EXHIBIT 99.1

Lakeland Bancorp Completes Sixth Consecutive Year of Record Earnings

OAK RIDGE, N.J., Jan. 26, 2018 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (NASDAQ:LBAI) (the “Company”), the parent company of Lakeland Bank (“Lakeland”), reported net income and diluted earnings per share (“EPS”) of $13.2 million and $0.27 for the three months ended December 31, 2017, compared to $12.0 million and $0.26 for the three months ended December 31, 2016.  For the fourth quarter of 2017, return on average assets was 0.97%, return on average common equity was 8.99%, and return on average tangible common equity was 11.82%.  Excluding the impact of the $0.6 million one-time charge taken in the fourth quarter of 2017 for the implementation of the Tax Cuts and Jobs Act of 2017, net income would have been $13.8 million and EPS would have been $0.29. 

In 2017, the Company reported net income of $52.6 million, compared to $41.5 million in 2016.  The Company reported EPS of $1.09 in 2017 compared to $0.95 in 2016.  In 2017, return on average assets was 1.00%, return on average common equity was 9.25%, and return on average tangible common equity was 12.24%.  Excluding the impact of the $0.6 million one-time charge taken in 2017 for the implementation of the Tax Cuts and Jobs Act of 2017, net income would have been $53.2 million and EPS would have been $1.11 in 2017.  Excluding the impact of merger costs in 2016, net income would have been $44.3 million and EPS would have been $1.02 in 2016. 

Thomas Shara, Lakeland Bancorp’s President and CEO, commented on the Company’s results, “We are pleased to announce 2017’s financial results as another year of record earnings. We have continued to focus on growing shareholder value with net income growth of 20%, earnings per share growth of 9% and a return on average assets of 1% in 2017.  Our results are highlighted by our continued improvement in asset quality, reduction in our efficiency ratio to 53% and a consistent loan-to-deposit ratio of 95%.”

Regarding the recently passed changes to the tax laws, Mr. Shara continued, “The decrease in the corporate tax rate allows Lakeland to further invest in our future.  We intend to utilize approximately 20% of the tax savings by accelerating and expanding our investments in personnel and technology that will continue to enhance the delivery of banking services and products to our customers.  In addition, we plan to further increase our financial support of non-profits in the communities we serve.”

The following represents performance highlights and significant events related to the fourth quarter of 2017:

• Return on average assets of 0.97% grew from 0.95% in the fourth quarter of 2016.

• The efficiency ratio of 53.06% improved from 56.35% in the fourth quarter of 2016.

• Net interest margin of 3.37% decreased 2 basis points from the prior quarter and increased 10 basis points from the fourth quarter of 2016.

• Tangible book value per share increased 8% to $9.38 at December 31, 2017 from $8.70 at December 31, 2016.

• Total non-performing assets decreased to 0.27% of total assets at December 31, 2017 from 0.42% of total assets at December 31, 2016.

• On January 23, 2018, the Company declared a cash dividend of $0.10 per share to be paid on February 15, 2018 to stockholders of record as of February 5, 2018.

Earnings
Net income for the fourth quarter of 2017 was $13.2 million, a 10% increase compared to $12.0 million in 2016.  EPS for the fourth quarter of 2017 was $0.27, a 4% increase compared to $0.26 in 2016.  Excluding the $0.6 million one-time tax charge during the quarter, quarterly net income increased 15% and EPS increased 12%. 

Net income for 2017 was $52.6 million, a 27% increase compared to $41.5 million in 2016.  EPS for 2017 was $1.09, a 15% increase compared to $0.95 in 2016.  Excluding merger related expenses incurred in 2016 and the $0.6 million one-time tax charge in 2017, net income increased 20% and EPS increased 9%.

Net Interest Income
Net interest income increased to $42.4 million for the fourth quarter of 2017, compared to $38.2 million for the fourth quarter of 2016 due primarily to the organic growth of earning assets.

Net interest income for 2017 was $165.2 million, as compared to $145.6 million in 2016.  Total interest income increased $26.9 million primarily due to higher interest earning assets from organic growth and the merger with Harmony Bank in July 2016 (the “merger”).  Total interest expense increased $7.3 million primarily due to the deposits acquired in the merger, continued organic deposit growth coupled with higher CD rates and the impact of the additional interest expense from the subordinated debt offering in September 2016.

Noninterest Income
Noninterest income totaled $5.8 million for the fourth quarter of 2017 compared to $5.2 million for the fourth quarter of 2016.  This change was primarily due to increases in service charges on deposit accounts and income on additional bank owned life insurance policies.

In 2017, noninterest income totaled $25.4 million compared to $21.3 million in 2016.  This increase was primarily due to $2.5 million in gains on sales of investment securities in the first quarter of 2017, $0.9 million in gains on sales of three former branches during 2017, a $0.4 million increase on the sales of other real estate owned in 2017 and a $0.3 million gain on the payoff of an acquired loan in 2017, partially offset by a $0.3 million decline in gains on sales of loans during 2017.

Noninterest Expense 
Noninterest expense totaled $25.8 million for the fourth quarter of 2017 compared to $24.8 million for the fourth quarter of 2016.  The increase in noninterest expense was primarily due to additional salary and employee benefit expense from additional personnel and bonus accruals, partially offset by a decrease in other expenses. 

In 2017, noninterest expense totaled $104.5 million, compared to $99.9 million in 2016.  During 2017, the Company incurred long-term debt prepayment penalties of $2.8 million, and during 2016, the Company incurred $4.1 million in merger related expenses.  Excluding these items, the resulting $5.9 million net increase in noninterest expense was primarily due to $5.1 million in increased salary and employee benefit expense related to additional headcount from the merger and new hiring as well as year-over-year salary increases and additional bonus accruals.  This increase in salary and employee benefit expense was partially offset by a decrease in FDIC expense of $0.7 million.

Financial Condition
In 2017, total assets increased $312.5 million, or 6%, to $5.41 billion as total loans and leases grew $282.8 million, or 7%, to $4.16 billion, investment in bank owned life insurance grew $35.1 million, or 48%, to $107.5 million and investment securities increased $29.0 million, or 4%, to $798.4 million.  On the funding side, total deposits grew $275.9 million, or 7%, to $4.37 billion.  As of December 31, 2017, total loans and leases to total deposits was 95%. 

Asset Quality
At December 31, 2017, non-performing assets totaled $14.5 million (0.27% of total assets) compared to $21.5 million (0.42% of total assets) at December 31, 2016.  Non-accrual loans and leases as a percent of total loans and leases decreased to 0.33% at December 31, 2017 from 0.53% at December 31, 2016.  The allowance for loan and lease losses increased to $35.5 million at December 31, 2017 (0.85% of total loans and leases) compared to $31.2 million at December 31, 2016 (0.81% of total loans and leases).  In 2017, the Company had net charge-offs of $1.9 million (0.05% of average loans and leases) compared to $3.9 million (0.11% of average loans and leases) in 2016.  The 2017 provision for loan and lease losses was $6.1 million compared to $4.2 million in 2016.

Capital
At December 31, 2017, stockholders' equity was $583.1 million compared to $550.0 million at December 31, 2016, a 6% increase.   At December 31, 2017, the book value per common share and tangible book value per common share were $12.31 and $9.38 compared to $11.65 and $8.70 at December 31, 2016.

Forward-Looking Statements
The information disclosed in this document includes various forward-looking statements (with respect to corporate objectives, trends, the expected impact from the Tax Cuts and Jobs Act of 2017, and other financial and business matters) that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  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.  The following factors, among others, could cause 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, 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 the Company’s lending and leasing activities, successful implementation, deployment and upgrades of new and existing technology, systems, services and products, customers’ acceptance of the Company’s products and services, and competition.  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.

Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP").  This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results.  Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis, and excludes material non-routine operating items which affect the GAAP reporting of results of operations.  The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods in question.

The Company also provides measurements and ratios based on tangible equity and tangible assets.  These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

The Company also uses an efficiency ratio that is a non-GAAP financial measure.  The ratio that the Company uses excludes amortization of core deposit intangibles, provision for unfunded lending commitments and, where applicable, long-term debt prepayment fees and merger related expenses.  Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes gains and losses from the sale of investment securities and gain on debt extinguishment, which can vary from period to period.  The Company uses this ratio because it believes the ratio provides a relevant measure to compare the operating performance period to period.

These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.  See accompanying non-GAAP tables. 

About Lakeland Bank
Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc. (NASDAQ:LBAI), which has $5.4 billion in total assets. The Bank operates 53 branch offices throughout Bergen, Essex, Morris, Ocean, Passaic, Somerset, Sussex, and Union counties in New Jersey including one branch in Highland Mills, New York; six New Jersey regional commercial lending centers in Bernardsville, Jackson, Montville, Newton, Teaneck and Waldwick; and one in New York to serve the Hudson Valley region. Lakeland also has a commercial loan production office serving Middlesex and Monmouth counties in New Jersey.  Lakeland Bank offers an extensive suite of financial products and services for businesses and consumers. Visit LakelandBank.com for more information.

