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Lakeland Bancorp, Inc. (LBAI)

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Previous Close17.31
Open17.46
Bid17.51 x 1100
Ask17.59 x 1000
Day's Range17.37 - 17.68
52 Week Range8.31 - 17.68
Volume77,901
Avg. Volume176,175
Market Cap887.431M
Beta (5Y Monthly)0.96
PE Ratio (TTM)15.56
EPS (TTM)1.13
Earnings DateApr 28, 2021 - May 03, 2021
Forward Dividend & Yield0.50 (2.89%)
Ex-Dividend DateFeb 05, 2021
1y Target Est16.14
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    Lakeland Bancorp's (LBAI) Shares March Higher, Can It Continue?

    As of late, it has definitely been a great time to be an investor in Lakeland Bancorp (LBAI).

  • Lakeland Bancorp (LBAI) Tops Q4 Earnings and Revenue Estimates
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    Lakeland Bancorp (LBAI) Tops Q4 Earnings and Revenue Estimates

    Lakeland Bancorp (LBAI) delivered earnings and revenue surprises of 23.33% and 5.06%, respectively, for the quarter ended December 2020. Do the numbers hold clues to what lies ahead for the stock?

  • GlobeNewswire

    Lakeland Bancorp Announces Quarterly and Year-End 2020 Earnings; Updates Loan Deferrals and Share Repurchase Plan

    OAK RIDGE, N.J. , Jan. 28, 2021 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (NASDAQ: LBAI) (the “Company”), the parent company of Lakeland Bank (“Lakeland”), reported net income of $18.8 million and earnings per diluted share ("EPS") of $0.37 for the three months ended December 31, 2020, compared to net income of $14.4 million and diluted earnings per share of $0.28 for the third quarter of 2020 and net income of $18.7 million and diluted EPS of $0.37 for the fourth quarter of 2019. For the fourth quarter of 2020, annualized return on average assets was 0.98%, annualized return on average common equity was 9.96% and annualized return on average tangible common equity was 12.64%. For the year ended December 31, 2020, the Company reported net income of $57.5 million, a 19% decrease compared to $70.7 million for the same period in 2019 resulting in annualized return on average assets of 0.80%, annualized return on average common equity of 7.74%, and annualized return on average tangible common equity of 9.86%. For 2020, the Company reported diluted EPS of $1.13, compared to diluted EPS of $1.38 for 2019. The 2020 financial results were adversely impacted by an elevated provision for credit losses of $27.2 million, compared to a provision for loan losses of $2.1 million for 2019. The increased provision for 2020 was primarily due to COVID-19's negative impact on forecasted economic conditions and credit loss projections with the remainder of the provision attributable to loan growth. As of December 31, 2020, the ratio of the allowance for credit loss for loans to total loans was 1.18% compared to 0.78% as of December 31, 2019. The allowance for credit losses on loans to total loans excluding Paycheck Protection Program ("PPP") loans of $284.6 million was 1.24% as of December 31, 2020. Thomas Shara, Lakeland Bancorp’s President and CEO commented, "2020 turned out to be a year that no one could have anticipated. We have all been directly or indirectly impacted by the events of the past year and, while it has presented many challenges, I could not be prouder of our Lakeland team for going above and beyond to support our customers and communities. Our team worked tirelessly to ensure the needs of our customers were addressed by increasing our lending, extending PPP loans, granting loan payment deferrals to borrowers, keeping our branches open and increasing donations to the communities we serve. The ongoing pandemic has impacted every sector of our society and dramatically changed the financial services industry. Yet, Lakeland maintained its position as one of New Jersey’s leading banks and developed even closer relationships with our customers in the last year. We will continue to prudently navigate the current environment with the safety of our customers and associates at the forefront.” Mr. Shara continued, “Our financial performance in this environment was strong and directly related to our focus on addressing our customers' needs. In 2020, we experienced substantial balance sheet growth in both our loan and deposit portfolios. Our provision for projected credit losses increased significantly due to the pandemic; however, our loan charge-offs remained very low for the year. Due to our strong capital position, we will be