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Section 1: 8-K (8-K)

bdge_Current_Folio_8K

   

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 8‑K


CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): January 28, 2019


BRIDGE BANCORP, INC.

(Exact name of the registrant as specified in its charter)


 

 

 

New York

001‑34096

11‑2934195

(State or other jurisdiction of

(Commission File Number)

(IRS Employer

incorporation or organization)

 

Identification No.)

 

 

 

 

2200 Montauk Highway

    

 

Bridgehampton, New York

 

11932

(Address of principal executive offices)

 

(Zip Code)

 

(631) 537‑1000

(Registrant’s telephone number)

N/A

(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8‑K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

          Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

          Soliciting material pursuant to Rule 14a‑12 under the Exchange Act (17 CFR 240.14a‑12)

          Pre-commencement communications pursuant to Rule 14d‑2(b) under the Exchange Act (17 CFR 240.14d‑2(b))

          Pre-commencement communications pursuant to Rule 13e‑4(c) under the Exchange Act (17 CFR 240.13e‑4c)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b‑2 of the Securities Exchange Act of 1934 (17 CFR §240.12b‑2). Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 


 

Item 2.02.      Results of Operations and Financial Condition.

On January 28, 2019, the Company issued a press release announcing its earnings for the quarter ended December 31, 2018. A copy of the press release is attached to this Current Report on Form 8‑K as Exhibit 99.1 and is incorporated herein by reference. The information contained in this Item 2.02, including the related information set forth in the Press Release attached hereto and incorporated by reference herein, is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section.

Item 9.01.      Financial Statements and Exhibits.

(a)

Not applicable.

(b)

Not applicable.

(c)

Not applicable.

(d)

Exhibits.

 

 

 

Exhibit No.

    

Description

 

 

 

99.1

 

Press Release dated January 28, 2019, announcing the earnings of the Company for the quarter ended December 31, 2018.*


*     Furnished electronically as an exhibit to this Current Report on Form 8‑K. As further described in Item 2.02, this exhibit is being “furnished” and not “filed” with this Current Report on Form 8‑K.

 

 


 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

    

Bridge Bancorp, Inc.

 

 

(Registrant)

 

 

 

 

 

/s/ Kevin M. O’Connor

 

 

Kevin M. O’Connor

 

 

President and Chief Executive Officer

 

 

 

Dated:   January 28, 2019

 

 

 


(Back To Top)

Section 2: EX-99.1 (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 FOURTH QUARTER AND YEAR END 2018 RESULTS

 

(Bridgehampton, NY – January 28, 2019)  Bridge Bancorp, Inc. (NASDAQ: BDGE), (the “Company”), the parent company of BNB Bank (“BNB”), today announced fourth quarter and year end results for 2018.

 

The Company's fourth quarter and full year 2018  financial results included:

 

·

Net income for the 2018 fourth quarter of $13.9 million, or $0.70 per diluted share.

·

Net income for the full year 2018 of $39.2 million, or $1.97 per diluted share, inclusive of: 

o

Pre-tax charge of $8.9 million, or $0.35 per diluted share after tax, related to the fraudulent conduct of a business customer through its deposit accounts at BNB in the 2018 third quarter.

o

Pre-tax net securities losses of $7.9 million, or $0.31 per diluted share after tax, related to the Company’s balance sheet restructure in the 2018 second quarter.

o

Pre-tax charge of $0.8 million, or $0.03 per diluted share after tax, related to the Company’s office relocation costs in the 2018 fourth quarter.

·

Excluding the impact of the fraud loss, balance sheet restructure,  and office relocation costs, net income for the full year 2018 was $52.9 million, or $2.66 per diluted share.

·

Net interest income for the 2018 fourth quarter increased $0.5 million over 2017 to $34.1 million, with a tax-equivalent net interest margin of 3.26%.

·

Adjusted net interest margin (excluding purchase accounting) declined from 3.24% in the 2018 third quarter to 3.21% in the 2018 fourth quarter due to excess liquidity in December 2018.

·

Total assets of $4.7 billion at December 31, 2018,  6% higher than September 30, 2018 and December 31, 2017.

·

2018 loan growth of $173 million, or 6%,  (7% excluding the 2018 second quarter loan sale) with 2018 fourth quarter growth of $78 million, or 10% annualized.

