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Press Release

Bridge Bancorp, Inc. Reports First Quarter 2020 Results

Company Release - 4/29/2020 5:08 PM ET

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

The Company's first quarter 2020 financial results included:

  • Net income for the 2020 first quarter of $9.3 million, or $0.47 per diluted share.
  • Net interest income for the 2020 first quarter increased $2.3 million over the 2019 first quarter to $36.7 million, with a tax-equivalent net interest margin of 3.26%.
  • Total assets of $5.1 billion at March 31, 2020, 8% higher than March 31, 2019.
  • Loan growth of $371 million, or 11%, compared to March 31, 2019, and $82 million, or 9% annualized, from December 31, 2019.
  • Loan and line of credit originations of $220 million for the first quarter of 2020.
  • Non-public, non-brokered deposit growth of $141 million, or 5%, compared to March 31, 2019, and $74 million, or 10% annualized, from December 31, 2019.
  • Non-performing assets of $4.6 million at March 31, 2020, $1.4 million higher than March 31, 2019 and $0.2 million higher than December 31, 2019. Allowance for credit losses coverage to total loans of 1.04% at March 31, 2020.
  • The Company adopted CECL on January 1, 2020, which resulted in a charge to retained earnings and reduction to stockholders’ equity of $1.5 million.
  • The provision of $5.0 million included approximately $4.0 million related to our initial estimate of the economic impact of the COVID-19 pandemic.
  • Purchased 179,620 shares of the Company’s common stock at a cost of $4.6 million.
  • All capital ratios remain strong. Declared a dividend of $0.24 during the quarter.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                
           Change Compared To
  March 31,  December 31, March 31, December 31, March 31,
(Dollars in thousands) 2020 2019 2019 2019
 2019
Total assets $ 5,060,872 $4,921,520 $4,675,209 $139,352  $385,663 
Total stockholders' equity   493,253  497,154  465,003  (3,901)  28,250 
                
Loans held for investment               
Investor commercial real estate ("CRE") $ 1,053,901 $1,034,599 $859,797 $19,302  $194,104 
Owner-occupied CRE   529,877  531,088  542,836  (1,211)  (12,959)
Construction and land   100,643  97,311  147,116  3,332   (46,473)
Commercial and industrial   758,683  679,444  671,897  79,239   86,786 
Total commercial   2,443,104  2,342,442  2,221,646  100,662   221,458 
                
Multi-family   800,556  812,174  624,114  (11,618)  176,442 
Residential real estate   485,492  493,144  515,173  (7,652)  (29,681)
Installment and consumer   25,051  24,836  22,781  215   2,270 
Net deferred loan costs and fees   7,927  7,689  7,390  238   537 
Total loans held for investment $ 3,762,130 $3,680,285 $3,391,104 $81,845  $371,026 
                
Deposits               
Total IPC deposits $ 3,115,746 $3,042,171 $2,974,282 $73,575  $141,464 
Brokered deposits   201,566  164,034  166,696  37,532   34,870 
Public deposits   738,423  608,442  584,486  129,981   153,937 
Total public and brokered deposits   939,989  772,476  751,182  167,513   188,807 
Total deposits $ 4,055,735 $3,814,647 $3,725,464 $241,088  $330,271 


Loan and Line of Credit Origination Information (unaudited)

          
  Three Months Ended
  March 31,  December 31, March 31,
(Dollars in thousands) 2020 2019 2019
Investor CRE $ 41,738 $68,562 $13,975
Owner-occupied CRE   33,720  20,221  51,365
Commercial and industrial   75,796  79,404  55,223
Multi-family   38,915  175,906  28,216
Residential real estate   8,969  9,228  8,159
Other   21,011  18,618  13,967
Total loan and line of credit originations $ 220,149 $371,939 $170,905
          

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

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

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

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

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

Call and replay information are as follows:

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

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

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

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

Please see the attached tables for selected financial information.

