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Lakeland Bancorp Reports 19% Increase in Second Quarter
Earnings
GlobeNewswire
2012-07-17
OAK RIDGE, N.J., July 17, 2012 (GLOBE NEWSWIRE) -- Lakeland Bancorp,
Inc. (Nasdaq:LBAI) reported Net Income Available to Common Shareholders
in the second quarter of 2012 of $5.5 million or $0.20 per diluted
share compared to $4.6 million, or $0.17 per diluted share for the same
period last year. The annualized Return on Average Assets in the second
quarter of 2012 was 0.78%, while the annualized Return on Average
Common Equity was 8.94%. Net Income Available to Common Shareholders
for the first six months of 2012 was $9.8 million or $0.36 per diluted
share, as compared to $8.0 million, or $0.30 per diluted share for the
same period last year.
The Company declared a quarterly cash dividend of $0.06 per common
share, payable on August 15, 2012 to holders of record as of the close
of business on July 31, 2012.
Thomas J. Shara, Lakeland Bancorp's President and CEO said, "Our second
quarter 2012 earnings growth of 19% was driven by continued loan
growth, a reduced provision for loan and lease losses, tight expense
control, and the elimination of costs associated with our participation
with the Capital Purchase Program. The reduced provision reflects
continued improvement in asset quality, as non-performing assets at
June 30, 2012 were 19% lower than the total reported at March 31,
2012."
Earnings
Net Interest Income
Net interest income for the second quarter of 2012 was $23.7 million,
as compared to $24.4 million for the same period in 2011. The
annualized Net Interest Margin for the second quarter of 2012 was
3.70%, which compared to 3.90% reported in the second quarter of 2011.
The decrease in net interest margin in the second quarter as compared
to the same period last year reflects a greater reduction in yields on
interest-earning assets as compared to interest-bearing liabilities.
The annualized yield on interest-earning assets declined to 4.35% in
the second quarter of 2012 compared to 4.71% for the same period last
year. The annualized cost of interest-bearing liabilities decreased
from 0.99% in the second quarter of 2011 to 0.81% in the second quarter
of 2012.
Year-to-date, net interest income at $47.7 million compared to the
$49.0 million reported for the first six months of 2011. Annualized Net
Interest Margin for the first six months of 2012 at 3.73% compared to
3.90% for the same period last year. The Company's annualized yield on
earning assets decreased from 4.72% for the first six months of 2011,
to 4.39% for the same period this year. The Company's cost of interest
bearing liabilities decreased from 1.00% for the first six months of
2011 to 0.82% for the first six months of this year.
Noninterest Income
Noninterest income, exclusive of gains on sales of investment
securities, totaled $4.5 million for the second quarter of 2012, as
compared to $4.3 million for the same period last year, an increase of
6%. In the second quarter of 2012, the Company recorded $241,000 on
gains on sales of investment securities, as compared to $444,000 on
gains for the same period last year. Service charges on deposit
accounts totaling $2.7 million increased by 5% primarily due to the
implementation of a new demand deposit pricing structure in the second
quarter of 2012. Commissions and fees at $1.3 million increased by
$219,000, or 21%, primarily due to increased loan fees and investment
commission income.
Noninterest income, exclusive of gains on sales of investment
securities, totaled $8.6 million for the first six months of 2012,
which was $59,000 higher than last year's six month total. Gains on
investment securities totaled $273,000 in 2012 as compared to $444,000
in 2011. Service charges on deposit accounts at $5.2 million were up
2%, while commissions and fees at $2.2 million increased by 20%,
primarily due to increased loan fees and investment commission income.
Gains on leasing related assets at $303,000 decreased by $390,000 in
2012, reflecting the reduction in the leasing portfolio.
Noninterest Expense
Noninterest expense for the second quarter of 2012 was $16.5 million,
as compared to $16.7 million for the same period last year, a decrease
of 2%. Salary and benefit expense at $9.6 million increased by 4%.
Amortization of core deposit intangibles were fully amortized in 2011
resulting in a decrease in expenses of $266,000 in the second quarter
this year, while expenses on other real estate owned and other
repossessed assets declined $162,000 as compared to the same period
last year. The efficiency ratio for the second quarter of 2012 was
57.2%.
For the first six months of 2012, noninterest expense was $32.7
million, compared to $33.8 million in 2011, a 3% decrease. Salary and
benefit costs at $19.0 million increased 4%, while occupancy, furniture
and equipment expenses at $5.5 million decreased by 6%. FDIC insurance
expense at $1.1 million decreased by $441,000, or 29%, resulting from a
change in FDIC assessment rate methodology. Amortization of core
deposit intangibles were fully amortized in 2011, which resulted in a
$531,000 reduction in expenses in 2012, while expenses on other real
estate owned and other repossessed assets declined by $396,000 compared
to the first six months of 2011.
