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Press Release

Lakeland Bancorp Announces First Quarter Results

Company Release - 4/30/2020 8:00 AM ET

OAK RIDGE, N.J., April 30, 2020 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (NASDAQ: LBAI) (the “Company”), the parent company of Lakeland Bank (“Lakeland”), reported net income of $12.4 million and earnings per diluted share ("EPS") of $0.24 for the three months ended March 31, 2020 compared to net income of $15.6 million and diluted EPS of $0.31 for the first quarter of 2019. Excluding merger-related expenses pertaining to the Company’s January 2019 acquisition of Highlands Bancorp, Inc. ("Highlands") of $2.1 million, tax-effected, net income for the first quarter of 2019 was $17.8 million, or $0.35 per diluted share. For the first quarter of 2020, annualized return on average assets was 0.76%, annualized return on average common equity was 6.77% and annualized return on average tangible common equity was 8.65%.

The first quarter results were adversely impacted by a $9.2 million provision for loan losses compared to a $508,000 provision for the same period last year. The increased provision was primarily due to an increase in certain qualitative factors to account for the impact of COVID-19 on the local economy, resulting in approximately $8.0 million of the provision. The remaining $1.2 million of the provision is attributable to loan growth, a change in the loan portfolio composition and a change in loss rates. As of March 31, 2020, the ratio of the allowance for loan loss to total loans was 0.92% compared to 0.78% as of December 31, 2019.

Thomas Shara, Lakeland Bancorp’s President and CEO commented, “Although Lakeland began 2020 from a position of strength, the economic impact of COVID-19 is expected to have a meaningful effect on financial institutions’ results, including Lakeland’s, for the balance of the year.  Lakeland’s fundamental strength, solid capital foundation and prudent operating strategies should position the Company well to navigate the challenges that may arise in the months ahead. As the pandemic has advanced, Lakeland has made it a priority to safeguard the health of our associates and customers while assisting customers impacted by the economic burdens of COVID-19 and providing support to our communities."

Mr. Shara continued, “We particularly want to thank our associates for their tireless professionalism, compassion and dedication to serving our customers under unprecedented conditions. These qualities, along with Lakeland’s solid capital position and deep engagement with our customers and communities, will allow all of us to move forward and emerge - strong and united - from this challenging period.”

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 are offering temporary payment deferrals on commercial, mortgage and consumer loans. As of April 16, 2020, we have applications for payment deferrals on approximately $745 million of commercial loans and $54 million of mortgage and consumer loans. We also are participating in the Small Business Administration Paycheck Protection Program ("PPP") and have loan applications and approvals of approximately $350 million, to help strengthen local  businesses and preserve jobs in our communities.

Net Interest Margin and Net Interest Income

Net interest margin for the first quarter of 2020 of 3.28% decreased fourteen basis points from the first quarter of 2019 and increased one basis point from the fourth quarter of 2019. The decrease in net interest margin compared to the first quarter of 2019 was due primarily to a 27 basis point decrease in the yield on interest-earning assets partially offset by a 16 basis point decrease in the cost of interest bearing liabilities.

The yield on interest-earning assets for the first quarter of 2020 was 4.17% compared to 4.44% for the first quarter of 2019 and 4.21% for the fourth quarter of 2019. The current quarter decrease in yield on interest-earning assets, when compared to the prior year periods, was due primarily to a reduction in the yield on loans due to decreases in the prime rate during 2019 and 2020.

The cost of interest-bearing liabilities for the first quarter of 2020 was 1.18% compared to 1.34% for the first quarter of 2019 and 1.26% for the fourth quarter of 2019. The cost of interest-bearing transaction accounts, time deposits and borrowings have decreased since 2019 largely driven by reductions in the federal funds rate.

Net interest income increased $1.3 million to $49.9 million for the first quarter of 2020 compared to $48.6 million for the first quarter of 2019, due primarily to the growth in the volume of interest-earning assets and a decrease in interest rates on interest-bearing liabilities partially offset by a decrease in the yield on interest-earning assets.

