Lakeland Bancorp Reports Third Quarter Results
More News related to LBAI
- Lakeland Bancorp Reports Third Quarter Results
- Lakeland Bank Opens New Office in West Caldwell
- Fox-Pitt Initiates Coverage on Lakeland Bancorp (LBAI)
- Lakeland Bancorp (LBAI) Receives $59 Million From TARP Program
- Lakeland Bancorp (LBAI) Receives Preliminary Approval for $59 Million From TARP
More News related to Press Releases
- Maxim Group Initiates Coverage on Golden Green Enterprises (CHOP) with a Buy
- Hilliard Lyons Initiates Coveage on Approach Resources (AREX) with a Buy
- Wells Fargo Transfers Coverage on Intuitive Surgical (ISRG) to a Market Perform; Raises Valuation Range
- Wedbush Initiates Coverage on Coinstar (CSTR) with an Outperform
- Thomas Weisel Starts FARO Tech. (FARO) at Overweight, $24 Price Target
OAK RIDGE, N.J., Oct. 22 /PRNewswire-FirstCall/ -- Lakeland Bancorp, Inc. (Nasdaq: LBAI) reported third quarter Net Income of $2.0 million compared to $5.9 million for the same period of 2008. Net Income Available to Common Shareholders was $1.1 million or $0.05 per diluted share compared to $5.9 million, or $0.25 per diluted share for the same period last year. Net Loss Available to Common Shareholders for the first nine months of 2009 was $9.8 million or a loss of $0.42 per share, as compared to Net Income of $14.3 million, or $0.61 per diluted share for the same period last year.
The third quarter's results were impacted by a loan and lease loss provision of $4.7 million, as compared to $3.3 million for the same period last year. Of the total third quarter provision, $1.3 million was allocated to leasing. Year-to-date, the loan and lease loss provision totaled $45.2 million, as compared to $12.7 million for the first nine months of 2008. Of the total provision this year, $35.4 million was allocated to leasing.
In the third quarter of 2009, the Company continued to reduce its exposure in the leasing business. Total leases, including leases held for sale, amounted to $139.0 million at September 30, 2009, a $54.6 million, or 28%, decline from the $193.6 million at June 30, 2009. Leases held for sale were $8.9 million at September 30, 2009, down from $39.2 million at June 30, 2009. The reduction in total leases includes the sale in the third quarter of approximately $27.9 million of leases, and other lease related transactions, which resulted in a loss on leasing related assets of $709,000. At September 30, 2009, leases now represent 7% of total loans and leases compared to 15% at year end 2008.
The Company declared a quarterly cash dividend of $0.05 per common share, payable on November 13, 2009 to holders of record as of the close of business on November 2, 2009. The Company also declared a dividend of 5% for the quarterly dividend payment due November 16, 2009 for the preferred stock issued to the U.S. Treasury under the Capital Purchase Program.
"The $172 million or 55% reduction in our leasing portfolio year to date, including the $55 million reduction in the third quarter, demonstrates our continued commitment to substantially reduce our exposure in this line of business," stated Thomas J. Shara, President and CEO. "Our core bank continues to experience strong growth in both core deposits and loans. Core Deposits increased 10% including a 7% increase in non-interest bearing deposits. Total loans, excluding leases, have increased 6% year to date."
"The Bank has experienced some deterioration in asset quality this quarter," Mr. Shara continued. "Non-performing assets of $43.3 million rose to 1.56% of Total Assets up from 1.11% at June 30. However, this includes $5.6 million related to our leasing business and only four commercial loans exceeding $1 million. Past due loans over 90 days declined to $2.3 million at September 30 from $4.2 million at June 30."
Earnings
Net Interest Income
Net interest income for the third quarters of 2009 and 2008 were $23.0 million. Net interest margin for the third quarter of 2009 was 3.62%, compared to the 3.92% reported in the third quarter of 2008, and 3.63% for the second quarter this year. The yield on interest-earning assets declined to 5.18% in the third quarter of 2009 compared to 6.12% for the same period last year. This decrease reflects the declining interest rate environment along with a lower percentage of earning assets being deployed in loans, as the lease portfolio continues to decrease. The cost of interest bearing liabilities decreased from 2.57% in the third quarter of 2008 to 1.84% in the third quarter of 2009. The decrease in yield was due to the continued active management of deposit rates this quarter.
