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Press Release

Bridge Bancorp, Inc. Reports Third Quarter 2019 Results With Earnings Per Share of $0.70 and Record Net Income of $13.9 Million

Company Release - 10/24/2019 4:15 PM ET

BRIDGEHAMPTON, N.Y., Oct. 24, 2019 (GLOBE NEWSWIRE) -- Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced third quarter results for 2019.

The Company's third quarter 2019 financial results included:

  • Net income for the 2019 third quarter of $13.9 million, or $0.70 per diluted share, compared to $6.5 million, or $0.33 per diluted share for the 2018 third quarter, inclusive of pre-tax charge of $9.5 million, or $0.37 per diluted share after tax, related to the fraudulent conduct of a business customer through its deposit accounts at BNB in the 2018 period.
  • Net interest income for the 2019 third quarter increased $1.2 million over the 2019 second quarter to $36.7 million.
  • Tax-equivalent net interest margin for the 2019 third quarter increased 10 basis points over the 2019 second quarter to 3.40%.
  • Total assets of $4.7 billion at September 30, 2019, 6% higher than September 30, 2018.
  • Loan growth of $311 million, or 10%, compared to September 30, 2018, and $233 million, or 9% annualized, from December 31, 2018.
  • Non-public, non-brokered deposit growth of $306 million, or 11%, compared to September 30, 2018, and $195 million, or 9% annualized, from December 31, 2018.
  • Non-performing assets of $4.2 million at September 30, 2019, $2.1 million higher than September 30, 2018 and $1.2 million higher than December 31, 2018. Loan loss reserve coverage to total loans of 0.92% at September 30, 2019.
  • All capital ratios remain strong. Declared a dividend of $0.23 during the quarter.

Commenting on the third quarter results, Kevin O’Connor, President and CEO said, “This quarter’s results illustrate that our core community banking model delivers returns despite a challenging rate environment- producing record net income, an expanded margin, and strong non-interest income. Our model focuses on relationship banking and delivering customized products to our customers and returns to our shareholders.”

Net Earnings and Returns
Net income in the 2019 third quarter was $13.9 million, or $0.70 per diluted share, an increase of $7.4 million compared to the 2018 third quarter, driven primarily by lower non-interest expense and a rise in net interest income and non-interest income, partially offset by higher provision for loan losses. Excluding the impact of the fraud loss, net income in the 2018 third quarter was $14.0 million, or $0.70 per diluted share. Net income for the nine months ended September 30, 2019 was $37.5 million, or $1.88 per diluted share, compared to $25.4 million, or $1.28 per diluted share, in 2018.

Returns on average assets and equity in the 2019 third quarter were 1.17% and 11.44%, respectively.  Return on average tangible common equity was 14.81% for the 2019 third quarter. Adjusted return on average tangible common equity, excluding the impact of amortization of other intangible assets, was 14.97% for the 2019 third quarter.

“We reported record net interest income as well as record non-interest income this quarter. Highlights included our title and our loan swap program. This loan swap program allows us to deliver fixed rate exposure to our customers while we retain a floating rate asset and generate income. This activity continues to grow so it is now separately reported on our income statement,” noted Mr. O’Connor.

Net Interest Income
Interest income was $46.4 million in the 2019 third quarter, flat compared to the 2019 second quarter, driven primarily by loan portfolio growth offset by lower yields in the loan and securities portfolios, and a decrease in average securities. Interest expense was $9.6 million in the 2019 third quarter, a decrease of $1.2 million compared to the 2019 second quarter, primarily due to a decrease in average cost of interest-bearing liabilities coupled with a decrease in average public and brokered deposits.

The tax-equivalent net interest margin for the 2019 third quarter showed a year-over-year increase of 8 basis points to 3.40% in 2019 from 3.32% in 2018.

“Although the third quarter saw one of the most challenging interest rate environments in years, we were able to expand our net interest margin by 10 basis points compared to the second quarter.  This is a result of our DDA concentration and controlling interest-bearing deposit costs.  Our asset yields only dropped 1 basis point. We also decreased our reliance on high-cost brokered deposits by 44% compared to the second quarter,” stated Mr. O’Connor.

Provision for Loan Losses
The provision for loan losses was $1.0 million for the 2019 third quarter, $0.8 million higher than the 2018 third quarter.  The Company recognized net recoveries of $2 thousand in the 2019 third quarter, compared to net recoveries of $17 thousand in the 2018 third quarter.