recommencing our share repurchase plan in the first quarter of 2021.” Q4 2020 Highlights Loans on payment deferral at December 31, 2020 totaled $9.7 million, or 0.2% of total loans.Balance sheet restructure in October involving the payoff of $99.9 million in FHLB borrowings, resulted in a prepayment fee of $3.8 million, partially offset by gain on securities sales of $871,000.Net interest margin increased 12 basis points to 3.08% compared to the linked quarter.The Company adopted CECL at December 31, 2020, and recorded a Q4 provision for credit losses of $789,000 compared to $8 million in Q3 2020.Loan and deposit portfolios continued their steady growth, each increasing 3% compared to the linked quarter. Full Year 2020 Highlights Total asset growth of 14% to $7.66 billion at December 31, 2020.Strong organic loan growth of 12% or $605.6 million, which excludes PPP loans.Deposit generation of 22% or $1.16 billion, including 34% growth in noninterest-bearing deposits.Net loan charge-offs for the year totaled $1.5 million, or 0.03% of average loans. 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 December 31, 2020, loans on payment deferral totaled $9.7 million, or 0.2% of total loans compared to $154 million, or 2.6% of total loans at September 30, 2020. The reduction in payment deferrals since September 30, 2020, was due primarily to borrowers resuming their regular payment schedule. In addition, during the fourth quarter of 2020, we modified $39.0 million in loans on payment deferment in accordance with the provisions of the CARES Act. We are also a participant in the Small Business Administration PPP to help strengthen local businesses and preserve jobs in our communities and had originally funded $326.6 million with $11.1 million in related fees, as well as $1.1 million in deferred costs. The Company is currently accepting online applications for PPP First Draw Loans to first-time borrowers as well as PPP Second Draw Loans for previous PPP borrowers under the Economic Aid Act. Net Interest Margin and Net Interest Income Net interest margin for the fourth quarter of 2020 of 3.08% increased 12 basis points from the linked quarter and decreased 19 basis points compared to the fourth quarter of 2019. The increase in net interest margin compared to the third quarter was due in part to the impact of the reduction of FHLB borrowings as a result of the balance sheet restructure in the fourth quarter of 2020 as well as an increase in prepayment fees, a decrease in cash balances and a decrease in the cost of interest-bearing liabilities. The decrease compared to the fourth quarter of 2019 was primarily a result of the current low interest rate environment resulting in lower yields on interest-earning assets as well as higher cash levels. Net interest margin for 2020 was 3.09% compared to 3.33% for the same period in 2019. The yield on interest-earning assets for the fourth quarter of 2020 was 3.51% compared to 3.49% for the linked quarter and 4.21% for the fourth quarter of 2019. The yield on interest-earning assets for 2020 was 3.70% compared to 4.36% for 2019. The decrease in yield on interest-earning assets, when compared to 2019 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, increased balance of lower-yielding federal funds sold, as well as the origination of lower-yielding PPP loans during 2020. The cost of interest-bearing liabilities decreased in the fourth quarter of 2020 to 0.59% compared to 0.72% for the linked quarter and 1.26% for the fourth quarter of 2019. The cost of interest-bearing liabilities for 2020 was 0.83% compared to 1.35% during the same period in 2019. The cost of interest-bearing transaction accounts, time deposits and borrowings continue to decrease since 2019 largely driven by reductions in market interest rates. Net interest income increased to $55.1 million for the fourth quarter of 2020 compared to $49.5 million for the fourth quarter of 2019, due primarily to the growth of interest-earning assets as well as lower interest rates on interest-bearing liabilities partially offset by an increase in interest-bearing liabilities and lower yields on interest-earning assets. Net interest income for 2020 was $207.7 million, as compared to $196.0 million for the same period in 2019 due to the same reason as the quarterly comparison. Noninterest Income Noninterest income decreased $1.1 million to $6.8 million for the fourth quarter of 2020 from $8.0 million for the fourth quarter of 2019 due primarily to a reduction of $1.2 