Noninterest Income

Noninterest income increased $2.3 million to $8.0 million for the first quarter of 2020 from $5.7 million for the first quarter of 2019 due primarily to an increase in swap income of $2.6 million. The first quarter of 2020 also included $342,000 in gains on sales of investment securities compared to none in the first quarter of 2019.  Partially offsetting these favorable variances was losses on equity securities of $653,000 compared to gains of $353,000 recorded during the first quarter of 2019.

Noninterest Expense

Noninterest expense totaled $32.5 million for the first quarter of 2020 and decreased $1.5 million compared to the first quarter of 2019.  Excluding merger-related expenses recorded in the first quarter of 2019, noninterest expense increased $1.4 million from the first quarter of 2019 to the first quarter of 2020. Salary and employee benefit expense increased $1.0 million as a result of staff additions, normal merit increases and higher benefit costs. Furniture and equipment expense increased $444,000 compared to the first quarter of 2019 due primarily to an increase in costs associated with the Company's digital strategy initiative, while marketing expense decreased $242,000 due to the timing of marketing campaigns. First quarter 2020 results also included a long-term debt prepayment fee of $356,000 resulting from the payoff of $10.0 million in Federal Home Loan Bank debt yielding 2.89%.

Income Tax Expense

The effective tax rate for the first quarter of 2020 was 23.4% compared to 21.2% for the first quarter of 2019, as a result of a technical bulletin issued by the New Jersey Division of Taxation during the second quarter 2019, which resulted in increasing our estimated effective tax rate.

Financial Condition

At March 31, 2020, total assets were $7.01 billion, an increase of $302.7 million compared to December 31, 2019. For the three months ended March 31, 2020, total loans grew $190.8 million to $5.33 billion and investment securities increased $55.5 million to $974.3 million. On the funding side, total deposits increased $161.4 million to $5.46 billion, while borrowings increased $65.3 million to $678.0 million. At March 31, 2020, total loans as a percent of total deposits was 97.7%.

Asset Quality

At March 31, 2020, non-performing assets increased to $32.8 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 0.61% at March 31, 2020 compared to 0.41% at December 31, 2019. The increase in non-accrual loans from December 31, 2019, related primarily to one loan relationship totaling $9.5 million that was not COVID-19 related. The allowance for loan losses increased to $48.9 million, 0.92% of total loans, at March 31, 2020, compared to $40.0 million, 0.78% of total loans, at December 31, 2019.  In the first quarter of 2020, the Company had net charge-offs of $342,000, or 0.03% of average loans, annualized, compared to $217,000, or 0.02%, for the same period in 2019. The provision for loan losses for the first quarter of 2020 was $9.2 million compared to the provision for loan losses of $508,000 in the first quarter of 2019.

Capital

At March 31, 2020, stockholders' equity was $736.9 million compared to $725.3 million at December 31, 2019, a 2% increase. Lakeland Bank remains above FDIC “well capitalized” standards, with a Tier 1 leverage ratio of 9.38% at March 31, 2020. The book value per common share and tangible book value per common share increased 8% and 10% to $14.60 and $11.43, respectively, compared to $13.51 and $10.35 at March 31, 2019. On April 28, 2020, the Company declared a quarterly cash dividend of $0.125 per share to be paid on May 20, 2020, to shareholders of record as of May 11, 2020.

Forward-Looking Statements

The information disclosed in this document includes various forward-looking statements - including the statements regarding the prospective impact of COVID-19 - that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipates”, “projects”, “intends”, “estimates”, “expects”, “believes”, “plans”, “may”, “will”, “should”, “could”, and other similar expressions are intended to identify such forward-looking statements. The Company cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. The following factors, among others, could cause the Company’s actual results to differ materially and adversely from such forward-looking statements: changes in the financial services industry and the U.S. and global capital markets; changes in economic conditions nationally, regionally and in the Company’s markets; public health crises (such as the governmental, social and economic effects of the novel coronavirus); the nature and timing of actions of the Federal Reserve Board and other regulators; the nature and timing of legislation and regulation affecting the financial services industry; government intervention in the U.S. financial system; changes in federal and state tax laws; changes in levels of market interest rates; pricing pressures on loan and deposit products; credit risks of Lakeland’s lending and equipment financing activities; successful implementation, deployment and upgrades of new and existing technology, systems, services and products; and customers’ acceptance of Lakeland’s products and services.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis, and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods in question.

