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Lakeland Bancorp Announces Third Quarter Results

Lakeland Bancorp, Inc.
Lakeland Bancorp, Inc.

OAK RIDGE, N.J., Oct. 27, 2022 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (NASDAQ: LBAI) (the “Company”), the parent company of Lakeland Bank (“Lakeland”), reported net income of $28.7 million and earnings per diluted share ("EPS") of $0.44 for the three months ended September 30, 2022 compared to net income of $22.3 million and diluted EPS of $0.43 for the three months ended September 30, 2021. For the third quarter of 2022, annualized return on average assets was 1.10%, annualized return on average common equity was 10.33% and annualized return on average tangible common equity was 13.87%.

Excluding merger-related expenses of $2.9 million after tax, third quarter net income was $31.6 million or $0.48 diluted EPS, resulting in an annualized return on average assets of 1.21%, annualized return on average common equity of 11.36%, and annualized return on average tangible common equity of 15.25% (see "Supplemental Information – Reconciliation of Net Income" for a reconciliation of these non-GAAP financial measures).

For the nine months ended September 30, 2022, the Company reported net income of $73.8 million and diluted EPS of $1.13 compared to net income of $72.9 million and diluted EPS of $1.42 for the first nine months of 2021. Annualized return on average assets was 0.96%, annualized return on average common equity was 8.99% and annualized return on average tangible common equity was 12.08% for the first nine months of 2022.

Excluding merger-related expenses of $6.4 million after tax, which relate to our January 2022 acquisition of 1st Constitution Bancorp and our recently announced merger with Provident Financial Services, Inc. ("Provident Financial"), net income for the nine months ended September 30, 2022 was $80.2 million, resulting in $1.23 diluted EPS, resulting in an annualized return on average assets of 1.05%, annualized return on average common equity of 9.78%, and annualized return on average tangible common equity of 13.13% (see "Supplemental Information – Reconciliation of Net Income" for a reconciliation of these non-GAAP financial measures).

Thomas Shara, Lakeland Bancorp’s President and CEO, commented, “We are very pleased with the results for the quarter which includes continued strong growth in loans and deposits while our asset quality remains stellar under the current economic conditions.”

Regarding Lakeland Bancorp's recently announced merger with Provident Financial Services, Mr. Shara continued, "We remain excited regarding our opportunity to partner with Provident. The combination of two high-performing, like-minded New Jersey institutions will create a preeminent super-community bank that has the same shared vision, values, and an unwavering commitment to employees, customers and our communities."

Third Quarter 2022 Highlights

  • Loan growth for the third quarter of $160.3 million, or 2.2% compared to the linked second quarter was attributable to continued expansion in both the commercial and consumer portfolios.

  • Net interest margin for the third quarter of 2022 increased to 3.28% compared to 3.10% in the third quarter of 2021.

  • Nonperforming assets decreased 17% to $18.4 million for the third quarter of 2022 compared to $22.2 million for the linked second quarter of 2022.

  • Efficiency ratio decreased to 49.8% in the third quarter of 2022 compared to 54.0% in the third quarter of 2021.

Net Interest Margin and Net Interest Income

Net interest margin for the third quarter of 2022 of 3.28% increased 18 basis points compared to the third quarter of 2021 and decreased 10 basis points compared to the second quarter of 2022. The increase in net interest margin compared to the third quarter of 2021 was due primarily to an increase in yields on loans, increased loan prepayment fees and higher average investment securities balances. The decrease in net interest margin compared to the second quarter of 2022 was due primarily to a large non-accrual interest recovery in the second quarter of 2022 and an increase in rates on interest-bearing liabilities during the third quarter of 2022. Net interest margin for the first nine months of 2022 was 3.23% compared to 3.19% for the same period of 2021. The variance in net interest margin compared to the first nine months of 2021 is due primarily to an increase in the yield on interest earning assets.

The yield on interest-earning assets for the third quarter of 2022 was 3.90% as compared to 3.40% for the third quarter of 2021 and 3.61% for the second quarter of 2022. The increase in the yield on interest-earning assets compared to prior periods was due primarily to an increase in the yield on loans and investment securities driven primarily by increases in market interest rates. The yield on interest-earning assets for the first nine months of 2022 was 3.58% as compared to 3.51% during the same period in 2021 and was due primarily to an increase in the yield on loans.

