CAPE BANCORP, INC. REPORTS SECOND QUARTER 2011 RESULTS

Cape May Court House, New Jersey, July 29, 2011 Cape Bancorp, Inc. (“Cape Bancorp” or the “Company”) (NASDAQ: “CBNJ”), the parent company of Cape Bank, announces its operating results for the quarter ended June 30, 2011.

For the quarter ended June 30, 2011, Cape Bancorp reported net income of $617,000 or $.05 per common and fully diluted share, compared to net income of $699,000, or $.06 per common and fully diluted share for the second quarter ended June 30, 2010. The current quarter reflects the recognition of a $1.8 million gain on the sale of bank premises, with the remaining gain of $1.6 million, to be recognized evenly over the initial three-year period. The loan loss provision for the second quarter of 2011 totaled $3.9 million compared to $1.7 million for the second quarter ended June 30, 2010. Net interest income declined $523,000 to $8.6 million in the second quarter ended June 30, 2011 from $9.1 million in the second quarter of 2010, primarily resulting from the year-over-year decrease in the commercial loan portfolio. The second quarter of 2010 included an other-than-temporary-impairment (OTTI) charge of $514,000 compared to no OTTI charge in the second quarter of 2011. During the second quarter of 2011, the Company recorded net losses on the sale of other real estate owned (OREO) of $63,000 compared to net losses of $17,000 recorded in the second quarter ended June 30, 2010. Total non-interest expense declined $379,000 from the second quarter of 2010 as a result of lower salary and benefits costs ($271,000), lower loan related expenses ($191,000) and reduced equipment expenses ($123,000). These reductions were partially offset by increases in professional services, OREO expenses and other operating expenses. The net interest margin

decreased 16 basis points to 3.55% for the quarter ended June 30, 2011 from 3.71% for the quarter ended June 30, 2010.

Net income for the six month period ended June 30, 2011 totaled $8.9 million, or $.72 per common share and $.71 per fully diluted share, primarily as a result of the reversal of $7.7 million, or $.62 per share, of the deferred tax asset valuation allowance. This compares to $1.3 million, or $.11 per common and fully diluted share for the six months ended June 30, 2010. The six months ended June 30, 2011 included a provision for loan losses of $6.3 million, an OTTI charge of $211,000, loan related expenses of $717,000, OREO expenses of $262,000 (which included a $77,000 write-down of OREO properties), and net gains on the sale of investment securities totaling $148,000. The six month period ended June 30, 2010 included an OTTI charge of $3.1 million, a provision for loan losses of $2.0 million, net gains on the sale of OREO of $248,000, loan related expenses of $840,000, and OREO expenses totaling $437,000 (which included a $226,000 write-down of OREO properties).

Cape Bancorp’s total assets at June 30, 2011 totaled $1.068 billion, an increase of $6.7 million from the December 31, 2010 level of $1.061 billion.

Total net loans decreased to $755.3 million at June 30, 2011, from $772.3 million at December 31, 2010, a decrease of $17.0 million, or 2.20%. This change is the result of a decrease in commercial loans of $12.8 million, a decrease in mortgage loans of $1.4 million and a decrease in consumer loans of $2.0 million. The allowance for loan losses increased $794,000 from $12.5 million at December 31, 2010 to $13.3 million at June 30, 2011. The allowance for loan loss ratio increased to 1.73% of gross loans at June 30, 2011 from 1.60% of gross loans at December 31, 2010. The allowance for loan losses to non-performing loan coverage ratio increased to 28.97% at June 30, 2011 from 28.84% at December 31, 2010.

Delinquent loans increased $5.8 million to $40.5 million, or 5.27% of total gross loans at June 30, 2011 from $34.7 million or 4.43% of total gross loans at December 31, 2010. At June 30, 2011, the Company had $46.0 million in non-performing loans or 5.99% of total gross loans, an increase of $2.5 million from $43.5 million, or 5.54% of total gross loans, at December 31, 2010. Included in non-performing loans are troubled debt restructurings totaling $11.7 million at June 30, 2011 and $11.8 million at December 31, 2010 that were performing in accordance with their repayment terms.

