Lakeland Bancorp, Inc.

NasdaqGS:LBAI Stock Report

Market Cap: US$875.0m

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Lakeland Bancorp Past Earnings Performance

Past criteria checks 2/6

Lakeland Bancorp has been growing earnings at an average annual rate of 10.5%, while the Banks industry saw earnings growing at 9.4% annually. Revenues have been growing at an average rate of 10.7% per year. Lakeland Bancorp's return on equity is 7.2%, and it has net margins of 28.9%.

Key information

10.49%

Earnings growth rate

3.65%

EPS growth rate

Banks Industry Growth11.18%
Revenue growth rate10.73%
Return on equity7.18%
Net Margin28.94%
Last Earnings Update31 Mar 2024

Recent past performance updates

Recent updates

Analysis Article • Oct 29

Lakeland Bancorp's (NASDAQ:LBAI) Dividend Will Be $0.145

Lakeland Bancorp, Inc. ( NASDAQ:LBAI ) will pay a dividend of $0.145 on the 16th of November. This makes the dividend...
Analysis Article • Jul 30

Lakeland Bancorp (NASDAQ:LBAI) Has Affirmed Its Dividend Of $0.145

Lakeland Bancorp, Inc. ( NASDAQ:LBAI ) will pay a dividend of $0.145 on the 16th of August. This means that the annual...
Analysis Article • Jul 13

Here's Why We Think Lakeland Bancorp (NASDAQ:LBAI) Is Well Worth Watching

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...
Analysis Article • May 01

Lakeland Bancorp's (NASDAQ:LBAI) Dividend Will Be $0.145

The board of Lakeland Bancorp, Inc. ( NASDAQ:LBAI ) has announced that it will pay a dividend on the 17th of May, with...
Seeking Alpha • Sep 27

Provident Financial Services, Lakeland Bancorp to merge

Provident Financial Services (NYSE:PFS) and Lakeland Bancorp (NASDAQ:LBAI) have agreed to combine in an all-stock merger, valued at ~$1.3B. Lakeland shareholders will receive 0.8319 shares of Provident for each common stock. Provident shareholders will own 58% and Lakeland shareholders will own 42% of the combined company post the completion of the transaction. The boards of both the companies have unanimously approved the transaction, but the transaction is pending shareholders approval. The merger is expected to close in Q2 2023. Provident will be the surviving corporation as part of the merger. The merger will see the banking platforms of each of the companies, Provident Bank and Lakeland Bank, combine to create New Jersey's preeminent super-community bank with more than $25B in assets and $20B in total deposits. The transaction is said to fortify Provident and Lakeland's positions as leading players in the tri-state commercial real estate market, Provident's two ancillary fee-based business lines in insurance and wealth management and Lakeland's growing asset-based lending and equipment lease financing provide opportunities for additional growth and relationship expansion. The combined entity is expected to generate 2024 GAAP EPS of ~24% or ~9% with and without purchase accounting interest rate marks, respectively. The transaction is expected to result in an internal rate of return of ~20%. The combined company's board will have 16 directors in total, consisting of nine directors from Provident and seven directors from Lakeland. Lakeland CEO Thomas Shara will serve as executive vice chairman. A Provident board representative will serve as the independent lead director of the combined company's board. PFS shares were trading -0.69% pre-market. Source: Press Release
Seeking Alpha • Sep 02

