Newbridge Bancorp (NBBC) 8-K LSB Bancshares Reports 2nd Quarter Financial Results

EXHIBIT 99.1

News Release
LSBTheBank | P.O. Box 867
Lexington, NC 27293-0867 | www.lsbnc.com

For Immediate Release
Contact: Monty J. Oliver, EVP & CFO
                336 248-6500 Ext 207 or
                     1-800-876-6505 Ext 207

LSB Bancshares Reports 2nd Quarter Financial Results

LEXINGTON, N.C., July 19, 2007 — LSB Bancshares, Inc. (Nasdaq: LXBK), the parent company of Lexington State Bank, reported net income in the second quarter of 2007 of $1,709,000, or $0.20 per diluted share, compared to $1,546,000, or $0.18 per diluted share, in the second quarter of 2006. As is discussed more fully below, the increase in earnings was primarily due to lower noninterest expense.

Net interest income, which was affected by a significantly lower net interest margin, decreased 6% to $10,248,000 in the second quarter of 2007 from $10,951,000 in the year-ago period. The provision for loan losses was $1,191,000 in 2007’s second quarter, versus $611,000 in the second quarter of 2006, while noninterest income declined 4% to $3,425,000, versus $3,586,000 in 2006’s second quarter.

Noninterest expense in 2007’s second quarter declined to $9,966,000 in the second quarter of 2007 from $11,688,000 in 2006’s second quarter. The reduction in noninterest expense is a result of ongoing cost-cutting initiatives as well as a $1 million write-down on a residential condominium development on the South Carolina coast that was taken in the second quarter of 2006.

For the six months ended June 30, 2007, net income was $3,479,000, or $0.41 per diluted share, compared to $3,287,000, or $0.38 per diluted share, in the first half of 2006. Net interest income decreased 6% to $20,497,000 in the six months ended June 30, 2007 versus $21,906,000 in the year-ago period. Noninterest income for the first six months of 2007 was $6,808,000, essentially unchanged form $6,785,000 in the first six months of 2006, while noninterest expense decreased 9% to $20,031,000 from $21,970,000 over the same respective periods. The provision for loan losses increased approximately 6% to $2,148,000 for the first half of 2007.

As of June 30, 2007, total assets were approximately $1.019 billion, up from $986 million at the year-ago date, while deposits at the end of 2007’s second quarter were $853 million, reflecting growth of 3% from June 30, 2006. Net loans were $784 million at June 30, 2007, up 5% from the amount at June 30, 2006. The allowance for loan losses at the end of 2007’s second quarter was $10.1 million or 1.27% of loans. Shareholders’ equity totaled $89.6 million, and represented an equity-to-assets ratio of 8.8%. Nonperforming assets, which includes nonaccrual loans, accruing loans more than 90 days past due, other real estate owned and renegotiated debt, totaled $10.5 million at June 30, 2007, versus $8.9 million at June 30, 2006.

Commenting on the results, LSB Bancshares Chairman, President and CEO Robert F. Lowe stated, “One of the more gratifying aspects of the second quarter was the progress made containing expenses, which will likely remain a key component of our earnings growth going forward. We expect additional cost savings, as well as revenue enhancements, to result from the upcoming merger with FNB Financial Services Corp., which will be voted upon at our upcoming Annual Meeting.”

LSB Bancshares recently declared a quarterly cash dividend of $0.17 per share of common stock, payable

on July 15, 2007, to shareholders of record on July 1, 2007.

LSB Bancshares, Inc. is the parent company of Lexington State Bank. 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.

Common stock of LSB Bancshares, Inc. is traded on the Nasdaq Stock Market under the symbol “LXBK.” The LSB website, which links online banking users to LSB by Internet, is www.lsbnc.com.

Market makers include: Davenport & Company LLC; Friedman Billings Ramsey & Co.; FTN Financial Securities Corp.; Goldman Sachs & Co.; Keefe, Bruyette & Woods, Inc.; Morgan Keegan & Co., Inc.; Morgan Stanley & Co., Inc.; Moors & Cabot, Inc.; SunTrust Robinson Humphrey; 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.