·

Deposit growth of $552 million, or 17%, compared to December 31, 2017, and $267 million,  or 29% annualized, from September 30, 2018.

·

Non-public, non-brokered deposit growth of $431 million, or 17%, compared to December 31, 2017, and $111 million, or 16% annualized, from September 30, 2018.

·

Non-performing assets of $3.0 million at December 31, 2018, $4.0 million lower than December 31, 2017 and $0.9 million higher than September 30, 2018. With loan loss reserve coverage to total loans of 0.96%.

·

All capital ratios remain strong. Declared a dividend of $0.23 during the quarter.

 

Commenting on the fourth quarter results, Kevin O’Connor, President and CEO said,  “Our focus continues to be on profitably growing our business, by adding and expanding relationships. This was evident in 2018 as loans and deposits both increased with the velocity of growth expanding in the fourth quarter as each experienced a  double-digit annualized increase. Profitability was evident as adjusted net interest margin increased on a year-over-year basis and net interest income grew by $9.6 million, or 8%. These resulted in strong returns and in the fourth quarter we achieved a 1.22% return on average assets and a 16.38% return on tangible common equity. While the interest rate environment remains challenging and competition is intense, we believe our balance sheet structure, featuring strong liquidity and core funding, provides us an opportunity to continue this momentum, and achieve targeted performance objectives.”

 

 

Net Earnings and Returns

Net income in the 2018 fourth quarter was $13.9 million, or $0.70 per diluted share, an increase of $20.8 million compared to the 2017 fourth quarter. Excluding the impact of the reduction to net deferred tax assets related to the Tax Cuts and Jobs Act (“Tax Act”) and restructuring costs, net income for the 2017 fourth quarter was $5.9 million, or $0.30 per share.


 

 

Net income for the full year 2018 was $39.2 million, or $1.97 per diluted share, compared to $20.5 million,  or $1.04 per diluted share,  in 2017.  Excluding the impact of the fraud loss, office relocation costs and balance sheet restructure, net income for the full year 2018 was $52.9 million, or $2.66 per diluted share. Excluding the impact of the Tax Act and restructuring costs, net income for the full year 2017 was $33.3 million, or $1.68 per share.

 

Returns  on average assets and equity in the 2018 fourth quarter were 1.22% and 12.32%, respectively.  Return on average tangible common equity was 16.38% for the 2018 fourth quarter.  

 

Interest income was $43.5 million in the 2018 fourth quarter, an increase of $0.9 million compared to the 2018 third quarter,  driven primarily by loan portfolio growth and higher investment portfolio yields. Interest expense was $9.4 million in the 2018 fourth quarter, an increase of $1.0 million compared to the 2018 third quarter,  primarily due to deposit growth and an increase in average cost of interest-bearing liabilities. Proceeds from a large deposit made in December 2018 were not readily deployed into investments or loans. This caused margin compression of 3 basis points in the 2018 fourth quarter.

 

The impact of purchase accounting on the margin continues to decrease.  The reported margin for the 2018 fourth quarter showed a year-over-year decline of 10 basis points from 3.36% in 2017 to 3.26% in 2018. However, the adjusted margin, excluding purchase accounting, is up 7 basis points from 3.14% in 2017 to 3.21% in 2018.  The decreased impact of purchase accounting can also be observed regarding loan yields.  Reported 2018 fourth quarter loan yields were flat year-over year at 4.56%, while yields ex-purchase accounting were up 24 basis points, increasing from 4.26% in 2017 to 4.50% in 2018.

 

“Although assets only expanded by 6% year-over-year, our deposit base increased by 17%, enabling us to reduce wholesale borrowings. By improving our funding mix,  our adjusted margin increased over the same quarter last year,” stated Mr. O’Connor.

 

The provision for loan losses was $0.4 million for the 2018 fourth quarter, $10.0 million lower than the 2017 fourth quarter, and $1.8 million for the full year 2018, $12.3 million lower than the full year 2017.   Contributing to the lower provision were decreases in net charge-offs in the fourth quarter and full year 2018 compared to the same periods in 2017. The Company recognized net charge-offs of $0.9 million in the 2018 fourth quarter, compared to net charge-offs of $8.0 million in the 2017 fourth quarter. The Company recognized net charge-offs of $2.1 million in the full year 2018, compared to net charge-offs of $8.2 million in the 2017 full year.

