Lakeland Bancorp, Inc. (NASDAQ:LBAI) (the “Company”) reported the
following results as of September 30, 2016:
- Net income for the third quarter of 2016 was $11.3 million, or
$0.25 per diluted share, compared to $7.8 million, or $0.20 per
diluted share, for the same period in 2015. Excluding merger
related expenses and other items, net income for the third quarter
of 2016 was $12.4 million, or $0.28 per diluted share, compared to
$8.3 million, or $0.22 per diluted share, for the third quarter of
2015.
- For the third quarter of 2016, annualized return on average
assets was 0.94%, annualized return on average common equity was
9.10%, and annualized return on average tangible common equity was
12.68%. Excluding merger related expenses, these ratios were
1.03%, 9.96% and 13.89%, respectively.
- Net income for the first nine months of 2016 was $29.6 million,
or $0.69 per diluted share, compared to $24.0 million, or $0.63 per
diluted share, for the same period in 2015. Excluding merger
related expenses and other items, net income for the first nine
months of 2016 was $32.3 million, or $0.76 per diluted share,
compared to $24.5 million, or $0.64 per diluted share, for the
first nine months of 2015.
- The annualized return on average assets for the nine months
ended September 30, 2016 was 0.88%, the annualized return on
average common equity was 8.54%, and the annualized return on
average tangible common equity was 11.95%. Excluding merger
related expenses, these ratios were 0.96%, 9.34% and 13.07%,
respectively.
- The Company reported strong loan growth in the third quarter of
2016. Excluding the acquisition of Harmony Bank (“Harmony”),
total loans and leases increased by $80.5 million, or 2%, to $3.79
billion during the quarter. This overall increase was
primarily due to the addition of $65.8 million in commercial real
estate loans and $23.3 million in commercial, industrial and other
loans. For the first nine months of 2016, total loans and
leases increased by $826.6 million, or 28%. Excluding the
acquisitions of Pascack and Harmony, this increase was $247.3
million, or 8%.
- The Company also reported robust deposit growth in the third
quarter of 2016. Excluding the acquisition of Harmony, total
deposits increased $126.4 million, or 4%, to $3.94 billion during
the quarter. Most notably, non-interest bearing deposits
increased $63.6 million, or 8%, during the quarter excluding the
impact of Harmony. Total deposits have increased $946.2
million, or 32%, since December 31, 2015. This increase was
$363.6 million, or 12%, after excluding the acquisitions of Pascack
and Harmony.
- The efficiency ratio was 53.42% for the three months ended
September 30, 2016, as compared to 60.77% for the same period in
2015. The decrease in this ratio, in part, reflects the
realization of cost savings from the Pascack acquisition and the
closure of six branches in 2016.
- Net interest margin (“NIM”) was 3.45% for the third quarter of
2016 compared to 3.47% for the second quarter of 2016 and 3.42% for
the third quarter of 2015.
- On September 30, 2016, the Company closed the offering of $75
million of its Fixed-to-Floating Rate Subordinated Notes due
September 30, 2026 (the “Notes”). The Notes bear interest at
a rate of 5.125% per annum until September 2021 and the interest
rate will then reset quarterly to the then current three-month
LIBOR rate plus 397 basis points.
- On October 24, 2016, the Company declared a quarterly cash
dividend of $0.095 per common share, payable on November 15, 2016
to holders of record as of the close of business on November 7,
2016.
Thomas J. Shara, Lakeland Bancorp’s President
and CEO, commented, “We are very proud of the Company’s continued
progress during the third quarter marked by our completion of the
Harmony acquisition, substantial organic growth in both loans and
deposits, as well as a marked improvement in our efficiency ratio.
In the last year, our assets have grown 31% to $4.9 billion and
with the completion of our subordinated debt offering, our capital
position has strengthened to foster future growth.”
Harmony Acquisition
On July 1, 2016, the Company completed its
acquisition of Harmony, which operated three branches in Ocean
County, New Jersey, and had $326.4 million in total assets, $259.7
million in total loans and $278.1 million in total deposits.
Goodwill amounted to $11.1 million and core deposit intangibles
were $1.0 million.
Earnings
Net income for the third quarter of 2016 was
$11.3 million, as compared to $7.8 million for the third quarter of
2015. Excluding merger related expenses and other items, net
income for the third quarter of 2016 was $12.4 million compared to
$8.3 million for the third quarter of 2015.
Net income for the first nine months of 2016 was
$29.6 million, as compared to $24.0 million for the same period in
2015. Excluding merger related expenses and other items, net
income for the first nine months of 2016 was $32.3 million,
compared to $24.5 million for the first nine months of 2015.
Net Interest
IncomeNet interest income for the third quarter
of 2016 was $38.5 million, as compared to $29.3 million for the
same period in 2015. This increase was primarily due to
higher levels of loans in 2016, as a result of the 2016
acquisitions of Pascack and Harmony as well as organic
growth. NIM was 3.45% for the third quarter of 2016, compared
to 3.42% for the third quarter of 2015. Included within these
percentages were $0.5 million, or five basis points, of loan
prepayment fees in the third quarter of 2016, versus $0.1 million,
or one basis point, in 2015. The yield on interest earning
assets for the third quarter of 2016 was 3.85%, as compared to
3.75% reported in the third quarter of 2015. The cost of
interest bearing liabilities for the third quarter of 2016 was
0.53%, as compared to 0.44% in the third quarter of 2015,
reflecting the higher cost of deposits.
Net interest income for the first nine months of
2016 was $107.5 million, as compared to $86.5 million reported for
the first nine months of 2015. NIM for the first nine months
of 2016 was 3.47%, compared to 3.48% for the same period in
2015. Included within these percentages were $1.5 million, or
five basis points, of loan prepayment fees, gains on called
securities, and interest recoveries in 2016, versus $0.8 million,
or three basis points, in 2015. The yield on earning assets
was 3.86% for the first nine months of 2016 and 3.79% for the same
period in 2015. The cost of interest bearing liabilities for
2016 was 0.51%, as compared to 0.42% in the first nine months of
2015, reflecting the higher cost of deposits.
Non-interest
IncomeNon-interest income totaled $6.4 million
for the third quarter of 2016, as compared to $6.7 million for the
same period in 2015. Non-interest income in 2016 included
$0.9 million in bank owned life insurance (“BOLI”) death
benefits. Non-interest income in 2015 included several items
not present in 2016, principally the $1.8 million gain on debt
extinguishment and $173 thousand gain on sale of investment
securities.
Non-interest income totaled $16.2 million for
the first nine months of 2016, as compared to $16.4 million for the
same period in 2015. The major variances include the $1.8
million gain on debt extinguishment in 2015 and $0.9 million BOLI
death benefits received in 2016 compared to $0.4 million received
in 2015.
Non-interest
ExpenseNon-interest expense for the third quarter
of 2016 was $26.0 million, an increase of $2.2 million compared to
$23.8 million for the same period in 2015. Excluding the
impact of merger related expenses and the 2015 long-term debt
prepayment fee of $2.4 million, non-interest expense increased by
$3.2 million. Salary and benefit expense of $14.6 million
increased by $2.3 million, due primarily to the additions of
Pascack and Harmony employees and year-over-year increases in
employee salary and benefit costs. Primarily due to the
acquisitions of Pascack and Harmony, several non-interest expenses
increased a total of $0.8 million related to net occupancy, FDIC
insurance, data processing and core deposit intangible
amortization.
