OAK RIDGE, N.J., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (NASDAQ: LBAI) (the “Company”), the parent company of Lakeland Bank (“Lakeland”), reported net income of $14.4 million and earnings per diluted share ("EPS") of $0.28 for the three months ended September 30, 2020 compared to net income of $18.9 million and diluted EPS of $0.37 for the third quarter of 2019. For the third quarter of 2020, annualized return on average assets was 0.76%, annualized return on average common equity was 7.64% and annualized return on average tangible common equity was 9.71%.
For the nine months ended September 30, 2020, the Company reported net income of $38.7 million and earnings per diluted share ("EPS") of $0.76 compared to net income of $52.0 million and diluted EPS of $1.02 for the first nine months of 2019. For the first nine months of 2020, annualized return on average assets was 0.73%, annualized return on average common equity was 6.95% and annualized return on average tangible common equity was 8.86%.
The third quarter and year-to-date results were adversely impacted by provisions for loan losses of $8.0 million and $26.2 million, respectively, compared to $536,000 and $1.0 million for the same periods last year. The increased provision for the first nine months of 2020 was primarily due to the impact of COVID-19 on certain qualitative factors and loans on payment deferment resulting in approximately 75% of the provision. The remainder of the provision is attributable to loan growth, a change in the loan portfolio composition and a change in loss rates. As of September 30, 2020, the ratio of the allowance for loan loss to total loans was 1.11% compared to 0.78% as of December 31, 2019. The allowance for loan losses to total loans less Paycheck Protection Program ("PPP") loans of $325.1 million, was 1.18% as of September 30, 2020.
Thomas Shara, Lakeland Bancorp’s President and CEO commented, "We continue to be a trusted partner for our customers during these uncertain times with our loans growing this quarter by $86 million or 1.5% and year-to-date growth of 7.4% excluding Payment Protection Plan loans, while deposits grew this quarter by $141 million or 2.3% and year-to-date growth of 18%. In addition, we recorded a lower provision for loan loss this quarter as our asset quality remains strong. Loans on deferred payment status decreased to 2.7% of total loans at September 30, 2020 from 19% at June 30, 2020 and loan charge-offs remain negligible. In light of the customer preference to utilize digital banking channels along with a decrease in branch transactions, we will be closing three branches representing 6% of our branch network."
COVID-19
As part of Lakeland’s response to COVID-19, we initiated remote working plans and encouraged the use of our mobile and online banking alternatives. To assist COVID-19 impacted borrowers, we offered temporary payment deferrals on commercial, mortgage and consumer loans. At September 30, 2020, we have on deferral, approximately $149 million in commercial loans (includes commercial loans secured by real estate, commercial and industrial and other loans), $3 million in equipment finance loans and $3 million in residential mortgage and consumer loans, compared to $927 million, $40 million and $53 million, respectively, at June 30, 2020. The reduction in deferrals from June 30, 2020 to September 30, 2020 was due primarily to borrowers resuming their regular payment schedule. We also participated in the Small Business Administration Paycheck Protection Program ("PPP") to help strengthen local businesses and preserve jobs in our communities and have funded 2,066 loans totaling $326.6 million with $11.1 million in related fees, as well as $1.1 million in deferred costs.
Net Interest Margin and Net Interest Income
Net interest margin for the third quarter of 2020 of 2.96% decreased 29 and 10 basis points, respectively, compared to the third quarter of 2019 and the second quarter of 2020. Net interest margin for the first nine months of 2020 of 3.09% compared to 3.35% for the same period in 2019. The decrease in net interest margin was due primarily to a decrease in the yield on interest-earning assets partially offset by a decrease in the cost of interest-bearing liabilities.
The yield on interest-earning assets for the third quarter of 2020 was 3.49% compared to 4.32% for the third quarter of 2019 and 3.69% for the second quarter of 2020. The yield on interest-earning assets for the first nine months of 2020 was 3.77% compared to 4.41% during the same period in 2019. The current quarter and year-to-date decrease in yield on interest-earning assets, when compared to the prior periods, was due primarily to a reduction in the yield on loans due to decreases in the prime rate and LIBOR during 2019 and 2020, an increase in lower yielding federal funds sold, as well as the origination of PPP loans during the second quarter of 2020, which earn an effective yield of 2.50% including amortization of fees and costs.
The cost of interest-bearing liabilities for the third quarter of 2020 was 0.72% compared to 1.41% for the third quarter of 2019 and 0.86% for the second quarter of 2020. The cost of interest-bearing liabilities for the first nine months of 2020 was 0.91% compared to 1.39% during the same period in 2019. The cost of interest-bearing transaction accounts, time deposits and borrowings has decreased since 2019 largely driven by reductions in market interest rates.
Net interest income for the third quarter of 2020 of $52.1 million increased $3.5 million and $1.6 million, respectively, compared to the third quarter of 2019 and the second quarter of 2020. Net interest income for the first nine months of 2020 of $152.6 million compared to $146.5 million for the first nine months of 2019. The increase in net interest income compared to prior periods was due primarily to the growth in the volume of interest-earning assets which was somewhat offset by a decrease in yield on interest-earning assets.
Noninterest Income
Noninterest income increased $73,000 to $6.8 million for the third quarter of 2020 from $6.7 million for the third quarter of 2019. Gains on sales of loans for the third quarter of 2020 increased $951,000 compared to the third quarter of 2019 due primarily to increased volume driven by lower interest rates, while commissions and fees for the third quarter of 2020 increased $122,000 due primarily to increases in mortgage application fees and commercial loan fees. Service charges on deposit accounts for the third quarter of 2020 decreased $563,000 compared to the third quarter of 2019 due primarily to changes in customer behavior resulting from the pandemic. Third quarter 2020 results also included losses on equity securities of $170,000 compared to a gain of $72,000 during the same period in 2019.