 

During the 2018 fourth quarter, the Company negotiated the payoff of $11 million in Taxi Medallion loans. The parties agreed to settle the outstanding notes at $450 thousand per medallion, which resulted in $1.1 million in charge-offs. This did not result in an increase in the 2018 fourth quarter provision. As of December 31, 2018, $4 million had been paid off, with the remaining loans paid down in January 2019.  After this transaction the Company’s exposure to Taxi Medallion loans has declined to $10 million.  All remaining loans are performing.

 

Non-interest income was  $5.1 million for the 2018 fourth quarter,  $0.6 million higher than the 2017 fourth quarter, attributable to higher gain on sale of Small Business Administration (“SBA”) loans, higher service charges and other fees, and net securities losses in the 2017 fourth quarter, partially offset by lower title fee income and other operating income.  Non-interest income was $11.6 million for the full year 2018, $6.5 million lower than the 2017 full year, driven primarily by net securities losses related to the balance sheet restructure in 2018 and lower title fee income, partially offset by higher gain on sale of SBA loans, service charges and other fees, and other operating income. Excluding the impact of the balance sheet restructure, total non-interest income in the full year 2018 would have been $19.5 million. 

 

Non-interest expense for the 2018 fourth quarter decreased to $22.1 million from $29.2 million in the 2017 fourth quarter.  Non-interest expense for the full year 2018 increased to $98.2 million from $91.7 million in full year 2017. The decrease in the fourth quarter is primarily due to restructuring costs related to branch restructuring and charter conversion in 2017, and a recovery of fraud loss in the 2018 fourth quarter, partially offset by growth in salaries and benefits expense and office relocation costs in 2018. The increase in the full year non-interest expense is primarily due to growth in salaries and benefits expense, and a fraud loss and office relocation costs in 2018, partially offset by restructuring costs related to branch restructuring and charter conversion in 2017. Excluding the impact of the fraud recovery and office relocation costs, total non-interest expense in the fourth quarter 2018 would have been $21.9 million. Excluding the impact of the restructuring costs, total non-interest expense in the fourth quarter 2017 would have been $21.1 million.  Excluding the impact of the fraud loss and office relocation costs, total non-interest expense in the full year 2018 would have been $88.5 million. Excluding the impact of the restructuring costs, total non-interest expense in the full year 2017 would have been $83.7 million. 

 

Non-recurring items in the 2018 fourth quarter included $0.8 million related to the consolidation of back office operations and a $0.6 million net recovery related to the 2018 third quarter fraud loss resulting from a final settlement with another financial institution.

 

Income tax expense was $2.9 million in the 2018 fourth quarter, and $9.1 million in full year 2018. Income tax expense was $5.4 million in the 2017 fourth quarter and $18.9 million in full year 2017, which included a $7.6 million charge to write-down the Company’s deferred tax assets due to the enactment of the Tax Act in the 2017 fourth quarter.  

 


 

Balance Sheet and Asset Quality

Total assets were $4.7 billion at December 31, 2018,  $252.0 million higher than September 30,  2018, and $270.7 million higher than December 31, 2017. Total  loans at December 31, 2018 of $3.3 billion reflect growth of $173.1 million,  or 6%,  over December 31,  2017.  Deposits totaled $3.9 billion at December 31, 2018, an increase of $551.9 million,  or 17%,  over December 31,  2017.  Demand deposits increased $109.9 million year-over-year to $1.4 billion at December 31, 2018, representing 37% of total deposits.

 

Asset quality measures improved as non-performing assets were $3.0 million, or 0.06%  of total assets, at December 31, 2018, compared to $7.0 million, or 0.16% of total assets, at December 31, 2017. Non-performing assets at December 31, 2018 included  $0.2 million of other real estate owned. Non-performing loans were $2.8 million, or 0.09% of total loans at December 31, 2018,  compared to $7.0 million,  or 0.22% of total loans at December 31,  2017.  Loans 30 to 89 days past due increased $0.8 million to $4.4 million at December 31, 2018, compared to $3.6 million at December 31, 2017.  Loans past due 90 days and accruing at December 31, 2018 and 2017 were comprised of acquired loans of $0.3 million and $1.8 million, respectively.

The allowance for loan losses was $31.4 million at December 31, 2018, $0.3 million lower than December 31,  2017.  The allowance as a percentage of loans was 0.96% at December 31, 2018, compared to 1.02% at December 31, 2017. 

