Exhibit 99.1

 

Contact:

Ramsey Hamadi, SEVP and Chief Financial Officer

336-369-0900

 

NEWBRIDGE BANCORP ANNOUNCES NET INCOME INCREASES 230% TO $4.8 MILLION

IN THE FOURTH QUARTER

 

§

Earnings per diluted share total $0.19 for the quarter

 

§

Total classified assets decrease $32 million for the quarter and $106 million year to date to $53 million

 

§

Nonperforming assets decline $11.4 million to $26.7 million, or 1.56% of assets, for the quarter

 

§

Other real estate owned declines $5.1 million, for the quarter or 49%, to $5.4 million

 

§

Provision for credit losses totals $1.2 million for the quarter, or 72% below prior year

 

§

Total risk based capital was 16.48% and leverage capital was 10.00% at quarter end

 

§

Net interest margin averages 3.91% for the quarter and 4.06% for the year

 

§

Cost of interest bearing deposits drops to 0.31% for the quarter

 

§

Retail banking fees increase $437,000 over prior year quarter on changes in fee structures

 

§

Quarterly mortgage banking revenues increase 23% over same period a year ago

 

§

Nonclassified loans increase 6% for the quarter and 5% year-to-date

 

§

Portfolio loan production climbs 30% over 2011 to $280 million

 

GREENSBORO, N.C., January 29, 2013 – NewBridge Bancorp (NASDAQ: NBBC), parent of NewBridge Bank, today announced net income of $4.8 million for the three months ended December 31, 2012 compared to $1.4 million for the three months ended December 31, 2011. After dividends and accretion on preferred stock, the Company reported net income of $0.19 per diluted common share. For the year ending December 31, 2012, the Company reported a net loss of $25.3 million compared to net income of $4.7 million for the prior year. The Company experienced a loss of $1.80 per diluted share in 2012 compared to net income of $0.11 in 2011. The results for 2012 were impacted by the Company’s previously disclosed plan to accelerate the disposition of problem assets. Results for the year also include $1.8 million of onetime items to write down facilities and other assets, as well as a $10 million valuation allowance against the Company’s deferred tax asset. The results for 2011 benefitted from a onetime gain of $2.0 million on the sale of investment securities. On November 30, 2012, the Company issued $56.3 of convertible preferred equity to select investors. Upon approval at a special Shareholders Meeting on February 20, 2013, the preferred shares will convert into 9,601,273 shares of Class A common stock and 3,186,750 shares of Class B common stock.

 

Pressley A. Ridgill, President and Chief Executive Officer, commented: “The events of 2012, which culminated in earnings for the fourth quarter of $4.8 million, were very positive for our Company. In November we completed a $56 million capital raise, which sufficiently bolsters the balance sheet for the future, including the anticipated repurchase of the $52 million of TARP preferred shares. Classified assets fell by $106 million during the year, resulting in non-performing assets declining to $26.7 million, or 1.56% of total assets at year end. In addition, loan growth trends turned positive as we expanded our loan production teams in the Piedmont Triad and Research Triangle markets and added a Charlotte loan production team in mid-year. Excluding the $81 million reduction of classified loans from asset disposition, nonclassified loan balances increased 5% for the year, or approximately $50 million. Despite our renewed lending efforts, we remained focused on controlling costs and expanding other revenues. For the year, personnel costs increased less than 2% and excluding $1.8 million of onetime expenses in the third quarter, total operating expense declined $1.3 million, or 2.3% from 2011. We experienced increased revenue growth from other revenue sources during the year. Mortgage revenue climbed 53% to $2.6 million, and retail banking revenues made sizable gains in the fourth quarter, increasing 18% over the prior year.”

 

 

Mr. Ridgill continued, “Our fourth quarter operating performance is the result of new balance sheet dynamics. Our successful asset disposition plan means that future earnings will be far less encumbered by high credit related costs. Like all banks, we do, however, remain in a challenging low interest rate environment with heightened competition for quality loans. For the third consecutive quarter, our net interest margin declined partially as a result of the disposition of high risk loans with high yields and limited opportunities to reinvest proceeds from the capital raise and maturing investments at attractive rates. We are facing these challenges by continuing to invest in highly regarded loan officers, minimizing costs and planning for disciplined growth.”

