Newbridge Bancorp (NBBC) 8-K LSB Bancshares Reports 1ST Quarter Financial Results

[LSB LOGO]	News Release
	LSB TheBank — P.O. Box 867
	Lexington, NC 27293-0867 — www.lsbnc.com

LSB BANCSHARES REPORTS 1ST QUARTER FINANCIAL RESULTS

     LEXINGTON, N.C.—April 14, 2003—Robert F. Lowe, Chairman, President and Chief Executive Officer of LSB Bancshares, Inc. (NASDAQ: LXBK), parent company of Lexington State Bank, is reporting to shareholders, “With our nation at war and the ongoing uncertainty of terrorism, we experienced in the first quarter the continuation of a sluggish economy as interest rates remained at levels not seen in more than 40 years.”

     For the first quarter, 2003, LSB Bancshares’ net income was $2,554,000 or $.30 per diluted share, compared to $2,600,000 or $.31 per diluted share the first quarter of 2002, a decrease of 3.2% in earnings per share. Net interest income as of March 31, 2003, increased 6.3 % compared with a year ago; noninterest income increased 25.5% and noninterest expense increased 14.2% during the same period.

     The provision for loan losses in the first quarter was $587,000 compared to $380,000 the first quarter of last year, an increase of 54.5%. On an annualized basis, return on average assets at the end of the first quarter was 1.19% and return on average shareholders’ equity was 11.93%.

     As of March 31, 2003, assets increased 6.9%, deposits increased 7.3% and loans increased 12.5% compared to a year ago. Reserve for loan losses at the end of the first quarter was $7,394,000 or 1.12% of loans, while shareholders’ equity totaled $86,354,000.

     A quarterly dividend of $.16 per share will be paid April 15, 2003, to shareholders of record April 1, 2003, a 6.7% increase compared to LSB’s last quarterly dividend paid in January.

     Lowe said, “As previously announced, plans are to open an office this month in Winston-Salem’s Reynolda Manor Shopping Center as part of our Beeline Banking^SM service strategy for customers in the Reynolda Road, Old Town, Bethabara and North Point areas.”

     “Additionally, plans are proceeding to open an office in May in Archdale Commons on North Main Street in Archdale.” Lowe continued, “As our first location in Randolph County, we look forward to serving customers not only in the Archdale area but also in south High Point and southeast Guilford County as well.”

     Lowe noted, “The growth of LSBTheBankin its expanded markets is possible as a result of our most important asset, our people. As we have stated previously, our employees are involved in training

programs that allow them to remain well prepared in offering our customers the benefits of our financial products and services. By offering opportunities for professional development and establishing a secure and stimulating work environment, we are able to attract and retain an outstanding team of employees.”

     “At LSBTheBank, Beeline Banking is the connection our employees make to the lives of each customer and the communities we serve.” Lowe concluded, “Even during these challenging times for our nation and our economy, the consolidating financial services market continues to provide opportunities for LSBTheBankas a growing, satisfied customer base creates franchise value and, ultimately, shareholder value.”

     Lexington State Bank, which opened on July 5, 1949, is the 9th largest bank in North Carolina and the largest community bank based in the Piedmont Triad. LSB owns two subsidiaries: LSB Investment Services, Inc., which offers non-deposit, non-insured investment alternatives such as mutual funds and annuities; and Peoples Finance Co. of Lexington, Inc., which offers small loans and dealer financing.

     Common stock of the bank’s parent company, LSB Bancshares, Inc., is traded on the National Market and is quoted electronically under the NASDAQ symbolLXBK. The LSB website, which links online banking users to LSB By Net, iswww.lsbnc.com.

     Market makers include: BB&T Investment Services; Friedman Billings Ramsey & Co.; FTN Financial Securities Corp.; Goldman, Sachs & Co.; Keefe, Bruyette & Woods, Inc.; Merrill Lynch, Pierce, Fenner & Smith, Inc.; Morgan Keegan & Co., Inc.; Moors & Cabot, Inc.; Sandler O’Neill & Partners, and; SunTrust Robinson Humphrey.

NOTE: For more information, please contact Monty J. Oliver, EVP & Chief Financial Officer @ 336-242-6207 or 336-248-6500 or 1-800-876-6505, ext. 207

This news release contains forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections. Please refer to LSB’s filings with the Securities and Exchange Commission for a summary of important factors that could affect LSB’s forward-looking statements. LSB undertakes no obligation to revise these statements following the date of the news release.

