EX-99.1 2 bdge-20200429ex99157ede9.htm EX-99.1 bdge_Ex99_1

Exhibit 99.1

 

Press Release

FOR IMMEDIATE RELEASE

 

 

Contact:

John M. McCaffery

Picture 6

 

Executive Vice President

 

Chief Financial Officer

 

(631) 537-1001, ext. 7290

 

BRIDGE BANCORP,  INC. REPORTS FIRST QUARTER 2020 RESULTS

 

 

(Bridgehampton, NY – April 29, 2020)  Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced first quarter results for 2020.

 

The Company's first quarter 2020 financial results included:

 

·

Net income for the 2020 first quarter of $9.3 million, or $0.47 per diluted share.

·

Net interest income for the 2020 first quarter increased $2.3 million over the 2019 first quarter to $36.7 million, with a tax-equivalent net interest margin of 3.26%.

·

Total assets of $5.1 billion at March 31, 2020,  8% higher than March 31, 2019.

·

Loan growth of $371 million, or 11%,  compared to March 31, 2019, and $82 million, or 9% annualized, from December 31, 2019.

·

Loan and line of credit originations of $220 million for the first quarter of 2020.

·

Non-public, non-brokered deposit growth of $141 million, or 5%, compared to March 31, 2019, and $74 million, or 10% annualized, from December 31, 2019.

·

Non-performing assets of $4.6 million at March 31, 2020, $1.4 million higher than March 31, 2019 and $0.2 million higher than December 31, 2019. Allowance for credit losses coverage to total loans of 1.04% at March 31, 2020.

·

The Company adopted CECL on January 1, 2020, which resulted in a charge to retained earnings and reduction to stockholders’ equity of $1.5 million.

·

The provision of $5.0 million included approximately $4.0 million related to our initial estimate of the economic impact of the COVID-19 pandemic.

·

Purchased 179,620 shares of the Company’s common stock at a cost of $4.6 million.

·

All capital ratios remain strong. Declared a dividend of $0.24 during the quarter.

 

Commenting on the first quarter results, Kevin O’Connor, President and CEO said, “We ended the first quarter with a sound foundation; our margin holding steady, fee income staying strong, and solid capital.  In addition to being well capitalized from a financial perspective, the human capital and cultural values that have developed over the Banks 110 year history enabled us to meet the challenges of this current crisis and continue to serve our customers and our communities. To that end, we actively participated in the Payroll Protection Program (PPP) and originated over $900 million for 3,500 small businesses.”    

 

Net Earnings and Returns

Net income in the 2020 first quarter was $9.3 million, or $0.47 per diluted share, a decrease of $3.6 million compared to the 2019 first quarter, driven primarily by higher provision for credit losses and non-interest expense, partially offset by higher net interest income.

 

Returns  on average assets and equity in the 2020 first quarter were 0.76% and 7.50%, respectively.  Return on average tangible common equity was 9.59%  for the 2020 first quarter.

 

“Our reported net income of $0.47 per diluted share was impacted by a higher provision for credit losses primarily related to the COVID-19 pandemic, which reduced earnings per share by approximately $0.15, and reduced returns on average assets, equity and tangible common equity by approximately 25 basis points, 248 basis points and 318 basis points, respectively,” noted Mr. O’Connor.

 

 

 

Net Interest Income

Interest income was $44.6 million in the 2020 first quarter, an increase of $0.3 million compared to the 2019 fourth quarter, primarily due to loan portfolio growth and higher average yield in the securities portfolio, partially offset by lower average yield in the loan portfolio. Interest expense was $8.0 million in the 2020 first quarter, a decrease of $0.7 million compared to the 2019 fourth quarter,  primarily due to a  decrease in average cost of deposits coupled with a decrease in average borrowings, partially offset by an increase in average deposits.

 

The tax-equivalent net interest margin was 3.26% in the 2020 first quarter, which was unchanged compared to the 2019 fourth quarter and down 3 basis points year-over-year.

 

Commenting on the margin Mr. O’Connor said, “Similar to last year, we reacted quickly to the Fed’s rate cuts.  Our total deposit costs dropped 12 basis points quarter-over-quarter with most of the impact in March.  In fact, for the quarter, March had the highest margin of the three months at 3.29%.”    

 

Provision for Credit Losses

The provision for credit loss expense was $5.0 million for the 2020 first quarter, $4.4 million higher than the 2019 first quarter.  The higher provision was primarily attributable to higher expected credit losses due to the current projected economic impact of the COVID-19 pandemic.  The Company recognized net charge-offs of $0.2 million in the 2020 first quarter, which was unchanged compared to the 2019 first quarter.

