Presentation

Nasdaq: “LBAI”

Thomas J. Shara, President & CEO

Joseph F. Hurley, EVP & CFO

Third Quarter 2009

Exhibit 99.1

Statement Regarding

Forward-Looking Information

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 1994

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 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.

In addition to the risk factors disclosed 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: changes in the financial services industry and the U.S. and global capital markets,

changes in economic conditions nationally, regionally and in the Company’s markets, the nature and

timing of actions of the Federal Reserve Board and other regulators, the nature and timing of legislature

affecting the financial services industry, government intervention in the U.S. financial system, passage

by the U.S. Congress of legislation which unilaterally amends the terms of the U.S. Department of the

Treasury’s preferred stock investment in the Company, changes in the levels of market interest rates,

pricing pressures of the loan and deposit products, credit risks of the Company’s lending and leasing

activities, customers’ acceptance of the Company’s products and services competition.

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.

$2.8 Billion Commercial Bank

3rd largest publicly held commercial bank

headquartered in New Jersey (6th largest

including thrifts)

40-year history

48 branches

Corporate Profile

Market Cap -

$145 million

23.8 million Shares Outstanding

(21.4 million float)

3,700 Registered Shareholders

53,000 Average Daily Share

Volume

Stock Price $6.08 on October 30, 2009

Stockholder Information

(“LBAI”)

16% Insider Ownership

25% Institutional

Ownership

3.28% Dividend Yield

Price / BV -

0.67

Price / TBV -

1.17

Book Value per Common Share -

$8.95

Tangible Book Value per Common Share -

$5.21

Stockholders’

Equity -

$269 million

Tangible Equity -

$180 million

Equity to Assets -

9.72%

$59 million TARP and Warrants

Shelf registration recently filed

Capital Position

as of September 30, 2009

New Jersey Marketplace

NJ is #1 based on population density

NJ is #1 in Median Household income

NJ is #4 in Per Capita Income

8th highest state in total deposits

Source: SNL Financial 2009

Attractive Demographics of

Marketplace

SOURCE: SNL FINANCIAL / ESRI

2009 Median household income:

Current Markets:

–

Morris, NJ ($104,797) (#7 in U.S.)

–

Bergen, NJ ($84,586)

–

Sussex, NJ ($84,284)

–

Warren, NJ ($75,500)

–

Passaic, NJ ($62,439)

–

Essex, NJ ($56,140)

Contiguous Markets:

–

Hunterdon, NJ ($110,147) (#4 in U.S.)

–

Somerset NJ ($102,357) (#6 in U.S.)

–

Rockland, NY ($93,080)

–

Orange, NY ($68,571)

SOURCE: SNL FINANCIAL / ESRI

(1) Data as of June 30, 2009

(2) Data as of 2008; Small businesses defined as those with less than 100 employees

County State Total Deposits # of Small

in Markets ($M) (1) Businesses (2)

Current counties of operation

Bergen

Essex

Morris

Passaic

Sussex

Warren

Total

$ 37,055

$ 19,900

$ 15,872

$ 9,594

$ 2,330

$ 2,244

$ 86,995

32,828

19,858

17,370

12,046

3,641

2,803

88,546

$ 22,184

$ 21,130

$ 15,917

$ 7,877

$ 8,062

$ 5,468

$ 3,254

$ 83,892

13,059

21,218

14,449

9,093

9,783

8,975

4,128

80,705

Contiguous counties

Grand Total $ 170,887 169,251

Expansion Strategy

We have the opportunity to take advantage of recent

consolidation activities in our target market area:

-Attract new customers seeking high service levels

-Attract

quality

employees

seeking

the

“community

bank”

model

Our target market has experienced 11 mergers over

the last two years where 25% of deposits ($39 billion)

have or will be “turned over”

(1)

Recent major acquisitions in our market area:

-Investors Bancorp / American Bancorp of NJ

-Banco

Santander

Sovereign

Bancorp

-Wells Fargo / Wachovia

-JP Morgan / Washington Mutual

-Valley National / Greater Community

-Toronto-Dominion Bank / Commerce Bank

-Provident Financial / First Morris Bank & Trust

-TD

Banknorth

Interchange

-Capital One /

North Fork

-TD

Banknorth

Hudson

United

Capitalize on Recent

Consolidation Activity

(1) Based on total deposits each target had in the respective counties

Experienced Management

Team

President & CEO

25 years experience

Hudson United,

TD Banknorth

Chief Operating Officer

25+ years experience

Chief Operations Officer

30 years experience

25+ years experience

Chief Financial Officer

Hudson United,

HSBC

35 years experience

Chief Lending Officer

Hudson United,

TD Banknorth

30 years experience

Chief Retail Officer

Sovereign

Chief Government/

Business Services

Officer

25+ years experience

Chief Credit Officer

Fleet Bank

Bank of New York

Total Assets

(Dollars in Millions)

Commercial Lending

Six NJ Lending offices

Legal lending limit -

$39m, House limit -

$26m

Only nine borrowers with over $10 million exposure

Average Commercial loan size approximately $500k

Centralized lending approval

C & I Lending

New Chief Lending Officer

Established specialized C&I Lending Teams

Integrated C&I Lenders into other lending teams

Relationship Banking

Lending

$1,964

$2,031

$1,881

$1,586

$1,307

Loan Growth

6% YTD 2009 and 13% in 2008 (ex leases)

(Dollars in millions)

Com’l

constr.

