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Lakeland Bancorp Reports First Quarter Results

OAK RIDGE, N.J., April 18, 2013 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (Nasdaq:LBAI) reported the following positive developments for the first quarter of 2013:

  • Net Income Available to Common Shareholders in the first quarter of 2013 was $5.1 million, or $0.17 per diluted share, as compared to the $4.4 million, or $0.16 per diluted share, reported for the same period last year. Included in the 2013 first quarter earnings were $631,000 in expenses related to the proposed merger with Somerset Hills Bancorp. Exclusive of these expenses, EPS for the first quarter of 2013 was $0.19 per common share, a 19% increase over the EPS for the same period last year.
  • The Company reported strong growth in both loans and non-interest bearing demand deposits in the first quarter of 2013. Loans totaling $2.17 billion at March 31, 2013 increased by $24.2 million from December 31, 2012, including a 4% increase in commercial loans secured by real estate. Non-interest bearing demand deposits at $521.0 million increased by $23.0 million, or 5%, from year-end 2012 and represented 22% of total deposits at March 31, 2013.
  • Non-performing assets at March 31, 2013 totaling $25.8 million were 10% lower than year-end 2012 and 40% below the total for the first quarter of 2012.
  • Net Interest Margin ("NIM") was 3.71%, a four basis point improvement from the fourth quarter of 2012, primarily due to prepayment fees on commercial loans. The yield on interest-earning assets decreased by three basis points from the fourth quarter of 2012, while the yield on average interest-bearing liabilities decreased by eight basis points, as the Company repaid $10.0 million in long-term debt at a rate of 2.90%.
  • The Company declared a quarterly cash dividend of $0.07 per common share. The cash dividend will be paid on May 15, 2013 to holders of record as of the close of business on April 30, 2013.

Thomas J. Shara, Lakeland Bancorp's President and CEO said, "In the first quarter of 2013, we showed continued growth in both loans and non-interest-bearing demand deposits, while maintaining a stable Net Interest Margin. As previously announced earlier this quarter, we entered into an agreement to acquire Somerset Hills Bancorp. The merger, which is expected to close in either the second or third quarter this year, will expand our footprint in the contiguous counties in which we operate."

Earnings

Net Interest Income

Net interest income for the first quarter of 2013 at $23.9 million equaled net interest income for the same period in 2012. Net interest margin at 3.71% compared to 3.76% reported in the first quarter of 2012. The Company's yield on interest-earning assets in the first quarter of 2013 was 4.11%, a decrease of 32 basis points from the same period in 2012. The cost of interest-bearing liabilities was 0.51%, a decrease of 32 basis points from the first quarter of 2012.

Noninterest income

Noninterest income, exclusive of gains on investment securities, totaled $4.5 million for the first quarter of 2013, an increase of $521,000 as compared to the same period in 2012. Gains on sales of securities totaled $505,000 and $32,000 in the first quarter of 2013 and 2012, respectively. Service charges on deposits at $2.5 million were 3% higher than the total for the first quarter of 2012. Commissions and fees at $1.2 million increased by $233,000, primarily due to increased investment commission income. Other income at $498,000 was $239,000 higher than the total for the same period last year. Within other income for the first quarter of 2013, the Company recorded $181,000 in income on loan swap transactions, and $152,000 in gains on sales of residential mortgage loans.

Noninterest expense

Noninterest expense for the first quarter of 2013, exclusive of the $526,000 prepayment fee on long-term debt and $631,000 in merger related expenses, was $17.1 million, compared to $16.3 million for the same period in 2012, an increase of $795,000, or 5%. Salary and benefit expense at $10.0 million increased by 5%, partially due to increased commission expenses. Net occupancy, furniture and equipment expenses at $3.4 million were $608,000 higher than last year, primarily due to expenses relating to the opening of both a new Training and Operations Center and branch office in the second half of 2012, as well as increased service contract expense.

Financial Condition

At March 31, 2013, total assets were $2.91 billion, which was equivalent to total assets at year-end 2012. Total loans at $2.17 billion were $24.2 million higher than at December 31, 2012, primarily due to a $43.1 million, or 4%, increase in commercial real estate loans. Total deposits at $2.39 billion increased by $17.7 million from year-end 2012, primarily due to an increase of $23.0 million in noninterest bearing demand deposits, which totaled $521.0 million at March 31, 2013.

Asset Quality

At March 31, 2013, non-performing assets totaled $25.8 million (0.89% of total assets), as compared to $28.5 million (0.98% of total assets) as of December 31, 2012. The Allowance for Loan and Lease Losses totaled $29.6 million at March 31, 2013, and represented 1.36% of total loans. During the first quarter of 2013, the Company had net charge-offs of $2.5 million (annualized 0.47% of average loans).

Capital

Stockholders' equity was $283.9 million and book value per common share was $9.51 as of March 31, 2013. As of March 31, 2013, the Company's leverage ratio was 8.77%. Tier I and total risk based capital ratios were 11.60% and 12.85%, 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, services and competition, failure to obtain required shareholder and regulatory approvals for the merger of Somerset Hills Bancorp into Lakeland Bancorp and for the merger of Somerset Hills Bank into Lakeland Bank, and failure to realize anticipated efficiencies and synergies if the mergers are consummated. 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, 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.

