Newbridge Bancorp (NBBC) 8-K Newbridge Bancorp Reports 49% Increase In Net Income to $1.5 Million

Exhibit 99.1

NEWBRIDGE BANCORP REPORTS 49% INCREASE IN NET INCOME TO $1.5 MILLION

• Net income climbs 49% over the prior year’s first quarter

• Net interest margin averages 4.15% for the first quarter

• Total classified loans decline 7% in the first quarter and 30% from the peak level

• Provision expense declines 43%, or $2.6 million, from the prior year’s first quarter

• Core deposits increase to 75% of total deposits

• Average cost of interest bearing deposits declines to 0.56% for the quarter

• Mortgage revenues and wealth management fees climb 32% and 9%, respectively, over the prior year’s first quarter

• Non-interest expense declines 6%, or $793,000, compared to the prior year’s first quarter

• Tier 1 Leverage Capital and Total Risk Based Capital of 10.62% and 14.45%, respectively at quarter end

GREENSBORO, N.C., April 25, 2012 – NewBridge Bancorp (NASDAQ: NBBC), parent of NewBridge Bank, today reported results for the three month period ended March 31, 2012. 

For the three months ended March 31, 2012 net income totaled $1.5 million compared to $1.0 million for the quarter ended March 31, 2011. After dividends and accretion on preferred stock, the Company reported net income available to common shareholders of $781,000, or $0.05 per diluted share, for the quarter ended March 31, 2012, compared to $282,000, or $0.02 per diluted share, for the quarter ended March 31, 2011.

Pressley A. Ridgill, President and Chief Executive Officer of NewBridge Bancorp, commented: “It is satisfying to see year-over-year operating improvement, resulting in nearly a 50% increase in net income. The positive trends include core deposit growth that exceeds our expectations, and allows us to maintain a strong and stable net interest margin that averaged 4.15% for the first quarter. Classified loans continue to decline resulting in a lower provision for credit losses that fell 43% or $2.6 million from last year’s first quarter. Mortgage and Wealth Management revenues continue to climb, while at the same time nearly $1 million of annual operating expenses have been eliminated from these two areas. Finally, our on-going focus on lowering controllable costs resulted in non-interest expense declining $793,000, or 6%, from the prior year first quarter.”

Net interest income

Despite some encouraging economic trends, soft loan demand continues to adversely affect the Company’s main source of revenue, interest income. Net interest income declined $1.2 million, or 6.9%, to $16.2 million for the quarter compared to $17.4 million a year ago. The Company’s net interest margin remained strong at 4.15% for the quarter ended March 31, 2012, declining 13 basis points from the prior year. However average loan balances declined $144.0 million, or 10.8%, over the same period. This resulted in a $2.3 million decline in interest income from loans. Interest income on investments declined 2.2%, or $80,000, due primarily to a 77 basis point decline in the average investment yield to 4.08% in the quarter ended March 31, 2012, compared to 4.85% in the same period a year ago. The decline in interest income from loans and investments was partially offset by lower interest expense on interest bearing liabilities, which fell by $1.2 million for the quarter ending March 31, 2012, compared to the prior year. This reduction in interest expense is reflected in the lower cost of interest bearing liabilities which fell 29 basis points from the prior year.

Balance Sheet

Total assets increased $11.4 million during the quarter to $1.75 billion at March 31, 2012. Loan balances declined $26.4 million to $1.17 billion during the quarter in spite of new commercial loan originations of $43.2 million, which included strong production at the recently opened Raleigh loan production office. Cash flow from loans and deposit growth was used to purchase investment securities, which increased $57.1 million during the quarter to $394.9 million. The Company had a net unrealized gain in its investment portfolio at March 31, 2012 of $5.5 million. At March 31, 2012, the weighted average duration of the investment portfolio was 3.38 years and the weighted average yield was 4.08%.

Total deposits increased $30.5 million during the quarter to $1.45 billion. Core deposits, defined as noninterest bearing demand accounts, savings, NOW and money market deposit accounts, increased 5.6%, or $57.8 million, but were partially offset by a $27.2 million decline in time deposits. Time deposits totaled $366.1 million at quarter end and represented 25% of the Company’s total deposits. Non-interest bearing deposits increased $38.9 million to $211.2 million at March 31, 2012, however a large percentage of this increase is expected to be of a temporary nature. The weighted average cost of interest bearing deposits was 0.56% during the quarter ended March 31, 2012.