Stockholders’ equity was $453.8 million at December 31, 2018,  $24.6 million higher than December 31, 2017.  The growth reflects earnings, partially offset by shareholders’ dividends. Tangible book value per share was $17.36 at December 31, 2018,  $1.22 higher than December 31,  2017.

 

Conference Call

The Company will host a conference call on Tuesday, January 29, 2019 at 10:00 AM (ET). Investors who would like to join the conference call are encouraged to pre-register using the following link: http://dpregister.com/10128294. 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 approximately one hour after the conclusion of the call through Tuesday, February 12, 2019.

 

Call and replay information are as follows:

Call Date: Tuesday, January 29, 2019
Call Time: 10:00 AM (ET)
Domestic Call Dial In:  1-888-317-6016
International Call Dial In:  1-412-317-6016

Replay Domestic Dial In:  1-877-344-7529
Replay International Dial In:  1-412-317-0088
Access Code: 10128294

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, formerly known as The Bridgehampton National Bank. Established in 1910, BNB, with assets of approximately $4.7 billion, operates 39 branch locations serving Long Island and the greater New York metropolitan area. In addition, BNB operates one loan production office in Manhattan. 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 report 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,” “intend,” “may,” “outlook,” “predict,” “project,” “would,” “estimated,” “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, 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 as a result of the Dodd-Frank Act; and other risk factors discussed elsewhere, and in our reports filed with the Securities and Exchange Commission.   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)

 

 

 

 

 

 

 

 

 

 

 

 

    

December 31, 

    

September 30, 

    

December 31, 

 

 

2018

 

2018

 

2017

Assets

 

 

  

 

 

  

 

 

  

Cash and due from banks

 

$

142,145

 

$

63,687

 

$

76,614

Interest earning deposits with banks

 

 

153,223

 

 

61,414

 

 

18,133

Total cash and cash equivalents

 

 

295,368

 

 

125,101

 

 

94,747

Securities available for sale, at fair value

 

 

680,886

 

 

661,862

 

 

759,916

Securities held to maturity

 

 

160,163

 

 

164,438

 

 

180,866

Total securities

 

 

841,049

 

 

826,300

 

 

940,782

Securities, restricted

 

 

24,028

 

 

25,162

 

 

35,349

Loans held for sale

 

 

 —

 

 

1,619

 

 

 —

Loans held for investment

 

 

3,275,811

 

 

3,197,427

 

 

3,102,752

Allowance for loan losses

 

 

(31,418)

 

 

(31,869)

 

 

(31,707)

Loans held for investment, net

 

 

3,244,393

 

 

3,165,558

 

 

3,071,045

Premises and equipment, net

 

 

35,008

 

 

35,893

 

 

33,505

Goodwill and other intangible assets

 

 

110,324

 

 

110,667

 

 

111,164

Other real estate owned

 

 

175

 

 

175

 

 

 —

Accrued interest receivable and other assets

 

 

150,399

 

 

158,282

 

 

143,410

Total assets

 

$

4,700,744

 

$

4,448,757

 

$

4,430,002

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

  

 

 

  

 

 

  

Demand deposits

 

$

1,275,664

 

$

1,286,673

 

$

1,188,535

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

 

 

496,881

 

 

468,242

 

 

419,513

Money market deposit accounts ("MMDA")

 

 

975,531

 

 

883,386

 

 

755,483

Certificates of deposit of less than $100,000

 

 

61,827

 

 

61,548

 

 

59,019

Certificates of deposit of $100,000 or more

 

 

155,104

 

 

154,181

 

 

111,691

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

 

 

2,965,007

 

 

2,854,030

 

 

2,534,241

Brokered deposits

 

 

255,408

 

 

281,241

 

 

212,593

Public funds - demand deposits

 

 

172,941

 

 

46,119

 

 

150,166

Public funds - other deposits

 

 

493,037

 

 

437,752

 

 

437,543

Total public and brokered deposits

 

 

921,386

 

 

765,112

 

 

800,302

Total deposits

 

 

3,886,393

 

 

3,619,142

 

 

3,334,543

Federal funds purchased and repurchase agreements

 

 

539

 

 

816

 

 

50,877

Federal Home Loan Bank ("FHLB") advances

 

 

240,433

 

 

265,648

 

 

501,374

Subordinated debentures, net

 