Non-Interest Income
Non-interest income was $6.2 million for the 2019 third quarter, $1.3 million higher than the 2018 third quarter, primarily attributable to higher loan swap fees in the 2019 third quarter.  

Non-Interest Expense
Non-interest expense for the 2019 third quarter of $24.2 million was $6.8 million lower than the 2018 third quarter. The decrease in 2019 was primarily due to the impact of the fraud loss in the 2018 third quarter, partially offset by higher salaries and benefits expense, occupancy and equipment costs and other operating expenses in the 2019 period. Excluding the fraud loss in 2018, non-interest expenses were up $2.7 million, or 13%, in the third quarter of 2019.

Income Tax Expense
Income tax expense was $3.9 million in the 2019 third quarter, an increase of $2.5 million compared to the 2018 third quarter. The Company estimates it will record income tax at an effective tax rate of approximately 22% for the remainder of 2019. 

Balance Sheet
Total assets were $4.7 billion at September 30, 2019, $35.3 million higher than December 31, 2018, and $287.3 million higher than September 30, 2018. Total loans held for investment at September 30, 2019 of $3.5 billion reflects growth of $310.9 million, or 10%, over September 30, 2018. Deposits totaled $3.7 billion at September 30, 2019, an increase of $124.1 million, or 3%, over September 30, 2018. Demand deposits increased $92.0 million year-over-year to $1.4 billion at September 30, 2019, representing 38% of total deposits.

The allowance for loan losses was $32.2 million at September 30, 2019, $0.3 million higher than September 30, 2018. The allowance as a percentage of loans was 0.92% at September 30, 2019, compared to 1.00% at September 30, 2018.

Stockholders’ equity was $486.4 million at September 30, 2019, $46.4 million higher than September 30, 2018. The growth reflects earnings, partially offset by shareholders’ dividends. Book value per share was $24.53 at September 30, 2019, $2.30 higher than September 30, 2018. Tangible book value per share was $18.99 at September 30, 2019, $2.35 higher than September 30, 2018.

                
           Change Compared To
  September 30,  December 31, September 30, December 31, September 30,
(Dollars in thousands) 2019 2018 2018 2018 2018
Total assets $ 4,736,021 $4,700,744 $4,448,757 $35,277  $287,264 
Total stockholders' equity   486,403  453,830  439,985  32,573   46,418 
                
Loans held for investment               
Investor commercial real estate ("CRE") $ 990,324 $863,158 $850,242 $127,166  $140,082 
Multi-family ("MF")   673,909  585,827  579,827  88,082   94,082 
Construction and land ("C&L")   116,463  123,393  118,137  (6,930)  (1,674)
Total investor CRE, MF, and C&L   1,780,696  1,572,378  1,548,206  208,318   232,490 
                
Commercial and industrial ("C&I")   667,949  645,724  608,723  22,225   59,226 
Owner-occupied CRE   529,483  510,398  498,327  19,085   31,156 
Total C&I and owner-occupied CRE   1,197,432  1,156,122  1,107,050  41,310   90,382 
                
Residential real estate   497,842  519,763  516,995  (21,921)  (19,153)
Installment and consumer   24,998  20,509  19,157  4,489   5,841 
Net deferred loan costs and fees   7,364  7,039  6,019  325   1,345 
Total loans held for investment $ 3,508,332 $3,275,811 $3,197,427 $232,521  $310,905 
                
Deposits               
Total IPC deposits $ 3,159,772 $2,965,007 $2,854,030 $194,765  $305,742 
Brokered deposits   65,598  255,408  281,241  (189,810)  (215,643)
Public deposits   517,913  665,978  483,871  (148,065)  34,042 
Total public and brokered deposits   583,511  921,386  765,112  (337,875)  (181,601)
Total deposits $ 3,743,283 $3,886,393 $3,619,142 $(143,110) $124,141 
                  

Loan and Line of Credit Origination Information (unaudited)

                
  Three Months Ended  Nine Months Ended
  September 30,  June 30, September 30, September 30,  September 30,
(Dollars in thousands) 2019 2019 2018 2019 2018
Investor CRE $ 100,120 $60,855 $17,353 $ 174,950 $93,971
Multi-family   48,160  22,429  17,120   121,954  40,520
Owner-occupied CRE   12,973  29,468  21,280   97,664  59,073
Commercial and industrial   28,437  36,977  13,828   93,630  67,053
Residential real estate   8,764  9,366  8,318   26,289  83,344
Other   70  6,091  964   20,128  3,875
Total loan originations $ 198,524 $165,186 $78,863 $ 534,615 $347,836
                
Total line of credit originations $ 52,513 $52,727 $49,704 $ 215,125 $209,118
                

“Robust loan originations during the quarter and year-to-date were partially offset by several large loan paydowns. We continue to maintain pricing discipline on all loan products.  IPC deposit growth kept pace with our loan-to-deposit ratio ending the quarter at 94%.  Our IPC deposits are comprised of 44% non-interest bearing DDA, which helps bolster our margin,” Mr. O’Connor said.

