Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent
company of BNB Bank (“BNB”), today announced third quarter results
for 2020.
The Company's third quarter 2020 financial
results included:
- Net income for the 2020 third quarter of $13.1 million, or
$0.66 per diluted share, inclusive of pre-tax merger expenses of
$2.4 million, or $0.11 per diluted share after tax, related to the
Company’s merger with Dime Community Bancshares, Inc.
(“Dime”).
- Excluding merger expenses, adjusted net income was $15.4
million, or $0.77 per diluted share.
- Adjusted pre-tax pre-provision net revenue was $20.9 million
for the 2020 third quarter, flat compared to the linked quarter,
and a $2.2 million, or 12%, increase year-over-year.
- Net interest income grew $0.3 million compared to the linked
quarter, to $40.7 million, with a tax-equivalent net interest
margin of 2.83%, or 3.22% on an adjusted basis.
- Total assets increased to $6.3 billion at September 30, 2020,
3% higher than June 30, 2020.
- Total deposits increased $288.7 million, and the cost of total
deposits decreased 10 basis points, compared to the linked
quarter.
- Non-public, non-brokered deposit growth of $322.0 million, or
8%, compared to June 30, 2020, and $1.3 billion, or 56% annualized,
from December 31, 2019.
- Non-performing assets of $7.1 million at September 30, 2020,
$0.7 million lower than June 30, 2020 and $2.7 million higher than
December 31, 2019. Allowance for credit losses coverage to total
loans of 0.94% at September 30, 2020.
- Total remaining loan payment deferrals at October 25, 2020 were
$44 million, or 1.0%, of total loans held for investment.
- Provision for credit losses of $1.5 million, a decline of $3.0
million on a linked quarter basis.
- All capital ratios remain strong. Declared a dividend of $0.24
during the quarter.
Reflecting on the third quarter results, Kevin
O’Connor, President and CEO said, “Our strong quarterly results
reflect the solid foundations of our balance sheet and business
model. We continue to navigate this turbulent environment,
supporting our employees who, in turn, support our customers.
Additionally, we are working with our counterparts at Dime
Community Bank to deliver a smooth transition for our customers. I
want to thank all of the BNB employees-their ability to service our
customers at the highest level while dealing with the pandemic,
remote work, child-care issues, and a complicated integration,
speaks volumes about their dedication and commitment. I could not
be prouder to work with this group of professionals.”
Net Earnings and
ReturnsNet income in the 2020 third quarter was
$13.1 million, or $0.66 per diluted share, which was $2.4 million,
or $0.12 per diluted share higher than the 2020 second quarter,
driven primarily by growth in non-interest income and net interest
income, and lower provision for credit losses, partially offset by
higher non-interest expense. Excluding the impact of merger
expenses, net income for the 2020 third quarter was $15.4 million,
or $0.77 per diluted share. Net income for the nine months ended
September 30, 2020 was $33.1 million, or $1.66 per diluted share,
compared to $37.5 million, or $1.88 per diluted share, in 2019.
Returns on average assets and equity in the 2020
third quarter were 0.83% and 10.15%, respectively. Return on
average tangible common equity was 12.90% for the 2020 third
quarter (see reconciliation of this non-GAAP financial measure
provided elsewhere herein). The merger expenses incurred during the
quarter reduced returns on average assets, equity and tangible
common equity by approximately 15 basis points, 178 basis points,
and 238 basis points, respectively.
Net Interest
IncomeInterest income was $46.3 million in the
2020 third quarter, an increase of $0.4 million compared to the
2020 second quarter, primarily due to loan portfolio growth from
the Paycheck Protection Program (“PPP”), partially offset by lower
average yields in loans, securities, and deposits with banks.
Interest expense was $5.6 million in the 2020 third quarter, an
increase of $0.2 million compared to the 2020 second quarter,
primarily due to an increase in average deposits and average cost
of borrowings, partially offset by a decrease in average cost of
deposits.
