Lakeland Bancorp, Inc. (NASDAQ:LBAI) (the “Company”) reported the
following results for the quarter ended June 30, 2016:
- Net income in the second quarter of 2016 was $10.1 million, 29%
higher than the $7.9 million for the same period in 2015.
Excluding merger related expenses of $0.6 million after tax,
pertaining to the Company’s acquisitions of Pascack Bancorp, Inc.
(“Pascack”), which closed on January 7, 2016, and Harmony Bank
(“Harmony”), which closed on July 1, 2016, net income for the
second quarter of 2016 was $10.7 million.
- Earnings per diluted share was $0.24 in the second quarter of
2016, 14% higher than the $0.21 per diluted share reported in the
second quarter of 2015. Excluding merger related expenses,
earnings per diluted share was $0.26 in the second quarter of 2016,
a 24% increase over the same period in 2015.
- For the second quarter of 2016, annualized return on average
assets was 0.93%, annualized return on average common equity was
9.04%, and annualized return on average tangible common equity was
12.63%. Excluding merger related expenses, these ratios were
0.98%, 9.54% and 13.33%, respectively.
- Net income for the first six months of 2016 was $18.2 million,
or $0.44 per diluted share, compared to $16.2 million, or $0.42 per
diluted share, for the same period in 2015. Excluding merger
related expenses of $1.7 million after tax, net income for the
first six months of 2016 was $20.0 million, or $0.48 per diluted
share.
- The annualized return on average assets for the six months
ended June 30, 2016 was 0.85%, the annualized return on average
common equity was 8.23%, and the annualized return on average
tangible common equity was 11.53%. Excluding merger related
expenses, these ratios were 0.93%, 9.00% and 12.62%,
respectively.
- The Company reported strong loan growth in the second quarter
of 2016. Total loans and leases increased by $85.3 million,
or 3%, to $3.45 billion during the quarter. This overall
increase was primarily due to the addition of $109.8 million, or
5%, in commercial real estate loans. For the first six months
of 2016, total loans and leases increased by $486.4 million, or
16%, to $3.45 billion during the quarter. This increase was
$166.4 million, or 6%, after excluding the $320 million in loans
acquired from Pascack.
- The Company also reported strong deposit growth in the second
quarter of 2016. Total deposits increased $74.7 million, or
2%, to $3.54 billion during the quarter. Most notably,
non-interest bearing deposits increased $49.6 million, or 6%,
during the quarter. Total deposits have increased $541.8
million, or 18%, since December 31, 2015. This increase was
$238.8 million, or 8%, after excluding the $303 million in deposits
acquired from Pascack. Non-interest bearing deposits
increased $130.3 million, or 19%, in 2016. This increase was
$66.3, or 10%, after excluding the $64 million in deposits acquired
from Pascack.
- Net interest margin (“NIM”) was 3.47% for the second quarter of
2016, compared to 3.48% for the first quarter of 2016 and 3.46% for
the second quarter of 2015.
- The efficiency ratio was 56.23% for the three months ended June
30, 2016, as compared to 62.09% for the same period in 2015.
The decrease in this ratio, in part, reflects the realization of
cost savings from the Pascack acquisition, including the closing of
three branches.
- On July 20, 2016, the Company declared a quarterly cash
dividend of $0.095 per common share, payable on August 12, 2016 to
holders of record as of the close of business on August 3,
2016.
Thomas J. Shara, Lakeland Bancorp’s President and CEO said, “We
are very proud of the earnings growth during the second quarter of
2016 and our lowest efficiency ratio in six years. It
reflects the success of several significant initiatives we have
undertaken, including the acquisition of Pascack earlier in 2016,
the opening of two loan production offices in 2015, a commitment to
growing our commercial loan portfolio and prudent management of our
expenses. In addition, since June 30, 2015, our assets have
grown 21% to $4.5 billion at June 30, 2016 and 27% to $4.7 billion
including the acquisition of Harmony Bank at the beginning of the
third quarter.”
Earnings
Net income for the second quarter of 2016 was
$10.1 million, as compared to $7.9 million for the second quarter
of 2015. Excluding merger related expenses of $0.6 million
after tax, net income for the second quarter of 2016 was $10.7
million.
Net income for the first six months of 2016 was
$18.2 million, as compared to $16.2 million for the same period in
2015. Excluding merger related expenses of $1.7 million after
tax, net income for the first six months of 2016 was $20.0
million.
Net Interest Income
Net interest income for the second quarter of
2016 was $35.1 million, as compared to $28.7 million for the same
period in 2015. This increase was primarily due to higher
levels of loans in 2016 than 2015. NIM was 3.47% for the
second quarter of 2016, compared to 3.46% for the second quarter of
2015. Included within these percentages were $0.6 million of
prepayment fees, gains on called securities, and interest
recoveries in 2016, versus $0.3 million in 2015. The yield on
interest earning assets for the second quarter of 2016 was 3.85%,
as compared to 3.78% reported in the second quarter of 2015.
The cost of interest bearing liabilities for the second
quarter of 2016 was 0.50%, as compared to 0.42% in the second
quarter of 2015, reflecting the higher cost of deposits.
Net interest income for the first six months of
2016 was $69.0 million, as compared to $57.2 million reported for
the first six months of 2015. NIM for the first six months of
2016 was 3.48%, compared to 3.51% for the same period in
2015. Included within these percentages were $1.0 million of
prepayment fees, gains on called securities, and interest
recoveries in 2016, versus $0.8 million in 2015. The yield on
earning assets was 3.86% for the first six months of 2016 and 3.82%
for the same period in 2015. The cost of interest bearing
liabilities for 2016 was 0.50%, as compared to 0.41% in the first
six months of 2015, reflecting the higher cost of deposits.
Non-interest Income
Non-interest income totaled $4.9 million for the
second quarter of 2016, as compared to $5.0 million for the same
period in 2015.
Non-interest income totaled $9.8 million for the
first six months of 2016, as compared to $9.7 million for the same
period in 2015. Commissions and fees of $2.1 million declined
$0.4 million from the first six months of 2015 to the first six
months of 2016, primarily because of a decline in financial
services income related to a decrease in demand for
annuities. Income on bank owned life insurance of $0.8
million declined $0.3 million from the first six months of 2015 to
the first six months of 2016 because of death benefits received on
a bank owned life insurance policy in 2015 that did not recur in
2016. These decreases were partially offset by $0.4 million
in additional realized gains from the sale of investment securities
and a $0.2 million increase in service charges on deposit accounts
from higher debit card interchange fee income.
Non-interest Expense
Non-interest expense for the second quarter of
2016 was $23.7 million, an increase of $2.5 million compared to
$21.2 million for the same period in 2015. Excluding the pre-tax
impact of $0.7 million in merger related expenses, non-interest
expense increased by $1.8 million. Salary and benefit expense
of $13.1 million increased by $0.9 million, due primarily to a full
quarter of expenses associated with the loan production offices
that opened in the first and second quarters of 2015, the addition
of Pascack employees during the first quarter in 2016 and
year-over-year increases in employee salary and benefit costs.
Net occupancy expense of $2.3 million, furniture and
equipment at $2.1 million, and FDIC insurance expense of $0.7
million increased a combined $0.7 million, primarily due to the
addition of Pascack branches and deposits.
For the first six months of 2016, non-interest
expenses were $49.1 million, an increase of $7.9 million when
compared to $41.2 million for the same period in 2015.
