EX-99.1 2 bdge-20191024ex991f4d313.htm EX-99.1 bdge_Ex99_1

Exhibit 99.1

 

Press Release

FOR IMMEDIATE RELEASE

 

 

Contact:

John M. McCaffery

Picture 6

 

Executive Vice President

 

Chief Financial Officer

 

(631) 537-1001, ext. 7290

 

BRIDGE BANCORP,  INC. REPORTS THIRD QUARTER 2019 RESULTS WITH EARNINGS PER SHARE OF $0.70 AND RECORD NET INCOME OF $13.9 MILLION

 

 

(Bridgehampton, NY – October  24, 2019)  Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced third quarter results for 2019.

 

The Company's third quarter 2019 financial results included:

 

·

Net income for the 2019 third quarter of $13.9 million, or $0.70 per diluted share, compared to $6.5 million, or $0.33 per diluted share for the 2018 third quarter, inclusive of pre-tax charge of $9.5 million, or $0.37 per diluted share after tax, related to the fraudulent conduct of a business customer through its deposit accounts at BNB in the 2018 period.

·

Net interest income for the 2019 third quarter increased $1.2 million over the 2019 second quarter to $36.7 million.

·

Tax-equivalent net interest margin for the 2019 third quarter increased 10 basis points over the 2019 second quarter to 3.40%.

·

Total assets of $4.7 billion at September 30, 2019,  6% higher than September 30, 2018.

·

Loan growth of $311 million, or 10%,  compared to September 30, 2018, and $233 million, or 9% annualized, from December 31, 2018.

·

Non-public, non-brokered deposit growth of $306 million, or 11%, compared to September 30, 2018, and $195 million, or 9% annualized, from December 31, 2018.

·

Non-performing assets of $4.2 million at September 30, 2019, $2.1 million higher than September 30, 2018 and $1.2 million higher than December 31, 2018. Loan loss reserve coverage to total loans of 0.92% at September 30, 2019.

·

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

 

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

 

Net Earnings and Returns

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

 

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

 

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

 

 

Net Interest Income

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

 

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

 

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

 

Provision for Loan Losses

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

 

Non-Interest Income

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

 

Non-Interest Expense

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

 

Income Tax Expense

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

 

Balance Sheet

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

 

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change Compared To

 

    

September 30, 

    

December 31, 

    

September 30, 

    

December 31,

    

September 30, 

(Dollars in thousands)

 

2019

 

2018

 

2018

 

2018

 

2018

Total assets

 

$

4,736,021

 

$

4,700,744

 

$

4,448,757

 

$

35,277

 

$

287,264

Total stockholders' equity

 

 

486,403

 

 

453,830

 

 

439,985

 

 

32,573

 

 

46,418

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor commercial real estate ("CRE")

 

$

990,324

 

$

863,158

 

$

850,242

 

$

127,166

 

$

140,082

Multi-family ("MF")

 

 

673,909

 

 

585,827

 

 

579,827

 

 

88,082

 

 

94,082

Construction and land ("C&L")

 

 

116,463

 

 

123,393

 

 

118,137

 

 

(6,930)

 

 

(1,674)

Total investor CRE, MF, and C&L

 

 

1,780,696

 

 

1,572,378

 

 

1,548,206

 

 

208,318

 

 

232,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial ("C&I")

 

 

667,949

 

 

645,724

 

 

608,723

 

 

22,225

 

 

59,226

Owner-occupied CRE

 

 

529,483

 

 

510,398

 

 

498,327

 

 

19,085

 

 

31,156

Total C&I and owner-occupied CRE

 

 

1,197,432

 

 

1,156,122

 

 

1,107,050

 

 

41,310

 

 

90,382

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

497,842

 

 

519,763

 

 

516,995

 

 

(21,921)

 

 

(19,153)

Installment and consumer

 

 

24,998

 

 

20,509

 

 

19,157

 

 

4,489

 

 

5,841

Net deferred loan costs and fees

 

 

7,364

 

 

7,039

 

 

6,019

 

 

325

 

 

1,345

Total loans held for investment

 

$

3,508,332

 

$

3,275,811

 

$

3,197,427

 

$

232,521

 

$

310,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total IPC deposits

 

$

3,159,772

 

$

2,965,007

 

$

2,854,030

 

$

194,765

 

$

305,742

Brokered deposits

 

 

65,598

 

 

255,408

 

 

281,241

 

 

(189,810)

 

 

(215,643)

Public deposits

 

 

517,913

 

 

665,978

 

 

483,871

 

 

(148,065)

 

 

34,042

Total public and brokered deposits

 

 

583,511

 

 

921,386

 

 

765,112

 

 

(337,875)

 

 

(181,601)

Total deposits

 

$

3,743,283

 

$

3,886,393

 

$

3,619,142

 

$

(143,110)

 

$

124,141

 