For the first nine months of 2020, noninterest income increased $1.5 million to $20.3 million compared to the first nine months of 2019 primarily due to increases in swap income and gains on sales of loans which increased $2.6 million and $1.3 million, respectively, resulting from increased volume driven by lower interest rates. The first nine months of 2020 included gains on sales of investment securities of $342,000 compared to none for the same period last year. Partially offsetting these favorable variances was service charges on deposits which decreased $1.5 million compared to the first nine months of 2019 due to the same reason mentioned in the quarterly comparison. The first nine months of 2020 also included a $625,000 loss on equity securities compared to a gain of $525,000 for the first nine months of 2019.
Noninterest Expense
Noninterest expense totaled $32.1 million for the third quarter of 2020 and increased $2.5 million compared to the third quarter of 2019. Salary and employee benefit expense for the third quarter of 2020 increased $632,000, or 3%, when compared to the same quarter of 2019 as a result of staff additions and normal merit increases. Furniture and equipment expense increased $806,000 compared to the third quarter of 2019 due primarily to an increase in costs associated with the Company's digital strategy initiative. FDIC insurance expense totaled $625,000 for the third quarter of 2020 and increased $1.0 million compared to the same period in 2019. In the third quarter of 2019, $420,000 in previously recorded FDIC expense was reversed due to FDIC assessment credits and no third quarter 2019 accrual was made, resulting from the insurance fund reserve ratio exceeding the required level.
Noninterest expense for the first nine months of 2020 of $96.1 million increased $830,000 compared to the first nine months of 2019. Salary and employee benefit expense increased $2.5 million compared to the first nine months of 2019 due to the same reasons discussed in the quarterly comparison. Furniture and equipment expense and FDIC insurance expense increased $1.9 million and $942,000, respectively, due to the same reasons mentioned in the quarterly comparison. Marketing expenses for the first nine months of 2020 decreased $590,000 due partially to the delay of marketing campaigns resulting from the pandemic. Year-to-date 2019 results included merger related expenses of $3.2 million due to the acquisition of Highlands Bank, while year-to-date 2020 results include a long-term debt prepayment fee of $356,000 resulting from the payoff of $10.0 million in Federal Home Loan Bank debt yielding 2.89%.
Income Tax Expense
The effective tax rate for the third quarter of 2020 was 23.3% compared to 25.3% for the third quarter of 2019. The decreased effective tax rate for the third quarter of 2020 was primarily a result of an increase in tax advantaged items as a percent of pretax income.
Financial Condition
At September 30, 2020, total assets were $7.52 billion, an increase of $810.9 million compared to December 31, 2019. For the nine months ended September 30, 2020, total loans grew $705.8 million, including $325.1 million attributed to PPP loans, to $5.84 billion and investment securities decreased $9.3 million to $909.5 million. On the funding side, total deposits increased $972.7 million to $6.27 billion, while borrowings decreased $261.5 million to $351.2 million. At September 30, 2020, total loans as a percent of total deposits was 93.4%.
Asset Quality
At September 30, 2020, non-performing assets increased to $33.1 million, 0.44% of total assets, compared to $21.7 million, 0.32% of total assets, at December 31, 2019. Non-accrual loans as a percent of total loans increased to 0.57% at September 30, 2020 compared to 0.41% at December 31, 2019. The increase in non-accrual loans from December 31, 2019, related primarily to one loan relationship totaling $9.5 million that was not COVID-19 related. The allowance for loan losses increased to $65.2 million, 1.11% of total loans, at September 30, 2020, compared to $40.0 million, 0.78% of total loans, at December 31, 2019. In the third quarter of 2020, the Company had net charge-offs of $597,000, or 0.04% of average loans, annualized, compared to $543,000, or 0.04%, for the same period in 2019. The provision for loan losses for the third quarter of 2020 was $8.0 million compared to a $536,000 provision for loan losses in the third quarter of 2019.
Capital
At September 30, 2020, stockholders' equity was $753.6 million compared to $725.3 million at December 31, 2019, a 4% increase. Lakeland Bank remains above FDIC “well capitalized” standards, with a Tier 1 leverage ratio of 8.36% at September 30, 2020. The book value per common share and tangible book value per common share increased 6% and 8% to $14.93 and $11.77, respectively, compared to $14.13 and $10.94 at September 30, 2019. At September 30, 2020, the Company’s common equity to assets ratio and tangible common equity to tangible assets ratio was 10.02% and 8.06%, respectively, compared to 10.81% and 8.62% at December 31, 2019. Excluding the impact of the PPP loans of $325.1 million, the Company’s common equity to assets ratio and tangible common equity to tangible assets ratio was 10.47% and 8.44%, respectively, at September 30, 2020. On October 21, 2020, the Company declared a quarterly cash dividend of $0.125 per share to be paid on November 13, 2020, to shareholders of record as of November 3, 2020.
Forward-Looking Statements
The information disclosed in this document includes various forward-looking statements – including the statement regarding the prospective impact of COVID-19 and our plans to close three branches – that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipates,” “projects,” “intends,” “estimates,” “expects,” “believes,” “plans,” “may,” “will,” “should,” “could,” and other similar expressions are intended to identify such forward-looking statements. The Company cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. The following factors, among others, could cause the Company’s 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; public health crises (such as the governmental, social and economic effects of the novel coronavirus); 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; pricing pressures on loan and deposit products; credit risks of Lakeland’s lending and equipment financing activities; successful implementation, deployment and upgrades of new and existing technology, systems, services and products; and customers’ acceptance of Lakeland’s products and services.
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis, and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods in question.
The Company also provides measurements and ratios based on tangible equity and tangible assets. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.
The Company also uses an efficiency ratio that is a non-GAAP financial measure. The ratio that the Company uses excludes amortization of core deposit intangibles, provision for unfunded lending commitments and, where applicable, long-term debt prepayment fees and merger-related expenses. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes gains and losses from the sale of investment securities and gain on debt extinguishment, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a 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 non-GAAP tables.
About Lakeland
Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc. (NASDAQ:LBAI), which has over $7 billion in total assets. 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 for more information.