Thomas J. Shara
President & CEO

Thomas F. Splaine
EVP & CFO
973-697-2000

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
	Three Months Ended December 31,						Twelve Months Ended December 31,
(Dollars in thousands, except per share amounts)		2017			2016			2017			2016
INCOME STATEMENT
Net interest income	$	42,379		$	38,179		$	165,238		$	145,649
Provision for loan and lease losses		(1,218	)		(375	)		(6,090	)		(4,223	)
Gains (losses) on sales of investment securities		-			-			2,524			370
Gains on sales of loans		489			525			1,836			2,123
Other noninterest income		5,287			4,636			21,075			18,837
Long-term debt prepayment fee		-			-			(2,828	)		-
Merger related expenses		-			-			-			(4,103	)
Other noninterest expense		(25,849	)		(24,772	)		(101,706	)		(95,814	)
Pretax income		21,088			18,193			80,049			62,839
Provision for income taxes		(7,913	)		(6,240	)		(27,469	)		(21,321	)
Net income	$	13,175		$	11,953		$	52,580		$	41,518
Basic earnings per common share	$	0.28		$	0.26		$	1.10		$	0.96
Diluted earnings per common share	$	0.27		$	0.26		$	1.09		$	0.95
Dividends per common share	$	0.10		$	0.095		$	0.395		$	0.37
Weighted average shares - basic		47,466			45,002			47,438			42,912
Weighted average shares - diluted		47,719			45,257			47,674			43,114
SELECTED OPERATING RATIOS
Annualized return on average assets		0.97	%		0.95	%		1.00	%		0.90	%
Annualized return on average common equity		8.99	%		9.31	%		9.25	%		8.75	%
Annualized return on average tangible common equity (1)		11.82	%		12.83	%		12.24	%		12.19	%
Annualized return on interest-earning assets		3.95	%		3.74	%		3.88	%		3.82	%
Annualized cost of interest-bearing liabilities		0.75	%		0.62	%		0.67	%		0.54	%
Annualized net interest spread		3.20	%		3.12	%		3.21	%		3.28	%
Annualized net interest margin		3.37	%		3.27	%		3.38	%		3.41	%
Efficiency ratio (1)		53.06	%		56.35	%		53.40	%		56.48	%
Stockholders' equity to total assets								10.79	%		10.80	%
Book value per common share							$	12.31		$	11.65
Tangible book value per common share (1)							$	9.38		$	8.70
Tangible common equity to tangible assets (1)								8.44	%		8.30	%
ASSET QUALITY RATIOS							12/31/2017			12/31/2016
Ratio of allowance for loan and lease losses to total loans and leases								0.85	%		0.81	%
Non-performing loans and leases to total loans and leases								0.33	%		0.53	%
Non-performing assets to total assets								0.27	%		0.42	%
Annualized net charge-offs to average loans and leases								0.05	%		0.11	%
SELECTED BALANCE SHEET DATA AT PERIOD-END							12/31/2017			12/31/2016
Loans and leases							$	4,156,680		$	3,873,895
Allowance for loan and lease losses								35,455			31,245
Investment securities								798,396			769,417
Total assets								5,405,639			5,093,131
Total deposits								4,368,748			4,092,835
Short-term borrowings								124,936			56,354
Other borrowings								296,913			365,650
Stockholders' equity								583,122			550,044
SELECTED AVERAGE BALANCE SHEET DATA	For the Three Months Ended						For the Twelve Months Ended
	12/31/2017			12/31/2016			12/31/2017			12/31/2016
Loans and leases	$	4,116,920		$	3,806,588		$	4,024,257		$	3,562,882
Investment securities		798,687			683,986			810,434			609,336
Interest-earning assets		5,014,333			4,680,156			4,926,986			4,295,384
Total assets		5,372,248			5,015,439			5,267,561			4,619,816
Noninterest-bearing demand deposits		988,451			951,418			959,298			852,629
Savings deposits		478,685			490,556			486,821			485,004
Interest-bearing transaction accounts		2,222,221			2,072,154			2,241,259			1,880,391
Time deposits		730,590			539,870			623,257			506,487
Total deposits		4,419,947			4,053,998			4,310,635			3,724,511
Short-term borrowings		43,130			27,538			41,695			36,242
Other borrowings		295,818			392,789			316,283			356,907
Total interest-bearing liabilities		3,770,444			3,522,907			3,709,315			3,265,031
Stockholders' equity		581,254			510,562			568,680			474,540
(1) See Supplemental Information - Non-GAAP Financial Measures

