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
ReturnsNet 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
IncomeInterest 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.
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Three Months Ended |
|
Change Compared To |
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| |
|
June 30, |
|
March 31, |
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
| Average yield on loans,
tax-equivalent basis - as reported |
|
3.82 |
% |
4.35 |
% |
4.76 |
% |
(53 |
) |
bp |
(94 |
) |
bp |
| Adjusted average yield on
loans (non-GAAP) |
|
4.06 |
|
4.35 |
|
4.76 |
|
(29 |
) |
|
(70 |
) |
|
| |
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|
|
|
|
|
| Net interest margin - as
reported (1) |
|
2.99 |
% |
3.25 |
% |
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
LossesThe 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
IncomeNon-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
ExpenseNon-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
ExpenseIncome 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
SheetTotal 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.
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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
QualityAsset 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
CallThe 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
SUBSIDIARIESCondensed
Consolidated Statements of Condition
(unaudited)(In thousands)
| |
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|
|
|
|
|
|
|
|
| |
|
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
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, |
|
|
|
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
| Selected
Financial Data: |
|
|
|
|
|
|
|
|
|
|
|
| Return on average total
assets |
|
0.72 |
% |
0.76 |
% |
0.90 |
% |
0.74 |
% |
1.01 |
% |
| 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
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, |
|
|
|
|
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
SUBSIDIARIESSupplemental
Financial InformationCondensed
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 |
|
|
|
|
|
|
|
Total liabilities |
|
|
4,945,229 |
|
|
|
|
|
|
|
4,226,530 |
|
|
|
|
|
|
| Stockholders' equity |
|
|
501,119 |
|
|
|
|
|
|
|
465,471 |
|
|
|
|
|
|
| Total liabilities and
stockholders' equity |
|
$ |
5,446,348 |
|
|
|
|
|
|
$ |
4,692,001 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest rate spread |
|
|
|
|
|
|
|
2.78 |
|
% |
|
|
|
|
|
|
2.76 |
|
% |
| Net interest-earning
assets |
|
$ |
1,938,602 |
|
|
|
|
|
|
$ |
1,496,597 |
|
|
|
|
|
|
| Net interest margin -
tax-equivalent |
|
|
|
|
|
77,287 |
|
|
3.12 |
|
% |
|
|
|
|
70,157 |
|
|
3.29 |
|
% |
| Less: Tax-equivalent
adjustment |
|
|
|
|
|
(205 |
) |
|
(0.01 |
) |
|
|
|
|
|
(317 |
) |
|
(0.01 |
) |
|
| Net interest income |
|
|
|
|
$ |
77,082 |
|
|
|
|
|
|
|
$ |
69,840 |
|
|
|
|
| Net interest margin |
|
|
|
|
|
|
|
3.11 |
|
% |
|
|
|
|
|
|
3.28 |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________
(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 table presents a reconciliation of
net interest income, non-interest income and non-interest expense
to pre-tax pre-provision net revenue (non-GAAP) and adjusted
pre-tax pre-provision net revenue (non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
(Dollars in thousands) |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
| Net interest income |
|
$ |
40,432 |
|
$ |
36,650 |
|
$ |
35,517 |
|
$ |
77,082 |
|
$ |
69,840 |
| Non-interest income |
|
|
2,252 |
|
|
5,217 |
|
|
5,499 |
|
|
7,469 |
|
|
10,717 |
| Total revenues |
|
|
42,684 |
|
|
41,867 |
|
|
41,016 |
|
|
84,551 |
|
|
80,557 |
| Non-interest expense |
|
|
24,399 |
|
|
24,843 |
|
|
24,004 |
|
|
49,242 |
|
|
46,603 |
| Pre-tax
pre-provision net revenue (non-GAAP) (1) |
|
$ |
18,285 |
|
$ |
17,024 |
|
$ |
17,012 |
|
$ |
35,309 |
|
$ |
33,954 |
| Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change in fair value of loans
held for sale |
|
|
2,643 |
|
|
— |
|
|
— |
|
|
2,643 |
|
|
— |
| Adjusted
pre-tax pre-provision net revenue (non-GAAP)
(2) |
|
$ |
20,928 |
|
$ |
17,024 |
|
$ |
17,012 |
|
$ |
37,952 |
|
$ |
33,954 |
____________________________
(1) The reported pre-tax pre-provision net
revenue is a non-GAAP measure calculated by adding GAAP net
interest income and GAAP non-interest income less GAAP non-interest
expense.(2) Adjusted pre-tax pre-provision net revenue is a
non-GAAP measure calculated by adding pre-tax pre-provision net
revenue less the change in fair value of loans held for sale.