The cost of interest-bearing liabilities for the third quarter of 2022 was 0.94% compared to 0.41% for the third quarter of 2021 and 0.40% for the second quarter of 2022. The increase in the cost of interest-bearing liabilities compared to the third quarter of 2021 and the second quarter of 2022 was largely driven by increases in the rates paid on interest-bearing transaction accounts and time deposits. The cost of interest-bearing liabilities for the first nine months of 2022 was 0.56% compared to 0.45% for the same period in 2021 and was due primarily to an increase in rates on interest-bearing deposits partially offset by a decrease in rates on long-term borrowings.

Net interest income for the third quarter of 2022 of $80.3 million increased $20.9 million compared to the third quarter of 2021. Net interest income for the first nine months of 2022 was $231.0 million as compared to $175.8 million for the first nine months of 2021. The increase in net interest income compared to prior periods was due primarily to an increase in the average balances of loans and investment securities due to the 1st Constitution acquisition in January of 2022 and organic growth, partially offset by increased interest paid on interest-bearing liabilities related to increases in market interest rates.

Noninterest Income

For the third quarter of 2022, noninterest income totaled $7.2 million, an increase of $1.8 million as compared to the third quarter of 2021. Income on bank owned life insurance increased $823,000 compared to the third quarter of 2021 due primarily to death benefits received during the third quarter of 2022. Swap income for the third quarter of 2022 was $711,000 compared to none during the same period of 2021 due primarily to changes in the yield curve which increased demand for swap transactions. Commissions and fees increased $603,000 driven primarily by an increase in wire transfer charges and financial services income. Losses on equity securities totaled $464,000 in the third quarter of 2022 compared to $58,000 in the third quarter of 2021. Gains on sales of loans decreased $195,000 compared to the third quarter of 2021 due primarily to lower sale volume.

For the first nine months of 2022, noninterest income was $21.1 million, an increase of $4.6 million as compared to the first nine months of 2021. Commissions and fees increased $1.9 million due primarily to higher loan fees and increases in financial services income. Income on bank owned life insurance and service charges on deposits increased $1.2 million and $868,000, respectively, compared to the first nine months of 2021 due primarily to the same reasons mentioned in the quarterly analysis. Partially offsetting these favorable variances was losses on equity securities, which totaled $1.3 million in the first nine months of 2022 compared to losses of $191,000 in the first nine months of 2021.

Noninterest Expense

Noninterest expense for the third quarter of 2022 of $47.8 million was an increase of $10.6 million compared to the third quarter of 2021. The increase in noninterest expense was primarily due to compensation and employee benefits which increased $5.2 million resulting primarily from the addition of 1st Constitution employees, increased restricted stock plan expense and normal merit increases. Merger-related expense increased $2.4 million compared to the third quarter of 2021 due to the anticipated merger with Provident Financial. Premises and equipment expense increased $1.4 million compared to the third quarter of 2021 due primarily to branches added as the result of the 1st Constitution acquisition. Other operating expenses in the third quarter of 2022 increased $1.5 million compared to the same period in 2021 due primarily to increased marketing expense, core deposit intangible amortization, appraisal fees, consulting fees and insurance expense.

Noninterest expense for the first nine months of 2022 of $142.8 million was an increase of $37.6 million compared to the first nine months of 2021. Compensation and employee benefit expense and premises and equipment expense increased $18.9 million and $4.6 million, respectively, compared to the first nine months of 2021 due to the same reasons discussed in the quarterly comparison. Other operating expenses increased $6.0 million in the first nine months of 2022 compared to the same period in 2021 due primarily to an increase in core deposit intangible amortization, data processing, consulting and marketing fees. Merger-related expenses were $8.1 million due to the acquisition of 1st Constitution Bancorp and the anticipated merger with Provident Financial.

Income Tax Expense

The effective tax rate for the third quarter of 2022 was 25.0% compared to 26.4% for the third quarter of 2021. The decreased effective tax rate for the third quarter of 2022 was primarily a result of tax advantaged items increasing as a percentage of pretax income.

Financial Condition

At September 30, 2022, total assets were $10.52 billion, an increase of $2.32 billion, compared to December 31, 2021. As of September 30, 2022, total loans increased $1.59 billion, including $1.10 billion from 1st Constitution, to $7.57 billion while investment securities increased $425.9 million, including $342.3 million from 1st Constitution, to $2.05 billion from December 31, 2021. On the funding side, total deposits increased $1.71 billion from December 31, 2021, including $1.65 billion from 1st Constitution, to $8.68 billion at September 30, 2022. At September 30, 2022, total loans as a percent of total deposits was 87.2%.

