Skip to main content

Lakeland Bancorp Announces Quarterly and Year-End 2023 Earnings

OAK RIDGE, N.J., Jan. 25, 2024 (GLOBE NEWSWIRE) — Lakeland Bancorp, Inc. (NASDAQ: LBAI) (the “Company”), the parent company of Lakeland Bank (“Lakeland”), reported net income of $20.1 million and earnings per diluted share (“EPS”) of $0.30 for the three months ended December 31, 2023, compared to net income of $33.6 million and diluted EPS of $0.51 for the fourth quarter of 2022. For the fourth quarter of 2023, annualized return on average assets was 0.73%, annualized return on average common equity was 6.97% and annualized return on average tangible common equity was 9.23%.

For the year ended December 31, 2023, the Company reported net income of $84.7 million, a 21% decrease compared to $107.4 million for 2022, resulting in return on average assets of 0.78%, return on average common equity of 7.48%, and return on average tangible common equity of 9.94% for 2023. For 2023, the Company reported diluted EPS of $1.29 compared to diluted EPS of $1.63 for 2022.

The current year results include a $30.9 million decrease in net interest income, a decrease in noninterest income of $3.0 million, and an increase in provision for credit losses of $4.5 million offset in part by a decrease in non-interest expenses of $5.2 million. Fourth quarter 2023 results were negatively impacted by a $16.3 million, or 20%, decrease in net interest income and a $4.7 million increase in the provision for credit losses partially offset by a $2.4 million decrease in non-interest expenses compared to the fourth quarter of 2022.

Thomas Shara, Lakeland Bancorp’s President and CEO commented on the yearly financial results: “Despite a challenging economic environment in 2023, we are very pleased with our continued loan growth of 6% and our continued stellar asset quality as loan charge-offs for the year were negligible. Our deposit base was resilient throughout the banking crisis which speaks to our core deposit customer focus. I want to thank all of the Lakeland associates for their incredible contributions and unwavering customer support during this uncertain period.”

Regarding the announced merger with Provident Financial Services, Inc. (“Provident Financial”), Mr. Shara continued, “We are actively engaged in discussions with our regulators concerning the merger. Both Provident Financial and Lakeland have agreed to extend the merger deadline to March 31, 2024, to allow additional time to obtain the necessary regulatory approvals. We look forward to closing the transaction as soon as possible following the receipt of the approvals.”

Full Year 2023 Highlights

  • Loans grew $477.8 million or 6% during the year with commercial real estate loans increasing $263.0 million, or 5%, and residential mortgages increasing $220.2 million, or 29%.
  • Net interest margin for 2023 decreased 47 basis points to 2.77% compared to 2022 due primarily to the increase in the market rate environment and the resulting movement of customers from lower rate interest-bearing transaction accounts to higher rate time deposits.
  • The provision for credit losses of $13.1 million for the year ended December 31, 2023 increased $4.5 million from $8.5 million for 2022. The Company recorded a charge-off of $6.6 million for subordinated debt securities issued by Signature Bank which failed in first quarter of 2023.

Net Interest Margin and Net Interest Income

Net interest margin for the three months and year ended December 31, 2023 declined from previous periods as a result of an increase in the cost of interest-bearing liabilities partially offset by an increase in the yields of interest-earning assets driven by the increase in market interest rates. The increasing rate environment also has resulted in a change to customers’ banking behaviors causing them to move funds from lower yielding interest-bearing transaction accounts to higher yielding time deposits.

Net interest income for the fourth quarter of 2023 of $65.3 million decreased $16.3 million compared to the fourth quarter of 2022. Net interest income of $281.7 million for the year ended December 31, 2023 decreased from $312.6 million for 2022, a decline of $30.9 million, or 10%.

Net interest margin for the fourth quarter of 2023 of 2.52% decreased 76 basis points compared to the fourth quarter of 2022 and declined 16 basis points compared to the third quarter of 2023. Net interest margin for the full year of 2023 of 2.77% decreased 47 basis points compared to 3.24% for 2022.

The yield on interest-earning assets for the fourth quarter of 2023 was 4.93% compared to 4.31% for the fourth quarter of 2022 and 4.86% for the third quarter of 2023. The yield on interest-earning assets for 2023 was 4.77% compared to 3.77% for 2022 resulting primarily from an increase in the yields on interest-earning assets.

The cost of interest-bearing liabilities increased in the fourth quarter of 2023 to 3.25% compared to 1.50% for the fourth quarter of 2022 and 2.96% for the third quarter of 2023. The cost of interest-bearing liabilities for the year ended December 31, 2023 was 2.74% compared to 0.80% during the same period in 2022.

