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Press Release

Bridge Bancorp, Inc. Reports Fourth Quarter and Year End 2019 Results With Record Earnings Per Share of $0.71 and Record Net Income of $14.2 Million

Company Release - 1/29/2020 4:15 PM ET

BRIDGEHAMPTON, N.Y., Jan. 29, 2020 (GLOBE NEWSWIRE) -- Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced fourth quarter and year end results for 2019.

The Company's fourth quarter and full year 2019 financial results included:

  • Net income for the 2019 fourth quarter of $14.2 million, or $0.71 per diluted share.
  • Net income for the full year 2019 of $51.7 million, or $2.59 per diluted share, compared to $39.2 million, or $1.97 per diluted share, for the full year 2018.
  • Net interest income for the 2019 fourth quarter increased $1.6 million over the 2018 fourth quarter to $35.6 million.
  • Tax-equivalent net interest margin was 3.26% in the 2019 fourth quarter, flat compared to the 2018 fourth quarter.
  • Total assets of $4.9 billion at December 31, 2019, 4% higher than September 30, 2019, and 5% higher than December 31, 2018.
  • 2019 loan growth of $404 million, or 12%, with 2019 fourth quarter growth of $172 million, or 19% annualized.
  • Loan and line of credit originations of $1.1 billion for the full year 2019.
  • Non-public, non-brokered deposit growth of $77 million, or 3%, compared to December 31, 2018.
  • Non-performing assets of $4.4 million at December 31, 2019, $1.4 million higher than December 31, 2018 and $0.2 million higher than September 30, 2019. Loan loss reserve coverage to total loans of 0.89% at December 31, 2019.
  • All capital ratios remain strong. Declared a dividend of $0.24 during the quarter, an increase of 4% over the previous dividend.

Commenting on the fourth quarter results, Kevin O’Connor, President and CEO said, “The results for the quarter were strong, reflecting record levels of income and earnings per share, and the fourth quarter provides the opportunity to reflect on the totality of 2019 and the continued expansion and evolution of our company. We had strong increases in net loans and core deposit growth, with much of this activity occurring in our western markets. This allowed us to aggressively manage the funding mix and deposit costs, offsetting, in large part, the repricing of our larger floating rate loan portfolio. We believe the greater geographic diversity and increased product offerings we have been developing allowed us to adjust to the varied market conditions and specific opportunities of 2019.” 

Net Earnings and Returns
Net income in the 2019 fourth quarter was $14.2 million, or $0.71 per diluted share, an increase of $0.3 million compared to the 2018 fourth quarter, driven primarily by higher net interest income and non-interest income, partially offset by higher provision for loan losses and non-interest expense. Net income for the full year 2019 was $51.7 million, or $2.59 per diluted share, compared to $39.2 million, or $1.97 per diluted share, in 2018.

Returns on average assets and equity in the 2019 fourth quarter were 1.18% and 11.40%, respectively.  Return on average tangible common equity was 14.66% for the 2019 fourth quarter.  

Net Interest Income
Interest income was $44.3 million in the 2019 fourth quarter, a decrease of $2.0 million compared to the 2019 third quarter, primarily due to lower yields in the loan and securities portfolios, and a decrease in average securities, partially offset by loan portfolio growth. Interest expense was $8.7 million in the 2019 fourth quarter, a decrease of $1.0 million compared to the 2019 third quarter, primarily due to a decrease in average cost of interest-bearing liabilities coupled with a decrease in average deposits, partially offset by an increase in average borrowings.

The tax-equivalent net interest margin was 3.26% in the 2019 fourth quarter, which was unchanged year-over-year compared to the 2018 fourth quarter and down 14 basis points compared to the 2019 third quarter.

Commenting on the margin Mr. O’Connor said, “The lower margin, despite our continued aggressive move to manage deposit costs, is the result of the full quarter impact of resets on our growing floating rate loan portfolio, the third quarter effect of line of credit fees and finally, the substantial decline in the yield of our investment portfolio as higher prepayments on the underlying MBS instruments negatively pushed yields lower.”