Asset Quality

At September 30, 2022, non-performing assets totaled $18.4 million or 0.17% of total assets compared to $12.2 million, or 0.15% of total assets at September 30, 2021. Non-accrual loans as a percent of total loans was 0.24% at September 30, 2022, compared to 0.21% at September 30, 2021. The allowance for credit losses on loans totaled $68.9 million, 0.91% of total loans, at September 30, 2022, compared to $58.0 million, 0.99% of total loans, at September 30, 2021. At September 30, 2022, the allowance for credit losses included a day-one purchase accounting adjustment of $12.1 million for purchased credit impaired loans. In the third quarter of 2022, the Company had net recoveries of $32,000 compared to net recoveries of $269,000 or 0.02% of average loans on an annualized basis for the same period in 2021.

The provision for credit losses for the third quarter of 2022 was $1.4 million compared to a benefit of $2.7 million in the third quarter of 2021. The provision in the 2022 period is comprised of a provision for credit losses on loans of $11,000, a provision for credit losses on securities of $1.3 million and a provision for off-balance-sheet exposures of $22,000. For the nine months ended September 30, 2022, the provision for credit losses was $11.3 million, while the Company recorded a benefit for credit losses of $11.3 million for the same period in 2021. For the nine months ended September 30, 2022, the provision was comprised of a provision for credit losses on loans of $6.2 million, a provision for credit losses on securities of $4.1 million and a provision for off-balance-sheet exposures of $997,000.

Capital

At September 30, 2022, stockholders' equity was $1.08 billion compared to $827.0 million at December 31, 2021, a 31% increase, resulting primarily from the issuance of stock in connection with the 1st Constitution acquisition. Lakeland Bank remains above FDIC “well capitalized” standards, with a Tier 1 leverage ratio of 9.10% at September 30, 2022. The book value per common share increased 4% to $16.70 at September 30, 2022 compared to $16.09 at September 30, 2021. Tangible book value per common share was $12.36 and $12.95 at September 30, 2022 and 2021, respectively (see "Supplemental Information - Non-GAAP Financial Measures" for a reconciliation of non-GAAP financial measures, including tangible book value). At September 30, 2022, the Company’s common equity to assets ratio and tangible common equity to tangible assets ratio were 10.29% and 7.83%, respectively, compared to 9.96% and 8.18% at September 30, 2021. On October 25, 2022, the Company declared a quarterly cash dividend of $0.145 per share to be paid on November 17, 2022, to shareholders of record as of November 7, 2022.

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, 2021, as updated by our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, the following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: changes in the financial services industry and the U.S. and global capital markets; inflation and other changes in economic conditions nationally, regionally and in the Company’s markets; the nature and timing of actions of the Federal Reserve Board and other regulators; the nature and timing of legislation and regulation affecting the financial services industry; government intervention in the U.S. financial system; changes in federal and state tax laws; changes in levels of market interest rates, which may affect demand for our products and the value of our financial instruments; pricing pressures on loan and deposit products; credit risks of the Company’s lending and leasing activities; successful implementation, deployment and upgrades of new and existing technology, systems, services and products; customers’ acceptance of the Company’s products and services; competition; failure to realize anticipated efficiencies and synergies from the merger of 1st Constitution Bancorp into Lakeland Bancorp and the merger of 1st Constitution Bank into Lakeland Bank; and expenses related to our proposed merger with Provident Financial, unexpected delays related to the merger, inability to obtain regulatory approvals or satisfy other closing conditions required to complete the merger, and failure to realize anticipated efficiencies and synergies from the merger. Further, given its ongoing and dynamic nature, it is difficult to predict the continuing effects that the COVID-19 pandemic will have on our business and results of operations. Any statements made by the Company that are not historical facts should be considered to be forward-looking statements. The Company is not obligated to update and does not undertake to update any of its forward-looking statements made herein.

Explanation of Non-GAAP Financial Measures

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

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

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

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

About Lakeland

Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc. (NASDAQ:LBAI), which had $10.52 billion in total assets at September 30, 2022. With an extensive branch network and commercial lending centers throughout New Jersey and Highland Mills, New York, 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 New Jersey's Best-In State-Bank by Forbes and Statista for the fourth consecutive year, Best Banks to Work For by American Banker, rated a 5-Star Bank by Bauer Financial and named one of New Jersey's 50 Fastest Growing Companies by NJBIZ. Visit LakelandBank.com or 973-697-6140 for more information.