Year-to-date, net interest income was $68.4 million, or 3% higher than the $66.1 million reported for the first nine months of 2008. Net interest margin for the first nine months of 2009 at 3.68% compared to 3.82% for the same period last year. The Company's yield on earning assets decreased from 6.22% for the first nine months of 2008, to 5.38% for the first nine months of 2009. The Company's cost of interest bearing liabilities decreased from 2.78% for the first nine months of 2008 to 2.00% for the first nine months of 2009.
Noninterest Income
Noninterest income totaled $3.6 million for the third quarter of 2009, as compared to $4.2 million for the same period last year. Included in this category was the $709,000 loss on leasing related assets, as compared to a gain of $109,000 for the same period last year. Service charges on deposit accounts totaling $2.8 million, decreased by 3% for the same period in 2008, primarily due to reduced overdraft fees collected, while commissions and fees at $1.0 million increased by 23%, primarily due to increased loan fees and investment services commission income.
Noninterest income totaled $11.9 million for the first nine months of 2009 compared to $13.3 million for the same period last year. The decrease in this category is primarily due to a $1.1 million loss on leasing related assets, as compared to a gain of $921,000 last year. Service charges on deposit accounts at $8.1 million were down 2% primarily due to reduced overdraft fees collected, while commissions and fees increased by 3%, primarily due to increased loan fees.
Noninterest Expense
Noninterest expense for the third quarter of 2009 was $17.1 million, compared to $14.9 million for the same period last year. Salary and benefit expense at $8.5 million increased by $263,000, or 3%, reflecting increased staffing levels and normal salary increases. Occupancy, furniture and equipment expenses at $2.8 million increased 6%, primarily due to two new branch offices that were opened subsequent to the third quarter of 2008. FDIC insurance expense at $1.2 million increased by $901,000, while collection expense at $405,000 increased by $324,000, due to leasing related collection costs. Other expenses at $2.6 million increased by $338,000, primarily due to an increase in legal fees and appraisal costs.
For the first nine months of 2009, noninterest expense was $53.5 million, compared to $44.7 million in 2008. Salary and benefit costs increased by $1.5 million, or 6%, to $25.9 million. Occupancy, furniture and equipment expenses increased by $515,000, or 6%, to $8.8 million, while FDIC insurance expense at $4.5 million increased by $3.6 million. Other repossessed asset expense at $917,000 and collection expense at $1.3 million, respectively, increased by $883,000 and $998,000, due to leasing related items. Other expenses at $8.1 million increased by $975,000 primarily due to a $704,000 expense incurred in the second quarter of 2009 relating to the pretax payout on a life insurance benefit.
Financial Condition
At September 30, 2009, total assets were $2.77 billion, an increase of 5% this year. Total loans were $1.96 billion, a decrease of $66.0 million from $2.03 billion at year-end 2008. An increase in commercial loans and residential mortgage loans of $64.7 million, or 6%, and $38.0 million, or 11%, respectively, were more than offset by a decrease of $172.5 million, or 55%, in leases. Investment securities totaled $576.2 million at September 30, 2009, an increase of $183.9 million, or 47% from year-end 2008.
Total deposits were $2.14 billion, an increase of $88.0 million, or 4%, from December 31, 2008. Of this overall increase, $21.1 million was in noninterest bearing demand deposits, a 7% increase from December 31, 2008. The loan-to-deposit ratio on September 30, 2009 was 92%, as compared to 99% on December 31, 2008. Core deposits, which are defined as noninterest bearing deposits and savings and interest bearing transaction accounts, amounted to $1.59 billion and represented 74% of total deposits at September 30, 2009, as compared to 70% at year-end 2008.
Asset Quality
At September 30, 2009, non-performing assets totaled $43.3 million (1.56% of total assets) compared to $30.2 million (1.11% of total assets) at June 30, 2009. The Allowance for Loan and Lease Losses totaled $24.1 million at September 30, 2009 and represented 1.23% of total loans, which was equal to this ratio at June 30, 2009. In the third quarter of 2009, the Company had net charge offs totaling $4.9 million including $2.3 million in leases. For the first nine months of 2009, the Company had net charge-offs of $46.1 million including $41.4 million that were lease related.
