Fee income and securities sales lifted Lakeland Bancorp (LBAI) in Oak Ridge, N.J., in the first quarter.
Earnings at the $2.9 billion-asset company rose 15.9% year over year, to $5.1 million.
It made $23.9 million in interest income, roughly the same as a year earlier. Net interest margin tightened five basis points, to 3.71%.
Noninterest income rose 25% from a year earlier, to $5 million. Noninterest expense rose 11.7% year over year, to $18.2 million, primarily because of expenses related to Lakeland's deal to buy Somerset Hills Bancorp in Bernardsville, N.J.
The company's efficiency ratio deteriorated to 59.85%, from 57.71% a year earlier.
Lakeland's loan book grew roughly 10% from a year earlier, to $2.2 billion.
"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," Thomas Shara, Lakeland's chief executive, said in a press release.
Shara added that the company expects to complete its acquisition of Somerset this quarter or in the third quarter. Lakeland, which has 46 branches throughout northern New Jersey, would add six branches from the deal.
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