 

“We decided to implement the new accounting standard for credit losses “CECL” and not opt to delay adoption.  In response to the COVID-19 pandemic, we assumed near-term economic stress, which resulted in a sizable credit loss expense.  We will continue to focus on the ongoing effects of this crisis and provide accordingly. In addition, we recognized a $1.5 million charge to stockholders’ equity on January 1 for the cumulative effect of adopting this standard,” noted Mr. O’Connor.

 

Non-Interest Income

Non-interest income was  $5.2 million for the 2020 first quarter, which was flat compared to the 2019 first quarter, primarily attributable to higher gain on sale of SBA loans, loan swap fees, and service charges and other fees, partially offset by a decrease in other income. 

 

Non-Interest Expense

Non-interest expense for the 2020 first quarter of  $24.8 million was $2.2 million higher than the 2019 first quarter.  The increase in the first quarter was primarily due to higher salaries and benefits expense. Our operating expenses to average assets dropped by 10 basis points compared to the fourth quarter.

 

Income Tax Expense

Income tax expense was $2.7 million in the 2020 first quarter, a decrease of $0.7 million compared to the 2019 first quarter.  The Company estimates it will record income tax at an effective tax rate of approximately 22.5% for the remainder of 2020.

 

Balance Sheet

Total assets were $5.1 billion at March  31, 2020,  $139.4 million higher than December 31, 2019, and $385.7 million higher than March  31, 2019. Total  loans held for investment at March 31, 2020 of $3.8 billion reflects growth of $371.0 million,  or 11%,  over March 31, 2019.  Deposits totaled $4.1 billion at March 31, 2020, an increase of $330.3 million,  or 9%,  compared to March 31,  2019.  Demand deposits increased $167.6 million year-over-year to $1.5 billion at March 31, 2020, representing 37% of total deposits.

 

The allowance for credit losses was $39.2 million at March 31, 2020, $7.4 million higher than March 31, 2019. The allowance as a percentage of loans was 1.04% at March 31, 2020, compared to 0.94% at March 31, 2019.

Stockholders’ equity was $493.3 million at March 31, 2020, $28.3 million higher than March 31, 2019. The growth reflects earnings, partially offset by shareholders’ dividends and stock repurchases.  During the 2020 first quarter, the Company purchased 179,620 shares of its common stock under the repurchase plan at a cost of $4.6 million. Book value per share was $25.01 at March 31, 2020, $1.58 higher than March 31, 2019. Tangible book value per share was $19.46 at March 31, 2020, $1.58 higher than March 31, 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change Compared To

 

    

March 31, 

    

December 31, 

    

March 31, 

    

December 31, 

    

March 31, 

(Dollars in thousands)

 

2020

 

2019

 

2019

 

2019

 

2019

Total assets

 

$

5,060,872

 

$

4,921,520

 

$

4,675,209

 

$

139,352

 

$

385,663

Total stockholders' equity

 

 

493,253

 

 

497,154

 

 

465,003

 

 

(3,901)

 

 

28,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor commercial real estate ("CRE")

 

$

1,053,901

 

$

1,034,599

 

$

859,797

 

$

19,302

 

$

194,104

Owner-occupied CRE

 

 

529,877

 

 

531,088

 

 

542,836

 

 

(1,211)

 

 

(12,959)

Construction and land

 

 

100,643

 

 

97,311

 

 

147,116

 

 

3,332

 

 

(46,473)

Commercial and industrial

 

 

758,683

 

 

679,444

 

 

671,897

 

 

79,239

 

 

86,786

Total commercial

 

 

2,443,104

 

 

2,342,442

 

 

2,221,646

 

 

100,662

 

 

221,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family

 

 

800,556

 

 

812,174

 

 

624,114

 

 

(11,618)

 

 

176,442

Residential real estate

 

 

485,492

 

 

493,144

 

 

515,173

 

 

(7,652)

 

 

(29,681)

Installment and consumer

 

 

25,051

 

 

24,836

 

 

22,781

 

 

215

 

 

2,270

Net deferred loan costs and fees

 

 

7,927

 

 

7,689

 

 

7,390

 

 

238

 

 

537

Total loans held for investment

 

$

3,762,130

 

$

3,680,285

 

$

3,391,104

 

$

81,845

 

$

371,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total IPC deposits

 

$

3,115,746

 

$

3,042,171

 

$

2,974,282

 

$

73,575

 

$

141,464

Brokered deposits

 

 

201,566

 

 

164,034

 

 

166,696

 

 

37,532

 

 

34,870

Public deposits

 

 

738,423

 

