Lakeland Bancorp, Inc. (NASDAQ:LBAI) (the “Company”), the parent
company of Lakeland Bank (“Lakeland”), reported net income of $12.3
million for the three months ended March 31, 2017 compared to $8.1
million for the same period in 2016. For the three months
ended March 31, 2017, diluted earnings per share (“EPS”) of $0.26
increased over $0.20 for the same period in 2016. Core EPS,
which excludes $1.7 million of pre-tax merger related expenses in
the first quarter of 2016(1), increased 18% from $0.22 for the
three months ended March 31, 2016 to $0.26 this quarter. For
the first quarter of 2017, return on average assets was 0.97%,
return on average common equity was 9.02%, and return on average
tangible common equity was 12.04%.
Thomas J. Shara, Lakeland Bancorp’s President
and CEO, commented, “We are pleased to report another strong
quarter highlighted by robust loan and core deposit growth. Our net
interest margin increased this quarter as a result of fully
deploying the excess liquidity from our subordinated debt and
equity offerings in late 2016.”
With respect to the Company’s markets, Mr. Shara
added, “We are excited to expand our franchise into New York State
with our opening of the Highland Mills branch in the Hudson Valley.
This expansion compliments the two bank acquisitions we completed
in 2016.”
The following represents performance highlights
and significant events for the first quarter of 2017:
- Commercial loans grew $106.3 million, or 3.4%, since December
31, 2016, resulting in total loan growth of $100.8 million to $3.97
billion at March 31, 2017.
- Deposits increased $200.6 million, or 4.9%, since December 31,
2016, to $4.29 billion primarily due to growth in consumer
accounts.
- The Company sold an investment security realizing a gain of
$2.5 million. The Company elected to prepay $54.0 million in
higher rate long-term borrowings and incurred a $2.8 million
prepayment penalty.
- Net interest margin (“NIM”) rose to 3.33% compared to 3.27% in
the prior quarter and 3.48% for the first quarter of 2016.
The increase from the fourth quarter of 2016 was primarily due to
the deployment of cash into higher yielding investments and loans
as well as the paydown of higher rate long-term debt.
- The efficiency ratio of 56.36% for the first quarter of 2017
compares favorably to 60.48% for the same period in
2016.
- On April 25, 2017, the Company increased its quarterly cash
dividend 5.3% to $0.10 per share to be paid on May 16, 2017 to
stockholders of record as of May 5, 2017.
- The Company adopted Accounting Standards Update No. 2016-09
related to the accounting of stock compensation and the Company
recorded a $0.6 million tax benefit associated with the vesting and
exercise of equity awards during the quarter.
- The Company opened its first branch outside of New Jersey to
enhance its presence in the Hudson Valley market in New York
State.
EarningsNet
income for the first quarter of 2017 was $12.3 million compared to
$8.1 million for the first quarter of 2016. Excluding merger
related expenses, net income for the first quarter of 2016 was $9.3
million.
Net Interest
IncomeNet interest income for the first quarter
of 2017 was $39.3 million, as compared to $33.9 million for the
same period in 2016. Total interest income increased due to
the organic growth of earning assets as well as the merger with
Harmony Bank in July 2016 (“the merger”). Total interest
expense increased $1.8 million, primarily due to additional
deposits from the merger, organic deposit growth and the impact of
the subordinated debt offering in September 2016.
The yield on interest earning assets for the
first quarter of 2017 was 3.78%, as compared to 3.86% reported in
the first quarter of 2016, due to a change in the mix of
interest-earning assets. The cost of interest-bearing
liabilities for the first quarter of 2017 was 0.60% compared to
0.49% for the first quarter of 2016, reflecting the additional
interest expense from the subordinated debt offering in September
2016 and the higher cost of deposits.
Noninterest
IncomeNoninterest income totaled $8.1 million for
the first quarter of 2017 compared to $4.9 million for the same
period in 2016. This increase was primarily due to an
additional $2.2 million gain on sale of investment securities, $0.4
million gain on sale of a former branch, $0.3 million additional
gain on sale of other real estate owned, and $0.3 million in higher
loan swap fee income.
Noninterest
ExpenseNoninterest expense totaled $28.5 million
for the first quarter of 2017 compared to $25.4 million for the
same period in 2016. This quarter, the Company incurred
long-term debt prepayment penalties of $2.8 million, and in 2016,
the Company incurred $1.7 million in merger related expenses.
Salary and employee benefit expenses increased $1.3 million for the
three months ended March 31, 2017 compared to the prior year period
due primarily to additional staff from the merger and increases in
employee salary and benefit costs. Other expenses increased
$0.4 million primarily due to higher correspondent, legal,
collection, courier and consulting expenses.
Financial
ConditionIn the first quarter of 2017, total
assets increased $154.7 million, or 3.0%, to $5.25 billion as total
loans and leases grew $100.8 million to $3.97 billion and
investment securities increased $78.4 million to $847.8
million. On the funding side, total deposits grew $200.6
million to $4.29 billion while other borrowings declined $87.4
million to $173.4 million.
Asset
QualityAt March 31, 2017, non-performing assets
totaled $18.5 million (0.35% of total assets), compared to $21.5
million (0.42% of total assets) at December 31, 2016.
Non-performing loans and leases as a percent of total loans
and leases decreased to 0.45% at March 31, 2017 from 0.53% at
December 31, 2016. The allowance for loan and lease losses
totaled $31.6 million at March 31, 2017, and represented 0.79% of
total loans and leases. During the first quarter of 2017, the
Company had net charge-offs of $0.9 million (annualized 0.09% of
average loans) compared to $1.4 million (annualized 0.17% of
average loans) for the first quarter of 2016. The provision
for loan and lease losses for the first quarter of 2017 was $1.2
million compared to $1.1 million for the first quarter of 2016.
