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Press Release

Bridge Bancorp, Inc. Reports Second Quarter 2020 Results

Company Release - 7/28/2020 4:30 PM ET

BRIDGEHAMPTON, N.Y., July 28, 2020 (GLOBE NEWSWIRE) -- Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced second quarter results for 2020.

The Company's second quarter 2020 financial results included:

  • Net income for the 2020 second quarter of $10.7 million, or $0.54 per diluted share.
  • Adjusted pre-tax pre-provision net revenue was $20.9 million, an increase of $3.9 million over both the 2020 first quarter and 2019 second quarter.
  • Net interest income for the 2020 second quarter increased $4.9 million over the 2019 second quarter to $40.4 million, with a tax-equivalent net interest margin of 3.00%.
  • Total assets of $6.2 billion at June 30, 2020, 30% higher than June 30, 2019.
  • Loan growth of $1.2 billion, or 35%, compared to June 30, 2019, and $940.5 million, or 51% annualized, from December 31, 2019.
  • Loan and line of credit originations of $1.1 billion for the second quarter of 2020, inclusive of $950 million Paycheck Protection Program (“PPP”) loans.
  • Non-public, non-brokered deposit growth of $841.8 million, or 27%, compared to June 30, 2019, and $954.4 million, or 63% annualized, from December 31, 2019.
  • Non-performing assets of $7.7 million at June 30, 2020, $2.2 million higher than June 30, 2019 and $3.4 million higher than December 31, 2019. Allowance for credit losses coverage to total loans of 0.94% at June 30, 2020.
  • The provision of $4.5 million included approximately $3.5 million related to our estimate of the economic impact of the COVID-19 pandemic. Additionally, we recorded a $2.6 million charge related to our one loan held for sale.
  • All capital ratios remain strong. Declared a dividend of $0.24 during the quarter.

Reflecting on the second quarter results, Kevin O’Connor, President and CEO said, “The second quarter of 2020 was an unprecedented time for our country, our industry, our customers and our employees.  I am proud that our employees rallied to support our customers on several fronts. First, our branches remained open, while adopting measures to protect customers and employees alike. Second, in one capacity or another, the entire bank was involved with processing over 5,000 applications, resulting in almost $1 billion in Paycheck Protection Program loans for our existing customers and the one thousand new customers who came to us because of BNB’s reputation for superior customer service. This program also generated approximately $30 million in fees which will flow into income over the life of the loans. Another milestone event that occurred is our planned merger-of-equals with Dime Community.  We consider this a unique opportunity to capture incremental share in a market where we have low penetration by doing what BNB does best – acquiring and retaining business banking customers. This merger of complementary business models and geographies allows BNB and Dime Community to optimize best-in-class practices, consolidate vendor relationships to reduce expenses and expand our product offerings.”

Net Earnings and Returns
Net income in the 2020 second quarter was $10.7 million, or $0.54 per diluted share, which was comparable with the 2019 second quarter, driven primarily by higher net interest income, partially offset by lower non-interest income, higher provision for credit losses, and higher non-interest expense. Net income for the six months ended June 30, 2020 was $20.0 million, or $1.00 per diluted share, compared to $23.6 million, or $1.18 per diluted share, in 2019.

Returns on average assets and equity in the 2020 second quarter were 0.72% and 8.56%, respectively.  Return on average tangible common equity was 10.95% for the 2020 second quarter.

“Our reported net income of $0.54 per diluted share was impacted by a higher provision for credit losses primarily related to the COVID-19 pandemic, and a write-down of a loan previously classified as held for sale, which reduced earnings per share by approximately $0.13 and $0.10, respectively. These charges reduced returns on average assets, equity and tangible common equity by approximately 31 basis points, 371 basis points, and 474 basis points, respectively,” noted Mr. O’Connor. 

