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NewBridge Bancorp Reports Increased Earnings for March Quarter 2013



NewBridge Bancorp Reports Increased Earnings for March Quarter 2013

GREENSBORO, N.C., April 22, 2013 (GLOBE NEWSWIRE) -- NewBridge Bancorp
(Nasdaq:NBBC) today reported a sharp increase in earnings for the quarter
ended March 31, 2013 over the quarter ended March 31, 2012. Net income
available to common shareholders totaled $4.0 million, compared to $781,000
reported in the first quarter of 2012. Earnings per diluted common share were
$0.13, an increase of 160% over the same quarter last year.

"Our first quarter results are highlighted by substantially improved earnings,
significantly enhanced asset quality, core organic loan growth and a stronger
capital position," said Pressley A. Ridgill, President and Chief Executive
Officer of NewBridge. "Each of these accomplishments was achieved due to
critical strategic events in 2012. We concluded our asset disposition plan,
which resulted in a $106 million reduction of adversely classified assets in
2012 and the reduction of our classified asset percentage from 77.6% at
December 31, 2011 to 30.5% at year end. The percentage at March 31, 2013
continued to decline to 26.6%. The successful execution of this plan means
that our core earnings are no longer burdened with high chargeoffs and other
credit related costs. We also achieved the closing of a private offering of
$56 million in new preferred equity, which was converted to common equity in
February 2013. This enhanced capital provides us the necessary strength to
pursue other strategic options. Finally, with the reduction of the classified
asset burden and our added capital strength, we intensified our focus on
solid, quality loan growth. We invested in experienced commercial banking
teams in Charlotte and Raleigh, the two largest banking markets in North
Carolina. We also expanded lending activities within our legacy branch
footprint. In the first quarter, loans held for investment increased $14.5
million, an annualized loan growth rate of 5%. Core retained loans increased
$72 million over the last twelve months. A large portion of this growth came
from our Charlotte and Raleigh market teams."

March Quarter 2013 Performance Highlights.

  * Net income for the first quarter was $4.7 million, an increase of 213%
    over the prior year's first quarter.

    * Net interest income declined 6.9% or $1.1 million.

    * Provision for credit losses declined 72% or $2.5 million.

    * Noninterest income, excluding gain on sale of investment securities,
      increased 53.0% or $1.6 million.

    * Noninterest expense increased 4.0% or $544,000.

    * Efficiency percentage was 71.2% for the quarter compared to 70.9% for
      the first quarter of 2012.

  * Asset quality continued to improve.

    * Nonperforming assets declined $2.5 million, or 9.4%, from the 2012 year
      end to $24.2 million.

    * Allowance for credit losses was $26.1 million, a decrease of 2.1% from
      2012 year end, while the percentage of the allowance to nonperforming
      loans increased 9.6% to 134.27%.

  * Loans held for investment increased 5% (on an annualized basis) compared
    to the total at December 31, 2012.

    * Core retained loans increased $72.3 million, or 6.85% over the prior
      year's first quarter.

    * Charlotte and Raleigh markets were responsible for a large portion of
      this net growth.

  * Low-cost core deposits grew; however, loan yields continued to decline,
    resulting in continued pressure on the net interest margin.

    * Funding mix continued to improve as low-cost core deposits grew $13.3
      million from the 2012 year end and represented 75% of total deposits at
      March 31, 2013.

    * Deposit costs declined to 0.28%, down 3 basis points from the fourth
      quarter of 2012.

    * Loan yields were down 11 basis points to 4.66% from the fourth quarter
      of 2012.

    * Net interest margin remained strong at 3.92%, increasing 1 basis point
      from the December 31, 2012 quarter.

  * Capital levels increased.

    * Already solid capital levels were enhanced by the fourth quarter 2012
      equity raise of $56 million, all of which was converted into common
      equity in the 2013 first quarter.

    * Tangible common equity increased to 8.5% of tangible assets.

    * Tier 1 risk-based capital increased to 15.59%.

