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NewBridge Bancorp Announces Net Income Increases 230% to $4.8 Million in the Fourth Quarter

  NewBridge Bancorp Announces Net Income Increases 230% to $4.8 Million in the
  Fourth Quarter

Business Wire

GREENSBORO, N.C. -- January 29, 2013

  *Earnings per diluted share total $0.19 for the quarter
  *Total classified assets decrease $32 million for the quarter and $106
    million year to date to $53 million
  *Nonperforming assets decline $11.4 million to $26.7 million, or 1.56% of
    assets, for the quarter
  *Other real estate owned declines $5.1 million, for the quarter or 49%, to
    $5.4 million
  *Provision for credit losses totals $1.2 million for the quarter, or 72%
    below prior year
  *Total risk based capital was 16.48% and leverage capital was 10.00% at
    quarter end
  *Net interest margin averages 3.91% for the quarter and 4.06% for the year
  *Cost of interest bearing deposits drops to 0.31% for the quarter
  *Retail banking fees increase $437,000 over prior year quarter on changes
    in fee structures
  *Quarterly mortgage banking revenues increase 23% over same period a year
    ago
  *Nonclassified loans increase 6% for the quarter and 5% year-to-date
  *Portfolio loan production climbs 30% over 2011 to $280 million

NewBridge Bancorp (NASDAQ: NBBC), parent of NewBridge Bank, today announced
net income of $4.8 million for the three months ended December 31, 2012
compared to $1.4 million for the three months ended December 31, 2011. After
dividends and accretion on preferred stock, the Company reported net income of
$0.19 per diluted common share. For the year ending December 31, 2012, the
Company reported a net loss of $25.3 million compared to net income of $4.7
million for the prior year. The Company experienced a loss of $1.80 per
diluted share in 2012 compared to net income of $0.11 in 2011. The results for
2012 were impacted by the Company’s previously disclosed plan to accelerate
the disposition of problem assets. Results for the year also include $1.8
million of onetime items to write down facilities and other assets, as well as
a $10 million valuation allowance against the Company’s deferred tax asset.
The results for 2011 benefitted from a onetime gain of $2.0 million on the
sale of investment securities. On November 30, 2012, the Company issued $56.3
of convertible preferred equity to select investors. Upon approval at a
special Shareholders Meeting on February 20, 2013, the preferred shares will
convert into 9,601,273 shares of Class A common stock and 3,186,750 shares of
Class B common stock.

Pressley A. Ridgill, President and Chief Executive Officer, commented: “The
events of 2012, which culminated in earnings for the fourth quarter of $4.8
million, were very positive for our Company. In November we completed a $56
million capital raise, which sufficiently bolsters the balance sheet for the
future, including the anticipated repurchase of the $52 million of TARP
preferred shares. Classified assets fell by $106 million during the year,
resulting in non-performing assets declining to $26.7 million, or 1.56% of
total assets at year end. In addition, loan growth trends turned positive as
we expanded our loan production teams in the Piedmont Triad and Research
Triangle markets and added a Charlotte loan production team in mid-year.
Excluding the $81 million reduction of classified loans from asset
disposition, nonclassified loan balances increased 5% for the year, or
approximately $50 million. Despite our renewed lending efforts, we remained
focused on controlling costs and expanding other revenues. For the year,
personnel costs increased less than 2% and excluding $1.8 million of onetime
expenses in the third quarter, total operating expense declined $1.3 million,
or 2.3% from 2011. We experienced increased revenue growth from other revenue
sources during the year. Mortgage revenue climbed 53% to $2.6 million, and
retail banking revenues made sizable gains in the fourth quarter, increasing
18% over the prior year.”