CapitalAt
March 31, 2017, stockholders' equity was $557.6 million compared to
$550.0 million at December 31, 2016. Book value per
common share was $11.78 compared to $11.65 at December 31, 2016.
Tangible book value per common share was $8.84 compared to
$8.70 at December 31, 2016.
Forward-Looking StatementsThe
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. The
Company cautions that these forward-looking statements are
necessarily speculative and speak only as of the date made, and are
subject to numerous assumptions, risks and uncertainties, all of
which may change over time. Actual results could differ
materially from such forward-looking statements. The
following factors, among others, could cause actual results to
differ materially and adversely from such forward-looking
statements: changes in the financial services industry and the U.S.
and global capital markets, changes in economic conditions
nationally, regionally and in the Company’s markets, the nature and
timing of actions of the Federal Reserve Board and other
regulators, the nature and timing of legislation affecting the
financial services industry, government intervention in the U.S.
financial system, changes in levels of market interest rates,
pricing pressures on loan and deposit products, credit risks of the
Company’s lending and leasing activities, customers’ acceptance of
the Company’s products and services, competition, and failure to
realize anticipated efficiencies and synergies from the Pascack
Community Bank and Harmony Bank acquisitions. Any statements
made by the Company that are not historical facts should be
considered to be forward-looking statements. The Company is
not obligated to update and does not undertake to update any of its
forward-looking statements made herein.
(1) Explanation of
Non-GAAP Financial MeasuresReported amounts are
presented in accordance with accounting principles generally
accepted in the United States of America ("GAAP"). This
press release also contains certain supplemental non-GAAP
information that the Company’s management uses in its analysis of
the Company’s financial results. Specifically, the Company
provides measures based on what it believes are its operating
earnings on a consistent basis, and excludes material non-routine
operating items which affect the GAAP reporting of results of
operations. The Company’s management believes that providing
this information to analysts and investors allows them to better
understand and evaluate the Company’s core financial results for
the periods in question.
The Company also provides measurements and
ratios based on tangible equity and tangible assets. These
measures are utilized by regulators and market analysts to evaluate
a company’s financial condition and, therefore, the Company’s
management believes that such information is useful to
investors.
The Company also uses an efficiency ratio that
is a non-GAAP financial measure. The ratio that the Company
uses excludes amortization of core deposit intangibles, provision
for unfunded lending commitments and, where applicable, long-term
debt prepayment fees and merger related expenses. Income for
the non-GAAP ratio is increased by the favorable effect of
tax-exempt income and excludes gains and losses from the sale of
investment securities and gain on debt extinguishment, which can
vary from period to period. The Company uses this ratio
because it believes the ratio provides a 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. See
accompanying non-GAAP tables.
About Lakeland BankLakeland
Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc.,
which has $5.2 billion in total assets. The Bank operates 52
New Jersey branch offices in Bergen, Essex, Morris, Ocean, Passaic,
Somerset, Sussex, and Union counties and one branch in Highland
Mills, New York; six New Jersey regional commercial lending centers
in Bernardsville, Jackson, Montville, Newton, Teaneck and Waldwick;
and one in New York to serve the Hudson Valley region.
Lakeland also has a commercial loan production office serving
Middlesex and Monmouth counties in New Jersey. Lakeland Bank offers
an extensive suite of financial products and services for
businesses and consumers. Visit LakelandBank.com for more
information.