Noninterest Income

Noninterest income decreased $237,000 to $6.8 million for the fourth quarter of 2023 from $7.0 million for the fourth quarter of 2022. Commissions and fees in the fourth quarter of 2023 decreased $537,000 compared to the same period in 2022 due primarily to decreases in investment commission income. Gain on sales of loans in the fourth quarter of 2023 increased $236,000. Gain on equity securities increased from $11,000 in fourth quarter 2022 to $391,000 in fourth quarter 2023.

For the year ended December 31, 2023, noninterest income decreased $3.0 million to $25.1 million compared to 2022. Gains on sales of loans decreased from $2.8 million in 2022 to $1.5 million in 2023 resulting from lower sale volume of residential mortgages. Service charges on deposit accounts decreased $646,000 compared to 2022 due primarily to decreases in interchange income as a result of the provisions of the Durbin amendment which became effective for Lakeland in the third quarter of 2023. Commissions and fees in 2023 decreased $1.9 million compared to 2022 due to decreases in investment commission income and commercial loan fees. Income on bank owned life insurance decreased $530,000 due primarily to death benefits received during 2022. Offsetting these decreases in noninterest income was an increase in gain (loss) on equity securities which increased to a gain of $110,000 in 2023 from a loss of $1.3 million in 2022.

Noninterest Expense

Noninterest expense totaled $43.0 million for the fourth quarter of 2023, a decrease of $2.4 million compared to the fourth quarter of 2022. Compensation and employee benefit expense in the fourth quarter of 2023 decreased $1.8 million, or 7%, compared to the fourth quarter of 2022 as a result of a decline in headcount related to the anticipated merger with Provident Financial. Data processing expense increased $486,000 due primarily to credits received from service providers in the fourth quarter of 2022. FDIC insurance costs increased $660,000 in the fourth quarter of 2023 from $690,000 in the fourth quarter of 2022 relating to Lakeland’s asset size exceeding $10 billion. In the fourth quarter of 2023, merger-related costs included $129,000 for the proposed merger with Provident Financial, compared to $533,000 in the fourth quarter of 2022.

For the year ended December 31, 2023, noninterest expense decreased $5.2 million to $183.0 million compared to $188.2 million for 2022 due primarily to merger-related expenses of $864,000 for 2023 compared to $8.6 million in 2022. Merger-related expenses in 2022 included $4.6 million related to the Company’s acquisition of 1st Constitution Bancorp, as well as $4.0 million related to the anticipated transaction with Provident Financial. Data processing expense increased from $6.2 million to $7.6 million for the same reason noted in the quarterly comparison.

Income Tax Expense

The effective tax rate for the fourth quarter of 2023 was 26.1% compared to 27.1% for the fourth quarter of 2022. The effective tax rate for 2023 and 2022 was 23.5% and 25.4%, respectively. The effective tax rate declined from 2022 to 2023 as a result in a decline in pretax income and the resulting increase of tax advantaged items as a percent of pretax income.

Financial Condition

At December 31, 2023, total assets were $11.14 billion, an increase of $354.7 million, or 3%, compared to December 31, 2022. For the year ended December 31, 2023, total loans increased $477.8 million to $8.34 billion, while investment securities decreased $184.5 million to $1.85 billion. On the funding side, total deposits increased $13.8 million, while borrowings increased $285.8 million to $1.23 billion for the year ended December 31, 2023. At December 31, 2023, total loans as a percent of total deposits was 97.2%.

Asset Quality

At December 31, 2023, non-performing assets increased to $26.0 million, 0.23% of total assets, compared to $17.4 million, 0.16% of total assets, at December 31, 2022. Non-performing assets increased $12.5 million from the linked quarter as a result of one construction loan totaling $12.7 million being placed in non-accrual late in fourth quarter. Non-accrual loans as a percent of total loans increased to 0.31% at December 31, 2023 compared to 0.22% at December 31, 2022. At December 31, 2023, the allowance for credit losses was $77.2 million, 0.92% of total loans compared to $70.3 million, 0.89% of total loans, at December 31, 2022. In the fourth quarter of 2023, the Company had net charge-offs of $242,000, or 0.01% of average loans, annualized, compared to net charge-offs of $79,000, or 0.00% of average loans, annualized, for the same period in 2022. Provision for credit losses on loans for the fourth quarter of 2023 was a provision of $2.2 million compared to a provision of $1.5 million in the fourth quarter of 2022. There was no provision for credit losses on investments for the fourth quarter of 2023 compared to a benefit of $3.9 million for the same period in 2022.

