Lakeland Bancorp Reports First Quarter Results

Lakeland Bancorp Reports First Quarter Results

OAK RIDGE, N.J., April 18, 2013 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc.
(Nasdaq:LBAI) reported the following positive developments for the first
quarter of 2013:

  *Net Income Available to Common Shareholders in the first quarter of 2013
    was $5.1 million, or $0.17 per diluted share, as compared to the $4.4
    million, or $0.16 per diluted share, reported for the same period last
    year. Included in the 2013 first quarter earnings were $631,000 in
    expenses related to the proposed merger with Somerset Hills Bancorp.
    Exclusive of these expenses, EPS for the first quarter of 2013 was $0.19
    per common share, a 19% increase over the EPS for the same period last
    year.
    
  *The Company reported strong growth in both loans and non-interest bearing
    demand deposits in the first quarter of 2013. Loans totaling $2.17 billion
    at March 31, 2013 increased by $24.2 million from December 31, 2012,
    including a 4% increase in commercial loans secured by real estate.
    Non-interest bearing demand deposits at $521.0 million increased by $23.0
    million, or 5%, from year-end 2012 and represented 22% of total deposits
    at March 31, 2013.
    
  *Non-performing assets at March 31, 2013 totaling $25.8 million were 10%
    lower than year-end 2012 and 40% below the total for the first quarter of
    2012. 
    
  *Net Interest Margin ("NIM") was 3.71%, a four basis point improvement from
    the fourth quarter of 2012, primarily due to prepayment fees on commercial
    loans. The yield on interest-earning assets decreased by three basis
    points from the fourth quarter of 2012, while the yield on average
    interest-bearing liabilities decreased by eight basis points, as the
    Company repaid $10.0 million in long-term debt at a rate of 2.90%.
    
  *The Company declared a quarterly cash dividend of $0.07 per common share.
    The cash dividend will be paid on May 15, 2013 to holders of record as of
    the close of business on April 30, 2013.

Thomas J. Shara, Lakeland Bancorp's President and CEO said, "In the first
quarter of 2013, we showed continued growth in both loans and
non-interest-bearing demand deposits, while maintaining a stable Net Interest
Margin. As previously announced earlier this quarter, we entered into an
agreement to acquire Somerset Hills Bancorp. The merger, which is expected to
close in either the second or third quarter this year, will expand our
footprint in the contiguous counties in which we operate."

Earnings

Net Interest Income

Net interest income for the first quarter of 2013 at $23.9 million equaled net
interest income for the same period in 2012. Net interest margin at 3.71%
compared to 3.76% reported in the first quarter of 2012. The Company's yield
on interest-earning assets in the first quarter of 2013 was 4.11%, a decrease
of 32 basis points from the same period in 2012. The cost of interest-bearing
liabilities was 0.51%, a decrease of 32 basis points from the first quarter of
2012.

Noninterest income

Noninterest income, exclusive of gains on investment securities, totaled $4.5
million for the first quarter of 2013, an increase of $521,000 as compared to
the same period in 2012. Gains on sales of securities totaled $505,000 and
$32,000 in the first quarter of 2013 and 2012, respectively. Service charges
on deposits at $2.5 million were 3% higher than the total for the first
quarter of 2012. Commissions and fees at $1.2 million increased by $233,000,
primarily due to increased investment commission income. Other income at
$498,000 was $239,000 higher than the total for the same period last year.
Within other income for the first quarter of 2013, the Company recorded
$181,000 in income on loan swap transactions, and $152,000 in gains on sales
of residential mortgage loans.

Noninterest expense

Noninterest expense for the first quarter of 2013, exclusive of the $526,000
prepayment fee on long-term debt and $631,000 in merger related expenses, was
$17.1 million, compared to $16.3 million for the same period in 2012, an
increase of $795,000, or 5%. Salary and benefit expense at $10.0 million
increased by 5%, partially due to increased commission expenses. Net
occupancy, furniture and equipment expenses at $3.4 million were $608,000
higher than last year, primarily due to expenses relating to the opening of
both a new Training and Operations Center and branch office in the second half
of 2012, as well as increased service contract expense.