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Lakeland Bancorp,
Inc. |
Consolidated Statements of
Operations |
(Unaudited) |
|
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|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
|
Loans and fees |
|
|
|
|
$ |
40,411 |
$ |
34,121 |
Federal funds sold and interest-bearing deposits with
banks |
|
|
276 |
|
75 |
Taxable investment securities and other |
|
|
|
3,599 |
|
2,962 |
Tax exempt investment securities |
|
|
|
|
510 |
|
413 |
|
TOTAL INTEREST INCOME |
|
|
|
|
44,796 |
|
37,571 |
INTEREST EXPENSE |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
3,334 |
|
2,205 |
Federal funds purchased and securities sold under agreements to
repurchase |
|
|
10 |
|
38 |
Other borrowings |
|
|
|
|
|
2,129 |
|
1,478 |
|
TOTAL INTEREST EXPENSE |
|
|
|
5,473 |
|
3,721 |
NET INTEREST INCOME |
|
|
|
|
39,323 |
|
33,850 |
Provision for loan and lease losses |
|
|
|
|
1,218 |
|
1,075 |
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE
LOSSES |
|
38,105 |
|
32,775 |
NONINTEREST INCOME |
|
|
|
|
|
Service charges on deposit accounts |
|
|
|
|
2,455 |
|
2,442 |
Commissions and fees |
|
|
|
|
|
1,156 |
|
979 |
Gain on sale of investment securities |
|
|
|
|
2,539 |
|
370 |
Gain on sale of loans |
|
|
|
|
|
398 |
|
420 |
Income on bank owned life insurance |
|
|
|
|
426 |
|
408 |
Other
income |
|
|
|
|
|
|
1,120 |
|
248 |
|
TOTAL
NONINTEREST INCOME |
|
|
|
|
|
8,094 |
|
4,867 |
NONINTEREST EXPENSE |
|
|
|
|
|
Salaries and employee benefit expense |
|
|
|
|
15,417 |
|
14,085 |
Net occupancy expense |
|
|
|
|
|
2,836 |
|
2,688 |
Furniture and equipment expense |
|
|
|
|
2,097 |
|
1,946 |
Stationary, supplies and postage expense |
|
|
|
443 |
|
443 |
Marketing expense |
|
|
|
|
|
401 |
|
309 |
FDIC insurance expense |
|
|
|
|
|
318 |
|
590 |
ATM and debit card expense |
|
|
|
|
441 |
|
346 |
Telecommunications expense |
|
|
|
|
404 |
|
424 |
Data processing expense |
|
|
|
|
|
553 |
|
520 |
Other real estate owned and other repossessed assets
expense |
|
|
37 |
|
39 |
Long-term debt prepayment fee |
|
|
|
|
2,828 |
|
- |
Merger related expenses |
|
|
|
|
|
- |
|
1,721 |
Core deposit intangible amortization |
|
|
|
|
195 |
|
167 |
Other expenses |
|
|
|
|
|
|
2,500 |
|
2,146 |
|
TOTAL NONINTEREST EXPENSE |
|
|
28,470 |
|
25,424 |
INCOME BEFORE PROVISION FOR INCOME
TAXES |
|
|
|
|
|
|
17,729 |
|
12,218 |
Provision for income taxes |
|
|
|
|
|
|
5,417 |
|
4,110 |
NET INCOME |
|
|
|
|
|
$ |
12,312 |
$ |
8,108 |
EARNINGS PER COMMON SHARE |
|
|
|
|
Basic |
|
|
|
|
|
$ |
0.26 |
$ |
0.20 |
Diluted |
|
|
|
|
|
$ |
0.26 |
$ |
0.20 |
DIVIDENDS PER COMMON SHARE |
|
|
|
|
|
$ |
0.095 |
$ |
0.085 |
Lakeland Bancorp, Inc. |
Consolidated Balance Sheets |
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March 31, |
|
December 31, |
(Dollars in thousands) |
|
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|
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2017 |
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2016 |
|
|
|
|
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|
(Unaudited) |
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ASSETS |
|
|
|
|
|
|
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Cash and due from banks |
|
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|
$ |
141,757 |
|
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$ |
169,149 |
|
Federal funds sold and interest-bearing deposits due from
banks |
|
|
|
|
|
8,649 |
|
|
|
6,652 |
|
Total cash and cash equivalents |
|
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|
|
|
150,406 |
|
|
|
175,801 |
|
|
|
|
|
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Investment securities available for sale, at fair value |
|
|
687,352 |
|
|
|
606,704 |
|
Investment securities held to maturity; fair value of $148,083
in 2017 |
|
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|
and $146,990 in 2016 |
|
|
|
|
148,409 |
|
|
|
147,614 |
|
Federal Home Loan Bank and other membership stocks, at
cost |
|
12,072 |
|
|
|
15,099 |
|
Loans held
for sale |
|
|
|
|
767 |
|
|
|
1,742 |
|
Loans and
leases: |
|
|
|
|
|
|
Commercial, real estate |
|
|
|
|
2,881,972 |
|
|
|
2,767,710 |
|
Commercial, industrial and other |
|
|
|
342,264 |
|
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|