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

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

These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. See accompanying non-GAAP tables.

About Lakeland

Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc. (NASDAQ:LBAI), which has over $7 billion in total assets. With an extensive branch network and commercial lending centers throughout New Jersey and Highland Mills, N.Y., the Bank offers business and retail banking products and services. Business services include commercial loans and lines of credit, commercial real estate loans, loans for healthcare services, asset based lending, equipment financing, small business loans and lines, and cash management services. Consumer services include online and mobile banking, home equity loans and lines, mortgage options and wealth management solutions. Lakeland is proud to be recognized as New Jersey’s #1 Best-In-State Banks by Forbes and Statista, rated a 5-Star Bank by Bauer Financial and named one of New Jersey’s 50 Fastest Growing Companies by NJBIZ. Visit LakelandBank.com for more information.

Thomas J. Shara
President & CEO

Thomas F. Splaine
EVP & CFO
973-697-2000

 
Lakeland Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
     
  Three Months Ended
March 31,
(Dollars in thousands, except per share amounts)2020 2019
INTEREST INCOME   
Loans and net deferred fees and costs$57,857  $57,642 
Federal funds sold and interest-bearing deposits with banks159  254 
Taxable investment securities and other5,229  4,873 
Tax exempt investment securities332  408 
 TOTAL INTEREST INCOME63,577  63,177 
INTEREST EXPENSE   
Deposits10,863  11,497 
Federal funds purchased and securities sold under agreements to repurchase429  608 
Other borrowings2,386  2,466 
 TOTAL INTEREST EXPENSE13,678  14,571 
NET INTEREST INCOME49,899  48,606 
Provision for loan losses9,223  508 
 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES40,676  48,098 
NONINTEREST INCOME   
Service charges on deposit accounts2,500  2,573 
Commissions and fees1,640  1,412 
Income on bank owned life insurance665  683 
Gain (loss) on equity securities(653) 353 
Gains on sales of loans415  371 
Gains on sales of investment securities342   
Swap income2,843  199 
Other income259  132 
 TOTAL NONINTEREST INCOME8,011  5,723 
NONINTEREST EXPENSE   
Salaries and employee benefit expense20,235  19,231 
Net occupancy expense2,836  2,954 
Furniture and equipment expense2,560  2,116 
FDIC insurance expense298  450 
Stationary, supplies and postage expense399  447 
Marketing expense227  469 
Data processing expense1,253  1,327 
Telecommunications expense444  493 
ATM and debit card expense587  602 
Core deposit intangible amortization265  304 
Other real estate owned and other repossessed assets expense12  86 
Long-term debt prepayment fee356   
Merger-related expenses  2,860 
Other expenses3,032  2,645 
 TOTAL NONINTEREST EXPENSE32,504  33,984 
INCOME BEFORE PROVISION FOR INCOME TAXES16,183  19,837 
Provision for income taxes3,791  4,211 
NET INCOME$12,392  $15,626 
EARNINGS PER COMMON SHARE:   
 Basic$0.24  $0.31 
 Diluted$0.24  $0.31 
DIVIDENDS PAID PER COMMON SHARE$0.125  $0.115 


