Bridge Bancorp, Inc. Reports Second Quarter 2019 Results

Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced second quarter results for 2019.

The Company's second quarter 2019 financial results included:

Net income for the 2019 second quarter of $10.7 million, or $0.53 per diluted share, compared to $6.7 million, or $0.34 per diluted share for the 2018 second quarter, inclusive of pre-tax net securities losses of $7.9 million, or $0.31 per diluted share after tax, related to the Company’s balance sheet restructure in the 2018 period.
Net interest income for the 2019 second quarter increased $1.2 million over the 2019 first quarter to $35.5 million, with a tax-equivalent net interest margin of 3.30%.
Total assets of $4.7 billion at June 30, 2019, 7% higher than June 30, 2018.
Loan growth of $249 million, or 8%, compared to June 30, 2018, and $154 million, or 9% annualized, from December 31, 2018.
Non-public, non-brokered deposit growth of $431 million, or 16%, compared to June 30, 2018, and $190 million, or 13% annualized, from December 31, 2018.
Non-performing assets of $5.5 million at June 30, 2019, $3.7 million higher than June 30, 2018 and $2.5 million higher than December 31, 2018. Loan loss reserve coverage to total loans of 0.91% at June 30, 2019.
All capital ratios remain strong. Declared a dividend of $0.23 during the quarter.

Commenting on the second quarter results, Kevin O’Connor, President and CEO said, “Our continued growth as measured by an expanded customer base, and higher loan and deposit balance reflects the strength in our markets and our ability to attract clients to BNB Bank. The quarterly results show record revenue, a stabilizing margin, and continued prudent liquidity management, notwithstanding an increased loan loss provision related to one specific credit. Our SBA business bolstered our non-interest income. Expenses grew as we capitalized on branch closures by our competitors with targeted advertising campaigns and hired more bankers. BNB Bank remains a strong, core funded community bank making loans funded by deposits supporting our customers and our marketplace.”

Net Earnings and ReturnsNet income in the 2019 second quarter was $10.7 million, or $0.53 per diluted share, an increase of $3.9 million compared to the 2018 second quarter, driven primarily by a rise in non-interest income and net interest income, partially offset by higher provision for loan losses and non-interest expense. Excluding the impact of the balance sheet restructure, net income in the 2018 second quarter was $12.9 million, or $0.65 per diluted share. Net income for the six months ended June 30, 2019 was $23.6 million, or $1.18 per diluted share, compared to $18.8 million, or $0.95 per diluted share, in 2018.

Returns on average assets and equity in the 2019 second quarter were 0.90% and 9.06%, respectively. Return on average tangible common equity was 11.82% for the 2019 second quarter.

“Our reported net income of $0.53 per diluted share was impacted by a higher provision for loan losses related to one credit, which reduced earnings per share by approximately $0.12, and reduced returns on average assets, equity and tangible common equity by approximately 19 basis points, 188 basis points and 245 basis points, respectively,” noted Mr. O’Connor.

Net Interest IncomeInterest income was $46.4 million in the 2019 second quarter, an increase of $1.8 million compared to the 2019 first quarter, driven primarily by loan portfolio growth and higher loan portfolio yields. Interest expense was $10.8 million in the 2019 second quarter, an increase of $0.6 million compared to the 2019 first quarter, primarily due to deposit growth and an increase in average cost of interest-bearing liabilities.

The tax-equivalent net interest margin for the 2019 second quarter showed a year-over-year decline of 1 basis point to 3.30% in 2019 from 3.31% in 2018. The adjusted net interest margin, excluding purchase accounting, is down 1 basis point to 3.23% from 3.24% in 2018. Reported 2019 second quarter loan yields showed a year-over-year increase of 24 basis points from 4.52% in 2018 to 4.76% in 2019, while yields excluding purchase accounting increased 23 basis points to 4.66% in 2019 from 4.43% in 2018.