Thomas J. Shara                                        Thomas F. Splaine

President & CEO                                        EVP & CFO

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

(dollars in thousands, except per share amounts)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Income Statement

 

 

 

 

 

 

 

Net interest income

$

80,285

 

 

$

59,338

 

 

$

230,975

 

 

$

175,806

 

(Provision) benefit for credit losses

 

(1,358

)

 

 

2,703

 

 

 

(11,274

)

 

 

11,304

 

Gains on sales of investment securities

 

 

 

 

 

 

 

 

 

 

9

 

Gains on sales of loans

 

355

 

 

 

550

 

 

 

2,496

 

 

 

1,865

 

Loss on equity securities

 

(464

)

 

 

(58

)

 

 

(1,313

)

 

 

(191

)

Other noninterest income

 

7,342

 

 

 

4,977

 

 

 

19,893

 

 

 

14,814

 

Long-term debt prepayment fees

 

 

 

 

(831

)

 

 

 

 

 

(831

)

Merger-related expenses

 

(3,488

)

 

 

(1,072

)

 

 

(8,073

)

 

 

(1,072

)

Other noninterest expense

 

(44,323

)

 

 

(35,304

)

 

 

(134,765

)

 

 

(103,304

)

Pretax income

 

38,349

 

 

 

30,303

 

 

 

97,939

 

 

 

98,400

 

Provision for income taxes

 

(9,603

)

 

 

(8,014

)

 

 

(24,147

)

 

 

(25,529

)

Net income

$

28,746

 

 

$

22,289

 

 

$

73,792

 

 

$

72,871

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.44

 

 

$

0.43

 

 

$

1.13

 

 

$

1.42

 

Diluted earnings per common share

$

0.44

 

 

$

0.43

 

 

$

1.13

 

 

$

1.42

 

Dividends paid per common share

$

0.145

 

 

$

0.135

 

 

$

0.425

 

 

$

0.395

 

Weighted average shares - basic

 

64,842

 

 

 

50,637

 

 

 

64,547

 

 

 

50,616

 

Weighted average shares - diluted

 

65,061

 

 

 

50,875

 

 

 

64,755

 

 

 

50,837

 

 

 

 

 

 

 

 

 

Selected Operating Ratios

 

 

 

 

 

 

 

Annualized return on average assets

 

1.10

%

 

 

1.10

%

 

 

0.96

%

 

 

1.24

%

Annualized return on average common equity

 

10.33

%

 

 

10.94

%

 

 

8.99

%

 

 

12.39

%

Annualized return on average tangible common equity (1)

 

13.87

%

 

 

13.63

%

 

 

12.08

%

 

 

15.53

%

Annualized yield on interest-earning assets

 

3.90

%

 

 

3.40

%

 

 

3.58

%

 

 

3.51

%

Annualized cost of interest-bearing liabilities

 

0.94

%

 

 

0.41

%

 

 

0.56

%

 

 

0.45

%

Annualized net interest spread

 

2.96

%

 

 

2.99

%

 

 

3.02

%

 

 

3.06

%

Annualized net interest margin

 

3.28

%

 

 

3.10

%

 

 

3.23

%

 

 

3.19

%

Efficiency ratio (1)

 

49.76

%

 

 

54.02

%

 

 

52.53

%

 

 

53.24

%

Stockholders' equity to total assets

 

 

 

 

 

10.29

%

 

 

9.96

%

Book value per common share

 

 

 

 

$

16.70

 

 

$

16.09

 

Tangible book value per common share (1)

 

 

 

 

$

12.36

 

 

$

12.95

 

Tangible common equity to tangible assets (1)

 

 

 

 

 

7.83

%

 

 

8.18

%

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

September 30, 2022

 

September 30, 2021

Ratio of allowance for credit losses to total loans

 

 

 

 

 

0.91

%

 

 

0.99

%

Non-performing loans to total loans

 

 

 

 

 

0.24

%

 

 

0.21

%

Non-performing assets to total assets

 

 

 

 

 

0.17

%

 

 

0.15

%

Annualized net charge-offs to average loans

 

 

 

 

 

0.14

%

 

 

0.05

%

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)

(dollars in thousands)

 

 

 

 

September 30, 2022

 

September 30, 2021

Selected Balance Sheet Data at Period End

 