For the first nine months of 2016, non-interest
expense was $75.1 million, an increase of $10.1 million compared to
the same period in 2015. Excluding the impact of merger
related expenses and the 2015 long-term debt prepayment fee of $2.4
million, non-interest expense increased by $8.7 million.
Salary and benefit expense of $41.8 million increased by $5.5
million due primarily to the additions of Pascack and Harmony
employees and year-over-year increases in employee salary and
benefit costs. The remaining increases in non-interest
expense categories were primarily due to higher expenses related to
the Pascack and Harmony branches, including net occupancy,
furniture and equipment, FDIC insurance and data
processing.
Financial Condition
From December 31, 2015 to September 30, 2016,
total assets increased $1.03 billion to $4.90 billion, including
$405.3 million from Pascack and $326.4 million from Harmony.
During the same period, total loans and leases increased by $826.6
million to $3.79 billion, including $319.6 million from Pascack and
$259.7 million from Harmony. Likewise, total deposits
increased $946.2 million to $3.94 billion, including $304.5 million
from Pascack and $278.1 million from Harmony.
Asset
QualityAt September 30, 2016, non-performing
assets totaled $24.6 million (0.50% 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 of 0.60% decreased 16 basis points from December 31,
2015. The allowance for loan and lease losses totaled $31.4
million at September 30, 2016, and represented 0.83% of total loans
and leases, compared to $30.9 million at December 31, 2015, which
represented 1.04% of total loans and leases. The decline in
the allowance coverage is primarily attributed to the acquired
loans from Pascack and Harmony at fair market value with no
allowance for losses. The Company’s allowance for loan and
lease losses excluding acquired loans would be 0.99%. The
Company had net charge-offs of $3.4 million (0.13% of average
loans) for the first nine months of 2016 and $1.1 million for the
third quarter of 2016. The provision for loan and lease
losses for the first nine months of 2016 was $3.8 million, versus
$1.9 million for the same period in 2015.
CapitalAt
September 30, 2016, stockholders' equity was $498.7 million, while
book value per common share was $11.22, an increase of 6% from
December 31, 2015. Tangible book value per common share was
$8.07, an increase of 6% from December 31, 2015. As of
September 30, 2016, the Company’s leverage ratio was 8.26%.
Tier I and total risk based capital ratios were 9.70% and 12.40%,
respectively, reflecting the issuance of the subordinated
notes. The common equity tier 1 capital ratio was
8.94%. 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, and
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"). 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 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 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 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.
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.
About Lakeland BankLakeland
Bancorp, the holding company for Lakeland Bank, has $4.9 billion in
total assets with 52 New Jersey branch offices in Bergen, Essex,
Morris, Ocean, Passaic, Somerset, Sussex, and Union 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 September 30, |
|
Nine Months Ended September 30, |
(Dollars in thousands, except per share amounts) |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT |
|
|
|
|
|
|
|
|
Net
interest income |
|
|
$ |
38,518 |
|
|
$ |
29,334 |
|
|
$ |
107,470 |
|
|
$ |
86,521 |
|
Provision
for loan and lease losses |
|
|
(1,763 |
) |
|
|
(332 |
) |
|
|
(3,848 |
) |
|
|
(1,942 |
) |
Other
non-interest income |
|
|
5,664 |
|
|
|
4,169 |
|
|
|
14,201 |
|
|
|
13,119 |
|
Gain on
sale of investment securities |
|
|
- |
|
|
|
173 |
|
|
|
370 |
|
|
|
190 |
|
Gain on
sale of loans |
|
|
|
753 |
|
|
|
515 |
|
|
|
1,598 |
|
|
|
1,244 |
|
Gain on
debt extinguishment |
|
|
- |
|
|
|
1,830 |
|
|
|
- |
|
|
|
1,830 |
|
Long-term
debt prepayment fee |
|
|
- |
|
|
|
(2,407 |
) |
|
|
- |
|
|
|
(2,407 |
) |
Merger
related expenses |
|
|
|
(1,697 |
) |
|
|
(330 |
) |
|
|
(4,103 |
) |
|
|
(330 |
) |
Other
non-interest expense |
|
|
(24,309 |
) |
|
|
(21,095 |
) |
|
|
(71,042 |
) |
|
|
(62,332 |
) |
Pretax income |
|
|
|
17,166 |
|
|
|
11,857 |
|
|
|
44,646 |
|
|
|
35,893 |
|
Provision
for income taxes |
|
|
(5,839 |
) |
|
|
(4,032 |
) |
|
|
(15,081 |
) |
|
|
(11,876 |
) |
Net
income |
|
|
$ |
11,327 |
|
|
$ |
7,825 |
|
|
$ |
29,565 |
|
|
$ |
24,017 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.25 |
|
|
$ |
0.20 |
|
|
$ |
0.69 |
|
|
$ |
0.63 |
|
Diluted
earnings per common share |
|
$ |
0.25 |
|
|
$ |
0.20 |
|
|
$ |
0.69 |
|
|
$ |
0.63 |
|
Dividends
per common share |
|
$ |
0.095 |
|
|
$ |
0.085 |
|
|
$ |
0.275 |
|
|
$ |
0.245 |
|
Weighted
average shares - basic |
|
|
44,439 |
|
|
|
37,856 |
|
|
|
42,211 |
|
|
|
37,837 |
|
Weighted
average shares - diluted |
|
|
44,659 |
|
|
|
38,015 |
|
|
|
42,390 |
|
|
|
37,976 |
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING RATIOS |
|
|
|
|
|
|
|
|
Annualized
return on average assets |
