       47,465  
Weighted average shares - diluted       47,770       47,736       47,719       47,692       47,674  
               
SELECTED OPERATING RATIOS            
Annualized return on average assets      1.17 %   1.14 %   0.97 %   1.03 %   1.02 %
Annualized return on average common equity      10.71 %   10.60 %   8.99 %   9.48 %   9.49 %
Annualized return on average tangible common equity (1)   13.97 %   13.90 %   11.82 %   12.51 %   12.58 %
Annualized net interest margin     3.43 %   3.39 %   3.37 %   3.39 %   3.41 %
Efficiency ratio (1)     55.60 %   56.58 %   53.06 %   51.72 %   52.64 %
Common stockholders' equity to total assets     10.80 %   10.75 %   10.79 %   10.69 %   10.58 %
Tangible common equity to tangible assets (1)     8.51 %   8.43 %   8.44 %   8.33 %   8.20 %
Tier 1 risk-based ratio     11.16 %   11.08 %   10.87 %   10.82 %   10.77 %
Total risk-based ratio     13.67 %   13.61 %   13.40 %   13.37 %   13.32 %
Tier 1 leverage ratio     9.43 %   9.28 %   9.12 %   9.07 %   8.99 %
Common equity tier 1 capital ratio     10.49 %   10.40 %   10.18 %   10.13 %   10.06 %
Book value per common share   $   12.59   $   12.40   $   12.31   $   12.19   $   11.99  
Tangible book value per common share (1)   $   9.67   $   9.48   $   9.38   $   9.25   $   9.05  
               
(1) See Supplemental Information - Non-GAAP Financial Measures        
               

 

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
                 
        For the Quarter Ended
        June 30, Mar 31, Dec 31, Sept 30, June 30,
(Dollars in thousands)       2018     2018     2017     2017     2017  
             
SELECTED BALANCE SHEET DATA AT PERIOD-END        
Loans and leases     $   4,281,302   $   4,228,052   $   4,156,680   $   4,092,893   $   4,054,276  
Allowance for loan and lease losses      36,604       35,644       35,455       33,925       32,823  
Investment securities         798,096       805,654       798,396       795,096       830,531  
Total assets           5,534,488       5,477,829       5,405,639       5,399,481       5,362,187  
Total deposits         4,400,019       4,447,965       4,368,748       4,356,996       4,227,204  
Short-term borrowings         197,870       126,485       124,936       133,960       118,487  
Other borrowings         301,339       281,906       296,913       301,411       417,093  
Stockholders' equity         597,864       588,648       583,122       577,081       567,545  
                 
LOANS AND LEASES              
Commercial, real estate     $   3,222,461   $   3,169,375   $   3,096,092   $   3,018,106   $   2,955,596  
Commercial, industrial and other       339,974       339,665       340,400       342,775       352,977  
Leases           82,006       78,238       75,039       71,698       70,295  
Residential mortgages         321,717       323,054       322,880       329,625       337,765  
Consumer and home equity         315,144       317,720       322,269       330,689       337,643  
Total loans and leases     $   4,281,302   $   4,228,052   $   4,156,680   $   4,092,893   $   4,054,276  
                 
DEPOSITS                
Noninterest-bearing     $   967,911   $   974,641   $   967,335   $   955,444   $   978,668  
Savings and interest-bearing transaction accounts     2,625,325       2,682,726       2,663,985       2,681,512       2,682,291  
Time deposits         806,783       790,598       737,428       720,040       566,245  
Total deposits     $   4,400,019   $   4,447,965   $   4,368,748   $   4,356,996   $   4,227,204  
                 
Total loans and leases to total deposits ratio   97.3 %   95.1 %   95.1 %   93.9 %   95.9 %
                 
SELECTED AVERAGE BALANCE SHEET DATA          
Loans and leases     $   4,247,443   $   4,194,207   $   4,116,920   $   4,060,838   $   4,011,325  
Investment securities         811,361       821,055       798,687       815,773       837,075  
Interest-earning assets         5,094,048       5,062,628       5,014,333       4,957,856       4,907,488  
Total assets          5,437,540       5,409,409       5,372,248       5,300,191       5,241,155  
Noninterest-bearing demand deposits       969,965       964,498       988,451       971,143       954,966  
Savings deposits         496,630       487,666       478,685       484,982       492,991  
Interest-bearing transaction accounts       2,195,553       2,240,044       2,222,221       2,206,206       2,295,256  
Time deposits         792,270       761,418       730,590       645,333       559,665  
Total deposits        4,454,418       4,453,626       4,419,947       4,307,664       4,302,878  
Short-term borrowings         73,305       55,137       43,130       42,172       52,951  
Other borrowings         283,206       283,645       295,818       344,775       291,882  
Total interest-bearing liabilities       3,840,964       3,827,910       3,770,444       3,723,468       3,692,745  
Stockholders' equity         593,388       583,700       581,254       574,113       565,211  
           

