Newbridge Bancorp (NBBC) 8-K NewBridge Bancorp Reports Third Quarter Financial Results

Exhibit 99.1

Contact:
Ramsey Hamadi, EVP and Chief Financial Officer
336-369-0900

NewBridge Bancorp Reports Third Quarter Financial Results

• Nonperforming loans decline 10% to $57.7 million, or 2.87% of total assets, on $16.0 million of charge-offs as management strives to put problem assets behind us

• Company maintains “well-capitalized” regulatory status, including a 12.21% total risk-based capital ratio at September 30, 2009

• Net interest income increased $1.2 million, or 8% over the linked quarter, on higher net interest margin resulting from lower costs of liabilities, but declined 2% over prior year third quarter on lower average loan balances

• Net interest margin increased 36 basis points over linked quarter due to repricing of maturing time deposits. Management anticipates continued improvement over the short term with $483 million of deposits still to mature before the end of December

• NOW checking accounts increase 17% for the quarter, or $31.0 million, to $211.6 million due to new marketing campaign

• Company absorbs $2.9 million in one-time expenses related to branch closing costs, termination of non-executive management contracts and the decision to retire certain IT systems anticipated to result in improved future operating efficiencies

• Excluding one-time expenses and $3.4 million increase in FDIC insurance assessments, year to date non-interest expense declines $4.4 million as management focuses on improved cost management culture

GREENSBORO, N.C., October 28, 2009 — NewBridge Bancorp (NASDAQ: NBBC) (“NewBridge” or the “Company”), the parent company of NewBridge Bank (the “Bank”), today reported financial results for the three and nine month periods ended September 30, 2009. For the three months ended September 30, 2009, net loss was $5.7 million and net loss available to common shareholders was $6.4 million, or $0.41 per diluted share, compared to net loss of $1.6 million, or $0.10 per diluted share, in the third quarter of 2008. For the nine months ended September 30, 2009, net loss was $15.2 million and net loss available to common shareholders was $17.4 million, or $1.11 per diluted share, compared to net income of $1.7 million, or $0.11 per diluted share, in the first nine months of 2008.

Results for the three months and nine months ended September 30, 2009 include one-time charges of $2.9 million pre-tax, or $0.11 after tax per diluted common share. These charges include $1.2 million related to the recently announced plan to restructure branch operations in the Piedmont Triad region of North Carolina, $1.1 million for the Company’s decision to upgrade to a new core processing system, and $580,000 to terminate certain non-executive employment agreements. These charges were partially offset by a positive impact from the sale of the Bank’s merchant services portfolio, which totaled $1.1 million pre-tax, net of expenses, or $0.04 after tax per diluted common share.

Asset Quality

Pressley A. Ridgill, President and Chief Executive Officer of NewBridge, commented: “We continue to experience a number of positive trends. Most notably, the emergence of new problem assets has slowed considerably, while the level of problem loans declined due to charge offs. Our desire is to put our problem loans behind us as quickly as possible. During the September quarter, the Company charged off $16.0 million of loans. The high level of charge offs led to a 10% decline in nonperforming loans and an ending nonperforming loans to total asset balance ratio of 2.87% at September 30, 2009 compared to 3.10% at June 30, 2009.” Ridgill continued, “The outlook for commercial real estate remains troubling and we anticipate additional problems are going to emerge; however, we believe the steps we took this quarter will significantly improve the Company’s operating results in the fourth quarter of 2009 and into fiscal 2010.” Year to date, the Company has taken net charge offs of $27.1 million, or approximately 1.7% of total loans. The ratio of nonperforming loans to total loans is 3.86% at September 30, 2009 compared to 4.19% at June 30, 2009.

The provision for credit losses during the third quarter of 2009 was $10.8 million versus $4.7 million for the third quarter of 2008. For the nine months ended September 30 2009, provision expense was $30.2 million, compared to $10.7 million in the same period of 2008. Since September 30, 2008, the Company has grown the allowance for credit losses by $8.0 million from $30.8 million at September 30, 2008 to $38.8 million at September 30, 2009 and the allowance for credit losses to total loans from 1.90% to 2.60%.

Ridgill added, “Despite the high level of charge offs for the year, the Company’s capital and reserves remain well positioned to continue to weather the ongoing challenges in our economy.” The Company’s total risk based capital level fell 4 basis points during the quarter to 12.21% at September 30, 2009 exceeding the minimum “well capitalized” level of 10.0%.