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

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


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

          
  March 31,  December 31, March 31,
  2020
 2019
 2019
Assets         
Cash and due from banks $ 61,352  $77,693  $68,773 
Interest-earning deposits with banks   172,830   39,501   31,684 
Total cash and cash equivalents   234,182   117,194   100,457 
Securities available for sale, at fair value   553,278   638,291   707,451 
Securities held to maturity   124,231   133,638   149,512 
Total securities   677,509   771,929   856,963 
Securities, restricted   26,354   32,879   28,068 
Loans held for sale   12,643   12,643    
Loans held for investment   3,762,130   3,680,285   3,391,104 
Allowance for credit losses   (39,215)  (32,786)  (31,784)
Loans held for investment, net   3,722,915   3,647,499   3,359,320 
Premises and equipment, net   34,521   34,062   34,478 
Operating lease right-of-use assets   41,939   43,450   37,621 
Goodwill and other intangible assets   109,422   109,627   110,100 
Other real estate owned   —      175 
Accrued interest receivable and other assets   201,387   152,237   148,027 
Total assets $ 5,060,872  $4,921,520  $4,675,209 
          
Liabilities and stockholders' equity         
Demand deposits $ 1,421,743  $1,386,037  $1,258,544 
Savings and negotiable order of withdrawal ("NOW") deposits   421,212   438,902   513,971 
Money market deposit accounts ("MMDA")   1,074,310   1,012,322   993,920 
Certificates of deposit of less than $100,000   58,820   58,640   61,240 
Certificates of deposit of $100,000 or more   139,661   146,270   146,607 
Total individual, partnership and corporate ("IPC") deposits   3,115,746   3,042,171   2,974,282 
Brokered deposits   201,566   164,034   166,696 
Public funds - demand deposits   59,809   132,921   55,403 
Public funds - other deposits   678,614   475,521   529,083 
Total public and brokered deposits   939,989   772,476   751,182 
Total deposits   4,055,735   3,814,647   3,725,464 
Federal funds purchased and repurchase agreements   1,195   999   721 
Federal Home Loan Bank ("FHLB") advances   290,000   435,000   330,217 
Subordinated debentures, net   78,955   78,920   78,815 
Operating lease liabilities   44,571   45,977   40,454 
Other liabilities and accrued expenses   97,163   48,823   34,535 
Total liabilities   4,567,619   4,424,366   4,210,206 
Total stockholders' equity   493,253   497,154   465,003 
Total liabilities and stockholders' equity $ 5,060,872  $4,921,520  $4,675,209 


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

          
  Three Months Ended
  March 31,  December 31, March 31,
  2020
 2019
 2019
Interest income $ 44,602  $44,320  $44,515 
Interest expense   7,952   8,672   10,192 
Net interest income   36,650   35,648   34,323 
Provision for credit losses   5,000   600   600 
Net interest income after provision for credit losses   31,650   35,048   33,723 
          
Non-interest income:         
Service charges and other fees   2,500   2,487   2,428 
Title fees   329   571   306 
Net securities losses   (15)      
Gain on sale of SBA loans   371   322   217 
Bank owned life insurance   548   560   553 
Loan swap fees   1,231   4,260   1,115 
Other   253   226   599 
Total non-interest income   5,217   8,426   5,218 
          
Non-interest expense:         
Salaries and employee benefits   15,549   15,011   13,280 
Occupancy and equipment   3,499   3,791   3,531 
Amortization of other intangible assets   181   182   213 
Other   5,614   6,348   5,575 
Total non-interest expense   24,843   25,332   22,599 
          
Income before income taxes   12,024   18,142   16,342 
Income tax expense   2,676   3,934   3,415 
Net income $ 9,348  $14,208  $12,927 
          
          
          
Earnings Per Share (unaudited)         
(In thousands, except per share data) Three Months Ended
  March 31,  December 31, March 31,
  2020
 2019
 2019
Net income $ 9,348  $14,208  $12,927 
Dividends paid on and earnings allocated to participating securities   (195)  (299)  (277)
Income attributable to common stock $ 9,153  $13,909  $12,650 
          
Weighted average common shares outstanding, including participating securities   19,946   19,957   19,926 
Weighted average participating securities   (414)  (419)  (426)
Weighted average common shares outstanding   19,532   19,538   19,500 
Basic earnings per common share $ 0.47  $0.71  $0.65 
          
Weighted average common shares outstanding   19,532   19,538   19,500 
Incremental shares from assumed conversions of options and restricted stock units   34   40   26 
Weighted average common and equivalent shares outstanding   19,566   19,578   19,526 
Diluted earnings per common share $ 0.47  $0.71  $0.65 


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

        
  Three Months Ended  
  March 31,  December 31, March 31, 
  2020 2019 2019 
Selected Financial Data:       
Return on average total assets  0.761.18%1.13%
Return on average stockholders' equity  7.50 11.40 11.41 
Return on average tangible common equity (1) (2)  9.59 14.66 15.01 
Adjusted return on average tangible common equity (1) (2)  9.74 14.81 15.21 
Net interest margin, tax-equivalent basis  3.26 3.26 3.29 
Efficiency ratio  59.34 57.48 57.15 
Adjusted efficiency ratio (1)  58.74 56.93 56.43 
Operating expense/average assets  2.01 2.10 1.97 
Adjusted operating expense/average assets (1)  1.99 2.09 1.95 

_______________________________
(1) See reconciliation of this non-GAAP financial measure provided elsewhere herein.
(2) Average tangible common equity represents a non-GAAP financial measure calculated as average total stockholders' equity less average goodwill and intangible assets.

