Liberty Bell Bank Reports a $192,000 Improvement in Results of Operations for Quarter Ended September 30, 2007

Business Wire, Oct 19, 2007

CHERRY HILL, N.J. -- Liberty Bell Bank (Nasdaq:LBBB) today announced that results of operations for the quarter ended September 30, 2007 improved 73% over the third quarter 2006. The bank reported a net loss of $70,000 for the three months ended September 30, 2007 compared to a net loss of $262,000 for the same period in 2006. On a year to date basis, the bank reported a loss for the first nine months of 2007 of $46,000, an improvement of $1,023,000 or 96% when compared to the loss of $1,068,000 for the same period in 2006.

Highlights for the third quarter include:

* Net interest margin for the quarter was 3.21%, an increase of 36 basis points over the third quarter of 2006.

* Total loans reached $91 million, up 18% over year-end 2006 and an increase of $14 million or 18% over December 31, 2006. Total loans increased $8.7 million or 11% since June 30, 2007.

* Net interest income, before provision for possible loan losses, increased $149,000 or 20% to $880,000 for the three months ended September 30, 2007, as compared to net interest income of $731,000 for the comparable prior year period.

* Total assets were $119.4 million at September 30, 2007, up $10.7 million or 10% over December 31, 2006.

* No adversely classified credits. Total loan balances past due 90 days or more equal $46,000 representing one $6,000 loan balance and another $40,000 balance where the collateral has been liquidated and the bank expects full recovery.

"After a slow second quarter in net loan growth that essentially accounted for net interest income being flat from the second quarter to the third quarter of this year, we enjoyed strong loan growth late in the third quarter. Our loans grew 11% or nearly $9 million in the third quarter, and barring any unforeseen significant market shift that materially increases our cost of funds, we should see the positive impact of that growth on our net interest margin going forward. We anticipate an equally strong fourth quarter for loans," stated President and CEO Kevin Kutcher, who continued: "Unfortunately, between timing and some minor additional non-interest expenses that hit the third quarter at the same time our net interest margin flattened, we slipped a bit on the bottom line. With the additional loans currently in our pipeline that we anticipate funding during the fourth quarter, and the full quarter effect of the loans made in the third quarter, most of which closed in the latter half of the quarter, we anticipate that we will resume our trend toward sustained profitability."

Chairman of the Board, Bill Dunkelberg added, "Our fundamentals are solid and our foundation strong. We are positioned extremely well to profitably leverage growth. Our initial expansion to three offices is complete and our overhead is now fairly well stabilized. We foresee significant growth opportunities for Liberty Bell Bank, particularly with the recent change in the local banking landscape with both Commerce Bank and Farmers & Mechanics Bank recently being acquired by other large out of state bank holding companies." Kutcher added in conclusion "We are a local bank on Main Street meeting the needs of local Main Street businesses and households. We believe, more than ever before, that this is a great time for Liberty Bell Bank, its customers and shareholders."

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. Some discussions in this press release may contain forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. We caution the reader to be aware of the speculative nature of "forward-looking statements," which are not historical in nature and typically include the words "anticipate," "estimate," "should," "expect," "believe," "intend," "look forward" and similar expressions. Although these statements reflect Bank management's good faith beliefs 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.