Lakeland Bancorp, Inc. (NASDAQ:
LBAI) (the
“Company”), the parent company of Lakeland Bank (“Lakeland”),
reported net income of $20.1 million and earnings per diluted share
("EPS") of $0.30 for the three months ended December 31, 2023,
compared to net income of $33.6 million and diluted EPS of $0.51
for the fourth quarter of 2022. For the fourth quarter of 2023,
annualized return on average assets was 0.73%, annualized return on
average common equity was 6.97% and annualized return on average
tangible common equity was 9.23%.
For the year ended December 31, 2023, the
Company reported net income of $84.7 million, a 21% decrease
compared to $107.4 million for 2022, resulting in return on average
assets of 0.78%, return on average common equity of 7.48%, and
return on average tangible common equity of 9.94% for 2023. For
2023, the Company reported diluted EPS of $1.29 compared to diluted
EPS of $1.63 for 2022.
The current year results include a $30.9 million
decrease in net interest income, a decrease in noninterest income
of $3.0 million, and an increase in provision for credit losses of
$4.5 million offset in part by a decrease in non-interest expenses
of $5.2 million. Fourth quarter 2023 results were negatively
impacted by a $16.3 million, or 20%, decrease in net interest
income and a $4.7 million increase in the provision for credit
losses partially offset by a $2.4 million decrease in non-interest
expenses compared to the fourth quarter of 2022.
Thomas Shara, Lakeland Bancorp’s President and
CEO commented on the yearly financial results: "Despite a
challenging economic environment in 2023, we are very pleased with
our continued loan growth of 6% and our continued stellar asset
quality as loan charge-offs for the year were negligible. Our
deposit base was resilient throughout the banking crisis which
speaks to our core deposit customer focus. I want to thank all of
the Lakeland associates for their incredible contributions and
unwavering customer support during this uncertain period."
Regarding the announced merger with Provident
Financial Services, Inc. ("Provident Financial"), Mr. Shara
continued, "We are actively engaged in discussions with our
regulators concerning the merger. Both Provident Financial and
Lakeland have agreed to extend the merger deadline to March 31,
2024, to allow additional time to obtain the necessary regulatory
approvals. We look forward to closing the transaction as soon as
possible following the receipt of the approvals."
Full Year 2023 Highlights
- Loans grew
$477.8 million or 6% during the year with commercial real estate
loans increasing $263.0 million, or 5%, and residential mortgages
increasing $220.2 million, or 29%.
- Net interest
margin for 2023 decreased 47 basis points to 2.77% compared to 2022
due primarily to the increase in the market rate environment and
the resulting movement of customers from lower rate
interest-bearing transaction accounts to higher rate time
deposits.
- The provision
for credit losses of $13.1 million for the year ended December 31,
2023 increased $4.5 million from $8.5 million for 2022. The Company
recorded a charge-off of $6.6 million for subordinated debt
securities issued by Signature Bank which failed in first quarter
of 2023.
Net Interest Margin and Net Interest
Income
Net interest margin for the three months and
year ended December 31, 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 of interest-earning
assets driven by the increase in market interest rates. The
increasing rate environment also has resulted in a change to
customers' banking behaviors causing them to move funds from lower
yielding interest-bearing transaction accounts to higher yielding
time deposits.
Net interest income for the fourth quarter of
2023 of $65.3 million decreased $16.3 million compared to the
fourth quarter of 2022. Net interest income of $281.7 million for
the year ended December 31, 2023 decreased from $312.6 million for
2022, a decline of $30.9 million, or 10%.
Net interest margin for the fourth quarter of
2023 of 2.52% decreased 76 basis points compared to the fourth
quarter of 2022 and declined 16 basis points compared to the third
quarter of 2023. Net interest margin for the full year of 2023 of
2.77% decreased 47 basis points compared to 3.24% for 2022.
The yield on interest-earning assets for the
fourth quarter of 2023 was 4.93% compared to 4.31% for the fourth
quarter of 2022 and 4.86% for the third quarter of 2023. The yield
on interest-earning assets for 2023 was 4.77% compared to 3.77% for
2022 resulting primarily from an increase in the yields on
interest-earning assets.
The cost of interest-bearing liabilities
increased in the fourth quarter of 2023 to 3.25% compared to 1.50%
for the fourth quarter of 2022 and 2.96% for the third quarter of
2023. The cost of interest-bearing liabilities for the year ended
December 31, 2023 was 2.74% compared to 0.80% during the same
period in 2022.
Noninterest Income
Noninterest income decreased $237,000 to
$6.8 million for the fourth quarter of 2023 from
$7.0 million for the fourth quarter of 2022. Commissions and
fees in the fourth quarter of 2023 decreased $537,000 compared to
the same period in 2022 due primarily to decreases in investment
commission income. Gain on sales of loans in the fourth quarter of
2023 increased $236,000. Gain on equity securities increased from
$11,000 in fourth quarter 2022 to $391,000 in fourth quarter
2023.
For the year ended December 31, 2023,
noninterest income decreased $3.0 million to
$25.1 million compared to 2022. Gains on sales of loans
decreased from $2.8 million in 2022 to $1.5 million in 2023
resulting from lower sale volume of residential mortgages. Service
charges on deposit accounts decreased $646,000 compared to 2022 due
primarily to decreases in interchange income as a result of the
provisions of the Durbin amendment which became effective for
Lakeland in the third quarter of 2023. Commissions and fees in 2023
decreased $1.9 million compared to 2022 due to decreases in
investment commission income and commercial loan fees. Income on
bank owned life insurance decreased $530,000 due primarily to death
benefits received during 2022. Offsetting these decreases in
noninterest income was an increase in gain (loss) on equity
securities which increased to a gain of $110,000 in 2023 from a
loss of $1.3 million in 2022.
Noninterest Expense
Noninterest expense totaled $43.0 million
for the fourth quarter of 2023, a decrease of $2.4 million
compared to the fourth quarter of 2022. Compensation and employee
benefit expense in the fourth quarter of 2023 decreased
$1.8 million, or 7%, compared to the fourth quarter of 2022 as
a result of a decline in headcount related to the anticipated
merger with Provident Financial. Data processing expense increased
$486,000 due primarily to credits received from service providers
in the fourth quarter of 2022. FDIC insurance costs increased
$660,000 in the fourth quarter of 2023 from $690,000 in the fourth
quarter of 2022 relating to Lakeland's asset size exceeding $10
billion. In the fourth quarter of 2023, merger-related costs
included $129,000 for the proposed merger with Provident Financial,
compared to $533,000 in the fourth quarter of 2022.
For the year ended December 31, 2023,
noninterest expense decreased $5.2 million to
$183.0 million compared to $188.2 million for 2022 due
primarily to merger-related expenses of $864,000 for 2023 compared
to $8.6 million in 2022. Merger-related expenses in 2022
included $4.6 million related to the Company's acquisition of 1st
Constitution Bancorp, as well as $4.0 million related to the
anticipated transaction with Provident Financial. Data processing
expense increased from $6.2 million to $7.6 million for the same
reason noted in the quarterly comparison.
