Lakeland Bancorp (LBAI) in Oak Ridge, N.J., reported higher net income after buying Somerset Hills Bancorp.
The $3.3 billion-asset company's fourth-quarter earnings rose 26% from a year earlier, to $7.3 million. The company's earnings per share of 20 cents missed the average estimate of analysts polled by Bloomberg by less than a penny.
Net interest income rose 16% from a year earlier, to $28 million, because of a 14% increase in interest-earning assets from the May acquisition of the $356 million-asset Somerset Hills. The net interest margin widened by 3 basis points from a year earlier, to 3.70%.
Noninterest income rose slightly from a year earlier, to $5.5 million. Noninterest expense rose 15% from the fourth quarter of 2012.
The loan-loss provision fell 46% from a year earlier, to $1.7 million. Net chargeoffs totaled $1.6 million, representing a decrease from $2.9 million a year earlier.