Capital

At December 31, 2023, stockholders’ equity increased 5% to $1.2 billion as compared to $1.1 billion at December 31, 2022. Lakeland Bancorp remains above regulatory “well capitalized” standards, with a Tier 1 leverage ratio of 9.27% at December 31, 2023. Book value per common share and tangible book value per common share were $17.98 and $13.69, respectively, compared to $17.09 and $12.76 at December 31, 2022 (see “Supplemental Information – Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures, including tangible book value). On January 23, 2024, the Company declared a quarterly cash dividend of $0.145 per share to be paid on February 15, 2024, to shareholders of record as of February 5, 2024.

Forward-Looking Statements

The information disclosed in this document includes various forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipates,” “projects,” “intends,” “estimates,” “expects,” “believes,” “plans,” “may,” “will,” “should,” “could,” and other similar expressions are intended to identify such forward-looking statements. The Company cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. Accordingly, you should not place undue reliance on forward-looking statements. In addition to the specific risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, 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 $11.14 billion in total assets at December 31, 2023. With an extensive branch network and commercial lending centers throughout New Jersey and Highland Mills, N.Y., the Bank offers business and retail banking products and services. Business services include commercial loans and lines of credit, commercial real estate loans, loans for healthcare services, asset-based lending, equipment financing, small business loans and lines and cash management services. Consumer services include online and mobile banking, home equity loans and lines, mortgage options and wealth management solutions. Lakeland is proud to be recognized as one of New Jersey’s Best-In State Banks by Forbes and Statista, rated a 5-Star Bank by Bauer Financial and named one of New Jersey’s 50 Fastest Growing Companies by NJBIZ. Visit LakelandBank.com or 973-697-6140 for more information.

Thomas J. SharaThomas F. Splaine
President & CEOEVP & CFO

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
    
 Three Months Ended December 31, Years Ended December 31,
(dollars in thousands, except per share amounts) 2023   2022   2023   2022 
Income Statement       
Net interest income$65,308  $81,640  $281,681  $312,615 
(Provision) benefit for credit losses (1,950)  2,760   (13,052)  (8,514)
Gain on sales of loans 505   269   1,513   2,765 
Gain (loss) on equity securities 391   11   110   (1,302)
Other noninterest income 5,890   6,743   23,515   26,636 
Merger-related expenses (129)  (533)  (864)  (8,606)
Other noninterest expense (42,864)  (44,837)  (182,110)  (179,602)
Pretax income 27,151   46,053   110,793   143,992 
Provision for income taxes (7,083)  (12,476)  (26,053)  (36,623)
Net income$20,068  $33,577  $84,740  $107,369 
        
Basic earnings per common share$0.31  $0.51  $1.29  $1.64 
Diluted earnings per common share$0.30  $0.51  $1.29  $1.63 
Dividends paid per common share$0.145  $0.145  $0.580  $0.570 
Weighted average shares – basic 65,064   64,854   65,039   64,624 
Weighted average shares – diluted 65,258   65,222   65,217   64,918 
        
Selected Operating Ratios       
Annualized return on average assets 0.73%  1.26%  0.78%  1.04%
Annualized return on average common equity 6.97%  12.19%  7.48%  9.80%
Annualized return on average tangible common equity (1) 9.23%  16.42%  9.94%  13.17%
Annualized yield on interest-earning assets 4.93%  4.31%  4.77%  3.77%
Annualized cost of interest-bearing liabilities 3.25%  1.50%  2.74%  0.80%
Annualized net interest spread 1.68%  2.81%  2.03%  2.97%
Annualized net interest margin 2.52%  3.28%  2.77%  3.24%
Efficiency ratio (1) 58.45%  49.67%  58.38%  51.79%
Stockholders’ equity to total assets     10.50%  10.28%
Book value per common share    $17.98  $17.09 
Tangible book value per common share (1)    $13.69  $12.76 
Tangible common equity to tangible assets (1)     8.20%  7.88%
        
Asset Quality Ratios    December 31,
2023
 December 31,
2022
Ratio of allowance for credit losses on loans to total loans     0.92%  0.89%
Non-performing loans to total loans     0.31%  0.22%
Non-performing assets to total assets     0.23%  0.16%
Net charge-offs to average loans     %  0.10%
(1) See Supplemental Information – Non-GAAP Financial Measures      
        
