Subsequent Event

6 Months Ended

Jun. 30, 2021

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On July 11, 2021, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with 1st Constitution Bancorp pursuant to which 1st Constitution Bancorp (parent company of 1st Constitution Bank) will merge with and into the Company and 1st Constitution Bank will merge with and into Lakeland Bank. The merger agreement provides that the shareholders of 1st Constitution Bancorp will receive for each outstanding share of 1st Constitution Bancorp common stock that they own at the effective time of the merger, 1.3577 shares of Lakeland Bancorp, Inc. common stock. The Company expects to issue an aggregate of approximately 14.0 million shares of its common stock in the merger. As of July 11, 2021, the transaction is valued at approximately $244.4 million on a fully diluted basis. As of March 31, 2021, 1st Constitution Bancorp had consolidated total assets, total loans, total deposits and total stockholders' equity of $1.81 billion, $1.31 billion, $1.56 billion and $191.3 million, respectively. 1st Constitution Bancorp had net income of $4.9 million for the three months ended March 31, 2021.

The transaction has been approved by the boards of directors of the Company and 1st Constitution Bancorp. Subject to the approval of the shareholders of both the Company and 1st Constitution Bancorp, regulatory approvals and other customary closing conditions, the Company anticipates completing the merger in the fourth quarter of 2021 or first quarter of 2022.