|
|
0.94 |
% |
|
|
0.84 |
% |
|
|
0.88 |
% |
|
|
0.89 |
% |
Annualized
return on average common equity |
|
9.10 |
% |
|
|
7.86 |
% |
|
|
8.54 |
% |
|
|
8.24 |
% |
Annualized
return on average tangible common equity (1) |
|
12.68 |
% |
|
|
10.96 |
% |
|
|
11.95 |
% |
|
|
11.56 |
% |
Annualized
return on interest earning assets |
|
3.85 |
% |
|
|
3.75 |
% |
|
|
3.86 |
% |
|
|
3.79 |
% |
Annualized
cost of interest bearing liabilities |
|
0.53 |
% |
|
|
0.44 |
% |
|
|
0.51 |
% |
|
|
0.42 |
% |
Annualized
net interest spread |
|
|
3.32 |
% |
|
|
3.31 |
% |
|
|
3.35 |
% |
|
|
3.37 |
% |
Annualized
net interest margin |
|
|
3.45 |
% |
|
|
3.42 |
% |
|
|
3.47 |
% |
|
|
3.48 |
% |
Efficiency
ratio (1) |
|
|
|
53.42 |
% |
|
|
60.77 |
% |
|
|
56.50 |
% |
|
|
60.68 |
% |
Stockholders' equity to total assets |
|
|
|
|
|
|
10.17 |
% |
|
|
10.62 |
% |
Book value
per common share |
|
|
|
|
|
$ |
11.22 |
|
|
$ |
10.49 |
|
Tangible
book value per common share (1) |
|
|
|
|
$ |
8.07 |
|
|
$ |
7.55 |
|
Tangible
common equity to tangible assets (1) |
|
|
|
|
|
7.53 |
% |
|
|
7.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY RATIOS |
|
|
|
|
|
9/30/2016 |
|
9/30/2015 |
Ratio of allowance for loan and lease losses to total loans and
leases |
|
|
|
|
0.83 |
% |
|
|
1.09 |
% |
Non-performing loans and leases to total loans and
leases |
|
|
|
|
0.60 |
% |
|
|
0.75 |
% |
Non-performing assets to total assets |
|
|
|
|
|
|
0.50 |
% |
|
|
0.60 |
% |
Annualized net charge-offs to average loans and leases |
|
|
|
|
|
0.13 |
% |
|
|
0.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET DATA AT PERIOD-END |
|
|
|
9/30/2016 |
|
9/30/2015 |
Loans and
leases |
|
|
|
|
|
|
$ |
3,794,519 |
|
|
$ |
2,853,764 |
|
Allowance
for loan and lease losses |
|
|
|
|
|
(31,369 |
) |
|
|
(30,994 |
) |
Investment
securities |
|
|
|
|
|
|
|
638,091 |
|
|
|
559,295 |
|
Total assets |
|
|
|
|
|
|
|
|
4,904,291 |
|
|
|
3,743,100 |
|
Total
deposits |
|
|
|
|
|
|
3,941,742 |
|
|
|
2,919,673 |
|
Short-term
borrowings |
|
|
|
|
|
|
|
29,699 |
|
|
|
131,356 |
|
Other
borrowings |
|
|
|
|
|
|
|
398,671 |
|
|
|
275,666 |
|
Stockholders' equity |
|
|
|
|
|
|
498,722 |
|
|
|
397,687 |
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED AVERAGE BALANCE SHEET DATA |
For the Three Months Ended |
|
For the Nine Months Ended |
|
|
|
|
9/30/2016 |
|
9/30/2015 |
|
9/30/2016 |
|
9/30/2015 |
Loans and
leases |
|
|
$ |
3,743,434 |
|
|
$ |
2,811,581 |
|
|
$ |
3,481,053 |
|
|
$ |
2,731,518 |
|
Investment
securities |
|
|
|
606,779 |
|
|
|
581,565 |
|
|
|
584,271 |
|
|
|
588,337 |
|
Interest
earning assets |
|
|
4,467,524 |
|
|
|
3,431,018 |
|
|
|
4,166,190 |
|
|
|
3,349,755 |
|
Total
assets |
|
|
4,805,381 |
|
|
|
3,685,573 |
|
|
|
4,486,979 |
|
|
|
3,604,713 |
|
Non-interest bearing demand deposits |
|
|
895,851 |
|
|
|
710,011 |
|
|
|
819,459 |
|
|
|
686,652 |
|
Savings
deposits |
|
|
|
487,918 |
|
|
|
398,147 |
|
|
|
483,140 |
|
|
|
398,491 |
|
Interest
bearing transaction accounts |
|
|
1,988,405 |
|
|
|
1,497,340 |
|
|
|
1,816,003 |
|
|
|
1,491,166 |
|
Time
deposits |
|
|
|
533,224 |
|
|
|
309,235 |
|
|
|
495,278 |
|
|
|
295,460 |
|
Total
deposits |
|
|
3,905,398 |
|
|
|
2,914,733 |
|
|
|
3,613,880 |
|
|
|
2,871,769 |
|
Short-term
borrowings |
|
|
|
35,608 |
|
|
|
61,679 |
|
|
|
39,165 |
|
|
|
56,303 |
|
Other
borrowings |
|
|
|
339,204 |
|
|
|
297,140 |
|
|
|
344,859 |
|
|
|
270,871 |
|
Total
interest bearing liabilities |
|
|
3,384,359 |
|
|
|
2,563,542 |
|
|
|
3,178,445 |
|
|
|
2,512,291 |
|
Stockholders' equity |
|
|
|
495,343 |
|
|
|
394,948 |
|
|
|
462,445 |
|
|
|
389,604 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Supplemental Information - Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lakeland Bancorp,
Inc. |
Consolidated Statements of
Operations |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
Loans and fees |
|
|
|
|
$ |
39,766 |
|
$ |
29,123 |
|
|
$ |
109,687 |
|
$ |
85,230 |
|
Federal funds sold and interest bearing deposits with
banks |
|
|
142 |
|
|
7 |
|
|
|
341 |
|
|
30 |
|
Taxable investment securities and other |
|
|
|
2,627 |
|
|
2,639 |
|
|
|
8,285 |
|
|
8,001 |
|
Tax exempt investment securities |
|
|
|
|
470 |
|
|
390 |
|
|
|
1,300 |
|
|
1,198 |
|
|
TOTAL INTEREST INCOME |
|
|
|
|
43,005 |
|
|
32,159 |
|
|
|
119,613 |
|
|
94,459 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
2,886 |
|
|
1,464 |
|
|
|
7,495 |
|
|
4,093 |
|
Federal funds purchased and securities sold under agreements to
repurchase |
|
|
19 |
|
|
33 |
|
|
|
66 |
|
|
92 |
|
Other borrowings |
|
|
|
|
|
1,582 |
|
|
1,328 |
|
|
|
4,582 |
|
|
3,753 |
|
|
TOTAL INTEREST EXPENSE |
|
|
|
4,487 |
|
|
2,825 |
|
|
|
12,143 |
|
|
7,938 |
|
NET INTEREST INCOME |
|
|
|
|
38,518 |
|
|
29,334 |
|
|
|
107,470 |
|
|
86,521 |
|
Provision for loan and lease losses |
|
|
|
|
1,763 |
|
|
332 |
|
|
|
3,848 |
|
|
1,942 |
|
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE
LOSSES |
|
36,755 |
|
|
29,002 |
|
|
|
103,622 |
|
|
84,579 |
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
|
|
2,615 |
|
|
2,614 |
|
|
|
7,580 |
|
|
7,404 |
|
Commissions and fees |
|
|
|
|
|
1,182 |
|
|
984 |
|
|
|
3,260 |
|
|
3,487 |
|
Gain on sale of investment securities |
