NewBridge Reports Increased Earnings for the Second Quarter of 2013

NewBridge Reports Increased Earnings for the Second Quarter of 2013

GREENSBORO, N.C., July 24, 2013 (GLOBE NEWSWIRE) -- NewBridge Bancorp
(Nasdaq:NBBC) today reported a sharp increase in earnings for the quarter
ended June 30, 2013 over the quarter ended June 30, 2012. Net income available
to common shareholders for the second quarter of 2013 totaled $10.9 million,
compared to $192,000 reported in the second quarter of 2012. Earnings per
diluted common share were $0.38, an increase from $0.01 per share a year ago.
For the six-month period ended June 30, 2013, net income available to common
shareholders totaled $14.9 million, compared to $1.0 million reported for the
six-month period ended June 30, 2012. Earnings per diluted common share were
$0.51, an increase of $0.45 from the $0.06 per share reported a year ago. The
three- and six-month periods ended June 30, 2013 benefitted from a $6.6
million income tax benefit associated with the reversal of a previously
recorded valuation allowance against the Company's deferred tax asset.

"Our second quarter results show significantly improved earnings, enhanced
asset quality, strong organic loan growth and the retirement of a substantial
portion of the Company's TARP obligation," said Pressley A. Ridgill, President
and Chief Executive Officer of NewBridge.

Second Quarter 2013 Highlights

  *Net income for the quarter ended June 30, 2013 was $11.6 million, an
    increase of $10.7 million over second quarter ended June 30, 2012. Net
    income for six months was $16.4 million, an increase of $13.9 million from
    the prior year.

    *Net interest income declined $913,000, or 5.6%, for the quarter and $2.0
      million, or 6.2%, for the year.
      
    *Provision for credit losses declined $1.3 million, or 56.1%, for the
      quarter and $3.8 million, or 65.3%, for the year.
      
    *Noninterest income increased $3.8 million, or 378.3%, for the quarter
      and $5.6 million, or 140.1%, for the year.
      
    *Noninterest expense increased $435,000, or 3.2%, for the quarter and
      $979,000, or 3.6%, for the year.

  *Asset quality continued to improve.

    *Nonperforming assets declined $8.4 million, or 31.3%, from December 31,
      2012.
      
    *Nonperforming assets to total assets declined to 1.06% from 1.56% at
      December 31, 2012.

  *Core retained loans increased 10.6% on an annualized basis compared to
    December 31, 2012.

    *Core retained loans increased $38.8 million for the quarter, or 13.8%
      annualized.
      
    *Loan production offices in the Raleigh and Charlotte markets accounted
      for approximately 50% of the current year's loan growth.

  *Net interest margin declined 19 basis points to 3.97% for the quarter
    compared to the same period a year ago.

    *Core deposits (excluding time deposits) for the first six months
      increased $46.2 million, or 9.3% annualized.
      
    *Deposit costs declined to 0.26% for the quarter, down 20 basis points
      compared to the same period a year ago.
      
    *Loan yields declined 32 basis points to 4.67% for the quarter compared
      to the same period a year ago.

  *Capital levels remain high following the partial redemption of preferred
    shares and retirement of the warrant.

    *Company redeemed $37.4 million of preferred stock, reducing future
      preferred dividends by 71.4%.
      
    *Dilutive warrant issued to the Treasury under the TARP program was
      repurchased at a price of $7.8 million.
      
    *Tier 1 risk-based capital was 12.22% at June 30, 2013.
      
    *Leverage capital was 10.04% at June 30, 2013.
      
    *Total capital was 13.50% at June 30, 2013.

  *In June 2013, the Company announced the signing of a definitive agreement
    to acquire Security Savings Bank, SSB.

Net Interest Income

Net interest income shrank $913,000 to $15.4 million for the quarter ending
June 30, 2013 compared to the quarter ending June 30, 2012.For the six-month
period, net interest income declined $2.0 million to $30.5 million compared to
the six-month period ended June 30, 2012.The reductions were due primarily to
compression of the net interest margin, which declined 19 basis points to
3.97% for the three-month period and 21 basis points to 3.94% for the
six-month period compared to the prior year.For the three-month period,
liability costs fell 18 basis points; however, earning asset yields fell 37
basis points. The Bank's investment portfolio experienced the greatest
decline. Investment yields were 3.21% for the 2013 second quarter, a reduction
of 63 basis points compared to the same period a year ago, due to the
sustained low interest rate environment. The net interest margin increased
five basis points from 3.92% in the 2013 first quarter to 3.97% for the 2013
second quarter due to a higher yield on loans from improved asset quality and
a reduced reliance on the lower yielding investment portfolio.

