EXHIBIT 99.1

Lakeland Bancorp Reports 19% Increase in Second Quarter Earnings

OAK RIDGE, N.J., July 14, 2011 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (Nasdaq:LBAI) reported Net Income Available to Common Shareholders in the second quarter of 2011 of $4.6 million or $0.18 per diluted share compared to $3.8 million, or $0.15 per diluted share for the same period last year. Net Income Available to Common Shareholders for the first six months of 2011 was $8.0 million or $0.31 per diluted share, as compared to $7.5 million, or $0.30 per diluted share for the same period last year.

The Company declared a quarterly cash dividend of $0.06 per common share, payable on August 15, 2011 to holders of record as of the close of business on July 29, 2011. The Company also declared a dividend of 5% for the quarterly dividend payment due August 15, 2011 for the preferred stock issued to the U.S. Department of the Treasury under the Capital Purchase Program ("CPP").

Thomas J. Shara, Lakeland Bancorp's President and CEO said, "Our earnings growth in the second quarter of 2011 has been driven by a strong Net Interest Margin which has consistently exceeded 3.90%, a 2% year-over-year reduction in noninterest expenses, lower dividends on Preferred Stock reflecting a total of $40.0 million in repayments to the U.S. Department of the Treasury to repurchase Preferred Stock under the CPP, and a lower effective tax rate."

Earnings

Net Interest Income

Net interest income for the second quarter of 2011 was $24.4 million, as compared to $24.9 million for the same period in 2010. Net Interest Margin for the second quarter of 2011 was 3.90%, equivalent to the first quarter of 2011, and compared to 3.96% reported in the second quarter of 2010. The yield on interest-earning assets declined to 4.71% in the second quarter of 2011 compared to 5.01% for the same period last year. The cost of interest-bearing liabilities decreased from 1.25% in the second quarter of 2010 to 0.99% in the second quarter of 2011. The decrease in the cost of funds was due to the continued management of deposit rates this quarter.

Year-to-date, net interest income at $49.0 million compared to the $49.5 million reported for the first six months of 2010. Net Interest Margin for the first six months of 2011 at 3.90% compared to 3.98% for the same period last year. The Company's yield on earning assets decreased from 5.07% for the first six months of 2010, to 4.72% for the same period this year. The Company's cost of interest bearing liabilities decreased from 1.30% for the first six months of 2010 to 1.00% for the first six months of this year.

Noninterest Income

Noninterest income, exclusive of gains on sales of investment securities, totaled $4.3 million for the second quarter of 2011, as compared to $4.6 million for the same period last year. In the second quarter of 2011, the Company recorded $444,000 on gains on sales of investment securities, as compared to no gains for the same period last year. Service charges on deposit accounts totaling $2.6 million increased by 3%, while commissions and fees at $1.0 million increased by $207,000, or 25%, primarily due to a $125,000, or 52%, increase in investment commission income. Gains on leasing related assets at $230,000 decreased by $325,000, reflecting a smaller portfolio, while other income at $66,000 was $214,000 lower than the same period last year, as the Company recorded a gain of $181,000 on the sale of a branch office building in the second quarter of 2010.

Noninterest income, exclusive of gains on sales of investment securities, totaled $8.5 million for the first six months of 2011 compared to $8.7 million for the same period last year. Gains on investment securities totaled $444,000 in 2011 as compared to $1,000 in 2010. Service charges on deposit accounts at $5.0 million were up 2%, while commissions and fees at $1.9 million increased by 9%, primarily due to increased investment commission income. Gains on leasing related assets at $693,000 decreased by $166,000 in 2011, while other income at $168,000 decreased by $197,000 due to the aforementioned gain on the sale of the branch office in 2010.

Noninterest Expense  

Noninterest expense for the second quarter of 2011 was $16.7 million, as compared to $17.1 million for the same period last year, a decrease of 2%. Salary and benefit expense at $9.2 million increased by 2%, while occupancy, furniture and equipment expenses at $2.8 million was equivalent to last year's total. FDIC insurance expense at $595,000 decreased by $369,000, or 38%, primarily as a result of changes made by the FDIC in the method of calculating assessment rates, while collection expense at $60,000 decreased by $99,000, due to a reduction in leasing related collection costs. The efficiency ratio for the second quarter of 2011 was 56.2%.

For the first six months of 2011, noninterest expense was $33.8 million, compared to $33.9 million in 2010. Salary and benefit costs at $18.2 million increased 2%, while occupancy, furniture and equipment expenses at $5.9 million were equivalent to last year's total. FDIC insurance expense at $1.5 million decreased by $355,000, or 19%, resulting from the aforementioned change in FDIC assessment rate methodology. Other real estate owned and other repossessed asset expense at $472,000 increased by $237,000, while other expenses at $4.3 million were down 3% from last year's total.

Financial Condition

At June 30, 2011, total assets were $2.74 billion, a decrease of 2% from December 31, 2010. Total loans were $1.98 billion, a decrease of $28.6 million from $2.01 billion at year-end 2010, primarily due to leasing loans, which have decreased by $28.3 million this year, including a $16.3 million sale in the first quarter of 2011. Total deposits were $2.18 billion, a decrease of $13.5 million from December 31, 2010. Noninterest bearing demand deposits at $409.8 million have increased by $25.9 million or 7% from year-end 2010, while savings and interest-bearing transaction accounts at $1.37 billion and time deposits at $402.4 million, have decreased by $29.0 million, and $10.5 million, respectively.

Asset Quality

At June 30, 2011, non-performing assets totaled $56.5 million (2.06% of total assets) compared to $50.4 million (1.83% of total assets) at March 31, 2011. The Allowance for Loan and Lease Losses totaled $28.3 million at June 30, 2011 and represented 1.42% of total loans, as compared to 1.36% at year-end 2010. In the second quarter of 2011, the Company had net charge offs totaling $5.3 million. For the first six months of 2011, the Company had net charge-offs of $9.4 million, as compared to $7.7 million for the same period last year.

Capital

At June 30, 2011, stockholders' equity was $250.6 million and book value per common share was $9.11. As of June 30, 2011, the Company's leverage ratio was 8.09%. Tier I and total risk based capital ratios were 10.95% and 13.26%, respectively. These regulatory capital ratios exceed those necessary to be considered a well-capitalized institution under Federal guidelines.  

Forward-Looking Statements

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, passage by the U.S. Congress of legislation which unilaterally amends the terms of the U.S. Department of the Treasury's preferred stock investment in the Company, 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 and competition. 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.

EXPLANATION OF NON-GAAP FINANCIAL MEASURES

Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

The Company also uses an efficiency ratio that is a non-GAAP financial measure. The ratio that the Company uses excludes amortization of core deposit intangibles, expenses on other real estate owned and other repossessed assets and, where applicable, long-term debt prepayment fees. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes securities gains and losses, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a better comparison of period to period operating performance.

Lakeland Bancorp, the holding company for Lakeland Bank, has a current asset base of $2.7 billion and forty-seven (47) offices spanning six northern New Jersey counties: Bergen, Essex, Morris, Passaic, Sussex and Warren. Lakeland Bank, headquartered at 250 Oak Ridge Road, Oak Ridge, New Jersey offers an extensive array of consumer and commercial products and services, including online banking, localized commercial lending teams, and 24-hour or less turnaround time on consumer loan applications. For more information about their full line of products and services, visit their website at www.lakelandbank.com.

CONTACT: Thomas J. Shara
         President & CEO

         Joseph F. Hurley
         EVP & CFO
         973-697-2000