Market Overview

Newbridge Bancorp Announces Problem Asset Disposition Plan Successful and Enters Agreements to Raise $56 Million of Capital

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GREENSBORO, N.C.--(BUSINESS WIRE)--

NewBridge Bancorp (NASDAQ: NBBC), parent of NewBridge Bank, today announced that it has accelerated its previously announced problem asset disposition plan (the “Plan”) and has entered into securities purchase agreements with select investors and insiders of the Company pursuant to which it expects to raise $56 million of convertible preferred equity. The Company also reported results for the three month and nine month periods ended September 30, 2012. For the three months then ended, the Company reported a net loss $32.5 million compared to net income of $1.1 million for the quarter ended September 30, 2011. After dividends and accretion on preferred stock, the Company reported net loss to common shareholders of $2.12 per diluted share. The results for the quarter included one-time items of an $11 million valuation allowance against the Company's deferred tax asset and $1.9 million of expense to write down facilities and other assets. For the nine months ended September 30, 2012, the Company reported a net loss of $30.0 million compared to net income of $3.2 million for the same period a year ago. The prior year nine month period benefitted from a one-time gain of $2.0 million on the sale of investment securities.

The Company's financial results were affected by its previously disclosed Plan to accelerate the disposition of problem assets. The Plan objective was to reduce classified assets by $71 million from $149.0 million as measured at March 31, 2012. As of September 30, 2012, the Company had substantially completed this objective. Classified assets declined $46 million during the quarter, totaling $85.0 million at September 30, 2012. Management estimates the Company will exceed the Plan objective by year end. This increase in credit costs is partially reflected through the reduction in problem assets under the Plan, as well as in the higher allowance for credit loss levels. The allowance for credit losses increased $9.8 million in the third quarter to $35.0 million and as a percentage of nonperforming loans from 73% to 126%. The increase in reserves was also attributed to higher general reserve levels principally for homogenous residential and home equity loans resulting from management's review of these portfolios and the subsequent identification of pools of high risk performing loans.

On November 1, 2012, the Company entered into securities purchase agreements with select investors and insiders pursuant to which it expects to raise $56 million of equity, subject to receipt of customary regulatory approvals and determinations. The capital raise will be executed through a private placement of two series of mandatorily convertible preferred stock at a price of $4.40 per share. The two series of preferred stock will automatically convert into shares of NBBC voting and nonvoting, respectively, common stock in the first quarter of 2013 after the Company has received shareholder approval at a Special Meeting of Shareholders expected to be held in the first quarter of 2013.

Pressley A. Ridgill, President and Chief Executive Officer of NewBridge Bancorp, commented: “I am pleased to share the news of our capital raise and to report the positive results from the problem asset disposition plan. Although the implementation of the Plan resulted in what we anticipate will be a temporary impairment of our deferred tax asset, we believe the resolution of our problem assets fortifies our balance sheet and will immediately result in stronger earnings and positions the Company for improved profitability in the coming years. In addition, the new capital enhances the Company's ability to address the $52 million preferred equity held by the U.S. Treasury through the Troubled Asset Relief Program (TARP).”

Mr. Ridgill continued, “Our third quarter operating results remain strong but also reflect some of the challenges we face in this operating environment. The Company's net interest margin declined for the second consecutive quarter on the purging of high risk and high yield loans as well as the ordinary repricing of loans and investments in the low rate environment; liability cost declined but is increasingly limited in its future benefit; personnel expense climbed as the Company expanded its investment in loan production professionals in Charlotte and Raleigh, and certain assets were written down as the Company plans for efficiency improvement over the coming year. The low rate environment and flattening yield curve present unique challenges to our industry. As always, we will meet these challenges thoughtfully by investing in people, reducing costs and planning for disciplined growth.”

