Lakeland Bancorp, Inc. (NASDAQ:LBAI) (the “Company”) reported the
following results for the fourth quarter of 2016 and for the year
ended December 31, 2016:
- Net income for the fourth quarter of 2016 was $12.0 million, or
$0.26 per diluted share, compared to net income of $8.5 million, or
$0.22 per diluted share, for the same period in 2015. No
merger related expenses were incurred during the fourth quarter of
2016. Excluding merger related expenses, fourth quarter 2015
net income was $9.2 million, or $0.24 per diluted share.
- For the fourth quarter of 2016, annualized return on average
assets was 0.95%, annualized return on average common equity was
9.31%, and annualized return on average tangible common equity was
12.83%.
- For 2016, net income was $41.5 million, or $0.95 per diluted
share, compared to net income of $32.5 million, or $0.85 per
diluted share, for 2015, a 28% and 12% increase,
respectively. Excluding merger related expenses and other
items, net income for 2016 was $44.3 million, or $1.02 per diluted
share, compared to $33.8 million, or $0.88 per diluted share, for
2015, a 31% and 16% increase, respectively.
- The return on average assets for the year ended December 31,
2016 was 0.90%, the return on average common equity was 8.75% and
the return on average tangible common equity was 12.19%.
Excluding merger related expenses and other items, these ratios
were 0.96%, 9.34% and 13.01%, respectively.
- Total assets exceeded $5.0 billion for the first time in the
Company’s history, finishing the year at $5.09 billion.
During 2016, total assets grew $1.22 billion, comprised of organic
growth of $491.8 million, or 12.7%, and growth through acquisitions
of $731.8 million.
- The Company bolstered its capital levels with a $50 million
common stock issuance of 2.7 million shares in December 2016 and
the issuance of $75 million in subordinated debt in September 2016
bearing an annual interest rate of 5.125%.
- For the fourth quarter of 2016, the Company reported loan
growth of $78.3 million, or 2%, to $3.87 billion, comprised
primarily of $91.5 million in commercial real estate loans, which
increased 3%. For the year, total loans and leases increased
by $904.9 million, or 30%, with organic growth of $325.6 million,
or 11%.
- For the fourth quarter of 2016, the Company reported deposit
growth of $151.1 million, or 4%, to $4.09 billion. This
overall increase was primarily due to additional growth in
government deposits. For the year, total deposits increased
$1.10 billion, or 37%, with organic growth of $514.7 million, or
17%, which included $125.4 million in non-interest bearing
deposits.
- Net interest margin (“NIM”) was 3.27% for the fourth quarter of
2016, compared to 3.45% for the prior quarter and 3.43% for the
fourth quarter of 2015. The decrease this quarter was
primarily attributed to $1.0 million in interest expense from the
recent, aforementioned subordinated debt issuance. In
addition, relatively lower yielding cash balances increased as a
result of the $75 million subordinated debt and $50 million common
stock issuances as well as strong deposit growth.
- The efficiency ratio was 56.16% for the fourth quarter of 2016,
as compared to 58.70% for the same period in 2015. The
decrease in this ratio, in part, reflects the realization of cost
savings from our acquisitions and the closure of seven branches in
2016.
- For the fourth quarter of 2016, the Company recorded a
provision for loan and lease losses of $0.4 million and had net
charge-offs of $0.5 million. The quarterly provision for loan
and lease losses declined $1.4 million from the third quarter,
primarily due to a significant payoff in classified loans. At
December 31, 2016, the ratio of non-performing assets to total
assets was 0.42%, down from 0.61% at December 31, 2015.
- On January 24, 2017, the Company declared a quarterly cash
dividend of $0.095 per common share, payable February 17, 2017 to
holders of record as of the close of business on February 7,
2017.
Thomas J. Shara, Lakeland Bancorp’s President and
CEO, commented, “We are very proud of the Company’s many
achievements in 2016 including our continued organic growth in both
loans and deposits; the successful integration of two acquisitions
in strategic market areas; and building our franchise to $5 billion
in total assets. In addition to these successes, we took
advantage of the opportunity to bolster our capital levels through
an equity offering in December and the subordinated debt issuance
in September. These moves position us favorably for future
growth.”
Earnings
Net income for the fourth quarter of 2016 was $12.0
million, as compared to $8.5 million for the fourth quarter of
2015. Net income for the fourth quarter of 2015 excluding
merger related expenses was $9.2 million.
Net income for 2016 was $41.5 million compared to
$32.5 million for the same period in 2015. Excluding merger
related expenses and other items, net income for 2016 was $44.3
million compared to $33.8 million in 2015.
Net Interest
Income
Net interest income for the fourth quarter of 2016
was $38.2 million, as compared to $30.1 million for the same period
in 2015. This increase was primarily due to higher levels of
interest earnings assets as a result of our acquisitions as well as
organic growth. NIM was 3.27% for the fourth quarter of 2016
compared to 3.43% for the fourth quarter of 2015. This
decrease was primarily attributed to two factors. First, the
$75 million subordinated debt offering in September 2016 added $1.0
million of interest expense for the quarter. Second, the
Company temporarily maintained an elevated level of interest
earning cash balances as a result of the proceeds from the
subordinated debt and stock issuance offerings as well as an influx
of deposits prior to the deployment of these funds into higher
interest earning assets.
The yield on interest earning assets for the fourth
quarter of 2016 was 3.74%, as compared to 3.76% reported in the
fourth quarter of 2015. The cost of interest bearing
liabilities for the fourth quarter of 2016 was 0.62%, as compared
to 0.44% in the fourth quarter of 2015, reflecting the new
subordinated debt and moderately higher cost of deposits.
Net interest income for 2016 was $145.6 million, as
compared to $116.6 million reported for 2015. NIM for 2016
was 3.41%, compared to 3.47% in 2015. The yield on earning
assets was 3.82% for 2016 and 3.79% for 2015. The cost of
interest bearing liabilities for 2016 was 0.54%, as compared to
0.43% for 2015, reflecting the new subordinated debt and moderately
higher cost of deposits.
Non-interest
Income
Non-interest income totaled $5.2 million for the
fourth quarter of 2016 compared to $4.8 million for the same period
in 2015. This increase was primarily due to higher swap fee
income during the quarter.
For the year, non-interest income totaled $21.3
million in 2016, as compared to $21.2 million in 2015, which
included a $1.8 million gain on debt extinguishment. The most
significant increases in 2016 included $0.7 million in swap fee
income, $0.5 million in BOLI death benefits and $0.4 million in
gain on sale of loans.
Non-interest Expense
Non-interest expense for the fourth quarter of 2016
was $24.8 million, an increase of $2.6 million compared to $22.1
million for the same period in 2015. Excluding the impact of
merger related expenses, non-interest expense increased by $3.5
million. Salary and employee benefit expense increased $1.9
million due primarily to the additional staff from the acquisitions
and year-over-year increases in employee salary and benefit
costs. Net occupancy expense increased $0.5 million and
furniture and equipment expense increased $0.3 million, due
primarily to the additional locations. Other expenses
increased $0.8 million, primarily due to higher legal, collection,
insurance and personnel expenses.
For 2016, non-interest expense was $99.9 million,
an increase of $12.7 million compared to 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
$12.2 million. Salary and employee benefit expense increased
by $7.5 million, due primarily to the additional staff from the
acquisitions and year-over-year increases in employee salary and
benefit costs. Furniture and equipment expense increased $1.1
million and net occupancy expense increased $1.0 million due
primarily to the additional locations. Other expenses
increased $1.2 million, due primarily to higher consulting,
courier, director, insurance and investor relations expenses.
Financial
Condition
In 2016, total assets increased $1.22 billion to
$5.09 billion. Total loans and leases increased by $904.9
million to $3.87 billion. Total deposits increased $1.10
billion to $4.09 billion. In January 2016, the Company
acquired Pascack Bancorp, Inc., which had total assets, total loans
and total deposits of $405.3 million, $319.6 million and $304.5
million, respectively. In July 2016, the Company acquired
Harmony Bank, which had total assets, total loans and total
deposits of $326.4 million, $259.7 million and $278.1 million,
respectively.
Asset Quality
At December 31, 2016, non-performing assets totaled
$21.5 million (0.42% 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 decreased
to 0.53% at December 31, 2016 from 0.76% at December 31,
2015. The allowance for loan and lease losses totaled $31.2
million at December 31, 2016, and represented 0.81% 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 improvement in
asset quality and to the addition of acquired loans with no
allowance for loan losses. The Company had net charge-offs of
$3.9 million (0.11% of average loans) in 2016 and $0.5 million
(0.05% of average loans) for the fourth quarter of 2016. The
provision for loan and lease losses for 2016 was $4.2 million,
versus $1.9 million in 2015.
Capital
At December 31, 2016, stockholders' equity was
$550.0 million, while book value per common share was $11.65, an
increase of 10% from December 31, 2015. Tangible book value
per common share was $8.69, an increase of 14% from December 31,
2015. As of December 31, 2016, the Company’s leverage ratio
was 9.06%. Tier I and total risk based capital ratios were
10.84% and 13.47%, respectively, reflecting the issuance of the
subordinated notes and additional shares of common stock. The
common equity tier 1 capital ratio was 10.10%. At December
31, 2016, the tangible common equity ratio was 8.28%, compared to
7.69% as of December 31, 2015. 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 $5.1 billion in
total assets with 52 New Jersey branch offices in Bergen, Essex,
Morris, Ocean, Passaic, Somerset, Sussex, and Union counties; six
New Jersey regional commercial lending centers in Bernardsville,
Jackson, Montville, Newton, 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 suite of financial
products and services for businesses and consumers. Visit
LakelandBank.com for more information.
Lakeland Bancorp, Inc. |
Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
(Dollars
in thousands, except per share amounts) |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT |
|
|
|
|
|
|
|
|
Net
interest income |
|
|
$ |
38,179 |
|
|
$ |
30,119 |
|
|
$ |
145,649 |
|
|
$ |
116,640 |
|
Provision
for loan and lease losses |
|
|
(375 |
) |
|
|
- |
|
|
|
(4,223 |
) |
|
|
(1,942 |
) |
Other
non-interest income |
|
|
4,636 |
|
|
|
4,290 |
|
|
|
18,837 |
|
|
|
17,409 |
|
Gain on
sale of investment securities |
|
|
- |
|
|
|
51 |
|
|
|
370 |
|
|
|
241 |
|
Gain on
sale of loans |
|
|
|
525 |
|
|
|
437 |
|
|
|
2,123 |
|
|
|
1,681 |
|
Gain on
debt extinguishment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,830 |
|
Long-term
debt prepayment fee |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,407 |
) |
Merger
related expenses |
|
|
|
- |
|
|
|
(822 |
) |
|
|
(4,103 |
) |
|
|
(1,152 |
) |
Other
non-interest expense |
|
|
(24,772 |
) |
|
|
(21,320 |
) |
|
|
(95,814 |
) |
|
|
(83,652 |
) |
Pretax income |
|
|
|
18,193 |
|
|
|
12,755 |
|
|
|
62,839 |
|
|
|
48,648 |
|
Provision
for income taxes |
|
|
(6,240 |
) |
|
|
(4,291 |
) |
|
|
(21,321 |
) |
|
|
(16,167 |
) |
Net income |
|
|
$ |
11,953 |
|
|
$ |
8,464 |
|
|
$ |
41,518 |
|
|
$ |
32,481 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.26 |
|
|
$ |
0.22 |
|
|
$ |
0.96 |
|
|
$ |
0.85 |
|
Diluted
earnings per common share |
|
$ |
0.26 |
|
|
$ |
0.22 |
|
|
$ |
0.95 |
|
|
$ |
0.85 |
|
Dividends
per common share |
|
$ |
0.095 |
|
|
$ |
0.085 |
|
|
$ |
0.370 |
|
|
$ |
0.330 |
|
Weighted
average shares - basic |
|
|
45,002 |
|
|
|
37,865 |
|
|
|
42,912 |
|
|
|
37,843 |
|
Weighted
average shares - diluted |
|
|
45,257 |
|
|
|
38,048 |
|
|
|
43,114 |
|
|
|
37,993 |
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING RATIOS |
|
|
|
|
|
|
|
|
Annualized
return on average assets |
|
|
0.95 |
% |
|
|
0.89 |
% |
|
|
0.90 |
% |
|
|
0.89 |
% |
Annualized
return on average common equity |
|
9.31 |
