Exhibit 99.1

Friday, October 14, 2005	Roger Bosma
	President & CEO
	Joseph F. Hurley
	EVP & CFO
	973-697-2000

Lakeland Bancorp Reports 19% Increase in Earnings Per Share in Third Quarter

Oak Ridge, NJ – October 14, 2005 —Lakeland Bancorp, Inc. (NASDAQ: LBAI) reported third quarter Net Income of $5.4 million, an increase of $806,000, or 18% as compared to the same period last year. Earnings per share was $0.25, an increase of 19% over the $0.21 reported in the third quarter of 2004 (restated to reflect the 5% stock dividend paid August 16, 2005). Annualized Return on Average Assets was 0.98% and Annualized Return on Average Equity was 11.11% for the third quarter of 2005.

Net Income for the first nine months of 2005 was $15.1 million, an increase of $3.2 million, or 27% from the $11.8 million reported for the same period last year. Diluted earnings per share was $0.69, a 10% increase from the $0.63 EPS reported in the first nine months of 2004. Return on Average Assets was 0.94% and Return on Average Equity was 10.47%.

Lakeland Bancorp also announced that it has declared a quarterly cash dividend of $0.10 per common share. The cash dividend will be paid on November 15, 2005 to holders of record as of the close of business October 28, 2005. A 5% stock dividend was paid on August 16, 2005.

In the third quarter, as previously disclosed, the Company reached a settlement with the remaining parties regarding the litigation of the purchased lease pools. Lakeland was paid an aggregate of $3.3 million and the parties executed mutual releases. This reduced Lakeland’s non-performing assets by $6.4 million, with no additional loan loss provision required.

-continued-

Roger Bosma, Lakeland Bancorp’s President and CEO, said: “We are very pleased with the record net income achieved in the third quarter of 2005, as well as the continued improvement in the credit quality of the bank’s loan portfolio. We look forward to the consolidation of our two bank subsidiaries into one in the fourth quarter of 2005, and the consolidation of three branch offices, which will reduce operating costs.”

Net Interest Income

Net interest income for the third quarter of 2005 was $17.7 million, as compared to the $17.0 million earned in the third quarter of 2004. Net interest margin at 3.71% compared to 3.86% in the third quarter of 2004, while average earning assets increased 8%. The Company’s yield on interest-earning assets increased by 37 basis points to 5.51% in the third quarter of 2005, from 5.14% for the same period last year. The cost of interest bearing liabilities increased 59 basis points, however, from 1.53% in the third quarter of 2004 to 2.12% in the third quarter of 2005. This increase in liability cost reflects an increase in interest rates over the last year, as well as the increase in rates offered for promotional time deposits and municipal accounts.

For the first nine months, net interest income was $52.8 million, or 19% higher than the $44.2 million reported for the first nine months of 2004. Net interest margin was 3.78% for the first nine months of 2005 compared to 3.85% for the same period last year, while average earning assets rose 21%. The Company’s yield on earning assets increased from 5.14% in 2004 to 5.41% for the first nine months of 2005. The Company’s cost of interest bearing liabilities increased from 1.56% in 2004 to 1.92% for the first nine months of 2005.

Noninterest Income

Noninterest income, excluding the gains on sales of securities, totaled $4.0 million and was $557,000, or 16% higher than the third quarter of 2004. Gains on sales of investment securities were $4,000 in third quarter 2005 compared to gains of $204,000 for the same period last year. Noninterest income, including gains on investment securities sold, totaled $4.0 million, or 10% higher than the third quarter of 2004. Service charges on deposit accounts totaling $2.7 million increased by $644,000 or 31% over the third quarter of 2004, primarily due to the recently implemented overdraft privilege checking program.

Noninterest income, excluding the gains on sales of securities, totaled $11.1 million and was $1.9 million, or 21% higher than the first nine months of 2004. Gains on sales of investment securities were $132,000 for the first nine months of 2005, as compared to $620,000 last year. Noninterest income, including gains on investment securities sold, totaled $11.2 million for the first nine months of 2005, or 14% higher than the same period last year. Service charges on deposit accounts increased 21% to $6.9 million, partially due to the overdraft privilege checking program; commissions and fees remained unchanged at $2.3 million; while lease income increased $643,000 to $704,000.