Noninterest Income

Noninterest income totaled $4.8 million during the second quarter, a $3.8
million improvement over the prior year's second quarter. In the most recent
quarter, the Company had $70,000 of gains from sales of investment securities
and $611,000 in gains from sales of other real estate owned ("OREO"), compared
to a loss of $3.0 million a year ago. For the six-month period, the Company
had noninterest income of $9.6 million, compared to $4.0 million a year ago.
For the current year, sales of investment securities resulted in gains of
$278,000, compared to no gain or loss a year ago, and gains on sales of OREO
totaled $736,000, compared to a loss of $4.0 million a year ago. Retail
banking revenue increased $228,000 for the three-month period and $399,000 for
the year.

Noninterest Expense & Taxes

Noninterest expense totaled $14.2 million for the second quarter and $28.3
million for the six-month period. Compared to the prior year, noninterest
expense increased $435,000, or 3.2%, for the quarter and $979,000, or 3.6%,
year to date. The increases in expense were due primarily to growth in
compensation expense related to the hiring of commercial lenders in the
Raleigh and Charlotte markets and the addition of key lending personnel in the
Triad market. In the 2013 second quarter, the Company reversed $8,371,000 of
the valuation allowance previously established against its deferred tax asset
as management determined it was more likely than not that the Company would be
able to fully utilize the assets associated with previous net operating
losses. A key factor in the decision was the Company's financial performance
since the completion of the Company's asset disposition plan in 2012.

Balance Sheet

Total assets increased $18.0 million for the quarter and $21.4 million for the
year to $1.73 billion at June 30, 2013. Loans held for investment increased
2.5% for the quarter but was offset by declines in investment securities and
cash and cash equivalents. For the quarter, total deposits increased $12.5
million to $1.4 billion, while core deposits, excluding time deposits,
increased $32.8 million, or 3.2%, and totaled 76.5% of total deposits at June
30, 2013. Tangible common equity decreased $1.7 million for the quarter but
increased $58.7 million for the year. This change in equity was due primarily
to $14.8 million of retained earnings and the addition of $56.3 million of
common equity for the year from the conversion of preferred stock, which were
partially offset by a $7.8 million reduction in equity from the repurchase of
the TARP warrant and a $5.2 million decline in accumulated other comprehensive
income.

Core Retained Loan Growth

For the first six months of 2013, core retained loans increased $58.2 million,
an annualized growth rate of 10.6%. Likewise, for the trailing twelve months,
core retained loans increased $109.5 million, a 10.4% growth rate. Total loans
including classified loans increased $44.3 million for the six months ended
June 30, 2013. In 2012, the Company aggressively purged adversely classified
loans (loans that were either problem loans or potential problem loans) while
simultaneously investing in growing performing loans. Opening the Raleigh and
Charlotte loan production offices and investing further in the Piedmont Triad
were important strategic decisions that are beginning to result in increased
earning assets. Approximately 50% of this year's loan growth has occurred in
the new markets in Raleigh and Charlotte.

                                  2013       2012       2012
                                  Second     Fourth     Second
                                  Quarter    Quarter    Quarter
Core Retained Loan Growth                              
(dollars in thousands)                                 
Loans held for investment          $1,199,711 $1,155,421 $1,162,630
Less classified loans              33,918     47,858     106,353
Core retained loans                $1,165,793 $1,107,563 $1,056,277
                                                      
Core retained loan growth:                             
Trailing twelve months             $109,516             
                                  10.4%                
Six months year to date annualized $117,425             
                                  10.6%                

Asset Quality

In the second quarter of 2013, asset quality continued to improve.
Nonperforming assets as a percentage of total assets declined to 1.06% from
1.56% at December 31, 2012. Nonperforming loans totaled $13.8 million and OREO
was $4.5 million at June 30, 2013. The allowance for credit losses was $26.4
million at June 30, 2013, or 190.8% of nonperforming loans, compared to $26.6
million, or 124.7%, at December 31, 2012. Total classified assets, which
includes nonperforming assets and other potential problem assets, totaled
$38.4 million, or 20.6% of total Bank capital, at June 30, 2013. Classified
assets totaled 30.5% of total Bank capital at December31, 2012.

