EXHIBIT 99.1

Lakeland Bancorp Reports Record Full Year Results

OAK RIDGE, N.J., Jan. 30, 2014 (GLOBE NEWSWIRE) -- Lakeland Bancorp, Inc. (Nasdaq:LBAI) reported the following results:

• Net Income Available to Common Shareholders in the fourth quarter of 2013 was $7.3 million, up 26% from $5.8 million for the fourth quarter of 2012. Earnings per diluted share in the fourth quarter of 2013 was $0.20 per share which equaled the diluted EPS for the same period in 2012. Return on Average Assets for the fourth quarter of 2013 was 0.88%, the Return on Average Common Equity was 8.30%, and the Return on Tangible Common Equity was 12.23%.
   
• Net Income Available to Common Shareholders for the year ended December 31, 2013 was $25.0 million, or $0.75 per diluted share, an 18% increase compared to $21.1 million, or $0.76 per diluted share, for 2012. Excluding pre-tax merger related expenses of $2.8 million, Net Income Available to Common Shareholders was $27.0 million, or $0.81 per diluted share, in 2013.  Return on Average Assets for 2013 was 0.80%, the Return on Average Common Equity was 7.78%, and the Return on Tangible Common Equity was 11.42%.
   
• Asset quality continued to improve in the fourth quarter of 2013, as non-performing assets, which totaled $17.5 million at December 31, 2013, were 6% lower than $18.7 million at September 30, 2013, and 39% lower than $28.5 million reported at year-end 2012. The Allowance for Loan and Lease Losses at year end 2013 was 176% of non-accruing loans, compared to 103% at year-end 2012.
   
• Net Interest Margin ("NIM") improved to 3.70% for the fourth quarter of 2013 compared to 3.68% in the third quarter of 2013, and 3.67% in the fourth quarter of 2012. The yield on interest-earning assets at 3.99% in the fourth quarter of 2013 was one basis point lower than 4.00% in the third quarter of 2013, while the cost of interest-bearing liabilities at 0.38% decreased by four basis points from 0.42% in the third quarter of 2013, primarily as a result of reduced deposit costs.
   
• On January 28, 2014, the Company declared a quarterly cash dividend of $0.075 per common share, payable on February 18, 2014 to holders of record as of the close of business on February 10, 2014. 

Thomas J. Shara, Lakeland Bancorp's President and CEO said, "2013 was another solid year for the Company. Earnings and capital ended the year at record levels, asset quality continued to improve, and the Net Interest Margin was stable. In the fourth quarter of the year, the cash dividend was increased, while earlier in 2013, we successfully completed the acquisition and merger of Somerset Hills Bancorp, expanding our footprint in the New Jersey markets."

Somerset Hills Bancorp Acquisition

As previously noted in the second quarter earnings release, the Company acquired Somerset Hills Bancorp ("Somerset Hills") on May 31, 2013. At the time of acquisition, Somerset Hills had $355.9 million in total assets, $10.4 million in investment securities, $246.4 million in loans (including $2.5 million in mortgages held for sale), and $311.8 million in deposits ($80.8 million in non-interest bearing demand deposits and $231.0 million in interest-bearing deposits) at fair value. Goodwill amounted to $22.9 million and Core Deposit Intangibles were $2.7 million. Merger related costs totaled $2.8 million in 2013.

The Company's financial statements reflect the impact of the merger from the date of acquisition, May 31, 2013, which should be considered when comparing comparable periods for balance sheet totals and net income amounts for the fourth quarter of 2013 and year-ended December 31, 2013.

Earnings

Net Interest Income

Net interest income for the fourth quarter of 2013 was $28.0 million as compared to $24.2 million for the same period in 2012, an increase of $3.8 million, or 16%. This increase was due to the improved NIM, as well as a 14% increase in interest-earning assets, resulting from the Somerset Hills' merger, as well as organic growth. NIM for the fourth quarter of 2013 was 3.70%, compared to 3.68% in the third quarter of 2013, and 3.67% reported in the fourth quarter of 2012. The yield on interest-earning assets declined 15 basis points to 3.99% in the fourth quarter of 2013 compared to 4.14% for the same period of 2012, while the cost of interest-bearing liabilities decreased 21 basis points from 0.59% in the fourth quarter of 2012 to 0.38% in the fourth quarter of 2013, reflecting the Company's management of deposit and borrowing costs.

For the year-ended 2013, net interest income totaled $104.5 million compared to $95.5 million reported for 2012, an increase of $9.0 million, or 9%. NIM for 2013 at 3.69% was one basis point lower than 3.70% for the year-ended 2012. The Company's yield on earning assets decreased 26 basis points from 4.29% for the year ended December 31, 2012, to 4.03% for 2013. The Company's cost of interest bearing liabilities decreased 30 basis points from 0.74% for 2012 to 0.44% in 2013.

Noninterest Income

Noninterest income, exclusive of gains on sales of investment securities, totaled $5.1 million for the fourth quarter of 2013, as compared to $4.7 million for the fourth quarter of 2012. Gains on investment securities totaled $333,000 for the fourth quarter of 2013, as the Company recorded a gain on the sale of an equity security. In the fourth quarter of 2012, the Company recorded $776,000 in gains on investment securities. Service charges on deposit accounts totaling $2.8 million for the fourth quarter of 2013 were 8% higher than the total reported for the same period in 2012, while commissions and fees of $1.1 million were equivalent to the total reported in the fourth quarter of 2012. Other income of $890,000 for the fourth quarter of 2013 increased by $218,000 compared to the fourth quarter of 2012. In the fourth quarter of 2013, the Company recorded a $640,000 gain on the sale of an OREO property, while in the fourth quarter of 2012 the Company recorded $275,000 in net gains on the sales of properties and $142,000 in gains on swap transactions.