Financial Condition
At June 30, 2012, total assets were $2.85 billion, an increase of $27.3
million from December 31, 2011. Total loans were $2.09 billion, an
increase of $47.4 million from $2.04 billion at year-end 2011,
primarily due to increases in commercial loans and residential mortgage
loans of $31.1 million and $15.1 million, respectively. Total deposits
were $2.28 billion, an increase of $27.7 million from December 31,
2011. Noninterest bearing demand deposits at $474.2 million have
increased by $24.7 million or 5% from year-end 2011. Savings and
interest-bearing transaction accounts at $1.48 billion have increased
by $35.6 million, while time deposits at $327.0 million, have decreased
by $32.5 million.
Asset Quality
At June 30, 2012, non-performing assets totaled $35.3 million (1.24% of
total assets) compared to $43.3 million (1.52% of total assets) at
March 31, 2012, a decline of 19%. In the second quarter of 2012, the
Company sold a group of primarily non-performing loans with a net book
value of $4.5 million and recorded a charge-off of $1.9 million. The
Allowance for Loan and Lease Losses totaled $28.5 million at June 30,
2012 and represented 1.37% of total loans. In the second quarter of
2012, the Company had net charge offs totaling $4.0 million, or 0.78%
of average loans. For the first six months of 2012, the Company had net
charge-offs of $8.3 million, as compared to $9.4 million for the same
period last year.
Capital
At June 30, 2012, stockholders' equity was $246.9 million and book
value per common share was $9.15. As of June 30, 2012, the Company's
leverage ratio was 7.62%. Tier I and total risk based capital ratios
were 10.21% and 12.59%, respectively. These regulatory capital ratios
exceed those necessary to be considered a well-capitalized institution
under Federal guidelines.
Forward-Looking Statements
The information disclosed in this document includes various
forward-looking statements (with respect to corporate objectives,
trends, and other financial and business matters) that are made in
reliance upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. The words "anticipates", "projects",
"intends", "estimates", "expects", "believes", "plans", "may", "will",
"should", "could", and other similar expressions are intended to
identify such forward-looking statements. Lakeland cautions that these
forward-looking statements are necessarily speculative and speak only
as of the date made, and are subject to numerous assumptions, risks and
uncertainties, all of which may change over time. Actual results could
differ materially from such forward-looking statements. The following
factors, among others, could cause actual results to differ materially
and adversely from such forward-looking statements: changes in the
financial services industry and the U.S. and global capital markets,
changes in economic conditions nationally, regionally and in the
Company's markets, the nature and timing of actions of the Federal
Reserve Board and other regulators, the nature and timing of
legislation affecting the financial services industry, government
intervention in the U.S. financial system, changes in levels of market
interest rates, pricing pressures on loan and deposit products, credit
risks of the Company's lending and leasing activities, customers'
acceptance of the Company's products and services and competition. Any
statements made by Lakeland that are not historical facts should be
considered to be forward-looking statements. Lakeland is not obligated
to update and does not undertake to update any of its forward-looking
statements made herein.
EXPLANATION OF NON-GAAP FINANCIAL MEASURES
Reported amounts are presented in accordance with accounting principles
generally accepted in the United States of America ("GAAP"). The
Company's management believes that the supplemental non-GAAP
information, which consists of measurements and ratios based on
tangible equity and tangible assets, is utilized by regulators and
market analysts to evaluate a company's financial condition and
therefore, such information is useful to investors. 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.
The Company also uses an efficiency ratio that is a non-GAAP financial
measure. The ratio that the Company uses excludes amortization of core
deposit intangibles, expenses on other real estate owned and other
repossessed assets and, where applicable, long-term debt prepayment
fees. Income for the non-GAAP ratio is increased by the favorable
effect of tax-exempt income and excludes securities gains and losses,
which can vary from period to period. The Company uses this ratio
because it believes the ratio provides a better comparison of period to
period operating performance.
Lakeland Bancorp, the holding company for Lakeland Bank, has a current
asset base of $2.9 billion and forty-seven (47) offices spanning six
northwestern New Jersey counties: Bergen, Essex, Morris, Passaic,
Sussex and Warren. Lakeland Bank, headquartered at 250 Oak Ridge Road,
Oak Ridge, New Jersey offers an extensive array of consumer and
commercial products and services, including online banking, localized
commercial lending teams, and 24-hour or less turnaround time on
consumer loan applications. For more information about their full line
of products and services, visit their website at www.lakelandbank.com.
Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
Three months ended June
30, Six Months Ended June 30,
-------------------------- --------------------------
2012 2011 2012 2011
------------ ------------ ------------ ------------
(Dollars in thousands except per share amounts)
INCOME STATEMENT
Net Interest Income $ 23,748 $ 24,421 $ 47,694 $ 49,005
Provision for Loan and Lease Losses (3,877) (5,406) (8,433) (10,333)
Noninterest Income (excluding
investment securities
gains/losses) 4,530 4,266 8,555 8,496
Gains on investment securities 241 444 273 444
Noninterest Expense (16,470) (16,732) (32,745) (33,758)
------------ ------------ ------------ ------------
Pretax Income 8,172 6,993 15,344 13,854
Tax Expense (2,719) (2,135) (4,920) (4,225)
------------ ------------ ------------ ------------
Net Income $ 5,453 $ 4,858 $ 10,424 $ 9,629
------------ ------------ ------------ ------------
Dividends on Preferred Stock and
Discount Accretion -- (294) (620) (1,580)
------------ ------------ ------------ ------------
Net Income Available to Common
Stockholders $ 5,453 $ 4,564 $ 9,804 $ 8,049
============ ============ ============ ============
Basic Earnings Per Common Share (1) $ 0.20 $ 0.17 $ 0.36 $ 0.30
Diluted Earnings Per Common Share
(1) $ 0.20 $ 0.17 $ 0.36 $ 0.30
Dividends per Common Share (1) $ 0.06 $ 0.057 $ 0.12 $ 0.11
Weighted Average Shares - Basic (1) 26,737 26,555 26,719 26,534
Weighted Average Shares - Diluted
(1) 26,800 26,754 26,774 26,698
SELECTED OPERATING RATIOS
Annualized Return on Average Assets 0.78% 0.71% 0.75% 0.70%
Annualized Return on Average Common
Equity 8.94% 8.47% 8.59% 8.51%
Annualized Return on Average
Tangible Common Equity (3) 13.87% 13.64% 13.35% 13.80%
Annualized Return on Interest
Earning Assets 4.35% 4.71% 4.39% 4.72%
Annualized Cost of Interest Bearing
Liabilities 0.81% 0.99% 0.82% 1.00%
Annualized Net interest spread 3.54% 3.72% 3.57% 3.73%
Annualized Net interest margin 3.70% 3.90% 3.73% 3.90%
Efficiency ratio (3) 57.18% 56.11% 57.44% 56.41%
Stockholders' equity to total
assets 8.65% 9.14%
Book value per common share (1) (2) $ 9.15 $ 8.67
Tangible book value per common
share (1) (2) (3) $ 5.92 $ 5.42
Tangible common equity to tangible
assets (2) (3) 5.78% 5.46%
ASSET QUALITY RATIOS 6/30/2012 12/31/2011
------------ ------------
Ratio of allowance for loan and
lease losses to total loans 1.37% 1.39%
Non-performing loans to total loans 1.63% 2.40%
Non-performing assets to total
assets 1.24% 1.78%
Annualized net charge-offs to
average loans 0.81% 0.89%
SELECTED BALANCE SHEET DATA AT
PERIOD-END 6/30/2012 12/31/2011
------------ ------------
Loans and Leases $ 2,088,695 $ 2,041,326
Allowance for Loan and Lease Losses (28,543) (28,416)
Investment Securities 516,432 543,644
Total Assets 2,853,202 2,825,950
Total Deposits 2,277,400 2,249,653
Short-Term Borrowings 92,958 72,131
Other Borrowings 222,322 232,322
Stockholders' Equity 246,941 259,783
SELECTED AVERAGE BALANCE SHEET DATA For the Three months ended For the Six Months Ended
6/30/2012 6/30/2011 6/30/2012 6/30/2011
------------ ------------ ------------ ------------
Loans and Leases, net $ 2,077,813 $ 1,983,253 $ 2,063,953 $ 1,991,609
Investment Securities 502,931 531,045 511,485 537,627
Interest-Earning Assets 2,605,294 2,542,351 2,599,719 2,559,697
Total Assets 2,820,789 2,762,024 2,813,493 2,779,386
Non Interest-Bearing Demand
Deposits 473,853 411,212 461,407 406,080
Savings Deposits 352,095 333,036 345,158 327,660
Interest-Bearing Transaction
Accounts 1,141,263 1,074,620 1,139,163 1,084,070
Time Deposits 332,669 411,216 341,806 412,342
Total Deposits 2,299,880 2,230,084 2,287,534 2,230,152
Short-Term Borrowings 71,558 64,015 70,085 62,005
Other Borrowings 190,478 207,353 194,515 220,669
Total Interest-Bearing Liabilities 2,088,062 2,090,239 2,090,727 2,106,746
Stockholders' Equity 245,253 248,455 247,964 254,269
Common Stockholders' Equity 245,253 230,123 244,105 228,098
(1) Adjusted for 5% stock dividend payable on April 16, 2012 to shareholders of record
March 30, 2012.
(2) Excludes preferred stock
(3) See supplemental information - non-GAAP financial measures
Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Six Months Ended
Ended June 30, June 30,
2012 2011 2012 2011
------------------------------ ------- ------- ------- -------
(dollars in thousands, except
per share amounts)
INTEREST INCOME
Loans and fees $25,272 $26,120 $50,730 $52,785
Federal funds sold and
interest bearing deposits
with banks 6 11 12 23
Taxable investment securities
and other 2,207 2,962 4,547 5,675
Tax exempt investment
securities 453 507 943 1,006
------------------------------ ------- ------- ------- -------
TOTAL INTEREST INCOME 27,938 29,600 56,232 59,489
------------------------------ ------- ------- ------- -------
INTEREST EXPENSE
Deposits 2,139 2,807 4,395 5,738
Federal funds purchased and
securities sold under
agreements to repurchase 28 28 56 55
Other borrowings 2,023 2,344 4,087 4,691
------------------------------ ------- ------- ------- -------
TOTAL INTEREST EXPENSE 4,190 5,179 8,538 10,484
------------------------------ ------- ------- ------- -------
NET INTEREST INCOME 23,748 24,421 47,694 49,005
Provision for loan and lease
losses 3,877 5,406 8,433 10,333
------------------------------ ------- ------- ------- -------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN AND
LEASE LOSSES 19,871 19,015 39,261 38,672
NONINTEREST INCOME
Service charges on deposit
accounts 2,710 2,571 5,157 5,049
Commissions and fees 1,259 1,040 2,239 1,872
Gains on sales of investment
securities 241 444 273 444
Income on bank owned life
insurance 339 359 678 714
Gain on leasing related
assets 119 230 303 693
Other income 103 66 178 168
------------------------------ ------- ------- ------- -------
TOTAL NONINTEREST INCOME 4,771 4,710 8,828 8,940
------------------------------ ------- ------- ------- -------
NONINTEREST EXPENSE
Salaries and employee
benefits 9,565 9,199 19,000 18,185
Net occupancy expense 1,636 1,602 3,324 3,513
Furniture and equipment 1,139 1,225 2,222 2,389
Stationery, supplies and
postage 355 395 691 760
Marketing expense 458 619 928 1,234
Amortization of core deposit
intangibles -- 266 -- 531
FDIC insurance expense 546 595 1,101 1,542
Collection expense 34 60 173 125
Legal expense 346 411 745 706
Expenses on other real estate
owned and other repossessed
assets 38 200 76 472
Other expenses 2,353 2,160 4,485 4,301
------------------------------ ------- ------- ------- -------
TOTAL NONINTEREST EXPENSE 16,470 16,732 32,745 33,758
------------------------------ ------- ------- ------- -------
INCOME BEFORE PROVISION FOR
INCOME TAXES 8,172 6,993 15,344 13,854
Provision for income taxes 2,719 2,135 4,920 4,225
------------------------------ ------- ------- ------- -------
NET INCOME $5,453 $4,858 $10,424 $9,629
------------------------------ ------- ------- ------- -------
Dividends on Preferred Stock
and Discount Accretion -- 294 620 1,580
------------------------------ ------- ------- ------- -------
Net Income Available to Common
Stockholders $5,453 $4,564 $9,804 $8,049
============================== ======= ======= ======= =======
EARNINGS PER COMMON SHARE
Basic $0.20 $0.17 $0.36 $0.30
------------------------------ ------- ------- ------- -------
Diluted $0.20 $0.17 $0.36 $0.30
------------------------------ ------- ------- ------- -------
DIVIDENDS PER COMMON SHARE $0.06 $0.057 $0.12 $0.11
------------------------------ ------- ------- ------- -------
Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
ASSETS 2012 2011
------------------------------- ----------- -------------
(dollars in thousands) (unaudited)
Cash and due from banks $61,843 $60,688
Federal funds sold and
interest-bearing deposits due
from banks 14,875 11,870
------------------------------- ----------- -------------
Total cash and cash
equivalents 76,718 72,558
Investment securities available
for sale, at fair value 416,984 463,611
Investment securities held to
maturity; fair value of
$94,129 in 2012 and $74,274 in
2011 91,348 71,700
Federal Home Loan Bank Stock,
at cost 8,100 8,333
Loans:
Commercial, secured by real
estate 1,116,726 1,092,120
Commercial, industrial and
other 216,406 209,915
Leases 25,603 28,879
Residential mortgages 421,338 406,222
Consumer and home equity 308,622 304,190
------------------------------- ----------- -------------
Total loans 2,088,695 2,041,326
Deferred cost 89 249
Allowance for loan and lease
losses (28,543) (28,416)
------------------------------- ----------- -------------
Net loans 2,060,241 2,013,159
Premises and equipment, net 32,020 27,917
Accrued interest receivable 7,771 8,369
Goodwill 87,111 87,111
Bank owned life insurance 45,438 44,760
Other assets 27,471 28,432
------------------------------- ----------- -------------
TOTAL ASSETS $2,853,202 $2,825,950
=============================== =========== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
-----------------------------------------------------------
LIABILITIES:
Deposits:
Noninterest bearing $474,233 $449,560
Savings and interest-bearing
transaction accounts 1,476,127 1,440,541
Time deposits under $100,000 201,817 211,797
Time deposits $100,000 and
over 125,223 147,755
------------------------------- ----------- -------------
Total deposits 2,277,400 2,249,653
Federal funds purchased and
securities sold under
agreements to repurchase 92,958 72,131
Other borrowings 145,000 155,000
Subordinated debentures 77,322 77,322
Other liabilities 13,581 12,061
------------------------------- ----------- -------------
TOTAL LIABILITIES 2,606,261 2,566,167
------------------------------- ----------- -------------
STOCKHOLDERS' EQUITY
Preferred stock, Series A, no
par value, $1,000 liquidation
value, authorized 1,000,000
shares; issued 0 shares at
June 30, 2012 and 19,000
shares at December 31, 2011 -- 18,480
Common stock, no par value;
authorized 40,000,000 shares;
issued 27,274,714 shares at
June 30, 2012 and 27,275,480
shares at December 31, 2011 278,593 270,044
Accumulated Deficit (31,764) (26,061)
Treasury shares, at cost,
281,812 shares at June 30,
2012 and 439,340 shares at
December 31, 2011 (3,546) (5,551)
Accumulated other
comprehensive gain 3,658 2,871
------------------------------- ----------- -------------
TOTAL STOCKHOLDERS' EQUITY 246,941 259,783
------------------------------- ----------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,853,202 $2,825,950
=============================== =========== =============
Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
For the quarter ended
Jun 30, Mar 31, Dec 31, Sept 30, Jun 30,
(dollars in thousands, except per share
data) 2012 2012 2011 2011 2011
---------------------------------------- ----------- --------- --------- --------- ---------
INCOME STATEMENT (unaudited)
Net Interest Income $ 23,748 $ 23,946 $ 24,057 $ 24,351 $ 24,421
Provision for Loan and Lease Losses (3,877) (4,556) (4,425) (4,058) (5,406)
Noninterest Income (excluding investment
securities gains) 4,530 4,025 4,082 4,310 4,266
Gains on investment securities 241 32 -- 785 444
Long-term debt prepayment fee -- -- -- (800) --
Noninterest Expense, excluding long-term
debt prepayment fee (16,470) (16,275) (16,353) (17,240) (16,732)
----------- --------- --------- --------- ---------
Pretax Income 8,172 7,172 7,361 7,348 6,993
Tax Expense (2,719) (2,201) (2,245) (2,242) (2,135)
----------- --------- --------- --------- ---------
Net Income $ 5,453 $ 4,971 $ 5,116 $ 5,106 $ 4,858
Dividends on Preferred Stock and
Discount Accretion -- (620) (294) (293) (294)
----------- --------- --------- --------- ---------
Net Income Available to Common
Stockholders $ 5,453 $ 4,351 $ 4,822 $ 4,813 $ 4,564
=========== ========= ========= ========= =========
Basic Earnings Per Common Share (1) $ 0.20 $ 0.16 $ 0.18 $ 0.18 $ 0.17
Diluted Earnings Per Common Share (1) $ 0.20 $ 0.16 $ 0.18 $ 0.18 $ 0.17
Dividends per Common Share (1) $ 0.060 $ 0.057 $ 0.057 $ 0.057 $ 0.057
Weighted Average Shares - Basic (1) 26,737 26,700 26,629 26,589 26,555
Weighted Average Shares - Diluted (1) 26,800 26,747 26,688 26,638 26,754
SELECTED OPERATING RATIOS
Annualized Return on Average Assets 0.78% 0.71% 0.72% 0.73% 0.71%
Annualized Return on Average Common
Equity 8.94% 8.23% 8.50% 8.59% 8.47%
Annualized Return on Tangible Common
Equity (3) 13.87% 12.83% 13.39% 13.63% 13.64%
Annualized Net Interest Margin 3.70% 3.76% 3.73% 3.85% 3.90%
Efficiency ratio (3) 57.18% 57.71% 57.67% 57.01% 56.11%
Stockholders' equity to total assets 8.65% 8.48% 9.19% 9.30% 9.14%
Common stockholders' equity to total
assets 8.65% 8.48% 8.54% 8.62% 8.47%
Tangible common equity to tangible
assets (3) 5.78% 5.60% 5.63% 5.63% 5.46%
Tier 1 risk-based ratio 10.21% 9.92% 11.23% 11.21% 10.95%
Total risk-based ratio 12.59% 12.37% 13.39% 13.46% 13.26%
Tier 1 leverage ratio 7.62% 7.46% 8.33% 8.29% 8.09%
Book value per common share (1) (2) $ 9.15 $ 8.97 $ 8.99 $ 8.82 $ 8.67
Tangible book value per common share (1)
(2) (3) $ 5.92 $ 5.74 $ 5.75 $ 5.57 $ 5.42
(1) Adjusted for 5% stock dividend payable on April 16, 2012 to shareholders of record March 30,
2012.
