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 incomeDespite 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.