Mr. Ridgill continued, “Our fourth quarter operating performance is the result
of new balance sheet dynamics. Our successful asset disposition plan means
that future earnings will be far less encumbered by high credit related costs.
Like all banks, we do, however, remain in a challenging low interest rate
environment with heightened competition for quality loans. For the third
consecutive quarter, our net interest margin declined partially as a result of
the disposition of high risk loans with high yields and limited opportunities
to reinvest proceeds from the capital raise and maturing investments at
attractive rates. We are facing these challenges by continuing to invest in
highly regarded loan officers, minimizing costs and planning for disciplined
growth.”

Net interest income

Net interest income declined $1.2 million to $15.4 million for the quarter
compared to $16.6 million a year ago. Year to date net interest income
declined 5.3%, or $3.6 million, to $63.6 million. The Company’s net interest
margin declined to 3.91% for the quarter compared to 4.25% for the same period
last year. The net interest margin for the twelve month period ending December
31, 2012 was 4.06%, down from 4.22% for the prior year. The 2012 average
balance of loans declined $95.9 million from the prior year’s average, and the
average yield on loans declined 28 basis points to 4.90%, resulting in an $8.2
million annual reduction in interest income. Investment yields fell more
dramatically, dropping from 4.55% in 2011 to 3.59%, as roughly one third of
the prior year’s long duration investment portfolio matured and was reinvested
into lower yielding short duration investments. Interest income on investments
declined $150,000 for the year, or 1.1%, despite a $77 million increase in the
average balance of investments. The decline in interest income from earning
assets was partially offset by lower interest expense on interest bearing
liabilities, which fell by $4.8 million during the year. The decline was due
primarily to a reduction in deposit rates from 0.75% in 2011 to 0.42% in 2012.
At December 31, 2012, the weighted average cost of the Company’s $1.33 billion
of deposits was 0.26%.

The asset disposition plan eliminated $81 million of classified loans during
2012. These loans had higher than acceptable credit risk characteristics, but
also carried higher yields. The weighted average yield was approximately 6.2%
on the disposed loans. Proceeds from the disposition of these loans have been
largely reinvested in short-term agency securities yielding less than 1%.

Balance Sheet

Total assets decreased $5.2 million during the fourth quarter and $25.9
million for the year to $1.71 billion at December 31, 2012. Loans held for
investment decreased $13.3 million for the quarter and $44.6 million for the
year. The decline in loans was due primarily to our asset disposition plan,
which eliminated $81 million of classified loans and $25 million of other real
estate owned. For the quarter, classified loans declined $27 million and other
real estate owned declined $5 million. During the quarter, $9.6 million of net
chargeoffs were recorded. Our 2012 portfolio loan production totaled $280
million, or 30% more than in 2011. Cash and cash equivalents decreased $3.0
million for the quarter and $14.2 million for the twelve months. Investment
securities increased $6.4 million for the quarter to $393.8 million and
increased $56.0 million since the beginning of the year.

Total deposits declined $57.2 million for the quarter and $86.2 million for
the year to $1.33 billion. The decline in deposits was due primarily to lower
time deposit balances, which fell $45.8 million for the quarter and $59.4
million for the year. In the recent quarter, the decline was due primarily to
lower brokered deposits; however, retail time deposits declined $75.9 million
for the year as the Company has chosen not to compete for high priced time
deposits. Excluding time deposits, core deposits remained steady for the year
at $1.0 billion. Noninterest bearing deposits increased $33.7 million for the
year to $206.0 million. In the fourth quarter, noninterest bearing accounts
increased $21.1 million due in part to changes in rate and fee structures the
Company applied to certain product offerings. These changes resulted in an 18%
increase in retail banking fees, or $437,000, during the fourth quarter. The
weighted average rate on the Company’s $1.0 billion of core deposits was 0.16%
at December 31, 2012. The weighted average cost of time deposits at that date
was 0.54% on $334.0 million.

Shareholders’ equity increased $56.6 million during the quarter due to the
Company’s issuance of $56.3 million of convertible preferred equity in
November and $4.0 million of retained earnings, which was partially offset by
a $4.1 million reduction in additional paid-in capital from cost incurred in
the issuance of the preferred equity. For the year, shareholders’ equity
increased $32.6 million, due to the Company’s operating loss and other changes
in equity of $28.2 million for the year. Pro-forma tangible book value per
common share at December 31, 2012 was $4.94 on a fully converted basis.