Thomas J. Shara
President & CEO
Thomas F. Splaine
EVP & CFO
973-697-2000
Lakeland Bancorp, Inc. | |||||||||||||||||||
Financial Highlights | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
INCOME STATEMENT | |||||||||||||||||||
Net interest income | $ | 52,134 | $ | 48,682 | $ | 152,552 | $ | 146,486 | |||||||||||
Provision for loan losses | (8,000 | ) | (536 | ) | (26,223 | ) | (1,044 | ) | |||||||||||
Gains on sales of investment securities | — | — | 342 | — | |||||||||||||||
Gains on sales of loans | 1,437 | 486 | 2,562 | 1,285 | |||||||||||||||
Gain (loss) on equity securities | (170 | ) | 72 | (625 | ) | 525 | |||||||||||||
Other noninterest income | 5,506 | 6,142 | 17,986 | 17,002 | |||||||||||||||
Long-term debt prepayment fee | — | — | (356 | ) | — | ||||||||||||||
Merger-related expenses | — | — | — | (3,178 | ) | ||||||||||||||
Other noninterest expense | (32,097 | ) | (29,563 | ) | (95,707 | ) | (92,055 | ) | |||||||||||
Pretax income | 18,810 | 25,283 | 50,531 | 69,021 | |||||||||||||||
Provision for income taxes | (4,383 | ) | (6,409 | ) | (11,861 | ) | (17,064 | ) | |||||||||||
Net income | $ | 14,427 | $ | 18,874 | $ | 38,670 | $ | 51,957 | |||||||||||
Basic earnings per common share | $ | 0.28 | $ | 0.37 | $ | 0.76 | $ | 1.02 | |||||||||||
Diluted earnings per common share | $ | 0.28 | $ | 0.37 | $ | 0.76 | $ | 1.02 | |||||||||||
Dividends paid per common share | $ | 0.125 | $ | 0.125 | $ | 0.375 | $ | 0.365 | |||||||||||
Weighted average shares - basic | 50,526 | 50,553 | 50,544 | 50,447 | |||||||||||||||
Weighted average shares - diluted | 50,620 | 50,694 | 50,645 | 50,595 | |||||||||||||||
SELECTED OPERATING RATIOS | |||||||||||||||||||
Annualized return on average assets | 0.76 | % | 1.17 | % | 0.73 | % | 1.11 | % | |||||||||||
Annualized return on average common equity | 7.64 | % | 10.61 | % | 6.95 | % | 10.07 | % | |||||||||||
Annualized return on average tangible common equity (1) | 9.71 | % | 13.74 | % | 8.86 | % | 13.11 | % | |||||||||||
Annualized yield on interest-earning assets | 3.49 | % | 4.32 | % | 3.77 | % | 4.41 | % | |||||||||||
Annualized cost of interest-bearing liabilities | 0.72 | % | 1.41 | % | 0.91 | % | 1.39 | % | |||||||||||
Annualized net interest spread | 2.77 | % | 2.91 | % | 2.86 | % | 3.02 | % | |||||||||||
Annualized net interest margin | 2.96 | % | 3.25 | % | 3.09 | % | 3.35 | % | |||||||||||
Efficiency ratio (1) | 53.96 | % | 52.77 | % | 54.95 | % | 55.05 | % | |||||||||||
Stockholders' equity to total assets | 10.02 | % | 10.99 | % | |||||||||||||||
Book value per common share | $ | 14.93 | $ | 14.13 | |||||||||||||||
Tangible book value per common share (1) | $ | 11.77 | $ | 10.94 | |||||||||||||||
Tangible common equity to tangible assets (1) | 8.06 | % | 8.72 | % | |||||||||||||||
ASSET QUALITY RATIOS | September 30, 2020 | September 30, 2019 | |||||||||||||||||
Ratio of allowance for loan losses to total loans | 1.11 | % | 0.78 | % | |||||||||||||||
Non-performing loans to total loans | 0.57 | % | 0.32 | % | |||||||||||||||
Non-performing assets to total assets | 0.44 | % | 0.26 | % | |||||||||||||||
Annualized net charge-offs to average loans | 0.02 | % | — | % | |||||||||||||||
(1) See Supplemental Information - Non-GAAP Financial Measures | |||||||||||||||||||
Lakeland Bancorp, Inc. | |||||||||||||||||||
Financial Highlights | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands) | September 30, 2020 | September 30, 2019 | |||||||||||||||||
SELECTED BALANCE SHEET DATA AT PERIOD-END | |||||||||||||||||||
Loans | $ | 5,843,591 | $ | 4,923,414 | |||||||||||||||
Allowance for loan losses | 65,242 | 38,655 | |||||||||||||||||
Investment securities | 909,535 | 905,078 | |||||||||||||||||
Total assets | 7,522,184 | 6,492,474 | |||||||||||||||||
Total deposits | 6,266,516 | 5,210,619 | |||||||||||||||||
Short-term borrowings | 97,874 | 199,326 | |||||||||||||||||
Other borrowings | 253,359 | 284,029 | |||||||||||||||||
Stockholders' equity | 753,572 | 713,204 | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
SELECTED AVERAGE BALANCE SHEET DATA | |||||||||||||||||||
Loans | $ | 5,775,093 | $ | 4,937,488 | $ | 5,519,621 | $ | 4,908,952 | |||||||||||
Investment securities | 873,066 | 869,734 | 881,332 | 860,840 | |||||||||||||||
Interest-earning assets | 7,009,939 | 5,947,645 | 6,599,481 | 5,852,919 | |||||||||||||||
Total assets | 7,516,069 | 6,379,675 | 7,073,438 | 6,273,860 | |||||||||||||||
Noninterest-bearing demand deposits | 1,475,422 | 1,100,413 | 1,317,195 | 1,080,235 | |||||||||||||||
Savings deposits | 548,662 | 494,377 | 523,653 | 503,260 | |||||||||||||||