 
Lakeland Bancorp, Inc.
Consolidated Balance Sheets
    
(Dollars in thousands)March 31, 2020 December 31, 2019
 (Unaudited)  
ASSETS   
Cash$272,560  $275,794 
Interest-bearing deposits due from banks13,076  6,577 
  Total cash and cash equivalents285,636  282,371 
Investment securities available for sale, at fair value813,090  755,900 
Equity securities, at fair value16,902  16,473 
Investment securities held to maturity; fair value of $119,023 at March 31, 2020 and $124,904 at December 31, 2019115,752  123,975 
Federal Home Loan Bank and other membership stocks, at cost28,575  22,505 
Loans held for sale3,098  1,743 
Loans, net of deferred fees5,328,623  5,137,823 
Less: Allowance for loan losses48,884  40,003 
Net loans and leases5,279,739  5,097,820 
Premises and equipment, net47,618  47,608 
Operating lease right-of-use assets17,621  18,282 
Accrued interest receivable16,775  16,832 
Goodwill156,277  156,277 
Other identifiable intangible assets4,049  4,314 
Bank owned life insurance113,082  112,392 
Other assets115,694  54,744 
  TOTAL ASSETS$7,013,908  $6,711,236 
LIABILITIES AND STOCKHOLDERS' EQUITY   
LIABILITIES   
Deposits:   
Noninterest-bearing$1,129,695  $1,124,121 
Savings and interest-bearing transaction accounts3,241,397  3,298,854 
Time deposits $250 thousand and under845,554  652,144 
Time deposits over $250 thousand238,492  218,660 
  Total deposits5,455,138  5,293,779 
Federal funds purchased and securities sold under agreements to repurchase419,085  328,658 
Other borrowings140,715  165,816 
Subordinated debentures118,229  118,220 
Operating lease liabilities19,126  19,814 
Other liabilities124,693  59,686 
  TOTAL LIABILITIES6,276,986  5,985,973 
STOCKHOLDERS' EQUITY   
Common stock, no par value; authorized shares, 100,000,000; issued shares 50,592,673 and outstanding shares 50,461,638 at March 31, 2020 and issued and outstanding shares 50,498,410 at December 31, 2019560,653  560,263 
Retained earnings168,780  162,752 
Treasury shares, at cost, 131,035 shares at March 31, 2020 and no shares at December 31, 2019(1,452)  
Accumulated other comprehensive income8,941  2,248 
  TOTAL STOCKHOLDERS' EQUITY736,922  725,263 
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$7,013,908  $6,711,236 


 
Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
      
 For the Quarter Ended
 March 31,December 31,September 30,June 30,March 31,
(Dollars in thousands, except per share data)20202019201920192019
INCOME STATEMENT     
Net interest income$49,899 $49,548 $48,682 $49,198 $48,606 
Provision for loan losses(9,223)(1,086)(536) (508)
Gains on sales of investment securities342     
Gains on sales of loans415 375 486 428 371 
(Loss) gain on equity securities(653)(29)72 100 353 
Other noninterest income7,907 7,638 6,142 5,861 4,999 
Long-term debt prepayment fee(356)    
Merger-related expenses   (318)(2,860)
Other noninterest expense(32,148)(31,523)(29,563)(31,368)(31,124)
  Pretax income16,183 24,923 25,283 23,901 19,837 
Provision for income taxes(3,791)(6,208)(6,409)(6,444)(4,211)
  Net income$12,392 $18,715 $18,874 $17,457 $15,626 
      
Basic earnings per common share$0.24 $0.37 $0.37 $0.34 $0.31 
Diluted earnings per common share$0.24 $0.37 $0.37 $0.34 $0.31 
Dividends paid per common share$0.125 $0.125 $0.125 $0.125 $0.115 
Dividends paid$6,364 $6,363 $6,362 $6,357 $5,838 
Weighted average shares - basic50,586 50,566 50,553 50,509 50,275 
Weighted average shares - diluted50,728 50,748 50,694 50,649 50,442 
      
