OAK RIDGE, N.J., Oct. 27, 2015 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (NASDAQ:LBAI) (the "Company") reported the following results in the third quarter of 2015:
- Net Income in the third quarter of 2015 was $7.8 million, or $0.20 per diluted share, compared to $8.2 million, or $0.22 per diluted share, for the same period in 2014. Excluding the impact of $734 thousand in non-routine transactions, net income for the third quarter of 2015 would have been $8.3 million, or $0.22 per diluted share.
- For the third quarter of 2015, Annualized Return on Average Assets was 0.84%, Annualized Return on Average Common Equity was 7.86%, and Annualized Return on Average Tangible Common Equity was 10.96%. As of September 30, 2015, tangible book value per common share was $7.55, an increase of 6.9% compared to December 31, 2014.
- Net Income for the first nine months of 2015 was $24.0 million, or $0.63 per diluted share, which was $0.8 million, or $0.02 per diluted share, higher than the same period in 2014. Excluding the impact of $734 thousand in non-routine transactions, net income for the first nine months of 2015 would have been $24.5 million, or $0.64 per diluted share. Annualized Return on Average Assets was 0.89%, the Annualized Return on Average Common Equity was 8.24%, and the Annualized Return on Average Tangible Common Equity was 11.56%.
- The $734 thousand in non-routine transactions included $330 thousand of expenses related to the proposed merger with Pascack Bancorp, Inc., $1.8 million of realized gain when the Company redeemed and extinguished Lakeland Bancorp Capital Trust IV trust preferred securities having a notional value of $10.0 million, $2.4 million of prepayment fees from the repayment of $20.0 million in 4.44% long-term debt, and $173 thousand in net realized gains on the sale of securities relating to the two aforementioned transactions.
- At September 30, 2015, loans totaled $2.85 billion, an increase of $198.2 million, or 7.5%, compared to December 31, 2014. The overall year-to-date increase was primarily in total commercial loans, which increased by $235.8 million, or 12.9%, aided in part by the new Hudson Valley, N.Y. and Middlesex/Monmouth County, N.J. Loan Production Offices ("LPOs").
- Noninterest bearing demand deposits totaled $694.3 million at September 30, 2015, an increase of $48.2 million, or 7.5%, since December 31, 2014. As of September 30, 2015, noninterest bearing demand deposits represent 23.8% of total deposits, up from 23.1% at December 31, 2014.
- On October 23, 2015, the Company declared a quarterly cash dividend of $0.085 per common share, payable on November 16, 2015 to holders of record as of the close of business on November 6, 2015.
Thomas J. Shara, Lakeland Bancorp's President and CEO said, "Total loans and total assets at $2.9 billion and $3.7 billion, respectively, are now at record levels. Our loan growth continues to be driven by our commercial lending teams, which now include meaningful contributions from our recently formed LPOs. For the third quarter, our growth in commercial real estate was 4.8%, and for the last twelve months totaled 14.1%. Our commercial, industrial and other growth for the third quarter was 10.8% and for the last twelve months totaled 25.4%. Our organic loan growth, along with the fully operational LPOs, recent debt prepayments and the anticipated merger with Pascack, have us well positioned for the future."
Earnings
Net Interest Income
Net interest income for the third quarter of 2015 was $29.3 million, an increase of 3.1% as compared to $28.5 million for the same period in 2014. Annualized Net Interest Margin ("NIM") was 3.42%, as compared to 3.46% for the second quarter of 2015 and 3.58% reported in the third quarter of 2014. The 16 basis point decrease in NIM from the third quarter of 2014 to the third quarter of 2015 was primarily driven by a 14 basis point decline in the yield on loans and leases as new and repriced loans were added at lower rates. Average loan and lease balances increased by $202.9 million over this time period. The annualized cost of interest bearing liabilities also increased during this period by five basis points.
Year-to-date 2015 net interest income of $86.5 million increased 2.1% as compared to the $84.7 million reported for the same period in 2014. Annualized NIM for the first nine months of 2015 was 3.48%, as compared to 3.66% for the same period in 2014. The Company's annualized yield on interest earning assets decreased from 3.94% for the first nine months of 2014 to 3.79% for the same period in 2015. The Company's cost of interest bearing liabilities increased from 0.37% for the first nine months of 2014 to 0.42% for the same period in 2015.
Noninterest Income
Noninterest income totaled $6.7 million for the third quarter of 2015, as compared to $4.8 million for the same period in 2014. Excluding the $1.8 million gain on debt extinguishment and $173 thousand net gain on sale of securities related to debt prepayments, total noninterest income totaling $4.7 million was $0.1 million less than the same period in 2014. The gain on sale of mortgage loans at $0.5 million rose by $0.4 million due to an increase in the number of mortgages sold, partially offset by a $0.2 million decline in investment services fee income and a $0.1 million decline in the gain on sale of other real estate property.
For the first nine months of 2015, noninterest income totaled $16.4 million, as compared to $13.3 million for the same period in 2014. Excluding the $1.8 million gain on debt extinguishment and $173 thousand net gain on sale of securities related to debt prepayments, total noninterest income totaling $14.4 million was $1.1 million greater than the same period in 2014. Service charges on deposits totaled $7.4 million and decreased $0.5 million as compared to the same period in 2014, due to reduced demand deposit account fees and overdraft charges. Swap fees yielded $0.4 million during the first nine months of 2015, but none in 2014. Finally, gains on the sale of mortgage loans at $1.2 million exceeded the $0.4 million earned in the same period in 2014 due to an increase in the number of mortgages sold.