Financial Condition

At March 31, 2013, total assets were $2.91 billion, which was equivalent to
total assets at year-end 2012. Total loans at $2.17 billion were $24.2 million
higher than at December 31, 2012, primarily due to a $43.1 million, or 4%,
increase in commercial real estate loans. Total deposits at $2.39 billion
increased by $17.7 million from year-end 2012, primarily due to an increase of
$23.0 million in noninterest bearing demand deposits, which totaled $521.0
million at March 31, 2013.

Asset Quality

At March 31, 2013, non-performing assets totaled $25.8 million (0.89% of total
assets), as compared to $28.5 million (0.98% of total assets) as of December
31, 2012. The Allowance for Loan and Lease Losses totaled $29.6 million at
March 31, 2013, and represented 1.36% of total loans. During the first quarter
of 2013, the Company had net charge-offs of $2.5 million (annualized 0.47% of
average loans). 

Capital

Stockholders' equity was $283.9 million and book value per common share was
$9.51 as of March 31, 2013. As of March 31, 2013, the Company's leverage ratio
was 8.77%. Tier I and total risk based capital ratios were 11.60% and 12.85%,
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, services and competition, failure to obtain required
shareholder and regulatory approvals for the merger of Somerset Hills Bancorp
into Lakeland Bancorp and for the merger of Somerset Hills Bank into Lakeland
Bank, and failure to realize anticipated efficiencies and synergies if the
mergers are consummated.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,
provision for unfunded lending commitments and, where applicable, long-term
debt prepayment fees and merger related expenses.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.

Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
                                                                
                            For the Quarter Ended
                            Mar 31,   Dec 31,   Sept 30,  Jun 30,   Mar 31,
(dollars in thousands,       2013      2012      2012      2012      2012
except per share data)
INCOME STATEMENT             (unaudited)
Net Interest Income          $23,936 $24,164 $23,655 $23,748 $23,946
Provision for Loan and Lease (3,183)  (3,124)  (3,350)  (3,877)  (4,556)
Losses
Noninterest Income
(excludinginvestment        4,546    4,661    4,640    4,530    4,025
securities gains)
Gains on investment          505      776      --      241      32
securities
Long-term debt prepayment    (526)    (782)    --      --      --
fee
Merger related expenses      (631)    --      --      --      --
Noninterest Expense,
excluding long-term debt     (17,070) (17,178) (16,968) (16,470) (16,275)
prepayment fees and merger
related expenses
Pretax Income                7,577    8,517    7,977    8,172    7,172
Tax Expense                  (2,469)  (2,688)  (2,488)  (2,719)  (2,201)
Net Income                   $5,108  $5,829  $5,489  $5,453  $4,971
Dividends on Preferred Stock --      --      --      --      (620)
and Discount Accretion
Net Income Available to      $5,108  $5,829  $5,489  $5,453  $4,351
Common Stockholders
                                                                
                                                                
Basic Earnings Per Common    $0.17   $0.20   $0.20   $0.20   $0.16
Share (1)
Diluted Earnings Per Common  $0.17   $0.20   $0.20   $0.20   $0.16
Share (1)
Dividends Per Common Share   $0.07   $0.07   $0.06   $0.06   $0.057
(1)
Weighted Average Shares -    29,563   29,467   27,550   26,737   26,700
Basic (1)
Weighted Average Shares -    29,625   29,566   27,642   26,800   26,747
Diluted (1)
                                                                
SELECTED OPERATING RATIOS                                        
Annualized Return on Average 0.72%     0.81%     0.77%     0.78%     0.71%
Assets
Annualized Return on Average 7.33%     8.30%     8.48%     8.94%     8.23%
Common Equity
Annualized Return on         10.59%    12.06%    12.81%    13.87%    12.83%
Tangible Common Equity (3)
Annualized Net Interest      3.71%     3.67%     3.66%     3.70%     3.76%
Margin
Efficiency ratio (3)         59.85%    59.49%    58.91%    57.18%    57.71%
Common stockholders' equity  9.76%     9.62%     9.71%     8.65%     8.48%
to total assets
Tangible common equity to    6.98%     6.84%     6.87%     5.78%     5.60%
tangible assets (3)
Tier 1 risk-based ratio      11.60%    11.52%    12.24%    10.21%    9.92%
Total risk-based ratio       12.85%    12.77%    14.14%    12.59%    12.37%
Tier 1 leverage ratio        8.77%     8.62%     9.05%     7.62%     7.46%
Book value per common share  $9.51   $9.45   $9.35   $9.15   $8.97
(1) (2)
Tangible book value per      $6.59   $6.52   $6.41   $5.92   $5.74
common share (1) (2) (3)
                                                                
