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LBBB Removed
Cash/Stock merger; LBBB acquired by Delmar Bancorp (OTC: DBCP); for every 1 share of LBBB shareholders have the right to receive either a) $1.70 in cash b) 0.2857 shares of DBCP or c) some combination thereof
http://otce.finra.org/DLDeletions
9/30/2017 call report
net income 179,000
vs.
9/30/2016 call report
net income 135,000
LBBB hits new 52-week high (7/25/17)
LIBERTY BELL BANK (LBBB)
Last Trade [tick] 1.8700 [-]
Volume 13,753
Net Change 0.0200
Net Change % 1.08%
52 Week High 1.9800 on 07/25/2017
52 Week Low 0.9200 on 11/22/2016
Day High 1.9800
Day Low 1.8700
LBBB hits new 52-week high (7/21/17)
LIBERTY BELL BANK (LBBB)
Last Trade [tick] 1.7500[+]
Volume 96,000
Net Change 0.5200
Net Change % 42.28%
52 Week High 1.9000 on 04/28/2017
52 Week Low 0.9200 on 11/22/2016
Day High 1.7500
Day Low 1.6100
Department of conspiracy here....
Another bank holding OXBC trades two sells 1728 & 1600 shares on BID (sell). Equates to about $47,250
Only couple min later LBBB posts buys of 18,897 & 9000 shares @ $1.70 ASK for about $47,400 buy ....
;)
Buying LBBB here is like buying DBCP @ nice discount ;)
Brilliant!
Never would have expected a merger between LBBB and DBCP.
Despite both banks being on my short watch list, the proceeds from the sale of FOFN did not find their way into either one of these banks.
LBBB $1.65
merger terms
Under the Agreement, each Liberty shareholder will be entitled to elect to receive either 0.2857 shares of Delmar common stock, or $1.70 in cash, for each share of Liberty common stock they own, provided that in the aggregate 70% of the shares of Liberty common stock must be converted into Delmar common stock and 30% of the shares of Liberty common stock must be converted into cash.
currently DBCP trades at $7.00 Bid
$7 x 0.2857 = $1.9999
vs.
$1.70 Cash offer
clearly the market pricing currently favors stock exchange
Delmar Bancorp and Liberty Bell Bank Announce Merger Agreement
SALISBURY, MD and MARLTON, NJ--(Marketwired - Jul 21, 2017) - On July 20, 2017, Delmar Bancorp ("Delmar") (OTCQB: DBCP), the parent company of The Bank of Delmarva, Seaford, Delaware ("Delmarva"), and Liberty Bell Bank, Marlton, New Jersey ("Liberty") (OTCQB: LBBB) entered into a definitive agreement (the "Agreement") pursuant to which Liberty will be acquired by Delmar through the merger of Liberty into Delmarva, with Delmarva being the surviving institution.
Under the Agreement, each Liberty shareholder will be entitled to elect to receive either 0.2857 shares of Delmar common stock, or $1.70 in cash, for each share of Liberty common stock they own, provided that in the aggregate 70% of the shares of Liberty common stock must be converted into Delmar common stock and 30% of the shares of Liberty common stock must be converted into cash. Options and other warrants to acquire Liberty common stock will be assumed by Delmar and converted into options and rights to acquire shares of Delmar common stock.
Based on the average closing price of Delmar common stock during the 90 days ended July 14, 2017 of $6.58, the aggregate value of the transaction would be approximately $16 million, or approximately 162% of Liberty's tangible book value per common share as of March 31, 2017 and 54 times Liberty's projected 2017 earnings available to common shareholders, each as of March 31, 2017. Delmar expects to recover at closing of the transaction $6.1 million of Liberty's $6.8 million valuation reserve on its deferred tax asset, due to the significant common ownership of Delmar and Liberty (they share the same largest shareholder), providing a unique opportunity for Delmar and Liberty shareholders. With this valuation reserve recovery, the aggregate value of the transaction represents approximately 100% of Liberty's tangible book value. Approximately $4.5 million of the aggregate consideration will be payable in cash. Delmar expects that the transaction will be accretive to Delmar's earnings within twelve months following the closing of the merger, and will result in modest dilution to tangible book value, which is expected to be earned back in approximately three years.
The acquisition of Liberty, with three branches in Burlington and Camden Counties, will be Delmar's initial entry into the Southern New Jersey/Suburban Philadelphia market. The merger will enable Delmar to enhance its growth opportunities by leveraging its larger capital base and legal lending limit with Liberty's customer base.
At March 31, 2017, Liberty had approximately $149.9 million in assets, $121.2 million in loans and $136.5 million in deposits. On a pro forma basis at March 31, 2017, the combined company would have $668.6 million of assets, $556.1 million in loans and $575.0 million in deposits.
Kenneth R. Lehman currently serves on the Board of Directors of both Liberty and Delmar. In connection with the merger, two additional members of the Board of Directors of Liberty will join the Board of Directors of Delmar and Delmarva. Liberty will continue to operate under the name "Liberty Bell Bank, a division of The Bank of Delmarva".
The merger is expected to close in the fourth quarter of 2017 or first quarter of 2018. The Agreement has been unanimously approved by the boards of directors of both Delmar and Liberty and is subject to the approval by the shareholders of Liberty, the approval of the applicable bank regulatory authorities, and the satisfaction or waiver of the conditions to closing and covenants of each party contained in the Agreement.
John W. Breda, President and CEO of Delmar and Delmarva said, "We are extremely excited about the proposed acquisition of Liberty and the transformative opportunities the combination creates for us. We are familiar with the market and believe that it provides substantial opportunities for growth of the combined bank. We look forward to serving Liberty's customers with our portfolio of deposit, cash management, and loan products for businesses and consumers. We plan to work very closely with the Liberty team to provide a seamless transition, and make Liberty's customers feel that nothing has changed, except our capacity to serve them. Having just assumed the role of President and CEO of Delmar, I am very proud and eager to lead it into a new market and new opportunities."
Benjamin F. Watts, President and CEO of Liberty said, "We are thrilled to have found such a strong and high caliber institution as Delmar Bancorp to merge with. This partnership will serve our shareholders, our employees, our customers and our community well."
Liberty was advised by FIG Partners, L.P. as financial advisor, and Stevens & Lee as legal counsel. RP Financial LC. served as financial advisor, and Buckley Sandler LLP served as legal counsel, to Delmar.
About the Companies: Delmar Bancorp is the holding company for The Bank of Delmarva, which commenced operations in 1896. Delmarva's main office is in Seaford, Delaware, and it conducts full service commercial banking through 10 offices, soon to be 11, located in Wicomico and Worcester Counties in Maryland, and Sussex County in Delaware. Delmarva focuses on serving its local communities, knowing its customers and providing superior customer service.
Liberty Bell Bank is headquartered in Marlton, New Jersey, and has two additional full service offices in Moorestown and Cherry Hill, New Jersey.
Additional Information About the Merger and Where to Find It
In connection with the proposed transaction, Delmar intends to file with the Securities and Exchange Commission (the "SEC") an Offering Statement on Form 1-A (the "Offering Statement") to qualify the shares of Delmar common stock to be issued to shareholders of Liberty in connection with the transaction. The Offering Statement will include a Proxy Statement of Liberty (the "Proxy Statement") and an Offering Circular of Delmar, as well as other relevant materials regarding the proposed transaction involving Delmar and Liberty. A definitive Proxy Statement/Offering Circular will be mailed to shareholders of Liberty. SECURITY HOLDERS OF LIBERTY ARE ADVISED TO READ THE PROXY STATEMENT/OFFERING CIRCULAR WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/OFFERING CIRCULAR BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING DELMAR AND LIBERTY AND THE PROPOSED TRANSACTION. Security holders may obtain free copies of these documents, once they are filed, and other documents filed with the SEC on the SEC's website at http://www.sec.gov. This release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or proxy in favor of the merger, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Any such solicitations or offers will be made through the Proxy Statement/Offering Circular following the qualification of the Offering Statement with the SEC and under any state securities law requirement. Any proxy or offer to sell or buy any securities provided in response to this release will not be accepted.
Forward-looking Statements: This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Delmar's operations and policies and regarding general economic conditions. These forward-looking statements include, but are not limited to, statements about (i) the benefits of the merger between Delmarva and Liberty and (ii) Delmar's and Liberty's plans, obligations, expectations and intentions. In some cases, forward-looking statements can be identified by use of words such as "may," "will," "anticipates," "believe," "expects," "plan," "estimates," "potential," "continue," "should," and similar words or phrases. These statements are based upon the beliefs of the respective managements of Delmar and Liberty as to the expected outcome of future events, current and anticipated economic conditions, nationally and in the parties' market, and their impact on the operations and assets of the parties, interest rates and interest rate policy, competitive factors, judgments about the ability of the parties to successfully consummate the merger and to integrate the operations of the two companies, the expected growth opportunities or cost savings resulting from the merger, which may not be fully realized or take longer than expected to realize; the ability of the two companies to avoid customer dislocation or runoff, and employee attrition, during the period leading up to and following the merger, the timing of and any conditions to required regulatory approvals, the ability of Delmar to recover Liberty's valuation reserve on its deferred tax asset, and other conditions which by their nature, are not susceptible to accurate forecast and are subject to significant uncertainty. Factors that could cause results and outcomes to differ materially include, among others, the ability to obtain required regulatory and shareholder approvals; the ability to complete the merger as expected and within the expected timeframe; and the possibility that one or more of the conditions to the completion of the merger may not be satisfied. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on such forward-looking statements. Past results are not necessarily indicative of future performance. Delmar and Liberty assume no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.
CONTACTS:
DELMAR BANCORP
John W. Breda
(MORE TO FOLLOW) Dow Jones Newswires
July 21, 2017 09:00 ET (13:00 GMT)
Delmar Bancorp and Liberty Bell Bank Announce -2-
President and CEO
410-548-1100
Liberty Bell Bank
Benjamin F. Watts
President and CEO
856-830-1135
(MORE TO FOLLOW) Dow Jones Newswires
July 21, 2017 09:00 ET (13:00 GMT)
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LBBB $1.23
May 2017 & June 2017 has seen some big share blocks trades.
another 86,558 share block traded today @ $1.23.
LBBB is establishing a new shareholder base here and once these block trades are absorbed higher prices should follow, IMO
good luck!
Liberty Bell Bank Reports First Quarter 2017 Results of Operations
Company Release - 04/26/2017 16:00
MARLTON, N.J.--(BUSINESS WIRE)-- Liberty Bell Bank (OTC:LBBB) today reported net income of $106,000 or $0.01 per diluted share for the three months ended March 31, 2017, compared to net income of $50,000, or $0.01 per diluted share, for the same period in 2016, an improvement of $56,000. At March 31, 2017, the Bank is well capitalized by all regulatory measures.