Lakeland Bancorp, the holding company for Lakeland Bank, has a current asset base of $2.9 billion and forty-seven (47) 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)
For the Quarter Ended
Mar 31, Dec 31, Sept 30, Jun 30, Mar 31,
(dollars in thousands, except per share data) 2013 2012 2012 2012 2012
INCOME STATEMENT (unaudited)
Net Interest Income $ 23,936 $ 24,164 $ 23,655 $ 23,748 $ 23,946
Provision for Loan and Lease Losses (3,183) (3,124) (3,350) (3,877) (4,556)
Noninterest Income (excluding investment securities gains) 4,546 4,661 4,640 4,530 4,025
Gains on investment securities 505 776 -- 241 32
Long-term debt prepayment fee (526) (782) -- -- --
Merger related expenses (631) -- -- -- --
Noninterest Expense, excluding long-term debt prepayment fees and merger related expenses (17,070) (17,178) (16,968) (16,470) (16,275)
Pretax Income 7,577 8,517 7,977 8,172 7,172
Tax Expense (2,469) (2,688) (2,488) (2,719) (2,201)
Net Income $ 5,108 $ 5,829 $ 5,489 $ 5,453 $ 4,971
Dividends on Preferred Stock and Discount Accretion -- -- -- -- (620)
Net Income Available to Common Stockholders $ 5,108 $ 5,829 $ 5,489 $ 5,453 $ 4,351
Basic Earnings Per Common Share (1) $ 0.17 $ 0.20 $ 0.20 $ 0.20 $ 0.16
Diluted Earnings Per Common Share (1) $ 0.17 $ 0.20 $ 0.20 $ 0.20 $ 0.16
Dividends Per Common Share (1) $ 0.07 $ 0.07 $ 0.06 $ 0.06 $ 0.057
Weighted Average Shares - Basic (1) 29,563 29,467 27,550 26,737 26,700
Weighted Average Shares - Diluted (1) 29,625 29,566 27,642 26,800 26,747
SELECTED OPERATING RATIOS
Annualized Return on Average Assets 0.72% 0.81% 0.77% 0.78% 0.71%
Annualized Return on Average Common Equity 7.33% 8.30% 8.48% 8.94% 8.23%
Annualized Return on Tangible Common Equity (3) 10.59% 12.06% 12.81% 13.87% 12.83%
Annualized Net Interest Margin 3.71% 3.67% 3.66% 3.70% 3.76%
Efficiency ratio (3) 59.85% 59.49% 58.91% 57.18% 57.71%
Common stockholders' equity to total assets 9.76% 9.62% 9.71% 8.65% 8.48%
Tangible common equity to tangible assets (3) 6.98% 6.84% 6.87% 5.78% 5.60%
Tier 1 risk-based ratio 11.60% 11.52% 12.24% 10.21% 9.92%
Total risk-based ratio 12.85% 12.77% 14.14% 12.59% 12.37%
Tier 1 leverage ratio 8.77% 8.62% 9.05% 7.62% 7.46%
Book value per common share (1) (2) $ 9.51 $ 9.45 $ 9.35 $ 9.15 $ 8.97
Tangible book value per common share (1) (2) (3) $ 6.59 $ 6.52 $ 6.41 $ 5.92 $ 5.74
(1) Adjusted for 5% stock dividend paid on April 16, 2012 to shareholders of record March 30, 2012.
(2) Excludes preferred stock
(3) See Supplemental Information - Non GAAP financial measures
Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended March 31,
2013 2012
(dollars in thousands, except per share amounts) (unaudited)
INTEREST INCOME
Loans and fees $24,407 $25,458
Federal funds sold and interest bearing deposits with banks 13 6
Taxable investment securities and other 1,719 2,340
Tax exempt investment securities 430 490
TOTAL INTEREST INCOME 26,569 28,294
INTEREST EXPENSE
Deposits 1,662 2,256
Federal funds purchased and securities sold under agreements to repurchase 9 28
Other borrowings 962 2,064
TOTAL INTEREST EXPENSE 2,633 4,348
NET INTEREST INCOME 23,936 23,946
Provision for loan and lease losses 3,183 4,556
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES 20,753 19,390
NONINTEREST INCOME
Service charges on deposit accounts 2,522 2,447
Commissions and fees 1,213 980
Gains on sales of investment securities 505 32
Income on bank owned life insurance 313 339
Other income 498 259
TOTAL NONINTEREST INCOME 5,051 4,057
NONINTEREST EXPENSE
Salaries and employee benefits 9,953 9,435
Net occupancy expense 1,974 1,688
Furniture and equipment 1,405 1,083
