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Liberty Bell Bank reports increases in Assets (up 19%), Loans (up 24%) and Deposits (up 15%)

^{Published on 2009-02-13 12:41:12, Last Modified on 2009-02-13 12:43:24 - Market Wire}
 

MARLTON, N.J.--([ BUSINESS WIRE ])--Liberty Bell Bank (OTC:LBBB) today announced that the bank's assets had grown 19% during 2008 to $157.5 million at December 31, 2008 from $132.5 million at year-end 2007 that included a 24% increase in total loans to $125.5 million at December 31, 2008, up $24.2 million from year-end 2007 total loans of $101.2 million. The bank's deposits grew 15% during 2008 to $127.9 million at December 31, 2008, up $6.9 million from $111 million at year-end 2007.

Liberty Bell Bank reported a net loss for the year ended December 31, 2008 of $315,239 as compared to net income of $35,358 for the year 2007. President and CEO Kevin Kutcher noted, "the decrease in net income from the prior year is largely attributable to increased loan loss provision expense, increased FDIC insurance premium expense and the continuing impact caused by the Fed's aggressive rate strategy on the Bank's net interest margin. The prime rate has fallen from 8.25% in September 2007 to 3.25% in the course of ten rate reductions, with the last change effective in December 2008. The Bank's average net interest margin for the year 2008 was 2.97% as compared to 3.19% for the prior year."

The Bank's loan loss provision for 2008 was $516,000 as compared to $75,000 for the year 2007. Approximately half of the increased provision expense is attributed to the growth in the loan portfolio and related appropriate increases in reserve for possible loan losses. The remaining increase in the provision expense and the reserve for possible loan losses largely reflects our overall assessment of general current economic conditions and not due to any specific material loan concerns.

Non interest expense increased $638,356 or 18% from the year ended 2007. Compensation and benefits expense increased $260,737 over 2007 accounting for 41% of the increase in total non-interest expense and is attributable largely to staff increases commensurate with the Bank's growth. Professional services expenses, inclusive of accounting and auditing fees and legal expenses, increased $125,422. Other operating expenses increased $211,960, $90,000 of which is increased FDIC insurance expenses due to increased assessment rates and deposit growth.

"We remain cautiously optimistic about the coming year," said Kutcher who added, "our net interest margin has recovered reasonably well, as we have adjusted to the Fed induced market rate changes and, fortunately, like most community banks we've avoided the material loan difficulties associated with the larger money center banks. We're most excited about the February 2009 opening of our fourth office to be located in Mount Laurel New Jersey. We're growing, and we remain optimistic about community banking in general and about Liberty Bell Bank in particular."

Liberty Bell Bank is a New Jersey chartered commercial bank that commenced operations in August 2003 and maintains offices in Cherry Hill, Moorestown, and Evesham Township, New Jersey. We caution the reader to be aware of the speculative nature of any "forward-looking statements" contained in this press release. Statements that are not historical in nature, including the words "anticipate," "estimate," "should," "expect," "believe," "intend," "project," "look forward" and similar expressions, are intended to identify forward-looking statements. Although these statements reflect management of the Bank's good faith belief based on current expectations, estimates and projections about (among other things) the banking industry and the markets in which the Bank operates, they are not guarantees of future performance.

Whether actual results will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties, including but not limited to general economic, market, or business conditions, changes in interest rates, deposit flow, and the cost of funds, and demand for loan products and financial services; changes in the Bank's competitive position; the inability to control and predict certain expenses; changes in the quality or composition of loan and investment portfolios; the Bank's ability to manage growth; the opportunities that may be presented to, and pursued by, the Bank; competitive actions by other entities; stockholder actions beyond management's control; changes in laws or regulations; changes in the policies of federal or state regulators and agencies; and other circumstances, many of which are beyond the Bank's control. Consequently, all of the forward-looking statements made in this release are qualified by these cautionary statements and there can be no assurance that the actual results anticipated by the Bank will be realized, or that they will have the expected consequences to, or effects on, the Bank or the Bank's business or operations. Except as required by applicable law, the Bank does not intend to publish updates or revisions of any forward-looking statements it makes to reflect new information, future events or otherwise.