Filer: Lakeland Bancorp, Inc.
                                                  Pursuant to Rule 425 under the
                                               Securities Act of 1933 and deemed
                                            filed pursuant to Rule 14a-12 of the
                                                 Securities Exchange Act of 1934
                                         Subject Company: Lakeland Bancorp, Inc.
                                                  Commission File No.: 000-17820


        Monday, October 27, 2003                          Roger Bosma
                                                          President & CEO

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


NEWTON FINANCIAL AGREES TO MERGE WITH LAKELAND BANCORP

OAK RIDGE, NJ - John W. Fredericks, chairman of Lakeland Bancorp ("Lakeland")
(Nasdaq: LBAI) and its subsidiary, Lakeland Bank, Oak Ridge, NJ, and Thomas
Bain, chairman of Newton Financial Corporation ("Newton") (OTCBB: NWFC) and its
subsidiary, Newton Trust Company, Newton, NJ, announced the execution of a
definitive agreement providing for Newton Financial to be merged into Lakeland
Bancorp. Newton Trust will operate as an independent bank for a two-year period
following closing and then it will be merged into Lakeland Bank.

Newton shareholders will have the right to elect to receive Lakeland common
shares at the rate of 4.5 shares of Lakeland for each share of Newton or $72.08
cash for each of their shares. The agreement provides that up to 25% of the
total transaction is to be paid in cash. Lakeland values this transaction at
approximately $99 million based on 1.36 million shares of Newton common stock
and 23,600 stock options outstanding. The transaction price is approximately 2.9
times Newton's book value.

The merger agreement has been approved by the Boards of Directors of both
institutions and is subject to approval by the shareholders of both institutions
and regulatory authorities. The transaction is expected to close by the second
quarter of 2004.

"Lakeland is one of New Jersey's premier community banks with the same
dedication to old fashioned personal banking we have," said Bain. "Their
dedication to the employees, customers, and residents of Sussex County is well
established, and we are pleased to join forces with Lakeland within our local
community."

"The Lakeland family is privileged to welcome Newton Trust, a community bank of
the highest quality in every respect. This transaction will enhance our ability
to provide the best local



competitive banking services available to the people of Sussex County," said
Fredericks. "In this period of mergers with large impersonal banks based outside
our area, it is gratifying that Sussex County residents will continue to receive
local personal services provided by their neighbors who best understand their
needs and concerns," he said.

As of September 30, 2003, Newton Financial had total assets of $320 million,
total loans of $171 million, total deposits of $269 million, shareholders'
equity of $34 million and nine months Net Income of $2.3 million (unaudited).
Newton Trust operates nine (9) branches in Sussex and Warren counties. The
combined institution will have 47 branches across Northern New Jersey and over
$1.8 billion in total assets.

Roger Bosma, President and CEO of Lakeland said, "Lakeland brings a range of
additional banking services to Newton customers. This includes enhanced ATM
services, same day loan approvals and free checking accounts all backed by the
latest technology."

Lakeland Bancorp, the holding company for Lakeland Bank, has a current asset
base of $1.5 billion and thirty-eight offices spanning five northwestern New
Jersey counties: Bergen, Essex, Morris, Passaic, and Sussex. Lakeland Bank,
headquartered in Oak Ridge, New Jersey, offers an extensive array of consumer
and commercial products and services, including online banking, localized
commercial lending teams, equipment leasing, and 24-hour or less turnaround time
on consumer loan applications.