(1) Adjusted for 5% stock dividend paid on April 16, 2012 to shareholders of
record March 30, 2012.
(2) Excludes preferred stock
(3) See Supplemental Information - Non GAAP financial measures




Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
                                                               
                                                 Three Months Ended March 31,
                                                 2013           2012
(dollars in thousands, except per share amounts)  (unaudited)
INTEREST INCOME                                                 
Loans and fees                                    $24,407        $25,458
Federal funds sold and interest bearing deposits  13             6
with banks
Taxable investment securities and other           1,719          2,340
Tax exempt investment securities                  430            490
TOTAL INTEREST INCOME                             26,569        28,294
INTEREST EXPENSE                                                
Deposits                                          1,662         2,256
Federal funds purchased and securities sold under 9             28
agreements to repurchase
Other borrowings                                  962           2,064
TOTAL INTEREST EXPENSE                            2,633         4,348
NET INTEREST INCOME                               23,936        23,946
Provision for loan and lease losses               3,183         4,556
NET INTEREST INCOMEAFTER PROVISION FOR LOAN AND  20,753        19,390
LEASE LOSSES
NONINTEREST INCOME                                              
Service charges on deposit accounts               2,522         2,447
Commissions and fees                              1,213         980
Gains on sales of investment securities           505           32
Income on bank owned life insurance               313           339
Other income                                      498           259
TOTAL NONINTEREST INCOME                          5,051         4,057
NONINTEREST EXPENSE                                             
Salaries and employee benefits                    9,953         9,435
Net occupancy expense                             1,974         1,688
Furniture and equipment                           1,405         1,083
Stationery, supplies and postage                  370           336
Marketing expense                                 288           470
FDIC insurance expense                            513           555
Legal expense                                     242           399
Expenses on other real estate owned and other     19            38
repossessed assets
Long-term debt prepayment fee                     526           --
Merger related expenses                           631           --
Other expenses                                    2,306         2,271
TOTAL NONINTEREST EXPENSE                         18,227        16,275
INCOME BEFORE PROVISION FOR INCOME TAXES          7,577         7,172
Provision for income taxes                        2,469         2,201
NET INCOME                                        $5,108         $4,971
Dividends on Preferred Stock and Discount         --            620
Accretion
Net Income Available to Common Stockholders       $5,108         $4,351
EARNINGS PER COMMON SHARE                                       
Basic                                             $0.17          $0.16
Diluted                                           $0.17          $0.16
DIVIDENDS PER COMMON SHARE                        $0.07          $0.057




Lakeland Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
                                                           
                                                March 31,   December 31,
ASSETS                                           2013        2012
(dollars in thousands)                           (unaudited) 
Cash and due from banks                          $88,744     $100,926
Federal funds sold and interest-bearing deposits 8,322       6,619
due from banks
Total cash and cash equivalents                  97,066     107,545
                                                           
Investment securities available for sale, at     370,234    393,710
fair value
Investment securities held to maturity; fair     96,864     96,925
value of $98,827 in 2013 and $99,784 in 2012
Federal Home Loan Bank Stock, at cost            5,381       5,382
Loans:                                                      
Commercial, secured by real estate               1,214,467  1,171,409
Commercial, industrial and other                 211,078    216,129
Leases                                           28,190     26,781
Residential mortgages                            412,006    423,262
Consumer and home equity                         305,715    309,626
Total loans                                      2,171,456  2,147,207
Deferred cost                                    (713)      (364)
Allowance for loan and lease losses              (29,623)    (28,931)
Net loans                                        2,141,120  2,117,912
Premises and equipment, net                      32,722     33,280
Accrued interest receivable                      7,743      7,643
Goodwill                                         87,111      87,111
Bank owned life insurance                        46,456      46,143
Other assets                                     23,272     23,052
TOTAL ASSETS                                     $2,907,969  $2,918,703
                                                           