Net Interest Income
Interest income was $45.9 million in the 2020 second quarter, an increase of $1.2 million compared to the 2020 first quarter, primarily due to loan portfolio growth from the PPP program, partially offset by lower average yields in loans, securities and deposits with banks. Interest expense was $5.4 million in the 2020 second quarter, a decrease of $2.5 million compared to the 2020 first quarter, primarily due to a decrease in average cost of deposits, partially offset by an increase in average deposits and average borrowings.

The tax-equivalent net interest margin in the 2020 second quarter showed a year-over-year decline of 30 basis points to 3.00% in 2020 from 3.30% in 2019. The adjusted net interest margin, excluding PPP loans, was down 24 basis points to 3.06% in 2020.  Reported 2020 second quarter loan yields showed a year-over-year decrease of 94 basis points from 4.76% in 2019 to 3.82% in 2020, while yields excluding PPP loans decreased 70 basis points to 4.06% in 2020 from 4.76% in 2019.

            
  Three Months Ended  Change Compared To 
  June 30,  March 31, June 30, March 31, June 30, 
  2020 2020 2019 2020  2019  
Average yield on loans, tax-equivalent basis - as reported  3.824.35%4.76%(53)bp(94)bp
Adjusted average yield on loans (non-GAAP)  4.06 4.35 4.76 (29) (70) 
            
Net interest margin - as reported (1)  2.993.25%3.29%(26)bp(30)bp
Net interest margin, tax-equivalent basis (2)  3.00 3.26 3.30 (26) (30) 
Adjusted net interest margin (non-GAAP) (3)  3.06 3.26 3.30 (20) (24) 

___________________________

(1) Net interest margin represents net interest income divided by average interest-earning assets.
(2) Net interest margin, tax-equivalent basis represents net interest income on a tax-equivalent basis divided by average interest-earning assets.
(3) Adjusted net interest margin represents adjusted net interest income on a tax-equivalent basis, excluding PPP loans, divided by adjusted average interest-earning assets, excluding PPP loans.

Commenting on the margin Mr. O’Connor said, “The PPP loans and excess liquidity have had a negative impact on our net interest margin. The all-in yield on PPP loans, including amortization of fees and costs, was about 2.55% in Q2.  When the pandemic began, we thought it prudent to bolster our liquidity position.  However, the decline in economic activity during the shut-down resulted in more of our customers keeping more money in the bank. The subsequent excess liquidity had the effect of depressing the margin by approximately 20 basis points,” stated Mr. O’Connor.

Provision for Credit Losses
The provision for credit loss expense was $4.5 million for the 2020 second quarter, $1.0 million higher than the 2019 second quarter. The higher provision was primarily attributable to higher expected credit losses related to our estimate of the economic impact of the COVID-19 pandemic and an increase in specific reserves. The Company recognized net charge-offs of $0.3 million in the 2020 second quarter, compared to net charge-offs of $4.1 million in the 2019 second quarter, which included a $3.7 million charge-off related to one loan currently held for sale.

Non-Interest Income
Non-interest income was $2.3 million for the 2020 second quarter, which was $3.2 million lower compared to the 2019 second quarter, primarily attributable to a decrease in fair value of one loan held for sale, lower service charges and other fees, and lower gain on sale of SBA loans, partially offset by an increase in loan swap fees.

Non-Interest Expense
Non-interest expense for the 2020 second quarter of $24.4 million was $0.4 million higher than the 2019 second quarter. The increase in the second quarter was primarily due to higher salaries and benefits expense. Our operating expenses to average assets dropped by 35 basis points compared to the first quarter.

Income Tax Expense
Income tax expense was $3.1 million in the 2020 second quarter, an increase of $0.3 million compared to the 2019 second quarter. The Company estimates it will record income tax at an effective tax rate of approximately 22.7% for the remainder of 2020.

