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Lakeland Bancorp Reports Increased First Quarter Results

OAK RIDGE, N.J., April 28, 2014 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (Nasdaq:LBAI) reported the following positive developments for the first quarter of 2014:

  • Net Income in the first quarter of 2014 was $7.2 million, or $0.20 per diluted share, as compared to the $5.1 million, or $0.17 per diluted share, reported for the same period last year. Included in the 2013 first quarter earnings was $0.6 million in pre-tax expenses related to the merger with Somerset Hills Bancorp. Exclusive of these expenses, diluted EPS for the first quarter of 2013 was $0.19 per common share.
  • The Company reported strong growth in both loans and non-interest bearing demand deposits in the first quarter of 2014. Loans totaling $2.50 billion at March 31, 2014 increased by $34.3 million from December 31, 2013, including a 3% increase in commercial loans secured by real estate. Non-interest bearing demand deposits at $630.5 million increased by $29.8 million, or 5%, from year-end 2013 and represented 23% of total deposits at March 31, 2014.
  • Net Interest Margin ("NIM") was 3.72%, a two basis point improvement from the fourth quarter of 2013, primarily due to the increased commercial loan demand, as well as the reduced cost of other borrowings. The yield on interest-earning assets was unchanged at 3.99% compared to the fourth quarter of 2013, while the yield on average interest-bearing liabilities decreased by two basis points to 0.36% in the first quarter of 2014 from 0.38% in the fourth quarter of 2013.
  • On April 25, 2014, the Company declared a quarterly cash dividend of $0.075 per common share. The cash dividend will be paid on May 15, 2014 to holders of record as of the close of business on May 8, 2014.

Thomas J. Shara, Lakeland Bancorp's President and CEO said, "In the first quarter of 2014, we showed continued growth in both commercial real estate loans and non-interest-bearing demand deposits, primarily in the commercial sector, reflecting an improvement in the local economy in which we operate. Net Interest Margin remained stable, while total loans and total assets at $2.5 billion and $3.4 billion, respectively, are at record levels, reflecting our continued growth."

Earnings

As previously noted, the Company acquired Somerset Hills Bancorp ("Somerset Hills"), which had total assets of $355.9 million at the time of acquisition, on May 31, 2013. Accordingly, the Company's financial statements reflect the impact of the merger from the date of acquisition which should be considered when comparing the results for the first quarter of 2014 and 2013, respectively.

Net Interest Income

Net interest income for the first quarter of 2014 at $27.8 million compared to $23.9 million for the same period in 2013, an increase of 16%, reflecting an increase in interest-earning assets resulting from the Somerset Hills' merger as well as organic growth. Net interest margin at 3.72% compared to 3.71% reported in the first quarter of 2013. The Company's yield on interest-earning assets in the first quarter of 2014 was 3.99%, a decrease of twelve basis points from the same period in 2013. The cost of interest-bearing liabilities was 0.36%, a decrease of 15 basis points from the first quarter of 2013.

Noninterest income

Noninterest income, exclusive of gains on investment securities, totaled $4.1 million for the first quarter of 2014, a decrease of $0.5 million as compared to the same period in 2013. Gains on sales of securities totaled $2 thousand and $0.5 million in the first quarters of 2014 and 2013, respectively. Service charges on deposits at $2.6 million were equivalent to the total for the first quarter of 2013. Commissions and fees at $1.0 million decreased by $0.2 million, primarily due to a decrease in investment commission income. Other income was $0.4 million lower than the total for the same period last year primarily due to reductions in both loan swap income and gains on sales of residential mortgage loans.

Noninterest expense

Noninterest expense for the first quarter of 2014 was $19.7 million as compared to $17.1 million, exclusive of the $0.5 million prepayment fee on long-term debt and $0.6 million in merger related expenses, in the first quarter of 2013. Salary and benefit expense at $10.8 million increased by 9%, partially due to increased staffing due to the Somerset Hills merger. Net occupancy, furniture and equipment expenses at $4.3 million were $0.9 million higher than last year primarily due to expenses relating to the six new branches acquired in the Somerset Hills merger, as well as a $0.4 million increase in snow removal costs in the first quarter of 2014. Other expenses were $3.0 million, a $0.7 million increase from the first quarter of 2013, primarily due to a $0.3 million increase in audit fees.

