Filed by Lakeland Bancorp, Inc.

Pursuant to Rule 425 under the

Securities Act of 1933 and deemed filed pursuant

to Rule 14a-12 of the Securities Exchange Act of 1934

Subject Company: Lakeland Bancorp, Inc.

Commission File No.: 000-17820

Lakeland           bancorp, inc.	Administrative Center: 250 Oak Ridge Road Oak Ridge, N.J. 07438 (973) 697-2000
	Offices in Bergen, Essex, Morris Passaic & Sussex Counties

news release

FOR RELEASE: Thursday, April 10, 2003 CONTACT: Roger Bosma President & CEO Joseph F. Hurley EVP & CFO 973-697-2000

Lakeland Bancorp Reports A 14% Increase in First Quarter Earnings Per Share

Oak Ridge, NJ – April 10, 2003 —Lakeland Bancorp, Inc. (Nasdaq: LBAI) reported first quarter diluted earnings per share of $0.25 per share, a 14% increase compared to $0.22 per share for the first quarter 2002. Net Income was $3.5 million, up 9% from $3.2 million for the same period in 2002. Annualized Return on Average Assets was 1.17% and Annualized Return on Average Equity was 15.84% for the first quarter 2003.

Lakeland Bancorp also announced that it has declared a quarterly cash dividend of $0.095 per common share. The cash dividend will be paid on May 15, 2003 to holders of record as of the close of business on April 30, 2003.

Roger Bosma, Lakeland Bancorp’s President and CEO said, “We are pleased to report that earnings for the first quarter of 2003 continued to show the strength that was reported in 2002. Deposits in the first quarter continue to grow at a significant rate as we continue to expand our network in the northern New Jersey market. Our pending acquisition of Community State Bank will further enhance our franchise value by expanding our presence in Bergen County.”

Earnings

Net Interest Income

Net interest income for the first quarter of 2003 was $12.3 million or 10% higher than the $11.2 million earned in the first quarter of 2002. Net interest margin decreased to 4.49% from 4.80% in the first quarter of 2002. The Company’s average cost of interest bearing liabilities decreased 61 basis points from 2.32% in the first quarter of 2002 to 1.71% in the first quarter of 2003. The Company’s yield on interest earning assets declined 76 basis points from 6.63% in the first quarter of 2002 to 5.87% in the first quarter of 2003 resulting from the declining interest rate environment.

[LOGO]

EQUAL HOUSING

LENDER

MEMBER FEDERAL DEPOSIT INSURANCE CORP.

-continued-

Noninterest income

Noninterest income, excluding gains on investment securities sold, totaled $2.3 million or 8% higher than the first quarter of 2002. Service charges on deposit accounts increased 7% to $1.5 million, and commissions and fees increased 18% to $539,000, primarily due to increased loan volume.

Noninterest expense

Noninterest expense for the first quarter of 2003 was $9.0 million, an increase of 12% compared to the first quarter of 2002. This increase reflects higher salary and benefit expense due to branch expansion as well as normal salary and benefit increases. Other noninterest expenses increased by 21% in the first quarter of 2003 primarily due to legal expenses, marketing expenses, consulting costs relating to an operational efficiency review, and increased utility and snow removal costs this past winter. The bank’s efficiency ratio was 59.6% in the first quarter of 2003.

Financial Condition

At March 31, 2003, total assets were $1.26 billion, an increase of $54.6 million or 5% from year-end.

Loans

In the first quarter of 2003, commercial loans increased $9.8 million or 3% from year-end, while consumer and home equity loans showed a modest increase of $2.3 million. Residential mortgage loans decreased $4.6 million or 3% due to significant loan refinancing activity.

Asset Quality

At March 31, 2003, non-performing assets totaled $20.4 million (1.62% of total assets) including $16.0 million related to commercial lease pools (1.27% of total assets) and $4.4 million of other non-performing assets (0.35% of total assets). The Allowance for Loan and Lease Losses totaled $18.6 million at March 31, 2003 and represented 2.57% of total loans.

Deposits

At March 31, 2003, total deposits were $1.12 billion, an increase of $59.0 million or 6% from December 31, 2002. Core deposits, which are defined as noninterest bearing deposits and savings and interest bearing transaction accounts, increased by $58.8 million or 7% to $866.5 million. Core deposits, as defined, represent 78% of total deposits, up from 76% at year-end.

Capital

Stockholders’ equity was $92.5 million and book value per common share was $6.51. As of March 31, 2003, the Company’s leverage ratio was 6.95%. Tier I and total risk based capital ratios were 10.94% and 12.21%, respectively. These regulatory capital ratios exceed those necessary to be considered a well-capitalized institution under Federal guidelines.