    * Leverage capital increased to 12.48%.

    * Total risk-based capital increased to 16.88%.

Net Interest Income

Net interest income declined $1.1 million to $15.1 million for the first
quarter compared to the first quarter of 2012. This result was due primarily
to a compression of our net interest margin, which declined 23 basis points to
3.92%. Liability costs were reduced 25 basis points; however, earning asset
yields fell 48 basis points from the prior year's first quarter. In
particular, investment yields declined 0.88% to 3.18% during the quarter due
to the sustained low interest rate environment and our intention of keeping
the investment portfolio at a relatively short duration.

Noninterest Income

Noninterest income totaled $4.8 million, a $1.8 million improvement over the
prior year's first quarter. The Company recorded gains of $208,000 on sales of
investment securities and $125,000 on other real estate owned (OREO). In the
prior year's first quarter, the Company had no gains on sales of investments
and a loss of $1.0 million on OREO. The Company also experienced higher
noninterest income from retail banking revenue, wealth management services and
other equity investment gains, which are reflected as other noninterest
income. 

Noninterest Expense and Taxes

First quarter noninterest expense totaled $14.1 million, a 4.0% increase over
the 2012 first quarter. Compensation expense increased $766,000, or 10.8%,
over the prior year's first quarter.  Other noninterest expense declined
$222,000, including a $157,000 reduction in OREO expense.  The increase in
compensation expense was due primarily to investments in our Charlotte and
Raleigh commercial banking teams and, to a lesser extent, other key banking
team additions in the Triad market. The Company's effective tax rate for 2013
is 0% as we recorded the reversal of a portion of the impairment of our
deferred tax asset to carry it at estimated realizable value. 

Balance Sheet

Total assets were unchanged from year end at $1.71 billion. Loans held for
investment increased 1.3% from year end 2012 but were offset by declines in
loans held for sale and cash and cash equivalents. Total deposits increased
$20.5 million over year end 2012 to $1.4 billion. Core deposits, which exclude
time deposits, increased $13.3 million, or 1.3%, and totaled 75% of total
deposits at March 31, 2013. Common equity increased $60.1 million during the
quarter but was partially offset by a $56.2 million decline in preferred
equity. The changes within equity were due primarily to $4.0 million of
retained earnings and the conversion of $56 million in preferred stock to
common shares.

Core Loan Growth

Total loans held for investment were $1.17 billion at March 31, 2013 and $1.16
billion at 2012 year end. However, growth in core retained loans was $72.3
million over the trailing twelve months (an annual rate of
6.85%). Approximately 83% of the trailing twelve month increase in core
retained loans resulted from the Company's market teams in Charlotte and
Raleigh.

                                                             
                                                2013        2012
                                                First       First
                                                Quarter     Quarter
Core Retained Loan Growth                                    
(dollars in thousands)                                       
Loans held for investment                       $ 1,169,887 $ 1,173,671
Less classified loans                           42,935      118,993
Core retained loans                             $ 1,126,952 $ 1,054,678
                                                             
Core retained loan growth                       $ 72,274     
Trailing twelve month core retained loan growth 6.85%        

 Asset Quality

In the first quarter, asset quality continued to improve. Nonperforming assets
as a percentage of total assets declined to 1.41% from 1.56% at December 31,
2012. Nonperforming loans totaled $19.4 million, and OREO was $4.8
million. The allowance for credit losses was $26.1 million, or 134% of
nonperforming loans, compared to $26.6 million and 125% at year end
2012. Total classified assets, which includes nonperforming assets and other
potential problem assets, totaled $47.7 million, or 26.6% of the total Tier 1
capital and reserves of our banking subsidiary, NewBridge Bank (the
Bank). Classified assets totaled 30.5% of the Bank's Tier 1 capital plus
reserves at December 31, 2012.