 

78,781

 

 

78,746

 

 

78,641

Other liabilities and accrued expenses

 

 

40,768

 

 

44,420

 

 

35,367

Total liabilities

 

 

4,246,914

 

 

4,008,772

 

 

4,000,802

Total stockholders' equity

 

 

453,830

 

 

439,985

 

 

429,200

Total liabilities and stockholders' equity

 

$

4,700,744

 

$

4,448,757

 

$

4,430,002

 


 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income (unaudited)

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31, 

 

September 30, 

 

December 31, 

 

December 31, 

 

December 31, 

 

    

2018

    

2018

    

2017

    

2018

    

2017

Interest income

 

$

43,480

 

$

42,589

 

$

39,960

 

$

168,984

 

$

149,849

Interest expense

 

 

9,382

 

 

8,375

 

 

6,399

 

 

32,204

 

 

22,689

Net interest income

 

 

34,098

 

 

34,214

 

 

33,561

 

 

136,780

 

 

127,160

Provision for loan losses

 

 

400

 

 

200

 

 

10,400

 

 

1,800

 

 

14,050

Net interest income after provision for loan losses

 

 

33,698

 

 

34,014

 

 

23,161

 

 

134,980

 

 

113,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Service charges and other fees

 

 

2,579

 

 

2,549

 

 

2,334

 

 

9,853

 

 

8,996

Title fee income

 

 

458

 

 

384

 

 

546

 

 

1,797

 

 

2,394

Net securities (losses) gains

 

 

 —

 

 

 —

 

 

(222)

 

 

(7,921)

 

 

38

Gain on sale of SBA loans

 

 

492

 

 

524

 

 

247

 

 

2,078

 

 

1,689

BOLI income

 

 

561

 

 

557

 

 

560

 

 

2,219

 

 

2,250

Other operating income

 

 

1,025

 

 

904

 

 

1,034

 

 

3,542

 

 

2,735

Total non-interest income

 

 

5,115

 

 

4,918

 

 

4,499

 

 

11,568

 

 

18,102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Salaries and employee benefits

 

 

12,457

 

 

12,134

 

 

11,506

 

 

50,458

 

 

46,560

Occupancy and equipment

 

 

3,472

 

 

3,325

 

 

3,647

 

 

13,245

 

 

13,998

Net fraud (recovery) loss

 

 

(600)

 

 

9,500

 

 

 —

 

 

8,900

 

 

 —

Office relocation costs

 

 

750

 

 

 —

 

 

 —

 

 

750

 

 

 —

Restructuring costs

 

 

 —

 

 

 —

 

 

8,020

 

 

 —

 

 

8,020

Amortization of other intangible assets

 

 

214

 

 

215

 

 

247

 

 

917

 

 

1,047

Other operating expenses

 

 

5,778

 

 

5,830

 

 

5,734

 

 

23,910

 

 

22,102

Total non-interest expense

 

 

22,071

 

 

31,004

 

 

29,154

 

 

98,180

 

 

91,727

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

16,742

 

 

7,928

 

 

(1,494)

 

 

48,368

 

 

39,485

Income tax expense

 

 

2,878

 

 

1,381

 

 

5,422

 

 

9,141

 

 

18,946

Net income (loss)

 

$

13,864

 

$

6,547

 

$

(6,916)

 

$

39,227

 

$

20,539

Basic earnings (loss) per share

 

$

0.70

 

$

0.33

 

$

(0.35)

 

$

1.97

 

$

1.04

Diluted earnings (loss) per share

 

$

0.70

 

$

0.33

 

$

(0.35)

 

$

1.97

 

$

1.04

Weighted average common and equivalent shares

 

 

19,492

 

 

19,485

 

 

19,419

 

 

19,468

 

 

19,379

 


 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Consolidated Financial Highlights (unaudited)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31, 

 

September 30, 

 

December 31, 

 

December 31, 

 

December 31, 

 

 

    

2018

 

2018

    

2017

    

2018

    

2017

 

Selected Financial Data:

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

1.22

%  

0.58

%  

(0.63)

%  

0.87

%  

0.49

%

Adjusted return on average total assets (1)

 

1.23

 

1.24

 

0.53

 

1.18

 

0.79

 

Return on average stockholders' equity

 

12.32

 

5.64

 

(6.07)

 

8.66

 