NON-HISTORICAL INFORMATION DISCLOSED IN THIS PRESS RELEASE CONSTITUTES
FORWARD-LOOKING STATEMENTS THAT ARE MADE IN RELIANCE UPON THE SAFE HARBOR
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. LAKELAND
CAUTIONS THAT THESE FORWARD-LOOKING STATEMENTS ARE NECESSARILY SPECULATIVE AND
SPEAK ONLY AS OF THE DATE MADE, AND ARE SUBJECT TO NUMEROUS RISKS AND
UNCERTAINTIES, ALL OF WHICH MAY CHANGE OVER TIME. ACTUAL RESULTS COULD DIFFER
MATERIALLY FROM SUCH FORWARD-LOOKING STATEMENTS AS A RESULT OF NUMEROUS FACTORS,
INCLUDING PRICING PRESSURES ON LOAN AND DEPOSIT PRODUCTS; COMPETITION; CHANGES
IN ECONOMIC CONDITIONS NATIONALLY, REGIONALLY AND IN LAKELAND'S AND NEWTON'S
MARKETS; CHANGES IN LEVELS OF MARKET INTEREST RATES; CREDIT RISKS OF LENDING
ACTIVITIES AND COMPETITIVE FACTORS; WHETHER OR NOT THE COMPANY ULTIMATELY
RECEIVES PAYMENT OF ALL AMOUNTS DUE FROM A LEASE PORTFOLIO AS DESCRIBED IN ITS
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2002; CHANGES IN THE CONDITIONS OF THE
CAPITAL MARKETS IN GENERAL AND IN THE CAPITAL MARKETS FOR FINANCIAL INSTITUTIONS
IN PARTICULAR; THE ABILITY OF LAKELAND BANK TO INTEGRATE NEWTON INTO THE
COMPANY'S OVERALL BUSINESS AND PLANS; AND THE EXTENT AND TIMING OF LEGISLATIVE
AND REGULATORY ACTIONS AND REFORMS. THE COMPANY IS NOT OBLIGATED TO UPDATE AND
DOES NOT UNDERTAKE TO UPDATE ANY OF ITS FORWARD-LOOKING STATEMENTS MADE HEREIN.


LAKELAND BANCORP PLANS TO FILE A REGISTRATION STATEMENT ON SEC FORM S-4 IN
CONNECTION WITH THE MERGER AND THE PARTIES EXPECT TO MAIL A PROXY
STATEMENT/PROSPECTUS TO THEIR SHAREHOLDERS CONTAINING INFORMATION ABOUT THE
MERGER. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION
STATEMENT AND THE PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN THEY ARE AVAILABLE.
THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS WILL CONTAIN
IMPORTANT INFORMATION ABOUT LAKELAND, NEWTON, THE MERGER AND RELATED MATTERS.
INVESTORS AND SECURITY HOLDERS WILL BE ABLE TO OBTAIN FREE COPIES OF THESE
DOCUMENTS THROUGH THE WEB SITE MAINTAINED BY THE U.S. SECURITIES AND EXCHANGE
COMMISSION AT HTTP//WWW.SEC.GOV. IN ADDITION TO THE REGISTRATION STATEMENT AND
THE PROXY STATEMENT/PROSPECTUS, LAKELAND FILES ANNUAL, QUARTERLY AND SPECIAL
REPORTS, PROXY STATEMENTS AND OTHER INFORMATION WITH THE SECURITIES AND EXCHANGE
COMMISSION. YOU MAY READ AND COPY ANY REPORTS, STATEMENTS AND OTHER INFORMATION
FILED BY LAKELAND AT THE SEC PUBLIC REFERENCE ROOMS AT 450 FIFTH STREET, N.W.,
WASHINGTON, D.C. 20549 OR AT THE COMMISSION'S OTHER PUBLIC REFERENCE ROOMS IN
NEW YORK, NEW YORK AND CHICAGO, ILLINOIS. PLEASE CALL THE COMMISSION AT
1-800-SEC-0330 FOR FURTHER INFORMATION ON PUBLIC REFERENCE ROOMS. LAKELAND'S
FILINGS WITH THE COMMISSION ALSO ARE AVAILABLE TO THE PUBLIC FROM COMMERCIAL
DOCUMENT-RETRIEVAL SERVICES AND AT THE WEB SITE MAINTAINED BY THE COMMISSION AT
HTTP//WWW.SEC.GOV. NEWTON, ITS DIRECTORS, EXECUTIVE OFFICERS AND CERTAIN MEMBERS
OF MANAGEMENT AND EMPLOYEES MAY BE SOLICITING PROXIES FROM NEWTON'S STOCKHOLDERS
IN FAVOR OF THE ADOPTION OF THE MERGER AGREEMENT. A DESCRIPTION OF ANY INTERESTS
THAT NEWTON'S DIRECTORS AND EXECUTIVE OFFICERS HAVE IN THE MERGER WILL BE
AVAILABLE IN THE PROXY STATEMENT/PROSPECTUS. THIS PRESS RELEASE DOES NOT
CONSTITUTE AN OFFER OF ANY SECURITIES FOR SALE.

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