Liberty Bell Bank Releases 2006 Results of Operations

Business Wire, April 4, 2007

CHERRY HILL, N.J. -- Liberty Bell Bank (Nasdaq:LBBB) today reported that its assets increased $14.0 million to $108.7 million at December 31, 2006, from $94.7 million at December 31, 2005. President and CEO Kevin L. Kutcher noted that "within the 14.0% increase in total assets was a significant increase in loans which, net of allowance for loan losses, increased 34.6% or $23.7 million to $76.7 million at December 31, 2006."

The Bank reported a net loss of ($1,444,754), or ($0.54) per basic and diluted common share, for the year ended December 31, 2006 (($1,133,626) before nonrecurring losses on the sale of investment securities), compared to a net loss of ($1,596,336) or ($0.71) per basic and diluted common share for the year ended December 31, 2005. Because per share calculations use a weighted average number of shares for the given period, the per share losses for the year ended December 31, 2005 reflect the Bank's stock offering completed in April 2005 that increased the total number of shares outstanding by 1,394,815 shares.

In discussing the improving results of operations, Mr. Kutcher noted that "of most significance to us is the fact that our general recurring operating expense, that is our overhead, stabilized in 2006 due to all of our three branches operating for a full year for the first time in 2006. We also had significant gains in our net interest income, which grew substantially more than our expenses. We anticipate the same trend continuing in 2007. As a result, we are confident that with continuing growth in loans and deposits and relatively stabilized expenses, we should be able to report profits in 2007. In fact, we recorded our first, albeit modest, profitable month in January 2007, and although we operated at a slight loss for February, we anticipate that when all the numbers are settled for the quarter we'll be reporting a profitable first quarter of 2007."

Mr. Kutcher added that "the continuing efforts by our former board chairman to acquire control of the Bank's Board of Directors may cause us to incur additional expenses that will impact our earnings. We are hopeful that his efforts will cease in 2007, which we believe would have an immediate positive impact on our achieving and sustaining profitability in 2007."

The Bank's net interest income increased 45.7% or $883,422 to $2,818,314 for the year ended December 31, 2006 from $1,934,892 for the year ended December 31, 2005. The Bank's operating expenses increased 14.5% or $479,077 to $3,777,356 for the year ended December 31, 2006 from $3,298,279 for the year ended December 31, 2005. Mr. Kutcher explained that "the increased expenses are largely attributable to the full year of operation in 2006 of the Bank's third office in Marlton, that opened in July 2005, to general increases in expenses associated with the Bank's growth in loan and deposit accounts and to the addition of a fourth loan officer in September 2006.

The Bank's balance sheets at December 31, 2006 and 2005, and its statements of operations for the years ended December 31, 2006 and 2005 are set forth below. They are qualified in their entirety by, and should be read in conjunction with, the more detailed financial statements and notes set forth in the Bank's 2006 Annual Report to Shareholders. To receive a copy of the Annual Report, please contact Kevin L. Kutcher, President at 145 North Maple Ave, Marlton, New Jersey 08053, telephone: (856) 830-1122.

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This Release contains forward-looking statements. These statements are not historical facts and include statements about management's strategies and expectations about programs, products, and opportunities. Such forward-looking statements involve certain risks and uncertainties. Because of such risks and uncertainties, actual results and performance may be materially different from results indicated by these forward-looking statements. Factors that might cause a difference include, but are not limited to, general economic conditions; changes in interest rates, deposit flows, loan demand, real estate values and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting the bank's operations, pricing, products and services. More detailed information concerning the Bank's financial condition and results of operations can be found in the Bank's 2006 Annual Report on Form 10-KSB filed with the Federal Deposit Insurance Corporation in Washington, DC. More information on the Bank also can be found online at www.LibertyBellBank.com.