10-Q

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark one)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 000-17820

LAKELAND BANCORP, INC.

(Exact name of registrant as specified in its charter)

New Jersey	22-2953275
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
250 Oak Ridge Road, Oak Ridge, New Jersey	07438
(Address of principal executive offices)	(Zip Code)

(973) 697-2000

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, any Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act: (Check one):

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	Smaller reporting Company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.):    Yes  ¨    No  x

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of April 29, 2016, there were 41,240,992 outstanding shares of Common Stock, no par value.

LAKELAND BANCORP, INC.

Form 10-Q Index

		PAGE
Part I Financial Information
Item 1.	Financial Statements:
	Consolidated Balance Sheets - March 31, 2016 (unaudited) and December 31, 2015		3
	Consolidated Statements of Income - Unaudited Three Months Ended March 31, 2016 and 2015		4
	Consolidated Statements of Comprehensive Income - Unaudited Three Months Ended March 31, 2016 and 2015		5
	Consolidated Statements of Changes in Stockholders’ Equity - Unaudited Three Months Ended March 31, 2016		6
	Consolidated Statements of Cash Flows - Unaudited Three Months Ended March 31, 2016 and 2015		7
	Notes to Consolidated Financial Statements (unaudited)		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		37
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		49
Item 4.	Controls and Procedures		50
Part II Other Information
Item 1.	Legal Proceedings		51
Item 1A.	Risk Factors		51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		51
Item 3.	Defaults Upon Senior Securities		51
Item 4.	Mine Safety Disclosures		51
Item 5.	Other Information		51
Item 6.	Exhibits		51
Signatures			52

The Securities and Exchange Commission maintains a web site which contains reports, proxy and information statements and other information relating to registrants that file electronically at the address: http://www.sec.gov.

2

Lakeland Bancorp, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

	March 31, 2016		December 31,
	(unaudited)		2015
	(dollars in thousands except share and per share amounts)
ASSETS:
Cash	$	188,414	$	113,894
Interest-bearing deposits due from banks		25,205		4,599
Total cash and cash equivalents		213,619		118,493
Investment securities available for sale, at fair value		441,147		442,349
Investment securities held to maturity; fair value of $118,357 at March 31, 2016 and $117,594 at December 31, 2015		115,796		116,740
Federal Home Loan Bank and other membership bank stock, at cost		16,193		14,087
Loans held for sale		1,150		1,233
Loans, net of deferred costs (fees)		3,366,372		2,965,200
Less: allowance for loan and lease losses		30,553		30,874
Net loans		3,335,819		2,934,326
Premises and equipment, net		49,929		35,881
Accrued interest receivable		10,658		9,208
Goodwill		125,443		109,974
Other identifiable intangible assets		2,891		1,545
Bank owned life insurance		65,769		65,361
Other assets		25,819		20,353
TOTAL ASSETS	$	4,404,233	$	3,869,550
LIABILITIES
Deposits:
Noninterest bearing	$	774,487	$	693,741
Savings and interest-bearing transaction accounts		2,204,356		1,958,510
Time deposits $250 thousand and under		348,825		270,623
Time deposits over $250 thousand		134,968		72,698
Total deposits		3,462,636		2,995,572
Federal funds purchased and securities sold under agreements to repurchase		128,841		151,234
Other borrowings		310,031		271,905
Subordinated debentures		31,238		31,238
Other liabilities		24,612		19,085
TOTAL LIABILITIES		3,957,358		3,469,034
STOCKHOLDERS’ EQUITY
Common stock, no par value; authorized shares, 70,000,000; issued 41,240,824 shares at March 31, 2016 and 37,906,481 shares at December 31, 2015		424,101		386,287
Retained earnings		17,662		13,079
Accumulated other comprehensive income		5,112		1,150
TOTAL STOCKHOLDERS’ EQUITY		446,875		400,516
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	4,404,233	$	3,869,550

The accompanying notes are an integral part of these consolidated financial statements.

3

Lakeland Bancorp, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

	For the Three Months Ended March 31,
	2016		2015
	(In thousands, except per share data)
INTEREST INCOME
Loans, leases and fees	$	34,121	$	27,896
Federal funds sold and interest-bearing deposits with banks		75		12
Taxable investment securities and other		2,962		2,674
Tax-exempt investment securities		413		410
TOTAL INTEREST INCOME		37,571		30,992
INTEREST EXPENSE
Deposits		2,205		1,283
Federal funds purchased and securities sold under agreements to repurchase		38		22
Other borrowings		1,478		1,169
TOTAL INTEREST EXPENSE		3,721		2,474
NET INTEREST INCOME		33,850		28,518
Provision for loan and lease losses		1,075		870
NET INTEREST INCOME AFTER
PROVISION FOR LOAN AND LEASE LOSSES		32,775		27,648
NONINTEREST INCOME
Service charges on deposit accounts		2,442		2,340
Commissions and fees		979		1,307
Gains on sales of investment securities		370		—
Gains on sales of loans		420		265
Income on bank owned life insurance		408		699
Other income		248		127
TOTAL NONINTEREST INCOME		4,867		4,738
NONINTEREST EXPENSE
Salaries and employee benefits		14,085		11,750
Net occupancy expense		2,688		2,548
Furniture and equipment		1,946		1,656
Stationery, supplies and postage		443		365
Marketing expense		309		240
FDIC insurance expense		590		518
Data processing expense		520		335
Telecommunications expense		424		345
ATM and debit card expense		346		342
Expenses on other real estate owned and other repossessed assets		39		(8	)
Merger related expenses		1,721		—
Core deposit intangible amortization		167		111
Other expenses		2,146		1,840
TOTAL NONINTEREST EXPENSE		25,424		20,042
Income before provision for income taxes		12,218		12,344
Income tax expense		4,110		4,014
NET INCOME	$	8,108	$	8,330
PER SHARE OF COMMON STOCK
Basic earnings	$	0.20	$	0.22
Diluted earnings	$	0.20	$	0.22
Dividends	$	0.085	$	0.075

The accompanying notes are an integral part of these consolidated financial statements.

4

Lakeland Bancorp, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME-UNAUDITED

	For the Three Months Ended March 31,
	2016			2015
	(in thousands)
NET INCOME	$	8,108		$	8,330
OTHER COMPREHENSIVE INCOME, NET OF TAX:
Unrealized securities gains during period		4,157			2,675
Reclassification for gains included in net income		(233	)		—
Change in pension liability, net		38			5
Other Comprehensive Income		3,962			2,680
TOTAL COMPREHENSIVE INCOME	$	12,070		$	11,010

The accompanying notes are an integral part of these consolidated financial statements.

5

Lakeland Bancorp, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - UNAUDITED

Three Months Ended March 31, 2016

							Accumulated
							Other
	Common			Retained			Comprehensive
	Stock			Earnings			Income		Total
	(dollars in thousands)
BALANCE January 1, 2016	$	386,287		$	13,079		$	1,150	$	400,516
Net Income		—			8,108			—		8,108
Other comprehensive income, net of tax		—			—			3,962		3,962
Stock based compensation		754			—			—		754
Retirement of restricted stock		(161	)		—			—		(161	)
Issuance of stock for Pascack acquisition		37,221			—			—		37,221
Cash dividends, common stock		—			(3,525	)		—		(3,525	)
BALANCE March 31, 2016	$	424,101		$	17,662		$	5,112	$	446,875

The accompanying notes are an integral part of these consolidated financial statements.

6

Lakeland Bancorp, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

	For the Three Months Ended
	March 31,
	2016			2015
	(dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	8,108		$	8,330
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization of premiums, discounts and deferred loan fees and costs		757			874
Depreciation and amortization		878			849
Amortization of intangible assets		167			111
Provision for loan and lease losses		1,075			870
Loans originated for sale		(14,786	)		(11,976	)
Proceeds from sales of loans		15,289			11,235
Gains on sales of securities		(370	)		—
Gains on proceeds of bank owned life insurance		—			(332	)
Gains on sales of loans held for sale		(420	)		(265	)
Gains on other real estate and other repossessed assets		(9	)		(94	)
Losses on sales of premises and equipment		66			3
Stock-based compensation		754			567
Increase in other assets		(3,138	)		(1,954	)
(Decrease) increase in other liabilities		(912	)		410
NET CASH PROVIDED BY OPERATING ACTIVITIES		7,459			8,628
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash acquired in acquisition		40,942			—
Proceeds from repayments on and maturity of securities:
Available for sale		22,455			19,309
Held to maturity		9,053			4,162
Proceeds from sales of securities
Available for sale		15,654			—
Purchase of securities:
Available for sale		(26,843	)		(31,706	)
Held to maturity		(8,218	)		(12,100	)
Purchase of bank owned life insurance		—			(4,078	)
Proceeds from bank owned life insurance policy		—			772
Net decrease (increase) in Federal Home Loan Bank Stock		856			(910	)
Net increase in loans and leases		(83,387	)		(37,298	)
Proceeds from sales of other real estate and repossessed assets		463			559
Proceeds from dispositions and sales of premises and equipment		10			—
Capital expenditures		(977	)		(947	)
NET CASH USED IN INVESTING ACTIVITIES		(29,992	)		(62,237	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits		162,738			51,783
(Decrease) increase in federal funds purchased and securities sold under agreements to repurchase		(22,393	)		8,416
Proceeds from other borrowings		—			20,230
Repayments of other borrowings		(19,000	)		—
Excess tax benefits		—			58
Exercise of stock options		—			93
Retirement of restricted stock		(161	)		(230	)
Dividends paid		(3,525	)		(2,852	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		117,659			77,498
Net increase in cash and cash equivalents		95,126			23,889
Cash and cash equivalents, beginning of period		118,493			109,316
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	213,619		$	133,205

The accompanying notes are an integral part of these consolidated financial statements.

7

Notes to Consolidated Financial Statements – (Unaudited)

Note 1. Significant Accounting Policies

Basis of Presentation.

This quarterly report presents the consolidated financial statements of Lakeland Bancorp, Inc. (the Company) and its subsidiary, Lakeland Bank (“Lakeland” or “Lakeland Bank”). The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (U.S. GAAP) and predominant practices within the banking industry.

The Company’s unaudited interim financial statements reflect all adjustments, such as normal recurring accruals that are, in the opinion of management, necessary for the fair presentation of the results of the interim periods. The results of operations for the three months ended March 31, 2016 do not necessarily indicate the results that the Company will achieve for all of 2016. You should read these interim financial statements in conjunction with the audited consolidated financial statements and accompanying notes that are presented in the Lakeland Bancorp, Inc. Annual Report on Form 10-K for the year ended December 31, 2015.

On January 7, 2016, the Company completed its acquisition of Pascack Bancorp, Inc. (“Pascack”). For more information, see Note 2 below.

The financial information in this quarterly report has been prepared in accordance with the Company’s customary accounting practices. Certain information and footnote disclosures required under U.S. GAAP have been condensed or omitted, as permitted by rules and regulations of the Securities and Exchange Commission.

Note 2. Acquisitions

Harmony Bank

Lakeland Bancorp, Lakeland Bank and Harmony Bank signed a merger agreement on February 17, 2016, pursuant to which Harmony Bank will be merged with and into Lakeland Bank, with Lakeland Bank as the surviving bank. The merger agreement provides that shareholders of Harmony Bank will receive 1.25 shares of Lakeland Bancorp common stock for each share of Harmony Bank common stock that they own at the effective time of the merger. Lakeland Bancorp expects to issue an aggregate of approximately 3.0 million shares of its common stock in the merger and will cash out Harmony Bank options that remain outstanding at the effective time of the merger. The closing of the merger is subject to receipt of approvals from regulators, approval of the merger by Harmony Bank’s shareholders and other customary conditions. Harmony Bank, a New Jersey state-chartered commercial bank that focuses on serving consumers and small-to-medium-size businesses, is headquartered in Jackson, New Jersey, with additional branch offices in Lakewood and Toms River, New Jersey. As of December 31, 2015, Harmony Bank had total assets, total loans, total deposits and total stockholders’ equity of $295 million, $241 million, $257 million and $28 million, respectively.

Pascack Bancorp

On January 7, 2016, the Company completed its acquisition of Pascack Bancorp, Inc. (“Pascack”), a bank holding company headquartered in Waldwick, New Jersey. Pascack was the parent of Pascack Community Bank. This acquisition enables the Company to broaden its presence in Bergen and Essex counties. Effective as of the close of business on January 7, 2016, Pascack merged into the Company, and Pascack Community Bank merged into Lakeland Bank. The Merger Agreement provided that the shareholders of Pascack would receive, at their election, for each outstanding share of Pascack common stock that they own at the effective time of the merger, either 0.9576 shares of Lakeland Bancorp common stock or $11.35 in cash, subject to proration as described in the Merger Agreement, so that 90% of the aggregate merger consideration was shares of Lakeland Bancorp common stock and 10% was cash. Lakeland Bancorp issued an aggregate of 3,314,284 shares of its common stock in the merger and paid approximately $4.4 million in cash excluding the cash paid in connection with the cancellation of Pascack stock options. Outstanding Pascack stock options were paid out in cash at the difference between $11.35 and an average strike price of $7.37 for a total cash payment of $122,000. As of January 7, 2016, Pascack had total assets, total loans, total deposits and total stockholders’ equity of $390 million, $320 million, $303 million and $27 million, respectively.

8

The acquisition was accounted for under the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at their estimated fair values as of the acquisition date. Pascack’s assets were recorded at their preliminary estimated fair values as of January 7, 2016 and Pascack’s results of operations will be included in the Company’s Consolidated Statements of Income from that date forward.

The assets acquired and liabilities assumed in the acquisition were recorded at their estimated fair values based on management’s best estimates using information available at the date of the acquisition, including the use of a third party valuation specialist. The fair values are preliminary estimates and subject to adjustment for up to one year after the closing date of the acquisition. The following table summarizes the estimated fair value of the acquired assets and liabilities (in thousands).

Consideration Paid
Lakeland Bancorp stock issued	$	37,221
Cash Payment		4,367
Fair value of Pascack stock options converted to Lakeland Bancorp stock options		122
Total Consideration Paid	$	41,710
Recognized amounts of identifiable assets and liabilities assumed at fair value
Cash and cash equivalents	$	45,431
Securities held to maturity		3,925
Federal Home Loan Bank stock		2,962
Loans and leases		319,575
Premises and equipment		14,438
Identifiable intangible assets		1,514
Accrued interest receivable and other assets		6,672
Deposits		(304,466	)
Other borrowings		(57,308	)
Other liabilities		(6,502	)
Total identifiable assets	$	26,241
Goodwill	$	15,469

Loans acquired in the Pascack acquisition were recorded at fair value and subsequently accounted for in accordance with ASC Topic 310, and there was no carryover related allowance for loan and lease losses. The fair values of loans acquired from Pascack were estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted for estimated future credit losses and the rate of prepayments. Projected cash flows were then discounted to present value using a risk-adjusted market rate for similar loans.

9

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

	Acquired		Acquired
	Credit		Non-Credit		Total
	Impaired		Impaired		Acquired
(in thousands)	Loans		Loans		Loans
Contractually required principal and interest at acquisition	$	4,932	$	442,401	$	447,333
Contractual cash flows not expected to be collected (non-accretable difference)		4,030		—		4,030
Expected cash flows at acquisition	$	902	$	442,401	$	443,303
Interest component of expected cash flows (accretable difference)		85		123,643		123,728
Fair value of acquired loans	$	817	$	318,758	$	319,575

The core deposit intangible totaled $1.5 million and is being estimated over its estimated useful life of approximately 10 years using an accelerated method. The goodwill will be evaluated annually for impairment. The goodwill is not deductible for tax purposes.

The fair values of deposit liabilities with no stated maturities such as checking, money market and savings accounts, were assumed to equal the carrying amounts since these deposits are payable on demand. The fair values of certificates of deposits and IRAs represent the present value of contractual cash flows discounted at market rates for similar certificates of deposit.

Direct costs related to the acquisition were expensed as incurred. During the three months ended March 31, 2016, the Company incurred $1.7 million of merger and acquisition integration-related expenses, which have been separately stated in the Company’s Consolidated Statements of Income.

Supplemental Pro Forma Financial Information

The following table presents financial information regarding the former Pascack operations included in our Consolidated Statements of Income from the date of the acquisition (January 7, 2016) through March 31, 2016 under the column “Actual from acquisition date through March 31, 2016.” In addition, the table provides unaudited condensed pro forma financial information assuming that the Pascack acquisition had been completed as of January 1, 2016, for the three months ended March 31, 2016 and as of January 1, 2015 for the three months ended March 31, 2015. The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited proforma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings or the impact of conforming certain accounting policies of the acquired company to the Company’s policies that may have occurred as a result of the integration and consolidation of Pascack’s operations. 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.

	Actual from
	acquisition to		Pro-forma		Pro-forma
(in thousands)	March 31, 2016		March 31, 2016		March 31, 2015
Net interest income	$	3,098	$	34,107	$	32,116
Provision for loan losses		—		1,075		870
Noninterest income		102		4,871		4,866
Noninterest expense		1,653		23,948		22,670
Net income		1,037		9,350		8,955
Earnings per share:
Fully diluted			$	0.23	$	0.22

10

Note 3. Share-Based Compensation

The Company grants stock options, restricted stock and restricted stock units (RSUs) under the 2009 Equity Compensation Program. Share-based compensation expense of $754,000 and $567,000 was recognized for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there was unrecognized compensation cost of $324,000 related to unvested restricted stock; that cost is expected to be recognized over a weighted average period of approximately 1.2 years. Unrecognized compensation expense related to unvested stock options was approximately $41,000 as of March 31, 2016 and is expected to be recognized over a period of 1.2 years. Unrecognized compensation expense related to RSUs was approximately $1.9 million as of March 31, 2016, and that cost is expected to be recognized over a period of 1.2 years.

In the first three months of 2016, the Company granted 23,952 shares of restricted stock to non-employee directors at a grant date fair value of $10.02 per share under the 2009 Equity Compensation Program. The restricted stock vests one year from the date it was granted. Compensation expense on this restricted stock is expected to be $240,000 over a one year period.

In the first three months of 2016, the Company granted 139,726 RSUs at a weighted average grant date fair value of $10.04 per share under the Company’s 2009 Equity Compensation Program. These units vest within a range of two to three years. A portion of these RSUs will vest subject to certain performance conditions in the restricted stock unit agreement. There are also certain provisions in the compensation program which state that if a holder of the RSUs reaches a certain age and years of service, the person has effectively earned a portion of the RSUs at that time. Compensation expense on the restricted stock units issued in the first quarter of 2016 is expected to average approximately $468,000 per year over a three year period. In the first three months of 2015, the Company granted 120,509 RSUs at a weighted average grant date fair value of $11.01 per share under the Company’s 2009 Equity Compensation Program. Compensation expense on these restricted stock units is expected to average approximately $442,000 per year over a three year period.

There were no grants of stock options in the first three months of 2016 or 2015.

Option activity under the Company’s stock option plans is as follows:

					Weighted
					average
			Weighted		remaining
			average		contractual
	Number of		exercise		term		Aggregate
	shares		price		( in years)		intrinsic value
Outstanding, January 1, 2016		175,892	$	8.38			$	602,236
Granted		—
Exercised		—
Forfeited		—
Expired		—
Outstanding, March 31, 2016		175,892	$	8.38		4.78	$	313,773
Options exercisable at March 31, 2016		154,891	$	8.22		4.45	$	298,471

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the first three months of 2016 and the exercise price, multiplied by the number of in-the-money options).

There were no stock options exercised during the first three months of 2016. The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2015 was $50,000. Exercise of stock options during the first three months of 2015 resulted in cash receipts of $93,000.

11

Information regarding the Company’s restricted stock and changes during the three months ended March 31, 2016 is as follows:

				Weighted
	Number of			average
	shares			price
Outstanding, January 1, 2016		73,500		$	9.33
Granted		23,952			10.02
Vested		(54,360	)		9.33
Forfeited		—			—
Outstanding, March 31, 2016		43,092		$	9.71

Information regarding the Company’s RSUs and changes during the three months ended March 31, 2016 is as follows:

				Weighted
	Number of			average
	shares			price
Outstanding, January 1, 2016		200,910		$	10.87
Granted		139,726			10.04
Vested		(66,748	)		10.28
Forfeited		(763	)		10.80
Outstanding, March 31, 2016		273,125		$	10.59

Note 4. Comprehensive Income

The components of other comprehensive income are as follows:

	March 31, 2016									March 31, 2015
	Before			Tax Benefit			Net of			Before		Tax Benefit			Net of
For the quarter ended:	tax amount			(Expense)			tax amount			tax amount		(Expense)			tax amount
	(in thousands)									(in thousands)
Net unrealized gains on available for sale securities
Net unrealized holding gains arising during period	$	6,563		($	2,406	)	$	4,157		$	4,225	($	1,550	)	$	2,675
Reclassification adjustment for net gains arising during the period		(370	)		137			(233	)		—		—			—
Net unrealized gains	$	6,193		($	2,269	)	$	3,924		$	4,225	($	1,550	)	$	2,675
Change in minimum pension liability		64			(26	)		38			8		(3	)		5
Other comprehensive income, net	$	6,257		($	2,295	)	$	3,962		$	4,233	($	1,553	)	$	2,680

12

The following table shows the changes in the balances of each of the components of other comprehensive income for the periods presented (in thousands):

Changes in Accumulated Other Comprehensive Income by Component (a)

	For the Three Months Ended									For the Three Months Ended
	March 31, 2016									March 31, 2015
	Unrealized									Unrealized Gains
	Gains on									(Losses) on
	Available-for-sale									Available-for-sale
	Securities			Pension Items			Total			Securities		Pension Items			Total
	(in thousands)
Beginning Balance	$	1,154		($	4	)	$	1,150		$	1,531	($	8	)	$	1,523
Other comprehensive income before classifications		4,157			38			4,195			2,675		5			2,680
Amounts reclassified from accumulated other comprehensive income		(233	)		—			(233	)		—		—			—
Net current period other comprehensive income		3,924			38			3,962			2,675		5			2,680
Ending balance	$	5,078		$	34		$	5,112		$	4,206	($	3	)	$	4,203

(a) all amounts are net of tax.

13

Note 5. Statement of Cash Flow Information, Supplemental Information

	For the Three Months Ended
	March 31,
	2016			2015
	(in thousands)
Supplemental schedule of noncash investing and financing activities:
Cash paid during the period for income taxes	$	4,575		$	4,706
Cash paid during the period for interest		3,569			2,403
Transfer of loans and leases into other repossessed assets and other real estate owned		263			266
Acquisition of Pascack:
Non-cash assets acquired:
Federal Home Loan Bank stock		2,962			—
Investment securities held for maturity		3,925			—
Loans, including loans held for sale		319,575			—
Goodwill and other intangible assets, net		16,983			—
Other assets		21,110			—
Total non-cash assets acquired		364,555			—
Liabilities assumed:
Deposits		(304,466	)		—
Other borrowings		(57,308	)		—
Other liabilities		(6,502	)		—
Total liabilities assumed		(368,276	)		—
Common stock issued and fair value of stock options converted to Lakeland Bancorp stock options		37,221			—

14

Note 6. Earnings Per Share

The following schedule shows the Company’s earnings per share for the periods presented:

	For the Three Months Ended
	March 31,
(In thousands, except per share data)	2016		2015
Net income available to common shareholders	$	8,108	$	8,330
Less: earnings allocated to participating securities		58		50
Net income allocated to common shareholders	$	8,050	$	8,280
Weighted average number of common shares outstanding - basic		40,931		37,800
Share-based plans		161		137
Weighted average number of common shares - diluted		41,092		37,937
Basic earnings per share	$	0.20	$	0.22
Diluted earnings per share	$	0.20	$	0.22

There were no antidilutive options to purchase common stock to be excluded from the computation for the three months ended March 31, 2016.

Options to purchase 113,023 shares of common stock at a weighted average price of $12.06 per share were outstanding and were not included in the computations of diluted earnings per share for the three months ended March 31, 2015 because the exercise price was greater than the average market price.

15

Note 7. Investment Securities

AVAILABLE FOR SALE	March 31, 2016									December 31, 2015
			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
	(in thousands)									(in thousands)
U.S. treasury and U.S. government agencies	$	85,624	$	1,320	$	—		$	86,944	$	97,617	$	190	$	(674	)	$	97,133
Mortgage-backed securities, residential		284,449		3,825		(473	)		287,801		280,018		1,717		(2,283	)		279,452
Mortgage-backed securities, multifamily		10,235		217		—			10,452		10,249		—		(129	)		10,120
Obligations of states and political subdivisions		35,734		1,118		(25	)		36,827		35,639		910		(51	)		36,498
Other debt securities		500		1		—			501		498		3		—			501
Equity securities		16,634		2,260		(272	)		18,622		16,550		2,393		(298	)		18,645
	$	433,176	$	8,741	$	(770	)	$	441,147	$	440,571	$	5,213	$	(3,435	)	$	442,349
HELD TO MATURITY	March 31, 2016									December 31, 2015
			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
	(in thousands)									(in thousands)
U.S. government agencies	$	28,519	$	852	$	—		$	29,371	$	30,477	$	289	$	(94	)	$	30,672
Mortgage-backed securities, residential		36,976		652		(79	)		37,549		36,466		411		(426	)		36,451
Mortgage-backed securities, multifamily		2,134		7		(5	)		2,136		2,159		—		(60	)		2,099
Obligations of states and political subdivisions		46,148		1,067		(6	)		47,209		45,617		809		(156	)		46,270
Other debt securities		2,019		73		—			2,092		2,021		81		—			2,102
	$	115,796	$	2,651	$	(90	)	$	118,357	$	116,740	$	1,590	$	(736	)	$	117,594

16

The following table shows investment securities by stated maturity. Securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay, and are, therefore, classified separately with no specific maturity date (in thousands):

	March 31, 2016
	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	3,438	$	3,458	$	8,393	$	8,393
Due after one year through five years		73,180		74,520		18,505		18,958
Due after five years through ten years		40,364		41,317		43,365		44,716
Due after ten years		4,876		4,977		6,423		6,605
		121,858		124,272		76,686		78,672
Mortgage-backed securities		294,684		298,253		39,110		39,685
Equity securities		16,634		18,622		—		—
Total securities	$	433,176	$	441,147	$	115,796	$	118,357

The following table shows proceeds from sales of securities and gross gains on sales of securities for the periods indicated (in thousands):

	For the Three Months Ended
	March 31,
	2016		2015
Sale proceeds	$	15,654	$	—
Gross gains		370		—

There were no losses on sales of securities or other-than-temporary impairments for the three months ended March 31, 2016 or 2015.

Gains or losses on sales of investment securities are based on the net proceeds and the adjusted carrying amount of the securities sold using the specific identification method.

Securities with a carrying value of approximately $361.7 million and $347.7 million at March 31, 2016 and December 31, 2015, respectively, were pledged to secure public deposits and for other purposes required by applicable laws and regulations.

17

The following table indicates the length of time individual securities have been in a continuous unrealized loss position at March 31, 2016 and December 31, 2015:

March 31, 2016	Less than 12 months				12 months or longer				Total
			Unrealized				Unrealized		Number of				Unrealized
AVAILABLE FOR SALE	Fair value		Losses		Fair value		Losses		securities		Fair value		Losses
					(dollars in thousands)
Mortgage-backed securities, residential	$	27,362	$	105	$	54,644	$	368		27	$	82,006	$	473
Obligations of states and political subdivisions		785		4		1,179		21		2		1,964		25
Equity securities		711		49		4,731		223		4		5,442		272
	$	28,858	$	158	$	60,554	$	612		33	$	89,412	$	770
HELD TO MATURITY
Mortgage-backed securities, residential	$	2,592	$	3	$	6,467	$	76		5	$	9,059	$	79
Mortgage-backed securities, multifamily		—		—		903		5		1		903		5
Obligations of states and political subdivisions		7,214		4		752		2		8		7,966		6
	$	9,806	$	7	$	8,122	$	83		14	$	17,928	$	90
December 31, 2015	Less than 12 months				12 months or longer				Total
			Unrealized				Unrealized		Number of				Unrealized
AVAILABLE FOR SALE	Fair value		Losses		Fair value		Losses		securities		Fair value		Losses
					(dollars in thousands)
U.S. treasury and U.S. government agencies	$	80,192	$	674	$	—	$	—		16	$	80,192	$	674
Mortgage-backed securities, residential		103,749		1,043		50,095		1,240		50		153,844		2,283
Mortgage-backed securities, multifamily		10,120		129		—		—		2		10,120		129
Obligations of states and political subdivisions		2,051		4		1,466		47		7		3,517		51
Equity securities		247		24		4,643		274		3		4,890		298
	$	196,359	$	1,874	$	56,204	$	1,561		78	$	252,563	$	3,435
HELD TO MATURITY
U.S. government agencies	$	15,683	$	94	$	—	$	—		3	$	15,683	$	94
Mortgage-backed securities, residential		20,283		262		6,687		164		11		26,970		426
Mortgage-backed securities, multifamily		1,223		18		876		42		2		2,099		60
Obligations of states and political subdivisions		9,181		149		2,043		7		15		11,224		156
	$	46,370	$	523	$	9,606	$	213		31	$	55,976	$	736

18

Management has evaluated the securities in the above table and has concluded that none of the securities are other-than-temporarily impaired. The cause of the fair values being below cost is due to interest rate movements and is deemed temporary. All investment securities are evaluated on a periodic basis to identify any factors that would require a further analysis. In evaluating the Company’s securities, management considers the following items:

• The Company’s ability and intent to hold the securities, including an evaluation of the need to sell the security to meet certain liquidity measures, or whether the Company has sufficient levels of cash to hold the identified security in order to recover the entire amortized cost of the security;

• The financial condition of the underlying issuer;

• The credit ratings of the underlying issuer and if any changes in the credit rating have occurred;

• The length of time the security’s fair value has been less than amortized cost; and

• Adverse conditions related to the security or its issuer if the issuer has failed to make scheduled payments or other factors.

If the above factors indicate that an additional analysis is required, management will perform and consider the results of a discounted cash flow analysis.

As of March 31, 2016, the equity securities include investments in other financial institutions for market appreciation purposes. Those equities had a purchase price of $2.7 million and a market value of $4.8 million as of March 31, 2016.

As of March 31, 2016, equity securities also included $13.8 million in investment funds that do not have a quoted market price but use net asset value per share or its equivalent to measure fair value.

The funds include $2.9 million in funds that are primarily invested in community development loans that are guaranteed by the Small Business Administration (SBA). Because the funds are primarily guaranteed by the federal government there are minimal changes in market value between accounting periods. These funds can be redeemed with 60 days notice at the net asset value less unpaid management fees with the approval of the fund manager. As of March 31, 2016, the net amortized cost equaled the market value of the investment. There are no unfunded commitments related to this investment.

The funds also include $10.9 million in funds that are invested in government guaranteed loans, mortgage-backed securities, small business loans and other instruments supporting affordable housing and economic development. The Company may redeem these funds at the net asset value calculated at the end of the current business day less any unpaid management fees. As of March 31, 2016, the amortized cost of these securities was $11.0 million and the fair value was $10.9 million. There are no restrictions on redemptions for the holdings in these investments other than the notice required by the fund manager. There are no unfunded commitments related to this investment.

Note 8. Loans, Leases and Other Real Estate.

The following sets forth the composition of Lakeland’s loan and lease portfolio as of March 31, 2016 and December 31, 2015:

	March 31,			December 31,
	2016			2015
	(in thousands)
Commercial, secured by real estate	$	2,118,682		$	1,761,589
Commercial, industrial and other		332,097			307,044
Leases		60,925			56,660
Real estate - residential mortgage		392,387			389,692
Real estate - construction		124,653			118,070
Home equity and consumer		340,217			334,891
Total loans		3,368,961			2,967,946
Less: deferred fees		(2,589	)		(2,746	)
Loans, net of deferred fees	$	3,366,372		$	2,965,200

19

At March 31, 2016 and December 31, 2015, home equity and consumer loans included overdraft deposit balances of $460,000 and $705,000, respectively. At March 31, 2016 and December 31, 2015, the Company had $842.7 million and $738.7 million in loans pledged for actual and potential borrowings at the Federal Home Loan Bank of New York (FHLB).

The carrying value of acquired loans acquired and accounted for in accordance with ASC Subtopic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” was $0.8 million at March 31, 2016, which was substantially the same as the balance at the Pascack acquisition date of January 7, 2016. Under ASC Subtopic 310-30, loans may be aggregated and accounted for as pools of loans if the loans being aggregated have common risk characteristics. The Company elected to account for the loans with evidence of credit deterioration individually rather than aggregate them into pools. The difference between the undiscounted cash flows expected at acquisition and the investment in the acquired loans, or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of each loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment, as a loss accrual or as a valuation allowance.

Increases in expected cash flows subsequent to the acquisition are recognized prospectively through an adjustment of the yield on the loans over the remaining life, while decreases in expected cash flows are recognized as impairments through a loss provision and an increase in the allowance for loan and lease losses. Valuation allowances (recognized in the allowance for loan and lease losses) on these impaired loans reflect only losses incurred after the acquisition (representing all cash flows that were expected at acquisition but currently are not expected to be received).

There were no material increases or decreases in the expected cash flows between January 7, 2016 and March 31, 2016. The Company recognized $16,000 of interest income on the credit impaired loans acquired.

Non-Performing Assets and Past Due Loans

The following schedule sets forth certain information regarding the Company’s non-performing assets and its accruing troubled debt restructurings:

	March 31,		December 31,
(in thousands)	2016		2015
Commercial, secured by real estate	$	11,943	$	10,446
Commercial, industrial and other		1,163		103
Leases		282		316
Real estate - residential mortgage		8,330		8,664
Home equity and consumer		3,249		3,167
Total non-accrual loans and leases	$	24,967	$	22,696
Other real estate and other repossessed assets		792		983
TOTAL NON-PERFORMING ASSETS	$	25,759	$	23,679
Troubled debt restructurings, still accruing	$	10,545	$	10,108

Non-accrual loans included $2.1 million and $2.5 million of troubled debt restructurings as of March 31, 2016 and December 31, 2015, respectively. As of March 31, 2016 and December 31, 2015, the Company had $7.1 million and $7.9 million, respectively, in residential mortgages and consumer home equity loans that were in the process of foreclosure.

