Add me to mailing list    |           |      Search

Advertising | All Lists | Archives | Classified Ads | This Day In American History



Lakeland sees Second Leasing Company Hit

The good news is that Lakeland Bancorp, Inc., Oak Ridge, NJ ( Nasdaq : LBAI)reported Net Income for the fourth quarter of 2008 of $889,000 although the previous year was to $3.3 million.Net Income for the year ended December 31, 2008 was $15.2 million, compared to the $18.0 million reported for 2007.

The bank press release stated:

"The fourth quarter results were adversely impacted by an $11.0 million provision for loan and lease losses compared to a $3.9 million provision for the same period last year. For the full year, the provision for loan and lease losses was $23.7 million, an increase of $17.8 million from the prior year. The higher provision includes $8.5 million related to the leasing division for the fourth quarter and $17.8 million for the full year. During the fourth quarter, a second leasing originator indicated that it could no longer fulfill all of its obligations under contractual recourse provisions. The Company had $37.8 million outstanding from this originator representing 860 individual leases of which approximately 83% were current or less than 30 days past due.

"Thomas J. Shara, Lakeland Bancorp 's President and CEO, said: "We are clearly disappointed with the performance of the leasing portfolio which we are aggressively addressing in this challenging economic environment. As of December 31 , 2008, leases outstanding have declined $75 million or 19% since June 2008 to $311 million and represents 15% of the total loan portfolio down from 19% at December 31, 2007. Fourth quarter charge-offs in loan categories other than leasing totaled less than $1.0 million. Additionally, we have not had any significant impairment issues in the securities portfolio. The Allowance for Loan and Lease Losses now represents 1.23% of Total Loans at December 31, 2008, up from 0.78% at December 31, 2007. For 2008, loans grew 8% and deposits grew 3%. We are pleased to report that our Net Interest Margin in 2008 improved 38 basis points, driven by a $16.9 million or 23% increase in Net Interest Income . Our Efficiency Ratio improved to below 55% down from 63% in 2007 as revenues increased 17% while expenses only increased 3%."

Full Release:

AIG Plane Unit Downgrade May Cut Commercial Paper


Independent, unbiased and fair news about the Leasing Industry.
Ten Top Stories each week chosen by readers (click here)

Bank Beat
Computer Tips
Fernando's Review
Leasing 102
Online Newspapers
Sales Make it Happen
To Tell the Truth

Editorials (click here)