Stationery, supplies and postage 370 336
Marketing expense 288 470
FDIC insurance expense 513 555
Legal expense 242 399
Expenses on other real estate owned and other repossessed assets 19 38
Long-term debt prepayment fee 526 --
Merger related expenses 631 --
Other expenses 2,306 2,271
TOTAL NONINTEREST EXPENSE 18,227 16,275
INCOME BEFORE PROVISION FOR INCOME TAXES 7,577 7,172
Provision for income taxes 2,469 2,201
NET INCOME $5,108 $4,971
Dividends on Preferred Stock and Discount Accretion -- 620
Net Income Available to Common Stockholders $5,108 $4,351
EARNINGS PER COMMON SHARE
Basic $0.17 $0.16
Diluted $0.17 $0.16
DIVIDENDS PER COMMON SHARE $0.07 $0.057
Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
ASSETS 2013 2012
(dollars in thousands) (unaudited)
Cash and due from banks $88,744 $100,926
Federal funds sold and interest-bearing deposits due from banks 8,322 6,619
Total cash and cash equivalents 97,066 107,545
Investment securities available for sale, at fair value 370,234 393,710
Investment securities held to maturity; fair value of $98,827 in 2013 and $99,784 in 2012 96,864 96,925
Federal Home Loan Bank Stock, at cost 5,381 5,382
Loans:
Commercial, secured by real estate 1,214,467 1,171,409
Commercial, industrial and other 211,078 216,129
Leases 28,190 26,781
Residential mortgages 412,006 423,262
Consumer and home equity 305,715 309,626
Total loans 2,171,456 2,147,207
Deferred cost (713) (364)
Allowance for loan and lease losses (29,623) (28,931)
Net loans 2,141,120 2,117,912
Premises and equipment, net 32,722 33,280
Accrued interest receivable 7,743 7,643
Goodwill 87,111 87,111
Bank owned life insurance 46,456 46,143
Other assets 23,272 23,052
TOTAL ASSETS $2,907,969 $2,918,703
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest bearing $521,045 $498,066
Savings and interest-bearing transaction accounts 1,566,421 1,569,139
Time deposits under $100,000 184,356 188,278
Time deposits $100,000 and over 116,853 115,514
Total deposits 2,388,675 2,370,997
Federal funds purchased and securities sold under agreements to repurchase 94,315 117,289
Other borrowings 75,000 85,000
Subordinated debentures 51,548 51,548
Other liabilities 14,554 13,002
TOTAL LIABILITIES 2,624,092 2,637,836
STOCKHOLDERS' EQUITY
Common stock, no par value; authorized 40,000,000 shares; issued 29,941,967 shares at March 31, 2013 and December 31, 2012 302,660 303,794
Accumulated deficit (21,117) (24,145)
Treasury shares, at cost, 82,685 shares at March 31, 2013 and 216,077 shares at December 31, 2012 (1,029) (2,718)
Accumulated other comprehensive gain 3,363 3,936
TOTAL STOCKHOLDERS' EQUITY 283,877 280,867
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,907,969 $2,918,703
Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
For the Quarter Ended
Mar 31, Dec 31, Sept 30, Jun 30, Mar 31,
(dollars in thousands) 2013 2012 2012 2012 2012
(unaudited)
SELECTED BALANCE SHEET DATA AT PERIOD-END
Loans and Leases $ 2,171,456 $ 2,147,207 $ 2,064,913 $ 2,088,695 $ 2,073,527
Allowance for Loan and Lease Losses (29,623) (28,931) (28,669) (28,543) (28,700)
Investment Securities and Other 472,479 496,017 521,294 516,432 522,761
Total Assets 2,907,969 2,918,703 2,859,647 2,853,202 2,852,347
Total Deposits 2,388,675 2,370,997 2,341,108 2,277,400 2,288,128
Short-Term Borrowings 94,315 117,289 54,581 92,958 96,453
Other Borrowings 126,548 136,548 172,322 222,322 212,322
Stockholders' Equity 283,877 280,867 277,544 246,941 241,955
Loans and Leases
Commercial real estate $ 1,214,467 $ 1,171,409 $ 1,107,907 $ 1,116,726 $ 1,114,042
Commercial, industrial and other 211,078 216,129 201,308 216,406 219,270
