GREENSBORO, NC – NewBridge Bancorp (NASDAQ: NBBC) ("NewBridge" or the "Company"), the parent company of NewBridge Bank (the "Bank"), today reported financial results for the quarter ended March 31, 2009. For the first quarter of 2009, net loss was $3.6 million and net loss available to common shareholders was $4.3 million, or $0.28 per diluted share, compared to net income of $3.0 million, or $0.19 per diluted share, in the first quarter of 2008.

Pressley A. Ridgill, President and Chief Executive Officer of NewBridge, commented: "Despite the prolonged difficult market conditions, the Company remains well positioned to manage the recession with strong capital and conservative reserves. For the March quarter, the loss of $3.6 million was due primarily to an $8.5 million provision expense. The provision expense significantly exceeded the prior year's provision of $459,000 and the Company's current period net charge-offs of $3.3 million, which resulted in an increase in the allowance for credit losses of $5.2 million."

Mr. Ridgill continued, "the first quarter results were disappointing; however, I am encouraged that in this difficult environment our strong capital position has allowed us to remain active in the communities we serve by originating more than $70 million in new loans. Our commitment to continue lending is key to realizing improvement in our local economies."

Operating Results

For the first quarter of 2009, net interest income decreased by $3.5 million to $14.0 million from $17.5 million in the year-ago period. This decline was primarily due to an 82 basis point decline in the Company's net interest margin, which fell from 3.81% for the quarter ending March 31, 2008 to 2.99% for the quarter ending March 31, 2009. The decline in net interest margin was due to the asset sensitive position the Company was in last fall as the Federal Reserve's interest rate reductions caused variable rate assets to fall more rapidly than the Company's deposit cost of funds. The Company anticipates that its net interest margin will experience significant improvement over the next two quarters. During this period, approximately 80% of time deposits will mature and reprice down from a current weighted average interest rate of 3.56%. In addition, the Company is also experiencing improving asset yields on variable rate loans, as a significant amount of these loans are maturing and repricing up with floors and higher fixed rates.

Noninterest income for the quarter ended March 31, 2009 decreased to $4.0 million, versus $4.5 million for the same period in 2008. Noninterest income in the first quarter of 2008 included $370,000 of gain on the sale of securities from the mandatory redemption of shares upon VISA's initial public offering of stock. Noninterest expense for the first quarter of 2009 was $16.0 million, a decrease of $1.2 million from $17.2 million in the first quarter of 2008. Personnel expense decreased to $7.5 million in the first quarter of 2009 from $9.2 million in the first quarter of 2008, or 18.7%, primarily as a result of a reduction in the number of employees. The Company also reduced costs in the areas of advertising, legal and other professional costs, and printing and supplies expense, achieving its goal of reducing controllable expenses. These savings were offset by a substantial increase in FDIC insurance premiums, which grew to $767,000 in the first quarter of 2009 from $59,000 in the first quarter of 2008.

Asset Quality

The provision for credit losses during the first quarter of 2009 was $8.5 million versus $459,000 for the first quarter of 2008. Nonperforming assets, which include nonaccrual loans, accruing loans 90 days or more past due, OREO and renegotiated debt, totaled $72.5 million at March 31, 2009, versus $48.6 million at December 31, 2008 and $23.4 million at March 31, 2008. The increase from the 2008 year-end total was primarily driven by a $15.0 million increase in non-accrual loans, as well as a $3.8 million increase in renegotiated debt, reflecting continued deterioration in real estate markets and the weak economic environment. The allowance for credit losses at March 31, 2009 was $41.0 million, or 2.60% of outstanding loans, compared to $35.8 million, or 2.23% of outstanding loans, at December 31, 2008, and $30.3 million, or 1.96% of outstanding loans, at March 31, 2008.

Mr. Ridgill commented, "over the last year, the provision for credit loss has been significantly higher than our charge-offs resulting in a large increase in our reserves. We did this in recognition of the difficult economy. Unless market conditions worsen significantly from their current level, we do not anticipate building the reserves at the same pace experienced over the last year." He also noted "our most severe credit charges are related to the distressed coastal market of North Carolina. The coastal market portfolio includes $256.9 million, or 16.3%, of the Company's total loan portfolio."