20

An age analysis of past due loans, segregated by class of loans as of March 31, 2016 and December 31, 2015, is as follows:

													Recorded
					Greater						Total		Investment greater
	30-59 Days		60-89 Days		Than		Total				Loans		than 89 Days and
	Past Due		Past Due		89 Days		Past Due		Current		and Leases		still accruing
	(in thousands)
March 31, 2016
Commercial, secured by real estate	$	5,274	$	3,450	$	10,514	$	19,238	$	2,099,444	$	2,118,682	$	—
Commercial, industrial and other		92		—		251		343		331,754		332,097		—
Leases		161		85		282		528		60,397		60,925		—
Real estate - residential mortgage		1,365		215		8,329		9,909		382,478		392,387		—
Real estate - construction		—		—		—		—		124,653		124,653		—
Home equity and consumer		1,220		171		2,620		4,011		336,206		340,217		101
	$	8,112	$	3,921	$	21,996	$	34,029	$	3,334,932	$	3,368,961	$	101
December 31, 2015
Commercial, secured by real estate	$	1,465	$	693	$	7,853	$	10,011	$	1,751,578	$	1,761,589	$	—
Commercial, industrial and other		205		—		103		308		306,736		307,044		—
Leases		62		26		316		404		56,256		56,660		—
Real estate - residential mortgage		1,361		725		7,472		9,558		380,134		389,692		—
Real estate - construction		—		—		—		—		118,070		118,070		—
Home equity and consumer		876		141		3,498		4,515		330,376		334,891		331
	$	3,969	$	1,585	$	19,242	$	24,796	$	2,943,150	$	2,967,946	$	331

21

Impaired Loans

The Company defines impaired loans as all non-accrual loans and leases with recorded investments of $500,000 or greater. Impaired loans also includes all loans modified in troubled debt restructurings. Impaired loans as of March 31, 2016, March 31, 2015 and December 31, 2015 are as follows:

			Contractual
	Recorded		Unpaid				Interest		Average
	Investment in		Principal		Specific		Income		Investment in
March 31, 2016	Impaired loans		Balance		Allowance		Recognized		Impaired loans
	(in thousands)
Loans without specific allowance:
Commercial, secured by real estate	$	13,636	$	14,721	$	—	$	61	$	13,437
Commercial, industrial and other		773		793		—		1		237
Leases		—		—		—		—		—
Real estate - residential mortgage		2,187		2,194		—		4		2,187
Real estate - construction		—		—		—		—		—
Home equity and consumer		552		552		—		—		552
Loans with specific allowance:
Commercial, secured by real estate		6,262		6,339		488		69		6,273
Commercial, industrial and other		991		991		41		11		991
Leases		3		3		—		—		3
Real estate - residential mortgage		824		716		63		9		826
Real estate - construction		375		375		4		4		375
Home equity and consumer		1,271		1,271		105		14		1,174
Total:
Commercial, secured by real estate	$	19,898	$	21,060	$	488	$	130	$	19,710
Commercial, industrial and other		1,764		1,784		41		12		1,228
Leases		3		3		—		—		3
Real estate - residential mortgage		3,011		2,910		63		13		3,013
Real estate - construction		375		375		4		4		375
Home equity and consumer		1,823		1,823		105		14		1,726
	$	26,874	$	27,955	$	701	$	173	$	26,055

22

			Contractual
	Recorded		Unpaid				Interest		Average
	Investment in		Principal		Specific		Income		Investment in
March 31, 2015	Impaired loans		Balance		Allowance		Recognized		Impaired loans
	(in thousands)
Loans without specific allowance:
Commercial, secured by real estate	$	12,802	$	15,058	$	—	$	99	$	13,177
Commercial, industrial and other		1,177		1,281		—		3		233
Leases		—		—		—		—		—
Real estate - residential mortgage		2,160		2,160		—		4		2,162
Real estate - construction		169		169		—		—		178
Home equity and consumer		765		765		—		—		741
Loans with specific allowance:
Commercial, secured by real estate		5,563		5,695		351		58		5,449
Commercial, industrial and other		684		1,191		5		5		695
Leases		14		14		14		—		—
Real estate - residential mortgage		753		753		72		9		753
Real estate - construction		394		394		2		1		92
Home equity and consumer		1,331		1,331		1,014		16		1,243
Total:
Commercial, secured by real estate	$	18,365	$	20,753	$	351	$	157	$	18,626
Commercial, industrial and other		1,861		2,472		5		8		928
Leases		14		14		14		—		—
Real estate - residential mortgage		2,913		2,913		72		13		2,915
Real estate - construction		563		563		2		1		270
Home equity and consumer		2,096		2,096		1,014		16		1,984
	$	25,812	$	28,811	$	1,458	$	195	$	24,723

23

			Contractual
	Recorded		Unpaid				Interest		Average
	Investment in		Principal		Specific		Income		Investment in
December 31, 2015	Impaired loans		Balance		Allowance		Recognized		Impaired loans
	(in thousands)
Loans without specific allowance:
Commercial, secured by real estate	$	14,065	$	14,712	$	—	$	344	$	12,928
Commercial, industrial and other		209		887		—		14		749
Leases		—		—		—		—		—
Real estate - residential mortgage		2,195		2,242		—		—		2,096
Real estate - construction		—		—		—		—		94
Home equity and consumer		574		575		—		5		762
Loans with specific allowance:
Commercial, secured by real estate		5,721		5,918		598		271		6,249
Commercial, industrial and other		1,023		1,023		77		32		717
Leases		6		6		1		—		—
Real estate - residential mortgage		832		865		73		37		840
Real estate - construction		380		380		21		13		308
Home equity and consumer		1,001		1,013		73		54		1,006
Total:
Commercial, secured by real estate	$	19,786	$	20,630	$	598	$	615	$	19,177
Commercial, industrial and other		1,232		1,910		77		46		1,466
Leases		6		6		1		—		—
Real estate - residential mortgage		3,027		3,107		73		37		2,936
Real estate - construction		380		380		21		13		402
Home equity and consumer		1,575		1,588		73		59		1,768
	$	26,006	$	27,621	$	843	$	770	$	25,749

Interest that would have been accrued on impaired loans during the first three months of 2016 and 2015 had the loans been performing under original terms would have been $450,000 and $420,000, respectively. Interest that would have accrued for the year ended December 31, 2015 was $1.6 million.

Credit Quality Indicators

The class of loans are determined by internal risk rating. Management closely and continually monitors the quality of its loans and leases and assesses the quantitative and qualitative risks arising from the credit quality of its loans and leases. It is the policy of Lakeland to require that a Credit Risk Rating be assigned to all commercial loans and loan commitments. The Credit Risk Rating System has been developed by management to provide a methodology to be used by Loan Officers, department heads and Senior Management in identifying various levels of credit risk that exist within Lakeland’s loan portfolios. The risk rating system assists Senior Management in evaluating Lakeland’s commercial loan portfolio, analyzing trends, and determining the proper level of required reserves to be recommended to the Board. In assigning risk ratings, management considers, among other things, a borrower’s debt service coverage, earnings strength, loan to value ratios, industry conditions and economic conditions. Management categorizes commercial loans and commitments into a one (1) to nine (9) numerical structure with rating 1 being the strongest rating and rating 9 being the weakest. Ratings 1 through 5W are considered ‘Pass’ ratings.

24

The following table shows the Company’s commercial loan portfolio as of March 31, 2016 and December 31, 2015, by the risk ratings discussed above (in thousands):

March 31, 2016	Commercial,		Commercial,
	secured by		industrial		Real estate-
Risk Rating	real estate		and other		construction
1	$	—		4,188	$	—
2		—		11,252		—
3		92,705		59,705		—
4		667,804		121,085		16,466
5		1,207,653		110,240		104,961
5W - Watch		62,758		7,572		146
6 - Other Assets Especially Mentioned		37,417		5,912		1,846
7 - Substandard		50,345		12,143		1,234
8 - Doubtful		—		—		—
9 - Loss		—		—		—
Total	$	2,118,682	$	332,097	$	124,653
December 31, 2015	Commercial,		Commercial,
	secured by		industrial		Real estate-
Risk Rating	real estate		and other		construction
1	$	—	$	3,517	$	—
2		—		9,662		—
3		65,199		56,895		—
4		526,909		111,702		19,125
5		1,044,888		105,301		94,535
5W - Watch		43,342		4,259		146
6 - Other Assets Especially Mentioned		34,570		4,105		1,851
7 - Substandard		46,681		11,603		2,413
8 - Doubtful		—		—		—
9 - Loss		—		—		—
Total	$	1,761,589	$	307,044	$	118,070

The risk rating tables above do not include consumer or residential loans or leases because they are evaluated on their payment status.

25

Allowance for Loan and Lease Losses

In 2015, The Company refined and enhanced its assessment of the adequacy of the allowance for loan and lease losses by extending the lookback period on its commercial loan portfolios from three years to five years and by extending the lookback period for all other portfolios from two to three years in order to capture more of the economic cycle. It also enhanced its qualitative factor framework to include a factor that captures the risk related to appraised real estate values, and how those values could change in relation to a change in capitalization rates. This enhancement is meant to increase the level of precision in the allowance for loan and lease losses. As a result, the Company will no longer have an “unallocated” segment in its allowance for loan losses, as the risks and uncertainties meant to be captured by the unallocated allowance have been included in the qualitative framework for the respective portfolios. As such, the unallocated allowance has in essence been reallocated to the certain portfolios based on the risks and uncertainties it was meant to capture.

The following table details activity in the allowance for loan and lease losses by portfolio segment for the three months ended March 31, 2016 and 2015:

	Commercial,			Commercial,						Real estate-						Home
Three Months Ended March 31, 2016	secured by			industrial						residential			Real estate-			equity and
Allowance for Loan and Lease Losses:	real estate			and other			Leases			mortgage			construction			consumer			Unallocated		Total
	(in thousands)
Beginning Balance	$	20,223		$	2,637		$	460		$	2,588		$	1,591		$	3,375		$	0	$	30,874
Charge-offs		(135	)		(625	)		(70	)		(93	)		—			(620	)		—		(1,543	)
Recoveries		55			42			1			3			—			46			—		147
Provision		(66	)		543			197			(232	)		(87	)		720			—		1,075
Ending Balance	$	20,077		$	2,597		$	588		$	2,266		$	1,504		$	3,521		$	—	$	30,553
	Commercial,			Commercial,						Real estate-						Home
Three Months Ended March 31, 2015	secured by			industrial						residential			Real estate-			equity and
Allowance for Loan and Lease Losses:	real estate			and other			Leases			mortgage			construction			consumer			Unallocated		Total
	(in thousands)
Beginning Balance	$	13,577		$	3,196		$	582		$	4,020		$	553		$	6,333		$	2,423	$	30,684
Charge-offs		(546	)		(10	)		(427	)		(17	)		(20	)		(261	)		—		(1,281	)
Recoveries		39			42			20			1			100			30			—		232
Provision		(510	)		79			863			(706	)		4			822			318		870
Ending Balance	$	12,560		$	3,307		$	1,038		$	3,298		$	637		$	6,924		$	2,741	$	30,505

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Loans receivable summarized by portfolio segment and impairment method are as follows:

	Commercial,		Commercial,				Real estate-				Home
	secured by		industrial				residential		Real estate-		equity and
	real estate		and other		Leases		mortgage		construction		consumer		Total
	(in thousands)
At March 31, 2016
Ending Balance: Individually evaluated for impairment	$	19,898	$	1,764	$	3	$	3,011	$	375	$	1,823	$	26,874
Ending Balance: Collectively evaluated for impairment		2,098,460		329,885		60,922		389,376		124,278		338,371	$	3,341,292
Ending Balance: Loans acquired with deteriorated credit quality		324		448		—		—		—		23	$	795
Ending Balance (1)	$	2,118,682	$	332,097	$	60,925	$	392,387	$	124,653	$	340,217	$	3,368,961

(1) Excludes deferred fees

	Commercial,		Commercial,				Real estate-				Home
	secured by		industrial				residential		Real estate-		equity and
	real estate		and other		Leases		mortgage		construction		consumer		Total
	(in thousands)
At December 31, 2015
Ending Balance: Individually evaluated for impairment	$	19,786	$	1,232	$	6	$	3,027	$	380	$	1,575	$	26,006
Ending Balance: Collectively evaluated for impairment		1,741,803		305,812		56,654		386,665		117,690		333,316	$	2,941,940
Ending Balance (1)	$	1,761,589	$	307,044	$	56,660	$	389,692	$	118,070	$	334,891	$	2,967,946

(1) Excludes deferred fees

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The allowance for loan and lease losses is summarized by portfolio segment and impairment classification as follows:

	Commercial,		Commercial,				Real estate-				Home
	secured by		industrial				residential		Real estate-		equity and
	real estate		and other		Leases		mortgage		construction		consumer		Total
	(in thousands)
At March 31, 2016
Ending Balance: Individually evaluated for impairment	$	488	$	41	$	—	$	63	$	4	$	105	$	701
Ending Balance: Collectively evaluated for impairment		19,589		2,556		588		2,203		1,500		3,416	$	29,852
Ending Balance: Loans acquired with deteriorated credit quality		—		—		—		—		—		—		—
Ending Balance	$	20,077	$	2,597	$	588	$	2,266	$	1,504	$	3,521	$	30,553
	Commercial,		Commercial,				Real estate-				Home
	secured by		industrial				residential		Real estate-		equity and
	real estate		and other		Leases		mortgage		construction		consumer		Total
	(in thousands)
At December 31, 2015
Ending Balance: Individually evaluated for impairment	$	598	$	77	$	1	$	73	$	21	$	73	$	843
Ending Balance: Collectively evaluated for impairment		19,625		2,560		459		2,515		1,570		3,302	$	30,031
Ending Balance	$	20,223	$	2,637	$	460	$	2,588	$	1,591	$	3,375	$	30,874

Lakeland also maintains a reserve for unfunded lending commitments which is included in other liabilities. This reserve was $2.2 million and $2.0 million at March 31, 2016 and December 31, 2015, respectively. The Company analyzes the adequacy of the reserve for unfunded lending commitments in conjunction with its analysis of the adequacy of the allowance for loan and lease losses. For more information on this analysis, see “Risk Elements” in Management’s Discussion and Analysis.

Troubled Debt Restructurings

Troubled debt restructurings are those loans where concessions have been made due to borrowers’ financial difficulties. Restructured loans typically involve a modification of terms such as a reduction of the stated interest rate, a moratorium of principal payments and/or an extension of the maturity date at a stated interest rate lower than the current market rate of a new loan with similar risk. The Company considers the potential losses on these loans as well as the remainder of its impaired loans while considering the adequacy of the allowance for loan and lease losses.

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The following table summarizes loans that have been restructured during the three months ended March 31, 2016 and 2015:

	For the Three Months Ended						For the Three Months Ended
	March 31, 2016						March 31, 2015
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
	(Dollars in thousands)						(Dollars in thousands)
Troubled Debt Restructurings:
Commercial, secured by real estate		—	$	—	$	—		—	$	—	$	—
Commercial, industrial and other		—		—		—		1		1,149		1,149
Leases		—		—		—		1		14		14
Real estate—residential mortgage		—		—		—		—		—		—
Real estate—construction		—		—		—		1		396		396
Home equity and consumer		3		285		285		1		9		9
		3	$	285	$	285		4	$	1,568	$	1,568

The following table summarizes as of March 31, 2016 and 2015, loans that were restructured within the previous 12 months that have subsequently defaulted:

	March 31, 2016				March 31, 2015
	Number of		Recorded		Number of		Recorded
	Contracts		Investment		Contracts		Investment
	(Dollars in thousands)				(Dollars in thousands)
Defaulted Troubled Debt Restructurings:
Commercial, secured by real estate		1	$	635		—	$	—
Commercial, industrial and other		—		—		—		—
Leases		—		—		—		—
Real estate - residential mortgage		—		—		1		483
Real estate—construction		—		—		—		—
Home equity and consumer		2		227		1		2
		3	$	862		2	$	485

Mortgages Held for Sale

Residential mortgages originated by the bank and held for sale in the secondary market are carried at the lower of cost or fair market value. Fair market value is generally determined by the value of purchase commitments on individual loans. Losses are recorded as a valuation allowance and charged to earnings. The Company had $1.2 million in mortgages held for sale for each of the periods ending March 31, 2016 and December 31, 2015.

Other Real Estate and Other Repossessed Assets

At March 31, 2016, the Company had other real estate owned and other repossessed assets of $776,000 and $16,000, respectively. At December 31, 2015, the Company had other real estate owned and other repossessed assets of $934,000 and $49,000, respectively. The other real estate owned that the Company held at March 31, 2016 and December 31, 2015 included $648,000 and $805,000, respectively, in residential property acquired as a result of foreclosure proceedings or through a deed in lieu of foreclosure.

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Note 9. Estimated Fair Value of Financial Instruments and Fair Value Measurement

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest level priority to unobservable inputs (level 3 measurements). The following describes the three levels of fair value hierarchy:

Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities; includes U.S. Treasury Notes, and other U.S. Government Agency securities that actively trade in over-the-counter markets; equity securities and mutual funds that actively trade in over-the-counter markets.

Level 2 – quoted prices for similar assets or liabilities in active markets; or quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability including yield curves, volatilities, and prepayment speeds.

Level 3 – unobservable inputs for the asset or liability that reflect the Company’s own assumptions about assumptions that market participants would use in the pricing of the asset or liability and that are consequently not based on market activity but upon particular valuation techniques.

The Company’s assets that are measured at fair value on a recurring basis are it’s available for sale investment securities. The Company obtains fair values on its securities using information from a third party servicer. If quoted prices for securities are available in an active market, those securities are classified as Level 1 securities. The Company has U.S. Treasury Notes and certain equity securities that are classified as Level 1 securities. Level 2 securities were primarily comprised of U.S. Agency bonds, residential mortgage-backed securities, obligations of state and political subdivisions and corporate securities. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, issuer spreads, bids and offers. On a quarterly basis, the Company reviews the pricing information received from the Company’s third party pricing service. This review includes a comparison to non-binding third-party quotes.

The fair values of derivatives are based on valuation models from a third party using current market terms (including interest rates and fees), the remaining terms of the agreements and the credit worthiness of the counter party as of the measurement date (Level 2).

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The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of the periods presented by level within the fair value hierarchy. During the three months ended March 31, 2016, the Company did not make any transfers between any levels within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
			(in thousands)
March 31, 2016
Assets:
Investment securities, available for sale
U.S. treasury and government agencies	$	86,944	$	6,014	$	80,930	$	—
Mortgage backed securities		298,253		—		298,253		—
Obligations of states and political subdivisions		36,827		—		36,827		—
Other debt securities		501		—		501		—
Equity securities		4,833		4,825		8		—
Investments measured at net asset value*		13,789
Total securities available for sale		441,147		10,839		416,519		—
Non-hedging interest rate derivatives		3,505		—		3,505		—
Total Assets		444,652	$	10,839	$	420,024	$	—
Non-hedging interest rate derivatives	$	3,505	$	—	$	3,505	$	—
Total Liabilities	$	3,505	$	—	$	3,505	$	—
December 31, 2015
Assets:
Investment securities, available for sale
U.S. treasury and government agencies	$	97,133	$	4,888	$	92,245	$	—
Mortgage backed securities		289,572		—		289,572		—
Obligations of states and political subdivisions		36,498		—		36,498		—
Other debt securities		501		—		501		—
Equity securities		5,060		5,052		8		—
Investments measured at net asset value*		13,585
Total securities available for sale		442,349		9,940		418,824		—
Non-hedging interest rate derivatives		1,518		—		1,518		—
Total Assets		443,867	$	9,940	$	420,342	$	—
Non-hedging interest rate derivatives	$	1,518	$	—	$	1,518	$	—
Total Liabilities	$	1,518	$	—	$	1,518	$	—

* Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.

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The following table sets forth the Company’s assets subject to fair value adjustments (impairment) on a nonrecurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	Quoted Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Total
	(Level 1)		(Level 2)		(Level 3)		Fair Value
	(in thousands)
March 31, 2016
Assets:
Impaired Loans and Leases	$	—	$	—	$	26,874	$	26,874
Loans held for sale		—		1,150		—		1,150
Other real estate owned and other repossessed assets		—		—		792		792
December 31, 2015
Assets:
Impaired Loans and Leases	$	—	$	—	$	26,006	$	26,006
Loans held for sale		—		1,233		—		1,233
Other real estate owned and other repossessed assets		—		—		983		983

Impaired loans are evaluated and valued at the time the loan is identified as impaired at the lower of cost or market value of the underlying collateral. Because most of Lakeland’s impaired loans are collateral dependent, fair value is generally measured based on the value of the collateral, less estimated costs to sell, securing these loans and leases and is classified at a level 3 in the fair value hierarchy. Collateral may be real estate, accounts receivable, inventory, equipment and/or other business assets. The value of the real estate is assessed based on appraisals by qualified third party licensed appraisers. The appraisers may use the sales comparison approach, the cost approach or the income approach to value the collateral using discount rates (with ranges of 5-11%) or capitalization rates (with ranges of 4-9%) to evaluate the property. The value of the equipment may be determined by an appraiser, if significant, inquiry through a recognized valuation resource, or by the value on the borrower’s financial statements. Field examiner reviews on business assets may be conducted based on the loan exposure and reliance on this type of collateral. Appraised and reported values may be adjusted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Loans that are not collateral dependent are evaluated based on a discounted cash flow method. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above.

The Company has a held for sale loan portfolio that consists of residential mortgages that are being sold in the secondary market. The Company records these mortgages at the lower of cost or market value. Fair value is generally determined by the value of purchase commitments.

Other real estate owned (OREO) and other repossessed assets, representing property acquired through foreclosure, are recorded at fair value less estimated disposal costs of the acquired property on the date of acquisition and thereafter remeasured and carried at lower of cost or fair market value. Fair value on other real estate owned is based on the appraised value of the collateral using the sales comparison approach or the income approach with discount rates or capitalization rates similar to those used in impaired loan valuation. The fair value of other repossessed assets is estimated by inquiry through recognized valuation resources.

Changes in the assumptions or methodologies used to estimate fair values may materially affect the estimated amounts. Changes in economic conditions, locally or nationally, could impact the value of the estimated amounts of impaired loans, OREO and other repossessed assets.

Fair Value of Certain Financial Instruments

Estimated fair values have been determined by the Company using the best available data and an estimation methodology suitable for each category of financial instruments. Management is concerned that there may not be reasonable comparability between institutions due to the wide range of permitted assumptions and methodologies in the absence of active markets. This lack of uniformity gives rise to a high degree of subjectivity in estimating financial instrument fair values.

32

The estimation methodologies used, the estimated fair values, and recorded book balances at March 31, 2016 and December 31, 2015 are outlined below.

This summary, as well as the table below, excludes financial assets and liabilities for which carrying value approximates fair value. For financial assets, these include cash and cash equivalents. For financial liabilities, these include noninterest bearing demand deposits, savings and interest-bearing transaction accounts and federal funds sold and securities sold under agreements to repurchase. The estimated fair value of demand, savings and interest-bearing transaction accounts is the amount payable on demand at the reporting date. Carrying value is used because there is no stated maturity on these accounts, and the customer has the ability to withdraw the funds immediately. Also excluded from this summary and the following table are those financial instruments recorded at fair value on a recurring basis, as previously described.

The fair value of Investment Securities Held to Maturity was measured using information from the same third-party servicer used for Investment Securities Available for Sale using the same methodologies discussed above. Investment Securities Held to Maturity includes $8.1 million in short-term municipal bond anticipation notes and $1.0 million in subordinated debt that are non-rated and do not have an active secondary market or information readily available on standard financial systems. As a result, the securities are classified as Level 3 securities. These are investments that management performs a credit analysis on before investing in these securities.

FHLB stock is an equity interest that can be sold to the issuing FHLB, to other Federal Home Loan Banks, or to other member banks at its par value. Because ownership of these securities is restricted, they do not have a readily determinable fair value. As such, the Company’s FHLB Stock is recorded at cost or par value and is evaluated for impairment each reporting period by considering the ultimate recoverability of the investment rather than temporary declines in value. The Company’s evaluation primarily includes an evaluation of liquidity, capitalization, operating performance, commitments, and regulatory or legislative events.

The net loan portfolio at March 31, 2016 and December 31, 2015 has been valued using a present value discounted cash flow where market prices were not available. The discount rate used in these calculations is the estimated current market rate adjusted for credit risk. The valuation of the Company’s loan portfolio is consistent with accounting guidance but does not fully incorporate the exit price approach.

For fixed maturity certificates of deposit, fair value was estimated based on the present value of discounted cash flows using the rates currently offered for deposits of similar remaining maturities. The carrying amount of accrued interest payable approximates its fair value.

The fair value of long-term debt is based upon the discounted value of contractual cash flows. The Company estimates the discount rate using the rates currently offered for similar borrowing arrangements. The fair value of subordinated debentures is based on bid/ask prices from brokers for similar types of instruments.

The fair values of commitments to extend credit and standby letters of credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of guarantees and letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to extend credit and standby letters of credit are deemed immaterial.

33

The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2016 and December 31, 2015:

					Quoted Prices in		Significant
					Active Markets		Other		Significant
					for Identical		Observable		Unobservable
	Carrying		Fair		Assets		Inputs		Inputs
	Value		Value		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
March 31, 2016
Financial Instruments - Assets
Investment securities held to maturity	$	115,796	$	118,357	$	—	$	109,253	$	9,104
Federal Home Loan Bank and other membership bank stocks		16,193		16,193		—		16,193		—
Loans and leases, net		3,335,819		3,346,814		—		—		3,346,814
Financial Instruments - Liabilities
Certificates of Deposit		483,793		484,520		—		484,520		—
Other borrowings		310,031		314,739		—		314,739		—
Subordinated debentures		31,238		21,867		—		—		21,867
December 31, 2015
Financial Instruments - Assets
Investment securities held to maturity	$	116,740	$	117,594	$	—	$	110,293	$	7,301
Federal Home Loan Bank and other membership bank stocks		14,087		14,087		—		14,087		—
Loans and leases, net		2,934,326		2,930,188		—		—		2,930,188
Financial Instruments - Liabilities
Certificates of Deposit		343,321		341,998		—		341,998		—
Other borrowings		271,905		275,409		—		275,409		—
Subordinated debentures		31,238		24,366		—		—		24,366

Note 10. Derivatives

Lakeland is a party to interest rate derivatives that are not designated as hedging instruments. Under a program, Lakeland executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Lakeland executes with a third party, such that Lakeland minimizes its net risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties. As of March 31, 2016 and December 31, 2015, Lakeland had $4.6 million and $2.5 million, respectively, in available for sale securities pledged for collateral on its interest rate swaps with the financial institution.

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The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands):

				Average		Weighted Average			Weighted Average
March 31, 2016	Notional Amount			Maturity (Years)		Fixed Rate			Variable Rate	Fair Value
Customer interest rate swaps	$	46,263			13.3		4.360	%	1 Mo Libor + 1.99	$	3,505
3rd Party interest rate swaps		(46,263	)		13.3		4.360	%	1 Mo Libor + 1.99		(3,505	)
				Average		Weighted Average			Weighted Average
December 31, 2015	Notional Amount			Maturity (Years)		Fixed Rate			Variable Rate	Fair Value
Customer interest rate swaps	$	35,664			14.6		4.540	%	1 Mo Libor + 2.00	$	1,518
3rd party interest rate swaps		(35,664	)		14.6		4.540	%	1 Mo Libor + 2.00		(1,518	)

Note 11. Goodwill and Intangible Assets

The Company has recorded goodwill of $125.4 million and $110.0 million at March 31, 2016 and December 31, 2015, respectively, which includes $15.5 million from the Pascack merger in 2016, $22.9 million from the Somerset Hills acquisition in 2013 and $87.1 million from prior acquisitions. The Company reviews its goodwill and intangible assets annually, on November 30, or more frequently if conditions warrant, for impairment. In testing goodwill for impairment, the Company compares the estimated fair value of its reporting unit to its carrying amount, including goodwill. The Company has determined that it has one reporting unit, Community Banking.

The Company recorded $1.5 million and $2.7 million in core deposit intangible for the Pascack and Somerset Hills acquisitions, respectively. Year-to-date, it has amortized $167,000 in core deposit intangible including $69,000 and $98,000 for Pascack and Somerset Hills, respectively. The estimated future amortization expense for the remainder of 2016 and for each of the succeeding five years ended December 31 is as follows (dollars in thousands):

			Somerset
For the year ended:		Pascack		Hills
2016	$	206	$	267
2017		248		316
2018		220		267
2019		193		218
2020		165		168
2021		138		119

Note 12. Borrowings

At March 31, 2016, the Company had federal funds purchased and securities sold under agreements to repurchase of $100.3 million and $28.5 million respectively. The securities sold under agreements to repurchase are overnight sweep arrangement accounts with our customers. The Company also had $50.0 million in long-term securities sold under agreements to repurchase included in other borrowings which have maturities ranging from one to seven years. As of March 31, 2016, the Company had $104.7 million in securities pledged for its securities sold under agreements to repurchase, including $103.7 million in mortgage backed securities and $1.0 million in U.S. government agency securities.

35

At times the market values of securities collateralizing our securities sold under agreements to repurchase may decline due to changes in interest rates and may necessitate our lenders to issue a “margin call” which requires Lakeland to pledge additional collateral to meet that margin call.

Note 13. Early Redemption and Extinguishment of Debt

On August 3, 2015, The Company redeemed and extinguished $10.0 million of Lakeland Bancorp Capital Trust IV debentures and recorded a $1.8 million gain on the redemption and extinguishment of debt. The interest rate on this debenture floated at LIBOR plus 152 basis points and had a rate of 1.80% at the time of extinguishment.

Note 14. Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update to simplify employee share-based payment accounting. The areas for simplification in this update involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2017. The Company is currently assessing the impact that the guidance will have on the Company’s consolidated financial statements.

In March, 2016, the FASB issued an accounting standards update that requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met, including the “clearly and closely related” criterion. The amendments in this update clarify the requirements for assessing whether contingent call or put options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2016. This guidance will be applied on a modified retrospective basis as of the beginning of the fiscal year that the amendment is effective. The adoption of this update is not expected to have a material impact on the Company’s financial statements.

In February 2016, FASB issued accounting guidance that requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact that the guidance will have on the Company’s consolidated financial statements.

In January 2016, the FASB issued an accounting standards update intended to improve the recognition and measurement of financial instruments. Specifically, the accounting standards update requires all equity instruments, with the exception of those that are accounted for under the equity method of accounting, to be measured at fair value with changes in the fair value recognized through net income. Additionally, public business entities are required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The amendments in this update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this update is not expected to have a material impact on the Company’s financial statements.

In September 2015, the FASB issued an accounting standards update simplifying the accounting for adjustments made to provisional amounts recognized in a business combination, eliminating the requirement to retrospectively account for those adjustments. To simplify the accounting for adjustments made to provisional amounts, the amendments in the accounting standards update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update did not have a material impact on the Company’s financial statements.

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In May 2015, the FASB issued an accounting standards update clarifying how investments valued using the net asset value practical expedient within the fair value hierarchy should be classified. The accounting standards update was issued to address diversity in practice by exempting investments measured using the net asset value expedient from categorization in the fair value hierarchy. This accounting standards update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update did not have a material impact on the Company’s financial statements.

In April 2015, the FASB issued an accounting standards update requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability consistent with the presentation of debt discounts. The purpose of this update is to simplify the presentation of debt issuance costs and to align the U.S. GAAP presentation of debt more closely with international accounting standards. In August 2015, the FASB issued a subsequent update which discussed presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of these updates did not have a material impact on the Company’s financial statements.

In January 2015, the FASB issued an accounting standards update regarding the elimination of the concept of the extraordinary items from the statement of operations. The purpose of this update is to simplify the statement of operations presentation and to align the U.S. GAAP income statement more closely with international accounting standards. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update did not have a material impact on the Company’s financial statements.

In May 2014, the FASB issued an accounting standards update that clarifies the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. In March and April, 2016, the FASB issued further implementation guidance regarding revenue recognition. This additional guidance included clarification on certain principal versus agent considerations within the implementation of the guidance as well as clarification related to identifying performance obligations and licensing. The guidance along with its updates is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is still evaluating the potential impact on the Company’s financial statements.

PART I — ITEM 2

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

This section should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

Statements 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 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 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 legislation affecting the financial services industry including but not limited to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, government intervention in the U.S. financial system, changes in levels of market interest rates, pricing pressures on loan and deposit products, credit risks of Lakeland’s lending and leasing activities,

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customers’ acceptance of Lakeland’s products and services, competition, the failure to realize anticipated efficiencies and synergies from the merger of Pascack Bancorp into the Company, and Pascack Community Bank into Lakeland Bank, and failure to obtain Harmony Bank shareholder or regulatory approval for the merger of Harmony Bank into Lakeland Bank and failure to realize anticipated efficiencies and synergies if the merger of Harmony Bank into Lakeland Bank is consummated.

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.

Critical Accounting Policies, Judgments and Estimates

The accounting and reporting policies of the Company and its subsidiaries conform to accounting principles generally accepted in the United States of America and predominant practices within the banking industry. The consolidated financial statements include the accounts of the Company, Lakeland, Lakeland NJ Investment Corp., Lakeland Investment Corp., Lakeland Equity, Inc., Lakeland Preferred Equity, Inc., and Sullivan Financial Services, Inc. All intercompany balances and transactions have been eliminated.

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also affect reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. There have been no material changes in the Company’s critical accounting policies, judgments and estimates, including assumptions or estimation techniques utilized, as compared to those disclosed in the Company’s most recent Annual Report on Form 10-K.

Management Overview

The quarter ended March 31, 2016 represented a period of continued growth for the Company. As discussed in this Management’s Discussion and Analysis:

• Net income for the first quarter of 2016 was $8.1 million and earnings per diluted share (“EPS”) was $0.20, as compared to $8.3 million, or $0.22 per diluted share, in the first quarter of 2015. Excluding the impact of $1.7 million in merger related expenses, net income for the first quarter of 2016 was $9.3 million, or $0.22 per diluted share.