SELECTED OPERATING RATIOS     
Annualized return on average assets0.76%1.15%1.17%1.12%1.02%
Annualized return on average common equity6.77%10.32%10.61%10.16%9.41%
Annualized return on average tangible common equity (1)8.65%13.29%13.74%13.21%12.32%
Annualized net interest margin3.28%3.27%3.25%3.39%3.42%
Efficiency ratio (1)55.30%54.20%52.77%55.78%56.62%
Common stockholders' equity to total assets10.51%10.81%10.99%10.90%10.70%
Tangible common equity to tangible assets (1)8.41%8.62%8.72%8.61%8.41%
Tier 1 risk-based ratio10.61%11.02%11.24%11.11%10.98%
Total risk-based ratio13.04%13.40%13.70%13.60%13.48%
Tier 1 leverage ratio9.38%9.41%9.34%9.30%9.23%
Common equity tier 1 capital ratio10.08%10.46%10.66%10.52%10.38%
Book value per common share$14.60 $14.36 $14.13 $13.85 $13.51 
Tangible book value per common share (1)$11.43 $11.18 $10.94 $10.66 $10.35 
      
(1) See Supplemental Information - Non-GAAP Financial Measures    


 
Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
      
 For the Quarter Ended
 March 31,December 31,September 30,June 30,March 31,
(Dollars in thousands)20202019201920192019
SELECTED BALANCE SHEET DATA AT PERIOD-END    
Loans$5,331,863 $5,140,940 $4,925,998 $4,925,300 $4,924,671 
Allowance for loan losses48,884 40,003 38,655 38,662 37,979 
Investment securities974,319 918,853 905,078 863,474 850,729 
Total assets7,013,908 6,711,236 6,492,474 6,407,195 6,365,063 
Total deposits5,455,138 5,293,779 5,210,619 5,082,598 5,064,584 
Short-term borrowings419,085 328,658 199,326 258,703 261,266 
Other borrowings258,944 284,036 284,029 294,022 293,976 
Stockholders' equity736,922 725,263 713,204 698,463 681,343 
      
LOANS     
Commercial, real estate$4,073,911 $3,924,762 $3,749,413 $3,737,447 $3,769,545 
Commercial, industrial and other467,346 431,934 391,486 407,776 389,230 
Equipment financing116,421 111,076 104,689 99,351 90,791 
Residential mortgages334,114 335,191 337,482 336,810 335,290 
Consumer and home equity340,071 337,977 342,928 343,916 339,815 
  Total loans$5,331,863 $5,140,940 $4,925,998 $4,925,300 $4,924,671 
      
DEPOSITS     
Noninterest-bearing$1,129,695 $1,124,121 $1,101,083 $1,089,474 $1,071,890 
Savings and interest-bearing transaction accounts3,241,397 3,298,854 3,196,323 3,007,784 3,046,322 
Time deposits1,084,046 870,804 913,213 985,340 946,372 
  Total deposits$5,455,138 $5,293,779 $5,210,619 $5,082,598 $5,064,584 
      
Total loans to total deposits ratio97.7%97.1%94.5%96.9%97.2%
      
SELECTED AVERAGE BALANCE SHEET DATA     
Loans$5,208,097 $5,025,377 $4,937,488 $4,917,109 $4,871,534 
Investment securities879,987 894,698 869,734 854,608 858,046 
Interest-earning assets6,133,003 6,022,525 5,947,645 5,836,333 5,772,853 
Total assets6,565,302 6,470,082 6,379,675 6,256,523 6,183,224 
Noninterest-bearing demand deposits1,109,638 1,130,192 1,100,413 1,083,745 1,056,060 
Savings deposits496,798 492,903 494,377 502,340 513,270 
Interest-bearing transaction accounts2,830,778 2,814,831 2,678,424 2,562,365 2,554,865 
Time deposits872,998 873,924 964,159 961,212 890,070 
Total deposits5,310,212 5,311,850 5,237,373 5,109,662 5,014,265 
Short-term borrowings159,825 67,097 74,042 110,941 128,972 
Other borrowings277,753 284,049 287,839 283,177 306,529 
Total interest-bearing liabilities4,638,152 4,532,804 4,498,841 4,420,035 4,393,706 
Stockholders' equity736,719 719,292 705,726 689,324 673,205 


