Liberty Bell Bank Reports Agreements With Regulators Business Wire MARLTON, N.J. -- December 9, 2013 Liberty Bell Bank (OTCQB:LBBB) today announced that on November 12, 2013, its Board of Directors consented to the issuance of consent orders (the “Consent Orders”) by the Federal Deposit Insurance Corporation (the “FDIC”) and the State of New Jersey Department of Banking and Insurance (the “Department of Banking”). These Consent Orders were issued by the FDIC on November 14, 2013 and by the Department of Banking on November 18, 2013, and require the Bank to take certain actions in connection with an April 2013 regulatory examination of the Bank. Pursuant to the Consent Orders, the Bank is required to, among other things, subject to review and approval by the FDIC and the Department of Banking: (i) analyze and assess the Bank’s management, staffing performance and needs; (ii) eliminate assets classified as “Loss” in the April 29, 2013 Report of Examination; (iii) formulate a written plan to reduce the Bank’s risk position in each classified asset greater than $250,000; (iv) adopt and implement a plan to reduce and manage one concentration of credit identified by the FDIC and the Department of Banking; (v) revise, if and as necessary, its policy and methodology for determining the allowance for loan and lease losses; (vi) formulate a capital plan to meet and maintain the following minimum capital levels: (a) Tier 1 Capital at least equal to 6% of total assets; (b) Tier 1 risk-based capital at least equal to 8% of total risk-weighted assets, and (c) Total risk-based capital at least equal to 10% of total risk-weighted capital; (vii) revise its contingency funding plan to strengthen the Bank’s funds management procedures; (viii) update and revise the Bank’s profit and budget plan; (ix) not accept brokered deposits and (x) establish a compliance committee to ensure compliance with the provisions of the Consent Orders. The Consent Orders also require the Bank to obtain the prior approval of the FDIC and the Department of Banking before declaring or paying any dividend or appointing or changing the title or responsibilities of any director or senior executive officer. Additional regulatory provisions require FDIC and Department of Banking approval before the Bank enters into any employment agreement or other agreement or plan providing for the payment of a “golden parachute payment” or the making of any golden parachute payment. Each of the Consent Orders will continue until terminated by the FDIC or the Department of Banking, respectively. “We are cooperating fully with representatives from the FDIC and the Department of Banking, and we view our relationship with the FDIC and the Department of Banking and compliance with the terms of the Consent Orders as a collaborative prescription for the continued financial strength of the Bank,” said President and CEO Kevin Kutcher, who added “we have already made significant progress toward meeting the terms and provisions of the Consent Orders. Specifically, we have, during the second quarter of 2013, already eliminated the assets classified as ‘Loss’ in the April 29, 2013 Report of Examination and we have formulated and submitted our written plan to reduce the Bank’s risk position in each classified asset greater than $250,000. Additionally, our written plan addressing the reduction of risk in classified assets also addresses the one cited credit concentration. We have revised our Contingency Funding Plan and are in the process of completing the update and revisions to our budget and profit plans through the year 2016.” CEO Kutcher concluded noting, “Liberty Bell Bank’s focus on serving the needs of its local community and its community-based businesses remains paramount. We opened in 2003 and soon found ourselves working through the most challenging economy since the Great Depression. We did not participate in the TARP program and took no other government assistance during this period. We continue our positioning to capitalize on the solid foundation we built during this most difficult economic period.” Board of Directors Chairman William C. Dunkelberg said, “The Board’s active oversight will continue through the Board Consent Order Compliance Committee appointed at our November Board meeting. We are working closely with management to address all provisions of the Consent Order with the goal of expeditiously having the Consent Order satisfied and ended. We are actively preparing a new capital offering that will be effective shortly and completed within the first quarter of 2014. We already have investors interested in contributing $4 million in new capital, including a substantial amount from our Board of Directors, and we plan to raise $5 million in total. We believe that with our progress addressing the provisions of the Consent Order along with a completed capital offering, we will be in position to have the Consent Order satisfied and lifted in conjunction with our next regular regulatory examination expected in the first half of 2014, if not before.” Chairman Dunkelberg concluded adding, “We anticipate that with a successful capital raise and with continuing progress reducing our problem assets as we’ve seen recently, we will be well positioned to resume and build upon the profitable operations recently reported for the Bank’s 3rd quarter 2013 results.” Liberty Bell Bank is a full-service, state-chartered commercial bank, whose deposits are insured by the 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”, “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. Contact: Liberty Bell Bank Benjamin F. Watts Chief Financial Officer (856) 830-1135
Liberty Bell Bank Reports Agreements With Regulators
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