Capital
At September 30, 2009, stockholders' equity was $269.1 million and book value per common share was $8.95. As of September 30, 2009, the Company's leverage ratio was 9.46%. Tier I and total risk based capital ratios were 12.80% and 14.04%, respectively. These regulatory capital ratios exceed those necessary to be considered a well-capitalized institution under Federal guidelines.
Forward-Looking Statements
The information disclosed in this document includes various forward-looking statements (with respect to corporate objectives, and other financial and business matters) 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. Lakeland 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 affecting the financial services industry, government intervention in the U.S. financial system, passage by the U.S. Congress of legislation which unilaterally amends the terms of the U.S. Department of the Treasury's preferred stock investment in the Company, changes in levels of market interest rates, pricing pressures on loan and deposit products, credit risks of the Company's lending and leasing activities, customers' acceptance of the Company's products and services and competition. Any statements made by Lakeland that are not historical facts should be considered to be forward-looking statements. Lakeland is not obligated to update and does not undertake to update any of its forward-looking statements made herein.
Lakeland Bancorp, the holding company for Lakeland Bank, has a current asset base of $2.8 billion and forty-eight (48) offices spanning six northwestern New Jersey counties: Bergen, Essex, Morris, Passaic, Sussex and Warren. Lakeland Bank, headquartered at 250 Oak Ridge Road, Oak Ridge, New Jersey offers an extensive array of consumer and commercial products and services, including online banking, localized commercial lending teams, and 24-hour or less turnaround time on consumer loan applications. For more information about their full line of products and services, visit their website at www.lakelandbank.com.
Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
Three months ended Nine months ended
September 30, September 30,
----------------- -----------------
2009 2008 2009 2008
---- ---- ---- ----
(Dollars in thousands except per share amounts)
INCOME STATEMENT
Net Interest Income $23,022 $23,140 $68,397 $66,126
Provision for Loan
and Lease Losses (4,718) (3,273) (45,177) (12,698)
Noninterest Income
(excluding investment
securities gains) 3,554 4,218 11,584 13,199
Gains on investment
securities - - 353 52
Noninterest Expense (17,077) (14,920) (53,481) (44,675)
------- ------- ------- -------
Pretax Income (Loss) 4,781 9,165 (18,324) 22,004
Tax (Expense) Benefit (2,770) (3,309) 10,788 (7,728)
------ ------ ------ ------
Net Income (Loss) $2,011 $5,856 $(7,536) $14,276
------ ------ ------- -------
Dividends on Preferred
Stock and Discount
Accretion (885) - (2,309) -
---- --- ------ ---
Net Income (Loss)
Available to Common
Stockholders $1,126 $5,856 $(9,845) $14,276
====== ====== ======= =======
Basic Earnings
(Loss) Per Common Share $0.05 $0.25 $(0.42) $0.61
Diluted Earnings (Loss) Per
Common Share $0.05 $0.25 $(0.42) $0.61
Dividends per Common Share $0.05 $0.10 $0.25 $0.30
Weighted Average Shares
- Basic 23,695 23,541 23,651 23,423
Weighted Average Shares
- Diluted 23,731 23,623 23,651 23,518
SELECTED OPERATING RATIOS
Annualized Return on Average
Assets* 0.29% 0.90% NM 0.75%
Annualized Return on Average
Common Equity* 3.77% 10.70% NM 8.83%
Annualized Return on Interest
Earning Assets 5.18% 6.12% 5.38% 6.22%
Annualized Cost of funds 1.84% 2.57% 2.00% 2.78%
Annualized Net interest spread 3.34% 3.55% 3.37% 3.44%
Annualized Net interest margin 3.62% 3.92% 3.68% 3.82%
