Lakeland Bancorp, Inc. (NASDAQ:
LBAI) (the
“Company”), the parent company of Lakeland Bank (“Lakeland”),
reported net income of $22.6 million and earnings per diluted share
("EPS") of $0.34 for the three months ended June 30, 2023 compared
to net income of $29.1 million and diluted EPS of $0.44 for the
three months ended June 30, 2022.
For the second quarter of 2023, annualized
return on average assets was 0.84%, annualized return on average
common equity was 8.03% and annualized return on average tangible
common equity was 10.67%.
Thomas Shara, Lakeland Bancorp’s President and
CEO, commented on the quarterly financial results, “We are quite
pleased with our continued steady loan growth of 3% year-to-date.
Overall, deposit balances remain fairly stable while customers
shift funds toward time deposits and higher yielding accounts.
Asset quality remains stellar and continues to improve with lower
nonperforming assets year-over-year which reduces our concern over
any significant near term credit degradation in our loan portfolio.
Management elected to maintain higher on-balance sheet liquidity
balances in response to the volatility in the banking industry this
quarter which had a slight negative impact on the net interest
margin.”
Regarding the Company’s pending merger with
Provident Financial Services, Inc., Mr. Shara added, “We continue
our interaction with the regulators and have been providing
additional information in order to further support our applications
for approval of the merger. The companies have made significant
progress in various integration initiatives through outstanding
teamwork from both banks. We look forward to receiving regulatory
approval and combining our two great franchises into the best bank
in New Jersey.”
Second Quarter 2023
Highlights
- Loan growth for
the second quarter of $148.7 million, or 1.9%, compared to the
linked first quarter of 2023 was attributable to expansion
primarily in the commercial loan portfolios and in the residential
mortgage portfolio.
- Second quarter
2023 results continue to be impacted by the increasing market rate
environment. Net interest margin for the second quarter of 2023
decreased 24 basis points to 2.83% from 3.07% in the prior quarter
and decreased 55 basis points from 3.38% in the second quarter of
2022. For more information, please see "Net Interest Margin and Net
Interest Income" below.
- Nonperforming
assets decreased 27% to $16.1 million for the second quarter of
2023 compared to $22.2 million in the second quarter of 2022
and $16.9 million in the linked quarter.
- In response to
the volatility in the banking industry beginning in the first
quarter of 2023 caused by high-profile bank failures, the Company
instituted measures to maintain its liquidity including proactively
reaching out to clients and maximizing our funding sources. These
measures included increasing our usage of our insured cash sweep
("ICS") product as a method to increase the level of customers'
deposit insurance. As of June 30 2023, the Bank had on-balance
sheet liquidity and funding capacity that represented 127% of
adjusted uninsured deposits.
Net Interest Margin and Net Interest
Income
Net interest margin for the second quarter and
the six months ended June 30, 2023 declined from previous periods
as a result of an increase in the cost of interest-bearing
liabilities partially offset by an increase in the yields on
interest-earning assets driven by the increase in market interest
rates. The increasing rate environment also caused a change in
customers' banking behaviors causing them to move funds from lower
yielding interest-bearing transaction and savings accounts to
higher yielding time deposits.
Net interest income for the second quarter of
2023 of $71.5 million decreased $8.8 million compared to the second
quarter of 2022. Net interest income for the six months ended June
30, 2023 of $147.5 million decreased $3.2 million from the six
months ended June 30, 2022.
Net interest margin for the second quarter of
2023 of 2.83% decreased 55 basis points compared to the second
quarter of 2022 and decreased 24 basis points compared to the first
quarter of 2023. Net interest margin for the six months ended June
30, 2023 decreased 25 basis points to 2.95% from the same period
last year.
The yield on interest-earning assets for the
second quarter of 2023 increased 110 basis points to 4.71% as
compared to 3.61% for the second quarter of 2022 and increased 15
basis points as compared to 4.56% for the first quarter of 2023.
For the six months ended June 30, 2023, the yield on average assets
was 4.63% compared to 3.42% for the same period last year.
The cost of interest-bearing liabilities for the
second quarter of 2023 was 2.59% compared to 0.40% for the second
quarter of 2022 and 2.11% for the first quarter of 2023. For the
six months ended June 30, 2023, the cost of interest-bearing
liabilities was 2.35% compared to 0.37% for the same period last
year.
Noninterest Income
For the second quarter of 2023, noninterest
income totaled $6.7 million, a decrease of $394,000 as
compared to the second quarter of 2022. Gains on sales of loans
decreased $486,000 compared to the second quarter of 2022 due
primarily to lower sale volume resulting from the higher interest
rate environment. Commissions and fees decreased $692,000 driven
primarily by a decrease in investment services income. Partially
offsetting these unfavorable variances was a decline in losses on
equity securities which totaled $135,000 in the second quarter of
2023 compared to losses of $364,000 in the second quarter of 2022.
Additionally, service charges on deposit accounts increased
$133,000 from the second quarter of 2022.
For the six months ended June 30, 2023,
noninterest income totaled $12.9 million, a decrease of $909,000 as
compared to the six months ended June 30, 2022. Gains on sales of
loans decreased $1.5 million compared to the six months ended June
30, 2022 due primarily to lower sale volume. Commissions and fees
decreased $873,000 driven primarily by a decrease in loan fees and
investment services income. Partially offsetting these unfavorable
variances were gains on equity securities of $13,000 in the six
months ended June 30, 2023 compared to losses of $849,000 in the
six months ended June 30, 2022. Service charges on deposit accounts
increased $296,000 from the six months ended June 30, 2022.
Noninterest Expense
Noninterest expense for the second quarter of
2023 of $47.0 million increased $1.9 million compared to
the second quarter of 2022. FDIC insurance expense increased
$955,000 due to an increase in the 2023 assessment rate related to
Lakeland's asset size exceeding $10 billion. Other operating
expenses in the second quarter of 2023 decreased $351,000 compared
to the same period in 2022 due primarily to decreased marketing
expense.
Noninterest expense for the six months ended
June 30, 2023 of $95.6 million increased $586,000 compared to the
six months ended June 30, 2022. The increase in noninterest expense
was primarily due to increases in compensation and employee
benefits which increased $3.0 million resulting primarily from
increased commissions, bonus expense, share based compensation
expense and normal merit increases. FDIC expense increased from the
first half of 2022 to the first half of 2023 for the same reasons
referred to above in the quarterly comparison. Offsetting these
increases was a decrease in merger-related expenses which totaled
$537,000 in the six months ended June 30, 2023 compared to $4.6
million during the six months ended June 20, 2022. Merger-related
expense during the current year was a result of the anticipated
merger with Provident Financial, while merger-related expense for
the first half of 2022 was due to the acquisition of 1st
Constitution Bancorp.
Income Tax Expense
The effective tax rate for the second quarter of
2023 was 22.7% compared to 24.7% for the second quarter of 2022.
The decreased effective tax rate for the second quarter of 2023 was
primarily a result of tax advantaged items increasing as a
percentage of pretax income. The effective tax rate for the six
months ended June 30, 2023 was 22.8% compared to 24.4% for the six
months ended June 30, 2022. The decreased effective tax rate for
the first half of 2023 was primarily for the same reasons discussed
in the quarterly comparison.
Financial Condition
At June 30, 2023, total assets were $10.90
billion, an increase of $114.1 million, compared to
December 31, 2022. As of June 30, 2023, total loans
increased $235.2 million to $8.10 billion while investment
securities decreased $98.8 million to $1.94 billion from
December 31, 2022. On the funding side, total deposits
decreased $122.8 million from December 31, 2022, to $8.44
billion at June 30, 2023, During the first six months of 2023,
transaction and savings accounts decreased $717.9 million while
time deposits increased $595.1 million, including an increase in
brokered deposits of $116.9 million. At June 30, 2023, total
loans as a percent of total deposits was 95.93%. As of June 30
2023, the Bank had on-balance sheet liquidity and funding capacity
that represented 127% of adjusted uninsured deposits. Federal funds
and securities sold under agreements to repurchase increased $209.9
million from December 31, 2022 to June 30, 2023, to fund deposit
runoff and to fund loan growth.