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-continued-

Noninterest Expense

Noninterest expense for the third quarter of 2005 was $13.4 million, as compared to $13.0 million for the same period last year. Salary and benefit expense increased 6% to $7.4 million, reflecting normal salary and benefit increases. Occupancy, furniture and equipment expenses increased by 9% to $2.4 million, primarily due to increased costs incurred at the Company’s various locations. Other noninterest expenses decreased by $238,000, or 7% in the third quarter of 2005. This reduction was primarily due to legal expense, which decreased $239,000, from $417,000 in the third quarter of 2004, to $178,000 in the third quarter of 2005. The reduction in this category reflects the settlement of the litigation regarding the purchased leases. The bank’s efficiency ratio was 59.6% in the third quarter of 2005 as compared to 60.7% last year.

For the first nine months of 2005, noninterest expense was $40.3 million compared to $33.9 million in 2004, an increase of $6.4 million or 19%. The acquisition of Newton Financial Corp. took place on July 1, 2004. Therefore, only expenses incurred by Newton in the third quarter of 2004 are reflected in the nine-month results of 2004, as compared to expenses incurred for nine months in 2005. Salary and benefit costs increased by $3.6 million, or 20%. Occupancy, furniture and equipment expenses increased by $1.4 million, or 23%, reflecting the costs incurred at the ten new Newton branches. Amortization of core deposit intangibles increased by $402,000 due to the Newton acquisition. Other expenses increased $1.0 million or 11%. Increased marketing costs and Newton related expenses were partially offset by a reduction in legal expenses.

Financial Condition

At September 30, 2005, total assets were $2.191 billion. Total loans were $1.268 billion, up $89.1 million or 8% from $1.179 billion at year-end 2004. Total deposits were $1.806 billion, an increase of $78.8 million or 5% from December 31, 2004. Core deposits, which are defined as noninterest bearing deposits and savings and interest bearing transaction accounts, amounted to $1.374 billion and represented 76% of total deposits at September 30, 2005.

Asset Quality

At September 30, 2005, non-performing assets totaled $4.2 million (0.19% of total assets) and no longer included any non-performing assets related to the purchased lease pools. This compares to $13.7 million (0.64% of total assets) at year-end 2004. The Allowance for Loan and Lease Losses totaled $13.7 million at September 30, 2005 and represented 327% of non-performing loans. During the third quarter of 2005, the Company had net charge-offs of $3.1 million, or 1.02% of average loans, as compared to net charge-offs of $1.8 million, or 0.63% of average loans for the same period last year. The charge-off total in 2005 was primarily due to $3.0 million in commercial lease pool loans being charged-off, while the charge-off total in 2004 was primarily due to equipment leasing loans and commercial loans being charged-off. Based on management’s analysis, the provision for loan losses for the third quarter of 2005 was $304,000, compared to $926,000 during the third quarter of 2004. This reflects an overall improvement in asset quality.

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Capital

Stockholders’ equity was $190.3 million and book value per common share was $8.98 as of September 30, 2005. The Company’s leverage ratio was 7.53%. Tier I and total risk based capital ratios were 11.70% and 12.73%, respectively. These regulatory capital ratios exceed those necessary to be considered a well-capitalized institution under Federal guidelines. The Company repurchased 236,144 shares during the third quarter of 2005 at an average price of $15.44 per share.

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 the integration of Newton Financial Corp. into Lakeland and The Newton Trust Company into Lakeland Bank, 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. Lakeland cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and 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. The following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: operational factors relating to the performance of Lakeland Bank and Newton Trust Company, market conditions, competitive conditions and general economic conditions. Any statements made by Lakeland that are not historical facts should be considered to be forward-looking statements. Lakeland is not obligated to update and does not undertake to update any of its forward-looking statements made herein.

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Lakeland Bancorp, Inc.