Outlook

We anticipate continued asset growth in the remainder of 2013. We also believe
that the Company's prior two quarters are indicators of our future core
earnings potential. The low interest rate environment and intense competition
for quality loans remain as our key challenges. Consequently, margin pressure
is likely to continue. We intend to meet these challenges by growing the loan
portfolio, remaining disciplined with our cost controls and continuing to
maximize fee income opportunities. We will consider growth through
acquisitions that are consistent with our disciplined strategic vision and
present realistic opportunities for quality earnings enhancement.

Use of Non-GAAP Measures

Tangible common shareholders' equity ratios have become a focus of some
investors. Because tangible common shareholders' equity is not formally
defined by GAAP, this measure is considered to be a non-GAAP financial
measure, and other entities may calculate it differently. Since analysts and
banking regulators may assess our capital adequacy using tangible common
shareholders' equity, management believes that it is useful to provide
investors with the ability to assess the Company's capital adequacy on the
same basis.

About NewBridge Bancorp

NewBridge Bancorp is the bank holding company for 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 "NBBC."

NewBridge Bank is the largest community bank in the 12-county Piedmont Triad
Region of North Carolina and 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 37 locations
throughout 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,
the financial success or changing conditions or strategies of NewBridge's
customers 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 March                                        
                    31
                                                                                    
                    2013         2012                                               
Income Statement                                                                    
Data
(Dollars in
thousands, except                                                                   
share data)
Interest income:                                                                    
Loans                $ 13,426     $ 14,922                                          
Investment           2,991        3,585                                             
securities
Other                7            15                                                
Total interest       16,424       18,522                                            
income
Interest expense:                                                                   
Deposits             788          1,744                                             
Borrowings from the  253          259                                               
FHLB
Other                326          347                                               
Total interest       1,367        2,350                                             
expense
Net interest income  15,057       16,172                                            
Provision for        979          3,443                                             
credit losses
Net interest income
after provision for  14,078       12,729                                            
credit losses
Noninterest income:                                                                 
Retail banking       2,425        2,254                                             
Mortgage banking     558          563                                               
services
Wealth management    642          594                                               
services
Gain on sale of
investment           208          --                                                
securities
Writedowns and gain
(loss) on sale of
real estate          125          (1,008)                                           
acquired in
settlement of
loans, net
Bank-owned life      460          467                                               
insurance
Other                380          130                                               
Total noninterest    4,798        3,000                                             
income
Noninterest                                                                         
expense:
Personnel            7,827        7,061                                             
Occupancy            1,014        1,004                                             
Furniture and        819          778                                               
equipment
Technology and data  986          1,020                                             
processing
Legal and            673          671                                               
professional
FDIC insurance       453          441                                               
Real estate
acquired in          161          318                                               
settlement of loans
Other                2,212        2,308                                             
Total noninterest    14,145       13,601                                            
expense
Income before        4,731        2,128                                             
income taxes
Income tax expense   --           617                                               
Net income           4,731        1,511                                             
Dividends and
accretion on         (730)        (730)                                             
preferred stock
Net income
available to common  $ 4,001      $ 781                                             
shareholders
Net income per      $0.19        $0.05                                              
share - basic
Net income per      $0.13        $0.05                                              
share - diluted
                                                                                    
FINANCIAL SUMMARY                                                                   
                                                                                    
                    2013         2012                                               
                    First        Fourth       Third        Second      First        
                    Quarter      Quarter      Quarter      Quarter     Quarter      
Period-End Balance                                                                  
Sheet
(Dollars in                                                                         
thousands)
Assets                                                                              
Loans held for sale  $ 2,439      $ 9,464      $ 7,074      $ 5,741     $ 7,676     
Loans held for       1,169,887    1,155,421    1,168,747    1,162,630   1,173,671   
investment
Allowance for        (26,067)     (26,630)     (35,016)     (25,231)    (27,918)    
credit losses
Net loans held for   1,143,820    1,128,791    1,133,731    1,137,399   1,145,753   
investment
Investment           398,382      393,815      387,376      388,968     394,904     
securities
Other earning        11,752       9,006        10,646       35,936      5,730       
assets
Non-earning assets   155,686      167,631      175,082      180,392     191,905     
Total Assets         $ 1,712,079  $ 1,708,707  $ 1,713,909  $           $           
                                                           1,748,436   1,745,968
                                                                                    
