NewBridge Bancorp ( NASDAQ: NBBC), parent of NewBridge Bank, today reported results for the three month and six month periods ended June 30, 2012.
For the three months ended June 30, 2012 net income totaled $921,000 compared to $1.1 million for the quarter ended June 30, 2011. After dividends and accretion on preferred stock, the Company reported net income available to common shareholders of $192,000, or $0.01 per diluted share, for the quarter ended June 30, 2012. For the six months ended June 30, 2012 net income totaled $2.4 million compared to $2.2 million for the same period a year ago. The prior year six month period benefitted from a one time gain of $2.0 million on the sale of investment securities.
Pressley A. Ridgill, President and Chief Executive Officer of NewBridge Bancorp, commented: “Our second quarter results were excellent. While we were pleased by a number of positive core earnings and efficiency trends, the highlight of our second quarter is the sharp decline in our classified asset portfolios, which fell to their lowest levels since September of 2010. During the June quarter, nonperforming assets declined $14.6 million, or 19.9%, falling from 4.22% of total assets to 3.38%. Nonperforming loans fell by $9.0 million, foreclosed properties declined by $5.5 million, and performing classified loans shrank by $3.6 million. In total, our classified assets were reduced by $18.2 million, or 12.3%, from the prior quarter. For the remainder of 2012, it is our desire to accelerate the workout of the remaining problem assets and definitively shift our focus to growing a quality franchise. Since the beginning of the recession, the Company has charged off $153.6 million, or 9.4%, of our peak level of loans. We believe we are in the final stage of the adverse credit cycle. Our problem loan migration has largely reversed, and we are left with a manageable level of problem assets. Based on this belief, our team is developing a plan to dispose of a substantial portion of the remaining problem assets. We intend to aggressively market them and believe most will be sold by December 31, 2012. The greatest impact on our financial performance will likely occur in the September 2012 quarter as we determine which assets will be sold in an orderly market and identify those that will be sold in a liquidation market, and record write downs for the expected losses. We anticipate that the Company will report a net loss in the third quarter, but that we will remain well capitalized and anticipate that the implementation of this plan will rapidly lead to improved earnings in future periods as credit related costs fall to a fraction of their recent levels.”