Financial Condition

At March 31, 2014, total assets were $3.39 billion, an increase of $68.9 million from year-end 2013. Total loans at $2.50 billion were $34.3 million higher than at December 31, 2013, primarily due to a $43.3 million, or 3%, increase in commercial real estate loans. Total deposits at $2.74 billion increased by $27.5 million from year-end 2013, primarily due to an increase of $29.8 million in noninterest bearing demand deposits, which totaled $630.5 million at March 31, 2014.

Asset Quality

At March 31, 2014, non-performing assets totaled $22.7 million (0.67% of total assets), as compared to $17.5 million as of December 31, 2013, and $25.8 million as of March 31, 2013. Three non-performing loans totaling $3.5 million were resolved in April 2014 resulting in no additional specific reserve allocation or charge-offs. The Allowance for Loan and Lease Losses totaled $29.5 million at March 31, 2014, represented 1.18% of total loans, and was 134% of non-accruing loans. During the first quarter of 2014, the Company had net charge-offs of $1.8 million (annualized 0.29 % of average loans) compared to $2.5 million (annualized 0.47% of average loans) in the first quarter of 2013. The provision for loan and lease losses in the first quarter of 2014 was $1.5 million, compared to $3.2 million in the first quarter of 2013.

Capital

Stockholders' equity was $359.5 million, while book value and tangible book value per common share were $9.96 and $6.85, respectively, as of March 31, 2014. As of March 31, 2014, the Company's leverage ratio was 9.01%. Tier I and total risk based capital ratios were 11.76% and 13.01% 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, trends, 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, 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, competition and the failure to realize anticipated efficiencies and synergies of the merger between Lakeland Bancorp, Inc. and Somerset Hills Bancorp. 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.

EXPLANATION OF NON-GAAP FINANCIAL MEASURES

Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. 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.

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, expenses on other real estate owned and other repossessed assets, 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 securities gains and losses and gain on debt extinguishment, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a better comparison of period to period operating performance.

About Lakeland Bank

Lakeland Bancorp, the holding company for Lakeland Bank, has $3.4 billion in total assets with 52 offices spanning eight northern New Jersey counties: Bergen, Essex, Morris, Passaic, Somerset, Sussex, Union and Warren. Lakeland Bank is the second largest commercial bank headquartered in the state and offers an extensive array of consumer and commercial products and services, including online and mobile banking, localized commercial lending teams, and 24-hour or less turnaround time on consumer loan applications. For more information about the full line of products and services, visit LakelandBank.com.

Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
For the Quarter Ended
Mar 31, Dec 31, Sept 30, Jun 30, Mar 31,
(dollars in thousands, except per share data) 2014 2013 2013 2013 2013
INCOME STATEMENT (unaudited)
Net Interest Income $ 27,845 $ 27,973 $ 27,487 $ 25,146 $ 23,936
Provision for Loan and Lease Losses (1,489) (1,687) (1,879) (2,594) (3,183)
Other Noninterest Income 4,071 5,139 4,645 4,595 4,546
Gains on investment securities 2 333 -- 1 505
Gain on debt extinguishment -- -- -- 1,197 --
Long-term debt prepayment fee -- (683) -- -- (526)
Merger related expenses -- (7) (744) (1,452) (631)
Core deposit intangible amortization (123) (124) (123) (41) --
Other Noninterest Expense (19,619) (19,900) (19,540) (17,900) (17,070)
Pretax Income 10,687 11,044 9,846 8,952 7,577
Tax Expense (3,524) (3,703) (3,229) (3,049) (2,469)
Net Income Available to Common Stockholders $ 7,163 $ 7,341 $ 6,617 $ 5,903 $ 5,108
Basic Earnings Per Common Share $ 0.20 $ 0.20 $ 0.18 $ 0.19 $ 0.17
Diluted Earnings Per Common Share $ 0.20 $ 0.20 $ 0.18 $ 0.19 $ 0.17
Dividends Per Common Share $ 0.075 $ 0.075 $ 0.07 $ 0.07 $ 0.07
Dividends Paid $ 2,705 $ 2,688 $ 2,504 $ 2,091 $ 2,081
Weighted Average Shares - Basic 35,888 35,654 35,512 31,527 29,563
Weighted Average Shares - Diluted 36,006 35,856 35,736 31,618 29,625
SELECTED OPERATING RATIOS
Annualized Return on Average Assets 0.88% 0.88% 0.81% 0.79% 0.72%
Annualized Return on Average Common Equity 8.14% 8.30% 7.64% 7.76% 7.33%
Annualized Return on Tangible Common Equity (1) 11.88% 12.23% 11.39% 11.31% 10.59%
Annualized Net Interest Margin 3.72% 3.70% 3.68% 3.68% 3.71%
Efficiency ratio (1) 60.90% 59.44% 59.98% 59.70% 59.85%
Common stockholders' equity to total assets 10.62% 10.59% 10.53% 10.46% 9.76%
Tangible common equity to tangible assets (1) 7.55% 7.46% 7.36% 7.24% 6.98%
Tier 1 risk-based ratio 11.76% 11.73% 11.64% 11.53% 11.60%
Total risk-based ratio 13.01% 12.98% 12.89% 12.78% 12.85%
Tier 1 leverage ratio 9.01% 8.90% 8.84% 9.43% 8.77%
Book value per common share $ 9.96 $ 9.74 $ 9.70 $ 9.55 $ 9.51
Tangible book value per common share (1) $ 6.85 $ 6.63 $ 6.55 $ 6.39 $ 6.59
(1) See Supplemental Information - Non GAAP financial measures
Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
2014 2013
(dollars in thousands, except per share amounts)
INTEREST INCOME
Loans and fees $26,898 $24,407
Federal funds sold and interest bearing deposits with banks 13 13
Taxable investment securities and other 2,546 1,719
Tax exempt investment securities 473 430
TOTAL INTEREST INCOME 29,930 26,569
INTEREST EXPENSE
Deposits 1,263 1,662
Federal funds purchased and securities sold under agreements to repurchase 15 9
Other borrowings 807 962
TOTAL INTEREST EXPENSE 2,085 2,633
NET INTEREST INCOME 27,845 23,936
Provision for loan and lease losses 1,489 3,183
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES 26,356 20,753
NONINTEREST INCOME
Service charges on deposit accounts 2,559 2,522
Commissions and fees 1,013 1,213
Gains on sales and calls of investment securities 2 505
Income on bank owned life insurance 360 313
Other income 139 498
TOTAL NONINTEREST INCOME 4,073 5,051
NONINTEREST EXPENSE
Salaries and employee benefits 10,813 9,953
Net occupancy expense 2,617 1,974
Furniture and equipment 1,693 1,405
Stationery, supplies and postage 354 370
Marketing expense 386 288
FDIC insurance expense 501 513
Legal expense 273 242
Other real estate owned and other repossessed asset expense 15 19
Long-term debt prepayment fee -- 526
Merger related expenses -- 631
Core deposit intangible amortization 123 --