million in loan swap income. Service charges on deposit accounts decreased $541,000 due to changes in customer behavior resulting from the pandemic. Gain on sales of loans in the fourth quarter of 2020 increased $385,000 due primarily to the low interest rate environment. Fourth quarter 2020 results also included an $871,000 gain on sales of securities compared to no gain on sales of securities during the same period in 2019. Other income decreased $593,000 compared to the fourth quarter of 2019 due primarily to gains resulting from payoffs of purchased credit impaired loans during the fourth quarter of 2019. For 2020, noninterest income totaled $27.1 million compared to $26.8 million for the same period in 2019. Gains on sales of loans and swap income increased $1.7 million and $1.5 million, respectively, compared to 2019, both due primarily to the low interest rate environment. Gain on sales of securities totaled $1.2 million in 2020 compared to no such gains in 2019. These variances were partially offset by a decrease in service charges on deposit accounts of $2.1 million, a reduction in equity securities valuation by $1.0 million and a decrease in other income of $499,000 compared to 2019. Noninterest Expense Noninterest expense totaled $36.9 million for the fourth quarter of 2020 and increased $5.4 million compared to the fourth quarter of 2019 due primarily to prepayment fees of $3.8 million resulting from the prepayment of $99.9 million in FHLB debt at a weighted average rate of 2.34%. Salary and employee benefit expense increased $586,000, or 3%, due primarily to normal merit increases. Furniture and equipment in the fourth quarter of 2020 increased $726,000 due primarily to an increase in IT service agreement expense compared to the fourth quarter of 2019. FDIC expense was $750,000 in the fourth quarter of 2020 compared to zero in the fourth quarter of 2019 as the FDIC insurance fund reserve ratio exceeded the required level and the Company received credits to offset its fourth quarter 2019 assessment. For 2020, noninterest expense totaled $132.8 million compared to $126.8 million for the same period in 2019. The primary increase was $4.1 million in FHLB loan prepayment fees on balance sheet restructurings during 2020. Salary and employee benefit expense increased $3.1 million, or 4%, due primarily to an increase in staffing levels as well as normal merit increases. Furniture and equipment in 2020 increased $2.6 million due to the same reason mentioned in the quarterly comparison. FDIC insurance expense increased $1.7 million in 2020 primarily due to an increase in deposit balances and the application of FDIC assessment credits in 2019 as mentioned in the previous paragraph. Noninterest expense in 2019 included merger-related expenses of $3.2 million resulting from the merger with Highlands Bancorp. Income Tax Expense The effective tax rate for the fourth quarter of 2020 was 22.3% compared to 24.9% for the fourth quarter of 2019. The effective tax rate for 2020 was 23.1% compared to 24.8% for 2019. Financial Condition At December 31, 2020, total assets were $7.66 billion, an increase of $953.1 million, including $284.6 million in PPP loans, compared to December 31, 2019. For the twelve months ended December 31, 2020, total loans grew $883.4 million, or 17% to $6.02 billion and investment securities increased $54.3 million or 6% to $973.2 million. On the funding side, total deposits increased $1.16 billion or 22% to $6.46 billion, while borrowings decreased $299.9 million or 49% to $312.8 million. At December 31, 2020, total loans as a percent of total deposits was 93.4%. Asset Quality At December 31, 2020, non-performing assets increased to $36.1 million, 0.47% 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 0.60% at December 31, 2020 compared to 0.41% at December 31, 2019. The allowance for credit losses increased to $71.1 million, 1.18% of total loans, at December 31, 2020, compared to $40.0 million, 0.78% of total loans, at December 31, 2019. Excluding PPP loans, the ratio of allowance for loan losses to total loans was 1.24%. The increase from December 31, 2019, was primarily due to the adoption of CECL and the impact of COVID-19. The Company adopted CECL at December 31, 2020, and recorded an increase in the allowance for credit losses on loans of $6.7 million effective January 1, 2020. In the fourth quarter of 2020, the Company had net charge-offs of $528,000, or 0.04% of average loans, annualized, compared to net recoveries