Additional Information and Where To Find It

In connection with the merger with FNB Financial Services Corp. (“FNB”), LSB Bancshares, Inc. (“LSB”) filed a registration statement, which includes a joint proxy statement/prospectus which was sent to each company’s shareholders on or about June 18, 2007. Each of LSB and FNB may file other relevant documents concerning the merger with the Securities and Exchange Commission (the “SEC”). Stockholders are urged to read the registration statement and the joint proxy statement/prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they contain important information.

You may obtain a free copy of the joint proxy statement/prospectus, as well as other filings containing information about LSB and FNB, at the SEC’s website (http://www.sec.gov). You may also obtain these documents, free of charge, by accessing LSB’s website (http://www.lsbnc.com), or by accessing FNB’s website (http://www.fnbsoutheast.com).

Participants in the Solicitation

LSB and FNB and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of LSB and/or FNB in connection with the merger. Information about the directors and executive officers of LSB is set forth in the joint proxy statement/prospectus, as filed with the SEC on June 18, 2007. Information about the directors and executive officers of FNB is set forth in the joint proxy statement/prospectus, as filed with the SEC on June 18, 2007. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the joint proxy statement/prospectus regarding the merger. You may obtain free copies of these documents as described above.

CONTACT: Monty J. Oliver, EVP & CFO; 336-242-6207 or 336-248-6500 or 1-800-876-6505, ext 207.

LSB Bancshares Inc.
Consolidated Balance Sheets
(In thousands)

	June 30
	2007			2006
Assets
Cash and Due from Banks	$	31,656		$	38,118
Interest-Bearing Bank Balances		863			1,220
Federal Funds Sold		11,359			17,118
Investment Securities:
Held to Maturity, at Amortized Cost		27,916			27,610
Available for Sale, at Market Value		124,786			116,832
Loans		794,481			756,845
Less, Allowance for Loan Losses		(10,094	)		(8,502	)
Net Loans		784,387			748,343
Premises and Equipment		19,798			19,622
Other Assets		17,827			17,407
Total Assets	$	1,018,592		$	986,270
Liabilities
Deposits:
Demand	$	158,009		$	149,653
Savings, N.O.W. and Money Market Accounts		390,010			396,558
Certificates of Deposit of less than $100,000		146,054			136,932
Certificates of Deposit of $100,000 or more		158,721			145,568
Total Deposits		852,794			828,711
Securities Sold Under Agreements to Repurchase		718			909
Borrowings from the Federal Home Loan Bank		69,000			59,000
Unfunded Projected Pension and Other Postretirement Benefit Obligation		1,149			—
Other Liabilities		5,317			6,558
Total Liabilities		928,978			895,178
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 8,390,748 Shares in 2007 and 8,507,355 Shares in 2006		41,954			42,537
Paid-In Capital		7,941			9,146
Directors’ Deferred Plan		(1,076	)		(1,361	)
Retained Earnings		43,283			42,815
Accumulated Other Comprehensive Income		(2,488	)		(2,045	)
Total Shareholders’ Equity		89,614			91,092
Total Liabilities and Shareholders’ Equity	$	1,018,592		$	986,270
Memorandum: Standby Letters of Credit	$	4,249		$	5,206