Noninterest Expense
Noninterest expense for the third quarter of 2015 was $23.8 million, as compared to $19.7 million for the same period in 2014. Excluding the $330 thousand in merger related expenses and $2.4 million of debt prepayment fees, noninterest expense totaling $21.1 million was $1.4 million greater than the same period in 2014. Salary and benefit expense at $12.4 million comprised most of this increase as $0.4 million in salary and benefit expenses were incurred related to the two new LPOs, coupled with year-over-year incremental salary and benefit increases.
For the first nine months of 2015, noninterest expense totaled $65.1 million, as compared to $59.0 million for the same period in 2014. Excluding the $330 thousand in merger related expenses and $2.4 million of debt prepayment fees, noninterest expense totaling $62.3 million was $3.4 million greater than the same period in 2014. Salary and benefit expense at $36.3 million increased by $2.9 million and was the primary driver of the year-over-year increase in noninterest expense. This increase was primarily due to $0.7 million in salary and benefits expenses related to the two new LPOs, coupled with year-over-year incremental salary and benefit increases.
Financial Condition
At September 30, 2015, total assets were $3.74 billion, an increase of $204.8 million, or 5.8%, from December 31, 2014. As previously mentioned, at September 30, 2015, loans totaled $2.85 billion, an increase of $198.2 million, or 7.5%, compared to December 31, 2014. Total deposits were $2.92 billion, an increase of $128.9 million, or 4.6%, from December 31, 2014. Noninterest bearing demand deposits at $694.3 million have increased by $48.2 million, or 7.5%, in 2015, while interest bearing deposits at $2.2 billion have increased $80.6 million, or 3.8%, in 2015.
Asset Quality
At September 30, 2015, non-performing assets totaled $22.3 million (0.60% of total assets). The Allowance for Loan and Lease Losses totaled $31.0 million at September 30, 2015 and represented 1.09% of total loans. In the third quarter of 2015, the Company had net recoveries of $0.5 million, as compared to net charge offs totaling $1.0 million in the third quarter of 2014. For the first nine months of 2015, the Company had net charge-offs of $1.6 million (0.08% of average loans), as compared to $4.1 million (0.21% of average loans) for the same period in 2014. The provision for loan and lease losses in the third quarter of 2015 was $0.3 million, compared to $1.2 million in the same quarter of 2014. The provision for loan and lease losses for the first nine months of 2015 was $1.9 million, as compared to $4.3 million for the same period in 2014.
Capital
At September 30, 2015, stockholders' equity was $397.7 million, while book value per common share was $10.49. Tangible book value per common share was $7.55 at September 30, 2015, an increase of 6.9% since December 31, 2014. As of September 30, 2015, the Company's leverage ratio was 8.77%. Tier I and total risk based capital ratios were 10.81% and 11.93%, respectively. The common equity tier 1 capital ratio was 9.78%. The tangible common equity ratio was 7.88%. The regulatory capital ratios exceed those necessary to be considered a well-capitalized institution under Federal guidelines.
Regulatory Approvals
The Company and Pascack Bancorp have received approvals from the Federal Deposit Insurance Corporation and the New Jersey Department of Banking and Insurance to complete the merger of the bank subsidiaries, Pascack Community Bank with and into Lakeland Bank. The Federal Reserve Board has advised that the merger of the bank holding companies, Pascack Bancorp with and into the Company, does not require its approval. The merger remains subject to the approval of Pascack Bancorp's shareholders and other customary closing conditions.
Additional Information and Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. In connection with the proposed mergers, Lakeland Bancorp has filed with the Securities and Exchange Commission a registration statement on Form S-4 that includes a preliminary proxy statement of Pascack Bancorp and a preliminary prospectus of Lakeland Bancorp. The registration statement has not yet become effective. This material is not a substitute for the final proxy statement and prospectus or any other document Lakeland Bancorp may file with the SEC. After the registration statement has been declared effective by the SEC, the definitive proxy statement and prospectus will be delivered to the shareholders of Pascack Bancorp. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE DEFINITIVE PROXY STATEMENT AND PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER DOCUMENTS RELATING TO THE TRANSACTIONS THAT HAVE BEEN OR WILL BE FILED BY LAKELAND CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN AND WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the registration statement and the definitive proxy statement and prospectus (when available) and other documents filed by Lakeland Bancorp with the SEC at the SEC's web site at www.sec.gov. These documents may be accessed and downloaded for free at Lakeland Bancorp's website at www.lakelandbank.com or by directing a request to Investor Relations, Lakeland Bancorp, Inc., 250 Oak Ridge Road, Oak Ridge, NJ 07438 (973-697-2000). Requests for the definitive proxy statement and prospectus (when available) may also be made to Investor Relations, Pascack Bancorp, Inc., 64 Crescent Avenue, Waldwick, New Jersey 07463 (201-345-9348).
Participants in the Solicitation
This communication is not a solicitation of a proxy from any security holder of Lakeland Bancorp or Pascack Bancorp. However, Lakeland Bancorp, Pascack Bancorp and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Pascack Bancorp's shareholders in respect of the proposed transaction. Information regarding the directors and executive officers of Lakeland Bancorp may be found in its definitive proxy statement relating to its 2015 Annual Meeting of Shareholders, which was filed with the Commission on April 10, 2015, and can be obtained free of charge from Lakeland Bancorp's website. Information regarding the directors and executive officers of Pascack Bancorp may be found in its definitive proxy statement relating to its 2015 Annual Meeting of Shareholders, and can be obtained free of charge from Pascack Bancorp's website. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interest, by security holdings or otherwise, will be contained in the definitive proxy statement and prospectus and other relevant materials to be filed with the Commission when they become available.