Net income of $106,000 in the first quarter of 2017 was due primarily to net interest income of $1.26 million, loan fees of $154,000, fees from deposits of $41,000 and a tax credit of $15,000 exceeding its provision for loan losses of $64,000 and operating expenses of $1.30 million. Operating expenses included compensation expense of $590,000 and other operating expenses of $710,000.
The Bank’s President, Benjamin Watts, indicated that “the Bank continues to be well situated to benefit from the diverse commercial and consumer base in its market area. The growth in net income is the result of management’s focus on reducing problem assets, expanding sources of fee income and controlling operating expenses. We anticipate continued growth as we execute our strategic plan for 2017.”
The $56,000 improvement from net income of $50,000 in the three months ended March 31, 2016 was due primarily to net interest income, which increased by $57,000, fees from loans which increased by $14,000, operating expenses which decreased by $70,000 and an income tax benefit of $26,000. Partially offsetting these positive variances, the provision for loan losses was $64,000 for the first quarter of 2017 as compared to a $15,000 provision for loan losses for the first quarter of 2016. In addition, there was no gain from the sale of investment securities in 2017 as compared to a gain of $59,000 in the first quarter of 2016 and fees from deposits decreased $3,000.
The Bank reported that the increase of $57,000 in net interest income for the three months ended March 31, 2017, as compared to the three months ended March 31, 2016, was due to a $61,000 increase in interest and dividend income partially offset by a $4,000 increase in interest expense, primarily from interest paid on deposits. The increase in interest and dividend income was due to an increase of $83,000 in interest from loans and a $6,000 increase in interest income from interest-bearing deposits with other banks, partially offset by a decrease of $28,000 in interest on investment securities.
The increase of $83,000 in interest from loans was due primarily to an $8.2 million increase in average total loans outstanding for the first three months of 2017 to $118.4 million, as compared to $110.2 million outstanding for the first three months of 2016. However, the yield from the loan portfolio decreased slightly from 4.91%, to 4.84%.
The $70,000 decrease in non-interest expense for 2017 as compared to 2016 was due primarily to a $29,000 decrease in insurance expenses primarily related to deposit insurance premium expense, an $18,000 decrease in expenses related to other real estate owned and a $17,000 decrease in legal expenses. In addition, expenses related to employee compensation and benefits decreased $12,000.
Net interest margin for the first quarter of 2017 was 3.52% as compared to 3.33% for the first quarter of 2016, an improvement of 0.19%. The margin was impacted by a 0.20% higher yield from interest-earning assets. The interest rate paid for deposits increased slightly from 0.63% for the first quarter of 2016 to 0.65% for the first quarter of 2017.
Total assets at March 31, 2017 were $149.9 million, representing an increase of $296,000 from $149.6 million at December 31, 2016. The increase was due primarily to a $496,000 increase in net loans and a $39,000 increase in investment securities. These increases were partially offset by a $170,000 decrease in cash and cash equivalents primarily in the form of excess liquidity held in an interest-bearing account at the Federal Reserve Bank and a $69,000 decrease in other assets.
Total deposits increased $329,000 to $136.5 million at March 31, 2017 from $136.1 million at December 31, 2016. The increase was primarily due to a $1.3 million increase in money market accounts and growth in interest-bearing checking accounts of $995,000. In addition, savings deposits increased $352,000. Partially offsetting these increases, non-interest bearing checking accounts decreased $937,000 and certificates of deposit declined $1.4 million.
Selected Financial Data
Set forth below are certain selected balance sheet and income statement data at March 31, 2017 and December 31, 2016 and for the three months ended March 31, 2017 and 2016.
SELECTED BALANCE SHEET DATA
(Unaudited, in thousands)
March 31 2017, December 31 2016,
Cash and cash equivalents $ 13,920 $ 14,090
Investment securities 10,936 10,897
Net loans receivable 119,964 119,468
Total assets 149,872 149,576
Deposits 136,488 136,159
Shareholders’ equity 9,897 9,730
SELECTED INCOME STATEMENT DATA
(Unaudited, in thousands except per share data)
Quarter ended March 31 2017, Quarter ended March 31 2016,
Net interest income $ 1,260 $ 1,204
Provision for loan losses 64 15
Other non-interest income 195 183
Gain on sale of securities available for sale 0 59
Other expenses 1,300 1,370
Provision for income taxes (15 ) 11
Net income $ 106 $ 50
Earnings per share:
Basic $ 0.01 $ 0.01
Diluted $ 0.01 $ 0.01
Capital Ratios:
Common Equity Tier 1 Capital to Risk Weighted Assets 9.25% 9.12%
Leverage Capital 6.59% 6.39%
Tier 1 Capital to Risk Weighted Assets 9.25% 9.12%
Total risk based capital 10.37% 10.37%
Liberty Bell Bank is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through two locations in Burlington County, New Jersey and one location in Camden County, New Jersey.
The Bank may from time to time make written or oral “forward-looking statements”, including statements contained in this release. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, taxation, technology and market conditions. Actual results may differ materially from such forward-looking statements, and no undue reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, unanticipated changes in the financial markets and the direction of interest rates; volatility in earnings due to certain financial assets and liabilities held at fair value; stronger competition from banks, other financial institutions and other companies; insufficient allowance for credit losses; a higher level of net loan charge-offs and delinquencies than anticipated; material adverse changes in the Bank’s operations or earnings; a decline in the economy in our primary market areas; changes in relationships with major customers; changes in effective income tax rates; higher or lower cash flow levels than anticipated; inability to hire or retain qualified employees; a decline in the levels of deposits or loss of alternate funding sources; the inability to increase our loan portfolio; merger and acquisition activity, the inability to increase our capital to sustain our growth and meet regulatory requirements; changes in laws and regulations, including issues related to compliance with anti-money laundering and the bank secrecy act laws; adoption, interpretation and implementation of new or pre-existing accounting pronouncements; operational risks, including the risk of fraud by employees and customers; the inability to successfully implement our strategic plan as well as new lines of business or new products and services and other factors, many of which are beyond the Bank's control. The words “may”, “could”, “should”, “would”, “will”, “project”, “continue”, “believe”, “anticipate”, “expect”, “intend”, “plan”, and similar expressions are intended to identify forward-looking statements. All such statements are made in good faith by the Bank pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Bank does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Bank.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170426006347/en/
Liberty Bell Bank
Dennis A. Costa
Chief Financial Officer
856-830-1134
Source: Liberty Bell Bank
http://investors.libertybellbank.com/CorporateProfile.aspx?iid=4089241
FDIC and New Jersey Department of Banking and Insurance Terminate Liberty Bell Bank Consent Orders (2/08/17)
MARLTON, N.J. --(BUSINESS WIRE)
Liberty Bell Bank (OTC:LBBB) today announced that it has been notified by the Federal Deposit Insurance Corporation (FDIC) and the New Jersey Department of Banking and Insurance that the Consent Orders to which the Bank voluntarily consented in November 2013 with each of such regulators have been terminated.
Benjamin F. Watts, President and Chief Executive Officer, noted, "The lifting of the Consent Orders is a testament to the progress we have made in strengthening our operations.” He continued, "We thank our regulatory partners for their guidance through this process and commend our team, whose commitment to moving our bank forward has enabled us to reach this important milestone."
About Liberty Bell Bank
Liberty Bell Bank is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through two locations in Burlington County, New Jersey and one location in Camden County, New Jersey.
http://www.businesswire.com/news/home/20170209006235/en/
Liberty Bell Bank Reports Third Quarter 2016 Results of Operations (11/18/16)
MARLTON, N.J.--(BUSINESS WIRE)--Liberty Bell Bank (OTC:LBBB) today reported net income of $58,000 for the three months ended September 30, 2016, compared to net income of $76,000 for the same period in 2015, a decrease of $18,000. Net income for the nine months ended September 30, 2016 was $134,000, an improvement of $34,000 as compared to net income of $100,000 for the same period in 2015. At September 30, 2016, our common equity tier 1 capital to risk weighted assets, leverage, tier 1 capital to risk weighted assets and total risk based capital ratios all increased to 9.40%, 6.74%, 9.40% and 10.65%, respectively.
The decrease in the Bank’s net income for this quarter over the same quarter in 2015 was due primarily to a decrease in its other non-interest income of $39,000 mainly caused by the receipt in the third quarter of 2015 of $103,000 of other non-interest income associated with the sale of other real estate owned compared to no such proceeds in the third quarter of 2016 partially offset by a $39,000 decrease in losses associated with the sale of other real estate and a $24,000 increase in loan related fees. In addition, the Bank’s net interest income decreased by $15,000 in the third quarter of 2016 compared to the same period in 2015. However, the Bank’s provision for loan losses decreased by $5,000 and its non-interest expense decreased by $31,000 in the third quarter of 2016, partially offsetting the negative variances in non-interest and net interest income.
The decrease in net interest income was due to a $34,000 decrease in interest earned from investments partially offset by a $22,000 increase in interest and fees from loans. Also interest expense from interest paid on deposits increased by $3,000 due to an increase in the average rate paid on deposits from 0.66% in last year’s third quarter to 0.68% this quarter caused by an increase in the rate of interest paid on money market deposit accounts. In addition, the average balance in the Bank’s interest-bearing accounts increased $1.8 million to $111.9 for the quarter ended September 30, 2016.
The increase of $22,000 in interest and fees from loans was due primarily to an increase in average loan balances outstanding for the three months ended September 30, 2016 of $5.8 million as compared to the three months ended September 30, 2015. Partially offsetting the positive impact on interest income due to a higher average loan balance, the interest yield from the loan portfolio decreased 0.16% to 4.78% for the third quarter of 2016 from 4.94% for the third quarter of 2015.
The $31,000 decrease in non-interest expense was due primarily to a $32,000 decrease in compensation expense due to a reduction in salary and medical expenses. In addition, expenses related to the amortization of leasehold improvements, equipment licensing fees, marketing, and other real estate owned decreased by $12,000, $11,000, $11,000, and $8,000, respectively, which contributed to lower non-interest expense. Also, legal expenses, primarily relating to the Bank’s non-performing assets, decreased $11,000. Partially offsetting these positive variances, data processing expenses increased $22,000 as the Bank outsourced data processing functions, director fees increased $15,000, and other professional fees increased $12,000.
Net interest margin for the third quarter of 2016 was 3.42%, a decrease of 0.11% from the 3.53% net interest margin for the third quarter of 2015. The decline in the net interest margin resulted from a reduction of 0.12% in the yield from earning assets, primarily the loan portfolio.