(2) Excludes preferred stock
(3) See Supplemental Information - Non GAAP financial measures
Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
For the quarter ended
Jun 30, Mar 31, Dec 31, Sept 30, Jun 30,
(dollars in thousands) 2012 2012 2011 2011 2011
-------------------------- ------------ ------------ ------------ ------------ ------------
(unaudited)
SELECTED BALANCE SHEET
DATA AT PERIOD-END
Loans and Leases $ 2,088,695 $ 2,073,527 $ 2,041,326 $ 1,991,874 $ 1,983,675
Allowance for Loan and
Lease Losses (28,543) (28,700) (28,416) (28,024) (28,252)
Investment Securities 516,432 522,761 543,644 515,019 515,042
Total Assets 2,853,202 2,852,347 2,825,950 2,741,768 2,741,335
Total Deposits 2,277,400 2,288,128 2,249,653 2,232,565 2,182,383
Short-Term Borrowings 92,958 96,453 72,131 53,175 90,251
Other Borrowings 222,322 212,322 232,323 187,322 207,322
Stockholders' Equity 246,941 241,955 259,783 254,898 250,568
Loans and Leases
Commercial real estate $ 1,116,726 $ 1,114,042 $ 1,092,120 $ 1,064,009 $ 1,050,458
Commercial, industrial and
other 216,406 219,270 209,915 195,121 197,770
Leases 25,603 26,214 28,879 36,178 38,895
Residential mortgages 421,338 412,027 406,222 392,454 393,062
Consumer and Home Equity 308,622 301,974 304,190 304,112 303,490
------------ ------------ ------------ ------------ ------------
Total loans $ 2,088,695 $ 2,073,527 $ 2,041,326 $ 1,991,874 $ 1,983,675
Deposits
Noninterest bearing $ 474,233 $ 476,349 $ 449,560 $ 424,789 $ 409,795
Savings and
interest-bearing
transaction accounts 1,476,127 1,473,051 1,440,541 1,411,058 1,370,190
Time deposits under
$100,000 201,817 206,766 211,797 222,337 230,510
Time deposits $100,000 and
over 125,223 131,962 147,755 174,381 171,888
------------ ------------ ------------ ------------ ------------
Total deposits $ 2,277,400 $ 2,288,128 $ 2,249,653 $ 2,232,565 $ 2,182,383
SELECTED AVERAGE BALANCE
SHEET DATA
Loans and Leases, net $ 2,077,813 $ 2,050,093 $ 2,024,559 $ 1,982,637 $ 1,983,253
Investment Securities 502,931 520,039 530,171 518,194 531,045
Interest-Earning Assets 2,605,294 2,592,654 2,585,062 2,537,284 2,542,351
Total Assets 2,820,789 2,806,197 2,809,452 2,762,305 2,762,024
Non Interest-Bearing
Demand Deposits 473,853 448,893 452,638 424,938 411,212
Savings Deposits 352,095 338,221 332,258 334,909 333,036
Interest-Bearing
Transaction Accounts 1,141,263 1,137,069 1,128,338 1,058,085 1,074,620
Time Deposits 332,669 350,937 380,443 397,029 411,216
Total Deposits 2,299,880 2,275,120 2,293,677 2,214,961 2,230,084
Short-Term Borrowings 71,558 68,612 54,056 58,983 64,015
Other Borrowings 190,478 198,553 190,826 222,086 207,353
Total Interest-Bearing
Liabilities 2,088,062 2,093,392 2,085,921 2,071,092 2,090,239
Stockholders' Equity 245,253 250,676 257,164 254,174 248,455
Common Stockholders'
Equity 245,253 242,957 238,713 235,785 230,123
Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
For the quarter ended
Jun 30, Mar 31, Dec 31, Sept 30, Jun 30,
(dollars in thousands) 2012 2012 2011 2011 2011
----------------------------- ----------- --------- --------- --------- ---------
(unaudited)
AVERAGE ANNUALIZED YIELDS
(taxable equivalent basis)
Assets:
Loans and leases 4.89% 4.99% 5.06% 5.20% 5.28%
Taxable investment securities
and other 2.03% 2.09% 2.12% 2.48% 2.58%
Tax-exempt securities 4.09% 4.14% 4.28% 4.33% 4.38%
Federal funds sold and
interest-bearing cash
accounts 0.10% 0.11% 0.16% 0.18% 0.16%
----------- --------- --------- --------- ---------
Total interest-earning
assets 4.35% 4.43% 4.46% 4.63% 4.71%
Liabilities:
Savings accounts 0.11% 0.11% 0.11% 0.12% 0.16%
Interest-bearing transaction
accounts 0.44% 0.45% 0.51% 0.50% 0.55%
Time deposits 0.97% 1.02% 1.07% 1.13% 1.18%
Borrowings 3.13% 3.13% 3.47% 3.37% 3.50%
----------- --------- --------- --------- ---------
Total interest-bearing
liabilities 0.81% 0.83% 0.90% 0.95% 0.99%
Net interest spread (taxable
equivalent basis) 3.54% 3.60% 3.56% 3.68% 3.72%
Annualized Net Interest
Margin (taxable equivalent
basis) 3.70% 3.76% 3.73% 3.85% 3.90%
Annualized Cost of Deposits 0.37% 0.40% 0.44% 0.46% 0.50%
ASSET QUALITY DATA
Allowance for Loan and Lease
Losses
Balance at beginning of
period $ 28,700 $ 28,416 $ 28,024 $ 28,252 $ 28,192
Provision for loan losses 3,877 4,556 4,425 4,058 5,406