	Three Months Ended									Change Compared To
	June 30,			March 31,			June 30,			March 31,				June 30,
	2019			2019			2018			2019				2018
Average yield on loans, tax-equivalent basis - as reported		4.76	%		4.66	%		4.52	%		10		bp		24		bp
Adjusted average yield on loans (non-GAAP)		4.66			4.61			4.43			5				23

Net interest margin - as reported (1)		3.29	%		3.27	%		3.30	%		2		bp		(1	)	bp
Net interest margin, tax-equivalent basis (2)		3.30			3.29			3.31			1				(1	)
Adjusted net interest margin (non-GAAP) (3)		3.23			3.24			3.24			(1	)			(1	)

_______________________________

(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 divided by adjusted average interest-earning assets.

“Despite a flattening yield curve, we maintained our margin by focusing on our core relationship businesses. We also sold lower yielding bonds and reduced our brokered deposits, while keeping our loan-to-deposit ratio below 90%. Our proven strategy is to actively manage the balance sheet based on the changing environment,” stated Mr. O’Connor.

Provision for Loan LossesThe provision for loan losses was $3.5 million for the 2019 second quarter, $3.1 million higher than the 2018 second quarter. Contributing to the higher provision was a $3.7 million charge-off for one loan in the 2019 second quarter. The Company recognized net charge-offs of $4.1 million in the 2019 second quarter, compared to net charge-offs of $1.6 million in the 2018 second quarter.

Non-Interest IncomeNon-interest income was $5.5 million for the 2019 second quarter, $8.1 million higher than the 2018 second quarter, primarily attributable to the impact of the balance sheet restructure in the 2018 second quarter, and higher gain on sale of Small Business Administration (“SBA”) loans in the 2019 second quarter.

Non-Interest ExpenseNon-interest expense for the 2019 second quarter of $24.0 million was $1.5 million higher than the 2018 second quarter. The increase in 2019 was due to higher salaries and benefits expense, occupancy and equipment costs and other operating expenses.

Income Tax ExpenseIncome tax expense was $2.9 million in the 2019 second quarter, an increase of $1.2 million compared to the 2018 second quarter. The Company estimates it will record income tax at an effective tax rate of approximately 22% for the remainder of 2019.

Balance SheetTotal assets were $4.7 billion at June 30, 2019, $13.8 million higher than December 31, 2018, and $299.8 million higher than June 30, 2018. Total loans held for investment at June 30, 2019 of $3.4 billion reflects growth of $249.3 million, or 8%, over June 30, 2018. Deposits totaled $3.8 billion at June 30, 2019, an increase of $283.4 million, or 8%, over June 30, 2018. Demand deposits increased $78.4 million year-over-year to $1.4 billion at June 30, 2019, representing 36% of total deposits.

The allowance for loan losses was $31.2 million at June 30, 2019, $0.5 million lower than June 30, 2018. The allowance as a percentage of loans was 0.91% at June 30, 2019, compared to 1.00% at June 30, 2018.

Stockholders’ equity was $475.2 million at June 30, 2019, $35.5 million higher than June 30, 2018. The growth reflects earnings, partially offset by shareholders’ dividends. Book value per share was $23.96 at June 30, 2019, $1.73 higher than June 30, 2018. Tangible book value per share was $18.41 at June 30, 2019, $1.79 higher than June 30, 2018.


							Change Compared To
	June 30,		December 31,		June 30,		December 31,			June 30,
(Dollars in thousands)	2019		2018		2018		2018			2018
Total assets	$	4,714,535	$	4,700,744	$	4,414,785	$	13,791		$	299,750
Total stockholders' equity		475,205		453,830		439,755		21,375			35,450

Loans held for investment
Investor commercial real estate ("CRE")	$	910,892	$	863,158	$	844,295	$	47,734		$	66,597
Multi-family ("MF")		631,146		585,827		570,670		45,319			60,476
Construction and land ("C&L")		150,868		123,393		116,899		27,475			33,969
Total investor CRE, MF, and C&L		1,692,906		1,572,378		1,531,864		120,528			161,042

Commercial and industrial ("C&I")		675,168		645,724		629,906		29,444			45,262
Owner-occupied CRE		525,329		510,398		483,652		14,931			41,677
Total C&I and owner-occupied CRE		1,200,497		1,156,122		1,113,558		44,375			86,939

Residential real estate		503,354		519,763		510,303		(16,409	)		(6,949	)
Installment and consumer		25,825		20,509		20,051		5,316			5,774
Net deferred loan costs and fees		7,441		7,039		4,900		402			2,541
Total loans held for investment	$	3,430,023	$	3,275,811	$	3,180,676	$	154,212		$	249,347

Deposits
Total IPC deposits	$	3,154,801	$	2,965,007	$	2,724,208	$	189,794		$	430,593
Total public and brokered deposits		681,775		921,386		828,989		(239,611	)		(147,214	)
Total deposits	$	3,836,576	$	3,886,393	$	3,553,197	$	(49,817	)	$	283,379

“The first half of 2019 shows our continued ability to generate new business in our marketplace. We grew loans at 9%. Year to date we closed nearly $500 million in new credits. IPC deposit growth was 13% for the same period. Equally important, our western markets- where we have lower market share and thus more opportunity- are showing accelerated growth. We are committed to providing capital as well as a comprehensive product suite to the businesses in our footprint,” Mr. O’Connor said.

Asset QualityAsset quality measures remained solid, as non-performing assets were $5.5 million, or 0.12% of total assets, at June 30, 2019, compared to $1.8 million, or 0.04% of total assets, at June 30, 2018. Non-performing assets at June 30, 2018 included $175 thousand of other real estate owned. Non-performing loans were $5.5 million, or 0.16% of total loans at June 30, 2019, compared to $1.6 million, or 0.05% of total loans at June 30, 2018. Loans 30 to 89 days past due decreased $1.0 million to $3.4 million at June 30, 2019, compared to $4.4 million at June 30, 2018. Loans past due 90 days and accruing at June 30, 2019 and 2018 were comprised of acquired loans of $0.3 million and $0.9 million, respectively.

Conference CallThe Company will host a conference call on Wednesday, July 24, 2019 at 9:00 AM (ET) to discuss the 2019 second quarter results. Investors who would like to join the conference call are encouraged to pre-register using the following link: http://dpregister.com/10132796. 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 approximately one hour after the conclusion of the call through Wednesday, August 7, 2019.

Call and replay information are as follows:

Call Date: Wednesday, July 24, 2019 Call Time: 9:00 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: 10132796

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 39 branch locations serving Long Island and the greater New York metropolitan area. In addition, BNB operates one loan production office in Manhattan. 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, 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 as a result of the Dodd-Frank Act; 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 SUBSIDIARIESCondensed Consolidated Statements of Condition (unaudited)(In thousands)


	June 30,			December 31,			June 30,
	2019			2018			2018
Assets
Cash and due from banks	$	71,292		$	142,145		$	74,255
Interest-earning deposits with banks		87,349			153,223			31,636
Total cash and cash equivalents		158,641			295,368			105,891
Securities available for sale, at fair value		642,897			680,886			659,076
Securities held to maturity		144,716			160,163			169,717
Total securities		787,613			841,049			828,793
Securities, restricted		24,104			24,028			26,747
Loans held for sale		12,643			—			6,338
Loans held for investment		3,430,023			3,275,811			3,180,676
Allowance for loan losses		(31,171	)		(31,418	)		(31,652	)
Loans held for investment, net		3,398,852			3,244,393			3,149,024
Premises and equipment, net		34,006			35,008			36,043
Operating lease right-of-use assets (1)		37,619			—			—
Goodwill and other intangible assets		109,975			110,324			110,816
Other real estate owned		—			175			175
Accrued interest receivable and other assets		151,082			150,399			150,958
Total assets	$	4,714,535		$	4,700,744		$	4,414,785