Operating Results

On a linked quarter, net interest income increased $1.2 million, or 8.0%, to $15.0 million for the quarter ended September 30, 2009, from $13.8 million for the quarter ended June 30, 2009 due to a higher net interest margin. The margin rose due to lower cost of deposits which resulted from lower renewal rates on maturing time deposits and a shift in the deposit base to more transaction accounts. The net interest margin increased 29 basis points to 3.27% for the quarter ending September 30, 2009 compared to 2.98% for the quarter ending June 30, 2009. Compared to the same quarter a year ago, the net interest margin fell 7 basis points from 3.34% for the three months ending September 30, 2008, which was the primary cause of the decline in net interest income from $15.3 million in the third quarter of 2008. Ridgill stated, “I believe that we are positioned to experience continued improvement in the Company’s net interest margin and resulting net interest income as $483 million of additional time deposits will mature and likely renew at lower rates from their current average cost of 3.15%.”

Noninterest income for the quarter ended September 30, 2009 increased to $5.6 million, versus $4.6 million for the same period in 2008, and for the nine months ended September 30, 2009 noninterest income was $14.3 million, compared to $16.0 million for the first nine months of 2008. Noninterest income for the third quarter and first nine months of 2009 included $1.1 million in gains on the sale of the Bank’s merchant services portfolio, while noninterest income in the first nine months of 2008 included $2.5 million in gains on the sale of investment securities. Excluding these one-time gains, noninterest income was comparable for the periods. Noninterest expense for the third quarter of 2009 was $19.8 million, an increase of $2.2 million from $17.6 million in the third quarter of 2008. For the first nine months of 2009, noninterest expense was $53.9 million, an increase of $2.0 million from $51.9 million in the first nine months of 2008. The increases were primarily the result of the one-time charges described earlier. Personnel expense decreased to $23.6 million in the first nine months of 2009 from $26.8 million

in the first nine months of 2008, or 11.8%, primarily as a result of a reduction in the number of employees; however the reduction in expense was partially offset by the one-time costs. The Company also reduced costs in advertising, telephone, travel and printing and supplies expense. These savings were offset by a substantial increase in FDIC insurance premiums, which grew from $451,000 in the first nine months of 2008 to $3.9 million in the first nine months of 2009, including a special assessment of $970,000 recorded in the second quarter of 2009.

Ridgill noted, “Our year-long efforts to improve the cost management culture by controlling that which is controllable have paid sizable dividends. Excluding one time expenses and the $3.5 million increase in FDIC insurance assessments, year to date non-interest expense declined $4.4 million.”

Balance Sheet

As of September 30, 2009, total assets were approximately $2.01 billion, down $69.1 million, or 3.3%, from $2.08 billion at December 31, 2008, and down 4.7% from $2.11 billion at the year-ago date. The decrease is primarily the result of a decline in the Company’s loan balance, which was $1.50 billion as of September 30, 2009, compared to $1.60 billion as of December 31, 2008, a decrease of $108.6 million, or 6.8%, and compared to $1.63 billion at September 30, 2008, a decrease of $130.5 million, or 8.0%. The decrease in loans was due primarily to principal reductions and loan payoffs exceeding new loan opportunities. The Company continues to pursue quality lending opportunities. For the quarter, interest earning assets were largely unchanged as the Company replaced loan runoff with lower risk weighted investment securities, which increased $29.3 million during the quarter.

Deposits declined $48.9 million to $1.61 billion during the three months ending September 30, 2009. The decline in deposits was due to a $53.9 million decline in time deposits to $823.9 million at September 30, 2009. CD balances declined due to customers pursuing higher rates elsewhere at maturity. The weighted average interest rates of CDs declined from 3.24% at June 30, 2009 to 2.84% at September 30, 2009. Management anticipates continued declines in CD prices through December 2009 as $483.2 million of CDs with an average interest rate of 3.15% are set to mature prior to year end. The decline in time deposits was partially offset by strong growth in core NOW checking account balances, which increased 17%, or $31.0 million, to $211.6 million during the three months ending September 30, 2009. The growth in the NOW accounts was due primarily to the success of a new marketing campaign.

Federal Home Loan Bank borrowings at September 30, 2009 were $136.7 million, down $2.3 million, or 1.7%, from $139.0 million at December 31, 2008.

Shareholders’ equity declined $851,000 to $166.4 million at September 30, 2009 from $167.2 million at June 30, 2009. The decline in equity was due primarily to the $5.7 million net loss, which was largely offset by a $5.5 million increase in accumulated other comprehensive income. For the year, shareholders’ equity declined $12.8 million from $179.2 million at December 31, 2008. The decrease in shareholders’ equity from year end was primarily the result of the net loss available to common shareholders recorded in the first nine months of 2009, partially offset by changes in unrealized gains and losses on investment securities.