Liabilities and
Shareholders'                                                                       
Equity
Noninterest-bearing  $ 214,642    $ 206,023    $ 184,942    $ 192,066   $ 211,246   
deposits
Savings deposits     47,050       44,450       44,990       45,371      44,118      
NOW accounts         425,307      424,720      429,792      431,390     444,439     
Money market         324,864      323,326      350,189      374,217     383,256     
accounts
Time deposits        341,091      333,974      379,823      406,153     366,135     
Total deposits       1,352,954    1,332,493    1,389,736    1,449,197   1,449,194   
Total borrowings     138,774      159,774      163,974      110,774     110,774     
Other liabilities    20,393       20,426       20,834       18,914      18,954      
Shareholders'        199,958      196,014      139,365      169,551     167,046     
equity
Total Liabilities                                           $           $
and Shareholders'    $ 1,712,079  $ 1,708,707  $ 1,713,909 1,748,436   1,745,968    
Equity
                                                                                    
ASSET QUALITY DATA                                                                  
                                                                                    
(Dollars in                                                                         
thousands)
Total nonperforming  $ 19,414     $ 21,360     $ 27,694     $ 34,680    $ 43,711    
loans
Other real estate    4,781        5,355        10,465       24,491      30,032      
owned
Total nonperforming  $ 24,195     $ 26,715     $ 38,159     $ 59,171    $ 73,743    
assets
                                                                                    
Loans identified as  $ 15,772     $ 16,400     $ 22,644     $ 32,955    $ 35,043    
impaired
Other nonperforming  3,642        4,960        5,050        1,725       8,668       
loans
Total nonperforming  19,414       21,360       27,694       34,680      43,711      
loans
Performing           23,521       26,498       46,842       71,673      75,282      
classified loans
Total classified     $ 42,935     $ 47,858     $ 74,536     $ 106,353   $ 118,993   
loans
Other real estate    4,781        5,355        10,465       24,491      30,032      
owned
Total classified     $ 47,716     $ 53,213     $ 85,001     $ 130,844   $ 149,025   
assets
Classified          26.59%       30.53%       48.10%       63.24%      72.09%       
percentage
Tier 1 capital       $ 179,428    $ 174,320    $ 176,729    $ 206,901   $ 206,723   
(Bank) and reserves
                                                                                    
Net chargeoffs       1,542        9,595        19,096       5,047       4,369       
Allowance for        26,067       26,630       35,016       25,231      27,918      
credit losses
Allowance for
credit losses to    2.23%        2.30%        3.00%        2.17%       2.38%        
loans held for
investment
Nonperforming loans
to loans held for   1.66         1.85         2.37         2.98        3.72         
investment
Nonperforming
assets to total     1.41         1.56         2.23         3.38        4.22         
assets
Nonperforming loans 1.13         1.25         1.62         1.98        2.50         
to total assets
Net chargeoff
percentage           0.54        3.26         6.52         1.73        1.48         
(annualized)
Allowance for
credit losses to    134.27       124.67       126.44       72.75       63.87        
nonperforming loans
                                                                                    
INVESTMENT                                                                          
PORTFOLIO
                                                                                    
(Dollars in          As of March 31, 2013 
thousands)
                     Amortized    Gross        Gross        Estimated  Average     Average
                     Cost         Unrealized   Unrealized   Fair        Yield (%)  Duration
                                 gain         loss         value                   (years)
US Treasury          $ 20,000     $ --         $ --         $ 20,000    0.06%       0.05
US Agency            67,089       47           (416)        66,720      1.94        5.63
Agency mortgage      19,106       1,887        --           20,993      5.37        1.87
backed securities
Collateralized
mortgage             9,353        230          (3)          9,580       5.67        2.30
obligations
Commercial mortgage  40,485       1,906        (51)         42,340      3.29        3.49
backed securities
Covered bonds        49,908       3,708        (18)         53,598      3.49        3.57
Corporate bonds      148,740      6,053        (394)        154,399     3.49        3.50
Municipal            17,370       563          (26)         17,907      7.04*       4.51
obligations
Federal Home Loan    6,189        --           --           6,189                   
Bank stock
Other                5,775        881          --           6,656                   
Total                $ 384,015    $ 15,275     $ (908)      $ 398,382   3.33*       3.64
                                                                                    