Asset Quality
Asset quality measures remained solid, as non-performing assets were $4.2 million, or 0.09% of total assets, at September 30, 2019, compared to $2.1 million, or 0.05% of total assets, at September 30, 2018. Non-performing assets at September 30, 2018 included $175 thousand of other real estate owned. Non-performing loans were $4.2 million, or 0.12% of total loans at September 30, 2019, compared to $1.9 million, or 0.06% of total loans at September 30, 2018.  Loans 30 to 89 days past due increased $0.2 million to $6.0 million at September 30, 2019, compared to $5.8 million at September 30, 2018. Loans past due 90 days and accruing at September 30, 2019 and 2018 were comprised of $0.3 million of acquired loans.

Conference Call
The Company will host a conference call on Friday, October 25, 2019 at 10:00 AM (ET) to discuss the 2019 third quarter results. Investors who would like to join the conference call are encouraged to pre-register using the following link: http://dpregister.com/10134567. 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 Friday, November 8, 2019.

Call and replay information are as follows:

Call Date: Friday, October 25, 2019
Call Time: 10:00 AM (ET)
Domestic Call Dial In:  1-844-746-0738
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: 10134567

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 $4.7 billion, operates 40 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.   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)

          
  September 30,  December 31, September 30,
  2019
 2018 2018
Assets         
Cash and due from banks $ 87,004  $142,145  $63,687 
Interest-earning deposits with banks   44,214   153,223   61,414 
Total cash and cash equivalents   131,218   295,368   125,101 
Securities available for sale, at fair value   610,706   680,886   661,862 
Securities held to maturity   139,729   160,163   164,438 
Total securities   750,435   841,049   826,300 
Securities, restricted   28,469   24,028   25,162 
Loans held for sale   12,643      1,619 
Loans held for investment   3,508,332   3,275,811   3,197,427 
Allowance for loan losses   (32,173)  (31,418)  (31,869)
Loans held for investment, net   3,476,159   3,244,393   3,165,558 
Premises and equipment, net   33,544   35,008   35,893 
Operating lease right-of-use assets (1)   36,356       
Goodwill and other intangible assets   109,840   110,324   110,667 
Other real estate owned   —   175   175 
Accrued interest receivable and other assets   157,357   150,399   158,282 
Total assets $ 4,736,021  $4,700,744  $4,448,757 
          
Liabilities and stockholders' equity         
Demand deposits $ 1,379,803  $1,275,664  $1,286,673 
Savings and negotiable order of withdrawal ("NOW") deposits   506,476   496,881   468,242 
Money market deposit accounts ("MMDA")   1,063,848   975,531   883,386 
Certificates of deposit of less than $100,000   59,913   61,827   61,548 
Certificates of deposit of $100,000 or more   149,732   155,104   154,181 
Total individual, partnership and corporate ("IPC") deposits   3,159,772   2,965,007   2,854,030 
Brokered deposits   65,598   255,408   281,241 
Public funds - demand deposits   45,036   172,941   46,119 
Public funds - other deposits   472,877   493,037   437,752 
Total public and brokered deposits   583,511   921,386   765,112 
Total deposits   3,743,283   3,886,393   3,619,142 
Federal funds purchased and repurchase agreements   956   539   816 
Federal Home Loan Bank ("FHLB") advances   337,000   240,433   265,648 
Subordinated debentures, net   78,885   78,781   78,746 
Operating lease liabilities (1)   39,064       
Other liabilities and accrued expenses   50,430   40,768   44,420 
Total liabilities   4,249,618   4,246,914   4,008,772 
Total stockholders' equity   486,403   453,830   439,985 
Total liabilities and stockholders' equity $ 4,736,021  $4,700,744  $4,448,757 
             

______________________________
(1) The Company adopted ASU 2016-02, Leases (Topic 842) using the transition approach at the beginning of the period of adoption on January 1, 2019 and did not restate comparative prior periods.