|
|
|
|
- |
|
|
173 |
|
|
|
370 |
|
|
190 |
|
Gain on sale of loans |
|
|
|
|
|
753 |
|
|
515 |
|
|
|
1,598 |
|
|
1,244 |
|
Gain on debt extinguishment |
|
|
|
|
- |
|
|
1,830 |
|
|
|
- |
|
|
1,830 |
|
Income on bank owned life insurance |
|
|
|
|
1,303 |
|
|
455 |
|
|
|
2,125 |
|
|
1,542 |
|
Other income |
|
|
|
|
|
564 |
|
|
116 |
|
|
|
1,236 |
|
|
686 |
|
|
TOTAL
NON-INTEREST INCOME |
|
|
|
|
|
6,417 |
|
|
6,687 |
|
|
|
16,169 |
|
|
16,383 |
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
|
|
14,626 |
|
|
12,376 |
|
|
|
41,802 |
|
|
36,270 |
|
Net occupancy expense |
|
|
|
|
|
2,372 |
|
|
2,067 |
|
|
|
7,401 |
|
|
6,888 |
|
Furniture and equipment |
|
|
|
|
|
1,876 |
|
|
1,881 |
|
|
|
5,904 |
|
|
5,166 |
|
Stationary, supplies and postage |
|
|
|
|
412 |
|
|
395 |
|
|
|
1,271 |
|
|
1,137 |
|
Marketing expense |
|
|
|
|
|
429 |
|
|
396 |
|
|
|
1,123 |
|
|
1,052 |
|
FDIC insurance expense |
|
|
|
|
|
715 |
|
|
474 |
|
|
|
1,986 |
|
|
1,523 |
|
ATM and debit card expense |
|
|
|
|
420 |
|
|
357 |
|
|
|
1,149 |
|
|
1,081 |
|
Telecommunications expense |
|
|
|
|
479 |
|
|
371 |
|
|
|
1,289 |
|
|
1,074 |
|
Data processing expense |
|
|
|
|
|
518 |
|
|
359 |
|
|
|
1,497 |
|
|
1,132 |
|
Other real estate owned and other repossessed assets
expense |
|
|
(32 |
) |
|
27 |
|
|
|
33 |
|
|
46 |
|
Long-term debt prepayment fee |
|
|
|
|
- |
|
|
2,407 |
|
|
|
- |
|
|
2,407 |
|
Merger related expenses |
|
|
|
|
|
1,697 |
|
|
330 |
|
|
|
4,103 |
|
|
330 |
|
Core deposit intangible amortization |
|
|
|
|
201 |
|
|
98 |
|
|
|
532 |
|
|
316 |
|
Other expenses |
|
|
|
|
|
2,293 |
|
|
2,294 |
|
|
|
7,055 |
|
|
6,647 |
|
|
TOTAL NON-INTEREST EXPENSE |
|
|
26,006 |
|
|
23,832 |
|
|
|
75,145 |
|
|
65,069 |
|
INCOME BEFORE PROVISION FOR INCOME
TAXES |
|
|
|
|
|
17,166 |
|
|
11,857 |
|
|
|
44,646 |
|
|
35,893 |
|
Provision for income taxes |
|
|
|
|
|
5,839 |
|
|
4,032 |
|
|
|
15,081 |
|
|
11,876 |
|
NET INCOME |
|
|
|
|
$ |
11,327 |
|
$ |
7,825 |
|
|
$ |
29,565 |
|
$ |
24,017 |
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
$ |
0.25 |
|
$ |
0.20 |
|
|
$ |
0.69 |
|
$ |
0.63 |
|
Diluted |
|
|
|
|
|
$ |
0.25 |
|
$ |
0.20 |
|
|
$ |
0.69 |
|
$ |
0.63 |
|
DIVIDENDS PER COMMON SHARE |
|
|
|
|
$ |
0.095 |
|
$ |
0.085 |
|
|
$ |
0.275 |
|
$ |
0.245 |
|
Lakeland Bancorp, Inc. |
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
(Dollars in thousands) |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
Cash and due from banks |
|
|
|
$ |
182,356 |
|
|
$ |
113,894 |
|
Federal funds sold and interest bearing deposits due from
banks |
|
|
|
|
|
12,995 |
|
|
|
4,599 |
|
Total cash and cash equivalents |
|
|
|
|
|
195,351 |
|
|
|
118,493 |
|
|
|
|
|
|
|
|
|
Investment securities available for sale, at fair value |
|
|
480,392 |
|
|
|
442,349 |
|
Investment securities held to maturity; fair value of $143,939
in 2016 |
|
|
|
and $117,594 in 2015 |
|
|
|
|
141,124 |
|
|
|
116,740 |
|
Federal Home Loan Bank and other membership stocks, at
cost |
|
16,575 |
|
|
|
14,087 |
|
Loans held
for sale |
|
|
|
|
3,690 |
|
|
|
1,233 |
|
Loans and
leases: |
|
|
|
|
|
|
Commercial, real estate |
|
|
|
|
2,675,154 |
|
|
|
1,879,659 |
|
Commercial, industrial and other |
|
|
|
339,291 |
|
|
|
307,044 |
|
Leases |
|
|
|
|
|
65,659 |
|
|
|
56,660 |
|
Residential mortgages |
|
|
|
|
370,766 |
|
|
|
389,692 |
|
Consumer and home equity |
|
|
|
343,649 |
|
|
|
334,891 |
|
Total loans and leases |
|
|
|
3,794,519 |
|
|
|
2,967,946 |
|
Net
deferred costs |
|
|
|
|
(3,187 |
) |
|
|
(2,746 |
) |
Allowance for loan and lease losses |
|
|
|
(31,369 |
) |
|
|
(30,874 |
) |
Net loans and leases |
|
|
|
|
|
3,759,963 |
|
|
|
2,934,326 |
|
Premises and equipment, net |
|
|
|
52,384 |
|
|
|
35,881 |
|
Accrued interest receivable |
|
|
|
11,551 |
|
|
|
9,208 |
|
Goodwill |
|
|
|
|
|
136,392 |
|
|
|
109,974 |
|
Other identifiable intangible assets |
|
|
|
3,545 |
|
|
|
1,545 |
|
Bank owned life insurance |
|
|
|
|
71,930 |
|
|
|
65,361 |
|
Other
assets |
|
|
|
|
|
31,394 |
|
|
|
20,353 |
|
TOTAL
ASSETS |
|
|
|
|
$ |
4,904,291 |
|
|
$ |
3,869,550 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Non-interest bearing |
|
|
|
$ |
931,385 |
|
|
$ |
693,741 |
|
Savings and interest bearing transaction accounts |
|
|
2,471,097 |
|
|
|
1,958,510 |
|
Time deposits
through $250,000 |
|
|
|
|
|
408,904 |
|
|
|
270,623 |
|
Time deposits over $250,000 |
|
|
|
|
|
130,356 |
|
|
|
72,698 |
|
Total deposits |
|
|
|
|
|
3,941,742 |
|
|
|
2,995,572 |
|
Federal funds purchased and securities sold under agreements to
repurchase |
|
29,699 |
|
|
|
151,234 |
|
Other borrowings |
|
|
|
|
293,875 |
|
|
|
271,905 |
|
Subordinated debentures |
|
|
|
|
104,796 |
|
|
|
31,238 |
|
Other
liabilities |
|
|
|
|
|
35,457 |
|
|
|
19,085 |
|
TOTAL LIABILITIES |
|
|
|
|
4,405,569 |
|
|
|
3,469,034 |
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
Common stock, no par value; authorized 70,000,000
shares; |
|
|
|
issued
44,442,621 shares at September 30, 2016 |
|
|
|
|
|
|
|
and 37,906,481
shares at December 31, 2015 |
|
|
|
|
|
461,460 |
|
|
|
386,287 |
|
Retained earnings |
|
|
|
|
30,903 |
|
|
|
13,079 |
|
Accumulated other comprehensive gain |
|
|
|
|
6,359 |
|
|