of $262,000, or 0.02% of average loans, annualized, for the same period in 2019. Provision for credit losses for the fourth quarter of 2020 was $789,000 compared to $1.1 million in the fourth quarter of 2019. Capital At December 31, 2020, stockholders' equity was $763.8 million compared to $725.3 million at December 31, 2019, a 5% increase. Lakeland Bancorp remains above FDIC “well capitalized” standards, with a Tier 1 leverage ratio of 8.37% at December 31, 2020. At December 31, 2020, the book value per common share increased 5% to $15.13 and tangible book value per common share increased 7% to $11.97. On January 26, 2021, the Company declared a quarterly cash dividend of $0.125 per share to be paid on February 17, 2021, to shareholders of record as of February 8, 2021. The Company will recommence its existing share repurchase plan, which has 2.4 million shares remaining under the current plan, in the first quarter of 2021. 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. The following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: changes in the financial services industry and the U.S. and global capital markets, changes in economic conditions nationally, regionally and in the Company’s markets, the nature and timing of actions of the Federal Reserve Board and other regulators, the nature and timing of legislation 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 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, and competition. Further, given its ongoing and dynamic nature, it is difficult to predict what the continuing effects of the COVID-19 pandemic will have on our business and results of operations. The pandemic and related local and national economic disruption may, among other effects, continue to result in a material adverse change for the demand for our products and services; increased levels of loan delinquencies, problem assets and foreclosures; branch disruptions, unavailability of personnel and increased cybersecurity risks as employees work remotely. 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 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, 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 non-GAAP tables. About Lakeland Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc. (NASDAQ:LBAI), which had $7.66 billion in total assets at December 31, 2020. 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 973-697-2000 for more information. Thomas J. Shara Thomas F. SplainePresident & CEOEVP & CFO Lakeland Bancorp, Inc.Financial Highlights(Unaudited) Three Months EndedDecember 31, Twelve Months EndedDecember 31,(Dollars in thousands, except per share amounts)2020 2019 2020 2019INCOME STATEMENT Net interest income$55,135 $49,548 $207,687 $196,034 Provision for credit losses(789) (1,086) (27,222) (2,130)Gain on sales of investment securities871 — 1,213 — Gain on sales of loans760 375 3,322 1,660 Gain (loss) on equity securities73 (29) (552) 496 Other noninterest income5,141 7,638 23,127 24,640 Long-term debt prepayment fee(3,777) — (4,133) — Merger-related expenses— — — (3,178)Other noninterest expense(33,168) (31,523) (128,665) (123,578)Pretax income24,246 24,923 74,777 93,944 Provision for income taxes(5,398) (6,208) (17,259) (23,272)Net income$18,848 $18,715 $57,518 $70,672 Basic earnings per common share$0.37 $0.37 $1.13 $1.39 Diluted earnings per common share$0.37 $0.37 $1.13 $1.38 Dividends paid per common share$0.125 $0.125 $0.500 $0.490 Weighted average shares - basic50,527 50,566 50,540 50,477 Weighted average shares - diluted50,672 50,748 50,650 50,642 SELECTED OPERATING RATIOS Annualized return on average assets0.98% 1.15% 0.80% 1.12%Annualized return on average common equity9.96% 10.32% 7.74% 10.14%Annualized return on average tangible common equity (1)12.64% 13.29% 9.86% 13.16%Annualized yield on interest-earning assets3.51% 4.21% 3.70% 4.36%Annualized cost of interest-bearing liabilities0.59% 1.26% 0.83% 1.35%Annualized net interest spread2.92% 2.96% 2.87% 3.00%Annualized net interest margin3.08% 3.27% 3.09% 3.33%Efficiency ratio (1)53.74% 54.20% 54.54% 54.83%Stockholders' equity to total assets 9.97% 10.81%Book value per common share $15.13 $14.36 Tangible book value per common share (1) $11.97 $11.18 Tangible common equity to tangible assets (1) 8.05% 8.62% ASSET QUALITY RATIOS December 31,2020 December 31,2019Ratio of allowance for credit losses on loans to total loans 1.18% 0.78%Non-performing loans to total loans 0.60% 0.41%Non-performing assets to total assets 0.47% 