NewBridge Bancorp Reports Another Profitable Quarter As Nonperforming Assets Drop Sharply

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.”

Net interest income

Net interest income declined $206,000, or 1.2%, to $16.3 million for the quarter compared to $16.5 million a year ago. Year to date net interest income declined 4.2%, or $1.4 million, to $32.5 million. The Company’s net interest margin improved to 4.16% for the quarter compared to 4.14% for same period last year. The net interest margin for the six month period ending June 30, 2012 was 4.15%, down from 4.21% for the first six months of last year. For the six month period, the average balance of loans declined $133.3 million from the prior year’s six month average, resulting in a $4.4 million reduction in interest income from loans. This decline was partially offset by lower interest expense on interest bearing liabilities, which fell by $2.5 million. Interest income on investments increased 7.1% for the year, or $488,000, due primarily to a higher average balance in the investment portfolio.

The sustained low interest rate environment continues to impact loan yields. The annualized average yield on loans decreased to 4.99% for the three months ended June 30, 2012 compared to 5.16% for the three months ended June 30, 2011. For the six months ended June 30, 2012, the annualized average yield on loans decreased to 5.01% from 5.20% for the six months ended June 30, 2011. Net interest margin is also impacted by changes in interest income from nonaccrual loans. For the six months ended June 30, 2012, nonaccrual interest decreased the net interest margin by 9 basis points compared to 12 basis points for the six months ended June 30, 2011.

Balance Sheet

Total assets increased $2.5 million during the quarter to $1.748 billion at June 30, 2012. Cash and cash equivalents climbed $26.4 million, but was offset by a $11.0 million decline in loans held for investment, a $5.9 million decline in investment securities and a $5.5 million decline in other real estate owned. During the past nine months, the Company has been actively building its commercial and private banking sales teams in the largest metropolitan areas of North Carolina, including the Piedmont Triad, Wilmington and Raleigh markets. During the second quarter, the Company received approval to open a full-service branch in Raleigh and elected to pursue a commercial loan production office in Charlotte. For the three and six month periods, the Company originated $59.6 million and $102.8 million, respectively, of new commercial loans.

Total deposits were unchanged at $1.449 billion. Core deposits, excluding time deposits, declined $40 million during the quarter to $1.043 billion. This decline in core deposits resulted primarily from the withdrawal of temporary funds added in the prior quarter. Time deposit balances increased $40 million during the quarter due to the addition of $70 million of wholesale deposits. Retail time deposits declined $30 million during the quarter to $304.1 million. The weighted average interest rate on total deposits at June 30, 2012 was 0.36% and was 0.26% on the $1.043 billion of core deposits. The highest cost cross section of deposits remains retail time deposits, which had an interest rate of 0.75% on the $304.1 million of deposit balances. Approximately $124.9 million of retail time deposits with a weighted average rate of 0.58% will mature in the third quarter of 2012. An additional $62.5 million of retail time deposits with approximately the same weighted average rate will mature by year end 2012.

Shareholders’ equity increased $2.5 million during the quarter and $6.2 million for the year to $169.6 million. The higher equity balance for the quarter included a $2.1 million increase in comprehensive income from changes in value of investment securities, as well as a $192,000 increase to retained earnings. Tangible book value per common share increased $0.18 during the quarter and $0.42 for the year to $7.27 at June 30, 2012.

Noninterest Income

Operating noninterest income, which excludes gains and losses on sales of securities and other real estate owned (“OREO”), totaled $4.0 million for the second quarter of 2012 and 2011. Retail banking revenue declined $229,000 from a year ago to $2.3 million, and wealth management services revenue declined $65,000 to $561,000. The declines were partially offset by higher mortgage banking revenue, which increased $285,000. For the six month periods, operating noninterest income totaled $8.0 million each year. For the six months ended June 30, 2012, retail banking revenue declined $475,000 to $4.6 million while mortgage banking revenue increased $423,000 to $1.1 million. Wealth management services revenue was down $16,000 for the first six months of 2012 compared to the same period last year.