Loan and Line of Credit Origination Information (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

    

September 30, 

    

June 30, 

    

September 30, 

    

September 30, 

    

September 30, 

(Dollars in thousands)

 

2019

 

2019

 

2018

 

2019

 

2018

Investor CRE

 

$

100,120

 

$

60,855

 

$

17,353

 

$

174,950

 

$

93,971

Multi-family

 

 

48,160

 

 

22,429

 

 

17,120

 

 

121,954

 

 

40,520

Owner-occupied CRE

 

 

12,973

 

 

29,468

 

 

21,280

 

 

97,664

 

 

59,073

Commercial and industrial

 

 

28,437

 

 

36,977

 

 

13,828

 

 

93,630

 

 

67,053

Residential real estate

 

 

8,764

 

 

9,366

 

 

8,318

 

 

26,289

 

 

83,344

Other

 

 

70

 

 

6,091

 

 

964

 

 

20,128

 

 

3,875

Total loan originations

 

$

198,524

 

$

165,186

 

$

78,863

 

$

534,615

 

$

347,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total line of credit originations

 

$

52,513

 

$

52,727

 

$

49,704

 

$

215,125

 

$

209,118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Asset Quality

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

 

Conference Call

The Company will host a conference call on Friday, October  25, 2019 at 10:00 AM (ET) to discuss the 2019 third quarter results. Investors who would like to join the conference call are encouraged to pre-register using the following link:  http://dpregister.com/10134567. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. Telephonic replay will be available through the Company’s website beginning approximately one hour after the conclusion of the call through Friday,  November 8, 2019.

 

Call and replay information are as follows:

Call Date: Friday, October  25, 2019
Call Time: 10:00 AM (ET)
Domestic Call Dial In:  1-844-746-0738
International Call Dial In:  1-412-317-6016

Replay Domestic Dial In:  1-877-344-7529
Replay International Dial In:  1-412-317-0088
Access Code: 10134567

About Bridge Bancorp, Inc.

Bridge Bancorp, Inc. is a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, BNB  Bank. Established in 1910, BNB, with assets of approximately $4.7 billion, operates 40 branch locations serving Long Island and the greater New York metropolitan area. Through its branch network and its electronic delivery channels, BNB provides deposit and loan products and financial services to local businesses, consumers and municipalities. Title insurance services are offered through BNB's wholly-owned subsidiary, Bridge Abstract. Bridge Financial Services, Inc., a wholly-owned subsidiary of BNB, offers financial planning and investment consultation.  For more information visit www.bnbbank.com.

 

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

 

Please see the attached tables for selected financial information.

 

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

 

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

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Condition (unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

    

September 30, 

    

December 31, 

    

September 30, 

 

 

2019

 

2018

 

2018

Assets

 

 

  

 

 

  

 

 

  

Cash and due from banks

 

$

87,004

 

$

142,145

 

$

63,687

Interest-earning deposits with banks

 

 

44,214

 

 

153,223

 

 

61,414

Total cash and cash equivalents

 

 

131,218

 

 

295,368

 

 

125,101

Securities available for sale, at fair value

 

 

610,706

 

 

680,886

 

 

661,862

Securities held to maturity

 

 

139,729

 

 

160,163

 

 

164,438

Total securities

 

 

750,435

 

 

841,049

 

 

826,300

Securities, restricted

 

 

28,469

 

 

24,028

 

 

25,162

Loans held for sale

 

 

12,643

 

 

 —

 

 

1,619

Loans held for investment

 

 

3,508,332

 

 

3,275,811

 

 

3,197,427

Allowance for loan losses

 

 

(32,173)

 

 

(31,418)

 

 

(31,869)

Loans held for investment, net

 

 

3,476,159

 

 

3,244,393

 

 

3,165,558

Premises and equipment, net

 

 

33,544

 

 

35,008

 

 

35,893

Operating lease right-of-use assets (1)

 

 

36,356

 

 

 —

 

 

 —

Goodwill and other intangible assets

 

 

109,840

 

 

110,324

 

 

110,667

Other real estate owned

 

 

 —

 

 

175

 

 

175

Accrued interest receivable and other assets

 

 

157,357

 

 

150,399

 

 

158,282

Total assets

 

$

4,736,021

 

$

4,700,744

 

$

4,448,757

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

  

 

 

  

 

 

  

Demand deposits

 

$

1,379,803

 

$

1,275,664

 

$

1,286,673

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

 

 

506,476

 

 

496,881

 

 

468,242

Money market deposit accounts ("MMDA")

 

 

1,063,848

 

 

975,531

 

 

883,386

Certificates of deposit of less than $100,000

 

 

59,913

 

 

61,827

 

 

61,548

Certificates of deposit of $100,000 or more

 

 

149,732

 

 

155,104

 

 

154,181

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

 

 

3,159,772

 

 

2,965,007

 