Liabilities and stockholders' equity
Demand deposits	$	1,322,625		$	1,275,664		$	1,248,383
Savings and negotiable order of withdrawal ("NOW") deposits		613,431			496,881			436,227
Money market deposit accounts ("MMDA")		1,002,768			975,531			843,390
Certificates of deposit of less than $100,000		60,658			61,827			59,053
Certificates of deposit of $100,000 or more		155,319			155,104			137,155
Total individual, partnership and corporate ("IPC") deposits		3,154,801			2,965,007			2,724,208
Brokered deposits		127,196			255,408			318,164
Public funds - demand deposits		63,084			172,941			58,941
Public funds - other deposits		491,495			493,037			451,884
Total public and brokered deposits		681,775			921,386			828,989
Total deposits		3,836,576			3,886,393			3,553,197
Federal funds purchased and repurchase agreements		945			539			1,437
Federal Home Loan Bank ("FHLB") advances		240,000			240,433			300,863
Subordinated debentures, net		78,850			78,781			78,711
Operating lease liabilities (1)		40,263			—			—
Other liabilities and accrued expenses		42,696			40,768			40,822
Total liabilities		4,239,330			4,246,914			3,975,030
Total stockholders' equity		475,205			453,830			439,755
Total liabilities and stockholders' equity	$	4,714,535		$	4,700,744		$	4,414,785

___________________________

(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 SUBSIDIARIESCondensed Consolidated Statements of Income (unaudited)(In thousands, except per share amounts)


	Three Months Ended							Six Months Ended
	June 30,		March 31,		June 30,			June 30,		June 30,
	2019		2019		2018			2019		2018
Interest income	$	46,352	$	44,515	$	41,551		$	90,867	$	82,915
Interest expense		10,835		10,192		7,622			21,027		14,447
Net interest income		35,517		34,323		33,929			69,840		68,468
Provision for loan losses		3,500		600		400			4,100		1,200
Net interest income after provision for loan losses		32,017		33,723		33,529			65,740		67,268

Non-interest income:
Service charges and other fees		2,556		2,428		2,562			4,984		4,725
Title fee income		335		306		450			641		955
Net securities gains (losses)		201		—		(7,921	)		201		(7,921	)
Gain on sale of SBA loans		844		217		691			1,061		1,062
BOLI income		556		553		555			1,109		1,101
Other operating income		1,007		1,714		1,085			2,721		1,613
Total non-interest income (loss)		5,499		5,218		(2,578	)		10,717		1,535

Non-interest expense:
Salaries and employee benefits		13,659		13,280		13,055			26,939		25,867
Occupancy and equipment		3,560		3,531		3,205			7,091		6,448
Amortization of other intangible assets		210		213		242			423		488
Other operating expenses		6,575		5,575		6,005			12,150		12,302
Total non-interest expense		24,004		22,599		22,507			46,603		45,105

Income before income taxes		13,512		16,342		8,444			29,854		23,698
Income tax expense		2,859		3,415		1,701			6,274		4,882
Net income	$	10,653	$	12,927	$	6,743		$	23,580	$	18,816
Basic earnings per share	$	0.53	$	0.65	$	0.34		$	1.18	$	0.95
Diluted earnings per share	$	0.53	$	0.65	$	0.34		$	1.18	$	0.95
Weighted average common and equivalent shares		19,565		19,526		19,468			19,545		19,453

BRIDGE BANCORP, INC. AND SUBSIDIARIESConsolidated 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,
	2019		2019		2018		2019		2018
Selected Financial Data:
Return on average total assets	0.90	%	1.13	%	0.60	%	1.01	%	0.85	%
Adjusted return on average total assets (1)	0.90		1.13		1.15		1.01		1.12
Return on average stockholders' equity	9.06		11.41		5.96		10.22		8.39
Adjusted return on average stockholders' equity (1)	9.06		11.41		11.43		10.22		11.15
Return on average tangible common equity (1) (2)	11.82		15.01		7.90		13.38		11.12
Adjusted return on average tangible common equity (1) (2)	12.01		15.21		15.35		13.57		15.00
Net interest margin, tax-equivalent basis	3.30		3.29		3.31		3.29		3.36
Adjusted net interest margin (1)	3.23		3.24		3.24		3.24		3.23
Efficiency ratio	58.52		57.15		71.79		57.85		64.43
Adjusted efficiency ratio (1)	58.03		56.43		56.47		57.24		57.02
Operating expense/average assets	2.03		1.97		2.01		2.00		2.03
Adjusted operating expense/average assets (1)	2.01		1.95		1.99		1.98		2.01