Forward-Looking Statements
The information disclosed in this document includes various forward-looking statements (with respect to corporate objectives, trends, and other financial and business matters) that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipates", "projects", "intends", "estimates", "expects", "believes", "plans", "may", "will", "should", "could", and other similar expressions are intended to identify such forward-looking statements. Lakeland cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. The following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: changes in the financial services industry and the U.S. and global capital markets, changes in economic conditions nationally, regionally and in the Company's markets, the nature and timing of actions of the Federal Reserve Board and other regulators, the nature and timing of legislation affecting the financial services industry, government intervention in the U.S. financial system, changes in levels of market interest rates, pricing pressures on loan and deposit products, credit risks of the Company's lending and leasing activities, customers' acceptance of the Company's products and services, competition, failure to obtain the required approval from Pascack Bancorp, Inc. shareholders for the merger of Pascack Bancorp, Inc. into Lakeland Bancorp, Inc. and failure to realize anticipated efficiencies and synergies if the holding company merger and the merger of Pascack Community Bank into Lakeland Bank are consummated. 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, provision for unfunded lending commitments and, where applicable, long-term debt prepayment fees and merger related expenses. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes securities gains and losses and gain on debt extinguishment, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a better comparison of period to period operating performance.
About Lakeland Bank
Lakeland Bancorp, the holding company for Lakeland Bank, has $3.7 billion in total assets with 48 New Jersey branch offices in Bergen, Essex, Morris, Passaic, Somerset, Sussex, Union and Warren counties, five New Jersey regional commercial lending centers in Bernardsville, Montville, Newton, Teaneck and Wyckoff and two commercial loan production offices serving Middlesex and Monmouth counties in New Jersey and the Hudson Valley region of New York. Lakeland Bank offers an extensive array of consumer and commercial products and services, including online and mobile banking, localized commercial lending teams, and 24-hour or less turnaround time on consumer loan applications. For more information about the full line of products and services, visit LakelandBank.com.
Lakeland Bancorp, Inc. | |||||||
Financial Highlights | |||||||
(Unaudited) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(Dollars in thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 | |||
INCOME STATEMENT | |||||||
Net Interest Income | $ 29,334 | $ 28,452 | $ 86,521 | $ 84,716 | |||
Provision for Loan and Lease Losses | (332) | (1,194) | (1,942) | (4,276) | |||
Other Noninterest Income | 4,169 | 4,666 | 13,119 | 12,873 | |||
Gain on Investment Securities | 173 | -- | 190 | 2 | |||
Gain on Sale of Loans | 515 | 143 | 1,244 | 378 | |||
Gain on Debt Extinguishment | 1,830 | -- | 1,830 | -- | |||
Long-Term Debt Prepayment Fee | (2,407) | -- | (2,407) | -- | |||
Merger Related Expenses | (330) | -- | (330) | -- | |||
Other Noninterest Expense | (21,095) | (19,685) | (62,332) | (58,957) | |||
Pretax Income | 11,857 | 12,382 | 35,893 | 34,736 | |||
Tax Expense | (4,032) | (4,136) | (11,876) | (11,546) | |||
Net Income | $ 7,825 | $ 8,246 | $ 24,017 | $ 23,190 | |||
Basic Earnings per Common Share | $ 0.20 | $ 0.22 | $ 0.63 | $ 0.61 | |||
Diluted Earnings per Common Share | $ 0.20 | $ 0.22 | $ 0.63 | $ 0.61 | |||
Dividends per Common Share | $ 0.085 | $ 0.075 | $ 0.245 | $ 0.218 | |||
Weighted Average Shares - Basic | 37,856 | 37,738 | 37,837 | 37,720 | |||
Weighted Average Shares - Diluted | 38,016 | 37,862 | 37,976 | 37,838 | |||
SELECTED OPERATING RATIOS | |||||||
Annualized Return on Average Assets | 0.84% | 0.95% | 0.89% | 0.92% | |||
Annualized Return on Average Common Equity | 7.86% | 8.83% | 8.24% | 8.52% | |||
Annualized Return on Average Tangible Common Equity (1) | 10.96% | 12.66% | 11.56% | 12.33% | |||