% |
|
|
8.40 |
% |
|
|
8.75 |
% |
|
|
8.28 |
% |
Annualized
return on average tangible common equity (1) |
|
12.83 |
% |
|
|
11.64 |
% |
|
|
12.19 |
% |
|
|
11.58 |
% |
Annualized
return on interest earning assets |
|
3.74 |
% |
|
|
3.76 |
% |
|
|
3.82 |
% |
|
|
3.79 |
% |
Annualized
cost of interest bearing liabilities |
|
0.62 |
% |
|
|
0.44 |
% |
|
|
0.54 |
% |
|
|
0.43 |
% |
Annualized
net interest spread |
|
|
3.12 |
% |
|
|
3.32 |
% |
|
|
3.28 |
% |
|
|
3.36 |
% |
Annualized
net interest margin |
|
|
3.27 |
% |
|
|
3.43 |
% |
|
|
3.41 |
% |
|
|
3.47 |
% |
Efficiency
ratio (1) |
|
|
|
56.16 |
% |
|
|
58.70 |
% |
|
|
56.41 |
% |
|
|
60.18 |
% |
Stockholders' equity to total assets |
|
|
|
|
|
|
10.80 |
% |
|
|
10.35 |
% |
Book value
per common share |
|
|
|
|
|
$ |
11.65 |
|
|
$ |
10.57 |
|
Tangible
book value per common share (1) |
|
|
|
|
$ |
8.69 |
|
|
$ |
7.62 |
|
Tangible
common equity to tangible assets (1) |
|
|
|
|
|
8.28 |
% |
|
|
7.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY RATIOS |
|
|
|
|
|
12/31/2016 |
|
12/31/2015 |
Ratio of allowance for loan and lease losses to total loans and
leases |
|
|
|
|
0.81 |
% |
|
|
1.04 |
% |
Non-performing loans and leases to total loans and leases |
|
|
|
|
|
0.53 |
% |
|
|
0.76 |
% |
Non-performing assets to total assets |
|
|
|
|
|
|
0.42 |
% |
|
|
0.61 |
% |
Annualized net charge-offs to average loans and leases |
|
|
|
|
|
0.11 |
% |
|
|
0.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET DATA AT PERIOD-END |
|
|
|
12/31/2016 |
|
12/31/2015 |
Loans and
leases |
|
|
|
|
|
|
$ |
3,872,805 |
|
|
$ |
2,967,946 |
|
Allowance
for loan and lease losses |
|
|
|
|
|
(31,245 |
) |
|
|
(30,874 |
) |
Investment
securities |
|
|
|
|
|
|
|
769,417 |
|
|
|
573,176 |
|
Total assets |
|
|
|
|
|
|
|
|
5,093,131 |
|
|
|
3,869,550 |
|
Total
deposits |
|
|
|
|
|
|
4,092,835 |
|
|
|
2,995,571 |
|
Short-term
borrowings |
|
|
|
|
|
|
|
56,354 |
|
|
|
151,234 |
|
Other
borrowings |
|
|
|
|
|
|
|
365,650 |
|
|
|
303,143 |
|
Stockholders' equity |
|
|
|
|
|
|
550,044 |
|
|
|
400,516 |
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED AVERAGE BALANCE SHEET DATA |
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
|
|
12/31/2016 |
|
12/31/2015 |
|
12/31/2016 |
|
12/31/2015 |
Loans and
leases |
|
|
$ |
3,806,576 |
|
|
$ |
2,898,477 |
|
|
$ |
3,562,879 |
|
|
$ |
2,773,601 |
|
Investment
securities |
|
|
|
683,986 |
|
|
|
561,024 |
|
|
|
609,336 |
|
|
|
581,452 |
|
Interest
earning assets |
|
|
4,680,144 |
|
|
|
3,509,867 |
|
|
|
4,295,381 |
|
|
|
3,390,112 |
|
Total
assets |
|
|
5,015,439 |
|
|
|
3,779,819 |
|
|
|
4,619,816 |
|
|
|
3,648,836 |
|
Non-interest bearing demand deposits |
|
|
951,418 |
|
|
|
722,270 |
|
|
|
852,629 |
|
|
|
695,630 |
|
Savings
deposits |
|
|
|
490,556 |
|
|
|
402,217 |
|
|
|
485,004 |
|
|
|
399,431 |
|
Interest
bearing transaction accounts |
|
|
2,072,154 |
|
|
|
1,573,638 |
|
|
|
1,880,391 |
|
|
|
1,511,954 |
|
Time
deposits |
|
|
|
539,870 |
|
|
|
328,080 |
|
|
|
506,487 |
|
|
|
303,682 |
|
Total
deposits |
|
|
4,053,998 |
|
|
|
3,026,205 |
|
|
|
3,724,511 |
|
|
|
2,910,697 |
|
Short-term
borrowings |
|
|
|
27,538 |
|
|
|
47,276 |
|
|
|
36,242 |
|
|
|
54,027 |
|
Other
borrowings |
|
|
|
392,789 |
|
|
|
286,887 |
|
|
|
356,907 |
|
|
|
274,908 |
|
Total
interest bearing liabilities |
|
|
3,522,907 |
|
|
|
2,638,098 |
|
|
|
3,265,031 |
|
|
|
2,544,003 |
|
Stockholders' equity |
|
|
|
510,562 |
|
|
|
399,987 |
|
|
|
474,540 |
|
|
|
392,221 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Supplemental Information - Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lakeland Bancorp,
Inc. |
Consolidated Statements of
Operations |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
2016 |
|
2015 |
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
Loans and fees |
|
|
|
|
$ |
40,090 |
$ |
30,065 |
|
$ |
149,777 |
$ |
115,295 |
Federal funds sold and interest bearing deposits with
banks |
|
|
228 |
|
32 |
|
|
569 |
|
62 |
Taxable investment securities and other |
|
|
|
2,878 |
|
2,562 |
|
|
11,163 |
|
10,563 |
Tax exempt investment securities |
|
|
|
|
487 |
|
396 |
|
|
1,787 |
|
1,594 |
TOTAL INTEREST INCOME |
|
|
|
|
43,683 |
|
33,055 |
|
|
163,296 |
|
127,514 |
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
3,017 |
|
1,662 |
|
|
10,512 |
|
5,755 |
Federal funds purchased and securities sold under agreements to
repurchase |
|
|
3 |
|
18 |
|
|
69 |
|
110 |
Other borrowings |
|
|
|
|
|
2,484 |
|
1,256 |
|
|
7,066 |
|
5,009 |
TOTAL INTEREST EXPENSE |
|
|
|
5,504 |
|
2,936 |
|
|
17,647 |
|
10,874 |
NET INTEREST INCOME |
|
|
|
|
38,179 |
|
30,119 |
|
|
145,649 |
|
116,640 |
Provision for loan and lease losses |
|
|
|
|
375 |
|
- |
|
|
4,223 |
|
1,942 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE
LOSSES |
|
|
|
|
|
37,804 |
|
30,119 |
|
|
141,426 |
|
114,698 |
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
|
|
2,577 |
|
2,620 |
|
|
10,157 |
|
10,024 |
Commissions and fees |
|
|
|
|
|
1,089 |
|
1,081 |
|
|
4,349 |
|
4,568 |