0.32%Annualized net charge-offs (recoveries) to average loans 0.03% —% (1) See Supplemental Information - Non-GAAP Financial Measures Lakeland Bancorp, Inc.Financial Highlights(Unaudited) (Dollars in thousands) December 31,2020 December 31,2019SELECTED BALANCE SHEET DATA AT PERIOD-END Loans $6,021,232 $5,137,823 Allowance for credit losses on loans 71,124 40,003 Investment securities 973,185 918,853 Total assets 7,664,297 6,711,236 Total deposits 6,455,783 5,293,779 Short-term borrowings 169,560 328,658 Other borrowings 143,257 284,036 Stockholders' equity 763,784 725,263 Three Months EndedDecember 31, Twelve Months EndedDecember 31, 2020 2019 2020 2019SELECTED AVERAGE BALANCE SHEET DATA Loans$5,939,904 $5,025,377 $5,626,273 $4,938,298 Investment securities912,723 894,698 889,223 869,374 Interest-earning assets7,137,884 6,022,525 6,735,825 5,895,669 Total assets7,625,458 6,470,082 7,208,366 6,322,654 Noninterest-bearing demand deposits1,499,093 1,130,192 1,362,918 1,092,827 Savings deposits571,794 492,903 535,754 500,650 Interest-bearing transaction accounts3,313,556 2,814,831 3,035,626 2,653,404 Time deposits1,112,053 873,924 1,064,187 922,412 Total deposits6,496,496 5,311,850 5,998,485 5,169,293 Short-term borrowings68,962 67,097 92,425 95,035 Other borrowings155,943 284,049 244,000 290,330 Total interest-bearing liabilities5,222,308 4,532,804 4,971,992 4,461,831 Stockholders' equity753,059 719,292 743,225 697,037 Lakeland Bancorp, Inc. Consolidated Statements of Income(Unaudited) Three Months EndedDecember 31, Twelve Months EndedDecember 31,(Dollars in thousands, except per share amounts)20202019 20202019 INTEREST INCOME Loans and fees$58,553 $58,211 $229,036 $233,535 Federal funds sold and interest-bearing deposits with banks61 423 348 1,720 Taxable investment securities and other3,680 4,857 17,811 19,722 Tax exempt investment securities565 345 1,647 1,510 TOTAL INTEREST INCOME62,859 63,836 248,842 256,487 INTEREST EXPENSE Deposits6,090 11,722 32,059 49,248 Federal funds purchased and securities sold under agreements to repurchase25 138 556 1,471 Other borrowings1,609 2,428 8,540 9,734 TOTAL INTEREST EXPENSE7,724 14,288 41,155 60,453 NET INTEREST INCOME55,135 49,548 207,687 196,034 Provision for credit losses789 1,086 27,222 2,130 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES54,346 48,462 180,465 193,904 NONINTEREST INCOME Service charges on deposit accounts2,485 3,026 9,148 11,205 Commissions and fees1,365 1,548 5,868 6,230 Income on bank owned life insurance657 676 2,657 2,740 Gain (loss) on equity securities73 (29) (552) 496 Gain on sales of loans760 375 3,322 1,660 Gain on sales and calls of investment securities,net871 — 1,213 — Swap income485 1,646 4,719 3,231 Other income149 742 735 1,234 TOTAL NONINTEREST INCOME6,845 7,984 27,110 26,796 NONINTEREST EXPENSE Salaries and employee benefit expense20,201 19,615 80,399 77,287 Net occupancy expense2,580 2,679 10,596 11,029 Furniture and equipment expense3,042 2,316 11,275 8,681 FDIC insurance expense750 — 2,123 431 Stationary, supplies and postage expense409 385 1,677 1,599 Marketing expense413 515 1,253 1,945 Data processing expense1,064 1,113 4,964 4,913 Telecommunications expense476 492 1,875 1,943 ATM and debit card expense593 604 2,331 2,377 Core deposit intangible amortization249 289 1,025 1,182 Other real estate owned and other repossessed assets expense— 33 53 256 Long-term debt prepayment fee3,777 — 4,133 — Merger-related expenses— — — 3,178 Other expenses3,391 3,482 11,094 11,935 TOTAL NONINTEREST EXPENSE36,945 31,523 132,798 126,756 INCOME BEFORE PROVISION FOR INCOME TAXES24,246 24,923 74,777 93,944 Provision for income taxes5,398 6,208 17,259 23,272 NET INCOME$18,848 $18,715 $57,518 $70,672 EARNINGS PER COMMON SHARE: Basic$0.37 $0.37 $1.13 $1.39 Diluted$0.37 $0.37 $1.13 $1.38 DIVIDENDS PAID PER COMMON SHARE$0.125 $0.125 $0.500 $0.490 Lakeland Bancorp, Inc.Consolidated Balance Sheets (Dollars in thousands)December 31, 2020 December 31, 2019 (Unaudited) ASSETS Cash$262,327 $275,794 Interest-bearing deposits due from banks7,763 6,577 Total cash and cash equivalents270,090 282,371 Investment securities available for sale, at estimated fair value (allowance for credit losses of $2at December 31, 2020)855,746 755,900 Investment securities, held to maturity (estimated fair value of $93,868 at December 31, 2020 and $124,904 at December 31, 2019 and no allowance for credit losses at December 31, 2020)90,766 123,975 Equity securities, at fair value14,694 16,473 Federal Home