Balance Sheet
Total assets were $6.2 billion at June 30, 2020, $1.2 billion higher than December 31, 2019, and $1.4 billion higher than June 30, 2019. Total loans held for investment at June 30, 2020 of $4.6 billion reflects growth of $1.2 billion, or 35%, over June 30, 2019, inclusive of PPP loans totaling $950 million. Net deferred loan fees were $17.3 million at June 30, 2020, inclusive of $26.0 million remaining unamortized net loan fees related to PPP loans. Deposits totaled $5.1 billion at June 30, 2020, an increase of $1.2 billion, or 32%, compared to June 30, 2019. Demand deposits increased $778.5 million year-over-year to $2.2 billion at June 30, 2020, representing 43% of total deposits.

The allowance for credit losses was $43.4 million at June 30, 2020, $12.2 million higher than June 30, 2019. The allowance as a percentage of loans was 0.94% at June 30, 2020, compared to 0.91% at June 30, 2019. The PPP loans had the effect of decreasing the Company’s allowance as a percentage of loans by approximately 22 basis points at June 30, 2020.

Stockholders’ equity was $502.6 million at June 30, 2020, $27.4 million higher than June 30, 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 $25.47 at June 30, 2020, $1.51 higher than June 30, 2019. Tangible book value per share was $19.93 at June 30, 2020, $1.52 higher than June 30, 2019.

                
           Change Compared To
  June 30,  December 31, June 30, December 31, June 30,
(Dollars in thousands) 2020
 2019 2019 2019
 2019
Total assets $ 6,150,664  $4,921,520 $4,714,535 $1,229,144  $1,436,129 
Total stockholders' equity   502,621   497,154  475,205  5,467   27,416 
                
Loans held for investment               
Investor commercial real estate ("CRE") $ 1,064,623  $1,034,599 $910,892 $30,024  $153,731 
Owner-occupied CRE   528,118   531,088  525,329  (2,970)  2,789 
Construction and land   81,516   97,311  150,868  (15,795)  (69,352)
Commercial and industrial   675,989   679,444  675,168  (3,455)  821 
Paycheck Protection Program ("PPP")   949,662       949,662   949,662 
Total commercial   3,299,908   2,342,442  2,262,257  957,466   1,037,651 
                
Multi-family   844,066   812,174  631,146  31,892   212,920 
Residential real estate   469,183   493,144  503,354  (23,961)  (34,171)
Installment and consumer   24,953   24,836  25,825  117   (872)
Net deferred loan costs and fees   (17,282)  7,689  7,441  (24,971)  (24,723)
Total loans held for investment $ 4,620,828  $3,680,285 $3,430,023 $940,543  $1,190,805 
                
Deposits               
Total IPC deposits $ 3,996,590  $3,042,171 $3,154,801 $954,419  $841,789 
Brokered deposits   194,019   164,034  127,196  29,985   66,823 
Public deposits   889,810   608,442  554,579  281,368   335,231 
Total public and brokered deposits   1,083,829   772,476  681,775  311,353   402,054 
Total deposits $ 5,080,419  $3,814,647 $3,836,576 $1,265,772  $1,243,843 
                
Loan-to-deposit ratio  90.95  96.48% 89.40% (5.52)% 1.55 

Loan and Line of Credit Origination Information (unaudited)

                
  Three Months Ended  Six Months Ended
  June 30,  March 31, June 30, June 30,  June 30,
(Dollars in thousands) 2020 2020 2019 2020 2019
Investor CRE $ 46,060 $41,738 $60,855 $ 87,798 $74,830
Owner-occupied CRE   23,287  33,720  29,468   57,007  84,691
Commercial and industrial   65,620  75,796  76,405   141,416  196,546
PPP   949,729      —   949,729   
Multi-family   48,330  38,915  22,429   87,245  73,794
Residential real estate   3,654  8,969  9,366   12,623  17,525
Other   9,198  21,011  19,390   30,209  51,317
Total loan and line of credit originations $ 1,145,878 $220,149 $217,913 $ 1,366,027 $498,703

Asset Quality
Asset quality measures remained solid, as non-performing assets were $7.7 million, or 0.13% of total assets, at June 30, 2020, compared to $5.5 million, or 0.12% of total assets, at June 30, 2019. Non-performing loans were $7.7 million, or 0.17% of total loans at June 30, 2020, compared to $5.5 million, or 0.16% of total loans at June 30, 2019. The quarter-over-quarter increase in non-performing assets is primarily related to one C&I relationship which was previously restructured and subsequently moved into non-accrual in the current quarter. Loans 30 to 89 days past due increased $1.7 million to $5.1 million at June 30, 2020, compared to $3.4 million at June 30, 2019. The increase in 30 to 89 days past due loans compared to prior year is primarily comprised of several residential loans.