Gain on sale of investment securities |
|
|
|
|
- |
|
51 |
|
|
370 |
|
241 |
Gain on sale of loans |
|
|
|
|
|
525 |
|
437 |
|
|
2,123 |
|
1,681 |
Gain on debt extinguishment |
|
|
|
|
- |
|
- |
|
|
- |
|
1,830 |
Income on bank owned life insurance |
|
|
|
|
437 |
|
475 |
|
|
2,562 |
|
2,017 |
Other
income |
|
|
|
|
|
|
533 |
|
114 |
|
|
1,769 |
|
800 |
TOTAL NON-INTEREST INCOME |
|
|
|
|
|
5,161 |
|
4,778 |
|
|
21,330 |
|
21,161 |
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
Salaries and employee benefit expense |
|
|
|
|
14,305 |
|
12,370 |
|
|
56,107 |
|
48,640 |
Net occupancy expense |
|
|
|
|
|
2,534 |
|
2,068 |
|
|
9,935 |
|
8,956 |
Furniture and equipment expense |
|
|
|
|
2,113 |
|
1,764 |
|
|
8,017 |
|
6,930 |
Stationary, supplies and postage expense |
|
|
|
456 |
|
392 |
|
|
1,727 |
|
1,529 |
Marketing expense |
|
|
|
|
|
549 |
|
534 |
|
|
1,672 |
|
1,586 |
FDIC insurance expense |
|
|
|
|
|
262 |
|
563 |
|
|
2,248 |
|
2,086 |
ATM and debit card expense |
|
|
|
|
433 |
|
317 |
|
|
1,582 |
|
1,398 |
Telecommunications expense |
|
|
|
|
342 |
|
374 |
|
|
1,631 |
|
1,448 |
Data processing expense |
|
|
|
|
|
394 |
|
392 |
|
|
1,891 |
|
1,524 |
Other real estate owned and other repossessed assets
expense |
|
|
83 |
|
135 |
|
|
116 |
|
181 |
Long-term debt prepayment fee |
|
|
|
|
- |
|
- |
|
|
- |
|
2,407 |
Merger related expenses |
|
|
|
|
|
- |
|
822 |
|
|
4,103 |
|
1,152 |
Core deposit intangible amortization |
|
|
|
|
202 |
|
99 |
|
|
734 |
|
415 |
Other expenses |
|
3,099 |
|
2,312 |
|
|
10,154 |
|
8,959 |
TOTAL NON-INTEREST EXPENSE |
|
|
24,772 |
|
22,142 |
|
|
99,917 |
|
87,211 |
INCOME BEFORE PROVISION FOR INCOME
TAXES |
|
18,193 |
|
12,755 |
|
|
62,839 |
|
48,648 |
Provision for income taxes |
|
|
|
|
|
|
6,240 |
|
4,291 |
|
|
21,321 |
|
16,167 |
NET INCOME |
|
|
|
|
|
$ |
11,953 |
$ |
8,464 |
|
$ |
41,518 |
$ |
32,481 |
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
$ |
0.26 |
$ |
0.22 |
|
$ |
0.96 |
$ |
0.85 |
Diluted |
|
|
|
|
|
$ |
0.26 |
$ |
0.22 |
|
$ |
0.95 |
$ |
0.85 |
DIVIDENDS PER COMMON SHARE |
|
|
|
|
|
$ |
0.095 |
$ |
0.085 |
|
$ |
0.370 |
$ |
0.330 |
Lakeland Bancorp, Inc. |
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
(Dollars in thousands) |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
Cash and due from banks |
|
|
|
$ |
169,149 |
|
|
$ |
113,894 |
|
Federal funds sold and interest bearing deposits due from
banks |
|
|
|
|
|
6,652 |
|
|
|
4,599 |
|
Total
cash and cash equivalents |
|
|
|
|
|
175,801 |
|
|
|
118,493 |
|
|
|
|
|
|
|
|
|
Investment securities available for sale, at fair value |
|
|
606,704 |
|
|
|
442,349 |
|
Investment securities held to maturity; fair value of $146,990
in 2016 |
|
|
|
and $117,594 in 2015 |
|
|
|
|
147,614 |
|
|
|
116,740 |
|
Federal Home Loan Bank and other membership stocks, at
cost |
|
15,099 |
|
|
|
14,087 |
|
Loans held
for sale |
|
|
|
|
1,742 |
|
|
|
1,233 |
|
Loans and
leases: |
|
|
|
|
|
|
Commercial, real estate |
|
|
|
|
2,766,620 |
|
|
|
1,879,659 |
|
Commercial, industrial and other |
|
|
|
350,228 |
|
|
|
307,044 |
|
Leases |
|
|
|
|
|
67,016 |
|
|
|
56,660 |
|
Residential mortgages |
|
|
|
|
349,581 |
|
|
|
389,692 |
|
Consumer and home equity |
|
|
|
339,360 |
|
|
|
334,891 |
|
Total loans and leases |
|
|
|
3,872,805 |
|
|
|
2,967,946 |
|
Net deferred costs (fees) |
|
|
|
|
(3,297 |
) |
|
|
(2,746 |
) |
Allowance for loan and lease losses |
|
|
|
(31,245 |
) |
|
|
(30,874 |
) |
Net loans
and leases |
|
|
|
|
|
3,838,263 |
|
|
|
2,934,326 |
|
Premises and equipment, net |
|
|
|
52,236 |
|
|
|
35,881 |
|
Accrued interest receivable |
|
|
|
12,557 |
|
|
|
9,208 |
|
Goodwill |
|
|
|
|
|
136,392 |
|
|
|
109,974 |
|
Other identifiable intangible assets |
|
|
|
3,344 |
|
|
|
1,545 |
|
Bank owned life insurance |
|
|
|
|
72,384 |
|
|
|
65,361 |
|
Other
assets |
|
|
|
|
|
30,995 |
|
|
|
20,353 |
|
TOTAL ASSETS |
|
|
|
|
$ |
5,093,131 |
|
|
$ |
3,869,550 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Non-interest bearing |
|
|
|
$ |
927,270 |
|
|
$ |
693,741 |
|
Savings and interest bearing transaction accounts |
|
|
2,620,657 |
|
|
|
1,958,510 |
|
Time
deposits through $250,000 |
|
|
|
|
|
404,680 |
|
|
|
270,623 |
|
Time deposits over $250,000 |
|
|
|
|
|
140,228 |
|
|
|
72,698 |
|
Total
deposits |
|
|
|
|
|
4,092,835 |
|
|
|
2,995,572 |
|
Federal
funds purchased and securities sold under agreements to
repurchase |
|
|
|
|
|
56,354 |
|
|
|
151,234 |
|
Other borrowings |
|
|
|
|
260,866 |
|
|
|
271,905 |
|
Subordinated debentures |
|
|
|
|
104,784 |
|
|
|
31,238 |
|
Other
liabilities |
|
|
|
|
|
28,248 |
|
|
|
19,085 |
|
TOTAL LIABILITIES |
|
|
|
|
4,543,087 |
|
|
|
3,469,034 |
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
Common stock, no par value; authorized 70,000,000 shares; |
|
|
|
issued
47,222,914 shares at December 31, 2016 |
|
|
|
|
|
|
|
and
37,906,481 shares at December 31, 2015 |
|
|
|
|
|
510,861 |
|
|
|
386,287 |
|
Retained earnings |
|
|
|
|
38,590 |
|
|
|
13,079 |
|
Accumulated other comprehensive gain |
|
|
|
|
593 |
|
|
|
1,150 |
|
TOTAL STOCKHOLDERS' EQUITY |
|
|
|
|
|
550,044 |
|
|
|
400,516 |
|
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
$ |
5,093,131 |
|
|
$ |
3,869,550 |
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
|
Financial Highlights |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
|
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
|
(Dollars in thousands, except per share data) |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT |
|
|
|
|
|
|
|
Net
interest income |
|
$ |
38,179 |
|
$ |
38,518 |
|
$ |
35,102 |
|
$ |
33,850 |
|
$ |
30,119 |
|
|
Provision
for loan and lease losses |
|
|
(375 |
) |
|
(1,763 |
) |
|
(1,010 |
) |
|
(1,075 |
) |
|
- |
|
|
Other
non-interest income |
|
|
4,636 |
|
|
5,664 |
|
|
4,460 |
|
|
4,077 |
|
|
4,290 |
|
|
Gain on
investment securities |
|
|
- |
|
|
- |
|
|
- |
|
|
370 |
|
|
51 |
|
|
Gain on
sale of loans |
|
|
525 |
|
|
753 |
|
|
425 |
|
|
420 |
|
|
437 |
|
|
Merger
related expenses |
|
|
- |
|
|
(1,697 |
) |
|
(685 |
) |
|
(1,721 |
) |
|
(822 |
) |
|
Other
non-interest expense |
|
|
(24,772 |
) |
|
(24,309 |
) |
|
(23,030 |
) |
|
(23,703 |
) |
|
(21,320 |
) |
|
Pretax income |
|
|
18,193 |
|
|
17,166 |
|
|
15,262 |
|
|
12,218 |
|
|
12,755 |
|
|
Provision
for income taxes |
|
|
(6,240 |
) |
|
(5,839 |
) |
|
(5,132 |
) |
|
(4,110 |
) |
|
(4,291 |
) |
|
Net income |
|
$ |
11,953 |
|
$ |
11,327 |
|
$ |
10,130 |
|
$ |
8,108 |
|
$ |
8,464 |
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.26 |
|
$ |
0.25 |
|
$ |
0.24 |
|
$ |
0.20 |
|
$ |
0.22 |
|
|
Diluted
earnings per common share |
|
$ |
0.26 |
|
$ |
0.25 |
|
$ |
0.24 |
|
$ |
0.20 |
|
$ |
0.22 |
|
|
Dividends
per common share |
|
$ |
0.095 |
|
$ |
0.095 |
|
$ |
0.095 |
|
$ |
0.085 |
|
$ |
0.085 |
|
|
Dividends
paid |
|
$ |
4,265 |
|
$ |
4,261 |
|
$ |
3,955 |
|
$ |
3,525 |
|
$ |
3,246 |
|
|
Weighted
average shares - basic |
|
|
45,002 |
|
|
44,439 |
|
|
41,238 |
|
|
40,931 |
|
|
37,865 |
|
|
Weighted
average shares - diluted |
|
|
45,257 |
|
|
44,659 |
|
|
41,406 |
|
|
41,091 |
|
|
38,048 |
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING RATIOS |
|
|
|
|
|
|
|
Annualized
return on average assets |
|
|
0.95 |
% |
|
0.94 |
% |
|
0.93 |
% |
|
0.77 |
% |
|
0.89 |
% |
|
Annualized
return on average common equity |
|
|
9.31 |
% |
|
9.10 |
% |
|
9.04 |
% |
|
7.40 |
% |
|
8.40 |
% |
|
Annualized return on
average tangible common equity (1) |
|
|
|
12.83 |
% |
|
12.68 |
% |
|
12.63 |
% |
|
10.40 |
% |
|
11.64 |
% |
|
Annualized
net interest margin |
|
|
3.27 |
% |
|
3.45 |
% |
|
3.47 |
% |
|
3.48 |
% |
|
3.43 |
% |
|
Efficiency
ratio (1) |
|
|
56.16 |
% |
|
53.42 |
% |
|
56.23 |
% |
|
60.38 |
% |
|
58.70 |
% |
|
Common
stockholders' equity to total assets |
|
|
10.80 |
% |
|
10.17 |
% |
|
10.18 |
% |
|
10.15 |
% |
|
10.35 |
% |
|
Tangible
common equity to tangible assets (1) |
|
|
8.28 |
% |
|
7.53 |
% |
|
7.53 |
% |
|
7.45 |
% |
|
7.69 |
% |
|
Tier 1
risk-based ratio |
|
|
10.84 |
% |
|
9.70 |
% |
|
9.73 |
% |
|
9.93 |
% |
|
10.53 |
% |
|
Total
risk-based ratio |
|
|
13.47 |
% |
|
12.40 |
% |
|
10.65 |
% |
|
10.87 |
% |
|
11.61 |
% |
|
Tier 1
leverage ratio |
|
|
9.06 |
% |
|
8.26 |
% |
|
8.24 |
% |
|
8.33 |
% |
|
8.70 |
% |
|
Common
equity tier 1 capital ratio |
|
|
10.10 |
% |
|
8.94 |
% |
|
8.90 |
% |
|
9.06 |
% |
|
9.54 |
% |
|
Book value
per common share |
|
$ |
11.65 |
|
$ |
11.22 |
|
$ |
11.03 |
|
$ |
10.84 |
|
$ |
10.57 |
|
|
Tangible
book value per common share (1) |
|
$ |
8.69 |
|
$ |
8.07 |
|
$ |
7.93 |
|
$ |
7.72 |
|
$ |
7.62 |
|
|
|
|
|
|
|
|
|
|
|
(1) See
Supplemental Information - Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
|
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
(Dollars in thousands) |
|
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET DATA AT PERIOD-END |
|
|
|
|
Loans and
leases |
|
|
$ |
3,872,805 |
|
$ |
3,794,519 |
|
$ |
3,454,304 |
|
$ |
3,368,961 |
|
$ |
2,967,946 |
|
Allowance
for loan and lease losses |
|
(31,245 |
) |
|
(31,369 |
) |
|
(30,667 |
) |
|
(30,553 |
) |
|
(30,874 |
) |
Investment
securities |
|
|
|
769,417 |
|
|
638,091 |
|
|
602,408 |
|
|
573,136 |
|
|
573,176 |
|
Total assets |
|
|
|
|
5,093,131 |
|
|
4,904,291 |
|
|
4,467,860 |
|
|
4,404,233 |
|
|
3,869,550 |
|
Total
deposits |
|
|
|
4,092,835 |
|
|
3,941,742 |
|
|
3,537,331 |
|
|
3,462,636 |
|
|
2,995,571 |
|
Short-term
borrowings |
|
|
|
56,354 |
|
|
29,699 |
|
|
123,662 |
|
|
128,841 |
|
|
151,234 |
|
Other
borrowings |
|
|
|
365,650 |
|
|
398,671 |
|
|
326,009 |
|
|
341,269 |
|
|
303,143 |
|
Stockholders' equity |
|
|
|
550,044 |
|
|
498,722 |
|
|
454,934 |
|
|
446,875 |
|
|
400,516 |
|
|
|
|
|
|
|
|
|
|
LOANS AND
LEASES |
|
|
|
|
|
|
|
Commercial,
real estate |
|
|
$ |
2,766,620 |
|
$ |
2,675,154 |
|
$ |
2,353,125 |
|
$ |
2,243,335 |
|
$ |
1,879,659 |
|
Commercial,
industrial and other |
|
|
350,228 |
|
|
339,291 |
|
|
313,062 |
|
|
332,097 |
|
|
307,044 |
|
Leases |
|
|
|
|
67,016 |
|
|
65,659 |
|
|
63,338 |
|
|
60,925 |
|
|
56,660 |
|
Residential
mortgages |
|
|
|