 

2,854,030

Brokered deposits

 

 

65,598

 

 

255,408

 

 

281,241

Public funds - demand deposits

 

 

45,036

 

 

172,941

 

 

46,119

Public funds - other deposits

 

 

472,877

 

 

493,037

 

 

437,752

Total public and brokered deposits

 

 

583,511

 

 

921,386

 

 

765,112

Total deposits

 

 

3,743,283

 

 

3,886,393

 

 

3,619,142

Federal funds purchased and repurchase agreements

 

 

956

 

 

539

 

 

816

Federal Home Loan Bank ("FHLB") advances

 

 

337,000

 

 

240,433

 

 

265,648

Subordinated debentures, net

 

 

78,885

 

 

78,781

 

 

78,746

Operating lease liabilities (1)

 

 

39,064

 

 

 —

 

 

 —

Other liabilities and accrued expenses

 

 

50,430

 

 

40,768

 

 

44,420

Total liabilities

 

 

4,249,618

 

 

4,246,914

 

 

4,008,772

Total stockholders' equity

 

 

486,403

 

 

453,830

 

 

439,985

Total liabilities and stockholders' equity

 

$

4,736,021

 

$

4,700,744

 

$

4,448,757

(1)

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

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income (unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 

 

June 30, 

 

September 30, 

 

September 30, 

 

September 30, 

 

    

2019

    

2019

    

2018

    

2019

    

2018

Interest income

 

$

46,354

 

$

46,352

 

$

42,589

 

$

137,221

 

$

125,504

Interest expense

 

 

9,639

 

 

10,835

 

 

8,375

 

 

30,666

 

 

22,822

Net interest income

 

 

36,715

 

 

35,517

 

 

34,214

 

 

106,555

 

 

102,682

Provision for loan losses

 

 

1,000

 

 

3,500

 

 

200

 

 

5,100

 

 

1,400

Net interest income after provision for loan losses

 

 

35,715

 

 

32,017

 

 

34,014

 

 

101,455

 

 

101,282

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Service charges and other fees

 

 

2,588

 

 

2,556

 

 

2,549

 

 

7,572

 

 

7,274

Title fees

 

 

508

 

 

335

 

 

384

 

 

1,149

 

 

1,339

Net securities gains (losses)

 

 

 —

 

 

201

 

 

 —

 

 

201

 

 

(7,921)

Gain on sale of SBA loans

 

 

601

 

 

844

 

 

524

 

 

1,662

 

 

1,586

Bank owned life insurance

 

 

561

 

 

556

 

 

557

 

 

1,670

 

 

1,658

Loan swap fees

 

 

1,557

 

 

528

 

 

404

 

 

3,200

 

 

713

Other

 

 

429

 

 

479

 

 

500

 

 

1,507

 

 

1,804

Total non-interest income

 

 

6,244

 

 

5,499

 

 

4,918

 

 

16,961

 

 

6,453

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Salaries and employee benefits

 

 

14,294

 

 

13,659

 

 

12,134

 

 

41,233

 

 

38,001

Occupancy and equipment

 

 

3,490

 

 

3,560

 

 

3,325

 

 

10,581

 

 

9,773

Fraud loss

 

 

 —

 

 

 —

 

 

9,500

 

 

 —

 

 

9,500

Amortization of other intangible assets

 

 

182

 

 

210

 

 

215

 

 

605

 

 

703

Other

 

 

6,238

 

 

6,575

 

 

5,830

 

 

18,388

 

 

18,132

Total non-interest expense

 

 

24,204

 

 

24,004

 

 

31,004

 

 

70,807

 

 

76,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

17,755

 

 

13,512

 

 

7,928

 

 

47,609

 

 

31,626

Income tax expense

 

 

3,852

 

 

2,859

 

 

1,381

 

 

10,126

 

 

6,263

Net income

 

$

13,903

 

$

10,653

 

$

6,547

 

$

37,483

 

$

25,363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 

 

June 30, 

 

September 30, 

 

September 30, 

 

September 30, 

 

    

2019

    

2019

    

2018

 

2019

 

2018

Net income

 

$

13,903

 

$

10,653

 

$

6,547

 

$

37,483

 

$

25,363

Dividends paid on and earnings allocated to participating securities

 

 

(294)

  

 

(226)

 

 

(145)

 

 

(797)

 

 

(550)

Income attributable to common stock

 

$

13,609

 

$

10,427

 

$

6,402

 

$

36,686

 

$

24,813

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, including participating securities

 

 

19,958

  

 

19,965

 

 

19,890

 

 

19,950

 

 

19,869

Weighted average participating securities

 

 

(422)

  

 

(428)

 

 

(438)

 

 

(425)

 

 

(435)

Weighted average common shares outstanding

 

 

19,536

  

 

19,537

 

 

19,452

 

 

19,525

 

 