____________________________

(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,
	2019			2018			2018
Selected Financial Data:
Book value per share	$	23.96		$	22.93		$	22.23
Tangible book value per share (1)	$	18.41		$	17.36		$	16.62
Common shares outstanding		19,834			19,791			19,786

Capital Ratios:
Total capital to risk-weighted assets		13.3	%		13.6	%		13.6	%
Tier 1 capital to risk-weighted assets		10.3			10.4			10.3
Common equity Tier 1 capital to risk-weighted assets		10.3			10.4			10.3
Tier 1 capital to average assets		8.1			8.1			7.9
Tangible common equity to tangible assets (1) (2)		7.9			7.5			7.6
Tier 1 capital to average assets (Bank)		9.7			9.9			9.6

Asset Quality:
Loans 30-89 days past due	$	3,382		$	4,400		$	4,391
Loans 90 days past due and accruing (3)	$	329		$	308		$	934
Non-performing loans	$	5,509		$	2,808		$	1,599
Other real estate owned		—			175			175
Non-performing assets	$	5,509		$	2,983		$	1,774
Non-performing loans/total loans		0.16	%		0.09	%		0.05	%
Non-performing assets/total assets		0.12			0.06			0.04
Allowance/non-performing loans		565.82			1118.87			1979.49
Allowance/total loans		0.91			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 loans acquired in connection with the Community National Bank and FNBNY Bancorp, Inc. acquisitions.

BRIDGE BANCORP, INC. AND SUBSIDIARIESSupplemental Financial InformationCondensed 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,
	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)	$	3,373,601	$	40,000		4.76		%	$	3,275,828	$	37,659		4.66		%	$	3,179,632	$	35,817		4.52		%
Securities (1)		860,031		5,940		2.77				885,834		6,442		2.95				924,979		5,784		2.51
Deposits with banks		102,515		599		2.34				91,682		544		2.41				25,206		106		1.69
Total interest-earning assets (1)		4,336,147		46,539		4.30				4,253,344		44,645		4.26				4,129,817		41,707		4.05
Non-interest-earning assets:
Other assets		401,720								392,283								365,038
Total assets	$	4,737,867							$	4,645,627							$	4,494,855

Interest-bearing liabilities:
Savings	$	443,830	$	1,231		1.11		%	$	398,499	$	905		0.92		%	$	296,882	$	132		0.18		%
NOW		124,329		48		0.15				105,996		41		0.16				130,000		30		0.09
MMDA		1,012,419		3,840		1.52				983,942		3,586		1.48				808,845		1,833		0.91
Savings, NOW and MMDA		1,580,578		5,119		1.30				1,488,437		4,532		1.23				1,235,727		1,995		0.65
Certificates of deposit of less than $100,000		60,940		285		1.88				61,317		261		1.73				57,753		170		1.18
Certificates of deposit of $100,000 or more		152,809		806		2.12				150,102		732		1.98				117,380		384		1.31
Total IPC deposits		1,794,327		6,210		1.39				1,699,856		5,525		1.32				1,410,860		2,549		0.72
Brokered deposits		134,720		771		2.30				209,409		1,210		2.34				276,405		1,299		1.89
Public funds		546,432		1,383		1.02				534,568		1,179		0.89				509,353		665		0.52
Total public and brokered deposits		681,152		2,154		1.27				743,977		2,389		1.30				785,758		1,964		1.00
Total deposits		2,475,479		8,364		1.36				2,443,833		7,914		1.31				2,196,618		4,513		0.82
Federal funds purchased and repurchase agreements		25,246		158		2.51				7,691		45		2.37				122,463		567		1.86
FHLB advances		243,322		1,178		1.94				243,290		1,098		1.83				337,615		1,407		1.67
Subordinated debentures		78,827		1,135		5.78				78,793		1,135		5.84				78,688		1,135		5.79
Total borrowings		347,395		2,471		2.85				329,774		2,278		2.80				538,766		3,109		2.31
Total interest-bearing liabilities		2,822,874		10,835		1.54				2,773,607		10,192		1.49				2,735,384		7,622		1.12
Non-interest-bearing liabilities:
Demand deposits		1,365,279								1,333,498								1,265,370
Other liabilities		78,278								79,083								40,633
Total liabilities		4,266,431								4,186,188								4,041,387
Stockholders' equity		471,436								459,439								453,468
Total liabilities and stockholders' equity	$	4,737,867							$	4,645,627							$	4,494,855