“This has been an interesting year as we moved from expecting further rate hikes to managing through three rate cuts. The long-term strategy has been to become more neutral to interest rates, restructuring both assets and funding to offset the inherent risks in the core community bank. This can at times create short-term volatility as we saw during this year. Our deposit costs are down 15 basis points and 18 basis points in the third and fourth quarter, respectively, for a total of 33 basis points since the inception of this rate cut cycle.  The asset repricings have been as dramatic, down 26 basis points over this same time frame, but they occurred primarily in the fourth quarter. We continue to believe it’s prudent to maintain a strong core funded balance sheet,” stated Mr. O’Connor. 

Provision for Loan Losses
The provision for loan losses was $0.6 million for the 2019 fourth quarter, $0.2 million higher than the 2018 fourth quarter, and $5.7 million for the full year 2019, $3.9 million higher than the full year 2018. The Company recognized net recoveries of $13 thousand in the 2019 fourth quarter, compared to net charge-offs of $0.9 million in the 2018 fourth quarter. The Company recognized net charge-offs of $4.3 million in the full year 2019, compared to net charge-offs of $2.1 million in the full year 2018.

Non-Interest Income
Non-interest income was $8.4 million for the 2019 fourth quarter, $3.3 million higher than the 2018 fourth quarter, primarily attributable to higher loan swap fees in the 2019 fourth quarter. Non-interest income was $25.4 million for the full year 2019, $13.8 million higher than the 2018 full year, driven primarily by the net securities loss related to the balance sheet restructure in 2018 and higher loan swap fees in 2019.

“A confluence of factors transpired this quarter which impacted our results.  Many multi-family investors opted to lock in low rates for longer periods.  At the same time, the shape of the yield curve enabled us to provide fixed rate funding, while retaining floating rate exposure within 15 basis points of the customer’s fixed rate.  This strategy contributed to our loan growth, as well as non-interest income, while servicing our customers and increasing our asset sensitivity,” noted Mr. O’Connor.

Non-Interest Expense
Non-interest expense for the 2019 fourth quarter of $25.3 million was $3.3 million higher than the 2018 fourth quarter. Non-interest expense for the full year 2019 decreased to $96.1 million from $98.2 million in full year 2018. The increase in the fourth quarter was primarily due to higher salaries and benefits expense, occupancy and equipment costs and other operating expenses in the 2019 period, coupled with the impact of the fraud recovery in the 2018 fourth quarter, partially offset by office relocation costs in the 2018 fourth quarter. The decrease in full year non-interest expense was primarily due to the impact of the net fraud loss and office relocation costs during 2018, partially offset by higher salaries and benefits expense, occupancy and equipment costs and other operating expenses in the 2019 period.

Income Tax Expense
Income tax expense was $3.9 million in the 2019 fourth quarter, and $14.1 million in the full year 2019. Income tax expense was $2.9 million in the 2018 fourth quarter, and $9.1 million in the full year 2018.

Balance Sheet
Total assets were $4.9 billion at December 31, 2019, $185.5 million higher than September 30, 2019, and $220.8 million higher than December 31, 2018. Total loans held for investment at December 31, 2019 of $3.7 billion reflects growth of $404.5 million, or 12%, over year-end 2018. Deposits totaled $3.8 billion at December 31, 2019, a decrease of $71.7 million, or 2%, compared to December 31, 2018. Demand deposits increased $70.4 million year-over-year to $1.5 billion at December 31, 2019, representing 40% of total deposits.

The allowance for loan losses was $32.8 million at December 31, 2019, $1.4 million higher than December 31, 2018. The allowance as a percentage of loans was 0.89% at December 31, 2019, compared to 0.96% at year-end 2018.