Outlook

Mr. Ridgill expressed management’s belief that “Fiscal 2009 is likely going to be remembered as one of the worst economic periods in history. Despite the challenges the Company has faced, the asset quality of the loan portfolio is improving; we are gaining increased operating efficiencies and the Company’s capital and reserves remain strong. I believe the Company is well positioned for significant improvement in operating results for three reasons. First, our efforts to accelerate and absorb credit related losses in the third quarter should lower credit related costs in the near term. Second, the Company’s net interest

margin is expected to continue to rise over the next two quarters fueled by the lower renewal cost of deposits stemming from $483 million of CDs set to mature during the fourth quarter. Finally, I believe that management’s efforts to restructure branch operations, terminate certain non-executive management contracts and retire discontinued software and technology systems will result in continued cost savings into fiscal 2010.”

Mr. Ridgill concluded, “While this economy is challenging, there are a number of unique opportunities being created. We plan to be opportunistic and are prepared to take advantage of these opportunities as they emerge.”

About NewBridge Bancorp

NewBridge Bancorp is the parent company of NewBridge Bank, which is a full service state chartered community bank with headquarters in Greensboro, North Carolina. NewBridge Bank also offers financial planning and investment alternatives, such as mutual funds and annuities, through Raymond James Financial Services, Inc., a registered broker dealer.

NewBridge Bank ranks among the 10 largest banks in North Carolina with assets of approximately $2.0 billion. The Bank has 37 banking offices in the Piedmont Triad region of North Carolina, the Wilmington, NC area and the area surrounding Harrisonburg, VA. The stock of NewBridge Bancorp trades on the NASDAQ Global Select Market under the symbol “NBBC.”

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.

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FINANCIAL SUMMARY

	Three Months Ended September 30, 2009							Three Months Ended September 30, 2008
	Average		Interest Income/		Average Yield/			Average		Interest Income/		Average Yield/
(Fully taxable equivalent basis, dollars in thousands)	Balance		Expense		Rate			Balance		Expense		Rate
Earning Assets
Loans receivable	$	1,518,257	$	20,736		5.42	%	$	1,601,183	$	25,100		6.24	%
Investment securities		311,403		4,206		5.36	%		257,871		3,469		5.35	%
Other earning assets		57,128		48		0.33	%		22,382		138		2.45	%
Total Earning Assets		1,886,788		24,990		5.25	%		1,881,436		28,707		6.07	%
Non-Earning Assets		131,399							173,359
Total Assets		2,018,187		24,990					2,054,795		28,707
Interest-Bearing Liabilities
Deposits		1,468,932		7,648		2.07	%		1,492,681		10,896		2.90	%
Borrowings		200,554		1,792		3.54	%		200,386		2,017		4.00	%
Total Interest-Bearing Liabilities		1,669,486		9,440		2.24	%		1,693,067		12,913		3.03	%
Demand deposits		157,889							161,367
Other liabilities		22,870							12,739
Shareholders’ equity		167,942							187,622
Total Liabilities and Shareholders’ Equity		2,018,187		9,440					2,054,795		12,913
Net Interest Income				15,550							15,794
Net Interest Margin						3.27	%						3.34	%
Interest Rate Spread						3.01	%						3.04	%
	Nine Months Ended September 30, 2009							Nine Months Ended September 30, 2008
	Average		Interest Income/		Average Yield/			Average		Interest Income/		Average Yield/
	Balance		Expense		Rate			Balance		Expense		Rate
Earning Assets
Loans receivable	$	1,555,566	$	63,990		5.50	%	$	1,560,476	$	77,377		6.62	%
Investment securities		299,682		11,865		5.29	%		318,949		13,229		5.54	%
Other earning assets		100,970		213		0.28	%		19,772		644		4.35	%
Total Earning Assets		1,956,218		76,068		5.20	%		1,899,197		91,250		6.42	%
Non-Earning Assets		122,068							179,064
Total Assets		2,078,286		76,068					2,078,261		91,250
Interest-Bearing Liabilities
Deposits		1,505,109		26,226		2.33	%		1,473,092		33,916		3.08	%
Borrowings		222,810		5,464		3.28	%		230,178		6,922		4.02	%
Total Interest-Bearing Liabilities		1,727,919		31,690		2.45	%		1,703,270		40,838		3.20	%
Demand deposits		157,196							166,940
Other liabilities		21,084							15,489
Shareholders’ equity		172,087							192,562
Total Liabilities and Shareholders’ Equity		2,078,286		31,690					2,078,261		40,838
Net Interest Income				44,378							50,412
Net Interest Margin						3.03	%						3.55	%
Interest Rate Spread						2.75	%						3.22	%