Asset Quality
At June 30, 2023, non-performing assets
totaled $16.1 million or 0.15% of total assets compared to
$22.2 million, or 0.21% of total assets at June 30, 2022.
Non-accrual loans as a percent of total loans was 0.20% at
June 30, 2023, compared to 0.30% at June 30, 2022. The
decrease in non-accrual loans resulted primarily from an
improvement in asset quality. The allowance for credit losses on
loans totaled $74.0 million, 0.91% of total loans, at June 30,
2023, compared to $68.8 million, 0.93% of total loans, at
June 30, 2022. In the second quarter of 2023, the Company had
net recoveries of $140,000 or 0% of average loans compared to
$141,000 or 0.01% of average loans on an annualized basis for the
same period in 2022.
The provision for credit losses for the second
quarter of 2023 was $1.9 million compared to $3.6 million in the
second quarter of 2022. The provision in the 2023 period is
comprised of a provision for credit losses on loans of $2.4
million, a benefit for credit losses on investment securities of
$171,000 and a benefit for off-balance-sheet exposures of
$304,000.
Capital
At June 30, 2023, stockholders' equity was
$1.13 billion compared to $1.11 billion at December 31, 2022,
a 2% increase, resulting primarily from net income, partially
offset by the payment of dividends. Lakeland Bank remains above
FDIC “well capitalized” standards, with a Tier 1 leverage ratio of
9.17% at June 30, 2023. The book value per common share
increased 3% to $17.40 at June 30, 2023 compared to $16.82 at
June 30, 2022. Tangible book value per common share was $13.10
and $12.47 at June 30, 2023 and 2022, respectively (see
"Supplemental Information - Non-GAAP Financial Measures" for a
reconciliation of non-GAAP financial measures, including tangible
book value). At June 30, 2023, the Company’s common equity to
assets ratio and tangible common equity to tangible assets ratio
were 10.38% and 8.02%, respectively, compared to 10.51% and 8.01%
at June 30, 2022. On July 25, 2023, the Company declared
a quarterly cash dividend of $0.145 per share to be paid on
August 16, 2023, to shareholders of record as of
August 7, 2023.
Forward-Looking Statements
The information disclosed in this document
includes various forward-looking statements that are made in
reliance upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. The words “anticipates,” “projects,”
“intends,” “estimates,” “expects,” “believes,” “plans,” “may,”
“will,” “should,” “could,” and other similar expressions are
intended to identify such forward-looking statements. The Company
cautions that these forward-looking statements are necessarily
speculative and speak only as of the date made, and are subject to
numerous assumptions, risks and uncertainties, all of which may
change over time. Actual results could differ materially from such
forward-looking statements. Accordingly, you should not place undue
reliance on forward-looking statements. In addition to the specific
risk factors disclosed in the Company's Annual Report on Form 10-K
for the year ended December 31, 2022, as updated by our subsequent
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, the
following factors, among others, could cause actual results to
differ materially and adversely from such forward-looking
statements: changes in levels of market interest rates, which may
affect demand for our products and the value of our financial
instruments; pricing pressures on loan and deposit products;
changes in the financial services industry and the U.S. and global
capital markets; inflation and other changes in economic conditions
nationally, regionally and in the Company’s markets; the nature and
timing of actions of the Federal Reserve Board and other
regulators; the nature and timing of legislation and regulation
affecting the financial services industry; government intervention
in the U.S. financial system; changes in federal and state tax
laws; credit risks of the Company’s lending and leasing activities;
the effects of the recent turmoil in the banking industry
(including the failures of three financial institutions);
successful implementation, deployment and upgrades of new and
existing technology, systems, services and products; customers’
acceptance of the Company’s products and services; competition;
failure to realize anticipated efficiencies and synergies from the
merger of 1st Constitution Bancorp into Lakeland Bancorp and the
merger of 1st Constitution Bank into Lakeland Bank; and expenses
related to our proposed merger with Provident Financial, unexpected
delays related to the merger, inability to obtain regulatory
approvals or satisfy other closing conditions required to complete
the merger, and failure to realize anticipated efficiencies and
synergies from the merger. Further, given its ongoing and dynamic
nature, it is difficult to predict the continuing effects that the
COVID-19 pandemic will have on our business and results of
operations. Any statements made by the Company that are not
historical facts should be considered to be forward-looking
statements. The Company is not obligated to update and does not
undertake to update any of its forward-looking statements made
herein.
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance
with U.S. generally accepted accounting principles ("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.
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.
Specifically, 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, 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, which can
vary from period to period. The Company uses this ratio because it
believes the ratio provides a relevant measure to compare the
operating performance period to period.
These disclosures should not be viewed as a
substitute for financial results determined in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance
measures which may be presented by other companies. See
accompanying "Supplemental Information - Non-GAAP Financial
Measures" and "Supplemental Information – Reconciliation of Net
Income" for a reconciliation of non-GAAP financial measures.
About Lakeland
Lakeland Bank is the wholly-owned subsidiary of
Lakeland Bancorp, Inc. (NASDAQ:LBAI), which had $10.90 billion in
total assets at June 30, 2023. With an extensive branch
network and commercial lending centers throughout New Jersey and
Highland Mills, New York, the Bank offers business and retail
banking products and services. Business services include commercial
loans and lines of credit, commercial real estate loans, loans for
healthcare services, asset-based lending, equipment financing,
small business loans and lines and cash management services.
Consumer services include online and mobile banking, home equity
loans and lines, mortgage options and wealth management solutions.
Lakeland is proud to be recognized as New Jersey's Best-In-State
Bank by Forbes and Statista for the fifth consecutive year, Best
Banks to Work For by American Banker, rated a 5-Star Bank by Bauer
Financial and named one of New Jersey's 50 Fastest Growing
Companies by NJBIZ. Visit LakelandBank.com or call 973-697-6140 for
more information.
