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

Exhibit 99.1

LSB Bancshares Reports 1st Quarter Financial Results

LEXINGTON, N.C., April 17, 2006 — LSB Bancshares, Inc. (Nasdaq: LXBK), parent company of Lexington State Bank, reported net income in the first quarter of 2006 of $1,741,000, or $0.20 per diluted share, compared to $2,232,000, or $0.26 per diluted share, in the first quarter of 2005. The decrease in earnings was primarily attributable to a significantly higher provision for loan losses in the first quarter of 2006 relative to the first quarter of 2005.

Net interest income, which benefited both from an improvement in the net interest margin (4.92% versus 4.88%) and 5% growth in average earning assets, increased 6% to $10,955,000 in the first quarter of 2006 from $10,353,000 in the year-ago period. This increase was offset by a higher provision for loan losses, which was $1,407,000 in 2006’s first quarter, up from $539,000 in the year-ago period. The higher provision for loan losses reflects an increase in charge-offs in the first quarter of 2006, as well as ongoing economic softness that is affecting the Company’s customers in many of the markets served. Noninterest income was $3,199,000 in 2006’s first quarter, down slightly from $3,262,000 in the year-ago level, with most of that decline due to a reduction in gains on the sale of mortgages. Noninterest expense was $10,282,000, up 5% from $9,763,000 in the first quarter of 2006.

Most major areas of the balance sheet demonstrated single-digit percentage growth over the past year. Assets increased 4% to $986 million, while net loans increased 1% to $747 million. Deposits grew 10% to $843 million. Shareholders’ equity, which represented 9.3% of assets, increased to $92.0 million, or $10.78 per share.

Nonperforming assets, including nonaccruing loans, accruing loans more than 90 days past due, restructured loans and other real estate owned, were $7.6 million at March 31, 2006, up from $4.7 million at the year-ago date but down from $8.1 million at December 31, 2005. Included in the $7.6 million was $4.7 million in other real estate owned, much of which related to the acquisition, by means of deed-in-lieu of foreclosure, of coastal condominium units by the Bank during the second quarter of 2005. Subsequent to the end of the first quarter, $2.5 million in loans to a borrower in the furniture industry was moved to nonaccrual status as a result of the borrower’s failure to satisfy the terms of a liquidation agreement. While these loans are secured, the extent of losses on the loans, if any, can not be determined as of the date of this release. The allowance for loan losses at the end of 2006’s first quarter was $8.4 million, or 1.11% of loans, versus $8.1 million, or 1.09% of gross loans, at the end of 2005’s first quarter.

According to LSB Bancshares Chairman, President and CEO Robert F. Lowe, “Although we were gratified by many aspects of the first quarter’s performance, the banking environment remains challenging. While the Bank has recently experienced sequential quarterly improvement in asset quality, pockets of economic weakness persist, as evidenced by the $2.5 million in loans that were put on nonaccrual status after the end of the quarter. We will continue to monitor our delinquencies and to work diligently to minimize any losses on those credits. Notwithstanding this increase in nonaccruing loans, it is important to note that the first quarter was marked by several positive highlights. Margins remained high and, in fact, improved slightly from the year-ago quarter; noninterest expense growth was limited to approximately 5%; and deposit growth was strong, reflecting not only higher balances by many customers but also the addition of new customer relationships as well.”

LSB Bancshares recently declared a quarterly cash dividend of $0.17 per share of common stock, payable on April 15, 2006, to shareholders of record on April 1, 2006. This is the same

amount as in the year-ago quarter.

Lexington State Bank, which opened on July 5, 1949, is a community bank based in the Piedmont region of North Carolina. The Bank 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.

LSB The Bank is one of the largest community banks in North Carolina, with 25 offices in Davidson, Forsyth, Guilford, Randolph and Stokes counties and a mortgage origination office in Wake County. Services are also available through 31 ATMs and cash dispensers, “LSB By Net” online banking and 24-hour “LSB By Phone” banking.

Common stock of the bank’s parent company, LSB Bancshares, Inc., is traded on the Nasdaq National Market and is quoted under the symbol LXBK. Additional information about LSB is available on its web site,www.lsbnc.com.

Market makers include: Davenport & Company LLC; Friedman Billings Ramsey & Co.; FTN Midwest Research Secs.; Goldman, Sachs & Co.; Keefe, Bruyette & Woods, Inc.; Morgan Keegan & Co., Inc.; Morgan Stanley & Co., Inc.; Moors & Cabot, Inc.; The Robinson Humphrey Co.; Sandler O’Neill & Partners, and Schwab Capital Markets.

Information in this press release contains forward-looking statements. These statements are identified by words such as “expects,” “anticipates,” “should,” or other similar statements about future events. These forward- looking statements involve estimates, assumptions by management, risks, and uncertainties that could cause actual results to differ materially from current projections, including without limitations, the effects of future economic conditions, legislative and regulatory changes, and the effects of competition. Additional factors that could cause actual results to differ materially from those anticipated by forward-looking statements are discussed in LSB’s filings with the Securities and Exchange Commission, including without limitation, its annual report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. LSB undertakes no obligations to revise these statements following the date of this news release.