Financial Highlights

(unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2005			2004			2005			2004
	(Dollars in thousands except per share amounts)
INCOME STATEMENT
Net Interest Income	$	17,727		$	17,022		$	52,761		$	44,176
Provision for Loan Losses		(304	)		(926	)		(1,414	)		(2,676	)
Noninterest Income (excluding investment securities gains)		3,978			3,421			11,103			9,209
Gain on sales of investment securities		4			204			132			620
Noninterest Expense		(13,410	)		(13,006	)		(40,314	)		(33,895	)
Pretax Income		7,995			6,715			22,268			17,434
Tax Expense		(2,637	)		(2,163	)		(7,205	)		(5,595	)
Net Income	$	5,358		$	4,552		$	15,063		$	11,839
Memo: Tax equivalent adjustment	$	481		$	466		$	1,437		$	1,273
Basic Earnings Per Share *	$	0.25		$	0.21		$	0.70		$	0.64
Diluted Earnings Per Share *	$	0.25		$	0.21		$	0.69		$	0.63
Dividends per share *	$	0.10		$	0.095		$	0.29		$	0.286
Weighted Average Shares - Basic *		21,329			21,847			21,533			18,481
Weighted Average Shares - Diluted *		21,508			22,083			21,719			18,717
SELECTED OPERATING RATIOS
Return on Average Assets		0.98	%		0.90	%		0.94	%		0.91	%
Return on Average Equity		11.11	%		9.57	%		10.47	%		11.43	%
Yield on Interest Earning Assets		5.51	%		5.14	%		5.41	%		5.14	%
Cost of funds		2.12	%		1.53	%		1.92	%		1.56	%
Net interest spread		3.39	%		3.61	%		3.49	%		3.58	%
Net interest margin		3.71	%		3.86	%		3.78	%		3.85	%
Efficiency ratio		59.64	%		60.70	%		60.35	%		61.10	%
Stockholders’ equity to total assets								8.68	%		9.09	%
Book value per share *							$	8.98		$	8.91
ASSET QUALITY RATIOS
Ratio of net charge-offs to average loans								0.48	%		0.44	%
Ratio of allowance to total loans								1.08	%		1.63	%
Non-performing loans to total loans								0.33	%		1.49	%
Non-performing assets to total assets								0.19	%		0.88	%
Allowance to non-performing loans								327	%		109	%

SELECTED BALANCE SHEET DATA AT PERIOD-END

	9/30/2005		12/31/2004
Loans	$	1,267,676	$	1,178,606
Allowance for Loan Losses		13,711		16,638
Investment Securities		686,024		745,028
Total Assets		2,190,938		2,141,021
Deposits		1,805,564		1,726,804
Short-Term Borrowings		90,827		110,830
Long-Term Debt		91,762		98,991
Stockholders’ Equity		190,272		194,548

SELECTED AVERAGE BALANCE SHEET DATA

	For the three months ended				For the nine months ended
	9/30/2005		9/30/2004		9/30/2005		9/30/2004
Investment Securities	$	678,760	$	667,764	$	696,198	$	617,384
Loans, net		1,232,518		1,117,074		1,201,964		947,242
Interest-Earning Assets		1,946,201		1,802,258		1,918,683		1,580,409
Total Assets		2,162,856		2,017,161		2,137,660		1,737,178
Core Deposits		1,350,846		1,338,304		1,339,965		1,161,253
Time Deposits		418,578		350,134		400,129		304,732
Deposits		1,769,424		1,688,438		1,740,094		1,465,985
Total Interest-Bearing Liabilities		1,646,118		1,501,610		1,626,321		1,318,554
Short-Term Borrowings		98,107		30,944		98,785		31,075
Long-Term Debt		34,989		43,164		38,488		37,141
Subordinated Debentures		56,703		56,703		56,703		56,703
Stockholders’ Equity		191,276		189,248		192,294		138,392

* Retroactively adjusted for 5% stock dividend payable on August 16, 2005 to shareholders of record July 29, 2005.

