Newbridge Bancorp (NBBC) 8-K Newbridge Bancorp Reports Increased Earnings

Exhibit 99.1

April 22, 2013

Contact:

Ramsey Hamadi, SEVP and Chief Financial Officer

336-369-0900

NEWBRIDGE BANCORP REPORTS INCREASED EARNINGS

FOR MARCH QUARTER 2013

GREENSBORO, N.C. – NewBridge Bancorp (Nasdaq: NBBC) today reported a sharp increase in earnings for the quarter ended March 31, 2013 over the quarter ended March 31, 2012. Net income available to common shareholders totaled $4.0 million, compared to $781,000 reported in the first quarter of 2012. Earnings per diluted common share were $0.13, an increase of 160% over the same quarter last year.

“Our first quarter results are highlighted by substantially improved earnings, significantly enhanced asset quality, core organic loan growth and a stronger capital position,” said Pressley A. Ridgill, President and Chief Executive Officer of NewBridge. “Each of these accomplishments was achieved due to critical strategic events in 2012. We concluded our asset disposition plan, which resulted in a $106 million reduction of adversely classified assets in 2012 and the reduction of our classified asset percentage from 77.6% at December 31, 2011 to 30.5% at year end. The percentage at March 31, 2013 continued to decline to 26.6%. The successful execution of this plan means that our core earnings are no longer burdened with high chargeoffs and other credit related costs. We also achieved the closing of a private offering of $56 million in new preferred equity, which was converted to common equity in February 2013. This enhanced capital provides us the necessary strength to pursue other strategic options. Finally, with the reduction of the classified asset burden and our added capital strength, we intensified our focus on solid, quality loan growth. We invested in experienced commercial banking teams in Charlotte and Raleigh, the two largest banking markets in North Carolina. We also expanded lending activities within our legacy branch footprint. In the first quarter, loans held for investment increased $14.5 million, an annualized loan growth rate of 5%. Core retained loans increased $72 million over the last twelve months. A large portion of this growth came from our Charlotte and Raleigh market teams.”

March Quarter 2013 Performance Highlights.

· Net income for the first quarter was $4.7 million, an increase of 213% over the prior year’s first quarter.

> Net interest income declined 6.9% or $1.1 million.

> Provision for credit losses declined 72% or $2.5 million.

> Noninterest income, excluding gain on sale of investment securities, increased 53.0% or $1.6 million.

> Noninterest expense increased 4.0% or $544,000.

> Efficiency percentage was 71.2% for the quarter compared to 70.9% for the first quarter of 2012.

· Asset quality continued to improve.

> Nonperforming assets declined $2.5 million, or 9.4%, from the 2012 year end to $24.2 million.

> Allowance for credit losses was $26.1 million, a decrease of 2.1% from 2012 year end, while the percentage of the allowance to nonperforming loans increased 9.6% to 134.27%.

· Loans held for investment increased 5% (on an annualized basis) compared to the total at December 31, 2012.

> Core retained loans increased $72.3 million, or 6.85% over the prior year’s first quarter.

> Charlotte and Raleigh markets were responsible for a large portion of this net growth.

· Low-cost core deposits grew; however, loan yields continued to decline, resulting in continued pressure on the net interest margin.

> Funding mix continued to improve as low-cost core deposits grew $13.3 million from the 2012 year end and represented 75% of total deposits at March 31, 2013.

> Deposit costs declined to 0.28%, down 3 basis points from the fourth quarter of 2012.

> Loan yields were down 11 basis points to 4.66% from the fourth quarter of 2012.

> Net interest margin remained strong at 3.92%, increasing 1 basis point from the December 31, 2012 quarter.

· Capital levels increased.

> Already solid capital levels were enhanced by the fourth quarter 2012 equity raise of $56 million, all of which was converted into common equity in the 2013 first quarter.

> Tangible common equity increased to 8.5% of tangible assets.

> Tier 1 risk-based capital increased to 15.59%.

> Leverage capital increased to 12.48%.

> Total risk-based capital increased to 16.88%.

Net Interest Income

Net interest income declined $1.1 million to $15.1 million for the first quarter compared to the first quarter of 2012. This result was due primarily to a compression of our net interest margin, which declined 23 basis points to 3.92%. Liability costs were reduced 25 basis points; however, earning asset yields fell 48 basis points from the prior year’s first quarter. In particular, investment yields declined 0.88% to 3.18% during the quarter due to the sustained low interest rate environment and our intention of keeping the investment portfolio at a relatively short duration.