Lakeland Bancorp: Strong Loan Growth To Drive Earnings

Summary Loan growth will depend on New Jersey and New York’s economic factors. Further, M&A disruption will provide a good opportunity for loan growth. Provisioning will likely be elevated in the next few quarters due to the high-inflation environment. Moreover, the existing allowance level is not high enough. The December 2022 target price suggests a high upside from the current market price. Further, Lakeland Bancorp is offering a decent dividend yield. Strong loan growth will support Lakeland Bancorp's (LBAI) earnings through the end of 2023. The loan portfolio is set to surge on the back of management's efforts and regional economic factors. On the other hand, above-average provisioning will likely drag the bottom line. Meanwhile, the margin will likely be little changed over the next year and a half. Overall, I am expecting Lakeland Bancorp to report earnings of $1.63 per share in 2022, down 12% year-over-year. For 2023, I'm expecting earnings to grow by 19% to $1.94 per share. The year-end target price suggests a sizable upside from the current market price. Therefore, I'm adopting a buy rating on Lakeland Bancorp. Internal And External Factors To Lift The Loan Portfolio Lakeland Bancorp's loan book grew by a remarkable 3.8% in the second quarter of 2022, or 15.2% annualized. Including the first quarter's acquisition of 1st Constitution Bancorp, the loan portfolio has grown by a sizable 24% in the first half of the year. The management is expecting loan growth to remain in the high-single-digit range in the remainder of this year, as mentioned in the latest conference call. The management seemed particularly optimistic about the performance of its healthcare lending team and the Hudson Valley lending teams during the conference call. Further, the management mentioned that recent M&A activity in Lakeland Bancorp’s region is helping them develop new relationships. If the company is successful in gaining new accounts then it could boost loan growth in the coming quarters. Regional economic factors can also drive loan growth in the coming quarters. Lakeland Bancorp operates in New Jersey and the Hudson Valley of New York. Both New Jersey and New York (excluding New York City) currently have very low unemployment rates, which bodes well for loan growth, especially consumer loans. New Jersey Unemployment Rate data by YCharts Further, the coincident indices for both states show that economic activity has recovered well and is currently at a satisfactory level. Philly Fed New Jersey Coincident Index data by YCharts Considering these factors, I'm expecting loan growth to remain in the high-single-digit range through the end of 2023, on an annualized basis. I'm expecting the loan portfolio to grow by 8% annualized every quarter till the end of next year. Margin To Be Barely Affected By The Surge In Interest Rates Lakeland Bancorp's deposit book is quite rate-sensitive because of the abundance of interest-bearing, non-maturing deposits. These deposits re-price frequently, hence they will enable the rising-rate environment to quickly raise the average deposit cost. These deposits, namely interest-bearing checking, money market, and savings accounts, altogether made up 63.6% of total deposits. The management's interest-rate sensitivity analysis also shows that liability re-pricing is likely to outweigh asset re-pricing in the twelve months following a rate hike. According to the results of the analysis given in the 10-Q filing, a 200-basis points hike in interest rate could DECREASE the net interest income by 1% over twelve months. Considering the liability sensitivity and the anticipated loan growth discussed above, I'm expecting the margin to remain almost stable through the end of 2023 from the second quarter’s level. Higher Provisioning To Drag Earnings This Year Lakeland Bancorp’s allowances were 310.62% of nonaccrual loans at the end of June 