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (unaudited)
(In thousands)

                
  Three Months Ended  Nine Months Ended
  September 30,  June 30, September 30, September 30,  September 30,
  2019
 2019 2018 2019
 2018
Interest income $ 46,354  $46,352  $42,589  $ 137,221  $125,504 
Interest expense   9,639   10,835   8,375    30,666   22,822 
Net interest income   36,715   35,517   34,214    106,555   102,682 
Provision for loan losses   1,000   3,500   200    5,100   1,400 
Net interest income after provision for loan losses   35,715   32,017   34,014    101,455   101,282 
                
Non-interest income:               
Service charges and other fees   2,588   2,556   2,549    7,572   7,274 
Title fees   508   335   384    1,149   1,339 
Net securities gains (losses)   —   201       201   (7,921)
Gain on sale of SBA loans   601   844   524    1,662   1,586 
Bank owned life insurance   561   556   557    1,670   1,658 
Loan swap fees   1,557   528   404    3,200   713 
Other   429   479   500    1,507   1,804 
Total non-interest income   6,244   5,499   4,918    16,961   6,453 
                
Non-interest expense:               
Salaries and employee benefits   14,294   13,659   12,134    41,233   38,001 
Occupancy and equipment   3,490   3,560   3,325    10,581   9,773 
Fraud loss   —      9,500    —   9,500 
Amortization of other intangible assets   182   210   215    605   703 
Other   6,238   6,575   5,830    18,388   18,132 
Total non-interest expense   24,204   24,004   31,004    70,807   76,109 
                
Income before income taxes   17,755   13,512   7,928    47,609   31,626 
Income tax expense   3,852   2,859   1,381    10,126   6,263 
Net income $ 13,903  $10,653  $6,547  $ 37,483  $25,363 
                
Earnings Per Share (unaudited)               
(In thousands, except per share data) Three Months Ended  Nine Months Ended
  September 30,  June 30, September 30, September 30,  September 30,
  2019
 2019 2018 2019
 2018
Net income $ 13,903  $10,653  $6,547  $ 37,483  $25,363 
Dividends paid on and earnings allocated to participating securities   (294)  (226)  (145)   (797)  (550)
Income attributable to common stock $ 13,609  $10,427  $6,402  $ 36,686  $24,813 
                
Weighted average common shares outstanding, including participating securities   19,958   19,965   19,890    19,950   19,869 
Weighted average participating securities   (422)  (428)  (438)   (425)  (435)
Weighted average common shares outstanding   19,536   19,537   19,452    19,525   19,434 
Basic earnings per common share $ 0.70  $0.53  $0.33  $ 1.88  $1.28 
                
Weighted average common shares outstanding   19,536   19,537   19,452    19,525   19,434 
Incremental shares from assumed conversions of options and restricted stock units   32   28   33    27   27 
Weighted average common and equivalent shares outstanding   19,568   19,565   19,485    19,552   19,461 
Diluted earnings per common share $ 0.70  $0.53  $0.33  $ 1.88  $1.28 
                     

BRIDGE BANCORP, INC. AND SUBSIDIARIES
Consolidated Financial Highlights (unaudited)
(In thousands, except per share amounts and financial ratios)

            
  Three Months Ended  Nine Months Ended  
  September 30,  June 30, September 30, September 30,  September 30, 
  2019 2019 2018 2019 2018 
Selected Financial Data:           
Return on average total assets  1.17%0.90%0.58% 1.07%0.76%
Adjusted return on average total assets (1)  1.17 0.90 1.24  1.07 1.16 
Return on average stockholders' equity  11.44 9.06 5.64  10.64 7.45 
Adjusted return on average stockholders' equity (1)  11.44 9.06 12.03  10.64 11.45 
Return on average tangible common equity (1) (2)  14.81 11.82 7.43  13.88 9.86 
Adjusted return on average tangible common equity (1) (2)  14.97 12.01 16.03  14.06 15.36 
Net interest margin, tax-equivalent basis  3.40 3.30 3.32  3.33 3.35 
Efficiency ratio  56.34 58.52 79.23  57.33 69.74 
Adjusted efficiency ratio (1)  55.79 58.03 54.22  56.74 56.08 
Operating expense/average assets  2.04 2.03 2.75  2.02 2.27 
Adjusted operating expense/average assets (1)  2.03 2.01 1.89  2.00 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.