Losses on sales and write downs of OREO increased $1.4 million to $3.0 million for the quarter ended June 30, 2012 from $1.6 million for the quarter ended June 30, 2011, and increased $0.9 million to $4.0 million for the first six months of 2012.

Securities gains totaled $2.0 million during the six months ended June 30, 2011 compared to no gains during the six months ended June 30, 2012.

Noninterest Expense

Noninterest expense declined $840,000, or 5.8%, to $13.7 million for the quarter just ended compared to $14.6 million for the prior year’s second quarter, and declined $1.6 million to $27.3 million for the first six months of 2012 from the prior year of $29.0 million. The lower noninterest expense was due in large part to management’s on-going efforts to reduce controllable expenses. Since the Company formed in a merger in 2007, approximately $16.5 million of annual expense has been eliminated.

Asset Quality

Total classified loans decreased 10.6%, or $12.6 million, during the quarter. Total classified loans crested later than many of the Company’s other credit metrics, rising until the third quarter of 2010. Since then, classified loans have declined 36.5%, or $61.2 million. As a percentage of the Bank’s tier one capital plus reserves, classified assets declined to 63% from 78% at December 31, 2011 and 93% at September 30, 2010. Nonperforming loans declined 20.7%, or $9.0 million, during the quarter. The decrease was due primarily to a decline in nonaccrual loans. Nonperforming loans peaked at June 30, 2009 at $64.1 million. Since then, they have declined 45.9%, or $29.4 million. Nonperforming loans represent 2.98% of total loans held for investment. OREO decreased $5.5 million during the quarter to $24.5 million. Including OREO, total nonperforming assets decreased $14.6 million to $59.2 million, or 3.38% of total assets at June 30, 2012. The average age of OREO properties is 16 months. Troubled debt restructured loans totaled $16.1 million of the $34.7 million of nonperforming loans. Accruing restructured loans totaled $5.2 million and nonaccruing restructured loans totaled $10.9 million. The Company evaluates all troubled debt restructured loans at the time of the restructure for impairment, which typically results in the asset being moved to nonaccrual. The Company’s highest risk and most closely monitored nonperforming assets are nonaccruing loans excluding troubled debt restructures. These loans totaled $18.5 million at June 30, 2012, down $37.7 million, or 67%, since June 30, 2009.

The allowance for credit losses totaled $25.2 million at June 30, 2012, or 2.17% of loans held for investment. The Company’s allowance for credit losses as a percentage of nonperforming loans totaled 72.8% at June 30, 2012, compared to 71.2% at December 31, 2011 and 58.8% at June 30, 2011. The allowance consists of general reserves, totaling 87.8%, and specific reserves of 12.2%. The confirmed losses from the Company’s nonperforming loans have been previously recognized through chargeoffs. Consequently, the Company’s allowance for credit losses is generally applicable to inherent losses within the Company’s watch list and other performing loans portfolio. Since the current adverse credit cycle began in 2007, the Company has charged off $153.6 million of loans and OREO, or 9.4% of our highest/peak level of loan balances of $1.627 billion at September 30, 2008. The annualized average quarterly net loss percentages over this 22 quarter period for commercial loans, mortgage loans, credit reserves and home equity lines, retail loans and credit cards were 1.71%, 0.57%, 1.45%, 1.80% and 1.33%, respectively.

The Company is well within the regulatory commercial real estate high concentration guidelines in land acquisition, development and construction (the “AD&C portfolio”) loans, as well as total commercial real estate loans. At June 30, 2012, the Company’s concentration levels were 32.05% and 131.83%, respectively, of total regulatory capital, which compares favorably to the interagency regulatory guidance maximum concentrations of 100% and 300%, respectively. The AD&C portfolio totaled $63 million at June 30, 2012, including $27 million of speculative residential construction and residential acquisition and development. This portfolio is largely graded as classified loans.

Outlook

Mr. Ridgill stated that “as previously discussed, we believe that our decision to accelerate the resolution of our remaining problem assets will result in a loss in the September 2012 quarter. We anticipate the cost associated with this will be fully estimated in that quarter and will immediately lead to stronger earnings in the fourth quarter and beyond. The Company’s annual earnings before taxes and credit related costs have exceeded $27 million for each of the last two years. Through six months, we are once again on pace to exceed this level. As high credit costs are removed from our results, we anticipate strong earnings in 2013. While we expect margins will remain under pressure, we believe a decline in credit costs alone will result in strong returns to our shareholders.”

About NewBridge Bancorp

NewBridge Bancorp is the parent company of NewBridge Bank, a full service state chartered community bank headquartered in Greensboro, North Carolina. The stock of NewBridge Bancorp trades on the Nasdaq Global Select Market under the symbol of NBBC.

As one of the largest community banks in the state, NewBridge Bank serves small to midsize businesses, professionals and consumers with a comprehensive array of financial services including retail and commercial banking, private banking, wealth management and mortgage banking. NewBridge Bank has assets of approximately $1.7 billion with 30 banking offices in North Carolina.

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 clients 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 on 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.

FINANCIAL SUMMARY
               
 
Three Months Ended June 30, 2012 Three Months Ended June 30, 2011
Average Interest Income/ Average Yield/ Average Interest Income/ Average Yield/
Balance Expense Rate Balance Expense Rate
(Fully taxable equivalent basis, dollars in thousands)
Earning Assets
Loans receivable $ 1,176,015 $ 14,581 4.99 % $ 1,298,832 $ 16,694 5.16 %
Investment securities 398,541 3,825 3.86 % 277,883 3,256 4.70 %
Other earning assets   12,033   5 0.17 %   32,514   20 0.25 %
Total Earning Assets 1,586,589 18,411 4.67 % 1,609,229 19,970 4.98 %
Non-Earning Assets   157,153   150,883
Total Assets $ 1,743,742 18,411 $ 1,760,112 19,970
 
Interest-Bearing Liabilities
Deposits $ 1,219,190 1,385 0.46 % $ 1,268,598 2,574 0.81 %
Borrowings   134,787   611 1.82 %   147,578   776 2.11 %
Total Interest-Bearing Liabilities 1,353,977 1,996 0.59 % 1,416,176 3,350 0.95 %
Noninterest-bearing deposits 201,997 165,070
Other liabilities 19,154 15,902
Shareholders' equity   168,614   162,964
Total Liabilities and
Shareholders' Equity $ 1,743,742   1,996 $ 1,760,112   3,350
Net Interest Income $ 16,415 $ 16,620
Net Interest Margin 4.16 % 4.14 %
Interest Rate Spread 4.07 % 4.03 %
  Six Months Ended June 30, 2012       Six Months Ended June 30, 2011
Average   Interest Income/   Average Yield/ Average   Interest Income/   Average Yield/
Balance Expense Rate   Balance Expense Rate
(Fully taxable equivalent basis, dollars in thousands)
Earning Assets
Loans receivable $ 1,183,528 $ 29,503 5.01% $ 1,316,817 $ 33,930 5.20%
Investment securities 380,653 7,506 3.97% 296,037 7,013 4.78%
Other earning assets 18,005 20 0.22% 20,115 24 0.24%
Total Earning Assets 1,582,186 37,029 4.71% 1,632,969 40,967 5.06%
Non-Earning Assets 157,776 147,451
Total Assets $ 1,739,962 37,029 $ 1,780,420 40,967
 
Interest-Bearing Liabilities
Deposits $ 1,231,711 3,129 0.51% $ 1,269,695 5,262 0.84%
Borrowings 127,798 1,217 1.92% 167,124 1,615 1.95%
Total Interest-Bearing Liabilities 1,359,509 4,346 0.64% 1,436,819 6,877 0.97%
Noninterest-bearing deposits 193,172 164,355
Other liabilities 19,841 16,327
Shareholders' equity 167,440 162,919
Total Liabilities and
Shareholders' Equity $ 1,739,962 4,346 $ 1,780,420 6,877
Net Interest Income $ 32,683 $ 34,090
Net Interest Margin 4.15% 4.21%
Interest Rate Spread 4.06% 4.09%
 