2022, down from 341.83% at the end of December 2021. The current allowance coverage does not appear large enough for the high-inflation environment and the resultant financial stress for borrowers. As a result, I'm expecting provisioning to remain elevated in the next few quarters. The threats of a recession will also encourage Lakeland Bancorp’s management to build up its reserves. Overall, I'm expecting provisioning to continue at the second quarter’s above-average level through the end of 2023. I'm expecting the net provision expense to make up 0.17% (annualized) of total loans in every quarter till the end of 2023. In comparison, the net provision expense averaged 0.10% from 2017 to 2019. The above-average provisioning will likely be one of the biggest contributors to an earnings decline this year. On the other hand, anticipated loan growth will likely support earnings till the end of 2023. Meanwhile, the margin will likely remain stable and have little effect on the bottom line. Overall, I'm expecting Lakeland Bancorp to report earnings of $1.63 per share for 2022, down 12% year-over-year. My earnings estimate includes the one-time merger-related expenses attributed to the acquisition of 1st Constitution Bancorp. For 2023, I'm expecting earnings to jump by 19% to $1.94 per share. The following table shows my income statement estimates. FY18 FY19 FY20 FY21 FY22E FY23E Income Statement Net interest income 174 196 208 235 317 350 Provision for loan losses 4 2 27 (11) 17 14 Non-interest income 22 27 27 22 28 30 Non-interest expense 111 127 133 141 186 196 Net income - Common Sh. 63 71 57 94 106 126 EPS - Diluted ($) 1.32 1.38 1.13 1.85 1.63 1.94 Source: SEC Filings, Earnings Releases, Author's Estimates (In USD million unless otherwise specified) Actual earnings may differ materially from estimates because of the risks and uncertainties related to inflation, and consequently the timing and magnitude of interest rate hikes. Further, a stronger or longer-than-anticipated recession can increase the provisioning for expected loan losses beyond my estimates. Rising Rate Environment Has Eroded Equity Book Value Lakeland Bancorp's tangible book value per share dropped from $13.21 at the end of December 2021 to $12.47 at the end of June 2022. Part of the decline was attributable to the acquisition of 1st Constitution Bancorp. A buildup of unrealized losses on the large available-for-sale securities portfolio was also responsible for the dip in tangible equity book value. As interest rates increased in the market, the market value of the available-for-sale securities declined. These mark-to-market losses skipped the income statement and flowed directly into the equity account. Further pressure on the equity book value is likely in the second half of 2022 because of the 75 basis points Fed Funds rate hike in July. I'm also expecting a further 75 basis point rate hike in the remainder of the year. The following table shows my balance sheet estimates. FY18 FY19 FY20 FY21 FY22E FY23E Financial Position Net Loans 4,419 5,098 5,950 5,918 7,636 8,266 Growth of Net Loans 7.3% 15.4% 16.7% (0.5)% 29.0% 8.2% Other Earning Assets 825 905 982 1,653 2,219 2,309 Deposits 4,621 5,294 6,456 6,966 8,845 9,574 Borrowings and Sub-Debt 520 613 331 327 686 699 Common equity 624 725 764 827 1,133 1,219 Book Value Per Share ($) 13.0 14.3 15.1 16.3 17.4 18.8 Tangible BVPS ($) 10.1 11.2 11.9 13.1 13.1 14.4 Source: SEC Filings, Author's Estimates (In USD million unless otherwise specified) High Total Expected Return Justifies A Buy Rating Since 2015, Lakeland Bancorp has increased its dividend in the second quarter of every year. Given the earnings outlook, I believe the company will maintain this trend next year and raise its quarterly dividend to $0.155 in the second quarter of 2023. My earnings and dividend estimates suggest a payout reach of 31% for 2023, which is close to the five-year average of 36%.
Analysis Article • Aug 02