 

 

 

 

 

Loans

 

 

 

 

$

7,568,826

 

$

5,880,802

Allowance for credit losses

 

 

 

 

 

68,879

 

 

57,953

Investment securities

 

 

 

 

 

2,047,186

 

 

1,248,705

Total assets

 

 

 

 

 

10,515,599

 

 

8,172,479

Total deposits

 

 

 

 

 

8,677,799

 

 

6,930,912

Short-term borrowings

 

 

 

 

 

357,787

 

 

111,907

Other borrowings

 

 

 

 

 

219,148

 

 

212,107

Stockholders' equity

 

 

 

 

 

1,082,406

 

 

814,128

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Selected Average Balance Sheet Data

 

 

 

 

 

 

 

Loans

$

7,517,878

 

$

5,943,698

 

$

7,257,990

 

$

6,037,419

Investment securities

 

2,160,719

 

 

1,144,356

 

 

2,123,350

 

 

1,071,823

Interest-earning assets

 

9,755,797

 

 

7,611,259

 

 

9,617,082

 

 

7,396,178

Total assets

 

10,358,600

 

 

8,070,050

 

 

10,230,532

 

 

7,854,351

Noninterest-bearing demand deposits

 

2,325,391

 

 

1,702,788

 

 

2,277,192

 

 

1,637,101

Savings deposits

 

1,092,222

 

 

653,840

 

 

1,125,580

 

 

632,950

Interest-bearing transaction accounts

 

4,337,559

 

 

3,701,676

 

 

4,368,492

 

 

3,529,586

Time deposits

 

905,735

 

 

826,831

 

 

862,958

 

 

916,476

Total deposits

 

8,660,907

 

 

6,885,135

 

 

8,634,222

 

 

6,716,113

Short-term borrowings

 

240,728

 

 

108,519

 

 

159,033

 

 

89,240

Other borrowings

 

219,082

 

 

162,216

 

 

218,679

 

 

148,616

Total interest-bearing liabilities

 

6,795,326

 

 

5,453,082

 

 

6,734,742

 

 

5,316,868

Stockholders' equity

 

1,104,145

 

 

807,956

 

 

1,096,921

 

 

786,642

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

 

 

For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

(in thousands, except per share data)

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Interest Income

 

 

 

 

 

 

 

 

Loans and fees

 

$

84,924

 

 

$

59,957

 

 

$

229,706

 

 

$

179,264

 

Federal funds sold and interest-bearing deposits with banks

 

 

429

 

 

 

161

 

 

 

846

 

 

 

250

 

Taxable investment securities and other

 

 

9,589

 

 

 

4,232

 

 

 

24,583

 

 

 

12,242

 

Tax-exempt investment securities

 

 

1,485

 

 

 

588

 

 

 

4,229

 

 

 

1,831

 

Total Interest Income

 

 

96,427

 

 

 

64,938

 

 

 

259,364

 

 

 

193,587

 

Interest Expense

 

 

 

 

 

 

 

 

Deposits

 

 

13,618

 

 

 

3,987

 

 

 

22,486

 

 

 

13,349

 

Federal funds purchased and securities sold under agreements to repurchase

 

 

717

 

 

 

19

 

 

 

887

 

 

 

58

 

Other borrowings

 

 

1,807

 

 

 

1,594

 

 

 

5,016

 

 

 

4,374

 

Total Interest Expense

 

 

16,142

 

 

 

5,600

 

 

 

28,389

 

 

 

17,781

 

Net Interest Income

 

 

80,285

 

 

 

59,338

 

 

 

230,975

 

 

 

175,806

 

Provision (benefit) for credit losses

 

 

1,358

 

 

 

(2,703

)

 

 

11,274

 

 

 

(11,304

)

Net Interest Income after Provision for Credit Losses

 

 

78,927

 

 

 

62,041

 

 

 

219,701

 

 

 

187,110

 

Noninterest Income

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

2,808

 

 

 

2,536

 

 

 

8,145

 

 

 

7,277

 

Commissions and fees

 

 

2,212

 

 

 

1,609

 

 

 

6,873

 

 

 

4,962

 

Income on bank owned life insurance

 

 

1,468

 

 

 

645

 

 

 

3,118

 

 

 

1,922

 

Loss on equity securities

 

 

(464

)

 

 

(58

)

 

 

(1,313

)

 

 

(191

)

Gains on sales of loans

 

 

355

 