The $34,000 net income improvement for the nine months ended September 30, 2016 as compared to the nine months ended September 30, 2015 can be primarily attributed to an increase in gains from the sale of investment securities of $72,000, an increase in fees from loans of $96,000, a $39,000 reduction in the Bank’s loss from the sale of other real estate and a $35,000 decline in other expenses. A decline in net interest income of $64,000, an increase in the provision for loan losses of $15,000, a decline in other non-interest income of $108,000 and an increase in the provision for income taxes of $21,000 partially reduced the impact of the favorable variances. The decline in other non-interest income was due primarily to the receipt in the third quarter of 2015 of $103,000 of other non-interest income associated with the sale of other real estate owned compared to no such proceeds in the third quarter of 2016.
The $64,000 decrease in net interest income was mainly due to a $45,000 increase in interest expense, as well as a $115,000 decrease in interest earned from investment securities partially offset by an increase of $44,000 in interest from cash and cash equivalents and a $52,000 increase in interest and fees from loans. The increase in interest expense was primarily due an increase in the average rate paid on deposits from 0.64% in last year’s first nine months to 0.68% this year-to-date caused by an increase in the rate of interest paid on money market deposit accounts and certificates of deposit. In addition, the average balance in interest-bearing accounts increased $2.2 million to $117.6 for the nine months ended September 30, 2016.
The decrease of $115,000 in interest earned from investment securities was due primarily to a $4.7 million decrease in the average investment balance outstanding, as the bank sold securities primarily to fund the growth in loans and to monetize gains in the portfolio. In addition, the interest yield from the investment securities portfolio decreased 43 basis points from 1.93% to 1.50%. The $44,000 increase in interest earned from interest-bearing cash deposits, primarily at the Federal Reserve Bank, was due to an increase of $6.4 million in average balances outstanding. The increase of $52,000 in interest and fees from loans was due primarily to a $4.1 million increase in average loan balances outstanding for the nine months ended September 30, 2016 as compared to the nine months ended September 30, 2015. Partially offsetting the impact of an increase in average loan balances outstanding, the interest yield for the loan portfolio decreased 13 basis points from 4.96% to 4.83%.
The $35,000 decrease in other expenses for the nine months ended September 30, 2016 as compared to the nine months ended September 30, 2015 was due primarily to a $97,000 decrease in compensation related expenses due to a reduction in staffing and lower medical insurance expense, a $60,000 decrease in equipment expenses due to data processing outsourcing, a $51,000 decrease in expenses related to other real estate owned, a $31,000 decrease in occupancy expenses due to lower amortization of leasehold improvement expense, a $20,000 decrease in marketing expense, and a $20,000 decrease in legal expense related to the positive results from Bank’s ongoing troubled asset reduction plan. Partially offsetting these positive variances, data processing expenses increased by $138,000 as the Bank outsourced data processing functions, director fees increased by $51,000, other professional fees increased by $29,000 and miscellaneous expenses increased by $36,000.
Net interest margin for the nine months ended September 30, 2016 was 3.33%, a decrease of 0.21% from the 3.54% net interest margin for the nine months ended September 30, 2015. The decrease in the net interest margin resulted from a decrease of 0.20% in the yield generated from interest-earning assets coupled with an increase of 0.03% in the rate paid for interest bearing deposits and borrowings
Total assets at September 30, 2016 were $145.1 million, representing a decrease of $6.3 million from $151.4 million at December 31, 2015. The decrease was due primarily to a $6.0 million reduction in investment securities, a $3.9 million decrease in cash and cash equivalents primarily in an interest-bearing account at the Federal Reserve Bank, a $759,000 decrease in other real estate and a $258,000 decrease in other assets. Partially offsetting these negative variances, loans increased $4.6 million.
Total deposits decreased by $6.3 million to $131.8 million at September 30, 2016 from $138.1 million at December 31, 2015. This was primarily due to an $8.1 million decrease in interest bearing accounts, offset by a $1.8 million increase in non-interest bearing accounts.
The decrease in interest-bearing deposit accounts of $8.1 million was due primarily to money market deposit accounts which decreased $9.9 million. Savings accounts, however, increased $1.1 million and interest bearing checking accounts increased $663,000. Attracting and maintaining money market deposits has become increasingly competitive. The Bank has been successful in replacing the decrease in money market accounts with certificates of deposits from its local marketplace.
At September 30, 2016, our adversely classified loans totaled $4.5 million which represents a decrease of $926,000 since December 31, 2015. Other real estate owned totaled $1.9 million at September 30, 2016, a decrease of $759,000 from December 31, 2015. The Bank’s Texas Ratio was 39.20% at September 30, 2016 as compared to 44.91% at December 31, 2015.
The Bank’s President and Chief Executive Officer, Benjamin Watts indicated, “We continue to see improvement in our adversely classified assets including other real estate which have been a drain on the earnings of the Bank for the last several years. We look forward to continued reduction in the level of our adversely classified assets which will increase the Bank’s earnings potential and reduce the overall risk profile of the Bank. The Chairman of the Board of Directors of the Bank, William Dunkelberg added, “Management and the Board have worked aggressively to eliminate the problems remaining from the Great Recession while continuing to improve the operation of the Bank. Their success has produced seven straight quarters of profitability and we look forward to even more success in 2017.”
[tables deleted]
Liberty Bell Bank is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through two locations in Burlington County, New Jersey and one location in Camden County, New Jersey.
http://www.businesswire.com/news/home/20161118005763/en/Liberty-Bell-Bank-Reports-Quarter-2016-Results
Liberty Bell Bank Reports Second Quarter 2016 Results of Operations (8/09/16)
MARLTON, N.J.--(BUSINESS WIRE)--Liberty Bell Bank (OTC: LBBB) today reported net income of $27,000 for the three months ended June 30, 2016, compared to net income of $20,000 for the same period in 2015, an improvement of $7,000. The second quarter of 2016 is the Bank’s sixth consecutive quarter of reported net income. Net income for the six months ended June 30, 2016 was $77,000, an improvement of $53,000 as compared to net income of $24,000 for the same period in 2015. At June 30, 2016, the Bank is adequately capitalized by all regulatory measures.
The increase in the Bank’s net income for this quarter over the same quarter in 2015 was due primarily to an increase in its other non-interest income of $60,000, resulting mainly from an increase in loan related fees, a decrease in its non-interest expenses of $21,000 and an increase in gains from the sale of investment securities of $8,000, partially offset by an increase its provision for loan losses of $5,000 and a decease in the Bank’s net interest income of $71,000. The decrease in net interest income was due to a $45,000 decrease in interest and dividend income and a $26,000 increase in interest expense from interest paid on deposits. The decrease in interest and dividend income was due primarily to a decrease of $17,000 in interest and fees from loans and a decrease of $27,000 in interest earned from investments. The increase in interest expense from interest paid on deposits was due an increase in the average rate paid on deposits from 0.63% in last year’s second quarter to 0.70% this quarter caused by an increase in the rate of interest paid on certificates of deposit. In addition, the average balance in interest-bearing accounts increased $3.7 million to $119.5 for the quarter ended June 30, 2016.
The decrease of $17,000 in interest and fees from loans was due primarily to a decline in the interest yield from the loan portfolio of 0.15% from 4.97% for the second quarter of 2015 to 4.82% for the same time period in 2016. Partially offsetting the negative impact on interest income of the lower yield from the loan portfolio, average loan balances outstanding for the three months ended June 30, 2016 increased $2.1 million as compared to the three months ended June 30, 2015.
The $21,000 decrease in non-interest expense was due primarily to a $35,000 decrease in compensation expense due to a reduction in salary and medical expenses. In addition, decreases in expenses related to equipment licensing fees, other real estate owned, occupancy expenses related to amortization of leasehold improvements, and marketing of $23,000, $21,000, $12,000 and $7,000, respectively, contributed to lower non-interest expense. Also, legal expenses, primarily relating to the Bank’s non-performing assets, decreased $12,000 and loan related expenses decreased $5,000. Partially offsetting these positive variances, other operating expenses increased $77,000 due primarily to a $54,000 increase in data processing expenses as the Bank outsourced data processing functions, a $15,000 increase in other professional fees, a $15,000 increase in director fees, a $4,000 increase in audit expense, a $4,000 increase in other expenses and a $3,000 increase in printing expense. Also during the quarter, the Bank’s provision for income tax expense increased $7,000.
Net interest margin for the second quarter of 2016 was 3.23%, a decrease of 0.38% from the 3.61% net interest margin for the second quarter of 2015. The decline in the net interest margin resulted from a reduction of 0.34% in the yield from earning assets, primarily the loan portfolio.
The $53,000 net income improvement for the six months ended June 30, 2016 as compared to the six months ended June 30, 2015 can be primarily attributed to an increase in gains from the sale of investment securities of $68,000, an increase in other non-interest income of $69,000 and a decline in other expenses. A decline in net interest income of $49,000, an increase in the provision for loan losses of $20,000 and an increase in the provision for income taxes of $18,000 partially reduced the impact of the favorable variances.
The decrease of $49,000 in net interest income was due to a $7,000 decrease in interest and dividend income, as well as a $42,000 increase in interest expense, primarily resulting from an increase in interest expense on deposits. The $7,000 decrease in interest and dividend income was due primarily to a decrease of $71,000 in interest earned from investment securities partially offset by an increase of $34,000 in interest from cash and cash equivalents and a $30,000 increase in interest and fees from loans. The increase in interest expense from interest paid on deposits was due an increase in the average rate paid on deposits from 0.63% in last year’s first six months to 0.68% this year-to-date caused by an increase in the rate of interest paid on certificates of deposit. In addition, the average balance in interest-bearing accounts increased $4.4 million to $120.5 for the six months ended June 30, 2016.
The decrease of $71,000 in interest earned from investment securities was due primarily to a $4.1 million decrease in the average investment balance outstanding, as the bank sold securities primarily to fund the growth in loans and to monetize gains in the portfolio. In addition, the interest yield from the investment securities portfolio decreased 39 basis points from 1.97% to 1.58%. The $34,000 increase in interest earned from interest-bearing cash deposits, primarily at the Federal Reserve Bank, was due to an increase of $8.1 million in average balances outstanding. The increase of $30,000 in interest and fees from loans was due primarily to the average loan balances outstanding for the six months ended June 30, 2016 as compared to the six months ended June 30, 2015 which increased by $3.2 million. Partially offsetting the impact of an increase in average loan balances outstanding, the interest yield for the loan portfolio decreased 10 basis points from 4.97% to 4.87%.
