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 March 31, 2003
OR
| ¨ |
|
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 x No ¨
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 March 31, 2003 there were 14,207,139 outstanding shares of Common Stock, no par value.
LAKELAND BANCORP, INC.
| PAGE | ||||
| Part I Financial Information |
||||
| Item 1. |
Financial Statements: |
|||
| Consolidated Balance Sheets—March 31, 2003 (unaudited) and December 31, 2002 |
1 | |||
| Consolidated Income Statements—Unaudited Three Months Ended March 31, 2003 and 2002 |
2 | |||
| 3 | ||||
| Consolidated Statements of Cash Flows—Unaudited Three Months Ended March 31, 2003 and 2002 |
4 | |||
| 5 | ||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
10 | ||
| Item 3. |
16 | |||
| Item 4. |
16 | |||
| Part II Other Information |
||||
| Item 1. |
17 | |||
| Item 2. |
18 | |||
| Item 3. |
18 | |||
| Item 4. |
18 | |||
| Item 5. |
18 | |||
| Item 6. |
18 | |||
| 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
| ASSETS |
March 31, 2003 (unaudited) |
December 31, 2002 |
||||||
| (dollars in thousands) |
||||||||
| Cash and due from banks |
$ |
42,203 |
|
$ |
32,775 |
| ||
| Federal funds sold and interest-bearing deposits due from banks |
|
31,035 |
|
|
2,690 |
| ||
| Total cash and cash equivalents |
|
73,238 |
|
|
35,465 |
| ||
| Investment securities available for sale |
|
372,290 |
|
|
361,760 |
| ||
| Investment securities held to maturity; fair value of $49,641 in 2003 and $48,436 in 2002 |
|
47,536 |
|
|
46,083 |
| ||
| Loans |
|
726,128 |
|
|
718,676 |
| ||
| Plus: deferred costs |
|
384 |
|
|
982 |
| ||
| Less: allowance for loan and lease losses |
|
18,629 |
|
|
17,940 |
| ||
| Net loans |
|
707,883 |
|
|
701,718 |
| ||
| Premises and equipment—net |
|
24,867 |
|
|
25,167 |
| ||
| Accrued interest receivable |
|
5,467 |
|
|
5,495 |
| ||
| Other assets |
|
30,463 |
|
|
31,417 |
| ||
| TOTAL ASSETS |
$ |
1,261,744 |
|
$ |
1,207,105 |
| ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| LIABILITIES: |
||||||||
| Deposits: |
||||||||
| Non-interest bearing |
$ |
216,479 |
|
$ |
214,110 |
| ||
| Savings and interest bearing transaction accounts |
|
650,070 |
|
|
593,637 |
| ||
| Time deposits under $100 thousand |
|
181,313 |
|
|
179,423 |
| ||
| Time deposits $100 thousand and over |
|
70,229 |
|
|
71,922 |
| ||
| Total deposits |
|
1,118,091 |
|
|
1,059,092 |
| ||
| Federal funds purchased and securities sold under agreements to repurchase |
|
13,328 |
|
|
19,974 |
| ||
| Long-term debt |
|
31,000 |
|
|
31,000 |
| ||
| Other liabilities |
|
6,856 |
|
|
6,272 |
| ||
| TOTAL LIABILITIES |
|
1,169,275 |
|
|
1,116,338 |
| ||
| Commitments and contingencies |
|
— |
|
|
— |
| ||
| Stockholders’ equity: |
||||||||
| Common stock, no par value; authorized shares, 40,000,000 at March 31, 2003 and December 31, 2002; issued shares, 14,671,097 at March 31, 2003 and December 31, 2002; outstanding shares, 14,207,139 at March 31, 2003 and 14,227,079 at December 31, 2002 |
|
101,525 |
|
|
101,664 |
| ||
| Retained Earnings (Accumulated Deficit) |
|
(7,245 |
) |
|
(9,436 |
) | ||
| Treasury stock, at cost, 463,958 at March 31, 2003 and 444,018 at December 31, 2002 |
|
(6,408 |
) |
|
(5,881 |
) | ||
| Accumulated other comprehensive income |
|
4,597 |
|
|
4,420 |
| ||
| TOTAL STOCKHOLDERS’ EQUITY |
|
92,469 |
|
|
90,767 |
| ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
1,261,744 |
|
$ |
1,207,105 |
| ||
See accompanying notes to consolidated financial statements
1
Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED INCOME STATEMENTS
| For the three months ended March 31, | ||||||
| 2003 |
2002 | |||||
| (unaudited) | ||||||
| (In thousands, except per share data) | ||||||
| INTEREST INCOME |
||||||
| Loans and fees |
$ |
11,853 |
$ |
10,957 | ||
| Federal funds sold |
|
68 |
|
87 | ||
| Taxable investment securities |
|
3,632 |
|
3,980 | ||
| Tax exempt investment securities |
|
658 |
|
560 | ||
| TOTAL INTEREST INCOME |
|
16,211 |
|
15,584 | ||
| INTEREST EXPENSE |
||||||
| Deposits |
|
3,436 |
|
3,951 | ||
| Short-term borrowings |
|
63 |
|
75 | ||
| Long-term debt |
|
402 |
|
363 | ||
| TOTAL INTEREST EXPENSE |
|
3,901 |
|
4,389 | ||
| NET INTEREST INCOME |
|
12,310 |
|
11,195 | ||
| Provision for loan and lease losses |
|
750 |
|
750 | ||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES |
|
11,560 |
|
10,445 | ||
| NONINTEREST INCOME |
||||||
| Service charges on deposit accounts |
|
1,511 |
|
1,413 | ||
| Commissions and fees |
|
539 |
|
456 | ||
| Gain on the sales of securities |
|
265 |
|
74 | ||
| Other income |
|
264 |
|
282 | ||
| TOTAL NONINTEREST INCOME |
|
2,579 |
|
2,225 | ||
| NONINTEREST EXPENSE |
||||||
| Salaries and employee benefits |
|
4,959 |
|
4,654 | ||
| Net occupancy expense |
|
925 |
|
789 | ||
| Furniture and equipment |
|
814 |
|
695 | ||
| Stationery, supplies and postage |
|
330 |
|
309 | ||
| Other expenses |
|
1,939 |
|
1,527 | ||
| TOTAL NONINTEREST EXPENSE |
|
8,967 |
|
7,974 | ||
| Income before provision for income taxes |
|
5,172 |
|
4,696 | ||
| Provision for income taxes |
|
1,629 |
|
1,455 | ||
| NET INCOME |
$ |
3,543 |
$ |
3,241 | ||
| EARNINGS PER COMMON SHARE |
||||||
| Basic |
$ |
0.25 |
$ |
0.23 | ||
| Diluted |
$ |
0.25 |
$ |
0.22 | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| For the three months ended March 31, |
||||||||
| 2003 |
2002 |
|||||||
| (unaudited) |
||||||||
| (in thousands) |
||||||||
| NET INCOME |
$ |
3,543 |
|
$ |
3,241 |
| ||
| OTHER COMPREHENSIVE INCOME NET OF TAX: |
||||||||
| Unrealized securities gains (losses) arising during period |
|
(1 |
) |
|
1,844 |
| ||
| Less: reclassification for gains included in Net Income |
|
(178 |
) |
|
(43 |
) | ||
| Other Comprehensive Income |
|
177 |
|
|
1,887 |
| ||
| TOTAL COMPREHENSIVE INCOME |
$ |
3,720 |
|
$ |
5,128 |
| ||
| See accompanying notes to consolidated financial statements |
2
Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
| Common stock |
Retained earnings |
|||||||||