MARLTON, N.J.--(BUSINESS WIRE)--

Liberty Bell Bank (LBBB) today reported net income of $202,000 or $0.06 per diluted share for the three months ended March 31, 2013, compared to net income of $35,000 or $0.01 per diluted share for the same period in 2012, an increase of $167,000 or $0.05 per diluted share. The increased earnings are primarily the result of gains on the sale of securities available for sale of $156,000. At March 31, 2013, the Bank remains well capitalized by all regulatory measures.

In addition to gains on the sale of securities available for sale, the increase in earnings also was due to a $67,000 decrease in total non-interest expense, a $51,000 decrease in the provision for loan losses, a $12,000 decrease in write-downs on other real estate owned and a $3,000 decrease in income tax expense. These positive variances were partially offset by reduced net interest income of $94,000 and a decrease in service charges on deposit accounts and other income of $28,000.

The decrease of $94,000 in net interest income for the three months ended March 31, 2013 as compared to the three months ended March 31, 2012, was due to a $219,000 decrease in interest and dividend income partially offset by a $125,000 reduction in interest expense, primarily from a decrease of interest on deposits. The decrease in interest and dividend income was due primarily to a decrease of $271,000 in interest and fees from loans, offset partially by an increase of $54,000 in interest on securities available for sale.

The decrease of $271,000 in interest and fees from loans was due primarily to a 46 basis point reduction of the yield from the loan portfolio from 5.77% to 5.31%. In addition, the average loan balance outstanding for the first three months of 2013 as compared to the first three months of 2012 decreased by $8.5 million. The increase of $54,000 in interest on securities available for sale was due primarily to an increase in the average balance outstanding from $13.3 million to $26.3 million.

Net interest margin for the first quarter of 2013 was 3.51%, a decrease of 0.26% from the 3.77% net interest margin for the first quarter of 2012. The margin decrease was mainly the result of a 0.59% lower yield from interest-earning assets partially offset by a 0.35% reduction in the rate paid for interest-bearing deposits.

Total assets at March 31, 2013 were $172.2 million, representing a decrease of $2.1 million from $174.3 million at December 31, 2012. The decrease was due primarily to cash and cash equivalents, which decreased $6.9 million and net loans which decreased $2.6 million from December 31, 2012. These decreases were partially offset by investments which increased $6.9 million and other assets which increased $297,000. Other real estate owned increased $272,000 from $5.6 million at December 31, 2012 to $5.9 million at March 31, 2013.

Total deposits decreased $2.1 million to $152.7 million at March 31, 2013 from $154.8 million at December 31, 2012. The decrease was primarily due to a $2.4 million decrease in interest-bearing accounts offset by a $374,000 increase in non-interest bearing accounts.

The Bank continues to increase non-interest bearing deposit accounts. Total non-interest bearing deposit accounts at March 31, 2013 were $15.8 million as compared to $15.4 million at December 31, 2012. The growth in non-interest bearing deposits was from the Banks local area market.

The decrease in interest-bearing deposit accounts of $2.4 million was due primarily to a decrease in certificates of deposit, our highest cost deposits, which decreased $3.0 million from $68.8 million at December 31, 2012 to $65.8 million at March 31, 2013.

Originally posted here:

Liberty Bell Bank Reports First Quarter 2013 Results of Operations