Stockholders’ equity was $497.2 million at December 31, 2019, $43.3 million higher than December 31, 2018. The growth reflects earnings, partially offset by shareholders’ dividends. Book value per share was $25.06 at December 31, 2019, $2.13 higher than December 31, 2018. Tangible book value per share was $19.54 at December 31, 2019, $2.18 higher than prior year-end.

                
           Change Compared To
  December 31,  September 30, December 31, September 30, December 31,
(Dollars in thousands) 2019 2019 2018 2019 2018
Total assets $ 4,921,520 $4,736,021 $4,700,744 $185,499  $220,776 
Total stockholders' equity   497,154  486,403  453,830  10,751   43,324 
                
Loans held for investment               
Investor commercial real estate ("CRE") $ 1,034,599 $990,324 $863,158 $44,275  $171,441 
Owner-occupied CRE   531,088  529,483  510,398  1,605   20,690 
Construction and land   97,311  116,463  123,393  (19,152)  (26,082)
Commercial and industrial   679,444  667,949  645,724  11,495   33,720 
Total commercial   2,342,442  2,304,219  2,142,673  38,223   199,769 
                
Multi-family   812,174  673,909  585,827  138,265   226,347 
Residential real estate   493,144  497,842  519,763  (4,698)  (26,619)
Installment and consumer   24,836  24,998  20,509  (162)  4,327 
Net deferred loan costs and fees   7,689  7,364  7,039  325   650 
Total loans held for investment $ 3,680,285 $3,508,332 $3,275,811 $171,953  $404,474 
                
Deposits               
Total IPC deposits $ 3,042,171 $3,159,772 $2,965,007 $(117,601) $77,164 
Brokered deposits   164,034  65,598  255,408  98,436   (91,374)
Public deposits   608,442  517,913  665,978  90,529   (57,536)
Total public and brokered deposits   772,476  583,511  921,386  188,965   (148,910)
Total deposits $ 3,814,647 $3,743,283 $3,886,393 $71,364  $(71,746)


Loan and Line of Credit Origination Information (unaudited)

                
  Three Months Ended  Year Ended
  December 31,  September 30, December 31, December 31,  December 31,
(Dollars in thousands) 2019 2019 2018 2019 2018
Investor CRE $ 68,562 $100,120 $25,871 $ 243,512 $126,042
Owner-occupied CRE   20,221  12,973  18,720   118,286  77,793
Commercial and industrial   79,404  57,119  59,335   332,167  259,120
Multi-family   175,906  48,160  10,425   297,860  50,945
Residential real estate   9,228  8,764  12,539   35,517  96,133
Other   18,618  23,901  11,724   94,337  85,535
Total loan and line of credit originations $ 371,939 $251,037 $138,614 $ 1,121,679 $695,568
                

“In 2019 we planned to focus on our western markets where we had greater opportunity to grow market share. This year more than half of our over $1 billion in loan production came from the Nassau County and New York City markets, compared to 2018 when more than half of our loan production occurred in Suffolk County.  Our plan included hiring more bankers to cover our western markets, working in concert with our branch network; this cooperative effort resulted in a 19% increase in deposits in our western region.  Embedded in our IPC deposits are several relationships that decreased due to pricing expectations that we did not feel fit our strategy.  We constantly balance the use of alternative funding sources when evaluating whether to pay up for deposits,” Mr. O’Connor said.

Asset Quality
Asset quality measures remained solid, as non-performing assets were $4.4 million, or 0.09% of total assets, at December 31, 2019, compared to $3.0 million, or 0.06% of total assets, at December 31, 2018. Non-performing assets at December 31, 2018 included $0.2 million of other real estate owned. Non-performing loans were $4.4 million, or 0.12% of total loans at December 31, 2019, compared to $2.8 million, or 0.09% of total loans at December 31, 2018.  Loans 30 to 89 days past due increased $2.0 million to $6.4 million at December 31, 2019, compared to $4.4 million at December 31, 2018. Loans past due 90 days and accruing at December 31, 2019 and 2018 were comprised of $0.3 million of purchased credit impaired loans.