4.64

 

Adjusted return on average stockholders' equity (1)

 

12.43

 

12.03

 

5.15

 

11.69

 

7.53

 

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

 

16.38

 

7.43

 

(8.04)

 

11.47

 

6.21

 

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

 

16.72

 

16.03

 

7.01

 

15.69

 

10.28

 

Net interest margin, tax-equivalent basis

 

3.26

 

3.32

 

3.36

 

3.33

 

3.34

 

Adjusted net interest margin (1)

 

3.21

 

3.24

 

3.14

 

3.23

 

3.13

 

Efficiency ratio

 

56.28

 

79.23

 

76.60

 

66.18

 

63.15

 

Adjusted efficiency ratio (1)

 

55.16

 

54.22

 

54.08

 

55.85

 

56.39

 

Operating expense/average assets

 

1.94

 

2.75

 

2.65

 

2.19

 

2.18

 

Adjusted operating expense/average assets (1)

 

1.90

 

1.89

 

1.90

 

1.95

 

1.97

 


(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.

 

 

 

 

 

 

 

 

 

 

 

 

 

    

December 31, 

    

September 30, 

    

December 31, 

 

 

 

2018

 

2018

 

2017

 

Selected Financial Data:

 

 

  

 

 

  

 

 

  

 

Book value per share

 

$

22.93

 

$

22.23

 

$

21.78

 

Tangible book value per share (1)

 

$

17.36

 

$

16.64

 

$

16.14

 

Common shares outstanding

 

 

19,791

 

 

19,789

 

 

19,709

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

  

 

 

  

 

 

  

 

Total capital to risk-weighted assets

 

 

13.6

%  

 

13.6

%  

 

13.3

%

Tier 1 capital to risk-weighted assets

 

 

10.4

 

 

10.3

 

 

10.0

 

Common equity Tier 1 capital to risk-weighted assets

 

 

10.4

 

 

10.3

 

 

10.0

 

Tier 1 capital to average assets

 

 

8.1

 

 

8.0

 

 

7.9

 

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

 

 

7.5

 

 

7.6

 

 

7.4

 

Tier 1 capital to average assets (Bank)

 

 

9.9

 

 

9.7

 

 

9.6

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:

 

 

  

 

 

  

 

 

  

 

Loans 30-89 days past due

 

$

4,400

 

$

5,801

 

$

3,614

 

Loans 90 days past due and accruing (3)

 

$

308

 

$

299

 

$

1,834

 

Non-performing loans

 

$

2,808

 

$

1,944

 

$

6,955

 

Other real estate owned

 

 

175

 

 

175

 

 

 —

 

Non-performing assets

 

$

2,983

 

$

2,119

 

$

6,955

 

Non-performing loans/total loans

 

 

0.09

%  

 

0.06

%  

 

0.22

%

Non-performing assets/total assets

 

 

0.06

 

 

0.05

 

 

0.16

 

Allowance/non-performing loans

 

 

1118.87

 

 

1639.35

 

 

455.89

 

Allowance/total loans

 

 

0.96

 

 

1.00

 

 

1.02

 


(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.

(3)

Represents loans acquired in connection with the Community National Bank, FNBNY Bancorp, Inc., and Hamptons State Bank acquisitions.


 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Supplemental Financial Information

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

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 

 

Three Months Ended September 30, 

 

Three Months Ended December 31, 

 

 

 

2018

 

2018

 

2017

 

 

 

 

 

 

 

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)

 

$

3,206,033

 

$

36,848

 

4.56

%  

$

3,157,422

 

$

36,243

 

4.55

%  

$

2,984,476

 

$

34,309

 

4.56

%

Securities (1)

 

 

882,886

 

 

6,328

 

2.84

 

 

867,174

 

 

6,044

 

2.77

 

 

997,762

 

 

5,918

 

2.35

 

Deposits with banks

 

 

74,348

 

 

443

 

2.36

 

 

84,986

 

 

437

 

2.04

 

 

21,638

 

 

70

 

1.28

 

Total interest-earning assets (1)

 

 

4,163,267

 

 

43,619

 

4.16

 

 

4,109,582

 

 

42,724

 

4.12

 

 

4,003,876

 

 

40,297

 

3.99

 

Non-interest-earning assets:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Other assets

 

 

359,740

 

 

 

 

 

 

 

369,305

 

 

 