Other expenses 2,967 2,306
TOTAL NONINTEREST EXPENSE 19,742 18,227
INCOME BEFORE PROVISION FOR INCOME TAXES 10,687 7,577
Provision for income taxes 3,524 2,469
NET INCOME $7,163 $5,108
EARNINGS PER COMMON SHARE
Basic $0.20 $0.17
Diluted $0.20 $0.17
DIVIDENDS PER COMMON SHARE $0.075 $0.07
Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
ASSETS 2014 2013
(dollars in thousands) (unaudited)
Cash and due from banks $128,307 $94,205
Federal funds sold and interest-bearing deposits due from banks 19,298 8,516
Total cash and cash equivalents 147,605 102,721
Investment securities available for sale, at fair value 429,777 431,106
Investment securities held to maturity; fair value of $95,041 in 2014 and $100,394 in 2013 95,451 101,744
Federal Home Loan Bank and other membership stocks, at cost 7,937 7,938
Loans held for sale -- 1,206
Loans:
Commercial, secured by real estate 1,486,274 1,442,980
Commercial, industrial and other 208,056 213,808
Leases 43,720 41,332
Residential mortgages 430,559 432,831
Consumer and home equity 336,017 339,338
Total loans 2,504,626 2,470,289
Net deferred costs (1,329) (1,273)
Allowance for loan and lease losses (29,520) (29,821)
Net loans 2,473,777 2,439,195
Premises and equipment, net 36,731 37,148
Accrued interest receivable 8,332 8,603
Goodwill 109,974 109,974
Other identifiable intangible assets 2,301 2,424
Bank owned life insurance 56,328 55,968
Other assets 18,507 19,764
TOTAL ASSETS $3,386,720 $3,317,791
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest bearing $630,499 $600,652
Savings and interest-bearing transaction accounts 1,816,084 1,812,467
Time deposits under $100,000 177,284 180,859
Time deposits $100,000 and over 112,866 115,227
Total deposits 2,736,733 2,709,205
Federal funds purchased and securities sold under agreements to repurchase 115,952 81,991
Other borrowings 119,000 119,000
Subordinated debentures 41,238 41,238
Other liabilities 14,258 14,933
TOTAL LIABILITIES 3,027,181 2,966,367
STOCKHOLDERS' EQUITY
Common stock, no par value; authorized 70,000,000 shares; issued 36,106,277 shares at March 31, 2014 and 36,070,286 shares at December 31, 2013 365,304 364,637
Accumulated Deficit (4,081) (8,538)
Accumulated other comprehensive (loss) (1,684) (4,675)
TOTAL STOCKHOLDERS' EQUITY 359,539 351,424
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,386,720 $3,317,791
Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
For the Quarter Ended
Mar 31, Dec 31, Sept 30, Jun 30, Mar 31,
(dollars in thousands) 2014 2013 2013 2013 2013
(unaudited)
SELECTED BALANCE SHEET DATA AT PERIOD-END
Loans and Leases $ 2,504,626 $ 2,470,289 $ 2,428,750 $ 2,447,644 $ 2,171,456
Allowance for Loan and Lease Losses (29,520) (29,821) (29,757) (29,626) (29,623)
Investment Securities 533,165 540,788 521,229 500,204 472,479
Total Assets 3,386,720 3,317,791 3,299,300 3,262,411 2,907,969
Total Deposits 2,736,733 2,709,205 2,708,454 2,672,859 2,388,675
Short-Term Borrowings 115,952 81,991 110,525 116,627 94,315
Other Borrowings 160,238 160,238 117,548 117,548 126,548
Stockholders' Equity 359,539 351,424 347,525 341,109 283,877
Loans and Leases
Commercial real estate $ 1,486,274 $ 1,442,980 $ 1,398,435 $ 1,394,698 $ 1,214,467
Commercial, industrial and other 208,056 213,808 214,877 234,022 211,078
Leases 43,720 41,332 37,845 33,330 28,190
Residential mortgages 430,559 432,831 437,788 445,584 412,006
Consumer and Home Equity 336,017 339,338 339,805 340,010 305,715
Total loans $ 2,504,626 $ 2,470,289 $ 2,428,750 $ 2,447,644 $ 2,171,456
Deposits