Excluding the pre-tax impact of $2.4 million in merger
related expenses, non-interest expense increased by $5.5
million. Salary and benefit expense of $27.2 million
increased by $3.3 million, due primarily to two full quarters of
expenses associated with the loan production offices that opened in
the first and second quarters of 2015, the addition of Pascack
employees during the first quarter in 2016 and year-over-year
increases in employee salary and benefit costs. The remaining
increases in non-interest expense categories were primarily due to
the costs related to the addition of Pascack branches, including
occupancy, FDIC insurance expense and supplies.
Financial Condition
From December 31, 2015 to June 30, 2016, total
assets increased $598.3 million to $4.47 billion, including $390
million from Pascack. During the same period, total loans and
leases increased by $486.4 million, including $320 million from
Pascack, and total deposits increased $541.8 million to $3.54
billion, including $303 million from Pascack. Excluding
Pascack, total loans and leases increased 6% and deposits increased
8%. Also, non-interest bearing deposits increased $130.3
million to $824.1 million in 2016, including $64 million from
Pascack, while interest bearing deposits increased $411.4 million
to $2.71 billion, including $239 million from Pascack.
Asset Quality
At June 30, 2016, non-performing assets totaled
$26.5 million (0.59% of total assets), compared to $23.7 million
(0.61% of total assets) at December 31, 2015. Non-performing
loans and leases as a percent of total loans and leases at 0.72%
decreased four basis points from December 31, 2015. The
allowance for loan and lease losses totaled $30.7 million at June
30, 2016, and represented 0.89% of total loans and leases, compared
to $30.9 million at December 31, 2015, which represented 1.04% of
total loans and leases, prior to the Pascack acquisition. For
the first six months of 2016, the Company had net charge-offs of
$2.3 million (0.14% of average loans), as compared to $2.1 million
(0.16% of average loans) for the same period in 2015. The
provision for loan and lease losses for the first six months of
2016 was $2.1 million, compared to $1.6 million for the same period
in 2015.
Capital
At June 30, 2016, stockholders' equity was
$454.9 million, while book value per common share was $11.03.
Tangible book value per common share was $7.93, an increase
of 4% from December 31, 2015. As of June 30, 2016, the
Company’s leverage ratio was 8.24%. Tier I and total risk
based capital ratios were 9.74% and 10.65%, respectively. The
common equity tier 1 capital ratio was 8.91%. The tangible
common equity ratio was 7.53%. The regulatory capital ratios
exceed those necessary to be considered a well-capitalized
institution under Federal regulatory 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,
failure to successfully integrate and realize anticipated
efficiencies and synergies after the Pascack Community Bank and
Harmony Bank mergers. Any statements made by Lakeland that
are not historical facts should be considered to be forward-looking
statements. Lakeland is not obligated to update and does not
undertake to update any of its forward-looking statements made
herein.
Explanation of Non-GAAP Financial
Measures
Reported amounts are presented in accordance
with accounting principles generally accepted in the United States
of America ("GAAP"). The Company’s management believes
that the supplemental non-GAAP information, which consists of
measurements and ratios based on tangible equity and tangible
assets, is utilized by regulators and market analysts to evaluate a
company’s financial condition and therefore, such information is
useful to investors. These disclosures should not be
viewed as a substitute for financial results determined in
accordance with GAAP, nor are they necessarily comparable to
non-GAAP performance measures which may be presented by other
companies.
The Company also uses an efficiency ratio that
is a non-GAAP financial measure. The ratio that the Company
uses excludes amortization of core deposit intangibles, expenses on
other real estate owned and other repossessed assets, provision for
unfunded lending commitments and, where applicable, long-term debt
prepayment fees and merger related expenses. Income for the
non-GAAP ratio is increased by the favorable effect of tax-exempt
income and excludes securities gains and losses and gain on debt
extinguishment, which can vary from period to period. The
Company uses this ratio because it believes the ratio provides a
better comparison of period to period operating performance.
About Lakeland BankLakeland
Bancorp, the holding company for Lakeland Bank, has approximately
$4.7 billion in total assets with 56 New Jersey branch offices in
Bergen, Essex, Morris, Ocean, Passaic, Somerset, Sussex, Union and
Warren counties, five New Jersey regional commercial lending
centers in Bernardsville, Jackson, Montville, Teaneck and 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 array of consumer and
commercial products and services, including online and mobile
banking, localized commercial lending teams, and 24-hour or less