Lakeland Bancorp, Inc.
Consolidated Statements of Operations
(Unaudited)
		Three Months Ended December 31,				Twelve Months Ended December 31,
(Dollars in thousands, except per share amounts)			2017		2016		2017		2016
INTEREST INCOME
Loans, leases and fees		$	44,889	$	40,090	$	172,342	$	149,777
Federal funds sold and interest-bearing deposits with banks			262		228		880		569
Taxable investment securities and other			3,850		2,878		14,987		11,163
Tax exempt investment securities			460		487		1,995		1,787
	TOTAL INTEREST INCOME		49,461		43,683		190,204		163,296
INTEREST EXPENSE
Deposits			5,039		3,017		16,600		10,512
Federal funds purchased and securities sold under agreements to repurchase			38		3		198		69
Other borrowings			2,005		2,484		8,168		7,066
	TOTAL INTEREST EXPENSE		7,082		5,504		24,966		17,647
NET INTEREST INCOME			42,379		38,179		165,238		145,649
Provision for loan and lease losses			1,218		375		6,090		4,223
	NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES		41,161		37,804		159,148		141,426
NONINTEREST INCOME
Service charges on deposit accounts			2,814		2,577		10,740		10,157
Commissions and fees			1,309		1,089		4,858		4,349
Income on bank owned life insurance			804		437		2,354		2,562
Gains on sales of loans			489		525		1,836		2,123
Gains on sales of investment securities			-		-		2,524		370
Other income			360		533		3,123		1,769
	TOTAL NONINTEREST INCOME		5,776		5,161		25,435		21,330
NONINTEREST EXPENSE
Salaries and employee benefit expense			15,553		14,305		61,166		56,107
Net occupancy expense			2,573		2,534		10,243		9,935
Furniture and equipment expense			2,103		2,113		8,269		8,017
FDIC insurance expense			404		262		1,577		2,248
Stationary, supplies and postage expense			378		456		1,797		1,727
Marketing expense			324		549		1,675		1,672
Data processing expense			497		394		1,993		1,891
Telecommunications expense			451		342		1,607		1,631
ATM and debit card expense			547		433		2,051		1,582
Core deposit intangible amortization			165		202		654		734
Other real estate owned and other repossessed assets expense			73		83		181		116
Long-term debt prepayment fee			-		-		2,828		-
Merger related expenses			-		-		-		4,103
Other expenses			2,781		3,099		10,493		10,154
	TOTAL NONINTEREST EXPENSE		25,849		24,772		104,534		99,917
INCOME BEFORE PROVISION FOR INCOME TAXES			21,088		18,193		80,049		62,839
Provision for income taxes			7,913		6,240		27,469		21,321
NET INCOME		$	13,175	$	11,953	$	52,580	$	41,518
EARNINGS PER COMMON SHARE
Basic		$	0.28	$	0.26	$	1.10	$	0.96
Diluted		$	0.27	$	0.26	$	1.09	$	0.95
DIVIDENDS PER COMMON SHARE		$	0.10	$	0.095	$	0.395	$	0.37

Lakeland Bancorp, Inc.
Consolidated Balance Sheets
	December 31,			December 31,
(Dollars in thousands)		2017			2016
	(Unaudited)
ASSETS
Cash	$	114,138		$	169,149
Interest-bearing deposits due from banks		28,795			6,652
Total cash and cash equivalents		142,933			175,801
Investment securities available for sale, at fair value		646,135			606,704
Investment securities held to maturity; fair value of $138,688 at December 31, 2017
and $146,990 at December 31, 2016		139,685			147,614
Federal Home Loan Bank and other membership stocks, at cost		12,576			15,099
Loans held for sale		456			1,742
Loans and leases:
Commercial, real estate		3,096,092			2,767,710
Commercial, industrial and other		340,400			350,228
Leases		75,039			67,016
Residential mortgages		322,880			349,581
Consumer and home equity		322,269			339,360
Total loans and leases		4,156,680			3,873,895
Net deferred costs (fees)		(3,960	)		(3,297	)
Allowance for loan and lease losses		(35,455	)		(31,245	)
Net loans and leases		4,117,265			3,839,353
Premises and equipment, net		50,313			52,236
Accrued interest receivable		14,416			12,557
Goodwill		136,433			135,747
Other identifiable intangible assets		2,362			3,344
Bank owned life insurance		107,489			72,384
Other assets		35,576			30,550
TOTAL ASSETS	$	5,405,639		$	5,093,131
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$	967,335		$	927,270
Savings and interest-bearing transaction accounts		2,663,985			2,620,657
Time deposits $250 thousand and under		556,863			404,680
Time deposits over $250 thousand		180,565			140,228
Total deposits		4,368,748			4,092,835
Federal funds purchased and securities sold under agreements to repurchase		124,936			56,354
Other borrowings		192,011			260,866
Subordinated debentures		104,902			104,784
Other liabilities		31,920			28,248
TOTAL LIABILITIES		4,822,517			4,543,087
STOCKHOLDERS' EQUITY
Common stock, no par value; authorized 70,000,000 shares;
issued 47,353,864 shares at December 31, 2017
and 47,222,914 shares at December 31, 2016		512,734			510,861
Retained earnings		72,737			38,590
Accumulated other comprehensive gain (loss)		(2,349	)		593
TOTAL STOCKHOLDERS' EQUITY		583,122			550,044
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,405,639		$	5,093,131

