Acquisitions (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Estimated Fair Value of Acquired Assets and Liabilities

The following table summarizes the estimated fair value of the acquired assets and liabilities (in thousands).

Consideration Paid


Lakeland Bancorp stock issued	$	57,419
Cash Payment		6,460
Fair value of Somerset Hills stock options converted to Lakeland Bancorp stock options		1,603

Total Consideration Paid	$	65,482


Recognized amounts of identifiable assets and liabilities assumed at fair value
Cash and cash equivalents	$	80,359
Securities available for sale		1,737
Securities held to maturity		8,686
Federal Home Loan Bank stock		493
Loans and leases		243,888
Loans held for sale		2,532
Premises and equipment		5,214
Identifiable intangible assets		2,712
Accrued interest receivable and other assets		10,270
Deposits		(311,801	)
Other liabilities		(1,877	)

Total identifiable assets	$	42,213



Goodwill	$	23,269

Summary of Loans Acquired

The following is a summary of the loans acquired in the Somerset Hills acquisition as of the closing date.


(in thousands)	Acquired Credit Impaired Loans		Acquired Non-Credit Impaired Loans		Total Acquired Loans
Contractually required principal and interest at acquisition	$	4,507	$	352,148	$	356,655
Contractual cash flows not expected to be collected (non-accretable difference)		2,541		—		2,541

Expected cash flows at acquisition	$	1,966	$	352,148	$	354,114
Interest component of expected cash flows (accretable difference)		361		107,333		107,694

Fair value of acquired loans, including mortgages held for sale	$	1,605	$	244,815	$	246,420

Summary of Pro Forma Information

The pro forma information shown reflects adjustments related to certain purchase accounting fair value adjustments; amortization of core deposit and other intangibles; and related income tax effects.


(in thousands)	Actual from acquisition to September 30, 2013		Pro-forma September 30, 2013		Pro-forma September 30, 2012
Net interest income	$	3,534	$	81,331	$	80,352
Noninterest income		513		16,624		15,312
Noninterest expense		2,047		60,024		56,835
Net income		1,300		20,477		17,573
Earnings per share:
Fully diluted			$	0.57	$	0.54