NewBridge Bancorp expects to record a net loss of between $5.2 million and $6.2 million for 2007 as a result of costs stemming from the merger of LSB Bancshares and FNB Financial Services last year which created NewBridge, the bank has announced.
Those charges are related to evaluations of the new bank's credit portfolio and expense reductions related to the merger, the bank said. NewBridge (NASDAQ: NBBC) expects to announce its actual earnings by the end of this month.
The charges that will impact earnings for the year include provisions for credit losses of $14.4 million. The bank said it is seeing weakening credit quality in both its real estate and consumer finance portfolios.
The bank is also writing down $2.6 million in the value of real estate it owns, and booking $1.8 million in personnel costs and $1.4 million in merger-related expenses and fees.