 

 

550

 

 

 

2,496

 

 

 

1,865

 

Gains on sales of investment securities, net

 

 

 

 

 

 

 

 

 

 

 

9

 

Swap income

 

 

711

 

 

 

 

 

 

1,110

 

 

 

634

 

Other income

 

 

143

 

 

 

187

 

 

 

647

 

 

 

19

 

Total Noninterest Income

 

 

7,233

 

 

 

5,469

 

 

 

21,076

 

 

 

16,497

 

Noninterest Expense

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

 

26,636

 

 

 

21,478

 

 

 

81,253

 

 

 

62,403

 

Premises and equipment

 

 

7,574

 

 

 

6,206

 

 

 

23,225

 

 

 

18,602

 

FDIC insurance

 

 

690

 

 

 

461

 

 

 

2,034

 

 

 

1,793

 

Data processing

 

 

1,419

 

 

 

1,495

 

 

 

4,980

 

 

 

4,049

 

Merger-related expenses

 

 

3,488

 

 

 

1,072

 

 

 

8,073

 

 

 

1,072

 

Other operating expenses

 

 

8,004

 

 

 

6,495

 

 

 

23,273

 

 

 

17,288

 

Total Noninterest Expense

 

 

47,811

 

 

 

37,207

 

 

 

142,838

 

 

 

105,207

 

Income before provision for income taxes

 

 

38,349

 

 

 

30,303

 

 

 

97,939

 

 

 

98,400

 

Provision for income taxes

 

 

9,603

 

 

 

8,014

 

 

 

24,147

 

 

 

25,529

 

Net Income

 

$

28,746

 

 

$

22,289

 

 

$

73,792

 

 

$

72,871

 

Per Share of Common Stock

 

 

 

 

 

 

Basic earnings

 

$

0.44

 

 

$

0.43

 

 

$

1.13

 

 

$

1.42

 

Diluted earnings

 

$

0.44

 

 

$

0.43

 

 

$

1.13

 

 

$

1.42

 

Dividends

 

$

0.145

 

 

$

0.135

 

 

$

0.425

 

 

$

0.395

 


Lakeland Bancorp, Inc.

Consolidated Balance Sheets

(dollars in thousands)

September 30, 2022

 

December 31, 2021

 

(Unaudited)

 

 

Assets

 

 

 

Cash

$

234,571

 

 

$

199,158

 

Interest-bearing deposits due from banks

 

11,192

 

 

 

29,372

 

Total cash and cash equivalents

 

245,763

 

 

 

228,530

 

Investment securities available for sale, at estimated fair value (allowance for credit losses of $4,165 at September 30, 2022 and $83 at December 31, 2021 )

 

1,074,013

 

 

 

769,956

 

Investment securities held to maturity (estimated fair value of $753,565 at September 30, 2022 and $815,211 at December 31, 2021, allowance for credit losses of $152 at September 30, 2022 and $181 at December 31, 2021)

 

934,947

 

 

 

824,956

 

Equity securities, at fair value

 

17,180

 

 

 

17,368

 

Federal Home Loan Bank and other membership stocks, at cost

 

21,046

 

 

 

9,049

 

Loans held for sale

 

890

 

 

 

1,943

 

Loans, net of deferred fees

 

7,568,826

 

 

 

5,976,148

 

Less: Allowance for credit losses

 

68,879

 

 

 

58,047

 

Net loans

 

7,499,947

 

 

 

5,918,101

 

Premises and equipment, net

 

54,670

 

 

 

45,916

 

Operating lease right-of-use assets

 

25,854

 

 

 

15,222

 

Accrued interest receivable

 

29,542

 

 

 

19,209

 

Goodwill

 

271,829

 

 

 

156,277

 

Other identifiable intangible assets

 

9,669

 

 

 

2,420

 

Bank owned life insurance

 

156,273

 

 

 

117,356

 

Other assets

 

173,976

 

 

 

71,753

 

Total Assets

$

10,515,599

 

 

$

8,198,056

 

Liabilities and Stockholders' Equity

 

 

 

Liabilities

 

 

 

Deposits:

 

 

 

Noninterest-bearing

$

2,288,902

 

 

$

1,732,452

 

Savings and interest-bearing transaction accounts

 

5,354,716

 

 

 

4,474,144

 

Time deposits $250 thousand and under

 

807,211

 

 

 

623,393

 

Time deposits over $250 thousand

 

226,970

 