Conference Call
The Company will host a conference call on Thursday, January 30, 2020 at 10:00 AM (ET) to discuss the 2019 fourth quarter results. Investors who would like to join the conference call are encouraged to pre-register using the following link: http://dpregister.com/10137586. 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, February 13, 2020.

Call and replay information are as follows:

Call Date: Thursday, January 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: 10137586

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 $4.9 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)

          
  December 31,  September 30, December 31,
  2019 2019 2018
Assets         
Cash and due from banks $ 77,693  $87,004  $142,145 
Interest-earning deposits with banks   39,501   44,214   153,223 
Total cash and cash equivalents   117,194   131,218   295,368 
Securities available for sale, at fair value   638,291   610,706   680,886 
Securities held to maturity   133,638   139,729   160,163 
Total securities   771,929   750,435   841,049 
Securities, restricted   32,879   28,469   24,028 
Loans held for sale   12,643   12,643    
Loans held for investment   3,680,285   3,508,332   3,275,811 
Allowance for loan losses   (32,786)  (32,173)  (31,418)
Loans held for investment, net   3,647,499   3,476,159   3,244,393 
Premises and equipment, net   34,062   33,544   35,008 
Operating lease right-of-use assets (1)   43,450   36,356    
Goodwill and other intangible assets   109,627   109,840   110,324 
Other real estate owned   —      175 
Accrued interest receivable and other assets   152,237   157,357   150,399 
Total assets $ 4,921,520  $4,736,021  $4,700,744 
          
Liabilities and stockholders' equity         
Demand deposits $ 1,386,037  $1,379,803  $1,275,664 
Savings and negotiable order of withdrawal ("NOW") deposits   438,902   506,476   496,881 
Money market deposit accounts ("MMDA")   1,012,322   1,063,848   975,531 
Certificates of deposit of less than $100,000   58,640   59,913   61,827 
Certificates of deposit of $100,000 or more   146,270   149,732   155,104 
Total individual, partnership and corporate ("IPC") deposits   3,042,171   3,159,772   2,965,007 
Brokered deposits   164,034   65,598   255,408 
Public funds - demand deposits   132,921   45,036   172,941 
Public funds - other deposits   475,521   472,877   493,037 
Total public and brokered deposits   772,476   583,511   921,386 
Total deposits   3,814,647   3,743,283   3,886,393 
Federal funds purchased and repurchase agreements   999   956   539 
Federal Home Loan Bank ("FHLB") advances   435,000   337,000   240,433 
Subordinated debentures, net   78,920   78,885   78,781 
Operating lease liabilities (1)   45,977   39,064    
Other liabilities and accrued expenses   48,823   50,430   40,768 
Total liabilities   4,424,366   4,249,618   4,246,914 
Total stockholders' equity   497,154   486,403   453,830 
Total liabilities and stockholders' equity $ 4,921,520  $4,736,021  $4,700,744 

____________________________
(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  Year Ended
  December 31,  September 30, December 31, December 31,  December 31,
  2019 2019 2018 2019 2018
Interest income $ 44,320  $46,354  $43,480  $ 181,541  $168,984 
Interest expense   8,672   9,639   9,382    39,338   32,204 
Net interest income   35,648   36,715   34,098    142,203   136,780 
Provision for loan losses   600   1,000   400    5,700   1,800 
Net interest income after provision for loan losses   35,048   35,715   33,698    136,503   134,980 
                
Non-interest income:               
Service charges and other fees   2,487   2,588   2,579    10,059   9,853 
Title fees   571   508   458    1,720   1,797 
Net securities gains (losses)   —          201   (7,921)
Gain on sale of SBA loans   322   601   492    1,984   2,078 
Bank owned life insurance   560   561   561    2,230   2,219 
Loan swap fees   4,260   1,557   3    7,460   716 
Other   226   429   1,022    1,733   2,826 
Total non-interest income   8,426   6,244   5,115    25,387   11,568 
                