 

Net interest income  

 

Net interest income declined $1.2 million to $15.4 million for the quarter compared to $16.6 million a year ago. Year to date net interest income declined 5.3%, or $3.6 million, to $63.6 million. The Company’s net interest margin declined to 3.91% for the quarter compared to 4.25% for the same period last year. The net interest margin for the twelve month period ending December 31, 2012 was 4.06%, down from 4.22% for the prior year. The 2012 average balance of loans declined $95.9 million from the prior year’s average, and the average yield on loans declined 28 basis points to 4.90%, resulting in an $8.2 million annual reduction in interest income. Investment yields fell more dramatically, dropping from 4.55% in 2011 to 3.59%, as roughly one third of the prior year’s long duration investment portfolio matured and was reinvested into lower yielding short duration investments. Interest income on investments declined $150,000 for the year, or 1.1%, despite a $77 million increase in the average balance of investments. The decline in interest income from earning assets was partially offset by lower interest expense on interest bearing liabilities, which fell by $4.8 million during the year. The decline was due primarily to a reduction in deposit rates from 0.75% in 2011 to 0.42% in 2012. At December 31, 2012, the weighted average cost of the Company’s $1.33 billion of deposits was 0.26%.

 

The asset disposition plan eliminated $81 million of classified loans during 2012. These loans had higher than acceptable credit risk characteristics, but also carried higher yields. The weighted average yield was approximately 6.2% on the disposed loans. Proceeds from the disposition of these loans have been largely reinvested in short-term agency securities yielding less than 1%.

 

Balance Sheet

 

Total assets decreased $5.2 million during the fourth quarter and $25.9 million for the year to $1.71 billion at December 31, 2012. Loans held for investment decreased $13.3 million for the quarter and $44.6 million for the year. The decline in loans was due primarily to our asset disposition plan, which eliminated $81 million of classified loans and $25 million of other real estate owned. For the quarter, classified loans declined $27 million and other real estate owned declined $5 million. During the quarter, $9.6 million of net chargeoffs were recorded. Our 2012 portfolio loan production totaled $280 million, or 30% more than in 2011. Cash and cash equivalents decreased $3.0 million for the quarter and $14.2 million for the twelve months. Investment securities increased $6.4 million for the quarter to $393.8 million and increased $56.0 million since the beginning of the year.

 

Total deposits declined $57.2 million for the quarter and $86.2 million for the year to $1.33 billion. The decline in deposits was due primarily to lower time deposit balances, which fell $45.8 million for the quarter and $59.4 million for the year. In the recent quarter, the decline was due primarily to lower brokered deposits; however, retail time deposits declined $75.9 million for the year as the Company has chosen not to compete for high priced time deposits. Excluding time deposits, core deposits remained steady for the year at $1.0 billion. Noninterest bearing deposits increased $33.7 million for the year to $206.0 million. In the fourth quarter, noninterest bearing accounts increased $21.1 million due in part to changes in rate and fee structures the Company applied to certain product offerings. These changes resulted in an 18% increase in retail banking fees, or $437,000, during the fourth quarter. The weighted average rate on the Company’s $1.0 billion of core deposits was 0.16% at December 31, 2012. The weighted average cost of time deposits at that date was 0.54% on $334.0 million.

 

 

Shareholders’ equity increased $56.6 million during the quarter due to the Company’s issuance of $56.3 million of convertible preferred equity in November and $4.0 million of retained earnings, which was partially offset by a $4.1 million reduction in additional paid-in capital from cost incurred in the issuance of the preferred equity. For the year, shareholders’ equity increased $32.6 million, due to the Company’s operating loss and other changes in equity of $28.2 million for the year. Pro-forma tangible book value per common share at December 31, 2012 was $4.94 on a fully converted basis.