 

 

 

 

359,460

 

 

  

 

  

 

Total assets

 

$

4,523,007

 

 

 

 

 

 

$

4,478,887

 

 

 

 

 

 

$

4,363,336

 

 

  

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

  Savings

 

$

375,792

 

$

656

 

0.69

%  

$

341,056

 

$

395

 

0.46

%  

$

298,766

 

$

81

 

0.11

%  

  NOW

 

 

113,116

 

 

40

 

0.14

 

 

108,271

 

 

27

 

0.10

 

 

126,275

 

 

27

 

0.08

 

  MMDA

 

 

906,565

 

 

2,950

 

1.29

 

 

866,631

 

 

2,386

 

1.09

 

 

797,552

 

 

1,406

 

0.70

 

  Savings, NOW and MMDA

 

 

1,395,473

 

 

3,646

 

1.04

 

 

1,315,958

 

 

2,808

 

0.85

 

 

1,222,593

 

 

1,514

 

0.49

 

  Certificates of deposit of less than $100,000

 

 

61,803

 

 

250

 

1.60

 

 

59,681

 

 

209

 

1.39

 

 

58,655

 

 

157

 

1.06

 

  Certificates of deposit of $100,000 or more

 

 

156,806

 

 

739

 

1.87

 

 

148,339

 

 

674

 

1.80

 

 

113,011

 

 

348

 

1.22

 

Total IPC deposits

 

 

1,614,082

 

 

4,635

 

1.14

 

 

1,523,978

 

 

3,691

 

0.96

 

 

1,394,259

 

 

2,019

 

0.57

 

  Brokered deposits

 

 

263,580

 

 

1,528

 

2.30

 

 

307,651

 

 

1,593

 

2.05

 

 

233,202

 

 

804

 

1.37

 

  Public funds

 

 

433,845

 

 

787

 

0.72

 

 

448,191

 

 

763

 

0.68

 

 

369,123

 

 

221

 

0.24

 

Total public and brokered deposits

 

 

697,425

 

 

2,315

 

1.32

 

 

755,842

 

 

2,356

 

1.24

 

 

602,325

 

 

1,025

 

0.68

 

Total deposits

 

 

2,311,507

 

 

6,950

 

1.19

 

 

2,279,820

 

 

6,047

 

1.05

 

 

1,996,584

 

 

3,044

 

0.60

 

Federal funds purchased and repurchase agreements

 

 

3,180

 

 

15

 

1.87

 

 

3,487

 

 

12

 

1.37

 

 

142,923

 

 

498

 

1.38

 

FHLB advances

 

 

265,235

 

 

1,282

 

1.92

 

 

269,909

 

 

1,182

 

1.74

 

 

401,155

 

 

1,723

 

1.70

 

Subordinated debentures

 

 

78,758

 

 

1,135

 

5.72

 

 

78,723

 

 

1,134

 

5.72

 

 

78,618

 

 

1,134

 

5.72

 

Total borrowings

 

 

347,173

 

 

2,432

 

2.78

 

 

352,119

 

 

2,328

 

2.62

 

 

622,696

 

 

3,355

 

2.14

 

Total interest-bearing liabilities

 

 

2,658,680

 

 

9,382

 

1.40

 

 

2,631,939

 

 

8,375

 

1.26

 

 

2,619,280

 

 

6,399

 

0.97

 

Non-interest-bearing liabilities:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Demand deposits

 

 

1,370,428

 

 

 

 

 

 

 

1,343,107

 

 

 

 

 

 

 

1,255,110

 

 

  

 

  

 

Other liabilities

 

 

47,547

 

 

 

 

 

 

 

43,432

 

 

 

 

 

 

 

36,689

 

 

  

 

  

 

Total liabilities

 

 

4,076,655

 

 

 

 

 

 

 

4,018,478

 

 

 

 

 

 

 

3,911,079

 

 

  

 

  

 

Stockholders' equity

 

 

446,352

 

 

 

 

 

 

 

460,409

 

 

 

 

 

 

 

452,257

 

 

  

 

  

 

Total liabilities and stockholders' equity

 

$

4,523,007

 

 

 

 

 

 

$

4,478,887

 

 

 

 

 

 

$

4,363,336

 

 

  

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest rate spread

 

 

 

 

 

 

 

2.76

%  

 

 

 

 

 

 

2.86

%