|
1,150 |
|
TOTAL STOCKHOLDERS' EQUITY |
|
|
|
|
|
498,722 |
|
|
|
400,516 |
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
$ |
4,904,291 |
|
|
$ |
3,869,550 |
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
|
Financial Highlights |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
|
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
|
(Dollars in thousands, except per share data) |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT |
|
|
|
|
|
|
|
Net
interest income |
|
$ |
38,518 |
|
$ |
35,102 |
|
$ |
33,850 |
|
$ |
30,119 |
|
$ |
29,334 |
|
|
Provision
for loan and lease losses |
|
|
(1,763 |
) |
|
(1,010 |
) |
|
(1,075 |
) |
|
- |
|
|
(332 |
) |
|
Other
non-interest income |
|
|
5,664 |
|
|
4,460 |
|
|
4,077 |
|
|
4,290 |
|
|
4,169 |
|
|
Gain on
investment securities |
|
|
- |
|
|
- |
|
|
370 |
|
|
51 |
|
|
173 |
|
|
Gain on
sale of loans |
|
|
753 |
|
|
425 |
|
|
420 |
|
|
437 |
|
|
515 |
|
|
Gain on
debt extinguishment |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,830 |
|
|
Long-term
debt prepayment fee |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(2,407 |
) |
|
Merger
related expenses |
|
|
(1,697 |
) |
|
(685 |
) |
|
(1,721 |
) |
|
(822 |
) |
|
(330 |
) |
|
Other
non-interest expense |
|
|
(24,309 |
) |
|
(23,030 |
) |
|
(23,703 |
) |
|
(21,320 |
) |
|
(21,095 |
) |
|
Pretax income |
|
|
17,166 |
|
|
15,262 |
|
|
12,218 |
|
|
12,755 |
|
|
11,857 |
|
|
Provision
for income taxes |
|
|
(5,839 |
) |
|
(5,132 |
) |
|
(4,110 |
) |
|
(4,291 |
) |
|
(4,032 |
) |
|
Net
income |
|
$ |
11,327 |
|
$ |
10,130 |
|
$ |
8,108 |
|
$ |
8,464 |
|
$ |
7,825 |
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.25 |
|
$ |
0.24 |
|
$ |
0.20 |
|
$ |
0.22 |
|
$ |
0.20 |
|
|
Diluted
earnings per common share |
|
$ |
0.25 |
|
$ |
0.24 |
|
$ |
0.20 |
|
$ |
0.22 |
|
$ |
0.20 |
|
|
Dividends
per common share |
|
$ |
0.095 |
|
$ |
0.095 |
|
$ |
0.085 |
|
$ |
0.085 |
|
$ |
0.085 |
|
|
Dividends
paid |
|
$ |
4,261 |
|
$ |
3,955 |
|
$ |
3,525 |
|
$ |
3,246 |
|
$ |
3,244 |
|
|
Weighted
average shares - basic |
|
|
44,439 |
|
|
41,238 |
|
|
40,931 |
|
|
37,865 |
|
|
37,856 |
|
|
Weighted
average shares - diluted |
|
|
44,659 |
|
|
41,406 |
|
|
41,091 |
|
|
38,048 |
|
|
38,016 |
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING RATIOS |
|
|
|
|
|
|
|
Annualized
return on average assets |
|
|
0.94 |
% |
|
0.93 |
% |
|
0.77 |
% |
|
0.89 |
% |
|
0.84 |
% |
|
Annualized
return on average common equity |
|
|
9.10 |
% |
|
9.04 |
% |
|
7.40 |
% |
|
8.40 |
% |
|
7.86 |
% |
|
Annualized
return on average tangible common equity (1) |
|
12.68 |
% |
|
12.63 |
% |
|
10.40 |
% |
|
11.64 |
% |
|
10.96 |
% |
|
Annualized
net interest margin |
|
|
3.45 |
% |
|
3.47 |
% |
|
3.48 |
% |
|
3.43 |
% |
|
3.42 |
% |
|
Efficiency
ratio (1) |
|
|
53.42 |
% |
|
56.23 |
% |
|
60.38 |
% |
|
58.70 |
% |
|
60.77 |
% |
|
Common
stockholders' equity to total assets |
|
|
10.17 |
% |
|
10.18 |
% |
|
10.15 |
% |
|
10.35 |
% |
|
10.62 |
% |
|
Tangible
common equity to tangible assets (1) |
|
|
7.53 |
% |
|
7.53 |
% |
|
7.45 |
% |
|
7.69 |
% |
|
7.88 |
% |
|
Tier 1
risk-based ratio |
|
|
9.70 |
% |
|
9.73 |
% |
|
9.93 |
% |
|
10.53 |
% |
|
10.81 |
% |
|
Total
risk-based ratio |
|
|
12.40 |
% |
|
10.65 |
% |
|
10.87 |
% |
|
11.61 |
% |
|
11.93 |
% |
|
Tier 1
leverage ratio |
|
|
8.26 |
% |
|
8.24 |
% |
|
8.33 |
% |
|
8.70 |
% |
|
8.77 |
% |
|
Common
equity tier 1 capital ratio |
|
|
8.94 |
% |
|
8.90 |
% |
|
9.06 |
% |
|
9.54 |
% |
|
9.78 |
% |
|
Book value
per common share |
|
$ |
11.22 |
|
$ |
11.03 |
|
$ |
10.84 |
|
$ |
10.57 |
|
$ |
10.49 |
|
|
Tangible
book value per common share (1) |
|
$ |
8.07 |
|
$ |
7.93 |
|
$ |
7.72 |
|
$ |
7.62 |
|
$ |
7.55 |
|
|
|
|
|
|
|
|
|
|
|
(1) See
Supplemental Information - Non-GAAP Financial Measures |
|
|
|
|
|
Lakeland Bancorp, Inc. |
Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
|
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
(Dollars in thousands) |
|
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET DATA AT PERIOD-END |
|
|
|
|
Loans and
leases |
|
|
$ |
3,794,519 |
|
$ |
3,454,304 |
|
$ |
3,368,961 |
|
$ |
2,967,946 |
|
$ |
2,853,764 |
|
Allowance
for loan and lease losses |
|
(31,369 |
) |
|
(30,667 |
) |
|
(30,553 |
) |
|
(30,874 |
) |
|
(30,994 |
) |
Investment
securities |
|
|
|
638,091 |
|
|
602,408 |
|
|
573,136 |
|
|
573,176 |
|
|
559,295 |
|
Total assets |
|
|
|
|
4,904,291 |
|
|
4,467,860 |
|
|
4,404,233 |
|
|
3,869,550 |
|
|
3,743,100 |
|
Total
deposits |
|
|
|
3,941,742 |
|
|
3,537,331 |
|
|
3,462,636 |
|
|
2,995,571 |
|
|
2,919,673 |
|
Short-term
borrowings |
|
|
|
29,699 |
|
|
123,662 |
|
|
128,841 |
|
|
151,234 |
|
|
131,356 |
|
Other
borrowings |
|
|
|
398,671 |
|
|
326,009 |
|
|
341,269 |
|
|
303,143 |
|
|
275,666 |
|
Stockholders' equity |
|
|
|
498,722 |
|
|
454,934 |
|
|
446,875 |
|
|
400,516 |
|
|
397,687 |
|
|
|
|
|
|
|
|
|
|
LOANS AND
LEASES |
|
|
|
|
|
|
|
Commercial,
real estate |
|
|
$ |
2,675,154 |
|
$ |
2,353,125 |
|
$ |
2,243,335 |
|
$ |
1,879,659 |
|
$ |
1,776,911 |
|
Commercial,
industrial and other |
|
|
339,291 |
|
|
313,062 |
|
|
332,097 |
|
|
307,044 |
|
|
290,961 |
|
Leases |
|
|
|
|
65,659 |
|
|
63,338 |
|
|
60,925 |
|
|
56,660 |
|
|
55,057 |
|
Residential
mortgages |
|
|
|
370,766 |
|
|
383,823 |
|
|
392,387 |
|
|
389,692 |
|
|
400,247 |
|
Consumer
and home equity |
|
|
343,649 |
|
|
340,956 |
|
|
340,217 |
|
|
334,891 |
|
|
330,588 |
|
Total loans and leases |
|
|
$ |
3,794,519 |
|
$ |
3,454,304 |
|
$ |
3,368,961 |
|
$ |
2,967,946 |
|
$ |
2,853,764 |
|
|
|
|
|
|
|
|
|
|
DEPOSITS |
|
|
|
|
|
|
|
|
Non-interest bearing |
|
|
$ |
931,385 |
|
$ |
824,077 |
|
$ |
774,487 |
|
$ |
693,741 |
|
$ |
694,267 |
|
Savings and
interest bearing transaction accounts |
|
2,471,097 |
|
|
2,235,918 |
|
|
2,204,356 |
|
|
1,958,510 |
|
|
1,907,858 |
|
Time
deposits |
|
|
|
539,260 |
|
|
477,336 |
|
|
483,793 |
|
|
343,321 |
|
|
317,548 |
|
Total deposits |
|
|
$ |
3,941,742 |
|
$ |
3,537,331 |
|
$ |
3,462,636 |
|
$ |
2,995,572 |
|
$ |
2,919,673 |
|
|
|
|
|
|
|
|
|
|
SELECTED AVERAGE BALANCE SHEET DATA |
|
|
|
|
Loans and
leases |
|
|
$ |
3,743,434 |
|
$ |
3,412,503 |
|
$ |
3,284,339 |
|
$ |
2,898,477 |
|
$ |
2,811,581 |
|
Investment
securities |
|
|
|
606,779 |
|
|
575,206 |
|
|
570,581 |
|
|
561,024 |
|
|
581,565 |
|
Interest
earning assets |
|
|
|
4,467,524 |
|
|
4,094,575 |
|
|
3,933,160 |
|
|
3,509,867 |
|
|
3,431,018 |
|
Total
assets |
|
|
4,805,381 |
|
|
4,403,588 |
|
|
4,248,468 |
|
|
3,779,819 |
|
|
3,685,573 |
|
Non-interest bearing demand deposits |
|
|
895,851 |
|
|
801,488 |
|
|
760,198 |
|
|
722,270 |
|
|
710,011 |
|
Savings
deposits |
|
|
|
487,918 |
|
|
485,580 |
|
|
475,870 |
|
|
402,217 |
|
|
398,147 |
|
Interest
bearing transaction accounts |
|
|
1,988,405 |
|
|
1,775,129 |
|
|
1,682,580 |
|
|
1,573,638 |
|
|
1,497,340 |
|
Time
deposits |
|
|
|
533,224 |
|
|
487,169 |
|
|
465,024 |
|
|
328,080 |
|
|
309,235 |
|
Total
deposits |
|
|
3,905,398 |
|
|
3,549,366 |
|
|
3,383,672 |
|
|
3,026,205 |
|
|
2,914,733 |
|
Short-term
borrowings |
|
|
|
35,608 |
|
|
31,591 |
|
|
50,335 |
|
|
47,276 |
|
|
61,679 |
|
Other
borrowings |
|
|
|
339,204 |
|
|
346,347 |
|
|
349,088 |
|
|
286,887 |
|
|
297,140 |
|
Total
interest bearing liabilities |
|
|
3,384,359 |
|
|
3,125,815 |
|
|
3,022,897 |
|
|
2,638,098 |
|
|
2,563,542 |
|
Stockholders' equity |
|
|
|
495,343 |
|
|
450,806 |
|
|
440,823 |
|
|
399,987 |
|
|
394,948 |
|
Lakeland Bancorp, Inc. |
Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
|
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
(Dollars in thousands) |
2016 |
2016 |
2016 |
2015 |
2015 |
AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT
BASIS) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Loans and
leases |
|
|
|
4.23 |
% |
|
4.22 |
% |
|
4.18 |
% |
|
4.12 |
% |
|
4.11 |
% |
Taxable
investment securities and other |
|
|
2.06 |
% |
|
2.18 |
% |
|
2.39 |
% |
|
2.09 |
% |
|
2.06 |
% |
Tax-exempt
securities |
|
|
|
3.01 |
% |
|
3.15 |
% |
|
3.40 |
% |
|
3.49 |
% |
|
3.41 |
% |
Federal
funds sold and interest bearing cash accounts |
|
0.48 |
% |
|
0.46 |
% |
|
0.38 |
% |
|
0.25 |
% |
|
0.07 |
% |
Total interest earning assets |
|
|
3.85 |
% |
|
3.85 |
% |
|
3.86 |
% |
|
3.76 |
% |
|
3.75 |
% |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Savings
accounts |
|
|
|
0.06 |
% |
|
0.05 |
% |
|
0.08 |
% |
|
0.05 |
% |
|
0.05 |
% |
Interest
bearing transaction accounts |
|
|
0.34 |
% |
|
0.31 |
% |
|
0.30 |
% |
|
0.26 |
% |
|
0.25 |
% |
Time
deposits |
|
|
|
0.81 |
% |
|
0.79 |
% |
|
0.74 |
% |
|
0.70 |
% |
|
0.63 |
% |
Borrowings |
|
|
|
|
1.71 |
% |
|
1.62 |
% |
|
1.52 |
% |
|
1.53 |
% |
|
1.52 |
% |
Total interest bearing liabilities |
|
|
0.53 |
% |
|
0.50 |
% |
|
0.49 |
% |
|
0.44 |
% |
|
0.44 |
% |
Net
interest spread (taxable equivalent basis) |
|
3.32 |
% |
|
3.35 |
% |
|
3.37 |
% |
|
3.32 |
% |
|
3.31 |
% |
|
|
|
|
|
|
|
|
|
Annualized
net interest margin (taxable equivalent basis) |
|
3.45 |
% |
|
3.47 |
% |
|
3.48 |
% |
|
3.43 |
% |
|
3.42 |
% |
Annualized
cost of deposits |
|
|
0.29 |
% |
|
0.27 |
% |
|
0.26 |
% |
|
0.22 |
% |
|
0.20 |
% |
|
|
|
|
|
|
|
|
|
ASSET QUALITY DATA |
|
|
|
|
|
|
ALLOWANCE
FOR LOAN AND LEASE LOSSES |
|
|
|
|
|
Balance at
beginning of period |
|
$ |
30,667 |
|
$ |
30,553 |
|
$ |
30,874 |
|
$ |
30,994 |
|
$ |
30,174 |
|
Provision
for loan and lease losses |
|
|
1,763 |
|
|
1,010 |
|
|
1,075 |
|
|
- |
|
|
332 |
|
Charge-offs |
|
|
|
|
(1,273 |
) |
|
(1,045 |
) |
|
(1,543 |
) |
|
(1,140 |
) |
|
(584 |
) |
Recoveries |
|
|
|
|
212 |
|
|
149 |
|
|
147 |
|
|
1,020 |
|
|
1,072 |
|
Balance at end of period |
|
|
$ |
31,369 |
|
$ |
30,667 |
|
$ |
30,553 |
|
$ |
30,874 |
|
$ |
30,994 |
|
|
|
|
|
|
|
|
|
|
NET LOAN
AND LEASE CHARGE-OFFS (RECOVERIES) |
|
|
|
|
|
Commercial,
real estate |
|
|
$ |
(11 |
) |
$ |
113 |
|
$ |
81 |
|
$ |
(450 |
) |
$ |
(936 |
) |
Commercial,
industrial and other |
|
|
(30 |
) |
|
137 |
|
|
583 |
|
|
(56 |
) |
|
88 |
|
Leases |
|
|
|
|
40 |
|
|
183 |
|
|
69 |
|
|
(1 |
) |
|
13 |
|
Home equity
and consumer |
|
|
677 |
|
|
250 |
|
|
574 |
|
|
561 |
|
|
204 |
|
Real estate
- mortgage |
|
|
|
385 |
|
|
213 |
|
|
89 |
|
|
66 |
|
|
143 |
|
Net
charge-offs (recoveries) |
|
$ |
1,061 |
|
$ |
896 |
|
$ |
1,396 |
|
$ |
120 |
|
$ |
(488 |
) |
|
|
|
|
|
|
|
|
|
NON-PERFORMING ASSETS |
|
|
|
|
|
|
Commercial,
real estate |
|
|
$ |
13,068 |