Multi-

family

Resid.

constr.

Mixed

Retail

Owner Occupied

Office

Other

Commercial Real Estate

Loans by Category

As of June 30, 2009

Consumer and

Residential Loans

In market portfolio

Consumer -

•

$252m Home Equity + $67m Other

•

4,600 Loans, 13 Non-Performing loans

Residential Mortgages -

•

$373m of 1-4 Family loans

•

3,000 Loans, 17 Non-Performing loans

Average FICO scores > 730

Acquired Company in 2000

Small Ticket (<$100k), 32 month average remaining life

Full Payout Leases

Industries -

Transportation (36%), Services (11%), Manufacturing

(8%), Construction (8%), Healthcare (7%)

Equipment -

Vehicles (45%), Machinery (8%), Medical (6%),

Office Equipment (6%) Construction (5%), Furniture (4%),

Geographic Dispersion -

nationwide; one-third in Tri-State Region

Credit Quality Challenges Developed in 2Q 2008

Leasing Business

Leasing Action Plan

Exited Nationwide leasing business May 2008

Leases decline $172m (55%) year to date to $139m

Sold two largest problem lease pools

7% of total loans at 9/30/2009 from 15% at 12/31/2008

Leases Outstanding

(Dollars in Millions)

$576 million (21% of Total Assets)

Primarily for liquidity purposes

Short agencies, MBS, Munis

NO CDOs, CLOs, auction rate bonds, etc.

NO Agency Preferreds, NO Pooled TRUPs

NO significant write downs

3.41% yield

2.9 year Weighted Average Life

2.54 year Effective Duration

Investment Securities

(September 30, 2009)

Deposits

total deposits ($m)

deposit mix

$1,797

$1,859

$1,988

$2,056

$2,144

2009 Deposit Initiatives

New Head of Retail Banking

New Head of Retail Sales

Outbound Call Center initiatives

Three new branches, two branch closures

Renewed DDA focus

Proactively managed deposit pricing metrics

Highlights -

Year to Date

Loan Growth 8.2% annualized (ex leases)

Deposits increased $88m (4%)

Core Deposits up 10% including 7% increase in DDA

3Q Net Interest Margin comparable with 2Q at 3.62%

3Q 2009

2009 YTD

Interest Income

$33.0m

$100.2m

Interest Expense

10.0

31.9

Net Interest Income

$23.0

$68.3

Provision

-4.7

-45.2

Fee Income

3.6

11.9

Expenses

-17.1

-53.3

Pretax

4.8

-18.3

Tax Expense

-2.8

10.8

Net Income pre TARP

$2.0

-$7.5

TARP

-0.9

-2.3

Net Income post TARP

$1.1

-$9.8

Net Income

Net Interest Margin

2007

2009

2008

Non-Performing Assets

as % of Total Assets

Non-Performing Assets

(September 30, 2009)

Leasing -

$5.6 million

Commercial -

$30.5 million

•

One $7.2 million commercial loan

•

Three other commercial loans of $6.9 million

Consumer -

$2.0 million

Mortgages -

$5.2 million

Total NPA -

$43.3 million

Past Due 90+ -

$2.3 million

September 30, 2009

Leasing

Core Bank

Total

Company

Loans (spot)

$139

$1,826

$1,965

Loan Loss Provision

$35.4

$9.8

$45.2

Charge-Offs, net

(Core

Bank

0.26%

Loans)

-$41.4

-$4.7

-$46.1

Non-Performing

Assets

(1.56% of Total Assets)

$5.6

$37.7

$43.3

Allowance/Total Loans

1.23%

Credit Metrics

Operating Expenses /

Average Assets

9/30/2009

12/31/2008

Well

Capitalized

Tier 1 Ratio

Total Risk Based

Capital Ratio

Leverage Ratio

Tangible Common

Equity Ratio

6 %

10%

10.24 %

12.80 %

14.04 %

11.52%

8.08%

9.46%

5.14%

4.63%

Capital Ratios

Tangible Equity /

Tangible Assets

Price / Tangible Book

Stock Price as of Sept. 30, 2009

Attractive market demographics

Growing deposit market share

One of the largest commercial banks in Northern NJ

Leasing issues addressed

Relatively low NPA’s

and Past Dues

Clean investment portfolio

Solid Core Bank performance

Stock price down from historical levels

LBAI Investment

Considerations

Financial Institutions (FISI)

Harleysville National (HNBC)

Hudson Valley Holding Corp. (HUVL)

Intervest

Bancshares (IBCA)

S & T Bancorp (STBA)

Sandy Spring Bancorp (SASR)

Smithtown Bancorp (SMTB)

Sterling Bancorp (STL)

Sun Bancorp (SNBC)

Tompkins Financial (TMP)