|
Thomas J. Shara |
Thomas F. Splaine |
|
President & CEO |
EVP & CFO |
|
|
|
|
Lakeland Bancorp, Inc.Financial
Highlights(Unaudited) |
| |
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
(dollars in thousands, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Income
Statement |
|
|
|
|
|
|
|
| Net interest income |
$ |
71,542 |
|
|
$ |
80,302 |
|
|
$ |
147,467 |
|
|
$ |
150,690 |
|
| Provision for credit
losses |
|
(1,947 |
) |
|
|
(3,644 |
) |
|
|
(9,840 |
) |
|
|
(9,916 |
) |
| Gains on sales of loans |
|
229 |
|
|
|
715 |
|
|
|
659 |
|
|
|
2,141 |
|
| (Loss) gain on equity
securities |
|
(135 |
) |
|
|
(364 |
) |
|
|
13 |
|
|
|
(849 |
) |
| Other noninterest income |
|
6,575 |
|
|
|
6,712 |
|
|
|
12,262 |
|
|
|
12,551 |
|
| Merger-related expenses |
|
(242 |
) |
|
|
— |
|
|
|
(537 |
) |
|
|
(4,585 |
) |
| Other noninterest expense |
|
(46,766 |
) |
|
|
(45,068 |
) |
|
|
(95,076 |
) |
|
|
(90,442 |
) |
|
Pretax income |
|
29,256 |
|
|
|
38,653 |
|
|
|
54,948 |
|
|
|
59,590 |
|
| Provision for income
taxes |
|
(6,628 |
) |
|
|
(9,536 |
) |
|
|
(12,515 |
) |
|
|
(14,544 |
) |
|
Net income |
$ |
22,628 |
|
|
$ |
29,117 |
|
|
$ |
42,433 |
|
|
$ |
45,046 |
|
| |
|
|
|
|
|
|
|
| Basic earnings per common
share |
$ |
0.34 |
|
|
$ |
0.44 |
|
|
$ |
0.65 |
|
|
$ |
0.69 |
|
| Diluted earnings per common
share |
$ |
0.34 |
|
|
$ |
0.44 |
|
|
$ |
0.64 |
|
|
$ |
0.69 |
|
| Dividends paid per common
share |
$ |
0.145 |
|
|
$ |
0.145 |
|
|
$ |
0.290 |
|
|
$ |
0.280 |
|
| Weighted average shares -
basic |
|
65,059 |
|
|
|
64,828 |
|
|
|
65,013 |
|
|
|
64,397 |
|
| Weighted average shares -
diluted |
|
65,172 |
|
|
|
64,989 |
|
|
|
65,200 |
|
|
|
64,615 |
|
| |
|
|
|
|
|
|
|
| Selected Operating
Ratios |
|
|
|
|
|
|
|
| Annualized return on average
assets |
|
0.84 |
% |
|
|
1.15 |
% |
|
|
0.80 |
% |
|
|
0.89 |
% |
| Annualized return on average
common equity |
|
8.03 |
% |
|
|
10.71 |
% |
|
|
7.60 |
% |
|
|
8.31 |
% |
| Annualized return on average
tangible common equity (1) |
|
10.67 |
% |
|
|
14.45 |
% |
|
|
10.13 |
% |
|
|
11.16 |
% |
| Annualized yield on
interest-earning assets |
|
4.71 |
% |
|
|
3.61 |
% |
|
|
4.63 |
% |
|
|
3.42 |
% |
| Annualized cost of
interest-bearing liabilities |
|
2.59 |
% |
|
|
0.40 |
% |
|
|
2.35 |
% |
|
|
0.37 |
% |
| Annualized net interest
spread |
|
2.12 |
% |
|
|
3.22 |
% |
|
|
2.28 |
% |
|
|
3.05 |
% |
| Annualized net interest
margin |
|
2.83 |
% |
|
|
3.38 |
% |
|
|
2.95 |
% |
|
|
3.20 |
% |
| Efficiency ratio (1) |
|
58.82 |
% |
|
|
50.69 |
% |
|
|
58.32 |
% |
|
|
54.01 |
% |
| Stockholders' equity to total
assets |
|
|
|
|
|
10.38 |
% |
|
|
10.51 |
% |
| Book value per common
share |
|
|
|
|
$ |
17.40 |
|
|
$ |
16.82 |
|
| Tangible book value per common
share (1) |
|
|
|
|
$ |
13.10 |
|
|
$ |
12.47 |
|
| Tangible common equity to
tangible assets (1) |
|
|
|
|
|
8.02 |
% |
|
|
8.01 |
% |
| |
|
|
|
|
|
|
|
| Asset Quality
Ratios |
|
|
|
|
June 30, 2023 |
|
June 30, 2022 |
| Ratio of allowance for credit
losses to total loans |
|
|
|
|
|
0.91 |
% |
|
|
0.93 |
% |
| Non-performing loans to total
loans |
|
|
|
|
|
0.20 |
% |
|
|
0.30 |
% |
| Non-performing assets to total
assets |
|
|
|
|
|
0.15 |
% |
|
|
0.21 |
% |
| Annualized net charge-offs to
average loans |
|
|
|
|
|
— |
% |
|
|
0.21 |
% |
(1) See Supplemental Information - Non-GAAP
Financial Measures
| |
|
Lakeland Bancorp, Inc.Financial
Highlights(Unaudited) |
| |
| (dollars in thousands) |
|
|
|
|
June 30, 2023 |
|
June 30, 2022 |
| Selected
Balance Sheet Data at Period End |
|
|
|
|
|
|
| Loans |
|
|
|
|
$ |
8,101,287 |
|
|
$ |
7,408,540 |
|
| Allowance for credit
losses |
|
|
|
|
|
73,965 |
|
|
|
68,836 |
|
| Investment securities |
|
|
|
|
|
1,938,611 |
|
|
|
2,124,213 |
|
| Total assets |
|
|
|
|
|
10,897,966 |
|
|
|
10,374,178 |
|
| Total deposits |
|
|
|
|
|
8,444,681 |
|
|
|
8,501,804 |
|
| Short-term borrowings |
|
|
|
|
|
938,718 |
|
|
|
432,206 |
|
| Other borrowings |
|
|
|
|
|
219,486 |
|
|
|
219,027 |
|
| Stockholders' equity |
|
|
|
|
|
1,131,702 |
|
|
|
1,090,145 |
|
| |
|
|
|
|
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Selected Average
Balance Sheet Data |
|
|
|
|
|
|
|
| Loans |
$ |
7,999,285 |
|
|
$ |
7,229,175 |
|
|
$ |
7,950,129 |
|
|
$ |
7,125,893 |
|
| Investment securities |
|
2,068,073 |
|
|
|
2,188,199 |
|
|
|
2,092,439 |
|
|
|
2,104,355 |
|
| Interest-earning assets |
|
10,214,142 |
|
|
|
9,588,396 |
|
|
|
10,153,081 |
|
|
|
9,546,575 |
|
| Total assets |
|
10,808,261 |
|
|
|
10,192,140 |
|
|
|
10,753,835 |
|
|
|
10,165,437 |
|
| Noninterest-bearing demand
deposits |
|
1,935,776 |
|
|
|
2,310,702 |
|
|
|
1,987,635 |
|
|
|
2,252,693 |
|
| Savings deposits |
|
830,836 |
|
|
|
1,153,591 |
|
|
|
879,545 |
|
|
|
1,142,536 |
|
| Interest-bearing transaction
accounts |
|
4,007,867 |
|
|
|
4,369,067 |
|
|
|
4,115,349 |
|
|
|
4,384,215 |
|
| Time deposits |
|
1,722,935 |
|
|
|
803,421 |
|
|
|
1,555,230 |
|
|
|
841,214 |
|
| Total deposits |
|
8,497,414 |
|
|
|
8,636,781 |
|
|
|
8,537,759 |
|
|
|
8,620,658 |
|
| Short-term borrowings |
|
813,471 |
|
|
|
130,242 |
|
|
|
716,082 |
|
|
|
117,508 |
|
| Other borrowings |
|
219,425 |
|
|
|
218,958 |
|
|
|