Selected Balance Sheet Data at Period End     2023   2022 
Loans    $8,343,861  $7,866,050 
Allowance for credit losses on loans     77,163   70,264 
Investment securities     1,852,873   2,037,386 
Total assets     11,138,567   10,783,840 
Total deposits     8,581,238   8,567,471 
Short-term borrowings     714,152   728,797 
Other borrowings     519,705   219,264 
Stockholders’ equity     1,169,369   1,108,587 

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
 
 Three Months Ended
December 31,
 Year Ended
December 31,
  2023  2022  2023  2022
Selected Average Balance Sheet Data       
Loans$8,304,747 $7,729,510 $8,094,267 $7,376,839
Investment securities 1,955,407  2,145,252  2,037,915  2,128,870
Interest-earning assets 10,354,079  9,923,173  10,234,821  9,694,234
Total assets 10,963,641  10,534,884  10,837,396  10,307,245
Noninterest-bearing demand deposits 1,829,996  2,240,197  1,918,633  2,267,867
Savings deposits 699,199  1,001,870  803,762  1,094,399
Interest-bearing transaction accounts 4,229,019  4,389,672  4,140,942  4,373,830
Time deposits 1,926,436  1,100,911  1,724,672  922,935
Total deposits 8,684,650  8,732,650  8,588,009  8,659,031
Short-term borrowings 423,629  311,875  649,551  197,557
Other borrowings 519,635  219,202  298,379  218,811
Total interest-bearing liabilities 7,797,918  7,023,530  7,617,306  6,807,532
Stockholders’ equity 1,142,031  1,092,720  1,132,656  1,095,861

 Lakeland Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
  
   Three Months Ended
December 31,
 Year Ended
December 31,
(in thousands, except per share amounts)  2023  2022   2023  2022 
Interest Income        
Loans and fees $114,678 $95,295  $432,038 $325,001 
Federal funds sold and interest-bearing deposits with banks  1,293  449   5,309  1,295 
Taxable investment securities and other  11,905  10,769   47,476  35,352 
Tax exempt investment securities  1,450  1,666   6,215  5,895 
 Total Interest Income  129,326  108,179   491,038  367,543 
Interest Expense        
Deposits  52,175  21,767   163,095  44,253 
Federal funds purchased and securities sold under agreements to repurchase  5,791  2,771   33,564  3,658 
Other borrowings  6,052  2,001   12,698  7,017 
 Total Interest Expense  64,018  26,539   209,357  54,928 
Net Interest Income  65,308  81,640   281,681  312,615 
Provision (benefit) for credit losses  1,950  (2,760)  13,052  8,514 
 Net Interest Income after Provision (Benefit) for Credit Losses  63,358  84,400   268,629  304,101 
Noninterest Income        
Service charges on deposit accounts  2,710  2,840   10,339  10,985 
Commissions and fees  1,706  2,243   7,225  9,116 
Income on bank owned life insurance  837  862   3,450  3,980 
Gain (loss) on equity securities  391  11   110  (1,302)
Gain on sales of loans  505  269   1,513  2,765 
Swap income  482  466   1,596  1,576 
Other income  155  332   905  979 
 Total Noninterest Income  6,786  7,023   25,138  28,099 
Noninterest Expense        
Compensation and employee benefits  25,137  26,914   108,874  108,167 
Premises and equipment  7,447  7,657   31,304  30,882 
FDIC insurance  1,350  690   5,294  2,724 
Data processing  1,744  1,258   7,563  6,238 
Merger-related expenses  129  533   864  8,606 
Other operating expenses  7,186  8,318   29,075  31,591 
 Total Noninterest Expense  42,993  45,370   182,974  188,208 
Income before provision for income taxes  27,151  46,053   110,793  143,992 
Provision for income taxes  7,083  12,476   26,053  36,623 
Net Income $20,068 $33,577  $84,740 $107,369 
Per Share of Common Stock        
Basic earnings $0.31 $0.51  $1.29 $1.64 
Diluted earnings $0.30 $0.51  $1.29 $1.63 
Dividends $0.145 $0.145  $0.580 $0.570 

Lakeland Bancorp, Inc.
Consolidated Balance Sheets
 
(dollars in thousands) December 31, 2023 December 31, 2022
  (Unaudited)  
Assets    
Cash $293,366  $223,299 
Interest-bearing deposits due from banks  27,289   12,651 
Total cash and cash equivalents  320,655   235,950 
Investment securities available for sale, at estimated fair value (allowance for credit losses of $0 at December 31, 2023 and $310 at December 31, 2022)  946,282   1,054,312 
Investment securities held to maturity (estimated fair value of $702,563 at December 31, 2023 and $760,455 at December 31, 2022, allowance for credit losses of $146 at December 31, 2023 and $107 at December 31, 2022)  836,377   923,308 
Equity securities, at fair value  17,697   17,283 
Federal Home Loan Bank and other membership stocks, at cost  52,517   42,483 
Loans held for sale  664   536 
Loans, net of deferred fees  8,343,861   7,866,050 
Less: Allowance for credit losses  77,163   70,264 
Net loans  8,266,698   7,795,786 
Premises and equipment, net  52,846   55,429 
Operating lease right-of-use assets  16,008   20,052 
Accrued interest receivable  37,508   33,374 
Goodwill  271,829   271,829 
Other identifiable intangible assets  7,058   9,088 
Bank owned life insurance  159,862   156,985 
Other assets  152,566   167,425 
Total Assets $11,138,567  $10,783,840 
Liabilities and Stockholders’ Equity    
Liabilities    
Deposits:    
Noninterest-bearing $1,781,619  $2,113,289 
Savings and interest-bearing transaction accounts  4,832,171   5,246,005 
Time deposits $250 thousand and under  1,458,640   901,505 
Time deposits over $250 thousand  508,808   306,672 
Total deposits  8,581,238   8,567,471 
Federal funds purchased and securities sold under agreements to repurchase  714,152   728,797 
Other borrowings  325,000   25,000 
Subordinated debentures  194,705   194,264 
Operating lease liabilities  16,891   21,449 
Other liabilities  137,212   138,272 
Total Liabilities  9,969,198   9,675,253 
Stockholders’ Equity    
Common stock, no par value; authorized 100,000,000 shares; issued 65,161,310 shares and outstanding 65,030,275 shares at December 31, 2023 and issued 65,002,738 shares and outstanding 64,871,703 shares at December 31, 2022  858,857   855,425 
Retained earnings  376,044   329,375 
Treasury shares, at cost, 131,035 shares at December 31, 2023 and December 31, 2022  (1,452)  (1,452)
Accumulated other comprehensive (loss) income  (64,080)  (74,761)
Total Stockholders’ Equity  1,169,369   1,108,587 
Total Liabilities and Stockholders’ Equity $11,138,567  $10,783,840 

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
 
  For the Quarter Ended
(dollars in thousands, except per share data) December 31,
2023
 September 30,
2023
 June 30,
2023
 March 31,
2023
 December 31,
2022
Income Statement          
Net interest income $65,308  $68,906  $71,542  $75,925  $81,640 
(Provision) benefit for credit losses  (1,950)  (1,262)  (1,947)  (7,893)  2,760 
Gain on sales of loans  505   349   229   430   269 
Gain (loss) on equity securities  391   (294)  (135)  148   11 
Other noninterest income  5,890   5,363   6,575   5,687   6,743 
Merger-related expenses  (129)  (198)  (242)  (295)  (533)
Other noninterest expense  (42,864)  (44,170)  (46,766)  (48,310)  (44,837)
Pretax income  27,151   28,694   29,256   25,692   46,053 
Provision for income taxes  (7,083)  (6,455)  (6,628)  (5,887)  (12,476)
Net income $20,068  $22,239  $22,628  $19,805  $33,577 
           
Basic earnings per common share $0.31  $0.34  $0.34  $0.30  $0.51 
Diluted earnings per common share $0.30  $0.34  $0.34  $0.30  $0.51 
Dividends paid per common share $0.145  $0.145  $0.145  $0.145  $0.145 
Dividends paid $9,521  $9,521  $9,529  $9,500  $9,505 
Weighted average shares – basic  65,064   65,064   65,059   64,966   64,854 
Weighted average shares – diluted  65,258   65,222   65,173   65,228   65,222 
           
Selected Operating Ratios          
Annualized return on average assets  0.73%  0.81%  0.84%  0.75%  1.26%
Annualized return on average common equity  6.97%  7.76%  8.03%  7.17%  12.19%
Annualized return on average tangible common equity (1)  9.23%  10.29%  10.67%  9.57%  16.42%
Annualized net interest margin  2.52%  2.68%  2.83%  3.07%  3.28%
Efficiency ratio (1)  58.45%  58.43%  58.82%  57.84%  49.67%
Common stockholders’ equity to total assets  10.50%  10.16%  10.38%  10.40%  10.28%
Tangible common equity to tangible assets (1)  8.20%  7.86%  8.02%  8.02%  7.88%
Tier 1 risk-based ratio  11.51%  11.31%  11.43%  11.33%  11.24%
Total risk-based ratio  14.11%  13.87%  14.03%  13.93%  13.83%
Tier 1 leverage ratio  9.27%  9.24%  9.17%  9.13%  9.16%
Common equity tier 1 capital ratio  11.00%  10.80%  10.90%  10.81%  10.71%
Book value per common share $17.98  $17.46  $17.40  $17.33  $17.09 
Tangible book value per common share (1) $13.69  $13.17  $13.10  $13.01  $12.76 

