LBBB Lakeshore Acquisition II Corporation

Liberty Bell Bank (Nasdaq:LBBB) today announced that results of operations for the year 2007 improved 103% over 2006. The Bank reported a net profit of $35,358, or $.01 per share, for 2007 compared to a net loss of $1,444,754 for 2006 or ($0.54) per share, an improvement of $0.55 per share. Other highlights for the year include: Total loans increased 31% to $101.4 million, a growth of $23.9 million over year-end 2006. Total deposits increased 23% to $111.0 million, a growth of $21.0 million over year-end 2006. Total Assets increased 22% to $132.5 million, a growth of $23.9 million over year-end 2006. Net Interest Margin for the year 2007 increased to 3.19% or 30 basis points over 2.89% for the year 2006. Net Interest Income of $3.5 million increased $713,000 or 25% over 2006. Asset quality, at year-end, remains strong with no adversely classified credits, no non-accrual loans and no material delinquencies �We are now clearly a growth AND income story,� stated President and CEO Kevin Kutcher. He added, �We have successfully emerged through the vulnerable initial three year period for start-up banks, and we did so in what has been a very difficult time for banks. We strategically invested in our future by establishing three full service offices in our first few years. While this delayed profitability, we believe our deposit, loan, asset and income increases and trends confirm the wisdom of that investment.� Chairman of the Board, Bill Dunkelberg added, �We have progressed through the inevitable period of break-even and with full expectation of sustained earnings, we are most proud of our asset quality. Our loan portfolio is in excellent condition and we have absolutely no exposures to the sub-prime related mess that currently plagues many of the big banks. We are a �main street� organization not suffering the ills of �Wall Street.� Our shareholders should rest easy knowing their investment is in an organization that is well capitalized, growing safely and soundly and well positioned to advance on its strategy of being a pre-eminent community bank. It�s all about people, and we have the best.� President Kevin Kutcher added, �We believe our stock price is unjustifiably depressed by a market perception that all banks are struggling with sub-prime and other credit quality related issues. This makes absolutely no sense to us. Liberty Bell Bank has a very high quality loan portfolio evidenced by our extremely low delinquency history and the fact that we have no adversely classified loans. We are developing a great franchise with branch locations in three of southern New Jersey�s most highly sought after business and residential communities. We believe that we are exceedingly well positioned to leverage the strong foundation we�ve built. We are in the right places at the right time with the right people in place to take advantage of the opportunities in our market place. These opportunities abound given the sale of the largest banking franchise headquartered in our market area, as well as the retrenchment or consolidation of other banks operating in our market. We believe the profitable growth we�ve seen most recently evidences the potential for Liberty Bell Bank and validates the establishment early in our development of our three locations. We think this is a great time to be Liberty Bell Bank and that the future is bright for our shareholders.� Liberty Bell Bank is a New Jersey chartered commercial bank that commenced operations in August 2003 and 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" 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 December 31, 2007 and 2006 � � � � 2007 � � � 2006 � � Assets � Cash due from banks $ 2,508,526 $ 2,275,642 Federal funds sold � 3,355,000 � � � - � Cash and cash equivalents 5,863,526 2,275,642 Investment securities available for sale, at fair value 20,061,756 24,232,962 Loans (net of allowance for loan losses of $811,950 and $736,950 as of December 31, 2007 and 2006, respectively) 100,559,806 76,687,340 Bank premises and equipment, net 4,813,415 4,518,555 Accrued interest receivable and other assets � 1,225,156 � � � 956,469 � Total assets $ 132,523,659 � � $ 108,670,968 � � Liabilities and Shareholders' Equity � Liabilities Deposits Noninterest-bearing demand $ 8,758,547 $ 5,387,620 Interest-bearing � 102,277,093 � � � 84,626,724 � Total deposits 111,035,640 90,014,344 Short term borrowings - 5,000,000 Long term borrowings � 7,500,000 � � � - � Total borrowings 7,500,000 5,000,000 Accrued interest payable and other accrued liabilities � 437,798 � � � 435,548 � Total liabilities � 118,973,438 � � � 95,449,892 � Commitments and Contingencies Shareholders' Equity Common stock, $5 par value, 5,000,000 shares authorized; Issued and outstanding 2,690,593 shares at December 31, 2007 and 2006 13,452,965 13,452,965 Additional paid-in capital 7,178,575 7,129,328 Accumulated deficit (7,109,457 ) (7,144,815 ) Accumulated other comprehensive loss � 28,138 � � � (216,402 ) Total shareholders' equity � 13,550,221 � � � 13,221,076 � Total liabilities and shareholders' equity $ 132,523,659 � � $ 108,670,968 � Liberty Bell Bank Statements of Operations Years Ended December 31, 2007 and 2006 � � � 2007 � � 2006 � � � Interest Income Interest and fees on loans $ 6,520,148 $ 4,703,185 Interest and dividends on securities 1,157,219 1,334,601 Interest on deposits with banks 6,093 16,236 Interest on federal funds sold � 47,718 � � 34,826 � Total interest income � 7,731,178 � � 6,088,848 � � Interest Expense Interest on deposits 3,600,589 2,688,471 Interest on borrowings � 598,955 � � 582,063 � Total interest expense � 4,199,544 � � 3,270,534 � � Net interest income 3,531,634 2,818,314 Provision for Loan Losses � 75,000 � � 220,000 � Net interest income after provision for loan losses � 3,456,634 � � 2,598,314 � � Noninterest Income (Loss) Service charges on deposit accounts 47,136 24,397 Other income 106,811 45,619 Loss on sale of fixed assets - - Loss on sale of investment securities available for sale � - � � (311,128 ) Total noninterest income (loss) � 153,947 � � (241,112 ) � Noninterest Expenses Compensation and benefits 1,922,305 2,086,823 Occupancy 545,067 525,242 Equipment and data processing 361,096 382,272 Marketing and business development 117,734 170,623 Professional services 267,023 294,752 Other operating expenses � 361,998 � � 317,644 � Total noninterest expenses � 3,575,223 � � 3,777,356 � � Income (Loss) Before Income Tax Expense 35,358 (1,420,154 ) � Income Tax Expense � - � � 24,600 � � Net Income (Loss) $ 35,358 � $ (1,444,754 ) � Net Income (Loss) Per Common Share, Basic and Diluted $ 0.01 � $ (0.54 ) � Weighted Average Shares Outstanding, Basic � 2,690,593 � � 2,690,553 � � Weighted Average Shares Outstanding, Diluted � 2,750,473 � � 2,690,553 