The tax-equivalent net interest margin in the
2020 third quarter showed a decline of 17 basis points to 2.83%
from 3.00% in the linked quarter. 2020 third quarter loan yields
showed a decrease of 10 basis points to 3.72% from 3.82% in the
linked quarter.
|
|
Three Months Ended |
|
Change Compared To |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
June 30, |
|
September 30, |
|
|
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
|
2019 |
|
|
Average yield on loans, tax-equivalent basis |
|
|
3.72 |
% |
|
3.82 |
% |
|
4.73 |
% |
|
(10 |
) |
bp |
|
(101 |
) |
bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin - as
reported (1) |
|
|
2.82 |
% |
|
2.99 |
% |
|
3.39 |
% |
|
(17 |
) |
bp |
|
(57 |
) |
bp |
Net interest margin,
tax-equivalent basis (2) |
|
|
2.83 |
|
|
3.00 |
|
|
3.40 |
|
|
(17 |
) |
|
|
(57 |
) |
|
Adjusted net interest margin
(non-GAAP) (3) |
|
|
3.22 |
|
|
3.24 |
|
|
3.42 |
|
|
(2 |
) |
|
|
(20 |
) |
|
(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 deposits with banks and
PPP loans, divided by adjusted average interest-earning assets,
excluding deposits with banks and PPP loans.
Commenting on the net interest margin Mr.
O’Connor said, “The effects of the pandemic, and the economic and
fiscal response continue to weigh on our net interest margin. The
PPP forgiveness process has just started, and we are helping our
customers navigate the SBA procedures. As of September 30, 2020,
all PPP loans were still outstanding. Additionally, customers
continue to conserve their liquidity as evidenced by the continued
growth in deposits. Non-public customer deposits were up over $300
million quarter-over-quarter, which resulted in an outsized amount
of overnight funds earning about 10 basis points. Without this
excess liquidity and the PPP loans, the margin would have been
3.22% for the quarter. We continue to lower our already low deposit
costs dropping them by 10 basis points quarter-over-quarter. This
quarter we restructured our wholesale balance sheet, offsetting
securities gains with swap termination losses for a $136 thousand
net gain, which should positively impact the margin in the fourth
quarter.”
Provision for Credit
LossesThe provision for credit loss expense was
$1.5 million for the 2020 third quarter, $3.0 million lower than
the 2020 second quarter. The Company recorded additional expected
credit losses in the 2020 second quarter related to its estimate of
the economic impact of the COVID-19 pandemic. The Company
recognized net charge-offs of $1.4 million in the 2020 third
quarter, compared to net charge-offs of $0.3 million in the 2020
second quarter.
Non-Interest
IncomeNon-interest income was $6.8 million for
the 2020 third quarter, which was $4.5 million higher compared to
the 2020 second quarter, primarily attributable to net securities
gains, an increase in gain on sale of SBA loans in the 2020 third
quarter, and a decrease in the fair value of one loan held for sale
recorded in the 2020 second quarter, partially offset by a loss on
termination of swaps and a decrease in loan swap fees.
Additionally, there was an increase in title fees on a
year-over-year and linked quarter basis as real estate activity
increased in our eastern markets.
Non-Interest
ExpenseNon-interest expense for the 2020 third
quarter of $28.9 million was $4.5 million higher than the 2020
second quarter. The increase in the third quarter was primarily due
to higher salaries and benefits expense, related to an increase in
incentive accruals, and merger expenses. Excluding the impact of
merger expenses, total non-interest expense in the 2020 third
quarter would have been $26.6 million.
Income Tax
ExpenseIncome tax expense was $4.0 million in the
2020 third quarter, an increase of $0.9 million compared to the
2020 second quarter. The effective tax rate for the 2020 third
quarter was 23.4%, compared to 22.7% for the 2020 second quarter,
and 21.7% for the 2019 third quarter. The increase in the Company’s
effective tax rate resulted primarily from non-deductible merger
expenses in the 2020 third quarter.
Balance
SheetTotal assets were $6.3 billion at September
30, 2020, $171.7 million higher than June 30, 2020. The rise in
total assets compared to the linked quarter was largely
attributable to a $193.4 million increase in interest-earning
deposits with banks.