19,434

Basic earnings per common share

 

$

0.70

 

$

0.53

 

$

0.33

 

$

1.88

 

$

1.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

19,536

  

 

19,537

 

 

19,452

 

 

19,525

 

 

19,434

Incremental shares from assumed conversions of options and restricted stock units

 

 

32

  

 

28

 

 

33

 

 

27

 

 

27

Weighted average common and equivalent shares outstanding

 

 

19,568

  

 

19,565

 

 

19,485

 

 

19,552

 

 

19,461

Diluted earnings per common share

 

$

0.70

 

$

0.53

 

$

0.33

 

$

1.88

 

$

1.28

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Consolidated Financial Highlights (unaudited)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 

 

June 30, 

 

September 30, 

 

September 30, 

 

September 30, 

 

 

    

2019

 

2019

    

2018

    

2019

    

2018

 

Selected Financial Data:

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

1.17

%  

0.90

%  

0.58

%  

1.07

%  

0.76

%

Adjusted return on average total assets (1)

 

1.17

 

0.90

 

1.24

 

1.07

 

1.16

 

Return on average stockholders' equity

 

11.44

 

9.06

 

5.64

 

10.64

 

7.45

 

Adjusted return on average stockholders' equity (1)

 

11.44

 

9.06

 

12.03

 

10.64

 

11.45

 

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

 

14.81

 

11.82

 

7.43

 

13.88

 

9.86

 

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

 

14.97

 

12.01

 

16.03

 

14.06

 

15.36

 

Net interest margin, tax-equivalent basis

 

3.40

 

3.30

 

3.32

 

3.33

 

3.35

 

Efficiency ratio

 

56.34

 

58.52

 

79.23

 

57.33

 

69.74

 

Adjusted efficiency ratio (1)

 

55.79

 

58.03

 

54.22

 

56.74

 

56.08

 

Operating expense/average assets

 

2.04

 

2.03

 

2.75

 

2.02

 

2.27

 

Adjusted operating expense/average assets (1)

 

2.03

 

2.01

 

1.89

 

2.00

 

1.97

 

(1)

See reconciliation of this non-GAAP financial measure provided elsewhere herein.

(2)

Average tangible common equity represents a non-GAAP financial measure calculated as average total stockholders' equity less average goodwill and intangible assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

    

September 30, 

    

December 31, 

    

September 30, 

 

 

 

2019

 

2018

 

2018

 

Selected Financial Data:

 

 

  

 

 

  

 

 

  

 

Book value per share

 

$

24.53

 

$

22.93

 

$

22.23

 

Tangible book value per share (1)

 

$

18.99

 

$

17.36

 

$

16.64

 

Common shares outstanding

 

 

19,830

 

 

19,791

 

 

19,789

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

  

 

 

  

 

 

  

 

Total capital to risk-weighted assets

 

 

13.4

%  

 

13.6

%  

 

13.6

%

Tier 1 capital to risk-weighted assets

 

 

10.4

 

 

10.4

 

 

10.3

 

Common equity Tier 1 capital to risk-weighted assets

 

 

10.4

 

 

10.4

 

 

10.3

 

Tier 1 capital to average assets

 

 

8.4

 

 

8.1

 

 

8.0

 

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

 

 

8.1

 

 

7.5

 

 

7.6

 

Tier 1 capital to average assets (Bank)

 

 

10.0

 

 

9.9

 

 

9.7

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:

 

 

  

 

 

  

 

 

  

 

Loans 30-89 days past due

 

$

5,986

 

$

4,400

 

$

5,801

 

Loans 90 days past due and accruing (3)

 

$

338

 

$

308

 

$

299

 

Non-performing loans

 

$

4,211

 

$

2,808

 

$

1,944

 

Other real estate owned

 

 

 —

 

 

175

 

 

175

 

Non-performing assets

 

$

4,211

 

$

2,983

 

$

2,119

 

Non-performing loans/total loans

 

 

0.12

%  

 

0.09

%  

 

0.06

%

Non-performing assets/total assets

 

 

0.09

 

 

0.06

 

 

0.05

 

Allowance/non-performing loans

 

 
764.02

 

 
1118.87

 

 
1639.35

 

Allowance/total loans

 

 

0.92

 

 

0.96

 

 

1.00

 

(1)

Tangible common equity represents a non-GAAP financial measure calculated as total stockholders' equity less goodwill and intangible assets.

(2)

Tangible assets represent a non-GAAP financial measure calculated as total assets less goodwill and intangible assets.

(3)

Represents purchased credit impaired loans.