• For the first quarter of 2016, annualized return on average assets was 0.77%, annualized return on average common equity was 7.40%, and annualized return on average tangible common equity was 10.40%. Excluding merger related expenses, these ratios were 0.88%, 8.45% and 11.88% respectively.

• Net interest margin (“NIM”) in the first quarter of 2016 was 3.48% as compared to 3.43% for the fourth quarter of 2015.

• The Company reported strong growth in commercial, secured by real estate loans and total deposits during the first quarter of 2016. Excluding the loans acquired through the acquisition of Pascack Bancorp (“Pascack”), the Company increased commercial, secured by real estate loans by $83.4 million, or 5%. Excluding Pascack, deposits increased $162.6 million, or 5%, since December 31, 2015.

• On January 7, 2016, the Company completed its acquisition of Pascack Bancorp. This acquisition added $405.5 million in total assets, $319.6 million in total loans and $304.5 million in total deposits. Anticipated synergies and overlapping markets allowed the Company to close three branches during the quarter. Goodwill amounted to $15.5 million and core deposit intangibles were $1.5 million. The Company’s financial statements reflect the impact of the merger from the date of acquisition, which should be considered when comparing periods. For more information, please see Note 2 in Notes to the Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

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Results of Operations

(First Quarter 2016 Compared to First Quarter 2015)

Net Income

Net income was $8.1 million in the first quarter of 2016 compared to net income of $8.3 million for the first quarter of 2015. Diluted earnings per share was $0.20 for the first quarter of 2016, compared to diluted earnings per share of $0.22 for the same period last year. Excluding the impact of merger related expenses, net income would have been $9.3 million, or $0.22 per diluted share, in the first quarter of 2016. Net interest income at $33.9 million for the first quarter of 2016 increased $5.3 million from the first quarter of 2015 due primarily to a $6.6 million increase in interest income, offset by an increase of $1.2 million in interest expense. The increase in interest income reflects an increase in interest earning assets resulting primarily from the Pascack acquisition as well as organic growth.

Net Interest Income

Net interest income is the difference between interest income on earning assets and the cost of funds supporting those assets. The Company’s net interest income is determined by: (i) the volume of interest-earning assets that it holds and the yields that it earns on those assets, and (ii) the volume of interest-bearing liabilities that it has assumed and the rates that it pays on those liabilities.

Net interest income on a tax equivalent basis for the first quarter of 2016 was $34.1 million, compared to $28.7 million for the first quarter of 2015. The net interest margin decreased from 3.56% in the first quarter of 2015 to 3.48% in the first quarter of 2016 primarily as a result of a nine basis point increase in the cost of interest bearing liabilities. The increase in interest rates was due primarily to an increasingly competitive market for deposits as well as higher costing core deposits acquired in the Pascack acquisition. The decrease in the net interest margin was somewhat mitigated by an increase in interest income earned on free funds (interest earning assets funded by noninterest bearing liabilities) resulting from an increase in average noninterest bearing deposits of $99.7 million. The components of net interest income will be discussed in greater detail below.

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The following table reflects the components of the Company’s net interest income, setting forth for the periods presented, (1) average assets, liabilities and stockholders’ equity, (2) interest income earned on interest-earning assets and interest expense paid on interest-bearing liabilities, (3) average yields earned on interest-earning assets and average rates paid on interest-bearing liabilities, (4) the Company’s net interest spread (i.e., the average yield on interest-earning assets less the average cost of interest-bearing liabilities) and (5) the Company’s net interest margin. Rates are computed on a tax equivalent basis using a tax rate of 35%.

	For the Three Months Ended,								For the Three Months Ended,
	March 31, 2016								March 31, 2015
						Average								Average
				Interest		Rates						Interest		Rates
	Average			Income/		Earned/			Average			Income/		Earned/
	Balance			Expense		Paid			Balance			Expense		Paid
	(dollars in thousands)
Assets
Interest-earning assets:
Loans and leases (A)	$	3,284,339		$	34,121		4.18	%	$	2,660,512		$	27,896		4.25	%
Taxable investment securities and other		495,887			2,962		2.39	%		514,109			2,674		2.08	%
Tax-exempt securities		74,694			635		3.40	%		68,803			631		3.67	%
Federal funds sold (B)		78,240			75		0.38	%		27,686			12		0.17	%
Total interest-earning assets		3,933,160			37,793		3.86	%		3,271,110			31,213		3.86	%
Noninterest-earning assets:
Allowance for loan and lease losses		(31,128	)							(30,993	)
Other assets		346,436								286,781
TOTAL ASSETS	$	4,248,468							$	3,526,898
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Savings accounts	$	475,870		$	93		0.08	%	$	395,153		$	51		0.05	%
Interest-bearing transaction accounts		1,682,580			1,248		0.30	%		1,495,270			839		0.23	%
Time deposits		465,024			864		0.74	%		280,837			393		0.56	%
Borrowings		399,423			1,516		1.52	%		295,143			1,191		1.61	%
Total interest-bearing liabilities		3,022,897			3,721		0.49	%		2,466,403			2,474		0.40	%
Noninterest-bearing liabilities:
Demand deposits		760,198								660,548
Other liabilities		24,550								16,360
Stockholders’ equity		440,823								383,587
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	4,248,468							$	3,526,898
Net interest income/spread					34,072		3.37	%					28,739		3.46	%
Tax equivalent basis adjustment					222								221
NET INTEREST INCOME				$	33,850							$	28,518
Net interest margin (C)							3.48	%							3.56	%

(A) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans, and deferred loan fees.

(B) Includes interest-bearing cash accounts.

(C) Net interest income divided by interest-earning assets.

Interest income on a tax equivalent basis increased from $31.2 million in the first quarter of 2015 to $37.8 million in the first quarter of 2016, an increase of $6.6 million, or 21%. The increase in interest income was primarily a result of the Pascack acquisition and organic growth in loans, as average loans and leases increased $623.8 million compared to the first quarter of 2015. The yield on average loans and leases at 4.18% in the first quarter of 2016 was seven basis points lower than the first quarter of 2015, due primarily to strong growth in new loans and leases originated or refinanced at lower rates. The yield on average taxable investment securities increased 31 basis points, while the yield on tax exempt investment securities decreased by 27 basis points, compared to the first quarter of 2015. The decrease in yield on tax exempt investment securities was primarily due to maturing securities at higher rates and new purchases at lower rates.

        Total interest expense at $3.7 million in the first quarter of 2016 was $1.2 million greater than the $2.5 million reported for the same period in 2015. The cost of average interest-bearing liabilities increased from 0.40% in the first quarter of 2015 to 0.49% in 2016. As mentioned above, the increase in the yield on interest-bearing deposits was due primarily to higher costing deposits acquired in the Pascack acquisition as well as an increasingly competitive market for deposits. The yield on savings, interest-bearing transaction accounts, and time deposits increased by three basis points, seven basis points and 18 basis points, respectively. Time deposits, which pay a higher interest rate than interest-bearing transaction accounts, increased from 11% of interest-bearing liabilities in the first quarter of 2015 to 15% in the first quarter of 2016, impacting the increase in the Company’s cost of interest-bearing liabilities. Also impacting the cost of interest-bearing liabilities was higher costing borrowings which increased from 12% of interest-bearing liabilities in the first quarter of 2015 to 13% in 2016. Because loan growth exceeded growth in core deposits in 2015 and 2016, the Company bid for higher cost time deposits and used term borrowings from the Federal Home Loan Bank of New York to fund loan growth.

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Provision for Loan and Lease Losses

In determining the provision for loan and lease losses, management considers national and local economic conditions; trends in the portfolio including orientation to specific loan types or industries; experience, ability and depth of lending management in relation to the complexity of the portfolio; adequacy and adherence to policies, procedures and practices; levels and trends in delinquencies, impaired loans and net charge-offs; and the results of independent third party loan review.

In the first quarter of 2016, a $1.1 million provision for loan and lease losses was recorded, which was $205,000, or 24%, higher than the provision for the same period last year. During the first quarter of 2016, the Company charged off loans and leases of $1.5 million and recovered $147,000 in previously charged off loans and leases compared to $1.3 million and $232,000, respectively, during the same period in 2015. The higher provision resulted primarily from increasing trends in net charge-offs during the quarter. For more information regarding the determination of the provision, see “Risk Elements” below.

Noninterest Income

Noninterest income at $4.9 million in the first quarter of 2016 increased by $129,000 compared to $4.7 million in the first quarter of 2015. Included in noninterest income in the first quarter of 2016 was $370,000 in gain on sales of investment securities. Excluding this item, noninterest income would have been $4.5 million, a $241,000 decrease compared to the first quarter of 2015. Commissions and fees at $979,000 in the first quarter of 2016 decreased $328,000 compared to the same period last year, due primarily to a decrease in investment commission income and loan fee income. Gains on sales of loans totaled $420,000 in the first quarter of 2016 compared to $265,000 during the same period last year, due to increased origination and sales of residential mortgages. Income on bank owned life insurance at $408,000 for the first quarter of 2016 decreased $291,000 compared to the same period last year, due primarily to beneficiary payouts (death benefits) received in the first quarter of 2015. Other income totaling $248,000 in the first quarter of 2016 was $121,000 greater than the same period in 2015, due primarily to $100,000 in swap income compared to no swap income in the first quarter of 2015.

Noninterest Expense

Noninterest expense in the first quarter of 2016 totaled $25.4 million, which was $5.4 million greater than the $20.0 million reported for the first quarter of 2015. Included in noninterest expense during the first quarter of 2016 was $1.7 million in merger related expenses. Excluding merger related expenses, total noninterest expense would have been $23.7 million, a $3.7 million increase compared to the first quarter of 2015. Salaries and employee benefits expense at $14.1 million, increased $2.3 million from the same period last year, primarily due to a full quarter of expenses associated with the loan production offices that opened in 2015, the addition of Pascack employees during the quarter and an increase in employee benefit costs. Net occupancy expense, telecommunications expense and furniture and equipment increased $140,000, $79,000 and $290,000, respectively, compared to the first quarter of 2015, due primarily to the addition of the Pascack branches. Stationary, supplies and postage at $443,000 in the first quarter of 2016 was $78,000 greater than the same period last year, due primarily to mailings and supplies associated with the Pascack merger. Marketing expense at $309,000 in the first quarter of 2016 increased $69,000 compared to the first quarter of 2015, due primarily to the timing of marketing campaigns. FDIC insurance expense at $590,000 in the first quarter of 2016 increased $72,000 compared to the same period last year, due to the addition of the Pascack deposits. Data processing expense at $520,000 increased $185,000, primarily due to increases in the cost of mobile banking and the addition of the Pascack branches. Other expenses at $2.1 million increased $306,000 due primarily to an increase in consulting expenses and the outsourcing of the Company’s couriers which had previously impacted salary expense. The Company’s efficiency ratio, a non-GAAP financial measure, was 60.38% in the first quarter of 2016, compared to 59.17% for the same period last year. The increase was primarily due to an increase in noninterest expenses. The Company uses this ratio because it believes that the ratio provides a good

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comparison of period-to-period performance and because the ratio is widely accepted in the banking industry. The following table shows the calculation of the efficiency ratio for the periods presented:

	For the Three Months Ended March 31,
	2016			2015
	(dollars in thousands)
Calculation of efficiency ratio:
Total noninterest expense	$	25,424		$	20,042
Amortization of core deposit intangibles		(167	)		(111	)
Other real estate owned and other repossessed asset expense		(39	)		8
Merger related expenses		(1,721	)		—
Provision for unfunded lending commitments		(208	)		(130	)
Noninterest expense, as adjusted	$	23,289		$	19,809
Net interest income	$	33,850		$	28,518
Noninterest income		4,867			4,738
Total revenue		38,717			33,256
Tax-equivalent adjustment on municipal securities		222			221
Less:
Gains on sales of investment securities		(370	)		—
Total revenue, as adjusted	$	38,569		$	33,477
Efficiency ratio		60.4	%		59.2	%

Income Tax Expense

The effective tax rate increased from 32.5% in the first quarter of 2015 to 33.6% in the first quarter of 2016 primarily as a result of a decrease in tax advantaged items as a percent of pretax income. Tax advantaged items include tax-exempt security interest and income on bank owned life insurance policies. Also contributing to the increase in the effective tax rate was the impact of non-deductible merger related expenses.

Financial Condition

The Company’s total assets increased $534.7 million from $3.87 billion at December 31, 2015, to $4.40 billion at March 31, 2016. This includes Pascack’s assets which were $405.5 million at the time of acquisition. Total loans were $3.37 billion, an increase of $401.0 million from $2.97 billion at December 31, 2015. Pascack’s loans totaled $319.6 million at the time of acquisition. Total deposits were $3.46 billion, an increase of $467.1 million from December 31, 2015. Pascack’s deposits totaled $304.5 million at the time of acquisition.

Loans and Leases

Gross loans and leases at $3.37 billion increased by $401.0 million from December 31, 2015. This includes Pascack loans which totaled $319.6 million at the time of acquisition. Excluding Pascack’s loans, total loans have increased 3% from December 31, 2015, primarily in the commercial loans secured by real estate category. Excluding the impact of the Pascack loans of $273.7 million, commercial loans secured by real estate increased $83.4 million, or 5%, from December 31, 2015 to March 31, 2016. Leases also increased $4.3 million, or 8%, resulting from increased demand for equipment financing. Excluding the impact of the Pascack loans of $22.3 million, commercial, industrial and other increased $2.7 million, or 1%. Real Estate-Residential mortgages declined $7.6 million, or 2%, excluding the impact of Pascack’s residential mortgages of $10.3 million. The decline in residential mortgages results from a decision to sell most of the residential loans that the Company originates. Excluding the impact of Pascack loans totaling $1.0 million and $12.2 million, respectively, Real estate construction loans increased $5.6 million, while home equity and consumer loans decreased $6.9 million. For more information on the loan portfolio, see Note 8 in Notes to the Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

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Risk Elements

Non-performing assets increased from $23.7 million on December 31, 2015 to $25.8 million on March 31, 2016, primarily in the commercial secured by real estate and commercial, industrial and other loans categories, which increased by $1.5 million and $1.1 million, respectively. While non-performing assets increased primarily due to the Pascack acquisition, the percentage of non-performing assets to total assets decreased from 0.61% at December 31, 2015 to 0.58% at March 31, 2016. Non-accrual loans at March 31, 2016 included three loan relationships with a balance of $1.0 million or over, totaling $5.7 million, and seven loan relationships between $500,000 and $1.0 million, totaling $4.7 million.

There were $101,000 in loans and leases past due ninety days or more and still accruing at March 31, 2016 compared to $331,000 at December 31, 2015. These loans primarily consisted of consumer loans which are generally placed on non-accrual and reviewed for charge-off when principal and interest payments are four months in arrears, unless the obligations are well-secured and in the process of collection.

On March 31, 2016, the Company had $10.5 million in loans that were troubled debt restructurings and still accruing interest income compared to $10.1 million at December 31, 2015. Troubled debt restructurings are those loans where the Company has granted concessions to the borrower in payment terms, either in rate or in term, as a result of the financial condition of the borrower.

On March 31, 2016, the Company had $26.9 million in impaired loans (consisting primarily of non-accrual and restructured loans and leases) compared to $26.0 million at year-end 2015. For more information on impaired loans and leases see Note 8 in Notes to the Consolidated Financial Statements of this Quarterly Report on Form 10-Q. The valuation allowance for impaired loans is based primarily on the fair value of the underlying collateral. Based on such evaluation, $701,000 has been allocated as a portion of the allowance for loan and lease losses for impairment at March 31, 2016. At March 31, 2016, the Company also had $46.7 million in loans and leases that were rated substandard that were not classified as non-performing or impaired compared to $46.6 million at December 31, 2015.

There were no loans and leases at March 31, 2016, other than those designated non-performing, impaired or substandard, where the Company was aware of any credit conditions of any borrowers or obligors that would indicate a strong possibility of the borrowers not complying with present terms and conditions of repayment and which may result in such loans and leases being included as non-accrual, past due or renegotiated at a future date.

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The following table sets forth for the periods presented, the historical relationships among the allowance for loan and lease losses, the provision for loan and lease losses, the amount of loans and leases charged-off and the amount of loan and lease recoveries:

	Three Months			Three Months			Year
	Ended			Ended			Ended
	March 31,			March 31,			December 31,
(dollars in thousands)	2016			2015			2015
Balance of the allowance at the beginning of the year	$	30,874		$	30,684		$	30,684
Loans and leases charged off:
Commercial, secured by real estate		135			546			1,821
Commercial, industrial and other		625			10			205
Leases		70			427			548
Real estate - mortgage		93			17			375
Real estate - construction		0			20			20
Home equity and consumer		620			261			1,511
Total loans charged off		1,543			1,281			4,480
Recoveries:
Commercial, secured by real estate		55			39			2,221
Commercial, industrial and other		42			42			183
Leases		1			20			26
Real estate - mortgage		3			1			63
Real estate - construction		—			100			106
Home equity and consumer		46			30			129
Total Recoveries		147			232			2,728
Net charge-offs:		1,396			1,049			1,752
Provision for loan and lease losses		1,075			870			1,942
Ending balance	$	30,553		$	30,505		$	30,874
Ratio of annualized net charge-offs to average loans and leases outstanding		0.17	%		0.16	%		0.06	%
Ratio of allowance at end of period as a percentage of period end total loans and leases		0.91	%		1.13	%		1.04	%

The ratio of the allowance for loan and lease losses to loans and leases outstanding reflects management’s evaluation of the underlying credit risk inherent in the loan portfolio. The determination of the adequacy of the allowance for loan and lease losses and periodic provisioning for estimated losses included in the consolidated financial statements is the responsibility of management and the Board of Directors. The evaluation process is undertaken on a quarterly basis.

Methodology employed for assessing the adequacy of the allowance consists of the following criteria:

• The establishment of specific reserve amounts for all specifically identified classified loans and leases that have been designated as requiring attention by Lakeland.

• The establishment of reserves for pools of homogeneous types of loans and leases not subject to specific review, including impaired loans under $500,000, leases, 1 – 4 family residential mortgages, and consumer loans.

• The establishment of reserve amounts for the unimpaired loans and leases in each portfolio based upon the historical average loss experience as modified by management’s assessment of the loss emergence period for these portfolios and management’s evaluation of key environmental factors.

Consideration is given to the results of ongoing credit quality monitoring processes, the adequacy and expertise of the Company’s lending staff, underwriting policies, loss histories, delinquency trends, and the cyclical nature of economic and business conditions. Since many of the Company’s loans depend on the sufficiency of collateral as a secondary means of repayment, any adverse trend in the real estate markets could affect underlying values available to protect the Company against loss.

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The overall balance of the allowance for loan and lease losses at $30.6 million at March 31, 2016 decreased $321,000, from December 31, 2015, a decrease of 1%. The distribution of the allowance changes between segments of the loan portfolio reflects changes in the non-performing loan and charge-off statistics within each portfolio. Loan reserves are based on a combination of historical charge-off experience, estimating the appropriate loss emergence and pre-emergence periods and assigning qualitative factors based on general economic conditions and specific bank portfolio characteristics.

Non-performing loans and leases increased from $22.7 million on December 31, 2015 to $25.0 million on March 31, 2016. The allowance for loan and lease losses as a percent of total loans was 0.91% of total loans on March 31, 2016 compared to 1.04% as of December 31, 2015. The reduction in the percentage of the allowance for loan and lease losses as a percent of total loans and leases was primarily due to the $319.6 million increase in loans resulting from the Pascack acquisition, which is accounted for under acquisition accounting. Excluding the Pascack loans, the allowance as a percent of total loans would be 1.00%. Management believes, based on appraisals and estimated selling costs, that the majority of its non-performing loans and leases are adequately secured and reserves on its non-performing loans and leases are adequate. Based upon the process employed and giving recognition to all accompanying factors related to the loan and lease portfolio, management considers the allowance for loan and lease losses to be adequate at March 31, 2016.

Investment Securities

For detailed information on the composition and maturity distribution of the Company’s investment securities portfolio, see Note 7 in Notes to Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q. Total investment securities decreased from $559.1 million on December 31, 2015 to $556.9 million on March 31, 2016, a decrease of $2.1 million.

Deposits

Total deposits increased from $3.00 billion on December 31, 2015 to $3.46 billion on March 31, 2016, an increase of $467.1 million, or 16%. Pascack’s deposits totaled $304.5 million at the time of acquisition. Noninterest bearing deposits increased $80.7 million, or 12%, to $774.5 million. Excluding $64.4 million in Pascack demand deposits, noninterest bearing demand deposits have increased by $16.3 million, or 2%, from year-end 2015. Savings and interest-bearing transaction accounts and time deposits increased $245.8 million and $140.5 million, respectively. At the time of acquisition, Pascack had savings and interest-bearing transaction accounts and time deposits of $161.9 million and $78.1 million, respectively.

Liquidity

“Liquidity” measures whether an entity has sufficient cash flow to meet its financial obligations and commitments on a timely basis. The Company is liquid when its subsidiary bank has the cash available to meet the borrowing and cash withdrawal requirements of customers and the Company can pay for current and planned expenditures and satisfy its debt obligations.

Lakeland funds loan demand and operation expenses from several sources:

• Net income. Cash provided by operating activities was $7.5 million for the first three months of 2016 compared to $8.6 million for the same period in 2015.

• Deposits. Lakeland can offer new products or change its rate structure in order to increase deposits. In the first three months of 2016, Lakeland’s deposits increased $162.6 million, excluding the impact of Pascack deposits.

• Sales of securities. At March 31, 2016 the Company had $441.1 million in securities designated “available for sale.” Of these securities, $303.1 million were pledged to secure public deposits and for other purposes required by applicable laws and regulations.

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• Repayments on loans and leases can also be a source of liquidity to fund further loan growth.

• Overnight credit lines. As a member of the FHLB, Lakeland has the ability to borrow overnight based on the market value of collateral pledged. Lakeland had no overnight borrowings from the FHLB on March 31, 2016. Lakeland also has overnight federal funds lines available for it to borrow up to $182.0 million. Lakeland had borrowings against these lines of $100.3 million at March 31, 2016. Lakeland may also borrow from the discount window of the Federal Reserve Bank of New York based on the market value of collateral pledged. Lakeland had no borrowings with the Federal Reserve Bank of New York as of March 31, 2016.

• Other borrowings. Lakeland can also generate funds by utilizing long-term debt or securities sold under agreements to repurchase that would be collateralized by security or mortgage collateral. At times the market values of securities collateralizing our securities sold under agreements to repurchase may decline due to changes in interest rates and may necessitate our lenders to issue a “margin call” which requires Lakeland to pledge additional collateral to meet that margin call.

Management and the Board monitor the Company’s liquidity through the asset/liability committee, which monitors the Company’s compliance with certain regulatory ratios and other various liquidity guidelines.

The cash flow statements for the periods presented provide an indication of the Company’s sources and uses of cash, as well as an indication of the ability of the Company to maintain an adequate level of liquidity. A discussion of the cash flow statement for the three months ended March 31, 2016 follows.

Cash and cash equivalents totaling $213.6 million on March 31, 2016 increased $95.1 million from December 31, 2015. Operating activities provided $7.5 million in net cash. Investing activities used $30.0 million in net cash, primarily reflecting an increase in loans and leases. Financing activities provided $117.7 million in net cash primarily reflecting the increase in deposits of $162.7 million offset by declines in federal funds purchased and securities sold under agreements to repurchase of $22.4 million and $19.0 million, respectively. The Company anticipates that it will have sufficient funds available to meet its current loan commitments and deposit maturities. This constitutes a forward-looking statement under the Private Securities Litigation Reform Act of 1995.

The following table sets forth contractual obligations and other commitments representing required and potential cash outflows as of March 31, 2016. Interest on subordinated debentures and long-term borrowed funds is calculated based on current contractual interest rates.

					After one but		After three
			Within		within three		but within		After
(dollars in thousands)	Total		one year		years		five years		five years
Minimum annual rentals on noncancellable operating leases	$	35,404	$	3,225	$	5,474	$	4,807	$	21,898
Benefit plan commitments		6,377		218		793		793		4,573
Remaining contractual maturities of time deposits		373,650		295,091		64,980		13,579		—
Subordinated debentures		31,238		—		—		—		31,238
Loan commitments		848,982		643,384		142,854		5,765		56,979
Other borrowings		308,905		106,028		187,877		5,000		10,000
Interest on other borrowings*		27,685		6,035		6,240		2,870		12,540
Standby letters of credit		11,346		9,544		1,722		—		80
Total	$	1,643,587	$	1,063,525	$	409,940	$	32,814	$	137,308

* Includes interest on other borrowings and subordinated debentures at a weighted rate of 1.92%.

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Capital Resources

Total stockholders’ equity increased from $400.5 million on December 31, 2015 to $446.9 million on March 31, 2016, an increase of $46.4 million, or 12%. Book value per common share increased to $10.84 on March 31, 2016 from $10.57 on December 31, 2015. The increase in stockholders’ equity from December 31, 2015 to March 31, 2016 was primarily due to stock issued of $37.2 million for the acquisition of Pascack, $8.1 million in net income and other comprehensive income on the Company’s available for sale securities portfolio of $4.0 million, partially offset by the payment of cash dividends on common stock of $3.5 million.

The Company and Lakeland are subject to various regulatory capital requirements that are monitored by federal banking agencies. Failure to meet minimum capital requirements can lead to certain supervisory actions by regulators; any supervisory action could have a direct material adverse effect on the Company or Lakeland’s financial statements. Management believes, as of March 31, 2016, that the Company and Lakeland meet all capital adequacy requirements to which they are subject.

The final rules implementing the Basel Committee on Banking Supervision’s (“BCBS”) capital guidelines for U.S. banks became effective for the Company on January 1, 2015, with full compliance with all of the final rule’s requirements phased in over a multi-year schedule, to be fully phased-in by January 1, 2019. As of March 31, 2016, the Company’s capital levels remained characterized as “well-capitalized” under the new rules.

The capital ratios for the Company and Lakeland at March 31, 2016 are as follows:

		Common Equity
	Tier 1 Capital	Tier 1 to	Tier 1 Capital	Total Capital
	to Total Average	Risk-Weighted	to Risk-Weighted	to Risk-Weighted
	Assets Ratio	Assets Ratio	Assets Ratio	Assets Ratio
	March 31,	March 31,	March 31,	March 31,
Capital Ratios:	2016	2016	2016	2016
The Company	8.33%	9.06%	9.93%	10.87%
Lakeland Bank	7.88%	9.39%	9.39%	10.33%
Required capital ratios including conservation buffer	5.00%	5.125%	6.625%	8.625%
“Well capitalized” institution under FDIC Regulations	5.00%	6.50%	8.00%	10.00%

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Non-GAAP Financial Measures

Reported amounts are presented in accordance with U.S. GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

	March 31,			December 31,
(dollars in thousands, except per share amounts)	2016			2015
Calculation of tangible book value per common share
Total common stockholders’ equity at end of period - GAAP	$	446,875		$	400,516
Less:
Goodwill		125,443			109,974
Other identifiable intangible assets, net		2,891			1,545
Total tangible common stockholders’ equity at end of period - Non-GAAP	$	318,541		$	288,997
Shares outstanding at end of period		41,241			37,906
Book value per share - GAAP	$	10.84		$	10.57
Tangible book value per share - Non-GAAP	$	7.72		$	7.62
Calculation of tangible common equity to tangible assets
Total tangible common stockholders’ equity at end of period - Non-GAAP	$	318,541		$	288,997
Total assets at end of period	$	4,404,233		$	3,869,550
Less:
Goodwill		125,443			109,974
Other identifiable intangible assets, net		2,891			1,545
Total tangible assets at end of period - Non-GAAP	$	4,275,899		$	3,758,031
Common equity to assets - GAAP		10.15	%		10.35	%
Tangible common equity to tangible assets - Non-GAAP		7.45	%		7.69	%
	For the three months ended,
	March 31,			March 31,
(dollars in thousands)	2016			2015
Calculation of return on average tangible common equity
Net income - GAAP	$	8,108		$	8,330
Total average common stockholders’ equity	$	440,823		$	383,587
Less:
Average goodwill		124,423			109,974
Average other identifiable intangible assets, net		2,920			1,919
Total average tangible common stockholders’ equity - Non-GAAP	$	313,480		$	271,694
Return on average common stockholders’ equity - GAAP		7.40	%		8.81	%
Return on average tangible common stockholders’ equity - Non-GAAP		10.40	%		12.43	%

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ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

The Company manages interest rate risk and market risk by identifying and quantifying interest rate risk exposures using simulation analysis and economic value at risk models. Net interest income simulation considers the relative sensitivities of the balance sheet including the effects of interest rate caps on adjustable rate mortgages and the relatively stable aspects of core deposits. As such, net interest income simulation is designed to address the probability of interest rate changes and the behavioral response of the balance sheet to those changes. Market Value of Portfolio Equity represents the fair value of the net present value of assets, liabilities and off-balance-sheet items. Changes in estimates and assumptions made for interest rate sensitivity modeling could have a significant impact on projected results and conclusions. These assumptions could include prepayment rates, sensitivity of non-maturity deposits and other similar assumptions. Therefore, if our assumptions should change, this technique may not accurately reflect the impact of general interest rate movements on the Company’s net interest income or net portfolio value.

The starting point (or “base case”) for the following table is an estimate of the following year’s net interest income assuming that both interest rates and the Company’s interest-sensitive assets and liabilities remain at period-end levels. The net interest income estimated for the next twelve months (the base case) is $134.6 million. The information provided for net interest income assumes that changes in interest rates of plus 200 basis points and minus 200 basis points change gradually in equal increments (“rate ramp”) over the twelve month period.

	Changes in interest rates
Rate Ramp	+200 bp			-200 bp
Asset/Liability Policy Limit		-5.0	%		-5.0	%
March 31, 2016		-0.8	%		-1.5	%
December 31, 2015		-1.4	%		-1.6	%

The Company’s review of interest rate risk also includes policy limits for net interest income changes in various “rate shock” scenarios. Rate shocks assume that current interest rates change immediately. The information provided for net interest income assumes fluctuations or “rate shocks” for changes in interest rates as shown in the table below.

	Changes in interest rates
Rate Shock	+300 bp			+200 bp			+100 bp			-100 bp
Asset/Liability Policy Limit		-15.0	%		-10.0	%		-5.0	%		-5.0	%
March 31, 2016		2.4	%		1.9	%		1.2	%		-4.2	%
December 31, 2015		1.7	%		1.3	%		0.8	%		-4.5	%

The base case for the following table is an estimate of the Company’s net portfolio value for the periods presented using current discount rates, and assuming the Company’s interest-sensitive assets and liabilities remain at period-end levels. The net portfolio value at March 31, 2016 (the base case) was $572.7 million. The information provided for the net portfolio value assumes fluctuations or “rate shocks” for changes in interest rates as shown in the table below. Rate shocks assume that current interest rates change immediately.

	Changes in interest rates
Rate Shock	+300 bp			+200 bp			+100 bp			-100 bp
Asset/Liability Policy Limit		-25.0	%		-20.0	%		-10.0	%		-10.0	%
March 31, 2016		-10.0	%		-6.1	%		-2.6	%		-0.9	%
December 31, 2015		-10.2	%		-6.5	%		-2.9	%		0.3	%

The information set forth in the above tables is based on significant estimates and assumptions, and constitutes a forward-looking statement under the Private Securities Litigation Reform Act of 1995. For more information regarding the Company’s market risk and assumptions used in the Company’s simulation models, please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

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Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements. Modeling changes in net interest income requires the making of certain assumptions regarding prepayment and deposit decay rates, which may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. While management believes such assumptions are reasonable, there can be no assurance that assumed prepayment rates and decay rates will approximate actual future loan prepayment and deposit withdrawal activity. Moreover, the net interest income table presented assumes that the composition of interest sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and also assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities. Accordingly, although the net interest income table provides an indication of the Company’s interest rate risk exposure at a particular point in time, such measurement is not intended to and does not provide a precise forecast of the effect of changes in market interest rates on net interest income and will differ from actual results.

ITEM 4. Controls and Procedures

(a) Disclosure controls and procedures. As of the end of the Company’s most recently completed fiscal quarter covered by this report, the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures pursuant to Rule 13a-15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The term “disclosure controls and procedures,” as defined in Rule 13a-15, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

Based on the evaluation of the Company’s disclosure controls and procedures as of March 31, 2016, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as a result of the material weakness in the Company’s internal control over financial reporting previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 10-K”), the Company’s disclosure controls and procedures were not effective as of March 31, 2016.

As previously disclosed in the Company’s 2015 10-K, during the fourth quarter of 2015, management identified a material weakness in internal controls over the completeness and accuracy of the information used to determine the qualitative component of the allowance for loan and lease losses estimate. This material weakness in internal controls occurred due to the control operator not executing the review control, as designed, of the completeness and accuracy of the information used in the qualitative component of the allowance for loan and lease losses estimate as of December 31, 2015. No restatement of prior period financial statements and no change in previously issued financial results were required as a result of this weakness in internal control. Management has taken steps to remediate this weakness by enhancing review controls, including adding an additional independent level of review over the information used to determine the qualitative component in the allowance for loan and lease losses estimation process. Management is still evaluating these new controls and procedures. Once placed in operation for a sufficient period of time, the Company will subject them to appropriate tests in order to determine whether they are operating effectively.

(b) Changes in internal controls over financial reporting. As discussed above, management has continued to remediate the underlying causes of the material weakness disclosed in the 2015 10-K. Other than the plan for remediation described above, there has been no change in the Company’s internal control over financial reporting in the quarter ended March 31, 2016 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II OTHER INFORMATION

Item 1. Legal Proceedings

Certain former shareholders of Pascack Bancorp, Inc. brought a purported class action (the “Action”) in the Superior Court of New Jersey, Bergen County, in connection with the merger of Pascack Bancorp with and into the Company, and the merger of Pascack Community Bank with and into Lakeland Bank. The complaint alleged that the Company had aided and abetted the individual defendants (former board members of Pascack Bancorp) in their alleged breaches of fiduciary duty. The parties reached an agreement-in-principle concerning the proposed settlement of the Action on December 1 and December 2, 2015. The mergers were consummated on January 7, 2016. The parties have agreed to a stipulation of settlement which is pending court approval. On April 1, 2016, the court gave preliminary approval to the settlement.