 

Noninterest Income

 

Noninterest income climbed 63%, or $1.8 million, to $4.8 million for the fourth quarter. The change was due primarily to a $1.4 million improvement in writedowns and losses on disposals of foreclosed properties (OREO). Previously discussed changes in retail banking revenue drove fee income $437,000 higher for the quarter. For the year, mortgage banking activities capitalized on the favorable interest rate environment, increasing revenues 53%, or $908,000, due to a higher volume of production. Wealth management fees were down slightly for the year; however, lower costs resulted in more than a $200,000 increase in contributions from these services. Securities gains totaled $3,000 during 2012 compared to $2.0 million during 2011.

 

Noninterest Expense

 

Noninterest expense increased $524,000 from the prior year to $57.9 million in 2012. Excluding $1.8 million of onetime expense in the third quarter, noninterest expense declined $1.3 million, for the year, or 2.3%. The Company continues to analyze its branch locations and footprint to achieve greater efficiency and penetration in our target markets. This has led to the addition of 12 commercial and private bankers during the year, primarily in Raleigh and Charlotte, and the announced closing of two locations in the Piedmont Triad area where the Company currently operates 27 full service bank locations. Combined personnel, furniture and equipment, technology and OREO expense fell $264,000 from the prior year, while occupancy, legal, professional and other expenses rose $1.4 million. The rise in occupancy and other expenses were due primarily to the onetime charges taken in the third quarter that are largely associated with the planned closing of the two Piedmont Triad locations.

 

Asset Quality

 

Total classified loans decreased $26.7 million, during the quarter and $80.6 million during the year. At December 31, 2012, total classified loans were $47.9 million, including $21.4 million of nonperforming loans. The nonperforming loans have been charged down a combined $7.9 million and are being carried at 69% of their contractual value. Including OREO, total classified assets declined $106 million during the year and totaled $53.2 million at December 31, 2012. OREO was written down to estimated liquidation value of $5.4 million in the third 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 71%, or $119.7 million. As a percentage of the Bank’s tier one capital plus reserves, classified assets declined to 31% at December 31, 2012 from 78% at December 31, 2011 and 93% at September 30, 2010. Nonperforming loans declined 23%, or $6.3 million, during the quarter. Nonperforming loans peaked at June 30, 2009 at $64.1 million. Since then, they have declined 67%, or $42.7 million. Nonperforming loans represent 1.85% of loans held for investment. Including OREO, total nonperforming assets were $26.7 million, or 1.56% of total assets, at December 31, 2012.

 

 

The allowance for credit losses totaled $26.6 million at December 31, 2012, or 2.30% of loans held for investment, compared to $35.0 million (3.00%) at September 30, 2012. The Company’s allowance for credit losses as a percentage of nonperforming loans totaled 125% at December 31, 2012, compared to 126% at September 30, 2012 and 71% at December 31, 2011. The allowance consists of general reserves of 94.1% and specific reserves of 5.9%. 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. Net charge offs were $9.6 million for the fourth quarter and $19.1 million for the third quarter of 2012. Since the current adverse credit cycle began in 2007, the Company has charged off $194.4 million of loans and OREO, or 12.0% of our highest/peak level of loan balances of $1.627 billion at September 30, 2008. The annualized average quarterly net loss percentages over the past five year period for commercial loans, mortgage loans, credit reserves and home equity lines, retail loans and credit cards were 2.29%, 0.83%, 1.66%, 2.28% and 1.51%, respectively.

 

The Bank 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 December 31, 2012, the Bank’s concentration levels were 38.43% and 165.74%, 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 $63.4 million at December 31, 2012, including $17 million of speculative residential construction and residential acquisition and development.

 

Outlook

 

Mr. Ridgill stated that “the fourth quarter of 2012 was a positive turning point for our Company. With the reduction of problem assets, our focus has shifted to the pursuit of disciplined growth. For the current year, we averaged 5% core organic loan growth. We anticipate continued growth in 2013. While margin compression will remain a challenge, redeployment of lower yielding investment proceeds into higher yielding loan assets should mitigate that pressure. Cost management practices will continue and should result in expense levels very similar in 2013 to those of 2012, despite the planned opening of the two new Bank locations, one each in Charlotte and Raleigh. Finally, we will strive for continued expansion of our fee income businesses. The changes in our retail banking product structure in the fourth quarter should benefit the full year in 2013. We also believe that our mortgage banking and wealth management activities will continue to grow. While our capital structure is enhanced and provides us the ability to be acquisitive, we will take a conservative approach as we evaluate opportunities.”