FINANCIAL SUMMARY
   
 
2012 2011
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
Period-End Balances (Dollars in thousands)
Assets $ 1,748,436 $ 1,745,968 $ 1,734,564 $ 1,702,660 $ 1,738,559
Loans held for investment 1,162,630 1,173,671 1,200,070 1,217,058 1,244,288
Loans held for sale 5,741 7,676 7,851 6,894 2,754
Investment securities 388,968 394,904 337,811 295,461 292,898
Earning assets 1,593,275 1,581,981 1,572,095 1,549,932 1,593,857
Noninterest-bearing deposits 192,066 211,246 172,351 167,689 161,703
Savings deposits 45,371 44,118 40,876 40,097 40,937
NOW accounts 431,390 444,439 441,292 423,258 423,445
Money market accounts 374,217 383,256 370,773 363,340 365,109
Time deposits 406,153 366,135 393,384 401,287 435,895
Interest-bearing liabilities 1,367,905 1,348,722 1,379,799 1,347,756 1,354,956
Shareholders' equity 169,551 167,046 163,387 167,278 166,701
 
Asset Quality Data (Dollars in thousands)
Nonperforming loans:
Commercial nonaccrual loans, not restructured $ 10,331 $ 17,905 $ 15,773 $ 17,477 $ 17,839
Commercial nonaccrual loans which
have been restructured 8,243 8,116 7,489 9,870 11,042
Non-commercial nonaccrual loans, not restructured 8,195 10,038 9,569 8,789 10,075
Non-commercial nonaccrual loans which
have been restructured 2,616 990 283 133 308
Total nonaccrual loans 29,385 37,049 33,114 36,269 39,264
Loans past due 90 days or more and
still accruing 65 29 14 26 65
Accruing restructured loans 5,230 6,633 7,406 7,167 8,351
Total nonperforming loans 34,680 43,711 40,534 43,462 47,680
Other real estate owned 24,491 30,032 30,587 26,469 25,729
Total nonperforming assets $ 59,171 $ 73,743 $ 71,121 $ 69,931 $ 73,409
Restructured loans, performing 2,443 3,101 4,888 4,577 -
Net chargeoffs 5,047 4,369 3,153 3,736 4,037
Allowance for credit losses 25,231 27,918 28,844 27,750 28,040
Allowance for credit losses to loans held for investment 2.17 % 2.38 % 2.40 % 2.28 % 2.25 %
Nonperforming loans to loans held for investment 2.98 3.72 3.38 3.57 3.83
Nonperforming assets to total assets 3.38 4.22 4.10 4.11 4.22
Nonperforming loans to total assets 1.98 2.50 2.34 2.55 2.74
Net charge-off percentage (annualized) 1.73 1.48 1.03 1.20 1.25
Allowance for credit losses to nonperforming loans 72.75 63.87 71.16 63.85 58.81
 
Loans identified as impaired $ 32,955 $ 35,043 $ 32,591 $ 33,827 $ 37,483
Other nonperforming loans 1,725 8,668 7,943 9,635 10,197
Total nonperforming loans 34,680 43,711 40,534 43,462 47,680
Performing classified loans 71,673 75,282 87,959 92,327 95,500
Total classified loans $ 106,353 $ 118,993 $ 128,493 $ 135,789 $ 143,180
Other real estate owned 24,491 30,032 30,587 26,469 25,729
Total classified assets $ 130,844 $ 149,025 $ 159,080 $ 162,258 $ 168,909
Classified ratio 63.24 % 72.09 % 77.59 % 79.89 % 84.00 %
Total capital (bank) $ 206,901 $ 206,723 $ 205,019 $ 203,109 $ 201,077
 