350,228 |
|
Leases |
|
|
|
|
|
67,488 |
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|
67,016 |
|
Residential mortgages |
|
|
|
|
344,890 |
|
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|
349,581 |
|
Consumer and home equity |
|
|
|
338,104 |
|
|
|
339,360 |
|
Total loans and leases |
|
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|
3,974,718 |
|
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|
3,873,895 |
|
Net deferred costs (fees) |
|
|
|
|
(3,564 |
) |
|
|
(3,297 |
) |
Allowance for loan and lease losses |
|
|
|
(31,590 |
) |
|
|
(31,245 |
) |
Net loans and
leases |
|
|
|
|
|
3,939,564 |
|
|
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3,839,353 |
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Premises and equipment, net |
|
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|
51,286 |
|
|
|
52,236 |
|
Accrued interest receivable |
|
|
|
13,345 |
|
|
|
12,557 |
|
Goodwill |
|
|
|
|
|
135,747 |
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|
|
135,747 |
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Other identifiable intangible assets |
|
|
|
3,149 |
|
|
|
3,344 |
|
Bank owned life insurance |
|
|
|
|
72,823 |
|
|
|
72,384 |
|
Other
assets |
|
|
|
|
|
32,895 |
|
|
|
30,550 |
|
TOTAL
ASSETS |
|
|
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|
$ |
5,247,815 |
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|
$ |
5,093,131 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
|
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|
LIABILITIES |
|
|
|
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Deposits: |
|
|
|
|
|
|
|
Noninterest-bearing |
|
|
|
$ |
924,581 |
|
|
$ |
927,270 |
|
Savings and interest-bearing transaction accounts |
|
|
2,809,705 |
|
|
|
2,620,657 |
|
Time deposits
through $250,000 |
|
|
|
|
|
414,123 |
|
|
|
404,680 |
|
Time deposits over $250,000 |
|
|
|
|
|
144,984 |
|
|
|
140,228 |
|
Total deposits |
|
|
|
|
|
4,293,393 |
|
|
|
4,092,835 |
|
Federal funds purchased and securities sold under agreements to
repurchase |
|
84,850 |
|
|
|
56,354 |
|
Other borrowings |
|
|
|
|
173,425 |
|
|
|
260,866 |
|
Subordinated debentures |
|
|
|
|
104,813 |
|
|
|
104,784 |
|
Other
liabilities |
|
|
|
|
|
33,692 |
|
|
|
28,248 |
|
TOTAL LIABILITIES |
|
|
|
|
4,690,173 |
|
|
|
4,543,087 |
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STOCKHOLDERS' EQUITY |
|
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Common stock, no par value; authorized 70,000,000
shares; |
|
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issued
47,350,165 shares at March 31, 2017 |
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and 47,222,914
shares at December 31, 2016 |
|
|
|
|
|
511,575 |
|
|
|
510,861 |
|
Retained earnings |
|
|
|
|
46,375 |
|
|
|
38,590 |
|
Accumulated other comprehensive (loss) gain |
|
|
|
|
(308 |
) |
|
|
593 |
|
TOTAL STOCKHOLDERS' EQUITY |
|
|
|
|
|
557,642 |
|
|
|
550,044 |
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
$ |
5,247,815 |
|
|
$ |
5,093,131 |
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Lakeland Bancorp, Inc. |
|
Financial Highlights |
|
(Unaudited) |
|
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For the Quarter Ended |
|
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|
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
|
(Dollars in thousands, except per share data) |
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
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INCOME STATEMENT |
|
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|
Net
interest income |
|
$ |
39,323 |
|
$ |
38,179 |
|
$ |
38,518 |
|
$ |
35,102 |
|
$ |
33,850 |
|
|
Provision
for loan and lease losses |
|
|
(1,218 |
) |
|
(375 |
) |
|
(1,763 |
) |
|
(1,010 |
) |
|
(1,075 |
) |
|
Other
noninterest income |
|
|
5,157 |
|
|
4,636 |
|
|
5,664 |
|
|
4,460 |
|
|
4,077 |
|
|
Gain on
investment securities |
|
|
2,539 |
|
|
- |
|
|
- |
|
|
- |
|
|
370 |
|
|
Gain on
sale of loans |
|
|
398 |
|
|
525 |
|
|
753 |
|
|
425 |
|
|
420 |
|
|
Long-term
debt prepayment fee |
|
|
(2,828 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Merger
related expenses |
|
|
- |
|
|
- |
|
|
(1,697 |
) |
|
(685 |
) |
|
(1,721 |
) |
|
Other
noninterest expense |
|
|
(25,642 |
) |
|