Regarding asset quality and the current environment, Mr. O’Connor stated, “As the crisis unfolded our customers applied for forbearance on certain loans.  We granted payment moratoriums on approximately 500 loans totaling $630 million.  At this time, approximately $400 million of these loans have reached the end of their three-month deferral period.  Of those loans, 54% have returned to making their agreed-on payments, 36% have requested an extension, and 10% are pending. Extensions are being granted on a case-by-case basis.”

Conference Call
The Company will host a conference call on Wednesday, July 29, 2020 at 10:00 AM (ET) to discuss the 2020 second quarter results. 

Investors who would like to join the conference call are encouraged to pre-register using the following link: http://dpregister.com/10145180. 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 Wednesday, August 12, 2020.

Call and replay information are as follows:

Call Date: Wednesday, July 29, 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: 10145180

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 $6.2 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.

Forward Looking Statements

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; expenses related to our proposed merger with Dime Community Bancshares, Inc., unexpected delays related to the merger, or our inability to obtain regulatory approvals or satisfy other closing conditions required to complete the merger; 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)

          
  June 30,  December 31, June 30,
  2020
 2019
 2019
Assets         
Cash and due from banks $ 67,633  $77,693  $71,292 
Interest-earning deposits with banks   422,148   39,501   87,349 
Total cash and cash equivalents   489,781   117,194   158,641 
Securities available for sale, at fair value   537,746   638,291   642,897 
Securities held to maturity   111,307   133,638   144,716 
Total securities   649,053   771,929   787,613 
Securities, restricted   28,987   32,879   24,104 
Loans held for sale   10,000   12,643   12,643 
Loans held for investment   4,620,828   3,680,285   3,430,023 
Allowance for credit losses   (43,401)  (32,786)  (31,171)
Loans held for investment, net   4,577,427   3,647,499   3,398,852 
Premises and equipment, net   34,495   34,062   34,006 
Operating lease right-of-use assets   40,434   43,450   37,619 
Goodwill and other intangible assets   109,248   109,627   109,975 
Accrued interest receivable and other assets   211,239   152,237   151,082 
Total assets $ 6,150,664  $4,921,520  $4,714,535 
          
Liabilities and stockholders' equity         
Demand deposits $ 2,101,950  $1,386,037  $1,322,625 
Savings and negotiable order of withdrawal ("NOW") deposits   495,421   438,902   613,431 
Money market deposit accounts ("MMDA")   1,202,125   1,012,322   1,002,768 
Certificates of deposit of less than $100,000   54,643   58,640   60,658 
Certificates of deposit of $100,000 or more   142,451   146,270   155,319 
Total individual, partnership and corporate ("IPC") deposits   3,996,590   3,042,171   3,154,801 
Brokered deposits   194,019   164,034   127,196 
Public funds - demand deposits   62,244   132,921   63,084 
Public funds - other deposits   827,566   475,521   491,495 
Total public and brokered deposits   1,083,829   772,476   681,775 
Total deposits   5,080,419   3,814,647   3,836,576 
Federal funds purchased and repurchase agreements   1,670   999   945 
Federal Home Loan Bank ("FHLB") advances   340,000   435,000   240,000 
Subordinated debentures, net   78,990   78,920   78,850 
Operating lease liabilities   43,131   45,977   40,263 
Other liabilities and accrued expenses   103,833   48,823   42,696 
Total liabilities   5,648,043   4,424,366   4,239,330 
Total stockholders' equity   502,621   497,154   475,205 
Total liabilities and stockholders' equity $ 6,150,664  $4,921,520  $4,714,535 

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

                
  Three Months Ended  Six Months Ended
  June 30,  March 31, June 30, June 30,  June 30,
  2020
 2020
 2019
 2020
 2019
Interest income $ 45,850  $44,602  $46,352  $ 90,452  $90,867 
Interest expense   5,418   7,952   10,835    13,370   21,027 
Net interest income   40,432   36,650   35,517    77,082   69,840 
Provision for credit losses   4,500   5,000   3,500    9,500   4,100 
Net interest income after provision for credit losses   35,932   31,650   32,017    67,582   65,740 
                
Non-interest income:               
Service charges and other fees   1,889   2,500   2,556    4,389   4,984 
Title fees   385   329   335    714   641 
Net securities (losses) gains   —   (15)  201    (15)  201 
Change in fair value of loans held for sale   (2,643)         (2,643)   
Gain on sale of SBA loans   469   371   844    840   1,061 
Bank owned life insurance   547   548   556    1,095   1,109 
Loan swap fees   1,320   1,231   528    2,551   1,643 
Other   285   253   479    538   1,078 
Total non-interest income   2,252   5,217   5,499    7,469   10,717 
                
Non-interest expense:               
Salaries and employee benefits   13,919   15,549   13,659    29,468   26,939 
Occupancy and equipment   3,520   3,499   3,560    7,019   7,091 
Amortization of other intangible assets   177   181   210    358   423 
Other   6,783   5,614   6,575    12,397   12,150 
Total non-interest expense   24,399   24,843   24,004    49,242   46,603 
                
Income before income taxes   13,785   12,024   13,512    25,809   29,854 
Income tax expense   3,129   2,676   2,859    5,805   6,274 
Net income $ 10,656  $9,348  $10,653  $ 20,004  $23,580 
                
                
                
Earnings Per Share (unaudited)               
(In thousands, except per share data) Three Months Ended  Six Months Ended
  June 30,  March 31, June 30, June 30,  June 30,
  2020
 2020
 2019
 2020
 2019
Net income $ 10,656  $9,348  $10,653  $ 20,004  $23,580 
Dividends paid on and earnings allocated to participating securities   (218)  (195)  (226)   (413)  (503)
Income attributable to common stock $ 10,438  $9,153  $10,427  $ 19,591  $23,077 
                
Weighted average common shares outstanding, including participating securities   19,861   19,946   19,965    19,904   19,946 
Weighted average participating securities   (409)  (414)  (428)   (411)  (427)
Weighted average common shares outstanding   19,452   19,532   19,537    19,493   19,519 
Basic earnings per common share $ 0.54  $0.47  $0.53  $ 1.01  $1.18 
                
Weighted average common shares outstanding   19,452   19,532   19,537    19,493   19,519 
Incremental shares from assumed conversions of options and restricted stock units   36   34   28    34   26 
Weighted average common and equivalent shares outstanding   19,488   19,566   19,565    19,527   19,545 
Diluted earnings per common share $ 0.54  $0.47  $0.53  $ 1.00  $1.18 

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

            
  Three Months Ended  Six Months Ended  
  June 30,  March 31, June 30, June 30,  June 30, 
  2020 2020 2019 2020 2019 
Selected Financial Data:           
Return on average total assets  0.720.76%0.90% 0.741.01%
Return on average stockholders' equity  8.56 7.50 9.06  8.03 10.22 
Return on average tangible common equity (1) (2)  10.95 9.59 11.82  10.27 13.38 
Adjusted return on average tangible common equity (1) (2)  11.10 9.74 12.01  10.42 13.57 
Net interest rate spread, tax-equivalent basis  2.72 2.86 2.76  2.78 2.76 
Net interest margin, tax-equivalent basis  3.00 3.26 3.30  3.12 3.29 
Adjusted net interest margin (1)  3.06 3.26 3.30  3.16 3.29 
Average interest-earning assets to average interest-bearing liabilities  169.70 156.79 153.61  163.58 153.48 
Efficiency ratio  57.16 59.34 58.52  58.24 57.85 
Adjusted efficiency ratio (1)  53.32 58.74 58.03  55.92 57.24 
Operating expense/average assets  1.66 2.01 2.03  1.82 2.00 
Adjusted operating expense/average assets (1)  1.65 1.99 2.01  1.80 1.98 

__________________________

(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.

