NewBridge Reports Increased Earnings

NewBridge Reports Increased Earnings

GREENSBORO, N.C., Oct. 24, 2013 (GLOBE NEWSWIRE) -- NewBridge Bancorp
(Nasdaq:NBBC) today reported increased earnings for the quarter ended
September 30, 2013 over the quarter ended September 30, 2012. Net income
available to common shareholders for the third quarter of 2013 totaled $2.8
million, compared to a $33.2 million loss reported in the third quarter of
2012. Earnings per diluted common share were $0.10 compared to ($2.12) per
share a year ago. For the nine-month period ended September 30, 2013, net
income available to common shareholders totaled $17.7 million, compared to a
loss of $32.2 million reported for the nine-month period ended September 30,
2012. Earnings per diluted common share for the nine months were $0.61
compared to ($2.06) per share reported a year ago. For the three and
nine-month periods ended September 30, 2013, the Company recorded a one-time
tax expense to reduce the Company's deferred tax asset by $740,000 resulting
from a reduction in North Carolina corporate tax rates; however, the
nine-month period results include the reversal of a previously recorded
valuation allowance against the Company's deferred tax asset. The three and
nine-month periods a year ago were affected by expense related to a plan to
dispose of problem assets.

"NewBridge is now focused on growing our franchise organically and, as
attractive opportunities become available, through acquisition partnerships
and entry into new growth markets through the establishment of loan production
offices. In 2012 we invested in resolving our asset quality issues. This has
allowed the Company to apply its resources to initiatives we believe will
enhance shareholder value. We have invested heavily in talented lenders with
advanced credit acumen and histories of proven success and directed
investments into the largest metropolitan areas in North Carolina, including
Charlotte, Raleigh, the Piedmont Triad and the Greater Wilmington market. We
have converted loan production offices to full-service branches with complete
commercial lending teams in the hearts of the Charlotte and Raleigh financial
districts.Consequently, it is a pleasure to report significant progress in
our strategic growth efforts.For the period ended September 30th, loans held
for investment increased $66.7 million, or 5.6%, and for the year to date
increased $110.9 million, or 9.6%.In addition to robust organic loan growth,
on October 1, 2013, the Company closed its acquisition of Security Savings
Bank, a $212.5 million institution operating in the Greater Wilmington
market.NewBridge Bank is now a $2.0 billion institution with 36 branches and
a number of loan production offices throughout North Carolina.Already one of
the largest community banks in the Piedmont Triad region of North Carolina,
NewBridge Bank is now one of the largest community banks in the Greater
Wilmington market," said Pressley A. Ridgill, President and Chief Executive
Officer of NewBridge.

Third Quarter 2013 Highlights

  *Net income available to common shareholders for the quarter ended
    September 30, 2013 was $2.8 million, an increase of $36.0 million compared
    to the same period a year ago.

    *Pre-tax net income (excluding security gains) totaled $5.4 million for
      the quarter, continuing an increasing trend from $4.5 million in the
      first quarter and $5.0 million in the second quarter of the year.

    *Net interest income increased $118,000 for the quarter but declined $1.9
      million for the year.

    *Provision for credit losses totaled $33,000 for the quarter and $2.0
      million for the year, a decline of 94.1% from the prior year.

    *Noninterest income increased $312,000, or 7.5%, for the quarter and $1.2
      million, or 9.9%, for the year.

    *Other real estate owned ("OREO") expense totaled $152,000 for the
      quarter and a gain of $285,000 for the year, compared to an expense of
      $15.6 million the prior year.

    *Noninterest expense (excluding OREO related expense) declined $1.8
      million, or 11.2%, for the quarter and $604,000, or 1.4%, for the year.

  *Asset quality continued to improve.

    *Nonperforming assets declined $12.5 million, or 46.7%, from December 31,
      2012.

    *Nonperforming assets to total assets declined to 0.79% from 1.56% at
      December 31, 2012.

    *Allowance for credit losses increased to 220.0% of nonperforming loans
      from 124.7% at December 31, 2012.

  *Core retained loans increased 15.5% on an annualized basis compared to
    December 31, 2012.

    *Core retained loans (loans held for investment less classified loans)
      increased $69.9 million for the quarter, or 23.8% annualized.

    *The Charlotte and Raleigh operations continued to provide lift to loan
      production.

  *Net interest margin declined 12 basis points to 3.90% for the quarter
    compared to the same period a year ago.

    *Noninterest-bearing deposits increased $16.2 million for the quarter and
      $35.2 million for the year, an annualized growth rate of 22.9% for the
      year.

    *Interest-bearing deposit costs declined to 0.25% for the quarter, down
      10 basis points compared to the same period a year ago.