The $2,000 decrease in other expenses for the six months ended June 30, 2016 as compared to the six months ended June 30, 2015 was due primarily to a $65,000 decrease in compensation related expenses due to a reduction in staffing, a $49,000 decrease in equipment expenses due to data processing outsourcing, a $44,000 decrease in expenses related to other real estate owned, a $19,000 decrease in occupancy expenses due to lower real estate taxes, a $12,000 decrease in loan related expenses, a $9,000 decrease in legal expense related to the Bank’s ongoing troubled asset reduction plan, and a $3,000 decrease in communication related expenses. Partially offsetting these positive variances, data processing expenses increased by $115,000 as the Bank outsourced data processing functions, director fees increased by $36,000, miscellaneous expenses increased by $33,000 and other professional fees increased by $17,000.
Net interest margin for the six months ended June 30, 2016 was 3.28%, a decrease of 0.26% from the 3.54% net interest margin for the six months ended June 30, 2015. The decrease in the net interest margin resulted from a decrease of 0.24% in the yield generated from interest-earning assets coupled with an increase of 0.05% in the rate paid for interest bearing deposits and borrowings.
Total assets at June 30, 2016 were $149.3 million, representing a decrease of $2.1 million from $151.4 million at December 31, 2015. The decrease was due primarily to a $3.3 million reduction in investment securities, a $948,000 decrease in net loans receivable and a $176,000 decrease in other assets. Partially offsetting these negative variances, cash and cash equivalents increased $2.2 million primarily in interest-bearing cash deposits at the Federal Reserve Bank.
Total deposits decreased by $2.1 million to $136.0 million at June 30, 2016 from $138.1 million at December 31, 2015. This was primarily due to a $4.6 million decrease in interest bearing accounts, offset by a $2.5 million increase in non-interest bearing accounts.
The decrease in interest-bearing deposit accounts of $4.6 million was due primarily to Interest bearing checking accounts, including money market accounts which decreased $9.1 million. Savings accounts, however, increased $1.2 million and certificates of deposit increased $3.3 million from December 31, 2015 to $57.9 million at June 30, 2016.
At June 30, 2016, our criticized/classified loans totaled $7.4 million which represents a decrease of $283,000 since December 31, 2015. Other real estate owned totaled $2.6 million at June 30, 2016 and at December 31, 2015. In July 2016, the Bank sold four properties of other real estate which was valued at $755,000 incurring no loss from the sale.
The Bank’s President and Chief Executive Officer, Benjamin Watts indicated, “Non-performing assets, like other real estate, are a drain on the earnings of the Bank. As we continue to reduce the level of non-performing assets, we increase the Bank’s earnings potential and reduce the overall risk profile of the Bank.” The Chairman of the Board of Directors of the Bank, William Dunkelberg added, “We have made substantial progress redeploying our assets into earning activities. This has strengthened our bank and positioned us to continue to improve our earnings. Bank management is doing a great job with excellent support from our Board of Directors.”
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Liberty Bell Bank is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through two locations in Burlington County, New Jersey and one location in Camden County, New Jersey.
http://www.businesswire.com/news/home/20160809006422/en/Liberty-Bell-Bank-Reports-Quarter-2016-Results
Liberty Bell Bank Reports First Quarter 2016 Results of Operations (4/26/16)
MARLTON, N.J.--(BUSINESS WIRE)--Liberty Bell Bank (OTC Pink: LBBB) today reported net income of $50,000 or $0.01 per diluted share for the three months ended March 31, 2016, compared to net income of $4,000 for the same period in 2015, an improvement of $46,000. At March 31, 2016, the Bank remains adequately capitalized by all regulatory measures.
The income of $50,000 in the first quarter of 2016 was due primarily to net interest income of $1.20 million, loan fees of $139,000, fees from deposits of $44,000 and $59,000 of gains from the sale of securities, exceeding its operating expenses of $1.37 million and income tax expense of $11,000. Operating expenses included compensation expense of $602,000 and other operating expenses of $508,000.
The Bank’s President, Benjamin Watts, indicated that “the Bank continues to be well situated to benefit from the diverse commercial and consumer base in its trade area. The growth in net income is the result of Management’s focus on reducing problem assets, expanding sources of fee income and controlling operating expenses. We anticipate continued growth as we execute our strategic plan for 2016.”
The $46,000 improvement from net income of $4,000 in the three months ended March 31, 2015 was due primarily to $59,000 of gains from the sale of securities available for sale. In addition, net interest income increased $21,000 and fees from loans increased $10,000. There were no losses from the write down or sale of other real estate owned during the first quarter of 2016 as compared to $1,500 for the first quarter of 2015. Partially offsetting these positive variances, the provision for loan losses was $15,000 for the first quarter of 2016 as compared to no provision for loan losses for the first quarter of 2015. In addition, non-interest expenses increased $19,000 and income tax expense increased $11,000.
The Bank reported that the increase of $21,000 in net interest income for the three months ended March 31, 2016 as compared to the three months ended March 31, 2015, was due to a $38,000 increase in interest and dividend income partially offset by a $17,000 increase in interest expense, primarily from interest paid on deposits. The increase in interest and dividend income was due primarily to an increase of $48,000 in interest from loans and a $15,000 increase in interest income from interest-bearing deposits with other banks, partially offset by a decrease of $25,000 in interest on securities available for sale.
The increase of $48,000 in interest from loans was due primarily to an increase in average total loans outstanding for the first three months of 2016 of $4.3 million, as compared to $104.7 million outstanding for the first three months of 2015. However, the yield from the loan portfolio decreased slightly from 4.97%, to 4.91%.
The $19,000 increase in non-interest expense for 2016 as compared to 2015 was due primarily to a $62,000 increase in information technology expense, as the Bank outsourced core processing functions and enhanced network functionality and security. In addition, the Bank experienced a $29,000 increase in miscellaneous expenses resulting from a non-recurring benefit recorded in 2015 associated with a restructuring initiative. Also, the Bank experienced an increase of $21,000 in director expense, an increase of $4,000 in insurance expenses and an increase of $3,000 in legal expenses and an increase of $2,000 in other professional fees. Partially offsetting these negative variances, compensation expense decreased $31,000 due to reductions in staffing, equipment expense decreased $26,000 primarily due to the Bank’s outsourcing of core processing functions, expenses related to other real estate decreased $23,000, loan related expenses decreased $7,000, occupancy expenses decreased $6,000, marketing and audit fees decreased by $3,000, and communications expense and printing costs declined $2,000 each.
Net interest margin for the first quarter of 2016 was 3.34% as compared to 3.47% for the first quarter of 2015, a reduction of 0.13%. The margin was impacted by a 0.13% lower yield from interest-earning assets. The interest rate paid for interest-bearing deposits was stable at 0.66%.
Total assets at March 31, 2016 were $153.4 million, representing an increase of $2.0 million from $151.4 million at December 31, 2015. The increase was due primarily to a $6.2 million increase in cash and cash equivalents primarily in the form of excess liquidity held in an interest-bearing account at the Federal Reserve Bank. This increase was partially offset by a $2.3 decrease in net loans and a $1.9 million decrease in securities available for sale.
Total deposits increased $1.9 million to $140.0 million at March 31, 2016 from $138.1 million at December 31, 2015. The increase was primarily due to a $2.4 million increase in interest-bearing deposit accounts. Partially offsetting this increase, non-interest bearing checking accounts decreased $527,000.
Total capital increased $148,000 from $9.5 million at December 31, 2015 to $9.7 million at March 31, 2016. Tangible capital increased $31,000 and the unrealized loss from securities available for sale decreased from $168,000 at December 31, 2015 to $51,000 at March 31, 2016.
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Liberty Bell Bank is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through two locations in Burlington County, New Jersey and one location in Camden County, New Jersey.
http://www.businesswire.com/news/home/20160425006192/en/
MARLTON, N.J.--(BUSINESS WIRE)-- Liberty Bell Bank (Other OTC: LBBB) today reported net income of $76,000 or $0.01 per diluted share for the three months ended September 30, 2015, compared to a net loss of $1.5 million or $(0.18) per diluted share for the same period in 2014, an improvement of $1.5 million or $0.19 per diluted share. Net income for the nine months ended September 30, 2015 was $100,000 or $0.01 per diluted share, an improvement of $2.5 million as compared to a net loss of $2.4 million or $(0.42) per diluted share for the same period in 2014. At September 30, 2015, the Bank is adequately capitalized by all regulatory measures.
“Our restructuring and capital enhancements undertaken in 2014 and throughout this year have positioned Liberty Bell Bank to deliver continued improvements in asset quality and loan growth,” observed Board Chairman William Dunkelberg. The Bank's President and Chief Executive Officer, Benjamin Watts, noted that, "The Bank's dedicated staff has been successful in executing our troubled asset reduction plan as projected. The Bank continues to work out of our legacy loan problems resulting from the recession, and these remaining loan problems will continue to adversely impact earnings until fully resolved."
For the quarter ended September 30, 2015, the Bank’s $30,000 provision for loan losses represented a decrease of $897,000 from the same period in 2014. In addition, the Bank’s net interest income increased by $132,000, as compared to the three months ended September 30, 2014. This was due to a $128,000 increase in interest and dividend income and a $4,000 reduction in interest expense from decreased interest expense on deposits. The increase in interest and dividend income was due primarily to an increase of $143,000 in interest and fees from loans partially offset by a decrease of $16,000 in interest earned from investments.
The increase of $143,000 in interest and fees from loans was due primarily to a $6.7 million increase in the average loan balances outstanding for the three months ended September 30, 2015 as compared to the three months ended September 30, 2014. In addition, the interest yield from the loan portfolio increased from 4.70% for the third quarter of 2014 to 4.94% for the same time period in 2015.
Non-interest income for the quarter ended September 30, 2015 also increased by $128,000 over the prior year’s third quarter. Loan related fee income increased $36,000 primarily from the sale of residential first mortgage loans, from $58,000 for the three months ended September 30, 2014 to $93,000 for the three months ended September 30, 2015. Deposit account related and other fee income increased $92,000 from $59,000 to $151,000, primarily due to proceeds associated with the sale of other real estate owned of $103,000.
The Bank’s loss on the sale and write down of other real estate decreased by $126,000 and its non-interest expenses decreased by $235,000, both as compared to the third quarter of 2014. The $235,000 decrease in non-interest expense was due primarily to a $94,000 decrease in other operating expenses and a $105,000 decrease in compensation expense. In addition, decreases in expenses related to other real estate owned, occupancy, and equipment of $15,000, $6,000, and $22,000, respectively, contributed to lower non-interest expense. Marketing expense increased $7,000. The $94,000 decrease in other operating expenses was due primarily to a $72,000 decrease in legal expenses primarily related to troubled assets, a $19,000 decrease in other professional fees primarily related to consent order compliance and a $30,000 decrease in loan related expenses. Decreases in director fee expense, printing and supply costs, and insurance expense of $12,000, $5,000, and $4,000, respectively, also contributed to lower other operating costs. Income tax expense also decreased $9,000. Partially offsetting these positive variances, information technology expense increased $39,000 as the Bank outsourced core processing functions and enhanced network functionality and security. In addition, audit expenses and correspondent bank expense increased $3,000 each, while telephone, postage and miscellaneous expenses also increased $6,000.
Net interest margin for the third quarter of 2015 was 3.53%, an increase of 0.47% from the 3.06% net interest margin for the third quarter of 2014. The improvement in the net interest margin resulted from an improvement of 0.49% on its yield from earning assets partially offset by a reduction of 0.02% in the rate paid for interest bearing deposits and borrowings.
The net income improvement of $2.5 million for the nine months ended September 30, 2015 as compared to the nine months ended September 30, 2014 can be primarily attributed to a $518,000 reduction in the loss from the sale and write down of other real estate owned, a $1.1 million lower provision for loan losses and a $511,000 decrease in non-interest expenses. In addition, higher loan related fees of $137,000, primarily from an SBA loan sale and the sale of residential first mortgage loans, contributed to improved earnings, as did lower income tax expenses of $25,000. Net interest income increased $118,000 while deposit account related and other fee income decreased $16,000.
The increase of $118,000 in net interest income was due to a $128,000 increase in interest and fees from loans and a $44,000 decrease in interest expense, primarily resulting from a decrease of interest expense on deposits. These positive results were partially offset by a $54,000 reduction in interest earned from investments.
The increase of $128,000 in interest and fees from loans was due primarily to a $3.1 million increase in the average loan balances outstanding for the nine months ended September 30, 2015 as compared to the nine months ended September 30, 2014. The yield from the loan portfolio also increased from 4.94% to 4.96%. The decrease of $44,000 in interest expense was due primarily to a $7.5 million decrease in the average deposit balances outstanding for the nine months ended September 30, 2015 as compared to the nine months ended September 30, 2014. The decrease in interest earned from investments was due primarily to a $6.2 million decrease in the average investment balance outstanding, as the bank sold securities primarily to fund the growth in loans.
The $511,000 decrease in non-interest expense for the nine months ended September 30, 2015 as compared to the nine months ended September 30, 2014 was due primarily to a $158,000 decrease in legal expense related to the Bank’s ongoing troubled asset reduction plan, a $94,000 decrease in professional fees primarily related to fees incurred in 2014 in complying with the terms of the Bank’s Consent Order, a $93,000 reduction in compensation expense, a $36,000 decrease in miscellaneous expenses, a $45,000 decrease in expenses related to other real estate owned, a $33,000 decrease in equipment expenses due to reduced equipment maintenance costs, a $31,000 decrease in occupancy expense due to lower real estate taxes, a $42,000 reduction in loan related expenses and a $25,000 decrease in insurance expense primarily due to lower deposit insurance premiums. In addition, director fees, correspondent bank expense, and printing and supplies expenses declined $30,000, $5,000, and $15,000, respectively. Partially offsetting these positive variances, information technology expense increased $46,000 as the Bank outsourced some data processing functions, communication related expenses increased $29,000 as the Bank improved its communications network, and auditing expenses increased $18,000.
Net interest margin for the nine months ended September 30, 2015 was 3.54%, an increase of 0.24% from the 3.30% net interest margin for the nine months ended September 30, 2014. The improvement in the net interest margin resulted from an improvement of 0.22% in the yield generated from interest-earning assets coupled with a reduction of 0.02% in the rate paid for interest bearing deposits and borrowings.
Total assets at September 30, 2015 were $144.5 million, representing a decrease of $3.6 million from $148.1 million at December 31, 2014. The decrease was due primarily to reduction in cash and cash equivalents of $4.8 million caused primarily by a $3.6 million reduction in deposits discussed below and the need to fund the Bank’s $5.3 million increase in net loans from $101.7 million at December 31, 2014 to $107.0 million at September 30, 2015. In addition, investment securities decreased $1.8 million (also largely in order to fund loan growth), other real estate owned decreased $1.8 million, bank premises and equipment decreased $221,000 and other assets decreased $252,000.
The total deposits decrease of $3.6 million to $131.8 million at September 30, 2015 from $135.4 million at December 31, 2014, was primarily due to a $5.4 million decrease in non-interest bearing accounts, offset in part by a $1.8 million increase in interest bearing accounts.
The increase in interest-bearing deposit accounts of $1.8 million was due primarily to certificates of deposit which increased $2.0 million from $52.1 million at December 31, 2014 to $54.1 million at September 30, 2015. Interest bearing checking accounts, including money market accounts, decreased $922,000 and savings accounts increased $728,000.
At September 30, 2015, our adversely classified loans totaled $7.4 million which represents a decrease of $284,000 since December 31, 2014. Other real estate owned totaled $2.7 million at September 30, 2015, a decrease of $1.8 million from December 31, 2014.
Set forth below is certain selected balance sheet and income statement data at September 30, 2015 and December 31, 2014 and for the three and nine months ended September 30, 2015 and 2014.
SELECTED BALANCE SHEET DATA
(Unaudited, in thousands) September 30, December 31,
2015
2014
Cash and cash equivalents $ 13,546 $ 18,343
Investment securities 17,959 19,805
Net loans receivable 107,028 101,683
Total assets 144,542 148,141
Deposits 131,780 135,421
Shareholders’ equity 9,192 8,904
Capital Ratios:
Common Equity Tier 1 Capital to Risk Weighted Assets
8.59 % N/A
Leverage Capital 6.43 % 6.28 %
Tier 1 Capital to Risk Weighted Assets 8.59 % 8.89 %
Total risk based capital 9.84 % 10.14 %
SELECTED INCOME STATEMENT DATA
(Unaudited, in thousands except per share data)
Quarter ended September 30,
Nine months ended September 30,
2015
2014
2015
2014
Net interest income $ 1,209 $ 1,077 $ 3,628 $ 3,510
Provision for loan losses 30 927 40 1,137
Other Non-interest income 245 117 552 329
Loss on sale and write-down of ORE 43 167 43 561
Other expenses 1,305 1,540 3,995 4,506
Provision for income taxes 0 10 2 27
Net income $ 76 $ (1,450 ) $ 100 $ (2,392 )
Earnings per share:
Basic $ 0.01 $ (0.17 )
Diluted $ 0.01 $ (0.18 )
Liberty Bell Bank is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through two locations in Burlington County, New Jersey and one location in Camden County, New Jersey.
http://investors.libertybellbank.com/Mobile/file.aspx?IID=4089241&FID=31863466
Liberty Bell Bank Announces Community Stock Offering and Signing of Stock Purchase Agreement with Kenneth R. Lehman (4/11/14)
Liberty Bell Bank (OTCQB:LBBB) today reported that it has entered into a stock purchase agreement with Kenneth R. Lehman, a private investor and current holder of approximately 16.85% of the Bank’s outstanding common stock. Pursuant to this stock purchase agreement, Mr. Lehman has agreed to purchase, simultaneously with the closing of the Bank’s pending stock offering, and subject to certain limitations, at the subscription price of $1.00 per share, up to 2,900,000 shares of the Bank’s common stock.
President and CEO Kevin Kutcher stated, “This Agreement with Ken Lehman is part our $5 million capital raise that we commenced today. We are also offering 2.1 million shares at $1.00 per share to our shareholders and the local community pursuant to an Offering Circular that is currently being distributed, and we anticipate a short offering period. We may close as soon as all available shares are subscribed, which we anticipate will be before May 12, 2014. The completion of this capital raise will allow us to be in compliance with all of the provisions of the Consent Orders issued to us by our regulators last fall.” He added, “We are very excited that we have the support of our largest shareholder Ken Lehman, a successful and well-respected community bank investor, as we continue positioning ourselves for a prosperous future. The net capital from these two transactions will go a long way toward helping us emerge from a difficult economy and challenging business climate. In addition to improving our capital ratios, we intend to use this net capital to accelerate the resolution of problem assets and to support future growth through the strengthening of our infrastructure. Also, we hope to add Mr. Lehman to our Board of Directors after the completion of these transactions. We believe his background and experience will be invaluable to our Board and management.”
Under the stock purchase agreement, the number of shares Mr. Lehman can purchase is limited so as to prevent an “ownership change” under Section 382 of the Internal Revenue Code of 1986. The number of shares that Mr. Lehman will purchase increases depending on the number of shares sold in the offering. If 2,100,000 shares are sold in the offering, Mr. Lehman would purchase 2,900,000 shares pursuant to his agreement. The agreement contains other provisions limiting the ability of Mr. Lehman and other large shareholders’ (holding 2% or more of the Bank’s common stock) to acquire additional shares over the next three years, in order to prevent such an “ownership change.” Such a change would adversely affect the Bank’s future ability to use its federal net-operating loss carry-forwards of $10.3 million.
The agreement contains standard representations, warranties and covenants by both parties. Mr. Lehman has also agreed to certain voting limitations with respect to shares of common stock he acquires after the closing of this transaction. In addition, the Bank is granting to Mr. Lehman preemptive rights with respect to any shares of common stock that may be issued by the Bank in the three-year period following the closing date, which will enable him to maintain his proportionate common stock-equivalent interest in the Bank. The agreement also provides that after the closing Mr. Lehman may identify problem assets with a carrying value of up to $9.0 million and the Bank is required to adopt an asset resolution plan, approved by Mr. Lehman, to accelerate its strategy with respect to such assets. This plan will provide for the disposition, work-out or other resolution of the problem assets within 18 months after the closing date, based upon the additional capital raised.
The issuance of the Bank’s common stock to Mr. Lehman and in the pending stock offering is subject to approval by the New Jersey Department of Banking and Insurance.
Liberty Bell Bank is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through two locations in Burlington County, New Jersey and one location in Camden County, New Jersey.
http://www.reuters.com/article/2014/04/11/nj-liberty-bell-bank-idUSnBw115831a+100+BSW20140411
LBBB keeps on inching it's way in the right direction. It appears that the bank has made a "whopping" 26K for the year.
Liberty Bell Bank Reports Fourth Quarter 2014 Results of Operations (3/30/15)
MARLTON, N.J.--(BUSINESS WIRE)--Liberty Bell Bank (OTCQB:LBBB) today reported a net loss of $1.6 million or $(0.19) per diluted share for the three months ended December 31, 2014, compared to a net loss of $656,000 or $(0.20) per diluted share for the same period in 2013. For the year ended December 31, 2014, the Bank had a $3.9 million net loss, or $(0.60) per diluted share, compared to a net loss of $3.0 million or $(0.89) per diluted share for 2013. At December 31, 2014, the Bank had total assets of $148.2 million, total deposits of $135.4 million, total capital of $8.9 million, and was adequately capitalized by all regulatory measures.
The loss of $1.6 million in the last quarter of 2014 was due primarily to the recording of a valuation provision expense of $540,000 for other real estate owned to reflect the decreased fair market value of such properties and an additional provision for loan losses of $620,000 in order to replenish reductions in the allowance for loan losses caused by the charge-off of $538,000 of loans which management determined to be uncollectable.
The Bank’s President and Chief Executive Officer, Benjamin Watts, indicated “the Bank completed efforts to identify and recognize losses on the remaining portfolio of troubled assets. We believe that the Bank is now well positioned for growth and profitability as we continue to meet the financial needs of the communities we serve.”
The $902,000 increase in the Bank’s quarterly loss as compared to the three months ended December 31, 2013 was due primarily to an increase of $389,000 in the provision for loan and lease losses and the $540,000 valuation provision expense described above. In addition, in the three months ended December 31, 2014, net interest income decreased $130,000, non-interest expenses increased $85,000, and the Bank sustained a loss from the sale of securities of $14,000, as compared to the three months ended December 31, 2013. These negative variances were partially offset by a $57,000 increase in non-interest income, a net decrease in losses from the write-down and sale of other real estate owned of $174,000 and an income tax benefit of $25,000.
The decrease of $130,000 in net interest income for the three months ended December 31, 2014 as compared to the three months ended December 31, 2013 was due to a $211,000 decrease in interest income partially offset by a $81,000 reduction in interest expense, $50,000 of which resulted from the Bank’s payoff of its $5.0 million advance from the Federal Home Loan Bank of New York in December 2013 and $31,000 of which resulted from a decline in interest expense on deposits due to balance and rate decreases. The decrease in interest income was due primarily to a decrease of $173,000 in interest from loans and a decrease of $39,000 in interest earned from investments.
The decrease of $173,000 in interest from loans was due primarily to a decrease of $12.0 million in average loan balances outstanding for the three months ended December 31, 2014 as compared to the three months ended December 31, 2013. In addition, the yield from the loan portfolio decreased 7 basis points from 5.06% to 4.99%. The reduction in average loan balances was due primarily to pay-downs and pay-offs of commercial loans. The decrease of $36,000 in interest on investments, including overnight fed funds sold, was due primarily to a $7.3 million decrease in the average balances outstanding from $43.0 million to $35.7 million. In addition, the yield from the investment portfolio decreased by 14 basis points from 1.29% to 1.15%.
The $85,000 increase in non-interest expense was due primarily to an increase of $107,000 in compensation expenses as the Bank hired a Senior Credit Officer to strengthen the credit administration function. In addition, marketing expenses increased $13,000 and other operating expenses increased $27,000. Partially offsetting these negative variances, occupancy and equipment expense decreased $43,000 and expenses related to other real estate owned decreased $19,000.
The $27,000 increase in other operating expenses was due primarily to audit and other professional expense, which increased $82,000 primarily due to the resolution of problem assets. In addition, FDIC deposit insurance expense increased $12,000, other miscellaneous fees (including loan workout expenses) increased $59,000, and directors fees of $21,000 were paid. Directors were not paid a fee in 2013. Other operating expenses for the fourth quarter of 2013 included a $151,000 prepayment penalty related to the early pay off of a Federal Home Loan Bank advance.
Net interest margin for the fourth quarter of 2014 was 3.37%, an increase of 0.09% from the 3.28% net interest margin for the fourth quarter of 2013. The margin increase was mainly the result of a 0.10% reduction in the rate paid for interest-bearing liabilities partially offset by a 0.04% lower yield from interest earning assets.
The Bank’s net loss of $3.9 million for 2014 was $953,000 greater than the loss for the year ended December 31, 2013. This increase was due primarily to a $637,000 decrease in net interest income from $5.3 million to $4.6 million for 2013 and 2014, respectively. In addition, losses from the sale or write-down of other real estate owned increased $301,000, the valuation provision expense of $540,000 for other real estate owned was recorded in 2014 and the Bank incurred losses from the sale of investment securities of $14,000 in 2014 as compared to a gain of $183,000 in 2013. Also, non-interest expenses increased $444,000 from $5.7 million for 2013 to $6.1 million for 2014. These negative variances were partially offset by a reduction of $1.0 million in the provision for loan losses from $2.8 million for 2013 to $1.8 million for 2014 and a $134,000 increase in non-interest income due primarily from service charges on deposit accounts and other fees.
The decrease of $637,000 in net interest income for 2014, as compared to 2013, was due to a $1.0 million decrease in interest income, partially offset by a $396,000 reduction in interest expense. The decrease in interest income was due primarily to a decrease of $920,000 in interest from loans and a decrease of $114,000 in interest earned from investments. The decrease in interest expense primarily resulted from a $202,000 decrease of interest expense paid on the advance from the Federal Home Loan Bank and a decrease of $194,000 of interest paid on deposits.
The decrease of $920,000 in interest from loans was due primarily to the average loan balances outstanding for 2014 as compared to 2013 decreasing by $14.1 million and a 19 basis point reduction of the yield from the loan portfolio from 5.14% to 4.95%. The decrease of $114,000 in interest earned from investments was due primarily to a decrease of $2.9 million in the average balance outstanding from $40.9 million to $38.0 million.
The $444,000 increase in non-interest expense for 2014 as compared to 2013 was due primarily to a $219,000 increase in compensation expense due primarily to staff additions in the credit administration function. In addition, expenses related to other professional services increased $283,000, primarily due to legal expenses associated with the attempt to recover losses associated with the check kite in 2013. FDIC assessments for deposit insurance increased $55,000, expenses associated with other real estate owned increased $20,000 and marketing expense increased $14,000. Partially offsetting these expense increases, expenses related to equipment decreased $13,000, occupancy expense decreased $123,000 primarily due to the closure of our Mount Laurel office in June of 2013, and other operating expense decreased $11,000.
Net interest margin for 2014 was 3.32%, a decrease of 0.04% from the 3.36% net interest margin for 2013. The margin decrease was mainly the result of a 0.22% lower yield from interest-earning assets partially offset by a 0.18% reduction in the rate paid for interest-bearing liabilities.
Total assets at December 31, 2014 were $148.2 million, representing a decrease of $9.7 million from $157.9 million at December 31, 2013. The decrease was due primarily to net loans which decreased $8.4 million and investment securities which decreased $5.2 million. In addition, due to our problem asset remediation and expense reduction efforts, other real estate owned decreased $1.7 million, other assets held for sale decreased $342,000 and fixed and other assets decreased $412,000 from December 31, 2013. These decreases were partially offset by cash and cash equivalents which increased $6.3 million from $12.1 million at December 31, 2013 to $18.3 million at December 31, 2014. The reduction in loans was due primarily to the pay down and pay off of commercial loans.
Total deposits decreased $11.5 million to $135.4 million at December 31, 2014 from $146.9 million at December 31, 2013. The decrease was primarily due to a $14.6 million decrease in interest bearing deposits partially offset by a $3.1 million increase in non-interest bearing deposits.
The Bank continues to increase non-interest bearing deposit accounts. Total non-interest bearing deposit accounts at December 31, 2014 were $23.1 million as compared to $20.1 million at December 31, 2013. The growth in non-interest bearing deposits continues to be from the Bank’s local market area.
The decrease in interest-bearing deposit accounts of $14.6 million was due primarily to a $7.2 million decrease in certificates of deposit, our highest cost deposits, from $59.3 million at December 31, 2013 to $52.1 million at December 31, 2014. Interest bearing checking accounts, which include money market accounts, decreased $6.9 million and savings accounts decreased $470,000.
Total capital increased $1.8 million from $7.1 million at December 31, 2013 to $8.9 million at December 31, 2014. The increase was due primarily to a common stock offering of 5,000,000 shares at $1.00 per share which closed on May 12, 2014. The increase in capital resulting from the stock offering was partially offset by the net loss for 2014 of $3.9 million. The Bank also benefited from a $937,000 decrease in accumulated other comprehensive loss primarily from a decrease in the unrealized loss in the mark-to-market of securities available for sale at December 31, 2014. The unrealized losses are due primarily to changes in market interest rates and are not actual losses. The “mark to market” loss on Treasury and similar securities do not reflect a risk for loss of principal. Investment securities are primarily held for revenue and collateral purposes.
At December 31, 2014, our criticized/classified loans totaled $7.7 million, a decrease of $2.3 million from $10.0 million of criticized/classified loans at December 31, 2013. Other real estate owned decreased $1.7 million from $6.2 million at December 31, 2013 to $4.5 million at December 31, 2014.
[tables deleted]
Liberty Bell Bank is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through two locations in Burlington County, New Jersey and one location in Camden County, New Jersey.
http://www.businesswire.com/news/home/20150330005596/en/Liberty-Bell-Bank-Reports-Fourth-Quarter-2014#.VRlONoktGUk
I hope things begin to turn around for LBBB in 2015. The bank managed to get itself "blasted" in 2014.
Liberty Bell Bank Reports Third Quarter 2014 Results of Operations and a Management Reorganization (10/20/14)
MARLTON, N.J.--(BUSINESS WIRE)--Liberty Bell Bank (OTCQB:LBBB) today reported that the Bank continues to meet all required regulatory capital levels. The Bank also reported that efforts to complete its Troubled Asset Resolution Plan continued during the third quarter of 2014. Primarily as a result of these efforts the Bank reported a net loss of $1.45 million or $(0.18) per diluted share for the three months ended September 30, 2014, compared to net income of $39,000 or $0.01 per diluted share for the same period in 2013. The net loss for the nine months ended September 30, 2014 was $2.39 million or $(0.42) per diluted share, compared to a net loss of $2.34 million or $(0.76) per diluted share for the same period in 2013.
The Bank also announced several management changes designed to strengthen its business development efforts and streamline its operations. Effective November 14, 2014: President and CEO Kevin L. Kutcher moves to Vice Chairman and Director of Corporate and Business Development; Chief Financial Officer Benjamin F. Watts moves to President and CEO; Senior Vice President/Finance Dennis Costa moves to Chief Financial Officer and Kenneth R. Lehman, the Bank’s largest shareholder, becomes a member of its Board of Directors.
“Having successfully completed a $5 million capital raise earlier this year, the Bank has made a concerted effort to use the offering proceeds to clean up its balance sheet through the adoption of its Troubled Asset Resolution Plan and to substantially increase its business development activity so that we may once again focus our efforts on the Bank’s growth,” said Chairman Bill Dunkelberg. “Mr. Watts and Mr. Kutcher have worked as a team for years and have the experience and expertise to rebalance their efforts to further enhance our growth opportunities. We have made significant progress in cleaning up the problems we have faced from the recession and the multi-bank check kite. We will use the fourth quarter to finish the cleanup and look forward to starting 2015 with more normal operations and a year of profitability,” he concluded.
On the addition of Mr. Lehman to the Board of Directors, Chairman Dunkelberg stated, “We are very pleased that Ken Lehman has accepted our request to serve on our Board. We are delighted that he has chosen to invest in us and his substantial banking expertise will greatly assist our Board going forward.”
The loss of $1.45 million in the third quarter of 2014 was due primarily to:
• write down and loss on the sale of other real estate owned of $167,000,
• an additional provision for loan losses of $927,000 to replenish our allowance for loan losses after reductions resulting from charge-offs of problem loans,
• a $135,000 increase in compensation expense due to additional hires to enhance our business development initiative,
• additional legal expenses of $110,000 related to the troubled asset portfolio,
• $36,000 of expenses associated with our other real estate owned,
• miscellaneous reductions in interest income totaling $70,000 recognized in the second quarter of 2014,
• $23,000 in professional fees to support development of a regulatory compliance plan and a strategic plan, and
• expenses of $11,000 incurred to perform maintenance and address environmental issues on properties serving as collateral for non-accrual loans.
For the quarter ended September 30, 2014, the Bank increased its provision for loan losses by $918,000 from the same period in 2013. In addition, the Bank’s net interest income decreased by $254,000, as compared to the three months ended September 30, 2013. This was due to a $355,000 decrease in interest and dividend income, partially offset by a $101,000 reduction in interest expense from decreased interest on deposits and borrowings. The decrease in interest and dividend income was due primarily to a decrease of $313,000 in interest and fees from loans and by a decrease of $42,000 in interest earned from investments.
The decrease of $313,000 in interest and fees from loans was due primarily to a 43 basis point reduction of the yield from the loan portfolio from 5.13% to 4.70%. The reduction in yield was due primarily to the reversal of $70,000 of accrued interest on loans that were placed on non-accrual during the quarter. In addition, the average loan balances outstanding for the three months ended September 30, 2014 as compared to the three months ended September 30, 2013 decreased by $15.8 million. The reduction in average loan balances was due primarily to pay-downs and pay-off of commercial mortgage loans and other commercial loans.
The Bank’s losses from the sale of other real estate increased by $160,000 during the quarter ended September 30, 2014, and non-interest expense increased by $180,000, over the third quarter of 2013. The $180,000 increase in non-interest expense was due primarily to a $135,000 increase in compensation expense, a $11,000 increase in expenses related to other real estate owned and a $73,000 increase in other operating expenses. These variances were partially offset by a reduction in occupancy expense of $34,000 primarily due to closing a branch office in 2013. In addition, marketing expense decreased $5,000. The increase in other operating expense was due primarily to an increase in legal expense of $42,000, audit and consulting fees of $3,000, printing and supplies expense of $2,000 and loan related expenses of $26,000.
Net interest margin for the third quarter of 2014 was 3.06%, a decrease of 0.27% from the 3.33% net interest margin for the third quarter of 2013. The decline in the net interest margin resulted primarily from a reduction of 0.45% in the yield generated from interest-earning assets partially offset by a reduction of 0.15% in the rate paid for interest bearing deposits.
For the nine months ended September 30, 2014 compared to the same period in 2013, the Bank decreased its provision for loan losses by $1.4 million, net-interest income decreased by $507,000, losses from other real estate owned increased by $659,000 and non-interest expense increased by $384,000 from $4.1 million for the nine months ended September 30, 2013 to $4.5 million for the nine months ended September 30, 2014.
The decrease of $507,000 in net interest income was due to a $822,000 decrease in interest and dividend income, partially offset by a $315,000 reduction in interest expense, primarily resulting from a decrease of interest on deposits and reduced borrowings from the Federal Home Loan Bank. The decrease in interest and dividend income was due primarily to a decrease of $747,000 in interest and fees from loans and a decrease of $75,000 in interest earned from investments.
The decrease of $747,000 in interest and fees from loans was due primarily to a 23 basis point reduction of the yield from the loan portfolio from 5.17% to 4.94%. In addition, the average loan balances outstanding for the nine months ended September 30, 2014 as compared to the nine months ended September 30, 2013 decreased by $14.8 million. The decrease of $75,000 in interest earned from investments was due primarily to a 21 basis point reduction of the yield.
The $384,000 increase in non-interest expense for the nine months ended September 30, 2014 as compared to the nine months ended September 30, 2013 was due primarily to a $299,000 increase in other operating expense, a $111,000 increase in compensation expenses and a $40,000 increase in expenses related to other real estate owned, as well as a $25,000 increase in income tax expense. Partially offsetting these negative variances, occupancy expense and equipment expense decreased $88,000 and $4,000, respectively. The $299,000 increase in other operating expense was due primarily to an increase in legal expenses of $111,000, audit and consulting fees of $87,000, insurance expense of $66,000 and loan related expenses of $46,000 and miscellaneous expense increased $15,000 offset by a reduction in communication expense of $29,000.
Total assets at September 30, 2014 were $148.7 million, representing a decrease of $9.2 million from $157.9 million at December 31, 2013. The decrease was due primarily to net loans which decreased $9.7 million; securities which decreased $1.1 million; other real estate owned which decreased $939,000; bank premises and equipment which decreased $164,000 and other assets which decreased $374,000 from December 31, 2013. These decreases were partially offset by cash and cash equivalents which increased $3.1 million. The reduction in loans was due primarily to the pay down and pay off of commercial loans.
Total deposits decreased $12.5 million to $134.4 million at September 30, 2014 from $146.9 million at December 31, 2013. The decrease was primarily due to a $475,000 decrease in non-interest bearing accounts and a $12.0 million decrease in interest bearing accounts.
The decrease in interest-bearing deposit accounts of $12.0 million was due primarily to a decrease in certificates of deposit, our highest cost deposits, which decreased $5.4 million from $59.3 million at December 31, 2013 to $53.9 million at September 30, 2014. Interest bearing checking accounts, including money market accounts, decreased $6.3 million and savings accounts decreased $315,000.
Total capital increased $3.2 million from $7.1 million at December 31, 2013 to $10.2 million at September 30, 2014. The increase was due primarily to a common stock offering of 5,000,000 shares at $1.00 per share which closed on May 12, 2014.
At September 30, 2014, our criticized/classified loans totaled $8.0 million, which represents a decrease of $967,000 since December 31, 2013. Other real estate owned totaled $5.3 million at September 30, 2014, a decrease of $939,000 from $6.3 million at December 31, 2013.
[tables deleted]
Liberty Bell Bank is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through two locations in Burlington County, New Jersey and one location in Camden County, New Jersey.
http://www.businesswire.com/news/home/20141120005645/en/Liberty-Bell-Bank-Reports-Quarter-2014-Results#.VG6MnIl0yUk
LBBB just took it on the rear with a steel toed boot. The bank lost 2,365,000 for the 3rd quarter.
Salty,
Thank you.Let's see if the bank was profitable last quarter.
I just spoke with LBBB. The bank never took the first cent of TARP. Assuming the 3rd quarter is positive, a significant rise in pps could occur.
The BV is down, now 2.13 compared to 3.46 a short while back, but I think LBBB just might be one to consider. I don't see any evidence of TARP funds being taken but I will call the bank today to make sure that that is the case. I'll let you know what they say.
LBBB took it on the chin for the 1st quarter. The bank lost 449K.
Salty. I would not be surprised, if LBBB is profitable next quarter.
"Our core operations are producing net profits and we expect this to continue going forward as we resolve remaining problem assets."
The BV for LBBB is $3.46.
Check-Kiting Scam Sinks Earnings at Liberty Bell Bank
by Andy Peters
JUL 30, 2013 12:24pm ET
Liberty Bell Bank (LBBB) in Marlton, N.J., said it has been victimized by a check-kiting incident, which widened its loss in the second quarter.
The $174 million-asset bank said it took a loan chargeoff of $2.1 million, or 60 cents per share, in the quarter, as a result of the check kiting. Its net loss for the quarter was $2.6 million, or 77 cents per share, compared with a loss of $796,000, or 26 cents, a year earlier.
Liberty Bell said it has not finalized the final amount of its losses from the incident, "which may be significantly less than the amount we had to recognize for financial accounting purposes," William Dunkelberg, chairman, said in a statement issued Monday. Liberty is "actively pursuing all means" to recover the funds from the commercial customer, which are secured by receivables from U.S. government-related agencies, he said.
Other banks have been victimized in the same check-kiting case, Liberty Bell said without identifying the other banks. Roma Financial (ROMA) in Robbinsville, N.J., recently reported a second-quarter loss of $1.1 million, partly as a result of the check-kiting scheme perpetrated by a commercial client. The New Jersey Department of Banking and Insurance did not immediately respond to a request for comment.
"There were several banks involved in a very complex fraud, and we believe all banks sustained substantial losses," Dunkelberg said.
In an unrelated incident, Liberty Bell's co-founder and former chairman, Michael Kwasnik, was indicted in November 2011 by a state superior court in New Jersey on charges that he stole more than $1 million from a 96-year-old woman in Cherry Hill, N.J., after she hired him to form a family trust. Kwasnik later defaulted on a loan from Beneficial Mutual Bancorp (BNCL) in which Liberty Bell stock was pledged as collateral. Beneficial obtained a stake in Liberty Bell after the default and later sold the shares to a private investor.
The bank was doing fairly well up until it got that kick in the gut.
Liberty Bell Bank Reports Second Quarter 2013 Results of Operations
MARLTON, N.J.--(BUSINESS WIRE)--Liberty Bell Bank (OTCQB:LBBB) today reported net loss of $2.6 million or $(0.77) per diluted share for the three months ended June 30, 2013, compared to a net loss of $796,000 or $(0.26) per diluted share for the same period in 2012, an increased loss of $1.8 million or $(0.51) per diluted share. The net loss for the six months ended June 30, 2013 was $2.4 million or $(0.71) per diluted share, compared to a net loss of $761,000 or $(0.25) per diluted share for the same period in 2012. At June 30, 2013, the Bank is adequately capitalized by all regulatory measures.
“We are vigorously pursuing the collection of the loss we sustained from the check kiting activities of our customer”
.
The loss for the three months ended June 30, 2013 is primarily due to the Bank being a victim of a check kiting scheme by one of its commercial deposit and loan customers. As a result of this check kiting, the Bank recognized approximately $2.1 million ($.60 per diluted share) as a loan charge-off. The Bank is aggressively pursuing collection of the loss; however, the timing and potential results of these efforts are uncertain.
In addressing the check kiting scheme, the Bank’s Chairman, William C. Dunkelberg stated: “There were several banks involved in a very complex fraud, and we believe all banks sustained substantial losses. To this point, we are uncertain as to the exact magnitude of our loss which may be significantly less than the amount we had to recognize for financial accounting purposes. The Bank is actively pursuing all means to recover these monies. Any recovered monies will be reported in future releases. Until the investigation is complete, no other relevant details can be reported.”
