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Lakeland Bancorp Announces First Quarter Results

Lakeland Bancorp, Inc.
Lakeland Bancorp, Inc.

OAK RIDGE, N.J., April 19, 2024 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (NASDAQ: LBAI) (the “Company”), the parent company of Lakeland Bank (“Lakeland”), reported net income of $19.8 million and earnings per diluted share ("EPS") of $0.30 for the three months ended March 31, 2024 compared to net income of $19.8 million and diluted EPS of $0.30 for the three months ended March 31, 2023. For the first quarter of 2024, annualized return on average assets was 0.73%, annualized return on average common equity was 6.79% and annualized return on average tangible common equity (non-GAAP) was 8.91%.

Thomas Shara, Lakeland Bancorp’s President and CEO commented on the quarterly financial results, "Despite the uncertain economic environment, we are pleased with our results and our continued outstanding asset quality. I want to thank all of the Lakeland associates for their continued incredible contributions and unwavering customer support."

Regarding the announced merger with Provident Financial Services, Inc. ("Provident"), Mr. Shara continued, "We are delighted that all regulatory approvals required for the merger have been obtained and Provident is diligently moving forward with its subordinated debt offering which is a required closing condition of the merger. Both companies are excited to complete the merger quickly and create New Jersey’s super community bank that focuses on serving our customers.”

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First Quarter 2024 Highlights

  • In the first quarter of 2024 a benefit for credit losses of $2.7 million was recorded resulting primarily from a $2.9 million recovery on Signature Bank subordinated debt previously charged off partially offset by a $239,000 provision for credit losses on loans.

  • First quarter 2024 results continue to be impacted by the increased market rate environment. Net interest margin for the first quarter of 2024 decreased six basis points to 2.46% from 2.52% in the prior quarter and decreased 61 basis points from 3.07% in the first quarter of 2023. For more information, please see "Net Interest Margin and Net Interest Income" below.

  • Nonperforming assets decreased 12% to $14.9 million, or 0.14% of total assets, for the first quarter of 2024 compared to $16.9 million, or 0.16% of total assets, in the first quarter of 2023 and decreased 43% compared to $26.0 million, or 0.23% of total assets in the linked fourth quarter.

Net Interest Margin and Net Interest Income

Net interest margin for the three months ended March 31, 2024 declined from previous periods as a result of an increase in the cost of interest-bearing liabilities partially offset by an increase in the yields on interest-earning assets driven by the increase in market interest rates. The increased rate environment also has resulted in a change in customers' banking behaviors causing them to move funds from noninterest-bearing and lower yielding interest-bearing transaction and savings accounts to higher yielding time deposits.

Net interest income for the first quarter of 2024 of $62.6 million decreased $13.4 million compared to the first quarter of 2023.

Net interest margin for the first quarter of 2024 of 2.46% decreased 61 basis points compared to the first quarter of 2023 and decreased 6 basis points compared to the fourth quarter of 2023.

The yield on interest-earning assets for the first quarter of 2024 increased 42 basis points to 4.98% as compared to 4.56% for the first quarter of 2023 and increased 5 basis points as compared to 4.93% for the fourth quarter of 2023.

The cost of interest-bearing liabilities for the first quarter of 2024 was 3.39% compared to 2.11% for the first quarter of 2023 and 3.25% for the fourth quarter of 2023.

Noninterest Income

For the first quarter of 2024, noninterest income totaled $5.1 million, a decrease of $1.2 million as compared to the first quarter of 2023. Service charges on deposit accounts declined $830,000 from the first quarter of 2023 to the same period in 2024 resulting from a decline in interchange income due to the impact of the Durbin Amendment which became effective for Lakeland in the third quarter of 2023. One of the provisions of the Durbin Amendment is reduced interchange income for banks over $10 billion in assets. Commissions and fees decreased $235,000 driven primarily by decreases in loan fee income and investment services income. Losses on equity securities totaled $129,000 in the first quarter of 2024 compared to gains of $148,000 in the first quarter of 2023. Gains on sales of loans decreased $125,000 compared to the first quarter of 2023, while swap income increased $233,000. Additionally, income on bank owned life insurance increased $101,000 from the first quarter of 2023 to the same period in 2024 due primarily to a claim received in the first quarter of 2024.

Noninterest Expense

Noninterest expense for the first quarter of 2024 of $44.6 million decreased $4.0 million compared to the first quarter of 2023 due primarily to compensation and employee benefits which decreased $3.1 million primarily as a result of a decline in headcount related to the anticipated merger with Provident Financial Services, Inc. Merger-related expenses declined from $295,000 in the first quarter of 2023 to $68,000 for the first quarter of 2024 due to the timing of expenses incurred. Other operating expenses in the first quarter of 2024 decreased $865,000 compared to the same period in 2023 due primarily to decreased consulting fees, telecommunications expense, appraisal fees and other expenses. FDIC insurance expense increased $430,000 due to an increase in the assessment rate starting in second quarter of 2023 related to Lakeland's asset size exceeding $10 billion.

