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Liberty Bell Bank Reports Continuing Profit and Deposit Growth

^{Published on 2011-04-25 16:05:58 - Market Wire}
 

MARLTON, N.J.--([ BUSINESS WIRE ])--Liberty Bell Bank (OTC: LBBB) today announced earnings of $36 thousand for the first quarter 2011 and growth in assets of $4.7 million from year-end 2010 to $178.4 million at March 31, 2011. Earnings decreased $30 thousand or 45% as compared to $66 thousand for the first quarter 2010. This decrease was due to the fact that there were no securities gains or losses realized in the first quarter of 2011 as compared to a $72 thousand securities gain realized in the first quarter of 2010.

"Our problem loans remain limited to a relatively small minority of a dozen relationships, all adequately secured and appropriately reserved for in our loan loss reserves and, for the most part, are the same problem loans since mid 2010"

Highlights for the first quarter of 2011 include:

• Net interest income, our core revenue, for the first quarter 2011 increased by $122 thousand or 9% from the first quarter 2010. Net interest income has been trending upward every quarter since 2008.
• Net interest margin increased to 3.77% for the first quarter 2011 as compared to 3.56% for the first quarter 2010.
• Total non-interest income of $94 thousand for the first quarter 2011 increased $21 thousand or 29% from the first quarter of 2010, exclusive of a $72 thousand securities gain realized in 2010, largely due to increased service fee revenue from deposit accounts. There were no securities gains realized in the first quarter 2011.
• Non-interest expense of $1.4 million increased $101 thousand or 8% over the same period last year due principally to FDIC insurance premium expense that increased $38 thousand, increased other operating expenses (up $30 thousand), increased legal/loan related expenses (up $15 thousand) and greater marketing and business development expense (up $12 thousand),
• Non-accrual loans at March 31, 2011 were $10.8 million as compared to $9.4 million at December 31, 2010, largely due to the addition of one loan relationship previously identified among our troubled loan relationships, which relationship remains adequately addressed in our loan loss reserve adequacy analysis.
• Total deposits increased $4 million or 3% as compared to December 31, 2010.

aFollowing a fully profitable 2010, the positive results of this first quarter of 2011 continues a profitability trend that began in the fourth quarter 2009,a said President and CEO Kevin Kutcher, adding, aOur core revenue and earnings continue to trend favorably and profitably despite the impact of the economy that increased our non-accrual loan levels. Net interest income that we view as our core revenue has increased every quarter since 2008 notwithstanding the effects of the non-accrual loans borne of the current economy. Our margins have steadily improved, and with a recovery that seems to be taking hold, our non-accrual loans should subside, adding further earnings improvement as the economy strengthens.a

aOur problem loans remain limited to a relatively small minority of a dozen relationships, all adequately secured and appropriately reserved for in our loan loss reserves and, for the most part, are the same problem loans since mid 2010,a noted SVP and senior loan officer John Herring. He added, aWith current appraisals and re-appraisals, our troubled loan relationships reflect comparatively little impairment in our comprehensive quarterly loan loss reserve adequacy analysis, and we remain generally well collateralized as we continue to manage through the protracted legal process of foreclosure. We are beginning to see sufficient progress that we can now reasonably project and anticipate resolution to several of these problem loans during 2011. This, coupled with a growing pipeline of new lending opportunities we are enjoying as the recession subsides, furthers our optimism.a

All disclosure contained in this press release is qualified in its entirety by the more complete information contained in the Banka™s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, which will be filed with the FDIC on or before May 15, 2011. The Bank will furnish a copy of the 10-Q to any person requesting same upon written request made to Mr. Dennis Costa, Vice President/Finance, at the Banka™s offices located at 145 North Maple Ave., Marlton, New Jersey 08053.

Liberty Bell Bank is a New Jersey chartered commercial bank that maintains offices in Cherry Hill, Marlton, Moorestown, and Mt. Laurel, New Jersey. Some discussions in this press release may contain forward-looking statements. These forward-looking statements, include statements of the Banka™s plans, objectives, expectations, estimates and intentions, involve risks and uncertainties and are subject to change based on various important factors (some of which are beyond the Banka™s control). The following factors, among others, could cause the Banka™s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Bank conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetary fluctuations; the perceived overall value of the Banka™s products and services by users, including the features, pricing and service compared to competitorsa™ products and services; the impact of changes in financial servicesa™ laws and regulations; increased deposit insurance assessments; increased shareholder activism; technological changes; acquisitions; changes in consumer spending and saving habits; and the success of the Bank at managing the risks involved in the foregoing.

The Bank cautions that the foregoing list of important factors is not exclusive. The Bank also cautions readers not to place undue reliance on these forward-looking statements, which reflect managementa™s analysis only as of the date on which they are given.

The Banka™s Balance Sheet as of March 31, 2011 and its Statements of Operations for the three months ended March 31, 2011 follow.