Annualized Return on Interest Earning Assets | 3.75% | 3.87% | 3.79% | 3.94% | |||
Annualized Cost of Interest Bearing Liabilities | 0.44% | 0.39% | 0.42% | 0.37% | |||
Annualized Net Interest Spread | 3.31% | 3.48% | 3.37% | 3.57% | |||
Annualized Net Interest Margin | 3.42% | 3.58% | 3.48% | 3.66% | |||
Efficiency Ratio (1) | 60.77% | 57.97% | 60.68% | 59.18% | |||
Stockholders' Equity to Total Assets | 10.62% | 10.65% | |||||
Book Value per Common Share | $ 10.49 | $ 9.83 | |||||
Tangible Book Value per Common Share (1) | $ 7.55 | $ 6.87 | |||||
Tangible Common Equity to Tangible Assets (1) | 7.88% | 7.69% | |||||
ASSET QUALITY RATIOS | 9/30/2015 | 9/30/2014 | |||||
Ratio of Allowance for Loan and Lease Losses to Total Loans | 1.09% | 1.15% | |||||
Non-accruing Loans to Total Loans | 0.75% | 0.71% | |||||
Non-performing Assets to Total Assets | 0.60% | 0.56% | |||||
Annualized Net Charge-Offs to Average Loans | 0.08% | 0.21% | |||||
SELECTED BALANCE SHEET DATA AT PERIOD-END | 9/30/2015 | 9/30/2014 | |||||
Loans and Leases | $ 2,853,764 | $ 2,613,404 | |||||
Allowance for Loan and Lease Losses | (30,994) | (30,047) | |||||
Investment Securities | 559,295 | 558,032 | |||||
Total Assets | 3,743,100 | 3,498,905 | |||||
Total Deposits | 2,919,673 | 2,776,931 | |||||
Short-Term Borrowings | 131,356 | 112,796 | |||||
Other Borrowings | 275,666 | 220,938 | |||||
Stockholders' Equity | 397,687 | 372,539 | |||||
SELECTED AVERAGE BALANCE SHEET DATA | For the Three Months Ended | For the Nine Months Ended | |||||
9/30/2015 | 9/30/2014 | 9/30/2015 | 9/30/2014 | ||||
Loans and Leases, net | $ 2,811,581 | $ 2,608,687 | $ 2,731,518 | $ 2,549,675 | |||
Investment Securities | 581,565 | 529,379 | 588,337 | 536,313 | |||
Interest Earning Assets | 3,431,018 | 3,183,361 | 3,349,755 | 3,120,265 | |||
Total Assets | 3,685,573 | 3,443,946 | 3,604,713 | 3,372,591 | |||
Noninterest Bearing Demand Deposits | 710,011 | 671,049 | 686,652 | 643,548 | |||
Savings Deposits | 398,147 | 382,642 | 398,491 | 384,934 | |||
Interest Bearing Transaction Accounts | 1,497,340 | 1,457,680 | 1,491,166 | 1,444,006 | |||
Time Deposits | 309,235 | 280,200 | 295,460 | 285,919 | |||
Total Deposits | 2,914,733 | 2,791,571 | 2,871,769 | 2,758,407 | |||
Short-Term Borrowings | 61,679 | 49,725 | 56,303 | 61,575 | |||
Other Borrowings | 297,140 | 217,049 | 270,871 | 173,949 | |||
Total Interest Bearing Liabilities | 2,563,542 | 2,387,295 | 2,512,291 | 2,350,383 | |||
Stockholders' Equity | 394,948 | 370,448 | 389,604 | 363,783 | |||
(1) See supplemental information - Non-GAAP financial measures |
Lakeland Bancorp, Inc. | ||||
Consolidated Statements of Operations | ||||
(Unaudited) | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||
(Dollars in thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 |
INTEREST INCOME | ||||
Loans and fees | $29,123 | $27,949 | $85,230 | $82,405 |
Federal funds sold and interest bearing deposits with banks | 7 | 24 | 30 | 46 |
Taxable investment securities and other | 2,639 | 2,387 | 8,001 | 7,448 |
Tax exempt investment securities | 390 | 436 | 1,198 | 1,376 |
TOTAL INTEREST INCOME | 32,159 | 30,796 | 94,459 | 91,275 |
INTEREST EXPENSE | ||||
Deposits | 1,464 | 1,256 | 4,093 | 3,762 |
Federal funds purchased and securities sold under agreements to repurchase | 33 | 19 | 92 | 69 |
Other borrowings | 1,328 | 1,069 | 3,753 | 2,728 |
TOTAL INTEREST EXPENSE | 2,825 | 2,344 | 7,938 | 6,559 |
NET INTEREST INCOME | 29,334 | 28,452 | 86,521 | 84,716 |
Provision for loan and lease losses | 332 | 1,194 | 1,942 | 4,276 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 29,002 | 27,258 | 84,579 | 80,440 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 2,614 | 2,689 | 7,404 | 7,911 |
Commissions and fees | 984 | 1,371 | 3,487 | 3,466 |
Gain on investment securities | 173 | -- | 190 | 2 |
Gain on sale of loans | 515 | 143 | 1,244 | 378 |
Gain on debt extinguishment | 1,830 | -- | 1,830 | -- |
Income on bank owned life insurance | 455 | 365 | 1,542 | 1,090 |
Other income | 116 | 241 | 686 | 406 |
TOTAL NONINTEREST INCOME | 6,687 | 4,809 | 16,383 | 13,253 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 12,376 | 11,327 | 36,270 | 33,340 |
Net occupancy expense | 2,067 | 2,017 | 6,888 | 6,675 |
Furniture and equipment | 1,881 | 1,605 | 5,166 | 4,958 |
Stationery, supplies and postage | 395 | 368 | 1,137 | 1,056 |
Marketing expense | 396 | 629 | 1,052 | 1,491 |
FDIC insurance expense | 474 | 489 | 1,523 | 1,501 |
Legal expense | 301 | 144 | 742 | 636 |
Other real estate owned and other repossessed assets expense | 27 | 50 | 46 | 165 |
Long-term debt prepayment fee | 2,407 | -- | 2,407 | -- |
Merger related expenses | 330 | -- | 330 | -- |
Core deposit intangible amortization | 98 | 111 | 316 | 353 |
Other expenses | 3,080 | 2,945 | 9,192 | 8,782 |
TOTAL NONINTEREST EXPENSE | 23,832 | 19,685 | 65,069 | 58,957 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 11,857 | 12,382 | 35,893 | 34,736 |
Provision for income taxes | 4,032 | 4,136 | 11,876 | 11,546 |
NET INCOME | $7,825 | $8,246 | $24,017 | $23,190 |
EARNINGS PER COMMON SHARE | ||||
Basic | $0.20 | $0.22 | $0.63 | $0.61 |
Diluted | $0.20 | $0.22 | $0.63 | $0.61 |
DIVIDENDS PER COMMON SHARE | $0.085 | $0.075 | $0.245 | $0.218 |
Lakeland Bancorp, Inc. | ||
Consolidated Balance Sheets | ||
September 30, | December 31, | |
(Dollars in thousands) | 2015 | 2014 |
(Unaudited) | ||
ASSETS | ||
Cash and due from banks | $117,743 | $102,549 |
Federal funds sold and interest bearing deposits due from banks | 5,396 | 6,767 |
Total cash and cash equivalents | 123,139 | 109,316 |
Investment securities available for sale, at fair value | 424,893 | 457,449 |
Investment securities held to maturity; fair value of $123,154 in 2015 and $109,030 in 2014 | 121,550 | 107,976 |
Federal Home Loan Bank and other membership stocks, at cost | 12,852 | 9,846 |
Loans held for sale | 1,920 | 592 |
Loans: | ||
Commercial, secured by real estate | 1,776,911 | 1,593,781 |
Commercial, industrial and other | 290,961 | 238,252 |
Leases | 55,057 | 54,749 |
Residential mortgages | 400,247 | 431,190 |
Consumer and home equity | 330,588 | 337,642 |
Total loans | 2,853,764 | 2,655,614 |
Net deferred costs | (2,417) | (1,788) |
Allowance for loan and lease losses | (30,994) | (30,684) |
Net loans | 2,820,353 | 2,623,142 |
Premises and equipment, net | 35,439 | 35,675 |
Accrued interest receivable | 8,827 | 8,896 |
Goodwill | 109,974 | 109,974 |
Other identifiable intangible assets | 1,644 | 1,960 |
Bank owned life insurance | 65,014 | 57,476 |
Other assets | 17,495 | 16,023 |
TOTAL ASSETS | $3,743,100 | $3,538,325 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
LIABILITIES: | ||
Deposits: | ||
Noninterest bearing | $694,267 | $646,052 |
Savings and interest bearing transaction accounts | 1,907,858 | 1,864,805 |
Time deposits under $100,000 | 164,291 | 165,625 |
Time deposits $100,000 and over | 153,257 | 114,337 |
Total deposits | 2,919,673 | 2,790,819 |
Federal funds purchased and securities sold under agreements to repurchase | 131,356 | 108,935 |
Other borrowings | 244,428 | 202,498 |
Subordinated debentures | 31,238 | 41,238 |
Other liabilities | 18,718 | 15,397 |
TOTAL LIABILITIES | 3,345,413 | 3,158,887 |
STOCKHOLDERS' EQUITY: | ||
Common stock, no par value; authorized 70,000,000 shares; issued 37,906,481 shares at September 30, 2015 and 37,910,840 shares at December 31, 2014 | 385,941 | 384,731 |
Retained Earnings (Accumulated Deficit) | 7,861 | (6,816) |
Accumulated other comprehensive gain | 3,885 | 1,523 |
TOTAL STOCKHOLDERS' EQUITY | 397,687 | 379,438 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $3,743,100 | $3,538,325 |
Lakeland Bancorp, Inc. | |||||
Financial Highlights | |||||
(Unaudited) | |||||
For the Quarter Ended | |||||
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | |
(Dollars in thousands, except per share data) | 2015 | 2015 | 2015 | 2014 | 2014 |
INCOME STATEMENT | |||||
Net Interest Income | $ 29,334 | $ 28,669 | $ 28,518 | $ 28,850 | $ 28,452 |
Provision for Loan and Lease Losses | (332) | (740) | (870) | (1,589) | (1,194) |
Other Noninterest Income | 4,169 | 4,477 | 4,473 | 4,274 | 4,666 |
Gain on Investment Securities | 173 | 17 | -- | -- | -- |
Gain on Sale of Loans | 515 | 464 | 265 | 195 | 143 |
Gain on Debt Extinguishment | 1,830 | -- | -- | -- | -- |
Long-Term Debt Prepayment Fee | (2,407) | -- | -- | -- | -- |
Merger Related Expenses | (330) | -- | -- | -- | -- |
Other Noninterest Expense | (21,095) | (21,195) | (20,042) | (20,178) | (19,685) |
Pretax Income | 11,857 | 11,692 | 12,344 | 11,552 | 12,382 |
Tax Expense | (4,032) | (3,830) | (4,014) | (3,613) | (4,136) |
Net Income | $ 7,825 | $ 7,862 | $ 8,330 | $ 7,939 | $ 8,246 |