Net interest rate spread						2.76		%						2.77		%						2.93		%
Net interest-earning assets	$	1,513,273							$	1,479,737							$	1,394,433
Net interest margin - tax-equivalent				35,704		3.30		%				34,453		3.29		%				34,085		3.31		%
Less: Tax-equivalent adjustment				(187	)	(0.01	)					(130	)	(0.02	)					(156	)	(0.01	)
Net interest income			$	35,517							$	34,323							$	33,929
Net interest margin						3.29		%						3.27		%						3.30		%

______________________________

(1) Presented on a tax-equivalent basis.

BRIDGE BANCORP, INC. AND SUBSIDIARIESSupplemental Financial InformationCondensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)(Dollars in thousands)


	Six Months Ended June 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)	$	3,324,985	$	77,659		4.71		%	$	3,153,909	$	71,477		4.57		%
Securities (1)		872,861		12,382		2.86				947,013		11,564		2.46
Deposits with banks		97,128		1,143		2.37				24,163		196		1.64
Total interest-earning assets (1)		4,294,974		91,184		4.28				4,125,085		83,237		4.07
Non-interest-earning assets:
Other assets		397,027								359,993
Total assets	$	4,692,001							$	4,485,078

Interest-bearing liabilities:
Savings	$	421,290	$	2,136		1.02		%	$	294,200	$	210		0.14		%
NOW		115,213		89		0.16				133,126		56		0.08
MMDA		998,259		7,426		1.50				789,566		3,234		0.83
Savings, NOW and MMDA		1,534,762		9,651		1.27				1,216,892		3,500		0.58
Certificates of deposit of less than $100,000		61,128		546		1.80				58,270		331		1.15
Certificates of deposit of $100,000 or more		151,463		1,538		2.05				113,259		716		1.27
Total IPC deposits		1,747,353		11,735		1.35				1,388,421		4,547		0.66
Brokered deposits		171,858		1,981		2.32				239,346		2,084		1.76
Public funds		540,533		2,562		0.96				503,428		1,108		0.44
Total public and brokered deposits		712,391		4,543		1.29				742,774		3,192		0.87
Total deposits		2,459,744		16,278		1.33				2,131,195		7,739		0.73
Federal funds purchased and repurchase agreements		16,517		203		2.48				136,974		1,173		1.73
FHLB advances		243,306		2,276		1.89				382,681		3,265		1.72
Subordinated debentures		78,810		2,270		5.81				78,671		2,270		5.82
Total borrowings		338,633		4,749		2.83				598,326		6,708		2.26
Total interest-bearing liabilities		2,798,377		21,027		1.52				2,729,521		14,447		1.07
Non-interest-bearing liabilities:
Demand deposits		1,349,476								1,264,186
Other liabilities		78,677								39,242
Total liabilities		4,226,530								4,032,949
Stockholders' equity		465,471								452,129
Total liabilities and stockholders' equity	$	4,692,001							$	4,485,078

Net interest rate spread						2.76		%						3.00		%
Net interest-earning assets	$	1,496,597							$	1,395,564
Net interest margin - tax-equivalent				70,157		3.29		%				68,790		3.36		%
Less: Tax-equivalent adjustment				(317	)	(0.01	)					(322	)	(0.01	)
Net interest income			$	69,840							$	68,468
Net interest margin						3.28		%						3.35		%

___________________________

(1) Presented on a tax-equivalent basis.

BRIDGE BANCORP, INC. AND SUBSIDIARIESNon-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 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									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2019			2019			2018			2019			2018
Return on average total assets - as reported	0.90		%	1.13		%	0.60		%	1.01		%	0.85		%
Net securities losses	—			—			0.71			—			0.35
Income tax effect of adjustments above	—			—			(0.16	)		—			(0.08	)
Adjusted return on average total assets (non-GAAP)	0.90			1.13			1.15			1.01			1.12

Return on average stockholders' equity - as reported	9.06		%	11.41		%	5.96		%	10.22		%	8.39		%
Net securities losses	—			—			7.01			—			3.53
Income tax effect of adjustments above	—			—			(1.54	)		—			(0.77	)
Adjusted return on average stockholders' equity (non-GAAP)	9.06			11.41			11.43			10.22			11.15

Return on average tangible common equity - as reported	11.82		%	15.01		%	7.90		%	13.38		%	11.12		%
Net securities losses	—			—			9.27			—			4.68
Amortization of other intangible assets	0.23			0.25			0.28			0.24			0.29
Income tax effect of adjustments above	(0.04	)		(0.05	)		(2.10	)		(0.05	)		(1.09	)
Adjusted return on average tangible common equity (non-GAAP)	12.01			15.21			15.35			13.57			15.00

BRIDGE BANCORP, INC. AND SUBSIDIARIESNon-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 net securities losses associated with the Company’s strategic plan to restructure its balance sheet during the second quarter of 2018:


	Three Months Ended							Six Months Ended
	June 30,		March 31,		June 30,			June 30,		June 30,
(Dollars in thousands, except per share amounts)	2019		2019		2018			2019		2018
Net income - as reported	$	10,653	$	12,927	$	6,743		$	23,580	$	18,816
Adjustments:
Net securities losses		—		—		7,921			—		7,921
Income tax effect of adjustments above		—		—		(1,742	)		—		(1,742	)
Adjusted net income (non-GAAP)	$	10,653	$	12,927	$	12,922		$	23,580	$	24,995

Diluted earnings per share - as reported	$	0.53	$	0.65	$	0.34		$	1.18	$	0.95
Adjustments:
Net securities losses		—		—		0.40			—		0.40
Income tax effect of adjustments above		—		—		(0.09	)		—		(0.09	)
Adjusted diluted earnings per share (non-GAAP)	$	0.53	$	0.65	$	0.65		$	1.18	$	1.26

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


	Three Months Ended												Six Months Ended
	June 30,				March 31,				June 30,				June 30,				June 30,
(Dollars in thousands, except per share amounts)	2019				2019				2018				2019				2018
Efficiency ratio - as reported		58.52		%		57.15		%		71.79		%		57.85		%		64.43		%
Non-interest expense - as reported	$	24,004			$	22,599			$	22,507			$	46,603			$	45,105
Less: Amortization of intangible assets		(210	)			(213	)			(242	)			(423	)			(488	)
Adjusted non-interest expense (non-GAAP)	$	23,794			$	22,386			$	22,265			$	46,180			$	44,617
Net interest income - as reported	$	35,517			$	34,323			$	33,929			$	69,840			$	68,468
Tax-equivalent adjustment		187				130				156				317				322
Net interest income, tax-equivalent basis	$	35,704			$	34,453			$	34,085			$	70,157			$	68,790
Non-interest income - as reported	$	5,499			$	5,218			$	(2,578	)		$	10,717			$	1,535
Less: Net securities losses/(gains)		(201	)			—				7,921				(201	)			7,921
Adjusted non-interest income (non-GAAP)	$	5,298			$	5,218			$	5,343			$	10,516			$	9,456
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)	$	41,002			$	39,671			$	39,428			$	80,673			$	78,246
Adjusted efficiency ratio (non-GAAP) (1)		58.03		%		56.43		%		56.47		%		57.24		%		57.02		%