           
  September 30,  December 31, September 30, 
  2019 2018 2018 
Selected Financial Data:          
Book value per share $ 24.53 $22.93 $22.23 
Tangible book value per share (1) $ 18.99 $17.36 $16.64 
Common shares outstanding   19,830  19,791  19,789 
           
Capital Ratios:          
Total capital to risk-weighted assets   13.4 13.6% 13.6%
Tier 1 capital to risk-weighted assets   10.4  10.4  10.3 
Common equity Tier 1 capital to risk-weighted assets   10.4  10.4  10.3 
Tier 1 capital to average assets   8.4  8.1  8.0 
Tangible common equity to tangible assets (1) (2)   8.1  7.5  7.6 
Tier 1 capital to average assets (Bank)   10.0  9.9  9.7 
           
Asset Quality:          
Loans 30-89 days past due $ 5,986 $4,400 $5,801 
Loans 90 days past due and accruing (3) $ 338 $308 $299 
Non-performing loans $ 4,211 $2,808 $1,944 
Other real estate owned   —  175  175 
Non-performing assets $ 4,211 $2,983 $2,119 
Non-performing loans/total loans   0.12 0.09% 0.06%
Non-performing assets/total assets   0.09  0.06  0.05 
Allowance/non-performing loans  764.02  1118.87  1639.35 
Allowance/total loans   0.92  0.96  1.00 
           

____________________________
(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 purchased credit impaired loans.


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Supplemental Financial Information
Condensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)
(Dollars in thousands)

                          
  Three Months Ended September 30,  Three Months Ended June 30, Three Months Ended September 30, 
  2019
 2019 2018 
      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) $ 3,442,462 $ 41,053   4.73 $3,373,601 $40,000  4.76 %$3,157,422 $36,243  4.55 %
Securities (1)   787,387   5,060   2.55   860,031  5,940  2.77   867,174  6,044  2.77  
Deposits with banks   61,853   342   2.19   102,515  599  2.34   84,986  437  2.04  
Total interest-earning assets (1)   4,291,702   46,455   4.29   4,336,147  46,539  4.30   4,109,582  42,724  4.12  
Non-interest-earning assets:                         
Other assets   412,300       401,720       369,305      
Total assets $ 4,704,002      $4,737,867      $4,478,887      
                          
Interest-bearing liabilities:                         
Savings $ 433,086 $ 1,083   0.99 $443,830 $1,231  1.11 %$341,056 $395  0.46 %
NOW   125,056   51   0.16   124,329  48  0.15   108,271  27  0.10  
MMDA   1,034,002   3,452   1.32   1,012,419  3,840  1.52   866,631  2,386  1.09  
Savings, NOW and MMDA   1,592,144   4,586   1.14   1,580,578  5,119  1.30   1,315,958  2,808  0.85  
Certificates of deposit of less than $100,000   60,144   299   1.97   60,940  285  1.88   59,681  209  1.39  
Certificates of deposit of $100,000 or more   152,093   844   2.20   152,809  806  2.12   148,339  674  1.80  
Total IPC deposits   1,804,381   5,729   1.26   1,794,327  6,210  1.39   1,523,978  3,691  0.96  
Brokered deposits   75,410   387   2.04   134,720  771  2.30   307,651  1,593  2.05  
Public funds   500,440   1,139   0.90   546,432  1,383  1.02   448,191  763  0.68  
Total public and brokered deposits   575,850   1,526   1.05   681,152  2,154  1.27   755,842  2,356  1.24  
Total deposits   2,380,231   7,255   1.21   2,475,479  8,364  1.36   2,279,820  6,047  1.05  
Federal funds purchased and repurchase agreements   14,160   70   1.96   25,246  158  2.51   3,487  12  1.37  
FHLB advances   244,011   1,179   1.92   243,322  1,178  1.94   269,909  1,182  1.74  
Subordinated debentures   78,862   1,135   5.71   78,827  1,135  5.78   78,723  1,134  5.72  
Total borrowings   337,033   2,384   2.81   347,395  2,471  2.85   352,119  2,328  2.62  
Total interest-bearing liabilities   2,717,264   9,639   1.41   2,822,874  10,835  1.54   2,631,939  8,375  1.26  
Non-interest-bearing liabilities:                         
Demand deposits   1,417,159       1,365,279       1,343,107      
Other liabilities   87,313       78,278       43,432      
Total liabilities   4,221,736       4,266,431       4,018,478      
Stockholders' equity   482,266       471,436       460,409      
Total liabilities and stockholders' equity $ 4,704,002      $4,737,867      $4,478,887      
                          