turnaround time on consumer loan applications. For more
information about the full line of products and services, visit
LakelandBank.com.
|
Lakeland Bancorp, Inc. |
Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(Dollars in thousands, except per share amounts) |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT |
|
|
|
|
|
|
|
|
Net
interest income |
|
|
$ |
35,102 |
|
|
$ |
28,669 |
|
|
$ |
68,952 |
|
|
$ |
57,187 |
|
Provision
for loan and lease losses |
|
|
(1,010 |
) |
|
|
(740 |
) |
|
|
(2,085 |
) |
|
|
(1,610 |
) |
Other
non-interest income |
|
|
4,460 |
|
|
|
4,477 |
|
|
|
8,537 |
|
|
|
8,950 |
|
Gain on
investment securities |
|
|
- |
|
|
|
17 |
|
|
|
370 |
|
|
|
17 |
|
Gain on
sale of loans |
|
|
|
425 |
|
|
|
464 |
|
|
|
845 |
|
|
|
729 |
|
Merger
related expenses |
|
|
|
(685 |
) |
|
|
- |
|
|
|
(2,406 |
) |
|
|
- |
|
Provision
for unfunded lending commitments |
|
(230 |
) |
|
|
(60 |
) |
|
|
(438 |
) |
|
|
(190 |
) |
Other
non-interest expense |
|
|
(22,800 |
) |
|
|
(21,135 |
) |
|
|
(46,295 |
) |
|
|
(41,047 |
) |
Pretax income |
|
|
|
15,262 |
|
|
|
11,692 |
|
|
|
27,480 |
|
|
|
24,036 |
|
Provision
for income taxes |
|
|
(5,132 |
) |
|
|
(3,830 |
) |
|
|
(9,242 |
) |
|
|
(7,844 |
) |
Net income |
|
|
$ |
10,130 |
|
|
$ |
7,862 |
|
|
$ |
18,238 |
|
|
$ |
16,192 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.24 |
|
|
$ |
0.21 |
|
|
$ |
0.44 |
|
|
$ |
0.42 |
|
Diluted
earnings per common share |
|
$ |
0.24 |
|
|
$ |
0.21 |
|
|
$ |
0.44 |
|
|
$ |
0.42 |
|
Dividends
per common share |
|
$ |
0.095 |
|
|
$ |
0.085 |
|
|
$ |
0.180 |
|
|
$ |
0.160 |
|
Weighted
average shares - basic |
|
|
41,238 |
|
|
|
37,854 |
|
|
|
41,084 |
|
|
|
37,827 |
|
Weighted
average shares - diluted |
|
|
41,406 |
|
|
|
37,988 |
|
|
|
41,245 |
|
|
|
37,961 |
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING RATIOS |
|
|
|
|
|
|
|
|
Annualized
return on average assets |
|
|
0.93 |
% |
|
|
0.88 |
% |
|
|
0.85 |
% |
|
|
0.92 |
% |
Annualized
return on average common equity |
|
9.04 |
% |
|
|
8.08 |
% |
|
|
8.23 |
% |
|
|
8.44 |
% |
Annualized
return on average tangible common equity (1) |
|
12.63 |
% |
|
|
11.33 |
% |
|
|
11.53 |
% |
|
|
11.87 |
% |
Annualized
return on interest earning assets |
|
3.85 |
% |
|
|
3.78 |
% |
|
|
3.86 |
% |
|
|
3.82 |
% |
Annualized
cost of interest bearing liabilities |
|
0.50 |
% |
|
|
0.42 |
% |
|
|
0.50 |
% |
|
|
0.41 |
% |
Annualized
net interest spread |
|
|
3.35 |
% |
|
|
3.36 |
% |
|
|
3.36 |
% |
|
|
3.41 |
% |
Annualized
net interest margin |
|
|
3.47 |
% |
|
|
3.46 |
% |
|
|
3.48 |
% |
|
|
3.51 |
% |
Efficiency
ratio (1) |
|
|
|
56.23 |
% |
|
|
62.09 |
% |
|
|
58.26 |
% |
|
|
60.64 |
% |
Stockholders' equity to total assets |
|
|
|
|
|
|
10.18 |
% |
|
|
10.57 |
% |
Book value
per common share |
|
|
|
|
|
$ |
11.03 |
|
|
$ |
10.31 |
|
Tangible
book value per common share (1) |
|
|
|
|
$ |
7.93 |
|
|
$ |
7.36 |
|
Tangible
common equity to tangible assets (1) |
|
|
|
|
|
7.53 |
% |
|
|
7.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY RATIOS |
|
|
|
|
|
6/30/2016 |
|
6/30/2015 |
Ratio of allowance for loan and lease losses to total loans and
leases |
|
|
|
|
0.89 |
% |
|
|
1.09 |
% |
Non-performing loans and leases to total loans and leases |
|
|
|
|
|
0.72 |
% |
|
|
0.69 |
% |
Non-performing assets to total assets |
|
|
|
|
|
|
0.59 |
% |
|
|
0.54 |
% |
Annualized net charge-offs to average loans and leases |
|
|
|
|
|
0.14 |
% |
|
|
0.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET DATA AT PERIOD-END |
|
|
|
6/30/2016 |
|
6/30/2015 |
Loans and
leases |
|
|
|
|
|
|
$ |
3,454,304 |
|
|
$ |
2,756,694 |
|
Allowance
for loan and lease losses |
|
|
|
|
|
(30,667 |
) |
|
|
(30,174 |
) |
Investment
securities |
|
|
|
|
|
|
|
602,408 |
|
|
|
597,598 |
|
Total assets |
|
|
|
|
|
|
|
|
4,467,860 |
|
|
|
3,699,127 |
|
Total
deposits |
|
|
|
|
|
|
3,537,331 |
|
|
|
2,842,953 |
|
Short-term
borrowings |
|
|
|
|
|
|
|
123,662 |
|
|
|
146,249 |
|
Other
borrowings |
|
|
|
|
|
|
|
326,009 |
|
|
|
303,966 |
|
Stockholders' equity |
|
|
|
|
|
|
454,934 |
|
|
|
390,860 |
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED AVERAGE BALANCE SHEET DATA |
For the Three Months Ended |
|
For the Six Months Ended |
|
|
|
|
6/30/2016 |
|
6/30/2015 |
|
6/30/2016 |
|
6/30/2015 |
Loans and
leases |
|
|
$ |
3,412,503 |
|
|
$ |
2,720,801 |
|
|
$ |
3,348,421 |
|
|
$ |
2,690,823 |
|
Investment
securities |
|
|
|
575,206 |
|
|
|
600,547 |
|
|
|
572,894 |
|
|
|
591,778 |
|
Interest
earning assets |
|
|
4,094,575 |
|
|
|
3,345,380 |
|
|
|
4,013,868 |
|
|
|
3,308,450 |
|
Total
assets |
|
|
4,403,588 |
|
|
|
3,600,416 |
|
|
|
4,326,028 |
|
|
|
3,563,860 |
|
Non-interest bearing demand deposits |
|
|
801,488 |
|
|
|
688,854 |
|
|
|
780,843 |
|
|
|
674,780 |
|
Savings
deposits |
|
|
|
485,580 |
|
|
|
402,142 |
|
|
|
480,725 |
|
|
|
398,667 |
|
Interest
bearing transaction accounts |
|
|
1,775,129 |
|
|
|
1,480,866 |
|
|
|
1,728,855 |
|
|
|
1,488,028 |
|
Time
deposits |
|
|
|
487,169 |
|
|
|
295,996 |
|
|
|
476,097 |
|
|
|
288,459 |
|
Total
deposits |
|
|
3,549,366 |
|
|
|
2,867,858 |
|
|
|
3,466,520 |
|
|
|
2,849,934 |
|
Short-term
borrowings |
|
|
|
31,591 |
|
|
|
59,249 |
|
|
|