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
LIABILITIES:                                                
Deposits:                                                   
Noninterest bearing                              $521,045    $498,066
Savings and interest-bearing transaction         1,566,421  1,569,139
accounts
Time deposits under $100,000                     184,356    188,278
Time deposits $100,000 and over                  116,853    115,514
Total deposits                                   2,388,675  2,370,997
Federal funds purchased and securities sold      94,315     117,289
under agreements to repurchase
Other borrowings                                 75,000     85,000
Subordinated debentures                          51,548     51,548
Other liabilities                                14,554     13,002
TOTAL LIABILITIES                                2,624,092  2,637,836
                                                           
STOCKHOLDERS' EQUITY                                        
Common stock, no par value; authorized
40,000,000 shares; issued29,941,967 shares at   302,660    303,794
March 31, 2013 and December 31, 2012
Accumulated deficit                              (21,117)    (24,145)
Treasury shares, at cost, 82,685 shares at March (1,029)     (2,718)
31, 2013 and 216,077 shares at December 31, 2012
Accumulated other comprehensive gain             3,363      3,936
TOTAL STOCKHOLDERS' EQUITY                       283,877    280,867
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $2,907,969  $2,918,703




Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
                                                                
                For the Quarter Ended
                Mar 31,      Dec 31,      Sept 30,     Jun 30,      Mar 31,
(dollars in      2013         2012         2012         2012         2012
thousands)
                (unaudited)
SELECTED BALANCE
SHEET DATA AT                                                    
PERIOD-END
Loans and Leases $2,171,456 $2,147,207 $2,064,913 $2,088,695 $2,073,527
Allowance for
Loan and Lease   (29,623)    (28,931)    (28,669)    (28,543)    (28,700)
Losses
Investment
Securities and   472,479     496,017     521,294     516,432     522,761
Other
Total Assets     2,907,969   2,918,703   2,859,647   2,853,202   2,852,347
Total Deposits   2,388,675   2,370,997   2,341,108   2,277,400   2,288,128
Short-Term       94,315      117,289     54,581      92,958      96,453
Borrowings
Other Borrowings 126,548     136,548     172,322     222,322     212,322
Stockholders'    283,877     280,867     277,544     246,941     241,955
Equity
                                                                
Loans and Leases                                                 
Commercial real  $1,214,467 $1,171,409 $1,107,907 $1,116,726 $1,114,042
estate
Commercial,
industrial and   211,078     216,129     201,308     216,406     219,270
other
Leases           28,190      26,781      26,548      25,603      26,214
Residential      412,006     423,262     419,685     421,338     412,027
mortgages
Consumer and     305,715     309,626     309,465     308,622     301,974
Home Equity
Total loans      $2,171,456 $2,147,207 $2,064,913 $2,088,695 $2,073,527
                                                                
Deposits                                                         
Noninterest      $521,045   $498,066   $485,256   $474,233   $476,349
bearing
Savings and
interest-bearing 1,566,421   1,569,139   1,535,422   1,476,127   1,473,051
transaction
accounts
Time deposits    184,356     188,278     196,939     201,817     206,766
under $100,000
Time deposits
$100,000 and     116,853     115,514     123,491     125,223     131,962
over
Total deposits   $2,388,675 $2,370,997 $2,341,108 $2,277,400 $2,288,128
                                                                
                                                                
SELECTED AVERAGE
BALANCE SHEET                                                    
DATA
Loans and        $2,136,254 $2,103,204 $2,062,928 $2,077,813 $2,050,093
Leases, net
Investment       475,823     499,455     501,862     502,931     520,039
Securities
Interest-Earning 2,642,662   2,642,185   2,598,061   2,605,294   2,592,654
Assets
Total Assets     2,868,011   2,876,470   2,827,885   2,820,789   2,806,197
Non
Interest-Bearing 502,214     497,906     477,311     473,853     448,893
Demand Deposits
Savings Deposits 357,709     350,557     350,135     352,095     338,221
Interest-Bearing
Transaction      1,226,112   1,236,294   1,169,953   1,141,263   1,137,069
Accounts
Time Deposits    302,159     309,724     324,355     332,669     350,937
Total Deposits   2,388,194   2,394,481   2,321,754   2,299,880   2,275,120
Short-Term       49,641      48,441      50,180      71,558      68,612
Borrowings
Other Borrowings 133,449     139,996     184,023     190,478     198,553
Total
Interest-Bearing 2,069,069   2,085,011   2,078,647   2,088,062   2,093,392
Liabilities
Stockholders'    282,796     279,422     257,557     245,253     250,676
Equity
Common
Stockholders'    282,796     279,422     257,557     245,253     242,957
Equity