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
	For the Quarter Ended
	Dec 31,			Sept 30,			June 30,			Mar 31,			Dec 31,
(Dollars in thousands, except per share data)		2017			2017			2017			2017			2016
INCOME STATEMENT
Net interest income	$	42,379		$	42,115		$	41,421		$	39,323		$	38,179
Provision for loan and lease losses		(1,218	)		(1,827	)		(1,827	)		(1,218	)		(375	)
Gains (losses) on sales of investment securities		-			-			(15	)		2,539			-
Gains on sales of loans		489			478			471			398			525
Other noninterest income		5,287			4,976			5,655			5,157			4,636
Long-term debt prepayment fee		-			-			-			(2,828	)		-
Other noninterest expense		(25,849	)		(24,849	)		(25,366	)		(25,642	)		(24,772	)
Pretax income		21,088			20,893			20,339			17,729			18,193
Provision for income taxes		(7,913	)		(7,170	)		(6,969	)		(5,417	)		(6,240	)
Net income	$	13,175		$	13,723		$	13,370		$	12,312		$	11,953
Basic earnings per common share	$	0.28		$	0.29		$	0.28		$	0.26		$	0.26
Diluted earnings per common share	$	0.27		$	0.29		$	0.28		$	0.26		$	0.26
Dividends per common share	$	0.10		$	0.10		$	0.10		$	0.095		$	0.095
Dividends paid	$	4,776		$	4,775		$	4,775		$	4,527		$	4,265
Weighted average shares - basic		47,466			47,466			47,465			47,354			45,002
Weighted average shares - diluted		47,719			47,692			47,674			47,623			45,257
SELECTED OPERATING RATIOS
Annualized return on average assets		0.97	%		1.03	%		1.02	%		0.97	%		0.95	%
Annualized return on average common equity		8.99	%		9.48	%		9.49	%		9.02	%		9.31	%
Annualized return on average tangible common equity (1)		11.82	%		12.51	%		12.58	%		12.04	%		12.83	%
Annualized net interest margin		3.37	%		3.39	%		3.41	%		3.33	%		3.27	%
Efficiency ratio (1)		53.06	%		51.72	%		52.64	%		56.36	%		56.35	%
Common stockholders' equity to total assets		10.79	%		10.69	%		10.58	%		10.63	%		10.80	%
Tangible common equity to tangible assets (1)		8.44	%		8.33	%		8.20	%		8.20	%		8.30	%
Tier 1 risk-based ratio		10.87	%		10.82	%		10.77	%		10.73	%		10.85	%
Total risk-based ratio		13.40	%		13.37	%		13.32	%		13.29	%		13.48	%
Tier 1 leverage ratio		9.12	%		9.07	%		8.99	%		8.97	%		9.07	%
Common equity tier 1 capital ratio		10.18	%		10.13	%		10.06	%		10.01	%		10.11	%
Book value per common share	$	12.31		$	12.19		$	11.99		$	11.78		$	11.65
Tangible book value per common share (1)	$	9.38		$	9.25		$	9.05		$	8.84		$	8.70
(1) See Supplemental Information - Non-GAAP Financial Measures