Shareholders’ equity increased $3.7 million during the quarter to $167.0 million. This improvement was the result of a $2.9 million increase in comprehensive income from changes in the value of investment securities, as well as a $781,000 increase in retained earnings as a result of quarterly earnings. Tangible book value increased $0.24 during the quarter to $7.09 per share at March 31, 2012.

Noninterest Income

For the quarter ending March 31, 2012, non-interest operating income, which excludes gains and losses on sales of securities and other real estate owned (“OREO”), totaled $4.0 million or $51,000 less than non-interest operating income from the prior year period. Retail banking revenue declined $246,000 from a year ago to $2.3 million for the quarter ended March 31, 2012, however this decline was largely offset by higher mortgage and wealth management revenues, which increased $138,000 and $48,000, respectively.

Losses on the sale and write-down of OREO declined by $478,000 to $1.0 million for the quarter ended March 31, 2012, from $1.5 million for the quarter ended March 31, 2011.

There were no gains from sales of investments during the quarter ended March 31, 2012, compared to gains of $2.0 million during the quarter ended March 31, 2011.

Noninterest Expense

Noninterest expense declined $793,000, or 5.5%, to $13.6 million for the quarter just ended compared to $14.4 million for the prior year’s first quarter. The lower noninterest expense was due in large part to management’s on-going efforts to reduce controllable expense. Since the Company was formed in a merger of equals in 2007, approximately $16.5 million of annual expense has been eliminated.

Asset Quality

Total classified loans decreased 7.4%, or $9.5 million, during the quarter ended March 31, 2012, and 30%, or $51.1 million, since the peak level in September 2010. As a percentage of Tier 1 capital plus reserves, total classified assets declined to 72% at March 31, 2012, from 78% at December 31, 2011, and 93% at their peak

level at September 30, 2010. Nonperforming loans increased 7.8%, or $3.2 million, during the quarter. This increase was due primarily to slower than usual movement of property into OREO during the latter part of the quarter. Since the peak level, nonperforming loans have declined 31.8%, or $20.4 million, from $64.1 million at June 30, 2009. Nonperforming loans represent 3.72% of total loans held for investment. OREO decreased $555,000 during the quarter to $30.0 million. Including OREO, total nonperforming assets increased $2.6 million to $73.7 million, or 4.22% of total assets, at March 31, 2012. The average duration that property is held in OREO is 17 months. Troubled debt restructured loans totaled $15.7 million of the $43.7 million of nonperforming loans at March 31, 2012. Accruing restructured loans totaled $6.6 million and non-accruing restructured loans totaled $9.1 million. The Company evaluates all troubled debt restructured loans at the time of the restructuring for impairment, which typically results in the asset being moved to non-accrual. The Company’s highest risk and most closely monitored nonperforming assets are non-accruing loans excluding troubled debt restructures. These loans totaled $27.9 million at March 31, 2012, down $28.3 million, or 50.3%, since their peak level at June 30, 2009. Total classified loans crested later than many of the Company’s other credit metrics, rising until the September quarter of 2010. Over the last six quarters, classified loans declined 24.8%, or $39.3 million.

The allowance for credit losses totaled $27.9 million at March 31, 2012, or 2.38% of loans held for investment. The Company’s allowance for credit losses as a percentage of nonperforming loans (the “coverage percentage”) totaled 63.9% at March 31, 2012, compared to 71.2% at December 31, 2011 and 58.1% at March 31, 2011. The Company’s allowance for credit losses consists of general reserves totaling 83.7%, and specific reserves of 16.3%. The majority of current estimated losses from the Company’s nonperforming loans have been previously recognized through charge-offs. Consequently, the Company’s allowance for credit losses is generally applicable to inherent losses within the Company’s watch list and other performing loans portfolio. Since the current adverse credit cycle began in 2007, the Company has charged off $145.1 million of loans and OREO, or 9.0% of our highest/peak level of loan balances.