LSB Bancshares, Inc.
Consolidated Balance Sheets
(In Thousands)

			March 31
			2003			2002
Assets
Cash and Due from Banks			$	40,221		$	30,988
Interest-Bearing Bank Balances				4,819			9,751
Federal Funds Sold				33,370			38,201
Investment Securities:
	Held to Maturity, at Amortized Cost			40,676			54,469
	Available for Sale, at Market Value			98,888			99,415
Loans				658,275			584,884
	Less, Allowance for Loan Losses			(7,394	)		(6,588	)
		Net Loans		650,881			578,296
Premises and Equipment				14,004			12,866
Other Assets				11,217			12,011
		Total Assets	$	894,076		$	835,997
Liabilities
Deposits:
	Demand		$	89,023		$	78,392
	Savings, N.O.W. and Money Market Accounts			401,728			364,014
	Certificates of Deposit of less than $100,000			141,957			165,440
	Certificates of Deposit of $100,000 or more			101,980			77,033
		Total Deposits		734,688			684,879
Securities Sold Under Agreements to Repurchase				1,703			1,385
Borrowings from the Federal Home Loan Bank				63,000			63,000
Other Liabilities				8,331			7,027
		Total Liabilities		807,722			756,291
Shareholders’ Equity
Preferred Stock, Par Value $.01 Per Share:
	Authorized 10,000,000 shares; none issued			0			0
Common Stock, Par Value $5 Per Share:
	Authorized 50,000,000 Shares; Issued 8,480,955 Shares in 2003 and 8,441,846 Shares in 2002			42,405			42,209
Paid-In Capital				9,772			9,860
Directors’ Deferred Plan				(1,125	)		(958	)
Retained Earnings				33,775			28,777
Accumulated Other Comprehensive Income				1,527			(182	)
		Total Shareholders’ Equity		86,354			79,706
		Total Liabilities and Shareholders’ Equity	$	894,076		$	835,997
Memorandum: Standby Letters of Credit			$	3,708		$	5,617

LSB Bancshares, Inc.
Consolidated Statements of Income
(In Thousands Except Share Data and Note)

				Three Months Ended
				March 31
				2003		2002
Interest Income
	Interest and Fees on Loans			$	11,311	$	11,228
	Interest on Investment Securities:
		Taxable			1,042		1,503
		Tax Exempt			405		433
	Interest-Bearing Bank Balances				54		78
	Federal Funds Sold				97		176
		Total Interest Income			12,909		13,418
Interest Expense
	Deposits				2,299		3,361
	Securities Sold Under Agreements to Repurchase				5		28
	Borrowings for the Federal Home Loan Bank				775		778
			Total Interest Expense		3,079		4,167
Net Interest Income					9,830		9,251
	Provision for Loan Losses				587		380
	Net Interest Income After Provision for Loan Losses				9,243		8,871
Noninterest Income
	Service Charges on Deposit Accounts				1,607		1,423
	Gains on Sales of Mortgages				358		184
	Other Operating Income				1,384		1,061
		Total Noninterest Income			3,349		2,668
Noninterest Expense
	Personnel Expense				5,016		4,182
	Occupancy Expense				384		356
	Equipment Depreciation and Maintenance				475		430
	Other Operating Expense				2,882		2,702
		Total Noninterest Expense			8,757		7,670
	Income Before Income Taxes				3,835		3,869
	Income Taxes				1,281		1,269
Net Income					2,554		2,600
Earnings Per Share
	Basic			$	0.30	$	0.31
	Diluted			$	0.30	$	0.31
Weighted Average Shares Outstanding
	Basic				8,475,330		8,441,846
	Diluted				8,540,543		8,495,352

LSB Bancshares, Inc.
Financial Highlights
(In Thousands Except Ratios)

			Three Months Ended March 31
			2003			2002			Change
Financial Ratios
	Return On Average Assets			1.19			1.26			(7	)BP
	Return On Average Shareholders’ Equity			11.93			13.05			(112	)
	Net Interest Margin (FTE):			4.95			4.86			9
Average Balances
	Loans		$	649,943		$	581,057			11.9	%
	Earning Assets			819,214			787,190			4.1
	Total Assets			871,941			836,692			4.2
	Interest-Bearing Deposits			630,229			609,025			3.5
	Total Deposits			713,004			684,550			4.2
Allowance For Loan Losses
	Beginning Balance		$	7,282		$	6,440			13.1	%
	Provision For Loan Losses			587			380			54.5
	Loans Charged Off			(533	)		(287	)		85.7
	Recoveries			58			55			5.5
	Ending Balance			7,394			6,588			12.2
Nonperforming Assets
	Nonperforming Loans:
		Past Due 90 Days Or More	$	2,676		$	1,902			40.7	%
		Nonaccrual Loans		576			851			(32.3	)
		Restructured Loans		245			1,801			(86.4	)
		Total Nonperforming Loans		3,497			4,554			(23.2	)
		Other Real Estate		1,669			1,048			59.3
		Total Nonperforming Assets		5,166			5,602			(7.8	)
Asset Quality Ratios
	Nonperforming Loans To Total Loans			0.53	%		0.78	%		(0.25	)BP
	Nonperforming Loans To Total Assets			0.39			0.54			(0.15	)
	Allowance For Loan Losses To Total Loans			1.12			1.13			(0.00	)
	Net Charge-offs To Average Loans			0.07			0.04			0.03
	Allowance For Loan Losses To Nonperforming Loans			2.11			1.45
	BP—Denotes Basis Points