LBAI - Lakeland Bancorp: Above-Normal Credit Costs Margin Compression To Pressurize Earnings
Earnings of Lakeland Bancorp, Inc (LBAI) decreased to $0.24 per share in the first quarter, down 34% from the last quarter of 2019. A surge in provisions for credit losses amid the COVID-19 pandemic was the chief contributor to the earnings decline. Earnings will likely recover from the first quarter in the year ahead because of a sequential decline in provision expense. However, the future earnings will likely decline on a year-over-year basis because the provision expense will remain above-normal. Additionally, the net interest margin will slightly decrease following the interest rate cuts