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Supplemental Financial Information

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

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 

 

Three Months Ended June 30, 

 

Three Months Ended September 30, 

 

 

 

2019

 

2019

 

2018

 

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

    

Balance

    

Interest

    

Cost

    

Balance

    

Interest

    

Cost

    

Balance

    

Interest

    

Cost

 

Interest-earning assets:

    

 

  

    

 

  

    

  

    

 

  

    

 

  

    

  

    

 

  

    

 

  

    

  

 

Loans, net (including loan fee income) (1)

 

$

3,442,462

 

$

41,053

 

4.73

%  

$

3,373,601

 

$

40,000

 

4.76

%  

$

3,157,422

 

$

36,243

 

4.55

%

Securities (1)

 

 

787,387

 

 

5,060

 

2.55

 

 

860,031

 

 

5,940

 

2.77

 

 

867,174

 

 

6,044

 

2.77

 

Deposits with banks

 

 

61,853

 

 

342

 

2.19

 

 

102,515

 

 

599

 

2.34

 

 

84,986

 

 

437

 

2.04

 

Total interest-earning assets (1)

 

 

4,291,702

 

 

46,455

 

4.29

 

 

4,336,147

 

 

46,539

 

4.30

 

 

4,109,582

 

 

42,724

 

4.12

 

Non-interest-earning assets:

 

 

  

 

 

  

 

 

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Other assets

 

 

412,300

 

 

 

 

 

 

 

401,720

 

 

 

 

 

 

 

369,305

 

 

  

 

 

 

Total assets

 

$

4,704,002

 

 

 

 

 

 

$

4,737,867

 

 

 

 

 

 

$

4,478,887

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

  Savings

 

$

433,086

 

$

1,083

 

0.99

%  

$

443,830

 

$

1,231

 

1.11

%  

$

341,056

 

$

395

 

0.46

%  

  NOW

 

 

125,056

 

 

51

 

0.16

 

 

124,329

 

 

48

 

0.15

 

 

108,271

 

 

27

 

0.10

 

  MMDA

 

 

1,034,002

 

 

3,452

 

1.32

 

 

1,012,419

 

 

3,840

 

1.52

 

 

866,631

 

 

2,386

 

1.09

 

  Savings, NOW and MMDA

 

 

1,592,144

 

 

4,586

 

1.14

 

 

1,580,578

 

 

5,119

 

1.30

 

 

1,315,958

 

 

2,808

 

0.85

 

  Certificates of deposit of less than $100,000

 

 

60,144

 

 

299

 

1.97

 

 

60,940

 

 

285

 

1.88

 

 

59,681

 

 

209

 

1.39

 

  Certificates of deposit of $100,000 or more

 

 

152,093

 

 

844

 

2.20

 

 

152,809

 

 

806

 

2.12

 

 

148,339

 

 

674

 

1.80

 

Total IPC deposits

 

 

1,804,381

 

 

5,729

 

1.26

 

 

1,794,327

 

 

6,210

 

1.39

 

 

1,523,978

 

 

3,691

 

0.96

 

  Brokered deposits

 

 

75,410

 

 

387

 

2.04

 

 

134,720

 

 

771

 

2.30

 

 

307,651

 

 

1,593

 

2.05

 

  Public funds

 

 

500,440

 

 

1,139

 

0.90

 

 

546,432

 

 

1,383

 

1.02

 

 

448,191

 

 

763

 

0.68

 

Total public and brokered deposits

 

 

575,850

 

 

1,526

 

1.05

 

 

681,152

 

 

2,154

 

1.27

 

 

755,842

 

 

2,356

 

1.24

 

Total deposits

 

 

2,380,231

 

 

7,255

 

1.21

 

 

2,475,479

 

 

8,364

 

1.36

 

 

2,279,820

 

 

6,047

 

1.05

 

Federal funds purchased and repurchase agreements

 

 

14,160

 

 

70

 

1.96

 

 

25,246

 

 

158

 

2.51

 

 

3,487

 

 

12

 

1.37

 

FHLB advances

 

 

244,011

 

 

1,179

 

1.92

 

 

243,322

 

 

1,178

 

1.94

 

 

269,909

 

 

1,182

 

1.74

 

Subordinated debentures

 

 

78,862

 

 

1,135

 

5.71

 

 

78,827

 

 

1,135

 

5.78

 

 

78,723

 

 

1,134

 

5.72

 

Total borrowings

 

 

337,033

 

 

2,384

 

2.81

 

 

347,395

 

 

2,471

 

2.85

 

 

352,119

 

 

2,328

 

2.62

 

Total interest-bearing liabilities

 

 

2,717,264

 

 

9,639

 

1.41

 

 

2,822,874

 

 

10,835

 

1.54

 

 

2,631,939

 

 

8,375

 

1.26

 

Non-interest-bearing liabilities:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Demand deposits

 

 

1,417,159

 

 

 

 

 

 

 

1,365,279

 

 

 

 

 

 

 

1,343,107

 

 

  

 

 

 

Other liabilities

 

 

87,313

 

 

 

 

 

 

 

78,278

 

 

 

 

 

 

 

43,432

 

 

  