Income Tax Expense
The effective tax rate for the fourth quarter of
2023 was 26.1% compared to 27.1% for the fourth quarter of 2022.
The effective tax rate for 2023 and 2022 was 23.5% and 25.4%,
respectively. The effective tax rate declined from 2022 to 2023 as
a result in a decline in pretax income and the resulting increase
of tax advantaged items as a percent of pretax income.
Financial Condition
At December 31, 2023, total assets were
$11.14 billion, an increase of $354.7 million, or 3%, compared to
December 31, 2022. For the year ended December 31, 2023,
total loans increased $477.8 million to $8.34 billion, while
investment securities decreased $184.5 million to $1.85
billion. On the funding side, total deposits increased $13.8
million, while borrowings increased $285.8 million to $1.23 billion
for the year ended December 31, 2023. At December 31,
2023, total loans as a percent of total deposits was 97.2%.
Asset Quality
At December 31, 2023, non-performing assets
increased to $26.0 million, 0.23% of total assets, compared to
$17.4 million, 0.16% of total assets, at December 31, 2022.
Non-performing assets increased $12.5 million from the linked
quarter as a result of one construction loan totaling $12.7 million
being placed in non-accrual late in fourth quarter. Non-accrual
loans as a percent of total loans increased to 0.31% at
December 31, 2023 compared to 0.22% at December 31, 2022.
At December 31, 2023, the allowance for credit losses was
$77.2 million, 0.92% of total loans compared to $70.3 million,
0.89% of total loans, at December 31, 2022. In the fourth
quarter of 2023, the Company had net charge-offs of $242,000, or
0.01% of average loans, annualized, compared to net charge-offs of
$79,000, or 0.00% of average loans, annualized, for the same period
in 2022. Provision for credit losses on loans for the fourth
quarter of 2023 was a provision of $2.2 million compared to a
provision of $1.5 million in the fourth quarter of 2022. There was
no provision for credit losses on investments for the fourth
quarter of 2023 compared to a benefit of $3.9 million for the same
period in 2022.
Capital
At December 31, 2023, stockholders' equity
increased 5% to $1.2 billion as compared to $1.1 billion at
December 31, 2022. Lakeland Bancorp remains above regulatory
“well capitalized” standards, with a Tier 1 leverage ratio of 9.27%
at December 31, 2023. Book value per common share and tangible
book value per common share were $17.98 and $13.69, respectively,
compared to $17.09 and $12.76 at December 31, 2022 (see
"Supplemental Information - Non-GAAP Financial Measures" for a
reconciliation of non-GAAP financial measures, including tangible
book value). On January 23, 2024, the Company declared a
quarterly cash dividend of $0.145 per share to be paid on
February 15, 2024, to shareholders of record as of
February 5, 2024.
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 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; 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; credit risks of the
Company’s lending and leasing activities; 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 $11.14 billion in
total assets at December 31, 2023. With an extensive branch
network and commercial lending centers throughout New Jersey and
Highland Mills, N.Y., 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 one of New Jersey's Best-In
State Banks by Forbes and Statista, 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 973-697-6140 for more
information.
Thomas J.
Shara |
Thomas F.
Splaine |
President & CEO |
EVP & CFO |
Lakeland Bancorp, Inc.Financial
Highlights(Unaudited) |
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
(dollars in thousands, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Income
Statement |
|
|
|
|
|
|
|
Net interest income |
$ |
65,308 |
|
|
$ |
81,640 |
|
|
$ |
281,681 |
|
|
$ |
312,615 |
|
(Provision) benefit for credit
losses |
|
(1,950 |
) |
|
|
2,760 |
|
|
|
(13,052 |
) |
|
|
(8,514 |
) |
Gain on sales of loans |
|
505 |
|
|
|
269 |
|
|
|
1,513 |
|
|
|
2,765 |
|
Gain (loss) on equity
securities |
|
391 |
|
|
|
11 |
|
|
|
110 |
|
|
|
(1,302 |
) |
Other noninterest income |
|
5,890 |
|
|
|
6,743 |
|
|
|
23,515 |
|
|
|
26,636 |
|
Merger-related expenses |
|
(129 |
) |
|
|
(533 |
) |
|
|
(864 |
) |
|
|
(8,606 |
) |
Other noninterest expense |
|
(42,864 |
) |
|
|
(44,837 |
) |
|
|
(182,110 |
) |
|
|
(179,602 |
) |
Pretax income |
|
27,151 |
|
|
|
46,053 |
|
|
|
110,793 |
|
|
|
143,992 |
|
Provision for income
taxes |
|
(7,083 |
) |
|
|
(12,476 |
) |
|
|
(26,053 |
) |
|
|
(36,623 |
) |
Net income |
$ |
20,068 |
|
|
$ |
33,577 |
|
|
$ |
84,740 |
|
|
$ |
107,369 |
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
$ |
0.31 |
|
|
$ |
0.51 |
|
|
$ |
1.29 |
|
|
$ |
1.64 |
|
Diluted earnings per common
share |
$ |
0.30 |
|
|
$ |
0.51 |
|
|
$ |
1.29 |
|
|
$ |
1.63 |