Income Tax Expense

The effective tax rate for the first quarter of 2024 was 23.0% compared to 22.9% for the first quarter of 2023.

Financial Condition

At March 31, 2024, total assets were $10.96 billion, a decrease of $173.7 million, compared to December 31, 2023. As of March 31, 2024, total loans decreased $23.4 million to $8.32 billion and investment securities decreased $41.9 million to $1.81 billion from December 31, 2023. On the funding side, total deposits decreased $80.8 million from December 31, 2023, to $8.50 billion at March 31, 2024. During the first three months of 2024, noninterest-bearing accounts and transaction and savings accounts decreased $102.6 million and $41.5 million, respectively, while time deposits increased $63.3 million. Borrowings decreased $111.1 million from December 31, 2023 to March 31, 2024. At March 31, 2024, total loans as a percent of total deposits was 97.9%.

Asset Quality

At March 31, 2024, non-performing assets totaled $14.9 million or 0.14% of total assets compared to $16.9 million, or 0.16% of total assets at March 31, 2023 and $26.0 million, or 0.23% of total assets at December 31, 2023. Non-performing assets decreased $11.1 million compared to the fourth quarter of 2023 primarily as a result of the full payoff of one construction loan totaling $12.7 million that was in non-accrual status. Non-accrual loans as a percent of total loans was 0.18% at March 31, 2024, compared to 0.21% at March 31, 2023 and 0.31% at December 31, 2023. The allowance for credit losses on loans totaled $76.8 million, 0.92% of total loans, at March 31, 2024, compared to $71.4 million, 0.90% of total loans, at March 31, 2023. In the first quarter of 2024, the Company had net charge-offs of $579,000 or 0.03% of average loans compared to $74,000 or 0.00% of average loans on an annualized basis for the same period in 2023.

In the first quarter of 2024 a $2.7 million benefit for credit losses was recorded compared to a provision of $7.9 million in the first quarter of 2023. The benefit for credit losses for the first quarter of 2024 is comprised of a benefit for credit losses on investment securities of $2.9 million, a provision for credit losses on loans of $239,000 and a benefit for off-balance-sheet exposures of $72,000.

Capital

At March 31, 2024, stockholders' equity was $1.18 billion compared to $1.17 billion at December 31, 2023, a 1% increase, resulting primarily from net income, partially offset by the payment of dividends. Lakeland Bank remains above FDIC “well capitalized” standards, with a Tier 1 leverage ratio of 9.46% at March 31, 2024. The book value per common share increased 4% to $18.10 at March 31, 2024 compared to $17.33 at March 31, 2023. Tangible book value per common share was $13.83 and $13.01 at March 31, 2024 and 2023, respectively (see "Supplemental Information - Non-GAAP Financial Measures" for a reconciliation of non-GAAP financial measures, including tangible book value). At March 31, 2024, the Company’s common equity to assets ratio and tangible common equity to tangible assets ratio (non-GAAP) were 10.76% and 8.43%, respectively, compared to 10.40% and 8.02% at March 31, 2023. On April 17, 2024, the Company declared a quarterly cash dividend of $0.145 per share to be paid on May 8, 2024, to shareholders of record as of April 29, 2024.

Forward-Looking Statements

The information disclosed in this document includes various forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipates,” “projects,” “intends,” “estimates,” “expects,” “believes,” “plans,” “may,” “will,” “should,” “could,” and other similar expressions are intended to identify such forward-looking statements. The Company cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. Accordingly, you should not place undue reliance on forward-looking statements. In addition to the specific risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as updated by our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, the following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: changes in the financial services industry and the U.S. and global capital markets; inflation and other changes in economic conditions nationally, regionally and in the Company’s markets; the nature and timing of actions of the Federal Reserve Board and other regulators; the nature and timing of legislation and regulation affecting the financial services industry; government intervention in the U.S. financial system; changes in federal and state tax laws; changes in levels of market interest rates, which may affect demand for our products and the value of our financial instruments; pricing pressures on loan and deposit products; credit risks of the Company’s lending and leasing activities; successful implementation, deployment and upgrades of new and existing technology, systems, services and products; customers’ acceptance of the Company’s products and services; competition and expenses related to our announced merger with Provident Financial, unexpected delays related to the merger, inability to satisfy other closing conditions required to complete the merger, and failure to realize anticipated efficiencies and synergies from the merger. Any statements made by the Company that are not historical facts should be considered to be forward-looking statements. The Company is not obligated to update and does not undertake to update any of its forward-looking statements made herein.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results.

The Company also provides measurements and ratios based on tangible equity and tangible assets. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

Specifically, the Company also uses an efficiency ratio that is a non-GAAP financial measure. The ratio that the Company uses excludes amortization of core deposit intangibles, and, where applicable, long-term debt prepayment fees and merger-related expenses. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes gains and losses from the sale of investment securities, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a relevant measure to compare the operating performance period to period.