Efficiency ratio** 62.07% 53.02% 64.00% 54.58%
Stockholders' equity to total
assets 9.72% 8.51%
Book value per common share*** $8.95 $9.30
ASSET QUALITY RATIOS 9/30/2009 12/31/2008
--------- ----------
Ratio of allowance for loan and
lease losses to total
loans **** 1.23% 1.23%
Non-performing loans to total
loans **** 2.15% 0.81%
Non-performing assets to total
assets **** 1.56% 0.78%
Allowance for loan and lease
losses to non-performing
loans **** 57% 151%
SELECTED BALANCE SHEET DATA
AT PERIOD-END 9/30/2009 12/31/2008
--------- ----------
Loans and Leases $1,964,624 $2,030,666
Allowance for Loan and Lease
Losses (24,149) (25,053)
Investment Securities 576,160 392,288
Total Assets 2,769,463 2,642,625
Total Deposits 2,144,151 2,056,133
Short-Term Borrowings 62,001 62,363
Long-Term Debt 278,222 288,222
Stockholders' Equity 269,100 220,941
SELECTED AVERAGE BALANCE
SHEET DATA
For the three For the nine
months ended months ended
9/30/2009 9/30/2008 9/30/2009 9/30/2008
--------- --------- --------- ---------
Loans and Leases, net 1,982,700 2,002,869 2,010,594 1,952,680
Investment Securities 521,468 359,888 458,995 379,012
Interest-Earning Assets 2,554,132 2,377,475 2,515,686 2,346,546
Total Assets 2,771,358 2,574,783 2,719,203 2,555,648
Core Deposits 1,556,868 1,431,794 1,481,678 1,407,042
Time Deposits 600,638 519,949 620,001 546,503
Total Deposits 2,157,506 1,951,743 2,101,679 1,953,545
Short-Term Borrowings 45,628 92,607 47,656 85,240
Long-Term Debt 204,657 221,638 208,858 208,126
Subordinated Debentures 77,322 77,322 77,322 77,322
Total Interest-Bearing
Liabilities 2,162,776 2,036,829 2,126,636 2,025,025
Stockholders' Equity 267,288 217,768 266,641 216,059
Common Stockholders'
Equity 211,501 217,768 218,288 216,059
* Ratios for the nine months ended September 30, 2009 are not meaningful
and therefore not reported.
** Represents non-interest expense, excluding other real estate expense,
other repossessed asset expense, and core deposit amortization, as a
percentage of total revenue (calculated on a tax equivalent basis),
excluding gains (losses) on sales of securities. Total revenue
represents net interest income (calculated on a tax equivalent basis)
plus non-interest income.
*** Excludes preferred stock
****Includes leases held for sale
Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
ASSETS 2009 2008
---- ----
(dollars in thousands) (unaudited)
Cash and due from banks $37,180 $35,238
Federal funds sold and interest-
bearing deposits due from banks 7,836 14,538
----- ------
Total cash and cash
equivalents 45,016 49,776
Investment securities
available for sale 488,124 282,174
Investment securities held
to maturity; fair value of
$91,079 in 2009 and $111,881
in 2008 88,036 110,114
Loans:
Commercial 1,125,505 1,060,839
Leases 130,011 311,463
Residential mortgages 380,684 342,660
Consumer and home equity 319,478 315,704
Leases held for sale,
at fair value 8,946 -
----- ---
Total loans 1,964,624 2,030,666
Deferred cost 3,408 4,165
Allowance for loan and
lease losses (24,149) (25,053)
------- -------
Net loans 1,943,883 2,009,778
Premises and equipment - net 29,815 29,479
Accrued interest receivable 9,444 8,598
Goodwill 87,111 87,111
Other identifiable intangible assets 1,905 2,701
Bank owned life insurance 41,211 39,217
Other assets 34,918 23,677
------ ------
TOTAL ASSETS $2,769,463 $2,642,625
========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest bearing $323,630 $302,492
Savings and interest-
bearing transaction
accounts 1,263,139 1,142,609
Time deposits under
$100,000 348,182 393,549
Time deposits $100,000
and over 209,200 217,483
------- -------
Total deposits 2,144,151 2,056,133
Federal funds purchased and
securities sold under