 

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 full service 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, receipt of the shareholder approval referenced above, 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 December 31, 2012												Three Months Ended December 31, 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		$	1,171,779			$	14,089				4.78	%		$	1,220,133			$	15,820				5.14	%
Investment securities			382,061				2,887				3.02	%			315,519				3,444				4.37	%
Other earning assets			21,274				10				0.19	%			24,005				16				0.27	%
Total Earning Assets			1,575,114				16,986				4.29	%			1,559,657				19,280				4.90	%
Non-Earning Assets			128,506												153,218
Total Assets		$	1,703,620				16,986							$	1,712,875				19,280
Interest-Bearing Liabilities
Deposits		$	1,172,221				918				0.31	%		$	1,240,660				1,980				0.63	%
Borrowings			142,834				587				1.63	%			116,781				606				2.06	%
Total Interest-Bearing Liabilities			1,315,055				1,505				0.46	%			1,357,441				2,586				0.75	%
Noninterest-bearing deposits			209,067												171,909
Other liabilities			19,332												17,849
Shareholders' equity			160,166												165,676
Total Liabilities and
Shareholders' Equity		$	1,703,620				1,505							$	1,712,875				2,586
Net Interest Income						$	15,481											$	16,694
Net Interest Margin											3.91	%											4.25	%
Interest Rate Spread											3.83	%											4.15	%

 

		Twelve Months Ended December 31, 2012												Twelve Months Ended December 31, 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		$	1,175,938			$	57,676				4.90	%		$	1,271,790			$	65,871				5.18	%
Investment securities			382,288				13,733				3.59	%			305,061				13,882				4.55	%
Other earning assets			16,923				40				0.24	%			24,270				60				0.25	%
Total Earning Assets			1,575,149				71,449				4.54	%			1,601,121				79,813				4.99	%
Non-Earning Assets			149,306												148,688
Total Assets		$	1,724,455				71,449							$	1,749,809				79,813
Interest-Bearing Liabilities
Deposits		$	1,215,450				5,135				0.42	%		$	1,258,551				9,493				0.75	%
Borrowings			126,898				2,379				1.87	%			141,935				2,826				1.99	%
Total Interest-Bearing Liabilities			1,342,348				7,514				0.56	%			1,400,486				12,319				0.88	%
Noninterest-bearing deposits			196,365												166,077
Other liabilities			19,362												16,909
Shareholders' equity			166,380												166,337
Total Liabilities and
Shareholders' Equity		$	1,724,455				7,514							$	1,749,809				12,319
Net Interest Income						$	63,935											$	67,494
Net Interest Margin											4.06	%											4.22	%
Interest Rate Spread											3.98	%											4.11	%

 

 

 

FINANCIAL SUMMARY

 