349,581 |
|
|
370,766 |
|
|
383,823 |
|
|
392,387 |
|
|
389,692 |
|
Consumer
and home equity |
|
|
339,360 |
|
|
343,649 |
|
|
340,956 |
|
|
340,217 |
|
|
334,891 |
|
Total loans and leases |
|
|
$ |
3,872,805 |
|
$ |
3,794,519 |
|
$ |
3,454,304 |
|
$ |
3,368,961 |
|
$ |
2,967,946 |
|
|
|
|
|
|
|
|
|
|
DEPOSITS |
|
|
|
|
|
|
|
|
Non-interest bearing |
|
|
$ |
927,270 |
|
$ |
931,385 |
|
$ |
824,077 |
|
$ |
774,487 |
|
$ |
693,741 |
|
Savings and
interest bearing transaction accounts |
|
2,620,657 |
|
|
2,471,097 |
|
|
2,235,918 |
|
|
2,204,356 |
|
|
1,958,510 |
|
Time
deposits |
|
|
|
544,908 |
|
|
539,260 |
|
|
477,336 |
|
|
483,793 |
|
|
343,321 |
|
Total deposits |
|
|
$ |
4,092,835 |
|
$ |
3,941,742 |
|
$ |
3,537,331 |
|
$ |
3,462,636 |
|
$ |
2,995,572 |
|
|
|
|
|
|
|
|
|
|
SELECTED AVERAGE BALANCE SHEET DATA |
|
|
|
|
Loans and
leases |
|
|
$ |
3,806,576 |
|
$ |
3,743,434 |
|
$ |
3,412,503 |
|
$ |
3,284,339 |
|
$ |
2,898,477 |
|
Investment
securities |
|
|
|
683,986 |
|
|
606,779 |
|
|
575,206 |
|
|
570,581 |
|
|
561,024 |
|
Interest
earning assets |
|
|
|
4,680,144 |
|
|
4,467,524 |
|
|
4,094,575 |
|
|
3,933,160 |
|
|
3,509,867 |
|
Total
assets |
|
|
5,015,439 |
|
|
4,805,381 |
|
|
4,403,588 |
|
|
4,248,468 |
|
|
3,779,819 |
|
Non-interest bearing demand deposits |
|
|
951,418 |
|
|
895,851 |
|
|
801,488 |
|
|
760,198 |
|
|
722,270 |
|
Savings
deposits |
|
|
|
490,556 |
|
|
487,918 |
|
|
485,580 |
|
|
475,870 |
|
|
402,217 |
|
Interest
bearing transaction accounts |
|
|
2,072,154 |
|
|
1,988,405 |
|
|
1,775,129 |
|
|
1,682,580 |
|
|
1,573,638 |
|
Time
deposits |
|
|
|
539,870 |
|
|
533,224 |
|
|
487,169 |
|
|
465,024 |
|
|
328,080 |
|
Total
deposits |
|
|
4,053,998 |
|
|
3,905,398 |
|
|
3,549,366 |
|
|
3,383,672 |
|
|
3,026,205 |
|
Short-term
borrowings |
|
|
|
27,538 |
|
|
35,608 |
|
|
31,591 |
|
|
50,335 |
|
|
47,276 |
|
Other
borrowings |
|
|
|
392,789 |
|
|
339,204 |
|
|
346,347 |
|
|
349,088 |
|
|
286,887 |
|
Total
interest bearing liabilities |
|
|
3,522,907 |
|
|
3,384,359 |
|
|
3,125,815 |
|
|
3,022,897 |
|
|
2,638,098 |
|
Stockholders' equity |
|
|
|
510,562 |
|
|
495,343 |
|
|
450,806 |
|
|
440,823 |
|
|
399,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
|
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
(Dollars in thousands) |
|
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT
BASIS) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Loans and
leases |
|
|
|
4.19 |
% |
|
4.23 |
% |
|
4.22 |
% |
|
4.18 |
% |
|
4.12 |
% |
Taxable
investment securities and other |
|
|
2.00 |
% |
|
2.06 |
% |
|
2.18 |
% |
|
2.39 |
% |
|
2.09 |
% |
Tax-exempt
securities |
|
|
|
2.75 |
% |
|
3.01 |
% |
|
3.15 |
% |
|
3.40 |
% |
|
3.49 |
% |
Federal
funds sold and interest bearing cash accounts |
|
0.48 |
% |
|
0.48 |
% |
|
0.46 |
% |
|
0.38 |
% |
|
0.25 |
% |
Total interest earning assets |
|
|
3.74 |
% |
|
3.85 |
% |
|
3.85 |
% |
|
3.86 |
% |
|
3.76 |
% |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Savings
accounts |
|
|
|
0.06 |
% |
|
0.06 |
% |
|
0.05 |
% |
|
0.08 |
% |
|
0.05 |
% |
Interest
bearing transaction accounts |
|
|
0.35 |
% |
|
0.34 |
% |
|
0.31 |
% |
|
0.30 |
% |
|
0.26 |
% |
Time
deposits |
|
|
|
0.84 |
% |
|
0.81 |
% |
|
0.79 |
% |
|
0.74 |
% |
|
0.70 |
% |
Borrowings |
|
|
|
|
2.37 |
% |
|
1.71 |
% |
|
1.62 |
% |
|
1.52 |
% |
|
1.53 |
% |
Total interest bearing liabilities |
|
|
0.62 |
% |
|
0.53 |
% |
|
0.50 |
% |
|
0.49 |
% |
|
0.44 |
% |
Net
interest spread (taxable equivalent basis) |
|
3.12 |
% |
|
3.32 |
% |
|
3.35 |
% |
|
3.37 |
% |
|
3.32 |
% |
|
|
|
|
|
|
|
|
|
Annualized
net interest margin (taxable equivalent basis) |
|
3.27 |
% |
|
3.45 |
% |
|
3.47 |
% |
|
3.48 |
% |
|
3.43 |
% |
Annualized
cost of deposits |
|
|
0.30 |
% |
|
0.29 |
% |
|
0.27 |
% |
|
0.26 |
% |
|
0.22 |
% |
|
|
|
|
|
|
|
|
|
ASSET QUALITY DATA |
|
|
|
|
|
|
ALLOWANCE
FOR LOAN AND LEASE LOSSES |
|
|
|
|
|
Balance at
beginning of period |
|
$ |
31,369 |
|
$ |
30,667 |
|
$ |
30,553 |
|
$ |
30,874 |
|
$ |
30,994 |
|
Provision
for loan and lease losses |
|
|
375 |
|
|
1,763 |
|
|
1,010 |
|
|
1,075 |
|
|
- |
|
Charge-offs |
|
|
|
|
(795 |
) |
|
(1,273 |
) |
|
(1,045 |
) |
|
(1,543 |
) |
|
(1,140 |
) |
Recoveries |
|
|
|
|
296 |
|
|
212 |
|
|
149 |
|
|
147 |
|
|
1,020 |
|
Balance at end of period |
|
|
$ |
31,245 |
|
$ |
31,369 |
|
$ |
30,667 |
|
$ |
30,553 |
|
$ |
30,874 |
|
|
|
|
|
|
|
|
|
|
NET LOAN
AND LEASE CHARGE-OFFS (RECOVERIES) |
|
|
|
|
|
Commercial,
real estate |
|
|
$ |
(87 |
) |
$ |
(11 |
) |
$ |
113 |
|
$ |
81 |
|
$ |
(450 |
) |
Commercial,
industrial and other |
|
|
(96 |
) |
|
(30 |
) |
|
137 |
|
|
583 |
|
|
(56 |
) |
Leases |
|
|
|
|
42 |
|
|
40 |
|
|
183 |
|
|
69 |
|
|
(1 |
) |
Residential
mortgages |
|
|
|
231 |
|
|
385 |
|
|
213 |
|
|
89 |
|
|
66 |
|
Consumer
and home equity |
|
|
409 |
|
|
677 |
|
|
250 |
|
|
574 |
|
|
561 |
|
Net charge-offs (recoveries) |
|
$ |
499 |
|
$ |
1,061 |
|
$ |
896 |
|
$ |
1,396 |
|
$ |
120 |
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING ASSETS |
|
|
|
|
|