(24,772 |
) |
|
(24,309 |
) |
|
(23,030 |
) |
|
(23,703 |
) |
|
Pretax income |
|
|
17,729 |
|
|
18,193 |
|
|
17,166 |
|
|
15,262 |
|
|
12,218 |
|
|
Provision
for income taxes |
|
|
(5,417 |
) |
|
(6,240 |
) |
|
(5,839 |
) |
|
(5,132 |
) |
|
(4,110 |
) |
|
Net
income |
|
$ |
12,312 |
|
$ |
11,953 |
|
$ |
11,327 |
|
$ |
10,130 |
|
$ |
8,108 |
|
|
|
|
|
|
|
|
|
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|
Basic
earnings per common share |
|
$ |
0.26 |
|
$ |
0.26 |
|
$ |
0.25 |
|
$ |
0.24 |
|
$ |
0.20 |
|
|
Diluted
earnings per common share |
|
$ |
0.26 |
|
$ |
0.26 |
|
$ |
0.25 |
|
$ |
0.24 |
|
$ |
0.20 |
|
|
Dividends
per common share |
|
$ |
0.095 |
|
$ |
0.095 |
|
$ |
0.095 |
|
$ |
0.095 |
|
$ |
0.085 |
|
|
Dividends
paid |
|
$ |
4,527 |
|
$ |
4,265 |
|
$ |
4,261 |
|
$ |
3,955 |
|
$ |
3,525 |
|
|
Weighted
average shares - basic |
|
|
47,354 |
|
|
45,002 |
|
|
44,439 |
|
|
41,238 |
|
|
40,931 |
|
|
Weighted
average shares - diluted |
|
|
47,623 |
|
|
45,257 |
|
|
44,659 |
|
|
41,406 |
|
|
41,091 |
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING RATIOS |
|
|
|
|
|
|
|
Annualized
return on average assets |
|
|
0.97 |
% |
|
0.95 |
% |
|
0.94 |
% |
|
0.93 |
% |
|
0.77 |
% |
|
Annualized
return on average common equity |
|
|
9.02 |
% |
|
9.31 |
% |
|
9.10 |
% |
|
9.04 |
% |
|
7.40 |
% |
|
Annualized
return on average tangible common equity (1) |
|
12.04 |
% |
|
12.83 |
% |
|
12.68 |
% |
|
12.63 |
% |
|
10.40 |
% |
|
Annualized
net interest margin |
|
|
3.33 |
% |
|
3.27 |
% |
|
3.45 |
% |
|
3.47 |
% |
|
3.48 |
% |
|
Efficiency
ratio (1) |
|
|
56.36 |
% |
|
56.35 |
% |
|
53.35 |
% |
|
56.29 |
% |
|
60.48 |
% |
|
Common
stockholders' equity to total assets |
|
|
10.63 |
% |
|
10.80 |
% |
|
10.17 |
% |
|
10.18 |
% |
|
10.15 |
% |
|
Tangible
common equity to tangible assets (1) |
|
|
8.20 |
% |
|
8.30 |
% |
|
7.53 |
% |
|
7.53 |
% |
|
7.45 |
% |
|
Tier 1
risk-based ratio |
|
|
10.73 |
% |
|
10.85 |
% |
|
9.70 |
% |
|
9.73 |
% |
|
9.93 |
% |
|
Total
risk-based ratio |
|
|
13.29 |
% |
|
13.48 |
% |
|
12.40 |
% |
|
10.65 |
% |
|
10.87 |
% |
|
Tier 1
leverage ratio |
|
|
8.97 |
% |
|
9.07 |
% |
|
8.26 |
% |
|
8.24 |
% |
|
8.33 |
% |
|
Common
equity tier 1 capital ratio |
|
|
10.01 |
% |
|
10.11 |
% |
|
8.94 |
% |
|
8.90 |
% |
|
9.06 |
% |
|
Book value
per common share |
|
$ |
11.78 |
|
$ |
11.65 |
|
$ |
11.22 |
|
$ |
11.03 |
|
$ |
10.84 |
|
|
Tangible
book value per common share (1) |
|
$ |
8.84 |
|
$ |
8.70 |
|
$ |
8.07 |
|
$ |
7.93 |
|
$ |
7.72 |
|
|
|
|
|
|
|
|
|
|
|
(1) See
Supplemental Information - Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
|
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
(Dollars in thousands) |
|
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET DATA AT PERIOD-END |
|
|
|
|
Loans and
leases |
|
|
$ |
3,974,718 |
|
$ |
3,873,895 |
|
$ |
3,794,519 |
|
$ |
3,454,304 |
|
$ |
3,368,961 |
|
Allowance
for loan and lease losses |
|
(31,590 |
) |
|
(31,245 |
) |
|
(31,369 |
) |
|
(30,667 |
) |
|
(30,553 |
) |
Investment
securities |
|
|
|
847,833 |
|
|
769,417 |
|
|
638,091 |
|
|
602,408 |
|
|
573,136 |
|
Total assets |
|
|
|
|
5,247,815 |
|
|
5,093,131 |
|
|
4,904,291 |
|
|
4,467,860 |
|
|
4,404,233 |
|
Total
deposits |
|
|
|
4,293,393 |
|
|
4,092,835 |
|
|
3,941,742 |
|
|
3,537,331 |
|
|
3,462,636 |
|
Short-term
borrowings |
|
|
|
84,850 |
|
|
56,354 |
|
|
29,699 |
|
|
123,662 |
|
|
128,841 |
|
Other
borrowings |
|
|
|
278,238 |
|
|
365,650 |
|
|
398,671 |
|
|
326,009 |
|
|
341,269 |
|
Stockholders' equity |
|
|
|
557,642 |
|
|
550,044 |
|
|
498,722 |
|
|
454,934 |
|
|
446,875 |
|
|
|
|
|
|
|
|
|
|
LOANS AND
LEASES |
|
|
|
|
|
|
|
Commercial,
real estate |
|
|
$ |
2,881,972 |
|
$ |
2,767,710 |
|
$ |
2,675,154 |
|
$ |
2,353,125 |
|
$ |
2,243,335 |
|
Commercial,
industrial and other |
|
|
342,264 |
|
|
350,228 |
|
|
339,291 |
|
|
313,062 |
|
|
332,097 |
|
Leases |
|
|
|
|
67,488 |
|
|
67,016 |
|
|
65,659 |
|
|
63,338 |
|
|
60,925 |
|
Residential
mortgages |
|
|
|
344,890 |
|
|
349,581 |
|
|
370,766 |
|
|
383,823 |
|
|
392,387 |
|
Consumer
and home equity |
|
|
338,104 |
|
|
339,360 |
|
|
343,649 |
|
|
340,956 |
|
|
340,217 |
|
Total loans and leases |
|
|
$ |
3,974,718 |
|
$ |
3,873,895 |
|
$ |
3,794,519 |
|
$ |
3,454,304 |
|
$ |
3,368,961 |
|
|
|
|
|
