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NewBridge Bancorp Announces Problem Asset Disposition Plan Successful and Enters Agreements to Raise $56 Million of Capital

November 1, 2012

  • Company announces $56 million capital raise
  • Company reports third quarter loss of $32 million due to the acceleration of the disposition of problem assets under its previously announced plan; as a result of the loss, the Company records an $11 million impairment on its deferred tax asset
  • Total problem (classified) assets decline $46 million for the quarter and $74 million year to date
  • Nonperforming assets decline $21.0 million to $38.2 million, or 2.23% of assets, for the quarter
  • Other real estate owned declines $14.0 million, or 57%, to $10.5 million for the quarter
  • The allowance for credit losses increases $9.8 million to $35.0 million, or 126% of nonperforming loans from 73% the prior quarter
  • Total risk based capital was 12.07% at quarter end and exceeded the 10.0% “well capitalized” minimum requirement
  • Net interest margin averages 4.02% for the quarter and 4.11% year to date
  • Cost of interest bearing deposits drops to 0.35% for the quarter
  • Quarterly mortgage banking revenues increase 85% over same period a year ago
  • Loans increase $6.1 million for the quarter despite the liquidation of $44.5 million of problem loans
  • New commercial loan production climbs year to date to $178 million, increasing 59% from the prior year

GREENSBORO, N.C. – NewBridge Bancorp (NASDAQ: NBBC), parent of NewBridge Bank, today announced that it has accelerated its previously announced problem asset disposition plan (the “Plan”) and has entered into securities purchase agreements with select investors and insiders of the Company pursuant to which it expects to raise $56 million of convertible preferred equity.  The Company also reported results for the three month and nine month periods ended September 30, 2012.  For the three months then ended, the Company reported a net loss $32.5 million compared to net income of $1.1 million for the quarter ended September 30, 2011.  After dividends and accretion on preferred stock, the Company reported net loss to common shareholders of $2.12 per diluted share.  The results for the quarter included one-time items of an $11 million valuation allowance against the Company’s deferred tax asset and $1.9 million of expense to write down facilities and other assets.  For the nine months ended September 30, 2012, the Company reported a net loss of $30.0 million compared to net income of $3.2 million for the same period a year ago.  The prior year nine month period benefitted from a one-time gain of $2.0 million on the sale of investment securities.

The Company’s financial results were affected by its previously disclosed Plan to accelerate the disposition of problem assets.  The Plan objective was to reduce classified assets by $71 million from $149.0 million as measured at March 31, 2012.  As of September 30, 2012, the Company had substantially completed this objective.  Classified assets declined $46 million during the quarter, totaling $85.0 million at September 30, 2012.  Management estimates the Company

Ramsey K. Hamadi
Senior Executive Vice President and Chief Financial Officer