These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. See accompanying "Supplemental Information - Non-GAAP Financial Measures" and "Supplemental Information – Reconciliation of Net Income" for a reconciliation of non-GAAP financial measures.

About Lakeland

Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc. (NASDAQ:LBAI), which had $10.96 billion in total assets at March 31, 2024. With an extensive branch network and commercial lending centers throughout New Jersey and Highland Mills, N.Y., the Bank offers business and retail banking products and services. Business services include commercial loans and lines of credit, commercial real estate loans, loans for healthcare services, asset-based lending, equipment financing, small business loans and lines and cash management services. Consumer services include online and mobile banking, home equity loans and lines, mortgage options and wealth management solutions. Lakeland is proud to be recognized as one of New Jersey's Best-In State Banks by Forbes and Statista, rated a 5-Star Bank by Bauer Financial and named one of New Jersey's 50 Fastest Growing Companies by NJBIZ. Visit LakelandBank.com or 973-697-6140 for more information.   
                               

Thomas J. Shara

Thomas F. Splaine

President & CEO

EVP & CFO


Lakeland Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)

 

 

For the Three Months Ended
March 31,

(in thousands, except per share data)

 

 

2024

 

 

 

2023

Interest Income

 

 

 

 

Loans and fees

 

$

114,680

 

 

$

100,481

Federal funds sold and interest-bearing deposits with banks

 

 

1,102

 

 

 

728

Taxable investment securities and other

 

 

11,631

 

 

 

11,554

Tax-exempt investment securities

 

 

1,448

 

 

 

1,642

Total Interest Income

 

 

128,861

 

 

 

114,405

Interest Expense

 

 

 

 

Deposits

 

 

54,763

 

 

 

29,158

Federal funds purchased and securities sold under agreements to repurchase

 

 

5,560

 

 

 

7,222

Other borrowings

 

 

5,980

 

 

 

2,100

Total Interest Expense

 

 

66,303

 

 

 

38,480

Net Interest Income

 

 

62,558

 

 

 

75,925

(Benefit) provision for credit losses

 

 

(2,692

)

 

 

7,893

Net Interest Income after Provision for Credit Losses

 

 

65,250

 

 

 

68,032

Noninterest Income

 

 

 

 

Service charges on deposit accounts

 

 

1,959

 

 

 

2,789

Commissions and fees

 

 

1,690

 

 

 

1,925

Income on bank owned life insurance

 

 

877

 

 

 

776

(Loss) gain on equity securities

 

 

(129

)

 

 

148

Gains on sales of loans

 

 

305

 

 

 

430

Swap income

 

 

289

 

 

 

56

Other income

 

 

103

 

 

 

141

Total Noninterest Income

 

 

5,094

 

 

 

6,265

Noninterest Expense

 

 

 

 

Compensation and employee benefits

 

 

26,874

 

 

 

29,996

Premises and equipment

 

 

7,886

 

 

 

7,977

FDIC insurance

 

 

1,393

 

 

 

963

Data processing

 

 

1,781

 

 

 

1,862

Merger-related expenses

 

 

68

 

 

 

295

Other operating expenses

 

 

6,647

 

 

 

7,512

Total Noninterest Expense

 

 

44,649

 

 

 

48,605

Income before provision for income taxes

 

 

25,695

 

 

 

25,692

Provision for income taxes

 

 

5,900

 

 

 

5,887

Net Income

 

$

19,795

 

 

$

19,805

Per Share of Common Stock

 

 

 

Basic earnings

 

$

0.30

 

 

$

0.30

Diluted earnings

 

$

0.30

 

 

$

0.30

Dividends

 

$

0.145

 

 

$

0.145


Lakeland Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets

(dollars in thousands)

March 31, 2024

 

December 31, 2023

 

(Unaudited)

 

 

Assets

 

 

 

Cash

$

203,186

 

 

$

293,366

 

Interest-bearing deposits due from banks

 

4,433

 

 

 

27,289

 

Total cash and cash equivalents

 

207,619

 

 

 

320,655

 

Investment securities available for sale, at estimated fair value (allowance for credit losses of $0 at March 31, 2024 and December 31, 2023)

 

914,029

 

 

 

946,282

 

Investment securities held to maturity (estimated fair value of $681,857 at March 31, 2024 and $702,563 at December 31, 2023, allowance for credit losses of $146 at March 31, 2024 and December 31, 2023)

 

827,107

 

 

 

836,377

 

Equity securities, at fair value

 

17,646

 

 

 

17,697

 

Federal Home Loan Bank and other membership stocks, at cost

 

52,205

 

 

 

52,517

 

Loans held for sale

 

564

 

 

 

664

 

Loans, net of deferred fees

 

8,320,424

 

 

 

8,343,861

 

Less: Allowance for credit losses

 

76,823

 

 

 

77,163

 

Net loans

 

8,243,601

 

 

 

8,266,698

 

Premises and equipment, net

 

51,783

 

 