Noninterest Income

Noninterest income totaled $4.8 million, a $1.8 million improvement over the prior year’s first quarter. The Company recorded gains of $208,000 on sales of investment securities and $125,000 on other real estate owned (OREO). In the prior year’s first quarter, the Company had no gains on sales of investments and a loss of $1.0 million on OREO. The Company also experienced higher noninterest income from retail banking revenue, wealth management services and other equity investment gains, which are reflected as other noninterest income.

Noninterest Expense and Taxes

First quarter noninterest expense totaled $14.1 million, a 4.0% increase over the 2012 first quarter. Compensation expense increased $766,000, or 10.8%, over the prior year’s first quarter. Other noninterest expense declined $222,000, including a $157,000 reduction in OREO expense. The increase in compensation expense was due primarily to investments in our Charlotte and Raleigh commercial banking teams and, to a lesser extent, other key banking team additions in the Triad market. The Company’s effective tax rate for 2013 is 0% as we recorded the reversal of a portion of the impairment of our deferred tax asset to carry it at estimated realizable value.

Balance Sheet

Total assets were unchanged from year end at $1.71 billion. Loans held for investment increased 1.3% from year end 2012 but were offset by declines in loans held for sale and cash and cash equivalents. Total deposits increased $20.5 million over year end 2012 to $1.4 billion. Core deposits, which exclude time deposits, increased $13.3 million, or 1.3%, and totaled 75% of total deposits at March 31, 2013. Common equity increased $60.1 million during the quarter but was partially offset by a $56.2 million decline in preferred equity. The changes within equity were due primarily to $4.0 million of retained earnings and the conversion of $56 million in preferred stock to common shares.

Core Loan Growth

Total loans held for investment were $1.17 billion at March 31, 2013 and $1.16 billion at 2012 year end. However, growth in core retained loans was $72.3 million over the trailing twelve months (an annual rate of 6.85%). Approximately 83% of the trailing twelve month increase in core retained loans resulted from the Company’s market teams in Charlotte and Raleigh.

	2013			2012
	First			First
	Quarter			Quarter
Core Retained Loan Growth
(dollars in thousands)
Loans held for investment	$	1,169,887		$	1,173,671
Less classified loans		42,935			118,993
Core retained loans	$	1,126,952		$	1,054,678
Core retained loan growth	$	72,274
Trailing twelve month core retained loan growth		6.85	%

Asset Quality

In the first quarter, asset quality continued to improve. Nonperforming assets as a percentage of total assets declined to 1.41% from 1.56% at December 31, 2012. Nonperforming loans totaled $19.4 million, and OREO was $4.8 million. The allowance for credit losses was $26.1 million, or 134% of nonperforming loans, compared to $26.6 million and 125% at year end 2012. Total classified assets, which includes nonperforming assets and other potential problem assets, totaled $47.7 million, or 26.6% of the total Tier 1 capital and reserves of our banking subsidiary, NewBridge Bank (the Bank). Classified assets totaled 30.5% of the Bank’s Tier 1 capital plus reserves at December 31, 2012.

Outlook

We anticipate continued asset growth in the remainder of 2013. We also believe that the Company’s prior two quarters are indicators of our future core earnings potential. The low interest rate environment and intense competition for quality loans remain as our key challenges. Consequently, margin pressure is likely to continue. We intend to meet these challenges by growing 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 ratios 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.”