 

 

 

Total liabilities

 

 

4,221,736

 

 

 

 

 

 

 

4,266,431

 

 

 

 

 

 

 

4,018,478

 

 

  

 

 

 

Stockholders' equity

 

 

482,266

 

 

 

 

 

 

 

471,436

 

 

 

 

 

 

 

460,409

 

 

  

 

 

 

Total liabilities and stockholders' equity

 

$

4,704,002

 

 

 

 

 

 

$

4,737,867

 

 

 

 

 

 

$

4,478,887

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest rate spread

 

 

 

 

 

 

 

2.88

%  

 

 

 

 

 

 

2.76

%  

 

  

 

 

 

 

2.86

%

Net interest-earning assets

 

$

1,574,438

 

 

 

 

 

 

$

1,513,273

 

 

 

 

 

 

$

1,477,643

 

 

 

 

 

 

Net interest margin - tax-equivalent

 

 

 

 

 

36,816

 

3.40

%  

 

 

 

 

35,704

 

3.30

%  

 

 

 

 

34,349

 

3.32

%

Less: Tax-equivalent adjustment

 

 

 

 

 

(101)

 

(0.01)

 

 

 

 

 

(187)

 

(0.01)

 

 

  

 

 

(135)

 

(0.02)

 

Net interest income

 

 

 

 

$

36,715

 

 

 

 

 

 

$

35,517

 

 

 

 

  

 

$

34,214

 

 

 

Net interest margin

 

 

 

 

 

 

 

3.39

%  

 

 

 

 

 

 

3.29

%  

 

  

 

 

 

 

3.30

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Presented on a tax-equivalent basis.

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Supplemental Financial Information

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

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 

 

 

 

2019

 

2018

 

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

    

Balance

    

Interest

    

Cost

    

Balance

    

Interest

    

Cost

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net (including loan fee income) (1)

 

$

3,364,574

 

$

118,712

 

4.72

%  

$

3,155,093

 

$

107,720

 

4.56

%

Securities (1)

 

 

844,057

 

 

17,442

 

2.76

 

 

920,108

 

 

17,608

 

2.56

 

Deposits with banks

 

 

85,241

 

 

1,485

 

2.33

 

 

44,660

 

 

633

 

1.90

 

Total interest-earning assets (1)

 

 

4,293,872

 

 

137,639

 

4.29

 

 

4,119,861

 

 

125,961

 

4.09

 

Non-interest-earning assets:

 

 

  

 

 

  

 

 

 

 

  

 

 

  

 

  

 

Other assets

 

 

402,174

 

 

 

 

  

 

 

363,131

 

 

  

 

  

 

Total assets

 

$

4,696,046

 

 

 

 

  

 

$

4,482,992

 

 

  

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

  Savings

 

$

425,265

 

$

3,219

 

1.01

%  

$

309,990

 

$

605

 

0.26

%  

  NOW

 

 

118,530

 

 

140

 

0.16

 

 

124,750

 

 

83

 

0.09

 

  MMDA

 

 

1,010,304

 

 

10,878

 

1.44

 

 

815,537

 

 

5,620

 

0.92

 

  Savings, NOW and MMDA

 

 

1,554,099

 

 

14,237

 

1.22

 

 

1,250,277

 

 

6,308

 

0.67

 

  Certificates of deposit of less than $100,000

 

 

60,796

 

 

845

 

1.86

 

 

58,745

 

 

540

 

1.23

 

  Certificates of deposit of $100,000 or more

 

 

151,675

 

 

2,382

 

2.10

 

 

125,081

 

 

1,390

 

1.49

 

Total IPC deposits

 

 

1,766,570

 

 

17,464

 

1.32

 

 

1,434,103

 

 

8,238

 

0.77

 

  Brokered deposits

 

 

139,356

 

 

2,368

 

2.27

 

 

262,364

 

 

3,677

 

1.87

 

  Public funds

 

 

527,022

 

 

3,701

 

0.94

 

 

484,814

 

 

1,871

 

0.52

 

Total public and brokered deposits

 

 

666,378

 

 

6,069

 

1.22

 

 

747,178

 

 

5,548

 

0.99

 

Total deposits

 

 

2,432,948

 

 

23,533

 

1.29

 

 

2,181,281

 

 

13,786

 

0.85

 

Federal funds purchased and repurchase agreements

 

 

15,722

 

 

273

 

2.32

 

 

91,989

 

 

1,185

 

1.72

 

FHLB advances

 

 

243,544

 

 

3,455

 

1.90

 

 

344,677

 

 

4,447

 

1.72

 

Subordinated debentures

 

 

78,828

 

 

3,405

 

5.78

 

 

78,688

 

 

3,404

 

5.78

 

Total borrowings

 

 

338,094

 

 

7,133

 

2.82

 

 

515,354

 

 

9,036

 

2.34

 