Net interest income

Net interest income declined $944,000, or 5.7%, to $15.7 million for the quarter compared to $16.6 million a year ago. Year to date net interest income declined 4.7%, or $2.4 million, to $48.2 million. The Company's net interest margin declined to 4.02% for the quarter compared to 4.20% for the same period last year. The net interest margin for the nine month period ending September 30, 2012 was 4.11%, down from 4.21% for the first nine months of last year. For the nine month period, the average balance of loans declined $111.9 million from the prior year's nine month average, and the average yield on loans declined 24 basis points to 4.95%, resulting in a $6.5 million year to date reduction in interest income from loans. This decline was partially offset by lower interest expense on interest bearing liabilities, which fell by $3.7 million primarily due to a decline in deposit rates, and a higher balance of investment securities, which increased $81 million over the prior year. Interest income on investments increased 3.9% for the year, or $398,000. Yield on the investment portfolio for the three months ending September 30, 2012 declined 92 basis points to 3.44% from 4.36% for the same period a year ago.

The sustained low interest rate environment continues to impact loan yields. The annualized average yield on loans decreased to 4.81% for the three months ended September 30, 2012 compared to 5.18% for the three months ended September 30, 2011. The continuing implementation of the Plan adversely impacted loan yields in two ways: the impairment of performing loans reversed previously accrued interest in prior periods, and the $35.6 million of accruing loans disposed of in the September quarter had a 6.2% average yield, whereas new loans added during the quarter had an average yield of 4.2%.

Balance Sheet

Total assets decreased $34.5 million during the third quarter and $20.7 million for the year to $1.71 billion at September 30, 2012. Loans held for investment increased $6.1 million for the quarter, but declined $31.3 million for the year. Under the Plan, approximately $35.6 million of loans were sold or paid out, and $4.5 million were moved to other real estate owned (“OREO”). During the quarter, $19.1 million of net chargeoffs were recorded. Separately, $25.9 million of loans were purchased, and internal loan growth was $12.5 million during the quarter. During the past nine months, the Company has been actively building its commercial and private banking sales teams in the largest metropolitan areas of North Carolina, including the Piedmont Triad, Wilmington, Raleigh and Charlotte markets. Commercial loan production totaled $178 million for the year to date, an increase of 59% from the prior year period. Cash and cash equivalents decreased $19.2 million for the quarter and $11.3 million for the nine months. Investment securities decreased $1.6 million for the quarter to $387.4 million but have increased $49.6 million since the beginning of the year.

Total deposits declined $59.5 million to $1.39 billion at quarter end. Core deposits, excluding time deposits, declined $33.1 million to $1.01 billion. This decline in core deposits resulted from changes in fee structures targeted at simplifying product offerings and growing fee income and from lower rates being offered to certain deposit customers. The weighted average rate on core deposits declined from 0.26% at June 30, 2012 to 0.17% at September 30, 2012. Time deposit balances decreased $26.3 million during the quarter. For the quarter, the weighted average cost of time deposits declined from 0.62% to 0.55%.

Shareholders' equity decreased $30.2 million during the quarter due primarily to credit related costs of approximately $40 million and the $11 million partial impairment of the Company's deferred tax asset. Comprehensive income increased $2.9 million. Tangible book value declined $1.92 to $5.35.

Noninterest Income

Operating noninterest income, which excludes gains and losses on sales of securities and OREO, totaled $4.2 million for the third quarter of 2012 compared to $4.1 million for the third quarter of 2011. Mortgage revenues increased $337,000, or 85%, to $732,000 for the quarter. The growth in mortgage revenue was partially offset by lower retail banking revenue and a $57,000 decline in wealth management services revenue. While top line wealth management fee income declined, overall year to date profitability increased by $379,000 over 2011. For the respective nine month periods, operating noninterest income totaled $12.2 million and $14.1 million.

Losses on sales and writedowns of OREO totaled $10.6 million for the quarter and $14.6 million for the year to date compared to $799,000 and $3.9 million for the same periods in 2011.

Securities gains totaled $3,000 during the nine months ended September 30, 2012, compared to $2.0 million in gains during the nine months ended September 30, 2011.