 
Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
      
 For the Quarter Ended
 March 31,December 31,September 30,June 30,March 31,
(Dollars in thousands)20202019201920192019
AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT BASIS) AND COSTS   
ASSETS     
Loans4.47%4.60%4.71%4.82%4.80%
Taxable investment securities and other2.56%2.34%2.50%2.55%2.49%
Tax-exempt securities2.67%2.69%2.70%2.74%2.74%
Federal funds sold and interest-bearing cash accounts1.42%1.65%1.98%2.15%2.35%
  Total interest-earning assets4.17%4.21%4.32%4.46%4.44%
LIABILITIES     
Savings accounts0.07%0.07%0.06%0.06%0.07%
Interest-bearing transaction accounts0.97%1.05%1.24%1.25%1.18%
Time deposits1.81%1.93%2.00%1.96%1.79%
Borrowings2.54%2.86%2.89%2.90%2.82%
  Total interest-bearing liabilities1.18%1.26%1.41%1.42%1.34%
Net interest spread (taxable equivalent basis)2.99%2.96%2.91%3.04%3.10%
Annualized net interest margin (taxable equivalent basis)3.28%3.27%3.25%3.39%3.42%
Annualized cost of deposits0.82%0.88%1.00%1.00%0.93%
ASSET QUALITY DATA     
ALLOWANCE FOR LOAN LOSSES     
Balance at beginning of period$40,003 $38,655 $38,662 $37,979 $37,688 
Provision for loan losses9,223 1,086 536  508 
Charge-offs(483)(198)(809)(413)(516)
Recoveries141 460 266 1,096 299 
  Balance at end of period$48,884 $40,003 $38,655 $38,662 $37,979 
      
NET LOAN CHARGE-OFFS (RECOVERIES)     
Commercial, real estate$111 $(18)$203 $(85)$67 
Commercial, industrial and other(31)13 393 (909)50 
Equipment financing71 (297) 293 85 
Residential mortgages96  (55)(2)41 
Consumer and home equity95 40 2 20 (26)
  Net charge-offs (recoveries)$342 $(262)$543 $(683)$217 
      
NON-PERFORMING ASSETS     
Commercial, real estate$24,770 $13,281 $9,164 $10,205 $9,817 
Commercial, industrial and other1,909 1,539 795 662 2,202 
Equipment financing199 284 271 136 383 
Residential mortgages2,837 3,428 3,250 1,548 1,740 
Consumer and home equity2,689 2,606 2,437 1,873 1,581 
  Total non-accrual loans32,404 21,138 15,917 14,424 15,723 
Property acquired through foreclosure or repossession393 563 944 532 715 
  Total non-performing assets$32,797 $21,701 $16,861 $14,956 $16,438 
      
Loans past due 90 days or more and still accruing$99 $ $ $ $78 
Loans restructured and still accruing$4,719 $5,650 $5,029 $5,139 $6,352 
      
Ratio of allowance for loan losses to total loans0.92%0.78%0.78%0.78%0.77%
Total non-accrual loans to total loans0.61%0.41%0.32%0.29%0.32%
Total non-performing assets to total assets0.47%0.32%0.26%0.23%0.26%
Annualized net charge-offs (recoveries) to average loans0.03%(0.02)%0.04%(0.06)%0.02%


Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)
 At or for the Quarter Ended
 March 31,December 31,September 30,June 30,March 31,
(Dollars in thousands, except ratios and per share amounts)20202019201920192019
CALCULATION OF TANGIBLE BOOK VALUE PER COMMON SHARE    
Total common stockholders' equity at end of period - GAAP$736,922 $725,263 $713,204 $698,463 $681,343 
Less:  Goodwill156,277 156,277 156,277 155,830 154,153 
Less:  Other identifiable intangible assets4,049 4,314 4,602 4,891 5,192 
  Total tangible common stockholders' equity at end of period - Non-GAAP$576,596 $564,672 $552,325 $537,742 $521,998 
      
Shares outstanding at end of period50,462 50,498 50,489 50,441 50,436 
      
Book value per share - GAAP$14.60 $14.36 $14.13 $13.85 $13.51 
      
Tangible book value per share - Non-GAAP$11.43 $11.18 $10.94 $10.66 $10.35 
      
CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS   
Total tangible common stockholders' equity at end of period - Non-GAAP$576,596 $564,672 $552,325 $537,742 $521,998 
      