FINANCIAL SUMMARY

	2009									2008
Period-End Balances	Third			Second			First			Fourth			Third
(Dollars in thousands)	Quarter			Quarter			Quarter			Quarter			Quarter
Assets	$	2,009,544		$	2,065,297		$	2,136,621		$	2,078,627		$	2,108,294
Loans		1,495,966			1,526,550			1,575,452			1,604,525			1,626,504
Investment securities		344,268			314,999			305,280			288,571			272,298
Earning assets		1,857,677			1,927,843			1,949,362			1,947,964			1,917,535
Noninterest-bearing deposits		159,725			160,827			159,440			149,583			174,217
Savings deposits		40,365			41,091			40,960			39,692			39,696
NOW accounts		211,570			180,555			185,418			172,943			162,912
Money market accounts		376,982			401,211			397,979			401,098			409,833
Time deposits		823,916			877,770			921,331			900,148			838,634
Interest-bearing liabilities		1,662,807			1,713,320			1,783,521			1,729,695			1,739,899
Shareholders’ equity		166,397			167,248			173,727			179,236			184,151
Asset Quality Data
(Dollars in thousands)
Nonperforming loans:
Past due 90 days or more and still accruing	$	3,349		$	3,754		$	3,038		$	1,277		$	413
Nonaccrual loans		51,332			56,210			53,022			38,029			33,865
Restructured loans		3,007			4,062			4,078			250			260
Total nonperforming loans		57,688			64,026			60,138			39,556			34,538
Other real estate owned		19,031			16,030			12,345			9,080			7,587
Total nonperforming assets	$	76,719		$	80,056		$	72,483		$	48,636		$	42,125
Net chargeoffs		16,010			7,783			3,290			9,759			4,952
Allowance for credit losses		38,902			44,104			41,034			35,806			30,984
Allowance for credit losses to total loans		2.60	%		2.89	%		2.60	%		2.23	%		1.90	%
Nonperforming loans to total loans		3.86			4.19			3.82			2.47			2.12
Nonperforming assets to total assets		3.82			3.88			3.39			2.34			2.00
Nonperforming loans to total assets		2.87			3.10			2.81			1.90			1.64
Net charge-off percentage (annualized)		4.25			2.04			0.84			2.43			1.22
Allowance for credit losses to nonperforming loans		0.67	X		0.69	X		0.68	X		0.91	X		0.90	X

FINANCIAL SUMMARY

Income Statement Data	Three Months Ended September 30						Nine Months Ended September 30
(Dollars in thousands, except share data)	2009			2008			2009			2008
Interest income:
Loans	$	20,735		$	25,112		$	63,990		$	77,406
Other		3,736			3,144			10,577			12,509
Total interest income		24,471			28,256			74,567			89,915
Interest expense		9,441			12,913			31,690			40,838
Net interest income		15,030			15,343			42,877			49,077
Provision for credit losses		10,808			4,656			30,179			10,682
Net interest income after provision for credit losses		4,222			10,687			12,698			38,395
Noninterest income		5,595			4,635			14,294			15,993
Noninterest expense		19,818			17,637			53,895			51,933
Income (loss) before income taxes		(10,001	)		(2,315	)		(26,903	)		2,455
Income taxes		(4,347	)		(726	)		(11,719	)		774
Net income (loss)		(5,654	)		(1,589	)		(15,184	)		1,681
Dividends and accretion on preferred stock		(729	)		—			(2,187	)		—
Net income (loss) available to common shareholders		($6,383	)		($1,589	)		($17,371	)	$	1,681
Net income (loss) per share:
Basic		($0.41	)		($0.10	)		($1.11	)	$	0.11
Diluted		($0.41	)		($0.10	)		($1.11	)	$	0.11
Other Data
Return on average assets		(1.12	)%		(0.31	)%		(0.97	)%		0.11	%
Return on average equity		(13.47	)		(3.37	)		(11.76	)		1.17
Net yield on earning assets		3.27			3.34			3.03			3.55
Efficiency		93.72			85.73			91.86			77.81
Average loans to assets		75.23			77.92			74.85			75.09
Average loans to deposits		93.33			96.80			93.58			95.15
Average noninterest — bearing deposits to total deposits		9.71			9.76			9.46			10.18
Average equity to assets		8.32			9.13			8.28			9.27
Total risk-based capital ratio		12.21			10.18			12.21			10.18

COMMON STOCK DATA

	2009						2008
	Third		Second		First		Fourth		Third
	Quarter		Quarter		Quarter		Quarter		Quarter
Market value:
End of period	$	2.74	$	2.07	$	2.11	$	2.38	$	4.51
High		3.11		2.70		3.04		6.00		9.11
Low		1.82		1.39		0.94		2.01		3.90
Book value		7.28		7.34		7.75		8.10		11.76
Tangible book value		6.94		6.98		7.38		7.71		8.15
Dividend		—		—		—		—		0.05
Shares outstanding at period-end		15,655,868		15,655,868		15,655,868		15,655,868		15,655,868
Average shares outstanding		15,655,868		15,655,868		15,655,868		15,655,868		15,655,868