Net interest rate spread        2.88       2.76 %      2.86 %
Net interest-earning assets $ 1,574,438      $1,513,273      $1,477,643      
Net interest margin - tax-equivalent      36,816   3.40     35,704  3.30 %    34,349  3.32 %
Less: Tax-equivalent adjustment      (101)  (0.01)     (187) (0.01)     (135) (0.02) 
Net interest income    $ 36,715       $35,517       $34,214    
Net interest margin        3.39       3.29 %      3.30 %
                          

____________________________
(1) Presented on a tax-equivalent basis.


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Supplemental Financial Information
Condensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)
(Dollars in thousands)

                  
  Nine Months Ended September 30,  
  2019
 2018 
      Average     Average 
  Average   Yield/ Average   Yield/ 
  Balance Interest Cost Balance Interest Cost 
Interest-earning assets:                 
Loans, net (including loan fee income) (1) $ 3,364,574 $ 118,712   4.72 $3,155,093 $107,720  4.56 %
Securities (1)   844,057   17,442   2.76   920,108  17,608  2.56  
Deposits with banks   85,241   1,485   2.33   44,660  633  1.90  
Total interest-earning assets (1)   4,293,872   137,639   4.29   4,119,861  125,961  4.09  
Non-interest-earning assets:                 
Other assets   402,174       363,131      
Total assets $ 4,696,046      $4,482,992      
                  
Interest-bearing liabilities:                 
Savings $ 425,265 $ 3,219   1.01 $309,990 $605  0.26 %
NOW   118,530   140   0.16   124,750  83  0.09  
MMDA   1,010,304   10,878   1.44   815,537  5,620  0.92  
Savings, NOW and MMDA   1,554,099   14,237   1.22   1,250,277  6,308  0.67  
Certificates of deposit of less than $100,000   60,796   845   1.86   58,745  540  1.23  
Certificates of deposit of $100,000 or more   151,675   2,382   2.10   125,081  1,390  1.49  
Total IPC deposits   1,766,570   17,464   1.32   1,434,103  8,238  0.77  
Brokered deposits   139,356   2,368   2.27   262,364  3,677  1.87  
Public funds   527,022   3,701   0.94   484,814  1,871  0.52  
Total public and brokered deposits   666,378   6,069   1.22   747,178  5,548  0.99  
Total deposits   2,432,948   23,533   1.29   2,181,281  13,786  0.85  
Federal funds purchased and repurchase agreements   15,722   273   2.32   91,989  1,185  1.72  
FHLB advances   243,544   3,455   1.90   344,677  4,447  1.72  
Subordinated debentures   78,828   3,405   5.78   78,688  3,404  5.78  
Total borrowings   338,094   7,133   2.82   515,354  9,036  2.34  
Total interest-bearing liabilities   2,771,042   30,666   1.48   2,696,635  22,822  1.13  
Non-interest-bearing liabilities:                 
Demand deposits   1,372,285       1,290,782      
Other liabilities   81,588       40,656      
Total liabilities   4,224,915       4,028,073      
Stockholders' equity   471,131       454,919      
Total liabilities and stockholders' equity $ 4,696,046      $4,482,992      
                  
Net interest rate spread        2.81       2.96 %
Net interest-earning assets $ 1,522,830      $1,423,226      
Net interest margin - tax-equivalent      106,973   3.33     103,139  3.35 %
Less: Tax-equivalent adjustment      (418)  (0.01)     (457) (0.02) 
Net interest income    $ 106,555       $102,682    
Net interest margin        3.32       3.33 %
                  

____________________
(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 non-GAAP financial measures exclude a fraud loss during the third quarter of 2018 and certain net securities losses associated with the Company’s strategic plan to restructure its balance sheet during the second quarter of 2018.

            
  Three Months Ended  Nine Months Ended  
  September 30,  June 30, September 30, September 30,  September 30, 
  2019 2019 2018 2019 2018 
Return on average total assets - as reported  1.17 0.90 %0.58 % 1.07 0.76 %
Net securities losses  —       —  0.24  
Fraud loss  —    0.84   —  0.28  
Income tax effect of adjustments above  —    (0.18)  —  (0.12) 
Adjusted return on average total assets (non-GAAP)  1.17  0.90  1.24   1.07  1.16  
            
Return on average stockholders' equity - as reported  11.44 %9.06 %5.64 % 10.64 7.45 %
Net securities losses  —       —  2.33  
Fraud loss  —    8.19   —  2.79  
Income tax effect of adjustments above  —    (1.80)  —  (1.12) 
Adjusted return on average stockholders' equity (non-GAAP)  11.44  9.06  12.03   10.64  11.45  
            
Return on average tangible common equity - as reported