agreements to repurchase 62,001 62,363
Long-term debt 200,900 210,900
Subordinated debentures 77,322 77,322
Other liabilities 15,989 14,966
------ ------
TOTAL LIABILITIES 2,500,363 2,421,684
--------- ---------
STOCKHOLDERS' EQUITY
Preferred stock, Series A,
no par value, $1,000
liquidation value,
authorized 1,000,000
shares; issued 59,000
shares at September 30,
2009 55,876 0
Common stock, no par value;
authorized shares, 40,000,000;
issued shares, 24,740,564 at
September 30, 2009 and
December 31, 2008 259,787 257,051
Accumulated Deficit (35,028) (19,246)
Treasury shares, at cost,
907,316 shares at September
30, 2009 and 1,053,561 at
December 31, 2008 (12,477) (14,496)
Accumulated other
comprehensive income (loss) 942 (2,368)
--- ------
TOTAL STOCKHOLDERS'
EQUITY 269,100 220,941
------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,769,463 $2,642,625
========== ==========
Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months Nine Months
Ended Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
(In thousands, except per share data)
INTEREST INCOME
Loans and fees $28,633 $32,336 $87,931 $95,725
Federal funds sold and
interest bearing
deposits with banks 32 68 89 293
Taxable investment
securities 3,775 3,331 10,566 10,369
Tax exempt investment
securities 550 527 1,713 1,864
--- --- ----- -----
TOTAL INTEREST INCOME 32,990 36,262 100,299 108,251
------ ------ ------- -------
INTEREST EXPENSE
Deposits 6,561 8,973 21,469 29,924
Federal funds purchased
and securities sold
under agreements to
repurchase 29 437 96 1,356
Long-term debt 3,378 3,712 10,337 10,845
----- ----- ------ ------
TOTAL INTEREST EXPENSE 9,968 13,122 31,902 42,125
----- ------ ------ ------
NET INTEREST INCOME 23,022 23,140 68,397 66,126
Provision for loan and
lease losses 4,718 3,273 45,177 12,698
----- ----- ------ ------
NET INTEREST INCOME
AFTER PROVISION FOR
LOAN AND LEASE LOSSES 18,304 19,867 23,220 53,428
NONINTEREST INCOME
Service charges on deposit
accounts 2,768 2,857 8,134 8,262
Commissions and fees 1,045 847 2,741 2,672
Gain on investment
securities 0 0 353 52
Income on bank owned
life insurance 324 344 1,473 1,015
Gain (loss) on leasing
related assets (709) 109 (1,055) 921
Other income 126 61 291 329
--- -- --- ---
TOTAL NONINTEREST INCOME 3,554 4,218 11,937 13,251
----- ----- ------ ------
NONINTEREST EXPENSE
Salaries and employee
benefits 8,545 8,282 25,867 24,379
Net occupancy expense 1,596 1,511 5,067 4,574
Furniture and equipment 1,235 1,165 3,719 3,697
Stationery, supplies
and postage 394 370 1,215 1,243
Marketing expense 667 648 2,008 1,650
Amortization of core
deposit intangibles 265 265 796 796
FDIC insurance expense 1,231 330 4,547 930
Collection expense 405 81 1,287 289
Other repossessed asset
expense 133 0 917 34
Other expenses 2,606 2,268 8,058 7,083
----- ----- ----- -----
TOTAL NONINTEREST EXPENSE 17,077 14,920 53,481 44,675
------ ------ ------ ------
INCOME (LOSS) BEFORE
PROVISION FOR INCOME TAXES 4,781 9,165 (18,324) 22,004
Provision for income taxes
(benefit) 2,770 3,309 (10,788) 7,728
----- ----- ------- -----
NET INCOME (LOSS) $2,011 $5,856 ($7,536) $14,276
------ ------ ------- -------
Dividends on Preferred
Stock and Discount
Accretion 885 0 2,309 -
--- --- ----- ---
Net Income (Loss) Available
to Common Stockholders $1,126 $5,856 ($9,845) $14,276
====== ====== ======= =======
EARNINGS (LOSS) PER COMMON
SHARE
Basic $0.05 $0.25 $(0.42) $0.61
----- ----- ------ -----
Diluted $0.05 $0.25 $(0.42) $0.61
----- ----- ------ -----
DIVIDENDS PER COMMON SHARE $0.05 $0.10 $0.25 $0.30
----- ----- ----- -----
SOURCE Lakeland Bancorp, Inc.
Related Categories
Press ReleasesStocks Mentioned
-0.15Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
