MARLTON, N.J.--(BUSINESS WIRE)--Liberty Bell Bank (OTCBB: LBBB) (the “Bank”) announced today that it has completed its $5 million capital raise. The Bank raised $2.1 million in a community offering and another $2.9 million from private investor Kenneth R. Lehman, and both transactions closed simultaneously. The community offering of 2.1 million shares at $1.00 per share announced on April 11, 2014 was oversubscribed in less than one month. The Bank issued the 2.1 million shares to a total of 64 subscribers. The Bank issued 2.9 million shares to Mr. Lehman, also at $1.00 per share. After offering expenses, the Company has augmented its capital by $4.9 million. The transaction closed effective May 12, 2014 following receipt of regulatory approval from the New Jersey Department of Banking and Insurance.
“Beyond appreciating Mr. Lehman’s confidence in Liberty Bell Bank, as evidenced by the magnitude of his participation in the capital raise and his overall committed investment in the Bank, we are encouraged by and appreciate the significant participation of current shareholders and new investors alike,” said President and CEO Kevin Kutcher, adding, “We have enjoyed meaningful progress in recent months reducing problem assets which, along with this capital, will greatly improve the risk profile and profitability potential of the bank.”
Bank Board Chairman William C. Dunkelberg said, “We have always believed that Liberty Bell Bank has a solid and promising franchise. We have survived some bad luck and tough economic times, and are delighted to see investors agreed and have invested $5 million in new capital to advance our growth and pursue our objectives for the Bank.” He added, “This continues to be a challenging but slowly improving economy; our new capital will allow us to more rapidly put our problem assets to rest and support our growth and return to profitability.”
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”, “will”, “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.