NewBridge Bancorp ( NASDAQ: NBBC), parent of NewBridge Bank, today reported results for its first quarter ended March 31, 2011.
For the three months, net income totaled $1.0 million compared to $373,000 for the quarter ended March 31, 2010. After dividends and accretion on preferred stock, the Company reported net income available to common shareholders of $282,000, or $0.02 per diluted share. After dividends and accretion on preferred stock in the prior year period, the Company had a net loss available to common shareholders of ($357,000), or ($0.02) per diluted share.
Results for the quarter included a $2.0 million gain on the sale of investments and a $1.3 million additional write-down of the previously discussed subordinated debt loan to a financial institution. At March 31, 2011 the Company exchanged $5 million of the loan balance for shares of preferred stock and forgave $5 million of the debt in order to better protect the remaining value of the Company’s interest. The Company has no other financial institution loans in the portfolio. At March 31, 2011, the shares of preferred stock were valued at 50% of their par value.
Pressley A. Ridgill, President and Chief Executive Officer of NewBridge Bancorp, commented: “We were pleased with another profitable quarter during this slow economic recovery. While credit costs increased $2.4 million, over the same period a year ago, asset quality continued to improve. We experienced declines in nonperforming loans, other real estate owned, other past due loans and other potential problem loans. Notably, other potential problem loans fell 13% and 18% over the last two quarters. In addition, nonperforming loans, excluding changes in troubled debt restructured loans, decreased $3.8 million for the quarter and have declined 50%, or $29.7 million, since they peaked in the June quarter of 2009.”Ridgill continued, “While signs of improving asset quality are evident, it is also gratifying to see positive efficiency trends, which underscore our rising core earnings stream, including an expanded net interest margin, lower cost and higher balances in core deposits, lower non-interest expense and expanded sources of non-interest income.”