EXHIBIT 99.1

Lakeland Bancorp Reports 19% Increase in Second Quarter Earnings

OAK RIDGE, N.J., July 17, 2012 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (Nasdaq:LBAI) reported Net Income Available to Common Shareholders in the second quarter of 2012 of $5.5 million or $0.20 per diluted share compared to $4.6 million, or $0.17 per diluted share for the same period last year. The annualized Return on Average Assets in the second quarter of 2012 was 0.78%, while the annualized Return on Average Common Equity was 8.94%. Net Income Available to Common Shareholders for the first six months of 2012 was $9.8 million or $0.36 per diluted share, as compared to $8.0 million, or $0.30 per diluted share for the same period last year.

The Company declared a quarterly cash dividend of $0.06 per common share, payable on August 15, 2012 to holders of record as of the close of business on July 31, 2012.

Thomas J. Shara, Lakeland Bancorp's President and CEO said, "Our second quarter 2012 earnings growth of 19% was driven by continued loan growth, a reduced provision for loan and lease losses, tight expense control, and the elimination of costs associated with our participation with the Capital Purchase Program. The reduced provision reflects continued improvement in asset quality, as non-performing assets at June 30, 2012 were 19% lower than the total reported at March 31, 2012."

Earnings

Net Interest Income

Net interest income for the second quarter of 2012 was $23.7 million, as compared to $24.4 million for the same period in 2011. The annualized Net Interest Margin for the second quarter of 2012 was 3.70%, which compared to 3.90% reported in the second quarter of 2011. The decrease in net interest margin in the second quarter as compared to the same period last year reflects a greater reduction in yields on interest-earning assets as compared to interest-bearing liabilities. The annualized yield on interest-earning assets declined to 4.35% in the second quarter of 2012 compared to 4.71% for the same period last year. The annualized cost of interest-bearing liabilities decreased from 0.99% in the second quarter of 2011 to 0.81% in the second quarter of 2012.

Year-to-date, net interest income at $47.7 million compared to the $49.0 million reported for the first six months of 2011. Annualized Net Interest Margin for the first six months of 2012 at 3.73% compared to 3.90% for the same period last year. The Company's annualized yield on earning assets decreased from 4.72% for the first six months of 2011, to 4.39% for the same period this year. The Company's cost of interest bearing liabilities decreased from 1.00% for the first six months of 2011 to 0.82% for the first six months of this year.

Noninterest Income

Noninterest income, exclusive of gains on sales of investment securities, totaled $4.5 million for the second quarter of 2012, as compared to $4.3 million for the same period last year, an increase of 6%. In the second quarter of 2012, the Company recorded $241,000 on gains on sales of investment securities, as compared to $444,000 on gains for the same period last year. Service charges on deposit accounts totaling $2.7 million increased by 5% primarily due to the implementation of a new demand deposit pricing structure in the second quarter of 2012. Commissions and fees at $1.3 million increased by $219,000, or 21%, primarily due to increased loan fees and investment commission income.

Noninterest income, exclusive of gains on sales of investment securities, totaled $8.6 million for the first six months of 2012, which was $59,000 higher than last year's six month total. Gains on investment securities totaled $273,000 in 2012 as compared to $444,000 in 2011. Service charges on deposit accounts at $5.2 million were up 2%, while commissions and fees at $2.2 million increased by 20%, primarily due to increased loan fees and investment commission income. Gains on leasing related assets at $303,000 decreased by $390,000 in 2012, reflecting the reduction in the leasing portfolio.

Noninterest Expense  

Noninterest expense for the second quarter of 2012 was $16.5 million, as compared to $16.7 million for the same period last year, a decrease of 2%. Salary and benefit expense at $9.6 million increased by 4%.  Amortization of core deposit intangibles were fully amortized in 2011 resulting in a decrease in expenses of $266,000 in the second quarter this year, while expenses on other real estate owned and other repossessed assets declined $162,000 as compared to the same period last year. The efficiency ratio for the second quarter of 2012 was 57.2%.