The Company is well within the regulatory commercial real estate high concentration guidelines in land acquisition, development and construction (the “AD&C portfolio”) loans as well as total commercial real estate loans. At March 31, 2012, the Company’s concentration levels were 36.84% and 95.43%, respectively, of total regulatory capital which compares favorably to the interagency regulatory guidance maximum concentrations of 100% and 300%, respectively. The AD&C portfolio totaled $63 million at March 31, 2012, including $34 million of speculative residential construction and residential acquisition and development loans. This portfolio is largely graded as classified loans.

Non-GAAP Financial Information

In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release includes non-GAAP financial measures such as the operating efficiency percentage and pre-tax, pre-securities gains and pre-credit related operating income. The Company believes these non-GAAP financial measures provide additional information that is useful to investors in understanding its underlying performance, business, and performance trends and such measures help facilitate performance comparisons with others in the banking industry. Non-GAAP measures have inherent limitations, are not required to be uniformly applied, and are not audited. Readers should be aware of these limitations and should be cautious in their use of such measures. To mitigate these limitations, the Company has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components in their entirety and to ensure that its performance is properly reflected to facilitate consistent period-to-period comparisons. Although management believes the above non-GAAP financial measures enhance investors’ understanding of the Company’s business and performance, these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures.

Please refer to the Non-GAAP Measures section later in this release for additional information.

About NewBridge Bancorp

NewBridge Bancorp is the parent company of 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”.

As 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 30 banking offices in 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 the Company 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 Bancorp’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 the Company’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 Bancorp 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, 2012							Three Months Ended March 31, 2011
	Average Balance		Interest Income/ Expense		Average Yield/ Rate			Average Balance		Interest Income/ Expense		Average Yield/ Rate
(Fully taxable equivalent basis, dollars in thousands)
Earning Assets
Loans receivable	$	1,191,042	$	14,922		5.04	%	$	1,335,001	$	17,236		5.24	%
Investment securities		362,766		3,681		4.08	%		314,394		3,756		4.85	%
Other earning assets		23,978		15		0.25	%		7,579		4		0.21	%
Total Earning Assets		1,577,786		18,618		4.75	%		1,656,974		20,996		5.14	%
Non-Earning Assets		158,397							146,709
Total Assets	$	1,736,183		18,618				$	1,803,683		20,996
Interest-Bearing Liabilities
Deposits	$	1,244,232		1,744		0.56	%	$	1,270,805		2,687		0.86	%
Borrowings		120,808		606		2.02	%		186,886		840		1.82	%
Total Interest-Bearing Liabilities		1,365,040		2,350		0.69	%		1,457,691		3,527		0.98	%
Noninterest-bearing deposits		184,347							163,633
Other liabilities		20,529							17,121
Shareholders’ equity		166,267							165,238
Total Liabilities and Shareholders’ Equity	$	1,736,183		2,350				$	1,803,683		3,527
Net Interest Income			$	16,268						$	17,469
Net Interest Margin						4.15	%						4.28	%
Interest Rate Spread						4.06	%						4.16	%