    *Loan yields declined 29 basis points to 4.52% for the quarter compared
      to the same period a year ago.

  *Third quarter capital levels remained high.

    *Leverage capital was 9.47% at September 30, 2013 and 9.51% at June 30,
      2013.

    *Tier 1 risk-based capital was 11.82% at September 30, 2013 and 11.59% at
      June 30, 2013.

    *Total capital was 13.09% at September 30, 2013 and 12.87% at June 30,
      2013.

  *On October 1, 2013, the Company announced completion of its acquisition of
    Security Savings Bank.

Net Interest Income

Net interest income increased $118,000 to $15.8 million for the quarter ending
September 30, 2013 compared to the quarter ending September 30, 2012.For the
nine-month period, net interest income declined $1.9 million to $46.3 million
compared to the nine-month period ended September 30, 2012.The reduction for
the year to date period was due primarily to compression of the net interest
margin, which declined 18 basis points to 3.93% for the nine-month period
compared to the prior year.For the three-month period, the net interest
margin declined 12 basis points to 3.90%, but this was more than offset by an
increase in average loans outstanding.Liability costs fell 10 basis points in
the three month comparisons; however, earning asset yields fell 21 basis
points. The Bank's loan portfolio experienced the greatest decline.Loan
yields were 4.52% for the 2013 third quarter, a reduction of 29 basis points
compared to the same period a year ago, due to the sustained low interest rate
environment.The net interest margin decreased 7 basis points from 3.97% in
the 2013 second quarter to 3.90% for the 2013 third quarter due to a lower
yield on new and renewed loans in the loan portfolio.

Noninterest Income

Noninterest income totaled $4.5 million during the third quarter, a $312,000
improvement over the prior year's third quarter.The most recent quarter
benefited from $458,000 in gains on sales of securities.The Company's largest
source of fee income is retail banking revenue, which is up 13.3% for the
quarter and 10.2% for the year; however, the Company's mortgage banking
revenue has declined substantially as a large portion of our mortgage banking
business consists of refinancings and was down $430,000 for the quarter.The
Company's trust and wealth management services improved 5.7% for the quarter
and 7.3% for the year as the division continues to increase assets under
management to $215.5 million at September 30, 2013 from $190.4 million at
September 30, 2012.

Noninterest Expense & Taxes

Noninterest expense totaled $14.4 million for the third quarter and $42.0
million for the nine-month period.Compared to the prior year, noninterest
expense decreased $16.5 million due primarily to lower OREO related losses and
expense.Excluding the impact of OREO related expense, noninterest expense for
the year to date was down $604,000.In the prior year third quarter, the
Company recorded $1.9 million of one-time occupancy and other noninterest
expense. Personnel expense for the quarter and year were up $539,000 and $1.6
million, respectively.The increases in personnel expense were due primarily
to the hiring of commercial lenders in the Raleigh and Charlotte markets and
the addition of key lending personnel in the Piedmont Triad market.In the
2013 second quarter, the Company benefited from the reversal of $6.6 million
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 its asset disposition plan in 2012.In
addition, in the third quarter 2013, the state of North Carolina reduced its
corporate income tax rates, and, as a result, the Company expensed $740,000 to
adjust the value of its deferred tax assets.

Balance Sheet

Total assets increased $72.2 million for the quarter and $93.6 million for the
year to $1.80 billion at September 30, 2013.Loans held for investment
increased $66.7 million, or 5.6%.For the year, loans held for investment
increased $110.9 million, or 9.6%.For the quarter, total deposits increased
$46.5 million to $1.41 billion.Noninterest-bearing deposits increased $16.2
million, or 7.2%, for the quarter and $35.2 million, or 17.1%, for the
year.Core deposits, excluding time deposits, totaled 73.5% of total deposits
at September 30, 2013.Tangible common equity increased $2.3 million for the
quarter and $61.0 million for the year. This change in equity was due
primarily to $17.6 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 $6.0 million decline in accumulated other
comprehensive income for the year. The Company has decided to eliminate tax
planning strategies from the calculation of the disallowed deferred tax asset
used in determining the regulatory capital levels of the Company and the Bank.
The Company has revised its methodology accordingly, and prior period capital
percentages have been revised.

Asset Quality

In the third quarter of 2013, asset quality continued to
improve.Nonperforming assets as a percentage of total assets declined to
0.79% from 1.56% at December 31, 2012.Nonperforming loans totaled $11.5
million, and OREO totaled $2.7 million at September 30, 2013.The allowance
for credit losses was $25.4 million at September 30, 2013, or 220.0% 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 $33.3 million, or 18.3% of the Bank's total
capital, at September 30, 2013.Classified assets totaled 30.5% of the Bank's
total capital at December31, 2012.