 

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
                 
        For the Quarter Ended
        June 30, Mar 31, Dec 31, Sept 30, June 30,
(Dollars in thousands)       2018     2018     2017     2017     2017  
           
AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT BASIS)        
ASSETS                
Loans and leases       4.50 %   4.40 %   4.33 %   4.33 %   4.27 %
Taxable investment securities and other     2.21 %   2.17 %   2.17 %   2.09 %   2.11 %
Tax-exempt securities       2.66 %   2.65 %   3.21 %   2.98 %   2.86 %
Federal funds sold and interest-bearing cash accounts   1.65 %   1.40 %   1.06 %   1.03 %   0.89 %
 Total interest-earning assets     4.12 %   4.02 %   3.95 %   3.93 %   3.88 %
                 
LIABILITIES              
Savings accounts       0.06 %   0.06 %   0.06 %   0.06 %   0.06 %
Interest-bearing transaction accounts     0.69 %   0.61 %   0.51 %   0.49 %   0.44 %
Time deposits       1.34 %   1.23 %   1.17 %   1.03 %   0.86 %
Borrowings         2.51 %   2.54 %   2.36 %   2.20 %   2.30 %
Total interest-bearing liabilities     0.91 %   0.83 %   0.75 %   0.71 %   0.63 %
Net interest spread (taxable equivalent basis)   3.21 %   3.19 %   3.20 %   3.22 %   3.25 %
                 
Annualized net interest margin (taxable equivalent basis)   3.43 %   3.39 %   3.37 %   3.39 %   3.41 %
Annualized cost of deposits     0.59 %   0.52 %   0.45 %   0.41 %   0.35 %
                 
ASSET QUALITY DATA            
ALLOWANCE FOR LOAN AND LEASE LOSSES          
Balance at beginning of period   $   35,644   $   35,455   $   33,925   $   32,823   $   31,590  
Provision for loan and lease losses       1,492       1,284       1,218       1,827       1,827  
Charge-offs           (963 )     (1,250 )     (347 )     (869 )     (870 )
Recoveries           431       155       659       144       276  
Balance at end of period     $   36,604   $   35,644   $   35,455   $   33,925   $   32,823  
                 
NET LOAN AND LEASE CHARGE-OFFS (RECOVERIES)          
Commercial, real estate     $   181   $   (13 ) $   132   $   285   $   (67 )
Commercial, industrial and other       213       992       25       168       44  
Leases           69       21       34       80       92  
Residential mortgages         (3 )     79       31       95       169  
Consumer and home equity       72       16       (534 )     97       356  
Net charge-offs (recoveries)   $   532   $   1,095   $   (312 ) $   725   $   594  
                 
NON-PERFORMING ASSETS            
Commercial, real estate     $   7,353   $   6,204   $   7,362   $   6,820   $   10,240  
Commercial, industrial and other       1,171       1,505       184       172       378  
Leases           834       250       144       110       81  
Residential mortgages         2,992       3,045       3,860       4,410       3,857  
Consumer and home equity       1,917       2,341       2,105       2,033       1,689  
Total non-accrual loans and leases       14,267       13,345       13,655       13,545       16,245  
Property acquired through foreclosure or repossession     2,184       1,392       843       1,168       1,415  
Total non-performing assets   $   16,451   $   14,737   $   14,498   $   14,713   $   17,660  
                 
Loans past due 90 days or more and still accruing $   -    $   1   $   200   $   9   $   20  
Loans restructured and still accruing   $   7,926   $   9,526   $   11,462   $   11,279   $   11,697  
                 
Ratio of allowance for loan and lease losses to total loans and leases         0.85 %   0.84 %   0.85 %   0.83 %   0.81 %
Total non-accrual loans and leases to total loans and leases         0.33 %   0.32 %   0.33 %   0.33 %   0.40 %
Total non-performing assets to total assets          0.30 %   0.27 %   0.27 %   0.27 %   0.33 %
Annualized net charge-offs (recoveries) to average loans and leases         0.05 %   0.10 %   -0.03 %   0.07 %   0.06 %
         

 

Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)
                 
        At or for the Quarter Ended
        June 30, Mar 31, Dec 31, Sept 30, June 30,
(Dollars in thousands, except per share amounts)   2018     2018     2017     2017     2017  
                 
