Lakeland Bancorp, Inc. (NASDAQ: LBAI) has reported its first quarter financial results, with a net income of $19.8 million and earnings per diluted share of $0.30 for the three months ended March 31, 2024. This performance mirrors the results from the same period in 2023. The annualized return on average assets for the first quarter of 2024 was 0.73%, while the annualized return on average common equity was 6.79%. Additionally, the annualized return on average tangible common equity (non-GAAP) stood at 8.91%.
The company recorded a benefit for credit losses of $2.7 million in the first quarter of 2024, primarily due to a $2.9 million recovery on signature bank subordinated debt previously charged off, partially offset by a $239,000 provision for credit losses on loans.
It's notable that the increased market rate environment has impacted the company's first quarter 2024 results, with the net interest margin decreasing six basis points to 2.46% from the prior quarter and down 61 basis points from the first quarter of 2023, when it stood at 3.07%.
The company's president and CEO, Thomas Shara, expressed satisfaction with the results, citing outstanding asset quality and thanking the company's associates for their contributions and customer support. Shara also mentioned the ongoing merger with Provident Financial Services, Inc., indicating that all regulatory approvals required for the merger have been obtained and that Provident is moving forward with its subordinated debt offering, a required closing condition of the merger. Both companies are eager to complete the merger swiftly and create a new super community bank focused on serving customers in New Jersey. Following these announcements, the company's shares moved 3.6%, and are now trading at a price of $11.77. For more information, read the company's full 8-K submission here.