Noninterest Income

Noninterest income climbed 63%, or $1.8 million, to $4.8 million for the
fourth quarter. The change was due primarily to a $1.4 million improvement in
writedowns and losses on disposals of foreclosed properties (OREO). Previously
discussed changes in retail banking revenue drove fee income $437,000 higher
for the quarter. For the year, mortgage banking activities capitalized on the
favorable interest rate environment, increasing revenues 53%, or $908,000, due
to a higher volume of production. Wealth management fees were down slightly
for the year; however, lower costs resulted in more than a $200,000 increase
in contributions from these services. Securities gains totaled $3,000 during
2012 compared to $2.0 million during 2011.

Noninterest Expense

Noninterest expense increased $524,000 from the prior year to $57.9 million in
2012. Excluding $1.8 million of onetime expense in the third quarter,
noninterest expense declined $1.3 million, for the year, or 2.3%. The Company
continues to analyze its branch locations and footprint to achieve greater
efficiency and penetration in our target markets. This has led to the addition
of 12 commercial and private bankers during the year, primarily in Raleigh and
Charlotte, and the announced closing of two locations in the Piedmont Triad
area where the Company currently operates 27 full service bank locations.
Combined personnel, furniture and equipment, technology and OREO expense fell
$264,000 from the prior year, while occupancy, legal, professional and other
expenses rose $1.4 million. The rise in occupancy and other expenses were due
primarily to the onetime charges taken in the third quarter that are largely
associated with the planned closing of the two Piedmont Triad locations.

Asset Quality

Total classified loans decreased $26.7 million, during the quarter and $80.6
million during the year. At December 31, 2012, total classified loans were
$47.9 million, including $21.4 million of nonperforming loans. The
nonperforming loans have been charged down a combined $7.9 million and are
being carried at 69% of their contractual value. Including OREO, total
classified assets declined $106 million during the year and totaled $53.2
million at December 31, 2012. OREO was written down to estimated liquidation
value of $5.4 million in the third 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 71%, or $119.7
million. As a percentage of the Bank’s tier one capital plus reserves,
classified assets declined to 31% at December 31, 2012 from 78% at December
31, 2011 and 93% at September 30, 2010. Nonperforming loans declined 23%, or
$6.3 million, during the quarter. Nonperforming loans peaked at June30, 2009
at $64.1 million. Since then, they have declined 67%, or $42.7 million.
Nonperforming loans represent 1.85% of loans held for investment. Including
OREO, total nonperforming assets were $26.7 million, or 1.56% of total assets,
at December 31, 2012.

The allowance for credit losses totaled $26.6 million at December 31, 2012, or
2.30% of loans held for investment, compared to $35.0 million (3.00%) at
September 30, 2012. The Company’s allowance for credit losses as a percentage
of nonperforming loans totaled 125% at December 31, 2012, compared to 126% at
September 30, 2012 and 71% at December 31, 2011. The allowance consists of
general reserves of 94.1% and specific reserves of 5.9%. 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. Net charge offs were $9.6 million for the
fourth quarter and $19.1 million for the third quarter of 2012. Since the
current adverse credit cycle began in 2007, the Company has charged off $194.4
million of loans and OREO, or 12.0% of our highest/peak level of loan balances
of $1.627 billion at September 30, 2008. The annualized average quarterly net
loss percentages over the past five year period for commercial loans, mortgage
loans, credit reserves and home equity lines, retail loans and credit cards
were 2.29%, 0.83%, 1.66%, 2.28% and 1.51%, 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 December 31, 2012, the Bank’s concentration levels were 38.43% and 165.74%,
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 $63.4 million at December 31, 2012,
including $17 million of speculative residential construction and residential
acquisition and development.

