Somerset Hills Bancorp

Somerset Hills Bancorp — Merger or Acquisition (January 2013)

13 slides from Somerset Hills Bancorp's merger presentation, Jan 29, 2013

  1. Slide 1: Investor Presentation: Acquisition of Somerset Hills Bancorp

    0, 2 Lakeland Bancorp, Inc. INVESTOR PRESENTATION ACQUISITION OF SOMERSET HILLS BANCORP: JANUARY 29, 2012 THOMAS J. SHARA, PRESIDENT & CEO <> JOSEPH F. HURLEY, EVP & CFO

  2. Slide 2: Safe Harbor Statement

    Lakeland Bancorp. Ine. Safe Harbor Statement This communication contains forward-looking statements with respect to the proposed mergers and the timing of consummation of the mergers that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Th

  3. Slide 3: Transaction Overview

    Lakeland Bancorp. Inc. Per Share Consideration: Transaction Value (): Consideration Mix: Exchange: Shares Issued: Board Representation: Required Approvals: Due Diligence: Expected Closing: Transaction Overview $12.00 per share $64.4 million 90% stock / 10% cash Exchange ratio fixed at 1.1962 : 1 5,7

  4. Slide 4: Overview of Somerset Hills Bancorp

    7) Lakeland Bancorp. Inc. ‘Summary Financial Information as of —__ December 31, 2012 (SM) + Assets: $368.9 + Loans: $238.8 + Deposits: $320.2 + Equity: $41.8 + 2012 Net Income: $3.4 + Tang. BV/ Share: $7.79 + 2012 ROAA: 0.95% + 2012 ROAE: 8.15% +NPAs/Assets 0.2% Seurce: Company Fags and SNL Financia

  5. Slide 5: Transaction Rationale

    7) Lakeland Bancorp. Inc. Transaction Rationale Acquisition of a high quality institution with strong asset quality (0.2% NPAs / Assets at December 31, 2012) and a strong track record of profitability (2012 ROAA of 0.95%) Extends and enhances Lakeland’s market presence south into the attractive mark

  6. Slide 6: Valuation & Deal Overview

    4) Lakeland Bancorp. Inc. Valuation & Deal Overview Deal Value ‘*) / Tangible Book Value per Share: 154% Deal Value (*) / 2012 EPS: 19x 4-Day Market Premium ("): 31% to SOMH close of $9.13 on 1-28-13 One-Time Expenses: $2.8 milion estimated, pre-tax Anticipated Cost Savings: $2.8 million estimated,

  7. Slide 7: Pro Forma Branch Map

    7) Lakeland Bancorp. Inc. Pro Forma Branch Map ear (as ranches) soma a (6 branches) ‘Summary Pro Forma Information + Assets: $3.3 billion ++ Market Cap. + Loans: $2.4 billion + Branches: + Deposits: $2.7 bilon + Counties Served: ‘Source: SNL (0) Does nat include purchase accounting adjustments

  8. Slide 8: Pro Forma Franchise & Market Share

    Pro Forma Franchise & Market Share 7) Lakeland Bancorp. Inc. Somerset 22372 Union 162779 + The transaction adds to and extends Lakeland’s branch presence in several demographically appealing markets + Adds 4 branches in Morris County + Provides entry into Somerset and Union Counties ‘Source: SNL Fin

  9. Slide 9: Pro Forma Loan Composition

    79 Lakeland Bancorp. Inc. Pro Forma Loan Composition Pro Forma APLakciarciBercom.ine. SOMERSET HILLS BANK Mp Lakeland Bancorp.tnc CRE Coane SBT? CRE Loans 19462 GRE Loane = 180080 eases 26.48 Leneas eases 2506 Res Morgages <f04a8 Ress Mongones 24408 Res. Morgages 281700 Const Loans 149.160 Const Lom

  10. Slide 10: Pro Forma Deposit Composition

    0) Lakeland Bancorp. Inc. Pro Forma Deposit Composition Pro Forma SOMERSET HILLS BANK 9% Lakeland Bancorp. Inc. Ne Demand 495256 Ne Demans S_79886N@ demand ‘Savage 008 MOA 1595422 Sawege ans MOA 185837 Surge nd MOA Reta Tine {96390 Revie “6.457 Reta Tie ‘habe Tie 123491 Janae Time 47,598 Jano Tone T

  11. Slide 11: Track Record of Successful Integrations

    § Lakeland Bancorp. Inc. Track Record of Successful Integrations ‘Company ‘Assets ($000) Deal Value ($M) =Newton Trust $320,160 $122,229 $252,746

  12. Slide 12: Conclusions

    7 Lakeland Bancorp. Inc. Conclusions Opportunity to acquire a strong, high quality institution with excellent asset quality (0.2% NPAs / Assets), attractive deposit funding mix, and strong performance (0.95% ROAA) Strategic acquisition that improves franchise value through enhancing Lakeland’s stron

  13. Slide 13: Additional Information

    9 Lakeland Bancorp. Inc. Additional Information This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In conneetion with the proposed mergers, Lakeland Bancorp and Somerset Hills Bancorp intend to file

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