|
Dividends paid per common
share |
$ |
0.145 |
|
|
$ |
0.145 |
|
|
$ |
0.580 |
|
|
$ |
0.570 |
|
Weighted average shares -
basic |
|
65,064 |
|
|
|
64,854 |
|
|
|
65,039 |
|
|
|
64,624 |
|
Weighted average shares -
diluted |
|
65,258 |
|
|
|
65,222 |
|
|
|
65,217 |
|
|
|
64,918 |
|
|
|
|
|
|
|
|
|
Selected Operating
Ratios |
|
|
|
|
|
|
|
Annualized return on average
assets |
|
0.73 |
% |
|
|
1.26 |
% |
|
|
0.78 |
% |
|
|
1.04 |
% |
Annualized return on average
common equity |
|
6.97 |
% |
|
|
12.19 |
% |
|
|
7.48 |
% |
|
|
9.80 |
% |
Annualized return on average
tangible common equity (1) |
|
9.23 |
% |
|
|
16.42 |
% |
|
|
9.94 |
% |
|
|
13.17 |
% |
Annualized yield on
interest-earning assets |
|
4.93 |
% |
|
|
4.31 |
% |
|
|
4.77 |
% |
|
|
3.77 |
% |
Annualized cost of
interest-bearing liabilities |
|
3.25 |
% |
|
|
1.50 |
% |
|
|
2.74 |
% |
|
|
0.80 |
% |
Annualized net interest
spread |
|
1.68 |
% |
|
|
2.81 |
% |
|
|
2.03 |
% |
|
|
2.97 |
% |
Annualized net interest
margin |
|
2.52 |
% |
|
|
3.28 |
% |
|
|
2.77 |
% |
|
|
3.24 |
% |
Efficiency ratio (1) |
|
58.45 |
% |
|
|
49.67 |
% |
|
|
58.38 |
% |
|
|
51.79 |
% |
Stockholders' equity to total
assets |
|
|
|
|
|
10.50 |
% |
|
|
10.28 |
% |
Book value per common
share |
|
|
|
|
$ |
17.98 |
|
|
$ |
17.09 |
|
Tangible book value per common
share (1) |
|
|
|
|
$ |
13.69 |
|
|
$ |
12.76 |
|
Tangible common equity to
tangible assets (1) |
|
|
|
|
|
8.20 |
% |
|
|
7.88 |
% |
|
|
|
|
|
|
|
|
Asset Quality
Ratios |
|
|
|
|
December 31, 2023 |
|
December 31, 2022 |
Ratio of allowance for credit
losses on loans to total loans |
|
|
|
|
|
0.92 |
% |
|
|
0.89 |
% |
Non-performing loans to total
loans |
|
|
|
|
|
0.31 |
% |
|
|
0.22 |
% |
Non-performing assets to total
assets |
|
|
|
|
|
0.23 |
% |
|
|
0.16 |
% |
Net charge-offs to average
loans |
|
|
|
|
|
— |
% |
|
|
0.10 |
% |
(1) See
Supplemental Information - Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet
Data at Period End |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
Loans |
|
|
|
|
$ |
8,343,861 |
|
|
$ |
7,866,050 |
|
Allowance for credit losses on
loans |
|
|
|
|
|
77,163 |
|
|
|
70,264 |
|
Investment securities |
|
|
|
|
|
1,852,873 |
|
|
|
2,037,386 |
|
Total assets |
|
|
|
|
|
11,138,567 |
|
|
|
10,783,840 |
|
Total deposits |
|
|
|
|
|
8,581,238 |
|
|
|
8,567,471 |
|
Short-term borrowings |
|
|
|
|
|
714,152 |
|
|
|
728,797 |
|
Other borrowings |
|
|
|
|
|
519,705 |
|
|
|
219,264 |
|
Stockholders' equity |
|
|
|
|
|
1,169,369 |
|
|
|
1,108,587 |
|
Lakeland Bancorp, Inc.Financial
Highlights(Unaudited) |
|
|
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Selected Average
Balance Sheet Data |
|
|
|
|
|
|
|
Loans |
$ |
8,304,747 |
|
$ |
7,729,510 |
|
$ |
8,094,267 |
|
$ |
7,376,839 |
Investment securities |
|
1,955,407 |
|
|
2,145,252 |
|
|
2,037,915 |
|
|
2,128,870 |
Interest-earning assets |
|
10,354,079 |
|
|
9,923,173 |
|
|
10,234,821 |
|
|
9,694,234 |
Total assets |
|
10,963,641 |
|
|
10,534,884 |
|
|
10,837,396 |
|
|
10,307,245 |
Noninterest-bearing demand
deposits |
|
1,829,996 |
|
|
2,240,197 |
|
|
1,918,633 |
|
|
2,267,867 |
Savings deposits |
|
699,199 |
|
|
1,001,870 |
|
|
803,762 |
|
|
1,094,399 |
Interest-bearing transaction
accounts |
|
4,229,019 |
|
|
4,389,672 |
|
|
4,140,942 |
|
|
4,373,830 |
Time deposits |
|
1,926,436 |
|
|
1,100,911 |
|
|
1,724,672 |
|
|
922,935 |
Total deposits |
|
8,684,650 |
|
|
8,732,650 |
|
|
8,588,009 |
|
|
8,659,031 |
Short-term borrowings |
|
423,629 |
|
|
311,875 |
|
|
649,551 |
|
|
197,557 |
Other borrowings |
|
519,635 |
|
|
219,202 |
|
|
298,379 |
|
|
218,811 |
Total interest-bearing
liabilities |
|
7,797,918 |
|
|
7,023,530 |
|
|
7,617,306 |
|
|
6,807,532 |
Stockholders' equity |
|
1,142,031 |
|
|
1,092,720 |
|
|
1,132,656 |
|
|
1,095,861 |
|
Lakeland Bancorp, Inc.Consolidated Statements of
Income(Unaudited) |
|
|
|
|
|
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
(in thousands,
except per share amounts) |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Interest
Income |
|
|
|
|
|
|
|
|
Loans and
fees |
|
$ |
114,678 |
|
$ |
95,295 |
|
|
$ |
432,038 |
|
$ |
325,001 |
|
Federal funds sold
and interest-bearing deposits with banks |
|
|
1,293 |
|
|
449 |
|
|
|
5,309 |
|
|
1,295 |
|
Taxable investment
securities and other |
|
|
11,905 |
|
|
10,769 |
|
|
|
47,476 |
|
|
35,352 |
|
Tax exempt
investment securities |
|
|
1,450 |
|
|
1,666 |
|
|
|
6,215 |
|
|
5,895 |
|
|
Total Interest Income |
|
|
129,326 |
|
|
108,179 |
|
|
|
491,038 |
|
|
367,543 |
|
Interest
Expense |
|
|
|
|
|
|
|
|
Deposits |
|
|
52,175 |
|
|
21,767 |
|
|
|
163,095 |
|
|
44,253 |
|
Federal funds purchased and securities sold under agreements to
repurchase |
|
|
5,791 |
|
|
2,771 |
|
|
|
33,564 |
|
|
3,658 |
|
Other
borrowings |
|
|
6,052 |
|
|
2,001 |
|
|
|
12,698 |
|
|
7,017 |
|
|
Total Interest
Expense |
|
|
64,018 |
|
|
26,539 |
|
|
|