219,366 |
|
|
|
218,474 |
|
| Total interest-bearing
liabilities |
|
7,594,534 |
|
|
|
6,675,279 |
|
|
|
7,485,572 |
|
|
|
6,703,947 |
|
| Stockholders' equity |
|
1,130,563 |
|
|
|
1,090,613 |
|
|
|
1,125,488 |
|
|
|
1,093,248 |
|
| |
|
Lakeland Bancorp, Inc. and
SubsidiariesConsolidated Statements of Income
(Unaudited) |
| |
| |
|
For the For the Three Months EndedJune 30, |
|
For the Six Months EndedJune 30, |
|
(in thousands, except per share data) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Interest
Income |
|
|
|
|
|
|
|
|
| Loans and fees |
|
$ |
105,261 |
|
|
$ |
76,973 |
|
|
$ |
205,742 |
|
|
$ |
144,782 |
|
| Federal funds sold and
interest-bearing deposits with banks |
|
|
1,981 |
|
|
|
235 |
|
|
|
2,709 |
|
|
|
417 |
|
| Taxable investment securities
and other |
|
|
11,939 |
|
|
|
8,285 |
|
|
|
23,493 |
|
|
|
14,994 |
|
| Tax-exempt investment
securities |
|
|
1,587 |
|
|
|
1,442 |
|
|
|
3,229 |
|
|
|
2,744 |
|
|
Total Interest Income |
|
|
120,768 |
|
|
|
86,935 |
|
|
|
235,173 |
|
|
|
162,937 |
|
| Interest
Expense |
|
|
|
|
|
|
|
|
| Deposits |
|
|
36,704 |
|
|
|
4,829 |
|
|
|
65,862 |
|
|
|
8,868 |
|
| Federal funds purchased and
securities sold under agreements to repurchase |
|
|
10,365 |
|
|
|
150 |
|
|
|
17,587 |
|
|
|
170 |
|
| Other borrowings |
|
|
2,157 |
|
|
|
1,654 |
|
|
|
4,257 |
|
|
|
3,209 |
|
|
Total Interest Expense |
|
|
49,226 |
|
|
|
6,633 |
|
|
|
87,706 |
|
|
|
12,247 |
|
|
Net Interest Income |
|
|
71,542 |
|
|
|
80,302 |
|
|
|
147,467 |
|
|
|
150,690 |
|
| Provision for credit
losses |
|
|
1,947 |
|
|
|
3,644 |
|
|
|
9,840 |
|
|
|
9,916 |
|
|
Net Interest Income after Provision for Credit
Losses |
|
|
69,595 |
|
|
|
76,658 |
|
|
|
137,627 |
|
|
|
140,774 |
|
| Noninterest
Income |
|
|
|
|
|
|
|
|
| Service charges on deposit
accounts |
|
|
2,844 |
|
|
|
2,711 |
|
|
|
5,633 |
|
|
|
5,337 |
|
| Commissions and fees |
|
|
1,863 |
|
|
|
2,555 |
|
|
|
3,788 |
|
|
|
4,661 |
|
| Income on bank owned life
insurance |
|
|
1,021 |
|
|
|
820 |
|
|
|
1,797 |
|
|
|
1,650 |
|
| Gain (loss) on equity
securities |
|
|
(135 |
) |
|
|
(364 |
) |
|
|
13 |
|
|
|
(849 |
) |
| Gains on sales of loans |
|
|
229 |
|
|
|
715 |
|
|
|
659 |
|
|
|
2,141 |
|
| Swap income |
|
|
361 |
|
|
|
399 |
|
|
|
417 |
|
|
|
399 |
|
| Other income |
|
|
486 |
|
|
|
227 |
|
|
|
627 |
|
|
|
504 |
|
|
Total Noninterest Income |
|
|
6,669 |
|
|
|
7,063 |
|
|
|
12,934 |
|
|
|
13,843 |
|
| Noninterest
Expense |
|
|
|
|
|
|
|
|
| Compensation and employee
benefits |
|
|
27,585 |
|
|
|
26,938 |
|
|
|
57,581 |
|
|
|
54,617 |
|
| Premises and equipment |
|
|
7,992 |
|
|
|
7,679 |
|
|
|
15,969 |
|
|
|
15,651 |
|
| FDIC insurance |
|
|
1,627 |
|
|
|
672 |
|
|
|
2,590 |
|
|
|
1,344 |
|
| Data processing |
|
|
2,025 |
|
|
|
1,891 |
|
|
|
3,887 |
|
|
|
3,561 |
|
| Merger-related expenses |
|
|
242 |
|
|
|
— |
|
|
|
537 |
|
|
|
4,585 |
|
| Other operating expenses |
|
|
7,537 |
|
|
|
7,888 |
|
|
|
15,049 |
|
|
|
15,269 |
|
|
Total Noninterest Expense |
|
|
47,008 |
|
|
|
45,068 |
|
|
|
95,613 |
|
|
|
95,027 |
|
|
Income before provision for income taxes |
|
|
29,256 |
|
|
|
38,653 |
|
|
|
54,948 |
|
|
|
59,590 |
|
| Provision for income
taxes |
|
|
6,628 |
|
|
|
9,536 |
|
|
|
12,515 |
|
|
|
14,544 |
|
|
Net Income |
|
$ |
22,628 |
|
|
$ |
29,117 |
|
|
$ |
42,433 |
|
|
$ |
45,046 |
|
| Per Share
of Common Stock |
|
|
|
|
|
|
|
Basic earnings |
|
$ |
0.34 |
|
|
$ |
0.44 |
|
|
$ |
0.65 |
|
|
$ |
0.69 |
|
|
Diluted earnings |
|
$ |
0.34 |
|
|
$ |
0.44 |
|
|
$ |
0.64 |
|
|
$ |
0.69 |
|
|
Dividends |
|
$ |
0.145 |
|
|
$ |
0.145 |
|
|
$ |
0.290 |
|
|
$ |
0.280 |
|
| |
|
Lakeland Bancorp, Inc. and
SubsidiariesConsolidated Balance
Sheets |
| |
| (dollars in thousands) |
|
June 30, 2023 |
|
December 31, 2022 |
| |
|
(Unaudited) |
|
|
| Assets |
|
|
|
|
|
Cash |
|
$ |
194,256 |
|
|
$ |
223,299 |
|
| Interest-bearing deposits due
from banks |
|
|
25,286 |
|
|
|
12,651 |
|
|
Total cash and cash equivalents |
|
|
219,542 |
|
|
|
235,950 |
|
| Investment securities
available for sale, at estimated fair value (allowance for credit
losses of $0 at June 30, 2023 and $310 at December 31,
2022) |
|
|
988,973 |
|
|
|
1,054,312 |
|
| Investment securities held to
maturity (estimated fair value of $730,805 at June 30, 2023
and $760,455 at December 31, 2022, allowance for credit losses of
$146 at June 30, 2023 and $107 at December 31, 2022) |
|
|
879,106 |
|
|
|
923,308 |
|
| Equity securities, at fair
value |
|
|
17,429 |
|
|
|
17,283 |
|
| Federal Home Loan Bank and
other membership stocks, at cost |
|
|
53,103 |
|
|
|
42,483 |
|
| Loans held for sale |
|
|
563 |
|
|
|
536 |
|
| Loans, net of deferred
fees |
|
|
8,101,287 |
|
|
|
7,866,050 |
|
|
Less: Allowance for credit losses |
|
|
73,965 |
|
|
|
70,264 |
|
|
Net loans |
|
|
8,027,322 |
|
|
|
7,795,786 |
|
| Premises and equipment,
net |
|
|
55,114 |
|
|
|
55,429 |
|
| Operating lease right-of-use
assets |
|
|
18,478 |
|
|
|
20,052 |
|
| Accrued interest
receivable |
|
|
34,232 |
|
|
|
33,374 |
|
| Goodwill |
|
|
271,829 |
|
|
|
271,829 |
|
| Other identifiable intangible
assets |
|
|
8,060 |
|
|
|
9,088 |
|
| Bank owned life insurance |
|
|
158,193 |
|