Noninterest bearing $ 630,499 $ 600,652 $ 623,562 $ 600,868 $ 521,045
Savings and interest-bearing transaction accounts 1,816,084 1,812,467 1,770,299 1,739,943 1,566,421
Time deposits under $100,000 177,284 180,859 190,996 194,666 184,356
Time deposits $100,000 and over 112,866 115,227 123,597 137,382 116,853
Total deposits $ 2,736,733 $ 2,709,205 $ 2,708,454 $ 2,672,859 $ 2,388,675
SELECTED AVERAGE BALANCE SHEET DATA
Loans and Leases, net $ 2,486,990 $ 2,427,505 $ 2,435,658 $ 2,264,713 $ 2,136,254
Investment Securities 541,721 535,210 506,263 470,018 475,823
Interest-Earning Assets 3,061,555 3,023,256 2,987,408 2,765,229 2,642,662
Total Assets 3,312,709 3,291,865 3,243,997 3,001,360 2,868,011
Non Interest-Bearing Demand Deposits 618,944 638,016 620,499 542,976 502,214
Savings Deposits 385,007 382,062 374,141 369,703 357,709
Interest-Bearing Transaction Accounts 1,440,770 1,450,055 1,403,227 1,284,233 1,226,112
Time Deposits 293,225 301,640 322,371 311,230 302,159
Total Deposits 2,737,946 2,771,773 2,720,238 2,508,142 2,388,194
Short-Term Borrowings 56,602 36,928 47,702 48,652 49,641
Other Borrowings 145,580 117,353 117,559 125,268 133,449
Total Interest-Bearing Liabilities 2,321,184 2,288,039 2,265,000 2,139,086 2,069,069
Stockholders' Equity 356,951 351,067 343,482 304,950 282,796
Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
For the Quarter Ended
Mar 31, Dec 31, Sept 30, Jun 30, Mar 31,
(dollars in thousands) 2014 2013 2013 2013 2013
(unaudited)
AVERAGE ANNUALIZED YIELDS (taxable equivalent basis)
Assets:
Loans and leases 4.39% 4.45% 4.45% 4.49% 4.63%
Taxable investment securities and other 2.19% 2.12% 1.87% 1.82% 1.70%
Tax-exempt securities 3.80% 3.83% 3.74% 3.67% 3.71%
Federal funds sold and interest-bearing cash accounts 0.16% 0.24% 0.24% 0.22% 0.17%
Total interest-earning assets 3.99% 3.99% 4.00% 4.04% 4.11%
Liabilities:
Savings accounts 0.05% 0.05% 0.05% 0.06% 0.07%
Interest-bearing transaction accounts 0.23% 0.23% 0.27% 0.30% 0.32%
Time deposits 0.56% 0.60% 0.64% 0.70% 0.81%
Borrowings 1.63% 2.13% 2.06% 2.13% 2.12%
Total interest-bearing liabilities 0.36% 0.38% 0.42% 0.47% 0.51%
Net interest spread (taxable equivalent basis) 3.63% 3.61% 3.58% 3.58% 3.60%
Annualized Net Interest Margin (taxable equivalent basis) 3.72% 3.70% 3.68% 3.68% 3.71%
Annualized Cost of Deposits 0.19% 0.19% 0.22% 0.25% 0.28%
ASSET QUALITY DATA
Allowance for Loan and Lease Losses
Balance at beginning of period $ 29,821 $ 29,757 $ 29,626 $ 29,623 $ 28,931
Provision for loan losses 1,489 1,687 1,879 2,594 3,183
Net Charge-offs (1,790) (1,623) (1,748) (2,591) (2,491)
Balance at end of period $ 29,520 $ 29,821 $ 29,757 $ 29,626 $ 29,623
Net Loan Charge-offs (Recoveries)
Commercial real estate $ 1,613 $ 928 $ 749 $ 1,778 $ 1,350
Commercial, industrial and other (578) 100 367 450 147
Leases 39 (2) 21 42 24
Home equity and consumer 567 244 494 196 406
Real estate - mortgage 149 353 117 125 564
Net charge-offs $ 1,790 $ 1,623 $ 1,748 $ 2,591 $ 2,491
Nonperforming Assets
Commercial real estate $ 12,279 $ 8,528 $ 7,506 $ 9,209 $ 12,522
Commercial, industrial and other 246 88 184 797 1,203
Leases 143 -- -- -- --
Home equity and consumer 2,431 2,175 2,819 2,921 2,838
Real estate - mortgage 6,875 6,141 5,996 6,840 8,481
Total non-accruing loans 21,974 16,932 16,505 19,767 25,044
Property acquired through foreclosure or repossession 698 520 2,154 337 715
Total non-performing assets $ 22,672 $ 17,452 $ 18,659 $ 20,104 $ 25,759
Loans past due 90 days or more $ 451 $ 1,997 $ 2,484 $ 1,620 $ 1,752
Loans restructured and still accruing $ 6,086 $ 10,289 $ 13,241 $ 12,538 $ 9,012