Outlook

We anticipate continued robust loan growth in the remainder of 2013 and into
2014.We believe that the Company's prior four quarters are indicators of our
future core earnings potential.We also believe our acquisition of Security
Savings Bank will increase the Company's net income, and Security Savings
former operations are anticipated to represent approximately 10% of next
year's earnings.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.The yield on new and renewed loans has
averaged 4.09% for the year to date period and is increasingly variable in
nature.We intend to meet these challenges by continuing to grow 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 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."

As one of the largest community banks in North Carolina, 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. Upon the closing of the
Security Savings Bank acquisition, NewBridge Bank has assets of approximately
$2.0 billion and36 branches and several loan production offices 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                    Nine Months Ended                  
                    September 30                           September 30
                                                                                        
                   2013         2012                     2013         2012                  
Income Statement                                                                         
Data
(Dollars in
thousands, except                                                                        
share data)
Interest income:                                                                         
Loans               $13,969    $14,084                $41,135    $43,587             
Investment          3,171       3,247                   9,122       10,565               
securities
Other               2           10                      15          30                   
Total interest      17,142      17,341                  50,272      54,182               
income
Interest expense:                                                                        
Deposits            737         1,088                   2,247       4,217                
Borrowings from the 271         232                     768         760                  
FHLB
Other               338         343                     994         1,032                
Total interest      1,346       1,663                   4,009       6,009                
expense
Net interest income 15,796      15,678                  46,263      48,173               
Provision for       33          28,881                  2,049       34,684               
credit losses
Net interest income
after provision for 15,763      (13,203)                44,214      13,489               
credit losses
Noninterest income:                                                                      
Retail banking      2,614       2,308                   7,592       6,888                
Mortgage banking    302         732                     1,347       1,848                
services
Wealth management   682         645                     1,932       1,800                
services
Gain on sale of
investment          458         3                       736         3                    
securities
Bank-owned life     317         326                     1,107       1,171                
insurance
Other               124         171                     671         468                  
Total noninterest   4,497       4,185                   13,385      12,178               
income
Noninterest                                                                              
expense:
Personnel           8,052       7,513                   23,387      21,800               
Occupancy           1,034       2,155                   3,073       4,183                
Furniture and       840         832                     2,510       2,495                
equipment
Technology and data 1,032       1,039                   3,071       3,074                
processing
Legal and           603         858                     2,031       2,219                
professional
FDIC insurance      444         444                     1,329       1,326                
Real estate
acquired in         152         11,066                  (285)       15,573               
settlement of loans
Other               2,254       3,225                   6,878       7,786                
Total noninterest   14,411      27,132                  41,994      58,456               
expense
Income before       5,849       (36,150)                15,605      (32,789)             
income taxes
Income tax          2,861       (3,700)                 (3,740)     (2,771)              
(benefit) expense
Net income          2,988       (32,450)                19,345      (30,018)             
Dividends and
accretion on        (208)       (729)                   (1,616)     (2,188)              
preferred stock
Net income
available to common $2,780     $(33,179)              $17,729    $(32,206)           
shareholders
Net income per      $0.10        ($2.12)                  $0.68        ($2.06)               
share - basic
Net income per      $0.10        ($2.12)                  $0.61        ($2.06)               
share - diluted
                                                                                        
FINANCIAL SUMMARY                                                                        
                                                                                        
                   2013                                   2012                               
                   Third        Second       First        Fourth       Third                 
                   Quarter      Quarter      Quarter      Quarter      Quarter               
Period-End Balance                                                                       
Sheet
(Dollars in                                                                              
thousands)
Assets                                                                                   
Loans held for sale $3,744     $5,908     $2,439     $9,464     $7,074              
Loans held for      1,266,361   1,199,711   1,169,887   1,155,421   1,168,747            
investment
Allowance for       (25,385)     (26,395)    (26,067)    (26,630)    (35,016)             
credit losses
Net loans held for  1,240,976   1,173,316   1,143,820   1,128,791   1,133,731            
investment
Investment          357,537     378,011     398,382     393,815     387,376              
securities
Other earning       24,583      2,109       11,752      9,006       10,646               
assets
Non-earning assets  175,502     170,751     155,686     167,631     175,082              
Total Assets        $1,802,342 $1,730,095 $1,712,079 $1,708,707 $1,713,909          
                                                                                        