_______________________________

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									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2019			2019			2018			2019			2018
Operating expense as a % of average assets - as reported	2.03		%	1.97		%	2.01		%	2.00		%	2.03		%
Amortization of other intangible assets	(0.02	)		(0.02	)		(0.02	)		(0.02	)		(0.02	)
Adjusted operating expense as a % of average assets (non-GAAP)	2.01			1.95			1.99			1.98			2.01

_______________________________

(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 SUBSIDIARIESNon-GAAP Financial Measures (unaudited)

The following table reconciles net interest margin (as reported) to adjusted net interest margin on a tax-equivalent basis, excluding accretion income and average purchase accounting adjustments on acquired loans (non-GAAP):


	Three Months Ended												Six Months Ended
	June 30,				March 31,				June 30,				June 30,				June 30,
(Dollars in thousands)	2019				2019				2018				2019				2018
Net interest income - as reported	$	35,517			$	34,323			$	33,929			$	69,840			$	68,468
Tax-equivalent adjustment		187				130				156				317				322
Net interest income, tax-equivalent basis	$	35,704			$	34,453			$	34,085			$	70,157			$	68,790
Adjustment:
Less: Accretion income on acquired loans		(713	)			(385	)			(625	)			(1,098	)			(2,584	)
Adjusted net interest income, tax-equivalent basis (non-GAAP)	$	34,991			$	34,068			$	33,460			$	69,059			$	66,206

Average interest-earning assets - as reported	$	4,336,147			$	4,253,344			$	4,129,817			$	4,294,974			$	4,125,085
Adjustment:
Average purchase accounting adjustments on acquired loans		4,592				4,941				6,758				4,766				7,938
Adjusted average interest-earning assets (non-GAAP)	$	4,340,739			$	4,258,285			$	4,136,575			$	4,299,740			$	4,133,023

Average yield on loans, tax-equivalent basis - as reported		4.76		%		4.66		%		4.52		%		4.71		%		4.57		%
Adjustment:
Purchase accounting adjustments on acquired loans		(0.10	)			(0.05	)			(0.09	)			(0.07	)			(0.18	)
Adjusted average yield on loans (non-GAAP)		4.66				4.61				4.43				4.64				4.39

Net interest margin - as reported (1)		3.29		%		3.27		%		3.30		%		3.28		%		3.35		%
Tax-equivalent adjustment		0.01				0.02				0.01				0.01				0.01
Net interest margin, tax-equivalent basis (2)		3.30				3.29				3.31				3.29				3.36
Adjustment:
Purchase accounting adjustments on acquired loans		(0.07	)			(0.05	)			(0.07	)			(0.05	)			(0.13	)
Adjusted net interest margin (non-GAAP) (3)		3.23				3.24				3.24				3.24				3.23

_______________________________

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


	June 30,				December 31,				June 30,
(Dollars in thousands)	2019				2018				2018
Total assets - as reported	$	4,714,535			$	4,700,744			$	4,414,785
Less: Goodwill and other intangible assets - as reported		(109,975	)			(110,324	)			(110,816	)
Tangible assets (non-GAAP)	$	4,604,560			$	4,590,420			$	4,303,969

Total stockholders' equity - as reported	$	475,205			$	453,830			$	439,755
Less: Goodwill and other intangible assets - as reported		(109,975	)			(110,324	)			(110,816	)
Tangible common equity (non-GAAP)	$	365,230			$	343,506			$	328,939

Tangible common equity to tangible assets (non-GAAP) (1)		7.9		%		7.5		%		7.6		%