The following table presents a reconciliation of
efficiency ratio (non-GAAP) 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) |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
Efficiency ratio - as reported (non-GAAP)
(1) |
|
|
57.16 |
|
% |
|
59.34 |
|
% |
|
58.52 |
|
% |
|
58.24 |
|
% |
|
57.85 |
|
% |
| Non-interest expense - as
reported |
|
$ |
24,399 |
|
|
$ |
24,843 |
|
|
$ |
24,004 |
|
|
$ |
49,242 |
|
|
$ |
46,603 |
|
|
|
Less: Amortization of intangible assets |
|
|
(177 |
) |
|
|
(181 |
) |
|
|
(210 |
) |
|
|
(358 |
) |
|
|
(423 |
) |
|
| Adjusted non-interest expense
(non-GAAP) |
|
$ |
24,222 |
|
|
$ |
24,662 |
|
|
$ |
23,794 |
|
|
$ |
48,884 |
|
|
$ |
46,180 |
|
|
| Net interest income - as
reported |
|
$ |
40,432 |
|
|
$ |
36,650 |
|
|
$ |
35,517 |
|
|
$ |
77,082 |
|
|
$ |
69,840 |
|
|
|
Tax-equivalent adjustment |
|
|
102 |
|
|
|
103 |
|
|
|
187 |
|
|
|
205 |
|
|
|
317 |
|
|
| Net interest income,
tax-equivalent basis |
|
$ |
40,534 |
|
|
$ |
36,753 |
|
|
$ |
35,704 |
|
|
$ |
77,287 |
|
|
$ |
70,157 |
|
|
| Non-interest income - as
reported |
|
$ |
2,252 |
|
|
$ |
5,217 |
|
|
$ |
5,499 |
|
|
$ |
7,469 |
|
|
$ |
10,717 |
|
|
|
Less: Net securities losses/(gains) |
|
|
— |
|
|
|
15 |
|
|
|
(201 |
) |
|
|
15 |
|
|
|
(201 |
) |
|
|
Less: Change in fair value of loans held for sale |
|
|
2,643 |
|
|
|
— |
|
|
|
— |
|
|
|
2,643 |
|
|
|
— |
|
|
| Adjusted non-interest income
(non-GAAP) |
|
$ |
4,895 |
|
|
$ |
5,232 |
|
|
$ |
5,298 |
|
|
$ |
10,127 |
|
|
$ |
10,516 |
|
|
| Adjusted total revenues for
adjusted efficiency ratio (non-GAAP) |
|
$ |
45,429 |
|
|
$ |
41,985 |
|
|
$ |
41,002 |
|
|
$ |
87,414 |
|
|
$ |
80,673 |
|
|
| Adjusted
efficiency ratio (non-GAAP) (2) |
|
|
53.32 |
|
% |
|
58.74 |
|
% |
|
58.03 |
|
% |
|
55.92 |
|
% |
|
57.24 |
|
% |
___________________________
(1) The reported efficiency ratio is a non-GAAP
measure calculated by dividing GAAP non-interest expense by the sum
of GAAP net interest income and GAAP non-interest income.(2) The
adjusted efficiency ratio is a non-GAAP measure 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 net interest income and average
adjustments on paycheck protection program loans (non-GAAP):
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
(Dollars in thousands) |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
Net interest income - as reported |
|
$ |
40,432 |
|
|
$ |
36,650 |
|
$ |
35,517 |
|
$ |
77,082 |
|
|
$ |
69,840 |
|
|
Tax-equivalent adjustment |
|
|
102 |
|
|
|
103 |
|
|
187 |
|
|
205 |
|
|
|
317 |
|
| Net interest income,
tax-equivalent basis |
|
$ |
40,534 |
|
|
$ |
36,753 |
|
$ |
35,704 |
|
$ |
77,287 |
|
|
$ |
70,157 |
|
| Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net interest income on PPP loans |
|
|
(4,614 |
) |
|
|
— |
|
|
— |
|
|
(4,614 |
) |
|
|
— |
|
| Adjusted net interest income,
tax-equivalent basis (non-GAAP) |
|
$ |
35,920 |
|
|
$ |
36,753 |
|
$ |
35,704 |
|
$ |
72,673 |
|
|
$ |
70,157 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average interest-earning
assets - as reported |
|
$ |
5,442,411 |
|
|
$ |
4,532,795 |
|
$ |
4,336,147 |
|
$ |
4,987,602 |
|
|
$ |
4,294,974 |
|
| Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average PPP loans |
|
|
(721,637 |
) |
|
|
— |
|
|
— |
|
|
(360,818 |
) |
|
|
— |
|
| Adjusted average
interest-earning assets (non-GAAP) |
|
$ |
4,720,774 |
|
|
$ |
4,532,795 |
|
$ |
4,336,147 |
|
$ |
4,626,784 |
|
|
$ |
4,294,974 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average yield on loans,
tax-equivalent basis - as reported |