Noninterest Expense

Noninterest expense increased $1.7 million from the prior year quarter to $16.5 million, and included $1.9 million of one-time occupancy and other noninterest expense that related to future planned efficiency initiatives. Personnel expense was $344,000 below the prior year level despite the addition of 11 commercial and private bankers during the current year to staff expansion of Raleigh and Charlotte operations.

Asset Quality

Total classified loans decreased 30%, or $32 million, during the quarter. Total classified loans crested later than many of the Company's other credit metrics, rising until the third quarter of 2010. Since then, classified loans have declined 56%, or $93 million. As a percentage of the Bank's tier one capital plus reserves, classified assets declined to 48% from 78% at December 31, 2011 and 93% at September 30, 2010. Nonperforming loans declined 20.1%, or $7.0 million, during the quarter. Nonperforming loans peaked at June 30, 2009 at $64.1 million. Since then, they have declined 56.8%, or $36.4 million. Nonperforming loans represent 2.37% of total loans held for investment. OREO decreased $14.0 million during the quarter to $10.5 million at September 30, 2012, primarily resulting from additional writedowns to estimated liquidation values, which is 43% of the previous carrying value of the properties.

Including OREO, total nonperforming assets decreased $21.0 million to $38.2 million, or 2.23% of total assets, at September 30, 2012. For the third quarter, troubled debt restructured loans totaled $10.9 million of the $27.7 million of nonperforming loans. Accruing restructured loans totaled $4.8 million, and nonaccruing restructured loans totaled $6.1 million.

The allowance for credit losses totaled $35.0 million at September 30, 2012, or 3.00% of loans held for investment. The Company's allowance for credit losses as a percentage of nonperforming loans totaled 126% at September 30, 2012, compared to 73% at June 30, 2012 and 71% at December 31, 2011. The allowance consists of general reserves (93.4%) and specific reserves (6.6%). The confirmed losses from the Company's nonperforming loans have been previously recognized through chargeoffs. Consequently, the Company's allowance for credit losses is generally applicable to inherent losses within the Company's watch list and other performing loans portfolio. Since the current adverse credit cycle began in 2007, the Company has charged off $183.8 million of loans and OREO, or 11.3% of our highest/peak level of loan balances of $1.627 billion at September 30, 2008. The annualized average quarterly net loss percentages over this 23 quarter period for commercial loans, mortgage loans, credit reserves and home equity lines, retail loans and credit cards were 2.16%, 0.77%, 1.67%, 1.91% and 1.44%, respectively.

The Bank is well within the regulatory commercial real estate high concentration guidelines in land acquisition, development and construction (the “AD&C portfolio”) loans, as well as total commercial real estate loans. At September 30, 2012, the Bank's concentration levels were 39.61% and 178.96%, respectively, of total regulatory capital, which compares favorably to the interagency regulatory guidance maximum concentrations of 100% and 300%, respectively. The AD&C portfolio totaled $63 million at September 30, 2012, including $23 million of speculative residential construction and residential acquisition and development. This portfolio is largely graded as classified loans.

Outlook

Mr. Ridgill stated that “as previously discussed, we believe that our decision to accelerate the resolution of our remaining problem assets will result in earnings largely unencumbered by credit costs beginning in the fourth quarter of 2012. We believe there will be continued pressure on the margin in coming quarters, although we believe this will be largely offset by a recently implemented deposit account revenue enhancement strategy, further cost reductions and modest growth in earning assets.”

About NewBridge Bancorp

NewBridge Bancorp is the parent company of NewBridge Bank, a full service state chartered community bank headquartered in Greensboro, North Carolina. The stock of NewBridge Bancorp trades on the Nasdaq Global Select Market under the symbol of “NBBC”.

As one of the largest community banks in the state, NewBridge Bank serves small to midsize businesses, professionals and consumers with a comprehensive array of financial services including retail and commercial banking, private banking, wealth management and mortgage banking. NewBridge Bank has assets of approximately $1.7 billion with 30 banking offices in North Carolina.

