LBBB Lakeshore Acquisition II Corporation

Liberty Bell Bank (Nasdaq:LBBB) today announced 14% growth in total assets in the first quarter, led by a 13% increase in its loan portfolio funded through a 16% increase in deposits since year-end. The Bank reported earnings of $2,741 for the first quarter of 2008, as compared to $13,696 for the same period last year. The Bank attributes the decrease largely to increased FDIC insurance assessment rates, as well as an increased loan loss provision commensurate with the growth of its loan portfolio and not due to any quality concerns or increase in loan risk. Highlights for the first quarter 2008 include: Total deposits increased $18 million or 16% since year-end 2007 and are up $45 million or 53% since the first quarter 2007. Total loans increased $13 million or 13% since year-end 2007 and are up $32 million or 40% since March 31, 2007. Net interest income increased $116,121 in the first quarter 2008 versus the first quarter 2007, an increase of 14%. Total non-interest (overhead) expenses increased $77,505, less than 9% over the first quarter 2007. Assets quality remains strong with no material delinquencies, no classified loans and no non-accruing loans. The Bank has had no material loan losses since inception. �The Federal Reserve, in its attempt to address financial market stresses, has cut short-term interest rates by 300 basis points, or three percentage points, which, in turn, substantially reduced our interest income on loans.� said President and CEO Kevin Kutcher. He added, �Nearly all that reduction occurred between September 2007 and March 2008. Even in the face of these dramatic rate reductions, which affect loan income far more rapidly than we can reduce our deposit rates, we are pleased to report a profitable quarter.� Mr. Kutcher continued. �Our loan loss provision of $60,000 in the first quarter of 2008 as compared to $10,000 in the first quarter of 2007 simply reflects the growing size of our loan portfolio and the need from a regulatory and accounting standpoint to maintain necessary and adequate reserves against that portfolio.� �The Bank has no material loan delinquencies and no problem loans of any significant concern, nor are we exposed to any of the sub-prime mess plaguing the large banks,� commented principal accounting officer Dennis Costa, who added, �our FDIC insurance expense was $15,500 for the first quarter of 2008 compared to $2,400 in the first quarter of 2007, due to the FDIC increasing assessment rates during 2007 and the effect of our favorable and strong growth in the deposits on which the assessments are based.� He stated further, �The Bank�s deposits have increased $45 million or 53% since this time last year, understandably and consequently contributing to increased FDIC insurance expense.� Chairman Bill Dunkelberg added, �Our increased FDIC insurance expense and the higher provision expense come largely from our good growth. Absent the drastic measures taken by our friends at the Federal Reserve, we surely would have maintained our upward trend in earnings. For now, we hunker down a bit and continue positioning ourselves with solid core growth to best enjoy the cycle as it begins to reverse itself, hopefully later this year.� Chairman Dunkelberg also noted, �We are most proud of our growing loan portfolio which to date has experienced negligible losses and no material delinquencies, and has no non-accruing loans. We have a very sound loan portfolio with no material concerns � good news for our shareholders and depositors.� Liberty Bell Bank is a New Jersey chartered commercial bank that maintains offices in Cherry Hill, Moorestown, and Evesham Township, New Jersey. Some discussions in this press release may contain forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. We caution the reader to be aware of the speculative nature of "forward-looking statements." Statements that are not historical in nature, including the words "anticipate," "estimate," "should," "expect," "believe," "intend," "look forward," �project� and similar expressions, are intended to identify forward-looking statements. Although these statements reflect management of the Bank's good faith belief based on current expectations, estimates and projections about (among other things) the banking industry and the markets in which the Bank operates, they are not guarantees of future performance. Whether actual results will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties, including but not limited to general economic, market, or business conditions, changes in interest rates, deposit flow, and the cost of funds, and demand for loan products and financial services; changes in the Bank's competitive position; the inability to control and predict certain expenses; changes in the quality or composition of loan and investment portfolios; the Bank's ability to manage growth; the opportunities that may be presented to, and pursued by, the Bank; competitive actions by other entities; stockholder actions beyond management's control; changes in laws or regulations; changes in the policies of federal or state regulators and agencies; and other circumstances, many of which are beyond the Bank's control. Consequently, all of the forward-looking statements made in this release are qualified by these cautionary statements and there can be no assurance that the actual results anticipated by the Bank will be realized, or that they will have the expected consequences to, or effects on, the Bank or the Bank's business or operations. Except as required by applicable law, the Bank does not intend to publish updates or revisions of any forward-looking statements it makes to reflect new information, future events or otherwise. Liberty Bell Bank � � � Balance Sheets March 31, 2008 and December 31, 2007 � � � � � 2008 � � � 2007 � (Unaudited) Assets � Cash and due from banks $ 2,112,764 $ 2,508,526 Federal funds sold � 9,375,000 � � � 3,355,000 � Cash and cash equivalents 11,487,764 5,863,526 Investment securities available for sale, at fair value 19,752,772 20,061,756 Loans (net of allowance for loan losses of $871,950 and $811,950 as of March 31, 2008 and December 31, 2007, respectively) 113,397,702 100,559,806 Bank premises and equipment, net 4,733,683 4,813,415 Accrued interest receivable and other assets � 1,428,5521 � � � 1,225,156 � � Total assets $ 150,800,473 � � $ 132,523,659 � � Liabilities and Shareholders' Equity � Liabilities Deposits Noninterest-bearing $ 7,252,331 $ 8,758,547 Interest-bearing � 121,873,498 � � � 102,277,093 � Total deposits 129,125,829 111,035,640 Borrowings 7,500,000 7,500,000 Accrued interest payable and other accrued liabilities � 349,913 � � � 437,798 � � Total liabilities � 136,975,742 � � � 118,973,438 � � Shareholders' Equity Common stock, $5 par value, 5,000,000 shares authorized; Issued and outstanding, 2,690,593 shares at March 31, 2008 and December 31, 2007, respectively 13,452,965 13,452,965 Additional paid-in capital 7,193,054 7,178,575 Accumulated deficit (7,106,716 ) (7,109,457 ) Accumulated other comprehensive income � 285,428 � � � 28,138 � Total shareholders' equity � 13,824,731 � � � 13,550,221 � Total liabilities and shareholders' equity $ 150,800,473 � � $ 132,523,659 � � Liberty Bell Bank � � Statements of Operations (Unaudited) Three Months Ended March 31, � � � � � � 2008 � � � 2007 � Interest Income Interest and fees on loans $ 1,909,246 $ 1,508,294 Interest and dividends on securities 258,222 306,149 Interest on deposits with banks 728 1,032 Interest on federal funds sold � 19,501 � � � 12,736 Total interest income � 2,187,697 � � � 1,828,211 � Interest Expense Interest on deposits 1,141,861 800,243 Interest on borrowings � 76,748 � � � 175,001 Total interest expense � 1,218,609 � � � 975,244 Net interest income 969,088 852,967 � Provision for Loan Losses � 60,000 � � � 10,000 Net interest income after provision for loan losses � 909,088 � � � 842,967 � Noninterest Income Service charges on deposit accounts 16,350 9,898 Other income � 33,069 � � � 47,638 Total noninterest income � 49,419 � � � 57,536 � Noninterest Expenses Compensation and benefits 525,799 515,333 Occupancy 134,555 136,475 Equipment and data processing 112,274 82,247 Marketing and business development 26,878 24,025 Professional services 57,177 48,962 Other operating expenses � 107,629 � � � 79,765 Total noninterest expenses � 964,312 � � � 886,807 � Income (Loss) Before Income Tax Benefit (5,805 ) 13,696 � Income Tax Benefit � (8,546 ) � � - � Net income $ 2,741 � � $ 13,696 � � Net Income Per Common Share, Basic and Diluted $ 0.00 � � $ 0.01 � Weighted Average Shares Outstanding, Basic � 2,690,593 � � � 2,690,593 Weighted Average Shares Outstanding, Diluted � 2,690,593 � � � 2,694,939 � �