Liabilities and
Shareholders'                                                                            
Equity
Noninterest-bearing $241,246   $225,089   $214,642   $206,023   $184,942            
deposits
Savings deposits    48,794      49,008      47,050      44,450      44,990               
NOW accounts        413,268     425,129     425,307     424,720     429,792              
Money market        334,091     345,482     324,864     323,326     350,189              
accounts
Time deposits       374,611      320,759     341,091     333,974     379,823              
Total deposits      1,412,010   1,365,467   1,352,954   1,332,493   1,389,736            
Total borrowings    209,474     185,074     138,774     159,774     163,974              
Other liabilities   18,012      18,856      20,393      20,426      20,834               
Shareholders'       162,846     160,698     199,958     196,014     139,365              
equity
Total Liabilities
and Shareholders'   $1,802,342 $1,730,095 $1,712,079 $1,708,707 $1,713,909          
Equity
                                                                                        
ASSET QUALITY DATA                                                                       
                                                                                        
(Dollars in                                                                              
thousands)
Total nonperforming $11,537    $13,832    $19,414    $21,360    $27,694             
loans
Other real estate   2,695       4,508       4,781       5,355       10,465               
owned
Total nonperforming $14,232    $18,340    $24,195    $26,715    $38,159             
assets
                                                                                        
Loans identified as $9,607     $10,610    $15,772    $16,400    $22,644             
impaired
Other nonperforming 1,930       3,222       3,642       4,960       5,050                
loans
Total nonperforming 11,537      13,832      19,414      21,360      27,694               
loans
Performing          19,086      20,086      23,521      26,498      46,842               
classified loans
Total classified    $30,623    $33,918    $42,935    $47,858    $74,536             
loans
Other real estate   2,695       4,508       4,781       5,355       10,465               
owned
Total classified    $33,318    $38,426    $47,716    $53,213    $85,001             
assets
Classified          18.25%       20.56%       26.59%       30.53%       48.10%                
percentage
Tier 1 capital      $182,549   $186,892   $179,428   $174,320   $176,729            
(Bank) and reserves
                                                                                        
Net chargeoffs      1,043       709         1,542       9,595       19,096               
Allowance for       25,385      26,395      26,067      26,630      35,016               
credit losses
Allowance for
credit losses to    2.00%        2.20%        2.23%        2.30%        3.00%                 
loans held for
investment
Nonperforming loans
to loans held for   0.91         1.15         1.66         1.85         2.37                  
investment
Nonperforming
assets to total     0.79         1.06         1.41         1.56         2.23                  
assets
Nonperforming loans 0.64         0.80         1.13         1.25         1.62                  
to total assets
Net chargeoff
percentage          0.34        0.24        0.54        3.26         6.52                  
(annualized)
Allowance for
credit losses to    220.03       190.83       134.27       124.67       126.44                
nonperforming loans
                                                                                        
INVESTMENT                                                                               
PORTFOLIO
                                                                                        
(Dollars in         As of September 30, 2013                                                  
thousands)
                              Gross      Gross      Estimated              Average   
                   Amortized    Unrealized   Unrealized   Fair         Average      Duration  
                   Cost       gain        loss       value     Yield (%)  (years)  
US Agency*          $76,856    $--        $(3,621)   $73,235    2.08%       7.53     
Agency mortgage     34,650      1,392       --          36,042      3.79        4.74     
backed securities*
Collateralized
mortgage            7,248       175         (7)         7,416       5.67        1.62     
obligations
Commercial mortgage 38,597      1,256       (49)        39,804      3.32        3.54     
backed securities
Covered bonds       49,928      3,101       (210)       52,819      3.49        3.13     
Corporate bonds*    110,771     3,685       (862)       113,594     3.98        4.61     
Municipal           17,446      142         (348)       17,240      6.49**      7.58     
obligations*
Federal Home Loan   9,370       --          --          9,370                            
Bank stock
Other               7,672       759         (414)       8,017                            
Total               $352,538   $10,510    $(5,511)   $357,537   3.55**      5.05     
                                                                                        
* 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                               
                   Third        Second       First        Fourth       Third                 
                   Quarter      Quarter      Quarter      Quarter      Quarter               
                                                                                        
Market value:                                                                            
End of period       $7.29      $5.99      $5.89      $4.63      $4.84               
High                9.17        6.41        6.48        4.95        5.00                 
Low                 5.96        5.55        4.50        3.92        3.74                 
Book value          5.19        5.12        5.19        5.58        5.56                 
Tangible book value 5.10        5.02        5.09        5.38        5.35                 
Average shares      28,478,316  28,461,665  21,055,250  15,655,868  15,655,868           
outstanding
Average diluted     28,572,565  29,139,456  29,699,040  20,978,610  15,655,868           
shares outstanding
                                                                                        