Loan Bank and other membership stocks, at cost11,979 22,505 Loans held for sale1,335 1,743 Loans, net of deferred fees6,021,232 5,137,823 Less: Allowance for credit losses71,124 40,003 Net loans5,950,108 5,097,820 Premises and equipment, net48,495 47,608 Operating lease right-of-use assets16,772 18,282 Accrued interest receivable19,339 16,832 Goodwill156,277 156,277 Other identifiable intangible assets3,288 4,314 Bank owned life insurance115,115 112,392 Other assets110,293 54,744 TOTAL ASSETS$7,664,297 $6,711,236 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Deposits: Noninterest-bearing$1,510,224 $1,124,121 Savings and interest-bearing transaction accounts3,867,303 3,298,854 Time deposits $250 thousand and under895,056 652,144 Time deposits over $250 thousand183,200 218,660 Total deposits6,455,783 5,293,779 Federal funds purchased and securities sold under agreements to repurchase169,560 328,658 Other borrowings25,000 165,816 Subordinated debentures118,257 118,220 Operating lease liabilities18,183 19,814 Other liabilities113,730 59,686 TOTAL LIABILITIES6,900,513 5,985,973 STOCKHOLDERS' EQUITY Common stock, no par value; authorized 100,000,000 shares; issued 50,610,681 shares and outstanding 50,479,646 shares at December 31, 2020 and issued and outstanding 50,489,410 shares at December 31, 2019562,421 560,263 Treasury shares, at cost, 131,035 shares at December 31, 2020 and no shares at December 31, 2019(1,452) — Retained earnings191,418 162,752 Accumulated other comprehensive income (loss)11,397 2,248 TOTAL STOCKHOLDERS' EQUITY763,784 725,263 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$7,664,297 $6,711,236 Lakeland Bancorp, Inc.Financial Highlights(Unaudited) For the Quarter Ended December 31,September 30,June 30,March 31,December 31,(Dollars in thousands, except per share data)20202020202020202019 INCOME STATEMENT Net interest income$55,135 $52,134 $50,519 $49,899 $49,548 Provision for credit losses (1)(789)(8,000)(9,000)(9,223)(1,086)Gain on sales of investment securities871 — — 342 — Gain on sales of loans760 1,437 710 415 375 Gain (loss) on equity securities73 (170)198 (653)(29)Other noninterest income5,141 5,506 4,573 7,907 7,638 Long-term debt prepayment fee(3,777)— — (356)— Other noninterest expense(33,168)(32,097)(31,462)(32,148)(31,523)Pretax income24,246 18,810 15,538 16,183 24,923 Provision for income taxes(5,398)(4,383)(3,687)(3,791)(6,208)Net income$18,848 $14,427 $11,851 $12,392 $18,715 Basic earnings per common share$0.37 $0.28 $0.23 $0.24 $0.37 Diluted earnings per common share$0.37 $0.28 $0.23 $0.24 $0.37 Dividends paid per common share$0.125 $0.125 $0.125 $0.125 $0.125 Dividends paid$6,364 $6,365 $6,365 $6,364 $6,363 Weighted average shares - basic50,527 50,526 50,522 50,586 50,566 Weighted average shares - diluted50,672 50,620 50,593 50,728 50,748 SELECTED OPERATING RATIOS Annualized return on average assets0.98 %0.76 %0.67 %0.76 %1.15 %Annualized return on average common equity9.96 %7.64 %6.42 %6.77 %10.32 %Annualized return on average tangible common equity (2)12.64 %9.71 %8.19 %8.65 %13.29 %Annualized net interest margin3.08 %2.96 %3.06 %3.28 %3.27 %Efficiency ratio (2)53.40 %53.96 %55.62 %55.30 %54.20 %Common stockholders' equity to total assets9.97 %10.02 %9.96 %10.51 %10.81 %Tangible common equity to tangible assets (2)8.05 %8.06 %7.99 %8.41 %8.62 %Tier 1 risk-based ratio10.22 %10.34 %10.45 %10.61 %11.02 %Total risk-based ratio12.85 %12.93 %12.98 %13.04 %13.40 %Tier 1 leverage ratio8.37 %8.36 %8.69 %9.38 %9.41 %Common equity tier 1 capital ratio9.73 %9.83 %9.93 %10.08 %10.46 %Book value per common share$15.13 $14.93 $14.77 $14.60 $14.36 Tangible book value per common share (2)$11.97 $11.77 $11.60 $11.43 $11.18 (1) The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL") on December 31, 2020, with a transition adjustment retroactive to January 1, 2020. Quarterly amounts for the first, second and third quarters of 2020 do not reflect the adoption of CECL.