Gross loan chargeoffs, and writedowns and losses
on other real estate owned to peak loans
during the credit cycle beginning January 1, 2007: 2007 2008 2009 2010 2011 2012 TOTAL
Gross loan chargeoffs
Commercial $ 5,052 $ 5,046 $ 11,232 $ 9,052 $ 5,045 $ 2,341 $ 37,768
Real estate - construction 825 7,339 12,227 5,379 3,985 2,742 32,497
Real estate - mortgage 1,300 5,012 10,110 7,260 6,822 4,695 35,199
Consumer 2,235 5,071 4,925 2,829 1,358 531 16,949
Other - - - 6,200 1,387 2 7,589
Total gross loan chargeoffs $ 9,412 $ 22,468 $ 38,494 $ 30,720 $ 18,597 $ 10,311 $ 130,002
Other real estate owned writedowns and losses 4,001 3,571 1,294 5,508 5,238 3,984 23,596
Total chargeoffs, writedowns and losses $ 13,413 $ 26,039 $ 39,788 $ 36,228 $ 23,835 $ 14,295 $ 153,598
 
Peak loans at September 30, 2008 $ 1,626,504
Chargeoffs, writedowns and losses to peak loans 9.44
 

FINANCIAL SUMMARY
       
 
Three Months Ended June 30 Six Months Ended June 30
 
2012 2011 2012 2011
Income Statement Data
(Dollars in thousands, except share data)
Interest income:
Loans $ 14,581 $ 16,694 $ 29,503 $ 33,930
Investment securities 3,733 3,165 7,318 6,830
Other   5     20     20     24  
Total interest income 18,319 19,879 36,841 40,784
Interest expense:
Deposits 1,385 2,574 3,129 5,262
Borrowings from the FHLB 269 284 528 631
Other   342     492     689     984  
Total interest expense   1,996     3,350     4,346     6,877  
Net interest income 16,323 16,529 32,495 33,907
Provision for credit losses   2,360     3,020     5,803     9,093  
Net interest income after provision for credit losses 13,963 13,509 26,692 24,814
Noninterest income:
Retail banking 2,325 2,554 4,579 5,054
Mortgage banking services 553 268 1,116 693
Wealth management services 561 626 1,155 1,171
Gain on sale of investment securities - - - 1,961
Writedowns and loss on sale of real estate
acquired in settlement of loans (2,976 ) (1,585 ) (3,984 ) (3,071 )
Bank-owned life insurance 378 304 845 712
Other   168     234     298     415  
Total noninterest income 1,009 2,401 4,009 6,935
Noninterest expense
Personnel 7,226 7,352 14,287 14,641
Occupancy 1,024 1,017 2,028 2,060
Furniture and equipment 885 924 1,663 1,888
Technology and data processing 1,015 960 2,035 1,877
Legal and professional 690 742 1,361 1,368
FDIC insurance 441 632 882 1,427
Real estate acquired in settlement of loans 205 393 523 782
Other   2,253     2,559     4,561     4,930  
Total noninterest expense   13,739     14,579     27,340     28,973  
Income before income taxes 1,233 1,331 3,361 2,776
Income taxes   312     190     929     624  
Net income 921 1,141 2,432 2,152
Dividends and accretion on preferred stock   (729 )   (730 )   (1,459 )   (1,459 )
Net income available to common shareholders $ 192   $ 411   $ 973   $ 693  
Net income per share - basic $ 0.01 $ 0.03 $ 0.06 $ 0.04
Net income per share - diluted $ 0.01 $ 0.02 $ 0.06 $ 0.04
 