Outlook

Mr. Ridgill stated that “the fourth quarter of 2012 was a positive turning
point for our Company. With the reduction of problem assets, our focus has
shifted to the pursuit of disciplined growth. For the current year, we
averaged 5% core organic loan growth. We anticipate continued growth in 2013.
While margin compression will remain a challenge, redeployment of lower
yielding investment proceeds into higher yielding loan assets should mitigate
that pressure. Cost management practices will continue and should result in
expense levels very similar in 2013 to those of 2012, despite the planned
opening of the two new Bank locations, one each in Charlotte and Raleigh.
Finally, we will strive for continued expansion of our fee income businesses.
The changes in our retail banking product structure in the fourth quarter
should benefit the full year in 2013. We also believe that our mortgage
banking and wealth management activities will continue to grow. While our
capital structure is enhanced and provides us the ability to be acquisitive,
we will take a conservative approach as we evaluate opportunities.”

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 full service 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 Section27A 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,
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 December 31, 2012               Three Months Ended December 31, 2011
                                              Average          Interest      Average             Average           Interest      Average
                                                               Income/       Yield/                                Income/       Yield/
                                              Balance          Expense       Rate                Balance           Expense       Rate
(Fully taxable equivalent basis, dollars in thousands)
Earning Assets
  Loans receivable                            $ 1,171,779      $ 14,089      4.78 %              $ 1,220,133       $ 15,820      5.14  %
  Investment                                    382,061          2,887       3.02 %                315,519           3,444       4.37  %
  securities
  Other earning                                21,274          10          0.19 %               24,005           16          0.27  %
  assets
  Total Earning                                 1,575,114        16,986      4.29 %                1,559,657         19,280      4.90  %
  Assets
Non-Earning Assets                             128,506                                           153,218
  Total Assets                                $ 1,703,620        16,986                          $ 1,712,875         19,280
                                                                                                                                 
Interest-Bearing
Liabilities
  Deposits                                    $ 1,172,221        918         0.31 %              $ 1,240,660         1,980       0.63  %
  Borrowings                                   142,834         587         1.63 %               116,781          606         2.06  %
  Total
  Interest-Bearing                              1,315,055        1,505       0.46 %                1,357,441         2,586       0.75  %
  Liabilities
  Noninterest-bearing                           209,067                                            171,909
  deposits
  Other liabilities                             19,332                                             17,849
  Shareholders'                                160,166                                           165,676
  equity
  Total Liabilities
  and
  Shareholders'                               $ 1,703,620       1,505                           $ 1,712,875        2,586
  Equity
Net Interest Income                                            $ 15,481                                            $ 16,694
Net Interest Margin                                                          3.91 %                                              4.25  %
Interest Rate Spread                                                         3.83 %                                              4.15  %
                                                                                                                                 
                                                                                                                                 
                                                                                                                                 
                                              Twelve Months Ended December 31, 2012              Twelve Months Ended December 31, 2011
                                              Average          Interest      Average             Average           Interest      Average
                                                               Income/       Yield/                                Income/       Yield/
                                              Balance          Expense       Rate                Balance           Expense       Rate
(Fully taxable equivalent basis, dollars in thousands)
Earning Assets
  Loans receivable                            $ 1,175,938      $ 57,676      4.90 %              $ 1,271,790       $ 65,871      5.18  %
  Investment                                    382,288          13,733      3.59 %                305,061           13,882      4.55  %
  securities
  Other earning                                16,923          40          0.24 %               24,270           60          0.25  %
  assets
  Total Earning                                 1,575,149        71,449      4.54 %                1,601,121         79,813      4.99  %
  Assets
Non-Earning Assets                             149,306                                           148,688
  Total Assets                                $ 1,724,455        71,449                          $ 1,749,809         79,813
                                                                                                                                 