Interest-bearing transaction accounts | 3,086,260 | 2,678,424 | 2,942,307 | 2,599,004 | |||||||||||||||
Time deposits | 1,176,181 | 964,159 | 1,048,115 | 938,751 | |||||||||||||||
Total deposits | 6,286,525 | 5,237,373 | 5,831,270 | 5,121,250 | |||||||||||||||
Short-term borrowings | 58,845 | 74,042 | 100,303 | 104,450 | |||||||||||||||
Other borrowings | 269,093 | 287,839 | 273,567 | 292,447 | |||||||||||||||
Total interest-bearing liabilities | 5,139,042 | 4,498,841 | 4,887,945 | 4,437,912 | |||||||||||||||
Stockholders' equity | 751,099 | 705,726 | 743,318 | 689,538 | |||||||||||||||
Lakeland Bancorp, Inc. | |||||||||||||||||||
Consolidated Statements of Income | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
INTEREST INCOME | |||||||||||||||||||
Loans and net deferred fees and costs | $ | 56,801 | $ | 58,563 | $ | 170,483 | $ | 175,324 | |||||||||||
Federal funds sold and interest-bearing deposits with banks | 92 | 695 | 287 | 1,297 | |||||||||||||||
Taxable investment securities and other | 4,139 | 5,007 | 14,131 | 14,865 | |||||||||||||||
Tax exempt investment securities | 401 | 361 | 1,082 | 1,165 | |||||||||||||||
TOTAL INTEREST INCOME | 61,433 | 64,626 | 185,983 | 192,651 | |||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Deposits | 7,012 | 13,267 | 25,969 | 37,526 | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 27 | 231 | 531 | 1,333 | |||||||||||||||
Other borrowings | 2,260 | 2,446 | 6,931 | 7,306 | |||||||||||||||
TOTAL INTEREST EXPENSE | 9,299 | 15,944 | 33,431 | 46,165 | |||||||||||||||
NET INTEREST INCOME | 52,134 | 48,682 | 152,552 | 146,486 | |||||||||||||||
Provision for loan losses | 8,000 | 536 | 26,223 | 1,044 | |||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 44,134 | 48,146 | 126,329 | 145,442 | |||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||
Service charges on deposit accounts | 2,288 | 2,851 | 6,663 | 8,179 | |||||||||||||||
Commissions and fees | 1,667 | 1,545 | 4,503 | 4,682 | |||||||||||||||
Income on bank owned life insurance | 670 | 691 | 2,000 | 2,064 | |||||||||||||||
(Loss) gain on equity securities | (170 | ) | 72 | (625 | ) | 525 | |||||||||||||
Gains on sales of loans | 1,437 | 486 | 2,562 | 1,285 | |||||||||||||||
Gains on sales of investment securities | — | — | 342 | — | |||||||||||||||
Swap income | 624 | 730 | 4,234 | 1,585 | |||||||||||||||
Other income | 257 | 325 | 586 | 492 | |||||||||||||||
TOTAL NONINTEREST INCOME | 6,773 | 6,700 | 20,265 | 18,812 | |||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||
Salaries and employee benefit expense | 19,694 | 19,062 | 60,198 | 57,672 | |||||||||||||||
Net occupancy expense | 2,692 | 2,767 | 8,016 | 8,350 | |||||||||||||||
Furniture and equipment expense | 2,890 | 2,084 | 8,233 | 6,365 | |||||||||||||||
FDIC insurance expense | 625 | (420 | ) | 1,373 | 431 | ||||||||||||||
Stationary, supplies and postage expense | 488 | 366 | 1,268 | 1,214 | |||||||||||||||
Marketing expense | 381 | 423 | 840 | 1,430 | |||||||||||||||
Data processing expense | 1,211 | 1,248 | 3,900 | 3,800 | |||||||||||||||
Telecommunications expense | 501 | 480 | 1,399 | 1,451 | |||||||||||||||
ATM and debit card expense | 615 | 588 | 1,738 | 1,773 | |||||||||||||||
Core deposit intangible amortization | 250 | 288 | 776 | 893 | |||||||||||||||
Other real estate owned and other repossessed assets expense (income) | (2 | ) | 29 | 53 | 223 | ||||||||||||||
Long-term debt prepayment fee | — | — | 356 | — | |||||||||||||||
Merger-related expenses | — | — | — | 3,178 | |||||||||||||||
Other expenses | 2,752 | 2,648 | 7,913 | 8,453 | |||||||||||||||
TOTAL NONINTEREST EXPENSE | 32,097 | 29,563 | 96,063 | 95,233 | |||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 18,810 | 25,283 | 50,531 | 69,021 | |||||||||||||||
Provision for income taxes | 4,383 | 6,409 | 11,861 | 17,064 | |||||||||||||||
NET INCOME | $ | 14,427 | $ | 18,874 | $ | 38,670 | $ | 51,957 | |||||||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||||||
Basic | $ | 0.28 | $ | 0.37 | $ | 0.76 | $ | 1.02 | |||||||||||
Diluted | $ | 0.28 | $ | 0.37 | $ | 0.76 | $ | 1.02 | |||||||||||
DIVIDENDS PAID PER COMMON SHARE | $ | 0.125 | $ | 0.125 | $ | 0.375 | $ | 0.365 |
Lakeland Bancorp, Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
(Dollars in thousands) | September 30, 2020 | December 31, 2019 | ||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash | $ | 314,591 | $ | 275,794 | ||||
Interest-bearing deposits due from banks | 31,337 | 6,577 | ||||||
Total cash and cash equivalents | 345,928 | 282,371 | ||||||
Investment securities available for sale, at fair value | 783,331 | 755,900 | ||||||