Other Data
 
Return on average assets 0.21 % 0.26 % 0.28 % 0.24 %
Return on average equity 2.20 2.81 2.93 2.66
Net yield on earning assets 4.16 4.14 4.15 4.21
Efficiency (excluding OREO items and securities gains) 66.64 69.15 66.23 64.20
Average loans to assets 67.44 73.79 68.02 73.96
Average loans to deposits 82.75 90.60 83.06 91.83
Average noninterest - bearing deposits
to total deposits 14.21 11.51 13.56 11.46
Average equity to assets 9.67 9.26 9.62 9.15
Total capital as a percentage of total risk weighted assets 14.73 14.74 14.73 14.74
Tangible common equity as a percentage
of total risk weighted assets 8.33 8.32 8.33 8.32
 

INVESTMENT PORTFOLIO
         
 
(Dollars in thousands) As of June 30, 2012
Amortized Gross Gross Estimated Average Average
Cost Unrealized gain Unrealized loss Fair value Yield (%) Duration (years)
US Treasury $ 10,000 $ - $ - $ 10,000 0.06 % 0.07
US Agency 35,989 172 - 36,161 1.84 0.50
Mortgage backed securities 26,473 2,475 - 28,948 5.33 2.19
Collateralized mortgage obligations 19,641 572 (10 ) 20,203 5.68 3.08
Commercial mortgage backed securities 55,354 1,145 (133 ) 56,366 3.37 3.71
Covered bonds 46,606 2,510 - 49,116 3.75 3.78
Corporate bonds 152,573 2,668 (1,615 ) 153,626 3.85 3.41
Municipal obligations 19,244 589 (82 ) 19,751 6.28 * 4.65
Federal Home Loan Bank stock 8,351 - - 8,351
Other   5,775   671   -     6,446
Total $ 380,006 $ 10,802 $ (1,840 ) $ 388,968 3.81 * 3.08
 
* Fully taxable equivalent basis
 

COMMON STOCK DATA
       
 
2012 2011
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
 
Market value:
End of period $ 4.38 $ 4.79 $ 3.87 $ 3.90 $ 4.58
High 4.94 4.91 4.20 4.99 5.13
Low 3.88 3.71 3.30 3.53 4.21
Book value 7.48 7.32 7.09 7.34 7.30
Tangible book value 7.27 7.09 6.85 7.09 7.04
Average shares outstanding 15,655,868 15,655,868 15,655,868 15,655,868 15,655,868
Average diluted shares outstanding 16,465,346 16,299,152 16,163,509 16,467,550 16,521,391

NON-GAAP MEASURES
           
 
Pre-tax, pre-securities gains and
pre-credit related operating income
Three Months ended June 30 Six Months Ended June 30
 
  2012     2011     2012     2011  
 
Net income $ 921 $ 1,141 $ 2,432 $ 2,152
Income taxes 312 190 929 624
Less gain on sale of investment securities - - - (1,961 )
Real estate acquired in settlement of loans expense 205 393 523 782
Writedowns and loss on sale of real estate
acquired in settlement of loans 2,976 1,585 3,984 3,071
Provision for credit losses   2,360     3,020     5,803     9,093  
Pre-tax, pre-securities gains and
pre-credit related operating income $ 6,774   $ 6,329   $ 13,671   $ 13,761  
 
 
Operating efficiency percentage
Three Months ended June 30 Six Months Ended June 30,
 
2012 2011 2012 2011
 
Total noninterest expense $ 13,739 $ 14,579 $ 27,340 $ 28,973
Less real estate acquired in settlement of loans expense   (205 )   (393 )   (523 )   (782 )
Numerator for calculation of operating efficiency (A) $ 13,534   $ 14,186   $ 26,817   $ 28,191  
 
Net interest income $ 16,323 $ 16,529 $ 32,495 $ 33,907
Total noninterest income 1,009 2,401 4,009 6,935
Less gain on sale of investment securities - - - (1,961 )
Writedowns and loss on sale of real estate
acquired in settlement of loans   2,976     1,585     3,984     3,071  
Denominator for calculation of operating efficiency (B) $ 20,308   $ 20,515   $ 40,488   $ 41,952  
 
Operating efficiency percentage (A/B) 66.64 % 69.15 % 66.23 % 67.20 %
 

Copyright Business Wire 2010

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