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LBAI Nasdaq· Lakeland Bancorp, Inc
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LBAI Nasdaq· Lakeland Bancorp, Inc
Earnings report Q3 2023

Lakeland Bancorp, Inc. Reports Decrease in Revenue in Q3 2023

Segments of revenue

Lakeland Bancorp, Inc. reported a decrease in revenue for the third quarter of 2023 compared to the same period last year. The company's net interest income, which is the difference between interest income on earning assets and the cost of funds supporting those assets, decreased by $11.4 million. Additionally, noninterest income decreased by $1.8 million.

Strengths

Despite the decrease in revenue, Lakeland Bancorp, Inc. demonstrated resilience in the face of challenges. The company's efficiency ratio, a non-GAAP financial measure, was 58.43% in Q3 2023, compared to 49.76% in the same period last year. This increase in the efficiency ratio can be attributed to decreased revenue due to the increased cost of funds in the rising interest rate environment. Management believes that the efficiency ratio provides a good comparison of period-to-period performance and is widely accepted in the banking industry.

Challenges

The main weakness for Lakeland Bancorp, Inc. in the latest quarter was the decrease in net interest income and noninterest income. The company faced challenges due to the increased cost of funds in the rising interest rate environment, which resulted in decreased revenue. This decrease in revenue impacted the overall financial performance of the company.

Noteworthy

It is worth mentioning that Lakeland Bancorp, Inc. experienced an increase in the 2023 assessment rate related to its asset size exceeding $10 billion. This increase in the assessment rate may have contributed to the challenges faced by the company in terms of increased cost of funds and decreased revenue.

Summary

Lakeland Bancorp, Inc. reported a decrease in revenue for the third quarter of 2023 compared to the same period last year. The company's net interest income and noninterest income both decreased, primarily due to the increased cost of funds in the rising interest rate environment. Despite these challenges, Lakeland Bancorp, Inc. demonstrated resilience with an efficiency ratio of 58.43%. The increase in the efficiency ratio can be attributed to decreased revenue. Overall, the company faced challenges in the latest quarter but remains focused on managing its assets and navigating the changing interest rate environment.

Source documents

Form 10-Q  filed on Nov 08, 2023
86 pages scanned

Reference data

Company financials Q3 revenue 70.1M
Analyst estimates Q3 EPS missed by -1.90%
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