 

608,442

 

 

584,486

 

 

129,981

 

 

153,937

Total public and brokered deposits

 

 

939,989

 

 

772,476

 

 

751,182

 

 

167,513

 

 

188,807

Total deposits

 

$

4,055,735

 

$

3,814,647

 

$

3,725,464

 

$

241,088

 

$

330,271

 

Loan and Line of Credit Origination Information (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

    

March 31, 

    

December 31, 

    

March 31, 

    

(Dollars in thousands)

 

2020

 

2019

 

2019

 

Investor CRE

 

$

41,738

 

$

68,562

 

$

13,975

 

Owner-occupied CRE

 

 

33,720

 

 

20,221

 

 

51,365

 

Commercial and industrial

 

 

75,796

 

 

79,404

 

 

55,223

 

Multi-family

 

 

38,915

 

 

175,906

 

 

28,216

 

Residential real estate

 

 

8,969

 

 

9,228

 

 

8,159

 

Other

 

 

21,011

 

 

18,618

 

 

13,967

 

Total loan and line of credit originations

 

$

220,149

 

$

371,939

 

$

170,905

 

 

 

 

 

 

 

 

 

 

 

 

“We continued to generate business during the first quarter through additional C&I originations.  This, along with greater line usage, resulted in a net increase in C&I loans outstanding of $79 million. IPC deposits also grew accordingly. At the end of the quarter, as the pandemic’s impact became clearer, we enhanced our liquidity profile by deferring investment purchases and adding to our brokered deposits,” Mr. O’Connor said. 

 

Asset Quality

Asset quality measures remained solid, as non-performing assets were $4.6 million, or 0.09% of total assets, at March 31, 2020, compared to $3.2 million, or 0.07% of total assets, at March 31, 2019. Non-performing assets at March 31, 2019 included  $0.2 million of other real estate owned. Non-performing loans were $4.6 million, or 0.12% of total loans at March 31, 2020,  compared to $3.1 million,  or 0.09% of total loans at March 31, 2019.  Loans 30 to 89 days past due decreased $5.0 million to $12.9 million at March 31, 2020, compared to $17.9 million at March 31, 2019.  Loans past due 90 days and accruing at March 31, 2020 and 2019 totaled $0.3 million. The increase in the current quarter of 30 to 89 days past due loans is primarily comprised of several residential loans.

Commenting on asset quality and the current environment, Mr. O’Connor stated, “Stating the obvious, we are seeing now and facing in the future, levels of economic inactivity not seen since the great depression.  This will be a challenge to our industry. We have been working with borrowers, on a case by case basis, as they seek forbearance. Where granted we are working with them assessing their cash flows and ability to service their obligations. The historical performance of our Bank, while not an indication of future performance does evidence a credit discipline to potentially weather these difficult times. Although the environment is somewhat different it is useful to note that during the financial crisis the highest level of charge-offs we experienced in a given year was 47 basis points and the cumulative losses experienced was 143 basis points.  Also, one should note that originated LTV on our multi-family/commercial real estate portfolio is 64%.”

 

Conference Call

The Company will host a conference call on Thursday, April 30, 2020 at 10:00 AM (ET) to discuss the 2020 first quarter results. In addition to this press release, supplemental information regarding the Company and COVID-19 related matters will be available on the Company’s website at www.bnbbank.com under “Investor Relations” and will be filed as a Current Report on Form 8-K prior to the conference call.

 

Investors who would like to join the conference call are encouraged to pre-register using the following link:  http://dpregister.com/10141514. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. Telephonic replay will be available through the Company’s website beginning approximately one hour after the conclusion of the call through Thursday,  May 14, 2020.

 

Call and replay information are as follows:

Call Date: Thursday, April 30, 2020
Call Time: 10:00 AM (ET)
Domestic Call Dial In:  1-844-746-0738
International Call Dial In:  1-412-317-5271

Replay Domestic Dial In:  1-877-344-7529
Replay International Dial In:  1-412-317-0088
Access Code: 10141514

About Bridge Bancorp, Inc.

Bridge Bancorp, Inc. is a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, BNB  Bank. Established in 1910, BNB, with assets of approximately $5.1 billion, operates 39 branch locations serving Long Island and the greater New York metropolitan area. Through its branch network and its electronic delivery channels, BNB provides deposit and loan products and financial services to local businesses, consumers and municipalities. Title insurance services are offered through BNB's wholly-owned subsidiary, Bridge Abstract. Bridge Financial Services, Inc., a wholly-owned subsidiary of BNB, offers financial planning and investment consultation.  For more information visit www.bnbbank.com.