		2012																2011
		Fourth				Third				Second				First				Fourth
		Quarter				Quarter				Quarter				Quarter				Quarter
Period-End Balances (Dollars in thousands)
Assets		$	1,708,707			$	1,713,909			$	1,748,436			$	1,745,968			$	1,734,564
Loans held for investment			1,155,421				1,168,747				1,162,630				1,173,671				1,200,070
Loans held for sale			9,464				7,074				5,741				7,676				7,851
Investment securities			393,815				387,376				388,968				394,904				337,811
Earning assets			1,567,706				1,573,843				1,593,275				1,581,981				1,572,095
Noninterest-bearing deposits			206,023				184,942				192,066				211,246				172,351
Savings deposits			44,450				44,990				45,371				44,118				40,876
NOW accounts			424,720				429,792				431,390				444,439				441,292
Money market accounts			323,326				350,189				374,217				383,256				370,773
Time deposits			333,974				379,823				406,153				366,135				393,384
Interest-bearing liabilities			1,286,244				1,368,768				1,367,905				1,348,722				1,379,799
Shareholders' equity			196,014				139,365				169,551				167,046				163,387
Asset Quality Data (Dollars in thousands)
Nonperforming loans:
Commercial nonaccrual loans, not restructured		$	11,119			$	12,411			$	10,331			$	17,905			$	15,773
Commercial nonaccrual loans which have been restructured			1,788				5,092				8,243				8,116				7,489
Non-commercial nonaccrual loans, not restructured			4,263				4,418				8,195				10,038				9,569
Non-commercial nonaccrual loans which have been restructured			342				1,007				2,616				990				283
Total nonaccrual loans			17,512				22,928				29,385				37,049				33,114
Loans past due 90 days or more and still accruing			44				6				65				29				14
Accruing restructured loans			3,804				4,760				5,230				6,633				7,406
Total nonperforming loans			21,360				27,694				34,680				43,711				40,534
Other real estate owned			5,355				10,465				24,491				30,032				30,587
Total nonperforming assets		$	26,715			$	38,159			$	59,171			$	73,743			$	71,121
Restructured loans, performing			1,220				1,296				2,443				3,101				4,888
Net chargeoffs			9,595				19,096				5,047				4,369				3,153
Allowance for credit losses			26,630				35,016				25,231				27,918				28,844
Allowance for credit losses to loans held for investment			2.30	%			3.00	%			2.17	%			2.38	%			2.40	%
Nonperforming loans to loans held for investment			1.85				2.37				2.98				3.72				3.38
Nonperforming assets to total assets			1.56				2.23				3.38				4.22				4.10
Nonperforming loans to total assets			1.25				1.62				1.98				2.50				2.34
Net chargeoff percentage (annualized)			3.26				6.52				1.73				1.48				1.03
Allowance for credit losses to nonperforming loans			124.67				126.44				72.75				63.87				71.16
Loans identified as impaired		$	16,400			$	22,644			$	32,955			$	35,043			$	32,591
Other nonperforming loans			4,960				5,050				1,725				8,668				7,943
Total nonperforming loans			21,360				27,694				34,680				43,711				40,534
Performing classified loans			26,498				46,842				71,673				75,282				87,959
Total classified loans		$	47,858			$	74,536			$	106,353			$	118,993			$	128,493
Other real estate owned			5,355				10,465				24,491				30,032				30,587
Total classified assets		$	53,213			$	85,001			$	130,844			$	149,025			$	159,080
Classified ratio			30.51	%			48.10	%			63.24	%			72.09	%			77.59	%
Total capital (bank) and reserves		$	174,429			$	176,729			$	206,901			$	206,723			$	205,019

 

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			$	17,306			$	52,733
Real estate - construction			825				7,339				12,227				5,379				3,985				8,774				38,529
Real estate - mortgage			1,300				5,012				10,110				7,260				6,822				13,337				43,841
Consumer			2,235				5,071				4,925				2,829				1,358				1,191				17,609
Other			-				-				-				6,200				1,387				3				7,590
Total gross loan chargeoffs		$	9,412			$	22,468			$	38,494			$	30,720			$	18,597			$	40,611			$	160,302
Other real estate owned writedowns and losses			4,001				3,571				1,294				5,508				5,238				14,520				34,132
Total chargeoffs, writedowns and losses		$	13,413			$	26,039			$	39,788			$	36,228			$	23,835			$	55,131			$	194,434
Peak loans at September 30, 2008																										$	1,626,504
Chargeoffs, writedowns and losses to peak loans																											11.95	%

 

 

FINANCIAL SUMMARY

 