Other than as described above, there are no pending legal proceedings involving the Company or Lakeland other than those arising in the normal course of business. Management does not anticipate that the potential liability, if any, arising out of such legal proceedings will have a material effect on the financial condition or results of operations of the Company and Lakeland on a consolidated basis.

Item 1A. Risk Factors

There have been no material changes in risk factors from those disclosed under Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	Not Applicable
Item 3.	Defaults Upon Senior Securities	Not Applicable
Item 4.	Mine Safety Disclosures	Not Applicable
Item 5.	Other Information	Not Applicable
Item 6.	Exhibits

10.1	Change in Control Agreement dated April 11, 2016 among Lakeland Bancorp, Inc., Lakeland Bank and James Nigro.
31.1	Certification by Thomas J. Shara pursuant to Section 302 of the Sarbanes-Oxley Act.
31.2	Certification by Joseph F. Hurley pursuant to Section 302 of the Sarbanes-Oxley Act.
32.1	Certification by Thomas J. Shara and Joseph F. Hurley pursuant to Section 906 of the Sarbanes-Oxley Act.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Lakeland Bancorp, Inc.

(Registrant)        

/s/ Thomas J. Shara

Thomas J. Shara

President and Chief Executive Officer

/s/ Joseph F. Hurley

Joseph F. Hurley

Executive Vice President and

Chief Financial Officer

Date: May 10, 2016

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EX-10.1

Exhibit 10.1

CHANGE IN CONTROL AGREEMENT

THIS CHANGE IN CONTROL AGREEMENT (the “Agreement”), is dated as of the 11^th day of April 2016, among Lakeland Bancorp, Inc. (the “Holding Company”), a New Jersey corporation, and Lakeland Bank (the “Bank”), a New Jersey chartered commercial bank, having offices at 250 Oak Ridge Road, Oak Ridge, New Jersey 07438 (the Holding Company and the Bank are collectively referred to herein as the “Company”) and James Nigro (the “Executive”).

BACKGROUND

WHEREAS, the Executive is or will be employed as Executive Vice President and Chief Risk Officer of the Company; and

WHEREAS, the Company believes that the future services of the Executive are of great value to the Company and that it is important for the growth and development of the Company that the Executive continue in his position; and

WHEREAS, the Board of Directors of the Holding Company (the “Board”) believes it is imperative that the Company be able to rely upon the Executive to continue in his position in the event that Holding Company receives any proposal from a third person concerning a possible business combination with, or acquisition of equities securities of, the Company, and that they be able to receive and rely upon his advice, if they request it, as to the best interests of the Company and its shareholders, without concern that the Executive might be distracted by the personal uncertainties and risks created by such a proposal; and

WHEREAS, to achieve that goal, and to retain the Executives services prior to any such activity, the Company and the Executive have agreed to enter into this Agreement to govern the Executive’s termination benefits in the event of a Change in Control, as hereinafter defined;

NOW, THEREFORE, to assure the Company that it will have the continued dedication of the Executive and the availability of his advice and counsel notwithstanding the possibility, threat or occurrence of a bid to take over control of the Company, and to induce the Executive to remain in the employ of the Company, and for other good and valuable consideration, the Company and the Executive, each intending to be legally bound hereby agree as follows:

1. Definitions

a. Cause. For purposes of this Agreement “Cause” with respect to the termination by the Company of Executive’s employment shall mean: (i) failure by the Executive to materially perform his duties for the Company under this Agreement after at least one warning in writing identifying specifically any such material failure and offering a reasonable opportunity to cure such failure; (ii) the willful engaging by the Executive in material misconduct which causes material injury to the Company; or (iii) conviction of a crime (other than a traffic violation), habitual drunkenness, drug abuse, or excessive absenteeism other than for illness, after a warning (with respect

to drunkenness or absenteeism only) in writing to refrain from such behavior. No act or failure to act on the part of the Executive shall be considered willful unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the action or omission was in the best interest of the Company. The Company shall have the burden of proving Cause by clear and convincing evidence.

b. Change in Control. For purposes of this Agreement, a “Change in Control” shall mean the occurrence of any of the following events with respect to the Holding Company:

(i) the consummation of any consolidation or merger of the Holding Company in which the Holding Company is not the continuing or surviving corporation or pursuant to which shares of the Holding Company’s common stock (“Common Stock”) would be converted into cash, securities or other property, other than a merger of the Holding Company in which the holders of the shares of the Holding Company’s Common Stock immediately prior to the merger have the same proportionate ownership of common stock of the surviving corporation immediately after the merger; or

(ii) the consummation of any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Holding Company, other than to a subsidiary or affiliate; or

(iii) an approval by the shareholders of the Holding Company of any plan or proposal for the liquidation or dissolution of the Holding Company; or

(iv) any action pursuant to which any person (as such term is defined in Section 13(d) of the Exchange Act), corporation or other entity (other than any person who owns more than ten percent (10%) of the outstanding Common Stock on the date this Agreement is entered into, the Holding Company or any benefit plan sponsored by the Holding Company or any of its subsidiaries) shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of shares of capital stock entitled to vote generally for the election of directors of the Holding Company (“Voting Securities”) representing fifty-one (51%) percent or more of the combined voting power of the Holding Company’s then outstanding Voting Securities (calculated as provided in Rule 13d-3(d) in the case of rights to acquire any such securities), unless, prior to such person so becoming such beneficial owner, the Board shall determine that such person so becoming such beneficial owner shall not constitute a Change in Control; or

(v) the individuals (x) who, as of the date on which the Agreement is entered into, constitute the Board (the “Original Directors”) and (y) who thereafter are elected to the Board and whose election, or nomination for election, to the Board was approved by a vote of at least two thirds of the Original Directors then still in office (such Directors being called “Additional Original Directors^”) and (z) who thereafter are elected to the Board and whose election or nomination for election to the Board was approved by a vote of at least two thirds of the Original Directors and Additional Original Directors then still in office, cease for any reason to constitute a majority of the members of the Board.

2

c. Contract Period. “Contract Period” shall mean the period commencing the day immediately preceding a Change in Control and ending on the earlier of: (i) the second anniversary of the Change in Control; (ii) the date the Executive would attain age 65; or (iii) the death of the Executive.

d. Exchange Act. “Exchange Act” means the Securities Exchange Act of 1934, as amended.

e. Good Reason. When used with reference to a voluntary termination by Executive of his employment with the Company, “Good Reason^” shall mean any of the following, if taken without Executive’s express written consent:

(i) The assignment to Executive of any duties inconsistent with, or the reduction of authority, powers or responsibilities associated with, Executive’s position, title, duties, responsibilities and status with the Company immediately prior to a Change in Control (a “Change in Assignment”) or any removal of Executive from, or any failure to re-elect Executive to, any position(s) or office(s) Executive held immediately prior to such Change in Control. A change in position, title, duties, responsibilities and status or position(s) or office(s) following a Change in Control shall constitute a Change in Assignment unless the Executive’s new title, duties and responsibilities are accepted in writing by the Executive, in the sole discretion of the Executive;

(ii) A reduction by the Company in Executive’s annual base compensation as in effect immediately prior to a Change in Control;

(iii) A failure by the Company to continue for Executive any bonus plan in which Executive participated immediately prior to the Change in Control or a failure by the Company to continue Executive as a participant in such plan on at least the same basis as Executive participated in such plan prior to the Change in Control;

(iv) After a Change in Control, the Company’s transfer of Executive to another geographic location outside of New Jersey or more than 25 miles from his present office location, except for required travel on the Company’s business to an extent substantially consistent with Executive’s business travel obligations immediately prior to such Change in Control;

(v) The failure by the Company to continue in effect for Executive any employee benefit plan, program or arrangement (including, without limitation any 401(k) plan, pension plan, life insurance plan, health and accident plan, disability plan, or stock option plan) in which Executive is participating immediately prior to a Change in Control (except that the Company may institute or continue plans, programs or arrangements providing Executive with substantially similar benefits); the taking of any action by the Company after a Change in Control which would adversely affect Executive’s participation in or materially reduce Executive’s benefits under, any of such plans, programs or arrangements, the failure to continue, or the taking of any action which would deprive

3

Executive, of any material fringe benefit enjoyed by Executive immediately prior to such Change in Control; or the failure by the Company to provide Executive with the number of paid vacation days to which Executive was entitled immediately prior to such Change in Control; or

(vi) The failure by the Company to obtain an assumption in writing of the obligations of the Company to perform this Agreement by any successor to the Company and to provide such assumption to the Executive upon consummation of the event giving rise to the Change in Control.

2. Employment. During the Contract Period, the Company hereby agrees to employ the Executive, and the Executive hereby accepts employment, upon the terms and conditions set forth herein.

3. Position. During the Contract Period, the Executive shall be employed as Executive Vice President and Chief Risk Officer of the Company or such other corporate or divisional profit center as shall then be the principal successor to the business, assets and properties of the Company, with the same title and the same duties and responsibilities as before the Change in Control. The Executive shall devote his full time and attention to the business of the Company, and shall not during the Contract Period be engaged in any other business activity. This paragraph shall not be construed as preventing the Executive from managing any investments of his which do not require any service on his part in the operation of such investments.

4. Cash Compensation. The Company shall pay to the Executive salary and bonus compensation for his services during the Contract Period as follows:

a. Annual Salary. An Annual salary equal to the annual salary in effect immediately prior to Change in Control. The annual salary shall be payable in installments in accordance with the Company’s usual payroll method. The annual salary shall not be reduced during the Contract Period.

b. Annual Bonus. An Annual cash bonus equal to the highest annual bonus paid to the Executive during the three most recent fiscal years prior to the Change in Control. The bonus shall be payable at the time and in the manner which the Company paid such bonuses prior to the Change in Control.

5. Expenses and Fringe Benefits. During the Contract Period, the Executive shall be entitled to reimbursement for all business expenses incurred by him with respect to the business of the Company in the same manner and to the same extent as such expenses were previously reimbursed to him immediately prior to the Change in Control. If prior to the Change in Control, the Executive was entitled to the use of an automobile, he shall be entitled to the same use of an automobile at least comparable to the automobile provided to him prior to the Change in Control, and he shall be entitled to vacations and sick days, in accordance with the practices and procedures of the Company, as such existed immediately prior to the Change in Control. During the Contract Period, the Executive also shall be entitled to hospital, health, medical and life insurance, and any other benefits enjoyed, from time to time, by Executive officers of the Company, all upon terms as favorable as those enjoyed by other Executive officers of the

4

Company. Notwithstanding anything in this section to the contrary, if the Company adopts any change in the expenses allowed to, or fringe benefits provided for, Executive officers of the Company, and such policy is uniformly applied to all Executive officers of the Company (and any successor or acquirer of the Company, if any), including the chief executive officer of such entities, then no such change shall be deemed to be contrary to this Section.

All reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A of the Code (as defined in Section 9 below), including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit.

6. Termination for Cause. The Company shall have the right to terminate the Executive for Cause, upon written notice to him of the termination which notice shall specify the reasons for the termination. In the event of a valid termination for Cause, the Executive shall not be entitled to any further compensation or benefits under this Agreement.

7. Disability. During the Contract Period, if the Executive becomes permanently disabled, or is unable to perform his duties hereunder for six consecutive months, the Company may terminate the employment of the Executive. In such event, the Executive shall not be entitled to any further benefits under this Agreement other than payments under any disability policy which the Company may obtain for the benefit of senior officers generally.

8. Death Benefits. Upon the Executive’s death during the Contract Period, the Executive shall be entitled to the benefits of any life insurance policy paid for by the Company which provides, permits and allows the Executive to name a beneficiary other than the Company, but his estate shall not be entitled to any further benefits under this Agreement or any other life insurance policy, except for such policies or benefits customarily provided to employees of the Bank.

9. Termination Without Cause or Resignation for Good Reason. The Company may terminate the Executive without Cause during the Contract Period by written notice to the Executive, or the Executive may resign for Good Reason during the Contract Period upon four weeks’ prior written notice to the Company specifying the Good Reason. If the Company terminates the Executive’s employment during the Contract Period without Cause or if the Executive resigns during the Contract Period for Good Reason, the Company shall, within 20 business days of the Executive’s termination of employment, pay the Executive a lump sum equal to two times the highest annual compensation, including only salary and cash bonus, paid the Executive during any of the three calendar years

5

immediately prior to the Change in Control (the “Lump Sum Payment”). During the remainder of the Contract Period, the Company also shall continue to provide the Executive with and pay for medical and hospital insurance, disability insurance and life insurance, as were provided and paid for at the time of the termination of his employment with the Company; provided, that such insurance coverage shall be provided only to the extent permitted under the terms and conditions of the Company’s employee benefit plans. The Executive shall also have the right to purchase from the Company, at book value price, such automobile of the Company, if any, as was used by the Executive while employed by the Company; provided, that the Executive exercises such right within 10 days of his termination of employment and completes the purchase transaction within 30 days of his termination of employment. The Executive shall not have a duty to mitigate the damages suffered by him in connection with the termination by the Company of his employment without Cause or a resignation for Good Reason during the Contract Period.

The Lump Sum Payment is intended to be administered and interpreted in a manner such that it shall not be subject to “additional tax” within the meaning of Section 409A(a)(1)(B) of the Code. Notwithstanding any provision of this Agreement to the contrary, if and to the extent necessary to comply with the restriction in Section 409A(a)(2)(B) of the Code concerning payments to “specified employees,” the Lump Sum Payment shall be paid on the first business day of the seventh month following the Executive’s separation from service with the Company, and shall be paid together with interest accrued during the period of such restriction at a rate, per annum, equal to the applicable federal short-term rate (compounded monthly) in effect under Section 1274(d) of the Code on the date of termination. Notwithstanding provision of this Agreement to the contrary, the Executive shall not be considered to have terminated employment with the Company for purposes of this Section 9 unless he would be considered to have incurred a “termination of employment” from the Company within the meaning of Treasury Regulation §1.409A-1(h)(1)(ii).

The Executive acknowledges that any tax liability incurred by the Executive under Section 409A of the Code is solely the responsibility of the Executive.

For purposes of the foregoing, the Executive’s salary and cash bonus shall be determined without regard to any reductions to such amounts made at the election of the Executive, including without limitation, reductions pursuant to any deferral election under a 401(k) plan or deferred compensation plan or arrangement or contributions made under a “cafeteria plan” within the meaning of Section 125 of the Internal Revenue Code of 1986, as amended.

6

10. Resignation Without Good Reason. The Executive shall be entitled to resign from the employment of the Company at any time during the Contract Period without Good Reason, but upon such resignation the Executive shall not be entitled to any additional compensation for the time after which he ceases to be employed by the Company, and shall not be entitled to any of the other benefits provided hereunder. No such resignation shall be effective unless in writing with four weeks^’ notice thereof.

11. Non-Disclosure of Confidential Information. In consideration of the covenants of the Company herein, the Executive agrees as follows:

a. The Executive hereby agrees and acknowledges that he has and has had access to or is aware of Confidential Information. The Executive hereby agrees that he shall keep strictly confidential and will not during and after his employment with the Company, without the Company’s express written consent, divulge, furnish or make accessible to any person or entity, or make use of for the benefit of himself or others, any Confidential Information obtained, possessed, or known by him except as required in the regular course of performing the duties and responsibilities of his employment by the Company while in the employ of the Company, and that he will, prior to or upon the date on which his employment with the Company terminates (the “Date of Termination”) deliver or return to the Company all such Confidential Information that is in written or other physical or recorded form or which has been reduced to written or other physical or recorded form, and all copies thereof, in his possession, custody or control. The foregoing covenant shall not apply to (i) any Confidential Information that becomes generally known or available to the public other than as a result of a breach of the agreements of the Executive contained herein, (ii) any disclosure of Confidential Information by the Executive that is expressly required by judicial or administrative order; provided however that the Executive shall have (x) notified the Company as promptly as possible of the existence, terms and circumstances of any notice, subpoena or other process or order issued by a court or administrative authority that may require him to disclose any Confidential Information, and (y) cooperated with the Company, at the Company’s request, in taking legally available steps to resist or narrow such process or order and to obtain an order or other reliable assurance that confidential treatment will be given to such Confidential Information as is required to be disclosed.

b. For purposes of this Agreement, “Confidential Information” means all non-public or proprietary information, data, trade secrets, “know-how”, or technology with respect to any products, designs, improvements, research, styles, techniques, suppliers, clients, markets, methods of distribution, accounting, advertising and promotion, pricing, sales, finances, costs, profits, financial condition, organization, personnel, business systems (including without limitation computer systems, software and programs), business activities, operations, budgets, plans, prospects, objectives or strategies of the Company.

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12. Post-Employment Obligations. In consideration of the covenants of the Company herein, the Executive agrees as follows:

a. The Executive agrees that while he is in the employ of the Company and for a one year period after the Date of Termination (unless such termination is by the Company without Cause), he shall not, without the prior written consent of the Company, directly or indirectly, and regardless of the reason for his ceasing to be employed by the Company, employ, solicit for employment, or advise or recommend to any other person that they employ or solicit for employment or retention as a consultant, any person who is, or was at any time within twelve (12) months prior to the Date of Termination, an employee of, or exclusive consultant to, the Company.

b. If the Executive commits a breach or is about to commit a breach, of any of the provisions of Sections 11 or 12 hereof, the Company shall have the right to have the provisions of this Agreement specifically enforced by any court having equity jurisdiction without being required to post bond or other security and without having to prove the inadequacy of the available remedies at law, it being acknowledged and agreed that any such breach or threatened breach will cause irreparable injury to the Company that money damages will not provide an adequate remedy to the Company. In addition, the Company may take all such other actions and remedies available to them under law or in equity and shall be entitled to such damages as they can show they have sustained by reason of such breach.

c. The parties acknowledge that the type and periods of restriction imposed in the provisions of Sections 11 and 12 hereof are fair and reasonable and are reasonably required for the protection of the Company and the goodwill associated with the business of the Company; and that the provisions of Sections 11 and 12 have been specifically negotiated by sophisticated parties and are given as an integral part of this Agreement.

13. No Effect Prior to Change in Control. This Agreement shall not affect any rights of the Company or the Executive prior to a Change in Control or any rights of the Executive granted in any other agreement, plan or arrangements. The rights, duties and benefits provided hereunder shall only become effective upon a Change in Control. If the employment of the Executive by the Company is terminated for any reason prior to a Change in Control, this Agreement shall thereafter be of no further force and effect.

14. Certain Reduction of Payments by the Company.

a. Anything in this Agreement to the contrary notwithstanding, prior to the payment of any compensation or benefits payable under Section 9 hereof, the certified public accountants of the Company immediately prior to a Change of Control (the ^“Certified Public Accountants”) shall determine as promptly as practical and in any event within 20 business days following the termination of employment of Executive whether any payment or distribution by the Company to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a “Payment”) would more likely than not be nondeductible by the Company for Federal income purposes because of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and if it is then the aggregate present value of amounts payable or distributable to or for the benefit of Executive

8

pursuant to this Agreement are hereinafter referred to as “Agreement Payments” shall be reduced (but not below zero) to the Reduced Amount. For purposes of this paragraph, the “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate present value of Agreement Payments without causing any Payment to be nondeductible by the Company because of said Section 280G of the Code.

b. If under paragraph a of this section the Certified Public Accountants determine that any Payment would more likely than not be nondeductible by the Company because of Section 280G of the Code, the Company shall promptly give the Executive notice to that effect and a copy of the detailed calculation thereof and of the Reduced Amount, and the Executive may then elect, in his sole discretion, which and how much of the Agreement Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Agreement Payments equals the Reduced Amount), and shall advise the Company in writing of his election within 20 business days of his receipt of notice. If no such election is made by the Executive within such 20-day period, the Company may elect which and how much of the Agreement Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Agreement Payments equals the Reduced Amount) and shall notify the Executive promptly of such election. For purposes of this paragraph, present value shall be determined in accordance with Section 280G (d) (4) of the Code. All determinations made by the Certified Public Accountants shall be binding upon the Company and Executive and shall be made within 20 days of a termination of employment of Executive. The Company may suspend for a period of up to 30 days after termination of employment the Lump Sum Payment and any other payments or benefits due to the Executive under Section 9 hereof until the Certified Public Accountants finish the determination and the Executive (or the Company, as the case may be) elect how to reduce the Agreement Payments, if necessary. As promptly as practicable following such determination and the elections hereunder, the Company shall pay to or distribute to or for the benefit of Executive such amounts as are then due to Executive under this Agreement and shall promptly pay to or distribute for the benefit of Executive in the future such amounts as become due to Executive under this Agreement.

c. As a result of the uncertainty in the application of Section 280G of the Code, it is possible that Agreement Payments may have been made by the Company which should not have been made (“Overpayment”) or that additional Agreement Payments which will have not been made by the Company could have been made (“Underpayment^”), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Certified Public Accountants, based upon the assertion of a deficiency by the Internal Revenue Service against the Company or Executive which said Certified Public Accountant believe has a high probability of success, determines that an Overpayment has been made, any such Overpayment shall be treated for all purposes as a loan to Executive which Executive shall repay to the Company together with interest at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code; provided, however, that no amount shall be payable by Executive to the

9

Company in and to the extent such payment would not reduce the amount which is subject to taxation under Section 4999 of the Code. In the event that the Certified Public Accountants, based upon controlling precedent, determine that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive together with interest at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code.

15. Severance Compensation and Benefits Not in Derogation of other Benefits. Anything to the contrary herein contained notwithstanding, the payment or obligation to pay any monies, or granting of any benefits, rights or privileges to Executive as provided in this Agreement now has or will have under any plans or programs of the Company, except that the Executive shall not be in lieu or derogation of the rights and privileges that the Executive now has or will have under any plans or programs of the Company, except that the Executive shall not be entitled to the benefits of any other plan or program of the Company expressly providing for severance or termination pay if the Executive is terminated without Cause or resigns for Good Reason after a Change in Control.

16. Miscellaneous. The terms of this Agreement shall be governed by, and interpreted and construed in accordance with the provisions of, the laws of New Jersey and, to the applicable, federal law. This Agreement supersedes all prior agreements and understandings with respect to the matters covered hereby. The amendment or termination of this Agreement may be made only in writing executed by the Company and the Executive, and no amendment or termination of this Agreement shall be effective unless and until made in such in writing. This Agreement shall be binding upon any successor (whether direct or indirect, by purchase, merge, consolidation, liquidation or otherwise) to all or substantially all of the assets of the Company. This Agreement is personal to the Executive and the Executive may not assign any of his rights or duties hereunder but this Agreement shall be enforceable by the Executive’s legal representatives, executors or administrators. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and it shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart.

IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its duly authorized representatives pursuant to the authority of its Board, and the Executive has personally executed this Agreement, all as of the day and year first written above.

LAKELAND BANCORP, INC.
By:	/s/ Thomas J. Shara
	Thomas J. Shara, President and CEO

10

LAKELAND BANK
By:	/s/ Thomas J. Shara
	Thomas J. Shara, President and CEO
Executive:
/s/ James Nigro
JAMES NIGRO

11

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Thomas J. Shara, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Lakeland Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2016

/s/ Thomas J. Shara

Thomas J. Shara

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Joseph F. Hurley, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Lakeland Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 10, 2016

/s/ Joseph F. Hurley

Joseph F. Hurley

Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Lakeland Bancorp, Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2016 filed with the Securities and Exchange Commission (the “Report”), Thomas J. Shara, President and Chief Executive Officer of the Company, and Joseph F. Hurley, Executive Vice President and Chief Financial Officer of the Company, each certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that based on his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and consolidated results of operations of the Company for the periods presented.

Dated: May 10, 2016

By:	/s/ Thomas J. Shara
	Thomas J. Shara, President
	and Chief Executive Officer
By:	/s/ Joseph F. Hurley
	Joseph F. Hurley
	Executive Vice President and
	Chief Financial Officer

This certification has been furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	LBAI
Entity Registrant Name	LAKELAND BANCORP INC
Entity Central Index Key	0000846901
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		41,240,992

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS:
Cash	$ 188,414	$ 113,894
Interest-bearing deposits due from banks	25,205	4,599
Total cash and cash equivalents	213,619	118,493
Investment securities available for sale, at fair value	441,147	442,349
Investment securities held to maturity; fair value of $118,357 at March 31, 2016 and $117,594 at December 31, 2015	115,796	116,740
Federal Home Loan Bank and other membership bank stock, at cost	16,193	14,087
Loans held for sale	1,150	1,233
Loans, net of deferred costs (fees)	3,366,372	2,965,200
Less: allowance for loan and lease losses	30,553	30,874
Net loans	3,335,819	2,934,326
Premises and equipment, net	49,929	35,881
Accrued interest receivable	10,658	9,208
Goodwill	125,443	109,974
Other identifiable intangible assets	2,891	1,545
Bank owned life insurance	65,769	65,361
Other assets	25,819	20,353
TOTAL ASSETS	4,404,233	3,869,550
Deposits:
Noninterest bearing	774,487	693,741
Savings and interest-bearing transaction accounts	2,204,356	1,958,510
Time deposits $250 thousand and under	348,825	270,623
Time deposits over $250 thousand	134,968	72,698
Total deposits	3,462,636	2,995,572
Federal funds purchased and securities sold under agreements to repurchase	128,841	151,234
Other borrowings	310,031	271,905
Subordinated debentures	31,238	31,238
Other liabilities	24,612	19,085
TOTAL LIABILITIES	3,957,358	3,469,034
STOCKHOLDERS' EQUITY
Common stock, no par value; authorized shares, 70,000,000; issued 41,240,824 shares at March 31, 2016 and 37,906,481 shares at December 31, 2015	424,101	386,287
Retained earnings	17,662	13,079
Accumulated other comprehensive income	5,112	1,150
TOTAL STOCKHOLDERS' EQUITY	446,875	400,516
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 4,404,233	$ 3,869,550

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Investment securities held to maturity; fair value	$ 118,357	$ 117,594
Common stock, par value
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	41,240,824	37,906,481

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
INTEREST INCOME
Loans, leases and fees	$ 34,121	$ 27,896
Federal funds sold and interest-bearing deposits with banks	75	12
Taxable investment securities and other	2,962	2,674
Tax-exempt investment securities	413	410
TOTAL INTEREST INCOME	37,571	30,992
INTEREST EXPENSE
Deposits	2,205	1,283
Federal funds purchased and securities sold under agreements to repurchase	38	22
Other borrowings	1,478	1,169
TOTAL INTEREST EXPENSE	3,721	2,474
NET INTEREST INCOME	33,850	28,518
Provision for loan and lease losses	1,075	870
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES	32,775	27,648
NONINTEREST INCOME
Service charges on deposit accounts	2,442	2,340
Commissions and fees	979	1,307
Gains on sales of investment securities	370
Gains on sales of loans	420	265
Income on bank owned life insurance	408	699
Other income	248	127
TOTAL NONINTEREST INCOME	4,867	4,738
NONINTEREST EXPENSE
Salaries and employee benefits	14,085	11,750
Net occupancy expense	2,688	2,548
Furniture and equipment	1,946	1,656
Stationery, supplies and postage	443	365
Marketing expense	309	240
FDIC insurance expense	590	518
Data processing expense	520	335
Telecommunications expense	424	345
ATM and debit card expense	346	342
Expenses on other real estate owned and other repossessed assets	39	(8)
Merger related expenses	1,721
Core deposit intangible amortization	167	111
Other expenses	2,146	1,840
TOTAL NONINTEREST EXPENSE	25,424	20,042
Income before provision for income taxes	12,218	12,344
Income tax expense	4,110	4,014
NET INCOME	$ 8,108	$ 8,330
PER SHARE OF COMMON STOCK
Basic earnings	$ 0.20	$ 0.22
Diluted earnings	0.20	0.22
Dividends	$ 0.085	$ 0.075

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 8,108	$ 8,330
OTHER COMPREHENSIVE INCOME, NET OF TAX:
Unrealized securities gains during period	4,157	2,675
Reclassification for gains included in net income	(233)
Change in pension liability, net	38	5
Other Comprehensive Income	3,962	2,680
TOTAL COMPREHENSIVE INCOME	$ 12,070	$ 11,010

XML

Consolidated Statements of Changes in Stockholders' Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands	Total	Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]
BALANCE at Dec. 31, 2015	$ 400,516	$ 386,287	$ 13,079	$ 1,150
NET INCOME	8,108		8,108
Other comprehensive income, net of tax	3,962			3,962
Stock based compensation	754	754
Retirement of restricted stock	(161)	(161)
Issuance of stock for Pascack acquisition	37,221	37,221
Cash dividends, common stock	(3,525)		(3,525)
BALANCE at Mar. 31, 2016	$ 446,875	$ 424,101	$ 17,662	$ 5,112

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME	$ 8,108	$ 8,330
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization of premiums, discounts and deferred loan fees and costs	757	874
Depreciation and amortization	878	849
Amortization of intangible assets	167	111
Provision for loan and lease losses	1,075	870
Loans originated for sale	(14,786)	(11,976)
Proceeds from sales of loans	15,289	11,235
Gains on sales of securities	(370)
Gains on proceeds of bank owned life insurance		(332)
Gains on sales of loans held for sale	(420)	(265)
Gains on other real estate and other repossessed assets	(9)	(94)
Losses on sales of premises and equipment	66	3
Stock-based compensation	754	567
Increase in other assets	(3,138)	(1,954)
(Decrease) increase in other liabilities	(912)	410
NET CASH PROVIDED BY OPERATING ACTIVITIES	7,459	8,628
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash acquired in acquisition	40,942
Proceeds from repayments on and maturity of securities:
Available for sale	22,455	19,309
Held to maturity	9,053	4,162
Proceeds from sales of securities
Available for sale	15,654
Purchase of securities:
Available for sale	(26,843)	(31,706)
Held to maturity	(8,218)	(12,100)
Purchase of bank owned life insurance		(4,078)
Proceeds from bank owned life insurance policy		772
Net decrease (increase) in Federal Home Loan Bank Stock	856	(910)
Net increase in loans and leases	(83,387)	(37,298)
Proceeds from sales of other real estate and repossessed assets	463	559
Proceeds from dispositions and sales of premises and equipment	10
Capital expenditures	(977)	(947)
NET CASH USED IN INVESTING ACTIVITIES	(29,992)	(62,237)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits	162,738	51,783
(Decrease) increase in federal funds purchased and securities sold under agreements to repurchase	(22,393)	8,416
Proceeds from other borrowings		20,230
Repayments of other borrowings	(19,000)
Excess tax benefits		58
Exercise of stock options		93
Retirement of restricted stock	(161)	(230)
Dividends paid	(3,525)	(2,852)
NET CASH PROVIDED BY FINANCING ACTIVITIES	117,659	77,498
Net increase in cash and cash equivalents	95,126	23,889
Cash and cash equivalents, beginning of period	118,493	109,316
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 213,619	$ 133,205

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Significant Accounting Policies

Note 1. Significant Accounting Policies

Basis of Presentation.

This quarterly report presents the consolidated financial statements of Lakeland Bancorp, Inc. (the Company) and its subsidiary, Lakeland Bank (“Lakeland” or “Lakeland Bank”). The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (U.S. GAAP) and predominant practices within the banking industry.

The Company’s unaudited interim financial statements reflect all adjustments, such as normal recurring accruals that are, in the opinion of management, necessary for the fair presentation of the results of the interim periods. The results of operations for the three months ended March 31, 2016 do not necessarily indicate the results that the Company will achieve for all of 2016. You should read these interim financial statements in conjunction with the audited consolidated financial statements and accompanying notes that are presented in the Lakeland Bancorp, Inc. Annual Report on Form 10-K for the year ended December 31, 2015.

On January 7, 2016, the Company completed its acquisition of Pascack Bancorp, Inc. (“Pascack”). For more information, see Note 2 below.

The financial information in this quarterly report has been prepared in accordance with the Company’s customary accounting practices. Certain information and footnote disclosures required under U.S. GAAP have been condensed or omitted, as permitted by rules and regulations of the Securities and Exchange Commission.

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Acquisitions

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Acquisitions

Note 2. Acquisitions

Harmony Bank

Lakeland Bancorp, Lakeland Bank and Harmony Bank signed a merger agreement on February 17, 2016, pursuant to which Harmony Bank will be merged with and into Lakeland Bank, with Lakeland Bank as the surviving bank. The merger agreement provides that shareholders of Harmony Bank will receive 1.25 shares of Lakeland Bancorp common stock for each share of Harmony Bank common stock that they own at the effective time of the merger. Lakeland Bancorp expects to issue an aggregate of approximately 3.0 million shares of its common stock in the merger and will cash out Harmony Bank options that remain outstanding at the effective time of the merger. The closing of the merger is subject to receipt of approvals from regulators, approval of the merger by Harmony Bank’s shareholders and other customary conditions. Harmony Bank, a New Jersey state-chartered commercial bank that focuses on serving consumers and small-to-medium-size businesses, is headquartered in Jackson, New Jersey, with additional branch offices in Lakewood and Toms River, New Jersey. As of December 31, 2015, Harmony Bank had total assets, total loans, total deposits and total stockholders’ equity of $295 million, $241 million, $257 million and $28 million, respectively.

Pascack Bancorp

On January 7, 2016, the Company completed its acquisition of Pascack Bancorp, Inc. (“Pascack”), a bank holding company headquartered in Waldwick, New Jersey. Pascack was the parent of Pascack Community Bank. This acquisition enables the Company to broaden its presence in Bergen and Essex counties. Effective as of the close of business on January 7, 2016, Pascack merged into the Company, and Pascack Community Bank merged into Lakeland Bank. The Merger Agreement provided that the shareholders of Pascack would receive, at their election, for each outstanding share of Pascack common stock that they own at the effective time of the merger, either 0.9576 shares of Lakeland Bancorp common stock or $11.35 in cash, subject to proration as described in the Merger Agreement, so that 90% of the aggregate merger consideration was shares of Lakeland Bancorp common stock and 10% was cash. Lakeland Bancorp issued an aggregate of 3,314,284 shares of its common stock in the merger and paid approximately $4.4 million in cash excluding the cash paid in connection with the cancellation of Pascack stock options. Outstanding Pascack stock options were paid out in cash at the difference between $11.35 and an average strike price of $7.37 for a total cash payment of $122,000. As of January 7, 2016, Pascack had total assets, total loans, total deposits and total stockholders’ equity of $390 million, $320 million, $303 million and $27 million, respectively.