209,357 |
|
|
54,928 |
|
Net Interest Income |
|
|
65,308 |
|
|
81,640 |
|
|
|
281,681 |
|
|
312,615 |
|
Provision
(benefit) for credit losses |
|
|
1,950 |
|
|
(2,760 |
) |
|
|
13,052 |
|
|
8,514 |
|
|
Net Interest Income
after Provision (Benefit) for Credit Losses |
|
|
63,358 |
|
|
84,400 |
|
|
|
268,629 |
|
|
304,101 |
|
Noninterest Income |
|
|
|
|
|
|
|
|
Service charges on
deposit accounts |
|
|
2,710 |
|
|
2,840 |
|
|
|
10,339 |
|
|
10,985 |
|
Commissions and
fees |
|
|
1,706 |
|
|
2,243 |
|
|
|
7,225 |
|
|
9,116 |
|
Income on bank
owned life insurance |
|
|
837 |
|
|
862 |
|
|
|
3,450 |
|
|
3,980 |
|
Gain (loss) on
equity securities |
|
|
391 |
|
|
11 |
|
|
|
110 |
|
|
(1,302 |
) |
Gain on sales of
loans |
|
|
505 |
|
|
269 |
|
|
|
1,513 |
|
|
2,765 |
|
Swap income |
|
|
482 |
|
|
466 |
|
|
|
1,596 |
|
|
1,576 |
|
Other income |
|
|
155 |
|
|
332 |
|
|
|
905 |
|
|
979 |
|
|
Total Noninterest Income |
|
|
6,786 |
|
|
7,023 |
|
|
|
25,138 |
|
|
28,099 |
|
Noninterest Expense |
|
|
|
|
|
|
|
|
Compensation and
employee benefits |
|
|
25,137 |
|
|
26,914 |
|
|
|
108,874 |
|
|
108,167 |
|
Premises and
equipment |
|
|
7,447 |
|
|
7,657 |
|
|
|
31,304 |
|
|
30,882 |
|
FDIC
insurance |
|
|
1,350 |
|
|
690 |
|
|
|
5,294 |
|
|
2,724 |
|
Data
processing |
|
|
1,744 |
|
|
1,258 |
|
|
|
7,563 |
|
|
6,238 |
|
Merger-related
expenses |
|
|
129 |
|
|
533 |
|
|
|
864 |
|
|
8,606 |
|
Other operating
expenses |
|
|
7,186 |
|
|
8,318 |
|
|
|
29,075 |
|
|
31,591 |
|
|
Total Noninterest
Expense |
|
|
42,993 |
|
|
45,370 |
|
|
|
182,974 |
|
|
188,208 |
|
Income before provision for income taxes |
|
|
27,151 |
|
|
46,053 |
|
|
|
110,793 |
|
|
143,992 |
|
Provision for
income taxes |
|
|
7,083 |
|
|
12,476 |
|
|
|
26,053 |
|
|
36,623 |
|
Net
Income |
|
$ |
20,068 |
|
$ |
33,577 |
|
|
$ |
84,740 |
|
$ |
107,369 |
|
Per Share
of Common Stock |
|
|
|
|
|
|
|
|
Basic earnings |
|
$ |
0.31 |
|
$ |
0.51 |
|
|
$ |
1.29 |
|
$ |
1.64 |
|
Diluted earnings |
|
$ |
0.30 |
|
$ |
0.51 |
|
|
$ |
1.29 |
|
$ |
1.63 |
|
Dividends |
|
$ |
0.145 |
|
$ |
0.145 |
|
|
$ |
0.580 |
|
$ |
0.570 |
|
Lakeland Bancorp, Inc.Consolidated Balance
Sheets |
|
(dollars in thousands) |
|
December 31, 2023 |
|
December 31, 2022 |
|
|
(Unaudited) |
|
|
Assets |
|
|
|
|
Cash |
|
$ |
293,366 |
|
|
$ |
223,299 |
|
Interest-bearing deposits due
from banks |
|
|
27,289 |
|
|
|
12,651 |
|
Total cash and cash equivalents |
|
|
320,655 |
|
|
|
235,950 |
|
Investment securities
available for sale, at estimated fair value (allowance for credit
losses of $0 at December 31, 2023 and $310 at
December 31, 2022) |
|
|
946,282 |
|
|
|
1,054,312 |
|
Investment securities held to
maturity (estimated fair value of $702,563 at December 31,
2023 and $760,455 at December 31, 2022, allowance for credit
losses of $146 at December 31, 2023 and $107 at
December 31, 2022) |
|
|
836,377 |
|
|
|
923,308 |
|
Equity securities, at fair
value |
|
|
17,697 |
|
|
|
17,283 |
|
Federal Home Loan Bank and
other membership stocks, at cost |
|
|
52,517 |
|
|
|
42,483 |
|
Loans held for sale |
|
|
664 |
|
|
|
536 |
|
Loans, net of deferred
fees |
|
|
8,343,861 |
|
|
|
7,866,050 |
|
Less: Allowance for credit losses |
|
|
77,163 |
|
|
|
70,264 |
|
Net loans |
|
|
8,266,698 |
|
|
|
7,795,786 |
|
Premises and equipment,
net |
|
|
52,846 |
|
|
|
55,429 |
|
Operating lease right-of-use
assets |
|
|
16,008 |
|
|
|
20,052 |
|
Accrued interest
receivable |
|
|
37,508 |
|
|
|
33,374 |
|
Goodwill |
|
|
271,829 |
|
|
|
271,829 |
|
Other identifiable intangible
assets |
|
|
7,058 |
|
|
|
9,088 |
|
Bank owned life insurance |
|
|
159,862 |
|
|
|
156,985 |
|
Other assets |
|
|
152,566 |
|
|
|
167,425 |
|
Total Assets |
|
$ |
11,138,567 |
|
|
$ |
10,783,840 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
Liabilities |
|
|
|
|
Deposits: |
|
|
|
|
Noninterest-bearing |
|
$ |
1,781,619 |
|
|
$ |
2,113,289 |
|
Savings and interest-bearing
transaction accounts |
|
|
4,832,171 |
|
|
|
5,246,005 |
|
Time deposits $250 thousand
and under |
|
|
1,458,640 |
|
|
|
901,505 |
|
Time deposits over $250
thousand |
|
|
508,808 |
|
|
|
306,672 |
|
Total deposits |
|
|
8,581,238 |
|
|
|
8,567,471 |
|
Federal funds purchased and
securities sold under agreements to repurchase |
|
|
714,152 |
|
|
|
728,797 |
|
Other borrowings |
|
|
325,000 |
|
|
|
25,000 |
|
Subordinated debentures |
|
|
194,705 |
|
|
|
194,264 |
|
Operating lease
liabilities |
|
|
16,891 |
|
|
|
21,449 |
|
Other liabilities |
|
|
137,212 |
|
|
|
138,272 |
|
Total Liabilities |
|
|
9,969,198 |
|
|
|
9,675,253 |
|
Stockholders' Equity |
|
|
|
|
Common stock, no par value;
authorized 100,000,000 shares; issued 65,161,310 shares and
outstanding 65,030,275 shares at December 31, 2023 and issued
65,002,738 shares and outstanding 64,871,703 shares at
December 31, 2022 |
|
|
858,857 |
|
|
|
855,425 |
|
Retained earnings |
|
|
376,044 |
|
|
|
329,375 |
