NewBridge Bancorp ran its profitable-quarter streak to seven during the fourth quarter, primarily because of continued improvement in its loan portfolio.
The bank, based in Greensboro, had an 83 percent increase in net income to $714,000.
Excluding the setting aside of a $730,000 preferred-dividend payment to the U.S. Treasury, the bank would have had a $1.4 million profit.
NewBridge, like many local community banks, has struggled significantly since the financial crisis began in late 2007 as it tried to resolve problem commercial and residential mortgage loans.
As a result, provisions for loan losses, nonperforming assets and net charge-offs have become as important in measuring financial health as revenue from loans and fees.
NewBridge reported a provision for loan losses of $4.2 million in the quarter, compared with $4.6 million a year ago.
Nonperforming assets were $71.1 million on Dec. 31 compared with $69.9 million on Sept. 30 and $77.3 million on Dec. 31, 2010. Net charge-offs were at $3.1 million on Dec. 31 compared with $3.7 million on Sept. 30 and $11.4 million on Dec. 31, 2010.
Revenue from loans was $12.3 million compared with $12.5 million a year ago. Revenue from fees was $2.9 million compared with $2.8 million a year ago.
For the full year, the bank posted net income of $1.76 million compared with net income of $461,000 a year ago.
Pressley Ridgill, the bank's president and chief executive, said he considered the fourth-quarter and full-year results to be "excellent considering the difficult economic environment."
Ridgill said loan-production offices recently opened in Asheboro, Morganton and Raleigh have gained $11 million in loan balances. Some banks use loan-production offices, which don't take deposits, to dip their toes into a new market.
"We believe this strategy plays an important role in reversing the company's trends in loan production," Ridgill said.
Ridgill said that while NewBridge's focus will be on internal growth in 2012, "we believe it is also likely that other paths will be available to us in the coming year."
Ridgill did not provide an update on whether NewBridge is considering making a partial repayment of the $52.4 million in TARP money it borrowed. It has repaid about $7.8 million.
The Treasury's TARP program was designed to loosen frozen credit markets that made it difficult for consumers and businesses to obtain loans.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement