Liberty Bell Bank Reports First Quarter 2014 Results of Operations

MARLTON, N.J.--()--Liberty Bell Bank (OTCQB:LBBB) today reported a net loss of $449,000 or ($0.13) per diluted share for the three months ended March 31, 2014, compared to net income of $202,000 or $0.06 per diluted share for the same period in 2013, a decrease of $651,000 or ($0.19) per diluted share. Despite the loss, total capital only decreased $45,000 from $7.1 million at December 31, 2013 to $7.0 million at March 31, 2014, as our unrealized loss from securities available for sale decreased from $1.2 million at December 31, 2013 to $774,000 at March 31, 2014. At March 31, 2014, the Bank remains adequately capitalized by all regulatory measures.

The loss of $449,000 in the first quarter of 2014 was due primarily to:

  • write-downs on other real estate owned of $142,000,
  • a loss of $38,000 on the sale of other real estate owned,
  • an additional provision for loan losses of $143,000 to replenish our allowance for loan losses after its reduction to absorb a loss of $180,000 related to the sale of property securing a non-accrual loan of $1.0 million,
  • additional legal expenses of $102,000 related to the loan relationship with the customer who perpetrated the large check kite against the Bank in 2013,
  • $67,000 of nonrecurring expense associated with our other real estate owned, and
  • miscellaneous reductions in interest income totaling $19,000 recognized in the first three months of 2014.

The $651,000 increase in the Bank’s quarterly loss as compared to the three months ended March 31, 2013 was due primarily to a reduction of $131,000 in net-interest income, and the expenses described above. In addition, the Bank did not recognize any gain on the sale of investment securities during the first quarter of 2014 as compared to $156,000 for the first quarter of 2013. Finally, non-interest income decreased $13,000 and non-interest expense increased $39,000 for the first three months of 2014 as compared to the first three months of 2013.

“Our first quarter 2014 results are substantially consistent with our projections, except that when we budgeted 2014 we anticipated that our pending $5 million common stock offerings would be completed in the first quarter,” said Kevin L. Kutcher, President and CEO. He continued, “This would have potentially allowed us some different accounting treatment of a loss associated with the disposition of one of our classified assets and for certain other expenses associated with classified assets. The good news is that we decreased our problem (classified) assets by approximately $1 million. However, the small loss associated with its accelerated disposition ahead of the completion of the stock offerings resulted in additional expense/loss that would have been covered by the proceeds anticipated from the offerings.”

Set forth below are certain selected balance sheet and income statement data at March 31, 2014 and December 31, 2013 and for the three months ended March 31, 2014 and 2013. The Bank’s full press release with more detailed discussion and analysis of its financial condition and results of operations and the Bank’s unaudited financial statements at and for the three months ended March 31, 2013 is available on the Bank’s website at www.libertybellbank.com under Investor Relations – LBB News.

         
SELECTED BALANCE SHEET DATA
(Unaudited, in thousands)

March 31,

December 31,

2014

2013

 
Cash and cash equivalents $ 11,788 $ 12,072
Investment securities 24,870 24,966
Net loans receivable 108,671 110,039
Total assets 155,975 157,871
Deposits 145,438 146,888
Shareholders’ equity 7,024 7,069
 
         
SELECTED INCOME STATEMENT DATA
(Unaudited, in thousands except per share data)
 
Quarter ended Quarter ended
March 31, March 31,

2014

2013

 
Net interest income $ 1,229 $ 1,360
Provision for loan losses 143 9
Gain on sale of securities 0 156
Other non-interest income 74 88
Loss on sale/write-down of OREO 180 1
Other expenses 1,422 1,386
Provision for income taxes 9 6
Net income $ (449 ) $ 202
 
Earnings per share:
Basic $ (0.13 ) $ 0.06
Diluted $ (0.13 ) $ 0.06
Capital Ratios:
Leverage Capital 4.99 % 6.66 %
Total risk based capital 8.14 % 10.26 %
 

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; 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”, “project”, “strategy”, “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
Chief Financial Officer
856-830-1135

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Contacts

Liberty Bell Bank
Benjamin F. Watts
Chief Financial Officer
856-830-1135