Disclosures About Forward Looking Statements

The discussions included in this document and its exhibits may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. For the purposes of these discussions, any statements that are not statements of historical fact may be deemed to be forward looking statements. Such statements are often characterized by the use of qualifying words such as “expects,” “anticipates,” “believes,” “estimates,” “plans,” “projects,” or other statements concerning opinions or judgments of NewBridge and its management about future events. The accuracy of such forward looking statements could be affected by factors including, but not limited to, successful completion of the capital raise described above, receipt of customary regulatory approvals and determinations referenced above, receipt of the shareholder approval referenced above, the financial success or changing conditions or strategies of NewBridge Bancorp's clients or vendors, fluctuations in interest rates, actions of government regulators, the availability of capital and personnel or general economic conditions. Additional factors that could cause actual results to differ materially from those anticipated by forward looking statements are discussed in NewBridge's filings with the Securities and Exchange Commission, including without limitation its annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. NewBridge undertakes no obligation to revise or update these statements following the date of this press release.

FINANCIAL SUMMARY        
 
Three Months Ended September 30, 2012 Three Months Ended September 30, 2011
Average Interest Income/ Average Yield/ Average Interest Income/ Average Yield/
Balance Expense Rate Balance Expense Rate
(Fully taxable equivalent basis, dollars in thousands)
Earning Assets
Loans receivable $ 1,165,080 $ 14,084 4.81% $ 1,234,861 $ 16,121 5.18%
Investment securities 385,750 3,340 3.44% 312,356 3,430 4.36%
Other earning assets 10,430 10 0.38% 32,709 20 0.24%
Total Earning Assets 1,561,260 17,434 4.44% 1,579,926 19,571 4.91%
Non-Earning Assets 153,353 138,492
Total Assets $ 1,714,613 17,434 $ 1,718,418 19,571
 
Interest-Bearing Liabilities
Deposits $ 1,226,510 1,088 0.35% $ 1,254,513 2,252 0.71%
Borrowings 109,185 575 2.10% 117,535 604 2.04%
Total Interest-Bearing Liabilities 1,335,695 1,663 0.50% 1,372,048 2,856 0.83%
Noninterest-bearing deposits 189,979 163,440
Other liabilities 18,442 17,849
Shareholders' equity 170,497 165,081
Total Liabilities and
Shareholders' Equity $ 1,714,613 1,663 $ 1,718,418 2,856
Net Interest Income $ 15,771 $ 16,715
Net Interest Margin 4.02% 4.20%
Interest Rate Spread 3.94% 4.08%
 
 
 
Nine Months Ended September 30, 2012 Nine Months Ended September 30, 2011
Average Interest Income/ Average Yield/ Average Interest Income/ Average Yield/
Balance Expense Rate Balance Expense Rate
(Fully taxable equivalent basis, dollars in thousands)
Earning Assets
Loans receivable $ 1,177,334 $ 43,587 4.95% $ 1,289,198 $ 50,052 5.19%
Investment securities 382,365 10,846 3.79% 301,537 10,443 4.63%
Other earning assets 15,462 30 0.26% 24,359 44 0.24%
Total Earning Assets 1,575,161 54,463 4.62% 1,615,094 60,539 5.01%
Non-Earning Assets 156,290 144,431
Total Assets $ 1,731,451 54,463 $ 1,759,525 60,539
 
Interest-Bearing Liabilities
Deposits $ 1,229,965 4,217 0.46% $ 1,264,579 7,513 0.79%
Borrowings 121,548 1,792 1.97% 150,413 2,220 1.97%
Total Interest-Bearing Liabilities 1,351,513 6,009 0.59% 1,414,992 9,733 0.92%
Noninterest-bearing deposits 192,100 164,047
Other liabilities 19,372 16,657
Shareholders' equity 168,466 163,829
Total Liabilities and
Shareholders' Equity $ 1,731,451 6,009 $ 1,759,525 9,733
Net Interest Income $ 48,454 $ 50,806
Net Interest Margin 4.11% 4.21%
Interest Rate Spread 4.03% 4.09%
FINANCIAL SUMMARY  
 