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
	For the Quarter Ended
	Dec 31,			Sept 30,			June 30,			Mar 31,			Dec 31,
(Dollars in thousands)		2017			2017			2017			2017			2016
SELECTED BALANCE SHEET DATA AT PERIOD-END
Loans and leases	$	4,156,680		$	4,092,893		$	4,054,276		$	3,974,718		$	3,873,895
Allowance for loan and lease losses		35,455			33,925			32,823			31,590			31,245
Investment securities		798,396			795,096			830,531			847,833			769,417
Total assets		5,405,639			5,399,481			5,362,187			5,247,815			5,093,131
Total deposits		4,368,748			4,356,996			4,227,204			4,293,393			4,092,835
Short-term borrowings		124,936			133,960			118,487			84,850			56,354
Other borrowings		296,913			301,411			417,093			278,238			365,650
Stockholders' equity		583,122			577,081			567,545			557,642			550,044
LOANS AND LEASES
Commercial, real estate	$	3,096,092		$	3,018,106		$	2,955,596		$	2,881,972		$	2,767,710
Commercial, industrial and other		340,400			342,775			352,977			342,264			350,228
Leases		75,039			71,698			70,295			67,488			67,016
Residential mortgages		322,880			329,625			337,765			344,890			349,581
Consumer and home equity		322,269			330,689			337,643			338,104			339,360
Total loans and leases	$	4,156,680		$	4,092,893		$	4,054,276		$	3,974,718		$	3,873,895
DEPOSITS
Noninterest-bearing	$	967,335		$	955,444		$	978,668		$	924,581		$	927,270
Savings and interest-bearing transaction accounts		2,663,985			2,681,512			2,682,291			2,809,705			2,620,657
Time deposits		737,428			720,040			566,245			559,107			544,908
Total deposits	$	4,368,748		$	4,356,996		$	4,227,204		$	4,293,393		$	4,092,835
Total loans and leases to total deposits ratio		95.1	%		93.9	%		95.9	%		92.6	%		94.7	%
SELECTED AVERAGE BALANCE SHEET DATA
Loans and leases	$	4,116,920		$	4,060,838		$	4,011,325		$	3,905,216		$	3,806,588
Investment securities		798,687			815,773			837,075			790,046			683,986
Interest-earning assets		5,014,333			4,957,856			4,907,488			4,825,855			4,680,156
Total assets		5,372,248			5,300,191			5,241,155			5,153,893			5,015,439
Noninterest-bearing demand deposits		988,451			971,143			954,966			921,770			951,418
Savings deposits		478,685			484,982			492,991			490,777			490,556
Interest-bearing transaction accounts		2,222,221			2,206,206			2,295,256			2,241,954			2,072,154
Time deposits		730,590			645,333			559,665			555,270			539,870
Total deposits		4,419,947			4,307,664			4,302,878			4,209,771			4,053,998
Short-term borrowings		43,130			42,172			52,951			28,358			27,538
Other borrowings		295,818			344,775			291,882			332,750			392,789
Total interest-bearing liabilities		3,770,444			3,723,468			3,692,745			3,649,109			3,522,907
Stockholders' equity		581,254			574,113			565,211			553,782			510,562