|
|
|
|
|
DEPOSITS |
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
|
$ |
924,581 |
|
$ |
927,270 |
|
$ |
931,385 |
|
$ |
824,077 |
|
$ |
774,487 |
|
Savings and
interest-bearing transaction accounts |
|
2,809,705 |
|
|
2,620,657 |
|
|
2,471,097 |
|
|
2,235,918 |
|
|
2,204,356 |
|
Time
deposits |
|
|
|
559,107 |
|
|
544,908 |
|
|
539,260 |
|
|
477,336 |
|
|
483,793 |
|
Total deposits |
|
|
$ |
4,293,393 |
|
$ |
4,092,835 |
|
$ |
3,941,742 |
|
$ |
3,537,331 |
|
$ |
3,462,636 |
|
|
|
|
|
|
|
|
|
|
SELECTED AVERAGE BALANCE SHEET DATA |
|
|
|
|
Loans and
leases |
|
|
$ |
3,905,216 |
|
$ |
3,806,588 |
|
$ |
3,743,434 |
|
$ |
3,412,503 |
|
$ |
3,284,339 |
|
Investment
securities |
|
|
|
790,046 |
|
|
683,986 |
|
|
606,779 |
|
|
575,206 |
|
|
570,581 |
|
Interest-earning assets |
|
|
|
4,825,855 |
|
|
4,680,156 |
|
|
4,467,524 |
|
|
4,094,575 |
|
|
3,933,160 |
|
Total
assets |
|
|
5,153,893 |
|
|
5,015,439 |
|
|
4,805,381 |
|
|
4,403,588 |
|
|
4,248,468 |
|
Noninterest-bearing demand deposits |
|
|
921,770 |
|
|
951,418 |
|
|
895,851 |
|
|
801,488 |
|
|
760,198 |
|
Savings
deposits |
|
|
|
490,777 |
|
|
490,556 |
|
|
487,918 |
|
|
485,580 |
|
|
475,870 |
|
Interest-bearing transaction accounts |
|
|
2,241,954 |
|
|
2,072,154 |
|
|
1,988,405 |
|
|
1,775,129 |
|
|
1,682,580 |
|
Time
deposits |
|
|
|
555,270 |
|
|
539,870 |
|
|
533,224 |
|
|
487,169 |
|
|
465,024 |
|
Total
deposits |
|
|
4,209,771 |
|
|
4,053,998 |
|
|
3,905,398 |
|
|
3,549,366 |
|
|
3,383,672 |
|
Short-term
borrowings |
|
|
|
28,358 |
|
|
27,538 |
|
|
35,608 |
|
|
31,591 |
|
|
50,335 |
|
Other
borrowings |
|
|
|
332,750 |
|
|
392,789 |
|
|
339,204 |
|
|
346,347 |
|
|
349,088 |
|
Total
interest-bearing liabilities |
|
|
3,649,109 |
|
|
3,522,907 |
|
|
3,384,359 |
|
|
3,125,815 |
|
|
3,022,897 |
|
Stockholders' equity |
|
|
|
553,782 |
|
|
510,562 |
|
|
495,343 |
|
|
450,806 |
|
|
440,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
|
Financial Highlights |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
|
|
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
|
(Dollars in thousands) |
|
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT
BASIS) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Loans and
leases |
|
|
|
4.20 |
% |
|
4.19 |
% |
|
4.23 |
% |
|
4.22 |
% |
|
4.18 |
% |
|
Taxable
investment securities and other |
|
|
2.13 |
% |
|
2.00 |
% |
|
2.06 |
% |
|
2.18 |
% |
|
2.39 |
% |
|
Tax-exempt
securities |
|
|
|
2.78 |
% |
|
2.75 |
% |
|
3.01 |
% |
|
3.15 |
% |
|
3.40 |
% |
|
Federal
funds sold and interest-bearing cash accounts |
|
0.85 |
% |
|
0.48 |
% |
|
0.48 |
% |
|
0.46 |
% |
|
0.38 |
% |
|
Total interest-earning assets |
|
|
3.78 |
% |
|
3.74 |
% |
|
3.85 |
% |
|
3.85 |
% |
|
3.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Savings
accounts |
|
|
|
0.06 |
% |
|
0.06 |
% |
|
0.06 |
% |
|
0.05 |
% |
|
0.08 |
% |
|
Interest-bearing transaction accounts |
|
|
0.38 |
% |
|
0.35 |
% |
|
0.34 |
% |
|
0.31 |
% |
|
0.30 |
% |
|
Time
deposits |
|
|
|
0.83 |
% |
|
0.84 |
% |
|
0.81 |
% |
|
0.79 |
% |
|
0.74 |
% |
|
Borrowings |
|
|
|
|
2.37 |
% |
|
2.37 |
% |
|
1.71 |
% |
|
1.62 |
% |
|
1.52 |
% |
|
Total interest-bearing liabilities |
|
|
0.60 |
% |
|
0.62 |
% |
|
0.53 |
% |
|
0.50 |
% |
|
0.49 |
% |
|
Net
interest spread (taxable equivalent basis) |
|
3.18 |
% |
|
3.12 |
% |
|
3.32 |
% |
|
3.35 |
% |
|
3.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
Annualized
net interest margin (taxable equivalent basis) |
|
3.33 |
% |
|
3.27 |
% |
|
3.45 |
% |
|
3.47 |
% |
|
3.48 |
% |
|
Annualized
cost of deposits |
|
|
0.32 |
% |
|
0.30 |
% |
|
0.29 |
% |
|
0.27 |
% |
|
0.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY DATA |
|
|
|
|
|
|
|
ALLOWANCE
FOR LOAN AND LEASE LOSSES |
|
|
|
|
|
|
Balance at
beginning of period |
|
$ |
31,245 |
|
$ |
31,369 |
|
$ |
30,667 |
|
$ |
30,553 |
|
$ |
30,874 |
|
|
Provision
for loan and lease losses |
|
|
1,218 |
|
|
375 |
|
|
1,763 |
|
|
1,010 |
|
|
1,075 |
|
|
Charge-offs |
|
|
|
|
(1,360 |
) |
|
(795 |
) |
|
(1,273 |
) |
|
(1,045 |
) |
|
(1,543 |
) |
|
Recoveries |
|
|
|
|
487 |
|
|
296 |
|
|
212 |
|
|
149 |
|
|
147 |
|
|
Balance at end of period |
|
|
$ |
31,590 |
|
$ |
31,245 |
|
$ |
31,369 |
|
$ |
30,667 |
|
$ |
30,553 |
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN
AND LEASE CHARGE-OFFS (RECOVERIES) |
|
|
|
|
|
|
Commercial,
real estate |
|
|
$ |
595 |
|
$ |
(87 |
) |
$ |
(11 |
) |
$ |
113 |
|
$ |
81 |
|
|
Commercial,
industrial and other |
|
|
68 |
|
|
(96 |
) |
|
(30 |
) |
|
137 |
|
|
583 |
|
|
Leases |
|
|
|
|
39 |
|
|
42 |
|
|
40 |
|
|
183 |
|
|
69 |
|
|
Residential
mortgages |
|
|
|
141 |
|
|
231 |
|
|
385 |
|
|
213 |
|
|
89 |
|
|
Consumer
and home equity |
|
|
30 |
|
|
409 |
|
|
677 |
|
|
250 |
|
|
574 |
|
|
Net
charge-offs (recoveries) |
|
$ |
873 |
|
$ |
499 |
|
$ |
1,061 |
|
$ |
896 |
|
$ |
1,396 |
|
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
Commercial,
real estate |
|
|
$ |
10,443 |
|
$ |
11,885 |
|
$ |
13,068 |
|
$ |
12,554 |
|
$ |
11,943 |
|
|
Commercial,
industrial and other |
|
|
136 |
|
|
167 |
|
|
39 |
|
|
41 |
|
|
1,163 |
|
|
Leases |
|
|
|
|
179 |
|
|
153 |
|
|
78 |
|
|
159 |
|
|
282 |
|
|
Residential
mortgages |
|
|
|
4,715 |
|
|
6,048 |
|
|
7,264 |
|
|
8,865 |
|
|
8,330 |
|
|
Consumer
and home equity |
|
|
2,270 |
|
|
2,151 |
|
|
2,210 |
|
|
3,325 |
|
|
3,249 |
|
|
Total non-accrual loans and leases |
|
|
17,743 |
|
|
20,404 |
|
|
22,659 |
|
|
24,944 |
|
|
24,967 |
|
|
Property
acquired through foreclosure or repossession |
|
710 |
|
|
1,072 |
|
|
1,918 |
|
|
1,594 |
|
|
792 |
|
|
Total non-performing assets |
|
$ |
18,453 |
|
$ |
21,476 |
|
$ |
24,577 |
|
$ |
26,538 |
|
$ |
25,759 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans past
due 90 days or more and still accruing |
$ |
- |
|
$ |
10 |
|
$ |
10 |
|
$ |
42 |
|
$ |
101 |
|
|
Loans
restructured and still accruing |
|
$ |
11,553 |
|
$ |
8,802 |
|
$ |
9,251 |
|
$ |
9,509 |
|
$ |
10,545 |
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
allowance for loan and lease losses to total loans and leases |
|
|
|
|
0.79 |
% |
|
0.81 |
% |
|
0.83 |
% |
|
0.89 |
% |
|
0.91 |
% |
|
Total
non-accrual loans and leases to total loans and leases |
|
|
|
|
0.45 |
% |
|
0.53 |
% |
|
0.60 |
% |
|
0.72 |
% |
|
0.74 |
% |
|
Total
non-performing assets to total assets |
|
|
|
|
0.35 |
% |
|
0.42 |
% |
|
0.50 |
% |
|
0.59 |
% |
|
0.58 |
% |
|
Annualized net charge-offs (recoveries) to average loans and
leases |
|
|
|
|
0.09 |
% |
|
0.05 |
% |
|
0.11 |
% |
|
0.11 |
% |
|
0.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
Lakeland Bancorp, Inc. |
Supplemental Information - Non-GAAP Financial
Measures |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the Quarter Ended |
|
|
|
|
Mar 31, |
Dec 31, |
Sept 30, |
June 30, |
Mar 31, |
(Dollars in thousands, except per share amounts) |
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
CALCULATION OF TANGIBLE BOOK VALUE PER COMMON
SHARE |
|
|
|
|
|
Total
common stockholders' equity at end of period - GAAP |
$ |
557,642 |
|
$ |
550,044 |
|
$ |
498,722 |
|
$ |
454,934 |
|
$ |
446,875 |
|
Less:
Goodwill |
|
|
|
|
135,747 |
|
|
135,747 |
|
|
136,392 |
|
|
125,285 |
|
|
125,443 |
|
Less:
Other identifiable intangible assets |
|
|
3,149 |
|
|
3,344 |
|
|
3,545 |
|
|
2,728 |
|
|
2,891 |
|
Total tangible common stockholders' equity at
end of period - Non-GAAP |
$ |
418,746 |
|
$ |
410,953 |
|
$ |
358,785 |
|
$ |
326,921 |
|
$ |
318,541 |
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of period |
|
|
47,350 |
|
|
47,223 |
|
|
44,443 |
|
|
41,241 |
|
|
41,241 |
|
|
|
|
|
|
|
|
|
|
Book value per share - GAAP |
|
|
$ |
11.78 |
|
$ |
11.65 |
|
$ |
11.22 |
|
$ |
11.03 |
|
$ |
10.84 |
|
|
|
|
|
|
|
|
|
|
Tangible book value per share - Non-GAAP |
|
$ |
8.84 |
|
$ |
8.70 |
|
$ |
8.07 |
|
$ |
7.93 |
|
$ |
7.72 |
|
|
|
|
|
|
|
|
|
|
CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE
ASSETS |
|
|
|
|
|
Total tangible common stockholders' equity at end of
period - Non-GAAP |
$ |
418,746 |
|
$ |
410,953 |
|
$ |
358,785 |
|
$ |
326,921 |
|
$ |
318,541 |
|
|
|
|
|
|
|
|
|
|
Total
assets at end of period - GAAP |
|
$ |
5,247,815 |
|
$ |
5,093,131 |
|
$ |
4,904,291 |
|
$ |
4,467,860 |
|
$ |
4,404,233 |
|
Less:
Goodwill |
|
|
|
|
135,747 |
|
|
135,747 |
|
|
136,392 |
|
|
125,285 |
|
|
125,443 |
|
Less:
Other identifiable intangible assets |
|
|
3,149 |
|
|
3,344 |
|
|
3,545 |
|
|
2,728 |
|
|
2,891 |
|
Total tangible assets at end of period -
Non-GAAP |
$ |
5,108,919 |
|
$ |
4,954,040 |
|
$ |
4,764,354 |
|
$ |
4,339,847 |
|
$ |