		Three Months Ended December 31								Twelve Months Ended December 31
		2012				2011				2012				2011
Income Statement Data
(Dollars in thousands, except share data)
Interest income:
Loans		$	14,089			$	15,819			$	57,676			$	65,871
Investment securities			2,799				3,347				13,364				13,514
Other			10				16				40				60
Total interest income			16,898				19,182				71,080				79,445
Interest expense:
Deposits			918				1,980				5,135				9,493
Borrowings from the FHLB			252				271				1,012				1,178
Other			335				335				1,367				1,648
Total interest expense			1,505				2,586				7,514				12,319
Net interest income			15,393				16,596				63,566				67,126
Provision for credit losses			1,209				4,247				35,893				16,785
Net interest income after provision for credit losses			14,184				12,349				27,673				50,341
Noninterest income:
Retail banking			2,851				2,414				9,739				9,925
Mortgage banking services			788				640				2,636				1,728
Wealth management services			549				625				2,349				2,499
Gain on sale of investment securities			-				-				3				2,026
Writedowns and loss on sale of real estate acquired in settlement of loans			51				(1,368	)			(14,520	)			(5,238	)
Bank-owned life insurance			323				370				1,494				1,385
Other			199				239				667				830
Total noninterest income			4,761				2,920				2,368				13,155
Noninterest expense
Personnel			7,554				6,308				29,354				28,806
Occupancy			988				944				5,171				3,987
Furniture and equipment			840				860				3,335				3,644
Technology and data processing			988				972				4,063				3,942
Legal and professional			810				860				3,029				2,892
FDIC insurance			444				372				1,770				2,399
Real estate acquired in settlement of loans			205				596				1,206				1,830
Other			2,179				2,590				9,965				9,869
Total noninterest expense			14,008				13,502				57,893				57,369
Income (loss) before income taxes			4,937				1,767				(27,852	)			6,127
Income tax expense (benefit)			173				323				(2,598	)			1,449
Net income (loss)			4,764				1,444				(25,254	)			4,678
Dividends and accretion on preferred stock			(730	)			(730	)			(2,918	)			(2,917	)
Net income (loss) available to common shareholders		$	4,034			$	714			$	(28,172	)		$	1,761
Net income (loss) per share - basic		$	0.26			$	0.05			$	(1.80	)		$	0.11
Net income (loss) per share - diluted		$	0.19			$	0.04			$	(1.80	)		$	0.11
Other Data
Return on average assets			1.11	%			0.33	%			(1.46	)%			0.27	%
Return on average equity			11.83				3.46				(15.18	)			2.81
Net yield on earning assets			3.91				4.25				4.06				4.22
Average loans to assets			68.78				71.23				68.19				72.68
Average loans to deposits			84.83				86.38				83.29				89.27
Average noninterest-bearing deposits to total deposits			15.14				12.17				13.91				11.66
Average equity to assets			9.40				9.67				9.65				9.51
Total capital as a percentage of total risk weighted assets			16.48				14.55				16.48				14.55
Tangible common equity as a percentage of total risk weighted assets			6.32				7.88				6.32				7.88

 

 

INVESTMENT PORTFOLIO

 

(Dollars in thousands)		As of December 31, 2012
		Amortized				Gross				Gross				Estimated				Average				Average
		Cost				Unrealized gain				Unrealized loss				Fair value				Yield (%)				Duration (years)
US Treasury		$	10,000			$	-			$	-			$	10,000				0.01	%			0.05
US Agency			67,090				72				(125	)			67,037				1.94				5.78
Mortgage backed securities			21,607				2,153				-				23,760				5.30				2.30
Collateralized mortgage obligations			10,417				254				(3	)			10,668				5.54				2.78
Commercial mortgage backed securities			43,046				2,318				(82	)			45,282				4.19				10.58
Covered bonds			44,924				3,694				-				48,618				3.68				3.49
Corporate bonds			150,589				5,742				(844	)			155,487				3.24				3.29
Municipal obligations			17,978				734				-				18,712				6.21	*			4.09
Federal Home Loan Bank stock			7,685				-				-				7,685
Other			5,775				791				-				6,566
Total		$	379,111			$	15,758			$	(1,054	)		$	393,815				3.41	*			4.47

 

*

Fully taxable equivalent basis

 

COMMON STOCK DATA

 

		2012																2011
		Fourth				Third				Second				First				Fourth
		Quarter				Quarter				Quarter				Quarter				Quarter
Market value:
End of period		$	4.63			$	4.84			$	4.38			$	4.79			$	3.87
High			4.95				5.00				4.94				4.91				4.20
Low			3.92				3.74				3.88				3.71				3.30
Book value			5.58				5.56				7.48				7.32				7.09
Tangible book value			5.38				5.35				7.27				7.09				6.85
Average shares outstanding			15,655,868				15,655,868				15,655,868				15,655,868				15,655,868
Average diluted shares outstanding			20,978,610				15,655,868				16,465,346				16,299,152				16,163,509