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, 2004
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 ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12(b)-2 of the Exchange Act).
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, 2004 there were 15,976,148 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 - March 31, 2004 (unaudited) and December 31, 2003 |
1 | |||
| Consolidated Income Statements - Unaudited Three Months Ended March 31, 2004 and 2003 |
2 | |||
| 3 | ||||
| Consolidated Statements of Cash Flows - Unaudited Three Months Ended March 31, 2004 and 2003 |
4 | |||
| 5 | ||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
10 | ||
| Item 3. |
18 | |||
| Item 4. |
18 | |||
| Part II Other Information | ||||
| Item 1. |
19 | |||
| Item 2. |
Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities |
19 | ||
| Item 3. |
19 | |||
| Item 4. |
20 | |||
| Item 5. |
20 | |||
| Item 6. |
20 | |||
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
| March 31, 2004 (unaudited) |
December 31, 2003 |
|||||||
| (dollars in thousands) | ||||||||
| ASSETS |
||||||||
| Cash |
$ | 45,499 | $ | 42,760 | ||||
| Interest-bearing deposits due from banks |
9,618 | 3,324 | ||||||
| Total cash and cash equivalents |
55,117 | 46,084 | ||||||
| Investment securities available for sale |
551,195 | 557,402 | ||||||
| Investment securities held to maturity; fair value of $40,643 in 2004 and $48,650 in 2003 |
39,743 | 43,009 | ||||||
| Loans, net of deferred fees |
860,675 | 851,536 | ||||||
| Less: allowance for loan and lease losses |
17,198 | 16,899 | ||||||
| Net loans |
843,477 | 834,637 | ||||||
| Premises and equipment - net |
27,304 | 27,510 | ||||||
| Accrued interest receivable |
6,528 | 6,391 | ||||||
| Goodwill and other identifiable intangible assets |
28,383 | 27,609 | ||||||
| Bank owned life insurance |
27,854 | 27,575 | ||||||
| Other assets |
13,948 | 15,073 | ||||||
| TOTAL ASSETS |
$ | 1,593,549 | $ | 1,585,290 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| LIABILITIES: |
||||||||
| Deposits: |
||||||||
| Noninterest bearing |
$ | 253,081 | $ | 242,710 | ||||
| Savings and interest-bearing transaction accounts |
807,683 | 795,485 | ||||||
| Time deposits under $100 thousand |
206,752 | 209,216 | ||||||
| Time deposits $100 thousand and over |
76,129 | 78,271 | ||||||
| Total deposits |
1,343,645 | 1,325,682 | ||||||
| Federal funds purchased and securities sold under agreements to repurchase |
32,286 | 51,423 | ||||||
| Long-term debt |
34,500 | 34,500 | ||||||
| Subordinated debentures |
56,703 | — | ||||||
| Other liabilities |
8,723 | 7,734 | ||||||
| Guaranteed preferred beneficial interests in Company’s subordinated debentures |
— | 55,000 | ||||||
| TOTAL LIABILITIES |
1,475,857 | 1,474,339 | ||||||
| Commitments and contingencies |
||||||||
| Stockholders’ equity: |
||||||||
| Common stock, no par value; authorized shares, 40,000,000; issued shares, 16,483,551 at March 31, 2004 and December 31, 2003; outstanding shares, 15,976,148 at March 31, 2004 and 15,948,526 at December 31, 2003 |
131,093 | 131,116 | ||||||
| Accumulated Deficit |
(11,007 | ) | (12,980 | ) | ||||
| Treasury stock, at cost, 507,403 shares in 2004 and 535,025 shares in 2003 |
(7,142 | ) | (7,283 | ) | ||||
| Accumulated other comprehensive income |
4,748 | 98 | ||||||
| TOTAL STOCKHOLDERS’ EQUITY |
117,692 | 110,951 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | 1,593,549 | $ | 1,585,290 | ||||
See accompanying notes to consolidated financial statements
1
Lakeland Bancorp, Inc. and Subsidiaries
UNAUDITED CONSOLIDATED INCOME STATEMENTS
| For the three months ended March 31, | ||||||
| 2004 |
2003 | |||||
| (In thousands, except per share data) | ||||||
| INTEREST INCOME |
||||||
| Loans and fees |
$ | 12,669 | $ | 11,853 | ||