 

BNB also has a rich tradition of involvement in the community, supporting programs and initiatives that promote local business, the environment, education, healthcare, social services and the arts.

 

Please see the attached tables for selected financial information.

 

This release may contain statements relating to the future results of the Company (including certain projections and business trends) that are considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “PSLRA”).  Such forward-looking statements, in addition to historical information, involve risk and uncertainties, and are based on the beliefs, assumptions and expectations of management of the Company.  Words such as “expects,” “believes,” “should,” “plans,” “anticipates,” “will,” “potential,” “could,” “intends,” “may,” “outlook,” “predicts,” “projects,” “would,” “estimates,” “assumes,” “likely,” and variation of such similar expressions are intended to identify such forward-looking statements.  Examples of forward-looking statements include, but are not limited to, possible or assumed estimates with respect to the financial condition, expected or anticipated revenue, tax rates, and results of operations and business of the Company, including earnings growth; revenue growth in retail banking, lending and other areas; origination volume in the  consumer, commercial and other lending businesses; current and future capital management programs; non-interest income levels, including fees from the title abstract subsidiary and banking services as well as product sales; tangible capital generation; market share; expense levels; and other business operations and strategies.  The Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.

 

Factors that could cause future results to vary from current management expectations include, but are not limited to, changing economic  conditions; legislative and regulatory changes, including increases in FDIC insurance rates; monetary and fiscal policies of the federal government; changes in tax policies; rates and regulations of federal, state and local tax authorities; changes in interest rates; deposit flows; the cost of funds; demands for loan products; demand for financial services; competition; changes in the quality and composition of BNB’s loan and investment portfolios; changes in management’s business strategies; changes in accounting principles, policies or guidelines; changes in real estate values; an unexpected increase in operating costs; expanded regulatory requirements; and other risk factors discussed elsewhere, and in our reports filed with the Securities and Exchange Commission. In addition, the COVID-19 pandemic is having an adverse impact on the Company, its customers and the communities it serves. The adverse effect of the COVID-19 pandemic on the Company, its customers and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. The forward-looking statements are made as of the date of this report, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Condition (unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

    

March 31, 

    

December 31, 

    

March 31, 

 

 

2020

 

2019

 

2019

Assets

 

 

  

 

 

  

 

 

  

Cash and due from banks

 

$

61,352

 

$

77,693

 

$

68,773

Interest-earning deposits with banks

 

 

172,830

 

 

39,501

 

 

31,684

Total cash and cash equivalents

 

 

234,182

 

 

117,194

 

 

100,457

Securities available for sale, at fair value

 

 

553,278

 

 

638,291

 

 

707,451

Securities held to maturity

 

 

124,231

 

 

133,638

 

 

149,512

Total securities

 

 

677,509

 

 

771,929

 

 

856,963

Securities, restricted

 

 

26,354

 

 

32,879

 

 

28,068

Loans held for sale

 

 

12,643

 

 

12,643

 

 

 —

Loans held for investment

 

 

3,762,130

 

 

3,680,285

 

 

3,391,104

Allowance for credit losses

 

 

(39,215)

 

 

(32,786)

 

 

(31,784)

Loans held for investment, net

 

 

3,722,915

 

 

3,647,499

 

 

3,359,320

Premises and equipment, net

 

 

34,521

 

 

34,062

 

 

34,478

Operating lease right-of-use assets

 

 

41,939

 

 

43,450

 

 

37,621

Goodwill and other intangible assets

 

 

109,422

 

 

109,627

 

 

110,100

Other real estate owned

 

 

 —

 

 

 —

 

 

175

Accrued interest receivable and other assets

 

 

201,387

 

 

152,237

 

 

148,027

Total assets

 

$

5,060,872

 

$

4,921,520

 

$

4,675,209

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

  

 

 

  

 

 

  

Demand deposits

 

$

1,421,743

 

$

1,386,037

 

$

1,258,544

Savings and negotiable order of withdrawal ("NOW") deposits

 

 

421,212

 

 

438,902

 

 

513,971

Money market deposit accounts ("MMDA")

 

 

1,074,310

 

 

1,012,322

 

 

993,920

Certificates of deposit of less than $100,000

 

 

58,820

 

 

58,640

 

 

61,240

Certificates of deposit of $100,000 or more

 

 

139,661

 

 

146,270

 

 

146,607

Total individual, partnership and corporate ("IPC") deposits

 

 

3,115,746

 

 

3,042,171

 

 

2,974,282

Brokered deposits

 

 

201,566

 

 

164,034

 

 

166,696

Public funds - demand deposits

 

 

59,809

 

 

132,921

 