Equity securities, at fair value | 14,076 | 16,473 | ||||||
Investment securities held to maturity; fair value of $101,205 at September 30, 2020 and $124,904 at December 31, 2019 | 97,893 | 123,975 | ||||||
Federal Home Loan Bank and other membership stocks, at cost | 14,235 | 22,505 | ||||||
Loans held for sale | 4,197 | 1,743 | ||||||
Loans, net of deferred fees | 5,843,591 | 5,137,823 | ||||||
Less: Allowance for loan losses | 65,242 | 40,003 | ||||||
Net loans and leases | 5,778,349 | 5,097,820 | ||||||
Premises and equipment, net | 47,810 | 47,608 | ||||||
Operating lease right-of-use assets | 17,028 | 18,282 | ||||||
Accrued interest receivable | 21,480 | 16,832 | ||||||
Goodwill | 156,277 | 156,277 | ||||||
Other identifiable intangible assets | 3,538 | 4,314 | ||||||
Bank owned life insurance | 114,418 | 112,392 | ||||||
Other assets | 123,624 | 54,744 | ||||||
TOTAL ASSETS | $ | 7,522,184 | $ | 6,711,236 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 1,474,847 | $ | 1,124,121 | ||||
Savings and interest-bearing transaction accounts | 3,647,328 | 3,298,854 | ||||||
Time deposits $250 thousand and under | 961,402 | 652,144 | ||||||
Time deposits over $250 thousand | 182,939 | 218,660 | ||||||
Total deposits | 6,266,516 | 5,293,779 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 97,874 | 328,658 | ||||||
Other borrowings | 135,111 | 165,816 | ||||||
Subordinated debentures | 118,248 | 118,220 | ||||||
Operating lease liabilities | 18,471 | 19,814 | ||||||
Other liabilities | 132,392 | 59,686 | ||||||
TOTAL LIABILITIES | 6,768,612 | 5,985,973 | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Common stock, no par value; authorized shares, 100,000,000; issued shares 50,598,670 and outstanding shares 50,467,635 at September 30, 2020 and issued and outstanding shares 50,498,410 at December 31, 2019 | 561,817 | 560,263 | ||||||
Retained earnings | 182,329 | 162,752 | ||||||
Treasury shares, at cost, 131,035 shares at September 30, 2020 and no shares at December 31, 2019 | (1,452 | ) | — | |||||
Accumulated other comprehensive income | 10,878 | 2,248 | ||||||
TOTAL STOCKHOLDERS' EQUITY | 753,572 | 725,263 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 7,522,184 | $ | 6,711,236 |
Lakeland Bancorp, Inc. | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||||||
INCOME STATEMENT | ||||||||||||||||||||
Net interest income | $ | 52,134 | $ | 50,519 | $ | 49,899 | $ | 49,548 | $ | 48,682 | ||||||||||
Provision for loan losses | (8,000 | ) | (9,000 | ) | (9,223 | ) | (1,086 | ) | (536 | ) | ||||||||||
Gains on sales of investment securities | — | — | 342 | — | — | |||||||||||||||
Gains on sales of loans | 1,437 | 710 | 415 | 375 | 486 | |||||||||||||||
(Loss) gain on equity securities | (170 | ) | 198 | (653 | ) | (29 | ) | 72 | ||||||||||||
Other noninterest income | 5,506 | 4,573 | 7,907 | 7,638 | 6,142 | |||||||||||||||
Long-term debt prepayment fee | — | — | (356 | ) | — | — | ||||||||||||||
Merger-related expenses | — | — | — | — | — | |||||||||||||||
Other noninterest expense | (32,097 | ) | (31,462 | ) | (32,148 | ) | (31,523 | ) | (29,563 | ) | ||||||||||
Pretax income | 18,810 | 15,538 | 16,183 | 24,923 | 25,283 | |||||||||||||||
Provision for income taxes | (4,383 | ) | (3,687 | ) | (3,791 | ) | (6,208 | ) | (6,409 | ) | ||||||||||
Net income | $ | 14,427 | $ | 11,851 | $ | 12,392 | $ | 18,715 | $ | 18,874 | ||||||||||
Basic earnings per common share | $ | 0.28 | $ | 0.23 | $ | 0.24 | $ | 0.37 | $ | 0.37 | ||||||||||
Diluted earnings per common share | $ | 0.28 | $ | 0.23 | $ | 0.24 | $ | 0.37 | $ | 0.37 | ||||||||||
Dividends paid per common share | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.125 | ||||||||||
Dividends paid | $ | 6,365 | $ | 6,365 | $ | 6,364 | $ | 6,363 | $ | 6,362 | ||||||||||
Weighted average shares - basic | 50,526 | 50,522 | 50,586 | 50,566 | 50,553 | |||||||||||||||
Weighted average shares - diluted | 50,620 | 50,593 | 50,728 | 50,748 | 50,694 | |||||||||||||||
SELECTED OPERATING RATIOS | ||||||||||||||||||||
Annualized return on average assets | 0.76 | % | 0.67 | % | 0.76 | % | 1.15 | % | 1.17 | % | ||||||||||
Annualized return on average common equity | 7.64 | % | 6.42 | % | 6.77 | % | 10.32 | % | 10.61 | % | ||||||||||
Annualized return on average tangible common equity (1) | 9.71 | % | 8.19 | % | 8.65 | % | 13.29 | % | 13.74 | % | ||||||||||
Annualized net interest margin | 2.96 | % | 3.06 | % | 3.28 | % | 3.27 | % | 3.25 | % | ||||||||||
Efficiency ratio (1) | 53.96 | % | 55.62 | % | 55.30 | % | 54.20 | % | 52.77 | % | ||||||||||
Common stockholders' equity to total assets | 10.02 | % | 9.96 | % | 10.51 | % | 10.81 | % | 10.99 | % | ||||||||||