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

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
 
  For the Quarter Ended
(dollars in thousands) December 31,
2023
 September 30,
2023
 June 30,
2023
 March 31,
2023
 December 31,
2022
Selected Balance Sheet Data at Period End        
Loans $8,343,861  $8,294,057  $8,101,287  $7,952,553  $7,866,050 
Allowance for credit losses on loans  77,163   75,159   73,965   71,403   70,264 
Investment securities  1,852,873   1,860,996   1,938,611   1,994,927   2,037,386 
Total assets  11,138,567   11,176,809   10,897,966   10,837,241   10,783,840 
Total deposits  8,581,238   8,602,503   8,444,681   8,536,943   8,567,471 
Short-term borrowings  714,152   728,769   938,718   813,328   728,797 
Other borrowings  519,705   519,596   219,486   219,376   219,264 
Stockholders’ equity  1,169,369   1,135,627   1,131,702   1,126,580   1,108,587 
           
Loans          
Non owner occupied commercial $2,987,959  $2,980,811  $2,991,124  $2,943,897  $2,906,014 
Owner occupied commercial  1,283,221   1,299,977   1,201,049   1,205,635   1,246,189 
Multifamily  1,408,905   1,361,628   1,314,255   1,275,771   1,260,814 
Non owner occupied residential  213,986   208,560   205,818   210,203   218,026 
Commercial, industrial and other  638,507   632,531   594,401   562,287   606,276 
Paycheck Protection Program  387   388   389   390   435 
Construction  302,745   333,998   354,918   404,994   380,100 
Equipment finance  179,171   174,946   173,469   161,889   151,575 
Residential mortgages  985,768   956,535   922,109   857,427   765,552 
Consumer and home equity  343,212   344,683   343,755   330,060   331,069 
Total loans $8,343,861  $8,294,057  $8,101,287  $7,952,553  $7,866,050 
           
Deposits          
Noninterest-bearing $1,781,619  $1,857,324  $1,866,252  $1,998,590  $2,113,289 
Savings and interest-bearing transaction accounts  4,832,171   4,862,246   4,775,184   4,918,041   5,246,005 
Time deposits  1,967,448   1,882,933   1,803,245   1,620,312   1,208,177 
Total deposits $8,581,238  $8,602,503  $8,444,681  $8,536,943  $8,567,471 
           
Total loans to total deposits ratio  97.2%  96.4%  95.9%  93.2%  91.8%
           
Selected Average Balance Sheet Data          
Loans $8,304,747  $8,167,362  $7,999,285  $7,900,426  $7,729,510 
Investment securities  1,955,407   2,013,153   2,068,073   2,117,076   2,145,252 
Interest-earning assets  10,354,079   10,276,375   10,214,142   10,091,341   9,923,173 
Total assets  10,963,641   10,875,553   10,808,261   10,698,807   10,534,884 
Noninterest-bearing demand deposits  1,829,996   1,871,516   1,935,776   2,040,070   2,240,197 
Savings deposits  699,199   759,232   830,836   928,796   1,001,870 
Interest-bearing transaction accounts  4,229,019   4,103,217   4,007,867   4,224,024   4,389,672 
Time deposits  1,926,436   1,856,266   1,722,935   1,385,661   1,100,911 
Total deposits  8,684,650   8,590,231   8,497,414   8,578,551   8,732,650 
Short-term borrowings  423,629   744,582   813,471   617,611   311,875 
Other borrowings  519,635   232,573   219,425   219,308   219,202 
Total interest-bearing liabilities  7,797,918   7,695,870   7,594,534   7,375,400   7,023,530 
Stockholders’ equity  1,142,031   1,137,387   1,130,563   1,120,356   1,092,720 

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
 
  For the Quarter Ended
(dollars in thousands) December 31,
2023
 September 30,
2023
 June 30,
2023
 March 31,
2023
 December 31,
2022
Average Annualized Yields (Taxable Equivalent Basis) and Costs      
Assets          
Loans  5.48%  5.42%  5.22%  5.10%  4.84%
Taxable investment securities and other  2.87%  2.84%  2.74%  2.61%  2.41%
Tax-exempt securities  2.49%  2.49%  2.45%  2.41%  2.36%
Federal funds sold and interest-bearing cash accounts  5.46%  5.41%  5.41%  4.00%  3.68%
Total interest-earning assets  4.93%  4.86%  4.71%  4.56%  4.31%
Liabilities          
Savings accounts  0.20%  0.24%  0.26%  0.28%  0.29%
Interest-bearing transaction accounts  2.89%  2.60%  2.16%  1.85%  1.46%
Time deposits  4.34%  3.78%  3.39%  2.71%  1.77%
Borrowings  4.91%  5.04%  4.80%  4.46%  3.52%
Total interest-bearing liabilities  3.25%  2.96%  2.59%  2.11%  1.50%
Net interest spread (taxable equivalent basis)  1.68%  1.90%  2.12%  2.45%  2.81%
Annualized net interest margin (taxable equivalent basis)  2.52%  2.68%  2.83%  3.07%  3.28%
Annualized cost of deposits  2.38%  2.08%  1.73%  1.38%  0.99%
Asset Quality Data          
Allowance for Credit Losses on Loans          
Balance at beginning of period $75,159  $73,965  $71,403  $70,264  $68,879 
Provision for credit losses on loans  2,246   1,327   2,422   1,213   1,464 
Charge-offs  (265)  (217)  (148)  (139)  (138)
Recoveries  23   84   288   65   59 
Balance at end of period $77,163  $75,159  $73,965  $71,403  $70,264 
Net Loan Charge-Offs (Recoveries)          
Non owner occupied commercial $  $  $  $  $ 
Owner occupied commercial        (6)      
Multifamily               
Non owner occupied residential               
Commercial, industrial and other  (7)     (163)  (35)  (24)
Construction        13       
Equipment finance  83   136   12   46   51 
Residential mortgages  128             
Consumer and home equity  38   (3)  4   63   52 
Net (recoveries) charge-offs $242  $133  $(140) $74  $79 

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
 
  For the Quarter Ended
(dollars in thousands) December 31,
2023
 September 30,
2023
 June 30,
2023
 March 31,
2023
 December 31,
2022
Non-Performing Assets          
Non owner occupied commercial $769  $798  $864  $908  $618 
Owner occupied commercial  6,849   7,026   8,076   8,757   9,439 
Multifamily  1,096   1,106   266   584    
Non owner occupied residential        41      441 
Commercial, industrial and other  401   217   1,737   2,221   2,978 
Construction  12,698         980   980 
Equipment financing  518   626   644   379   114 
Residential mortgages  2,400   2,319   1,954   1,918   2,011 
Consumer and home equity  1,232   1,331   2,486   1,131   781 
Total non-accrual loans  25,963   13,423   16,068   16,878   17,362 
Total non-performing assets $25,963  $13,423  $16,068  $16,878  $17,362 
           
Loans past due 90 days or more and still accruing $  $  $  $  $ 
Loans restructured and still accruing              2,640 
Ratio of allowance for credit losses on loans to total loans  0.92%  0.91%  0.91%  0.90%  0.89%
Total non-accrual loans to total loans  0.31%  0.16%  0.20%  0.21%  0.22%
Total non-performing assets to total assets  0.23%  0.12%  0.15%  0.16%  0.16%
Annualized net (recoveries) charge-offs to average loans  0.01%  0.01%  (0.01)%  %  %

Lakeland Bancorp, Inc.
Supplemental Information – Non-GAAP Financial Measures
(Unaudited)
 