           
  March 31,  December 31, March 31, 
  2020 2019 2019 
Selected Financial Data:          
Book value per share $ 25.01 $25.06 $23.43 
Tangible book value per share (1) $ 19.46 $19.54 $17.88 
Common shares outstanding   19,722  19,837  19,848 
           
Capital Ratios:          
Total capital to risk-weighted assets   12.9 13.1% 13.3%
Tier 1 capital to risk-weighted assets   10.0  10.2  10.2 
Common equity Tier 1 capital to risk-weighted assets   10.0  10.2  10.2 
Tier 1 capital to average assets   8.2  8.5  8.1 
Tangible common equity to tangible assets (1) (2)   7.8  8.1  7.8 
Tier 1 capital to average assets (Bank)   9.7  10.1  9.8 
           
Asset Quality:          
Loans 30-89 days past due $ 12,941 $6,366 $17,937 
Loans 90 days past due and accruing $ 343 $343 $318 
Non-performing loans $ 4,609 $4,369 $3,071 
Other real estate owned   —    175 
Non-performing assets $ 4,609 $4,369 $3,246 
Non-performing loans/total loans   0.12 0.12% 0.09%
Non-performing assets/total assets   0.09  0.09  0.07 
Allowance/non-performing loans   850.84  750.42  1,034.97 
Allowance/total loans   1.04  0.89  0.94 

_______________________________
(1) Tangible common equity represents a non-GAAP financial measure calculated as total stockholders' equity less goodwill and intangible assets.
(2) Tangible assets represent a non-GAAP financial measure calculated as total assets less goodwill and intangible assets.


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

                          
  Three Months Ended March 31,  Three Months Ended December 31, Three Months Ended March 31, 
  2020
 2019
 2019
 
      Average     Average     Average 
  Average   Yield/ Average   Yield/ Average   Yield/ 
  Balance Interest Cost Balance Interest Cost Balance Interest Cost 
Interest-earning assets:                         
Loans, net (including loan fee income) (1) $ 3,677,017 $ 39,810   4.35 $3,547,865 $39,780  4.45 %$3,275,828 $37,659  4.66 %
Securities (1)   763,894   4,628   2.44   761,628  4,432  2.31   885,834  6,442  2.95  
Deposits with banks   91,884   267   1.17   46,994  212  1.79   91,682  544  2.41  
Total interest-earning assets (1)   4,532,795   44,705   3.97   4,356,487  44,424  4.05   4,253,344  44,645  4.26  
Non-interest-earning assets:                         
Other assets   446,258       428,508       392,283      
Total assets $ 4,979,053      $4,784,995      $4,645,627      
                          
Interest-bearing liabilities:                         
Savings $ 303,834 $ 188   0.25 $335,743 $377  0.45 %$398,499 $905  0.92 %
NOW   131,931   46   0.14   136,562  53  0.15   105,996  41  0.16  
MMDA   1,049,707   2,409   0.92   1,067,493  3,108  1.16   983,942  3,586  1.48  
Savings, NOW and MMDA   1,485,472   2,643   0.72   1,539,798  3,538  0.91   1,488,437  4,532  1.23  
Certificates of deposit of less than $100,000   58,583   266   1.83   59,337  284  1.90   61,317  261  1.73  
Certificates of deposit of $100,000 or more   145,242   714   1.98   147,557  774  2.08   150,102  732  1.98  
Total IPC deposits   1,689,297   3,623   0.86   1,746,692  4,596  1.04   1,699,856  5,525  1.32  
Brokered deposits   166,523   692   1.67   93,372  391  1.66   209,409  1,210  2.34  
Public funds   673,232   1,391   0.83   452,509  939  0.82   534,568  1,179  0.89  
Total public and brokered deposits   839,755   2,083   1.00   545,881  1,330  0.97   743,977  2,389  1.30  
Total deposits   2,529,052   5,706   0.91   2,292,573  5,926  1.03   2,443,833  7,914  1.31  
Federal funds purchased and repurchase agreements   29,575   78   1.06   116,312  494  1.69   7,691  45  2.37  
FHLB advances   253,374   1,033   1.64   250,446  1,118  1.77   243,290  1,098  1.83  
Subordinated debentures   78,932   1,135   5.78   78,897  1,134  5.70   78,793  1,135  5.84  
Total borrowings   361,881   2,246   2.50   445,655  2,746  2.44   329,774  2,278  2.80  
Total interest-bearing liabilities   2,890,933   7,952   1.11   2,738,228  8,672  1.26   2,773,607  10,192  1.49  
Non-interest-bearing liabilities:                         
Demand deposits   1,473,962       1,452,908       1,333,498      
Other liabilities   112,582       99,607       79,083      
Total liabilities   4,477,477       4,290,743       4,186,188      
Stockholders' equity   501,576       494,252       459,439      
Total liabilities and stockholders' equity $ 4,979,053      $4,784,995      $4,645,627      
                          