Tangible common equity to tangible assets (1) | 8.06 | % | 7.99 | % | 8.41 | % | 8.62 | % | 8.72 | % | ||||||||||
Tier 1 risk-based ratio | 10.34 | % | 10.45 | % | 10.61 | % | 11.02 | % | 11.24 | % | ||||||||||
Total risk-based ratio | 12.93 | % | 12.98 | % | 13.04 | % | 13.40 | % | 13.70 | % | ||||||||||
Tier 1 leverage ratio | 8.36 | % | 8.69 | % | 9.38 | % | 9.41 | % | 9.34 | % | ||||||||||
Common equity tier 1 capital ratio | 9.83 | % | 9.93 | % | 10.08 | % | 10.46 | % | 10.66 | % | ||||||||||
Book value per common share | $ | 14.93 | $ | 14.77 | $ | 14.60 | $ | 14.36 | $ | 14.13 | ||||||||||
Tangible book value per common share (1) | $ | 11.77 | $ | 11.60 | $ | 11.43 | $ | 11.18 | $ | 10.94 | ||||||||||
(1) See Supplemental Information - Non-GAAP Financial Measures |
Lakeland Bancorp, Inc. | |||||||||||||||
Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
For the Quarter Ended | |||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
(Dollars in thousands) | 2020 | 2020 | 2020 | 2019 | 2019 | ||||||||||
SELECTED BALANCE SHEET DATA AT PERIOD-END | |||||||||||||||
Loans | $ | 5,855,024 | $ | 5,769,127 | $ | 5,331,863 | $ | 5,140,940 | $ | 4,925,998 | |||||
Allowance for loan losses | 65,242 | 57,839 | 48,884 | 40,003 | 38,655 | ||||||||||
Investment securities | 909,535 | 957,985 | 974,319 | 918,853 | 905,078 | ||||||||||
Total assets | 7,522,184 | 7,488,516 | 7,013,908 | 6,711,236 | 6,492,474 | ||||||||||
Total deposits | 6,266,516 | 6,125,502 | 5,455,138 | 5,293,779 | 5,210,619 | ||||||||||
Short-term borrowings | 97,874 | 183,116 | 419,085 | 328,658 | 199,326 | ||||||||||
Other borrowings | 253,359 | 273,954 | 258,944 | 284,036 | 284,029 | ||||||||||
Stockholders' equity | 753,572 | 745,489 | 736,922 | 725,263 | 713,204 | ||||||||||
LOANS | |||||||||||||||
Commercial, real estate | $ | 4,326,074 | $ | 4,260,917 | $ | 4,073,911 | $ | 3,924,762 | $ | 3,749,413 | |||||
Commercial, industrial and other | 426,821 | 402,239 | 467,346 | 431,934 | 391,486 | ||||||||||
Paycheck Protection Program | 325,115 | 325,999 | — | — | — | ||||||||||
Equipment financing | 116,410 | 115,651 | 116,421 | 111,076 | 104,689 | ||||||||||
Residential mortgages | 342,583 | 334,455 | 334,114 | 335,191 | 337,482 | ||||||||||
Consumer and home equity | 318,021 | 329,866 | 340,071 | 337,977 | 342,928 | ||||||||||
Total loans | $ | 5,855,024 | $ | 5,769,127 | $ | 5,331,863 | $ | 5,140,940 | $ | 4,925,998 | |||||
DEPOSITS | |||||||||||||||
Noninterest-bearing | $ | 1,474,847 | $ | 1,486,273 | $ | 1,129,695 | $ | 1,124,121 | $ | 1,101,083 | |||||
Savings and interest-bearing transaction accounts | 3,647,328 | 3,510,723 | 3,241,397 | 3,298,854 | 3,196,323 | ||||||||||
Time deposits | 1,144,341 | 1,128,506 | 1,084,046 | 870,804 | 913,213 | ||||||||||
Total deposits | $ | 6,266,516 | $ | 6,125,502 | $ | 5,455,138 | $ | 5,293,779 | $ | 5,210,619 | |||||
Total loans to total deposits ratio | 93.4 | % | 94.2 | % | 97.7 | % | 97.1 | % | 94.5 | % | |||||
SELECTED AVERAGE BALANCE SHEET DATA | |||||||||||||||
Loans | $ | 5,775,093 | $ | 5,572,865 | $ | 5,208,097 | $ | 5,025,377 | $ | 4,937,488 | |||||
Investment securities | 873,066 | 891,037 | 879,987 | 894,698 | 869,734 | ||||||||||
Interest-earning assets | 7,009,939 | 6,650,993 | 6,133,003 | 6,022,525 | 5,947,645 | ||||||||||
Total assets | 7,516,069 | 7,137,529 | 6,565,302 | 6,470,082 | 6,379,675 | ||||||||||
Noninterest-bearing demand deposits | 1,475,422 | 1,364,785 | 1,109,638 | 1,130,192 | 1,100,413 | ||||||||||
Savings deposits | 548,662 | 525,224 | 496,798 | 492,903 | 494,377 | ||||||||||
Interest-bearing transaction accounts | 3,086,260 | 2,908,299 | 2,830,778 | 2,814,831 | 2,678,424 | ||||||||||
Time deposits | 1,176,181 | 1,093,760 | 872,998 | 873,924 | 964,159 | ||||||||||
Total deposits | 6,286,525 | 5,892,068 | 5,310,212 | 5,311,850 | 5,237,373 | ||||||||||
Short-term borrowings | 58,845 | 82,694 | 159,825 | 67,097 | 74,042 | ||||||||||
Other borrowings | 269,093 | 273,904 | 277,753 | 284,049 | 287,839 | ||||||||||
Total interest-bearing liabilities | 5,139,042 | 4,883,881 | 4,638,152 | 4,532,804 | 4,498,841 | ||||||||||
Stockholders' equity | 751,099 | 742,050 | 736,719 | 719,292 | 705,726 |
Lakeland Bancorp, Inc. | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||||||
AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT BASIS) AND COSTS | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Loans | 3.91 | % | 4.03 | % | 4.47 | % | 4.60 | % | 4.71 | % | ||||||||||
Taxable investment securities and other | 2.09 | % | 2.31 | % | 2.56 | % | 2.34 | % | 2.50 | % | ||||||||||
