INVESTOR PRESENTATION 1Q 2014 THOMAS J. SHARA, PRESIDENT & CEO - PDF document

INVESTOR PRESENTATION 1Q 2014 THOMAS J. SHARA, PRESIDENT & CEO JOSEPH F. HURLEY, EVP & CFO

Statement Regarding Forward-Looking Information The information disclosed in this document includes various forward-looking statements (with respect to corporate objectives, trends, 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. Lakeland 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, customers’ acceptance of the Company’s products and services, competition and the failure to realize anticipated efficiencies and synergies of the merger of Somerset Hills Bancorp into Lakeland Bancorp. Any statements made by Lakeland that are not historical facts should be considered to be forward-looking statements. Lakeland is not obligated to update and does not undertake to update any of its forward-looking statements made herein. 1

Corporate Profile ✦ 2nd largest commercial bank headquartered in New Jersey ✦ $3.4 billion commercial bank ✦ 51 branches ✦ Market Cap - $380 million ✦ Ownership -Institutional (47%); Insider (9%) 2

New Jersey #1 in Population Density & Household Income Median Deposits in Market Market Household County Population Rank Income (Number of Branches) (% of Franchise) ($000) ($) Sussex (18) 1 $782,334 29% 150,304 $81,615 Morris (13) 11 757,759 28% 496,910 98,113 Passaic (8) 8 573,603 21% 501,290 53,322 Bergen (7) 19 329,290 12% 905,771 79,313 Somerset (1) 17 112,979 4% 326,491 100,602 Essex (2) 24 65,170 2% 786,533 50,878 Union (1) 29 32,925 1% 536,116 60,991 Warren (1) 13 18,799 1% 109,117 69,320 Total (51) $2,672,859 100% SOURCE: SNL FINANCIAL / ESRI - Data As Of June 2013 Including Somerset Hills Bancorp 3

Deposit Market Share Independent Comm ommercial Banks Banks (2) All Banks an ks and Thrifts fts in Counties of O s of Operation (1) on (1) in Counties of O s of Operation (1) on (1) Number of Deposits in Market Number of Deposits in Market Rank Institution Rank Institution Branches Market ($m) Share (%) Branches Market ($m) Share (%) 1 Valley National Bancorp (NJ) 137 $7,614 40.4% 1 139 $17,001 12.7% Wells Fargo & Co. 2 52 2,673 18.4 2 120 14,450 10.8 Lakeland Bancorp (NJ) Toronto-Dominion Bank 3 15 1,281 6.8 Center Bancorp Inc. (NJ) 3 Bank of America Corp. (NC) 147 14,127 10.5 4 Peapack-Gladstone Financial (NJ) 19 1,273 6.8 4 M&T Bank Corp 57 11,330 8.4 5 6 767 4.1 5 153 10,471 7.8 Connect One (NJ) JPMorgan Chase & Co. (NY) 6 14 593 3.1 6 153 8,752 6.5 Stewardship Financial Corp. (NJ) PNC Financial Services Group (PA) 7 Bank of New Jersey 8 533 2.8 7 Valley National Bancorp (NJ) 137 7,614 5.7 8 8 394 2.1 8 25 6,515 4.8 Sussex Bancorp (NJ) New York Community Bancorp (NY) 9 6 375 2.0 9 44 4,311 3.2 First Hope Bancorp (NJ) Investors Bancorp Inc. (MHC) (NJ) 10 Pascack Bancorp Inc. (NJ) 8 345 1.9 10 Capital One Financial Corp. (VA) 34 3,691 2.7 11 4 275 1.5 11 47 2,731 2.0 Community Bk. of Bergen County (NJ) Banco Santander SA 12 52 2,673 2.0 12 Regal Bank (NJ) 5 268 1.4 Lakeland Bancorp (NJ) 13 Mariners Bancorp (NJ) 7 224 1.2 13 HSBC 4 2,297 1.7 14 7 219 1.2 14 Columbia Bank MHC (NJ) 25 2,104 1.6 Unity Bancorp, Inc. 15 22 1,615 1.2 15 Crown Bank 9 207 1.1 Provident Financial Services (NJ) Total (1-15) 1159 $109,682 69.0 Total (1-15) 305 $17,041 90.4 Total (1-32) 341 $18,860 100.0 Total (1-146) 1,563 $134,333 100.0 SOURCE: SNL - Data As Of June 2013 (1) Counties of Operation include Bergen, Essex, Morris, Passaic, Somerset, Sussex, Union and Warren (2) Includes all commercial banks headquartered in New Jersey 4

Loan Portfolio (Dollars in Millions) $2,470 $2,505 2% 17% $244 8% 2% 13% $2,226 $2,147 $2,041 $2,014 $2,012 57% CRE ($1,432) C&I ($208m) Construction ($54m) Leases ($44m) Residential Mortgage ($430) Consumer ($337m) 2009 2010 2011 2012 2013 1Q 2014 Loans ex Somerset Hills Somerset Hills (at 5/31/13) 5