*Fully taxable                                                                      
equivalent basis
                                                                                    
COMMON STOCK DATA                                                                   
                                                                                    
                    2013         2012                                               
                    First        Fourth       Third        Second      First        
                    Quarter      Quarter      Quarter      Quarter     Quarter      
                                                                                    
Market value:                                                                       
End of period        $ 5.89       $ 4.63       $ 4.84       $ 4.38      $ 4.79      
High                 6.48         4.95         5.00         4.94        4.91        
Low                  4.50         3.92         3.74         3.88        3.71        
Book value           5.19         5.58         5.56         7.48        7.32        
Tangible book value  5.09         5.38         5.35         7.27        7.09        
Average shares       21,055,250   15,655,868   15,655,868   15,655,868  15,655,868  
outstanding
Average diluted      29,699,040   20,978,610   15,655,868   16,465,346  16,299,355  
shares outstanding
                                                                                    
OTHER DATA                                                                          
                                                                                    
                    Three Months Ended March                                        
                    31
                                                                                    
                    2013         2012                                               
                                                                                    
Tangible common      $ 144,693    $ 111,055                                         
equity
Return on average    1.13%        0.35%                                             
assets
Return on average    9.74         3.66                                              
equity
Net yield on         3.92         4.15                                              
earning assets
Average loans to     68.65        68.60                                             
assets
Average loans to     87.38        83.37                                             
deposits
Average noninterest
- bearing deposits   15.66        12.90                                             
to total deposits
Average equity to    11.57        9.58                                              
assets
Total capital as a
percentage of total  16.88       14.45                                              
risk weighted
assets
Tangible common
equity as a          8.47         6.37                                              
percentage of
tangible assets
Tangible common
equity as a
percentage of total  10.79        8.02                                              
risk weighted
assets
                                                                                    
ANALYSIS OF YIELDS AND RATES                                                        
                                                                                    
                    Three Months Ended March 31, 2013      Three Months Ended March 31,
                                                           2012
                    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     $ 1,168,844  $ 13,426    4.66%         $           $ 14,922   5.04%
                                                           1,191,042
Investment           388,546      3,091       3.18%         362,766     3,681      4.06%
securities
Other earning        11,999       7           0.24%         23,978      15         0.25%
assets
Total Earning        1,569,389    16,524      4.27%         1,577,786   18,618     4.75%
Assets
Non-Earning Assets   133,234                                158,397                 
Total Assets         $ 1,702,623  16,524                    $           18,618      
                                                           1,736,183
                                                                                    
Interest-Bearing                                                                    
Liabilities
Deposits             $ 1,128,121  788         0.28%         $           1,744      0.56%
                                                           1,244,232
Borrowings           147,572      579         1.59%         120,808     606        2.02%
Total
Interest-Bearing     1,275,693    1,367       0.44%         1,365,040   2,350      0.69%
Liabilities
Noninterest-bearing  209,522                                184,347                 
deposits
Other liabilities    20,354                                 20,529                  
Shareholders'        197,054                                166,267                 
equity
Total Liabilities                                           $
and Shareholders'    $ 1,702,623  1,367                    1,736,183    2,350       
Equity
Net Interest Income               $ 15,157                              $ 16,268    
Net Interest Margin                           3.92%                                4.15%
Interest Rate                                 3.83%                                4.06%
Spread
                                                                                    

CONTACT: Ramsey Hamadi, SEVP and Chief Financial Officer
         336-369-0900
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