2012 2011
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
Period-End Balances (Dollars in thousands)
Assets $ 1,713,909 $ 1,748,436 $ 1,745,968 $ 1,734,564 $ 1,702,660
Loans held for investment 1,168,747 1,162,630 1,173,671 1,200,070 1,217,058
Loans held for sale 7,074 5,741 7,676 7,851 6,894
Investment securities 387,376 388,968 394,904 337,811 295,461
Earning assets 1,573,843 1,593,275 1,581,981 1,572,095 1,549,932
Noninterest-bearing deposits 184,942 192,066 211,246 172,351 167,689
Savings deposits 44,990 45,371 44,118 40,876 40,097
NOW accounts 429,792 431,390 444,439 441,292 423,258
Money market accounts 350,189 374,217 383,256 370,773 363,340
Time deposits 379,823 406,153 366,135 393,384 401,287
Interest-bearing liabilities 1,368,768 1,367,905 1,348,722 1,379,799 1,347,756
Shareholders' equity 139,365 169,551 167,046 163,387 167,278
 
Asset Quality Data (Dollars in thousands)
Nonperforming loans:
Commercial nonaccrual loans, not restructured $ 12,411 $ 10,331 $ 17,905 $ 15,773 $ 17,477
Commercial nonaccrual loans which
have been restructured 5,092 8,243 8,116 7,489 9,870
Non-commercial nonaccrual loans, not restructured 4,418 8,195 10,038 9,569 8,789
Non-commercial nonaccrual loans which
have been restructured 1,007 2,616 990 283 133
Total nonaccrual loans 22,928 29,385 37,049 33,114 36,269
Loans past due 90 days or more and
still accruing 6 65 29 14 26
Accruing restructured loans 4,760 5,230 6,633 7,406 7,167
Total nonperforming loans 27,694 34,680 43,711 40,534 43,462
Other real estate owned 10,465 24,491 30,032 30,587 26,469
Total nonperforming assets $ 38,159 $ 59,171 $ 73,743 $ 71,121 $ 69,931
Restructured loans, performing 1,296 2,443 3,101 4,888 4,577
Net chargeoffs 19,096 5,047 4,369 3,153 3,736
Allowance for credit losses 35,016 25,231 27,918 28,844 27,750
Allowance for credit losses to loans held for investment 3.00 % 2.17 % 2.38 % 2.40 % 2.28 %
Nonperforming loans to loans held for investment 2.37 2.98 3.72 3.38 3.57
Nonperforming assets to total assets 2.23 3.38 4.22 4.10 4.11
Nonperforming loans to total assets 1.62 1.98 2.50 2.34 2.55
Net chargeoff percentage (annualized) 6.52 1.73 1.48 1.03 1.20
Allowance for credit losses to nonperforming loans 126.44 72.75 63.87 71.16 63.85
 
Loans identified as impaired $ 22,644 $ 32,955 $ 35,043 $ 32,591 $ 33,827
Other nonperforming loans 5,050 1,725 8,668 7,943 9,635
Total nonperforming loans 27,694 34,680 43,711 40,534 43,462
Performing classified loans 46,842 71,673 75,282 87,959 92,327
Total classified loans $ 74,536 $ 106,353 $ 118,993 $ 128,493 $ 135,789
Other real estate owned 10,465 24,491 30,032 30,587 26,469
Total classified assets $ 85,001 $ 130,844 $ 149,025 $ 159,080 $ 162,258
Classified ratio 48.10 % 63.24 % 72.09 % 77.59 % 79.89 %
Total capital (bank) $ 176,729 $ 206,901 $ 206,723 $ 205,019 $ 203,109
 