Basic Earnings Per Common Share | $ 0.20 | $ 0.21 | $ 0.22 | $ 0.21 | $ 0.22 |
Diluted Earnings Per Common Share | $ 0.20 | $ 0.21 | $ 0.22 | $ 0.21 | $ 0.22 |
Dividends Per Common Share | $ 0.085 | $ 0.085 | $ 0.075 | $ 0.075 | $ 0.075 |
Dividends Paid | $ 3,244 | $ 3,243 | $ 2,852 | $ 2,853 | $ 2,853 |
Weighted Average Shares - Basic | 37,856 | 37,854 | 37,800 | 37,765 | 37,738 |
Weighted Average Shares - Diluted | 38,016 | 37,988 | 37,937 | 37,920 | 37,862 |
SELECTED OPERATING RATIOS | |||||
Annualized Return on Average Assets | 0.84% | 0.88% | 0.96% | 0.90% | 0.95% |
Annualized Return on Average Common Equity | 7.86% | 8.08% | 8.81% | 8.35% | 8.83% |
Annualized Return on Tangible Common Equity (1) | 10.96% | 11.33% | 12.43% | 11.87% | 12.66% |
Annualized Net Interest Margin | 3.42% | 3.46% | 3.56% | 3.58% | 3.58% |
Efficiency Ratio (1) | 60.77% | 62.09% | 59.17% | 59.87% | 57.97% |
Common Stockholders' Equity to Total Assets | 10.62% | 10.57% | 10.70% | 10.72% | 10.65% |
Tangible Common Equity to Tangible Assets (1) | 7.88% | 7.78% | 7.86% | 7.81% | 7.69% |
Tier 1 Risk-Based Ratio (2) | 10.81% | 11.05% | 11.23% | 11.76% | 11.75% |
Total Risk-Based Ratio (2) | 11.93% | 12.15% | 12.37% | 12.98% | 12.97% |
Tier 1 Leverage Ratio (2) | 8.77% | 9.12% | 9.17% | 9.08% | 9.02% |
Common Equity Tier 1 Capital Ratio (2) | 9.78% | 9.66% | 9.79% | N/A | N/A |
Book Value per Common Share | $ 10.49 | $ 10.31 | $ 10.24 | $ 10.01 | $ 9.83 |
Tangible Book Value per Common Share (1) | $ 7.55 | $ 7.36 | $ 7.29 | $ 7.06 | $ 6.87 |
(1) See Supplemental Information - Non-GAAP financial measures | |||||
(2) Beginning March 31, 2015, these ratios were calculated according to the Basel III capital rules that took effect on January 1, 2015. |
Lakeland Bancorp, Inc. | |||||
Financial Highlights | |||||
(Unaudited) | |||||
For the Quarter Ended | |||||
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | |
(Dollars in thousands) | 2015 | 2015 | 2015 | 2014 | 2014 |
SELECTED BALANCE SHEET DATA AT PERIOD-END | |||||
Loans and Leases | $ 2,853,764 | $ 2,756,694 | $ 2,691,705 | $ 2,655,614 | $ 2,613,404 |
Allowance for Loan and Lease Losses | (30,994) | (30,174) | (30,505) | (30,684) | (30,047) |
Investment Securities | 559,295 | 597,598 | 599,986 | 575,271 | 558,032 |
Total Assets | 3,743,100 | 3,699,127 | 3,627,764 | 3,538,325 | 3,498,905 |
Total Deposits | 2,919,673 | 2,842,953 | 2,842,565 | 2,790,819 | 2,776,931 |
Short-Term Borrowings | 131,356 | 146,249 | 117,351 | 108,935 | 112,796 |
Other Borrowings | 275,666 | 303,966 | 263,966 | 243,736 | 220,938 |
Stockholders' Equity | 397,687 | 390,860 | 388,084 | 379,438 | 372,539 |
Loans and Leases | |||||
Commercial Real Estate | $ 1,776,911 | $ 1,695,276 | $ 1,636,128 | $ 1,593,781 | $ 1,557,168 |
Commercial, Industrial and Other | 290,961 | 262,617 | 244,162 | 238,252 | 231,961 |
Leases | 55,057 | 53,798 | 54,271 | 54,749 | 52,285 |
Residential Mortgages | 400,247 | 414,339 | 426,339 | 431,190 | 431,477 |
Consumer and Home Equity | 330,588 | 330,664 | 330,805 | 337,642 | 340,513 |
Total Loans | $ 2,853,764 | $ 2,756,694 | $ 2,691,705 | $ 2,655,614 | $ 2,613,404 |
Deposits | |||||
Noninterest Bearing | $ 694,267 | $ 714,227 | $ 672,264 | $ 646,052 | $ 674,933 |
Savings and Interest Bearing Transaction Accounts | 1,907,858 | 1,822,295 | 1,878,598 | 1,864,805 | 1,820,657 |
Time Deposits Under $100,000 | 164,291 | 165,105 | 164,946 | 165,625 | 168,391 |
Time Deposits $100,000 and Over | 153,257 | 141,326 | 126,757 | 114,337 | 112,950 |
Total Deposits | $ 2,919,673 | $ 2,842,953 | $ 2,842,565 | $ 2,790,819 | $ 2,776,931 |
SELECTED AVERAGE BALANCE SHEET DATA | |||||
Loans and Leases, net | $ 2,811,581 | $ 2,720,801 | $ 2,660,512 | $ 2,622,602 | $ 2,608,687 |
Investment Securities | 581,565 | 600,547 | 582,912 | 566,039 | 529,379 |
Interest Earning Assets | 3,431,018 | 3,345,380 | 3,271,110 | 3,227,390 | 3,183,361 |
Total Assets | 3,685,573 | 3,600,416 | 3,526,898 | 3,483,162 | 3,443,946 |
Noninterest Bearing Demand Deposits | 710,011 | 688,854 | 660,548 | 679,796 | 671,049 |
Savings Deposits | 398,147 | 402,142 | 395,153 | 384,064 | 382,642 |
Interest Bearing Transaction Accounts | 1,497,340 | 1,480,866 | 1,495,270 | 1,487,492 | 1,457,680 |
Time Deposits | 309,235 | 295,996 | 280,837 | 277,930 | 280,200 |
Total Deposits | 2,914,733 | 2,867,858 | 2,831,808 | 2,829,282 | 2,791,571 |