FINANCIAL SUMMARY

	2012			2011
	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Period-End Balances
(Dollars in thousands)
Assets	$	1,745,968		$	1,734,564		$	1,702,660		$	1,738,559		$	1,784,383
Loans held for investment		1,173,671			1,200,070			1,217,058			1,244,288			1,254,630
Loans held for sale		7,676			7,851			6,894			2,754			77,584
Investment securities		394,904			337,811			295,461			292,898			276,458
Earning assets		1,581,981			1,572,095			1,549,932			1,593,857			1,617,735
Noninterest-bearing deposits		211,246			172,351			167,689			161,703			165,534
Savings deposits		44,118			40,876			40,097			40,937			41,510
NOW accounts		444,439			441,292			423,258			423,445			445,455
Money market accounts		383,256			370,773			363,340			365,109			336,784
Time deposits		366,135			393,384			401,287			435,895			466,013
Interest-bearing liabilities		1,348,722			1,379,799			1,347,756			1,354,956			1,439,236
Shareholders’ equity		167,046			163,387			167,278			166,701			164,116
Asset Quality Data
(Dollars in thousands)
Nonperforming loans:
Commercial nonaccrual loans, not restructured	$	17,905		$	15,773		$	17,477		$	17,839		$	18,528
Commercial nonaccrual loans which have been restructured		8,116			7,489			9,870			11,042			12,215
Non-commercial nonaccrual loans		10,038			9,569			8,789			10,075			10,997
Non-commercial nonaccrual loans which have been restructured		990			283			133			308			683
Total nonaccrual loans		37,049			33,114			36,269			39,264			42,423
Loans past due 90 days or more and still accruing		29			14			26			65			32
Accruing restructured loans		6,633			7,406			7,167			8,351			7,531
Total nonperforming loans		43,711			40,534			43,462			47,680			49,986
Other real estate owned		30,032			30,587			26,469			25,729			26,329
Total nonperforming assets	$	73,743		$	71,121		$	69,931		$	73,409		$	76,315
Restructured loans, performing		3,101			4,888			4,577			0			0
Net chargeoffs		4,369			3,153			3,736			4,037			5,768
Allowance for credit losses		27,918			28,844			27,750			28,040			29,057
Allowance for credit losses to total loans		2.38	%		2.40	%		2.28	%		2.25	%		2.32	%
Nonperforming loans to loans held for investment		3.72			3.38			3.57			3.83			3.98
Nonperforming assets to total assets		4.22			4.10			4.11			4.22			4.28
Nonperforming loans to total assets		2.50			2.34			2.55			2.74			2.80
Net charge-off percentage (annualized)		1.48			1.03			1.20			1.25			1.75
Allowance for credit losses to nonperforming loans		63.87			71.16			63.85			58.81			58.13
Loans identified as impaired	$	35,043		$	32,591		$	33,827		$	37,483		$	36,497
Other nonperforming loans		8,668			7,943			9,635			10,197			13,489
Total nonperforming loans		43,711			40,534			43,462			47,680			49,986
Performing classified loans		75,282			87,959			92,327			95,500			95,424
Total classified loans	$	118,993		$	128,493		$	135,789		$	143,180		$	145,410

	2007		2008		2009		2010		2011		2012		TOTAL
Gross loan chargeoffs, and writedowns and losses on other real estate owned to peak loans during the credit cycle beginning January 1, 2007:
Gross loan chargeoffs
Commercial	$	5,052	$	5,046	$	11,232	$	9,052	$	5,045	$	1,335	$	36,762
Real estate - construction		825		7,339		12,227		5,379		3,985		848		30,603
Real estate - mortgage		1,300		5,012		10,110		7,260		6,822		2,368		32,872
Consumer		2,235		5,071		4,925		2,829		1,358		223		16,641
Other		0		0		0		6,200		1,387		60		7,647
Total gross loan chargeoffs	$	9,412	$	22,468	$	38,494	$	30,720	$	18,597	$	4,834	$	124,525
Other real estate owned writedowns and losses		4,001		3,571		1,294		5,508		5,238		1,008		20,620
Total chargeoffs, writedowns and losses	$	13,413	$	26,039	$	39,788	$	36,228	$	23,835	$	5,842	$	145,145
Peak loans at September 30, 2008													$	1,626,504
Chargeoffs, writedowns and losses to peak loans														8.92	%