           
  June 30,  December 31, June 30, 
  2020 2019 2019 
Selected Financial Data:          
Book value per share $ 25.47 $25.06 $23.96 
Tangible book value per share (1) $ 19.93 $19.54 $18.41 
Common shares outstanding   19,734  19,837  19,834 
           
Capital Ratios:          
Total capital to risk-weighted assets   13.2 13.1% 13.3%
Tier 1 capital to risk-weighted assets   10.2  10.2  10.3 
Common equity Tier 1 capital to risk-weighted assets   10.2  10.2  10.3 
Tier 1 capital to average assets   7.0  8.5  8.1 
Tangible common equity to tangible assets (1) (2)   6.5  8.1  7.9 
           
Capital Ratios - Bank Only:          
Total capital to risk-weighted assets   13.1 13.0% 13.2%
Tier 1 capital to risk-weighted assets   12.1  12.1  12.4 
Common equity Tier 1 capital to risk-weighted assets   12.1  12.1  12.4 
Tier 1 capital to average assets   8.4  10.1  9.7 
           
Asset Quality:          
Loans 30-89 days past due $ 5,080 $6,366 $3,382 
Loans 90 days past due and accruing $ — $343 $329 
Non-performing loans $ 7,731 $4,369 $5,509 
Non-performing assets $ 7,731 $4,369 $5,509 
Non-performing loans/total loans   0.17 0.12% 0.16%
Non-performing assets/total assets   0.13  0.09  0.12 
Allowance/non-performing loans   561.39  750.42  565.82 
Allowance/total loans   0.94  0.89  0.91 

_________________________

(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 June 30,  Three Months Ended March 31, Three Months Ended June 30, 
  2020
 2020
 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) $ 4,429,423 $ 42,044   3.82 $3,677,017 $39,810  4.35 %$3,373,601 $40,000  4.76 %
Securities (1)   647,218   3,796   2.36   763,894  4,628  2.44   860,031  5,940  2.77  
Deposits with banks   365,770   112   0.12   91,884  267  1.17   102,515  599  2.34  
Total interest-earning assets (1)   5,442,411   45,952   3.40   4,532,795  44,705  3.97   4,336,147  46,539  4.30  
Non-interest-earning assets:                         
Other assets   471,232       446,258       401,720      
Total assets $ 5,913,643      $4,979,053      $4,737,867      
                          
Interest-bearing liabilities:                         
Savings $ 317,346 $ 95   0.12 $303,834 $188  0.25 %$443,830 $1,231  1.11 %
NOW   131,650   26   0.08   131,931  46  0.14   124,329  48  0.15  
MMDA   1,151,830   1,135   0.40   1,049,707  2,409  0.92   1,012,419  3,840  1.52  
Savings, NOW and MMDA   1,600,826   1,256   0.32   1,485,472  2,643  0.72   1,580,578  5,119  1.30  
Certificates of deposit of less than $100,000   56,603   214   1.52   58,583  266  1.83   60,940  285  1.88  
Certificates of deposit of $100,000 or more   147,706   575   1.57   145,242  714  1.98   152,809  806  2.12  
Total IPC deposits   1,805,135   2,045   0.46   1,689,297  3,623  0.86   1,794,327  6,210  1.39  
Brokered deposits   210,393   454   0.87   166,523  692  1.67   134,720  771  2.30  
Public funds   769,815   1,060   0.55   673,232  1,391  0.83   546,432  1,383  1.02  
Total public and brokered deposits   980,208   1,514   0.62   839,755  2,083  1.00   681,152  2,154  1.27  
Total deposits   2,785,343   3,559   0.51   2,529,052  5,706  0.91   2,475,479  8,364  1.36  
Federal funds purchased and repurchase agreements   1,659   1   0.24   29,575  78  1.06   25,246  158  2.51  
FHLB advances   341,099   723   0.85   253,374  1,033  1.64   243,322  1,178  1.94  
Subordinated debentures   78,968   1,135   5.78   78,932  1,135  5.78   78,827  1,135  5.78  
Total borrowings   421,726   1,859   1.77   361,881  2,246  2.50   347,395  2,471  2.85  
Total interest-bearing liabilities   3,207,069   5,418   0.68   2,890,933  7,952  1.11   2,822,874  10,835  1.54  
Non-interest-bearing liabilities:                         
Demand deposits   2,061,371       1,473,962       1,365,279      
Other liabilities   144,541       112,582       78,278      
Total liabilities   5,412,981       4,477,477       4,266,431      
Stockholders' equity   500,662       501,576       471,436      
Total liabilities and stockholders' equity $ 5,913,643      $4,979,053      $4,737,867      
                          
