GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

NewBridge Bancorp Reports Operating Results (10-Q)

August 08, 2012 | About:
10qk

10qk

18 followers
NewBridge Bancorp (NBBC) filed Quarterly Report for the period ended 2012-06-30.

Newbridge Bancorp has a market cap of $63.6 million; its shares were traded at around $4.27 with a P/E ratio of 33.8 and P/S ratio of 0.7.

Highlight of Business Operations:

Net interest income for the second quarter of 2012, on a taxable equivalent basis, was $16.4 million, a decrease of $0.2 million, or 1.2%, from $16.6 million for the second quarter of 2011. Average earning assets in the second quarter of 2012 decreased $22.6 million, or 1.4%, to $1.59 billion, compared to $1.61 billion in the second quarter of 2011. Average interest-bearing liabilities in the second quarter of 2012 decreased $62.2 million, or 4.4%, to $1.35 billion, compared to $1.42 billion in the second quarter of 2011. Taxable equivalent net interest margin increased to 4.16% for the second quarter of 2012, compared to 4.14% for the second quarter of 2011. The interest rate spread increased in the second quarter of 2012 by four basis points compared to the second quarter of 2011.

The increase in net interest margin and interest rate spread was driven primarily by a lower cost of funds rate partially offset by an overall lower yield on the investment portfolio and a lower yield on the loan portfolio. The par value of the Companys investment in U.S. government agency securities decreased to $36.0 million at June 30, 2012 from $92.3 million at June, 30, 2011 due to calls on higher yielding securities. At June 30, 2012, the par value of the Companys investment in corporate bonds was $152.8 million compared to $56.8 million at June 30, 2011. The weighted average duration of the Companys investment securities was 3.1 years at June 30, 2012, compared to 5.6 years at June 30, 2011. 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. The average yield on earning assets during the second quarter of 2012 was 31 basis points lower than the average yield on earning assets during the comparable period in 2011, while the average rate on interest-bearing liabilities decreased by 36 basis points during the same time period. The highest cost category of deposits remains retail time deposits, which had an average interest rate of 0.76% for the second quarter 2012. 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. The following table provides an analysis of average volumes, yields and rates and net interest income on a taxable equivalent basis for the three months ended June 30, 2012 and 2011.

In the second quarter of 2012, noninterest income decreased to $1.0 million, from $2.4 million during the same period in 2011. Writedowns and losses on sales of real estate acquired in settlement of loans increased to $3.0 million, from $1.6 million during the same period last year. No investment securities were sold during the three months ended June 30, 2012 or June 30, 2011. Retail Banking income decreased 9.0% to $2.3 million in the second quarter of 2012 from $2.6 million in the second quarter of 2011 due primarily to ongoing regulatory changes in the industry and changes in consumer behavior. Mortgage Banking revenue increased to $0.6 million in the second quarter of 2012, compared to $0.3 million in the second quarter of 2011, due to higher volume of mortgage originations.

Net interest income for the first half of 2012, on a taxable equivalent basis, was $32.7 million, a decrease of $1.4 million, or 4.1%, from $34.1 million for the first half of 2011. Average earning assets in the first half of 2012 decreased $50.8 million, or 3.1%, to $1.58 billion, compared to $1.66 billion in the first half of 2011. Average interest-bearing liabilities in the first half of 2012 decreased $77.3 million, or 5.4%, to $1.36

In the first half of 2012, noninterest income decreased to $4.0 million, from $6.9 million during the same period in 2011. Writedowns and losses on sales of real estate acquired in settlement of loans increased to $4.0 million, from $3.1 million during the same period last year. The Company recognized gains on the sale of investment securities of $2.0 million during the first half of 2011, whereas no investment securities were sold during the six months ended June 30, 2012. Retail Banking income decreased 9.4% to $4.6 million in the first half of 2012 from $5.1 million in the first half of 2011 due primarily to ongoing regulatory changes in the industry and changes in consumer behavior. Mortgage Banking revenue increased to $1.1 million in the first half of 2012, compared to $0.7 million in the first half of 2011, due to higher volume of mortgage originations.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 2.0/5 (1 vote)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK