LBBB Lakeshore Acquisition II Corporation

Liberty Bell Bank (Nasdaq:LBBB) today announced that results of operations for the quarter ended June 30, 2007 improved 102% over the second quarter 2006. The bank reported a net profit of $11,000 for the three months ended June 30, 2007 compared to a net loss of $437,000 for the same period in 2006. On a year to date basis, the bank reported earnings for the first six months of 2007 of $25,000, an improvement of $831,000 or 103% when compared to the loss of $806,000 for the same period in 2006. Highlights for the second quarter include: Net interest margin for the quarter was 3.30%, an increase of 7 basis points over the previous quarter and 42 basis points over the second quarter of 2006. Total loans reached $82 million, up 6% over year-end 2006 and an increase of $16 million or 24% over June 30, 2006. Net interest income, before provision for possible loan losses, increased $209,000 or 31% to $880,000 for the three months ended June 30, 2007, as compared to net interest income of $671,000 for the comparable prior year period. Total assets were $115.5 million at June 30, 2007, up $6.8 million or 6% over December 31, 2006. We believe asset quality remains strong with no adversely classified credits and one insignificant ($8,000) loan balance past due 90 days or more. �Our loan pipeline remains strong and we�re experiencing a noticeable increase in activity at our branches as we gain recognition in our market areas. Perhaps some is attributable to displacement occurring in our market with the coming merger of a fairly large local commercial bank into a Pennsylvania based bank, and possibly even some due to recent negative developments at a large locally based regional institution,� stated Kevin Kutcher, President and CEO. Chairman of the Board William C. Dunkelberg added, �In the face of a challenging interest rate environment, we are particularly pleased that our margin continues to improve. Our loan portfolio yield is increasing with our growing loan portfolio, and our deposit mix is improving with core deposit growth in the form of increasing checking account based relationships, which help contain our overall cost of funds.� Liberty Bell Bank is a New Jersey chartered commercial bank that commenced operations in August 2003 and maintains offices in Cherry Hill NJ, Moorestown, NJ and Evesham Township, NJ. 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 June 30, 2007 and December 31, 2006 � � � � 2007 � � 2006 � (Unaudited) Assets � Cash and cash due from banks $ 6,027,406 $ 2,275,642 Federal funds sold � - � � - � Cash and cash equivalents 6,027,406 2,275,642 Investment securities available for sale, at fair value 21,826,675 24,232,962 Loans (net of allowance for loan losses of $761,950 and $736,950 as of June 30, 2007 and December 31, 2006, respectively) 81,694,890 76,687,340 Bank premises and equipment, net 4,501,335 4,518,555 Accrued interest receivable and other assets � 1,422,027 � � 956,469 � � Total assets $ 115,472,334 � $ 108,670,968 � � Liabilities and Shareholders' Equity � � Liabilities Deposits Noninterest-bearing $ 8,634,209 $ 5,387,620 Interest-bearing � 81,879,048 � � 84,626,724 � Total deposits 90,513,257 90,014,344 Borrowed funds 11,600,000 5,000,000 Accrued interest payable and other accrued liabilities � 279,388 � � 435,548 � � Total liabilities � 102,392,645 � � 95,449,892 � � Shareholders' Equity Common stock, $5 par value, 5,000,000 shares authorized; Issued and outstanding, 2,690,593 shares at June 30, 2007 and December 31, 2006, respectively � 13,452,965 13,452,965 Additional paid-in capital 7,152,260 7,129,328 Accumulated deficit (7,120,266 ) (7,144,815 ) Accumulated other comprehensive loss � (405,270 ) � (216,402 ) Total shareholders' equity � 13,079,689 � � 13,221,076 � Total liabilities and shareholders' equity $ 115,472,334 � $ 108,670,968 � Liberty Bell Bank � Statements of Operations Three Months EndedJune 30, Six Months EndedJune 30, � � � 2007 � � 2006 � � 2007 � � 2006 � (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest Income Interest and fees on loans $ 1,577,947 $ 1,070,699 $ 3,086,241 $ 2,007,773 Interest and dividends on securities 300,107 330,664 606,256 635,944 Interest on deposits with banks 2,022 5,110 3,054 13,772 Interest on federal funds sold � 9,631 � � 7,449 � � 22,367 � � 17,852 � Total interest income � 1,889,707 � � 1,413,922 � � 3,717,918 � � 2,675,341 � � Interest Expense Interest on deposits 811,283 636,343 1,611,526 1,203,991 Interest on borrowings � 198,345 � � 106,862 � � 373,346 � � 181,445 � Total interest expense � 1,009,628 � � 743,205 � � 1,984,872 � � 1,385,436 � Net interest income 880,079 670,717 1,733,046 1,289,905 � Provision for Loan Losses � 15,000 � � 55,000 � � 25,000 � � 125,000 � Net interest income after provision for loan losses � 865,079 � � 615,717 � � 1,708,046 � � 1,164,905 � � Noninterest Income Service charges on deposit accounts 12,479 6,152 22,377 13,093 Other income 16,667 12,753 64,305 27,015 � Loss on sale of investment securities available for sale � - � � (129,800 ) � - � � (129,800 ) Total noninterest income � 29,146 � � (110,895 ) � 86,682 � � (89,692 ) � Noninterest Expenses Compensation and benefits 516,966 530,551 1,032,299 1,027,242 Occupancy 125,364 132,004 261,839 265,478 Equipment and data processing 76,991 91,792 159,238 182,659 Marketing and business development 31,401 58,660 55,426 94,894 Professional services 56,769 61,333 105,731 157,449 Other operating expenses � 75,881 � � 67,131 � � 155,646 � � 140,981 � Total noninterest expenses � 883,373 � � 941,471 � � 1,770,180 � � 1,868,703 � � Income (loss) Before Income Tax Expense 10,853 (436,649 ) 24,549 (793,490 ) � Income Tax Expense � - � � - � � - � � 12,600 � � Net income (loss) $ 10,853 � $ (436,649 ) $ 24,549 � $ (806,090 ) � � Net income (loss) Per Common Share, Basic and Diluted $ 0.00 � $ (0.16 ) $ 0.01 � $ (0.30 ) � Weighted Average Shares Outstanding, Basic � 2,690,533 � � 2,690,533 � � 2,690,533 � � 2,690,533 � � Weighted Average Shares Outstanding, Diluted � 2,694,758 � � N/A � � 2,694,758 � � N/A �