Outlook

We anticipate continued asset growth in the remainder of 2013. We also believe
that the Company's prior three quarters are indicators of our future core
earnings potential. For the remainder of 2013, the Company expects to have a
more normalized tax expense. 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. In June
2013, the Bank announced a definitive agreement to acquire Security Savings
Bank, SSB, headquartered in Southport, North Carolina.This acquisition, which
is subject to regulatory approval, will expand the Bank's coastal North
Carolina presence with six offices in Brunswick County. We anticipate the
merger will be consummated in the third quarter.

Use of Non-GAAP Measures

Tangible common shareholders' equity percentages 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 headquartered 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 30
branches 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 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,
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 June 30 Six Months Ended June 30
                                                               
                          2013          2012         2013         2012
Income Statement Data                                           
(Dollars in thousands,                                          
except share data)
Interest income:                                                
Loans                      $13,740     $14,581    $27,166    $29,503
Investment securities      2,960        3,733       5,951       7,318
Other                      6            5           13          20
Total interest income      16,706       18,319      33,130      36,841
Interest expense:                                               
Deposits                   722          1,385       1,510       3,129
Borrowings from the FHLB   244          269         497         528
Other                      330          342         656         689
Total interest expense     1,296        1,996       2,663       4,346
Net interest income        15,410       16,323      30,467      32,495
Provision for credit       1,037        2,360       2,016       5,803
losses
Net interest income after
provision for credit       14,373       13,963      28,451      26,692
losses
Noninterest income:                                             
Retail banking             2,553        2,325       4,978       4,579
Mortgage banking services  487          553         1,045       1,116
Wealth management services 608          561         1,250       1,155
Gain on sale of investment 70           --          278         --
securities
Writedowns and gain (loss)
on sale of real estate     611          (2,976)     736         (3,984)
acquired in settlement of
loans, net
Bank-owned life insurance  330          378         790         845
Other                      167          168         547         298
Total noninterest income   4,826        1,009       9,624       4,009
Noninterest expense:                                            
Personnel                  7,508        7,226       15,335      14,287
Occupancy                  1,024        1,024       2,039       2,028
Furniture and equipment    852          885         1,670       1,663
Technology and data        1,053        1,015       2,039       2,035
processing
Legal and professional     755          690         1,428       1,361
FDIC insurance             432          441         885         882
Real estate acquired in    138          205         299         523
settlement of loans
Other                      2,412        2,253       4,624       4,561
Total noninterest expense  14,174       13,739      28,319      27,340
Income before income taxes 5,025        1,233       9,756       3,361
Income tax (benefit)       (6,601)      312         (6,601)     929
expense
Net income                 11,626       921         16,357      2,432
Dividends and accretion on (679)        (729)       (1,408)     (1,459)
preferred stock
Net income available to    $10,947     $192       $14,949    $973
common shareholders
Net income per share -     $0.38         $0.01        $0.60        $0.06
basic
Net income per share -     $0.38         $0.01        $0.51        $0.06
diluted

                                                                   
                                                                   
FINANCIAL SUMMARY                                                   
                                                                   
                   2013                      2012
                   Second       First        Fourth       Third        Second
                   Quarter      Quarter      Quarter      Quarter      Quarter
Period-End Balance                                                  
Sheet
(Dollars in                                                         
thousands)
Assets                                                              
Loans held for sale $5,908     $2,439     $9,464     $7,074     $5,741
Loans held for      1,199,711   1,169,887   1,155,421   1,168,747   1,162,630
investment
Allowance for       (26,395)    (26,067)    (26,630)    (35,016)    (25,231)
credit losses
Net loans held for  1,173,316   1,143,820   1,128,791   1,133,731   1,137,399
investment
Investment          378,011     398,382     393,815     387,376     388,968
securities
Other earning       2,109       11,752      9,006       10,646      35,936
assets
Non-earning assets  170,751     155,686     167,631     175,082     180,392
Total Assets        $1,730,095 $1,712,079 $1,708,707 $1,713,909 $1,748,436
                                                                   