The acquisition was accounted for under the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at their estimated fair values as of the acquisition date. Pascack’s assets were recorded at their preliminary estimated fair values as of January 7, 2016 and Pascack’s results of operations will be included in the Company’s Consolidated Statements of Income from that date forward.

The assets acquired and liabilities assumed in the acquisition were recorded at their estimated fair values based on management’s best estimates using information available at the date of the acquisition, including the use of a third party valuation specialist. The fair values are preliminary estimates and subject to adjustment for up to one year after the closing date of the acquisition. The following table summarizes the estimated fair value of the acquired assets and liabilities (in thousands).

Consideration Paid
Lakeland Bancorp stock issued	$	37,221
Cash Payment		4,367
Fair value of Pascack stock options converted to Lakeland Bancorp stock options		122
Total Consideration Paid	$	41,710
Recognized amounts of identifiable assets and liabilities assumed at fair value
Cash and cash equivalents	$	45,431
Securities held to maturity		3,925
Federal Home Loan Bank stock		2,962
Loans and leases		319,575
Premises and equipment		14,438
Identifiable intangible assets		1,514
Accrued interest receivable and other assets		6,672
Deposits		(304,466	)
Other borrowings		(57,308	)
Other liabilities		(6,502	)
Total identifiable assets	$	26,241
Goodwill	$	15,469

Loans acquired in the Pascack acquisition were recorded at fair value and subsequently accounted for in accordance with ASC Topic 310, and there was no carryover related allowance for loan and lease losses. The fair values of loans acquired from Pascack were estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted for estimated future credit losses and the rate of prepayments. Projected cash flows were then discounted to present value using a risk-adjusted market rate for similar loans.

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

	Acquired		Acquired
	Credit		Non-Credit		Total
	Impaired		Impaired		Acquired
(in thousands)	Loans		Loans		Loans
Contractually required principal and interest at acquisition	$	4,932	$	442,401	$	447,333
Contractual cash flows not expected to be collected (non-accretable difference)		4,030		—		4,030
Expected cash flows at acquisition	$	902	$	442,401	$	443,303
Interest component of expected cash flows (accretable difference)		85		123,643		123,728
Fair value of acquired loans	$	817	$	318,758	$	319,575

The core deposit intangible totaled $1.5 million and is being estimated over its estimated useful life of approximately 10 years using an accelerated method. The goodwill will be evaluated annually for impairment. The goodwill is not deductible for tax purposes.

The fair values of deposit liabilities with no stated maturities such as checking, money market and savings accounts, were assumed to equal the carrying amounts since these deposits are payable on demand. The fair values of certificates of deposits and IRAs represent the present value of contractual cash flows discounted at market rates for similar certificates of deposit.

Direct costs related to the acquisition were expensed as incurred. During the three months ended March 31, 2016, the Company incurred $1.7 million of merger and acquisition integration-related expenses, which have been separately stated in the Company’s Consolidated Statements of Income.

Supplemental Pro Forma Financial Information

The following table presents financial information regarding the former Pascack operations included in our Consolidated Statements of Income from the date of the acquisition (January 7, 2016) through March 31, 2016 under the column “Actual from acquisition date through March 31, 2016.” In addition, the table provides unaudited condensed pro forma financial information assuming that the Pascack acquisition had been completed as of January 1, 2016, for the three months ended March 31, 2016 and as of January 1, 2015 for the three months ended March 31, 2015. The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited proforma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings or the impact of conforming certain accounting policies of the acquired company to the Company’s policies that may have occurred as a result of the integration and consolidation of Pascack’s operations. 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.

	Actual from
	acquisition to		Pro-forma		Pro-forma
(in thousands)	March 31, 2016		March 31, 2016		March 31, 2015
Net interest income	$	3,098	$	34,107	$	32,116
Provision for loan losses		—		1,075		870
Noninterest income		102		4,871		4,866
Noninterest expense		1,653		23,948		22,670
Net income		1,037		9,350		8,955
Earnings per share:
Fully diluted			$	0.23	$	0.22

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Share-Based Compensation

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Note 3. Share-Based Compensation

The Company grants stock options, restricted stock and restricted stock units (RSUs) under the 2009 Equity Compensation Program. Share-based compensation expense of $754,000 and $567,000 was recognized for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there was unrecognized compensation cost of $324,000 related to unvested restricted stock; that cost is expected to be recognized over a weighted average period of approximately 1.2 years. Unrecognized compensation expense related to unvested stock options was approximately $41,000 as of March 31, 2016 and is expected to be recognized over a period of 1.2 years. Unrecognized compensation expense related to RSUs was approximately $1.9 million as of March 31, 2016, and that cost is expected to be recognized over a period of 1.2 years.

In the first three months of 2016, the Company granted 23,952 shares of restricted stock to non-employee directors at a grant date fair value of $10.02 per share under the 2009 Equity Compensation Program. The restricted stock vests one year from the date it was granted. Compensation expense on this restricted stock is expected to be $240,000 over a one year period.

In the first three months of 2016, the Company granted 139,726 RSUs at a weighted average grant date fair value of $10.04 per share under the Company’s 2009 Equity Compensation Program. These units vest within a range of two to three years. A portion of these RSUs will vest subject to certain performance conditions in the restricted stock unit agreement. There are also certain provisions in the compensation program which state that if a holder of the RSUs reaches a certain age and years of service, the person has effectively earned a portion of the RSUs at that time. Compensation expense on the restricted stock units issued in the first quarter of 2016 is expected to average approximately $468,000 per year over a three year period. In the first three months of 2015, the Company granted 120,509 RSUs at a weighted average grant date fair value of $11.01 per share under the Company’s 2009 Equity Compensation Program. Compensation expense on these restricted stock units is expected to average approximately $442,000 per year over a three year period.

There were no grants of stock options in the first three months of 2016 or 2015.

Option activity under the Company’s stock option plans is as follows:

					Weighted
					average
			Weighted		remaining
			average		contractual
	Number of		exercise		term		Aggregate
	shares		price		( in years)		intrinsic value
Outstanding, January 1, 2016		175,892	$	8.38			$	602,236
Granted		—
Exercised		—
Forfeited		—
Expired		—
Outstanding, March 31, 2016		175,892	$	8.38		4.78	$	313,773
Options exercisable at March 31, 2016		154,891	$	8.22		4.45	$	298,471

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the first three months of 2016 and the exercise price, multiplied by the number of in-the-money options).

There were no stock options exercised during the first three months of 2016. The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2015 was $50,000. Exercise of stock options during the first three months of 2015 resulted in cash receipts of $93,000.

Information regarding the Company’s restricted stock and changes during the three months ended March 31, 2016 is as follows:

				Weighted
	Number of			average
	shares			price
Outstanding, January 1, 2016		73,500		$	9.33
Granted		23,952			10.02
Vested		(54,360	)		9.33
Forfeited		—			—
Outstanding, March 31, 2016		43,092		$	9.71

Information regarding the Company’s RSUs and changes during the three months ended March 31, 2016 is as follows:

				Weighted
	Number of			average
	shares			price
Outstanding, January 1, 2016		200,910		$	10.87
Granted		139,726			10.04
Vested		(66,748	)		10.28
Forfeited		(763	)		10.80
Outstanding, March 31, 2016		273,125		$	10.59

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Comprehensive Income

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Comprehensive Income

Note 4. Comprehensive Income

The components of other comprehensive income are as follows:

	March 31, 2016									March 31, 2015
	Before			Tax Benefit			Net of			Before		Tax Benefit			Net of
For the quarter ended:	tax amount			(Expense)			tax amount			tax amount		(Expense)			tax amount
	(in thousands)									(in thousands)
Net unrealized gains on available for sale securities
Net unrealized holding gains arising during period	$	6,563		($	2,406	)	$	4,157		$	4,225	($	1,550	)	$	2,675
Reclassification adjustment for net gains arising during the period		(370	)		137			(233	)		—		—			—
Net unrealized gains	$	6,193		($	2,269	)	$	3,924		$	4,225	($	1,550	)	$	2,675
Change in minimum pension liability		64			(26	)		38			8		(3	)		5
Other comprehensive income, net	$	6,257		($	2,295	)	$	3,962		$	4,233	($	1,553	)	$	2,680

The following table shows the changes in the balances of each of the components of other comprehensive income for the periods presented (in thousands):

Changes in Accumulated Other Comprehensive Income by Component (a)

	For the Three Months Ended									For the Three Months Ended
	March 31, 2016									March 31, 2015
	Unrealized									Unrealized Gains
	Gains on									(Losses) on
	Available-for-sale									Available-for-sale
	Securities			Pension Items			Total			Securities		Pension Items			Total
	(in thousands)
Beginning Balance	$	1,154		($	4	)	$	1,150		$	1,531	($	8	)	$	1,523
Other comprehensive income before classifications		4,157			38			4,195			2,675		5			2,680
Amounts reclassified from accumulated other comprehensive income		(233	)		—			(233	)		—		—			—
Net current period other comprehensive income		3,924			38			3,962			2,675		5			2,680
Ending balance	$	5,078		$	34		$	5,112		$	4,206	($	3	)	$	4,203

(a) all amounts are net of tax.

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Statement of Cash Flow Information, Supplemental Information

3 Months Ended

Mar. 31, 2016

Supplemental Cash Flow Elements [Abstract]

Statement of Cash Flow Information, Supplemental Information

Note 5. Statement of Cash Flow Information, Supplemental Information

	For the Three Months Ended
	March 31,
	2016			2015
	(in thousands)
Supplemental schedule of noncash investing and financing activities:
Cash paid during the period for income taxes	$	4,575		$	4,706
Cash paid during the period for interest		3,569			2,403
Transfer of loans and leases into other repossessed assets and other real estate owned		263			266
Acquisition of Pascack:
Non-cash assets acquired:
Federal Home Loan Bank stock		2,962			—
Investment securities held for maturity		3,925			—
Loans, including loans held for sale		319,575			—
Goodwill and other intangible assets, net		16,983			—
Other assets		21,110			—
Total non-cash assets acquired		364,555			—
Liabilities assumed:
Deposits		(304,466	)		—
Other borrowings		(57,308	)		—
Other liabilities		(6,502	)		—
Total liabilities assumed		(368,276	)		—
Common stock issued and fair value of stock options converted to Lakeland Bancorp stock options		37,221			—

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Earnings Per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Note 6. Earnings Per Share

The following schedule shows the Company’s earnings per share for the periods presented:

	For the Three Months Ended
	March 31,
(In thousands, except per share data)	2016		2015
Net income available to common shareholders	$	8,108	$	8,330
Less: earnings allocated to participating securities		58		50
Net income allocated to common shareholders	$	8,050	$	8,280
Weighted average number of common shares outstanding - basic		40,931		37,800
Share-based plans		161		137
Weighted average number of common shares - diluted		41,092		37,937
Basic earnings per share	$	0.20	$	0.22
Diluted earnings per share	$	0.20	$	0.22

There were no antidilutive options to purchase common stock to be excluded from the computation for the three months ended March 31, 2016.

Options to purchase 113,023 shares of common stock at a weighted average price of $12.06 per share were outstanding and were not included in the computations of diluted earnings per share for the three months ended March 31, 2015 because the exercise price was greater than the average market price

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Investment Securities

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 7. Investment Securities

AVAILABLE FOR SALE	March 31, 2016									December 31, 2015
			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
	(in thousands)									(in thousands)
U.S. treasury and U.S. government agencies	$	85,624	$	1,320	$	—		$	86,944	$	97,617	$	190	$	(674	)	$	97,133
Mortgage-backed securities, residential		284,449		3,825		(473	)		287,801		280,018		1,717		(2,283	)		279,452
Mortgage-backed securities, multifamily		10,235		217		—			10,452		10,249		—		(129	)		10,120
Obligations of states and political subdivisions		35,734		1,118		(25	)		36,827		35,639		910		(51	)		36,498
Other debt securities		500		1		—			501		498		3		—			501
Equity securities		16,634		2,260		(272	)		18,622		16,550		2,393		(298	)		18,645
	$	433,176	$	8,741	$	(770	)	$	441,147	$	440,571	$	5,213	$	(3,435	)	$	442,349
HELD TO MATURITY	March 31, 2016									December 31, 2015
			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
	(in thousands)									(in thousands)
U.S. government agencies	$	28,519	$	852	$	—		$	29,371	$	30,477	$	289	$	(94	)	$	30,672
Mortgage-backed securities, residential		36,976		652		(79	)		37,549		36,466		411		(426	)		36,451
Mortgage-backed securities, multifamily		2,134		7		(5	)		2,136		2,159		—		(60	)		2,099
Obligations of states and political subdivisions		46,148		1,067		(6	)		47,209		45,617		809		(156	)		46,270
Other debt securities		2,019		73		—			2,092		2,021		81		—			2,102
	$	115,796	$	2,651	$	(90	)	$	118,357	$	116,740	$	1,590	$	(736	)	$	117,594

The following table shows investment securities by stated maturity. Securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay, and are, therefore, classified separately with no specific maturity date (in thousands):

	March 31, 2016
	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	3,438	$	3,458	$	8,393	$	8,393
Due after one year through five years		73,180		74,520		18,505		18,958
Due after five years through ten years		40,364		41,317		43,365		44,716
Due after ten years		4,876		4,977		6,423		6,605
		121,858		124,272		76,686		78,672
Mortgage-backed securities		294,684		298,253		39,110		39,685
Equity securities		16,634		18,622		—		—
Total securities	$	433,176	$	441,147	$	115,796	$	118,357

The following table shows proceeds from sales of securities and gross gains on sales of securities for the periods indicated (in thousands):

	For the Three Months Ended
	March 31,
	2016		2015
Sale proceeds	$	15,654	$	—
Gross gains		370		—

There were no losses on sales of securities or other-than-temporary impairments for the three months ended March 31, 2016 or 2015.

Gains or losses on sales of investment securities are based on the net proceeds and the adjusted carrying amount of the securities sold using the specific identification method.

Securities with a carrying value of approximately $361.7 million and $347.7 million at March 31, 2016 and December 31, 2015, respectively, were pledged to secure public deposits and for other purposes required by applicable laws and regulations.

The following table indicates the length of time individual securities have been in a continuous unrealized loss position at March 31, 2016 and December 31, 2015:

March 31, 2016	Less than 12 months				12 months or longer				Total
			Unrealized				Unrealized		Number of				Unrealized
AVAILABLE FOR SALE	Fair value		Losses		Fair value		Losses		securities		Fair value		Losses
					(dollars in thousands)
Mortgage-backed securities, residential	$	27,362	$	105	$	54,644	$	368		27	$	82,006	$	473
Obligations of states and political subdivisions		785		4		1,179		21		2		1,964		25
Equity securities		711		49		4,731		223		4		5,442		272
	$	28,858	$	158	$	60,554	$	612		33	$	89,412	$	770
HELD TO MATURITY
Mortgage-backed securities, residential	$	2,592	$	3	$	6,467	$	76		5	$	9,059	$	79
Mortgage-backed securities, multifamily		—		—		903		5		1		903		5
Obligations of states and political subdivisions		7,214		4		752		2		8		7,966		6
	$	9,806	$	7	$	8,122	$	83		14	$	17,928	$	90
December 31, 2015	Less than 12 months				12 months or longer				Total
			Unrealized				Unrealized		Number of				Unrealized
AVAILABLE FOR SALE	Fair value		Losses		Fair value		Losses		securities		Fair value		Losses
					(dollars in thousands)
U.S. treasury and U.S. government agencies	$	80,192	$	674	$	—	$	—		16	$	80,192	$	674
Mortgage-backed securities, residential		103,749		1,043		50,095		1,240		50		153,844		2,283
Mortgage-backed securities, multifamily		10,120		129		—		—		2		10,120		129
Obligations of states and political subdivisions		2,051		4		1,466		47		7		3,517		51
Equity securities		247		24		4,643		274		3		4,890		298
	$	196,359	$	1,874	$	56,204	$	1,561		78	$	252,563	$	3,435
HELD TO MATURITY
U.S. government agencies	$	15,683	$	94	$	—	$	—		3	$	15,683	$	94
Mortgage-backed securities, residential		20,283		262		6,687		164		11		26,970		426
Mortgage-backed securities, multifamily		1,223		18		876		42		2		2,099		60
Obligations of states and political subdivisions		9,181		149		2,043		7		15		11,224		156
	$	46,370	$	523	$	9,606	$	213		31	$	55,976	$	736

Management has evaluated the securities in the above table and has concluded that none of the securities are other-than-temporarily impaired. The cause of the fair values being below cost is due to interest rate movements and is deemed temporary. All investment securities are evaluated on a periodic basis to identify any factors that would require a further analysis. In evaluating the Company’s securities, management considers the following items:

• The Company’s ability and intent to hold the securities, including an evaluation of the need to sell the security to meet certain liquidity measures, or whether the Company has sufficient levels of cash to hold the identified security in order to recover the entire amortized cost of the security;

• The financial condition of the underlying issuer;

• The credit ratings of the underlying issuer and if any changes in the credit rating have occurred;

• The length of time the security’s fair value has been less than amortized cost; and

• Adverse conditions related to the security or its issuer if the issuer has failed to make scheduled payments or other factors.

If the above factors indicate that an additional analysis is required, management will perform and consider the results of a discounted cash flow analysis.

As of March 31, 2016, the equity securities include investments in other financial institutions for market appreciation purposes. Those equities had a purchase price of $2.7 million and a market value of $4.8 million as of March 31, 2016.

As of March 31, 2016, equity securities also included $13.8 million in investment funds that do not have a quoted market price but use net asset value per share or its equivalent to measure fair value.

The funds include $2.9 million in funds that are primarily invested in community development loans that are guaranteed by the Small Business Administration (SBA). Because the funds are primarily guaranteed by the federal government there are minimal changes in market value between accounting periods. These funds can be redeemed with 60 days notice at the net asset value less unpaid management fees with the approval of the fund manager. As of March 31, 2016, the net amortized cost equaled the market value of the investment. There are no unfunded commitments related to this investment.

The funds also include $10.9 million in funds that are invested in government guaranteed loans, mortgage-backed securities, small business loans and other instruments supporting affordable housing and economic development. The Company may redeem these funds at the net asset value calculated at the end of the current business day less any unpaid management fees. As of March 31, 2016, the amortized cost of these securities was $11.0 million and the fair value was $10.9 million. There are no restrictions on redemptions for the holdings in these investments other than the notice required by the fund manager. There are no unfunded commitments related to this investment.

XML

Loans, Leases and Other Real Estate

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Loans, Leases and Other Real Estate

Note 8. Loans, Leases and Other Real Estate.

The following sets forth the composition of Lakeland’s loan and lease portfolio as of March 31, 2016 and December 31, 2015:

	March 31,			December 31,
	2016			2015
	(in thousands)
Commercial, secured by real estate	$	2,118,682		$	1,761,589
Commercial, industrial and other		332,097			307,044
Leases		60,925			56,660
Real estate - residential mortgage		392,387			389,692
Real estate - construction		124,653			118,070
Home equity and consumer		340,217			334,891
Total loans		3,368,961			2,967,946
Less: deferred fees		(2,589	)		(2,746	)
Loans, net of deferred fees	$	3,366,372		$	2,965,200

At March 31, 2016 and December 31, 2015, home equity and consumer loans included overdraft deposit balances of $460,000 and $705,000, respectively. At March 31, 2016 and December 31, 2015, the Company had $842.7 million and $738.7 million in loans pledged for actual and potential borrowings at the Federal Home Loan Bank of New York (FHLB).

The carrying value of acquired loans acquired and accounted for in accordance with ASC Subtopic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” was $0.8 million at March 31, 2016, which was substantially the same as the balance at the Pascack acquisition date of January 7, 2016. Under ASC Subtopic 310-30, loans may be aggregated and accounted for as pools of loans if the loans being aggregated have common risk characteristics. The Company elected to account for the loans with evidence of credit deterioration individually rather than aggregate them into pools. The difference between the undiscounted cash flows expected at acquisition and the investment in the acquired loans, or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of each loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment, as a loss accrual or as a valuation allowance.

Increases in expected cash flows subsequent to the acquisition are recognized prospectively through an adjustment of the yield on the loans over the remaining life, while decreases in expected cash flows are recognized as impairments through a loss provision and an increase in the allowance for loan and lease losses. Valuation allowances (recognized in the allowance for loan and lease losses) on these impaired loans reflect only losses incurred after the acquisition (representing all cash flows that were expected at acquisition but currently are not expected to be received).

There were no material increases or decreases in the expected cash flows between January 7, 2016 and March 31, 2016. The Company recognized $16,000 of interest income on the credit impaired loans acquired.

Non-Performing Assets and Past Due Loans

The following schedule sets forth certain information regarding the Company’s non-performing assets and its accruing troubled debt restructurings:

	March 31,		December 31,
(in thousands)	2016		2015
Commercial, secured by real estate	$	11,943	$	10,446
Commercial, industrial and other		1,163		103
Leases		282		316
Real estate - residential mortgage		8,330		8,664
Home equity and consumer		3,249		3,167
Total non-accrual loans and leases	$	24,967	$	22,696
Other real estate and other repossessed assets		792		983
TOTAL NON-PERFORMING ASSETS	$	25,759	$	23,679
Troubled debt restructurings, still accruing	$	10,545	$	10,108

Non-accrual loans included $2.1 million and $2.5 million of troubled debt restructurings as of March 31, 2016 and December 31, 2015, respectively. As of March 31, 2016 and December 31, 2015, the Company had $7.1 million and $7.9 million, respectively, in residential mortgages and consumer home equity loans that were in the process of foreclosure.

An age analysis of past due loans, segregated by class of loans as of March 31, 2016 and December 31, 2015, is as follows:

													Recorded
					Greater						Total		Investment greater
	30-59 Days		60-89 Days		Than		Total				Loans		than 89 Days and
	Past Due		Past Due		89 Days		Past Due		Current		and Leases		still accruing
	(in thousands)
March 31, 2016
Commercial, secured by real estate	$	5,274	$	3,450	$	10,514	$	19,238	$	2,099,444	$	2,118,682	$	—
Commercial, industrial and other		92		—		251		343		331,754		332,097		—
Leases		161		85		282		528		60,397		60,925		—
Real estate - residential mortgage		1,365		215		8,329		9,909		382,478		392,387		—
Real estate - construction		—		—		—		—		124,653		124,653		—
Home equity and consumer		1,220		171		2,620		4,011		336,206		340,217		101
	$	8,112	$	3,921	$	21,996	$	34,029	$	3,334,932	$	3,368,961	$	101
December 31, 2015
Commercial, secured by real estate	$	1,465	$	693	$	7,853	$	10,011	$	1,751,578	$	1,761,589	$	—
Commercial, industrial and other		205		—		103		308		306,736		307,044		—
Leases		62		26		316		404		56,256		56,660		—
Real estate - residential mortgage		1,361		725		7,472		9,558		380,134		389,692		—
Real estate - construction		—		—		—		—		118,070		118,070		—
Home equity and consumer		876		141		3,498		4,515		330,376		334,891		331
	$	3,969	$	1,585	$	19,242	$	24,796	$	2,943,150	$	2,967,946	$	331

Impaired Loans

The Company defines impaired loans as all non-accrual loans and leases with recorded investments of $500,000 or greater. Impaired loans also includes all loans modified in troubled debt restructurings. Impaired loans as of March 31, 2016, March 31, 2015 and December 31, 2015 are as follows:

			Contractual
	Recorded		Unpaid				Interest		Average
	Investment in		Principal		Specific		Income		Investment in
March 31, 2016	Impaired loans		Balance		Allowance		Recognized		Impaired loans
	(in thousands)
Loans without specific allowance:
Commercial, secured by real estate	$	13,636	$	14,721	$	—	$	61	$	13,437
Commercial, industrial and other		773		793		—		1		237
Leases		—		—		—		—		—
Real estate - residential mortgage		2,187		2,194		—		4		2,187
Real estate - construction		—		—		—		—		—
Home equity and consumer		552		552		—		—		552
Loans with specific allowance:
Commercial, secured by real estate		6,262		6,339		488		69		6,273
Commercial, industrial and other		991		991		41		11		991
Leases		3		3		—		—		3
Real estate - residential mortgage		824		716		63		9		826
Real estate - construction		375		375		4		4		375
Home equity and consumer		1,271		1,271		105		14		1,174
Total:
Commercial, secured by real estate	$	19,898	$	21,060	$	488	$	130	$	19,710
Commercial, industrial and other		1,764		1,784		41		12		1,228
Leases		3		3		—		—		3
Real estate - residential mortgage		3,011		2,910		63		13		3,013
Real estate - construction		375		375		4		4		375
Home equity and consumer		1,823		1,823		105		14		1,726
	$	26,874	$	27,955	$	701	$	173	$	26,055

			Contractual
	Recorded		Unpaid				Interest		Average
	Investment in		Principal		Specific		Income		Investment in
March 31, 2015	Impaired loans		Balance		Allowance		Recognized		Impaired loans
	(in thousands)
Loans without specific allowance:
Commercial, secured by real estate	$	12,802	$	15,058	$	—	$	99	$	13,177
Commercial, industrial and other		1,177		1,281		—		3		233
Leases		—		—		—		—		—
Real estate - residential mortgage		2,160		2,160		—		4		2,162
Real estate - construction		169		169		—		—		178
Home equity and consumer		765		765		—		—		741
Loans with specific allowance:
Commercial, secured by real estate		5,563		5,695		351		58		5,449
Commercial, industrial and other		684		1,191		5		5		695
Leases		14		14		14		—		—
Real estate - residential mortgage		753		753		72		9		753
Real estate - construction		394		394		2		1		92
Home equity and consumer		1,331		1,331		1,014		16		1,243
Total:
Commercial, secured by real estate	$	18,365	$	20,753	$	351	$	157	$	18,626
Commercial, industrial and other		1,861		2,472		5		8		928
Leases		14		14		14		—		—
Real estate - residential mortgage		2,913		2,913		72		13		2,915
Real estate - construction		563		563		2		1		270
Home equity and consumer		2,096		2,096		1,014		16		1,984
	$	25,812	$	28,811	$	1,458	$	195	$	24,723

			Contractual
	Recorded		Unpaid				Interest		Average
	Investment in		Principal		Specific		Income		Investment in
December 31, 2015	Impaired loans		Balance		Allowance		Recognized		Impaired loans
	(in thousands)
Loans without specific allowance:
Commercial, secured by real estate	$	14,065	$	14,712	$	—	$	344	$	12,928
Commercial, industrial and other		209		887		—		14		749
Leases		—		—		—		—		—
Real estate - residential mortgage		2,195		2,242		—		—		2,096
Real estate - construction		—		—		—		—		94
Home equity and consumer		574		575		—		5		762
Loans with specific allowance:
Commercial, secured by real estate		5,721		5,918		598		271		6,249
Commercial, industrial and other		1,023		1,023		77		32		717
Leases		6		6		1		—		—
Real estate - residential mortgage		832		865		73		37		840
Real estate - construction		380		380		21		13		308
Home equity and consumer		1,001		1,013		73		54		1,006
Total:
Commercial, secured by real estate	$	19,786	$	20,630	$	598	$	615	$	19,177
Commercial, industrial and other		1,232		1,910		77		46		1,466
Leases		6		6		1		—		—
Real estate - residential mortgage		3,027		3,107		73		37		2,936
Real estate - construction		380		380		21		13		402
Home equity and consumer		1,575		1,588		73		59		1,768
	$	26,006	$	27,621	$	843	$	770	$	25,749

Interest that would have been accrued on impaired loans during the first three months of 2016 and 2015 had the loans been performing under original terms would have been $450,000 and $420,000, respectively. Interest that would have accrued for the year ended December 31, 2015 was $1.6 million.

Credit Quality Indicators

The class of loans are determined by internal risk rating. Management closely and continually monitors the quality of its loans and leases and assesses the quantitative and qualitative risks arising from the credit quality of its loans and leases. It is the policy of Lakeland to require that a Credit Risk Rating be assigned to all commercial loans and loan commitments. The Credit Risk Rating System has been developed by management to provide a methodology to be used by Loan Officers, department heads and Senior Management in identifying various levels of credit risk that exist within Lakeland’s loan portfolios. The risk rating system assists Senior Management in evaluating Lakeland’s commercial loan portfolio, analyzing trends, and determining the proper level of required reserves to be recommended to the Board. In assigning risk ratings, management considers, among other things, a borrower’s debt service coverage, earnings strength, loan to value ratios, industry conditions and economic conditions. Management categorizes commercial loans and commitments into a one (1) to nine (9) numerical structure with rating 1 being the strongest rating and rating 9 being the weakest. Ratings 1 through 5W are considered ‘Pass’ ratings.

The following table shows the Company’s commercial loan portfolio as of March 31, 2016 and December 31, 2015, by the risk ratings discussed above (in thousands):

March 31, 2016	Commercial,		Commercial,
	secured by		industrial		Real estate-
Risk Rating	real estate		and other		construction
1	$	—		4,188	$	—
2		—		11,252		—
3		92,705		59,705		—
4		667,804		121,085		16,466
5		1,207,653		110,240		104,961
5W - Watch		62,758		7,572		146
6 - Other Assets Especially Mentioned		37,417		5,912		1,846
7 - Substandard		50,345		12,143		1,234
8 - Doubtful		—		—		—
9 - Loss		—		—		—
Total	$	2,118,682	$	332,097	$	124,653
December 31, 2015	Commercial,		Commercial,
	secured by		industrial		Real estate-
Risk Rating	real estate		and other		construction
1	$	—	$	3,517	$	—
2		—		9,662		—
3		65,199		56,895		—
4		526,909		111,702		19,125
5		1,044,888		105,301		94,535
5W - Watch		43,342		4,259		146
6 - Other Assets Especially Mentioned		34,570		4,105		1,851
7 - Substandard		46,681		11,603		2,413
8 - Doubtful		—		—		—
9 - Loss		—		—		—
Total	$	1,761,589	$	307,044	$	118,070

The risk rating tables above do not include consumer or residential loans or leases because they are evaluated on their payment status.

Allowance for Loan and Lease Losses

In 2015, The Company refined and enhanced its assessment of the adequacy of the allowance for loan and lease losses by extending the lookback period on its commercial loan portfolios from three years to five years and by extending the lookback period for all other portfolios from two to three years in order to capture more of the economic cycle. It also enhanced its qualitative factor framework to include a factor that captures the risk related to appraised real estate values, and how those values could change in relation to a change in capitalization rates. This enhancement is meant to increase the level of precision in the allowance for loan and lease losses. As a result, the Company will no longer have an “unallocated” segment in its allowance for loan losses, as the risks and uncertainties meant to be captured by the unallocated allowance have been included in the qualitative framework for the respective portfolios. As such, the unallocated allowance has in essence been reallocated to the certain portfolios based on the risks and uncertainties it was meant to capture.

The following table details activity in the allowance for loan and lease losses by portfolio segment for the three months ended March 31, 2016 and 2015:

	Commercial,			Commercial,						Real estate-						Home
Three Months Ended March 31, 2016	secured by			industrial						residential			Real estate-			equity and
Allowance for Loan and Lease Losses:	real estate			and other			Leases			mortgage			construction			consumer			Unallocated		Total
	(in thousands)
Beginning Balance	$	20,223		$	2,637		$	460		$	2,588		$	1,591		$	3,375		$	0	$	30,874
Charge-offs		(135	)		(625	)		(70	)		(93	)		—			(620	)		—		(1,543	)
Recoveries		55			42			1			3			—			46			—		147
Provision		(66	)		543			197			(232	)		(87	)		720			—		1,075
Ending Balance	$	20,077		$	2,597		$	588		$	2,266		$	1,504		$	3,521		$	—	$	30,553
	Commercial,			Commercial,						Real estate-						Home
Three Months Ended March 31, 2015	secured by			industrial						residential			Real estate-			equity and
Allowance for Loan and Lease Losses:	real estate			and other			Leases			mortgage			construction			consumer			Unallocated		Total
	(in thousands)
Beginning Balance	$	13,577		$	3,196		$	582		$	4,020		$	553		$	6,333		$	2,423	$	30,684
Charge-offs		(546	)		(10	)		(427	)		(17	)		(20	)		(261	)		—		(1,281	)
Recoveries		39			42			20			1			100			30			—		232
Provision		(510	)		79			863			(706	)		4			822			318		870
Ending Balance	$	12,560		$	3,307		$	1,038		$	3,298		$	637		$	6,924		$	2,741	$	30,505

Loans receivable summarized by portfolio segment and impairment method are as follows:

	Commercial,		Commercial,				Real estate-				Home
	secured by		industrial				residential		Real estate-		equity and
	real estate		and other		Leases		mortgage		construction		consumer		Total
	(in thousands)
At March 31, 2016
Ending Balance: Individually evaluated for impairment	$	19,898	$	1,764	$	3	$	3,011	$	375	$	1,823	$	26,874
Ending Balance: Collectively evaluated for impairment		2,098,460		329,885		60,922		389,376		124,278		338,371	$	3,341,292
Ending Balance: Loans acquired with deteriorated credit quality		324		448		—		—		—		23	$	795
Ending Balance (1)	$	2,118,682	$	332,097	$	60,925	$	392,387	$	124,653	$	340,217	$	3,368,961

(1) Excludes deferred fees

	Commercial,		Commercial,				Real estate-				Home
	secured by		industrial				residential		Real estate-		equity and
	real estate		and other		Leases		mortgage		construction		consumer		Total
	(in thousands)
At December 31, 2015
Ending Balance: Individually evaluated for impairment	$	19,786	$	1,232	$	6	$	3,027	$	380	$	1,575	$	26,006
Ending Balance: Collectively evaluated for impairment		1,741,803		305,812		56,654		386,665		117,690		333,316	$	2,941,940
Ending Balance (1)	$	1,761,589	$	307,044	$	56,660	$	389,692	$	118,070	$	334,891	$	2,967,946

(1) Excludes deferred fees

The allowance for loan and lease losses is summarized by portfolio segment and impairment classification as follows:

	Commercial,		Commercial,				Real estate-				Home
	secured by		industrial				residential		Real estate-		equity and
	real estate		and other		Leases		mortgage		construction		consumer		Total
	(in thousands)
At March 31, 2016
Ending Balance: Individually evaluated for impairment	$	488	$	41	$	—	$	63	$	4	$	105	$	701
Ending Balance: Collectively evaluated for impairment		19,589		2,556		588		2,203		1,500		3,416	$	29,852
Ending Balance: Loans acquired with deteriorated credit quality		—		—		—		—		—		—		—
Ending Balance	$	20,077	$	2,597	$	588	$	2,266	$	1,504	$	3,521	$	30,553
	Commercial,		Commercial,				Real estate-				Home
	secured by		industrial				residential		Real estate-		equity and
	real estate		and other		Leases		mortgage		construction		consumer		Total
	(in thousands)
At December 31, 2015
Ending Balance: Individually evaluated for impairment	$	598	$	77	$	1	$	73	$	21	$	73	$	843
Ending Balance: Collectively evaluated for impairment		19,625		2,560		459		2,515		1,570		3,302	$	30,031
Ending Balance	$	20,223	$	2,637	$	460	$	2,588	$	1,591	$	3,375	$	30,874

Lakeland also maintains a reserve for unfunded lending commitments which is included in other liabilities. This reserve was $2.2 million and $2.0 million at March 31, 2016 and December 31, 2015, respectively. The Company analyzes the adequacy of the reserve for unfunded lending commitments in conjunction with its analysis of the adequacy of the allowance for loan and lease losses. For more information on this analysis, see “Risk Elements” in Management’s Discussion and Analysis.