Total loans held for investment increased $18.6
million (2% annualized) to $4.6 billion during the 2020 third
quarter. Net deferred loan fees were $14.2 million at September 30,
2020, inclusive of $21.8 million remaining unamortized net loan
fees related to PPP loans. The allowance for credit losses was
$43.5 million at September 30, 2020, $0.1 million higher than June
30, 2020. The allowance as a percentage of loans was 0.94% at both
September 30, 2020 and June 30, 2020.
Total deposits increased $288.7 million (23%
annualized) to $5.4 billion during the 2020 third quarter. The
growth in total deposits was primarily due to a $190.9 million
increase in savings and NOW deposits. Demand deposits increased
$82.1 million during the 2020 third quarter to $2.2 billion at
September 30, 2020, representing 42% of total deposits.
Total stockholders’ equity was $512.2 million at
September 30, 2020, $9.6 million higher than June 30, 2020. The
growth reflects earnings, partially offset by shareholders’
dividends. 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 $25.94 at September
30, 2020, $0.47 higher than June 30, 2020. Tangible book value per
share was $20.40 at September 30, 2020, $0.47 higher than June 30,
2020 (see reconciliation of this non-GAAP financial measure
provided elsewhere herein).
Balance Sheet Highlights
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Change Compared To |
|
|
|
September 30, |
|
June 30, |
|
December 31, |
|
June 30, |
|
December 31, |
|
(Dollars in thousands) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
2020 |
|
|
2019 |
|
|
Total assets |
|
$ |
6,322,377 |
|
|
$ |
6,150,664 |
|
|
$ |
4,921,520 |
|
$ |
171,713 |
|
|
$ |
1,400,857 |
|
|
Total stockholders'
equity |
|
|
512,221 |
|
|
|
502,621 |
|
|
|
497,154 |
|
|
9,600 |
|
|
|
15,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor commercial real
estate ("CRE") |
|
$ |
1,097,290 |
|
|
$ |
1,064,623 |
|
|
$ |
1,034,599 |
|
$ |
32,667 |
|
|
$ |
62,691 |
|
|
Owner-occupied CRE |
|
|
532,597 |
|
|
|
528,118 |
|
|
|
531,088 |
|
|
4,479 |
|
|
|
1,509 |
|
|
Construction and land |
|
|
66,826 |
|
|
|
81,516 |
|
|
|
97,311 |
|
|
(14,690 |
) |
|
|
(30,485 |
) |
|
Commercial and industrial |
|
|
670,796 |
|
|
|
675,989 |
|
|
|
679,444 |
|
|
(5,193 |
) |
|
|
(8,648 |
) |
|
Paycheck Protection Program
("PPP") |
|
|
960,371 |
|
|
|
949,662 |
|
|
|
- |
|
|
10,709 |
|
|
|
960,371 |
|
|
Total commercial |
|
|
3,327,880 |
|
|
|
3,299,908 |
|
|
|
2,342,442 |
|
|
27,972 |
|
|
|
985,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family |
|
|
853,263 |
|
|
|
844,066 |
|
|
|
812,174 |
|
|
9,197 |
|
|
|
41,089 |
|
|
Residential real estate |
|
|
449,984 |
|
|
|
469,183 |
|
|
|
493,144 |
|
|
(19,199 |
) |
|
|
(43,160 |
) |
|
Installment and consumer |
|
|
22,520 |
|
|
|
24,953 |
|
|
|
24,836 |
|
|
(2,433 |
) |
|
|
(2,316 |
) |
|
Net deferred loan (fees)
costs |
|
|
(14,174 |
) |
|
|
(17,282 |
) |
|
|
7,689 |
|
|
3,108 |
|
|
|
(21,863 |
) |
|
Total loans held for
investment |
|
$ |
4,639,473 |
|
|