OREO increased $1.4 million from $3.3 million at December 31, 2010 to $4.7 million at June 30, 2011, which consisted, of ten commercial properties and one residential property. During the three months ended June 30, 2011, the Company sold four residential OREO properties with an aggregate carrying value totaling $382,000. The Company recorded net losses on the sale of OREO of $63,000 in the second quarter of 2011 compared to net losses of $17,000 recorded in the second quarter of 2010. For the six months ended June 30, 2011, the Company sold five residential OREO properties and four commercial OREO properties with an aggregate carrying value of $1.3 million. For the six month period ended June 30, 2011, net gains of $63,000 recorded in the first quarter were offset by net losses of $63,000 recorded in the second quarter. This compares to net gains on OREO sales for the six months ended June 30, 2010 of $248,000. For the three month period ended June 30, 2011, the Company added three commercial and two residential properties to OREO with aggregate carrying values of $967,000 and $205,000, respectively.

Cape Bancorp’s total investment securities portfolio increased $14.3 million, or 9.06%, to $171.7 million at June 30, 2011 from $157.4 million at December 31, 2010 resulting from the reinvestment of the cash proceeds from the sale of the bank premises on May 31, 2011, cash flows generated from the loan portfolio and a $4.6 million increase in the fair market value of available-for-sale securities.

At June 30, 2011, Cape Bancorp’s total deposits increased $29.4 million, or 3.91% to $782.5 million from $753.1 million at December 31, 2010. The Company’s total borrowings decreased to $134.0 million at June 30, 2011 from $169.6 million at December 31, 2010, a decrease of $35.6 million, or 21.0%.

Cape Bancorp’s total equity increased to $144.5 million at June 30, 2011 from $132.2 million at December 31, 2010, an increase of $12.3 million or 9.34%. The increase in equity was primarily attributable to the net income of $8.9 million and a decrease in accumulated other comprehensive loss, net of tax of $3.0 million. At June 30, 2011 tangible book value was $9.13 per share an increase of $.93 per share from December 31, 2010 and an increase of $1.04 from June 30, 2010. Cape Bank continued to maintain its well capitalized status for regulatory purposes.

Michael D. Devlin, President and Chief Executive Officer of Cape Bancorp and Cape Bank, provided the following statement:

We are pleased to announce our seventh consecutive quarter of earnings for the period ending June 30^th. This contributed to the rise in tangible book value, which has increased over a dollar a share, from June 30, 2010, to end the quarter at $9.13. During this quarter, the bank completed the sale of the main office complex, continuing efforts to monetize shareholder value. Additionally, management has maintained focus on troubled credits, keenly aware of the value in working to reduce current levels. Unfortunately, these efforts are impeded by the extraordinarily slow pace of foreclosure in New Jersey. Despite the foreclosure headwinds, we were able to market and sell OREO and return funds to earning assets during 2011. Troubled credits increased in the quarter, but the bank maintains the discipline of prompt and appropriate provisioning and charging off.

The local economy is enjoying the second summer season of ideal weather which has led to strong tourist activity. While revenues don’t appear to be reaching prior peak levels, our customers are relaying that they are enjoying a modest increase over last year’s respectable level of business. This improved business has not yet translated into increased demand for loans. While the bank’s loan pipeline is improving, it is still below levels we had forecasted.

Looking forward, we believe the remainder of the year will be a continuation of business and economic trends seen in the first half of 2011. We expect the favorable yield curve to continue to support the profit model through year end.

SELECTED FINANCIAL DATA
(unaudited)

Cape Bancorp, Inc.