4,275,899 |
|
|
|
|
|
|
|
|
|
|
Common equity to assets - GAAP |
|
|
|
10.63 |
% |
|
10.80 |
% |
|
10.17 |
% |
|
10.18 |
% |
|
10.15 |
% |
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets - Non-GAAP |
|
8.20 |
% |
|
8.30 |
% |
|
7.53 |
% |
|
7.53 |
% |
|
7.45 |
% |
|
|
|
|
|
|
|
|
|
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON
EQUITY |
|
|
|
|
|
Net
income - GAAP |
|
|
|
$ |
12,312 |
|
$ |
11,953 |
|
$ |
11,327 |
|
$ |
10,130 |
|
$ |
8,108 |
|
|
|
|
|
|
|
|
|
|
Total
average common stockholders' equity - GAAP |
$ |
553,782 |
|
$ |
510,562 |
|
$ |
495,343 |
|
$ |
450,806 |
|
$ |
440,823 |
|
Less:
Average goodwill |
|
|
|
135,747 |
|
|
136,385 |
|
|
136,392 |
|
|
125,424 |
|
|
124,423 |
|
Less:
Average other identifiable intangible assets |
|
3,276 |
|
|
3,459 |
|
|
3,685 |
|
|
2,828 |
|
|
2,920 |
|
Total average tangible common stockholders'
equity - Non-GAAP |
$ |
414,759 |
|
$ |
370,718 |
|
$ |
355,266 |
|
$ |
322,554 |
|
$ |
313,480 |
|
|
|
|
|
|
|
|
|
|
Return on average common stockholders' equity - GAAP |
|
9.02 |
% |
|
9.31 |
% |
|
9.10 |
% |
|
9.04 |
% |
|
7.40 |
% |
|
|
|
|
|
|
|
|
|
Return on average tangible common stockholders' equity -
Non-GAAP |
|
12.04 |
% |
|
12.83 |
% |
|
12.68 |
% |
|
12.63 |
% |
|
10.40 |
% |
|
|
|
|
|
|
|
|
|
CALCULATION OF EFFICIENCY RATIO |
|
|
|
|
|
|
Total
noninterest expense |
|
|
$ |
28,470 |
|
$ |
24,772 |
|
$ |
26,006 |
|
$ |
23,715 |
|
$ |
25,424 |
|
Amortization of core deposit intangibles |
|
|
(195 |
) |
|
(202 |
) |
|
(201 |
) |
|
(164 |
) |
|
(167 |
) |
Long-term
debt prepayment fee |
|
|
|
(2,828 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Merger
related expenses |
|
|
|
- |
|
|
- |
|
|
(1,697 |
) |
|
(685 |
) |
|
(1,721 |
) |
Provision for unfunded lending commitments |
|
|
- |
|
|
- |
|
|
- |
|
|
(230 |
) |
|
(208 |
) |
Noninterest expense, as adjusted |
|
|
$ |
25,447 |
|
$ |
24,570 |
|
$ |
24,108 |
|
$ |
22,636 |
|
$ |
23,328 |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
39,323 |
|
$ |
38,179 |
|
$ |
38,518 |
|
$ |
35,102 |
|
$ |
33,850 |
|
Total noninterest income |
|
|
|
8,094 |
|
|
5,161 |
|
|
6,417 |
|
|
4,885 |
|
|
4,867 |
|
Total
revenue |
|
|
|
|
47,417 |
|
|
43,340 |
|
|
44,935 |
|
|
39,987 |
|
|
38,717 |
|
Tax-equivalent adjustment on municipal securities |
|
275 |
|
|
262 |
|
|
253 |
|
|
225 |
|
|
222 |
|
Gains on sale of investment securities |
|
|
(2,539 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(370 |
) |
Total revenue, as adjusted |
|
|
$ |
45,153 |
|
$ |
43,602 |
|
$ |
45,188 |
|
$ |
40,212 |
|
$ |
38,569 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio - Non-GAAP |
|
|
|
56.36 |
% |
|
56.35 |
% |
|
53.35 |
% |
|
56.29 |
% |
|
60.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
|
|
|
|
Mar 31, |
Mar 31, |
|
|
|
(Dollars in thousands, except per share amounts) |
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF EARNINGS PER SHARE |
|
|
|
|
|
Net
income - GAAP |
|
|
|
$ |
12,312 |
|
$ |
8,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-ROUTINE
TRANSACTIONS, NET OF TAX |
|
|
|
|
|
Tax
deductible merger related expenses |
|
|
- |
|
|
819 |
|
|
|
|
Non-tax deductible merger related expenses |
|
|
- |
|
|
336 |
|
|
|
|
Net effect of non-routine transactions |
|
|
- |
|
|
1,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
available to common shareholders excluding non-routine
transactions |
|
12,312 |
|
|
9,263 |
|
|
|
|
Less: Earnings allocated to participating
securities |
|
(121 |
) |
|
(58 |
) |
|
|
|
|
|
|
|
$ |
12,191 |
|
$ |
9,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares - Basic |
|
|
|
47,354 |
|
|
40,931 |
|
|
|
|
Weighted
average shares - Diluted |
|
|
47,623 |
|
|
41,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share - GAAP |
|
|
$ |
0.26 |
|
$ |
0.20 |
|
|
|
|
Diluted earnings per share - GAAP |
|
$ |
0.26 |
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share, adjusted for non-routine transactions |
$ |
0.26 |
|
$ |
0.22 |
|
|
|
|
Diluted earnings per share, adjusted for non-routine
transactions (Core EPS) |
$ |
0.26 |
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thomas J. Shara
President & CEO
Thomas F. Splaine
EVP & CFO
973-697-2000
Lakeland Bancorp (NASDAQ:LBAI)
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