| Federal funds sold and interest-bearing deposits with banks |
10 | 68 | ||||
| Taxable investment securities |
5,013 | 3,632 | ||||
| Tax-exempt investment securities |
764 | 658 | ||||
| TOTAL INTEREST INCOME |
18,456 | 16,211 | ||||
| INTEREST EXPENSE |
||||||
| Deposits |
3,387 | 3,436 | ||||
| Federal funds purchased and securities sold under agreements to repurchase |
111 | 63 | ||||
| Long-term debt |
1,400 | 402 | ||||
| TOTAL INTEREST EXPENSE |
4,898 | 3,901 | ||||
| NET INTEREST INCOME |
13,558 | 12,310 | ||||
| Provision for loan and lease losses |
875 | 750 | ||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES |
12,683 | 11,560 | ||||
| NONINTEREST INCOME |
||||||
| Service charges on deposit accounts |
1,864 | 1,511 | ||||
| Commissions and fees |
629 | 539 | ||||
| Gains on the sales of investment securities |
3 | 265 | ||||
| Income on bank owned life insurance |
279 | 176 | ||||
| Other income |
101 | 88 | ||||
| TOTAL NONINTEREST INCOME |
2,876 | 2,579 | ||||
| NONINTEREST EXPENSE |
||||||
| Salaries and employee benefits |
5,547 | 4,959 | ||||
| Net occupancy expense |
1,021 | 925 | ||||
| Furniture and equipment |
845 | 814 | ||||
| Stationery, supplies and postage |
348 | 330 | ||||
| Legal fees |
484 | 253 | ||||
| Marketing expense |
315 | 196 | ||||
| Other expenses |
1,751 | 1,490 | ||||
| TOTAL NONINTEREST EXPENSE |
10,311 | 8,967 | ||||
| Income before provision for income taxes |
5,248 | 5,172 | ||||
| Provision for income taxes |
1,679 | 1,629 | ||||
| NET INCOME |
$ | 3,569 | $ | 3,543 | ||
| EARNINGS PER SHARE |
||||||
| Basic |
$ | 0.22 | $ | 0.24 | ||
| Diluted |
$ | 0.22 | $ | 0.23 | ||
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| For the three months ended March 31, |
||||||||
| 2004 |
2003 |
|||||||
| (in thousands) | ||||||||
| NET INCOME |
$ | 3,569 | $ | 3,543 | ||||
| OTHER COMPREHENSIVE INCOME NET OF TAX: |
||||||||
| Unrealized securities gains (losses) arising during period |
4,648 | (1 | ) | |||||
| Less: reclassification for gains included in net income |
(2 | ) | (178 | ) | ||||
| Other Comprehensive Income |
4,650 | 177 | ||||||
| TOTAL COMPREHENSIVE INCOME |
$ | 8,219 | $ | 3,720 | ||||
See accompanying notes to consolidated financial statements
2
Lakeland Bancorp, Inc. and Subsidiaries
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
| Common stock |
Accumulated Deficit |
Treasury |
Accumulated |
Total |
||||||||||||||||
| Number of Shares |
Amount |
|||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| BALANCE DECEMBER 31, 2002 |
14,671,097 | $ | 101,664 | ($9,436 | ) | ($5,881 | ) | $ | 4,420 | $ | 90,767 | |||||||||
| Net Income 2003 |
— | — | 15,107 | — | — | 15,107 | ||||||||||||||
| Other comprehensive income, net of tax |
— | — | — | — | (4,322 | ) | (4,322 | ) | ||||||||||||
| Exercise of stock options |
— | (210 | ) | — | 680 | — | 470 | |||||||||||||
| Shares issued for the purchase of CSB Financial Corp |
1,028,492 | 16,742 | — | — | — | 16,742 | ||||||||||||||
| Stock dividend |
783,962 | 12,920 | (12,920 | ) | — | — | — | |||||||||||||
| Cash dividends |
— | — | (5,731 | ) | — | — | (5,731 | ) | ||||||||||||
| Purchase of treasury stock |
— | — | — | (2,082 | ) | — | (2,082 | ) | ||||||||||||
| BALANCE DECEMBER 31, 2003 |
16,483,551 | 131,116 | (12,980 | ) | (7,283 | ) | 98 | 110,951 | ||||||||||||
| Net Income, first quarter 2004 |
— | — | 3,569 | — | — | 3,569 | ||||||||||||||
| Other comprehensive income, net of tax |
— | — | — | — | 4,650 | 4,650 | ||||||||||||||
| Exercise of stock options |
— | (23 | ) | — | 322 | — | 299 | |||||||||||||
| Cash dividends |
— | — | (1,596 | ) | — | — | (1,596 | ) | ||||||||||||
| Purchase of treasury stock |
— | — | — | (181 | ) | — | (181 | ) | ||||||||||||
| BALANCE MARCH 31, 2004 (unaudited) |
16,483,551 | |||||||||||||||||||