		Six Months Ended								Three Months Ended
		June 30, 2011				June 30, 2010				June 30, 2011				December 31, 2010				June 30, 2010
Statements of Income Data:
Interest income		$	23,603			$	25,394			$	11,491			$	12,220			$	12,829
Interest expense			5,947				7,704				2,921				3,277				3,736
Net interest income			17,656				17,690				8,570				8,943				9,093

		Six Months Ended								Three Months Ended
		June 30, 2011				June 30, 2010				June 30, 2011				December 31, 2010				June 30, 2010
Provision for loan losses			6,311				1,952				3,911				2,844				1,708
Net interest income after provision for loan losses			11,345				15,738				4,659				6,099				7,385
Non-interest income			4,407				(423	)			3,151				1,886				732
Non-interest expense			14,157				14,512				7,039				7,123				7,418
Income (loss) before income taxes			1,595				803				771				862				699
Income tax expense (benefit)			(7,266	)			(531	)			154				—				—
Net income (loss)		$	8,861			$	1,334			$	617			$	862			$	699
Basic Earnings (loss) per share1		$	0.72			$	0.11			$	0.05			$	0.07			$	0.06
Basic Average shares outstanding			12,388,490				12,344,317				12,394,089				12,360,688				12,349,609
Diluted Earnings (loss) per share1		$	0.71			$	0.11			$	0.05			$	0.07			$	0.06
Diluted Average shares outstanding			12,397,409				12,344,317				12,409,282				12,362,065				12,349,609
Shares outstanding			13,313,521				13,313,521				13,313,521				13,313,521				13,313,521
Statements of Condition Data (Period End):
Investments		$	171,664			$	159,702			$	171,664			$	157,407			$	159,702
Loans, net of allowance		$	755,348			$	774,477			$	755,348			$	772,318			$	774,477
Allowance for loan losses		$	13,332			$	11,916			$	13,332			$	12,538			$	11,916
Total assets		$	1,067,751			$	1,072,297			$	1,067,751			$	1,061,042			$	1,072,297
Total deposits		$	782,529			$	786,516			$	782,529			$	753,068			$	786,516
Total borrowings		$	134,040			$	149,033			$	134,040			$	169,637			$	149,033
Total equity		$	144,495			$	130,863			$	144,495			$	132,154			$	130,863
Statements of Condition Data (Average Balance):

		Six Months Ended								Three Months Ended
		June 30, 2011				June 30, 2010				June 30, 2011				December 31, 2010				June 30, 2010
Total interest-earning assets		$	971,437			$	985,357			$	967,937			$	967,580			$	982,826
Total interest-bearing liabilities		$	847,648			$	873,047			$	840,311			$	845,267			$	867,959
Operating Ratios:
ROAA			1.67	%			0.25	%			0.23	%			0.33	%			0.26	%
ROAE			12.83	%			2.05	%			1.73	%			2.55	%			2.13	%
Yield on Earning Assets			4.90	%			5.20	%			4.76	%			5.01	%			5.24	%
Cost of Interest Bearing Liabilities			1.41	%			1.78	%			1.39	%			1.54	%			1.73	%
Net interest margin			3.67	%			3.62	%			3.55	%			3.67	%			3.71	%
Efficiency ratio			69.37	%			71.09	%			70.41	%			67.56	%			71.29	%
Capital Ratios:
Tier 1 Leverage Ratio			9.92	%			9.53	%			9.92	%			9.96	%			9.53	%
Tier 1 Risk-Based Capital Ratio			12.87	%			11.87	%			12.87	%			12.65	%			11.87	%
Total Risk-Based Capital Ratio			14.12	%			13.12	%			14.12	%			13.90	%			13.12	%
Tangible equity/tangible assets			11.63	%			10.27	%			11.63	%			10.51	%			10.27	%
Book value		$	10.85			$	9.83			$	10.85			$	9.93			$	9.83
Tangible book value		$	9.13			$	8.09			$	9.13			$	8.20			$	8.09
Stock price		$	10.00			$	7.15			$	10.00			$	8.50			$	7.15
Price to book value			92.17	%			72.74	%			92.17	%			85.60	%			72.74	%
Price to tangible book value			109.53	%			88.38	%			109.53	%			103.66	%			88.38	%
Quality Ratios:
Non-performing loans to total gross loans			5.99	%			3.72	%			5.99	%			5.54	%			3.72	%
Non-performing assets to total assets			4.82	%			3.11	%			4.82	%			4.41	%			3.11	%
Texas ratio			38.16	%			27.47	%			38.16	%			38.46	%			27.47	%
Allowance for loan losses to non-performing loans			28.97	%			40.74	%			28.97	%			28.84	%			40.74	%
Allowance for loan losses to total gross loans			1.73	%			1.52	%			1.73	%			1.60	%			1.52	%
Net charge-offs to average loans			1.41	%			0.84	%			1.86	%			1.50	%			0.84	%