The information disclosed in this document includes various forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to credit quality (including delinquency trends and the allowance for loan and lease losses), corporate objectives, and other financial and business matters. The words “anticipates”, “projects”, “intends”, “estimates”, “expects”, “believes”, “plans”, “may”, “will,”, “should”, “could”, and other similar expressions are intended to identify such forward-looking statements. The Company cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and

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-continued-

are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements.

In addition to the factors disclosed by the Company elsewhere in this document, the following factors, among others, could cause the Company’s actual results to differ materially and adversely from such forward-looking statements: pricing pressures on loan and deposit products; competition; changes in economic conditions nationally, regionally and in the Company’s markets; the extent and timing of actions of the Federal Reserve Board; changes in levels of market interest rates; clients’ acceptance of the Company’s products and services; credit risks of lending activities and competitive factors; whether or not the Company ultimately receives payment of all amounts due from the lease portfolio as described in Note 15-Commitments and Contingencies in Notes to the Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2002; changes in the conditions of the capital markets in general and in the capital markets for financial institutions in particular and the impact of the war in Iraq on such markets; the ability of the Company to integrate Community State Bank promptly into the Company’s overall business and plans if the pending merger with Community State Bank (and its CSB Financial Corp. holding company) is consummated; and the extent and timing of legislative and regulatory actions and reforms.

The above-listed risk factors are not necessarily exhaustive, particularly as to possible future events, and new risk factors may emerge from time to time. Certain events may occur that could cause the Company’s actual results to be materially different than those described in the Company’s periodic filings with the Securities and Exchange Commission. Any statements made by the Company that are not historical facts should be considered to be forward-looking statements. The Company is not obligated to update and does not undertake to update any of its forward-looking statements made herein.

The Company plans to file a Registration Statement on SEC Form S-4 in connection with the pending merger and the parties expect to mail a Proxy Statement/Prospectus to CSB Financial Corp.’s shareholders containing information about the merger. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN THEY ARE AVAILABLE. THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, CSB FINANCIAL CORP., COMMUNITY STATE BANK, THE MERGER AND RELATED MATTERS. Investors and security holders will be able to obtain free copies of these documents through the web site maintained by the U.S. Securities and Exchange Commission at http//www.sec.gov. In addition to the Registration Statement and the Proxy Statement/Prospectus, the Company files annual, quarterly and special reports, proxy statements and other information with the Securities and Exchange Commission. You may read and copy any reports, statements and other information filed by the Company at the SEC public reference rooms at 450 Fifth Street, N.W., Washington, D.C. 20549 or at the Commission’s other public reference rooms in New York, New York and Chicago, Illinois. Please call the Commission at 1-800-SEC-0330 for further information on public reference rooms. The Company’s filings with the Commission also are available to the public from commercial document-retrieval services and at the web site maintained by the Commission at http//www.sec.gov. CSB Financial Corp., its directors, executive officers and certain members of management and employees may be soliciting proxies from CSB Financial Corp’s stockholders in favor of the adoption of the merger agreement. A description of any interests that CSB Financial Corp.’s directors and executive officers have in the merger will be available in the Proxy Statement/Prospectus.

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Lakeland Bancorp, Inc.

Financial Highlights

(unaudited)

	Three months ended March 31,
	2003			2002
	(Dollars in thousands except per share amounts)
INCOME STATEMENT
Net Interest Income	$	12,310		$	11,195
Provision for Loan and Lease Losses		750			750
Noninterest Income (excluding investment security gains		2,314			2,151
Gain on sales of investment securities		265			74
Noninterest Expense		8,967			7,974
Pretax Income		5,172			4,696
Tax Expense		1,629			1,455
Net Income	$	3,543		$	3,241
Basic Earnings Per Share	$	0.25		$	0.23
Diluted Earnings Per Share	$	0.25		$	0.22
Dividends per share	$	0.095		$	0.086
Weighted Average Shares—Basic		14,210			14,370
Weighted Average Shares—Diluted		14,444			14,609
SELECTED OPERATING RATIOS
Return on Average Assets		1.17	%		1.24	%
Return on Average Equity		15.84	%		15.13	%
Yield on Interest Earning Assets		5.87	%		6.63	%
Cost of funds		1.71	%		2.32	%
Net interest spread		4.16	%		4.31	%
Net interest margin		4.49	%		4.80	%
Efficiency ratio		59.63	%		57.91	%
Stockholders’ equity to total assets		7.33	%		8.06	%
Book value per share	$	6.51		$	6.04
Closing stock price	$	15.90		$	16.82
ASSET QUALITY RATIOS
Ratio of net charge-offs to average loans		0.03	%		0.07	%
Ratio of allowance to total loans		2.57	%		1.41	%
Non-performing loans to total loans		2.81	%		1.47	%
Non-performing assets to total assets		1.62	%		0.88	%
Allowance to non-performing loans		91.32	%		96.33	%
SELECTED BALANCE SHEET DATA AT PERIOD-END
	3/31/2003			12/31/2002
Loans	$	726,128		$	718,676
Allowance for Loan and Lease Losses		18,629			17,940
Investment Securities		419,826			407,843
Total Assets		1,261,744			1,207,105
Deposits		1,118,091			1,059,092
Borrowings		13,328			19,974
Long Term Debt		31,000			31,000
Stockholders’ Equity		92,469			90,767
SELECTED AVERAGE BALANCE SHEET DATA
	For the quarter ended
	3/31/2003			3/31/2002
Loans	$	720,210		$	612,908
Interest-Earning Assets		1,144,826			971,033
Deposits		1,083,986			922,279
Total Assets		1,231,037			1,059,911
Common Equity		90,688			86,881