Non-interest expense:               
Salaries and employee benefits   15,011   14,294   12,457    56,244   50,458 
Occupancy and equipment   3,791   3,490   3,472    14,372   13,245 
Net fraud (recovery) loss   —      (600)   —   8,900 
Office relocation costs   —      750    —   750 
Amortization of other intangible assets   182   182   214    787   917 
Other   6,348   6,238   5,778    24,736   23,910 
Total non-interest expense   25,332   24,204   22,071    96,139   98,180 
                
Income before income taxes   18,142   17,755   16,742    65,751   48,368 
Income tax expense   3,934   3,852   2,878    14,060   9,141 
Net income $ 14,208  $13,903  $13,864  $ 51,691  $39,227 
                
                
Earnings Per Share (unaudited)               
(In thousands, except per share data) Three Months Ended  Year Ended
  December 31,  September 30, December 31, December 31,  December 31,
  2019 2019 2018 2019 2018
Net income $ 14,208  $13,903  $13,864  $ 51,691  $39,227 
Dividends paid on and earnings allocated to participating securities   (299)  (294)  (303)   (1,096)  (853)
Income attributable to common stock $ 13,909  $13,609  $13,561  $ 50,595  $38,374 
                
Weighted average common shares outstanding, including participating securities   19,957   19,958   19,893    19,952   19,875 
Weighted average participating securities   (419)  (422)  (433)   (424)  (434)
Weighted average common shares outstanding   19,538   19,536   19,460    19,528   19,441 
Basic earnings per common share $ 0.71  $0.70  $0.70  $ 2.59  $1.97 
                
Weighted average common shares outstanding   19,538   19,536   19,460    19,528   19,441 
Incremental shares from assumed conversions of options and restricted stock units   40   32   32    31   27 
Weighted average common and equivalent shares outstanding   19,578   19,568   19,492    19,559   19,468 
Diluted earnings per common share $ 0.71  $0.70  $0.70  $ 2.59  $1.97 
 


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, 
  2019 2019 2018 2019 2018 
Selected Financial Data:           
Return on average total assets  1.181.17%1.22% 1.100.87%
Adjusted return on average total assets (1)  1.18 1.17 1.23  1.10 1.18 
Return on average stockholders' equity  11.40 11.44 12.32  10.84 8.66 
Adjusted return on average stockholders' equity (1)  11.40 11.44 12.43  10.84 11.69 
Return on average tangible common equity (1) (2)  14.66 14.81 16.38  14.09 11.47 
Adjusted return on average tangible common equity (1) (2)  14.81 14.97 16.72  14.26 15.69 
Net interest margin, tax-equivalent basis  3.26 3.40 3.26  3.31 3.33 
Efficiency ratio  57.48 56.34 56.28  57.37 66.18 
Adjusted efficiency ratio (1)  56.93 55.79 55.16  56.79 55.85 
Operating expense/average assets  2.10 2.04 1.94  2.04 2.19 
Adjusted operating expense/average assets (1)  2.09 2.03 1.90  2.02 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.

           
  December 31,  September 30, December 31, 
  2019 2019 2018 
Selected Financial Data:          
Book value per share $ 25.06 $24.53 $22.93 
Tangible book value per share (1) $ 19.54 $18.99 $17.36 
Common shares outstanding   19,837  19,830  19,791 
           
Capital Ratios:          
Total capital to risk-weighted assets   13.1 13.4% 13.6%
Tier 1 capital to risk-weighted assets   10.2  10.4  10.4 
Common equity Tier 1 capital to risk-weighted assets   10.2  10.4  10.4 
Tier 1 capital to average assets   8.5  8.4  8.1 
Tangible common equity to tangible assets (1) (2)   8.1  8.1  7.5 
Tier 1 capital to average assets (Bank)   10.1  10.0  9.9 
           