Commercial Loans as of March 31, 2014 Commercial Loan Growth ex leases & consumer loans (dollars in millions) $54 $53 Owner Occupied 36% $208 $214 Office 14% $46 Retail 14% $79 $216 Multi- Family 11% $71 $210 Industrial 9% $194 Mixed 7% $1,432 $1,390 Other 5% $1,125 $1,013 $970 Residential Constr. 3% Commercial Constr. 1% 2010 2011 2012 2013 1Q 2014 CRE C&I Construction Includes Somerset Hills at 5/31/13 6

Non-Performing Assets (Dollars in millions) As of March 31, rch 31, 2014 NPA / Assets 0.67% NPL / Loans 0.88% Allowance / Loans 1.18% Allowance / NPL 134% Charge Offs as % of Loans 0.29% $43.3 $35.3 $29.2 $28.5 $25.8 $22.7 $20.1 $18.7 $17.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2014 2013 2012 7

Credit Metrics Annualized YTD Net March 31, 2014 Charge-Offs as Outstanding NPA a % of Charge-Offs (dollars in millions) Outstanding CRE $1,486 $12.3 $1.6 0.43% C & I 208 0.3 -0.6 -1.11% Consumer 336 2.4 0.6 0.67% Residential Mortgages 431 6.9 0.2 0.14% Leasing 44 0.1 - 0.35% Foreclosures - 0.7 - - TOTAL $2,505 $22.7 $1.8 0.29% 8

Investment Securities as of March 31, 2014 $533m (16% of Total Assets) ✦ 16% 5% Primarily for liquidity purposes 15% ✦ 1% Short agencies, MBS, Munis ✦ 2.31% Yield ✦ 63% 5.2 year Weighted Average Life ✦ 4.3 year Effective Duration ✦ MBS/CMO ($337m) Corporate Debt ($5m) Munis ($81m) Agencies ($86m) Equities, FHLB, CRA ($24m) 9

Deposits Core Deposits 89% of Total Deposits (Dollars in Millions) 16% Demand Deposits $601 6% $81 4% 36% 23% $630 14% $520 $498 $450 $383 $323 DDA ($630m) Savings ($389m) 2009 2010 2011 2012 2013 1Q 2014 NOW ($994m) MMDA ($434m) Time < $100k ($177m) % of Time > $100k ($113m) 15% 17% 20% 21% 22% 23% Deposits Total ($2,737m) 10

Overview of Somerset Hills Bancorp Valuation and Deal Overview Summary Financial Information ✦ Purchase Price: $65.5m as of December 31, 2012 ✦ Assets: $369m ✦ Goodwill / CDI: $23.3m / $2.7m ✦ Loans: $239m ✦ Deal Value (1) / TBV: 154% ✦ Deposits: $320m ✦ Deal Value (1) / 2012 EPS: 19x ✦ Equity: $42m ✦ One-Time Expenses: $2.8m est., pre-tax ✦ 2012 Net Income: $3.4m ✦ Tang. BV / Share: $7.79 ✦ Anticipated Cost Savings: $2.8m est. (31%) ✦ 2012 ROAA: 0.95% ✦ EPS Impact (2) : Accretive to 2014 EPS ✦ 2012 ROAE: 8.15% ✦ TBV Impact (2) : ~2% dilutive ✦ NPAs / Assets: 0.2% Immediately accretive; ✦ TCE Ratio Impact (2)(3) : est. 25 bps increase Source: Company Filings at deal announcement and SNL Financial. (1) Based upon current deal value of $12.00 per share at 20-day average LBAI closing price of $10.032 as of 1/25/13 close. (2) Based upon current estimates. (3) Defined as tangible common equity as a percentage of tangible assets. 11

Transaction Rationale ✦ Profitable company with strong asset quality ✦ Extends markets in Morris, Somerset and Union counties ✦ Similar cultures and product offerings ✦ Expansion of mortgage banking and wealth management ✦ Expanded products/services to existing SOMH customers ✦ Regulatory capital, TCE ratio and EPS accretive 12

Branch Locations 13

1Q Highlights ✦ Commercial Real Estate Loans - 3% linked quarter growth ✦ Demand Deposits - 5% linked quarter growth ✦ Net Income $7.2m up 40% vs. $5.1m 1Q 2013 (pre-SOMH) ✦ EPS up 5% ($0.20 vs. $0.19 1Q 2013 ex merger costs) ✦ NIM steady at 3.72% from 3.71% 1Q 2013 ✦ Provision $1.5m compared to $3.2m in 1Q 2013 14

Net Interest Margin 3.72% 3.71% 3.70% 3.68% 3.68% 1Q ’13 2Q ’13 3Q ’13 4Q ’13 1Q ’14 Asset Yield 4.11% 4.04% 4.00% 3.99% 3.99% IB Liability Cost 0.51% 0.47% 0.42% 0.38% 0.36% Spread 3.60% 3.58% 3.58% 3.61% 3.63% NIM 3.71% 3.68% 3.68% 3.70% 3.72% 15

Operating Expenses As % of Average Assets 3.17% 3.12% 3.12% 2.42% 2.41% 2.38% 2.37% 1Q ‘2014 2012 2013 2011 $3B - $10B Banks Lakeland 16