Gross loan chargeoffs, and writedowns and losses
on other real estate owned to peak loans
during the credit cycle beginning January 1, 2007: 2007 2008 2009 2010 2011 2012 TOTAL
Gross loan chargeoffs
Commercial $ 5,052 $ 5,046 $ 11,232 $ 9,052 $ 5,045 $ 11,698 $ 47,125
Real estate - construction 825 7,339 12,227 5,379 3,985 7,014 36,769
Real estate - mortgage 1,300 5,012 10,110 7,260 6,822 10,411 40,915
Consumer 2,235 5,071 4,925 2,829 1,358 848 17,266
Other - - - 6,200 1,387 3 7,590
Total gross loan chargeoffs $ 9,412 $ 22,468 $ 38,494 $ 30,720 $ 18,597 $ 29,974 $ 149,665
Other real estate owned writedowns and losses 4,001 3,571 1,294 5,508 5,238 14,571 34,183
Total chargeoffs, writedowns and losses $ 13,413 $ 26,039 $ 39,788 $ 36,228 $ 23,835 $ 44,545 $ 183,848
 
Peak loans at September 30, 2008 $ 1,626,504
Chargeoffs, writedowns and losses to peak loans 11.30 %
FINANCIAL SUMMARY    
 
Three Months Ended September 30 Nine Months Ended September 30
 
2012   2011     2012     2011  
Income Statement Data
(Dollars in thousands, except share data)
Interest income:
Loans $ 14,084 $ 16,121 $ 43,587 $ 50,052
Investment securities 3,247 3,337 10,565 10,167
Other   10     20     30     44  
Total interest income 17,341 19,478 54,182 60,263
Interest expense:
Deposits 1,088 2,252 4,217 7,513
Borrowings from the FHLB 232 275 760 907
Other   343     329     1,032     1,313  
Total interest expense   1,663     2,856     6,009     9,733  
Net interest income 15,678 16,622 48,173 50,530
Provision for credit losses   28,881     3,445     34,684     12,539  
Net interest income after provision for credit losses (13,203 ) 13,177 13,489 37,991
Noninterest income:
Retail banking 2,308 2,457 6,888 7,511
Mortgage banking services 732 395 1,848 1,088
Wealth management services 645 702 1,800 1,873
Gain on sale of investment securities 3 65 3 2,026
Writedowns and loss on sale of real estate
acquired in settlement of loans (10,587 ) (799 ) (14,571 ) (3,871 )
Bank-owned life insurance 326 303 1,171 1,015
Other   171     177     468     592  
Total noninterest income (6,402 ) 3,300 (2,393 ) 10,234
Noninterest expense
Personnel 7,513 7,857 21,800 22,498
Occupancy 2,155 983 4,183 3,043
Furniture and equipment 832 896 2,495 2,784
Technology and data processing 1,039 960 3,074 2,970
Legal and professional 858 664 2,219 2,032
FDIC insurance 444 600 1,326 2,027
Real estate acquired in settlement of loans 479 451 1,002 1,233
Other   3,225     2,482     7,786     7,278  
Total noninterest expense   16,545     14,893     43,885     43,865  
Income (loss) before income taxes (36,150 ) 1,584 (32,789 ) 4,360
Income tax expense (benefit)   (3,700 )   501     (2,771 )   1,125  
Net income (loss) (32,450 ) 1,083 (30,018 ) 3,235
Dividends and accretion on preferred stock   (729 )   (730 )   (2,188 )   (2,189 )
Net income (loss) available to common shareholders $ (33,179 ) $ 353   $ (32,206 ) $ 1,046  
Net income (loss) per share - basic ($2.12 ) $ 0.02 ($2.06 ) $ 0.07
Net income (loss) per share - diluted ($2.12 ) $ 0.02 ($2.06 ) $ 0.06
 
Other Data
 
Return on average assets (7.53 ) % 0.25 % (2.32 ) % 0.25 %
Return on average equity (75.72 ) 2.60 (23.80 ) 2.64
Net yield on earning assets 4.02 4.20 4.11 4.21
Efficiency (excluding OREO items and securities gains) 71.08 69.92 67.83 68.09
Average loans to assets 67.95 71.86 68.00 73.27
Average loans to deposits 82.25 87.09 82.79 90.24
Average noninterest-bearing deposits
to total deposits 13.41 11.53 13.51 11.48
Average equity to assets 9.94 9.61 9.73 9.31
Total capital as a percentage of total risk weighted assets 12.07 14.66 12.07 14.66
Tangible common equity as a percentage
of total risk weighted assets 6.28 8.07 6.28 8.07
INVESTMENT PORTFOLIO        
 
(Dollars in thousands) As of September 30, 2012
Amortized Gross Gross Estimated Average Average
Cost Unrealized gain Unrealized loss Fair value Yield (%) Duration (years)
US Treasury $ 19,999 $ - $ - $ 19,999 0.05 % 0.06
US Agency 36,996 135 - 37,131 1.74 0.41
Mortgage backed securities 23,963 2,569 - 26,532 5.28 2.40
Collateralized mortgage obligations 11,579 252 (1) 11,830 5.66 1.70
Commercial mortgage backed securities 53,960 2,196 (126) 56,030 3.34 3.54
Covered bonds 44,915 3,853 - 48,768 3.68 3.71
Corporate bonds 150,578 4,978 (1,807) 153,749 3.26 3.51
Municipal obligations 18,048 779 - 18,827 6.21 * 4.27
Federal Home Loan Bank stock 7,874 - - 7,874
Other 5,775 861 - 6,636
Total $ 373,687 $ 15,623 $ (1,934) $ 387,376 3.35 * 2.93
 
* Fully taxable equivalent basis
COMMON STOCK DATA        
 
2012 2011
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
 
Market value:
End of period $ 4.84 $ 4.38 $ 4.79 $ 3.87 $ 3.90
High 5.00 4.94 4.91 4.20 4.99
Low 3.74 3.88 3.71 3.30 3.53
Book value 5.56 7.48 7.32 7.09 7.34
Tangible book value 5.35 7.27 7.09 6.85 7.09
Average shares outstanding 15,655,868 15,655,868 15,655,868 15,655,868 15,655,868
Average diluted shares outstanding 15,655,868 16,465,346 16,299,152 16,163,509 16,467,550
NON-GAAP MEASURES        
 
Pre-tax, pre-securities gains and
pre-credit related operating income
(also excludes one-time adjustments)
Three Months Ended September 30 Nine Months Ended September 30
 
  2012     2011     2012     2011  
 
Net income $ (32,450 ) $ 1,083 $ (30,018 ) $ 3,235
Income taxes (3,700 ) 501 (2,771 ) 1,125
Less gain on sale of investment securities (3 ) (65 ) (3 ) (2,026 )
Less one-time expense adjustments 1,949 - 1,949 -
Real estate acquired in settlement of loans expense 479 451 1,002 1,233
Writedowns and loss on sale of real estate
acquired in settlement of loans 10,587 799 14,571 3,871
Provision for credit losses   28,881     3,445     34,684     12,539  
Pre-tax, pre-securities gains and
pre-credit related operating income $ 5,743   $ 6,214   $ 19,414   $ 19,977  
 
Operating efficiency percentage
Three Months Ended September 30 Nine Months Ended September 30
 
  2012     2011     2012     2011  
 
Total noninterest expense $ 16,545 $ 14,893 $ 43,885 $ 43,865
Less one-time expense adjustments (1,949 ) - (1,949 ) -
Less real estate acquired in settlement of loans expense   (479 )   (451 )   (1,002 )   (1,233 )
Numerator for calculation of operating efficiency (A) $ 14,117   $ 14,442   $ 40,934   $ 42,632  
 
Net interest income $ 15,678 $ 16,622 $ 48,173 $ 50,530
Total noninterest income (6,402 ) 3,300 (2,393 ) 10,234
Less gain on sale of investment securities (3 ) (65 ) (3 ) (2,026 )
Writedowns and loss on sale of real estate
acquired in settlement of loans   10,587     799     14,571     3,871  
Denominator for calculation of operating efficiency (B) $ 19,860   $ 20,656   $ 60,348   $ 62,609  
 
Operating efficiency percentage (A/B) 71.08 % 69.92 % 67.83 % 68.09 %

NewBridge Bancorp
Ramsey Hamadi, SEVP and Chief Financial Officer
336-369-0900

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