Troubled Debt Restructurings

Troubled debt restructurings are those loans where concessions have been made due to borrowers’ financial difficulties. Restructured loans typically involve a modification of terms such as a reduction of the stated interest rate, a moratorium of principal payments and/or an extension of the maturity date at a stated interest rate lower than the current market rate of a new loan with similar risk. The Company considers the potential losses on these loans as well as the remainder of its impaired loans while considering the adequacy of the allowance for loan and lease losses.

The following table summarizes loans that have been restructured during the three months ended March 31, 2016 and 2015:

	For the Three Months Ended						For the Three Months Ended
	March 31, 2016						March 31, 2015
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
	(Dollars in thousands)						(Dollars in thousands)
Troubled Debt Restructurings:
Commercial, secured by real estate		—	$	—	$	—		—	$	—	$	—
Commercial, industrial and other		—		—		—		1		1,149		1,149
Leases		—		—		—		1		14		14
Real estate—residential mortgage		—		—		—		—		—		—
Real estate—construction		—		—		—		1		396		396
Home equity and consumer		3		285		285		1		9		9
		3	$	285	$	285		4	$	1,568	$	1,568

The following table summarizes as of March 31, 2016 and 2015, loans that were restructured within the previous 12 months that have subsequently defaulted:

	March 31, 2016				March 31, 2015
	Number of		Recorded		Number of		Recorded
	Contracts		Investment		Contracts		Investment
	(Dollars in thousands)				(Dollars in thousands)
Defaulted Troubled Debt Restructurings:
Commercial, secured by real estate		1	$	635		—	$	—
Commercial, industrial and other		—		—		—		—
Leases		—		—		—		—
Real estate - residential mortgage		—		—		1		483
Real estate—construction		—		—		—		—
Home equity and consumer		2		227		1		2
		3	$	862		2	$	485

Mortgages Held for Sale

Residential mortgages originated by the bank and held for sale in the secondary market are carried at the lower of cost or fair market value. Fair market value is generally determined by the value of purchase commitments on individual loans. Losses are recorded as a valuation allowance and charged to earnings. The Company had $1.2 million in mortgages held for sale for each of the periods ending March 31, 2016 and December 31, 2015.

Other Real Estate and Other Repossessed Assets

At March 31, 2016, the Company had other real estate owned and other repossessed assets of $776,000 and $16,000, respectively. At December 31, 2015, the Company had other real estate owned and other repossessed assets of $934,000 and $49,000, respectively. The other real estate owned that the Company held at March 31, 2016 and December 31, 2015 included $648,000 and $805,000, respectively, in residential property acquired as a result of foreclosure proceedings or through a deed in lieu of foreclosure.

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Estimated Fair Value of Financial Instruments and Fair Value Measurement

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Estimated Fair Value of Financial Instruments and Fair Value Measurement

Note 9. Estimated Fair Value of Financial Instruments and Fair Value Measurement

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest level priority to unobservable inputs (level 3 measurements). The following describes the three levels of fair value hierarchy:

Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities; includes U.S. Treasury Notes, and other U.S. Government Agency securities that actively trade in over-the-counter markets; equity securities and mutual funds that actively trade in over-the-counter markets.

Level 2 – quoted prices for similar assets or liabilities in active markets; or quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability including yield curves, volatilities, and prepayment speeds.

Level 3 – unobservable inputs for the asset or liability that reflect the Company’s own assumptions about assumptions that market participants would use in the pricing of the asset or liability and that are consequently not based on market activity but upon particular valuation techniques.

The Company’s assets that are measured at fair value on a recurring basis are it’s available for sale investment securities. The Company obtains fair values on its securities using information from a third party servicer. If quoted prices for securities are available in an active market, those securities are classified as Level 1 securities. The Company has U.S. Treasury Notes and certain equity securities that are classified as Level 1 securities. Level 2 securities were primarily comprised of U.S. Agency bonds, residential mortgage-backed securities, obligations of state and political subdivisions and corporate securities. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, issuer spreads, bids and offers. On a quarterly basis, the Company reviews the pricing information received from the Company’s third party pricing service. This review includes a comparison to non-binding third-party quotes.

The fair values of derivatives are based on valuation models from a third party using current market terms (including interest rates and fees), the remaining terms of the agreements and the credit worthiness of the counter party as of the measurement date (Level 2).

The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of the periods presented by level within the fair value hierarchy. During the three months ended March 31, 2016, the Company did not make any transfers between any levels within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
			(in thousands)
March 31, 2016
Assets:
Investment securities, available for sale
U.S. treasury and government agencies	$	86,944	$	6,014	$	80,930	$	—
Mortgage backed securities		298,253		—		298,253		—
Obligations of states and political subdivisions		36,827		—		36,827		—
Other debt securities		501		—		501		—
Equity securities		4,833		4,825		8		—
Investments measured at net asset value*		13,789
Total securities available for sale		441,147		10,839		416,519		—
Non-hedging interest rate derivatives		3,505		—		3,505		—
Total Assets		444,652	$	10,839	$	420,024	$	—
Non-hedging interest rate derivatives	$	3,505	$	—	$	3,505	$	—
Total Liabilities	$	3,505	$	—	$	3,505	$	—
December 31, 2015
Assets:
Investment securities, available for sale
U.S. treasury and government agencies	$	97,133	$	4,888	$	92,245	$	—
Mortgage backed securities		289,572		—		289,572		—
Obligations of states and political subdivisions		36,498		—		36,498		—
Other debt securities		501		—		501		—
Equity securities		5,060		5,052		8		—
Investments measured at net asset value*		13,585
Total securities available for sale		442,349		9,940		418,824		—
Non-hedging interest rate derivatives		1,518		—		1,518		—
Total Assets		443,867	$	9,940	$	420,342	$	—
Non-hedging interest rate derivatives	$	1,518	$	—	$	1,518	$	—
Total Liabilities	$	1,518	$	—	$	1,518	$	—

* Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.

The following table sets forth the Company’s assets subject to fair value adjustments (impairment) on a nonrecurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	Quoted Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Total
	(Level 1)		(Level 2)		(Level 3)		Fair Value
	(in thousands)
March 31, 2016
Assets:
Impaired Loans and Leases	$	—	$	—	$	26,874	$	26,874
Loans held for sale		—		1,150		—		1,150
Other real estate owned and other repossessed assets		—		—		792		792
December 31, 2015
Assets:
Impaired Loans and Leases	$	—	$	—	$	26,006	$	26,006
Loans held for sale		—		1,233		—		1,233
Other real estate owned and other repossessed assets		—		—		983		983

Impaired loans are evaluated and valued at the time the loan is identified as impaired at the lower of cost or market value of the underlying collateral. Because most of Lakeland’s impaired loans are collateral dependent, fair value is generally measured based on the value of the collateral, less estimated costs to sell, securing these loans and leases and is classified at a level 3 in the fair value hierarchy. Collateral may be real estate, accounts receivable, inventory, equipment and/or other business assets. The value of the real estate is assessed based on appraisals by qualified third party licensed appraisers. The appraisers may use the sales comparison approach, the cost approach or the income approach to value the collateral using discount rates (with ranges of 5-11%) or capitalization rates (with ranges of 4-9%) to evaluate the property. The value of the equipment may be determined by an appraiser, if significant, inquiry through a recognized valuation resource, or by the value on the borrower’s financial statements. Field examiner reviews on business assets may be conducted based on the loan exposure and reliance on this type of collateral. Appraised and reported values may be adjusted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Loans that are not collateral dependent are evaluated based on a discounted cash flow method. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above.

The Company has a held for sale loan portfolio that consists of residential mortgages that are being sold in the secondary market. The Company records these mortgages at the lower of cost or market value. Fair value is generally determined by the value of purchase commitments.

Other real estate owned (OREO) and other repossessed assets, representing property acquired through foreclosure, are recorded at fair value less estimated disposal costs of the acquired property on the date of acquisition and thereafter remeasured and carried at lower of cost or fair market value. Fair value on other real estate owned is based on the appraised value of the collateral using the sales comparison approach or the income approach with discount rates or capitalization rates similar to those used in impaired loan valuation. The fair value of other repossessed assets is estimated by inquiry through recognized valuation resources.

Changes in the assumptions or methodologies used to estimate fair values may materially affect the estimated amounts. Changes in economic conditions, locally or nationally, could impact the value of the estimated amounts of impaired loans, OREO and other repossessed assets.

Fair Value of Certain Financial Instruments

Estimated fair values have been determined by the Company using the best available data and an estimation methodology suitable for each category of financial instruments. Management is concerned that there may not be reasonable comparability between institutions due to the wide range of permitted assumptions and methodologies in the absence of active markets. This lack of uniformity gives rise to a high degree of subjectivity in estimating financial instrument fair values.

The estimation methodologies used, the estimated fair values, and recorded book balances at March 31, 2016 and December 31, 2015 are outlined below.

This summary, as well as the table below, excludes financial assets and liabilities for which carrying value approximates fair value. For financial assets, these include cash and cash equivalents. For financial liabilities, these include noninterest bearing demand deposits, savings and interest-bearing transaction accounts and federal funds sold and securities sold under agreements to repurchase. The estimated fair value of demand, savings and interest-bearing transaction accounts is the amount payable on demand at the reporting date. Carrying value is used because there is no stated maturity on these accounts, and the customer has the ability to withdraw the funds immediately. Also excluded from this summary and the following table are those financial instruments recorded at fair value on a recurring basis, as previously described.

The fair value of Investment Securities Held to Maturity was measured using information from the same third-party servicer used for Investment Securities Available for Sale using the same methodologies discussed above. Investment Securities Held to Maturity includes $8.1 million in short-term municipal bond anticipation notes and $1.0 million in subordinated debt that are non-rated and do not have an active secondary market or information readily available on standard financial systems. As a result, the securities are classified as Level 3 securities. These are investments that management performs a credit analysis on before investing in these securities.

FHLB stock is an equity interest that can be sold to the issuing FHLB, to other Federal Home Loan Banks, or to other member banks at its par value. Because ownership of these securities is restricted, they do not have a readily determinable fair value. As such, the Company’s FHLB Stock is recorded at cost or par value and is evaluated for impairment each reporting period by considering the ultimate recoverability of the investment rather than temporary declines in value. The Company’s evaluation primarily includes an evaluation of liquidity, capitalization, operating performance, commitments, and regulatory or legislative events.

The net loan portfolio at March 31, 2016 and December 31, 2015 has been valued using a present value discounted cash flow where market prices were not available. The discount rate used in these calculations is the estimated current market rate adjusted for credit risk. The valuation of the Company’s loan portfolio is consistent with accounting guidance but does not fully incorporate the exit price approach.

For fixed maturity certificates of deposit, fair value was estimated based on the present value of discounted cash flows using the rates currently offered for deposits of similar remaining maturities. The carrying amount of accrued interest payable approximates its fair value.

The fair value of long-term debt is based upon the discounted value of contractual cash flows. The Company estimates the discount rate using the rates currently offered for similar borrowing arrangements. The fair value of subordinated debentures is based on bid/ask prices from brokers for similar types of instruments.

The fair values of commitments to extend credit and standby letters of credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of guarantees and letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to extend credit and standby letters of credit are deemed immaterial.

The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2016 and December 31, 2015:

					Quoted Prices in		Significant
					Active Markets		Other		Significant
					for Identical		Observable		Unobservable
	Carrying		Fair		Assets		Inputs		Inputs
	Value		Value		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
March 31, 2016
Financial Instruments - Assets
Investment securities held to maturity	$	115,796	$	118,357	$	—	$	109,253	$	9,104
Federal Home Loan Bank and other membership bank stocks		16,193		16,193		—		16,193		—
Loans and leases, net		3,335,819		3,346,814		—		—		3,346,814
Financial Instruments - Liabilities
Certificates of Deposit		483,793		484,520		—		484,520		—
Other borrowings		310,031		314,739		—		314,739		—
Subordinated debentures		31,238		21,867		—		—		21,867
December 31, 2015
Financial Instruments - Assets
Investment securities held to maturity	$	116,740	$	117,594	$	—	$	110,293	$	7,301
Federal Home Loan Bank and other membership bank stocks		14,087		14,087		—		14,087		—
Loans and leases, net		2,934,326		2,930,188		—		—		2,930,188
Financial Instruments - Liabilities
Certificates of Deposit		343,321		341,998		—		341,998		—
Other borrowings		271,905		275,409		—		275,409		—
Subordinated debentures		31,238		24,366		—		—		24,366

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Derivatives

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Note 10. Derivatives

Lakeland is a party to interest rate derivatives that are not designated as hedging instruments. Under a program, Lakeland executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Lakeland executes with a third party, such that Lakeland minimizes its net risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties. As of March 31, 2016 and December 31, 2015, Lakeland had $4.6 million and $2.5 million, respectively, in available for sale securities pledged for collateral on its interest rate swaps with the financial institution.

The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands):

				Average		Weighted Average			Weighted Average
March 31, 2016	Notional Amount			Maturity (Years)		Fixed Rate			Variable Rate	Fair Value
Customer interest rate swaps	$	46,263			13.3		4.360	%	1 Mo Libor + 1.99	$	3,505
3rd Party interest rate swaps		(46,263	)		13.3		4.360	%	1 Mo Libor + 1.99		(3,505	)
				Average		Weighted Average			Weighted Average
December 31, 2015	Notional Amount			Maturity (Years)		Fixed Rate			Variable Rate	Fair Value
Customer interest rate swaps	$	35,664			14.6		4.540	%	1 Mo Libor + 2.00	$	1,518
3rd party interest rate swaps		(35,664	)		14.6		4.540	%	1 Mo Libor + 2.00		(1,518	)

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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 11. Goodwill and Intangible Assets

The Company has recorded goodwill of $125.4 million and $110.0 million at March 31, 2016 and December 31, 2015, respectively, which includes $15.5 million from the Pascack merger in 2016, $22.9 million from the Somerset Hills acquisition in 2013 and $87.1 million from prior acquisitions. The Company reviews its goodwill and intangible assets annually, on November 30, or more frequently if conditions warrant, for impairment. In testing goodwill for impairment, the Company compares the estimated fair value of its reporting unit to its carrying amount, including goodwill. The Company has determined that it has one reporting unit, Community Banking.

The Company recorded $1.5 million and $2.7 million in core deposit intangible for the Pascack and Somerset Hills acquisitions, respectively. Year-to-date, it has amortized $167,000 in core deposit intangible including $69,000 and $98,000 for Pascack and Somerset Hills, respectively. The estimated future amortization expense for the remainder of 2016 and for each of the succeeding five years ended December 31 is as follows (dollars in thousands):

			Somerset
For the year ended:		Pascack		Hills
2016	$	206	$	267
2017		248		316
2018		220		267
2019		193		218
2020		165		168
2021		138		119

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Borrowings

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Borrowings

Note 12. Borrowings

At March 31, 2016, the Company had federal funds purchased and securities sold under agreements to repurchase of $100.3 million and $28.5 million respectively. The securities sold under agreements to repurchase are overnight sweep arrangement accounts with our customers. The Company also had $50.0 million in long-term securities sold under agreements to repurchase included in other borrowings which have maturities ranging from one to seven years. As of March 31, 2016, the Company had $104.7 million in securities pledged for its securities sold under agreements to repurchase, including $103.7 million in mortgage backed securities and $1.0 million in U.S. government agency securities.

At times the market values of securities collateralizing our securities sold under agreements to repurchase may decline due to changes in interest rates and may necessitate our lenders to issue a “margin call” which requires Lakeland to pledge additional collateral to meet that margin call.

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Early Redemption and Extinguishment of Debt

3 Months Ended

Mar. 31, 2016

Text Block [Abstract]

Early Redemption and Extinguishment of Debt

Note 13. Early Redemption and Extinguishment of Debt

On August 3, 2015, The Company redeemed and extinguished $10.0 million of Lakeland Bancorp Capital Trust IV debentures and recorded a $1.8 million gain on the redemption and extinguishment of debt. The interest rate on this debenture floated at LIBOR plus 152 basis points and had a rate of 1.80% at the time of extinguishment.

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2016

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 14. Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update to simplify employee share-based payment accounting. The areas for simplification in this update involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2017. The Company is currently assessing the impact that the guidance will have on the Company’s consolidated financial statements.

In March, 2016, the FASB issued an accounting standards update that requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met, including the “clearly and closely related” criterion. The amendments in this update clarify the requirements for assessing whether contingent call or put options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2016. This guidance will be applied on a modified retrospective basis as of the beginning of the fiscal year that the amendment is effective. The adoption of this update is not expected to have a material impact on the Company’s financial statements.

In February 2016, FASB issued accounting guidance that requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact that the guidance will have on the Company’s consolidated financial statements.

In January 2016, the FASB issued an accounting standards update intended to improve the recognition and measurement of financial instruments. Specifically, the accounting standards update requires all equity instruments, with the exception of those that are accounted for under the equity method of accounting, to be measured at fair value with changes in the fair value recognized through net income. Additionally, public business entities are required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The amendments in this update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this update is not expected to have a material impact on the Company’s financial statements.

In September 2015, the FASB issued an accounting standards update simplifying the accounting for adjustments made to provisional amounts recognized in a business combination, eliminating the requirement to retrospectively account for those adjustments. To simplify the accounting for adjustments made to provisional amounts, the amendments in the accounting standards update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update did not have a material impact on the Company’s financial statements.

In May 2015, the FASB issued an accounting standards update clarifying how investments valued using the net asset value practical expedient within the fair value hierarchy should be classified. The accounting standards update was issued to address diversity in practice by exempting investments measured using the net asset value expedient from categorization in the fair value hierarchy. This accounting standards update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update did not have a material impact on the Company’s financial statements.

In April 2015, the FASB issued an accounting standards update requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability consistent with the presentation of debt discounts. The purpose of this update is to simplify the presentation of debt issuance costs and to align the U.S. GAAP presentation of debt more closely with international accounting standards. In August 2015, the FASB issued a subsequent update which discussed presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of these updates did not have a material impact on the Company’s financial statements.

In January 2015, the FASB issued an accounting standards update regarding the elimination of the concept of the extraordinary items from the statement of operations. The purpose of this update is to simplify the statement of operations presentation and to align the U.S. GAAP income statement more closely with international accounting standards. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update did not have a material impact on the Company’s financial statements.

In May 2014, the FASB issued an accounting standards update that clarifies the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. In March and April, 2016, the FASB issued further implementation guidance regarding revenue recognition. This additional guidance included clarification on certain principal versus agent considerations within the implementation of the guidance as well as clarification related to identifying performance obligations and licensing. The guidance along with its updates is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is still evaluating the potential impact on the Company’s financial statements.

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation.

This quarterly report presents the consolidated financial statements of Lakeland Bancorp, Inc. (the Company) and its subsidiary, Lakeland Bank (“Lakeland” or “Lakeland Bank”). The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (U.S. GAAP) and predominant practices within the banking industry.

The Company’s unaudited interim financial statements reflect all adjustments, such as normal recurring accruals that are, in the opinion of management, necessary for the fair presentation of the results of the interim periods. The results of operations for the three months ended March 31, 2016 do not necessarily indicate the results that the Company will achieve for all of 2016. You should read these interim financial statements in conjunction with the audited consolidated financial statements and accompanying notes that are presented in the Lakeland Bancorp, Inc. Annual Report on Form 10-K for the year ended December 31, 2015.

On January 7, 2016, the Company completed its acquisition of Pascack Bancorp, Inc. (“Pascack”). For more information, see Note 2 below.

The financial information in this quarterly report has been prepared in accordance with the Company’s customary accounting practices. Certain information and footnote disclosures required under U.S. GAAP have been condensed or omitted, as permitted by rules and regulations of the Securities and Exchange Commission.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update to simplify employee share-based payment accounting. The areas for simplification in this update involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2017. The Company is currently assessing the impact that the guidance will have on the Company’s consolidated financial statements.

In March, 2016, the FASB issued an accounting standards update that requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met, including the “clearly and closely related” criterion. The amendments in this update clarify the requirements for assessing whether contingent call or put options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2016. This guidance will be applied on a modified retrospective basis as of the beginning of the fiscal year that the amendment is effective. The adoption of this update is not expected to have a material impact on the Company’s financial statements.

In February 2016, FASB issued accounting guidance that requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact that the guidance will have on the Company’s consolidated financial statements.

In January 2016, the FASB issued an accounting standards update intended to improve the recognition and measurement of financial instruments. Specifically, the accounting standards update requires all equity instruments, with the exception of those that are accounted for under the equity method of accounting, to be measured at fair value with changes in the fair value recognized through net income. Additionally, public business entities are required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The amendments in this update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this update is not expected to have a material impact on the Company’s financial statements.

In September 2015, the FASB issued an accounting standards update simplifying the accounting for adjustments made to provisional amounts recognized in a business combination, eliminating the requirement to retrospectively account for those adjustments. To simplify the accounting for adjustments made to provisional amounts, the amendments in the accounting standards update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update did not have a material impact on the Company’s financial statements.

In May 2015, the FASB issued an accounting standards update clarifying how investments valued using the net asset value practical expedient within the fair value hierarchy should be classified. The accounting standards update was issued to address diversity in practice by exempting investments measured using the net asset value expedient from categorization in the fair value hierarchy. This accounting standards update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update did not have a material impact on the Company’s financial statements.

In April 2015, the FASB issued an accounting standards update requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability consistent with the presentation of debt discounts. The purpose of this update is to simplify the presentation of debt issuance costs and to align the U.S. GAAP presentation of debt more closely with international accounting standards. In August 2015, the FASB issued a subsequent update which discussed presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of these updates did not have a material impact on the Company’s financial statements.

In January 2015, the FASB issued an accounting standards update regarding the elimination of the concept of the extraordinary items from the statement of operations. The purpose of this update is to simplify the statement of operations presentation and to align the U.S. GAAP income statement more closely with international accounting standards. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update did not have a material impact on the Company’s financial statements.

In May 2014, the FASB issued an accounting standards update that clarifies the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. In March and April, 2016, the FASB issued further implementation guidance regarding revenue recognition. This additional guidance included clarification on certain principal versus agent considerations within the implementation of the guidance as well as clarification related to identifying performance obligations and licensing. The guidance along with its updates is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is still evaluating the potential impact on the Company’s financial statements.

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Acquisitions (Tables)

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

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	$	37,221
Cash Payment		4,367
Fair value of Pascack stock options converted to Lakeland Bancorp stock options		122
Total Consideration Paid	$	41,710
Recognized amounts of identifiable assets and liabilities assumed at fair value
Cash and cash equivalents	$	45,431
Securities held to maturity		3,925
Federal Home Loan Bank stock		2,962
Loans and leases		319,575
Premises and equipment		14,438
Identifiable intangible assets		1,514
Accrued interest receivable and other assets		6,672
Deposits		(304,466	)
Other borrowings		(57,308	)
Other liabilities		(6,502	)
Total identifiable assets	$	26,241
Goodwill	$	15,469

Summary of Loans Acquired

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

	Acquired		Acquired
	Credit		Non-Credit		Total
	Impaired		Impaired		Acquired
(in thousands)	Loans		Loans		Loans
Contractually required principal and interest at acquisition	$	4,932	$	442,401	$	447,333
Contractual cash flows not expected to be collected (non-accretable difference)		4,030		—		4,030
Expected cash flows at acquisition	$	902	$	442,401	$	443,303
Interest component of expected cash flows (accretable difference)		85		123,643		123,728
Fair value of acquired loans	$	817	$	318,758	$	319,575

Summary of Pro Forma Financial Information

	Actual from
	acquisition to		Pro-forma		Pro-forma
(in thousands)	March 31, 2016		March 31, 2016		March 31, 2015
Net interest income	$	3,098	$	34,107	$	32,116
Provision for loan losses		—		1,075		870
Noninterest income		102		4,871		4,866
Noninterest expense		1,653		23,948		22,670
Net income		1,037		9,350		8,955
Earnings per share:
Fully diluted			$	0.23	$	0.22

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Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Option Activity under the Company's Stock Option Plans

There were no grants of stock options in the first three months of 2016 or 2015.

Option activity under the Company’s stock option plans is as follows:

					Weighted
					average
			Weighted		remaining
			average		contractual
	Number of		exercise		term		Aggregate
	shares		price		( in years)		intrinsic value
Outstanding, January 1, 2016		175,892	$	8.38			$	602,236
Granted		—
Exercised		—
Forfeited		—
Expired		—
Outstanding, March 31, 2016		175,892	$	8.38		4.78	$	313,773
Options exercisable at March 31, 2016		154,891	$	8.22		4.45	$	298,471

Summary of Company's Restricted Stock

Information regarding the Company’s restricted stock and changes during the three months ended March 31, 2016 is as follows:

				Weighted
	Number of			average
	shares			price
Outstanding, January 1, 2016		73,500		$	9.33
Granted		23,952			10.02
Vested		(54,360	)		9.33
Forfeited		—			—
Outstanding, March 31, 2016		43,092		$	9.71

Information regarding the Company’s RSUs and changes during the three months ended March 31, 2016 is as follows:

				Weighted
	Number of			average
	shares			price
Outstanding, January 1, 2016		200,910		$	10.87
Granted		139,726			10.04
Vested		(66,748	)		10.28
Forfeited		(763	)		10.80
Outstanding, March 31, 2016		273,125		$	10.59

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Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Components of Other Comprehensive Income

The components of other comprehensive income are as follows:

	March 31, 2016									March 31, 2015
	Before			Tax Benefit			Net of			Before		Tax Benefit			Net of
For the quarter ended:	tax amount			(Expense)			tax amount			tax amount		(Expense)			tax amount
	(in thousands)									(in thousands)
Net unrealized gains on available for sale securities
Net unrealized holding gains arising during period	$	6,563		($	2,406	)	$	4,157		$	4,225	($	1,550	)	$	2,675
Reclassification adjustment for net gains arising during the period		(370	)		137			(233	)		—		—			—
Net unrealized gains	$	6,193		($	2,269	)	$	3,924		$	4,225	($	1,550	)	$	2,675
Change in minimum pension liability		64			(26	)		38			8		(3	)		5
Other comprehensive income, net	$	6,257		($	2,295	)	$	3,962		$	4,233	($	1,553	)	$	2,680

Summary of Changes in Accumulated Other Comprehensive Income

The following table shows the changes in the balances of each of the components of other comprehensive income for the periods presented (in thousands):

Changes in Accumulated Other Comprehensive Income by Component (a)

	For the Three Months Ended									For the Three Months Ended
	March 31, 2016									March 31, 2015
	Unrealized									Unrealized Gains
	Gains on									(Losses) on
	Available-for-sale									Available-for-sale
	Securities			Pension Items			Total			Securities		Pension Items			Total
	(in thousands)
Beginning Balance	$	1,154		($	4	)	$	1,150		$	1,531	($	8	)	$	1,523
Other comprehensive income before classifications		4,157			38			4,195			2,675		5			2,680
Amounts reclassified from accumulated other comprehensive income		(233	)		—			(233	)		—		—			—
Net current period other comprehensive income		3,924			38			3,962			2,675		5			2,680
Ending balance	$	5,078		$	34		$	5,112		$	4,206	($	3	)	$	4,203

(a) all amounts are net of tax.

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Statement of Cash Flow Information, Supplemental Information (Tables)

3 Months Ended

Mar. 31, 2016

Supplemental Cash Flow Elements [Abstract]

Supplemental Schedule of Noncash Investing and Financing Activities

	For the Three Months Ended
	March 31,
	2016			2015
	(in thousands)
Supplemental schedule of noncash investing and financing activities:
Cash paid during the period for income taxes	$	4,575		$	4,706
Cash paid during the period for interest		3,569			2,403
Transfer of loans and leases into other repossessed assets and other real estate owned		263			266
Acquisition of Pascack:
Non-cash assets acquired:
Federal Home Loan Bank stock		2,962			—
Investment securities held for maturity		3,925			—
Loans, including loans held for sale		319,575			—
Goodwill and other intangible assets, net		16,983			—
Other assets		21,110			—
Total non-cash assets acquired		364,555			—
Liabilities assumed:
Deposits		(304,466	)		—
Other borrowings		(57,308	)		—
Other liabilities		(6,502	)		—
Total liabilities assumed		(368,276	)		—
Common stock issued and fair value of stock options converted to Lakeland Bancorp stock options		37,221			—

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following schedule shows the Company’s earnings per share for the periods presented:

	For the Three Months Ended
	March 31,
(In thousands, except per share data)	2016		2015
Net income available to common shareholders	$	8,108	$	8,330
Less: earnings allocated to participating securities		58		50
Net income allocated to common shareholders	$	8,050	$	8,280
Weighted average number of common shares outstanding - basic		40,931		37,800
Share-based plans		161		137
Weighted average number of common shares - diluted		41,092		37,937
Basic earnings per share	$	0.20	$	0.22
Diluted earnings per share	$	0.20	$	0.22

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Reconciliation of Available-for-Sale Securities

AVAILABLE FOR SALE	March 31, 2016									December 31, 2015
			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
	(in thousands)									(in thousands)
U.S. treasury and U.S. government agencies	$	85,624	$	1,320	$	—		$	86,944	$	97,617	$	190	$	(674	)	$	97,133
Mortgage-backed securities, residential		284,449		3,825		(473	)		287,801		280,018		1,717		(2,283	)		279,452
Mortgage-backed securities, multifamily		10,235		217		—			10,452		10,249		—		(129	)		10,120
Obligations of states and political subdivisions		35,734		1,118		(25	)		36,827		35,639		910		(51	)		36,498
Other debt securities		500		1		—			501		498		3		—			501
Equity securities		16,634		2,260		(272	)		18,622		16,550		2,393		(298	)		18,645
	$	433,176	$	8,741	$	(770	)	$	441,147	$	440,571	$	5,213	$	(3,435	)	$	442,349

Reconciliation of Held-to-Maturity Securities

HELD TO MATURITY	March 31, 2016									December 31, 2015
			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
	(in thousands)									(in thousands)
U.S. government agencies	$	28,519	$	852	$	—		$	29,371	$	30,477	$	289	$	(94	)	$	30,672
Mortgage-backed securities, residential		36,976		652		(79	)		37,549		36,466		411		(426	)		36,451
Mortgage-backed securities, multifamily		2,134		7		(5	)		2,136		2,159		—		(60	)		2,099
Obligations of states and political subdivisions		46,148		1,067		(6	)		47,209		45,617		809		(156	)		46,270
Other debt securities		2,019		73		—			2,092		2,021		81		—			2,102
	$	115,796	$	2,651	$	(90	)	$	118,357	$	116,740	$	1,590	$	(736	)	$	117,594

Summary of Contractual Maturities of Investment Securities Classified as Available for Sale and Held to Maturity

The following table shows investment securities by stated maturity. Securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay, and are, therefore, classified separately with no specific maturity date (in thousands):

	March 31, 2016
	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	3,438	$	3,458	$	8,393	$	8,393
Due after one year through five years		73,180		74,520		18,505		18,958
Due after five years through ten years		40,364		41,317		43,365		44,716
Due after ten years		4,876		4,977		6,423		6,605
		121,858		124,272		76,686		78,672
Mortgage-backed securities		294,684		298,253		39,110		39,685
Equity securities		16,634		18,622		—		—
Total securities	$	433,176	$	441,147	$	115,796	$	118,357

Sales of Securities and Gross Gains on Sales of Securities

The following table shows proceeds from sales of securities and gross gains on sales of securities for the periods indicated (in thousands):

	For the Three Months Ended
	March 31,
	2016		2015
Sale proceeds	$	15,654	$	—
Gross gains		370		—

Reconciliation of Available-for-Sale and Held-to-Maturity Securities in Continuous Unrealized Loss Position

The following table indicates the length of time individual securities have been in a continuous unrealized loss position at March 31, 2016 and December 31, 2015:

March 31, 2016	Less than 12 months				12 months or longer				Total
			Unrealized				Unrealized		Number of				Unrealized
AVAILABLE FOR SALE	Fair value		Losses		Fair value		Losses		securities		Fair value		Losses
					(dollars in thousands)
Mortgage-backed securities, residential	$	27,362	$	105	$	54,644	$	368		27	$	82,006	$	473
Obligations of states and political subdivisions		785		4		1,179		21		2		1,964		25
Equity securities		711		49		4,731		223		4		5,442		272
	$	28,858	$	158	$	60,554	$	612		33	$	89,412	$	770
HELD TO MATURITY
Mortgage-backed securities, residential	$	2,592	$	3	$	6,467	$	76		5	$	9,059	$	79
Mortgage-backed securities, multifamily		—		—		903		5		1		903		5
Obligations of states and political subdivisions		7,214		4		752		2		8		7,966		6
	$	9,806	$	7	$	8,122	$	83		14	$	17,928	$	90
December 31, 2015	Less than 12 months				12 months or longer				Total
			Unrealized				Unrealized		Number of				Unrealized
AVAILABLE FOR SALE	Fair value		Losses		Fair value		Losses		securities		Fair value		Losses
					(dollars in thousands)
U.S. treasury and U.S. government agencies	$	80,192	$	674	$	—	$	—		16	$	80,192	$	674
Mortgage-backed securities, residential		103,749		1,043		50,095		1,240		50		153,844		2,283
Mortgage-backed securities, multifamily		10,120		129		—		—		2		10,120		129
Obligations of states and political subdivisions		2,051		4		1,466		47		7		3,517		51
Equity securities		247		24		4,643		274		3		4,890		298
	$	196,359	$	1,874	$	56,204	$	1,561		78	$	252,563	$	3,435
HELD TO MATURITY
U.S. government agencies	$	15,683	$	94	$	—	$	—		3	$	15,683	$	94
Mortgage-backed securities, residential		20,283		262		6,687		164		11		26,970		426
Mortgage-backed securities, multifamily		1,223		18		876		42		2		2,099		60
Obligations of states and political subdivisions		9,181		149		2,043		7		15		11,224		156
	$	46,370	$	523	$	9,606	$	213		31	$	55,976	$	736