|
$ |
12,554 |
|
$ |
11,943 |
|
$ |
10,446 |
|
$ |
8,176 |
|
Commercial,
industrial and other |
|
|
39 |
|
|
41 |
|
|
1,163 |
|
|
103 |
|
|
832 |
|
Leases |
|
|
|
|
78 |
|
|
159 |
|
|
282 |
|
|
316 |
|
|
154 |
|
Home equity
and consumer |
|
|
2,210 |
|
|
3,325 |
|
|
3,249 |
|
|
3,167 |
|
|
3,530 |
|
Real estate
- mortgage |
|
|
|
7,264 |
|
|
8,865 |
|
|
8,330 |
|
|
8,664 |
|
|
8,805 |
|
Total non-accruing loans and leases |
|
|
22,659 |
|
|
24,944 |
|
|
24,967 |
|
|
22,696 |
|
|
21,497 |
|
Property
acquired through foreclosure or repossession |
|
1,918 |
|
|
1,594 |
|
|
792 |
|
|
983 |
|
|
819 |
|
Total non-performing assets |
|
$ |
24,577 |
|
$ |
26,538 |
|
$ |
25,759 |
|
$ |
23,679 |
|
$ |
22,316 |
|
|
|
|
|
|
|
|
|
|
Loans past
due 90 days or more and still accruing |
$ |
10 |
|
$ |
42 |
|
$ |
101 |
|
$ |
331 |
|
$ |
123 |
|
Loans
restructured and still accruing |
|
$ |
9,251 |
|
$ |
9,509 |
|
$ |
10,545 |
|
$ |
10,108 |
|
$ |
11,927 |
|
|
|
|
|
|
|
|
|
|
Ratio of
allowance for loan and lease losses to total loans and leases |
|
|
|
|
0.83 |
% |
|
0.89 |
% |
|
0.91 |
% |
|
1.04 |
% |
|
1.09 |
% |
Non-performing loans and leases to total loans and leases |
|
|
|
|
0.60 |
% |
|
0.72 |
% |
|
0.74 |
% |
|
0.76 |
% |
|
0.75 |
% |
Non-performing assets to total assets |
|
|
|
|
0.50 |
% |
|
0.59 |
% |
|
0.58 |
% |
|
0.61 |
% |
|
0.60 |
% |
Annualized net charge-offs (recoveries) to average loans |
|
|
|
|
0.11 |
% |
|
0.11 |
% |
|
0.17 |
% |
|
0.02 |
% |
|
-0.07 |
% |
Lakeland Bancorp, Inc. |
|
Supplemental Information - Non-GAAP Financial
Measures |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the Quarter Ended |
|
|
|
|
|
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
Sept 30, |
|
(Dollars in thousands, except per share amounts) |
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION OF TANGIBLE BOOK VALUE PER COMMON
SHARE |
|
|
|
|
|
Total
common stockholders' equity at end of period - GAAP |
$ |
498,722 |
|
$ |
454,934 |
|
$ |
446,875 |
|
$ |
400,516 |
|
$ |
397,687 |
|
|
Less:
Goodwill |
|
|
|
|
136,392 |
|
|
125,285 |
|
|
125,443 |
|
|
109,974 |
|
|
109,974 |
|
|
Less:
Other identifiable intangible assets |
|
|
3,545 |
|
|
2,728 |
|
|
2,891 |
|
|
1,545 |
|
|
1,644 |
|
|
Total tangible common stockholders' equity at
end of period - Non-GAAP |
$ |
358,785 |
|
$ |
326,921 |
|
$ |
318,541 |
|
$ |
288,997 |
|
$ |
286,069 |
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of period |
|
|
44,443 |
|
|
41,241 |
|
|
41,241 |
|
|
37,906 |
|
|
37,906 |
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share - GAAP |
|
|
$ |
11.22 |
|
$ |
11.03 |
|
$ |
10.84 |
|
$ |
10.57 |
|
$ |
10.49 |
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share - Non-GAAP |
|
$ |
8.07 |
|
$ |
7.93 |
|
$ |
7.72 |
|
$ |
7.62 |
|
$ |
7.55 |
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE
ASSETS |
|
|
|
|
|
Total tangible common stockholders' equity at end of
period - Non-GAAP |
$ |
358,785 |
|
$ |
326,921 |
|
$ |
318,541 |
|
$ |
288,997 |
|
$ |
286,069 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets at end of period - GAAP |
|
$ |
4,904,291 |
|
$ |
4,467,860 |
|
$ |
4,404,233 |
|
$ |
3,869,550 |
|
$ |
3,743,100 |
|
|
Less:
Goodwill |
|
|
|
|
136,392 |
|
|
125,285 |
|
|
125,443 |
|
|
109,974 |
|
|
109,974 |
|
|
Less:
Other identifiable intangible assets |
|
|
3,545 |
|
|
2,728 |
|
|
2,891 |
|
|
1,545 |
|
|
1,644 |
|
|
Total tangible assets at end of period -
Non-GAAP |
$ |
4,764,354 |
|
$ |
4,339,847 |
|
$ |
4,275,899 |
|
$ |
3,758,031 |
|
$ |
3,631,482 |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity to assets - GAAP |
|
|
|
10.17 |
% |
|
10.18 |
% |
|
10.15 |
% |
|
10.35 |
% |
|
10.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets - Non-GAAP |
|
7.53 |
% |
|
7.53 |
% |
|
7.45 |
% |
|
7.69 |
% |
|
7.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON
EQUITY |
|
|
|
|
|
Net
income - GAAP |
|
|
|
$ |
11,327 |
|
$ |
10,130 |
|
$ |
8,108 |
|
$ |
8,464 |
|
$ |
7,825 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
average common stockholders' equity - GAAP |
$ |
495,343 |
|
$ |
450,806 |
|
$ |
440,823 |
|
$ |
399,987 |
|
$ |
394,948 |
|
|
Less:
Average goodwill |
|
|
|
136,392 |
|
|
125,424 |
|
|
124,423 |
|
|
109,974 |
|
|
109,974 |
|
|
Less:
Average other identifiable intangible assets |
|
3,685 |
|
|
2,828 |
|
|
2,920 |
|
|
1,606 |
|
|
1,706 |
|
|
Total average tangible common stockholders'
equity - Non-GAAP |
$ |
355,266 |
|
$ |
322,554 |
|
$ |
313,480 |
|
$ |
288,407 |
|
$ |
283,268 |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common stockholders' equity - GAAP |
|
9.10 |
% |
|
9.04 |
% |
|
7.40 |
% |
|
8.40 |
% |
|
7.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible common stockholders' equity -
Non-GAAP |
|
12.68 |
% |
|
12.63 |
% |
|
10.40 |
% |
|
11.64 |
% |
|
10.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
CALCULATION OF EFFICIENCY RATIO |
|
|
|
|
|
|
|
Total
non-interest expense |
|
|
$ |
26,006 |
|
$ |
23,715 |
|
$ |
25,424 |
|
$ |
22,142 |
|
$ |
23,832 |
|
|
Amortization of core deposit intangibles |
|
|
(201 |
) |
|
(164 |
) |
|
(167 |
) |
|
(99 |
) |
|
(98 |
) |
|
Other real
estate owned and other repossessed asset expense |