40,963 |
|
|
|
53,570 |
|
Other
borrowings |
|
|
|
346,347 |
|
|
|
267,610 |
|
|
|
347,718 |
|
|
|
257,519 |
|
Total
interest bearing liabilities |
|
|
3,125,815 |
|
|
|
2,505,863 |
|
|
|
3,074,357 |
|
|
|
2,486,243 |
|
Stockholders' equity |
|
|
|
450,806 |
|
|
|
390,151 |
|
|
|
445,815 |
|
|
|
386,887 |
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
Loans and fees |
|
|
|
|
$ |
35,800 |
|
$ |
28,211 |
|
|
$ |
69,921 |
|
$ |
56,107 |
|
|
Federal funds sold and interest bearing deposits with
banks |
|
|
124 |
|
|
11 |
|
|
|
199 |
|
|
23 |
|
|
Taxable investment securities and other |
|
|
|
2,696 |
|
|
2,688 |
|
|
|
5,658 |
|
|
5,362 |
|
|
Tax exempt investment securities |
|
|
|
|
417 |
|
|
398 |
|
|
|
830 |
|
|
808 |
|
|
|
TOTAL INTEREST INCOME |
|
|
|
|
39,037 |
|
|
31,308 |
|
|
|
76,608 |
|
|
62,300 |
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
2,404 |
|
|
1,346 |
|
|
|
4,609 |
|
|
2,629 |
|
|
Federal funds purchased and securities sold under agreements to
repurchase |
|
|
9 |
|
|
37 |
|
|
|
47 |
|
|
59 |
|
|
Other borrowings |
|
|
|
|
|
1,522 |
|
|
1,256 |
|
|
|
3,000 |
|
|
2,425 |
|
|
|
TOTAL INTEREST EXPENSE |
|
|
|
3,935 |
|
|
2,639 |
|
|
|
7,656 |
|
|
5,113 |
|
|
NET INTEREST INCOME |
|
|
|
|
35,102 |
|
|
28,669 |
|
|
|
68,952 |
|
|
57,187 |
|
|
Provision for loan and lease losses |
|
|
|
|
1,010 |
|
|
740 |
|
|
|
2,085 |
|
|
1,610 |
|
|
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE
LOSSES |
|
34,092 |
|
|
27,929 |
|
|
|
66,867 |
|
|
55,577 |
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
|
|
2,523 |
|
|
2,450 |
|
|
|
4,965 |
|
|
4,790 |
|
|
Commissions and fees |
|
|
|
|
|
1,099 |
|
|
1,196 |
|
|
|
2,078 |
|
|
2,503 |
|
|
Gain on investment securities |
|
|
|
|
- |
|
|
17 |
|
|
|
370 |
|
|
17 |
|
|
Gain on sale of loans |
|
|
|
|
|
425 |
|
|
464 |
|
|
|
845 |
|
|
729 |
|
|
Income on bank owned life insurance |
|
|
|
|
414 |
|
|
388 |
|
|
|
822 |
|
|
1,087 |
|
|
Other
income |
|
|
|
|
|
|
424 |
|
|
443 |
|
|
|
672 |
|
|
570 |
|
|
|
TOTAL
NON-INTEREST INCOME |
|
|
|
|
|
4,885 |
|
|
4,958 |
|
|
|
9,752 |
|
|
9,696 |
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
|
|
13,091 |
|
|
12,144 |
|
|
|
27,176 |
|
|
23,894 |
|
|
Net occupancy expense |
|
|
|
|
|
2,341 |
|
|
2,273 |
|
|
|
5,029 |
|
|
4,821 |
|
|
Furniture and equipment |
|
|
|
|
|
2,082 |
|
|
1,629 |
|
|
|
4,028 |
|
|
3,285 |
|
|
Stationary, supplies and postage |
|
|
|
|
416 |
|
|
377 |
|
|
|
859 |
|
|
742 |
|
|
Marketing expense |
|
|
|
|
|
385 |
|
|
416 |
|
|
|
694 |
|
|
656 |
|
|
FDIC insurance expense |
|
|
|
|
|
681 |
|
|
531 |
|
|
|
1,271 |
|
|
1,049 |
|
|
ATM and debit card expense |
|
|
|
|
383 |
|
|
382 |
|
|
|
729 |
|
|
724 |
|
|
Telecommunications expense |
|
|
|
|
386 |
|
|
358 |
|
|
|
810 |
|
|
703 |
|
|
Data processing expense |
|
|
|
|
|
459 |
|
|
438 |
|
|
|
979 |
|
|
773 |
|
|
Other real estate owned and other repossessed assets
expense |
|
|
26 |
|
|
27 |
|
|
|
65 |
|
|
19 |
|
|
Merger related expenses |
|
|
|
|
|
685 |
|
|
- |
|
|
|
2,406 |
|
|
- |
|
|
Core deposit intangible amortization |
|
|
|
|
164 |
|
|
107 |
|
|
|
331 |
|
|
218 |
|
|
Provision for unfunded lending commitments |
|
|
|
230 |
|
|
60 |
|
|
|
438 |
|
|
190 |
|
|
Other expenses |
|
|
|
|
|
|
2,386 |
|
|
2,453 |
|
|
|
4,324 |
|
|
4,163 |
|
|
|
TOTAL NON-INTEREST EXPENSE |
|
|
23,715 |
|
|
21,195 |
|
|
|
49,139 |
|
|
41,237 |
|
|
INCOME BEFORE PROVISION FOR INCOME
TAXES |
|
|
|
|
|
|
15,262 |
|
|
11,692 |
|
|
|
27,480 |
|
|
24,036 |
|
|
Provision for income taxes |
|
|
|
|
|
|
5,132 |
|
|
3,830 |
|
|
|
9,242 |
|
|
7,844 |
|
|
NET INCOME |
|
|
|
|
|
$ |
10,130 |
|
$ |
7,862 |
|
|
$ |
18,238 |
|
$ |
16,192 |
|
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
$ |
0.24 |
|
$ |
0.21 |
|
|
$ |
0.44 |
|
$ |
0.42 |
|
|
Diluted |
|
|
|
|
|
$ |
0.24 |
|
$ |
0.21 |
|
|
$ |
0.44 |
|
$ |
0.42 |
|
|
DIVIDENDS PER COMMON SHARE |
|
|
|
|
|
$ |
0.095 |
|
$ |
0.085 |
|
|
$ |
0.180 |
|
$ |
0.160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
(Dollars in thousands) |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
Cash and due from banks |
|
|
|
$ |
146,306 |
|
|
$ |
113,894 |
|
Federal funds sold and interest bearing deposits due from
banks |
|
|
|
|
|
6,577 |
|
|
|
4,599 |
|
Total cash and cash
equivalents |
|
|
|
|
|
152,883 |
|
|
|
118,493 |
|
|
|
|
|
|
|
|
|
Investment securities available for sale, at fair value |
|
|
460,390 |
|
|
|
442,349 |
|
Investment securities held to maturity; fair value of $129,447
in 2016 |
|
|
|
and $117,594 in 2015 |
|
|
|
|
126,221 |
|
|
|
116,740 |
|
Federal Home Loan Bank and other membership stocks, at
cost |
|
15,797 |
|
|
|
14,087 |
|
Loans held
for sale |
|
|
|
|
6,463 |
|
|
|
1,233 |
|
Loans and
leases: |
|
|
|
|
|
|
Commercial, real
estate |
|
|
|
|
2,353,125 |
|
|
|
1,879,659 |
|
Commercial, industrial
and other |
|
|
|
313,062 |
|
|
|
307,044 |
|
Leases |
|
|
|
|
|
63,338 |
|
|
|
56,660 |
|
Residential
mortgages |
|
|
|
|
383,823 |
|
|
|
389,692 |
|
Consumer and home equity |
|
|
|
340,956 |
|
|
|
334,891 |
|
Total loans and
leases |
|
|
|
3,454,304 |
|
|
|
2,967,946 |
|
Net deferred costs |
|
|
|
|
(2,922 |
) |
|
|
(2,746 |
) |
Allowance for loan and lease losses |
|
|
|
(30,667 |