Liabilities and
Shareholders'                                                       
Equity
Noninterest-bearing $225,089   $214,642   $206,023   $184,942   $192,066
deposits
Savings deposits    49,008      47,050      44,450      44,990      45,371
NOW accounts        425,129     425,307     424,720     429,792     431,390
Money market        345,482     324,864     323,326     350,189     374,217
accounts
Time deposits       320,759     341,091     333,974     379,823     406,153
Total deposits      1,365,467   1,352,954   1,332,493   1,389,736   1,449,197
Total borrowings    185,074     138,774     159,774     163,974     110,774
Other liabilities   18,856      20,393      20,426      20,834      18,914
Shareholders'       160,698     199,958     196,014     139,365     169,551
equity
Total Liabilities
and Shareholders'   $1,730,095 $1,712,079 $1,708,707 $1,713,909 $1,748,436
Equity
                                                                   
ASSET QUALITY DATA                                                  
                                                                   
(Dollars in                                                         
thousands)
Total nonperforming $13,832    $19,414    $21,360    $27,694    $34,680
loans
Other real estate   4,508       4,781       5,355       10,465      24,491
owned
Total nonperforming $18,340    $24,195    $26,715    $38,159    $59,171
assets
                                                                   
Loans identified as $10,610    $15,772    $16,400    $22,644    $32,955
impaired
Other nonperforming 3,222       3,642       4,960       5,050       1,725
loans
Total nonperforming 13,832      19,414      21,360      27,694      34,680
loans
Performing          20,086      23,521      26,498      46,842      71,673
classified loans
Total classified    $33,918    $42,935    $47,858    $74,536    $106,353
loans
Other real estate   4,508       4,781       5,355       10,465      24,491
owned
Total classified    $38,426    $47,716    $53,213    $85,001    $130,844
assets
Classified          20.56%       26.59%       30.53%       48.10%       63.24%
percentage
Tier 1 capital      $186,892   $179,428   $174,320   $176,729   $206,901
(Bank) and reserves
                                                                   
Net chargeoffs      709         1,542       9,595       19,096      5,047
Allowance for       26,395      26,067      26,630      35,016      25,231
credit losses
Allowance for
credit losses to    2.20%        2.23%        2.30%        3.00%        2.17%
loans held for
investment
Nonperforming loans
to loans held for   1.15         1.66         1.85         2.37         2.98
investment
Nonperforming
assets to total     1.06         1.41         1.56         2.23         3.38
assets
Nonperforming loans 0.80         1.13         1.25         1.62         1.98
to total assets
Net chargeoff
percentage          0.24        0.54        3.26         6.52         1.73
(annualized)
Allowance for
credit losses to    190.83       134.27       124.67       126.44       72.75
nonperforming loans

                                                                          
                                                                          
INVESTMENT                                                                 
PORTFOLIO
                                                                          
(Dollars in         As of June 30, 2013
thousands)
                   Amortized Gross     Gross     Estimated Average     Average
                   Cost      Unrealized Unrealized Fair       Yield (%) Duration
                                gain       loss       value                  (years)
US Agency*          $76,847   $--       $(2,736)  $74,111   2.08%      7.60
Agency mortgage     17,270     1,495      --         18,765     5.27       2.39
backed securities
Collateralized
mortgage            8,345      239        --         8,584      5.63       2.26
obligations
Commercial mortgage 39,786     1,114      (132)      40,768     3.33       3.70
backed securities
Covered bonds       49,918     3,052      (265)      52,705     3.49       3.35
Corporate bonds     145,750    3,406      (489)      148,667    3.52       3.84
Municipal           18,081     163        (309)      17,935     6.28**     7.55
obligations*
Federal Home Loan   8,272      --         --         8,272                 
Bank stock
Other               7,672      687        (155)      8,204                 
Total               $371,941  $10,156   $(4,086)  $378,011  3.47**     4.63
                                                                          
* Includes held-to-maturity securities carried at cost                                  
with no gains or losses shown in the table above
** Fully taxable                                                           
equivalent basis
                                                                          
                                                                          
COMMON STOCK DATA                                                          
                                                                          
                   2013                    2012                                
                   Second      First       Fourth      Third       Second      
                   Quarter     Quarter     Quarter     Quarter     Quarter     
                                                                          