Leases 28,190 26,781 26,548 25,603 26,214
Residential mortgages 412,006 423,262 419,685 421,338 412,027
Consumer and Home Equity 305,715 309,626 309,465 308,622 301,974
Total loans $ 2,171,456 $ 2,147,207 $ 2,064,913 $ 2,088,695 $ 2,073,527
Deposits
Noninterest bearing $ 521,045 $ 498,066 $ 485,256 $ 474,233 $ 476,349
Savings and interest-bearing transaction accounts 1,566,421 1,569,139 1,535,422 1,476,127 1,473,051
Time deposits under $100,000 184,356 188,278 196,939 201,817 206,766
Time deposits $100,000 and over 116,853 115,514 123,491 125,223 131,962
Total deposits $ 2,388,675 $ 2,370,997 $ 2,341,108 $ 2,277,400 $ 2,288,128
SELECTED AVERAGE BALANCE SHEET DATA
Loans and Leases, net $ 2,136,254 $ 2,103,204 $ 2,062,928 $ 2,077,813 $ 2,050,093
Investment Securities 475,823 499,455 501,862 502,931 520,039
Interest-Earning Assets 2,642,662 2,642,185 2,598,061 2,605,294 2,592,654
Total Assets 2,868,011 2,876,470 2,827,885 2,820,789 2,806,197
Non Interest-Bearing Demand Deposits 502,214 497,906 477,311 473,853 448,893
Savings Deposits 357,709 350,557 350,135 352,095 338,221
Interest-Bearing Transaction Accounts 1,226,112 1,236,294 1,169,953 1,141,263 1,137,069
Time Deposits 302,159 309,724 324,355 332,669 350,937
Total Deposits 2,388,194 2,394,481 2,321,754 2,299,880 2,275,120
Short-Term Borrowings 49,641 48,441 50,180 71,558 68,612
Other Borrowings 133,449 139,996 184,023 190,478 198,553
Total Interest-Bearing Liabilities 2,069,069 2,085,011 2,078,647 2,088,062 2,093,392
Stockholders' Equity 282,796 279,422 257,557 245,253 250,676
Common Stockholders' Equity 282,796 279,422 257,557 245,253 242,957
Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
For the Quarter Ended
Mar 31, Dec 31, Sept 30, Jun 30, Mar 31,
(dollars in thousands) 2013 2012 2012 2012 2012
(unaudited)
AVERAGE ANNUALIZED YIELDS (taxable equivalent basis)
Assets:
Loans and leases 4.63% 4.70% 4.81% 4.89% 4.99%
Taxable investment securities and other 1.70% 1.78% 1.96% 2.03% 2.09%
Tax-exempt securities 3.71% 3.86% 3.84% 4.09% 4.14%
Federal funds sold and interest-bearing cash accounts 0.17% 0.22% 0.20% 0.10% 0.11%
Total interest-earning assets 4.11% 4.14% 4.25% 4.35% 4.43%
Liabilities:
Savings accounts 0.07% 0.10% 0.10% 0.11% 0.11%
Interest-bearing transaction accounts 0.32% 0.36% 0.40% 0.44% 0.45%
Time deposits 0.81% 0.91% 0.94% 0.97% 1.02%
Borrowings 2.12% 2.43% 3.10% 3.13% 3.13%
Total interest-bearing liabilities 0.51% 0.59% 0.74% 0.81% 0.83%
Net interest spread (taxable equivalent basis) 3.60% 3.55% 3.51% 3.54% 3.60%
Annualized Net Interest Margin (taxable equivalent basis) 3.71% 3.67% 3.66% 3.70% 3.76%
Annualized Cost of Deposits 0.28% 0.32% 0.35% 0.37% 0.40%
ASSET QUALITY DATA
Allowance for Loan and Lease Losses
Balance at beginning of period $ 28,931 $ 28,669 $ 28,543 $ 28,700 $ 28,416
Provision for loan losses 3,183 3,124 3,350 3,877 4,556
Net Charge-offs (2,491) (2,862) (3,224) (4,034) (4,272)
Balance at end of period $ 29,623 $ 28,931 $ 28,669 $ 28,543 $ 28,700
Net Loan Charge-offs (Recoveries)
Commercial real estate $ 1,350 $ 1,945 $ 1,420 $ 2,938 $ 3,550
Commercial, industrial and other 147 35 258 258 (30)
Leases 24 264 291 150 (210)
Home equity and consumer 406 289 334 528 617
Real estate - mortgage 564 329 921 160 345
Net charge-offs $ 2,491 $ 2,862 $ 3,224 $ 4,034 $ 4,272
Nonperforming Assets
Commercial real estate $ 12,522 $ 14,542 $ 14,211 $ 18,843 $ 23,119
Commercial, industrial and other 1,203 1,476 1,533 1,650 5,611
Leases -- 32 294 536 621
Home equity and consumer 2,838 3,197 3,104 2,818 2,725
Real estate - mortgage 8,481 8,733 9,235 10,197 9,943