|
|
156,985 |
|
| Other assets |
|
|
166,022 |
|
|
|
167,425 |
|
|
Total Assets |
|
$ |
10,897,966 |
|
|
$ |
10,783,840 |
|
| Liabilities and
Stockholders' Equity |
|
|
|
|
| Liabilities |
|
|
|
|
| Deposits: |
|
|
|
|
| Noninterest-bearing |
|
$ |
1,866,252 |
|
|
$ |
2,113,289 |
|
| Savings and interest-bearing
transaction accounts |
|
|
4,775,184 |
|
|
|
5,246,005 |
|
| Time deposits $250 thousand
and under |
|
|
1,330,090 |
|
|
|
901,505 |
|
| Time deposits over $250
thousand |
|
|
473,155 |
|
|
|
306,672 |
|
| Total deposits |
|
|
8,444,681 |
|
|
|
8,567,471 |
|
| Federal funds purchased and
securities sold under agreements to repurchase |
|
|
938,718 |
|
|
|
728,797 |
|
| Other borrowings |
|
|
25,000 |
|
|
|
25,000 |
|
| Subordinated debentures |
|
|
194,486 |
|
|
|
194,264 |
|
| Operating lease
liabilities |
|
|
19,710 |
|
|
|
21,449 |
|
| Other liabilities |
|
|
143,669 |
|
|
|
138,272 |
|
|
Total Liabilities |
|
|
9,766,264 |
|
|
|
9,675,253 |
|
| Stockholders' Equity |
|
|
|
|
| Common stock, no par value;
authorized 100,000,000 shares; issued 65,159,220 shares and
outstanding 65,028,185 shares at June 30, 2023 and issued
65,002,738 shares and outstanding 64,871,703 shares at
December 31, 2022 |
|
|
856,807 |
|
|
|
855,425 |
|
| Retained earnings |
|
|
352,779 |
|
|
|
329,375 |
|
| Treasury shares, at cost,
131,035 shares at June 30, 2023 and December 31, 2022 |
|
|
(1,452 |
) |
|
|
(1,452 |
) |
| Accumulated other
comprehensive loss |
|
|
(76,432 |
) |
|
|
(74,761 |
) |
|
Total Stockholders' Equity |
|
|
1,131,702 |
|
|
|
1,108,587 |
|
|
Total Liabilities and Stockholders' Equity |
|
$ |
10,897,966 |
|
|
$ |
10,783,840 |
|
| |
|
Lakeland Bancorp, Inc.Financial
Highlights(Unaudited) |
| |
| |
|
For the Quarter Ended |
| (dollars in thousands, except
per share data) |
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
| Income
Statement |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
71,542 |
|
|
$ |
75,925 |
|
|
$ |
81,640 |
|
|
$ |
80,285 |
|
|
$ |
80,302 |
|
| (Provision) benefit for credit
losses |
|
|
(1,947 |
) |
|
|
(7,893 |
) |
|
|
2,760 |
|
|
|
(1,358 |
) |
|
|
(3,644 |
) |
| Gains on sales of loans |
|
|
229 |
|
|
|
430 |
|
|
|
269 |
|
|
|
355 |
|
|
|
715 |
|
| Gains (loss) on equity
securities |
|
|
(135 |
) |
|
|
148 |
|
|
|
11 |
|
|
|
(464 |
) |
|
|
(364 |
) |
| Other noninterest income |
|
|
6,575 |
|
|
|
5,687 |
|
|
|
6,743 |
|
|
|
7,342 |
|
|
|
6,712 |
|
| Merger-related expenses |
|
|
(242 |
) |
|
|
(295 |
) |
|
|
(533 |
) |
|
|
(3,488 |
) |
|
|
— |
|
| Other noninterest expense |
|
|
(46,766 |
) |
|
|
(48,310 |
) |
|
|
(44,837 |
) |
|
|
(44,323 |
) |
|
|
(45,068 |
) |
|
Pretax income |
|
|
29,256 |
|
|
|
25,692 |
|
|
|
46,053 |
|
|
|
38,349 |
|
|
|
38,653 |
|
| Provision for income
taxes |
|
|
(6,628 |
) |
|
|
(5,887 |
) |
|
|
(12,476 |
) |
|
|
(9,603 |
) |
|
|
(9,536 |
) |
|
Net income |
|
$ |
22,628 |
|
|
$ |
19,805 |
|
|
$ |
33,577 |
|
|
$ |
28,746 |
|
|
$ |
29,117 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Basic earnings per common
share |
|
$ |
0.34 |
|
|
$ |
0.30 |
|
|
$ |
0.51 |
|
|
$ |
0.44 |
|
|
$ |
0.44 |
|
| Diluted earnings per common
share |
|
$ |
0.34 |
|
|
$ |
0.30 |
|
|
$ |
0.51 |
|
|
$ |
0.44 |
|
|
$ |
0.44 |
|
| Dividends paid per common
share |
|
$ |
0.145 |
|
|
$ |
0.145 |
|
|
$ |
0.145 |
|
|
$ |
0.145 |
|
|
$ |
0.145 |
|
| Dividends paid |
|
$ |
9,529 |
|
|
$ |
9,500 |
|
|
$ |
9,505 |
|
|
$ |
9,506 |
|
|
$ |
9,507 |
|
| Weighted average shares -
basic |
|
|
65,059 |
|
|
|
64,966 |
|
|
|
64,854 |
|
|
|
64,842 |
|
|
|
64,828 |
|
| Weighted average shares -
diluted |
|
|
65,173 |
|
|
|
65,228 |
|
|
|
65,222 |
|
|
|
65,061 |
|
|
|
64,989 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Selected Operating
Ratios |
|
|
|
|
|
|
|
|
|
|
| Annualized return on average
assets |
|
|
0.84 |
% |
|
|
0.75 |
% |
|
|
1.26 |
% |
|
|
1.10 |
% |
|
|
1.15 |
% |
| Annualized return on average
common equity |
|
|
8.03 |
% |
|
|
7.17 |
% |
|
|
12.19 |
% |
|
|
10.33 |
% |
|
|
10.71 |
% |
| Annualized return on average
tangible common equity (1) |
|
|
10.67 |
% |
|
|
9.57 |
% |
|
|
16.42 |
% |
|
|
13.87 |
% |
|
|
14.45 |
% |
| Annualized net interest
margin |
|
|
2.83 |
% |
|
|
3.07 |
% |
|
|
3.28 |
% |
|
|
3.28 |
% |
|
|
3.38 |
% |
| Efficiency ratio (1) |
|
|
58.82 |
% |
|
|
57.84 |
% |
|
|
49.67 |
% |
|
|
49.76 |
% |
|
|
50.69 |
% |
| Common stockholders' equity to
total assets |
|
|
10.38 |
% |
|
|
10.40 |
% |
|
|
10.28 |
% |
|
|
10.29 |
% |
|
|
10.51 |
% |
| Tangible common equity to
tangible assets (1) |
|
|
8.02 |
% |
|
|
8.02 |
% |
|
|
7.88 |
% |
|
|
7.83 |
% |
|
|
8.01 |
% |
| Tier 1 risk-based ratio |
|
|
11.43 |
% |
|
|
11.33 |
% |
|
|
11.24 |
% |
|
|
11.16 |
% |
|
|
11.12 |
% |
| Total risk-based ratio |
|
|
14.03 |
% |
|
|
13.93 |
% |
|
|
13.83 |
% |
|
|
13.78 |
% |
|
|
13.74 |
% |
| Tier 1 leverage ratio |
|
|
9.17 |
% |
|
|
9.13 |
% |
|
|
9.16 |
% |
|
|
9.10 |
% |
|
|
9.05 |
% |
| Common equity tier 1 capital
ratio |
|
|
10.90 |
% |
|
|
10.81 |
% |
|
|
10.71 |
% |
|
|
10.62 |
% |
|
|
10.57 |
% |
| Book value per common
share |
|
$ |
17.40 |
|
|
$ |
17.33 |
|
|
$ |
17.09 |
|
|
$ |
16.70 |
|
|
$ |
16.82 |
|