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

	Three Months Ended				Six Months Ended
	June 30				June 30
	2007		2006		2007		2006
Interest Income
Interest and Fees on Loans	$	15,660	$	15,017	$	30,998	$	29,506
Interest on Investment Securities:
Taxable		1,253		1,137		2,488		2,115
Tax Exempt		297		306		615		625
Interest-Bearing Bank Balances		89		83		190		165
Federal Funds Sold		118		223		220		472
Total Interest Income		17,417		16,766		34,511		32,883
Interest Expense
Deposits		6,319		5,119		12,335		9,668
Securities Sold Under Agreements to Repurchase and Federal Funds Purchased		2		2		4		7
Borrowings from the Federal Home Loan Bank		848		694		1,675		1,302
Total Interest Expense		7,169		5,815		14,014		10,977
Net Interest Income		10,248		10,951		20,497		21,906
Provision for Loan Losses		1,191		611		2,148		2,018
Net Interest Income After Provision for Loan Losses		9,057		10,340		18,349		19,888
Noninterest Income
Service Charges on Deposit Accounts		1,675		1,843		3,158		3,435
Gains on Sales of Mortgages		76		101		152		179
Other Operating Income		1,674		1,642		3,498		3,171
Total Noninterest Income		3,425		3,586		6,808		6,785
Noninterest Expense
Personnel Expense		5,291		5,545		10,609		11,268
Occupancy Expense		496		478		999		957
Equipment Depreciation and Maintenance		593		535		1,192		1,065
Other Operating Expense		3,586		5,130		7,231		8,680
Total Noninterest Expense		9,966		11,688		20,031		21,970
Income Before Income Taxes		2,516		2,238		5,126		4,703
Income Taxes		807		692		1,647		1,416
Net Income	$	1,709	$	1,546	$	3,479	$	3,287
Earnings Per Share
Basic	$	0.20	$	0.18	$	0.41	$	0.39
Diluted	$	0.20	$	0.18	$	0.41	$	0.38
Weighted Average Shares Outstanding
Basic		8,400,721		8,518,434		8,408,925		8,522,718
Diluted		8,404,524		8,549,643		8,418,100		8,560,576

LSB Bancshares, Inc.

Financial Highlights

(In thousands, except ratios)

	Three Months Ended June 30
	2007			2006			Change
Financial Ratios:
Return on average assets		0.69	%		0.63	%	6		BP
Return on average shareholders’ equity		7.56	%		6.65	%		91
Net Interest Margin (FTE)		4.40	%		4.83	%		(43	)
Average Balances:
Loans	$	784,526		$	755,220			3.9	%
Earning assets		942,586			918,984			2.6
Total assets		998,437			985,937			1.3
Interest-bearing deposits		685,920			689,215			(0.5	)
Total deposits		838,883			830,437			1.0
Allowance for loan losses:
Beginning balance	$	9,722		$	8,392			15.8	%
Provision for loan losses		1,191			611			94.9
Loans charged off		(973	)		(1,153	)		(15.6	)
Recoveries		154			652			(76.4	)
Ending balance		10,094			8,502			18.7

	Six Months Ended June 30
	2007			2006			Change
Financial Ratios:
Return on average assets		0.71	%		0.67	%	4		BP
Return on average shareholders’ equity		7.75	%		7.11	%		64
Net Interest Margin (FTE):		4.46	%		4.87	%		(41	)
Average Balances:
Loans	$	777,566		$	754,952			3.0	%
Earning assets		935,041			916,176			2.1
Total assets		991,084			982,612			0.9
Interest-bearing deposits		679,382			695,698			(2.3	)
Total deposits		832,133			829,734			0.3
Allowance for loan losses:
Beginning balance	$	9,564		$	8,440			13.3	%
Provision for loan losses		2,148			2,018			6.4
Loans charged off		(2,053	)		(2,698	)		(23.9	)
Recoveries		435			742			(41.4	)
Ending balance		10,094			8,502			18.7
Nonperforming assets
Nonperforming Loans:
Past due 90 days or more	$	2,020		$	1,534			31.7	%
Nonaccrual loans		3,960			2,956			34.0
Restructured loans		96			612			(84.3	)
Total nonperforming loans		6,076			5,102			19.1
Other real estate		4,392			3,755			17.0
Total nonperforming assets		10,468			8,857			18.2
Asset Quality Ratios
Nonperforming loans to total loans		0.76	%		0.67	%	9		BP
Nonperforming loans to total assets		0.60	%		0.52	%		8
Allowance for loan losses to total loans		1.27	%		1.12	%		15
Net charge-offs to average loans		0.21	%		0.26	%		(5	)
Allowance for loan losses to nonperforming loans		1.66	X		1.67	X
BP— Denotes Basis Points

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