Net Charge-offs (4,034) (4,272) (4,033) (4,286) (5,346)
----------- --------- --------- --------- ---------
Balance at end of period $ 28,543 $ 28,700 $ 28,416 $ 28,024 $ 28,252
=========== ========= ========= ========= =========
Net Loan Charge-offs
(Recoveries)
Commercial real estate $ 2,938 $ 3,550 $ 1,367 $ 1,420 $ 2,047
Commercial, industrial and
other 258 (30) (201) 1,929 2,484
Leases 150 (210) 358 353 354
Home equity and consumer 528 617 1,355 422 329
Real estate - mortgage 160 345 1,154 162 132
----------- --------- --------- --------- ---------
Net charge-offs $ 4,034 $ 4,272 $ 4,033 $ 4,286 $ 5,346
=========== ========= ========= ========= =========
Nonperforming Assets
Commercial real estate $ 18,843 $ 23,119 $ 28,971 $ 30,970 $ 27,596
Commercial, industrial and
other 1,650 5,611 4,608 4,416 6,312
Leases 536 621 575 4,670 4,971
Home equity and consumer 2,818 2,725 3,252 3,840 3,456
Real estate - mortgage 10,197 9,943 11,610 12,503 12,710
----------- --------- --------- --------- ---------
Total non-accruing loans 34,044 42,019 49,016 56,399 55,045
Property acquired through
foreclosure or repossession 1,250 1,314 1,182 1,342 1,439
----------- --------- --------- --------- ---------
Total non-performing assets $ 35,294 $ 43,333 $ 50,198 $ 57,741 $ 56,484
=========== ========= ========= ========= =========
Loans past due 90 days or
more $ 1,566 $ 2,343 $ 1,367 $ 1,304 $ 2,793
Loans restructured and still
accruing $ 10,776 $ 8,744 $ 8,856 $ 6,075 $ 7,476
Ratio of allowance for loan
and lease losses to total
loans 1.37% 1.38% 1.39% 1.41% 1.42%
Non-performing loans to total
loans 1.63% 2.03% 2.40% 2.83% 2.77%
Non-performing assets to
total assets 1.24% 1.52% 1.78% 2.11% 2.06%
Annualized net charge-offs to
average loans 0.78% 0.83% 0.80% 0.86% 1.08%
Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(unaudited)
At or for the quarter ended,
Jun 30, Mar 31, Dec 31, Sept 30, Jun 30,
(dollars in thousands, except per share
amounts) 2012 2012 2011 2011 2011
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Calculation of tangible book value per common
share
Total common stockholders' equity at end of
period - GAAP $ 246,941 $ 241,955 $ 241,303 $ 236,474 $ 232,201
Less:
Goodwill 87,111 87,111 87,111 87,111 87,111
Other identifiable intangible assets, net -- -- -- -- 47
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Total tangible common stockholders' equity at
end of period - Non- GAAP $ 159,830 $ 154,844 $ 154,192 $ 149,363 $ 145,043
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Shares outstanding at end of period (1) 26,993 26,963 26,836 26,804 26,773
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Book value per share - GAAP (1) $ 9.15 $ 8.97 $ 8.99 $ 8.82 $ 8.67
============================================= ============ ============ ============ ============ ============
Tangible book value per share - Non-GAAP (1) $ 5.92 $ 5.74 $ 5.75 $ 5.57 $ 5.42
============================================= ============ ============ ============ ============ ============
Calculation of tangible common equity to
tangible assets
Total tangible common stockholders' equity at
end of period - Non- GAAP $ 159,830 $ 154,844 $ 154,192 $ 149,363 $ 145,043
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Total assets at end of period $ 2,853,202 $ 2,852,347 $ 2,825,950 $ 2,741,768 $ 2,741,335
Less:
Goodwill 87,111 87,111 87,111 87,111 87,111
Other identifiable intangible assets, net -- -- -- -- 47
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Total tangible assets at end of period -
Non-GAAP $ 2,766,091 $ 2,765,236 $ 2,738,839 $ 2,654,657 $ 2,654,177
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Common equity to assets - GAAP 8.65% 8.48% 8.54% 8.62% 8.47%
============================================= ============ ============ ============ ============ ============
Tangible common equity to tangible assets -
Non-GAAP 5.78% 5.60% 5.63% 5.63% 5.46%
============================================= ============ ============ ============ ============ ============
Calculation of return on average tangible
common equity
Net income - GAAP $ 5,453 $ 4,971 $ 5,116 $ 5,106 $ 4,858
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Total average common stockholders' equity 245,253 242,957 238,713 235,785 230,123
Less:
