[LETTERHEAD of Lakeland bancorp, inc.]





                                  news release





FOR RELEASE:      Thursday, July 11, 2002        CONTACT:    Roger Bosma

                                                             President & CEO



                                                             Joseph F. Hurley

                                                             EVP & CFO

                                                             973-697-2000



Lakeland Bancorp Reports A 32% Increase in 2Q Net Income and Increases Cash

Dividend



Oak Ridge, NJ - July 11, 2002 --Lakeland Bancorp, Inc. (NASDAQ: LBAI) reported

second quarter Net Income of $3.5 million, up 32% from $2.7 million for the same

period in 2001. Diluted earnings per share were $0.25 per share, a 31% increase

compared to $0.19 per share for the second quarter 2001. Return on Average

Assets was 1.28% and Return on Average Equity was 15.94% for the second quarter

2002.



Net Income for the first six months of 2002 was $6.8 million, up 32% from the

$5.1 million for the same period last year. Diluted earnings per share were

$0.48, up 32% from the $0.37 per share for the first six months of 2001. Return

on Average Assets was 1.26% and Return on Average Equity was 15.54%.



Lakeland Bancorp also announced that it increased its quarterly cash dividend by

5.6% to $0.095 per common share. The cash dividend will be paid on August 15,

2002 to holders of record as of the close of business on July 31, 2002.



Roger Bosma, Lakeland Bancorp's President and CEO said, "We are pleased to

report that earnings for the second quarter of 2002 continued to show the

strength that was reported in the first quarter of this year. Driven by an

improving net interest margin and continued deposit and loan growth, we believe

that Lakeland has become one of the emerging forces in this area's banking

community."



Earnings



Net Interest Income

Net interest income for the second quarter of 2002 was $12.1 million or 24%

higher than the $9.8 million earned in the second quarter of 2001 reflecting

asset growth and increased margins. Net interest margin rose to 4.90% in the

second quarter 2002 from 4.66% for the same period last



{PAGE}



     -continued-



     year. The Company's average cost of interest bearing liabilities decreased

     136 basis points from 3.50% in second quarter 2001 to 2.14% in second

     quarter 2002 resulting from a decline in interest rates and an increase in

     lower costing core deposits which represented 74% of total deposits at June

     30, 2002. The Company's yield on interest earning assets declined 74 basis

     points from 7.34% in second quarter 2001 to 6.60% in second quarter 2002 as

     a result of declining interest rates.



     Year-to-date, net interest income was $23.3 million, or 22% higher than the

     $19.1 million reported for the first six months of 2001. Net interest

     margin rose to 4.87% for the first half of 2002 from 4.64% for the same

     period last year. The Company's yield on earning assets decreased from

     7.46% in 2001 to 6.62% for the first six months of 2002. The Company's cost

     of interest bearing liabilities decreased from 3.64% in 2001 to 2.23% for

     the first six months of 2002.



     Noninterest income

     Noninterest income was $2.3 million in the second quarter 2002 which was

     $169,000 or 8% higher than the second quarter 2001. Service charges and

     fees on deposit accounts increased $68,000 or 5% to $1.5 million.

     Commissions and fees increased $195,000 or 57% to $537,000, reflecting

Home        Intelligence        Services        Subscriptions        News        About Us

Contact Us       Terms of Use       Resend Documents       Shopping Cart

Copyright © 2008 The Consus Group LLC