Lakeland Bancorp, Inc.
Financial Highlights
(unaudited)
                                                                
                            For the Quarter Ended
                            Mar 31,   Dec 31,   Sept 30,  Jun 30,   Mar 31,
(dollars in thousands)       2013      2012      2012      2012      2012
                            (unaudited)
AVERAGE ANNUALIZED YIELDS                                        
(taxable equivalent basis)
Assets:                                                          
Loans and leases             4.63%     4.70%     4.81%     4.89%     4.99%
Taxable investment           1.70%     1.78%     1.96%     2.03%     2.09%
securities and other
Tax-exempt securities        3.71%     3.86%     3.84%     4.09%     4.14%
Federal funds sold and
interest-bearing cash        0.17%     0.22%     0.20%     0.10%     0.11%
accounts
Total interest-earning       4.11%     4.14%     4.25%     4.35%     4.43%
assets
Liabilities:                                                     
Savings accounts             0.07%     0.10%     0.10%     0.11%     0.11%
Interest-bearing transaction 0.32%     0.36%     0.40%     0.44%     0.45%
accounts
Time deposits                0.81%     0.91%     0.94%     0.97%     1.02%
Borrowings                   2.12%     2.43%     3.10%     3.13%     3.13%
Total interest-bearing       0.51%     0.59%     0.74%     0.81%     0.83%
liabilities
Net interest spread (taxable 3.60%     3.55%     3.51%     3.54%     3.60%
equivalent basis)
Annualized Net Interest
Margin (taxable equivalent   3.71%     3.67%     3.66%     3.70%     3.76%
basis)
Annualized Cost of Deposits  0.28%     0.32%     0.35%     0.37%     0.40%
                                                                
ASSET QUALITY DATA                                               
Allowance for Loan and Lease                                     
Losses
Balance at beginning of      $28,931 $28,669 $28,543 $28,700 $28,416
period
Provision for loan losses    3,183    3,124    3,350    3,877    4,556
Net Charge-offs              (2,491)  (2,862)  (3,224)  (4,034)  (4,272)
Balance at end of period     $29,623 $28,931 $28,669 $28,543 $28,700
                                                                
Net Loan Charge-offs                                             
(Recoveries)
Commercial real estate       $1,350  $1,945  $1,420  $2,938  $3,550
Commercial, industrial and   147      35       258      258      (30)
other
Leases                       24       264      291      150      (210)
Home equity and consumer     406      289      334      528      617
Real estate - mortgage       564      329      921      160      345
Net charge-offs              $2,491  $2,862  $3,224  $4,034  $4,272
                                                                
Nonperforming Assets                                             
Commercial real estate       $12,522 $14,542 $14,211 $18,843 $23,119
Commercial, industrial and   1,203    1,476    1,533    1,650    5,611
other
Leases                       --      32       294      536      621
Home equity and consumer     2,838    3,197    3,104    2,818    2,725
Real estate - mortgage       8,481    8,733    9,235    10,197   9,943
Total non-accruing loans     25,044   27,980   28,377   34,044   42,019
Property acquired through    715      529      775      1,250    1,314
foreclosure or repossession
Total non-performing assets  $25,759 $28,509 $29,152 $35,294 $43,333
                                                                
Loans past due 90 days or    $1,752  $1,437  $1,828  $1,566  $2,343
more
Loans restructured and still $9,012  $7,336  $10,937 $10,776 $8,744
accruing
                                                                
Ratio of allowance for loan
and lease losses to total    1.36%     1.35%     1.39%     1.37%     1.38%
loans
Non-performing loans to      1.15%     1.30%     1.37%     1.63%     2.03%
total loans
Non-performing assets to     0.89%     0.98%     1.02%     1.24%     1.52%
total assets
Annualized net charge-offs   0.47%     0.54%     0.63%     0.78%     0.83%
to average loans




Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(unaudited)
                                                              