|
Treasury shares, at cost,
131,035 shares at December 31, 2023 and December 31,
2022 |
|
|
(1,452 |
) |
|
|
(1,452 |
) |
Accumulated other
comprehensive (loss) income |
|
|
(64,080 |
) |
|
|
(74,761 |
) |
Total Stockholders' Equity |
|
|
1,169,369 |
|
|
|
1,108,587 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
11,138,567 |
|
|
$ |
10,783,840 |
|
Lakeland Bancorp, Inc.Financial
Highlights(Unaudited) |
|
|
|
For the Quarter Ended |
(dollars in thousands, except
per share data) |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
Income
Statement |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
65,308 |
|
|
$ |
68,906 |
|
|
$ |
71,542 |
|
|
$ |
75,925 |
|
|
$ |
81,640 |
|
(Provision) benefit for credit
losses |
|
|
(1,950 |
) |
|
|
(1,262 |
) |
|
|
(1,947 |
) |
|
|
(7,893 |
) |
|
|
2,760 |
|
Gain on sales of loans |
|
|
505 |
|
|
|
349 |
|
|
|
229 |
|
|
|
430 |
|
|
|
269 |
|
Gain (loss) on equity
securities |
|
|
391 |
|
|
|
(294 |
) |
|
|
(135 |
) |
|
|
148 |
|
|
|
11 |
|
Other noninterest income |
|
|
5,890 |
|
|
|
5,363 |
|
|
|
6,575 |
|
|
|
5,687 |
|
|
|
6,743 |
|
Merger-related expenses |
|
|
(129 |
) |
|
|
(198 |
) |
|
|
(242 |
) |
|
|
(295 |
) |
|
|
(533 |
) |
Other noninterest expense |
|
|
(42,864 |
) |
|
|
(44,170 |
) |
|
|
(46,766 |
) |
|
|
(48,310 |
) |
|
|
(44,837 |
) |
Pretax income |
|
|
27,151 |
|
|
|
28,694 |
|
|
|
29,256 |
|
|
|
25,692 |
|
|
|
46,053 |
|
Provision for income
taxes |
|
|
(7,083 |
) |
|
|
(6,455 |
) |
|
|
(6,628 |
) |
|
|
(5,887 |
) |
|
|
(12,476 |
) |
Net income |
|
$ |
20,068 |
|
|
$ |
22,239 |
|
|
$ |
22,628 |
|
|
$ |
19,805 |
|
|
$ |
33,577 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
|
$ |
0.31 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.30 |
|
|
$ |
0.51 |
|
Diluted earnings per common
share |
|
$ |
0.30 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.30 |
|
|
$ |
0.51 |
|
Dividends paid per common
share |
|
$ |
0.145 |
|
|
$ |
0.145 |
|
|
$ |
0.145 |
|
|
$ |
0.145 |
|
|
$ |
0.145 |
|
Dividends paid |
|
$ |
9,521 |
|
|
$ |
9,521 |
|
|
$ |
9,529 |
|
|
$ |
9,500 |
|
|
$ |
9,505 |
|
Weighted average shares -
basic |
|
|
65,064 |
|
|
|
65,064 |
|
|
|
65,059 |
|
|
|
64,966 |
|
|
|
64,854 |
|
Weighted average shares -
diluted |
|
|
65,258 |
|
|
|
65,222 |
|
|
|
65,173 |
|
|
|
65,228 |
|
|
|
65,222 |
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Ratios |
|
|
|
|
|
|
|
|
|
|
Annualized return on average
assets |
|
|
0.73 |
% |
|
|
0.81 |
% |
|
|
0.84 |
% |
|
|
0.75 |
% |
|
|
1.26 |
% |
Annualized return on average
common equity |
|
|
6.97 |
% |
|
|
7.76 |
% |
|
|
8.03 |
% |
|
|
7.17 |
% |
|
|
12.19 |
% |
Annualized return on average
tangible common equity (1) |
|
|
9.23 |
% |
|
|
10.29 |
% |
|
|
10.67 |
% |
|
|
9.57 |
% |
|
|
16.42 |
% |
Annualized net interest
margin |
|
|
2.52 |
% |
|
|
2.68 |
% |
|
|
2.83 |
% |
|
|
3.07 |
% |
|
|
3.28 |
% |
Efficiency ratio (1) |
|
|
58.45 |
% |
|
|
58.43 |
% |
|
|
58.82 |
% |
|
|
57.84 |
% |
|
|
49.67 |
% |
Common stockholders' equity to
total assets |
|
|
10.50 |
% |
|
|
10.16 |
% |
|
|
10.38 |
% |
|
|
10.40 |
% |
|
|
10.28 |
% |
Tangible common equity to
tangible assets (1) |
|
|
8.20 |
% |
|
|
7.86 |
% |
|
|
8.02 |
% |
|
|
8.02 |
% |
|
|
7.88 |
% |
Tier 1 risk-based ratio |
|
|
11.51 |
% |
|
|
11.31 |
% |
|
|
11.43 |
% |
|
|
11.33 |
% |
|
|
11.24 |
% |
Total risk-based ratio |
|
|
14.11 |
% |
|
|
13.87 |
% |
|
|
14.03 |
% |
|
|
13.93 |
% |
|
|
13.83 |
% |
Tier 1 leverage ratio |
|
|
9.27 |
% |
|
|
9.24 |
% |
|
|
9.17 |
% |
|
|
9.13 |
% |
|
|
9.16 |
% |
Common equity tier 1 capital
ratio |
|
|
11.00 |
% |
|
|
10.80 |
% |
|
|
10.90 |
% |
|
|
10.81 |
% |
|
|
10.71 |
% |
Book value per common
share |
|
$ |
17.98 |
|
|
$ |
17.46 |
|
|
$ |
17.40 |
|
|
$ |
17.33 |
|
|
$ |
17.09 |
|
Tangible book value per common
share (1) |
|
$ |
13.69 |
|
|
$ |
13.17 |
|
|
$ |
13.10 |
|
|
$ |
13.01 |
|
|
$ |
12.76 |
|
(1) See Supplemental Information - Non-GAAP Financial
Measures
Lakeland Bancorp, Inc.Financial
Highlights(Unaudited) |
|
|
|
For the Quarter Ended |
(dollars in thousands) |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
Selected
Balance Sheet Data at Period End |
|
|
|
|
|
|
|
|
Loans |
|
$ |
8,343,861 |
|
|
$ |
8,294,057 |
|
|
$ |
8,101,287 |
|
|
$ |
7,952,553 |
|
|
$ |
7,866,050 |
|
Allowance for credit losses on
loans |
|
|
77,163 |
|
|
|
75,159 |
|
|
|
73,965 |
|
|
|
71,403 |
|
|
|
70,264 |
|
Investment securities |
|
|
1,852,873 |
|
|
|
1,860,996 |
|
|
|
1,938,611 |
|
|
|
1,994,927 |
|
|
|
2,037,386 |
|
Total assets |
|
|
11,138,567 |
|
|
|
11,176,809 |
|
|
|
10,897,966 |
|
|
|
10,837,241 |
|
|
|
10,783,840 |
|
Total deposits |
|
|
8,581,238 |
|
|
|
8,602,503 |
|
|
|
8,444,681 |
|
|
|
8,536,943 |
|
|
|
8,567,471 |
|
Short-term borrowings |
|
|
714,152 |
|
|
|
728,769 |
|
|
|
938,718 |
|
|
|
813,328 |
|
|
|
728,797 |
|
Other borrowings |
|
|
519,705 |
|
|
|
519,596 |
|
|
|