Lakeland Bancorp, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

ASSETS	March 31, 2003			December 31, 2002
(dollars in thousands)	(unaudited)
Cash and due from banks	$	42,203		$	32,775
Federal funds sold and interest-bearing deposits due from banks		31,035			2,690
Total cash and cash equivalents		73,238			35,465
Investment securities available for sale		372,290			361,760
Investment securities held to maturity; fair value of $49,641 in 2003 and $48,436 in 2002		47,536			46,083
Loans:
Commercial		324,134			314,378
Residential mortgages		165,458			170,039
Consumer and home equity		236,536			234,259
Total loans		726,128			718,676
Plus: deferred costs		384			982
Less: Allowance for loan and lease losses		18,629			17,940
Net loans		707,883			701,718
Premises and equipment—net		24,867			25,167
Accrued interest receivable		5,467			5,495
Other assets		30,463			31,417
TOTAL ASSETS	$	1,261,744		$	1,207,105
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest bearing	$	216,479		$	214,110
Savings and interest-bearing transaction accounts		650,070			593,637
Time deposits under $100		181,313			179,423
Time deposits $100 and over		70,229			71,922
Total deposits		1,118,091			1,059,092
Federal funds purchased and securities sold under agreements to repurchase		13,328			19,974
Long-term debt		31,000			31,000
Other liabilities		6,856			6,272
TOTAL LIABILITIES		1,169,275			1,116,338
STOCKHOLDERS’ EQUITY
Common stock, no par value; authorized shares, 40,000,000; issued shares, 14,671,097 at March 31, 2003 and December 31, 2002		101,525			101,664
Accumulated Deficit		(7,245	)		(9,436	)
Treasury stock, at cost, 463,958 shares at March 31, 2003 and 444,018 at December 31, 2002		-6,408			-5,881
Accumulated other comprehensive income		4,597			4,420
TOTAL STOCKHOLDERS’ EQUITY		92,469			90,767
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,261,744		$	1,207,105

Lakeland Bancorp, Inc. and Subsidiaries

CONSOLIDATED INCOME STATEMENTS

(Unaudited)

	Three months Ended March 31,
	2003		2002
	(In thousands, except per share data)
INTEREST INCOME
Loans and fees	$	11,853	$	10,957
Federal funds sold and interest bearing deposits with banks		68		87
Taxable investment securities		3,632		3,980
Tax exempt investment securities		658		560
TOTAL INTEREST INCOME		16,211		15,584
INTEREST EXPENSE
Deposits		3,436		3,951
Securities sold under agreements to repurchase		63		75
Long-term debt		402		363
TOTAL INTEREST EXPENSE		3,901		4,389
NET INTEREST INCOME		12,310		11,195
Provision for loan and lease losses		750		750
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES		11,560		10,445
NONINTEREST INCOME
Service charges on deposit accounts		1,511		1,413
Commissions and fees		539		456
Gain on the sales of investment securities		265		74
Gain on sale of leases		25		53
Other income		239		229
TOTAL NONINTEREST INCOME		2,579		2,225
NONINTEREST EXPENSE
Salaries and employee benefits		4,959		4,654
Net occupancy expense		925		789
Furniture and equipment		814		695
Stationery, supplies and postage		330		309
Other expenses		1,939		1,527
TOTAL NONINTEREST EXPENSE		8,967		7,974
INCOME BEFORE PROVISION FOR INCOME TAXES		5,172		4,696
Provision for income taxes		1,629		1,455
NET INCOME	$	3,543	$	3,241
EARNINGS PER COMMON SHARE
Basic	$	0.25	$	0.23
Diluted	$	0.25	$	0.22
DIVIDENDS PER SHARE	$	0.095	$	0.086