Liberty Bell Bank today announced year to date 12% growth in total assets led by an 8% increase in its loan portfolio funded through a 15% increase in deposits since year-end 2007. The Bank reported a net loss of $166,372 for the second quarter of 2008 as compared to earnings of $10,853 for the same period last year. The Bank attributes the decreased earnings largely to a $175,000 increase in its loan loss provision, as well as to increased FDIC insurance assessments.

Highlights for the second quarter of 2008 include:

• Total deposits increased $17 million or 15% since year-end 2007 and are up $37 million or 41% since the second quarter of 2007.
• Total loans increased $8 million or 8% since year-end 2007 and are up $27 million or 33% since June 30, 2007.
• Net interest income increased $96,482 for the second quarter 2008 versus the second quarter 2007, an increase of 11%.
• Total non-interest (overhead) expenses increased $131,531 or 15% over the second quarter 2007.
• No material delinquencies and no non-accruing loans. The Bank has had no material loan losses since inception.

CEO Kevin Kutcher commented, “Our loan loss provision of $190,000 in the second quarter of 2008 as compared to $15,000 in the second quarter of 2007 largely reflects the growth of our loan portfolio and the need from a regulatory standpoint to maintain necessary and adequate reserves against that portfolio. In light of three loan relationships, all well collateralized, that weakened a bit during the quarter, we accelerated some of our anticipated loan loss provisions planned for the latter part of this year into the current quarter to maintain compliance with regulatory guidance for maintaining adequate loan loss reserves. We anticipate no material loss, if any, resulting from these loan relationships and we’ll likely see some benefit in the third and fourth quarters as it presently seems we’ll be able to take less provision expense than we initially projected.”

Principal accounting officer Dennis Costa added, “Our FDIC insurance expense was $41,500 for the second quarter of 2008 compared to $2,700 in the second quarter of 2007, largely a result of the FDIC substantially increasing assessment rates for all banks during 2007, along with strong deposit growth on which the premium assessments are based. A third of our increased overhead expense is attributable to increased FDIC expenses alone.”

Chairman Bill Dunkelberg added, “Our increased FDIC insurance expense comes largely from our good growth. Our net interest income, margin and spread are recovering nicely from the recent dramatic rate changes implemented by the Fed, and our core business growth, reflected in a strong loan and deposit increases, continues.” Chairman Dunkelberg also noted, “Our loan growth remains rather strong and we have absolutely no exposure to any of the sub-prime loan mess plaguing the larger banks. Our loan portfolio, the backbone of a community banks strength, remains sound and we’re enjoying good core deposit growth – good news for our shareholders and depositors.”

Liberty Bell Bank is a New Jersey chartered commercial bank that maintains offices in Cherry Hill, Moorestown, and Evesham Township, New Jersey. For more information on the Bank may be obtained on the Bank’s website at www.libertybellbank.com Some discussions in this press release may contain forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The reader should be aware of the speculative nature of "forward-looking statements." Statements that are not historical in nature, including the words "anticipate," "estimate," "should," "expect," "believe," "intend," "look forward," “project” 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 the Bank’s 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.

The Bank’s balance sheets at June 30, 2008 and December 31, 2007 and its statements of operation for the three and six month periods ended June 30, 2008 are set forth below:

Liberty Bell Bank
Kevin L. Kutcher, 856-830-1122
President/CEO