Market value:                                                              
End of period       $5.99     $5.89     $4.63     $4.84     $4.38     
High                6.41       6.48       4.95       5.00       4.94       
Low                 5.55       4.50       3.92       3.74       3.88       
Book value          5.12       5.19       5.58       5.56       7.48       
Tangible book value 5.02       5.09       5.38       5.35       7.27       
Average shares      28,461,665 21,055,250 15,655,868 15,655,868 15,655,868 
outstanding
Average diluted     29,139,456 29,699,040 20,978,610 15,655,868 16,465,346 
shares outstanding
                                                                          
                                                                          
OTHER DATA                                                                 
                                                                          
                   Three Months Ended June            Six Months Ended June   
                    30                                  30
                   2013        2012                   2013        2012        
                                                                          
Tangible common     $142,987  $113,742             $142,987  $113,742  
equity
Return on average   2.74%      0.21%                 1.94%      0.28%      
assets
Return on average   25.15      2.20                  17.25      2.92       
equity
Net yield on        3.97       4.16                  3.94       4.15       
earning assets
Average loans to    69.37      67.44                 69.01      68.02      
assets
Average loans to    87.04      82.75                 87.21      83.06      
deposits
Average
noninterest-bearing 16.38      14.21                 16.03      13.56      
deposits to total
deposits
Average equity to   10.89      9.67                  11.23      9.62       
assets
Total capital as a
percentage of total 13.50      14.73                 13.50      14.73      
risk weighted
assets
Tangible common
equity as a         8.28       6.52                  8.28       6.52       
percentage of
tangible assets
Tangible common
equity as a
percentage of total 10.44      8.33                  10.44      8.33       
risk weighted
assets

                                                                    
                                                                    
ANALYSIS OF YIELDS                                                   
AND RATES
                                                                    
                   Three Months Ended June 30,    Three Months Ended June 30,
                    2013                           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    $1,180,844 $13,740 4.67%   $1,176,015 $14,581 4.99%
Investment          380,109     3,050    3.21%   398,541     3,825    3.84%
securities
Other earning       6,317       6        0.38%   12,033      5        0.17%
assets
Total Earning      1,567,270   16,796   4.30%   1,586,589   18,411   4.67%
Assets
Non-Earning Assets  134,981                     157,153              
Total Assets       $1,702,251 16,796          $1,743,742 18,411   
                                                                    
Interest-Bearing                                                     
Liabilities
Deposits            $1,134,479 722      0.26%   $1,219,190 1,385    0.46%
Borrowings          141,839     574      1.62%   134,787     611      1.82%
Total
Interest-Bearing    1,276,318   1,296    0.41%   1,353,977   1,996    0.59%
Liabilities
Noninterest-bearing 222,243                     201,997              
deposits
Other liabilities   18,271                      19,154               
Shareholders'       185,419                     168,614              
equity
Total Liabilities
and Shareholders'   $1,702,251 1,296           $1,743,742 1,996    
Equity
Net Interest                    $15,500                    $16,415 
Income
Net Interest Margin                      3.97%                        4.16%
Interest Rate                            3.89%                        4.07%
Spread
                                                                    
                                                                    
                                                                    
                   Six Months Ended June 30, 2013 Six Months Ended June 30, 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    $1,174,877 $27,166 4.66%   $1,183,528 $29,503 5.01%
Investment          384,304     6,141    3.20%   380,653     7,506    3.94%
securities
Other earning       9,143       13       0.29%   18,005      20       0.22%
assets
Total Earning      1,568,324   33,320   4.28%   1,582,186   37,029   4.71%
Assets
Non-Earning Assets  134,112                     157,776              
Total Assets       $1,702,436 33,320          $1,739,962 37,029   
                                                                    
Interest-Bearing                                                     
Liabilities
Deposits            $1,131,317 1,510    0.27%   $1,231,711 3,129    0.51%
Borrowings          144,689     1,153    1.61%   127,798     1,217    1.92%
Total
Interest-Bearing    1,276,006   2,663    0.42%   1,359,509   4,346    0.64%
Liabilities
Noninterest-bearing 215,918                     193,172              
deposits
Other liabilities   19,307                      19,841               
Shareholders'       191,205                     167,440              
equity
Total Liabilities
and Shareholders'   $1,702,436 2,663           $1,739,962 4,346    
Equity
Net Interest                    $30,657                    $32,683 
Income
Net Interest Margin                      3.94%                        4.15%
Interest Rate                            3.86%                        4.06%
Spread

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