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Loans, Leases and Other Real Estate (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Composition of Lakeland`s Loan and Lease Portfolio

The following sets forth the composition of Lakeland’s loan and lease portfolio as of March 31, 2016 and December 31, 2015:

	March 31,			December 31,
	2016			2015
	(in thousands)
Commercial, secured by real estate	$	2,118,682		$	1,761,589
Commercial, industrial and other		332,097			307,044
Leases		60,925			56,660
Real estate - residential mortgage		392,387			389,692
Real estate - construction		124,653			118,070
Home equity and consumer		340,217			334,891
Total loans		3,368,961			2,967,946
Less: deferred fees		(2,589	)		(2,746	)
Loans, net of deferred fees	$	3,366,372		$	2,965,200

Company's Non-Performing Assets and its Accruing Troubled Debt Restructurings

The following schedule sets forth certain information regarding the Company’s non-performing assets and its accruing troubled debt restructurings:

	March 31,		December 31,
(in thousands)	2016		2015
Commercial, secured by real estate	$	11,943	$	10,446
Commercial, industrial and other		1,163		103
Leases		282		316
Real estate - residential mortgage		8,330		8,664
Home equity and consumer		3,249		3,167
Total non-accrual loans and leases	$	24,967	$	22,696
Other real estate and other repossessed assets		792		983
TOTAL NON-PERFORMING ASSETS	$	25,759	$	23,679
Troubled debt restructurings, still accruing	$	10,545	$	10,108

Age Analysis of Past Due Loans, Segregated by Class of Loans

An age analysis of past due loans, segregated by class of loans as of March 31, 2016 and December 31, 2015, is as follows:

													Recorded
					Greater						Total		Investment greater
	30-59 Days		60-89 Days		Than		Total				Loans		than 89 Days and
	Past Due		Past Due		89 Days		Past Due		Current		and Leases		still accruing
	(in thousands)
March 31, 2016
Commercial, secured by real estate	$	5,274	$	3,450	$	10,514	$	19,238	$	2,099,444	$	2,118,682	$	—
Commercial, industrial and other		92		—		251		343		331,754		332,097		—
Leases		161		85		282		528		60,397		60,925		—
Real estate - residential mortgage		1,365		215		8,329		9,909		382,478		392,387		—
Real estate - construction		—		—		—		—		124,653		124,653		—
Home equity and consumer		1,220		171		2,620		4,011		336,206		340,217		101
	$	8,112	$	3,921	$	21,996	$	34,029	$	3,334,932	$	3,368,961	$	101
December 31, 2015
Commercial, secured by real estate	$	1,465	$	693	$	7,853	$	10,011	$	1,751,578	$	1,761,589	$	—
Commercial, industrial and other		205		—		103		308		306,736		307,044		—
Leases		62		26		316		404		56,256		56,660		—
Real estate - residential mortgage		1,361		725		7,472		9,558		380,134		389,692		—
Real estate - construction		—		—		—		—		118,070		118,070		—
Home equity and consumer		876		141		3,498		4,515		330,376		334,891		331
	$	3,969	$	1,585	$	19,242	$	24,796	$	2,943,150	$	2,967,946	$	331

Impaired Loans with and without Specific Allowances

			Contractual
	Recorded		Unpaid				Interest		Average
	Investment in		Principal		Specific		Income		Investment in
March 31, 2016	Impaired loans		Balance		Allowance		Recognized		Impaired loans
	(in thousands)
Loans without specific allowance:
Commercial, secured by real estate	$	13,636	$	14,721	$	—	$	61	$	13,437
Commercial, industrial and other		773		793		—		1		237
Leases		—		—		—		—		—
Real estate - residential mortgage		2,187		2,194		—		4		2,187
Real estate - construction		—		—		—		—		—
Home equity and consumer		552		552		—		—		552
Loans with specific allowance:
Commercial, secured by real estate		6,262		6,339		488		69		6,273
Commercial, industrial and other		991		991		41		11		991
Leases		3		3		—		—		3
Real estate - residential mortgage		824		716		63		9		826
Real estate - construction		375		375		4		4		375
Home equity and consumer		1,271		1,271		105		14		1,174
Total:
Commercial, secured by real estate	$	19,898	$	21,060	$	488	$	130	$	19,710
Commercial, industrial and other		1,764		1,784		41		12		1,228
Leases		3		3		—		—		3
Real estate - residential mortgage		3,011		2,910		63		13		3,013
Real estate - construction		375		375		4		4		375
Home equity and consumer		1,823		1,823		105		14		1,726
	$	26,874	$	27,955	$	701	$	173	$	26,055

			Contractual
	Recorded		Unpaid				Interest		Average
	Investment in		Principal		Specific		Income		Investment in
March 31, 2015	Impaired loans		Balance		Allowance		Recognized		Impaired loans
	(in thousands)
Loans without specific allowance:
Commercial, secured by real estate	$	12,802	$	15,058	$	—	$	99	$	13,177
Commercial, industrial and other		1,177		1,281		—		3		233
Leases		—		—		—		—		—
Real estate - residential mortgage		2,160		2,160		—		4		2,162
Real estate - construction		169		169		—		—		178
Home equity and consumer		765		765		—		—		741
Loans with specific allowance:
Commercial, secured by real estate		5,563		5,695		351		58		5,449
Commercial, industrial and other		684		1,191		5		5		695
Leases		14		14		14		—		—
Real estate - residential mortgage		753		753		72		9		753
Real estate - construction		394		394		2		1		92
Home equity and consumer		1,331		1,331		1,014		16		1,243
Total:
Commercial, secured by real estate	$	18,365	$	20,753	$	351	$	157	$	18,626
Commercial, industrial and other		1,861		2,472		5		8		928
Leases		14		14		14		—		—
Real estate - residential mortgage		2,913		2,913		72		13		2,915
Real estate - construction		563		563		2		1		270
Home equity and consumer		2,096		2,096		1,014		16		1,984
	$	25,812	$	28,811	$	1,458	$	195	$	24,723

			Contractual
	Recorded		Unpaid				Interest		Average
	Investment in		Principal		Specific		Income		Investment in
December 31, 2015	Impaired loans		Balance		Allowance		Recognized		Impaired loans
	(in thousands)
Loans without specific allowance:
Commercial, secured by real estate	$	14,065	$	14,712	$	—	$	344	$	12,928
Commercial, industrial and other		209		887		—		14		749
Leases		—		—		—		—		—
Real estate - residential mortgage		2,195		2,242		—		—		2,096
Real estate - construction		—		—		—		—		94
Home equity and consumer		574		575		—		5		762
Loans with specific allowance:
Commercial, secured by real estate		5,721		5,918		598		271		6,249
Commercial, industrial and other		1,023		1,023		77		32		717
Leases		6		6		1		—		—
Real estate - residential mortgage		832		865		73		37		840
Real estate - construction		380		380		21		13		308
Home equity and consumer		1,001		1,013		73		54		1,006
Total:
Commercial, secured by real estate	$	19,786	$	20,630	$	598	$	615	$	19,177
Commercial, industrial and other		1,232		1,910		77		46		1,466
Leases		6		6		1		—		—
Real estate - residential mortgage		3,027		3,107		73		37		2,936
Real estate - construction		380		380		21		13		402
Home equity and consumer		1,575		1,588		73		59		1,768
	$	26,006	$	27,621	$	843	$	770	$	25,749

Company's Commercial Loan Portfolio

The following table shows the Company’s commercial loan portfolio as of March 31, 2016 and December 31, 2015, by the risk ratings discussed above (in thousands):

March 31, 2016	Commercial,		Commercial,
	secured by		industrial		Real estate-
Risk Rating	real estate		and other		construction
1	$	—		4,188	$	—
2		—		11,252		—
3		92,705		59,705		—
4		667,804		121,085		16,466
5		1,207,653		110,240		104,961
5W - Watch		62,758		7,572		146
6 - Other Assets Especially Mentioned		37,417		5,912		1,846
7 - Substandard		50,345		12,143		1,234
8 - Doubtful		—		—		—
9 - Loss		—		—		—
Total	$	2,118,682	$	332,097	$	124,653
December 31, 2015	Commercial,		Commercial,
	secured by		industrial		Real estate-
Risk Rating	real estate		and other		construction
1	$	—	$	3,517	$	—
2		—		9,662		—
3		65,199		56,895		—
4		526,909		111,702		19,125
5		1,044,888		105,301		94,535
5W - Watch		43,342		4,259		146
6 - Other Assets Especially Mentioned		34,570		4,105		1,851
7 - Substandard		46,681		11,603		2,413
8 - Doubtful		—		—		—
9 - Loss		—		—		—
Total	$	1,761,589	$	307,044	$	118,070

Allowance for Loan and Lease Losses by Portfolio Segment

The following table details activity in the allowance for loan and lease losses by portfolio segment for the three months ended March 31, 2016 and 2015:

	Commercial,			Commercial,						Real estate-						Home
Three Months Ended March 31, 2016	secured by			industrial						residential			Real estate-			equity and
Allowance for Loan and Lease Losses:	real estate			and other			Leases			mortgage			construction			consumer			Unallocated		Total
	(in thousands)
Beginning Balance	$	20,223		$	2,637		$	460		$	2,588		$	1,591		$	3,375		$	0	$	30,874
Charge-offs		(135	)		(625	)		(70	)		(93	)		—			(620	)		—		(1,543	)
Recoveries		55			42			1			3			—			46			—		147
Provision		(66	)		543			197			(232	)		(87	)		720			—		1,075
Ending Balance	$	20,077		$	2,597		$	588		$	2,266		$	1,504		$	3,521		$	—	$	30,553
	Commercial,			Commercial,						Real estate-						Home
Three Months Ended March 31, 2015	secured by			industrial						residential			Real estate-			equity and
Allowance for Loan and Lease Losses:	real estate			and other			Leases			mortgage			construction			consumer			Unallocated		Total
	(in thousands)
Beginning Balance	$	13,577		$	3,196		$	582		$	4,020		$	553		$	6,333		$	2,423	$	30,684
Charge-offs		(546	)		(10	)		(427	)		(17	)		(20	)		(261	)		—		(1,281	)
Recoveries		39			42			20			1			100			30			—		232
Provision		(510	)		79			863			(706	)		4			822			318		870
Ending Balance	$	12,560		$	3,307		$	1,038		$	3,298		$	637		$	6,924		$	2,741	$	30,505

Loans Receivable Summarized by Portfolio Segment and Impairment Method

Loans receivable summarized by portfolio segment and impairment method are as follows:

	Commercial,		Commercial,				Real estate-				Home
	secured by		industrial				residential		Real estate-		equity and
	real estate		and other		Leases		mortgage		construction		consumer		Total
	(in thousands)
At March 31, 2016
Ending Balance: Individually evaluated for impairment	$	19,898	$	1,764	$	3	$	3,011	$	375	$	1,823	$	26,874
Ending Balance: Collectively evaluated for impairment		2,098,460		329,885		60,922		389,376		124,278		338,371	$	3,341,292
Ending Balance: Loans acquired with deteriorated credit quality		324		448		—		—		—		23	$	795
Ending Balance (1)	$	2,118,682	$	332,097	$	60,925	$	392,387	$	124,653	$	340,217	$	3,368,961

(1) Excludes deferred fees

	Commercial,		Commercial,				Real estate-				Home
	secured by		industrial				residential		Real estate-		equity and
	real estate		and other		Leases		mortgage		construction		consumer		Total
	(in thousands)
At December 31, 2015
Ending Balance: Individually evaluated for impairment	$	19,786	$	1,232	$	6	$	3,027	$	380	$	1,575	$	26,006
Ending Balance: Collectively evaluated for impairment		1,741,803		305,812		56,654		386,665		117,690		333,316	$	2,941,940
Ending Balance (1)	$	1,761,589	$	307,044	$	56,660	$	389,692	$	118,070	$	334,891	$	2,967,946

(1) Excludes deferred fees

Allowance for Loan Losses Summarized by Portfolio Segment and Impairment Classification

The allowance for loan and lease losses is summarized by portfolio segment and impairment classification as follows:

	Commercial,		Commercial,				Real estate-				Home
	secured by		industrial				residential		Real estate-		equity and
	real estate		and other		Leases		mortgage		construction		consumer		Total
	(in thousands)
At March 31, 2016
Ending Balance: Individually evaluated for impairment	$	488	$	41	$	—	$	63	$	4	$	105	$	701
Ending Balance: Collectively evaluated for impairment		19,589		2,556		588		2,203		1,500		3,416	$	29,852
Ending Balance: Loans acquired with deteriorated credit quality		—		—		—		—		—		—		—
Ending Balance	$	20,077	$	2,597	$	588	$	2,266	$	1,504	$	3,521	$	30,553
	Commercial,		Commercial,				Real estate-				Home
	secured by		industrial				residential		Real estate-		equity and
	real estate		and other		Leases		mortgage		construction		consumer		Total
	(in thousands)
At December 31, 2015
Ending Balance: Individually evaluated for impairment	$	598	$	77	$	1	$	73	$	21	$	73	$	843
Ending Balance: Collectively evaluated for impairment		19,625		2,560		459		2,515		1,570		3,302	$	30,031
Ending Balance	$	20,223	$	2,637	$	460	$	2,588	$	1,591	$	3,375	$	30,874

Summary of Restructured Loans

The following table summarizes loans that have been restructured during the three months ended March 31, 2016 and 2015:

	For the Three Months Ended						For the Three Months Ended
	March 31, 2016						March 31, 2015
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
	Contracts		Investment		Investment		Contracts		Investment		Investment
	(Dollars in thousands)						(Dollars in thousands)
Troubled Debt Restructurings:
Commercial, secured by real estate		—	$	—	$	—		—	$	—	$	—
Commercial, industrial and other		—		—		—		1		1,149		1,149
Leases		—		—		—		1		14		14
Real estate—residential mortgage		—		—		—		—		—		—
Real estate—construction		—		—		—		1		396		396
Home equity and consumer		3		285		285		1		9		9
		3	$	285	$	285		4	$	1,568	$	1,568

Summary of Restructured Loans within Previous 12 Months that have Subsequently Defaulted

The following table summarizes as of March 31, 2016 and 2015, loans that were restructured within the previous 12 months that have subsequently defaulted:

	March 31, 2016				March 31, 2015
	Number of		Recorded		Number of		Recorded
	Contracts		Investment		Contracts		Investment
	(Dollars in thousands)				(Dollars in thousands)
Defaulted Troubled Debt Restructurings:
Commercial, secured by real estate		1	$	635		—	$	—
Commercial, industrial and other		—		—		—		—
Leases		—		—		—		—
Real estate - residential mortgage		—		—		1		483
Real estate—construction		—		—		—		—
Home equity and consumer		2		227		1		2
		3	$	862		2	$	485

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Estimated Fair Value of Financial Instruments and Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
			(in thousands)
March 31, 2016
Assets:
Investment securities, available for sale
U.S. treasury and government agencies	$	86,944	$	6,014	$	80,930	$	—
Mortgage backed securities		298,253		—		298,253		—
Obligations of states and political subdivisions		36,827		—		36,827		—
Other debt securities		501		—		501		—
Equity securities		4,833		4,825		8		—
Investments measured at net asset value*		13,789
Total securities available for sale		441,147		10,839		416,519		—
Non-hedging interest rate derivatives		3,505		—		3,505		—
Total Assets		444,652	$	10,839	$	420,024	$	—
Non-hedging interest rate derivatives	$	3,505	$	—	$	3,505	$	—
Total Liabilities	$	3,505	$	—	$	3,505	$	—
December 31, 2015
Assets:
Investment securities, available for sale
U.S. treasury and government agencies	$	97,133	$	4,888	$	92,245	$	—
Mortgage backed securities		289,572		—		289,572		—
Obligations of states and political subdivisions		36,498		—		36,498		—
Other debt securities		501		—		501		—
Equity securities		5,060		5,052		8		—
Investments measured at net asset value*		13,585
Total securities available for sale		442,349		9,940		418,824		—
Non-hedging interest rate derivatives		1,518		—		1,518		—
Total Assets		443,867	$	9,940	$	420,342	$	—
Non-hedging interest rate derivatives	$	1,518	$	—	$	1,518	$	—
Total Liabilities	$	1,518	$	—	$	1,518	$	—

* Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.

Fair Value of Assets Measured on Nonrecurring Basis

The following table sets forth the Company’s assets subject to fair value adjustments (impairment) on a nonrecurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	Quoted Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Total
	(Level 1)		(Level 2)		(Level 3)		Fair Value
	(in thousands)
March 31, 2016
Assets:
Impaired Loans and Leases	$	—	$	—	$	26,874	$	26,874
Loans held for sale		—		1,150		—		1,150
Other real estate owned and other repossessed assets		—		—		792		792
December 31, 2015
Assets:
Impaired Loans and Leases	$	—	$	—	$	26,006	$	26,006
Loans held for sale		—		1,233		—		1,233
Other real estate owned and other repossessed assets		—		—		983		983

Carrying Values and Fair Values of Company's Financial Instruments

The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2016 and December 31, 2015:

					Quoted Prices in		Significant
					Active Markets		Other		Significant
					for Identical		Observable		Unobservable
	Carrying		Fair		Assets		Inputs		Inputs
	Value		Value		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
March 31, 2016
Financial Instruments - Assets
Investment securities held to maturity	$	115,796	$	118,357	$	—	$	109,253	$	9,104
Federal Home Loan Bank and other membership bank stocks		16,193		16,193		—		16,193		—
Loans and leases, net		3,335,819		3,346,814		—		—		3,346,814
Financial Instruments - Liabilities
Certificates of Deposit		483,793		484,520		—		484,520		—
Other borrowings		310,031		314,739		—		314,739		—
Subordinated debentures		31,238		21,867		—		—		21,867
December 31, 2015
Financial Instruments - Assets
Investment securities held to maturity	$	116,740	$	117,594	$	—	$	110,293	$	7,301
Federal Home Loan Bank and other membership bank stocks		14,087		14,087		—		14,087		—
Loans and leases, net		2,934,326		2,930,188		—		—		2,930,188
Financial Instruments - Liabilities
Certificates of Deposit		343,321		341,998		—		341,998		—
Other borrowings		271,905		275,409		—		275,409		—
Subordinated debentures		31,238		24,366		—		—		24,366

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Derivatives (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary Information Regarding Derivatives

The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands):

				Average		Weighted Average			Weighted Average
March 31, 2016	Notional Amount			Maturity (Years)		Fixed Rate			Variable Rate	Fair Value
Customer interest rate swaps	$	46,263			13.3		4.360	%	1 Mo Libor + 1.99	$	3,505
3rd Party interest rate swaps		(46,263	)		13.3		4.360	%	1 Mo Libor + 1.99		(3,505	)
				Average		Weighted Average			Weighted Average
December 31, 2015	Notional Amount			Maturity (Years)		Fixed Rate			Variable Rate	Fair Value
Customer interest rate swaps	$	35,664			14.6		4.540	%	1 Mo Libor + 2.00	$	1,518
3rd party interest rate swaps		(35,664	)		14.6		4.540	%	1 Mo Libor + 2.00		(1,518	)

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Estimated Future Amortization Expense

The estimated future amortization expense for the remainder of 2016 and for each of the succeeding five years ended December 31 is as follows (dollars in thousands):

			Somerset
For the year ended:		Pascack		Hills
2016	$	206	$	267
2017		248		316
2018		220		267
2019		193		218
2020		165		168
2021		138		119

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Significant Accounting Policies - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016
Pascack Bancorp, Inc. [Member]
Significant Accounting Policies [Line Items]
Date of Agreement	Jan. 07, 2016

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Acquisitions - Additional Information (Detail) - USD ($)			3 Months Ended
	Feb. 17, 2016	Jan. 07, 2016	Mar. 31, 2016	Dec. 31, 2015
Business Acquisition, Contingent Consideration [Line Items]
Core deposit intangible			$ 1,500,000
Estimated useful life of core deposit intangible			10 years
Merger and acquisition integration-related expenses			$ 1,721,000
Harmony Bank [Member]
Business Acquisition, Contingent Consideration [Line Items]
Shares to receive by the acquiree at the time of merger	1.25
Consideration paid through common stock	3,000,000
Date of Agreement			Feb. 17, 2016
Total assets				$ 295,000,000
Total loans				241,000,000
Total deposits				257,000,000
Total stockholders' equity/capital				$ 28,000,000
Pascack Bancorp, Inc. [Member]
Business Acquisition, Contingent Consideration [Line Items]
Shares to receive by the acquiree at the time of merger		0.9576
Consideration paid through common stock		3,314,284
Total assets		$ 390,000,000
Total loans		320,000,000
Total deposits		304,466,000
Total stockholders' equity/capital		$ 27,000,000
Percentage of aggregate merger consideration in shares		90.00%
Percentage of aggregate merger consideration in cash		10.00%
Cash paid for acquisition		$ 4,367,000
Consideration price per share		$ 11.35
Date of Agreement			Jan. 07, 2016
Average strike price		$ 7.37
Cash paid in connection with cancellation of the old stock options		$ 122,000
Allowance for loan and lease losses			$ 0
Core deposit intangible			$ 1,500,000

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Acquisitions - Summary of Estimated Fair Value of Acquired Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jan. 07, 2016	Mar. 31, 2016	Dec. 31, 2015
Recognized amounts of identifiable assets and liabilities assumed at fair value
Goodwill		$ 125,443	$ 109,974
Pascack Bancorp, Inc. [Member]
Consideration Paid
Lakeland Bancorp stock issued	$ 37,221
Cash Payment	4,367
Fair value of Pascack stock options converted to Lakeland Bancorp stock options	122
Total Consideration Paid	41,710
Recognized amounts of identifiable assets and liabilities assumed at fair value
Cash and cash equivalents	45,431
Securities held to maturity	3,925
Federal Home Loan Bank stock	2,962
Loans and leases	319,575
Premises and equipment	14,438
Identifiable intangible assets	1,514
Accrued interest receivable and other assets	6,672
Deposits	(304,466)
Other borrowings	(57,308)
Other liabilities	(6,502)
Total identifiable assets	26,241
Goodwill	$ 15,469	$ 15,500

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Acquisitions - Summary of Loans Acquired (Detail) - Pascack Bancorp, Inc. [Member] $ in Thousands	Mar. 31, 2016 USD ($)
Business Acquisition [Line Items]
Contractually required principal and interest at acquisition	$ 447,333
Contractual cash flows not expected to be collected (non-accretable difference)	4,030
Expected cash flows at acquisition	443,303
Interest component of expected cash flows (accretable difference)	123,728
Fair value of acquired loans	319,575
Acquired Credit Impaired Loans [Member]
Business Acquisition [Line Items]
Contractually required principal and interest at acquisition	4,932
Contractual cash flows not expected to be collected (non-accretable difference)	4,030
Expected cash flows at acquisition	902
Interest component of expected cash flows (accretable difference)	85
Fair value of acquired loans	817
Acquired Non-Credit Impaired Loans [Member]
Business Acquisition [Line Items]
Contractually required principal and interest at acquisition	442,401
Expected cash flows at acquisition	442,401
Interest component of expected cash flows (accretable difference)	123,643
Fair value of acquired loans	$ 318,758

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Acquisitions - Summary of Pro Forma Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Business Acquisition [Line Items]
Net interest income	$ 33,850	$ 28,518
Provision for loan losses	1,075	870
Noninterest income	4,867	4,738
Noninterest expense	25,424	20,042
NET INCOME	8,108	8,330
Net interest income	34,107	32,116
Provision for loan losses	1,075	870
Noninterest income	4,871	4,866
Noninterest expense	23,948	22,670
Net income	$ 9,350	$ 8,955
Earnings per share:
Fully diluted	$ 0.23	$ 0.22
Pascack Bancorp, Inc. [Member]
Business Acquisition [Line Items]
Net interest income	$ 3,098
Noninterest income	102
Noninterest expense	1,653
NET INCOME	$ 1,037

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Share-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 754,000	$ 567,000
Stock options granted	0
Aggregate intrinsic value of stock options exercised		50,000
Cash receipts due to exercise of stock options		$ 93,000
Stock options exercised during the period	0
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 324,000
Unrecognized compensation expense, period of recognition	1 year 2 months 12 days
Granted, Number of shares	23,952
Granted, Weighted average price	$ 10.02
Restricted Stock [Member] | 2009 Equity Compensation Program [Member] | Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Number of shares	23,952
Granted, Weighted average price	$ 10.02
Share-based compensation expense	$ 240,000
Vesting period	1 year
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 41,000
Unrecognized compensation expense, period of recognition	1 year 2 months 12 days
Stock options granted	0	0
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 1,900,000
Unrecognized compensation expense, period of recognition	1 year 2 months 12 days
Granted, Number of shares	139,726
Granted, Weighted average price	$ 10.04
RSUs [Member] | 2009 Equity Compensation Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Number of shares	139,726	120,509
Granted, Weighted average price	$ 10.04	$ 11.01
Share-based compensation expense	$ 468,000	$ 442,000
Vesting period	3 years	3 years
RSUs [Member] | 2009 Equity Compensation Program [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
RSUs [Member] | 2009 Equity Compensation Program [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years

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Share-Based Compensation - Option Activity under the Company's Stock Option Plans (Detail)	3 Months Ended
	Mar. 31, 2016 USD ($) $ / shares shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding, Number of shares, Beginning balance	175,892
Granted, Number of shares	0
Exercised, Number of shares	0
Forfeited, Number of shares	0
Expired, Number of shares	0
Outstanding, Number of shares, Ending balance	175,892
Options exercisable, Number of shares, Ending balance	154,891
Outstanding, Weighted average exercise price, Beginning balance | $ / shares	$ 8.38
Outstanding, Weighted average exercise price, Ending balance | $ / shares	8.38
Options exercisable, Weighted average exercise price, Ending balance | $ / shares	$ 8.22
Outstanding, Weighted average remaining contractual term (in years), Ending balance	4 years 9 months 11 days
Options exercisable, Weighted average remaining contractual term (in years), Ending balance	4 years 5 months 12 days
Outstanding, Aggregate intrinsic value, Beginning balance | $	$ 602,236
Outstanding, Aggregate intrinsic value, Ending balance | $	313,773
Options exercisable, Aggregate intrinsic value, Ending balance | $	$ 298,471

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Share-Based Compensation - Summary of Company's Restricted Stock (Detail)	3 Months Ended
	Mar. 31, 2016 $ / shares shares
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Number of shares, Beginning balance | shares	73,500
Granted, Number of shares | shares	23,952
Vested, Number of shares | shares	(54,360)
Outstanding, Number of shares, Ending balance | shares	43,092
Outstanding, Weighted average price, Beginning balance | $ / shares	$ 9.33
Granted, Weighted average price | $ / shares	10.02
Vested, Weighted average price | $ / shares	9.33
Outstanding, Weighted average price, Ending balance | $ / shares	$ 9.71
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Number of shares, Beginning balance | shares	200,910
Granted, Number of shares | shares	139,726
Vested, Number of shares | shares	(66,748)
Forfeited, Number of shares | shares	(763)
Outstanding, Number of shares, Ending balance | shares	273,125
Outstanding, Weighted average price, Beginning balance | $ / shares	$ 10.87
Granted, Weighted average price | $ / shares	10.04
Vested, Weighted average price | $ / shares	10.28
Forfeited, Weighted average price | $ / shares	10.80
Outstanding, Weighted average price, Ending balance | $ / shares	$ 10.59

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Comprehensive Income - Components of Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net unrealized gains on available for sale securities
Net unrealized holding gains arising during period, Before tax amount	$ 6,563	$ 4,225
Reclassification adjustment for net gains arising during the period, Before tax amount	(370)
Net unrealized gains, Before tax amount	6,193	4,225
Change in minimum pension liability, Before tax amount	64	8
Other comprehensive income, net, Before tax amount	6,257	4,233
Net unrealized holding gains arising during period, Tax Benefit (Expense)	(2,406)	(1,550)
Reclassification adjustment for net gains arising during the period, Tax Benefit (Expense)	137
Net unrealized gains, Tax Benefit (Expense)	(2,269)	(1,550)
Change in minimum pension liability, Tax Benefit (Expense)	(26)	(3)
Other comprehensive income, net, Tax Benefit (Expense)	(2,295)	(1,553)
Net unrealized holding gains arising during period, Net of tax amount	4,157	2,675
Reclassification adjustment for net gains arising during the period, Net of tax amount	(233)
Net unrealized gains, Net of tax amount	3,924	2,675
Change in minimum pension liability, Net of tax amount	38	5
Other Comprehensive Income	$ 3,962	$ 2,680

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Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 1,150	$ 1,523
Other comprehensive income before classifications	4,195	2,680
Amounts reclassified from accumulated other comprehensive income	(233)
Other Comprehensive Income	3,962	2,680
Ending balance	5,112	4,203
Unrealized Gains (Losses) on Available-for-Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	1,154	1,531
Other comprehensive income before classifications	4,157	2,675
Amounts reclassified from accumulated other comprehensive income	(233)
Other Comprehensive Income	3,924	2,675
Ending balance	5,078	4,206
Pension Items [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(4)	(8)
Other comprehensive income before classifications	38	5
Other Comprehensive Income	38	5
Ending balance	$ 34	$ (3)

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Statement of Cash Flow Information, Supplemental Information - Supplemental Schedule of Noncash Investing and Financing Activities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Supplemental schedule of noncash investing and financing activities:
Cash paid during the period for income taxes	$ 4,575	$ 4,706
Cash paid during the period for interest	3,569	2,403
Transfer of loans and leases into other repossessed assets and other real estate owned	263	$ 266
Pascack Bancorp, Inc. [Member]
Non-cash assets acquired:
Federal Home Loan Bank stock	2,962
Investment securities held for maturity	3,925
Loans, including loans held for sale	319,575
Goodwill and other intangible assets, net	16,983
Other assets	21,110
Total non-cash assets acquired	364,555
Liabilities assumed:
Deposits	(304,466)
Other borrowings	(57,308)
Other liabilities	(6,502)
Total liabilities assumed	(368,276)
Common stock issued and fair value of stock options converted to Lakeland Bancorp stock options	$ 37,221

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Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income available to common shareholders, Income	$ 8,108	$ 8,330
Less: earnings allocated to participating securities, Income	58	50
Net income allocated to common shareholders	$ 8,050	$ 8,280
Weighted average number of common shares outstanding - basic	40,931	37,800
Share-based plans	161	137
Weighted average number of common shares - diluted	41,092	37,937
Basic earnings per share	$ 0.20	$ 0.22
Diluted earnings per share	$ 0.20	$ 0.22

XML

Earnings Per Share - Additional Information (Detail) - Common Stock [Member] - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase	0	113,023
Weighted average price per share		$ 12.06

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Investment Securities - Reconciliation of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Total securities, Available for Sale, Amortized Cost	$ 433,176	$ 440,571
Gross Unrealized Gains	8,741	5,213
Gross Unrealized Losses	(770)	(3,435)
Total securities, Available for Sale, Fair Value	441,147	442,349
US Treasury and Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Total securities, Available for Sale, Amortized Cost	85,624	97,617
Gross Unrealized Gains	1,320	190
Gross Unrealized Losses		(674)
Total securities, Available for Sale, Fair Value	86,944	97,133
Mortgage-Backed Securities, Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Total securities, Available for Sale, Amortized Cost	284,449	280,018
Gross Unrealized Gains	3,825	1,717
Gross Unrealized Losses	(473)	(2,283)
Total securities, Available for Sale, Fair Value	287,801	279,452
Mortgage-Backed Securities, Multifamily [Member]
Schedule of Available-for-sale Securities [Line Items]
Total securities, Available for Sale, Amortized Cost	10,235	10,249
Gross Unrealized Gains	217
Gross Unrealized Losses		(129)
Total securities, Available for Sale, Fair Value	10,452	10,120
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Total securities, Available for Sale, Amortized Cost	35,734	35,639
Gross Unrealized Gains	1,118	910
Gross Unrealized Losses	(25)	(51)
Total securities, Available for Sale, Fair Value	36,827	36,498
Other Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total securities, Available for Sale, Amortized Cost	500	498
Gross Unrealized Gains	1	3
Total securities, Available for Sale, Fair Value	501	501
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total securities, Available for Sale, Amortized Cost	16,634	16,550
Gross Unrealized Gains	2,260	2,393
Gross Unrealized Losses	(272)	(298)
Total securities, Available for Sale, Fair Value	$ 18,622	$ 18,645

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Investment Securities - Reconciliation of Held-to-Maturity Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 115,796	$ 116,740
Gross Unrealized Gains	2,651	1,590
Gross Unrealized Losses	(90)	(736)
Fair Value	118,357	117,594
U.S. Government Agencies Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	28,519	30,477
Gross Unrealized Gains	852	289
Gross Unrealized Losses		(94)
Fair Value	29,371	30,672
Mortgage-Backed Securities, Residential [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	36,976	36,466
Gross Unrealized Gains	652	411
Gross Unrealized Losses	(79)	(426)
Fair Value	37,549	36,451
Mortgage-Backed Securities, Multifamily [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	2,134	2,159
Gross Unrealized Gains	7
Gross Unrealized Losses	(5)	(60)
Fair Value	2,136	2,099
Obligations of States and Political Subdivisions [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	46,148	45,617
Gross Unrealized Gains	1,067	809
Gross Unrealized Losses	(6)	(156)
Fair Value	47,209	46,270
Other Debt Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	2,019	2,021
Gross Unrealized Gains	73	81
Fair Value	$ 2,092	$ 2,102