Balance Sheet

As of March 31, 2009, total assets were approximately $2.14 billion, up $58.0 million, or 2.8%, from $2.08 billion at December 31, 2008, and up 0.8% from $2.12 billion at the year-ago date. Loans as of March 31, 2009 were $1.58 billion, a decrease of $29.1 million, or 1.8%, from $1.60 billion at December 31, 2008, and an increase of $28.5 million, or 1.8% from $1.55 billion at March 31, 2008. The decrease in loans is due to principal reduction and loan payoffs exceeding new loan opportunities for the quarter.

Deposits at the end of 2009's first quarter were $1.71 billion, which was an increase of $41.7 million, or 2.5%, from $1.66 billion at December 31, 2008 and up 4.1% from $1.64 billion at March 31, 2008. Federal Home Loan Bank ("FHLB") borrowings at March 31, 2009 were $165.7 million, up $26.7 million, or 19.2%, from $139.0 million at December 31, 2008, to take advantage of favorable borrowing rates offered by the FHLB.

Capital

Shareholders' equity declined $5.5 million to $173.7 million at March 31, 2009 from $179.2 million at December 31, 2008. The decrease in shareholders' equity from year end was primarily the result of the net loss recorded in the first quarter of 2009.

The Company and the Bank continue to maintain capital levels that exceed the established regulatory guidelines for a "well capitalized" classification. As of March 31, 2009, the Company had a leverage ratio of 9.10%, a Tier 1 risk based ratio of 10.97%, and a total risk based ratio of 12.24%. The Company holds $10.0 million of the $52.4 million received by it from the TARP Capital Purchase Program which could be invested in the Bank to increase the Bank's total risk based capital ratio from the present level of 11.59%. As of the March 31, 2009, the Bank had unused lines of credit exceeding $156 million from various financial institutions.

Outlook

Mr. Ridgill expressed management's belief that "the Company is well positioned for significant improvement in operating results over the coming 12 months, as interest expense from CDs declines, the deposit rate environment becomes more rational and we experience a resulting marked improvement in our net interest margin over the remainder of 2009. In addition, we intend to reduce our reliance on retail CDs by improving the incentives we provide on our core interest bearing demand and money market products."

Mr. Ridgill reported that "because maintaining a stable net interest margin is so critical to our future success, we have taken actions to improve our performance by maximizing future interest margin opportunities."

In the area of expense reductions, Mr. Ridgill noted that "we are increasing our focus on controlling what is controllable. Although we have made great strides in this area, for example in reducing our compensation expense, advertising and professional costs, we see other opportunities. I have asked Ramsey Hamadi, our new CFO, to analyze costs in a more granular manner, with the goal of further reducing controllable expenses."

"The banking industry is facing our most challenging times in over 70 years. Our efforts to further reduce costs and enhance our net interest margin should lead to a marked improvement in our operating results over the balance of 2009 and beyond. The Company remains positioned to take advantage of opportunities for profits and growth when the economy begins to improve. Lingering asset quality issues remain. Our provision expense will likely remain high and be somewhat unpredictable for the next several quarters. This means that although our expectation is that our net interest margin will increase and our operating expenses will moderate, our provision expense will likely prevent a return to profitability until later this year. In any event, we expect to maintain strong consolidated and risk based capital ratios materially in excess of regulatory well capitalized standards."

About NewBridge Bancorp

NewBridge Bancorp is the parent company of NewBridge Bank, which is a full service state chartered community bank with headquarters in Greensboro, North Carolina. NewBridge Bank also offers financial planning and investment alternatives, such as mutual funds and annuities, through Raymond James Financial Services, Inc., a registered broker dealer.

NewBridge Bank ranks among the 10 largest banks in North Carolina with assets of approximately $2.1 billion, and based on deposit market share is the largest community bank in the Piedmont Triad region of North Carolina. The Bank has 37 banking offices in the Piedmont Triad region of North Carolina, the Wilmington, NC area and the area surrounding Harrisonburg, VA. The stock of NewBridge Bancorp trades on the NASDAQ Global Select Market under the symbol "NBBC."

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 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 NewBridge's filings with the Securities and Exchange Commission, including without limitation its annual report on Form 10-K, quarterly reports of 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.

Contact

Ramsey Hamadi
EVP and Chief Financial Officer
(336) 369-0900