Lakeland Bank continues to simplify banking with the successful integration of six new branches and the introduction of Lakeland Mortgage. The conversion of Somerset Hills Bank was completed in August, expanding the Bank’s footprint into Somerset and Union counties while increasing our existing market presence in Morris County. Our expanded mortgage platform now provides additional lending opportunities.
We are pleased to announce the following positive financial developments in the third quarter:
• Net Income Available to Common Shareholders in the third quarter of 2013 was $6.6 million,
or $0.18 per diluted share, compared to $5.5 million, or $0.20 per diluted share, for the same period
last year. Third quarter results included $744,000 in merger expenses related to the Somerset Hills acquisition. Excluding merger expenses, Net Income Available to Common Shareholders was
$7.1 million, or $0.20 per diluted share.
• Asset quality continues to improve. Non-performing assets at September 30, 2013, totaling
$18.7 million were 7% lower than $20.1 million reported at June 30, 2013, and 36% lower
than $29.2 million at September 30, 2012. In the third quarter of 2013, the provision for loan
and lease losses totaled $1.9 million, a decrease of $1.5 million, or 44%, from $3.4 million reported
in the third quarter of 2012.
• Net Interest Margin (NIM) continues to remain stable. In the third quarter of 2013, NIM was 3.68%,
which equaled the NIM reported in the second quarter of 2013 and compared favorably to 3.66% in the
third quarter of 2012.
• The Board of Directors has declared a 7% increase in the quarterly cash dividend. This cash dividend
of $0.075 per common share will be paid on November 15, 2013, to shareholders of record as of
the close of business November 5, 2013. This is the fourth consecutive year of higher cash dividends
and/or stock dividends.
Thank you to our team of shareholders, customers, directors and colleagues for their continued support.