Noninterest income, exclusive of gains on sales of investment securities and gain on extinguishment of debt, totaled $18.9 million for the year ended December 31, 2013 compared to $17.9 million for 2012. Gains on investment securities totaled $839,000 in 2013 as compared to $1.0 million in 2012. Service charges on deposit accounts of $10.8 million and commissions and fees of $4.6 million increased by 3%, and 2%, respectively, from the prior year period. Other income of $2.1 million was $576,000 higher in 2013, partially due to the aforementioned net gain on the sale of the OREO property.

Noninterest Expense

Noninterest expense for the fourth quarter of 2013, excluding long-term debt prepayment fees, was $20.0 million, as compared to $17.2 million for the fourth quarter of 2012. The Company recorded $683,000 in long-term debt prepayment fees in the fourth quarter of 2013 as $6.0 million in long-term debt yielding 3.99% was repaid. In the fourth quarter of 2012, there were $782,000 in long-term debt prepayment fees. Salaries and benefit expenses totaled $10.8 million for the quarter-ended December 31, 2013, increasing by $758,000 in the fourth quarter of 2013, primarily due to increased salaries and benefit costs as a result of increased staffing levels due to the Somerset Hills acquisition. Occupancy, furniture and equipment expense of $3.8 million increased by $560,000, or 17%, primarily due to increased costs at the six new branch locations acquired in the Somerset Hills acquisition, as well as increases in service agreements and depreciation costs resulting from the updating of Lakeland Bank's computer systems. Other expenses of $3.6 million increased by $1.4 million. Included in this increase was an additional $600,000 in professional fees relating to costs associated with the resignation of the Company's external accountants, which was previously disclosed in Form 8-K's filed with the SEC on December 13, 2013 and December 30, 2013. The Company's efficiency ratio for the fourth quarter of 2013 was 59.4% compared to 59.5% for the same period of 2012.

Noninterest expense for the full year ended December 31, 2013, exclusive of $2.8 million in merger-related expenses and $1.2 million in long-term debt prepayment fees were $74.7 million, compared to $66.9 million for 2012, exclusive of $782,000 in long-term debt prepayment fees, an increase of $7.8 million. Salary and benefit costs of $41.9 million increased 9%, reflecting the increased staffing levels due to the Somerset Hills acquisition, while occupancy, furniture and equipment expenses of $14.3 million increased by $2.4 million, primarily for the same reasons outlined in the three month analysis, as well as expenses incurred in 2013 resulting from the opening of a new Training and Operations Center in mid-2012. Other expenses of $11.6 million increased by $2.1 million, or 22%. Within this category, the aforementioned increase in professional fees represented $600,000 of this increase, while the remaining increase of $1.5 million reflected additional costs in various expense categories resulting from the growth of Lakeland Bank in 2013.

Financial Condition

At December 31, 2013, total assets were $3.32 billion, an increase of $399.1 million from December 31, 2012, or 14%. This includes Somerset Hills' assets of $355.9 million at the time of acquisition. Total loans were $2.47 billion, an increase of $323.1 million or 15% from $2.15 billion at year-end 2012. Somerset Hills' loans, including mortgages held for sale, totaled $246.4 million at the time of acquisition. Commercial loans, excluding loans acquired in the Somerset Hills merger, increased by $102.6 million, or 7%, in 2013. In the fourth quarter of 2013, total loans increased by $41.5 million, primarily in the commercial real estate category. Total deposits were $2.71 billion, an increase of $338.2 million, or 14%, from December 31, 2012. Somerset Hills' deposits totaled $311.8 million at the time of acquisition.

Asset Quality

In the fourth quarter of 2013, asset quality continued to improve. At December 31, 2013, non-performing assets totaled $17.5 million (0.53% of total assets) compared to $18.7 million (0.57% of total assets) at September 30, 2013 and $28.5 million (0.98% of total assets) at December 31, 2012. In the fourth quarter of 2013, the provision for loan and lease losses totaled $1.7 million, a decrease of $1.4 million, or 46%, from $3.1 million reported in the fourth quarter of 2012. For the year-ended December 31, 2013, the provision for loan and lease losses of $9.3 million was $5.6 million, or 37%, lower than last year's total. The Allowance for Loan and Lease Losses totaled $29.8 million at December 31, 2013 and represented 1.21% of total loans. In the fourth quarter of 2013, the Company had net charge offs totaling $1.6 million. In 2013, the Company had net charge-offs of $8.5 million, or 0.36% of average loans, as compared to $14.4 million, or 0.69% of average loans in 2012.

Capital

At December 31, 2013, stockholders' equity was $351.4 million and book value per common share was $9.74. As of December 31, 2013, the Company's leverage ratio was 8.90%. Tier I and total risk based capital ratios were 11.73% and 12.98%, 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, 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 between Lakeland Bancorp, Inc. and Somerset Hills 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.

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, provision for unfunded lending commitments and, where applicable, long-term debt prepayment fees and merger related expenses. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes securities gains and losses and gain on debt extinguishment, 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.

About Lakeland Bank

Lakeland Bancorp, the holding company for Lakeland Bank, has $3.3 billion in total assets with 52 offices spanning eight northern New Jersey counties: Bergen, Essex, Morris, Passaic, Somerset, Sussex, Union and Warren. Lakeland Bank is the second largest commercial bank headquartered in the state and offers an extensive array of consumer and commercial products and services, including online and mobile banking, localized commercial lending teams, and 24-hour or less turnaround time on consumer loan applications. For more information about the full line of products and services, visit LakelandBank.com.

CONTACT: Thomas J. Shara
         President & CEO

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