| Tangible book value per common
share (1) |
|
$ |
13.10 |
|
|
$ |
13.01 |
|
|
$ |
12.76 |
|
|
$ |
12.36 |
|
|
$ |
12.47 |
|
(1) See Supplemental Information - Non-GAAP Financial
Measures
| |
|
Lakeland Bancorp, Inc.Financial
Highlights(Unaudited) |
| |
| |
|
For the Quarter Ended |
| (dollars in thousands) |
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
Selected Balance Sheet Data at Period End |
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
8,101,287 |
|
|
$ |
7,952,553 |
|
|
$ |
7,866,050 |
|
|
$ |
7,568,826 |
|
|
$ |
7,408,540 |
|
| Allowance for credit losses on
loans |
|
|
73,965 |
|
|
|
71,403 |
|
|
|
70,264 |
|
|
|
68,879 |
|
|
|
68,836 |
|
| Investment securities |
|
|
1,938,611 |
|
|
|
1,994,927 |
|
|
|
2,037,386 |
|
|
|
2,047,186 |
|
|
|
2,124,213 |
|
| Total assets |
|
|
10,897,966 |
|
|
|
10,837,241 |
|
|
|
10,783,840 |
|
|
|
10,515,599 |
|
|
|
10,374,178 |
|
| Total deposits |
|
|
8,444,681 |
|
|
|
8,536,943 |
|
|
|
8,567,471 |
|
|
|
8,677,799 |
|
|
|
8,501,804 |
|
| Short-term borrowings |
|
|
938,718 |
|
|
|
813,328 |
|
|
|
728,797 |
|
|
|
357,787 |
|
|
|
432,206 |
|
| Other borrowings |
|
|
219,486 |
|
|
|
219,376 |
|
|
|
219,264 |
|
|
|
219,148 |
|
|
|
219,027 |
|
| Stockholders' equity |
|
|
1,131,702 |
|
|
|
1,126,580 |
|
|
|
1,108,587 |
|
|
|
1,082,406 |
|
|
|
1,090,145 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Loans |
|
|
|
|
|
|
|
|
|
|
| Non-owner occupied
commercial |
|
$ |
2,991,124 |
|
|
$ |
2,943,897 |
|
|
$ |
2,906,014 |
|
|
$ |
2,873,824 |
|
|
$ |
2,777,003 |
|
| Owner occupied commercial |
|
|
1,201,049 |
|
|
|
1,205,635 |
|
|
|
1,246,189 |
|
|
|
1,141,290 |
|
|
|
1,179,527 |
|
| Multifamily |
|
|
1,314,255 |
|
|
|
1,275,771 |
|
|
|
1,260,814 |
|
|
|
1,186,036 |
|
|
|
1,134,938 |
|
| Non-owner occupied
residential |
|
|
205,818 |
|
|
|
210,203 |
|
|
|
218,026 |
|
|
|
222,597 |
|
|
|
221,339 |
|
| Commercial, industrial and
other |
|
|
594,401 |
|
|
|
562,287 |
|
|
|
606,276 |
|
|
|
612,494 |
|
|
|
647,531 |
|
| Paycheck Protection
Program |
|
|
389 |
|
|
|
390 |
|
|
|
435 |
|
|
|
734 |
|
|
|
10,404 |
|
| Construction |
|
|
354,918 |
|
|
|
404,994 |
|
|
|
380,100 |
|
|
|
381,109 |
|
|
|
370,777 |
|
| Equipment financing |
|
|
173,469 |
|
|
|
161,889 |
|
|
|
151,575 |
|
|
|
137,999 |
|
|
|
134,136 |
|
| Residential mortgages |
|
|
922,109 |
|
|
|
857,427 |
|
|
|
765,552 |
|
|
|
690,453 |
|
|
|
622,417 |
|
| Consumer and home equity |
|
|
343,755 |
|
|
|
330,060 |
|
|
|
331,069 |
|
|
|
322,290 |
|
|
|
310,468 |
|
|
Total loans |
|
$ |
8,101,287 |
|
|
$ |
7,952,553 |
|
|
$ |
7,866,050 |
|
|
$ |
7,568,826 |
|
|
$ |
7,408,540 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing |
|
$ |
1,866,252 |
|
|
$ |
1,998,590 |
|
|
$ |
2,113,289 |
|
|
$ |
2,288,902 |
|
|
$ |
2,330,550 |
|
| Savings and interest-bearing
transaction accounts |
|
|
4,775,184 |
|
|
|
4,918,041 |
|
|
|
5,246,005 |
|
|
|
5,354,716 |
|
|
|
5,407,212 |
|
| Time deposits |
|
|
1,803,245 |
|
|
|
1,620,312 |
|
|
|
1,208,177 |
|
|
|
1,034,181 |
|
|
|
764,042 |
|
|
Total deposits |
|
$ |
8,444,681 |
|
|
$ |
8,536,943 |
|
|
$ |
8,567,471 |
|
|
$ |
8,677,799 |
|
|
$ |
8,501,804 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Total loans to total deposits
ratio |
|
|
95.9 |
% |
|
|
93.2 |
% |
|
|
91.8 |
% |
|
|
87.2 |
% |
|
|
87.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Selected Average
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
| Loans |
|
$ |
7,999,285 |
|
|
$ |
7,900.426 |
|
|
$ |
7,729,510 |
|
|
$ |
7,517,878 |
|
|
$ |
7,229,175 |
|
| Investment securities |
|
|
2,068,073 |
|
|
|
2,117.076 |
|
|
|
2,145,252 |
|
|
|
2,160,719 |
|
|
|
2,188,199 |
|
| Interest-earning assets |
|
|
10,214,142 |
|
|
|
10,091.341 |
|
|
|
9,923,173 |
|
|
|
9,755,797 |
|
|
|
9,588,396 |
|
| Total assets |
|
|
10,808,261 |
|
|
|
10,698.807 |
|
|
|
10,534,884 |
|
|
|
10,358,600 |
|
|
|
10,192,140 |
|
| Noninterest-bearing demand
deposits |
|
|
1,935,776 |
|
|
|
2,040,070 |
|
|
|
2,240,197 |
|
|
|
2,325,391 |
|
|
|
2,310,702 |
|
| Savings deposits |
|
|
830,836 |
|
|
|
928.796 |
|
|
|
1,001,870 |
|
|
|
1,092,222 |
|
|
|
1,153,591 |
|
| Interest-bearing transaction
accounts |
|
|
4,007,867 |
|
|
|
4,224.024 |
|
|
|
4,389,672 |
|
|
|
4,337,559 |
|
|
|
4,369,067 |
|
| Time deposits |
|
|
1,722,935 |
|
|
|
1,385.661 |
|
|
|
1,100,911 |
|
|
|
905,735 |
|
|
|
803,421 |
|
| Total deposits |
|
|
8,497,414 |
|
|
|
8,578.551 |
|
|
|
8,732,650 |
|
|
|
8,660,907 |
|
|
|
8,636,781 |
|
| Short-term borrowings |
|
|
813,471 |
|
|
|
617.611 |
|
|
|
311,875 |
|
|
|
240,728 |
|
|
|
130,242 |
|
| Other borrowings |
|
|
219,425 |
|
|
|
219.308 |
|
|
|
219,202 |
|
|
|
219,082 |
|
|
|
218,958 |
|
| Total interest-bearing
liabilities |
|
|
7,594,534 |
|
|
|
7,375,400 |
|
|
|
7,023,530 |
|
|
|
6,795,326 |
|
|
|
6,675,279 |
|
| Stockholders' equity |
|
|
1,130,563 |
|
|
|
1,120.356 |
|
|
|
1,092,720 |
|
|
|
1,104,145 |
|
|
|
1,090,613 |
|
| |
|
Lakeland Bancorp, Inc.Financial
Highlights(Unaudited) |
| |
| |
|
For the Quarter Ended |
| (dollars in thousands) |
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
Average Annualized Yields (Taxable Equivalent Basis) and
Costs |