For the first six months of 2012, noninterest expense was $32.7 million, compared to $33.8 million in 2011, a 3% decrease. Salary and benefit costs at $19.0 million increased 4%, while occupancy, furniture and equipment expenses at $5.5 million decreased by 6%. FDIC insurance expense at $1.1 million decreased by $441,000, or 29%, resulting from a change in FDIC assessment rate methodology. Amortization of core deposit intangibles were fully amortized in 2011, which resulted in a $531,000 reduction in expenses in 2012, while expenses on other real estate owned and other repossessed assets declined by $396,000 compared to the first six months of 2011.

Financial Condition

At June 30, 2012, total assets were $2.85 billion, an increase of $27.3 million from December 31, 2011. Total loans were $2.09 billion, an increase of $47.4 million from $2.04 billion at year-end 2011, primarily due to increases in commercial loans and residential mortgage loans of $31.1 million and $15.1 million, respectively. Total deposits were $2.28 billion, an increase of $27.7 million from December 31, 2011. Noninterest bearing demand deposits at $474.2 million have increased by $24.7 million or 5% from year-end 2011. Savings and interest-bearing transaction accounts at $1.48 billion have increased by $35.6 million, while time deposits at $327.0 million, have decreased by $32.5 million.

Asset Quality

At June 30, 2012, non-performing assets totaled $35.3 million (1.24% of total assets) compared to $43.3 million (1.52% of total assets) at March 31, 2012, a decline of 19%. In the second quarter of 2012, the Company sold a group of primarily non-performing loans with a net book value of $4.5 million and recorded a charge-off of $1.9 million. The Allowance for Loan and Lease Losses totaled $28.5 million at June 30, 2012 and represented 1.37% of total loans.  In the second quarter of 2012, the Company had net charge offs totaling $4.0 million, or 0.78% of average loans. For the first six months of 2012, the Company had net charge-offs of $8.3 million, as compared to $9.4 million for the same period last year.

Capital

At June 30, 2012, stockholders' equity was $246.9 million and book value per common share was $9.15. As of June 30, 2012, the Company's leverage ratio was 7.62%. Tier I and total risk based capital ratios were 10.21% and 12.59%, respectively. These regulatory capital ratios exceed those necessary to be considered a well-capitalized institution under Federal guidelines.  

Forward-Looking Statements

The information disclosed in this document includes various forward-looking statements (with respect to corporate objectives, trends, and other financial and business matters) that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipates", "projects", "intends", "estimates", "expects", "believes", "plans", "may", "will", "should", "could", and other similar expressions are intended to identify such forward-looking statements. Lakeland cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. The following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: changes in the financial services industry and the U.S. and global capital markets, changes in economic conditions nationally, regionally and in the Company's markets, the nature and timing of actions of the Federal Reserve Board and other regulators, the nature and timing of legislation affecting the financial services industry, government intervention in the U.S. financial system, changes in levels of market interest rates, pricing pressures on loan and deposit products, credit risks of the Company's lending and leasing activities, customers' acceptance of the Company's products and services and competition. Any statements made by Lakeland that are not historical facts should be considered to be forward-looking statements. Lakeland is not obligated to update and does not undertake to update any of its forward-looking statements made herein.

EXPLANATION OF NON-GAAP FINANCIAL MEASURES

Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP").  The Company's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors.  These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

The Company also uses an efficiency ratio that is a non-GAAP financial measure. The ratio that the Company uses excludes amortization of core deposit intangibles, expenses on other real estate owned and other repossessed assets and, where applicable, long-term debt prepayment fees. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes securities gains and losses, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a better comparison of period to period operating performance.

Lakeland Bancorp, the holding company for Lakeland Bank, has a current asset base of $2.9 billion and forty-seven (47) offices spanning six northwestern New Jersey counties: Bergen, Essex, Morris, Passaic, Sussex and Warren. Lakeland Bank, headquartered at 250 Oak Ridge Road, Oak Ridge, New Jersey offers an extensive array of consumer and commercial products and services, including online banking, localized commercial lending teams, and 24-hour or less turnaround time on consumer loan applications. For more information about their full line of products and services, visit their website at www.lakelandbank.com.

CONTACT: Thomas J. Shara
         President & CEO

         Joseph F. Hurley
         EVP & CFO
         973-697-2000