Interest-Bearing
Liabilities
  Deposits                                    $ 1,215,450        5,135       0.42 %              $ 1,258,551         9,493       0.75  %
  Borrowings                                   126,898         2,379       1.87 %               141,935          2,826       1.99  %
  Total
  Interest-Bearing                              1,342,348        7,514       0.56 %                1,400,486         12,319      0.88  %
  Liabilities
  Noninterest-bearing                           196,365                                            166,077
  deposits
  Other liabilities                             19,362                                             16,909
  Shareholders'                                166,380                                           166,337
  equity
  Total Liabilities
  and
  Shareholders'                               $ 1,724,455       7,514                           $ 1,749,809        12,319
  Equity
Net Interest Income                                            $ 63,935                                            $ 67,494
Net Interest Margin                                                          4.06 %                                              4.22  %
Interest Rate Spread                                                         3.98 %                                              4.11  %
                                                                                                                                       

FINANCIAL SUMMARY                                                                                   

                      2012                                                  2011
                    Fourth          Third         Second        First         Fourth
                    Quarter         Quarter       Quarter       Quarter       Quarter
Period-End Balances (Dollars in
thousands)
Assets              $  1,708,707   $ 1,713,909   $ 1,748,436   $ 1,745,968   $ 1,734,564
Loans held for          1,155,421     1,168,747     1,162,630     1,173,671     1,200,070
investment
Loans held for sale     9,464         7,074         5,741         7,676         7,851
Investment              393,815       387,376       388,968       394,904       337,811
securities
Earning assets          1,567,706     1,573,843     1,593,275     1,581,981     1,572,095
Noninterest-bearing     206,023       184,942       192,066       211,246       172,351
deposits
Savings deposits        44,450        44,990        45,371        44,118        40,876
NOW accounts            424,720       429,792       431,390       444,439       441,292
Money market            323,326       350,189       374,217       383,256       370,773
accounts
Time deposits           333,974       379,823       406,153       366,135       393,384
Interest-bearing        1,286,244     1,368,768     1,367,905     1,348,722     1,379,799
liabilities
Shareholders'           196,014       139,365       169,551       167,046       163,387
equity
                                                                                                                   
Asset Quality Data (Dollars in
thousands)
Nonperforming
loans:
   Commercial
   nonaccrual       $   11,119      $ 12,411      $ 10,331      $ 17,905      $ 15,773
   loans, not
   restructured
   Commercial
   nonaccrual loans
   which
   have been            1,788         5,092         8,243         8,116         7,489
   restructured
   Non-commercial
   nonaccrual           4,263         4,418         8,195         10,038        9,569
   loans, not
   restructured
   Non-commercial nonaccrual
   loans which
   have been          342          1,007        2,616        990          283
   restructured
   Total nonaccrual     17,512        22,928        29,385        37,049        33,114
   loans
   Loans past due
   90 days or more
   and
   still accruing       44            6             65            29            14
   Accruing
   restructured       3,804        4,760        5,230        6,633        7,406
   loans
   Total
   nonperforming        21,360        27,694        34,680        43,711        40,534
   loans
Other real estate     5,355        10,465       24,491       30,032       30,587
owned
Total nonperforming $   26,715      $ 38,159      $ 59,171      $ 73,743      $ 71,121
assets
Restructured loans,     1,220         1,296         2,443         3,101         4,888
performing
Net chargeoffs          9,595         19,096        5,047         4,369         3,153
Allowance for           26,630        35,016        25,231        27,918        28,844
credit losses
Allowance for
credit losses to        2.30      %   3.00      %   2.17      %   2.38      %   2.40      %
loans held for
investment
Nonperforming loans
to loans held for       1.85          2.37          2.98          3.72          3.38
investment
Nonperforming
assets to total         1.56          2.23          3.38          4.22          4.10
assets
Nonperforming loans     1.25          1.62          1.98          2.50          2.34
to total assets
Net chargeoff
percentage              3.26          6.52          1.73          1.48          1.03
(annualized)
Allowance for
credit losses to        124.67        126.44        72.75         63.87         71.16
nonperforming loans
                                                                                                                   