 

55,403

Public funds - other deposits

 

 

678,614

 

 

475,521

 

 

529,083

Total public and brokered deposits

 

 

939,989

 

 

772,476

 

 

751,182

Total deposits

 

 

4,055,735

 

 

3,814,647

 

 

3,725,464

Federal funds purchased and repurchase agreements

 

 

1,195

 

 

999

 

 

721

Federal Home Loan Bank ("FHLB") advances

 

 

290,000

 

 

435,000

 

 

330,217

Subordinated debentures, net

 

 

78,955

 

 

78,920

 

 

78,815

Operating lease liabilities

 

 

44,571

 

 

45,977

 

 

40,454

Other liabilities and accrued expenses

 

 

97,163

 

 

48,823

 

 

34,535

Total liabilities

 

 

4,567,619

 

 

4,424,366

 

 

4,210,206

Total stockholders' equity

 

 

493,253

 

 

497,154

 

 

465,003

Total liabilities and stockholders' equity

 

$

5,060,872

 

$

4,921,520

 

$

4,675,209

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income (unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

 

December 31, 

 

March 31, 

 

    

2020

    

2019

    

2019

Interest income

 

$

44,602

 

$

44,320

 

$

44,515

Interest expense

 

 

7,952

 

 

8,672

 

 

10,192

Net interest income

 

 

36,650

 

 

35,648

 

 

34,323

Provision for credit losses

 

 

5,000

 

 

600

 

 

600

Net interest income after provision for credit losses

 

 

31,650

 

 

35,048

 

 

33,723

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

  

 

 

  

 

 

  

Service charges and other fees

 

 

2,500

 

 

2,487

 

 

2,428

Title fees

 

 

329

 

 

571

 

 

306

Net securities losses

 

 

(15)

 

 

 —

 

 

 —

Gain on sale of SBA loans

 

 

371

 

 

322

 

 

217

Bank owned life insurance

 

 

548

 

 

560

 

 

553

Loan swap fees

 

 

1,231

 

 

4,260

 

 

1,115

Other

 

 

253

 

 

226

 

 

599

Total non-interest income

 

 

5,217

 

 

8,426

 

 

5,218

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

  

 

 

  

 

 

  

Salaries and employee benefits

 

 

15,549

 

 

15,011

 

 

13,280

Occupancy and equipment

 

 

3,499

 

 

3,791

 

 

3,531

Amortization of other intangible assets

 

 

181

 

 

182

 

 

213

Other

 

 

5,614

 

 

6,348

 

 

5,575

Total non-interest expense

 

 

24,843

 

 

25,332

 

 

22,599

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

12,024

 

 

18,142

 

 

16,342

Income tax expense

 

 

2,676

 

 

3,934

 

 

3,415

Net income

 

$

9,348

 

$

14,208

 

$

12,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share (unaudited)

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

 

Three Months Ended

 

 

March 31, 

 

December 31, 

 

March 31, 

 

    

2020

    

2019

    

2019

Net income

 

$

9,348

 

$

14,208

 

$

12,927

Dividends paid on and earnings allocated to participating securities

 

 

(195)

  

 

(299)

 

 

(277)

Income attributable to common stock

 

$

9,153

 

$

13,909

 

$

12,650

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, including participating securities

 

 

19,946

  

 

19,957

 

 

19,926

Weighted average participating securities

 

 

(414)

  

 

(419)

 

 

(426)

Weighted average common shares outstanding

 

 

19,532

  

 

19,538

 

 

19,500

Basic earnings per common share

 

$

0.47

 

$

0.71

 

$

0.65

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

19,532

  

 

19,538

 

 

19,500

Incremental shares from assumed conversions of options and restricted stock units

 

 

34

  

 

40

 

 

26

Weighted average common and equivalent shares outstanding

 

 

19,566

  

 

19,578

 

 

19,526

Diluted earnings per common share

 

$

0.47

 

$

0.71

 

$

0.65

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Consolidated Financial Highlights (unaudited)

(In thousands, except per share amounts and financial ratios)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

    

2020

 

2019

    

2019

    

Selected Financial Data:

 

 

 

 

 

 

 

Return on average total assets

 

0.76

%  

1.18

%  

1.13

%  

Return on average stockholders' equity

 

7.50

 

11.40

 

11.41

 

Return on average tangible common equity (1) (2)

 

9.59

 

14.66

 

15.01

 

Adjusted return on average tangible common equity (1) (2)

 

9.74

 

14.81

 

15.21

 

Net interest margin, tax-equivalent basis

 

3.26

 

3.26

 

3.29

 

Efficiency ratio

 

59.34

 

57.48

 

57.15

 

Adjusted efficiency ratio (1)

 

58.74

 

56.93

 

56.43

 

Operating expense/average assets

 

2.01

 

2.10

 

1.97

 

Adjusted operating expense/average assets (1)

 

1.99

 

2.09

 

1.95

 


(1)

See reconciliation of this non-GAAP financial measure provided elsewhere herein.

