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NewBridge Bancorp, CapStone Bank to merge

NewBridge Bancorp and CapStone Bank announced the signing of a definitive agreement of combination. The combination will result in a community bank with total assets of $2.5B and a significant banking presence in the top four metro markets in North Carolina. Based upon September 30 financials and NewBridge's recently announced acquisition of Security Savings Bank, the combined bank will have total loans of approximately $1.7B, deposits of $1.9B and 40 offices across the state. The combined bank will operate as NewBridge Bank with headquarters in Greensboro, N.C. Under the terms of the agreement, CapStone's shareholders will receive 2.25 shares of NewBridge common stock for each share of CapStone common stock. This implies a deal value of $16.60 per share, or approximately $63.6M, based on NewBridge's average closing stock price over the last 10 trading days. CapStone shareholders are expected to own approximately 22% of the resulting company. The merger was unanimously approved by the boards of directors of each company. The combination, which is subject to shareholder and regulatory approval, is expected to close in Q1. The rebranding of CapStone offices is anticipated to occur in the 2Q14.