Lakeland Bancorp's (LBAI) earnings are projected to increase by approximately 5% next year partly due to modest loan growth. Absence of merger-related expenses next year is also likely to boost the bottom line. On the other hand, compression in net interest margin following the three Fed rate cuts is expected to constrain earnings.
Loan Growth to be Modest Next Year
LBAI operates mainly in New Jersey with some presence in New York; consequently, the economy of New Jersey is a major driver of the company's balance sheet growth. According to the Federal Reserve