Tax-exempt securities | 2.55 | % | 2.70 | % | 2.67 | % | 2.69 | % | 2.70 | % | ||||||||||
Federal funds sold and interest-bearing cash accounts | 0.10 | % | 0.08 | % | 1.42 | % | 1.65 | % | 1.98 | % | ||||||||||
Total interest-earning assets | 3.49 | % | 3.69 | % | 4.17 | % | 4.21 | % | 4.32 | % | ||||||||||
LIABILITIES | ||||||||||||||||||||
Savings accounts | 0.06 | % | 0.07 | % | 0.07 | % | 0.07 | % | 0.06 | % | ||||||||||
Interest-bearing transaction accounts | 0.44 | % | 0.55 | % | 0.97 | % | 1.05 | % | 1.24 | % | ||||||||||
Time deposits | 1.19 | % | 1.48 | % | 1.81 | % | 1.93 | % | 2.00 | % | ||||||||||
Borrowings | 2.73 | % | 2.62 | % | 2.54 | % | 2.86 | % | 2.89 | % | ||||||||||
Total interest-bearing liabilities | 0.72 | % | 0.86 | % | 1.18 | % | 1.26 | % | 1.41 | % | ||||||||||
Net interest spread (taxable equivalent basis) | 2.77 | % | 2.83 | % | 2.99 | % | 2.96 | % | 2.91 | % | ||||||||||
Annualized net interest margin (taxable equivalent basis) | 2.96 | % | 3.06 | % | 3.28 | % | 3.27 | % | 3.25 | % | ||||||||||
Annualized cost of deposits | 0.44 | % | 0.55 | % | 0.82 | % | 0.88 | % | 1.00 | % | ||||||||||
ASSET QUALITY DATA | ||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 57,839 | $ | 48,884 | $ | 40,003 | $ | 38,655 | $ | 38,662 | ||||||||||
Provision for loan losses | 8,000 | 9,000 | 9,223 | 1,086 | 536 | |||||||||||||||
Charge-offs | (682 | ) | (142 | ) | (483 | ) | (198 | ) | (809 | ) | ||||||||||
Recoveries | 85 | 97 | 141 | 460 | 266 | |||||||||||||||
Balance at end of period | $ | 65,242 | $ | 57,839 | $ | 48,884 | $ | 40,003 | $ | 38,655 | ||||||||||
NET LOAN CHARGE-OFFS (RECOVERIES) | ||||||||||||||||||||
Commercial, real estate | $ | 298 | $ | (36 | ) | $ | 111 | $ | (18 | ) | $ | 203 | ||||||||
Commercial, industrial and other | 173 | (13 | ) | (31 | ) | 13 | 393 | |||||||||||||
Equipment financing | 95 | (11 | ) | 71 | (297 | ) | — | |||||||||||||
Residential mortgages | (1 | ) | — | 96 | — | (55 | ) | |||||||||||||
Consumer and home equity | 32 | 105 | 95 | 40 | 2 | |||||||||||||||
Net charge-offs (recoveries) | $ | 597 | $ | 45 | $ | 342 | $ | (262 | ) | $ | 543 | |||||||||
NON-PERFORMING ASSETS | ||||||||||||||||||||
Commercial, real estate | $ | 26,145 | $ | 25,615 | $ | 24,770 | $ | 13,281 | $ | 9,164 | ||||||||||
Commercial, industrial and other | 1,484 | 1,546 | 1,909 | 1,539 | 795 | |||||||||||||||
Equipment financing | 444 | 400 | 199 | 284 | 271 | |||||||||||||||
Residential mortgages | 2,695 | 2,860 | 2,837 | 3,428 | 3,250 | |||||||||||||||
Consumer and home equity | 2,322 | 2,432 | 2,689 | 2,606 | 2,437 | |||||||||||||||
Total non-accrual loans | 33,090 | 32,853 | 32,404 | 21,138 | 15,917 | |||||||||||||||
Property acquired through foreclosure or repossession | — | 354 | 393 | 563 | 944 | |||||||||||||||
Total non-performing assets | $ | 33,090 | $ | 33,207 | $ | 32,797 | $ | 21,701 | $ | 16,861 | ||||||||||
Loans past due 90 days or more and still accruing | $ | 165 | $ | 58 | $ | 99 | $ | — | $ | — | ||||||||||
Loans restructured and still accruing | $ | 4,299 | $ | 4,667 | $ | 4,719 | $ | 5,650 | $ | 5,029 | ||||||||||
Ratio of allowance for loan losses to total loans | 1.11 | % | 1.00 | % | 0.92 | % | 0.78 | % | 0.78 | % | ||||||||||
Total non-accrual loans to total loans | 0.57 | % | 0.57 | % | 0.61 | % | 0.41 | % | 0.32 | % | ||||||||||
Total non-performing assets to total assets | 0.44 | % | 0.44 | % | 0.47 | % | 0.32 | % | 0.26 | % | ||||||||||
Annualized net charge-offs (recoveries) to average loans | 0.04 | % | — | % | 0.03 | % | (0.02 | ) | % | 0.04 | % |
Lakeland Bancorp, Inc. | ||||||||||||||||||||
Supplemental Information - Non-GAAP Financial Measures | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
At or for the Quarter Ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
(Dollars in thousands, except ratios and per share amounts) | 2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||||||
CALCULATION OF TANGIBLE BOOK VALUE PER COMMON SHARE | ||||||||||||||||||||
Total common stockholders' equity at end of period - GAAP | $ | 753,572 | $ | 745,489 | $ | 736,922 | $ | 725,263 | $ | 713,204 | ||||||||||
Less: Goodwill | 156,277 | 156,277 | 156,277 | 156,277 | 156,277 | |||||||||||||||
Less: Other identifiable intangible assets | 3,538 | 3,788 | 4,049 | 4,314 | 4,602 | |||||||||||||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 593,757 | $ | 585,424 | $ | 576,596 | $ | 564,672 | $ | 552,325 | ||||||||||
Shares outstanding at end of period | 50,468 | 50,463 | 50,462 | 50,498 | 50,489 | |||||||||||||||
Book value per share - GAAP | $ | 14.93 | $ | 14.77 | $ | 14.60 | $ | 14.36 | $ | 14.13 | ||||||||||