FINANCIAL SUMMARY

	Three Months Ended March 31
	2012			2011
Income Statement Data
(Dollars in thousands, except share data)
Interest income:
Loans	$	14,922		$	17,236
Investment securities		3,585			3,665
Other		15			4
Total interest income		18,522			20,905
Interest expense:
Deposits		1,744			2,687
Borrowings from the FHLB		259			348
Other		347			492
Total interest expense		2,350			3,527
Net interest income		16,172			17,378
Provision for credit losses		3,443			6,073
Net interest income after provision for credit losses		12,729			11,305
Noninterest income:
Retail Banking		2,254			2,500
Mortgage banking services		563			425
Wealth management services		594			546
Gain on sale of investment securities		0			1,961
Writedowns and loss on sale of real estate acquired in settlement of loans		(1,008	)		(1,486	)
Bank-owned life insurance		467			408
Other		130			180
Total noninterest income		3,000			4,534
Noninterest expense
Personnel		7,061			7,290
Occupancy		1,004			1,043
Furniture and equipment		778			964
Technology and data processing		1,020			983
Legal and professional		671			625
FDIC insurance		441			795
Real estate acquired in settlement of loans		318			389
Other		2,308			2,305
Total noninterest expense		13,601			14,394
Income (loss) before income taxes		2,128			1,445
Income taxes		617			433
Net income (loss)		1,511			1,012
Dividends and accretion on preferred stock		(730	)		(730	)
Net income (loss) available to common shareholders	$	781		$	282
Net income (loss) per share - basic	$	0.05		$	0.02
Net income (loss) per share - diluted	$	0.05		$	0.02
Other Data
Return on average assets		0.35	%		0.23	%
Return on average equity		3.66			2.48
Net yield on earning assets		4.15			4.28
Efficiency (excluding OREO items and securities gains)		65.82			65.33
Average loans to assets		68.60			74.02
Average loans to deposits		83.37			93.07
Average noninterest - bearing deposits to total deposits		12.90			11.41
Average equity to assets		9.58			9.16
Total capital as a percentage of total risk weighted assets		14.45			14.04
Tangible common equity as a percentage of total risk weighted assets		8.02			7.74

INVESTMENT PORTFOLIO

(Dollars in thousands)	As of March 31, 2012
	Amortized Cost		Gross Unrealized gain		Gross Unrealized loss			Estimated Fair value		Average Yield (%)			Average Duration (years)
US Agency	$	35,992	$	130	($	53	)	$	36,069		2.26	%		2.24
Mortgage backed securities		29,389		2,742		—			32,131		5.24			2.93
Collateralized mortgage obligations		21,603		137		(198	)		21,542		5.61			2.27
Commercial mortgage backed securities		51,197		758		(183	)		51,772		3.50			3.99
Covered bonds		66,302		2,063		—			68,365		4.22			2.88
Corporate bonds		152,561		1,475		(2,182	)		151,854		3.88			3.67
Municipal obligations		19,355		569		(163	)		19,761		6.37	*		5.46
Federal Home Loan Bank stock		7,185		—		—			7,185
Other		5,775		450		—			6,225
Total	$	389,359	$	8,324	($	2,779	)	$	394,904		4.08			3.38

* Fully taxable equivalent basis

COMMON STOCK DATA

	2012		2011
	First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Market value:
End of period	$	4.79	$	3.87	$	3.90	$	4.58	$	4.96
High		4.91		4.20		4.99		5.13		5.50
Low		3.71		3.30		3.53		4.21		4.54
Book value		7.32		7.09		7.34		7.30		7.14
Tangible book value		7.09		6.85		7.09		7.04		6.86
Average shares outstanding		15,655,868		15,655,868		15,655,868		15,655,868		15,655,868
Average diluted shares outstanding		16,299,152		16,163,509		16,467,550		16,521,391		16,697,944

NON-GAAP MEASURES

Pre-tax, pre-securities gains and pre-credit related operating income

	Three Months Ended March 31, 2012		Three Months Ended March 31, 2011
Net income	$	1,511	$	1,012
Income taxes		617		433
Less gain on sale of investment securities		—		(1,961	)
Real estate acquired in settlement of loans expense		318		389
Writedowns and loss on sale of real estate acquired in settlement of loans		1,008		1,486
Provision for credit losses		3,443		6,073
Pre-tax, pre-securities gains and pre-credit related operating income	$	6,897	$	7,432

Operating efficiency percentage

	Three Months Ended March 31, 2012			Three Months Ended March 31, 2011
Total noninterest expense	$	13,601		$	14,394
Less real estate acquired in settlement of loans expense		(318	)		(389	)
Numerator for calculation of operating efficiency (A)	$	13,283		$	14,005
Net interest income	$	16,172			17,378
Total noninterest income		3,000			4,534
Less gain on sale of investment securities		—			(1,961	)
Writedowns and loss on sale of real estate acquired in settlement of loans		1,008			1,486
Denominator for calculation of operating efficiency (B)	$	20,180		$	21,437
Operating efficiency percentage (A/B)		65.82	%		65.33	%