219,486 |
|
|
|
219,376 |
|
|
|
219,264 |
|
Stockholders' equity |
|
|
1,169,369 |
|
|
|
1,135,627 |
|
|
|
1,131,702 |
|
|
|
1,126,580 |
|
|
|
1,108,587 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
|
|
|
|
|
|
|
Non owner occupied
commercial |
|
$ |
2,987,959 |
|
|
$ |
2,980,811 |
|
|
$ |
2,991,124 |
|
|
$ |
2,943,897 |
|
|
$ |
2,906,014 |
|
Owner occupied commercial |
|
|
1,283,221 |
|
|
|
1,299,977 |
|
|
|
1,201,049 |
|
|
|
1,205,635 |
|
|
|
1,246,189 |
|
Multifamily |
|
|
1,408,905 |
|
|
|
1,361,628 |
|
|
|
1,314,255 |
|
|
|
1,275,771 |
|
|
|
1,260,814 |
|
Non owner occupied
residential |
|
|
213,986 |
|
|
|
208,560 |
|
|
|
205,818 |
|
|
|
210,203 |
|
|
|
218,026 |
|
Commercial, industrial and
other |
|
|
638,507 |
|
|
|
632,531 |
|
|
|
594,401 |
|
|
|
562,287 |
|
|
|
606,276 |
|
Paycheck Protection
Program |
|
|
387 |
|
|
|
388 |
|
|
|
389 |
|
|
|
390 |
|
|
|
435 |
|
Construction |
|
|
302,745 |
|
|
|
333,998 |
|
|
|
354,918 |
|
|
|
404,994 |
|
|
|
380,100 |
|
Equipment finance |
|
|
179,171 |
|
|
|
174,946 |
|
|
|
173,469 |
|
|
|
161,889 |
|
|
|
151,575 |
|
Residential mortgages |
|
|
985,768 |
|
|
|
956,535 |
|
|
|
922,109 |
|
|
|
857,427 |
|
|
|
765,552 |
|
Consumer and home equity |
|
|
343,212 |
|
|
|
344,683 |
|
|
|
343,755 |
|
|
|
330,060 |
|
|
|
331,069 |
|
Total loans |
|
$ |
8,343,861 |
|
|
$ |
8,294,057 |
|
|
$ |
8,101,287 |
|
|
$ |
7,952,553 |
|
|
$ |
7,866,050 |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
1,781,619 |
|
|
$ |
1,857,324 |
|
|
$ |
1,866,252 |
|
|
$ |
1,998,590 |
|
|
$ |
2,113,289 |
|
Savings and interest-bearing
transaction accounts |
|
|
4,832,171 |
|
|
|
4,862,246 |
|
|
|
4,775,184 |
|
|
|
4,918,041 |
|
|
|
5,246,005 |
|
Time deposits |
|
|
1,967,448 |
|
|
|
1,882,933 |
|
|
|
1,803,245 |
|
|
|
1,620,312 |
|
|
|
1,208,177 |
|
Total deposits |
|
$ |
8,581,238 |
|
|
$ |
8,602,503 |
|
|
$ |
8,444,681 |
|
|
$ |
8,536,943 |
|
|
$ |
8,567,471 |
|
|
|
|
|
|
|
|
|
|
|
|
Total loans to total deposits
ratio |
|
|
97.2 |
% |
|
|
96.4 |
% |
|
|
95.9 |
% |
|
|
93.2 |
% |
|
|
91.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Selected Average
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
8,304,747 |
|
|
$ |
8,167,362 |
|
|
$ |
7,999,285 |
|
|
$ |
7,900,426 |
|
|
$ |
7,729,510 |
|
Investment securities |
|
|
1,955,407 |
|
|
|
2,013,153 |
|
|
|
2,068,073 |
|
|
|
2,117,076 |
|
|
|
2,145,252 |
|
Interest-earning assets |
|
|
10,354,079 |
|
|
|
10,276,375 |
|
|
|
10,214,142 |
|
|
|
10,091,341 |
|
|
|
9,923,173 |
|
Total assets |
|
|
10,963,641 |
|
|
|
10,875,553 |
|
|
|
10,808,261 |
|
|
|
10,698,807 |
|
|
|
10,534,884 |
|
Noninterest-bearing demand
deposits |
|
|
1,829,996 |
|
|
|
1,871,516 |
|
|
|
1,935,776 |
|
|
|
2,040,070 |
|
|
|
2,240,197 |
|
Savings deposits |
|
|
699,199 |
|
|
|
759,232 |
|
|
|
830,836 |
|
|
|
928,796 |
|
|
|
1,001,870 |
|
Interest-bearing transaction
accounts |
|
|
4,229,019 |
|
|
|
4,103,217 |
|
|
|
4,007,867 |
|
|
|
4,224,024 |
|
|
|
4,389,672 |
|
Time deposits |
|
|
1,926,436 |
|
|
|
1,856,266 |
|
|
|
1,722,935 |
|
|
|
1,385,661 |
|
|
|
1,100,911 |
|
Total deposits |
|
|
8,684,650 |
|
|
|
8,590,231 |
|
|
|
8,497,414 |
|
|
|
8,578,551 |
|
|
|
8,732,650 |
|
Short-term borrowings |
|
|
423,629 |
|
|
|
744,582 |
|
|
|
813,471 |
|
|
|
617,611 |
|
|
|
311,875 |
|
Other borrowings |
|
|
519,635 |
|
|
|
232,573 |
|
|
|
219,425 |
|
|
|
219,308 |
|
|
|
219,202 |
|
Total interest-bearing
liabilities |
|
|
7,797,918 |
|
|
|
7,695,870 |
|
|
|
7,594,534 |
|
|
|
7,375,400 |
|
|
|
7,023,530 |
|
Stockholders' equity |
|
|
1,142,031 |
|
|
|
1,137,387 |
|
|
|
1,130,563 |
|
|
|
1,120,356 |
|
|
|
1,092,720 |
|
Lakeland Bancorp, Inc.Financial
Highlights(Unaudited) |
|
|
|
For the Quarter Ended |
(dollars in thousands) |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
Average
Annualized Yields (Taxable Equivalent Basis) and
Costs |
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
5.48 |
% |
|
|
5.42 |
% |
|
|
5.22 |
% |
|
|
5.10 |
% |
|
|
4.84 |
% |
Taxable investment securities
and other |
|
|
2.87 |
% |
|
|
2.84 |
% |
|
|
2.74 |
% |
|
|
2.61 |
% |
|
|
2.41 |
% |
Tax-exempt securities |
|
|
2.49 |
% |
|
|
2.49 |
% |
|
|
2.45 |
% |
|
|
2.41 |
% |
|
|
2.36 |
% |
Federal funds sold and
interest-bearing cash accounts |
|
|
5.46 |
% |
|
|
5.41 |
% |
|
|
5.41 |
% |
|
|
4.00 |
% |
|
|
3.68 |
% |
Total interest-earning assets |
|
|
4.93 |
% |
|
|
4.86 |
% |
|
|
4.71 |
% |
|
|
4.56 |
% |
|
|
4.31 |
% |
Liabilities |
|
|
|
|
|
|
|
|
|
|
Savings accounts |
|
|
0.20 |
% |
|
|
0.24 |
% |
|
|
0.26 |
% |
|
|
0.28 |
% |
|
|
0.29 |
% |
Interest-bearing transaction
accounts |
|
|
2.89 |
% |
|
|
2.60 |
% |
|
|
2.16 |
% |
|
|
1.85 |
% |
|
|
1.46 |
% |
Time deposits |
|
|
4.34 |
% |
|
|
3.78 |
% |
|
|
3.39 |
% |
|
|
2.71 |
% |
|
|
1.77 |
% |
Borrowings |
|
|
4.91 |
% |
|
|
5.04 |
% |
|
|
4.80 |
% |
|
|
4.46 |
% |
|
|
3.52 |
% |
Total interest-bearing liabilities |
