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Lakeland Bancorp Inc. Reports Operating Results (10-Q)

November 08, 2010 | About:
10qk

10qk

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Lakeland Bancorp Inc. (LBAI) filed Quarterly Report for the period ended 2010-09-30.

Lakeland Bancorp Inc. has a market cap of $249.5 million; its shares were traded at around $10.38 with a P/E ratio of 20.76 and P/S ratio of 1.63. The dividend yield of Lakeland Bancorp Inc. stocks is 2.31%.

Highlight of Business Operations:

Net income for the third quarter of 2010 was $4.9 million, compared to net income of $2.0 million for the same period in 2009. Net income available to common shareholders was $3.3 million compared to net income of $1.1 million for the same period last year. Diluted earnings per share was $0.14 for the third quarter of 2010, compared to diluted earnings per share of $0.05 per share for the same period last year. As previously reported, the Company repaid $20.0 million of the outstanding $59.0 million in preferred stock to the U.S. Department of the Treasury under the Capital Purchase Program in the third quarter of 2010. In doing so, a non-cash charge of $898,000 was recorded, reflecting the acceleration of the preferred stock discount accretion.

of 2010, a decrease of $3.6 million, or 37%. The cost of average interest-bearing liabilities decreased from 1.84% in 2009 to 1.18% in 2010. The decrease in yield was due to the declining rate environment along with a change in the mix of interest-bearing liabilities. Average rates paid on interest-bearing liabilities declined in all categories. Savings and interest-bearing transaction accounts as a percent of interest-bearing liabilities increased from 57% in the third quarter of 2009 to 66% in the third quarter of 2010. Time deposits as a percent of interest-bearing liabilities declined from 28% in the third quarter of 2009 to 21% in the third quarter of 2010 as customers preferred to keep their deposits in short-term transaction accounts in the current low rate environment. Average borrowings decreased from $327.6 million in 2009 to $282.4 million in 2010, as deposit growth outpaced loan and lease growth and because of prepayments of long-term debt since the third quarter of 2009. Savings and interest-bearing deposits typically pay lower rates than time deposits and long-term borrowings.

During the third quarter of 2010, the Company charged off loans of $5.9 million and recovered $497,000 in previously charged off loans and leases compared to $5.6 million and $667,000, respectively, during the same period in 2009. For more information regarding the determination of the provision, see Risk Elements below.

Noninterest income increased $2.5 million, or 71%, to $6.1 million in the third quarter of 2010 compared to the third quarter of 2009. The increase in noninterest income was due primarily to gains on sales of investments which totaled $1.7 million in the third quarter of 2010 compared to no gains or losses in the third quarter of 2009 and gains on leasing related assets, which were $312,000 in the third quarter of 2010 compared to losses of $709,000 in the third quarter of 2009. In the third quarter of 2010, our gains on leasing related assets includes gains from payoffs in excess of the lower of cost or market valuation and sales of held for sale leases, and gains on sales of other repossessed assets. In the third quarter of 2009, Lakeland recorded $792,000 in losses on sales of leases held for sale. Commissions and fees totaled $965,000 in the third quarter of 2010 and was $80,000 or 8% lower than the same period last year due primarily to reduced loan activity. Other income at $77,000 was $49,000 lower than the same period last year due primarily to losses on fixed assets relating to the implementation of the Companys new logo and brand identity.

Noninterest expense totaling $19.0 million increased $1.9 million in the third quarter of 2010 from the third quarter of 2009. Included in noninterest expense in the third quarter of 2010 was a $1.8 million fee on the prepayment of $30.0 million in long-term debt, at an average rate of 5.02%. Salary and benefit expense increased by $528,000 or 6% to $9.1 million due primarily to normal salary increases and increases in hospital and medical benefit expenses. Stationary, supplies and postage at $360,000 in the third quarter decreased $34,000 from the third quarter of 2009 due primarily to improved management of expenses and a reduction in postage as a result of the implementation of electronic statement delivery. Marketing expense at $511,000 decreased $156,000, or 23%, due primarily to the timing of media expenses. Collection expense at $188,000 and other real estate and repossessed asset expense at $119,000 decreased $217,000, or 54%, and $14,000, or 11%, respectively, due to decreased leasing related expenses. Legal expense at $411,000 increased $58,000 in the third quarter of 2010 compared to the same period in 2009 as a result of increased workout expenses related to non-

Net income for the first nine months of 2010 was $14.2 million, compared to net loss of ($7.5) million for the same period in 2009. Net income available to common shareholders was $10.8 million in the first nine months of 2010 compared to losses of ($9.8) million in the first nine months of 2009. Diluted earnings per share was $0.45 for the first nine months of 2010, compared to a loss per share of ($0.42) in the first nine months of 2009. The increase in net income results from the decrease in the provision for loan and lease losses from $45.2 million in the first nine months of 2009 to $14.7 million in the first nine months of 2010.

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