Asset Quality:          
Loans 30-89 days past due $ 6,366 $5,986 $4,400 
Loans 90 days past due and accruing (3) $ 343 $338 $308 
Non-performing loans $ 4,369 $4,211 $2,808 
Other real estate owned   —    175 
Non-performing assets $ 4,369 $4,211 $2,983 
Non-performing loans/total loans   0.12 0.12% 0.09%
Non-performing assets/total assets   0.09  0.09  0.06 
Allowance/non-performing loans  750.42  764.02  1118.87 
Allowance/total loans   0.89  0.92  0.96 

____________________________
(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 December 31,  Three Months Ended September 30, Three Months Ended December 31, 
  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) $ 3,547,865 $ 39,780   4.45 $3,442,462 $41,053  4.73 %$3,206,033 $36,848  4.56 %
Securities (1)   761,628   4,432   2.31   787,387  5,060  2.55   882,886  6,328  2.84  
Deposits with banks   46,994   212   1.79   61,853  342  2.19   74,348  443  2.36  
Total interest-earning assets (1)   4,356,487   44,424   4.05   4,291,702  46,455  4.29   4,163,267  43,619  4.16  
Non-interest-earning assets:                         
Other assets   428,508       412,300       359,740      
Total assets $ 4,784,995      $4,704,002      $4,523,007      
                          
Interest-bearing liabilities:                         
Savings $ 335,743 $ 377   0.45 $433,086 $1,083  0.99 %$375,792 $656  0.69 %
NOW   136,562   53   0.15   125,056  51  0.16   113,116  40  0.14  
MMDA   1,067,493   3,108   1.16   1,034,002  3,452  1.32   906,565  2,950  1.29  
Savings, NOW and MMDA   1,539,798   3,538   0.91   1,592,144  4,586  1.14   1,395,473  3,646  1.04  
Certificates of deposit of less than $100,000   59,337   284   1.90   60,144  299  1.97   61,803  250  1.60  
Certificates of deposit of $100,000 or more   147,557   774   2.08   152,093  844  2.20   156,806  739  1.87  
Total IPC deposits   1,746,692   4,596   1.04   1,804,381  5,729  1.26   1,614,082  4,635  1.14  
Brokered deposits   93,372   391   1.66   75,410  387  2.04   263,580  1,528  2.30  
Public funds   452,509   939   0.82   500,440  1,139  0.90   433,845  787  0.72  
Total public and brokered deposits   545,881   1,330   0.97   575,850  1,526  1.05   697,425  2,315  1.32  
Total deposits   2,292,573   5,926   1.03   2,380,231  7,255  1.21   2,311,507  6,950  1.19  
Federal funds purchased and repurchase agreements   116,312   494   1.69   14,160  70  1.96   3,180  15  1.87  
FHLB advances   250,446   1,118   1.77   244,011  1,179  1.92   265,235  1,282  1.92  
Subordinated debentures   78,897   1,134   5.70   78,862  1,135  5.71   78,758  1,135  5.72  
Total borrowings   445,655   2,746   2.44   337,033  2,384  2.81   347,173  2,432  2.78  
Total interest-bearing liabilities   2,738,228   8,672   1.26   2,717,264  9,639  1.41   2,658,680  9,382  1.40  
Non-interest-bearing liabilities:                         
Demand deposits   1,452,908       1,417,159       1,370,428      
Other liabilities   99,607       87,313       47,547      
Total liabilities   4,290,743       4,221,736       4,076,655      
Stockholders' equity   494,252       482,266       446,352      
Total liabilities and stockholders' equity $ 4,784,995      $4,704,002      $4,523,007      
                          
Net interest rate spread        2.79       2.88 %      2.76 %
Net interest-earning assets $ 1,618,259      $1,574,438      $1,504,587      
Net interest margin - tax-equivalent      35,752   3.26     36,816  3.40 %    34,237  3.26 %
Less: Tax-equivalent adjustment      (104)  (0.01)     (101) (0.01)     (139) (0.01) 
Net interest income    $ 35,648       $36,715       $34,098    
Net interest margin        3.25       3.39 %      3.25 %
                          