Short-Term Borrowings | 61,679 | 59,249 | 47,827 | 38,653 | 49,725 |
Other Borrowings | 297,140 | 267,610 | 247,316 | 221,848 | 217,049 |
Total Interest Bearing Liabilities | 2,563,542 | 2,505,863 | 2,466,403 | 2,409,988 | 2,387,295 |
Stockholders' Equity | 394,948 | 390,151 | 383,587 | 377,379 | 370,448 |
Lakeland Bancorp, Inc. | |||||
Financial Highlights | |||||
(Unaudited) | |||||
For the Quarter Ended | |||||
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | |
(Dollars in thousands) | 2015 | 2015 | 2015 | 2014 | 2014 |
AVERAGE ANNUALIZED YIELDS (Taxable Equivalent Basis) | |||||
Assets: | |||||
Loans and leases | 4.11% | 4.16% | 4.25% | 4.26% | 4.25% |
Taxable investment securities and other | 2.06% | 2.02% | 2.08% | 2.09% | 2.08% |
Tax-exempt securities | 3.41% | 3.58% | 3.67% | 3.75% | 3.79% |
Federal funds sold and interest bearing cash accounts | 0.07% | 0.18% | 0.17% | 0.26% | 0.21% |
Total interest earning assets | 3.75% | 3.78% | 3.86% | 3.87% | 3.87% |
Liabilities: | |||||
Savings accounts | 0.05% | 0.05% | 0.05% | 0.05% | 0.05% |
Interest bearing transaction accounts | 0.25% | 0.23% | 0.23% | 0.23% | 0.23% |
Time deposits | 0.63% | 0.59% | 0.56% | 0.54% | 0.49% |
Borrowings | 1.52% | 1.58% | 1.61% | 1.65% | 1.63% |
Total interest bearing liabilities | 0.44% | 0.42% | 0.40% | 0.39% | 0.39% |
Net interest spread (taxable equivalent basis) | 3.31% | 3.36% | 3.46% | 3.48% | 3.48% |
Annualized net interest margin (taxable equivalent basis) | 3.42% | 3.46% | 3.56% | 3.58% | 3.58% |
Annualized cost of deposits | 0.20% | 0.19% | 0.18% | 0.18% | 0.18% |
ASSET QUALITY DATA | |||||
Allowance for Loan and Lease Losses | |||||
Balance at beginning of period | $ 30,174 | $ 30,505 | $ 30,684 | $ 30,047 | $ 29,866 |
Provision for loan losses | 332 | 740 | 870 | 1,589 | 1,194 |
Net recoveries (charge-offs) | 488 | (1,071) | (1,049) | (952) | (1,013) |
Balance at end of period | $ 30,994 | $ 30,174 | $ 30,505 | $ 30,684 | $ 30,047 |
Net Loan Charge-offs (Recoveries) | |||||
Commercial real estate | $ (936) | $ 476 | $ 426 | $ (287) | $ 28 |
Commercial, industrial and other | 88 | 21 | (31) | 99 | (71) |
Leases | 13 | 102 | 407 | 185 | 229 |
Home equity and consumer | 204 | 386 | 231 | 860 | 638 |
Real estate - mortgage | 143 | 86 | 16 | 95 | 189 |
Net charge-offs (recoveries) | $ (488) | $ 1,071 | $ 1,049 | $ 952 | $ 1,013 |
Non-performing Assets | |||||
Commercial real estate | $ 8,176 | $ 5,307 | $ 6,994 | $ 7,612 | $ 8,549 |
Commercial, industrial and other | 832 | 1,354 | 285 | 308 | 599 |
Leases | 154 | 79 | 111 | 88 | 141 |
Home equity and consumer | 3,530 | 3,143 | 3,472 | 3,415 | 2,114 |
Real estate - mortgage | 8,805 | 9,098 | 9,552 | 9,246 | 7,221 |
Total non-accruing loans | 21,497 | 18,981 | 20,414 | 20,669 | 18,624 |
Property acquired through foreclosure or repossession | 819 | 1,078 | 826 | 1,026 | 982 |
Total non-performing assets | $ 22,316 | $ 20,059 | $ 21,240 | $ 21,695 | $ 19,606 |
Loans past due 90 days or more and still accruing | $ 123 | $ 102 | $ 134 | $ 66 | $ 429 |
Loans restructured and still accruing | $ 11,927 | $ 12,419 | $ 11,538 | $ 10,579 | $ 7,957 |
Ratio of allowance for loan and lease losses to total loans | 1.09% | 1.09% | 1.13% | 1.16% | 1.15% |
Non-performing loans to total loans | 0.75% | 0.69% | 0.76% | 0.78% | 0.71% |
Non-performing assets to total assets | 0.60% | 0.54% | 0.59% | 0.61% | 0.56% |
Annualized net charge-offs (recoveries) to average loans | -0.07% | 0.16% | 0.16% | 0.15% | 0.16% |
Lakeland Bancorp, Inc. | |||||
Supplemental Information - Non-GAAP Financial Measures | |||||
(Unaudited) | |||||
At or for the Quarter Ended | |||||
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | |
(Dollars in thousands, except per share amounts) | 2015 | 2015 | 2015 | 2014 | 2014 |
Calculation of tangible book value per common share | |||||
Total common stockholders' equity at end of period - GAAP | $ 397,687 | $ 390,860 | $ 388,084 | $ 379,438 | $ 372,539 |
Less: | |||||
Goodwill | 109,974 | 109,974 | 109,974 | 109,974 | 109,974 |
Other identifiable intangible assets, net | 1,644 | 1,742 | 1,849 | 1,960 | 2,071 |
Total tangible common stockholders' equity at end of period - Non-GAAP | $ 286,069 | $ 279,144 | $ 276,261 | $ 267,504 | $ 260,494 |
Shares outstanding at end of period | 37,906 | 37,903 | 37,900 | 37,911 | 37,910 |