Average goodwill 87,111 87,111 87,111 87,111 87,111
Average other identifiable intangible
assets, net -- -- -- 15 194
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Total average tangible common stockholders'
equity - Non - GAAP $ 158,142 $ 155,846 $ 151,602 $ 148,659 $ 142,818
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Return on average common stockholders' equity
- GAAP 8.94% 8.23% 8.50% 8.59% 8.47%
============================================= ============ ============ ============ ============ ============
Return on average tangible common
stockholders' equity - Non-GAAP 13.87% 12.83% 13.39% 13.63% 13.64%
============================================= ============ ============ ============ ============ ============
Calculation of efficiency ratio
Total non-interest expense $ 16,470 $ 16,275 $ 16,353 $ 18,040 $ 16,732
Less:
Amortization of core deposit intangibles -- -- -- (46) (266)
Other real estate owned and other
repossessed asset (expense) income (38) (38) 28 (336) (200)
Long-term debt prepayment fee -- -- -- (800) --
Provision for unfunded lending commitments,
net (122) 56 3 (365) (17)
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Non-interest expense, as adjusted $ 16,310 $ 16,293 $ 16,384 $ 16,493 $ 16,249
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Net interest income $ 23,748 $ 23,946 $ 24,057 $ 24,351 $ 24,421
Noninterest income 4,771 4,057 4,082 5,095 4,710
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Total revenue 28,519 28,003 28,139 29,446 29,131
Plus: Tax-equivalent adjustment on municipal
securities 244 264 269 269 273
Less: (gains) on investment securities (241) (32) -- (785) (444)
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Total revenue, as adjusted $ 28,522 $ 28,235 $ 28,408 $ 28,930 $ 28,960
--------------------------------------------- ------------ ------------ ------------ ------------ ------------
Efficiency ratio - Non-GAAP 57.18% 57.71% 57.67% 57.01% 56.11%
============================================= ============ ============ ============ ============ ============
(1) Adjusted for 5% stock dividend payable on April 16, 2012 to shareholders of record March 30, 2012.
Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(unaudited)
For the Year Ended,
June 30 June 30
(dollars in thousands, except per
share amounts) 2012 2011
-------------------------------------- ---------- ----------
Calculation of return on average
tangible common equity
Net income - GAAP $ 10,424 $ 9,629
-------------------------------------- ---------- ----------
Total average common stockholders'
equity $ 244,105 $ 228,098
Less:
Average goodwill 87,111 87,111
Average other identifiable intangible
assets, net -- 326
-------------------------------------- ---------- ----------
Total average tangible common
stockholders' equity - Non GAAP $ 156,994 $ 140,661
-------------------------------------- ---------- ----------
Return on average common stockholders'
equity - GAAP 8.59% 8.51%
====================================== ========== ==========
Return on average tangible common
stockholders' equity - Non-GAAP 13.35% 13.80%
====================================== ========== ==========
Calculation of efficiency ratio
Total non-interest expense $ 32,745 $ 33,758
Less:
Amortization of core deposit
intangibles -- (531)
Other real estate owned and other
repossessed asset expense (76) (472)
Long-term debt prepayment fee -- --
Provision for unfunded lending
commitments (67) (13)
-------------------------------------- ---------- ----------
Non-interest expense, as adjusted $ 32,602 $ 32,742
-------------------------------------- ---------- ----------
Net interest income $ 47,694 $ 49,005
Noninterest income 8,828 8,940
-------------------------------------- ---------- ----------
Total revenue 56,522 57,945
Plus: Tax-equivalent adjustment on
municipal securities 508 542
Less: gains on investment securities (273) (444)
-------------------------------------- ---------- ----------
Total revenue, as adjusted $ 56,757 $ 58,043
-------------------------------------- ---------- ----------
Efficiency ratio - Non - GAAP 57.44% 56.41%
====================================== ========== ==========
CONTACT: Thomas J. Shara
President & CEO
Joseph F. Hurley
EVP & CFO
973-697-2000
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