(2) See Supplemental Information - Non-GAAP Financial Measures Lakeland Bancorp, Inc.Financial Highlights(Unaudited) For the Quarter Ended December 31,September 30,June 30,March 31,December 31,(Dollars in thousands)20202020202020202019 SELECTED BALANCE SHEET DATA AT PERIOD-END Loans$6,031,220 $5,855,024 $5,769,127 $5,331,863 $5,140,940 Allowance for credit losses on loans (3)71,124 65,242 57,839 48,884 40,003 Investment securities973,185 909,535 957,985 974,319 918,853 Total assets7,664,297 7,522,184 7,488,516 7,013,908 6,711,236 Total deposits6,455,783 6,266,516 6,125,502 5,455,138 5,293,779 Short-term borrowings169,560 97,874 183,116 419,085 328,658 Other borrowings143,257 253,359 273,954 258,944 284,036 Stockholders' equity763,784 753,572 745,489 736,922 725,263 LOANS Commercial, secured by real estate$4,514,649 $4,326,074 $4,260,917 $4,073,911 $3,924,762 Commercial, industrial and other439,503 426,821 402,239 467,346 431,934 Paycheck Protection Program284,636 325,115 325,999 — — Equipment financing114,737 116,410 115,651 116,421 111,076 Residential mortgages376,416 342,583 334,455 334,114 335,191 Consumer and home equity301,279 318,021 329,866 340,071 337,977 Total loans$6,031,220 $5,855,024 $5,769,127 $5,331,863 $5,140,940 DEPOSITS Noninterest-bearing$1,510,224 $1,474,847 $1,486,273 $1,129,695 $1,124,121 Savings and interest-bearing transaction accounts3,867,303 3,647,328 3,510,723 3,241,397 3,298,854 Time deposits1,078,256 1,144,341 1,128,506 1,084,046 870,804 Total deposits$6,455,783 $6,266,516 $6,125,502 $5,455,138 $5,293,779 Total loans to total deposits ratio93.4%93.4%94.2%97.7%97.1% SELECTED AVERAGE BALANCE SHEET DATA Loans$5,939,904 $5,775,093 $5,572,865 $5,208,097 $5,025,377 Investment securities912,723 873,066 891,037 879,987 894,698 Interest-earning assets7,137,884 7,009,939 6,650,993 6,133,003 6,022,525 Total assets7,625,458 7,516,069 7,137,529 6,565,302 6,470,082 Noninterest-bearing demand deposits1,499,093 1,475,422 1,364,785 1,109,638 1,130,192 Savings deposits571,794 548,662 525,224 496,798 492,903 Interest-bearing transaction accounts3,313,556 3,086,260 2,908,299 2,830,778 2,814,831 Time deposits1,112,053 1,176,181 1,093,760 872,998 873,924 Total deposits6,496,496 6,286,525 5,892,068 5,310,212 5,311,850 Short-term borrowings68,962 58,845 82,694 159,825 67,097 Other borrowings155,943 269,093 273,904 277,753 284,049 Total interest-bearing liabilities5,222,308 5,139,042 4,883,881 4,638,152 4,532,804 Stockholders' equity753,059 751,099 742,050 736,719 719,292 (3) The Company adopted CECL on December 31, 2020, with a transition adjustment retroactive to January 1, 2020. Quarterly amounts for the first, second and third quarters of 2020 do not reflect the adoption of CECL. Lakeland Bancorp, Inc.Financial Highlights(Unaudited) For the Quarter Ended December 31,September 30,June 30,March 31,December 31,(Dollars in thousands)20202020202020202019AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT BASIS) ASSETS Loans3.92 %3.91 %4.03 %4.47 %4.60 %Taxable investment securities and other1.84 %2.09 %2.31 %2.56 %2.34 %Tax-exempt securities2.51 %2.55 %2.70 %2.67 %2.69 %Federal funds sold and interest-bearing cash accounts0.09 %0.10 %0.08 %1.42 %1.65 %Total interest-earning assets3.51 %3.49 %3.69 %4.17 %4.21 %LIABILITIES Savings accounts0.05 %0.06 %0.07 %0.07 %0.07 %Interest-bearing transaction accounts0.38 %0.44 %0.55 %0.97 %1.05 %Time deposits1.01 %1.19 %1.48 %1.81 %1.93 %Borrowings2.84 %2.73 %2.62 %2.54 %2.86 %Total interest-bearing liabilities0.59 %0.72 %0.86 %1.18 %1.26 %Net interest spread (taxable equivalent basis)2.92 %2.77 %2.83 %2.99 %2.96 %Annualized net interest margin (taxable equivalent basis)3.08 %2.96 %3.06 %3.28 %3.27 %Annualized cost of deposits0.37 %0.44 %0.55 %0.82 %0.88 %ASSET QUALITY DATA ALLOWANCE FOR CREDIT LOSSES ON LOANS Balance at beginning of period$65,242 $57,839 $48,884 $40,003 $38,655 Provision for credit losses on loans(246)8,000 9,000 9,223 1,086 Charge-offs(746)(682) (142)(483)(198)Recoveries218 85 97 141 460 Balance at end of period$64,468 $65,242 $57,839 $48,884 $40,003 Impact of adopting CECL (4)6,656 $71,124 NET LOAN CHARGE-OFFS (RECOVERIES) Commercial, secured by real estate$(47)$298 $(36)$111 $(18)Commercial, industrial and other478 173 (13)(31)13 Equipment financing64 95 (11)71 (297)Residential mortgages— (1) — 96 — Consumer and home equity33 32 105 95 40 Net charge-offs (recoveries)$528 $597 $45 $342 $(262)NON-PERFORMING ASSETS Commercial, secured by real estate$30,085 $26,145 $25,615 $24,770 $13,281 Commercial, industrial and other1,286 1,484 1,546 1,909 1,539 Equipment financing320 444 400 199 284 Residential mortgages2,190 2,695 2,860 2,837 3,428 Consumer and home equity2,241 2,322 2,432 2,689 2,606 Total non-accrual loans36,122 33,090 32,853 32,404 21,138 Property acquired through foreclosure or repossession— — 354 393 563 Total non-performing assets$36,122 $33,090 $33,207 $32,797 $21,701 Loans past due 90 days or more and still accruing$1 $165 $58 $99 $— Loans restructured and still accruing$3,856 $4,299 $4,667 $4,719 $5,650 Ratio of