Tangible book value per share - Non-GAAP | $ | 11.77 | $ | 11.60 | $ | 11.43 | $ | 11.18 | $ | 10.94 | ||||||||||
CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | ||||||||||||||||||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 593,757 | $ | 585,424 | $ | 576,596 | $ | 564,672 | $ | 552,325 | ||||||||||
Total assets at end of period - GAAP | $ | 7,522,184 | $ | 7,488,516 | $ | 7,013,908 | $ | 6,711,236 | $ | 6,492,474 | ||||||||||
Less: Goodwill | 156,277 | 156,277 | 156,277 | 156,277 | 156,277 | |||||||||||||||
Less: Other identifiable intangible assets | 3,538 | 3,788 | 4,049 | 4,314 | 4,602 | |||||||||||||||
Total tangible assets at end of period - Non-GAAP | $ | 7,362,369 | $ | 7,328,451 | $ | 6,853,582 | $ | 6,550,645 | $ | 6,331,595 | ||||||||||
Common equity to assets - GAAP | 10.02 | % | 9.96 | % | 10.51 | % | 10.81 | % | 10.99 | % | ||||||||||
Tangible common equity to tangible assets - Non-GAAP | 8.06 | % | 7.99 | % | 8.41 | % | 8.62 | % | 8.72 | % | ||||||||||
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY | ||||||||||||||||||||
Net income - GAAP | $ | 14,427 | $ | 11,851 | $ | 12,392 | $ | 18,715 | $ | 18,874 | ||||||||||
Total average common stockholders' equity - GAAP | $ | 751,099 | $ | 742,050 | $ | 736,719 | $ | 719,292 | $ | 705,726 | ||||||||||
Less: Average goodwill | 156,277 | 156,277 | 156,277 | 156,277 | 155,835 | |||||||||||||||
Less: Average other identifiable intangible assets | 3,689 | 3,942 | 4,205 | 4,468 | 4,761 | |||||||||||||||
Total average tangible common stockholders' equity - Non-GAAP | $ | 591,133 | $ | 581,831 | $ | 576,237 | $ | 558,547 | $ | 545,130 | ||||||||||
Return on average common stockholders' equity - GAAP | 7.64 | % | 6.42 | % | 6.77 | % | 10.32 | % | 10.61 | % | ||||||||||
Return on average tangible common stockholders' equity - Non-GAAP | 9.71 | % | 8.19 | % | 8.65 | % | 13.29 | % | 13.74 | % | ||||||||||
CALCULATION OF EFFICIENCY RATIO | ||||||||||||||||||||
Total noninterest expense | $ | 32,097 | $ | 31,462 | $ | 32,504 | $ | 31,523 | $ | 29,563 | ||||||||||
Amortization of core deposit intangibles | (250 | ) | (261 | ) | (265 | ) | (289 | ) | (288 | ) | ||||||||||
Long term debt prepayment fees | $ | — | $ | — | $ | (356 | ) | |||||||||||||
Noninterest expense, as adjusted | $ | 31,847 | $ | 31,201 | $ | 31,883 | $ | 31,234 | $ | 29,275 | ||||||||||
Net interest income | $ | 52,134 | $ | 50,519 | $ | 49,899 | $ | 49,548 | $ | 48,682 | ||||||||||
Total noninterest income | 6,773 | 5,481 | 8,011 | 7,984 | 6,700 | |||||||||||||||
Total revenue | 58,907 | 56,000 | 57,910 | 57,532 | 55,382 | |||||||||||||||
Tax-equivalent adjustment on municipal securities | 108 | 93 | 88 | 91 | 97 | |||||||||||||||
(Gains) on sales of investment securities | — | — | (342 | ) | — | — | ||||||||||||||
Total revenue, as adjusted | $ | 59,015 | $ | 56,093 | $ | 57,656 | $ | 57,623 | $ | 55,479 | ||||||||||
Efficiency ratio - Non-GAAP | 53.96 | % | 55.62 | % | 55.30 | % | 54.20 | % | 52.77 | % |
Lakeland Bancorp, Inc. | |||||||||
Supplemental Information - Non-GAAP Financial Measures | |||||||||
(Unaudited) | |||||||||
For the Nine Months Ended September 30, | |||||||||
(Dollars in thousands) | 2020 | 2019 | |||||||
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY | |||||||||
Net income - GAAP | $ | 38,670 | $ | 51,957 | |||||
Total average common stockholders' equity - GAAP | $ | 743,318 | $ | 689,538 | |||||
Less: Average goodwill | $ | 156,277 | $ | 154,531 | |||||
Less: Average other identifiable intangible assets | $ | 3,944 | $ | 5,022 | |||||
Total average tangible common stockholders' equity - Non-GAAP | $ | 583,097 | $ | 529,985 | |||||
Return on average common stockholders' equity - GAAP | 6.95 | % | 10.07 | % | |||||
Return on average tangible common stockholders' equity - Non-GAAP | 8.86 | % | 13.11 | % | |||||
CALCULATION OF EFFICIENCY RATIO | |||||||||
Total noninterest expense | $ | 96,063 | $ | 95,233 | |||||
Amortization of core deposit intangibles | $ | (776 | ) | $ | (893 | ) | |||
Long-term debt prepayment fee | $ | (356 | ) | $ | — | ||||
Merger-related expenses | $ | — | $ | (3,178 | ) | ||||
Noninterest expense, as adjusted | $ | 94,931 | $ | 91,162 | |||||
Net interest income | $ | 152,552 | $ | 146,486 | |||||
Noninterest income | $ | 20,265 | $ | 18,812 | |||||
Total revenue | $ | 172,817 | $ | 165,298 | |||||
Tax-equivalent adjustment on municipal securities | $ | 289 | $ | 310 | |||||
Gains on sales of investment securities | $ | (342 | ) | $ | — | ||||
Total revenue, as adjusted | $ | 172,764 | $ | 165,608 | |||||
Efficiency ratio - Non-GAAP | 54.95 | % | 55.05 | % |