) |
|
|
(30,874 |
) |
Net loans and leases |
|
|
|
|
|
3,420,715 |
|
|
|
2,934,326 |
|
Premises and equipment, net |
|
|
|
49,322 |
|
|
|
35,881 |
|
Accrued interest receivable |
|
|
|
10,480 |
|
|
|
9,208 |
|
Goodwill |
|
|
|
|
|
125,285 |
|
|
|
109,974 |
|
Other identifiable intangible assets |
|
|
|
2,728 |
|
|
|
1,545 |
|
Bank owned life insurance |
|
|
|
|
66,212 |
|
|
|
65,361 |
|
Other assets |
|
|
|
|
|
31,364 |
|
|
|
20,353 |
|
TOTAL
ASSETS |
|
|
|
|
$ |
4,467,860 |
|
|
$ |
3,869,550 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Non-interest
bearing |
|
|
|
$ |
824,077 |
|
|
$ |
693,741 |
|
Savings and interest
bearing transaction accounts |
|
|
2,235,918 |
|
|
|
1,958,510 |
|
Time deposits through $250,000 |
|
|
|
|
|
359,471 |
|
|
|
270,623 |
|
Time deposits over $250,000 |
|
|
|
|
|
117,865 |
|
|
|
72,698 |
|
Total deposits |
|
|
|
|
|
3,537,331 |
|
|
|
2,995,572 |
|
Federal funds purchased and securities sold under agreements to
repurchase |
|
123,662 |
|
|
|
151,234 |
|
Other borrowings |
|
|
|
|
294,771 |
|
|
|
271,905 |
|
Subordinated debentures |
|
|
|
|
31,238 |
|
|
|
31,238 |
|
Other liabilities |
|
|
|
|
|
25,924 |
|
|
|
19,085 |
|
TOTAL
LIABILITIES |
|
|
|
|
4,012,926 |
|
|
|
3,469,034 |
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
Common stock, no par value; authorized 70,000,000 shares; |
|
|
|
issued 41,240,826
shares at June 30, 2016 |
|
|
|
|
|
|
|
and 37,906,481 shares
at December 31, 2015 |
|
|
|
|
|
424,409 |
|
|
|
386,287 |
|
Retained earnings |
|
|
|
|
23,836 |
|
|
|
13,079 |
|
Accumulated other
comprehensive gain |
|
|
|
|
6,689 |
|
|
|
1,150 |
|
TOTAL STOCKHOLDERS'
EQUITY |
|
|
|
|
|
454,934 |
|
|
|
400,516 |
|
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
$ |
4,467,860 |
|
|
$ |
3,869,550 |
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
|
Financial Highlights |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
|
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
Jun 30, |
|
(Dollars in thousands, except per share data) |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT |
|
|
|
|
|
|
|
Net
interest income |
|
$ |
35,102 |
|
$ |
33,850 |
|
$ |
30,119 |
|
$ |
29,334 |
|
$ |
28,669 |
|
|
Provision
for loan and lease losses |
|
|
(1,010 |
) |
|
(1,075 |
) |
|
- |
|
|
(332 |
) |
|
(740 |
) |
|
Other
non-interest income |
|
|
4,460 |
|
|
4,077 |
|
|
4,290 |
|
|
4,169 |
|
|
4,477 |
|
|
Gain on
investment securities |
|
|
- |
|
|
370 |
|
|
51 |
|
|
173 |
|
|
17 |
|
|
Gain on
sale of loans |
|
|
425 |
|
|
420 |
|
|
437 |
|
|
515 |
|
|
464 |
|
|
Gain on
debt extinguishment |
|
|
- |
|
|
- |
|
|
- |
|
|
1,830 |
|
|
- |
|
|
Long-term
debt prepayment fee |
|
|
- |
|
|
- |
|
|
- |
|
|
(2,407 |
) |
|
- |
|
|
Merger
related expenses |
|
|
(685 |
) |
|
(1,721 |
) |
|
(822 |
) |
|
(330 |
) |
|
- |
|
|
Provision
for unfunded lending commitments |
|
|
(230 |
) |
|
(208 |
) |
|
(506 |
) |
|
(168 |
) |
|
(60 |
) |
|
Other
non-interest expense |
|
|
(22,800 |
) |
|
(23,495 |
) |
|
(20,814 |
) |
|
(20,927 |
) |
|
(21,135 |
) |
|
Pretax income |
|
|
15,262 |
|
|
12,218 |
|
|
12,755 |
|
|
11,857 |
|
|
11,692 |
|
|
Provision
for income taxes |
|
|
(5,132 |
) |
|
(4,110 |
) |
|
(4,291 |
) |
|
(4,032 |
) |
|
(3,830 |
) |
|
Net income |
|
$ |
10,130 |
|
$ |
8,108 |
|
$ |
8,464 |
|
$ |
7,825 |
|
$ |
7,862 |
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.24 |
|
$ |
0.20 |
|
$ |
0.22 |
|
$ |
0.20 |
|
$ |
0.21 |
|
|
Diluted
earnings per common share |
|
$ |
0.24 |
|
$ |
0.20 |
|
$ |
0.22 |
|
$ |
0.20 |
|
$ |
0.21 |
|
|
Dividends
per common share |
|
$ |
0.095 |
|
$ |
0.085 |
|
$ |
0.085 |
|
$ |
0.085 |
|
$ |
0.085 |
|
|
Dividends
paid |
|
$ |
3,955 |
|
$ |
3,525 |
|
$ |
3,246 |
|
$ |
3,244 |
|
$ |
3,243 |
|
|
Weighted
average shares - basic |
|
|
41,238 |
|
|
40,931 |
|
|
37,865 |
|
|
37,856 |
|
|
37,854 |
|
|
Weighted
average shares - diluted |
|
|
41,406 |
|
|
41,091 |
|
|
38,048 |
|
|
38,016 |
|
|
37,988 |
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING RATIOS |
|
|
|
|
|
|
|
Annualized
return on average assets |
|
|
0.93 |
% |
|
0.77 |
% |
|
0.89 |
% |
|
0.84 |
% |
|
0.88 |
% |
|
Annualized
return on average common equity |
|
|
9.04 |
% |
|
7.40 |
% |
|
8.40 |
% |
|
7.86 |
% |
|
8.08 |
% |
|
Annualized
return on average tangible common equity (1) |
|
12.63 |
% |
|
10.40 |
% |
|
11.64 |
% |
|
10.96 |
% |
|
11.33 |
% |
|
Annualized
net interest margin |
|
|
3.47 |
% |
|
3.48 |
% |
|
3.43 |
% |
|
3.42 |
% |
|
3.46 |
% |
|
Efficiency
ratio (1) |
|
|
56.23 |
% |
|
60.38 |
% |
|
58.70 |
% |
|
60.77 |
% |
|
62.09 |
% |
|
Common
stockholders' equity to total assets |
|
|
10.18 |
% |
|
10.15 |
% |
|
10.35 |
% |
|
10.62 |
% |
|
10.57 |
% |
|
Tangible
common equity to tangible assets (1) |
|
|
7.53 |
% |
|
7.45 |
% |
|
7.69 |
% |
|
7.88 |
% |
|
7.78 |
% |
|
Tier 1
risk-based ratio |
|
|
9.74 |
% |
|
9.93 |
% |
|
10.53 |
% |
|
10.81 |
% |
|
11.05 |
% |
|
Total
risk-based ratio |
|
|
10.65 |
% |
|
10.87 |
% |
|
11.61 |
% |
|
11.93 |
% |
|
12.15 |
% |
|
Tier 1
leverage ratio |
|
|
8.24 |
% |
|
8.33 |
% |
|
8.70 |
% |
|
8.77 |
% |
|
9.12 |
% |
|
Common
equity tier 1 capital ratio |
|
|
8.91 |
% |
|
9.06 |
% |
|
9.54 |
% |
|
9.78 |
% |
|
9.66 |
% |
|