 

 

135,834

 

Total deposits

 

8,677,799

 

 

 

6,965,823

 

Federal funds purchased and securities sold under agreements to repurchase

 

357,787

 

 

 

106,453

 

Other borrowings

 

25,000

 

 

 

25,000

 

Subordinated debentures

 

194,148

 

 

 

179,043

 

Operating lease liabilities

 

27,224

 

 

 

16,523

 

Other liabilities

 

151,235

 

 

 

78,200

 

Total Liabilities

 

9,433,193

 

 

 

7,371,042

 

Stockholders' Equity

 

 

 

Common stock, no par value; authorized 100,000,000 shares; issued 64,935,026 shares and outstanding 64,803,991 shares at September 30, 2022 and issued 50,737,400 shares and outstanding 50,606,365 shares at December 31, 2021

 

854,336

 

 

 

565,862

 

Retained earnings

 

305,303

 

 

 

259,340

 

Treasury shares, at cost, 131,035 shares at September 30, 2022 and December 31, 2021

 

(1,452

)

 

 

(1,452

)

Accumulated other comprehensive (loss) income

 

(75,781

)

 

 

3,264

 

Total Stockholders' Equity

 

1,082,406

 

 

 

827,014

 

Total Liabilities and Stockholders' Equity

$

10,515,599

 

 

$

8,198,056

 

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)

 

 

For the Quarter Ended

(dollars in thousands, except per share data)

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

 

December 31,
2021

 

September 30,
2021

Income Statement

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

80,285

 

 

$

80,302

 

 

$

70,388

 

 

$

59,029

 

 

$

59,338

 

(Provision) benefit for credit losses

 

 

(1,358

)

 

 

(3,644

)

 

 

(6,272

)

 

 

(408

)

 

 

2,703

 

Gains on sales of investment securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on sales of loans

 

 

355

 

 

 

715

 

 

 

1,426

 

 

 

399

 

 

 

550

 

Loss on equity securities

 

 

(464

)

 

 

(364

)

 

 

(485

)

 

 

(94

)

 

 

(58

)

Other noninterest income

 

 

7,342

 

 

 

6,712

 

 

 

5,839

 

 

 

5,559

 

 

 

4,977

 

Long-term debt prepayment fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(831

)

Merger-related expenses

 

 

(3,488

)

 

 

 

 

 

(4,585

)

 

 

(710

)

 

 

(1,072

)

Other noninterest expense

 

 

(44,323

)

 

 

(45,068

)

 

 

(45,374

)

 

 

(34,840

)

 

 

(35,304

)

Pretax income

 

 

38,349

 

 

 

38,653

 

 

 

20,937

 

 

 

28,935

 

 

 

30,303

 

Provision for income taxes

 

 

(9,603

)

 

 

(9,536

)

 

 

(5,008

)

 

 

(6,765

)

 

 

(8,014

)

Net income

 

$

28,746

 

 

$

29,117

 

 

$

15,929

 

 

$

22,170

 

 

$

22,289

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.44

 

 

$

0.44

 

 

$

0.25

 

 

$

0.43

 

 

$

0.43

 

Diluted earnings per common share

 

$

0.44

 

 

$

0.44

 

 

$

0.25

 

 

$

0.43

 

 

$

0.43

 

Dividends paid per common share

 

$

0.145

 

 

$

0.145

 

 

$

0.135

 

 

$

0.135

 

 

$

0.135

 

Dividends paid

 

$

9,506

 

 

$

9,507

 

 

$

8,809

 

 

$

6,921

 

 

$

7,001

 

Weighted average shares - basic

 

 

64,842

 

 

 

64,828

 

 

 

63,961

 

 

 

50,647

 

 

 

50,637

 

Weighted average shares - diluted

 

 

65,061

 

 

 

64,989

 

 

 

64,238

 

 

 

50,959

 

 

 

50,875

 

 

 

 

 

 

 

 

 

 

 

 

Selected Operating Ratios

 

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

 

1.10

%

 

 

1.15

%

 

 

0.64

%

 

 

1.06

%

 

 

1.10

%

Annualized return on average common equity

 

 

10.33

%

 

 

10.71

%

 

 

5.89

%

 

 

10.70

%

 

 

10.94

%

Annualized return on average tangible common equity (1)

 

 

13.87

%

 

 

14.45

%

 

 

7.88

%

 

 

13.26

%

 

 

13.63

%

Annualized net interest margin

 