Lakeland Bancorp (NASDAQ:LBAI) Is Paying Out A Dividend Of $0.145

Lakeland Bancorp, Inc. ( NASDAQ:LBAI ) will pay a dividend of $0.145 on the 17th of August. The dividend yield will be...
Seeking Alpha • Jul 28

Lakeland Bancorp Q2 GAAP EPS, revenue beats

Lakeland Bancorp press release (NASDAQ:LBAI): Q2 GAAP EPS of $0.44 beats by $0.01 (vs. $0.53 in prior-year quarter). Revenue of $87.37M (+34.4% Y/Y) beats by $5.28M.
Seeking Alpha • Jan 29

Lakeland Bancorp: Large NJ Bank With Optionality

Serial acquirer serving Northern, Central NJ and Hudson Valley. Fifth largest independent community bank gives Lakeland scale. Consistent dividends throughout history, allowing shareholders to get paid to wait.
Analysis Article • Jan 07

With EPS Growth And More, Lakeland Bancorp (NASDAQ:LBAI) Is Interesting

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...
Analysis Article • Sep 28

I Ran A Stock Scan For Earnings Growth And Lakeland Bancorp (NASDAQ:LBAI) Passed With Ease

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...
Analysis Article • May 13

Shareholders Will Probably Hold Off On Increasing Lakeland Bancorp, Inc.'s (NASDAQ:LBAI) CEO Compensation For The Time Being

As many shareholders of Lakeland Bancorp, Inc. ( NASDAQ:LBAI ) will be aware, they have not made a gain on their...
Analysis Article • Mar 01

Why Lakeland Bancorp, Inc. (NASDAQ:LBAI) Should Be In Your Dividend Portfolio

Today we'll take a closer look at Lakeland Bancorp, Inc. ( NASDAQ:LBAI ) from a dividend investor's perspective. Owning...
Analysis Article • Jan 25

What Type Of Returns Would Lakeland Bancorp's(NASDAQ:LBAI) Shareholders Have Earned If They Purchased Their SharesThree Years Ago?

While not a mind-blowing move, it is good to see that the Lakeland Bancorp, Inc. ( NASDAQ:LBAI ) share price has gained...
Analysis Article • Dec 21

Could The Lakeland Bancorp, Inc. (NASDAQ:LBAI) Ownership Structure Tell Us Something Useful?

Every investor in Lakeland Bancorp, Inc. ( NASDAQ:LBAI ) should be aware of the most powerful shareholder groups. Large...
Analysis Article • Nov 24

Is Lakeland Bancorp, Inc. (NASDAQ:LBAI) A Smart Pick For Income Investors?

Dividend paying stocks like Lakeland Bancorp, Inc. (NASDAQ:LBAI) tend to be popular with investors, and for good...

Revenue & Expenses Breakdown

How Lakeland Bancorp makes and spends money. Based on latest reported earnings, on an LTM basis.

Earnings and Revenue History

NasdaqGS:LBAI Revenue, expenses and earnings (USD Millions)
DateRevenueEarningsG+A ExpensesR&D Expenses
31 Mar 24290841470
31 Dec 23294841500
30 Sep 23315971510
30 Jun 233281041510
31 Mar 233361101500
31 Dec 223321061480
30 Sep 22305951400
30 Jun 22287881330
31 Mar 22274871240
31 Dec 21268941140
30 Sep 21265911120
30 Jun 21248831090
31 Mar 21224681060
31 Dec 20208571050
30 Sep 20203571050
30 Jun 20207611060
31 Mar 20216671080
31 Dec 19221701020
30 Sep 19214671050
30 Jun 19207651020
31 Mar 1920063990
31 Dec 1819163950
30 Sep 1818960930
30 Jun 1818757900
31 Mar 1818555880
31 Dec 1718552870
30 Sep 1718151860
30 Jun 1717748850
31 Mar 1717045830
31 Dec 1616341810
30 Sep 1615438780
30 Jun 1614534750
31 Mar 1613932740
31 Dec 1513432710
30 Sep 1513132710
30 Jun 1512932700
31 Mar 1512732680
31 Dec 1412531670
30 Sep 1412530640
30 Jun 1412429640
31 Mar 1412027630
31 Dec 1311525630
30 Sep 1311023590
30 Jun 1310422570

Quality Earnings: LBAI has high quality earnings.

Growing Profit Margin: LBAI's current net profit margins (28.9%) are lower than last year (32.8%).

Free Cash Flow vs Earnings Analysis

Past Earnings Growth Analysis

Earnings Trend: LBAI's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: LBAI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LBAI had negative earnings growth (-23.7%) over the past year, making it difficult to compare to the Banks industry average (-13.8%).

Return on Equity

High ROE: LBAI's Return on Equity (7.2%) is considered low.

Return on Assets

Return on Capital Employed

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/05/16 07:19
End of Day Share Price 2024/05/16 00:00
Earnings2024/03/31
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Lakeland Bancorp, Inc. is covered by 8 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jacob CivielloBrean Capital Historical (Janney Montgomery)
null nullD.A. Davidson & Co.
David DarstGuggenheim Securities, LLC