Book value
per common share |
|
$ |
11.03 |
|
$ |
10.84 |
|
$ |
10.57 |
|
$ |
10.49 |
|
$ |
10.31 |
|
|
Tangible
book value per common share (1) |
|
$ |
7.93 |
|
$ |
7.72 |
|
$ |
7.62 |
|
$ |
7.55 |
|
$ |
7.36 |
|
|
|
|
|
|
|
|
|
|
|
(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, |
Jun 30, |
(Dollars in thousands) |
|
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET DATA AT PERIOD-END |
|
|
|
|
Loans and
leases |
|
|
$ |
3,454,304 |
|
$ |
3,368,961 |
|
$ |
2,967,946 |
|
$ |
2,853,764 |
|
$ |
2,756,694 |
|
Allowance
for loan and lease losses |
|
(30,667 |
) |
|
(30,553 |
) |
|
(30,874 |
) |
|
(30,994 |
) |
|
(30,174 |
) |
Investment
securities |
|
|
|
602,408 |
|
|
573,136 |
|
|
573,176 |
|
|
559,295 |
|
|
597,598 |
|
Total assets |
|
|
|
|
4,467,860 |
|
|
4,404,233 |
|
|
3,869,550 |
|
|
3,743,100 |
|
|
3,699,127 |
|
Total
deposits |
|
|
|
3,537,331 |
|
|
3,462,636 |
|
|
2,995,571 |
|
|
2,919,673 |
|
|
2,842,953 |
|
Short-term
borrowings |
|
|
|
123,662 |
|
|
128,841 |
|
|
151,234 |
|
|
131,356 |
|
|
146,249 |
|
Other
borrowings |
|
|
|
326,009 |
|
|
341,269 |
|
|
303,143 |
|
|
275,666 |
|
|
303,966 |
|
Stockholders' equity |
|
|
|
454,934 |
|
|
446,875 |
|
|
400,516 |
|
|
397,687 |
|
|
390,860 |
|
|
|
|
|
|
|
|
|
|
LOANS AND
LEASES |
|
|
|
|
|
|
|
Commercial,
real estate |
|
|
$ |
2,353,125 |
|
$ |
2,243,335 |
|
$ |
1,879,659 |
|
$ |
1,776,911 |
|
$ |
1,695,276 |
|
Commercial,
industrial and other |
|
|
313,062 |
|
|
332,097 |
|
|
307,044 |
|
|
290,961 |
|
|
262,617 |
|
Leases |
|
|
|
|
63,338 |
|
|
60,925 |
|
|
56,660 |
|
|
55,057 |
|
|
53,798 |
|
Residential
mortgages |
|
|
|
383,823 |
|
|
392,387 |
|
|
389,692 |
|
|
400,247 |
|
|
414,339 |
|
Consumer
and home equity |
|
|
340,956 |
|
|
340,217 |
|
|
334,891 |
|
|
330,588 |
|
|
330,664 |
|
Total loans and
leases |
|
|
$ |
3,454,304 |
|
$ |
3,368,961 |
|
$ |
2,967,946 |
|
$ |
2,853,764 |
|
$ |
2,756,694 |
|
|
|
|
|
|
|
|
|
|
DEPOSITS |
|
|
|
|
|
|
|
|
Non-interest bearing |
|
|
$ |
824,077 |
|
$ |
774,487 |
|
$ |
693,741 |
|
$ |
694,267 |
|
$ |
714,227 |
|
Savings and
interest bearing transaction accounts |
|
2,235,918 |
|
|
2,204,356 |
|
|
1,958,510 |
|
|
1,907,858 |
|
|
1,822,295 |
|
Time
deposits |
|
|
|
477,336 |
|
|
483,793 |
|
|
343,321 |
|
|
317,548 |
|
|
306,431 |
|
Total deposits |
|
|
$ |
3,537,331 |
|
$ |
3,462,636 |
|
$ |
2,995,572 |
|
$ |
2,919,673 |
|
$ |
2,842,953 |
|
|
|
|
|
|
|
|
|
|
SELECTED AVERAGE BALANCE SHEET DATA |
|
|
|
|
Loans and
leases |
|
|
$ |
3,412,503 |
|
$ |
3,284,339 |
|
$ |
2,898,477 |
|
$ |
2,811,581 |
|
$ |
2,720,801 |
|
Investment
securities |
|
|
|
575,206 |
|
|
570,581 |
|
|
561,024 |
|
|
581,565 |
|
|
600,547 |
|
Interest
earning assets |
|
|
|
4,094,575 |
|
|
3,933,160 |
|
|
3,509,867 |
|
|
3,431,018 |
|
|
3,345,380 |
|
Total
assets |
|
|
4,403,588 |
|
|
4,248,468 |
|
|
3,779,819 |
|
|
3,685,573 |
|
|
3,600,416 |
|
Non-interest bearing demand deposits |
|
|
801,488 |
|
|
760,198 |
|
|
722,270 |
|
|
710,011 |
|
|
688,854 |
|
Savings
deposits |
|
|
|
485,580 |
|
|
475,870 |
|
|
402,217 |
|
|
398,147 |
|
|
402,142 |
|
Interest
bearing transaction accounts |
|
|
1,775,129 |
|
|
1,682,580 |
|
|
1,573,638 |
|
|
1,497,340 |
|
|
1,480,866 |
|
Time
deposits |
|
|
|
487,169 |
|
|
465,024 |
|
|
328,080 |
|
|
309,235 |
|
|
295,996 |
|
Total
deposits |
|
|
3,549,366 |
|
|
3,383,672 |
|
|
3,026,205 |
|
|
2,914,733 |
|
|
2,867,858 |
|
Short-term
borrowings |
|
|
|
31,591 |
|
|
50,335 |
|
|
47,276 |
|
|
61,679 |
|
|
59,249 |
|
Other
borrowings |
|
|
|
346,347 |
|
|
349,088 |
|
|
286,887 |
|
|
297,140 |
|
|
267,610 |
|
Total
interest bearing liabilities |
|
|
3,125,815 |
|
|
3,022,897 |
|
|
2,638,098 |
|
|
2,563,542 |
|
|
2,505,863 |
|
Stockholders' equity |
|
|
|
450,806 |
|
|
440,823 |
|
|
399,987 |
|
|
394,948 |
|
|
390,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
|
Financial Highlights |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
|
|
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
Jun 30, |
|
(Dollars in thousands) |
|
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT
BASIS) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Loans and
leases |
|
|
|
4.22 |
% |
|
4.18 |
% |
|
4.12 |
% |
|
4.11 |
% |
|
4.16 |
% |
|
Taxable
investment securities and other |
|
|
2.18 |
% |
|
2.39 |
% |
|
2.09 |
% |
|
2.06 |
% |
|
2.02 |
% |
|
Tax-exempt
securities |
|
|
|
3.15 |
% |
|
3.40 |
% |
|
3.49 |
% |
|
3.41 |
% |
|
3.58 |
% |
|
Federal
funds sold and interest bearing cash accounts |
|
0.46 |
% |
|
0.38 |
% |
|
0.25 |
% |
|
0.07 |
% |
|
0.18 |
% |
|
Total interest earning
assets |
|
|
3.85 |
% |
|
3.86 |
% |
|
3.76 |
% |
|
3.75 |
% |
|
3.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Savings
accounts |
|
|
|
0.05 |
% |
|
0.08 |
% |
|
0.05 |
% |
|
0.05 |
% |
|
0.05 |
% |
|
Interest
bearing transaction accounts |
|
|
0.31 |
% |
|
0.30 |
% |
|
0.26 |
% |
|
0.25 |
% |
|
0.23 |
% |
|
Time
deposits |
|
|
|
0.79 |
% |
|
0.74 |
% |
|
0.70 |
% |
|
0.63 |
% |
|
0.59 |
% |
|
Borrowings |
|
|
|
|
1.62 |
% |
|
1.52 |
% |
|
1.53 |
% |
|
1.52 |
% |
|
1.58 |
% |
|
Total interest bearing
liabilities |
|
|
0.50 |
% |
|
0.49 |
% |
|
0.44 |
% |
|
0.44 |
% |
|
0.42 |
% |
|
Net
interest spread (taxable equivalent basis) |