(2)

Average tangible common equity represents a non-GAAP financial measure calculated as average total stockholders' equity less average goodwill and intangible assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

    

March 31, 

    

December 31, 

    

March 31, 

 

 

 

2020

 

2019

 

2019

 

Selected Financial Data:

 

 

  

 

 

  

 

 

  

 

Book value per share

 

$

25.01

 

$

25.06

 

$

23.43

 

Tangible book value per share (1)

 

$

19.46

 

$

19.54

 

$

17.88

 

Common shares outstanding

 

 

19,722

 

 

19,837

 

 

19,848

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

  

 

 

  

 

 

  

 

Total capital to risk-weighted assets

 

 

12.9

%  

 

13.1

%  

 

13.3

%

Tier 1 capital to risk-weighted assets

 

 

10.0

 

 

10.2

 

 

10.2

 

Common equity Tier 1 capital to risk-weighted assets

 

 

10.0

 

 

10.2

 

 

10.2

 

Tier 1 capital to average assets

 

 

8.2

 

 

8.5

 

 

8.1

 

Tangible common equity to tangible assets (1) (2)

 

 

7.8

 

 

8.1

 

 

7.8

 

Tier 1 capital to average assets (Bank)

 

 

9.7

 

 

10.1

 

 

9.8

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:

 

 

  

 

 

  

 

 

  

 

Loans 30-89 days past due

 

$

12,941

 

$

6,366

 

$

17,937

 

Loans 90 days past due and accruing

 

$

343

 

$

343

 

$

318

 

Non-performing loans

 

$

4,609

 

$

4,369

 

$

3,071

 

Other real estate owned

 

 

 —

 

 

 —

 

 

175

 

Non-performing assets

 

$

4,609

 

$

4,369

 

$

3,246

 

Non-performing loans/total loans

 

 

0.12

%  

 

0.12

%  

 

0.09

%

Non-performing assets/total assets

 

 

0.09

 

 

0.09

 

 

0.07

 

Allowance/non-performing loans

 

 

850.84

 

 

750.42

 

 

1,034.97

 

Allowance/total loans

 

 

1.04

 

 

0.89

 

 

0.94

 


(1)

Tangible common equity represents a non-GAAP financial measure calculated as total stockholders' equity less goodwill and intangible assets.

(2)

Tangible assets represent a non-GAAP financial measure calculated as total assets less goodwill and intangible assets.

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Supplemental Financial Information

Condensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

Three Months Ended December 31, 

 

Three Months Ended March 31, 

 

 

 

2020

 

2019

 

2019

 

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

    

Balance

    

Interest

    

Cost

    

Balance

    

Interest

    

Cost

    

Balance

    

Interest

    

Cost

 

Interest-earning assets:

    

 

  

    

 

  

    

  

    

 

  

    

 

  

    

  

    

 

  

    

 

  

    

  

 

Loans, net (including loan fee income) (1)

 

$

3,677,017

 

$

39,810

 

4.35

%  

$

3,547,865

 

$

39,780

 

4.45

%  

$

3,275,828

 

$

37,659

 

4.66

%

Securities (1)

 

 

763,894

 

 

4,628

 

2.44

 

 

761,628

 

 

4,432

 

2.31

 

 

885,834

 

 

6,442

 

2.95

 

Deposits with banks

 

 

91,884

 

 

267

 

1.17

 

 

46,994

 

 

212

 

1.79

 

 

91,682

 

 

544

 

2.41

 

Total interest-earning assets (1)

 

 

4,532,795

 

 

44,705

 

3.97

 

 

4,356,487

 

 

44,424

 

4.05

 

 

4,253,344

 

 

44,645

 

4.26

 

Non-interest-earning assets:

 

 

  

 

 

  

 

 

 

 

  

 

 

  

 

 

 

 

  

 

 

  

 

  

 

Other assets

 

 

446,258

 

 

 

 

 

 

 

428,508

 

 

 

 

 

 

 

392,283

 

 

 

 

 

 

Total assets

 

$

4,979,053

 

 

 

 

 

 

$

4,784,995

 

 

 

 

 

 

$

4,645,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

  Savings

 

$

303,834

 

$

188

 

0.25

%  

$

335,743

 