Loans identified as $   16,400      $ 22,644      $ 32,955      $ 35,043      $ 32,591
impaired
Other nonperforming   4,960        5,050        1,725        8,668        7,943
loans
   Total
   nonperforming        21,360        27,694        34,680        43,711        40,534
   loans
Performing            26,498       46,842       71,673       75,282       87,959
classified loans
   Total classified $   47,858      $ 74,536      $ 106,353     $ 118,993     $ 128,493
   loans
Other real estate     5,355        10,465       24,491       30,032       30,587
owned
   Total classified $   53,213      $ 85,001      $ 130,844     $ 149,025     $ 159,080
   assets
Classified ratio        30.51     %   48.10     %   63.24     %   72.09     %   77.59     %
Total capital       $   174,429     $ 176,729     $ 206,901     $ 206,723     $ 205,019
(bank) and reserves
                                                                                                                   
Gross loan chargeoffs, and
writedowns and losses
   on other real estate owned to
   peak loans
   during the
   credit cycle       2007         2008         2009         2010         2011         2012     TOTAL
   beginning
   January 1, 2007:
Gross loan
chargeoffs
   Commercial       $   5,052       $ 5,046       $ 11,232      $ 9,052       $ 5,045       $ 17,306   $ 52,733
   Real estate -        825           7,339         12,227        5,379         3,985         8,774      38,529
   construction
   Real estate -        1,300         5,012         10,110        7,260         6,822         13,337     43,841
   mortgage
   Consumer             2,235         5,071         4,925         2,829         1,358         1,191      17,609
   Other              -            -            -            6,200        1,387        3         7,590
   Total gross loan $   9,412       $ 22,468      $ 38,494      $ 30,720      $ 18,597      $ 40,611   $ 160,302
   chargeoffs
Other real estate
owned writedowns      4,001        3,571        1,294        5,508        5,238        14,520    34,132
and losses
   Total
   chargeoffs,      $   13,413      $ 26,039      $ 39,788      $ 36,228      $ 23,835      $ 55,131   $ 194,434
   writedowns and
   losses
                                                                                                                   
   Peak loans at
   September 30,                                                                                       $ 1,626,504
   2008
   Chargeoffs, writedowns and                                                                            11.95     %
   losses to peak loans

FINANCIAL SUMMARY                                

                     Three Months Ended               Twelve Months Ended
                     December 31                      December 31
                                                                    
                     2012         2011               2012          2011
Income Statement
Data
(Dollars in thousands, except
share data)
Interest income:
     Loans           $ 14,089     $ 15,819            $ 57,676      $ 65,871
     Investment        2,799        3,347               13,364        13,514
     securities
     Other            10         16                40          60     
Total interest         16,898       19,182              71,080        79,445
income
Interest expense:
     Deposits          918          1,980               5,135         9,493
     Borrowings from   252          271                 1,012         1,178
     the FHLB
     Other            335        335               1,367       1,648  
Total interest        1,505      2,586             7,514       12,319 
expense
Net interest income    15,393       16,596              63,566        67,126
Provision for credit  1,209      4,247             35,893      16,785 
losses
Net interest income
after provision for    14,184       12,349              27,673        50,341
credit losses
Noninterest income:
     Retail banking    2,851        2,414               9,739         9,925
     Mortgage
     banking           788          640                 2,636         1,728
     services
     Wealth
     management        549          625                 2,349         2,499
     services
     Gain on sale of
     investment        -            -                   3             2,026
     securities
     Writedowns and loss on
     sale of real estate
     acquired in
     settlement of     51           (1,368 )            (14,520 )     (5,238 )
     loans
     Bank-owned life   323          370                 1,494         1,385
     insurance
     Other            199        239               667         830    
Total noninterest      4,761        2,920               2,368         13,155
income
Noninterest expense
     Personnel         7,554        6,308               29,354        28,806
     Occupancy         988          944                 5,171         3,987
     Furniture and     840          860                 3,335         3,644
     equipment
     Technology and    988          972                 4,063         3,942
     data processing
     Legal and         810          860                 3,029         2,892
     professional
     FDIC insurance    444          372                 1,770         2,399
     Real estate
     acquired in       205          596                 1,206         1,830
     settlement of
     loans
     Other            2,179      2,590             9,965       9,869  
Total noninterest     14,008     13,502            57,893      57,369 
expense
Income (loss) before   4,937        1,767               (27,852 )     6,127
income taxes
Income tax expense    173        323               (2,598  )    1,449  
(benefit)
Net income (loss)      4,764        1,444               (25,254 )     4,678
Dividends and
accretion on          (730   )    (730   )           (2,918  )    (2,917 )
preferred stock
Net income (loss)
available to common  $ 4,034     $ 714              $ (28,172 )   $ 1,761  
shareholders
Net income (loss)    $ 0.26       $ 0.05                ($1.80  )   $ 0.11
per share - basic
Net income (loss)    $ 0.19       $ 0.04                ($1.80  )   $ 0.11
per share - diluted
                                                                    