  At or for the Quarter Ended
(dollars in thousands, except per share amounts) December 31,
2023
 September 30,
2023
 June 30,
2023
 March 31,
2023
 December 31,
2022
Calculation of Tangible Book Value Per Common Share        
Total common stockholders’ equity at end of period – GAAP $1,169,369  $1,135,627  $1,131,702  $1,126,580  $1,108,587 
Less: Goodwill  271,829   271,829   271,829   271,829   271,829 
Less: Other identifiable intangible assets  7,058   7,559   8,060   8,572   9,088 
Total tangible common stockholders’ equity at end of period – Non-GAAP $890,482  $856,239  $851,813  $846,179  $827,670 
Shares outstanding at end of period  65,030   65,030   65,028   65,017   64,872 
Book value per share – GAAP $17.98  $17.46  $17.40  $17.33  $17.09 
Tangible book value per share – Non-GAAP $13.69  $13.17  $13.10  $13.01  $12.76 
Calculation of Tangible Common Equity to Tangible Assets        
Total tangible common stockholders’ equity at end of period – Non-GAAP $890,482  $856,239  $851,813  $846,179  $827,670 
Total assets at end of period – GAAP $11,138,567  $11,176,809  $10,897,966  $10,837,241  $10,783,840 
Less: Goodwill  271,829   271,829   271,829   271,829   271,829 
Less: Other identifiable intangible assets  7,058   7,559   8,060   8,572   9,088 
Total tangible assets at end of period – Non-GAAP $10,859,680  $10,897,421  $10,618,077  $10,556,840  $10,502,923 
Common equity to assets – GAAP  10.50%  10.16%  10.38%  10.40%  10.28%
Tangible common equity to tangible assets – Non-GAAP  8.20%  7.86%  8.02%  8.02%  7.88%
Calculation of Return on Average Tangible Common Equity        
Net income – GAAP $20,068  $22,239  $22,628  $19,805  $33,577 
Total average common stockholders’ equity – GAAP $1,142,031  $1,137,387  $1,130,563  $1,120,356  $1,092,720 
Less: Average goodwill  271,829   271,829   271,829   271,829   271,829 
Less: Average other identifiable intangible assets  7,383   7,887   8,353   8,904   9,386 
Total average tangible common stockholders’ equity – Non-GAAP $862,819  $857,671  $850,381  $839,623  $811,505 
Return on average common stockholders’ equity – GAAP  6.97%  7.76%  8.03%  7.17%  12.19%
Return on average tangible common stockholders’ equity – Non-GAAP  9.23%  10.29%  10.67%  9.57%  16.42%
Calculation of Efficiency Ratio          
Total noninterest expense $42,993  $44,368  $47,008  $48,605  $45,370 
Less:          
Amortization of core deposit intangibles  500   501   512   516   581 
Merger-related expenses  129   198   242   295   533 
Noninterest expense, as adjusted $42,364  $43,669  $46,254  $47,794  $44,256 
Net interest income $65,308  $68,906  $71,542  $75,925  $81,640 
Total noninterest income  6,786   5,418   6,669   6,265   7,023 
Total revenue $72,094  $74,324  $78,211  $82,190  $88,663 
Tax-equivalent adjustment on municipal securities  385   408   422   436   443 
Total revenue, as adjusted $72,479  $74,732  $78,633  $82,626  $89,106 
Efficiency ratio – Non-GAAP  58.45%  58.43%  58.82%  57.84%  49.67%

Lakeland Bancorp, Inc.
Supplemental Information – Non-GAAP Financial Measures
(Unaudited)
 
  For the Twelve Months Ended December 31,
(dollars in thousands)  2023   2022 
Calculation of Return on Average Tangible Common Equity    
Net income – GAAP $84,740  $107,369 
Total average common stockholders’ equity – GAAP $1,132,656  $1,095,861 
Less: Average goodwill  271,829   270,246 
Less: Average other identifiable intangible assets  8,127   10,192 
Total average tangible common stockholders’ equity – Non-GAAP $852,700  $815,423 
Return on average common stockholders’ equity – GAAP  7.48%  9.80%
Return on average tangible common stockholders’ equity – Non-GAAP  9.94%  13.17%
Calculation of Efficiency Ratio    
Total noninterest expense $182,974  $188,208 
Less:    
Amortization of core deposit intangibles  2,029   2,351 
Merger-related expenses  864   8,606 
Noninterest expense, as adjusted $180,081  $177,251 
Net interest income $281,681  $312,615 
Noninterest income  25,138   28,099 
Total revenue $306,819  $340,714 
Tax-equivalent adjustment on municipal securities  1,652   1,567 
Total revenue, as adjusted $308,471  $342,281 
Efficiency ratio – Non-GAAP  58.38%  51.79%

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Cookie Notice

We use cookies to improve your experience on our website

Information we collect about your use of Goldea Capital website

Goldea Capital website collects personal data about visitors to its website.

When someone visits our websites, we use a third party service, Google Analytics, to collect standard internet log information (such as IP address and type of browser they’re using) and details of visitor behavior patterns. We do this to allow us to keep track of the number of visitors to the various parts of the sites and understand how our website is used. We do not make any attempt to find out the identities or nature of those visiting our websites. We won’t share your information with any other organizations for marketing, market research or commercial purposes and we don’t pass on your details to other websites.

Use of cookies
Cookies are small text files that are placed on your computer or other device by websites that you visit. They are widely used to make websites work, or work more efficiently, as well as to provide information to the owners of the site.