Ratio of allowance for loan and lease losses to total loans 1.18% 1.21% 1.23% 1.21% 1.36%
Non-performing loans to total loans 0.88% 0.69% 0.68% 0.81% 1.15%
Non-performing assets to total assets 0.67% 0.53% 0.57% 0.62% 0.89%
Annualized net charge-offs to average loans 0.29% 0.27% 0.29% 0.46% 0.47%
Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(unaudited)
At or for the Quarter Ended,
Mar 31, Dec 31, Sept 30, Jun 30, Mar 31,
(dollars in thousands, except per share amounts) 2014 2013 2013 2013 2013
Calculation of tangible book value per common share
Total common stockholders' equity at end of period - GAAP $ 359,539 $ 351,424 $ 347,525 $ 341,109 $ 283,877
Less:
Goodwill 109,974 109,974 110,381 110,381 87,111
Other identifiable intangible assets, net 2,301 2,424 2,548 2,671 --
Total tangible common stockholders' equity at end of period - Non- GAAP $ 247,264 $ 239,026 $ 234,596 $ 228,057 $ 196,766
Shares outstanding at end of period 36,106 36,070 35,823 35,701 29,859
Book value per share - GAAP $ 9.96 $ 9.74 $ 9.70 $ 9.55 $ 9.51
Tangible book value per share - Non-GAAP $ 6.85 $ 6.63 $ 6.55 $ 6.39 $ 6.59
Calculation of tangible common equity to tangible assets
Total tangible common stockholders' equity at end of period - Non- GAAP $ 247,264 $ 239,026 $ 234,596 $ 228,057 $ 196,766
Total assets at end of period $ 3,386,720 $ 3,317,791 $ 3,299,300 $ 3,262,411 $ 2,907,969
Less:
Goodwill 109,974 109,974 110,381 110,381 87,111
Other identifiable intangible assets, net 2,301 2,424 2,548 2,671 --
Total tangible assets at end of period - Non-GAAP $ 3,274,445 $ 3,205,393 $ 3,186,371 $ 3,149,359 $ 2,820,858
Common equity to assets - GAAP 10.62% 10.59% 10.53% 10.46% 9.76%
Tangible common equity to tangible assets - Non-GAAP 7.55% 7.46% 7.36% 7.24% 6.98%
Calculation of return on average tangible common equity
Net income - GAAP $ 7,163 $ 7,341 $ 6,617 $ 5,903 $ 5,108
Total average common stockholders' equity 356,951 351,067 343,482 304,950 282,796
Less:
Average goodwill 109,974 110,376 110,381 94,783 87,111
Average other identifiable intangible assets, net 2,379 2,496 2,624 894 --
Total average tangible common stockholders' equity - Non - GAAP $ 244,598 $ 238,195 $ 230,477 $ 209,273 $ 195,685
Return on average common stockholders' equity - GAAP 8.14% 8.30% 7.64% 7.76% 7.33%
Return on average tangible common stockholders' equity - Non-GAAP 11.88% 12.23% 11.39% 11.31% 10.59%
Calculation of efficiency ratio
Total non-interest expense $ 19,742 $ 20,714 $ 20,407 $ 19,393 $ 18,227
Less:
Amortization of core deposit intangibles (123) (124) (123) (41) --
Other real estate owned and other repossessed asset (expense) income (15) (9) 2 2 (19)
Long-term debt prepayment fee -- (683) -- -- (526)
Merger related expenses -- (7) (744) (1,452) (631)
Provision for unfunded lending commitments, net (11) (63) (121) (6) 135
Non-interest expense, as adjusted $ 19,593 $ 19,828 $ 19,421 $ 17,896 $ 17,186
Net interest income $ 27,845 $ 27,973 $ 27,487 $ 25,146 $ 23,936
Total noninterest income 4,073 5,472 4,645 5,793 5,051
Total revenue 31,918 33,445 32,132 30,939 28,987
Plus: Tax-equivalent adjustment on municipal securities 255 248 248 237 232
Less:
Gains on debt extinguishment -- -- -- (1,197) --
Gains on sales investment securities (2) (333) -- (1) (505)
Total revenue, as adjusted $ 32,171 $ 33,360 $ 32,380 $ 29,978 $ 28,714
Efficiency ratio - Non-GAAP 60.90% 59.44% 59.98% 59.70% 59.85%

CONTACT: Thomas J. Shara President & CEO Joseph F. Hurley EVP & CFO 973-697-2000Source:Lakeland Bancorp, Inc.