              At or for the Quarter Ended,
              Mar 31,      Dec 31,      Sept 30,     Jun 30,      Mar 31,
(dollars in
thousands,     2013         2012         2012         2012         2012
except per
share amounts)
Calculation of
tangible book  (unaudited)
value per
common share
Total common
stockholders'
equity at end  $283,877   $280,867   $277,544   $246,941   $241,955
of period -
GAAP
Less:                                                          
Goodwill       87,111      87,111      87,111      87,111      87,111
Other
identifiable   --         --         --         --         --
intangible
assets, net
Total tangible
common
stockholders'  $196,766   $193,756   $190,433   $159,830   $154,844
equity at end
of period -
Non- GAAP
                                                              
Shares
outstanding at 29,859      29,726      29,691      26,993      26,963
end of period
(1)
                                                              
Book value per
share - GAAP   $9.51      $9.45      $9.35      $9.15      $8.97
(1)
                                                              
Tangible book
value per      $6.59      $6.52      $6.41      $5.92      $5.74
share -
Non-GAAP (1)
                                                              
                                                              
Calculation of
tangible
common equity                                                  
to tangible
assets
Total tangible
common
stockholders'  $196,766   $193,756   $190,433   $159,830   $154,844
equity at end
of period -
Non- GAAP
                                                              
Total assets
at end of      $2,907,969 $2,918,703 $2,859,647 $2,853,202 $2,852,347
period
Less:                                                          
Goodwill       87,111      87,111      87,111      87,111      87,111
Other
identifiable   --         --         --         --         --
intangible
assets, net
Total tangible
assets at end  $2,820,858 $2,831,592 $2,772,536 $2,766,091 $2,765,236
of period -
Non-GAAP
                                                              
Common equity
to assets -    9.76%        9.62%        9.71%        8.65%        8.48%
GAAP
                                                              
Tangible
common equity
to tangible    6.98%        6.84%        6.87%        5.78%        5.60%
assets -
Non-GAAP
                                                              
Calculation of
return on
average                                                        
tangible
common equity
Net income -   $5,108     $5,829     $5,489     $5,453     $4,971
GAAP
                                                              
Total average
common         282,796     279,422     257,557     245,253     242,957
stockholders'
equity
Less:                                                          
Average        87,111      87,111      87,111      87,111      87,111
goodwill
Average other
identifiable   --         --         --         --         --
intangible
assets, net
Total average
tangible
common         $195,685   $192,311   $170,446   $158,142   $155,846
stockholders'
equity - Non -
GAAP
                                                              
Return on
average common 7.33%        8.30%        8.48%        8.94%        8.23%
stockholders'
equity - GAAP
                                                              
Return on
average
tangible
common         10.59%       12.06%       12.81%       13.87%       12.83%
stockholders'
equity -
Non-GAAP
                                                              
Calculation of
efficiency                                                     
ratio
Total
non-interest   $18,227    $17,960    $16,968    $16,470    $16,275
expense
Less:                                                          
Other real
estate owned
and other
repossessed    (19)        (10)        (13)        (38)        (38)
asset
(expense)
income
Long-term debt (526)       (782)       --         --         --
prepayment fee
Merger related (631)       --         --         --         --
expenses
Provision for
unfunded
lending        135         124         (150)       (122)       56
commitments,
net
Non-interest
expense, as    $17,186    $17,292    $16,805    $16,310    $16,293
adjusted
                                                              
Net interest   $23,936    $24,164    $23,655    $23,748    $23,946
income
Noninterest    5,051       5,437       4,640       4,771       4,057
income
Total revenue  28,987      29,601      28,295      28,519      28,003
Plus:
Tax-equivalent
adjustment on  232         242         230         244         264
municipal
securities
Less: (gains)
on investment  (505)       (776)       --         (241)       (32)
securities
Total revenue, $28,714    $29,067    $28,525    $28,522    $28,235
as adjusted
                                                              
Efficiency
ratio -        59.85%       59.49%       58.91%       57.18%       57.71%
Non-GAAP
                                                              
(1) Adjusted for 5% stock dividend payable on April 16, 2012 to shareholders of
record March 30, 2012.

CONTACT: Thomas J. Shara
         President & CEO
        
         Joseph F. Hurley
         EVP & CFO
         973-697-2000
 
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