Net interest rate spread        2.86       2.79 %      2.77 %
Net interest-earning assets $ 1,641,862      $1,618,259      $1,479,737      
Net interest margin - tax-equivalent      36,753   3.26     35,752  3.26 %    34,453  3.29 %
Less: Tax-equivalent adjustment      (103)  (0.01)     (104) (0.01)     (130) (0.02) 
Net interest income    $ 36,650       $35,648       $34,323    
Net interest margin        3.25       3.25 %      3.27 %
                          

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


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures (unaudited)
Reconciliation of as reported (GAAP) and non-GAAP financial measures

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

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

        
  Three Months Ended  
  March 31,  December 31, March 31, 
  2020
 2019
 2019
 
Return on average tangible common equity - as reported  9.59 14.66 %15.01 %
Amortization of other intangible assets  0.19  0.19  0.25  
Income tax effect of adjustments above  (0.04) (0.04) (0.05) 
Adjusted return on average tangible common equity (non-GAAP)  9.74  14.81  15.21  

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

           
  Three Months Ended  
  March 31,  December 31,  March 31,  
(Dollars in thousands, except per share amounts) 2020  2019  2019  
Efficiency ratio - as reported   59.34   57.48   57.15 
Non-interest expense - as reported $ 24,843  $ 25,332  $ 22,599  
Less: Amortization of intangible assets   (181)   (182)   (213) 
Adjusted non-interest expense (non-GAAP) $ 24,662  $ 25,150  $ 22,386  
Net interest income - as reported $ 36,650  $ 35,648  $ 34,323  
Tax-equivalent adjustment   103    104    130  
Net interest income, tax-equivalent basis $ 36,753  $ 35,752  $ 34,453  
Non-interest income - as reported $ 5,217  $ 8,426  $ 5,218  
Less: Net securities losses   15    —    —  
Adjusted non-interest income (non-GAAP) $ 5,232  $ 8,426  $ 5,218  
Adjusted total revenues for adjusted efficiency ratio (non-GAAP) $ 41,985  $ 44,178  $ 39,671  
Adjusted efficiency ratio (non-GAAP) (1)   58.74   56.93   56.43 

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


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

        
  Three Months Ended  
  March 31,  December 31, March 31, 
  2020
 2019
 2019
 
Operating expense as a % of average assets - as reported  2.01 2.10 %1.97 %
Amortization of other intangible assets  (0.02) (0.01) (0.02) 
Adjusted operating expense as a % of average assets (non-GAAP)  1.99  2.09  1.95  


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures (unaudited)

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

           
  March 31,  December 31,  March 31,  
(Dollars in thousands) 2020
 2019  2019  
Total assets - as reported $ 5,060,872  $ 4,921,520  $ 4,675,209  
Less: Goodwill and other intangible assets - as reported   (109,422)   (109,627)   (110,100) 
Tangible assets (non-GAAP) $ 4,951,450  $ 4,811,893  $ 4,565,109  
           
Total stockholders' equity - as reported $ 493,253  $ 497,154  $ 465,003  
Less: Goodwill and other intangible assets - as reported   (109,422)   (109,627)   (110,100) 
Tangible common equity (non-GAAP) $ 383,831  $ 387,527  $ 354,903  
           
Tangible common equity to tangible assets (non-GAAP) (1)   7.8   8.1   7.8 %

_______________________________
(1) Calculated by dividing tangible common equity by tangible assets.

Contact: John M. McCaffery 
 Executive Vice President 
 Chief Financial Officer 
 (631) 537-1001, ext. 7290 

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Source: Bridge Bancorp, Inc.

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