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NewBridge Bancorp Reports Operating Results (10-Q)

November 09, 2010 | About:
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10qk

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NewBridge Bancorp (NBBC) filed Quarterly Report for the period ended 2010-09-30.

Newbridge Bancorp has a market cap of $62.2 million; its shares were traded at around $3.97 with and P/S ratio of 0.5. NBBC is in the portfolios of Jim Simons of Renaissance Technologies LLC, Diamond Hill Capital of Diamond Hill Capital Management Inc.
This is the annual revenues and earnings per share of NBBC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of NBBC.


Highlight of Business Operations:

Net interest income for the third quarter of 2010, on a taxable equivalent basis, was $18.2 million, an increase of $2.6 million or 16.8%, from $15.6 million for the third quarter of 2009. This was primarily due to an increase in net interest margin. Average earning assets in the third quarter of 2010 decreased $124.9 million, or 6.7%, to $1.76 billion, compared to $1.89 billion in the third quarter of 2009. Average interest-bearing liabilities for the third quarter of 2010 decreased $157.7 million, or 7.3%, to $1.55 billion, compared to $1.67 billion for the third quarter of 2009.

In the third quarter of 2010, noninterest income increased to $7.7 million, from $5.6 million during the same period in 2009. The Company recorded a pre-tax gain of $3.6 million on the sale of investment securities during the third quarter of 2010, which were sold in order to reposition the investment portfolio and reduce the Company’s exposure to municipalities. The Company recorded a net pre-tax gain of $1.2 million during the third quarter of 2009 from the sale of its merchant services portfolio. Service charge income decreased 13.1% to $1.9 million in the third quarter of 2010 from $2.2 million in the third quarter of 2009. Bankcard income decreased from $643,000 in the third quarter of 2009 to $160,000 in the same period of 2010, as a result of the Company’s sale of its merchant card services portfolio in 2009. Mortgage banking services income increased from $104,000 in the third quarter of 2009 to $742,000 in the third quarter of 2010. The increase in mortgage income was due largely to expansion of and improvements in the mortgage division following the acquisition of Bradford Mortgage on December 31, 2009, combined with a more favorable mortgage refinance environment.

In the third quarter of 2010, noninterest expense decreased to $16.3 million from $19.8 million in the third quarter of 2009. The decrease was primarily the result of $2.9 million of one-time charges incurred in the third quarter of 2009, including $1.2 million for costs to restructure operations in the Piedmont Triad region of North Carolina, $1.1 million for the Company’s decision to upgrade to a new core processing system, and $580,000 to terminate certain non-executive employment agreements. In addition, as a result of the Company’s sale of its merchant card services portfolio in 2009, the Company’s merchant card processing expense declined from $598,000 in third quarter of 2009 to $126,000 in the comparable period of 2010. These decreases were partially offset by an increase in real estate acquired in settlement of loans (“OREO”) expense and writedowns from $850,000 in the third quarter of 2009 to $1.6 million in the same period of 2010 as a result of the continued negative credit cycle.

Net interest income for the first nine months of 2010, on a taxable equivalent basis, was $53.8 million, an increase of $9.4 million or 21.2%, from $44.4 million for the first nine months of 2009. This was primarily due to an improvement in net interest margin. The taxable-equivalent net interest margin for the first nine months of 2010 increased to 4.01%, compared to 3.03% for the same period in 2009, an increase of 98 basis points. In the first nine months of 2010, the average yield on earning assets increased by two basis points from the first nine months of 2009, while the average rate on interest-bearing liabilities decreased by 107 basis points during the same time period. This resulted in an increase in the interest rate spread in the first nine months of 2010 of 109 basis points compared to the first nine months of 2009.

Average earning assets in the first nine months of 2010 decreased $161.7 million, or 8.3%, to $1.79 billion, compared to $1.96 billion in the first nine months of 2009. Average interest-bearing liabilities for the first nine months of 2010 decreased $143.7 million, or 8.3%, to $1.58 billion, from $1.73 billion for the first nine months of 2009. The following table provides an analysis of average volumes, yields and rates and net interest income on a tax-equivalent basis for the nine months ended September 30, 2010 and 2009.

Read the The complete Report

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