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Investment Securities - Summary of Contractual Maturities of Investment Securities Classified as Available for Sale and Held to Maturity (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Available for Sale, Amortized Cost
Due in one year or less	$ 3,438
Due after one year through five years	73,180
Due after five years through ten years	40,364
Due after ten years	4,876
Total	121,858
Total securities, Available for Sale, Amortized Cost	433,176	$ 440,571
Available for Sale, Fair Value
Due in one year or less	3,458
Due after one year through five years	74,520
Due after five years through ten years	41,317
Due after ten years	4,977
Total	124,272
Total securities, Available for Sale, Fair Value	441,147	442,349
Held to Maturity, Amortized Cost
Due in one year or less	8,393
Due after one year through five years	18,505
Due after five years through ten years	43,365
Due after ten years	6,423
Total	76,686
Amortized Cost	115,796	116,740
Held to Maturity, Fair Value
Due in one year or less	8,393
Due after one year through five years	18,958
Due after five years through ten years	44,716
Due after ten years	6,605
Total	78,672
Total securities, Held to Maturity, Fair Value	118,357	117,594
Mortgage Backed Securities [Member]
Available for Sale, Amortized Cost
Available for Sale, Amortized Cost	294,684
Available for Sale, Fair Value
Available for Sale, Fair Value	298,253
Held to Maturity, Amortized Cost
Held to Maturity, Amortized Cost	39,110
Held to Maturity, Fair Value
Held to Maturity, Fair Value	39,685
Equity Securities [Member]
Available for Sale, Amortized Cost
Available for Sale, Amortized Cost	16,634
Total securities, Available for Sale, Amortized Cost	16,634	16,550
Available for Sale, Fair Value
Available for Sale, Fair Value	18,622
Total securities, Available for Sale, Fair Value	$ 18,622	$ 18,645

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Investment Securities - Sales of Securities and Gross Gains on Sales of Securities (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Investments, Debt and Equity Securities [Abstract]
Sale proceeds	$ 15,654
Gross gains	$ 370

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Investment Securities - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Losses on sale of securities or other-than-temporary impairments	$ 0	$ 0
Securities, carrying value	361,700,000		$ 347,700,000
Purchase price of equities	2,700,000
Market value of equities	4,800,000
Equity securities included in investment funds	13,800,000
Investment in community development loans	$ 2,900,000
Redemption of funds	60 days
Investment in government guaranteed loans, mortgage-backed securities, small business loans	$ 10,900,000
Amortized cost of securities	11,000,000
Fair value of securities	10,900,000
Unfunded commitments	$ 0

XML

Investment Securities - Reconciliation of Available-for-Sale and Held-to-Maturity Securities in Continuous Unrealized Loss Position (Detail) $ in Thousands	Mar. 31, 2016 USD ($) Security	Dec. 31, 2015 USD ($) Security
Investment [Line Items]
Available for Sale, Less than 12 months, Fair value	$ 28,858	$ 196,359
Available for Sale, Less than 12 months, Unrealized Losses	158	1,874
Available for Sale, 12 months or longer, Fair value	60,554	56,204
Available for Sale, 12 months or longer, Unrealized Losses	$ 612	$ 1,561
Available for Sale, Number of securities | Security	33	78
Available for Sale, Total, Fair value	$ 89,412	$ 252,563
Available for Sale, Total, Unrealized Losses	770	3,435
Held to Maturity, Less than 12 months, Fair value	9,806	46,370
Held to Maturity, Less than 12 months, Unrealized Losses	7	523
Held to Maturity, 12 months or longer, Fair value	8,122	9,606
Held to Maturity, 12 months or longer, Unrealized Losses	$ 83	$ 213
Held to Maturity, Number of securities | Security	14	31
Held to Maturity, Total, Fair value	$ 17,928	$ 55,976
Held to Maturity, Total, Unrealized Losses	90	736
US Treasury and Government Agencies [Member]
Investment [Line Items]
Held to Maturity, Less than 12 months, Fair value		15,683
Held to Maturity, Less than 12 months, Unrealized Losses		$ 94
Held to Maturity, Number of securities | Security		3
Held to Maturity, Total, Fair value		$ 15,683
Held to Maturity, Total, Unrealized Losses		94
Mortgage-Backed Securities, Residential [Member]
Investment [Line Items]
Held to Maturity, Less than 12 months, Fair value	2,592	20,283
Held to Maturity, Less than 12 months, Unrealized Losses	3	262
Held to Maturity, 12 months or longer, Fair value	6,467	6,687
Held to Maturity, 12 months or longer, Unrealized Losses	$ 76	$ 164
Held to Maturity, Number of securities | Security	5	11
Held to Maturity, Total, Fair value	$ 9,059	$ 26,970
Held to Maturity, Total, Unrealized Losses	79	426
Mortgage-Backed Securities, Multifamily [Member]
Investment [Line Items]
Held to Maturity, Less than 12 months, Fair value		1,223
Held to Maturity, Less than 12 months, Unrealized Losses		18
Held to Maturity, 12 months or longer, Fair value	903	876
Held to Maturity, 12 months or longer, Unrealized Losses	$ 5	$ 42
Held to Maturity, Number of securities | Security	1	2
Held to Maturity, Total, Fair value	$ 903	$ 2,099
Held to Maturity, Total, Unrealized Losses	5	60
Obligations of States and Political Subdivisions [Member]
Investment [Line Items]
Held to Maturity, Less than 12 months, Fair value	7,214	9,181
Held to Maturity, Less than 12 months, Unrealized Losses	4	149
Held to Maturity, 12 months or longer, Fair value	752	2,043
Held to Maturity, 12 months or longer, Unrealized Losses	$ 2	$ 7
Held to Maturity, Number of securities | Security	8	15
Held to Maturity, Total, Fair value	$ 7,966	$ 11,224
Held to Maturity, Total, Unrealized Losses	6	156
US Treasury and Government Agencies [Member]
Investment [Line Items]
Available for Sale, Less than 12 months, Fair value		80,192
Available for Sale, Less than 12 months, Unrealized Losses		$ 674
Available for Sale, Number of securities | Security		16
Available for Sale, Total, Fair value		$ 80,192
Available for Sale, Total, Unrealized Losses		674
Mortgage-Backed Securities, Residential [Member]
Investment [Line Items]
Available for Sale, Less than 12 months, Fair value	27,362	103,749
Available for Sale, Less than 12 months, Unrealized Losses	105	1,043
Available for Sale, 12 months or longer, Fair value	54,644	50,095
Available for Sale, 12 months or longer, Unrealized Losses	$ 368	$ 1,240
Available for Sale, Number of securities | Security	27	50
Available for Sale, Total, Fair value	$ 82,006	$ 153,844
Available for Sale, Total, Unrealized Losses	473	2,283
Mortgage-Backed Securities, Multifamily [Member]
Investment [Line Items]
Available for Sale, Less than 12 months, Fair value		10,120
Available for Sale, Less than 12 months, Unrealized Losses		$ 129
Available for Sale, Number of securities | Security		2
Available for Sale, Total, Fair value		$ 10,120
Available for Sale, Total, Unrealized Losses		129
Obligations of States and Political Subdivisions [Member]
Investment [Line Items]
Available for Sale, Less than 12 months, Fair value	785	2,051
Available for Sale, Less than 12 months, Unrealized Losses	4	4
Available for Sale, 12 months or longer, Fair value	1,179	1,466
Available for Sale, 12 months or longer, Unrealized Losses	$ 21	$ 47
Available for Sale, Number of securities | Security	2	7
Available for Sale, Total, Fair value	$ 1,964	$ 3,517
Available for Sale, Total, Unrealized Losses	25	51
Equity Securities [Member]
Investment [Line Items]
Available for Sale, Less than 12 months, Fair value	711	247
Available for Sale, Less than 12 months, Unrealized Losses	49	24
Available for Sale, 12 months or longer, Fair value	4,731	4,643
Available for Sale, 12 months or longer, Unrealized Losses	$ 223	$ 274
Available for Sale, Number of securities | Security	4	3
Available for Sale, Total, Fair value	$ 5,442	$ 4,890
Available for Sale, Total, Unrealized Losses	$ 272	$ 298

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Loans, Leases and Other Real Estate - Composition of Lakeland`s Loan and Lease Portfolio (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 3,368,961	$ 2,967,946
Less: deferred fees	(2,589)	(2,746)
Loans, net of deferred fees	3,366,372	2,965,200
Commercial, Secured by Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,118,682	1,761,589
Commercial, Industrial and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	332,097	307,044
Leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	60,925	56,660
Real Estate-Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	392,387	389,692
Real Estate-Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	124,653	118,070
Home Equity and Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 340,217	$ 334,891

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Loans, Leases and Other Real Estate - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged for actual and potential borrowings at the Federal Home Loan Bank of New York	$ 842,700,000			$ 738,700,000
Interest income on credit impaired loans acquired	16,000
Troubled debt restructurings included in non accrual loans	2,100,000			2,500,000
Interest accrued on impaired loans	450,000	$ 420,000		1,600,000
Unfunded lending reserve	2,200,000			2,000,000
Mortgages held for sale	1,200,000			1,200,000
Other real estate owned	776,000			934,000
Other repossessed assets owned	16,000			49,000
Pascack Bancorp, Inc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Debt Securities Acquired with Deteriorated Credit Quality	800,000
Residential Property [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other real estate owned	$ 648,000			805,000
Commercial Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Lookback period	5 years		3 years
Other Portfolio [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Lookback period	3 years		2 years
Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Group of impaired loans with recorded investment	$ 500,000
Home Equity and Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Overdraft balances included in home equity and consumer loans	460,000			705,000
Residential Mortgages And Consumer Home Equity Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans that were in process of foreclosure	$ 7,100,000			$ 7,900,000

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Loans, Leases and Other Real Estate - Company's Non-Performing Assets and its Accruing Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans and leases	$ 24,967	$ 22,696
Other real estate and other repossessed assets	792	983
TOTAL NON-PERFORMING ASSETS	25,759	23,679
Troubled debt restructurings, still accruing	10,545	10,108
Commercial, Secured by Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans and leases	11,943	10,446
Commercial, Industrial and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans and leases	1,163	103
Leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans and leases	282	316
Real Estate-Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans and leases	8,330	8,664
Home Equity and Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans and leases	$ 3,249	$ 3,167

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Loans, Leases and Other Real Estate - Age Analysis of Past Due Loans, Segregated by Class of Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 34,029	$ 24,796
Current	3,334,932	2,943,150
Total Loans and Leases	3,368,961	2,967,946
Recorded Investment greater than 89 Days and still accruing	101	331
Commercial, Secured by Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	19,238	10,011
Current	2,099,444	1,751,578
Total Loans and Leases	2,118,682	1,761,589
Commercial, Industrial and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	343	308
Current	331,754	306,736
Total Loans and Leases	332,097	307,044
Leases [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	528	404
Current	60,397	56,256
Total Loans and Leases	60,925	56,660
Real Estate-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	9,909	9,558
Current	382,478	380,134
Total Loans and Leases	392,387	389,692
Real Estate-Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	124,653	118,070
Total Loans and Leases	124,653	118,070
Home Equity and Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,011	4,515
Current	336,206	330,376
Total Loans and Leases	340,217	334,891
Recorded Investment greater than 89 Days and still accruing	101	331
30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	8,112	3,969
30-59 Days Past Due [Member] | Commercial, Secured by Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	5,274	1,465
30-59 Days Past Due [Member] | Commercial, Industrial and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	92	205
30-59 Days Past Due [Member] | Leases [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	161	62
30-59 Days Past Due [Member] | Real Estate-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,365	1,361
30-59 Days Past Due [Member] | Home Equity and Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,220	876
60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,921	1,585
60-89 Days Past Due [Member] | Commercial, Secured by Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,450	693
60-89 Days Past Due [Member] | Leases [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	85	26
60-89 Days Past Due [Member] | Real Estate-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	215	725
60-89 Days Past Due [Member] | Home Equity and Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	171	141
Greater Than 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	21,996	19,242
Greater Than 89 Days [Member] | Commercial, Secured by Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	10,514	7,853
Greater Than 89 Days [Member] | Commercial, Industrial and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	251	103
Greater Than 89 Days [Member] | Leases [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	282	316
Greater Than 89 Days [Member] | Real Estate-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	8,329	7,472
Greater Than 89 Days [Member] | Home Equity and Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 2,620	$ 3,498

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Loans, Leases and Other Real Estate - Impaired Loans with and without Specific Allowances (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	$ 26,874	$ 25,812	$ 26,006
Contractual Unpaid Principal Balance	27,955	28,811	27,621
Specific Allowance	701	1,458	843
Interest Income Recognized	173	195	770
Average Investment in Impaired loans	26,055	24,723	25,749
Commercial, Secured by Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	19,898	18,365	19,786
Contractual Unpaid Principal Balance	21,060	20,753	20,630
Specific Allowance	488	351	598
Interest Income Recognized	130	157	615
Average Investment in Impaired loans	19,710	18,626	19,177
Commercial, Secured by Real Estate [Member] | Loans with Specific Allowance [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	6,262	5,563	5,721
Contractual Unpaid Principal Balance	6,339	5,695	5,918
Specific Allowance	488	351	598
Interest Income Recognized	69	58	271
Average Investment in Impaired loans	6,273	5,449	6,249
Commercial, Secured by Real Estate [Member] | Loans without Specific Allowance [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	13,636	12,802	14,065
Contractual Unpaid Principal Balance	14,721	15,058	14,712
Interest Income Recognized	61	99	344
Average Investment in Impaired loans	13,437	13,177	12,928
Commercial, Industrial and Other [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	1,764	1,861	1,232
Contractual Unpaid Principal Balance	1,784	2,472	1,910
Specific Allowance	41	5	77
Interest Income Recognized	12	8	46
Average Investment in Impaired loans	1,228	928	1,466
Commercial, Industrial and Other [Member] | Loans with Specific Allowance [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	991	684	1,023
Contractual Unpaid Principal Balance	991	1,191	1,023
Specific Allowance	41	5	77
Interest Income Recognized	11	5	32
Average Investment in Impaired loans	991	695	717
Commercial, Industrial and Other [Member] | Loans without Specific Allowance [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	773	1,177	209
Contractual Unpaid Principal Balance	793	1,281	887
Interest Income Recognized	1	3	14
Average Investment in Impaired loans	237	233	749
Leases [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	3	14	6
Contractual Unpaid Principal Balance	3	14	6
Specific Allowance		14	1
Average Investment in Impaired loans	3
Leases [Member] | Loans with Specific Allowance [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	3	14	6
Contractual Unpaid Principal Balance	3	14	6
Specific Allowance		14	1
Average Investment in Impaired loans	3
Real Estate-Residential Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	3,011	2,913	3,027
Contractual Unpaid Principal Balance	2,910	2,913	3,107
Specific Allowance	63	72	73
Interest Income Recognized	13	13	37
Average Investment in Impaired loans	3,013	2,915	2,936
Real Estate-Residential Mortgage [Member] | Loans with Specific Allowance [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	824	753	832
Contractual Unpaid Principal Balance	716	753	865
Specific Allowance	63	72	73
Interest Income Recognized	9	9	37
Average Investment in Impaired loans	826	753	840
Real Estate-Residential Mortgage [Member] | Loans without Specific Allowance [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	2,187	2,160	2,195
Contractual Unpaid Principal Balance	2,194	2,160	2,242
Interest Income Recognized	4	4
Average Investment in Impaired loans	2,187	2,162	2,096
Real Estate-Construction [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	375	563	380
Contractual Unpaid Principal Balance	375	563	380
Specific Allowance	4	2	21
Interest Income Recognized	4	1	13
Average Investment in Impaired loans	375	270	402
Real Estate-Construction [Member] | Loans with Specific Allowance [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	375	394	380
Contractual Unpaid Principal Balance	375	394	380
Specific Allowance	4	2	21
Interest Income Recognized	4	1	13
Average Investment in Impaired loans	375	92	308
Real Estate-Construction [Member] | Loans without Specific Allowance [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans		169
Contractual Unpaid Principal Balance		169
Average Investment in Impaired loans		178	94
Home Equity and Consumer [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	1,823	2,096	1,575
Contractual Unpaid Principal Balance	1,823	2,096	1,588
Specific Allowance	105	1,014	73
Interest Income Recognized	14	16	59
Average Investment in Impaired loans	1,726	1,984	1,768
Home Equity and Consumer [Member] | Loans with Specific Allowance [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	1,271	1,331	1,001
Contractual Unpaid Principal Balance	1,271	1,331	1,013
Specific Allowance	105	1,014	73
Interest Income Recognized	14	16	54
Average Investment in Impaired loans	1,174	1,243	1,006
Home Equity and Consumer [Member] | Loans without Specific Allowance [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment in Impaired loans	552	765	574
Contractual Unpaid Principal Balance	552	765	575
Interest Income Recognized			5
Average Investment in Impaired loans	$ 552	$ 741	$ 762

XML

Loans, Leases and Other Real Estate - Company's Commercial Loan Portfolio (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Commercial, Secured by Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	$ 2,118,682	$ 1,761,589
Commercial, Secured by Real Estate [Member] | Pass 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	92,705	65,199
Commercial, Secured by Real Estate [Member] | Pass 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	667,804	526,909
Commercial, Secured by Real Estate [Member] | Pass 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	1,207,653	1,044,888
Commercial, Secured by Real Estate [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	62,758	43,342
Commercial, Secured by Real Estate [Member] | Other Assets Especially Mentioned [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	37,417	34,570
Commercial, Secured by Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	50,345	46,681
Commercial, Industrial and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	332,097	307,044
Commercial, Industrial and Other [Member] | Pass 1 [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	4,188	3,517
Commercial, Industrial and Other [Member] | Pass 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	11,252	9,662
Commercial, Industrial and Other [Member] | Pass 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	59,705	56,895
Commercial, Industrial and Other [Member] | Pass 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	121,085	111,702
Commercial, Industrial and Other [Member] | Pass 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	110,240	105,301
Commercial, Industrial and Other [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	7,572	4,259
Commercial, Industrial and Other [Member] | Other Assets Especially Mentioned [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	5,912	4,105
Commercial, Industrial and Other [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	12,143	11,603
Real Estate-Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	124,653	118,070
Real Estate-Construction [Member] | Pass 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	16,466	19,125
Real Estate-Construction [Member] | Pass 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	104,961	94,535
Real Estate-Construction [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	146	146
Real Estate-Construction [Member] | Other Assets Especially Mentioned [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	1,846	1,851
Real Estate-Construction [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loan portfolio	$ 1,234	$ 2,413

XML

Loans, Leases and Other Real Estate - Allowance for Loan and Lease Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Allowance for Loan and Lease Losses:
Beginning Balance	$ 30,874	$ 30,684
Charge-offs	(1,543)	(1,281)
Recoveries	147	232
Provision	1,075	870
Ending Balance	30,553	30,505
Commercial, Secured by Real Estate [Member]
Allowance for Loan and Lease Losses:
Beginning Balance	20,223	13,577
Charge-offs	(135)	(546)
Recoveries	55	39
Provision	(66)	(510)
Ending Balance	20,077	12,560
Commercial, Industrial and Other [Member]
Allowance for Loan and Lease Losses:
Beginning Balance	2,637	3,196
Charge-offs	(625)	(10)
Recoveries	42	42
Provision	543	79
Ending Balance	2,597	3,307
Leases [Member]
Allowance for Loan and Lease Losses:
Beginning Balance	460	582
Charge-offs	(70)	(427)
Recoveries	1	20
Provision	197	863
Ending Balance	588	1,038
Real Estate-Residential Mortgage [Member]
Allowance for Loan and Lease Losses:
Beginning Balance	2,588	4,020
Charge-offs	(93)	(17)
Recoveries	3	1
Provision	(232)	(706)
Ending Balance	2,266	3,298
Real Estate-Construction [Member]
Allowance for Loan and Lease Losses:
Beginning Balance	1,591	553
Charge-offs		(20)
Recoveries		100
Provision	(87)	4
Ending Balance	1,504	637
Home Equity and Consumer [Member]
Allowance for Loan and Lease Losses:
Beginning Balance	3,375	6,333
Charge-offs	(620)	(261)
Recoveries	46	30
Provision	720	822
Ending Balance	3,521	6,924
Unallocated [Member]
Allowance for Loan and Lease Losses:
Beginning Balance	$ 0	2,423
Provision		318
Ending Balance		$ 2,741

XML

Loans, Leases and Other Real Estate - Loans Receivable Summarized by Portfolio Segment and Impairment Method (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	$ 26,874	$ 26,006
Ending Balance: Collectively evaluated for impairment	3,341,292	2,941,940
Ending Balance	3,368,961	2,967,946
Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Loans acquired with deteriorated credit quality	795
Commercial, Secured by Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	19,898	19,786
Ending Balance: Collectively evaluated for impairment	2,098,460	1,741,803
Ending Balance	2,118,682	1,761,589
Commercial, Secured by Real Estate [Member] | Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Loans acquired with deteriorated credit quality	324
Commercial, Industrial and Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	1,764	1,232
Ending Balance: Collectively evaluated for impairment	329,885	305,812
Ending Balance	332,097	307,044
Commercial, Industrial and Other [Member] | Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Loans acquired with deteriorated credit quality	448
Leases [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	3	6
Ending Balance: Collectively evaluated for impairment	60,922	56,654
Ending Balance	60,925	56,660
Real Estate-Residential Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	3,011	3,027
Ending Balance: Collectively evaluated for impairment	389,376	386,665
Ending Balance	392,387	389,692
Real Estate-Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	375	380
Ending Balance: Collectively evaluated for impairment	124,278	117,690
Ending Balance	124,653	118,070
Home Equity and Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	1,823	1,575
Ending Balance: Collectively evaluated for impairment	338,371	333,316
Ending Balance	340,217	$ 334,891
Home Equity and Consumer [Member] | Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Loans acquired with deteriorated credit quality	$ 23

XML

Loans, Leases and Other Real Estate - Allowance for Loan Losses Summarized by Portfolio Segment and Impairment Classification (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	$ 701	$ 843	$ 1,458
Ending Balance: Collectively evaluated for impairment	29,852	30,031
Ending Balance	30,553	30,874	30,505	$ 30,684
Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Loans acquired with deteriorated credit quality	0
Commercial, Secured by Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	488	598	351
Ending Balance: Collectively evaluated for impairment	19,589	19,625
Ending Balance	20,077	20,223	12,560	13,577
Commercial, Secured by Real Estate [Member] | Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Loans acquired with deteriorated credit quality	0
Commercial, Industrial and Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	41	77	5
Ending Balance: Collectively evaluated for impairment	2,556	2,560
Ending Balance	2,597	2,637	3,307	3,196
Commercial, Industrial and Other [Member] | Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Loans acquired with deteriorated credit quality	0
Leases [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment		1	14
Ending Balance: Collectively evaluated for impairment	588	459
Ending Balance	588	460	1,038	582
Leases [Member] | Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Loans acquired with deteriorated credit quality	0
Real Estate-Residential Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	63	73	72
Ending Balance: Collectively evaluated for impairment	2,203	2,515
Ending Balance	2,266	2,588	3,298	4,020
Real Estate-Residential Mortgage [Member] | Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Loans acquired with deteriorated credit quality	0
Real Estate-Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	4	21	2
Ending Balance: Collectively evaluated for impairment	1,500	1,570
Ending Balance	1,504	1,591	637	553
Real Estate-Construction [Member] | Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Loans acquired with deteriorated credit quality	0
Home Equity and Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Individually evaluated for impairment	105	73	1,014
Ending Balance: Collectively evaluated for impairment	3,416	3,302
Ending Balance	3,521	$ 3,375	$ 6,924	$ 6,333
Home Equity and Consumer [Member] | Loans Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance: Loans acquired with deteriorated credit quality	$ 0

XML

Loans, Leases and Other Real Estate - Summary of Restructured Loans (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) Contract	Mar. 31, 2015 USD ($) Contract
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	3	4
Pre-Modification Outstanding Recorded Investment	$ 285	$ 1,568
Post-Modification Outstanding Recorded Investment	$ 285	$ 1,568
Commercial, Industrial and Other [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract		1
Pre-Modification Outstanding Recorded Investment		$ 1,149
Post-Modification Outstanding Recorded Investment		$ 1,149
Leases [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract		1
Pre-Modification Outstanding Recorded Investment		$ 14
Post-Modification Outstanding Recorded Investment		$ 14
Real Estate-Construction [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract		1
Pre-Modification Outstanding Recorded Investment		$ 396
Post-Modification Outstanding Recorded Investment		$ 396
Home Equity and Consumer [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	3	1
Pre-Modification Outstanding Recorded Investment	$ 285	$ 9
Post-Modification Outstanding Recorded Investment	$ 285	$ 9

XML

Loans, Leases and Other Real Estate - Summary of Restructured Loans within Previous 12 Months that have Subsequently Defaulted (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) Contract	Mar. 31, 2015 USD ($) Contract
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	3	2
Recorded Investment | $	$ 862	$ 485
Commercial, Secured by Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	1
Recorded Investment | $	$ 635
Real Estate-Residential Mortgage [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract		1
Recorded Investment | $		$ 483
Home Equity and Consumer [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	2	1
Recorded Investment | $	$ 227	$ 2

XML

Estimated Fair Value of Financial Instruments and Fair Value Measurement - Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets/Liabilities:
Investment securities, available for sale	$ 441,147	$ 442,349
US Treasury and Government Agencies [Member]
Assets/Liabilities:
Investment securities, available for sale	86,944	97,133
Obligations of States and Political Subdivisions [Member]
Assets/Liabilities:
Investment securities, available for sale	36,827	36,498
Other Debt Securities [Member]
Assets/Liabilities:
Investment securities, available for sale	501	501
Equity Securities [Member]
Assets/Liabilities:
Investment securities, available for sale	18,622	18,645
Fair Value, Measurements, Recurring [Member]
Assets/Liabilities:
Investment securities, available for sale	441,147	442,349
Total Assets	444,652	443,867
Total Liabilities	3,505	1,518
Fair Value, Measurements, Recurring [Member] | Non-Hedging [Member] | Interest Rate Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-hedging interest rate derivatives - Liabilities	3,505	1,518
Assets/Liabilities:
Non-hedging interest rate derivatives - Assets	3,505	1,518
Fair Value, Measurements, Recurring [Member] | US Treasury and Government Agencies [Member]
Assets/Liabilities:
Investment securities, available for sale	86,944	97,133
Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities [Member]
Assets/Liabilities:
Investment securities, available for sale	298,253	289,572
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Assets/Liabilities:
Investment securities, available for sale	36,827	36,498
Fair Value, Measurements, Recurring [Member] | Other Debt Securities [Member]
Assets/Liabilities:
Investment securities, available for sale	501	501
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
Assets/Liabilities:
Investment securities, available for sale	4,833	5,060
Fair Value, Measurements, Recurring [Member] | Investments Measured At Net Asset Value [Member]
Assets/Liabilities:
Investment securities, available for sale	13,789	13,585
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member]
Assets/Liabilities:
Investment securities, available for sale	10,839	9,940
Total Assets	10,839	9,940
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | US Treasury and Government Agencies [Member]
Assets/Liabilities:
Investment securities, available for sale	6,014	4,888
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
Assets/Liabilities:
Investment securities, available for sale	4,825	5,052
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member]
Assets/Liabilities:
Investment securities, available for sale	416,519	418,824
Total Assets	420,024	420,342
Total Liabilities	3,505	1,518
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Non-Hedging [Member] | Interest Rate Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-hedging interest rate derivatives - Liabilities	3,505	1,518
Assets/Liabilities:
Non-hedging interest rate derivatives - Assets	3,505	1,518
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | US Treasury and Government Agencies [Member]
Assets/Liabilities:
Investment securities, available for sale	80,930	92,245
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities [Member]
Assets/Liabilities:
Investment securities, available for sale	298,253	289,572
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Assets/Liabilities:
Investment securities, available for sale	36,827	36,498
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Other Debt Securities [Member]
Assets/Liabilities:
Investment securities, available for sale	501	501
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
Assets/Liabilities:
Investment securities, available for sale	$ 8	$ 8

XML

Estimated Fair Value of Financial Instruments and Fair Value Measurement - Fair Value of Assets Measured on Nonrecurring Basis (Detail) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans and Leases	$ 26,874	$ 26,006
Loans held for sale	1,150	1,233
Other real estate owned and other repossessed assets	792	983
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	1,150	1,233
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans and Leases	26,874	26,006
Other real estate owned and other repossessed assets	$ 792	$ 983

XML

Estimated Fair Value of Financial Instruments and Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term municipal bond	$ 8,100
Subordinate debt	31,238	$ 31,238
Non-rated [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Subordinate debt	$ 1,000
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rates	5.00%
Capitalization rates	4.00%
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rates	11.00%
Capitalization rates	9.00%

XML

Estimated Fair Value of Financial Instruments and Fair Value Measurement - Carrying Values and Fair Values of Company's Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financial Instruments - Assets
Investment securities held to maturity, Fair Value	$ 118,357	$ 117,594
Investment securities held to maturity, Carrying Value	115,796	116,740
Federal Home Loan Bank and other membership bank stocks, Fair Value	16,193	14,087
Federal Home Loan Bank and other membership bank stocks, Carrying Value	16,193	14,087
Loans and leases, net Fair Value	3,346,814	2,930,188
Loans and leases, net Carrying Value	3,335,819	2,934,326
Financial Instruments - Liabilities
Certificates of Deposit, Fair Value	484,520	341,998
Certificates of Deposit, Carrying value	483,793	343,321
Other borrowings, Fair Value	314,739	275,409
Other borrowings, Carrying value	310,031	271,905
Subordinated debentures, Fair Value	21,867	24,366
Subordinated debentures, Carrying Value	31,238	31,238
Significant Other Observable Inputs (Level 2) [Member]
Financial Instruments - Assets
Investment securities held to maturity, Fair Value	109,253	110,293
Federal Home Loan Bank and other membership bank stocks, Fair Value	16,193	14,087
Financial Instruments - Liabilities
Certificates of Deposit, Fair Value	484,520	341,998
Other borrowings, Fair Value	314,739	275,409
Significant Unobservable Inputs (Level 3) [Member]
Financial Instruments - Assets
Investment securities held to maturity, Fair Value	9,104	7,301
Loans and leases, net Fair Value	3,346,814	2,930,188
Financial Instruments - Liabilities
Subordinated debentures, Fair Value	$ 21,867	$ 24,366

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Derivatives - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Available for sale securities pledged for collateral	$ 4.6	$ 2.5

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Derivatives - Summary Information Regarding Derivatives (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Customer Interest Rate Swaps [Member]
Derivative [Line Items]
Derivatives, Asset Notional Amount	$ 46,263,000	$ 35,664,000
Derivatives, Average Maturity (Years)	13 years 3 months 18 days	14 years 7 months 6 days
Derivatives, Weighted Average Fixed Rate	4.36%	4.54%
Derivatives, Weighted Average Variable Rate, description	1 Mo Libor + 1.99	1 Mo Libor + 2.00
Derivatives, Weighted Average Variable Rate	1.99%	2.00%
Derivatives, Fair Value	$ 3,505,000	$ 1,518,000
3rd Party Interest Rate Swaps [Member]
Derivative [Line Items]
Derivatives, Liability Notional Amount	$ (46,263,000)	$ (35,664,000)
Derivatives, Average Maturity (Years)	13 years 3 months 18 days	14 years 7 months 6 days
Derivatives, Weighted Average Fixed Rate	4.36%	4.54%
Derivatives, Weighted Average Variable Rate, description	1 Mo Libor + 1.99	1 Mo Libor + 2.00
Derivatives, Weighted Average Variable Rate	1.99%	2.00%
Derivatives, Fair Value	$ (3,505,000)	$ (1,518,000)

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Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Jan. 07, 2016	Dec. 31, 2015	Dec. 31, 2013
Goodwill And Intangible Assets [Line Items]
Goodwill	$ 125,443,000			$ 109,974,000
Core deposit intangible	1,500,000
Amortization of core deposit intangible	167,000	$ 111,000
Pascack Bancorp, Inc. [Member]
Goodwill And Intangible Assets [Line Items]
Goodwill	15,500,000		$ 15,469,000
Core deposit intangible	1,500,000
Amortization of core deposit intangible	69,000
Somerset Hills Acquisition [Member]
Goodwill And Intangible Assets [Line Items]
Goodwill					$ 22,900,000
Core deposit intangible	2,700,000
Amortization of core deposit intangible	98,000
Prior Acquisitions [Member]
Goodwill And Intangible Assets [Line Items]
Goodwill	$ 87,100,000

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Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense (Detail) $ in Thousands	Mar. 31, 2016 USD ($)
Pascack Bancorp, Inc. [Member]
Finite-Lived Intangible Assets [Line Items]
2016	$ 206
2017	248
2018	220
2019	193
2020	165
2021	138
Somerset Hills Acquisition [Member]
Finite-Lived Intangible Assets [Line Items]
2016	267
2017	316
2018	267
2019	218
2020	168
2021	$ 119

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Borrowings - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)
Debt Instrument [Line Items]
Federal funds purchased	$ 100.3
Securities sold under agreements to repurchase	28.5
Securities sold under agreement to repurchase maturities due	50.0
Securities Sold under Agreements to Repurchase [Member]
Debt Instrument [Line Items]
Pledged securities	104.7
Mortgage Backed Securities [Member]
Debt Instrument [Line Items]
Pledged securities	103.7
U.S. Government Agencies Securities [Member]
Debt Instrument [Line Items]
Pledged securities	$ 1.0
Minimum [Member]
Debt Instrument [Line Items]
Borrowings maturity period	1 year
Maximum [Member]
Debt Instrument [Line Items]
Borrowings maturity period	7 years

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Early Redemption and Extinguishment of Debt - Additional Information (Detail) - Debenture [Member] - Lakeland Bancorp Capital Trust IV [Member] $ in Millions	Aug. 03, 2015 USD ($)
Extinguishment of Debt [Line Items]
Gain on redemption and extinguishment of debt	$ 1.8
Debentures extinguished	$ 10.0
Debenture floated LIBOR rate	1.52%
Distribution rate on debentures	1.80%