Book value per share - GAAP | $ 10.49 | $ 10.31 | $ 10.24 | $ 10.01 | $ 9.83 |
Tangible book value per share - Non-GAAP | $ 7.55 | $ 7.36 | $ 7.29 | $ 7.06 | $ 6.87 |
Calculation of tangible common equity to tangible assets | |||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ 286,069 | $ 279,144 | $ 276,261 | $ 267,504 | $ 260,494 |
Total assets at end of period | $ 3,743,100 | $ 3,699,127 | $ 3,627,764 | $ 3,538,325 | $ 3,498,905 |
Less: | |||||
Goodwill | 109,974 | 109,974 | 109,974 | 109,974 | 109,974 |
Other identifiable intangible assets, net | 1,644 | 1,742 | 1,849 | 1,960 | 2,071 |
Total tangible assets at end of period - Non-GAAP | $ 3,631,482 | $ 3,587,411 | $ 3,515,941 | $ 3,426,391 | $ 3,386,860 |
Common equity to assets - GAAP | 10.62% | 10.57% | 10.70% | 10.72% | 10.65% |
Tangible common equity to tangible assets - Non-GAAP | 7.88% | 7.78% | 7.86% | 7.81% | 7.69% |
Calculation of return on average tangible common equity | |||||
Net income - GAAP | $ 7,825 | $ 7,862 | $ 8,330 | $ 7,939 | $ 8,246 |
Total average common stockholders' equity | $ 394,948 | $ 390,151 | $ 383,587 | $ 377,379 | $ 370,448 |
Less: | |||||
Average goodwill | 109,974 | 109,974 | 109,974 | 109,974 | 109,974 |
Average other identifiable intangible assets, net | 1,706 | 1,807 | 1,919 | 2,028 | 2,141 |
Total average tangible common stockholders' equity - Non-GAAP | $ 283,268 | $ 278,370 | $ 271,694 | $ 265,377 | $ 258,333 |
Return on average common stockholders' equity - GAAP | 7.86% | 8.08% | 8.81% | 8.35% | 8.83% |
Return on average tangible common stockholders' equity - Non-GAAP | 10.96% | 11.33% | 12.43% | 11.87% | 12.66% |
Calculation of efficiency ratio | |||||
Total noninterest expense | $ 23,832 | $ 21,195 | $ 20,042 | $ 20,178 | $ 19,685 |
Amortization of core deposit intangibles | (98) | (107) | (111) | (111) | (111) |
Other real estate owned and other repossessed asset (expense) income | (27) | (27) | 8 | (69) | (50) |
Long-term debt prepayment fee | (2,407) | -- | -- | -- | -- |
Merger related expenses | (330) | -- | -- | -- | -- |
Provision for unfunded lending commitments, net | (168) | (60) | (130) | 89 | (106) |
Noninterest expense, as adjusted | $ 20,802 | $ 21,001 | $ 19,809 | $ 20,087 | $ 19,418 |
Net interest income | $ 29,334 | $ 28,669 | $ 28,518 | $ 28,850 | $ 28,452 |
Total noninterest income | 6,687 | 4,958 | 4,738 | 4,469 | 4,809 |
Total revenue | 36,021 | 33,627 | 33,256 | 33,319 | 33,261 |
Tax-equivalent adjustment on municipal securities | 210 | 214 | 221 | 231 | 235 |
Gains on debt extinguishment | (1,830) | -- | -- | -- | -- |
Gains on sales investment securities | (173) | (17) | -- | -- | -- |
Total revenue, as adjusted | $ 34,228 | $ 33,824 | $ 33,477 | $ 33,550 | $ 33,496 |
Efficiency ratio - Non-GAAP | 60.77% | 62.09% | 59.17% | 59.87% | 57.97% |
Lakeland Bancorp, Inc. | ||
Supplemental Information - Non-GAAP Financial Measures | ||
(Unaudited) | ||
For the Nine Months Ended, | ||
Sept 30, | Sept 30, | |
(Dollars in thousands, except per share amounts) | 2015 | 2014 |
Calculation of return on average tangible common equity | ||
Net income - GAAP | $ 24,017 | $ 23,190 |
Total average common stockholders' equity | $ 389,604 | $ 363,783 |
Less: | ||
Average goodwill | 109,974 | 109,974 |
Average other identifiable intangible assets, net | 1,810 | 2,257 |
Total average tangible common stockholders' equity - Non-GAAP | $ 277,820 | $ 251,552 |
Return on average common stockholders' equity - GAAP | 8.24% | 8.52% |
Return on average tangible common stockholders' equity - Non-GAAP | 11.56% | 12.33% |
Calculation of efficiency ratio | ||
Total noninterest expense | $ 65,069 | $ 58,957 |
Amortization of core deposit intangibles | (316) | (353) |
Other real estate owned and other repossessed asset expense | (46) | (165) |
Long-term debt prepayment fee | (2,407) | -- |
Merger related expenses | (330) | -- |
Provision for unfunded lending commitments | (358) | (24) |
Noninterest expense, as adjusted | $ 61,612 | $ 58,415 |
Net interest income | $ 86,521 | $ 84,716 |
Noninterest income | 16,383 | 13,253 |
Total revenue | 102,904 | 97,969 |
Tax-equivalent adjustment on municipal securities | 645 | 741 |
Gains on investment securities | (190) | (2) |
Gains on extinguishment of debt | (1,830) | -- |
Total revenue, as adjusted | $ 101,529 | $ 98,708 |
Efficiency ratio - Non-GAAP | 60.68% | 59.18% |