|
|
3.25 |
% |
|
|
2.96 |
% |
|
|
2.59 |
% |
|
|
2.11 |
% |
|
|
1.50 |
% |
Net interest spread (taxable
equivalent basis) |
|
|
1.68 |
% |
|
|
1.90 |
% |
|
|
2.12 |
% |
|
|
2.45 |
% |
|
|
2.81 |
% |
Annualized net interest margin
(taxable equivalent basis) |
|
|
2.52 |
% |
|
|
2.68 |
% |
|
|
2.83 |
% |
|
|
3.07 |
% |
|
|
3.28 |
% |
Annualized cost of
deposits |
|
|
2.38 |
% |
|
|
2.08 |
% |
|
|
1.73 |
% |
|
|
1.38 |
% |
|
|
0.99 |
% |
Asset Quality
Data |
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses on
Loans |
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
|
$ |
75,159 |
|
|
$ |
73,965 |
|
|
$ |
71,403 |
|
|
$ |
70,264 |
|
|
$ |
68,879 |
|
Provision for credit losses on
loans |
|
|
2,246 |
|
|
|
1,327 |
|
|
|
2,422 |
|
|
|
1,213 |
|
|
|
1,464 |
|
Charge-offs |
|
|
(265 |
) |
|
|
(217 |
) |
|
|
(148 |
) |
|
|
(139 |
) |
|
|
(138 |
) |
Recoveries |
|
|
23 |
|
|
|
84 |
|
|
|
288 |
|
|
|
65 |
|
|
|
59 |
|
Balance at end of period |
|
$ |
77,163 |
|
|
$ |
75,159 |
|
|
$ |
73,965 |
|
|
$ |
71,403 |
|
|
$ |
70,264 |
|
Net Loan Charge-Offs
(Recoveries) |
|
|
|
|
|
|
|
|
|
|
Non owner occupied
commercial |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Owner occupied commercial |
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
|
|
— |
|
Multifamily |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non owner occupied
residential |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial, industrial and
other |
|
|
(7 |
) |
|
|
— |
|
|
|
(163 |
) |
|
|
(35 |
) |
|
|
(24 |
) |
Construction |
|
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
— |
|
Equipment finance |
|
|
83 |
|
|
|
136 |
|
|
|
12 |
|
|
|
46 |
|
|
|
51 |
|
Residential mortgages |
|
|
128 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer and home equity |
|
|
38 |
|
|
|
(3 |
) |
|
|
4 |
|
|
|
63 |
|
|
|
52 |
|
Net (recoveries) charge-offs |
|
$ |
242 |
|
|
$ |
133 |
|
|
$ |
(140 |
) |
|
$ |
74 |
|
|
$ |
79 |
|
Lakeland Bancorp, Inc.Financial
Highlights(Unaudited) |
|
|
|
For the Quarter Ended |
(dollars in thousands) |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
Non-Performing
Assets |
|
|
|
|
|
|
|
|
|
|
Non owner occupied commercial |
|
$ |
769 |
|
|
$ |
798 |
|
|
$ |
864 |
|
|
$ |
908 |
|
|
$ |
618 |
|
Owner occupied commercial |
|
|
6,849 |
|
|
|
7,026 |
|
|
|
8,076 |
|
|
|
8,757 |
|
|
|
9,439 |
|
Multifamily |
|
|
1,096 |
|
|
|
1,106 |
|
|
|
266 |
|
|
|
584 |
|
|
|
— |
|
Non owner occupied
residential |
|
|
— |
|
|
|
— |
|
|
|
41 |
|
|
|
— |
|
|
|
441 |
|
Commercial, industrial and
other |
|
|
401 |
|
|
|
217 |
|
|
|
1,737 |
|
|
|
2,221 |
|
|
|
2,978 |
|
Construction |
|
|
12,698 |
|
|
|
— |
|
|
|
— |
|
|
|
980 |
|
|
|
980 |
|
Equipment financing |
|
|
518 |
|
|
|
626 |
|
|
|
644 |
|
|
|
379 |
|
|
|
114 |
|
Residential mortgages |
|
|
2,400 |
|
|
|
2,319 |
|
|
|
1,954 |
|
|
|
1,918 |
|
|
|
2,011 |
|
Consumer and home equity |
|
|
1,232 |
|
|
|
1,331 |
|
|
|
2,486 |
|
|
|
1,131 |
|
|
|
781 |
|
Total non-accrual loans |
|
|
25,963 |
|
|
|
13,423 |
|
|
|
16,068 |
|
|
|
16,878 |
|
|
|
17,362 |
|
Total non-performing assets |
|
$ |
25,963 |
|
|
$ |
13,423 |
|
|
$ |
16,068 |
|
|
$ |
16,878 |
|
|
$ |
17,362 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90 days or more
and still accruing |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Loans restructured and still
accruing |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,640 |
|
Ratio of allowance for credit
losses on loans to total loans |
|
|
0.92 |
% |
|
|
0.91 |
% |
|
|
0.91 |
% |
|
|
0.90 |
% |
|
|
0.89 |
% |
Total non-accrual loans to
total loans |
|
|
0.31 |
% |
|
|
0.16 |
% |
|
|
0.20 |
% |
|
|
0.21 |
% |
|
|
0.22 |
% |
Total non-performing assets to
total assets |
|
|
0.23 |
% |
|
|
0.12 |
% |
|
|
0.15 |
% |
|
|
0.16 |
% |
|
|
0.16 |
% |
Annualized net (recoveries)
charge-offs to average loans |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
(0.01) |
% |
|
|
— |
% |
|
|
— |
% |
Lakeland Bancorp, Inc.Supplemental Information -
Non-GAAP Financial Measures(Unaudited) |
|
|
|
At or for the Quarter Ended |
(dollars in thousands, except
per share amounts) |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
Calculation of Tangible Book Value Per Common
Share |
|
|
|
|
|
|
|
|
Total common stockholders' equity at end of period - GAAP |
|
$ |
1,169,369 |
|
|
$ |
1,135,627 |
|
|
$ |
1,131,702 |
|
|
$ |
1,126,580 |
|
|
$ |
1,108,587 |
|
Less: Goodwill |
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
Less: Other identifiable
intangible assets |
|
|
7,058 |
|
|
|
7,559 |
|
|
|
8,060 |
|
|
|
8,572 |
|
|
|
9,088 |
|
Total tangible common
stockholders' equity at end of period - Non-GAAP |
|
$ |
890,482 |
|
|
$ |
856,239 |
|
|
$ |
851,813 |
|
|
$ |
846,179 |
|
|
$ |
827,670 |
|
Shares outstanding at end of
period |
|
|
65,030 |
|
|
|
65,030 |
|
|
|
65,028 |
|
|
|
65,017 |
|
|
|
64,872 |
|
Book value per share -