Total assets at end of period - GAAP$7,013,908 $6,711,236 $6,492,474 $6,407,195 $6,365,063 
Less:  Goodwill156,277 156,277 156,277 155,830 154,153 
Less:  Other identifiable intangible assets4,049 4,314 4,602 4,891 5,192 
  Total tangible assets at end of period - Non-GAAP$6,853,582 $6,550,645 $6,331,595 $6,246,474 $6,205,718 
      
Common equity to assets - GAAP10.51%10.81%10.99%10.90%10.70%
      
Tangible common equity to tangible assets - Non-GAAP8.41%8.62%8.72%8.61%8.41%
      
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY   
Net income - GAAP$12,392 $18,715 $18,874 $17,457 $15,626 
      
Total average common stockholders' equity - GAAP$736,719 $719,292 $705,726 $689,324 $673,205 
Less:  Average goodwill156,277 156,277 155,835 154,171 153,562 
Less:  Average other identifiable intangible assets4,205 4,468 4,761 5,058 5,254 
Total average tangible common stockholders' equity - Non-GAAP$576,237 $558,547 $545,130 $530,095 $514,389 
      
Return on average common stockholders' equity - GAAP6.77%10.32%10.61%10.16%9.41%
      
Return on average tangible common stockholders' equity - Non-GAAP8.65%13.29%13.74%13.21%12.32%
      
CALCULATION OF EFFICIENCY RATIO     
Total noninterest expense$32,504 $31,523 $29,563 $31,686 $33,984 
Amortization of core deposit intangibles(265)(289)(288)(301)(304)
Merger-related expenses   (318)(2,860)
Long term debt prepayment fees$(356)$ $ $ $ 
Noninterest expense, as adjusted$31,883 $31,234 $29,275 $31,067 $30,820 
      
Net interest income$49,899 $49,548 $48,682 $49,198 $48,606 
Total noninterest income8,011 7,984 6,700 6,389 5,723 
Total revenue57,910 57,532 55,382 55,587 54,329 
Tax-equivalent adjustment on municipal securities88 91 97 105 108 
(Gains) on sales of investment securities(342)    
Total revenue, as adjusted$57,656 $57,623 $55,479 $55,692 $54,437 
Efficiency ratio - Non-GAAP55.30%54.20%52.77%55.78%56.62%


 
Lakeland Bancorp, Inc.
Supplemental Information - Reconciliation of Net Income
(Unaudited)
  
 For the Three Months
Ended March 31,
(Dollars in thousands, except per share amounts)2020 2019
    
Net income - GAAP$12,392  $15,626 
    
NON-ROUTINE TRANSACTIONS, NET OF TAX   
Tax deductible merger-related expenses  1,656 
Non-tax deductible merger-related expenses  491 
  Net effect of non-routine transactions  2,147 
    
Net income available to common shareholders excluding non-routine transactions$12,392  $17,773 
Less:  Earnings allocated to participating securities102  141 
Net Income,  excluding non-routine transactions$12,290  $17,632 
    
Weighted average shares - Basic50,586  $50,275 
Weighted average shares - Diluted50,728  $50,442 
    
Basic earnings per share - GAAP$0.24  $0.31 
Diluted earnings per share - GAAP$0.24  $0.31 
    
Basic earnings per share, adjusted for non-routine transactions$0.24  $0.35 
Diluted earnings per share, adjusted for non-routine transactions (Core EPS)$0.24  $0.35 
    
Return on average assets - GAAP0.76% 1.02%
Return on average assets, adjusted for non-routine transactions0.76% 1.17%
    
Return on average common stockholders' equity - GAAP6.77% 9.41%
Return on average common stockholders' equity, adjusted for non-routine transactions6.77% 10.71%
    
Return on average tangible common stockholders' equity - Non-GAAP8.65% 12.32%
Return on average tangible common stockholders' equity - Non-GAAP, adjusted for non-routine transactions8.65% 14.01%

Source: Lakeland Bancorp, Inc.