Lakeland Bancorp, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

	September 30, 2005			December 31, 2004
(dollars in thousands)	(unaudited)
ASSETS
Cash and due from banks	$	47,362		$	47,981
Federal funds sold and interest-bearing deposits due from banks		24,691			7,365
Total cash and cash equivalents		72,053			55,346
Investment securities available for sale		528,560			582,106
Investment securities held to maturity; fair value of $155,607 in 2005 and $162,926 in 2004		157,464			162,922
Loans:
Commercial		702,859			654,085
Residential mortgages		261,797			234,600
Consumer and home equity		303,020			289,921
Total loans		1,267,676			1,178,606
Plus: deferred fees		(4,146	)		(2,601	)
Less: Allowance for loan and lease losses		13,711			16,638
Net loans		1,249,819			1,159,367
Premises and equipment - net		31,853			31,749
Accrued interest receivable		8,504			8,002
Goodwill and other identifiable intangible assets		93,670			94,119
Bank owned life insurance		35,141			34,240
Other assets		13,874			13,170
TOTAL ASSETS	$	2,190,938		$	2,141,021
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest bearing	$	313,388		$	319,359
Savings and interest-bearing transaction accounts		1,060,857			1,041,621
Time deposits under $100,000		291,419			269,820
Time deposits $100,000 and over		139,900			96,004
Total deposits		1,805,564			1,726,804
Securities sold under agreement to repurchase		90,827			110,830
Long-term debt		35,059			42,288
Subordinated debentures		56,703			56,703
Other liabilities		12,513			9,848
TOTAL LIABILITIES		2,000,666			1,946,473
STOCKHOLDERS’ EQUITY
Common stock, no par value; authorized shares, 40,000,000; issued shares, 22,442,337 at September 30, 2005 and 22,443,298 at December 31, 2004		226,186			208,933
Accumulated Deficit		(12,553	)		(3,847	)
Treasury stock, at cost, 1,248,618 shares at September 30, 2005 and 728,330 at December 31, 2004		(18,949	)		(10,878	)
Accumulated other comprehensive income		(4,412	)		340
TOTAL STOCKHOLDERS’ EQUITY		190,272			194,548
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,190,938		$	2,141,021

Lakeland Bancorp, Inc. and Subsidiaries

CONSOLIDATED INCOME STATEMENTS

(Unaudited)

	Three months Ended September 30,				Nine Months Ended September 30,
	2005		2004		2005		2004
	(In thousands, except per share data)
INTEREST INCOME
Loans and fees	$	19,650	$	16,425	$	55,623	$	41,906
Federal funds sold and interest-bearing deposits with banks		283		45		503		93
Taxable investment securities		5,659		5,443		17,394		15,184
Tax-exempt investment securities		894		865		2,670		2,364
TOTAL INTEREST INCOME		26,486		22,778		76,190		59,547
INTEREST EXPENSE
Deposits		6,510		4,185		16,959		10,846
Federal funds purchased and securities sold under agreements to repurchase		795		110		2,181		277
Long-term debt		1,454		1,461		4,289		4,248
TOTAL INTEREST EXPENSE		8,759		5,756		23,429		15,371
NET INTEREST INCOME		17,727		17,022		52,761		44,176
Provision for loan and lease losses		304		926		1,414		2,676
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		17,423		16,096		51,347		41,500
NONINTEREST INCOME
Service charges on deposit accounts		2,698		2,054		6,939		5,757
Commissions and fees		798		911		2,264		2,269
Gain on the sales of securities		4		204		132		620
Income on bank owned life insurance		303		303		905		833
Lease Income		44		16		704		61
Other income		135		137		291		289
TOTAL NONINTEREST INCOME		3,982		3,625		11,235		9,829
NONINTEREST EXPENSE
Salaries and employee benefits		7,408		6,965		21,655		18,074
Net occupancy expense		1,289		1,135		4,048		3,160
Furniture and equipment		1,122		1,076		3,332		2,828
Stationery, supplies and postage		467		400		1,373		1,089
Legal fees		178		417		625		1,406
Marketing expense		390		450		1,265		1,141
Amortization of core deposit intangibles		303		303		909		507
Other expenses		2,253		2,260		7,107		5,690
TOTAL NONINTEREST EXPENSE		13,410		13,006		40,314		33,895
INCOME BEFORE PROVISION FOR INCOME TAXES		7,995		6,715		22,268		17,434
Provision for income taxes		2,637		2,163		7,205		5,595
NET INCOME	$	5,358	$	4,552	$	15,063	$	11,839
EARNINGS PER COMMON SHARE
Basic	$	0.25	$	0.21	$	0.70	$	0.64
Diluted	$	0.25	$	0.21	$	0.69	$	0.63
DIVIDENDS PER SHARE	$	0.10	$	0.095	$	0.29	$	0.286