 

52,846

 

Operating lease right-of-use assets

 

15,009

 

 

 

16,008

 

Accrued interest receivable

 

37,968

 

 

 

37,508

 

Goodwill

 

271,829

 

 

 

271,829

 

Other identifiable intangible assets

 

6,623

 

 

 

7,058

 

Bank owned life insurance

 

160,587

 

 

 

159,862

 

Other assets

 

158,314

 

 

 

152,566

 

Total Assets

$

10,964,884

 

 

$

11,138,567

 

Liabilities and Stockholders' Equity

 

 

 

Liabilities

 

 

 

Deposits:

 

 

 

Noninterest-bearing

$

1,679,033

 

 

$

1,781,619

 

Savings and interest-bearing transaction accounts

 

4,790,634

 

 

 

4,832,171

 

Time deposits $250 thousand and under

 

1,518,991

 

 

 

1,458,640

 

Time deposits over $250 thousand

 

511,780

 

 

 

508,808

 

Total deposits

 

8,500,438

 

 

 

8,581,238

 

Federal funds purchased and securities sold under agreements to repurchase

 

602,956

 

 

 

714,152

 

Other borrowings

 

325,000

 

 

 

325,000

 

Subordinated debentures

 

194,814

 

 

 

194,705

 

Operating lease liabilities

 

15,820

 

 

 

16,891

 

Other liabilities

 

146,426

 

 

 

137,212

 

Total Liabilities

 

9,785,454

 

 

 

9,969,198

 

Stockholders' Equity

 

 

 

Common stock, no par value; authorized 100,000,000 shares; issued 65,285,261 shares and outstanding 65,154,226 shares at March 31, 2024 and issued 65,161,310 shares and outstanding 65,030,275 shares at December 31, 2023

 

859,712

 

 

 

858,857

 

Retained earnings

 

386,319

 

 

 

376,044

 

Treasury shares, at cost, 131,035 shares at March 31, 2024 and December 31, 2023

 

(1,452

)

 

 

(1,452

)

Accumulated other comprehensive loss

 

(65,149

)

 

 

(64,080

)

Total Stockholders' Equity

 

1,179,430

 

 

 

1,169,369

 

Total Liabilities and Stockholders' Equity

$

10,964,884

 

 

$

11,138,567

 


Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)

 

 

For the Quarter Ended

(dollars in thousands, except per share data)

 

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

Income Statement

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

62,558

 

 

$

65,308

 

 

$

68,906

 

 

$

71,542

 

 

$

75,925

 

Benefit (provision) for credit losses

 

 

2,692

 

 

 

(1,950

)

 

 

(1,262

)

 

 

(1,947

)

 

 

(7,893

)

Gains on sales of loans

 

 

305

 

 

 

505

 

 

 

349

 

 

 

229

 

 

 

430

 

(Loss) gain on equity securities

 

 

(129

)

 

 

391

 

 

 

(294

)

 

 

(135

)

 

 

148

 

Other noninterest income

 

 

4,918

 

 

 

5,890

 

 

 

5,363

 

 

 

6,575

 

 

 

5,687

 

Merger-related expenses

 

 

(68

)

 

 

(129

)

 

 

(198

)

 

 

(242

)

 

 

(295

)

Other noninterest expense

 

 

(44,581

)

 

 

(42,864

)

 

 

(44,170

)

 

 

(46,766

)

 

 

(48,310

)

Pretax income

 

 

25,695

 

 

 

27,151

 

 

 

28,694

 

 

 

29,256

 

 

 

25,692

 

Provision for income taxes

 

 

(5,900

)

 

 

(7,083

)

 

 

(6,455

)

 

 

(6,628

)

 

 

(5,887

)

Net income

 

$

19,795

 

 

$

20,068

 

 

$

22,239

 

 

$

22,628

 

 

$

19,805

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.30

 

 

$

0.31

 

 

$

0.34

 

 

$

0.34

 

 

$

0.30

 

Diluted earnings per common share

 

$

0.30

 

 

$

0.30

 

 

$

0.34

 

 

$

0.34

 

 

$

0.30

 

Dividends paid per common share

 

$

0.145

 

 

$

0.145

 

 

$

0.145

 

 

$

0.145

 

 

$

0.145

 

Dividends paid

 

$

9,520

 

 

$

9,521

 

 

$

9,521

 

 

$

9,529

 

 

$

9,500

 

Weighted average shares - basic

 

 

65,135

 

 

 

65,064

 

 

 

65,064

 

 

 

65,059

 

 

 

64,966

 

Weighted average shares - diluted

 

 

65,324

 

 

 

65,258

 

 

 

65,222

 

 

 

65,173

 

 

 

65,228

 

 

 

 

 

 

 

 

 

 

 

 

Selected Operating Ratios

 

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

 

0.73

%

 

 

0.73

%

 

 

0.81

%

 

 

0.84

%

 

 

0.75

%

Annualized return on average common equity

 

 

6.79

%

 