DELINQUENCY TABLE
(unaudited)

		Delinquency Summary
Period Ending:		6/30/2011
Days		Balances				% total loans				# Loans
31-59			3,163,545				0.41	%			16
60-89			3,380,703				0.44	%			14
90+			33,947,994				4.42	%			106
Total Delinquency:			40,492,242				5.27	%			136
Non-Accrual Other*			12,072,612				1.57	%			11
Total Delinquency and Non-Accrual:			52,564,854				6.84	%			147
Total Loans:		768,680,375
Days		CML				IL				ML
31-59			2,148,616				365,034				649,896
60-89			2,639,722				196,712				544,270
90+			29,179,793				476,037				4,292,163
Total Delinquency:			33,968,131				1,037,783				5,486,329
Non-Accrual Other*			12,072,612
Total Delinquency and Non-Accrual by Type			46,040,743				1,037,783				5,486,329
Total Loans by Type			462,675,081				48,199,752				257,805,542
% of Total Loans in Type			9.95	%			2.15	%			2.13	%
Total Delinquency and Non-Accrual							52,564,854				6.84	%

Period Ending:		12/31/2010
Days		Balances				% total loans				# Loans
31-59			1,869,578				0.24	%			8
60-89			1,085,508				0.14	%			11
90+			31,710,306				4.04	%			114
Total Delinquency:			34,665,392				4.42	%			133
Non-Accrual Other*			11,755,732				1.50	%			7

Period Ending:		12/31/2010
Days		Balances				% total loans				# Loans
Total Delinquency and Non-Accrual:			46,421,124				5.91	%			140
Total Loans:		785,077,120
Days		CML				IL				ML
31-59			1,304,990				163,624				400,964
60-89			93,327				119,376				872,805
90+			26,259,908				795,170				4,655,228
Total Delinquency:			27,658,225				1,078,170				5,928,997
Non-Accrual Other*			11,755,732
Total Delinquency and Non-Accrual by Type			39,413,957				1,078,170				5,928,997
Total Loans by Type			475,680,751				50,183,488				259,212,881
% of Total Loans in Type			8.29	%			2.15	%			2.29	%
Total Delinquency and Non-Accrual							46,421,124				5.91	%

Period Ending:		6/30/2010
Days		Balances				% total loans				# Loans
31-59			838,816				0.11	%			7
60-89			3,729,794				0.47	%			21
90+			24,310,212				3.09	%			87
Total Delinquency:			28,878,822				3.67	%			115
Non-Accrual Other*			4,937,044				0.63	%			11
Total Delinquency and Non-Accrual:			33,815,866				4.30	%			126
Total Loans:		786,392,793
Days		CML				IL				ML
31-59			687,044				—				183,041
60-89			3,099,772				152,586				477,436
90+			18,975,433				623,116				4,680,395
Total Delinquency:			22,762,248				775,702				5,340,872
Non-Accrual Other*			4,937,044				—				—
Total Delinquency and Non-Accrual by Type			27,699,293				775,702				5,340,872
Total Loans by Type			496,552,053				48,395,645				241,445,095

Days		CML				IL				ML
% of Total Loans in Type			5.58	%			1.60	%			2.21	%
Total Delinquency and Non-Accrual							33,815,866				4.30	%

Forward Looking Statements

This press release discusses primarily historical information. However, certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks, as described in our SEC filings, and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company operated, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.

The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions, which may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Further information on factors that could affect Cape Bancorp’s financial results can be found in the filings listed below with the Securities and Exchange Commission.

SEC Form		Reported Period		Date filed with SEC
10K		Year ended December 31, 2010		March 14, 2011
10Q		Quarter ended March 31, 2011		May 4, 2011