allowance for credit losses to total loans (2)1.18 %1.11 %1.00 %0.92 %0.78 %Total non-accrual loans to total loans0.60 %0.57 %0.57 %0.61 %0.41 %Total non-performing assets to total assets0.47 %0.44 %0.44 %0.47 %0.32 %Annualized net charge-offs (recoveries) to average loans0.04 %0.04 %— %0.03 %(0.02)% (4) The Company adopted CECL on December 31, 2020 with a $6.7 million transition adjustment retroactive to January 1, 2020. Quarterly amounts for the first, second and third quarters of 2020 do not reflect the adoption of CECL. Lakeland Bancorp, Inc.Supplemental Information - Non-GAAP Financial Measures(Unaudited) At or for the Quarter Ended(Dollars in thousands, except ratios and per share amounts)December 31,2020September 30,2020June 30,2020March 31,2020December 31,2019 CALCULATION OF TANGIBLE BOOK VALUE PER COMMON SHARETotal common stockholders' equity at end of period - GAAP$763,784 $753,572 $745,489 $736,922 $725,263 Less: Goodwill156,277 156,277 156,277 156,277 156,277 Less: Other identifiable intangible assets3,288 3,538 3,788 4,049 4,314 Total tangible common stockholders' equity at end of period - Non-GAAP$604,219 $593,757 $585,424 $576,596 $564,672 Shares outstanding at end of period50,480 50,468 50,463 50,462 50,498 Book value per share - GAAP$15.13 $14.93 $14.77 $14.60 $14.36 Tangible book value per share - Non-GAAP$11.97 $11.77 $11.60 $11.43 $11.18 CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETSTotal tangible common stockholders' equity at end of period - Non-GAAP$604,219 $593,757 $585,424 $576,596 $564,672 Total assets at end of period - GAAP$7,664,297 $7,522,184 $7,488,516 $7,013,908 $6,711,236 Less: Goodwill156,277 156,277 156,277 156,277 156,277 Less: Other identifiable intangible assets3,288 3,538 3,788 4,049 4,314 Total tangible assets at end of period - Non-GAAP$7,504,732 $7,362,369 $7,328,451 $6,853,582 $6,550,645 Common equity to assets - GAAP9.97%10.02%9.96%10.51%10.81%Tangible common equity to tangible assets - Non-GAAP8.05%8.06%7.99%8.41%8.62%CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITYNet income - GAAP$18,848 $14,427 $11,851 $12,392 $18,715 Total average common stockholders' equity - GAAP$753,059 $751,099 $742,050 $736,719 $719,292 Less: Average goodwill156,277 156,277 156,277 156,277 156,277 Less: Average other identifiable intangible assets3,433 3,689 3,942 4,205 4,468 Total average tangible common stockholders' equity - Non-GAAP$593,349 $591,133 $581,831 $576,237 $558,547 Return on average common stockholders' equity - GAAP9.96%7.64%6.42%6.77%10.32%Return on average tangible common stockholders' equity - Non-GAAP12.64%9.71%8.19%8.65%13.29%CALCULATION OF EFFICIENCY RATIOTotal noninterest expense$36,945 $32,097 $31,462 $32,504 $31,523 Amortization of core deposit intangibles(249)(250)(261)(265)(289)Merger-related expenses— — — — — Long-term debt prepayment fee(3,777)— — (356) Noninterest expense, as adjusted$32,919 $31,847 $31,201 $31,883 $31,234 Net interest income$55,135 $52,134 $50,519 $49,899 $49,548 Total noninterest income6,845 6,773 5,481 8,011 7,984 Total revenue61,980 58,907 56,000 57,910 57,532 Tax-equivalent adjustment on municipal securities149 108 93 88 91 Gain on sales of investment securities(871)— — (342)— Total revenue, as adjusted$61,258 $59,015 $56,093 $57,656 $57,623 Efficiency ratio - Non-GAAP53.74%53.96%55.62%55.30%54.20% Lakeland Bancorp, Inc.Supplemental Information - Non-GAAP Financial Measures(Unaudited) For the Twelve Months Ended December 31,(Dollars in thousands)20202019CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY Net income - GAAP$57,518 $70,672 Total average common stockholders' equity - GAAP$743,225 $697,037 Less: Average goodwill156,277 154,971 Less: Average other identifiable intangible assets3,816 4,883 Total average tangible common stockholders' equity - Non-GAAP$583,132 $537,183 Return on average common stockholders' equity - GAAP7.74 %10.14 %Return on average tangible common stockholders' equity - Non-GAAP9.86 %13.16 %CALCULATION OF EFFICIENCY RATIO Total noninterest expense$132,798 $126,756 Amortization of core deposit intangibles(1,025)(1,182)Long-term debt prepayment fee(4,133)— Merger-related expenses— (3,178)Noninterest expense, as adjusted$127,640 $122,396 Net interest income$207,687 $196,034 Noninterest income$27,110 $26,796 Total revenue$234,797 $222,830 Tax-equivalent adjustment on municipal securities$438 $401 Gain on sales of investment securities(1,213)— Total revenue, as adjusted$234,022 $223,231 Efficiency ratio - Non-GAAP54.54 %54.83 %