Lakeland Bancorp (LBAI) Receives $59 Million From TARP Program

February 9, 2009 1:59 PM EST

Lakeland Bancorp, Inc. (Nasdaq: LBAI) reported the receipt on Friday, February 6, 2009 of a $59 million investment by the U.S. Department of Treasury. The investment is part of the Treasury's Capital Purchase Program and is in the form of preferred stock.

Lakeland had received preliminary approval of the Treasury's investment in December, 2008. In order to close on the investment, Lakeland needed to obtain shareholder approval to amend its certificate of incorporation to provide for the issuance of preferred stock. At its special meeting on January 28, 2009, Lakeland received shareholder approval to issue preferred stock, from which 59,000 shares of preferred stock were issued to the Treasury. As part of the investment, Lakeland issued the Treasury warrants to purchase 949,571 shares of its common stock at an exercise price of $9.32 per share. The warrants are exercisable for a period of 10 years.

"We look forward to putting our new capital to use by providing conservatively underwritten loans to individuals and business owners in the communities and neighborhoods that we have served for the past forty years," said Thomas J. Shara, President and CEO of Lakeland.

Lakeland Bancorp, the holding company for Lakeland Bank, has a current asset base of $2.6 billion and forty-nine (49) offices spanning six northwestern New Jersey counties: Bergen, Essex, Morris, Passaic, Sussex and Warren.[SM]

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