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Lakeland Bancorp: Is This 2.5% Yielder A Buy?

Lakeland Bancorp (NASDAQ:LBAI) is a very cost efficient, well-capitalized small-cap bank that operates 46 offices throughout northern New Jersey. With $2.9 billion in assets, $2.388 billion in deposits and $2.17 billion in loans, Lakeland has established itself as the third largest commercial bank headquartered in the state. Recently, Lakeland closed its acquisition of Somerset Hills Bancorp which added $368.9 million in assets in a deal worth $65.7 million (1.52X Somerset's tangible book value).

Since loan growth has been extremely hard for some regional banks, I think this deal is great for shareholders because it comes during a time when Lakeland has already been growing loans organically, and at a price lower than LBAI's own P/TBV. Since this new...

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