 

6.97

%

 

 

7.76

%

 

 

8.03

%

 

 

7.17

%

Annualized return on average tangible common equity (1)

 

 

8.91

%

 

 

9.23

%

 

 

10.29

%

 

 

10.67

%

 

 

9.57

%

Annualized net interest margin

 

 

2.46

%

 

 

2.52

%

 

 

2.68

%

 

 

2.83

%

 

 

3.07

%

Efficiency ratio (1)

 

 

64.88

%

 

 

58.45

%

 

 

58.43

%

 

 

58.82

%

 

 

57.84

%

Common stockholders' equity to total assets

 

 

10.76

%

 

 

10.50

%

 

 

10.16

%

 

 

10.38

%

 

 

10.40

%

Tangible common equity to tangible assets (1)

 

 

8.43

%

 

 

8.20

%

 

 

7.86

%

 

 

8.02

%

 

 

8.02

%

Tier 1 risk-based ratio

 

 

11.72

%

 

 

11.51

%

 

 

11.31

%

 

 

11.43

%

 

 

11.33

%

Total risk-based ratio

 

 

14.33

%

 

 

14.11

%

 

 

13.87

%

 

 

14.03

%

 

 

13.93

%

Tier 1 leverage ratio

 

 

9.46

%

 

 

9.27

%

 

 

9.24

%

 

 

9.17

%

 

 

9.13

%

Common equity tier 1 capital ratio

 

 

11.20

%

 

 

11.00

%

 

 

10.80

%

 

 

10.90

%

 

 

10.81

%

Book value per common share

 

$

18.10

 

 

$

17.98

 

 

$

17.46

 

 

$

17.40

 

 

$

17.33

 

Tangible book value per common share (1)

 

$

13.83

 

 

$

13.69

 

 

$

13.17

 

 

$

13.10

 

 

$

13.01

 

(1) See Supplemental Information - Non-GAAP Financial Measures


Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)

 

 

For the Quarter Ended

(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

Selected Balance Sheet Data at Period End

 

 

 

 

 

 

 

 

Loans

 

$

8,320,424

 

 

$

8,343,861

 

 

$

8,294,057

 

 

$

8,101,287

 

 

$

7,952,553

 

Allowance for credit losses on loans

 

 

76,823

 

 

 

77,163

 

 

 

75,159

 

 

 

73,965

 

 

 

71,403

 

Investment securities

 

 

1,810,987

 

 

 

1,852,873

 

 

 

1,860,996

 

 

 

1,938,611

 

 

 

1,994,927

 

Total assets

 

 

10,964,884

 

 

 

11,138,567

 

 

 

11,176,809

 

 

 

10,897,966

 

 

 

10,837,241

 

Total deposits

 

 

8,500,438

 

 

 

8,581,238

 

 

 

8,602,503

 

 

 

8,444,681

 

 

 

8,536,943

 

Short-term borrowings

 

 

602,956

 

 

 

714,152

 

 

 

728,769

 

 

 

938,718

 

 

 

813,328

 

Other borrowings

 

 

519,814

 

 

 

519,705

 

 

 

519,596

 

 

 

219,486

 

 

 

219,376

 

Stockholders' equity

 

 

1,179,430

 

 

 

1,169,369

 

 

 

1,135,627

 

 

 

1,131,702

 

 

 

1,126,580

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

 

 

 

 

 

 

 

 

Non-owner occupied commercial

 

$

2,973,652

 

 

$

2,987,959

 

 

$

2,980,811

 

 

$

2,991,124

 

 

$

2,943,897

 

Owner occupied commercial

 

 

1,264,061

 

 

 

1,283,221

 

 

 

1,299,977

 

 

 

1,201,049

 

 

 

1,205,635

 

Multifamily

 

 

1,405,399

 

 

 

1,408,905

 

 

 

1,361,628

 

 

 

1,314,255

 

 

 

1,275,771

 

Non-owner occupied residential

 

 

202,014

 

 

 

213,986

 

 

 

208,560

 

 

 

205,818

 

 

 

210,203

 

Commercial, industrial and other

 

 

642,151

 

 

 

638,894

 

 

 

632,919

 

 

 

594,790

 

 

 

562,677

 

Construction

 

 

317,253

 

 

 

302,745

 

 

 

333,998

 

 

 

354,918

 

 

 

404,994

 

Equipment financing

 

 

178,157

 

 

 

179,171

 

 

 

174,946

 

 

 

173,469

 

 

 

161,889

 

Residential mortgages

 

 

997,569

 

 

 

985,768

 

 

 

956,535

 

 

 

922,109

 

 

 

857,427

 

Consumer and home equity

 

 

340,168

 

 

 

343,212

 

 

 

344,683

 

 

 

343,755

 

 

 

330,060

 

Total loans

 

$

8,320,424

 

 

$

8,343,861

 

 

$

8,294,057

 

 

$

8,101,287

 

 

$

7,952,553

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

1,679,033

 

 