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
5.22 |
% |
|
|
5.10 |
% |
|
|
4.84 |
% |
|
|
4.43 |
% |
|
|
4.22 |
% |
| Taxable investment securities
and other |
|
|
2.74 |
% |
|
|
2.61 |
% |
|
|
2.41 |
% |
|
|
2.12 |
% |
|
|
1.81 |
% |
| Tax-exempt securities |
|
|
2.45 |
% |
|
|
2.41 |
% |
|
|
2.36 |
% |
|
|
2.12 |
% |
|
|
2.02 |
% |
| Federal funds sold and
interest-bearing cash accounts |
|
|
5.41 |
% |
|
|
4.00 |
% |
|
|
3.68 |
% |
|
|
2.21 |
% |
|
|
0.55 |
% |
|
Total interest-earning assets |
|
|
4.71 |
% |
|
|
4.56 |
% |
|
|
4.31 |
% |
|
|
3.90 |
% |
|
|
3.61 |
% |
| Liabilities |
|
|
|
|
|
|
|
|
|
|
| Savings accounts |
|
|
0.26 |
% |
|
|
0.28 |
% |
|
|
0.29 |
% |
|
|
0.25 |
% |
|
|
0.18 |
% |
| Interest-bearing transaction
accounts |
|
|
2.16 |
% |
|
|
1.85 |
% |
|
|
1.46 |
% |
|
|
0.97 |
% |
|
|
0.33 |
% |
| Time deposits |
|
|
3.39 |
% |
|
|
2.71 |
% |
|
|
1.77 |
% |
|
|
1.00 |
% |
|
|
0.39 |
% |
| Borrowings |
|
|
4.80 |
% |
|
|
4.46 |
% |
|
|
3.52 |
% |
|
|
2.15 |
% |
|
|
2.04 |
% |
|
Total interest-bearing liabilities |
|
|
2.59 |
% |
|
|
2.11 |
% |
|
|
1.50 |
% |
|
|
0.94 |
% |
|
|
0.40 |
% |
| Net interest spread (taxable
equivalent basis) |
|
|
2.12 |
% |
|
|
2.45 |
% |
|
|
2.81 |
% |
|
|
2.96 |
% |
|
|
3.22 |
% |
| Annualized net interest margin
(taxable equivalent basis) |
|
|
2.83 |
% |
|
|
3.07 |
% |
|
|
3.28 |
% |
|
|
3.28 |
% |
|
|
3.38 |
% |
| Annualized cost of
deposits |
|
|
1.73 |
% |
|
|
1.38 |
% |
|
|
0.99 |
% |
|
|
0.62 |
% |
|
|
0.22 |
% |
| Loan Quality
Data |
|
|
|
|
|
|
|
|
|
|
| Allowance for Credit Losses on
Loans |
|
|
|
|
|
|
|
|
|
|
| Balance at beginning of
period |
|
$ |
71,403 |
|
|
$ |
70,264 |
|
|
$ |
68,879 |
|
|
$ |
68,836 |
|
|
$ |
67,112 |
|
| Provision for credit losses on
loans |
|
|
2,422 |
|
|
|
1,213 |
|
|
|
1,464 |
|
|
|
11 |
|
|
|
1,583 |
|
| Charge-offs |
|
|
(148 |
) |
|
|
(139 |
) |
|
|
(138 |
) |
|
|
(56 |
) |
|
|
(365 |
) |
| Recoveries |
|
|
288 |
|
|
|
65 |
|
|
|
59 |
|
|
|
88 |
|
|
|
506 |
|
| Balance at end of period |
|
$ |
73,965 |
|
|
$ |
71,403 |
|
|
$ |
70,264 |
|
|
$ |
68,879 |
|
|
$ |
68,836 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net Loan Charge-Offs
(Recoveries) |
|
|
|
|
|
|
|
|
|
|
| Non owner occupied
commercial |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(4 |
) |
| Owner occupied commercial |
|
|
(6 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(337 |
) |
| Non owner occupied
residential |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Commercial, industrial and
other |
|
|
(163 |
) |
|
|
(35 |
) |
|
|
(24 |
) |
|
|
(49 |
) |
|
|
272 |
|
| Construction |
|
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Equipment finance |
|
|
12 |
|
|
|
46 |
|
|
|
51 |
|
|
|
(23 |
) |
|
|
(40 |
) |
| Residential mortgages |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Consumer and home equity |
|
|
4 |
|
|
|
63 |
|
|
|
52 |
|
|
|
40 |
|
|
|
(32 |
) |
|
Net charge-offs (recoveries) |
|
$ |
(140 |
) |
|
$ |
74 |
|
|
$ |
79 |
|
|
$ |
(32 |
) |
|
$ |
(141 |
) |
| |
|
Lakeland Bancorp, Inc.Financial
Highlights(Unaudited) |
| |
| |
|
For the Quarter Ended |
| (dollars in thousands) |
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
| Non-Performing Assets
(1) |
|
|
|
|
|
|
|
|
|
|
|
Non owner occupied commercial |
|
$ |
864 |
|
|
$ |
908 |
|
|
$ |
618 |
|
|
$ |
307 |
|
|
$ |
324 |
|
| Owner occupied commercial |
|
|
8,076 |
|
|
|
8,757 |
|
|
|
9,439 |
|
|
|
10,322 |
|
|
|
12,587 |
|
| Multifamily |
|
|
266 |
|
|
|
584 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Non owner occupied
residential |
|
|
41 |
|
|
|
— |
|
|
|
441 |
|
|
|
868 |
|
|
|
839 |
|
| Commercial, industrial and
other |
|
|
1,737 |
|
|
|
2,221 |
|
|
|
2,978 |
|
|
|
3,623 |
|
|
|
4,882 |
|
| Construction |
|
|
— |
|
|
|
980 |
|
|
|
980 |
|
|
|
— |
|
|
|
— |
|
| Equipment finance |
|
|
644 |
|
|
|
379 |
|
|
|
114 |
|
|
|
226 |
|
|
|
112 |
|
| Residential mortgages |
|
|
1,954 |
|
|
|
1,918 |
|
|
|
2,011 |
|
|
|
2,226 |
|
|
|
2,249 |
|
| Consumer and home equity |
|
|
2,486 |
|
|
|
1,131 |
|
|
|
781 |
|
|
|
798 |
|
|
|
1,168 |
|
|
Total non-accrual loans |
|
|
16,068 |
|
|
|
16,878 |
|
|
|
17,362 |
|
|
|
18,370 |
|
|
|
22,161 |
|
|
Total non-performing assets |
|
$ |
16,068 |
|
|
$ |
16,878 |
|
|
$ |
17,362 |
|
|
$ |
18,370 |
|
|
$ |
22,161 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Loans past due 90 days or more
and still accruing |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
31 |
|
|
$ |
— |
|
| Loans restructured and still
accruing |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,640 |
|
|
$ |
3,113 |
|
|
$ |
3,189 |
|
| Ratio of allowance for loan
losses to total loans |
|
|
0.91 |
% |
|
|
0.90 |
% |
|
|
0.89 |
% |
|
|
0.91 |
% |
|
|
0.93 |
% |
| Total non-accrual loans to
total loans |
|
|
0.20 |
% |
|
|
0.21 |
% |
|
|
0.22 |
% |
|
|
0.24 |
% |
|
|
0.30 |
% |
| Total non-performing assets to
total assets |
|
|
0.15 |
% |
|
|
0.16 |
% |
|
|
0.16 |
% |
|
|
0.17 |
% |
|
|
0.21 |
% |
| Annualized net (recoveries)
charge-offs to average loans |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
(0.01 |
)% |
(1) Includes non-accrual purchased credit
deteriorated loans.