NewBridge Bank is the largest community bank in the 12-county Piedmont Triad Region of North Carolina and one of the largest community banks in the state. 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. NewBridge Bank has assets of approximately $1.7 billion with 37 locations 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 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 March 31
	2013			2012
Income Statement Data
(Dollars in thousands, except share data)
Interest income:
Loans	$	13,426		$	14,922
Investment securities		2,991			3,585
Other		7			15
Total interest income		16,424			18,522
Interest expense:
Deposits		788			1,744
Borrowings from the FHLB		253			259
Other		326			347
Total interest expense		1,367			2,350
Net interest income		15,057			16,172
Provision for credit losses		979			3,443
Net interest income after provision for credit losses		14,078			12,729
Noninterest income:
Retail banking		2,425			2,254
Mortgage banking services		558			563
Wealth management services		642			594
Gain on sale of investment securities		208			-
Writedowns and gain (loss) on sale of real estate acquired in settlement of loans, net		125			(1,008	)
Bank-owned life insurance		460			467
Other		380			130
Total noninterest income		4,798			3,000
Noninterest expense:
Personnel		7,827			7,061
Occupancy		1,014			1,004
Furniture and equipment		819			778
Technology and data processing		986			1,020
Legal and professional		673			671
FDIC insurance		453			441
Real estate acquired in settlement of loans		161			318
Other		2,212			2,308
Total noninterest expense		14,145			13,601
Income before income taxes		4,731			2,128
Income tax expense		-			617
Net income		4,731			1,511
Dividends and accretion on preferred stock		(730	)		(730	)
Net income available to common shareholders	$	4,001		$	781
Net income per share - basic	$	0.19		$	0.05
Net income per share - diluted	$	0.13		$	0.05

FINANCIAL SUMMARY

	2013			2012
	First			Fourth			Third			Second			First
	Quarter			Quarter			Quarter			Quarter			Quarter
Period-End Balance Sheet
(Dollars in thousands)
Assets
Loans held for sale	$	2,439		$	9,464		$	7,074		$	5,741		$	7,676
Loans held for investment		1,169,887			1,155,421			1,168,747			1,162,630			1,173,671
Allowance for credit losses		(26,067	)		(26,630	)		(35,016	)		(25,231	)		(27,918	)
Net loans held for investment		1,143,820			1,128,791			1,133,731			1,137,399			1,145,753
Investment securities		398,382			393,815			387,376			388,968			394,904
Other earning assets		11,752			9,006			10,646			35,936			5,730
Non-earning assets		155,686			167,631			175,082			180,392			191,905
Total Assets	$	1,712,079		$	1,708,707		$	1,713,909		$	1,748,436		$	1,745,968
Liabilities and Shareholders' Equity
Noninterest-bearing deposits	$	214,642		$	206,023		$	184,942		$	192,066		$	211,246
Savings deposits		47,050			44,450			44,990			45,371			44,118
NOW accounts		425,307			424,720			429,792			431,390			444,439
Money market accounts		324,864			323,326			350,189			374,217			383,256
Time deposits		341,091			333,974			379,823			406,153			366,135
Total deposits		1,352,954			1,332,493			1,389,736			1,449,197			1,449,194
Total borrowings		138,774			159,774			163,974			110,774			110,774
Other liabilities		20,393			20,426			20,834			18,914			18,954
Shareholders' equity		199,958			196,014			139,365			169,551			167,046
Total Liabilities and Shareholders' Equity	$	1,712,079		$	1,708,707		$	1,713,909		$	1,748,436		$	1,745,968

ASSET QUALITY DATA

(Dollars in thousands)
Total nonperforming loans	$	19,414		$	21,360		$	27,694		$	34,680		$	43,711
Other real estate owned		4,781			5,355			10,465			24,491			30,032
Total nonperforming assets	$	24,195		$	26,715		$	38,159		$	59,171		$	73,743
Loans identified as impaired	$	15,772		$	16,400		$	22,644		$	32,955		$	35,043
Other nonperforming loans		3,642			4,960			5,050			1,725			8,668
Total nonperforming loans		19,414			21,360			27,694			34,680			43,711
Performing classified loans		23,521			26,498			46,842			71,673			75,282
Total classified loans	$	42,935		$	47,858		$	74,536		$	106,353		$	118,993
Other real estate owned		4,781			5,355			10,465			24,491			30,032
Total classified assets	$	47,716		$	53,213		$	85,001		$	130,844		$	149,025
Classified percentage		26.59	%		30.53	%		48.10	%		63.24	%		72.09	%
Tier 1 capital (Bank) and reserves	$	179,428		$	174,320		$	176,729		$	206,901		$	206,723
Net chargeoffs		1,542			9,595			19,096			5,047			4,369
Allowance for credit losses		26,067			26,630			35,016			25,231			27,918
Allowance for credit losses to loans held for investment		2.23	%		2.30	%		3.00	%		2.17	%		2.38	%
Nonperforming loans to loans held for investment		1.66			1.85			2.37			2.98			3.72
Nonperforming assets to total assets		1.41			1.56			2.23			3.38			4.22
Nonperforming loans to total assets		1.13			1.25			1.62			1.98			2.50
Net chargeoff percentage (annualized)		0.54			3.26			6.52			1.73			1.48
Allowance for credit losses to nonperforming loans		134.27			124.67			126.44			72.75			63.87