Total non-accruing loans 25,044 27,980 28,377 34,044 42,019
Property acquired through foreclosure or repossession 715 529 775 1,250 1,314
Total non-performing assets $ 25,759 $ 28,509 $ 29,152 $ 35,294 $ 43,333
Loans past due 90 days or more $ 1,752 $ 1,437 $ 1,828 $ 1,566 $ 2,343
Loans restructured and still accruing $ 9,012 $ 7,336 $ 10,937 $ 10,776 $ 8,744
Ratio of allowance for loan and lease losses to total loans 1.36% 1.35% 1.39% 1.37% 1.38%
Non-performing loans to total loans 1.15% 1.30% 1.37% 1.63% 2.03%
Non-performing assets to total assets 0.89% 0.98% 1.02% 1.24% 1.52%
Annualized net charge-offs to average loans 0.47% 0.54% 0.63% 0.78% 0.83%
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) 2013 2012 2012 2012 2012
Calculation of tangible book value per common share (unaudited)
Total common stockholders' equity at end of period - GAAP $ 283,877 $ 280,867 $ 277,544 $ 246,941 $ 241,955
Less:
Goodwill 87,111 87,111 87,111 87,111 87,111
Other identifiable intangible assets, net -- -- -- -- --
Total tangible common stockholders' equity at end of period - Non- GAAP $ 196,766 $ 193,756 $ 190,433 $ 159,830 $ 154,844
Shares outstanding at end of period (1) 29,859 29,726 29,691 26,993 26,963
Book value per share - GAAP (1) $ 9.51 $ 9.45 $ 9.35 $ 9.15 $ 8.97
Tangible book value per share - Non-GAAP (1) $ 6.59 $ 6.52 $ 6.41 $ 5.92 $ 5.74
Calculation of tangible common equity to tangible assets
Total tangible common stockholders' equity at end of period - Non- GAAP $ 196,766 $ 193,756 $ 190,433 $ 159,830 $ 154,844
Total assets at end of period $ 2,907,969 $ 2,918,703 $ 2,859,647 $ 2,853,202 $ 2,852,347
Less:
Goodwill 87,111 87,111 87,111 87,111 87,111
Other identifiable intangible assets, net -- -- -- -- --
Total tangible assets at end of period - Non-GAAP $ 2,820,858 $ 2,831,592 $ 2,772,536 $ 2,766,091 $ 2,765,236
Common equity to assets - GAAP 9.76% 9.62% 9.71% 8.65% 8.48%
Tangible common equity to tangible assets - Non-GAAP 6.98% 6.84% 6.87% 5.78% 5.60%
Calculation of return on average tangible common equity
Net income - GAAP $ 5,108 $ 5,829 $ 5,489 $ 5,453 $ 4,971
Total average common stockholders' equity 282,796 279,422 257,557 245,253 242,957
Less:
Average goodwill 87,111 87,111 87,111 87,111 87,111
Average other identifiable intangible assets, net -- -- -- -- --
Total average tangible common stockholders' equity - Non - GAAP $ 195,685 $ 192,311 $ 170,446 $ 158,142 $ 155,846
Return on average common stockholders' equity - GAAP 7.33% 8.30% 8.48% 8.94% 8.23%
Return on average tangible common stockholders' equity - Non-GAAP 10.59% 12.06% 12.81% 13.87% 12.83%
Calculation of efficiency ratio
Total non-interest expense $ 18,227 $ 17,960 $ 16,968 $ 16,470 $ 16,275
Less:
Other real estate owned and other repossessed asset (expense) income (19) (10) (13) (38) (38)
Long-term debt prepayment fee (526) (782) -- -- --
Merger related expenses (631) -- -- -- --
Provision for unfunded lending commitments, net 135 124 (150) (122) 56
Non-interest expense, as adjusted $ 17,186 $ 17,292 $ 16,805 $ 16,310 $ 16,293
Net interest income $ 23,936 $ 24,164 $ 23,655 $ 23,748 $ 23,946
Noninterest income 5,051 5,437 4,640 4,771 4,057
Total revenue 28,987 29,601 28,295 28,519 28,003
Plus: Tax-equivalent adjustment on municipal securities 232 242 230 244 264
Less: (gains) on investment securities (505) (776) -- (241) (32)
Total revenue, as adjusted $ 28,714 $ 29,067 $ 28,525 $ 28,522 $ 28,235
Efficiency ratio - Non-GAAP 59.85% 59.49% 58.91% 57.18% 57.71%
(1) Adjusted for 5% stock dividend payable on April 16, 2012 to shareholders of record March 30, 2012.

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