OTHER DATA                                                                               
                                                                                        
                   Three Months Ended                    Nine Months Ended                  
                    September 30                           September 30
                                                                                        
                   2013         2012                     2013         2012                  
                                                                                        
Tangible common     $145,311   $83,737                $145,311   $83,737             
equity
Return on average   0.67%       (7.53)%                 1.50%       (2.32)%              
assets
Return on average   7.36        (75.72)                 14.29       (23.80)              
equity
Net yield on        3.90        4.02                    3.93        4.11                 
earning assets
Average loans to    69.73       67.95                   69.26       68.00                
assets
Average loans to    88.21       82.25                   87.55       82.79                
deposits
Average
noninterest-bearing 16.54       13.41                   16.20       13.51                
deposits to total
deposits
Average equity to   9.15        9.94                    10.52       9.73                 
assets
Tangible common
equity as a         8.07        4.90                    8.07        4.90                 
percentageof
tangible assets
Tangible common
equity as a
percentageof total 10.51       6.28                    10.51       6.28                 
risk weighted
assets
                                                                                        
ANALYSIS OF YIELDS                                                                       
AND RATES
                                                                                        
                   Three Months Ended September 30, 2013              Three Months Ended September
                                                                        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    $1,226,469 $13,969    4.52%                    $1,165,080 $14,084 4.81%
Investment          388,108     3,269       3.37%                    385,750     3,340    3.46%
securities
Other earning       2,213       2           0.36%                    10,430      10       0.38%
assets
Total Earning       1,616,790   17,240      4.23%                    1,561,260   17,434   4.44%
Assets
Non-Earning Assets 142,147                                         153,353              
Total Assets        $1,758,937 17,240                              $1,714,613 17,434   
                                                                                        
Interest-Bearing                                                                         
Liabilities
Deposits            $1,160,483 737         0.25%                    $1,226,510 1,088    0.35%
Borrowings          187,837     609         1.29%                    109,185     575      2.10%
Total
Interest-Bearing    1,348,320   1,346       0.40%                    1,335,695   1,663    0.50%
Liabilities
Noninterest-bearing 229,972                                         189,979              
deposits
Other liabilities   19,644                                          18,442               
Shareholders'       161,001                                         170,497              
equity
Total Liabilities                                                                        
and
Shareholders'       $1,758,937 1,346                               $1,714,613 1,663    
Equity
Net Interest                    $15,894                                        $15,771 
Income
Net Interest Margin                         3.90%                                         4.02%
Interest Rate                               3.83%                                         3.94%
Spread
                                                                                        
                   Nine Months Ended September 30, 2013               Nine Months Ended September
                                                                        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    $1,192,263 $41,135    4.61%                    $1,177,334 $43,587 4.95%
Investment          385,586     9,409       3.25%                    382,365     10,846   3.78%
securities
Other earning       6,807       15          0.29%                    15,462      30       0.26%
assets
Total Earning       1,584,656   50,559      4.27%                    1,575,161   54,463   4.62%
Assets
Non-Earning Assets 136,820                                         156,290              
Total Assets       $1,721,476 50,559                              $1,731,451 54,463   
                                                                                        
Interest-Bearing                                                                         
Liabilities
Deposits            $1,141,146 2,247       0.26%                    $1,229,965 4,217    0.46%
Borrowings          159,230     1,762       1.48%                    121,548     1,792    1.97%
Total
Interest-Bearing    1,300,376   4,009       0.41%                    1,351,513   6,009    0.59%
Liabilities
Noninterest-bearing 220,654                                         192,100              
deposits
Other liabilities   19,420                                          19,372               
Shareholders'       181,026                                         168,466              
equity
Total Liabilities                                                                        
and
Shareholders'       $1,721,476 4,009                               $1,731,451 6,009    
Equity
Net Interest                    $46,550                                        $48,454 
Income
Net Interest Margin                         3.93%                                         4.11%
Interest Rate                               3.86%                                         4.03%
Spread
                                                                                        
RISK BASED CAPITAL                                                                       
PERCENTAGES
                                                                                        
                   September 30, 2013        June 30, 2013 Revised*    June 30, 2013 As       
                                                                        Reported
                   Company      Bank         Company      Bank         Company      Bank      
                                                                                        
Total Capital       13.09%       12.65%       12.87%       12.40%       13.47%       12.97%    
Tier 1 Capital      11.82%       11.38%       11.59%       11.12%       12.19%       11.69%    
Leverage Capital    9.47%        9.11%        9.51%        9.12%        10.01%       9.60%     
                                                                                        
* Second quarter capital percentages were amended to eliminate tax planning strategies from    
the Company's regulatory risk based capital percentages

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