Net interest rate spread        2.72       2.86 %      2.76 %
Net interest-earning assets $ 2,235,342      $1,641,862      $1,513,273      
Net interest margin - tax-equivalent      40,534   3.00     36,753  3.26 %    35,704  3.30 %
Less: Tax-equivalent adjustment      (102)  (0.01)     (103) (0.01)     (187) (0.01) 
Net interest income    $ 40,432       $36,650       $35,517    
Net interest margin        2.99       3.25 %      3.29 %
                          

____________________________

(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)

                  
  Six Months Ended June 30,  
  2020
 2019
 
      Average     Average 
  Average   Yield/ Average   Yield/ 
  Balance Interest Cost Balance Interest Cost 
Interest-earning assets:                 
Loans, net (including loan fee income) (1) $ 4,053,220 $ 81,854   4.06 $3,324,985 $77,659  4.71 %
Securities (1)   705,555   8,424   2.40   872,861  12,382  2.86  
Deposits with banks   228,827   379   0.33   97,128  1,143  2.37  
Total interest-earning assets (1)   4,987,602   90,657   3.66   4,294,974  91,184  4.28  
Non-interest-earning assets:                 
Other assets   458,746       397,027      
Total assets $ 5,446,348      $4,692,001      
                  
Interest-bearing liabilities:                 
Savings $ 310,590 $ 283   0.18 $421,290 $2,136  1.02 %
NOW   131,791   72   0.11   115,213  89  0.16  
MMDA   1,100,768   3,544   0.65   998,259  7,426  1.50  
Savings, NOW and MMDA   1,543,149   3,899   0.51   1,534,762  9,651  1.27  
Certificates of deposit of less than $100,000   57,593   480   1.68   61,128  546  1.80  
Certificates of deposit of $100,000 or more   146,474   1,289   1.77   151,463  1,538  2.05  
Total IPC deposits   1,747,216   5,668   0.65   1,747,353  11,735  1.35  
Brokered deposits   188,458   1,146   1.22   171,858  1,981  2.32  
Public funds   721,523   2,451   0.68   540,533  2,562  0.96  
Total public and brokered deposits   909,981   3,597   0.79   712,391  4,543  1.29  
Total deposits   2,657,197   9,265   0.70   2,459,744  16,278  1.33  
Federal funds purchased and repurchase agreements   15,617   79   1.02   16,517  203  2.48  
FHLB advances   297,236   1,756   1.19   243,306  2,276  1.89  
Subordinated debentures   78,950   2,270   5.78   78,810  2,270  5.81  
Total borrowings   391,803   4,105   2.11   338,633  4,749  2.83  
Total interest-bearing liabilities   3,049,000   13,370   0.88   2,798,377  21,027  1.52  
Non-interest-bearing liabilities:                 
Demand deposits   1,767,666       1,349,476      
Other liabilities   128,563       78,677