Despite a large chargeoff, Lakeland Bancorp Inc.'s strong loan and deposit growth fueled a 57% increase in its fourth-quarter profits from a year earlier, to $3.3 million.
Earnings per share rose 55%, to 14 cents.
The $2.5 billion-asset Oak Ridge, N.J., company said Thursday that its loan-loss provision jumped more than fourfold, to $3.9 million. It attributed the increase to a $3.1 million commercial and industrial loan that became uncollectable and was charged off.
But that increase was more than offset by a 7% hike in total deposits, to $2 billion, and a 19% hike in total loans, to $1.88 billion. The largest increases came in commercial loans, which rose 15%, to $114.6 million, and commercial leases, which rose 81%, to $159.1 million.
Loans accounted for 75% of Lakeland's total assets as of yearend, versus 70% a year earlier. Its fourth-quarter net interest margin grew 11 basis points from a year earlier and 2 basis points from the previous quarter, to 3.38%. Noninterest expenses increased 7% from a year earlier, to $15.1 million.