|
32 |
|
|
(26 |
) |
|
(39 |
) |
|
(135 |
) |
|
(27 |
) |
|
Long-term
debt prepayment fee |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(2,407 |
) |
|
Merger
related expenses |
|
|
|
(1,697 |
) |
|
(685 |
) |
|
(1,721 |
) |
|
(822 |
) |
|
(330 |
) |
|
Provision for unfunded lending commitments |
|
|
- |
|
|
(230 |
) |
|
(208 |
) |
|
(506 |
) |
|
(168 |
) |
|
Non-interest expense, as adjusted |
|
$ |
24,140 |
|
$ |
22,610 |
|
$ |
23,289 |
|
$ |
20,580 |
|
$ |
20,802 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
38,518 |
|
$ |
35,102 |
|
$ |
33,850 |
|
$ |
30,119 |
|
$ |
29,334 |
|
|
Total non-interest income |
|
|
|
6,417 |
|
|
4,885 |
|
|
4,867 |
|
|
4,778 |
|
|
6,687 |
|
|
Total
revenue |
|
|
|
|
44,935 |
|
|
39,987 |
|
|
38,717 |
|
|
34,897 |
|
|
36,021 |
|
|
Tax-equivalent adjustment on municipal securities |
|
253 |
|
|
225 |
|
|
222 |
|
|
212 |
|
|
210 |
|
|
Gain on
debt extinguishment |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,830 |
) |
|
Gains on sale of investment securities |
|
|
- |
|
|
- |
|
|
(370 |
) |
|
(51 |
) |
|
(173 |
) |
|
Total revenue, as adjusted |
|
|
$ |
45,188 |
|
$ |
40,212 |
|
$ |
38,569 |
|
$ |
35,058 |
|
$ |
34,228 |
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio - Non-GAAP |
|
|
|
53.42 |
% |
|
56.23 |
% |
|
60.38 |
% |
|
58.70 |
% |
|
60.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
For the Nine Months Ended |
|
|
|
|
|
|
Sept 30, |
Sept 30, |
Sept 30, |
Sept 30, |
|
|
(Dollars in thousands, except per share amounts) |
|
|
|
2016 |
2015 |
2016 |
2015 |
|
|
RECONCILIATION OF EARNINGS PER SHARE |
|
|
|
|
|
|
Net
income - GAAP |
|
|
|
$ |
11,327 |
|
$ |
7,825 |
|
$ |
29,565 |
|
$ |
24,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-ROUTINE
TRANSACTIONS |
|
|
|
|
|
|
|
Debt
prepayment charges ($2,407 before tax) |
|
|
- |
|
|
1,424 |
|
|
- |
|
|
1,424 |
|
|
|
Gain on
debt extinguishment ($1,830 before tax) |
|
- |
|
|
(1,082 |
) |
|
- |
|
|
(1,082 |
) |
|
|
Associated
gain on sale of investment securities ($173 before tax) |
|
- |
|
|
(102 |
) |
|
- |
|
|
(102 |
) |
|
|
Tax
deductible merger related expenses |
|
|
893 |
|
|
94 |
|
|
1,915 |
|
|
94 |
|
|
|
Non-tax deductible merger related expenses |
|
|
187 |
|
|
169 |
|
|
866 |
|
|
169 |
|
|
|
Net effect of non-routine transactions |
|
|
1,080 |
|
|
503 |
|
|
2,781 |
|
|
503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income |
|
|
|
|
12,407 |
|
|
8,328 |
|
|
32,346 |
|
|
24,520 |
|
|
|
Less: Earnings allocated to participating
securities |
|
(114 |
) |
|
(68 |
) |
|
(275 |
) |
|
(189 |
) |
|
|
Total adjusted net income - Non-GAAP |
|
$ |
12,293 |
|
$ |
8,260 |
|
$ |
32,071 |
|
$ |
24,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares - Basic |
|
|
|
44,439 |
|
|
37,856 |
|
|
42,211 |
|
|
37,837 |
|
|
|
Weighted average shares - Diluted |
|
|
44,659 |
|
|
38,015 |
|
|
42,390 |
|
|
37,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share - Non-GAAP |
|
$ |
0.28 |
|
$ |
0.22 |
|
$ |
0.76 |
|
$ |
0.64 |
|
|
|
Diluted earnings per share - Non-GAAP |
|
$ |
0.28 |
|
$ |
0.22 |
|
$ |
0.76 |
|
$ |
0.64 |
|
|
|
Lakeland Bancorp, Inc. |
Supplemental Information - Non-GAAP Financial
Measures |
(Unaudited) |
|
|
|
|
For the Nine Months Ended, |
|
|
|
|
Sept 30, |
Sept 30, |
(Dollars
in thousands) |
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON
EQUITY |
|
|
|
Net
income - GAAP |
|
|
|
$ |
29,565 |
|
$ |
24,017 |
|
|
|
|
|
|
|
Total
average common stockholders' equity - GAAP |
|
|
$ |
462,445 |
|
$ |
389,604 |
|
Less: Average
goodwill |
|
|
|
|
128,774 |
|
|
109,974 |
|
Less:
Average other identifiable intangible assets |
|
|
|
3,146 |
|
|
1,810 |
|
Total average tangible common stockholders'
equity - Non-GAAP |
|
$ |
330,525 |
|
$ |
277,820 |
|
|
|
|
|
|
|
Return on average common stockholders' equity - GAAP |
|
|
|
8.54 |
% |
|
8.24 |
% |
|
|
|
|
|
|
Return on average tangible common stockholders' equity -
Non-GAAP |
|
|
11.95 |
% |
|
11.56 |
% |
|
|
|
|
|
|
CALCULATION OF
EFFICIENCY RATIO |
|
|
|
|
|
Total non-interest
expense |
|
|
|
$ |
75,145 |
|
$ |
65,069 |
|
Amortization of core
deposit intangibles |
|
|
|
|
(532 |
) |
|
(316 |
) |
Other real
estate owned and other repossessed asset expense |
|
|
|
(33 |
) |
|
(46 |
) |
Long-term debt
prepayment fee |
|
|
|
|
- |
|
|
(2,407 |
) |
Merger related
expenses |
|
|
|
|
(4,103 |
) |
|
(330 |
) |
Provision
for unfunded lending commitments |
|
|
|
|
(438 |
) |
|
(358 |
) |
Non-interest expense, as adjusted |
|
|
|
$ |
70,039 |
|
$ |
61,612 |
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
107,470 |
|
$ |
86,521 |
|
Non-interest income |
|
|
|
|
16,169 |
|
|
16,383 |
|
Total
revenue |
|
|
|
|
123,639 |
|
|
102,904 |
|
Tax-equivalent adjustment on municipal securities |
|
|
|
700 |
|
|
645 |
|
Gain on debt
extinguishment |
|
|
|
|
- |
|
|
(1,830 |
) |
Gain on sale of
investment securities |
|
|
|
|
(370 |
) |
|
(190 |
) |
Total revenue, as adjusted |
|
|
|
$ |
123,969 |
|
$ |
101,529 |
|
|
|
|
|
|
|
Efficiency ratio - Non-GAAP |
|
|
|
|
56.50 |
% |
|
60.68 |
% |
Thomas J. Shara
President & CEO
Joseph F. Hurley
EVP & CFO
973-697-2000
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