GAAP |
|
$ |
17.98 |
|
|
$ |
17.46 |
|
|
$ |
17.40 |
|
|
$ |
17.33 |
|
|
$ |
17.09 |
|
Tangible book value per share
- Non-GAAP |
|
$ |
13.69 |
|
|
$ |
13.17 |
|
|
$ |
13.10 |
|
|
$ |
13.01 |
|
|
$ |
12.76 |
|
Calculation of Tangible Common Equity to Tangible
Assets |
|
|
|
|
|
|
|
|
Total tangible common
stockholders' equity at end of period - Non-GAAP |
|
$ |
890,482 |
|
|
$ |
856,239 |
|
|
$ |
851,813 |
|
|
$ |
846,179 |
|
|
$ |
827,670 |
|
Total assets at end of period
- GAAP |
|
$ |
11,138,567 |
|
|
$ |
11,176,809 |
|
|
$ |
10,897,966 |
|
|
$ |
10,837,241 |
|
|
$ |
10,783,840 |
|
Less: Goodwill |
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
Less: Other identifiable
intangible assets |
|
|
7,058 |
|
|
|
7,559 |
|
|
|
8,060 |
|
|
|
8,572 |
|
|
|
9,088 |
|
Total tangible assets at end of period - Non-GAAP |
|
$ |
10,859,680 |
|
|
$ |
10,897,421 |
|
|
$ |
10,618,077 |
|
|
$ |
10,556,840 |
|
|
$ |
10,502,923 |
|
Common equity to assets -
GAAP |
|
|
10.50 |
% |
|
|
10.16 |
% |
|
|
10.38 |
% |
|
|
10.40 |
% |
|
|
10.28 |
% |
Tangible common equity to
tangible assets - Non-GAAP |
|
|
8.20 |
% |
|
|
7.86 |
% |
|
|
8.02 |
% |
|
|
8.02 |
% |
|
|
7.88 |
% |
Calculation of Return on Average Tangible Common
Equity |
|
|
|
|
|
|
|
|
Net income - GAAP |
|
$ |
20,068 |
|
|
$ |
22,239 |
|
|
$ |
22,628 |
|
|
$ |
19,805 |
|
|
$ |
33,577 |
|
Total average common
stockholders' equity - GAAP |
|
$ |
1,142,031 |
|
|
$ |
1,137,387 |
|
|
$ |
1,130,563 |
|
|
$ |
1,120,356 |
|
|
$ |
1,092,720 |
|
Less: Average goodwill |
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
|
|
271,829 |
|
Less: Average other
identifiable intangible assets |
|
|
7,383 |
|
|
|
7,887 |
|
|
|
8,353 |
|
|
|
8,904 |
|
|
|
9,386 |
|
Total average tangible common
stockholders' equity - Non-GAAP |
|
$ |
862,819 |
|
|
$ |
857,671 |
|
|
$ |
850,381 |
|
|
$ |
839,623 |
|
|
$ |
811,505 |
|
Return on average common
stockholders' equity - GAAP |
|
|
6.97 |
% |
|
|
7.76 |
% |
|
|
8.03 |
% |
|
|
7.17 |
% |
|
|
12.19 |
% |
Return on average tangible
common stockholders' equity - Non-GAAP |
|
|
9.23 |
% |
|
|
10.29 |
% |
|
|
10.67 |
% |
|
|
9.57 |
% |
|
|
16.42 |
% |
Calculation of
Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
$ |
42,993 |
|
|
$ |
44,368 |
|
|
$ |
47,008 |
|
|
$ |
48,605 |
|
|
$ |
45,370 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
Amortization of core deposit intangibles |
|
|
500 |
|
|
|
501 |
|
|
|
512 |
|
|
|
516 |
|
|
|
581 |
|
Merger-related expenses |
|
|
129 |
|
|
|
198 |
|
|
|
242 |
|
|
|
295 |
|
|
|
533 |
|
Noninterest expense, as
adjusted |
|
$ |
42,364 |
|
|
$ |
43,669 |
|
|
$ |
46,254 |
|
|
$ |
47,794 |
|
|
$ |
44,256 |
|
Net interest income |
|
$ |
65,308 |
|
|
$ |
68,906 |
|
|
$ |
71,542 |
|
|
$ |
75,925 |
|
|
$ |
81,640 |
|
Total noninterest income |
|
|
6,786 |
|
|
|
5,418 |
|
|
|
6,669 |
|
|
|
6,265 |
|
|
|
7,023 |
|
Total revenue |
|
$ |
72,094 |
|
|
$ |
74,324 |
|
|
$ |
78,211 |
|
|
$ |
82,190 |
|
|
$ |
88,663 |
|
Tax-equivalent adjustment on
municipal securities |
|
|
385 |
|
|
|
408 |
|
|
|
422 |
|
|
|
436 |
|
|
|
443 |
|
Total revenue, as
adjusted |
|
$ |
72,479 |
|
|
$ |
74,732 |
|
|
$ |
78,633 |
|
|
$ |
82,626 |
|
|
$ |
89,106 |
|
Efficiency ratio -
Non-GAAP |
|
|
58.45 |
% |
|
|
58.43 |
% |
|
|
58.82 |
% |
|
|
57.84 |
% |
|
|
49.67 |
% |
Lakeland Bancorp, Inc.Supplemental Information -
Non-GAAP Financial Measures(Unaudited) |
|
|
|
For the Twelve Months Ended December 31, |
(dollars in thousands) |
|
|
2023 |
|
|
|
2022 |
|
Calculation of Return
on Average Tangible Common Equity |
|
|
|
|
Net income - GAAP |
|
$ |
84,740 |
|
|
$ |
107,369 |
|
Total average common
stockholders' equity - GAAP |
|
$ |
1,132,656 |
|
|
$ |
1,095,861 |
|
Less: Average goodwill |
|
|
271,829 |
|
|
|
270,246 |
|
Less: Average other
identifiable intangible assets |
|
|
8,127 |
|
|
|
10,192 |
|
Total average tangible common
stockholders' equity - Non-GAAP |
|
$ |
852,700 |
|
|
$ |
815,423 |
|
Return on average common
stockholders' equity - GAAP |
|
|
7.48 |
% |
|
|
9.80 |
% |
Return on average tangible
common stockholders' equity - Non-GAAP |
|
|
9.94 |
% |
|
|
13.17 |
% |
Calculation of
Efficiency Ratio |
|
|
|
|
Total noninterest expense |
|
$ |
182,974 |
|
|
$ |
188,208 |
|
Less: |
|
|
|
|
Amortization of core deposit intangibles |
|
|
2,029 |
|
|
|
2,351 |
|
Merger-related expenses |
|
|
864 |
|
|
|
8,606 |
|
Noninterest expense, as
adjusted |
|
$ |
180,081 |
|
|
$ |
177,251 |
|
Net interest income |
|
$ |
281,681 |
|
|
$ |
312,615 |
|
Noninterest income |
|
|
25,138 |
|
|
|
28,099 |
|
Total revenue |
|
$ |
306,819 |
|
|
$ |
340,714 |
|
Tax-equivalent adjustment on
municipal securities |
|
|
1,652 |
|
|
|
1,567 |
|
Total revenue, as
adjusted |
|
$ |
308,471 |
|
|
$ |
342,281 |
|
Efficiency ratio -
Non-GAAP |
|
|
58.38 |
% |
|
|
51.79 |
% |
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