$

1,781,619

 

 

$

1,857,324

 

 

$

1,866,252

 

 

$

1,998,590

 

Savings and interest-bearing transaction accounts

 

 

4,790,634

 

 

 

4,832,171

 

 

 

4,862,246

 

 

 

4,775,184

 

 

 

4,918,041

 

Time deposits

 

 

2,030,771

 

 

 

1,967,448

 

 

 

1,882,933

 

 

 

1,803,245

 

 

 

1,620,312

 

Total deposits

 

$

8,500,438

 

 

$

8,581,238

 

 

$

8,602,503

 

 

$

8,444,681

 

 

$

8,536,943

 

 

 

 

 

 

 

 

 

 

 

 

Total loans to total deposits ratio

 

 

97.9

%

 

 

97.2

%

 

 

96.4

%

 

 

95.9

%

 

 

93.2

%

 

 

 

 

 

 

 

 

 

 

 

Selected Average Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

Loans

 

$

8,304,235

 

 

$

8,304,747

 

 

$

8,167,362

 

 

$

7,999,285

 

 

$

7,900,426

 

Investment securities

 

 

1,916,350

 

 

 

1,955,407

 

 

 

2,013,153

 

 

 

2,068,073

 

 

 

2,117,076

 

Interest-earning assets

 

 

10,298,889

 

 

 

10,354,079

 

 

 

10,276,375

 

 

 

10,214,142

 

 

 

10,091,341

 

Total assets

 

 

10,888,436

 

 

 

10,963,641

 

 

 

10,875,553

 

 

 

10,808,261

 

 

 

10,698,807

 

Noninterest-bearing demand deposits

 

 

1,710,604

 

 

 

1,829,996

 

 

 

1,871,516

 

 

 

1,935,776

 

 

 

2,040,070

 

Savings deposits

 

 

669,336

 

 

 

699,199

 

 

 

759,232

 

 

 

830,836

 

 

 

928,796

 

Interest-bearing transaction accounts

 

 

4,210,331

 

 

 

4,229,019

 

 

 

4,103,217

 

 

 

4,007,867

 

 

 

4,224,024

 

Time deposits

 

 

2,029,735

 

 

 

1,926,436

 

 

 

1,856,266

 

 

 

1,722,935

 

 

 

1,385,661

 

Total deposits

 

 

8,620,006

 

 

 

8,684,650

 

 

 

8,590,231

 

 

 

8,497,414

 

 

 

8,578,551

 

Short-term borrowings

 

 

415,547

 

 

 

423,629

 

 

 

744,582

 

 

 

813,471

 

 

 

617,611

 

Other borrowings

 

 

519,748

 

 

 

519,635

 

 

 

232,573

 

 

 

219,425

 

 

 

219,308

 

Total interest-bearing liabilities

 

 

7,844,697

 

 

 

7,797,918

 

 

 

7,695,870

 

 

 

7,594,534

 

 

 

7,375,400

 

Stockholders' equity

 

 

1,172,324

 

 

 

1,142,031

 

 

 

1,137,387

 

 

 

1,130,563

 

 

 

1,120,356

 


Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)

 

 

For the Quarter Ended

(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

Average Annualized Yields (Taxable Equivalent Basis) and Costs

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

Loans

 

 

5.48

%

 

 

5.48

%

 

 

5.42

%

 

 

5.22

%

 

 

5.10

%

Taxable investment securities and other

 

 

2.87

%

 

 

2.87

%

 

 

2.84

%

 

 

2.74

%

 

 

2.61

%

Tax-exempt securities

 

 

2.50

%

 

 

2.49

%

 

 

2.49

%

 

 

2.45

%

 

 

2.41

%

Federal funds sold and interest-bearing cash accounts

 

 

5.66

%

 

 

5.46

%

 

 

5.41

%

 

 

5.41

%

 

 

4.00

%

Total interest-earning assets

 

 

4.98

%

 

 

4.93

%

 

 

4.86

%

 

 

4.71

%

 

 

4.56

%

Liabilities

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 

0.19

%

 

 

0.20

%

 

 

0.24

%

 

 

0.26

%

 

 

0.28

%

Interest-bearing transaction accounts

 

 

3.00

%

 

 

2.89

%

 

 

2.60

%

 

 

2.16

%

 

 

1.85

%

Time deposits

 

 

4.57

%

 

 

4.34

%

 

 

3.78

%

 

 

3.39

%

 

 

2.71

%

Borrowings

 

 

4.88

%

 

 

4.91

%

 

 

5.04

%

 

 

4.80

%

 

 

4.46

%

Total interest-bearing liabilities

 

 

3.39

%

 

 

3.25

%

 

 

2.96

%

 

 

2.59

%

 

 

2.11

%

Net interest spread (taxable equivalent basis)

 

 

1.60

%

 

 

1.68

%

 

 

1.90

%

 

 

2.12

%

 

 

2.45

%

Annualized net interest margin (taxable equivalent basis)

 

 