 

3.28

%

 

 

3.38

%

 

 

3.02

%

 

 

2.98

%

 

 

3.10

%

Efficiency ratio (1)

 

 

49.76

%

 

 

50.69

%

 

 

57.77

%

 

 

53.19

%

 

 

54.02

%

Common stockholders' equity to total assets

 

 

10.29

%

 

 

10.51

%

 

 

10.60

%

 

 

10.09

%

 

 

9.96

%

Tangible common equity to tangible assets (1)

 

 

7.83

%

 

 

8.01

%

 

 

8.07

%

 

 

8.31

%

 

 

8.18

%

Tier 1 risk-based ratio

 

 

11.16

%

 

 

11.12

%

 

 

11.34

%

 

 

11.15

%

 

 

11.19

%

Total risk-based ratio

 

 

13.78

%

 

 

13.74

%

 

 

14.03

%

 

 

14.48

%

 

 

14.73

%

Tier 1 leverage ratio

 

 

9.10

%

 

 

9.05

%

 

 

8.97

%

 

 

8.51

%

 

 

8.60

%

Common equity tier 1 capital ratio

 

 

10.62

%

 

 

10.57

%

 

 

10.72

%

 

 

10.67

%

 

 

10.70

%

Book value per common share

 

$

16.70

 

 

$

16.82

 

 

$

16.82

 

 

$

16.34

 

 

$

16.09

 

Tangible book value per common share (1)

 

$

12.36

 

 

$

12.47

 

 

$

12.45

 

 

$

13.21

 

 

$

12.95

 

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

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)

 

 

For the Quarter Ended

(dollars in thousands)

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

 

December 31,
2021

 

September 30,
2021

Selected Balance Sheet Data at Period End

 

 

 

 

 

 

 

 

Loans

 

$

7,568,826

 

 

$

7,408,540

 

 

$

7,137,793

 

 

$

5,976,148

 

 

$

5,880,802

 

Allowance for credit losses on loans

 

 

68,879

 

 

 

68,836

 

 

 

67,112

 

 

 

58,047

 

 

 

57,953

 

Investment securities

 

 

2,047,186

 

 

 

2,124,213

 

 

 

2,139,054

 

 

 

1,621,329

 

 

 

1,248,705

 

Total assets

 

 

10,515,599

 

 

 

10,374,178

 

 

 

10,275,233

 

 

 

8,198,056

 

 

 

8,172,479

 

Total deposits

 

 

8,677,799

 

 

 

8,501,804

 

 

 

8,748,909

 

 

 

6,965,823

 

 

 

6,930,912

 

Short-term borrowings

 

 

357,787

 

 

 

432,206

 

 

 

102,911

 

 

 

106,453

 

 

 

111,907

 

Other borrowings

 

 

219,148

 

 

 

219,027

 

 

 

218,904

 

 

 

204,043

 

 

 

212,107

 

Stockholders' equity

 

 

1,082,406

 

 

 

1,090,145

 

 

 

1,089,282

 

 

 

827,014

 

 

 

814,128

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

 

 

 

 

 

 

 

 

Non-owner occupied commercial

 

$

2,873,824

 

 

$

2,777,003

 

 

$

2,639,784

 

 

$

2,316,284

 

 

$

2,300,637

 

Owner occupied commercial

 

 

1,141,290

 

 

 

1,179,527

 

 

 

1,122,754

 

 

 

908,449

 

 

 

884,144

 

Multifamily

 

 

1,186,036

 

 

 

1,134,938

 

 

 

1,104,206

 

 

 

972,233

 

 

 

907,903

 

Non-owner occupied residential

 

 

222,597

 

 

 

221,339

 

 

 

225,795

 

 

 

177,097

 

 

 

177,592

 

Commercial, industrial and other

 

 

612,494

 

 

 

647,531

 

 

 

620,611

 

 

 

405,832

 

 

 

363,976

 

Paycheck Protection Program

 

 

734

 

 

 

10,404

 

 

 

36,785

 

 

 

56,574

 

 

 

109,348

 

Construction

 

 

381,109

 

 

 

370,777

 

 

 

404,186

 

 

 

302,228

 

 

 

332,868

 

Equipment financing

 

 

137,999

 

 

 

134,136

 

 

 

123,943

 

 

 

123,212

 

 

 

119,709

 

Residential mortgages

 

 

690,453

 

 

 

622,417

 

 

 

564,042