CALCULATION OF TANGIBLE BOOK VALUE PER COMMON SHARE          
Total common stockholders' equity at end of period - GAAP $   597,864   $   588,648   $   583,122   $   577,081   $   567,545  
Less:  Goodwill           136,433       136,433       136,433       136,433       136,433  
Less:  Other identifiable intangible assets       2,052       2,205       2,362       2,526       2,631  
Total tangible common stockholders' equity at end of period - Non-GAAP $   459,379   $   450,010   $   444,327   $   438,122   $   428,481  
                 
Shares outstanding at end of period       47,484       47,476       47,354       47,353       47,353  
                 
Book value per share - GAAP       12.59   $   12.40   $   12.31   $   12.19   $   11.99  
                 
Tangible book value per share - Non-GAAP     9.67   $   9.48   $   9.38   $   9.25   $   9.05  
                 
CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS          
Total tangible common stockholders' equity at end of period - Non-GAAP $   459,379   $   450,010   $   444,327   $   438,122   $   428,481  
                 
Total assets at end of period - GAAP   $   5,534,488   $   5,477,829   $   5,405,639   $   5,399,481   $   5,362,187  
Less:  Goodwill           136,433       136,433       136,433       136,433       136,433  
Less:  Other identifiable intangible assets       2,052       2,205       2,362       2,526       2,631  
Total tangible assets at end of period - Non-GAAP $   5,396,003   $   5,339,191   $   5,266,844   $   5,260,522   $   5,223,123  
                 
Common equity to assets - GAAP       10.80 %   10.75 %   10.79 %   10.69 %   10.58 %
                 
Tangible common equity to tangible assets - Non-GAAP   8.51 %   8.43 %   8.44 %   8.33 %   8.20 %
                 
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY          
Net income - GAAP       $   15,838   $   15,255   $   13,175   $   13,723   $   13,370  
                 
Total average common stockholders' equity - GAAP $   593,388   $   583,700   $   581,254   $   574,113   $   565,211  
Less:  Average goodwill         136,433       136,433       136,433       136,433       135,755  
Less:  Average other identifiable intangible assets     2,134       2,300       2,450       2,606       3,069  
Total average tangible common stockholders' equity - Non-GAAP $   454,821   $   444,967   $   442,371   $   435,074   $   426,387  
                 
Return on average common stockholders' equity - GAAP   10.71 %   10.60 %   8.99 %   9.48 %   9.49 %
                 
Return on average tangible common stockholders' equity - Non-GAAP   13.97 %   13.90 %   11.82 %   12.51 %   12.58 %
                 
CALCULATION OF EFFICIENCY RATIO            
Total noninterest expense     $   27,574   $   27,137   $   25,849   $   24,849   $   25,366  
Amortization of core deposit intangibles       (153 )     (157 )     (165 )     (104 )     (190 )
Noninterest expense, as adjusted     $   27,421   $   26,980   $   25,684   $   24,745   $   25,176  
                 
Net interest income       $   43,493   $   42,236   $   42,379   $   42,115   $   41,421  
Total noninterest income         5,709       5,334       5,776       5,454       6,111  
Total revenue           49,202       47,570       48,155       47,569       47,532  
Tax-equivalent adjustment on municipal securities     114       118       247       271       281  
(Gains) losses on sales of investment securities     -        -        -        -        15  
Total revenue, as adjusted     $   49,316   $   47,688   $   48,402   $   47,840   $   47,828  
                 
Efficiency ratio - Non-GAAP       55.60 %   56.58 %   53.06 %   51.72 %   52.64 %
                 

 

Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)
        For the Six Months Ended,
        June 30, June 30,
(Dollars in thousands)         2018     2017  
           
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY      
Net income - GAAP       $   31,093   $   25,682  
           
Total average common stockholders' equity - GAAP     $   588,571   $   559,528  
Less:  Average goodwill           136,433       135,751  
Less:  Average other identifiable intangible assets         2,217       3,172  
Total average tangible common stockholders' equity - Non-GAAP   $   449,921   $   420,605  
           
Return on average common stockholders' equity - GAAP       10.65 %   9.26 %
           
Return on average tangible common stockholders' equity - Non-GAAP     13.94 %   12.31 %
           
CALCULATION OF EFFICIENCY RATIO          
Total noninterest expense       $   54,711   $   53,836  
           
Amortization of core deposit intangibles           (310 )     (385 )
Long-term debt prepayment fee           -        (2,828 )
Noninterest expense, as adjusted       $   54,401   $   50,623  
           
Net interest income       $   85,729   $   80,744  
Noninterest income           11,043       14,205  
Total revenue           96,772       94,949  
Tax-equivalent adjustment on municipal securities         232       556  
Gains on sales of investment securities           -        (2,524 )
Total revenue, as adjusted       $   97,004   $   92,981  
           
Efficiency ratio - Non-GAAP         56.08 %   54.44 %
           

 

 

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