|
Commercial,
real estate |
|
|
$ |
11,885 |
|
$ |
13,068 |
|
$ |
12,554 |
|
$ |
11,943 |
|
$ |
10,446 |
|
Commercial,
industrial and other |
|
|
167 |
|
|
39 |
|
|
41 |
|
|
1,163 |
|
|
103 |
|
Leases |
|
|
|
|
153 |
|
|
78 |
|
|
159 |
|
|
282 |
|
|
316 |
|
Residential
mortgages |
|
|
|
6,048 |
|
|
7,264 |
|
|
8,865 |
|
|
8,330 |
|
|
8,664 |
|
Consumer
and home equity |
|
|
2,151 |
|
|
2,210 |
|
|
3,325 |
|
|
3,249 |
|
|
3,167 |
|
Total non-accruing loans and leases |
|
|
20,404 |
|
|
22,659 |
|
|
24,944 |
|
|
24,967 |
|
|
22,696 |
|
Property
acquired through foreclosure or repossession |
|
1,072 |
|
|
1,918 |
|
|
1,594 |
|
|
792 |
|
|
983 |
|
Total non-performing assets |
|
$ |
21,476 |
|
$ |
24,577 |
|
$ |
26,538 |
|
$ |
25,759 |
|
$ |
23,679 |
|
|
|
|
|
|
|
|
|
|
Loans past
due 90 days or more and still accruing |
$ |
10 |
|
$ |
10 |
|
$ |
42 |
|
$ |
101 |
|
$ |
331 |
|
Loans
restructured and still accruing |
|
$ |
8,802 |
|
$ |
9,251 |
|
$ |
9,509 |
|
$ |
10,545 |
|
$ |
10,108 |
|
|
|
|
|
|
|
|
|
|
Ratio of
allowance for loan and lease losses to total loans and leases |
|
|
|
|
0.81 |
% |
|
0.83 |
% |
|
0.89 |
% |
|
0.91 |
% |
|
1.04 |
% |
Non-performing loans and leases to total loans and leases |
|
|
|
|
0.53 |
% |
|
0.60 |
% |
|
0.72 |
% |
|
0.74 |
% |
|
0.76 |
% |
Non-performing assets to total assets |
|
|
|
|
0.42 |
% |
|
0.50 |
% |
|
0.59 |
% |
|
0.58 |
% |
|
0.61 |
% |
Annualized net charge-offs (recoveries) to average loans |
|
|
|
|
0.05 |
% |
|
0.11 |
% |
|
0.11 |
% |
|
0.17 |
% |
|
0.02 |
% |
Lakeland Bancorp, Inc. |
Supplemental Information - Non-GAAP Financial
Measures |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the Quarter Ended |
|
|
|
|
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
Dec 31, |
(Dollars in thousands, except per share amounts) |
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
CALCULATION OF TANGIBLE BOOK VALUE PER COMMON
SHARE |
|
|
|
|
Total
common stockholders' equity at end of period - GAAP |
$ |
550,044 |
|
$ |
498,722 |
|
$ |
454,934 |
|
$ |
446,875 |
|
$ |
400,516 |
|
Less:
Goodwill |
|
|
|
|
136,392 |
|
|
136,392 |
|
|
125,285 |
|
|
125,443 |
|
|
109,974 |
|
Less:
Other identifiable intangible assets |
|
|
3,344 |
|
|
3,545 |
|
|
2,728 |
|
|
2,891 |
|
|
1,545 |
|
Total tangible common stockholders' equity at end of
period - Non-GAAP |
$ |
410,308 |
|
$ |
358,785 |
|
$ |
326,921 |
|
$ |
318,541 |
|
$ |
288,997 |
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of period |
|
|
47,223 |
|
|
44,443 |
|
|
41,241 |
|
|
41,241 |
|
|
37,906 |
|
|
|
|
|
|
|
|
|
|
Book value per share - GAAP |
|
|
$ |
11.65 |
|
$ |
11.22 |
|
$ |
11.03 |
|
$ |
10.84 |
|
$ |
10.57 |
|
|
|
|
|
|
|
|
|
|
Tangible book value per share - Non-GAAP |
|
$ |
8.69 |
|
$ |
8.07 |
|
$ |
7.93 |
|
$ |
7.72 |
|
$ |
7.62 |
|
|
|
|
|
|
|
|
|
|
CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE
ASSETS |
|
|
|
|
Total tangible common stockholders' equity at end of
period - Non-GAAP |
$ |
410,308 |
|
$ |
358,785 |
|
$ |
326,921 |
|
$ |
318,541 |
|
$ |
288,997 |
|
|
|
|
|
|
|
|
|
|
Total
assets at end of period - GAAP |
|
$ |
5,093,131 |
|
$ |
4,904,291 |
|
$ |
4,467,860 |
|
$ |
4,404,233 |
|
$ |
3,869,550 |
|
Less:
Goodwill |
|
|
|
|
136,392 |
|
|
136,392 |
|
|
125,285 |
|
|
125,443 |
|
|
109,974 |
|
Less:
Other identifiable intangible assets |
|
|
3,344 |
|
|
3,545 |
|
|
2,728 |
|
|
2,891 |
|
|
1,545 |
|
Total tangible assets at end of period - Non-GAAP |
$ |
4,953,395 |
|
$ |
4,764,354 |
|
$ |
4,339,847 |
|
$ |
4,275,899 |
|
$ |
3,758,031 |
|
|
|
|
|
|
|
|
|
|
Common equity to assets - GAAP |
|
|
|
10.80 |
% |
|
10.17 |
% |
|
10.18 |
% |
|
10.15 |
% |
|
10.35 |
% |
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets - Non-GAAP |
|
8.28 |
% |
|
7.53 |
% |
|
7.53 |
% |
|
7.45 |
% |
|
7.69 |
% |
|
|
|
|
|
|
|
|
|
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON
EQUITY |
|
|
|
|
Net
income - GAAP |
|
|
|
$ |
11,953 |
|
$ |
11,327 |
|
$ |
10,130 |
|
$ |
8,108 |
|
$ |
8,464 |
|
|
|
|
|
|
|
|
|
|
Total
average common stockholders' equity - GAAP |
$ |
510,562 |
|
$ |
495,343 |
|
$ |
450,806 |
|
$ |
440,823 |
|
$ |
399,987 |
|
Less:
Average goodwill |
|
|
|
136,392 |
|
|
136,392 |
|
|
125,424 |
|
|
124,423 |
|
|
109,974 |
|
Less:
Average other identifiable intangible assets |
|
3,459 |
|
|
3,685 |
|
|
2,828 |
|
|
2,920 |
|
|
1,606 |
|
Total average tangible common stockholders' equity -
Non-GAAP |
$ |
370,711 |
|
$ |
355,266 |
|
$ |
322,554 |
|
$ |
313,480 |
|
$ |
288,407 |
|
|
|
|
|
|
|
|
|
|
Return on average common stockholders' equity - GAAP |
|
9.31 |
% |
|
9.10 |
% |
|
9.04 |
% |
|
7.40 |
% |
|
8.40 |
% |
|
|
|
|
|
|
|
|
|
Return on average tangible common stockholders' equity -
Non-GAAP |
|
12.83 |
% |
|
12.68 |
% |
|
12.63 |
% |
|
10.40 |
% |
|
11.64 |
% |
|
|
|
|
|
|
|
|
|
CALCULATION OF EFFICIENCY RATIO |
|
|
|
|
|
|
Total
non-interest expense |
|
|
$ |
24,772 |
|
$ |
26,006 |
|
$ |
23,715 |
|
$ |
25,424 |
|
$ |
22,142 |
|
Amortization of core deposit intangibles |
|
|
(202 |
) |
|
(201 |