Total interest-bearing liabilities

 

 

2,771,042

 

 

30,666

 

1.48

 

 

2,696,635

 

 

22,822

 

1.13

 

Non-interest-bearing liabilities:

 

 

  

 

 

  

 

 

 

 

  

 

 

  

 

 

 

Demand deposits

 

 

1,372,285

 

 

  

 

  

 

 

1,290,782

 

 

  

 

 

 

Other liabilities

 

 

81,588

 

 

  

 

  

 

 

40,656

 

 

  

 

 

 

Total liabilities

 

 

4,224,915

 

 

  

 

  

 

 

4,028,073

 

 

  

 

 

 

Stockholders' equity

 

 

471,131

 

 

  

 

  

 

 

454,919

 

 

  

 

 

 

Total liabilities and stockholders' equity

 

$

4,696,046

 

 

  

 

  

 

$

4,482,992

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest rate spread

 

 

  

 

 

 

 

2.81

%  

 

  

 

 

 

 

2.96

%

Net interest-earning assets

 

$

1,522,830

 

 

  

 

 

 

$

1,423,226

 

 

  

 

 

 

Net interest margin - tax-equivalent

 

 

 

 

 

106,973

 

3.33

%  

 

 

 

 

103,139

 

3.35

%

Less: Tax-equivalent adjustment

 

 

  

 

 

(418)

 

(0.01)

 

 

  

 

 

(457)

 

(0.02)

 

Net interest income

 

 

 

 

$

106,555

 

 

 

 

 

 

$

102,682

 

 

 

Net interest margin

 

 

 

 

 

 

 

3.32

%  

 

 

 

 

 

 

3.33

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Presented on a tax-equivalent basis.

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Non-GAAP Financial Measures (unaudited)

Reconciliation of as reported (GAAP) and non-GAAP financial measures

 

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

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

    

September 30, 

    

June 30, 

    

September 30, 

    

September 30, 

    

September 30, 

 

 

 

2019

 

2019

 

2018

 

2019

 

2018

 

Return on average total assets - as reported

 

1.17

%  

0.90

%  

0.58

%  

1.07

%  

0.76

%

Net securities losses

 

 —

 

 —

 

 —

 

 —

 

0.24

 

Fraud loss

 

 —

 

 —

 

0.84

 

 —

 

0.28

 

Income tax effect of adjustments above

 

 —

 

 —

 

(0.18)

 

 —

 

(0.12)

 

Adjusted return on average total assets (non-GAAP)

 

1.17

 

0.90

 

1.24

 

1.07

 

1.16

 

 

 

  

 

  

 

  

 

  

 

  

 

Return on average stockholders' equity - as reported

 

11.44

%  

9.06

%  

5.64

%  

10.64

%  

7.45

%

Net securities losses

 

 —

 

 —

 

 —

 

 —

 

2.33

 

Fraud loss

 

 —

 

 —

 

8.19

 

 —

 

2.79

 

Income tax effect of adjustments above

 

 —

 

 —

 

(1.80)

 

 —

 

(1.12)

 

Adjusted return on average stockholders' equity (non-GAAP)

 

11.44

 

9.06

 

12.03

 

10.64

 

11.45

 

 

 

  

 

  

 

  

 

  

 

  

 

Return on average tangible common equity - as reported

 

14.81

%  

11.82

%  

7.43

%  

13.88

%  

9.86

%

Net securities losses

 

 —

 

 —

 

 —

 

 —

 

3.08

 

Fraud loss

 

 —

 

 —

 

10.78

 

 —

 

3.69

 

Amortization of other intangible assets

 

0.19

 

0.23

 

0.24

 

0.23

 

0.27

 

Income tax effect of adjustments above

 

(0.03)

 

(0.04)

 

(2.42)

 

(0.05)

 

(1.54)

 

Adjusted return on average tangible common equity (non-GAAP)

 

14.97

 

12.01

 

16.03

 

14.06

 

15.36

 

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Non-GAAP Financial Measures (unaudited)

 

The following table presents a reconciliation of net income and diluted earnings per share (as reported) to adjusted net income and adjusted diluted earnings per share excluding a fraud loss during the third quarter of 2018 and net securities losses associated with the Company’s strategic plan to restructure its balance sheet during the second quarter of 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

    

September 30, 

    

June 30, 

    

September 30, 

    

September 30, 

    

September 30, 

(Dollars in thousands, except per share amounts)

 

2019

 

2019

 

2018

 

2019

 

2018

Net income - as reported

 

$

13,903

 

$

10,653

 

$

6,547

 

$

37,483

 

$

25,363

Adjustments:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Net securities losses

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

7,921

Fraud loss

 

 

 —

 

 

 —

 

 

9,500

 

 

 —

 

 

9,500

Income tax effect of adjustments above

 

 

 —

 

 

 —

 

 

(2,091)