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
	For the Quarter Ended
	Dec 31,			Sept 30,			June 30,			Mar 31,			Dec 31,
(Dollars in thousands)		2017			2017			2017			2017			2016
AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT BASIS)
ASSETS
Loans and leases		4.33	%		4.33	%		4.27	%		4.20	%		4.19	%
Taxable investment securities and other		2.17	%		2.09	%		2.11	%		2.13	%		2.00	%
Tax-exempt securities		3.21	%		2.98	%		2.86	%		2.78	%		2.75	%
Federal funds sold and interest-bearing cash accounts		1.06	%		1.03	%		0.89	%		0.85	%		0.48	%
Total interest-earning assets		3.95	%		3.93	%		3.88	%		3.78	%		3.74	%
LIABILITIES
Savings accounts		0.06	%		0.06	%		0.06	%		0.06	%		0.06	%
Interest-bearing transaction accounts		0.51	%		0.49	%		0.44	%		0.38	%		0.35	%
Time deposits		1.17	%		1.03	%		0.86	%		0.83	%		0.84	%
Borrowings		2.36	%		2.20	%		2.30	%		2.37	%		2.37	%
Total interest-bearing liabilities		0.75	%		0.71	%		0.63	%		0.60	%		0.62	%
Net interest spread (taxable equivalent basis)		3.20	%		3.22	%		3.25	%		3.18	%		3.12	%
Annualized net interest margin (taxable equivalent basis)		3.37	%		3.39	%		3.41	%		3.33	%		3.27	%
Annualized cost of deposits		0.45	%		0.41	%		0.35	%		0.32	%		0.30	%
ASSET QUALITY DATA
ALLOWANCE FOR LOAN AND LEASE LOSSES
Balance at beginning of period	$	33,925		$	32,823		$	31,590		$	31,245		$	31,369
Provision for loan and lease losses		1,218			1,827			1,827			1,218			375
Charge-offs		(347	)		(869	)		(870	)		(1,360	)		(795	)
Recoveries		659			144			276			487			296
Balance at end of period	$	35,455		$	33,925		$	32,823		$	31,590		$	31,245
NET LOAN AND LEASE CHARGE-OFFS (RECOVERIES)
Commercial, real estate	$	132		$	285		$	(67	)	$	595		$	(87	)
Commercial, industrial and other		25			168			44			68			(96	)
Leases		34			80			92			39			42
Residential mortgages		31			95			169			141			231
Consumer and home equity		(534	)		97			356			30			409
Net charge-offs (recoveries)	$	(312	)	$	725		$	594		$	873		$	499
NON-PERFORMING ASSETS
Commercial, real estate	$	7,362		$	6,820		$	10,240		$	10,443		$	11,885
Commercial, industrial and other		184			172			378			136			167
Leases		144			110			81			179			153
Residential mortgages		3,860			4,410			3,857			4,715			6,048
Consumer and home equity		2,105			2,033			1,689			2,270			2,151
Total non-accrual loans and leases		13,655			13,545			16,245			17,743			20,404
Property acquired through foreclosure or repossession		843			1,168			1,415			710			1,072
Total non-performing assets	$	14,498		$	14,713		$	17,660		$	18,453		$	21,476
Loans past due 90 days or more and still accruing	$	200		$	9		$	20		$	-		$	10
Loans restructured and still accruing	$	11,462		$	11,279		$	11,697		$	11,553		$	8,802
Ratio of allowance for loan and lease losses to total loans and leases		0.85	%		0.83	%		0.81	%		0.79	%		0.81	%
Total non-accrual loans and leases to total loans and leases		0.33	%		0.33	%		0.40	%		0.45	%		0.53	%
Total non-performing assets to total assets		0.27	%		0.27	%		0.33	%		0.35	%		0.42	%
Annualized net charge-offs (recoveries) to average loans and leases		-0.03	%		0.07	%		0.06	%		0.09	%		0.05	%

Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)
	At or for the Quarter Ended
	Dec 31,			Sept 30,			June 30,			Mar 31,			Dec 31,
(Dollars in thousands, except per share amounts)		2017			2017			2017			2017			2016
CALCULATION OF TANGIBLE BOOK VALUE PER COMMON SHARE
Total common stockholders' equity at end of period - GAAP	$	583,122		$	577,081		$	567,545		$	557,642		$	550,044
Less:  Goodwill		136,433			136,433			136,433			135,747			135,747
Less:  Other identifiable intangible assets		2,362			2,526			2,631			3,149			3,344
Total tangible common stockholders' equity at end of period - Non-GAAP	$	444,327		$	438,122		$	428,481		$	418,746		$	410,953
Shares outstanding at end of period		47,354			47,353			47,353			47,350			47,223
Book value per share - GAAP	$	12.31		$	12.19		$	11.99		$	11.78		$	11.65
Tangible book value per share - Non-GAAP	$	9.38		$	9.25		$	9.05		$	8.84		$	8.70
CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
Total tangible common stockholders' equity at end of period - Non-GAAP	$	444,327		$	438,122		$	428,481		$	418,746		$	410,953
Total assets at end of period - GAAP	$	5,405,639		$	5,399,481		$	5,362,187		$	5,247,815		$	5,093,131
Less:  Goodwill		136,433			136,433			136,433			135,747			135,747
Less:  Other identifiable intangible assets		2,362			2,526			2,631			3,149			3,344
Total tangible assets at end of period - Non-GAAP	$	5,266,844		$	5,260,522		$	5,223,123		$	5,108,919		$	4,954,040
Common equity to assets - GAAP		10.79	%		10.69	%		10.58	%		10.63	%		10.80	%
Tangible common equity to tangible assets - Non-GAAP		8.44	%		8.33	%		8.20	%		8.20	%		8.30	%
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY
Net income - GAAP	$	13,175		$	13,723		$	13,370		$	12,312		$	11,953
Total average common stockholders' equity - GAAP	$	581,254		$	574,113		$	565,211		$	553,782		$	510,562
Less:  Average goodwill		136,433			136,433			135,755			135,747			136,385
Less:  Average other identifiable intangible assets		2,450			2,606			3,069			3,276			3,459
Total average tangible common stockholders' equity - Non-GAAP	$	442,371		$	435,074		$	426,387		$	414,759		$	370,718
Return on average common stockholders' equity - GAAP		8.99	%		9.48	%		9.49	%		9.02	%		9.31	%
Return on average tangible common stockholders' equity - Non-GAAP		11.82	%		12.51	%		12.58	%		12.04	%		12.83	%
CALCULATION OF EFFICIENCY RATIO
Total noninterest expense	$	25,849		$	24,849		$	25,366		$	28,470		$	24,772
Amortization of core deposit intangibles		(165	)		(104	)		(190	)		(195	)		(202	)
Long-term debt prepayment fee		-			-			-			(2,828	)		-
Merger related expenses		-			-			-			-			-
Noninterest expense, as adjusted	$	25,684		$	24,745		$	25,176		$	25,447		$	24,570
Net interest income	$	42,379		$	42,115		$	41,421		$	39,323		$	38,179
Total noninterest income		5,776			5,454			6,111			8,094			5,161
Total revenue		48,155			47,569			47,532			47,417			43,340
Tax-equivalent adjustment on municipal securities		247			271			281			275			262
(Gains) losses on sales of investment securities		-			-			15			(2,539	)		-
Total revenue, as adjusted	$	48,402		$	47,840		$	47,828		$	45,153		$	43,602
Efficiency ratio - Non-GAAP		53.06	%		51.72	%		52.64	%		56.36	%		56.35	%
	For the Quarter Ended						For the Twelve Months Ended
	Dec 31,			Dec 31,			Dec 31,			Dec 31,
(Dollars in thousands, except per share amounts)		2017			2016			2017			2016
RECONCILIATION OF EARNINGS PER SHARE
Net income - GAAP	$	13,175		$	11,953		$	52,580		$	41,518
NON-ROUTINE TRANSACTIONS, NET OF TAX
One-time impact of Tax Cuts and Jobs Act of 2017		602			-			602			-
Tax deductible merger related expenses		-			-			-			1,915
Non-tax deductible merger related expenses		-			-			-			866
Net effect of non-routine transactions		602			-			602			2,781
Net income available to common shareholders excluding non-routine transactions		13,777			11,953			53,182			44,299
Less:  Earnings allocated to participating securities		(118	)		(122	)		(480	)		(396	)
	$	13,659		$	11,831		$	52,702		$	43,903
Weighted average shares - Basic		47,466			45,002			47,438			42,912
Weighted average shares - Diluted		47,719			45,257			47,674			43,114
Basic earnings per share - GAAP	$	0.28		$	0.26		$	1.10		$	0.96
Diluted earnings per share - GAAP	$	0.27		$	0.26		$	1.09		$	0.95
Basic earnings per share, adjusted for non-routine transactions	$	0.29		$	0.26		$	1.11		$	1.02
Diluted earnings per share, adjusted for non-routine transactions (Core EPS)	$	0.29		$	0.26		$	1.11		$	1.02

Lakeland Bancorp, Inc.
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)
	For the Twelve Months Ended,
	Dec 31,			Dec 31,
(Dollars in thousands)		2017			2016
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY
Net income - GAAP	$	52,580		$	41,518
Total average common stockholders' equity - GAAP	$	568,680		$	474,540
Less:  Average goodwill		136,095			130,689
Less:  Average other identifiable intangible assets		2,847			3,225
Total average tangible common stockholders' equity - Non-GAAP	$	429,738		$	340,626
Return on average common stockholders' equity - GAAP		9.25	%		8.75	%
Return on average tangible common stockholders' equity - Non-GAAP		12.24	%		12.19	%
CALCULATION OF EFFICIENCY RATIO
Total noninterest expense	$	104,534		$	99,917
Amortization of core deposit intangibles		(654	)		(734	)
Long-term debt prepayment fee		(2,828	)		-
Merger related expenses		-			(4,103	)
Provision for unfunded lending commitments		-			(438	)
Noninterest expense, as adjusted	$	101,052		$	94,642
Net interest income	$	165,238		$	145,649
Noninterest income		25,435			21,330
Total revenue		190,673			166,979
Tax-equivalent adjustment on municipal securities		1,074			962
Gains on sales of investment securities		(2,524	)		(370	)
Total revenue, as adjusted	$	189,223		$	167,571
Efficiency ratio - Non-GAAP		53.40	%		56.48	%