The increase in the Bank’s quarterly net loss of $1.8 million over the same period in 2012 was due primarily to an increase in the provision for loan losses of $1.9 million. The increased provision was needed to rebuild the Bank’s allowance for loan losses after the $2.1 million charge off. In addition, net interest income decreased $82,000 and non-interest income decreased $24,000. These negative variances were partially offset by a decrease of $180,000 in non-interest expense from $1.6 million for the three months ended June 30, 2012 to $1.4 million for the three months ended June 30, 2013.
The decrease of $82,000 in net interest income for the three months ended June 30, 2013 as compared to the three months ended June 30, 2012 was due to a $190,000 decrease in interest and dividend income partially offset by a $108,000 reduction in interest expense, primarily from a decrease of interest on deposits. The decrease in interest and dividend income was due primarily to a decrease of $232,000 in interest and fees from loans, offset partially by an increase of $42,000 in interest earned from investments.
The decrease of $232,000 in interest and fees from loans was due primarily to a 41 basis point reduction of the yield from the loan portfolio from 5.48% to 5.07%. In addition, the average loan balances outstanding for the three months ended June 30, 2013 as compared to the three months ended June 30, 2012 decreased by $8.4 million. The reduction in average loan balances was due primarily to pay-downs and pay-off of commercial loans. The increase of $42,000 in interest on investments was due primarily to an increase in the average balance outstanding of $12.4 million from $27.1 million to $39.5 million.
The $180,000 decrease in non-interest expense was due primarily to a $62,000 reduction in compensation expense, a $73,000 reduction in expenses related to other real estate owned and a $26,000 reduction in equipment expense.
Net interest margin for the second quarter of 2013 was 3.33%, a decrease of 0.32% from the 3.65% net interest margin for the second quarter of 2012. The margin decrease was mainly the result of a 0.62% lower yield from interest-earning assets partially offset by a 0.30% reduction in the rate paid for interest-bearing deposits.
The $1.6 million increase in the Bank’s net loss for the six months ended June 30, 2013 over the same period in 2012 was due primarily to an increase in the provision for loan losses of $1.8 million for the reason described above. In addition, net interest income decreased by $176,000. These negative variances were partially offset by an increase of $115,000 in non-interest income and a decrease of $247,000 in non-interest expense from $3.0 million for the six months ended June 30, 2012 to $2.8 million for the six months ended June 30, 2013.
The decrease of $176,000 in net interest income for the six months ended June 30, 2013 as compared to the six months ended June 30, 2012, was due to a $408,000 decrease in interest and dividend income, partially offset by a $233,000 reduction in interest expense, primarily resulting from a decrease of interest on deposits. The decrease in interest and dividend income was due primarily to a decrease of $503,000 in interest and fees from loans, offset partially by an increase of $95,000 in interest earned from investments.
The decrease of $503,000 in interest and fees from loans was due primarily to a 43 basis point reduction of the yield from the loan portfolio from 5.62% to 5.19%. In addition, the average loan balances outstanding for the six months ended June 30, 2013 as compared to the six months ended June 30, 2012 decreased by $8.5 million for the reasons discussed above. The increase of $95,000 in interest earned from investments was due primarily to an increase in the average balance outstanding of $11.3 million from $27.4 million to $38.7 million.
The $247,000 decrease in non-interest expense for the six months ended June 30, 2013 as compared to the six months ended June 30, 2012 was due primarily to a $95,000 reduction in compensation expense due to staff reductions. In addition, expenses related to other real estate owned decreased $56,000, insurance expensed decreased $69,000 and audit expense decreased $24,000 primarily due to the Bank’s deregistration as a public company. Expenses related to equipment decreased $57,000 as computer equipment and software were fully amortized. Partially offsetting these positive variances, legal and professional fees increased $60,000.
Net interest margin for the first six months of 2013 was 3.42%, a decrease of 0.29% from the 3.71% net interest margin for the first six months of 2012. The margin decrease was mainly the result of a 0.60% lower yield from interest-earning assets partially offset by a 0.31% reduction in the rate paid for interest-bearing liabilities.
Total assets at June 30, 2013 were $173.8 million, representing a decrease of $554,000 from $174.3 million at December 31, 2012. The decrease was due primarily to cash and cash equivalents, which decreased $2.2 million and net loans which decreased $4.4 million from December 31, 2012. These decreases were partially offset by investments which increased $5.1 million, other assets which increased $600,000, and other real estate owned which increased $402,000 from $5.6 million at December 31, 2012 to $6.1 million at June 30, 2013. The reduction in loans was due primarily to the pay down and pay off of commercial loans. Excess cash was invested in the securities portfolio with the purchase of primarily government and agency bonds.
Total deposits increased $3.1 million to $157.9 million at June 30, 2013 from $154.8 million at December 31, 2012. The increase was primarily due to a $5.8 million increase in non-interest bearing accounts offset by a $2.7 million decrease in interest bearing accounts.
The Bank continues to increase non-interest bearing deposit accounts. Total non-interest bearing deposit accounts at June 30, 2013 were $21.2 million as compared to $15.4 million at December 31, 2012. The growth in non-interest bearing deposits continues to be from the Bank’s local market area.
The decrease in interest-bearing deposit accounts of $2.7 million was due primarily to a decrease in certificates of deposit, our highest cost deposits, which decreased $1.4 million from $68.8 million at December 31, 2012 to $67.4 million at June 30, 2013. Money Market accounts decreased $567,000 and interest bearing checking accounts decreased $852,000.
Total capital decreased $3.6 million from $11.6 million at December 31, 2012 to 8.0 million at June 30, 2013. The decrease was due to the net loss for the first six months of 2013 of $2.4 million and the shift from an unrealized gain in the mark-to-market of securities available for sale of $337,000 at December 31, 2012 to an unrealized loss of $887,000 at June 30, 2012. The shift to an unrealized loss is due primarily to the sudden increase in interest rates during the second quarter of 2013. These are not actual losses, but “mark to market” losses on Treasury and similar securities that are not at risk for a loss of principal but are held for collateral purposes.
At June 30, 2013, our criticized/classified assets totaled $11.4 million which includes $2.6 million of loans associated with the commercial customer who perpetrated the check kiting scheme. These loans are secured by receivables from U.S. government related agencies, and management believes they are ultimately collectible. Without these loans, our criticized/classified assets totaled $8.7 million, substantially the same as at December 31, 2012, but $7.0 million less than the $15.6 million in such assets at December 31, 2011. Other real estate owned increased $402,000 from $5.6 million at December 31, 2012 to $6.1 million at June 30, 2013.
“We are vigorously pursuing the collection of the loss we sustained from the check kiting activities of our customer,” said CEO Kevin Kutcher, adding, “We continue to see positive activity that is giving us reasonable and justifiable optimism that we will see further reduction of problem loans and assets, primarily left over from the recession. Our core operations are producing net profits and we expect this to continue going forward as we resolve remaining problem assets. We are vigorously pursuing the overdraft issue and hold a portfolio of government loans associated with that overdraft that continues to produce revenue. Our cost of funds continues to decline which supports our net interest margin in a very difficult rate environment. As the economy continues to improve, we hope to resolve the bulk of the recession-related loan problems by the end of the year.”
Set forth below is certain selected balance sheet and income statement data at June 30, 2013 and December 31, 2012 and for the three and six months ended June 30, 2013 and 2012.
SELECTED BALANCE SHEET DATA
(Unaudited, in thousands)
June 30,
December 31,
2013
2012
Cash and cash equivalents
$
17,070
$
19,319
Investment securities
26,740
21,655
Net loans receivable
118,074
122,508
Total assets
173,774
174,328
Deposits
157,077
154,811
Shareholders’ equity
7,975
11,572
SELECTED INCOME STATEMENT DATA
(Unaudited, in thousands except per share data)
Quarter ended
Quarter ended
Six months end
Six months end
June 30,
June 30,
June 30,
June 30,
2013
2012
2013
2012
Net interest income
$
1,326
$
1,408
$
2,686
$
2,862
Provision for loan losses
2,542
680
2,551
740
Gain on sale of securities
26
0
183
0
Recovery of Fraud Loss
0
151
0
151
Other Non-interest income
91
128
179
244
Loss on write-down of ORE
75
213
77
227
Other expenses
1,401
1,581
2,787
3,033
Provision for income taxes
6
9
12
18
Net income
$
(2,581
)
$
(796
)
$
(2,379
)
$
(761
)
Earnings per share:
Basic
$
(0.77
)
$
(0.26
)
Diluted
$
(0.77
)
$
(0.26
)
Capital Ratios:
Leverage Capital
5.08
%
7.59
%
Total risk based capital
8.21
%
10.70
%
Liberty Bell Bank is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC).
The Bank provides diversified financial products through two locations in Burlington County, New Jersey and one location in Camden County, New Jersey. The Bank closed its Mount Laurel branch on June 15, 2013.
The Bank may from time to time make written or oral “forward-looking statements”, including statements contained in this release. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, taxation, technology and market conditions. Actual results may differ materially from such forward-looking statements, and no undue reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, unanticipated changes in the financial markets and the direction of interest rates; volatility in earnings due to certain financial assets and liabilities held at fair value; stronger competition from banks, other financial institutions and other companies; insufficient allowance for credit losses; a higher level of net loan charge-offs and delinquencies than anticipated; material adverse changes in the Bank’s operations or earnings; a decline in the economy in our primary market areas; changes in relationships with major customers; changes in effective income tax rates; higher or lower cash flow levels than anticipated; inability to hire or retain qualified employees; a decline in the levels of deposits or loss of alternate funding sources; a decrease in loan origination volume; changes in laws and regulations, including issues related to compliance with anti-money laundering and the bank secrecy act laws; adoption, interpretation and implementation of new or pre-existing accounting pronouncements; operational risks, including the risk of fraud by employees and customers; the inability to successfully implement new lines of business or new products and services .and other factors, many of which are beyond the Bank's control. The words “may”, “could”, “should”, “would”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan”, and similar expressions are intended to identify forward-looking statements. All such statements are made in good faith by the Bank pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Bank does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Bank.
Contacts
Liberty Bell Bank
Benjamin F. Watts, 856-830-1135
Recent Stories
Salty,LBBB was robbed without a gun.
The loss for the three months ended June 30, 2013 is primarily due to the Bank being a victim of a check kiting scheme by one of its commercial deposit and loan customers. As a result of this check kiting, the Bank recognized approximately $2.1 million ($.60 per diluted share) as a loan charge-off. The Bank is aggressively pursuing collection of the loss; however, the timing and potential results of these efforts are uncertain.
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