|
3.35 |
% |
|
3.37 |
% |
|
3.32 |
% |
|
3.31 |
% |
|
3.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
Annualized
net interest margin (taxable equivalent basis) |
|
3.47 |
% |
|
3.48 |
% |
|
3.43 |
% |
|
3.42 |
% |
|
3.46 |
% |
|
Annualized
cost of deposits |
|
|
0.27 |
% |
|
0.26 |
% |
|
0.22 |
% |
|
0.20 |
% |
|
0.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY DATA |
|
|
|
|
|
|
|
ALLOWANCE
FOR LOAN AND LEASE LOSSES |
|
|
|
|
|
|
Balance at
beginning of period |
|
$ |
30,553 |
|
$ |
30,874 |
|
$ |
30,994 |
|
$ |
30,174 |
|
$ |
30,505 |
|
|
Provision
for loan and lease losses |
|
|
1,010 |
|
|
1,075 |
|
|
- |
|
|
332 |
|
|
740 |
|
|
Charge-offs |
|
|
|
|
(1,045 |
) |
|
(1,543 |
) |
|
(1,140 |
) |
|
(584 |
) |
|
(1,475 |
) |
|
Recoveries |
|
|
|
|
149 |
|
|
147 |
|
|
1,020 |
|
|
1,072 |
|
|
404 |
|
|
Balance at end of
period |
|
|
$ |
30,667 |
|
$ |
30,553 |
|
$ |
30,874 |
|
$ |
30,994 |
|
$ |
30,174 |
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
AND LEASE CHARGE-OFFS (RECOVERIES) |
|
|
|
|
|
|
Commercial,
real estate |
|
|
$ |
113 |
|
$ |
81 |
|
$ |
(450 |
) |
$ |
(936 |
) |
$ |
476 |
|
|
Commercial,
industrial and other |
|
|
137 |
|
|
583 |
|
|
(56 |
) |
|
88 |
|
|
21 |
|
|
Leases |
|
|
|
|
183 |
|
|
69 |
|
|
(1 |
) |
|
13 |
|
|
102 |
|
|
Home equity
and consumer |
|
|
250 |
|
|
574 |
|
|
561 |
|
|
204 |
|
|
386 |
|
|
Real estate
- mortgage |
|
|
|
213 |
|
|
89 |
|
|
66 |
|
|
143 |
|
|
86 |
|
|
Net charge-offs
(recoveries) |
|
$ |
896 |
|
$ |
1,396 |
|
$ |
120 |
|
$ |
(488 |
) |
$ |
1,071 |
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
Commercial,
real estate |
|
|
$ |
12,554 |
|
$ |
11,943 |
|
$ |
10,446 |
|
$ |
8,176 |
|
$ |
5,307 |
|
|
Commercial,
industrial and other |
|
|
41 |
|
|
1,163 |
|
|
103 |
|
|
832 |
|
|
1,354 |
|
|
Leases |
|
|
|
|
159 |
|
|
282 |
|
|
316 |
|
|
154 |
|
|
79 |
|
|
Home equity
and consumer |
|
|
3,325 |
|
|
3,249 |
|
|
3,167 |
|
|
3,530 |
|
|
3,143 |
|
|
Real estate
- mortgage |
|
|
|
8,865 |
|
|
8,330 |
|
|
8,664 |
|
|
8,805 |
|
|
9,098 |
|
|
Total non-accruing
loans and leases |
|
|
24,944 |
|
|
24,967 |
|
|
22,696 |
|
|
21,497 |
|
|
18,981 |
|
|
Property
acquired through foreclosure or repossession |
|
1,594 |
|
|
792 |
|
|
983 |
|
|
819 |
|
|
1,078 |
|
|
Total non-performing
assets |
|
$ |
26,538 |
|
$ |
25,759 |
|
$ |
23,679 |
|
$ |
22,316 |
|
$ |
20,059 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans past
due 90 days or more and still accruing |
$ |
42 |
|
$ |
101 |
|
$ |
331 |
|
$ |
123 |
|
$ |
102 |
|
|
Loans
restructured and still accruing |
|
$ |
9,509 |
|
$ |
10,545 |
|
$ |
10,108 |
|
$ |
11,927 |
|
$ |
12,419 |
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
allowance for loan and lease losses to total loans and leases |
|
|
|
|
0.89 |
% |
|
0.91 |
% |
|
1.04 |
% |
|
1.09 |
% |
|
1.09 |
% |
|
Non-performing loans and leases to total loans and leases |
|
|
|
|
0.72 |
% |
|
0.74 |
% |
|
0.76 |
% |
|
0.75 |
% |
|
0.69 |
% |
|
Non-performing assets to total assets |
|
|
|
|
0.59 |
% |
|
0.58 |
% |
|
0.61 |
% |
|
0.60 |
% |
|
0.54 |
% |
|
Annualized net charge-offs (recoveries) to average loans |
|
|
|
|
0.11 |
% |
|
0.17 |
% |
|
0.02 |
% |
|
-0.07 |
% |
|
0.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
|
Supplemental Information - Non-GAAP Financial
Measures |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the Quarter Ended |
|
|
|
|
|
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
Jun 30, |
|
(Dollars in thousands, except per share amounts) |
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION OF TANGIBLE BOOK VALUE PER COMMON
SHARE |
|
|
|
|
|
Total
common stockholders' equity at end of period - GAAP |
$ |
454,934 |
|
$ |
446,875 |
|
$ |
400,516 |
|
$ |
397,687 |
|
$ |
390,860 |
|
|
Less:
Goodwill |
|
|
|
|
125,285 |
|
|
125,443 |
|
|
109,974 |
|
|
109,974 |
|
|
109,974 |
|
|
Less:
Other identifiable intangible assets |
|
|
2,728 |
|
|
2,891 |
|
|
1,545 |
|
|
1,644 |
|
|
1,742 |
|
|
Total tangible common stockholders' equity at end of
period - Non-GAAP |
$ |
326,921 |
|
$ |
318,541 |
|
$ |
288,997 |
|
$ |
286,069 |
|
$ |
279,144 |
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of period |
|
|
41,241 |
|
|
41,241 |
|
|
37,906 |
|
|
37,906 |
|
|
37,903 |
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share - GAAP |
|
|
$ |
11.03 |
|
$ |
10.84 |
|
$ |
10.57 |
|
$ |
10.49 |
|
$ |
10.31 |
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share - Non-GAAP |
|
$ |
7.93 |
|
$ |
7.72 |
|
$ |
7.62 |
|
$ |
7.55 |
|
$ |
7.36 |
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE
ASSETS |
|
|
|
|
|
Total tangible common stockholders' equity at end of
period - Non-GAAP |
$ |
326,921 |
|
$ |
318,541 |
|
$ |
288,997 |
|
$ |
286,069 |
|
$ |
279,144 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets at end of period - GAAP |
|
$ |
4,467,860 |
|
$ |
4,404,233 |
|
$ |
3,869,550 |
|
$ |
3,743,100 |
|
$ |
3,699,127 |
|
|
Less:
Goodwill |
|
|
|
|
125,285 |
|
|
125,443 |
|
|
109,974 |
|
|
109,974 |
|
|
109,974 |
|
|
Less:
Other identifiable intangible assets |
|
|
2,728 |
|
|
2,891 |
|
|
1,545 |
|
|
1,644 |
|
|
1,742 |
|
|
Total tangible assets at end of period - Non-GAAP |
$ |
