LAKELAND BANCORP INC - 10-Q Quarterly Report

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark one)

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2002

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _____________

Commission file number 33-27312

LAKELAND BANCORP, INC.
(Exact name of registrant as specified in its charter)

New Jersey	22-2953275

(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)


250 Oak Ridge Road, Oak Ridge, New Jersey	07438

(Address of principal executive offices)	(Zip Code)

(973) 697-2000

(Registrant’s telephone number, including area code)



(Former name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of October 31, 2002 there were 13,607,039 outstanding shares of Common Stock, no par value.

LAKELAND BANCORP, INC.

Form 10-Q Index

			PAGE


	Part I Financial Information

Item 1.	Financial Statements:

	Consolidated Balance Sheets - September 30, 2002 (unaudited) and December 31, 2001		1

	Consolidated Income Statements - Unaudited Three Months and nine Months Ended September 30, 2002 and 2001		2

	Consolidated Statements of Changes in Stockholders’ Equity - nine months ended September 30, 2002 (unaudited) and 12 months ended December 31, 2001		3

	Consolidated Statements of Cash Flows - Unaudited nine months ended September 30, 2002 and 2001		4

	Notes to Consolidated Financial Statements (unaudited)		5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		9

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		15

Item 4.	Controls and Procedures		15

	Part II Other Information

Item 1.	Legal Proceedings		15

Item 2.	Changes in Securities and Use of Proceeds		17

Item 3.	Defaults Upon Senior Securities		17

Item 4.	Submission of Matters to a Vote of Security Holders		17

Item 5.	Other Information		17

Item 6.	Exhibits and Reports on Form 8-K		17

		The Securities and Exchange Commission maintains a web site which contains reports, proxy and information statements and other information relating to registrants that file electronically at the address: http:/ / www.sec.gov.

Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS

			September 30, 2002 (unaudited)			December 31, 2001

			(dollars in thousands)
ASSETS
Cash and due from banks			$	57,380		$	48,615
Federal funds sold				7,000			0

		Total cash and cash equivalents		64,380			48,615
Investment securities available for sale				327,790			273,082
Investment securities held to maturity; fair value of $51,509 in 2002 and $72,101 in 2001				49,312			70,259
Loans				698,591			600,074
	Plus: deferred costs			2,297			1,885
	Less: allowance for loan losses			17,805			8,220

		Net loans		683,083			593,739
Premises and equipment - net				25,441			24,785
Accrued interest receivable				5,312			5,041
Other assets				28,643			28,817

		TOTAL ASSETS	$	1,183,961		$	1,044,338

LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits:
	Non-interest bearing		$	217,370		$	206,783
	Savings and interest bearing transaction accounts			558,578			470,563
	Time deposits under $100			181,397			184,011
	Time deposits $100 and over			81,388			50,753

		Total deposits		1,038,733			912,110
Securities sold under agreements to repurchase				19,001			19,920
Long-term debt				31,006			21,004
Other liabilities				5,404			5,737

		TOTAL LIABILITIES		1,094,144			958,771

Commitments and contingencies				—			—
Stockholders’ equity:
Common stock, no par value; authorized shares, 40,000,000 at September 30, 2002 and December 31, 2001; issued shares, 13,971,168 at September 30, 2002 and December 31, 2001; outstanding shares, 13,607,039 at September 30, 2002 and 13,679,345 at December 31, 2001				88,178			88,273
Retained Earnings (Accumulated Deficit)				1,353			(931	)
Treasury stock, at cost, 364,129 shares at September 30, 2002 and 291,823 shares at December 31, 2001				(4,692	)		(3,175	)
Accumulated other comprehensive income				4,978			1,400

		TOTAL STOCKHOLDERS’ EQUITY		89,817			85,567

	TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	1,183,961		$	1,044,338

See accompanying notes to consolidated financial statements

Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED INCOME STATEMENTS

			For the three months ended September 30,					For the nine months ended September 30,

			2002			2001		2002		2001
(In thousands, except per share data)			(unaudited)					(unaudited)

INTEREST INCOME
	Loans and fees		$	11,848		$	11,442	$	34,434	$	33,168
	Federal funds sold			117			227		261		641
	Taxable investment securities			3,948			4,010		12,052		11,832
	Tax exempt investment securities			585			517		1,711		1,597

		TOTAL INTEREST INCOME		16,498			16,196		48,458		47,238

INTEREST EXPENSE
	Deposits			4,003			5,298		11,764		16,389
	Short-term borrowings			76			85		221		670
	Long-term debt			411			290		1,182		557

		TOTAL INTEREST EXPENSE		4,490			5,673		13,167		17,616

NET INTEREST INCOME				12,008			10,523		35,291		29,622
Provision for loan losses				8,250			400		9,750		1,200

		NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		3,758			10,123		25,541		28,422
NONINTEREST INCOME
	Service charges on deposit accounts			1,492			1,303		4,376		3,945
	Gains on sales of leases			42			137		140		621
	Commissions and fees			440			423		1,433		1,020
	Gain on the sales of securities			812			1		875		35
	Other income			254			166		738		583

		TOTAL NONINTEREST INCOME		3,040			2,030		7,562		6,204

NONINTEREST EXPENSE
	Salaries and employee benefits			4,625			4,452		13,993		12,869
	Net occupancy expense			838			828		2,491		2,310
	Furniture and equipment			841			761		2,326		2,177
	Stationery, supplies and postage			303			376		948		1,247
	Other expenses			1,789			1,647		5,069		4,528

		TOTAL NONINTEREST EXPENSE		8,396			8,064		24,827		23,131

Income (loss) before provision for income taxes				(1,598	)		4,089		8,276		11,495
Provision (benefit) for income taxes				(887	)		1,258		2,235		3,558

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