|
|
3.82 |
|
% |
|
4.35 |
% |
|
4.76 |
% |
|
4.06 |
|
% |
|
4.71 |
% |
| Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP loans |
|
|
0.24 |
|
|
|
— |
|
|
— |
|
|
0.15 |
|
|
|
— |
|
| Adjusted average yield on
loans (non-GAAP) |
|
|
4.06 |
|
|
|
4.35 |
|
|
4.76 |
|
|
4.21 |
|
|
|
4.71 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest margin - as
reported (1) |
|
|
2.99 |
|
% |
|
3.25 |
% |
|
3.29 |
% |
|
3.11 |
|
% |
|
3.28 |
% |
|
Tax-equivalent adjustment |
|
|
0.01 |
|
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
|
0.01 |
|
| Net interest margin,
tax-equivalent basis (2) |
|
|
3.00 |
|
|
|
3.26 |
|
|
3.30 |
|
|
3.12 |
|
|
|
3.29 |
|
| Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP loans |
|
|
0.06 |
|
|
|
— |
|
|
— |
|
|
0.04 |
|
|
|
— |
|
| Adjusted net interest margin
(non-GAAP) (3) |
|
|
3.06 |
|
|
|
3.26 |
|
|
3.30 |
|
|
3.16 |
|
|
|
3.29 |
|
_______________________
(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.
BRIDGE BANCORP, INC. AND
SUBSIDIARIESNon-GAAP Financial
Measures (unaudited)
The following table presents a reconciliation of
return on average tangible common equity (as reported) and adjusted
return on average tangible common equity (non-GAAP).
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
| |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
Return on average tangible common equity - as
reported |
|
10.95 |
|
% |
9.59 |
|
% |
11.82 |
|
% |
10.27 |
|
% |
13.38 |
|
% |
| Amortization of other
intangible assets |
|
0.18 |
|
|
0.19 |
|
|
0.23 |
|
|
0.18 |
|
|
0.24 |
|
|
| Income tax effect of
adjustments above |
|
(0.03 |
) |
|
(0.04 |
) |
|
(0.04 |
) |
|
(0.03 |
) |
|
(0.05 |
) |
|
| Adjusted
return on average tangible common equity
(non-GAAP) |
|
11.10 |
|
|
9.74 |
|
|
12.01 |
|
|
10.42 |
|
|
13.57 |
|
|
____________________________
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, |
|
| |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
Operating expense as a % of average assets - as
reported |
|
1.66 |
|
% |
2.01 |
|
% |
2.03 |
|
% |
1.82 |
|
% |
2.00 |
|
% |
| 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) |
|
1.65 |
|
|
1.99 |
|
|
2.01 |
|
|
1.80 |
|
|
1.98 |
|
|
The following table presents the tangible common
equity to tangible assets calculation (non-GAAP):
| |
|
|
|
|
|
|
|
|
|
|
| |
|
June 30, |
|
December 31, |
|
June 30, |
|
|
(Dollars in thousands) |
|
2020 |
|
2019 |
|
2019 |
|
|
Total assets - as reported |
|
$ |
6,150,664 |
|
|
$ |
4,921,520 |
|
|
$ |
4,714,535 |
|
|
|
Less: Goodwill and other intangible assets - as reported |
|
|
(109,248 |
) |
|
|
(109,627 |
) |
|
|
(109,975 |
) |
|
| Tangible assets
(non-GAAP) |
|
$ |
6,041,416 |
|
|
$ |
4,811,893 |
|
|
$ |
4,604,560 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Total stockholders' equity -
as reported |
|
$ |
502,621 |
|
|
$ |
497,154 |
|
|
$ |
475,205 |
|
|
|
Less: Goodwill and other intangible assets - as reported |
|
|
(109,248 |
) |
|
|
(109,627 |
) |
|
|
(109,975 |
) |
|
| Tangible common equity
(non-GAAP) |
|
$ |
393,373 |
|
|
$ |
387,527 |
|
|
$ |
365,230 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Tangible
common equity to tangible assets (non-GAAP)
(1) |
|
|
6.5 |
|
% |
|
8.1 |
|
% |
|
7.9 |
|
% |
__________________________
(1) Calculated by dividing tangible common
equity by tangible assets.
|
Contact: |
John M. McCaffery |
|
|
Executive Vice President |
|
|
Chief Financial Officer |
|
|
(631) 537-1001, ext. 7290 |
Bridge Bancorp (NASDAQ:BDGE)
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