INVESTMENT PORTFOLIO

(Dollars in thousands)	As of March 31, 2013
	Amortized		Gross		Gross			Estimated		Average			Average
	Cost		Unrealized gain		Unrealized loss			Fair value		Yield (%)			Duration (years)
US Treasury	$	20,000	$	-	$	-		$	20,000		0.06	%		0.05
US Agency		67,089		47		(416	)		66,720		1.94			5.63
Agency mortgage backed securities		19,106		1,887		-			20,993		5.37			1.87
Collateralized mortgage obligations		9,353		230		(3	)		9,580		5.67			2.30
Commercial mortgage backed securities		40,485		1,906		(51	)		42,340		3.29			3.49
Covered bonds		49,908		3,708		(18	)		53,598		3.49			3.57
Corporate bonds		148,740		6,053		(394	)		154,399		3.49			3.50
Municipal obligations		17,370		563		(26	)		17,907		7.04	*		4.51
Federal Home Loan Bank stock		6,189		-		-			6,189
Other		5,775		881		-			6,656
Total	$	384,015	$	15,275	$	(908	)	$	398,382		3.33	*		3.64

* Fully taxable equivalent basis

COMMON STOCK DATA

	2013		2012
	First		Fourth		Third		Second		First
	Quarter		Quarter		Quarter		Quarter		Quarter
Market value:
End of period	$	5.89	$	4.63	$	4.84	$	4.38	$	4.79
High		6.48		4.95		5.00		4.94		4.91
Low		4.50		3.92		3.74		3.88		3.71
Book value		5.19		5.58		5.56		7.48		7.32
Tangible book value		5.09		5.38		5.35		7.27		7.09
Average shares outstanding		21,055,250		15,655,868		15,655,868		15,655,868		15,655,868
Average diluted shares outstanding		29,699,040		20,978,610		15,655,868		16,465,346		16,299,355

OTHER DATA

	Three Months Ended March 31
	2013			2012
Tangible common equity	$	144,693		$	111,055
Return on average assets		1.13	%		0.35	%
Return on average equity		9.74			3.66
Net yield on earning assets		3.92			4.15
Average loans to assets		68.65			68.60
Average loans to deposits		87.38			83.37
Average noninterest - bearing deposits to total deposits		15.66			12.90
Average equity to assets		11.57			9.58
Total capital as a percentage of total risk weighted assets		16.88			14.45
Tangible common equity as a percentage of tangible assets		8.47			6.37
Tangible common equity as a percentage of total risk weighted assets		10.79			8.02

ANALYSIS OF YIELDS AND RATES

	Three Months Ended March 31, 2013								Three Months Ended March 31, 2012
	Average			Interest Income/		Average Yield/			Average		Interest Income/		Average Yield/
	Balance		��	Expense		Rate			Balance		Expense		Rate
(Fully taxable equivalent basis, dollars in thousands)
Earning Assets
Loans receivable	$	1,168,844		$	13,426		4.66	%	$	1,191,042	$	14,922		5.04	%
Investment securities		388,546			3,091		3.18	%		362,766		3,681		4.06	%
Other earning assets		11,999			7		0.24	%		23,978		15		0.25	%
Total Earning Assets		1,569,389			16,524		4.27	%		1,577,786		18,618		4.75	%
Non-Earning Assets		133,234								158,397
Total Assets	$	1,702,623			16,524				$	1,736,183		18,618
Interest-Bearing Liabilities
Deposits	$	1,128,121			788		0.28	%	$	1,244,232		1,744		0.56	%
Borrowings		147,572			579		1.59	%		120,808		606		2.02	%
Total Interest-Bearing Liabilities		1,275,693			1,367		0.44	%		1,365,040		2,350		0.69	%
Noninterest-bearing deposits		209,522								184,347
Other liabilities		20,354								20,529
Shareholders' equity		197,054								166,267
Total Liabilities and Shareholders' Equity	$	1,702,623			1,367				$	1,736,183		2,350
Net Interest Income				$	15,157						$	16,268
Net Interest Margin							3.92	%						4.15	%
Interest Rate Spread							3.83	%						4.06	%