2.46

%

 

 

2.52

%

 

 

2.68

%

 

 

2.83

%

 

 

3.07

%

Annualized cost of deposits

 

 

2.56

%

 

 

2.38

%

 

 

2.08

%

 

 

1.73

%

 

 

1.38

%

Loan Quality Data

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses on Loans

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

77,163

 

 

$

75,159

 

 

$

73,965

 

 

$

71,403

 

 

$

70,264

 

Provision for credit losses on loans

 

 

239

 

 

 

2,246

 

 

 

1,327

 

 

 

2,422

 

 

 

1,213

 

Charge-offs

 

 

(617

)

 

 

(265

)

 

 

(217

)

 

 

(148

)

 

 

(139

)

Recoveries

 

 

38

 

 

 

23

 

 

 

84

 

 

 

288

 

 

 

65

 

Balance at end of period

 

$

76,823

 

 

$

77,163

 

 

$

75,159

 

 

$

73,965

 

 

$

71,403

 

 

 

 

 

 

 

 

 

 

 

 

Net Loan Charge-Offs (Recoveries)

 

 

 

 

 

 

 

 

 

 

Non owner occupied commercial

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Owner occupied commercial

 

 

 

 

 

 

 

 

 

 

 

(6

)

 

 

 

Non owner occupied residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, industrial and other

 

 

(21

)

 

 

(7

)

 

 

 

 

 

(163

)

 

 

(35

)

Construction

 

 

564

 

 

 

 

 

 

 

 

 

13

 

 

 

 

Equipment finance

 

 

 

 

 

83

 

 

 

136

 

 

 

12

 

 

 

46

 

Residential mortgages

 

 

 

 

 

128

 

 

 

 

 

 

 

 

 

 

Consumer and home equity

 

 

36

 

 

 

38

 

 

 

(3

)

 

 

4

 

 

 

63

 

Net charge-offs (recoveries)

 

$

579

 

 

$

242

 

 

$

133

 

 

$

(140

)

 

$

74

 


Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)

 

 

For the Quarter Ended

(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

Non-Performing Assets (1)

 

 

 

 

 

 

 

 

 

 

Non owner occupied commercial

 

$

745

 

 

$

769

 

 

$

798

 

 

$

864

 

 

$

908

 

Owner occupied commercial

 

 

7,018

 

 

 

6,849

 

 

 

7,026

 

 

 

8,076

 

 

 

8,757

 

Multifamily

 

 

1,167

 

 

 

1,096

 

 

 

1,106

 

 

 

266

 

 

 

584

 

Non owner occupied residential

 

 

517

 

 

 

 

 

 

 

 

 

41

 

 

 

 

Commercial, industrial and other

 

 

323

 

 

 

401

 

 

 

217

 

 

 

1,737

 

 

 

2,221

 

Construction

 

 

 

 

 

12,698

 

 

 

 

 

 

 

 

 

980

 

Equipment finance

 

 

1,147

 

 

 

518

 

 

 

626

 

 

 

644

 

 

 

379

 

Residential mortgages

 

 

2,732

 

 

 

2,400

 

 

 

2,319

 

 

 

1,954

 

 

 

1,918

 

Consumer and home equity

 

 

1,204

 

 

 

1,232

 

 

 

1,331

 

 

 

2,486

 

 

 

1,131

 

Total non-accrual loans

 

 

14,853

 

 

 

25,963

 

 

 

13,423

 

 

 

16,068

 

 

 

16,878

 

Total non-performing assets

 

$

14,853

 

 

$

25,963

 

 

$

13,423

 

 

$

16,068

 

 

$

16,878

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due 90 days or more and still accruing

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Loans restructured and still accruing

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Ratio of allowance for loan losses to total loans

 

 

0.92

%

 

 

0.92

%

 

 

0.91

%

 

 

0.91

%

 

 

0.90

%

Total non-accrual loans to total loans

 

 

0.18

%

 

 

0.31

%

 

 

0.16

%

 

 

0.20

%

 

 

0.21

%

Total non-performing assets to total assets

 

 

0.14

%

 

 

0.23

%

 

 

0.12

%

 

 

0.15

%

 

 

0.16

%

Annualized net charge-offs (recoveries) to average loans

 

 

0.03

%

 

 

0.01

%

 

 

0.01

%

 

(0.01

)%

 

 

%

(1) Includes non-accrual purchased credit deteriorated loans.


Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)

 

 

At or for the Quarter Ended

(dollars in thousands, except per share amounts)

 

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

Calculation of Tangible Book Value Per Common Share

 

 

 

 

 

 

 

 

Total common stockholders' equity at end of period - GAAP

 

$

1,179,430

 

 

$

1,169,369

 

 

$

1,135,627

 

 

$

1,131,702

 

 

$

1,126,580

 

Less: Goodwill

 

 

271,829

 

 

 

271,829

 

 

 

271,829

 

 

 

271,829

 

 

 

271,829

 

Less: Other identifiable intangible assets

 

 

6,623

 

 

 

7,058

 

 

 

7,559

 

 

 

8,060

 

 

 

8,572

 

Total tangible common stockholders' equity at end of period - Non-GAAP

 

$

900,978

 

 

$

890,482

 

 

$

856,239

 

 

$

851,813

 

 

$

846,179

 

Shares outstanding at end of period

 

 

65,154

 

 

 

65,030

 

 

 

65,030

 

 

 

65,028

 

 

 

65,017

 

Book value per share - GAAP

 

$

18.10

 

 

$

17.98

 

 

$

17.46

 

 

$

17.40

 

 

$

17.33

 

Tangible book value per share - Non-GAAP

 

$

13.83

 

 

$

13.69

 

 

$

13.17

 

 

$

13.10

 

 

$

13.01

 

Calculation of Tangible Common Equity to Tangible Assets

 

 

 

 

 

 

Total tangible common stockholders' equity at end of period - Non-GAAP

 

$

900,978

 

 

$

890,482

 

 

$

856,239

 

 

$

851,813

 

 

$

846,179

 

Total assets at end of period - GAAP

 

$

10,964,884

 

 

$

11,138,567

 

 

$

11,176,809

 

 

$

10,897,966

 

 

$

10,837,241

 

Less: Goodwill

 

 

271,829

 

 

 

271,829

 

 

 

271,829

 

 

 

271,829

 

 

 

271,829

 

Less: Other identifiable intangible assets

 

 

6,623

 

 

 

7,058

 

 

 

7,559

 

 

 

8,060

 

 

 

8,572

 

Total tangible assets at end of period - Non-GAAP

 

$

10,686,432

 

 

$

10,859,680

 

 

$

10,897,421

 

 

$

10,618,077

 

 

$

10,556,840

 

Common equity to assets - GAAP

 

 

10.76

%

 

 

10.50

%

 

 

10.16

%

 

 

10.38

%

 

 

10.40

%

Tangible common equity to tangible assets - Non-GAAP

 

 

8.43

%

 

 

8.20

%

 

 

7.86

%

 

 

8.02

%

 

 

8.02

%

Calculation of Return on Average Tangible Common Equity

 

 

 

 

 

 

Net income - GAAP

 

$

19,795

 

 

$

20,068

 

 

$

22,239

 

 

$

22,628

 

 

$

19,805

 

Total average common stockholders' equity - GAAP

 

$

1,172,324

 

 

$

1,142,031

 

 

$

1,137,387

 

 

$

1,130,563

 

 

$

1,120,356

 

Less: Average goodwill

 

 

271,829

 

 

 

271,829

 

 

 

271,829

 

 

 

271,829

 

 

 

271,829

 

Less: Average other identifiable intangible assets

 

 

6,905

 

 

 

7,383

 

 

 

7,887

 

 

 

8,353

 

 

 

8,904

 

Total average tangible common stockholders' equity - Non-GAAP

 

$

893,590

 

 

$

862,819

 

 

$

857,671

 

 

$

850,381

 

 

$

839,623

 

Return on average common stockholders' equity - GAAP

 

 

6.79

%

 

 

6.97

%

 

 

7.76

%

 

 

8.03

%

 

 

7.17

%

Return on average tangible common stockholders' equity - Non-GAAP

 

 

8.91

%

 

 

9.23

%

 

 

10.29

%

 

 

10.67

%

 

 

9.57

%

Calculation of Efficiency Ratio

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

$

44,649

 

 

$

42,993

 

 

$

44,368

 

 

$

47,008

 

 

$

48,605

 

Less:

 

 

 

 

 

 

 

 

 

 

Amortization of core deposit intangibles

 

 

436

 

 

 

500

 

 

 

501

 

 

 

512

 

 

 

516

 

Merger-related expenses

 

 

68

 

 

 

129

 

 

 

198

 

 

 

242

 

 

 

295

 

Noninterest expense, as adjusted

 

$

44,145

 

 

$

42,364

 

 

$

43,669

 

 

$

46,254

 

 

$

47,794

 

Net interest income

 

$

62,558

 

 

$

65,308

 

 

$

68,906

 

 

$

71,542

 

 

$

75,925

 

Total noninterest income

 

 

5,094

 

 

 

6,786

 

 

 

5,418

 

 

 

6,669

 

 

 

6,265

 

Total revenue

 

 

67,652

 

 

 

72,094

 

 

 

74,324

 

 

 

78,211

 

 

 

82,190

 

Tax-equivalent adjustment on municipal securities

 

 

385

 

 

 

385

 

 

 

408

 

 

 

422

 

 

 

436

 

Total revenue, as adjusted

 

$

68,037

 

 

$

72,479

 

 

$

74,732

 

 

$

78,633

 

 

$

82,626

 

Efficiency ratio - Non-GAAP

 

 

64.88

%

 

 

58.45

%

 

 

58.43

%

 

 

58.82

%

 

 

57.84

%