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

LSB Bancshares Inc.
Consolidated Balance Sheets
(In thousands)

	March 31
	2006			2005
Assets
Cash and Due from Banks	$	40,998		$	37,935
Interest-Bearing Bank Balances		999			1,358
Federal Funds Sold		22,327			17,489
Investment Securities:
Held to Maturity, at Amortized Cost		29,873			29,300
Available for Sale, at Market Value		107,019			98,958
Loans		754,976			743,956
Less, Allowance for Loan Losses		(8,392	)		(8,145	)
Net Loans		746,584			735,811
Premises and Equipment		19,238			17,577
Other Assets		18,713			13,633
Total Assets		985,751			952,061
Liabilities
Deposits:
Demand		140,526			103,165
Savings, N.O.W. and Money Market Accounts		418,174			414,482
Certificates of Deposit of less than $100,000		152,272			128,874
Certificates of Deposit of $100,000 or more		131,655			117,179
Total Deposits		842,627			763,700
Securities Sold Under Agreements to Repurchase		837			1,395
Borrowings from the Federal Home Loan Bank		43,000			90,000
Other Liabilities		7,337			7,098
Total Liabilities		893,801			862,193
Shareholders’ Equity
Preferred Stock, Par Value $.01 Per Share:
Authorized 10,000,000 shares; None Issued		—			—
Common Stock, Par Value $5 Per Share:
Authorized 50,000,000 Shares; Issued 8,528,017 Shares in 2006 and 8,554,860 Shares in 2005		42,640			42,774
Paid-In Capital		9,472			10,022
Directors’ Deferred Plan		(1,348	)		(1,285	)
Retained Earnings		42,715			39,370
Accumulated Other Comprehensive Loss		(1,529	)		(1,013	)
Total Shareholders’ Equity		91,950			89,868
Total Liabilities and Shareholders’ Equity	$	985,751		$	952,061
Memorandum: Standby Letters of Credit	$	5,365		$	5,131

LSB Bancshares Inc.
Consolidated Statements of Income
(In thousands, except share data)

	Three Months Ended
	March 31
	2006		2005
Interest Income
Interest and Fees on Loans	$	14,489	$	12,290
Interest on Investment Securities:
Taxable		978		877
Tax Exempt		319		346
Interest-Bearing Bank Balances		82		88
Federal Funds Sold		249		81
Total Interest Income		16,117		13,682
Interest Expense
Deposits		4,549		2,376
Securities Sold Under Agreements to Repurchase		5		4
Borrowings from the Federal Home Loan Bank		608		949
Total Interest Expense		5,162		3,329
Net Interest Income		10,955		10,353
Provision for Loan Losses		1,407		539
Net Interest Income After Provision for Loan Losses		9,548		9,814
Noninterest Income
Service Charges on Deposit Accounts		1,592		1,553
Gains on Sales of Mortgages		78		132
Other Operating Income		1,529		1,577
Total Noninterest Income		3,199		3,262
Noninterest Expense
Personnel Expense		5,723		5,334
Occupancy Expense		479		464
Equipment Depreciation and Maintenance		530		591
Other Operating Expense		3,550		3,374
Total Noninterest Expense		10,282		9,763
Income Before Income Taxes		2,465		3,313
Income Taxes		724		1,081
Net Income	$	1,741	$	2,232
Earnings Per Share
Basic	$	0.20	$	0.26
Diluted	$	0.20	$	0.26
Weighted Average Shares Outstanding
Basic		8,528,327		8,578,604
Diluted		8,573,069		8,622,545

LSB Bancshares, Inc.
Financial Highlights
(In thousands, except ratios)

	Three Months Ended March 31
	2006			2005			Change
Financial Ratios:
Return on average assets		0.72	%		0.97	%		(25	)BP
Return on average shareholders’ equity		7.59	%		9.89	%		(230	)
Net Interest Margin (FTE)		4.92	%		4.88	%		4
Average Balances:
Loans	$	754,682		$	727,081			3.8	%
Earning assets		913,339			873,542			4.6
Total assets		979,251			932,064			5.1
Interest-bearing deposits		702,253			647,356			8.5
Total deposits		829,024			739,821			12.1
Allowance for loan losses:
Beginning balance	$	8,440		$	7,962			6.0	%
Provision for loan losses		1,292			539			139.7
Loans charged off		(1,409	)		(446	)		215.9
Recoveries		69			90			(23.3	)
Ending balance		8,392			8,145			3.0
Nonperforming assets
Nonperforming Loans:
Past due 90 days or more	$	2,038		$	1,785			14.2	%
Nonaccrual loans		242			545			(55.6	)
Restructured loans		617			795			(22.4	)
Total nonperforming loans		2,897			3,125			(7.3	)
Other real estate		4,689			1,536			205.3
Total nonperforming assets		7,586			4,661			62.8
Asset Quality Ratios
Nonperforming loans to total loans		0.38	%		0.42	%	(4		)BP
Nonperforming loans to total assets		0.29	%		0.33	%		(4	)
Allowance for loan losses to total loans		1.11	%		1.09	%		2
Net charge-offs to average loans		0.18	%		0.05	%		13
Allowance for loan losses to nonperforming loans		2.90	X		2.61	X

BP— Denotes Basis Points