____________________________
(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)

                  
  Year Ended December 31,  
  2019 2018 
      Average     Average 
  Average   Yield/ Average   Yield/ 
  Balance Interest Cost Balance Interest Cost 
Interest-earning assets:                 
Loans, net (including loan fee income) (1) $ 3,410,773 $ 158,492   4.65 $ 3,167,933 $ 144,568   4.56 %
Securities (1)   823,280   21,874   2.66    910,726   23,936   2.63  
Deposits with banks   75,600   1,697   2.24    52,143   1,076   2.06  
Total interest-earning assets (1)   4,309,653   182,063   4.22    4,130,802   169,580   4.11  
Non-interest-earning assets:                 
Other assets   408,813        362,276      
Total assets $ 4,718,466      $ 4,493,078      
                  
Interest-bearing liabilities:                 
Savings $ 402,701 $ 3,596   0.89 $ 326,576 $ 1,261   0.39 
NOW   123,075   193   0.16    121,818   123   0.10  
MMDA   1,024,719   13,986   1.36    838,481   8,570   1.02  
Savings, NOW and MMDA   1,550,495   17,775   1.15    1,286,875   9,954   0.77  
Certificates of deposit of less than $100,000   60,428   1,129   1.87    59,516   790   1.33  
Certificates of deposit of $100,000 or more   150,638   3,156   2.10    122,621   2,129   1.74  
Total IPC deposits   1,761,561   22,060   1.25    1,469,012   12,873   0.88  
Brokered deposits   127,765   2,759   2.16    273,127   5,205   1.91  
Public funds   508,240   4,640   0.91    471,967   2,658   0.56  
Total public and brokered deposits   636,005   7,399   1.16    745,094   7,863   1.06  
Total deposits   2,397,566   29,459   1.23    2,214,106   20,736   0.94  
Federal funds purchased and repurchase agreements   41,077   767   1.87    69,604   1,200   1.72  
FHLB advances   245,283   4,573   1.86    324,653   5,729   1.76  
Subordinated debentures   78,845   4,539   5.76    78,706   4,539   5.77  
Total borrowings   365,205   9,879   2.71    472,963   11,468   2.42  
Total interest-bearing liabilities   2,762,771   39,338   1.42    2,687,069   32,204   1.20  
Non-interest-bearing liabilities:                 
Demand deposits   1,392,606        1,310,857      
Other liabilities   86,130        42,392      
Total liabilities   4,241,507        4,040,318      
Stockholders' equity   476,959        452,760      
Total liabilities and stockholders' equity $ 4,718,466      $ 4,493,078      
                  
Net interest rate spread        2.80        2.91 %
Net interest-earning assets $ 1,546,882      $ 1,443,733      
Net interest margin - tax-equivalent      142,725   3.31      137,376   3.33 %
Less: Tax-equivalent adjustment      (522)  (0.01)      (596)  (0.02) 
Net interest income    $ 142,203       $ 136,780    
Net interest margin        3.30        3.31 
                  

____________________________
(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 recovery and office relocation costs during the fourth quarter of 2018, 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.

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  Three Months Ended  Year Ended  
  December 31,  September 30, December 31, December 31,  December 31, 
  2019 2019 2018 2019 2018 
Return on average total assets - as reported  1.18 1.17 %1.22 % 1.10 0.87 %
Net securities losses  —       —  0.18  
Net fraud (recovery) loss  —    (0.05)  —  0.20  
Office relocation costs  —    0.07   —  0.02  
Income tax effect of adjustments above  —    (0.01)  —  (0.09) 
Adjusted return on average total assets (non-GAAP)  1.18  1.17  1.23   1.10  1.18  
            
Return on average stockholders' equity - as reported  11.40 11.44 %12.32 % 10.84 8.66 %
Net securities losses  —