 

 

 —

 

 

(3,833)

Adjusted net income (non-GAAP)

 

$

13,903

 

$

10,653

 

$

13,956

 

$

37,483

 

$

38,951

 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Diluted earnings per share - as reported

 

$

0.70

 

$

0.53

 

$

0.33

 

$

1.88

 

$

1.28

Adjustments:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Net securities losses

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

0.40

Fraud loss

 

 

 —

 

 

 —

 

 

0.48

 

 

 —

 

 

0.48

Income tax effect of adjustments above

 

 

 —

 

 

 —

 

 

(0.11)

 

 

 —

 

 

(0.20)

Adjusted diluted earnings per share (non-GAAP)

 

$

0.70

 

$

0.53

 

$

0.70

 

$

1.88

 

$

1.96

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

    

September 30, 

    

June 30, 

    

September 30, 

    

September 30, 

    

September 30, 

 

(Dollars in thousands, except per share amounts)

 

2019

 

2019

 

2018

 

2019

 

2018

 

Efficiency ratio - as reported

    

 

56.34

%  

 

58.52

%  

 

79.23

%  

 

57.33

%  

 

69.74

%

Non-interest expense - as reported

 

$

24,204

 

$

24,004

 

$

31,004

 

$

70,807

 

$

76,109

 

Less: Fraud loss

 

 

 —

 

 

 —

 

 

(9,500)

 

 

 —

 

 

(9,500)

 

Less: Amortization of intangible assets

 

 

(182)

 

 

(210)

 

 

(215)

 

 

(605)

 

 

(703)

 

Adjusted non-interest expense (non-GAAP)

 

$

24,022

 

$

23,794

 

$

21,289

 

$

70,202

 

$

65,906

 

Net interest income - as reported

 

$

36,715

 

$

35,517

 

$

34,214

 

$

106,555

 

$

102,682

 

Tax-equivalent adjustment

 

 

101

 

 

187

 

 

135

 

 

418

 

 

457

 

Net interest income, tax-equivalent basis

 

$

36,816

 

$

35,704

 

$

34,349

 

$

106,973

 

$

103,139

 

Non-interest income - as reported

 

$

6,244

 

$

5,499

 

$

4,918

 

$

16,961

 

$

6,453

 

Less: Net securities (gains)/ losses

 

 

 —

 

 

(201)

 

 

 —

 

 

(201)

 

 

7,921

 

Adjusted non-interest income (non-GAAP)

 

$

6,244

 

$

5,298

 

$

4,918

 

$

16,760

 

$

14,374

 

Adjusted total revenues for adjusted efficiency ratio (non-GAAP)

 

$

43,060

 

$

41,002

 

$

39,267

 

$

123,733

 

$

117,513

 

Adjusted efficiency ratio (non-GAAP) (1)

 

 

55.79

%  

 

58.03

%  

 

54.22

%  

 

56.74

%  

 

56.08

%

 

 

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

 

Nine Months Ended

 

 

    

September 30, 

    

June 30, 

    

September 30, 

    

September 30, 

    

September 30, 

 

 

 

2019

 

2019

 

2018

 

2019

 

2018

 

Operating expense as a % of average assets - as reported

 

2.04

%  

2.03

%  

2.75

%  

2.02

%  

2.27

%

Fraud loss

 

 —

 

 —

 

(0.84)

 

 —

 

(0.28)

 

Amortization of other intangible assets

 

(0.01)

 

(0.02)

 

(0.02)

 

(0.02)

 

(0.02)

 

Adjusted operating expense as a % of average assets (non-GAAP)

 

2.03

 

2.01

 

1.89

 

2.00

 

1.97

 

 

(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.

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Non-GAAP Financial Measures (unaudited)

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

    

September 30, 

    

December 31, 

    

September 30, 

 

(Dollars in thousands)

 

2019

 

2018

 

2018

 

Total assets - as reported

 

$

4,736,021

 

$

4,700,744

 

$

4,448,757

 

Less: Goodwill and other intangible assets - as reported

 

 

(109,840)

 

 

(110,324)

 

 

(110,667)

 

Tangible assets (non-GAAP)

 

$

4,626,181

 

$

4,590,420

 

$

4,338,090

 

 

 

 

  

 

 

  

 

 

  

 

Total stockholders' equity - as reported

 

$

486,403

 

$

453,830

 

$

439,985

 

Less: Goodwill and other intangible assets - as reported

 

 

(109,840)

 

 

(110,324)

 

 

(110,667)

 

Tangible common equity (non-GAAP)

 

$

376,563

 

$

343,506

 

$

329,318

 

 

 

 

  

 

 

  

 

 

  

 

Tangible common equity to tangible assets (non-GAAP) (1)

 

 

8.1

%  

 

7.5

%  

 

7.6

%

(1)

Calculated by dividing tangible common equity by tangible assets.