4,339,847 |
|
$ |
4,275,899 |
|
$ |
3,758,031 |
|
$ |
3,631,482 |
|
$ |
3,587,411 |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity to assets - GAAP |
|
|
|
10.18 |
% |
|
10.15 |
% |
|
10.35 |
% |
|
10.62 |
% |
|
10.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets - Non-GAAP |
|
7.53 |
% |
|
7.45 |
% |
|
7.69 |
% |
|
7.88 |
% |
|
7.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON
EQUITY |
|
|
|
|
|
Net
income - GAAP |
|
|
|
$ |
10,130 |
|
$ |
8,108 |
|
$ |
8,464 |
|
$ |
7,825 |
|
$ |
7,862 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
average common stockholders' equity - GAAP |
$ |
450,806 |
|
$ |
440,823 |
|
$ |
399,987 |
|
$ |
394,948 |
|
$ |
390,151 |
|
|
Less:
Average goodwill |
|
|
|
125,424 |
|
|
124,423 |
|
|
109,974 |
|
|
109,974 |
|
|
109,974 |
|
|
Less:
Average other identifiable intangible assets |
|
2,828 |
|
|
2,920 |
|
|
1,606 |
|
|
1,706 |
|
|
1,807 |
|
|
Total average tangible common stockholders' equity -
Non-GAAP |
$ |
322,554 |
|
$ |
313,480 |
|
$ |
288,407 |
|
$ |
283,268 |
|
$ |
278,370 |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common stockholders' equity - GAAP |
|
9.04 |
% |
|
7.40 |
% |
|
8.40 |
% |
|
7.86 |
% |
|
8.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible common stockholders' equity -
Non-GAAP |
|
12.63 |
% |
|
10.40 |
% |
|
11.64 |
% |
|
10.96 |
% |
|
11.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
CALCULATION OF EFFICIENCY RATIO |
|
|
|
|
|
|
|
Total
non-interest expense |
|
|
$ |
23,715 |
|
$ |
25,424 |
|
$ |
22,142 |
|
$ |
23,832 |
|
$ |
21,195 |
|
|
Amortization of core deposit intangibles |
|
|
(164 |
) |
|
(167 |
) |
|
(99 |
) |
|
(98 |
) |
|
(107 |
) |
|
Other real
estate owned and other repossessed asset (expense) income |
|
(26 |
) |
|
(39 |
) |
|
(135 |
) |
|
(27 |
) |
|
(27 |
) |
|
Long-term
debt prepayment fee |
|
|
|
- |
|
|
- |
|
|
- |
|
|
(2,407 |
) |
|
- |
|
|
Merger
related expenses |
|
|
|
(685 |
) |
|
(1,721 |
) |
|
(822 |
) |
|
(330 |
) |
|
- |
|
|
Provision for unfunded lending commitments |
|
|
(230 |
) |
|
(208 |
) |
|
(506 |
) |
|
(168 |
) |
|
(60 |
) |
|
Non-interest expense, as adjusted |
|
$ |
22,610 |
|
$ |
23,289 |
|
$ |
20,580 |
|
$ |
20,802 |
|
$ |
21,001 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
35,102 |
|
$ |
33,850 |
|
$ |
30,119 |
|
$ |
29,334 |
|
$ |
28,669 |
|
|
Total non-interest income |
|
|
|
4,885 |
|
|
4,867 |
|
|
4,778 |
|
|
6,687 |
|
|
4,958 |
|
|
Total revenue |
|
|
|
|
39,987 |
|
|
38,717 |
|
|
34,897 |
|
|
36,021 |
|
|
33,627 |
|
|
Tax-equivalent adjustment on municipal securities |
|
225 |
|
|
222 |
|
|
212 |
|
|
210 |
|
|
214 |
|
|
Gains on
debt extinguishment |
|
|
|
- |
|
|
- |
|
|
- |
|
|
(1,830 |
) |
|
- |
|
|
Gains on sales investment securities |
|
|
- |
|
|
(370 |
) |
|
(51 |
) |
|
(173 |
) |
|
(17 |
) |
|
Total revenue, as adjusted |
|
|
$ |
40,212 |
|
$ |
38,569 |
|
$ |
35,058 |
|
$ |
34,228 |
|
$ |
33,824 |
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio - Non-GAAP |
|
|
|
56.23 |
% |
|
60.38 |
% |
|
58.70 |
% |
|
60.77 |
% |
|
62.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
|
Supplemental Information - Non-GAAP Financial
Measures |
|
(Unaudited) |
|
|
|
|
|
For the Six Months Ended, |
|
|
|
|
|
June 30, |
June 30, |
|
(Dollars
in thousands) |
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY
|
|
|
|
|
Net
income - GAAP |
|
|
|
$ |
18,238 |
|
$ |
16,192 |
|
|
|
|
|
|
|
|
|
Total
average common stockholders' equity - GAAP |
|
|
$ |
445,815 |
|
$ |
386,887 |
|
|
Less: Average
goodwill |
|
|
|
|
124,923 |
|
|
109,974 |
|
|
Less:
Average other identifiable intangible assets |
|
|
|
2,874 |
|
|
1,863 |
|
|
Total average tangible common stockholders' equity -
Non-GAAP |
|
$ |
318,018 |
|
$ |
275,050 |
|
|
|
|
|
|
|
|
|
Return on average common stockholders' equity - GAAP |
|
|
|
8.23 |
% |
|
8.44 |
% |
|
|
|
|
|
|
|
|
Return on average tangible common stockholders' equity -
Non-GAAP |
|
|
11.53 |
% |
|
11.87 |
% |
|
|
|
|
|
|
|
|
CALCULATION OF
EFFICIENCY RATIO |
|
|
|
|
|
|
Total non-interest
expense |
|
|
|
$ |
49,139 |
|
$ |
41,237 |
|
|
Amortization of core
deposit intangibles |
|
|
|
|
(331 |
) |
|
(218 |
) |
|
Other real
estate owned and other repossessed asset expense |
|
|
|
(65 |
) |
|
(19 |
) |
|
Long-term debt
prepayment fee |
|
|
|
|
- |
|
|
- |
|
|
Merger related
expenses |
|
|
|
|
(2,406 |
) |
|
- |
|
|
Provision
for unfunded lending commitments |
|
|
|
|
(438 |
) |
|
(190 |
) |
|
Non-interest expense, as adjusted |
|
|
|
$ |
45,899 |
|
$ |
40,810 |
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
68,952 |
|
$ |
57,187 |
|
|
Non-interest income |
|
|
|
|
9,752 |
|
|
9,696 |
|
|
Total revenue |
|
|
|
|
78,704 |
|
|
66,883 |
|
|
Tax-equivalent adjustment on municipal securities |
|
|
|
447 |
|
|
435 |
|
|
Gain on investment
securities |
|
|
|
|
(370 |
) |
|
(17 |
) |
|
Gains on
extinguishment of debt |
|
|
|
|
- |
|
|
- |
|
|
Total revenue, as adjusted |
|
|
|
$ |
78,781 |
|
$ |
67,301 |
|
|
|
|
|
|
|
|
|
Efficiency ratio - Non-GAAP |
|
|
|
|
58.26 |
% |
|
60.64 |
% |
|
|
|
|
|
|
|
|
Thomas J. Shara
President & CEO
Joseph F. Hurley
EVP & CFO
973-697-2000
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