$

377

 

0.45

%  

$

398,499

 

$

905

 

0.92

%  

  NOW

 

 

131,931

 

 

46

 

0.14

 

 

136,562

 

 

53

 

0.15

 

 

105,996

 

 

41

 

0.16

 

  MMDA

 

 

1,049,707

 

 

2,409

 

0.92

 

 

1,067,493

 

 

3,108

 

1.16

 

 

983,942

 

 

3,586

 

1.48

 

  Savings, NOW and MMDA

 

 

1,485,472

 

 

2,643

 

0.72

 

 

1,539,798

 

 

3,538

 

0.91

 

 

1,488,437

 

 

4,532

 

1.23

 

  Certificates of deposit of less than $100,000

 

 

58,583

 

 

266

 

1.83

 

 

59,337

 

 

284

 

1.90

 

 

61,317

 

 

261

 

1.73

 

  Certificates of deposit of $100,000 or more

 

 

145,242

 

 

714

 

1.98

 

 

147,557

 

 

774

 

2.08

 

 

150,102

 

 

732

 

1.98

 

Total IPC deposits

 

 

1,689,297

 

 

3,623

 

0.86

 

 

1,746,692

 

 

4,596

 

1.04

 

 

1,699,856

 

 

5,525

 

1.32

 

  Brokered deposits

 

 

166,523

 

 

692

 

1.67

 

 

93,372

 

 

391

 

1.66

 

 

209,409

 

 

1,210

 

2.34

 

  Public funds

 

 

673,232

 

 

1,391

 

0.83

 

 

452,509

 

 

939

 

0.82

 

 

534,568

 

 

1,179

 

0.89

 

Total public and brokered deposits

 

 

839,755

 

 

2,083

 

1.00

 

 

545,881

 

 

1,330

 

0.97

 

 

743,977

 

 

2,389

 

1.30

 

Total deposits

 

 

2,529,052

 

 

5,706

 

0.91

 

 

2,292,573

 

 

5,926

 

1.03

 

 

2,443,833

 

 

7,914

 

1.31

 

Federal funds purchased and repurchase agreements

 

 

29,575

 

 

78

 

1.06

 

 

116,312

 

 

494

 

1.69

 

 

7,691

 

 

45

 

2.37

 

FHLB advances

 

 

253,374

 

 

1,033

 

1.64

 

 

250,446

 

 

1,118

 

1.77

 

 

243,290

 

 

1,098

 

1.83

 

Subordinated debentures

 

 

78,932

 

 

1,135

 

5.78

 

 

78,897

 

 

1,134

 

5.70

 

 

78,793

 

 

1,135

 

5.84

 

Total borrowings

 

 

361,881

 

 

2,246

 

2.50

 

 

445,655

 

 

2,746

 

2.44

 

 

329,774

 

 

2,278

 

2.80

 

Total interest-bearing liabilities

 

 

2,890,933

 

 

7,952

 

1.11

 

 

2,738,228

 

 

8,672

 

1.26

 

 

2,773,607

 

 

10,192

 

1.49

 

Non-interest-bearing liabilities:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Demand deposits

 

 

1,473,962

 

 

 

 

 

 

 

1,452,908

 

 

 

 

 

 

 

1,333,498

 

 

 

 

 

 

Other liabilities

 

 

112,582

 

 

 

 

 

 

 

99,607

 

 

 

 

 

 

 

79,083

 

 

 

 

 

 

Total liabilities

 

 

4,477,477

 

 

 

 

 

 

 

4,290,743

 

 

 

 

 

 

 

4,186,188

 

 

 

 

 

 

Stockholders' equity

 

 

501,576

 

 

 

 

 

 

 

494,252

 

 

 

 

 

 

 

459,439

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

4,979,053

 

 

 

 

 

 

$

4,784,995

 

 

 

 

 

 

$

4,645,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest rate spread

 

 

 

 

 

 

 

2.86

%  

 

 

 

 

 

 

2.79

%  

 

 

 

 

 

 

2.77

%

Net interest-earning assets

 

$

1,641,862

 

 

 

 

 

 

$

1,618,259

 

 

 

 

 

 

$

1,479,737

 

 

 

 

 

 

Net interest margin - tax-equivalent

 

 

 

 

 

36,753

 

3.26

%  

 

 

 

 

35,752

 

3.26

%  

 

 

 

 

34,453

 

3.29

%

Less: Tax-equivalent adjustment

 

 

 

 

 

(103)

 

(0.01)

 

 

 

 

 

(104)

 

(0.01)

 

 

 

 

 

(130)

 

(0.02)

 

Net interest income

 

 

 

 

$

36,650

 

 

 

 

 

 

$

35,648

 

 

 

 

 

 

$

34,323

 

 

 

Net interest margin

 

 

 

 

 

 

 

3.25

%  

 

 

 

 

 

 

3.25

%  

 

 

 

 

 

 

3.27

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1) Presented on a tax-equivalent basis.