) |
|
(164 |
) |
|
(167 |
) |
|
(99 |
) |
Other real
estate owned and other repossessed asset expense |
|
(83 |
) |
|
32 |
|
|
(26 |
) |
|
(39 |
) |
|
(135 |
) |
Merger
related expenses |
|
|
|
- |
|
|
(1,697 |
) |
|
(685 |
) |
|
(1,721 |
) |
|
(822 |
) |
Provision for unfunded lending commitments |
|
|
- |
|
|
- |
|
|
(230 |
) |
|
(208 |
) |
|
(506 |
) |
Non-interest expense, as adjusted |
|
$ |
24,487 |
|
$ |
24,140 |
|
$ |
22,610 |
|
$ |
23,289 |
|
$ |
20,580 |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
38,179 |
|
$ |
38,518 |
|
$ |
35,102 |
|
$ |
33,850 |
|
$ |
30,119 |
|
Total non-interest income |
|
|
|
5,161 |
|
|
6,417 |
|
|
4,885 |
|
|
4,867 |
|
|
4,778 |
|
Total
revenue |
|
|
|
|
43,340 |
|
|
44,935 |
|
|
39,987 |
|
|
38,717 |
|
|
34,897 |
|
Tax-equivalent adjustment on municipal securities |
|
262 |
|
|
253 |
|
|
225 |
|
|
222 |
|
|
212 |
|
Gains on sale of investment securities |
|
|
- |
|
|
- |
|
|
- |
|
|
(370 |
) |
|
(51 |
) |
Total revenue, as adjusted |
|
|
$ |
43,602 |
|
$ |
45,188 |
|
$ |
40,212 |
|
$ |
38,569 |
|
$ |
35,058 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio - Non-GAAP |
|
|
|
56.16 |
% |
|
53.42 |
% |
|
56.23 |
% |
|
60.38 |
% |
|
58.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
For the Twelve Months Ended |
|
|
|
|
|
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
|
(Dollars in thousands, except per share amounts) |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF EARNINGS PER SHARE |
|
|
|
|
|
Net
income - GAAP |
|
|
|
$ |
11,953 |
|
$ |
8,464 |
|
$ |
41,518 |
|
$ |
32,481 |
|
|
|
|
|
|
|
|
|
|
|
NON-ROUTINE
TRANSACTIONS |
|
|
|
|
|
|
Debt
prepayment charges ($2,407 before tax) |
|
|
- |
|
|
- |
|
|
- |
|
|
1,424 |
|
|
Gain on
debt extinguishment ($1,830 before tax) |
|
- |
|
|
- |
|
|
- |
|
|
(1,082 |
) |
|
Associated
gain on sale of investment securities ($173 before tax) |
|
- |
|
|
- |
|
|
- |
|
|
(102 |
) |
|
Tax
deductible merger related expenses |
|
|
- |
|
|
60 |
|
|
1,915 |
|
|
150 |
|
|
Non-tax deductible merger related expenses |
|
|
- |
|
|
716 |
|
|
866 |
|
|
889 |
|
|
Net effect of non-routine transactions |
|
|
- |
|
|
776 |
|
|
2,781 |
|
|
1,279 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income |
|
|
|
|
11,953 |
|
|
9,240 |
|
|
44,299 |
|
|
33,760 |
|
|
Less: Earnings allocated to participating
securities |
|
(122 |
) |
|
(74 |
) |
|
(396 |
) |
|
(263 |
) |
|
Total adjusted net income - Non-GAAP |
|
$ |
11,831 |
|
$ |
9,166 |
|
$ |
43,903 |
|
$ |
33,497 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares - Basic |
|
|
|
45,002 |
|
|
37,865 |
|
|
42,912 |
|
|
37,843 |
|
|
Weighted average shares - Diluted |
|
|
45,257 |
|
|
38,048 |
|
|
43,114 |
|
|
37,993 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share - Non-GAAP |
|
$ |
0.26 |
|
$ |
0.24 |
|
$ |
1.02 |
|
$ |
0.89 |
|
|
Diluted earnings per share - Non-GAAP |
|
$ |
0.26 |
|
$ |
0.24 |
|
$ |
1.02 |
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
Supplemental Information - Non-GAAP Financial
Measures |
(Unaudited) |
|
|
|
|
For the Twelve Months Ended, |
|
|
|
|
Dec 31, |
Dec 31, |
(Dollars
in thousands) |
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON
EQUITY |
|
|
|
Net
income - GAAP |
|
|
|
$ |
41,518 |
|
$ |
32,481 |
|
|
|
|
|
|
|
Total
average common stockholders' equity - GAAP |
|
|
$ |
474,540 |
|
$ |
392,221 |
|
Less: Average
goodwill |
|
|
|
|
130,689 |
|
|
109,974 |
|
Less:
Average other identifiable intangible assets |
|
|
|
3,225 |
|
|
1,759 |
|
Total average tangible common stockholders' equity -
Non-GAAP |
|
$ |
340,626 |
|
$ |
280,488 |
|
|
|
|
|
|
|
Return on average common stockholders' equity - GAAP |
|
|
|
8.75 |
% |
|
8.28 |
% |
|
|
|
|
|
|
Return on average tangible common stockholders' equity -
Non-GAAP |
|
|
12.19 |
% |
|
11.58 |
% |
|
|
|
|
|
|
CALCULATION OF
EFFICIENCY RATIO |
|
|
|
|
|
Total non-interest
expense |
|
|
|
$ |
99,917 |
|
$ |
87,211 |
|
Amortization of core
deposit intangibles |
|
|
|
|
(734 |
) |
|
(415 |
) |
Other real
estate owned and other repossessed asset expense |
|
|
|
(116 |
) |
|
(181 |
) |
Long-term debt
prepayment fee |
|
|
|
|
- |
|
|
(2,407 |
) |
Merger related
expenses |
|
|
|
|
(4,103 |
) |
|
(1,152 |
) |
Provision
for unfunded lending commitments |
|
|
|
|
(438 |
) |
|
(864 |
) |
Non-interest expense, as adjusted |
|
|
|
$ |
94,526 |
|
$ |
82,192 |
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
145,649 |
|
$ |
116,640 |
|
Non-interest income |
|
|
|
|
21,330 |
|
|
21,161 |
|
Total
revenue |
|
|
|
|
166,979 |
|
|
137,801 |
|
Tax-equivalent adjustment on municipal securities |
|
|
|
962 |
|
|
857 |
|
Gain on debt
extinguishment |
|
|
|
|
- |
|
|
(1,830 |
) |
Gain on sale of
investment securities |
|
|
|
|
(370 |
) |
|
(241 |
) |
Total revenue, as adjusted |
|
|
|
$ |
167,571 |
|
$ |
136,587 |
|
|
|
|
|
|
|
Efficiency ratio - Non-GAAP |
|
|
|
|
56.41 |
% |
|
60.18 |
% |
Thomas J. Shara
President & CEO
Joseph F. Hurley
EVP & CFO
973-697-2000
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