Other Data
                                                                    
Return on average      1.11     %   0.33     %          (1.46   ) %   0.27
assets
Return on average      11.83        3.46                (15.18  )     2.81
equity
Net yield on earning   3.91         4.25                4.06          4.22
assets
Average loans to       68.78        71.23               68.19         72.68
assets
Average loans to       84.83        86.38               83.29         89.27
deposits
Average
noninterest-bearing
deposits
to total deposits      15.14        12.17               13.91         11.66
Average equity to      9.40         9.67                9.65          9.51
assets
Total capital as a
percentage of total    16.48        14.55               16.48         14.55
risk weighted assets
Tangible common equity as a
percentage
     of total risk     6.32         7.88                6.32          7.88
     weighted assets

INVESTMENT                                                                                         
PORTFOLIO
                                                                                                                
(Dollars in        As of December 31, 2012
thousands)
                   Amortized         Gross             Gross               Estimated         Average            Average
                   Cost              Unrealized        Unrealized loss     Fair value        Yield (%)          Duration
                                     gain                                                                       (years)
US Treasury        $ 10,000          $ -               $ -                 $ 10,000            0.01       %     0.05
US Agency            67,090            72                (125       )        67,037            1.94             5.78
Mortgage
backed               21,607            2,153             -                   23,760            5.30             2.30
securities
Collateralized
mortgage             10,417            254               (3         )        10,668            5.54             2.78
obligations
Commercial
mortgage             43,046            2,318             (82        )        45,282            4.19             10.58
backed
securities
Covered bonds        44,924            3,694             -                   48,618            3.68             3.49
Corporate            150,589           5,742             (844       )        155,487           3.24             3.29
bonds
Municipal            17,978            734               -                   18,712            6.21       *     4.09
obligations
Federal Home
Loan Bank            7,685             -                 -                   7,685
stock
Other               5,775            791              -                 6,566
Total              $ 379,111         $ 15,758          $ (1,054     )      $ 393,815           3.41       *     4.47
                                                                                                                
    Fully
*   taxable
    equivalent
    basis
                                                                                                                
COMMON STOCK
DATA
                                                                                                                
                   2012                                                                      2011
                   Fourth            Third             Second              First             Fourth
                   Quarter           Quarter           Quarter             Quarter           Quarter
                                                                                                                
Market value:
End of period      $ 4.63            $ 4.84            $ 4.38              $ 4.79            $ 3.87
High                 4.95              5.00              4.94                4.91              4.20
Low                  3.92              3.74              3.88                3.71              3.30
Book value           5.58              5.56              7.48                7.32              7.09
Tangible book        5.38              5.35              7.27                7.09              6.85
value
Average shares       15,655,868        15,655,868        15,655,868          15,655,868        15,655,868
outstanding
Average
diluted shares       20,978,610        15,655,868        16,465,346          16,299,152        16,163,509
outstanding

Contact:

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