| |
|
Lakeland Bancorp, Inc.Supplemental
Information - Non-GAAP Financial
Measures(Unaudited) |
| |
| |
|
At or for the Quarter Ended |
| (dollars in thousands, except
per share amounts) |
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
Calculation of Tangible Book Value Per Common
Share |
|
|
|
|
|
|
|
|
|
Total common stockholders' equity at end of period - GAAP |
|
$ |
1,131,702 |
|
|
$ |
1,126,580 |
|
|
$ |
1,108,587 |
|
|
$ |
1,082,406 |
|
|
$ |
1,090,145 |
|
| Less: Goodwill |
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
| Less: Other identifiable
intangible assets |
|
|
8,060 |
|
|
|
8,572 |
|
|
|
9,088 |
|
|
|
9,669 |
|
|
|
10,250 |
|
| Total tangible common
stockholders' equity at end of period - Non-GAAP |
|
$ |
851,813 |
|
|
$ |
846,179 |
|
|
$ |
827,670 |
|
|
$ |
800,908 |
|
|
$ |
808,066 |
|
| Shares outstanding at end of
period |
|
|
65,028 |
|
|
|
65,017 |
|
|
|
64,872 |
|
|
|
64,804 |
|
|
|
64,794 |
|
| Book value per share -
GAAP |
|
$ |
17.40 |
|
|
$ |
17.33 |
|
|
$ |
17.09 |
|
|
$ |
16.70 |
|
|
$ |
16.82 |
|
| Tangible book value per share
- Non-GAAP |
|
$ |
13.10 |
|
|
$ |
13.01 |
|
|
$ |
12.76 |
|
|
$ |
12.36 |
|
|
$ |
12.47 |
|
|
Calculation of Tangible Common Equity to Tangible
Assets |
|
|
|
|
|
|
| Total tangible common
stockholders' equity at end of period - Non-GAAP |
|
$ |
851,813 |
|
|
$ |
846,179 |
|
|
$ |
827,670 |
|
|
$ |
800,908 |
|
|
$ |
808,066 |
|
| Total assets at end of period
- GAAP |
|
$ |
10,897,966 |
|
|
$ |
10,837,241 |
|
|
$ |
10,783,840 |
|
|
$ |
10,515,599 |
|
|
$ |
10,374,178 |
|
| Less: Goodwill |
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
| Less: Other identifiable
intangible assets |
|
|
8,060 |
|
|
|
8,572 |
|
|
|
9,088 |
|
|
|
9,669 |
|
|
|
10,250 |
|
| Total tangible assets at end
of period - Non-GAAP |
|
$ |
10,618,077 |
|
|
$ |
10,556,840 |
|
|
$ |
10,502,923 |
|
|
$ |
10,234,101 |
|
|
$ |
10,092,099 |
|
| Common equity to assets -
GAAP |
|
|
10.38 |
% |
|
|
10.40 |
% |
|
|
10.28 |
% |
|
|
10.29 |
% |
|
|
10.51 |
% |
|
Tangible common equity to tangible assets - Non-GAAP |
|
|
8.02 |
% |
|
|
8.02 |
% |
|
|
7.88 |
% |
|
|
7.83 |
% |
|
|
8.01 |
% |
|
Calculation of Return on Average Tangible Common
Equity |
|
|
|
|
|
|
| Net income - GAAP |
|
$ |
22,628 |
|
|
$ |
19,805 |
|
|
$ |
33,577 |
|
|
$ |
28,746 |
|
|
$ |
29,117 |
|
| Total average common
stockholders' equity - GAAP |
|
$ |
1,130,563 |
|
|
$ |
1,120,356 |
|
|
$ |
1,092,720 |
|
|
$ |
1,104,145 |
|
|
$ |
1,090,613 |
|
| Less: Average goodwill |
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
| Less: Average other
identifiable intangible assets |
|
|
8,353 |
|
|
|
8,904 |
|
|
|
9,386 |
|
|
|
9,982 |
|
|
|
10,569 |
|
| Total average tangible common
stockholders' equity - Non-GAAP |
|
$ |
850,381 |
|
|
$ |
839,623 |
|
|
$ |
811,505 |
|
|
$ |
822,334 |
|
|
$ |
808,215 |
|
| Return on average common
stockholders' equity - GAAP |
|
|
8.03 |
% |
|
|
7.17 |
% |
|
|
12.19 |
% |
|
|
10.33 |
% |
|
|
10.71 |
% |
| Return on average tangible
common stockholders' equity - Non-GAAP |
|
|
10.67 |
% |
|
|
9.57 |
% |
|
|
16.42 |
% |
|
|
13.87 |
% |
|
|
14.45 |
% |
| Calculation of
Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
| Total noninterest expense |
|
$ |
47,008 |
|
|
$ |
48,605 |
|
|
$ |
45,370 |
|
|
$ |
47,811 |
|
|
$ |
45,068 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
Amortization of core deposit intangibles |
|
|
512 |
|
|
|
516 |
|
|
|
581 |
|
|
|
581 |
|
|
|
593 |
|
|
Merger-related expenses |
|
|
242 |
|
|
|
295 |
|
|
|
533 |
|
|
|
3,488 |
|
|
|
— |
|
| Noninterest expense, as
adjusted |
|
$ |
46,254 |
|
|
$ |
47,794 |
|
|
$ |
44,256 |
|
|
$ |
43,742 |
|
|
$ |
44,475 |
|
| Net interest income |
|
$ |
71,542 |
|
|
$ |
75,925 |
|
|
$ |
81,640 |
|
|
$ |
80,285 |
|
|
$ |
80,302 |
|
| Total noninterest income |
|
|
6,669 |
|
|
|
6,265 |
|
|
|
7,023 |
|
|
|
7,233 |
|
|
|
7,063 |
|
| Total revenue |
|
|
78,211 |
|
|
|
82,190 |
|
|
|
88,663 |
|
|
|
87,518 |
|
|
|
87,365 |
|
| Tax-equivalent adjustment on
municipal securities |
|
|
422 |
|
|
|
436 |
|
|
|
443 |
|
|
|
395 |
|
|
|
382 |
|
| Total revenue, as
adjusted |
|
$ |
78,633 |
|
|
$ |
82,626 |
|
|
$ |
89,106 |
|
|
$ |
87,913 |
|
|
$ |
87,747 |
|
| Efficiency ratio -
Non-GAAP |
|
|
58.82 |
% |
|
|
57.84 |
% |
|
|
49.67 |
% |
|
|
49.76 |
% |
|
|
50.69 |
% |
| |
|
Lakeland Bancorp, Inc.Supplemental
Information - Non-GAAP Financial
Measures(Unaudited) |
| |
| |
For the Six Months Ended June 30, |
|
(dollars in thousands) |
|
2023 |
|
|
|
2022 |
|
| Calculation of Return
on Average Tangible Common Equity |
|
|
|
| Net income - GAAP |
$ |
42,433 |
|
|
$ |
45,046 |
|
| |
|
|
|
| Total average common
stockholders' equity - GAAP |
$ |
1,125,488 |
|
|
$ |
1,093,249 |
|
| Less: Average goodwill |
|
271,829 |
|
|
|
268,637 |
|
| Less: Average other
identifiable intangible assets |
|
8,627 |
|
|
|
10,709 |
|
| Total average tangible common
stockholders' equity - Non-GAAP |
$ |
845,032 |
|
|
$ |
813,903 |
|
| Return on average common
stockholders' equity - GAAP |
|
7.60 |
% |
|
|
8.31 |
% |
| Return on average tangible
common stockholders' equity - Non-GAAP |
|
10.13 |
% |
|
|
11.16 |
% |
| |
|
|
|
| Calculation of
Efficiency Ratio |
|
|
|
| Total noninterest expense |
$ |
95,613 |
|
|
$ |
95,027 |
|
| Less: |
|
|
|
|
Amortization of core deposit intangibles |
|
1,028 |
|
|
|
1,189 |
|
|
Merger-related expenses |
|
537 |
|
|
|
4,585 |
|
|
Long term debt extinguishment costs |
|
— |
|
|
|
— |
|
| Noninterest expense, as
adjusted |
$ |
94,048 |
|
|
$ |
89,253 |
|
| Net interest income |
$ |
147,467 |
|
|
$ |
150,690 |
|
| Noninterest income |
|
12,934 |
|
|
|
13,843 |
|
| Total revenue |
$ |
160,401 |
|
|
$ |
164,533 |
|
| Tax-equivalent adjustment on
municipal securities |
|
858 |
|
|
|
729 |
|
| Less: Gains on sales of
investment securities |
|
— |
|
|
|
— |
|
| Total revenue, as
adjusted |
$ |
161,259 |
|
|
$ |
165,262 |
|
| Efficiency ratio -
Non-GAAP |
|
58.32 |
% |
|
|
54.01 |
% |
Lakeland Bancorp (NASDAQ:LBAI)
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