 

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Non-GAAP Financial Measures (unaudited)

Reconciliation of as reported (GAAP) and non-GAAP financial measures

 

The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

 

The following table presents a reconciliation of return on average tangible common equity (as reported) and adjusted return on average tangible common equity (non-GAAP).

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

    

March 31, 

    

December 31, 

    

March 31, 

    

 

 

2020

 

2019

 

2019

 

Return on average tangible common equity - as reported

 

9.59

%  

14.66

%  

15.01

%  

Amortization of other intangible assets

 

0.19

 

0.19

 

0.25

 

Income tax effect of adjustments above

 

(0.04)

 

(0.04)

 

(0.05)

 

Adjusted return on average tangible common equity (non-GAAP)

 

9.74

 

14.81

 

15.21

 

 

 

The following table presents a reconciliation of efficiency ratio (as reported) and adjusted efficiency ratio (non-GAAP):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

    

March 31, 

    

December 31, 

    

March 31, 

    

(Dollars in thousands, except per share amounts)

 

2020

 

2019

 

2019

 

Efficiency ratio - as reported

    

 

59.34

%  

 

57.48

%  

 

57.15

%  

Non-interest expense - as reported

 

$

24,843

 

$

25,332

 

$

22,599

 

Less: Amortization of intangible assets

 

 

(181)

 

 

(182)

 

 

(213)

 

Adjusted non-interest expense (non-GAAP)

 

$

24,662

 

$

25,150

 

$

22,386

 

Net interest income - as reported

 

$

36,650

 

$

35,648

 

$

34,323

 

Tax-equivalent adjustment

 

 

103

 

 

104

 

 

130

 

Net interest income, tax-equivalent basis

 

$

36,753

 

$

35,752

 

$

34,453

 

Non-interest income - as reported

 

$

5,217

 

$

8,426

 

$

5,218

 

Less: Net securities losses

 

 

15

 

 

 —

 

 

 —

 

Adjusted non-interest income (non-GAAP)

 

$

5,232

 

$

8,426

 

$

5,218

 

Adjusted total revenues for adjusted efficiency ratio (non-GAAP)

 

$

41,985

 

$

44,178

 

$

39,671

 

Adjusted efficiency ratio (non-GAAP) (1)

 

 

58.74

%  

 

56.93

%  

 

56.43

%  


 

(1)

Adjusted efficiency ratio is calculated by dividing adjusted non-interest expense by the sum of net interest income on a tax-equivalent basis and adjusted non-interest income.

 

The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

    

March 31, 

    

December 31, 

    

March 31, 

    

 

 

2020

 

2019

 

2019

 

Operating expense as a % of average assets - as reported

 

2.01

%  

2.10

%  

1.97

%  

Amortization of other intangible assets

 

(0.02)

 

(0.01)

 

(0.02)

 

Adjusted operating expense as a % of average assets (non-GAAP)

 

1.99

 

2.09

 

1.95

 

 

 

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Non-GAAP Financial Measures (unaudited)

 

The following table presents the tangible common equity to tangible assets calculation (non-GAAP):

 

 

 

 

 

 

 

 

 

 

 

 

 

    

March 31, 

    

December 31, 

    

March 31, 

 

(Dollars in thousands)

 

2020

 

2019

 

2019

 

Total assets - as reported

 

$

5,060,872

 

$

4,921,520

 

$

4,675,209

 

Less: Goodwill and other intangible assets - as reported

 

 

(109,422)

 

 

(109,627)

 

 

(110,100)

 

Tangible assets (non-GAAP)

 

$

4,951,450

 

$

4,811,893

 

$

4,565,109

 

 

 

 

  

 

 

  

 

 

  

 

Total stockholders' equity - as reported

 

$

493,253

 

$

497,154

 

$

465,003

 

Less: Goodwill and other intangible assets - as reported

 

 

(109,422)

 

 

(109,627)

 

 

(110,100)

 

Tangible common equity (non-GAAP)

 

$

383,831

 

$

387,527

 

$

354,903

 

 

 

 

  

 

 

  

 

 

  

 

Tangible common equity to tangible assets (non-GAAP) (1)

 

 

7.8

%  

 

8.1

%  

 

7.8

%


(1)

Calculated by dividing tangible common equity by tangible assets.