$ |
4,620,828 |
|
|
$ |
3,680,285 |
|
$ |
18,645 |
|
|
$ |
959,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total IPC deposits |
|
$ |
4,318,594 |
|
|
$ |
3,996,590 |
|
|
$ |
3,042,171 |
|
$ |
322,004 |
|
|
$ |
1,276,423 |
|
|
Brokered deposits |
|
|
122,543 |
|
|
|
194,019 |
|
|
|
164,034 |
|
|
(71,476 |
) |
|
|
(41,491 |
) |
|
Public deposits |
|
|
927,932 |
|
|
|
889,810 |
|
|
|
608,442 |
|
|
38,122 |
|
|
|
319,490 |
|
|
Total public and brokered
deposits |
|
|
1,050,475 |
|
|
|
1,083,829 |
|
|
|
772,476 |
|
|
(33,354 |
) |
|
|
277,999 |
|
|
Total deposits |
|
$ |
5,369,069 |
|
|
$ |
5,080,419 |
|
|
$ |
3,814,647 |
|
$ |
288,650 |
|
|
$ |
1,554,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan-to-deposit ratio |
|
|
86.41 |
|
% |
|
90.95 |
|
% |
|
96.48 |
% |
|
(4.54 |
) |
% |
|
(10.07 |
) |
% |
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) |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Investor CRE |
|
$ |
68,597 |
|
$ |
46,060 |
|
$ |
100,120 |
|
$ |
156,395 |
|
$ |
174,950 |
Owner-occupied CRE |
|
|
23,937 |
|
|
23,287 |
|
|
12,973 |
|
|
80,944 |
|
|
98,065 |
Commercial and industrial |
|
|
97,209 |
|
|
65,620 |
|
|
57,119 |
|
|
238,625 |
|
|
252,763 |
PPP |
|
|
10,666 |
|
|
949,729 |
|
|
— |
|
|
960,395 |
|
|
— |
Multi-family |
|
|
19,773 |
|
|
48,330 |
|
|
48,160 |
|
|
107,018 |
|
|
121,954 |
Residential real estate |
|
|
1,683 |
|
|
3,654 |
|
|
8,764 |
|
|
14,306 |
|
|
26,289 |
Other |
|
|
28,010 |
|
|
9,198 |
|
|
23,901 |
|
|
58,219 |
|
|
75,719 |
Total loan and line of credit
originations |
|
$ |
249,875 |
|
$ |
1,145,878 |
|
$ |
251,037 |
|
$ |
1,615,902 |
|
$ |
749,740 |
Asset
QualityAsset quality measures remained solid, as
non-performing assets were $7.1 million, or 0.11% of total assets,
at September 30, 2020, compared to $7.7 million, or 0.13% of total
assets, at June 30, 2020. Non-performing loans were $7.1 million,
or 0.15% of total loans at September 30, 2020, compared to $7.7
million, or 0.17% of total loans at June 30, 2020. Loans 30 to 89
days past due increased $5.6 million to $10.7 million at September
30, 2020, compared to $5.1 million at June 30, 2020. The increase
in 30 to 89 days past due loans compared to prior quarter is
primarily comprised of several residential loans.
Regarding asset quality and the current
environment, Mr. O’Connor stated, “As of October 25, 2020, there
were $44 million in loans that had not reached the end of their
forbearance agreements, which is about 1.0% of all loans as of the
end of the quarter. This will continue to be a focus of management
as we work closely with these customers to monitor their financial
health.”
Conference
CallThe Company will host a conference call on
Wednesday, October 28, 2020 at 10:00 AM (ET) to discuss the 2020
third quarter results.
Investors who would like to join the conference
call are encouraged to pre-register using the following link:
https://dpregister.com/sreg/10148363/d9dd3cf1e4.
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, November 11,
2020.
Call and replay information are as follows:
Call Date: Wednesday, October 28, 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: 10148363
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 $6.3 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
StatementsThis 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)
|
|
September 30, |
|
June 30, |
|
December 31, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
94,892 |
|
|
$ |
67,633 |
|
|
$ |
77,693 |
|
Interest-earning deposits with
banks |
|
|
615,575 |
|
|
|
422,148 |
|
|
|
39,501 |
|
Total cash and cash equivalents |
|
|
710,467 |
|
|
|
489,781 |
|
|
|
117,194 |
|
Securities available for sale,
at fair value |
|
|
466,081 |
|
|
|
537,746 |
|
|
|
638,291 |
|
Securities held to
maturity |
|
|
100,934 |
|
|
|
111,307 |
|
|
|
133,638 |
|
Total securities |
|
|
567,015 |
|
|
|
649,053 |
|
|
|
771,929 |
|
Securities, restricted |
|
|
23,362 |
|
|
|
28,987 |
|
|
|
32,879 |
|
Loans held for sale |
|
|
10,000 |
|
|
|
10,000 |
|
|
|
12,643 |
|
Loans held for investment |
|
|
4,639,473 |
|
|
|
4,620,828 |
|
|
|
3,680,285 |
|
Allowance for credit
losses |
|
|
(43,474 |
) |
|
|
(43,401 |
) |
|
|
(32,786 |
) |
Loans held for investment, net |
|
|
4,595,999 |
|
|
|
4,577,427 |
|
|
|
3,647,499 |
|
Premises and equipment,
net |
|
|
34,341 |
|
|
|
34,495 |
|
|
|
34,062 |
|
Operating lease right-of-use
assets |
|
|
44,642 |
|
|
|
40,434 |
|
|
|
43,450 |
|
Goodwill and other intangible
assets |
|
|
109,398 |
|
|
|
109,248 |
|
|
|
109,627 |
|
Accrued interest receivable
and other assets |
|
|
227,153 |
|
|
|
211,239 |
|
|
|
152,237 |
|
Total
assets |
|
$ |
6,322,377 |
|
|
$ |
6,150,664 |
|
|
$ |
4,921,520 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and stockholders' equity |
|
|
|
|
|
|
|
|
|
Demand deposits |
|
$ |
2,176,391 |
|
|
$ |
2,101,950 |
|
|
$ |
1,386,037 |
|
Savings and negotiable order
of withdrawal ("NOW") deposits |
|
|
686,310 |
|
|
|
495,421 |
|
|
|
438,902 |
|
Money market deposit accounts
("MMDA") |
|
|
1,265,136 |
|
|
|
1,202,125 |
|
|
|
1,012,322 |
|
Certificates of deposit of
less than $100,000 |
|
|
52,797 |
|
|
|
54,643 |
|
|
|
58,640 |
|
Certificates of deposit of
$100,000 or more |
|
|
137,960 |
|
|
|
142,451 |
|
|
|
146,270 |
|
Total individual, partnership and corporate ("IPC") deposits |
|
|
4,318,594 |
|
|
|
3,996,590 |
|
|
|
3,042,171 |
|
Brokered deposits |
|
|
122,543 |
|
|
|
194,019 |
|
|
|
164,034 |
|
Public funds - demand
deposits |
|
|
69,914 |
|
|
|
62,244 |
|
|
|
132,921 |
|
Public funds - other
deposits |
|
|
858,018 |
|
|
|
827,566 |
|
|
|
475,521 |
|
Total public and brokered deposits |
|
|
1,050,475 |
|
|
|
1,083,829 |
|
|
|
772,476 |
|
Total deposits |
|
|
5,369,069 |
|
|
|
5,080,419 |
|
|
|
3,814,647 |
|
Federal funds purchased and
repurchase agreements |
|
|
1,353 |
|
|
|
1,670 |
|
|
|
999 |
|
Federal Home Loan Bank
("FHLB") advances |
|
|
215,000 |
|
|
|
340,000 |
|
|
|
435,000 |
|
Subordinated debentures,
net |
|
|
79,024 |
|
|
|
78,990 |
|
|
|
78,920 |
|
Operating lease
liabilities |
|
|
47,383 |
|
|
|
43,131 |
|
|
|
45,977 |
|
Other liabilities and accrued
expenses |
|
|
98,327 |
|
|
|
103,833 |
|
|
|
48,823 |
|
Total liabilities |
|
|
5,810,156 |
|
|
|
5,648,043 |
|
|
|
4,424,366 |
|
Total stockholders'
equity |
|
|
512,221 |
|
|
|
502,621 |
|
|
|
497,154 |
|
Total
liabilities and stockholders' equity |
|
$ |
6,322,377 |
|
|
$ |
6,150,664 |
|
|
$ |
4,921,520 |
|
BRIDGE BANCORP, INC. AND
SUBSIDIARIESCondensed
Consolidated Statements of Income (unaudited)(In
thousands)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Interest income |
|
$ |
46,296 |
|
|
$ |
45,850 |
|
|
$ |
46,354 |
|
|
$ |
136,748 |
|
|
$ |
137,221 |
|
Interest expense |
|
|
5,589 |
|
|
|
5,418 |
|
|
|
9,639 |
|
|
|
18,959 |
|
|
|
30,666 |
|
Net interest income |
|
|
40,707 |
|
|
|
40,432 |
|
|
|
36,715 |
|
|
|
117,789 |
|
|
|
106,555 |
|
Provision for credit
losses |
|
|
1,500 |
|
|
|
4,500 |
|
|
|
1,000 |
|
|
|
11,000 |
|
|
|
5,100 |
|
Net interest income after provision for credit losses |
|
|
39,207 |
|
|
|
35,932 |
|
|
|
35,715 |
|
|
|
106,789 |
|
|
|
101,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and other fees |
|
|
2,215 |
|
|
|
1,889 |
|
|
|
2,588 |
|
|
|
6,604 |
|
|
|
7,572 |
|
Title fees |
|
|
695 |
|
|
|
385 |
|
|
|
508 |
|
|
|
1,409 |
|
|
|
1,149 |
|
Net securities gains |
|
|
3,540 |
|
|
|
— |
|
|
|
— |
|
|
|
3,525 |
|
|
|
201 |
|
Loss on termination of swaps |
|
|
(3,403 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3,403 |
) |
|
|
— |
|
Change in fair value of loans held for sale |
|
|
— |
|
|
|
(2,643 |
) |
|
|
— |
|
|
|
(2,643 |
) |
|
|
— |
|
Gain on sale of SBA loans |
|
|
2,191 |
|
|
|
469 |
|
|
|
601 |
|
|
|
3,031 |
|
|
|
1,662 |
|
Bank owned life insurance |
|
|
543 |
|
|
|
547 |
|
|
|
561 |
|
|
|
1,638 |
|
|
|
1,670 |
|
Loan swap fees |
|
|
554 |
|
|
|
1,320 |
|
|
|
1,557 |
|
|
|
3,105 |
|
|
|
3,200 |
|
Other |
|
|
455 |
|
|
|
285 |
|
|
|
429 |
|
|
|
993 |
|
|
|
1,507 |
|
Total non-interest income |
|
|
6,790 |
|
|
|
2,252 |
|
|
|
6,244 |
|
|
|
14,259 |
|
|
|
16,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
16,406 |
|
|
|
13,919 |
|
|
|
14,294 |
|
|
|
45,874 |
|
|
|
41,233 |
|
Occupancy and equipment |
|
|
3,599 |
|
|
|
3,520 |
|
|
|
3,490 |
|
|
|
10,618 |
|
|
|
10,581 |
|
Merger expenses |
|
|
2,352 |
|
|
|
— |
|
|
|
— |
|
|
|
2,352 |
|
|
|
— |
|
Amortization of other intangible assets |
|
|
149 |
|
|
|
177 |
|
|
|
182 |
|
|
|
507 |
|
|
|
605 |
|
Other |
|
|
6,431 |
|
|
|
6,783 |
|
|
|
6,238 |
|
|
|
18,828 |
|
|
|
18,388 |
|
Total non-interest expense |
|
|
28,937 |
|
|
|
24,399 |
|
|
|
24,204 |
|
|
|
78,179 |
|
|
|
70,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
17,060 |
|
|
|
13,785 |
|
|
|
17,755 |
|
|
|
42,869 |
|
|
|
47,609 |
|
Income tax expense |
|
|
3,999 |
|
|
|
3,129 |
|
|
|
3,852 |
|
|
|
9,804 |
|
|
|
10,126 |
|
Net income |
|
$ |
13,061 |
|
|
$ |
10,656 |
|
|
$ |
13,903 |
|
|
$ |
33,065 |
|
|
$ |
37,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net income |
|
$ |
13,061 |
|
|
$ |
10,656 |
|
|
$ |
13,903 |
|
|
$ |
33,065 |
|
|
$ |
37,483 |
|
Dividends paid on and earnings
allocated to participating securities |
|
|
(276 |
) |
|
|
(218 |
) |
|
|
(294 |
) |
|
|
(689 |
) |
|
|
(797 |
) |
Income attributable to common
stock |
|
$ |
12,785 |
|
|
$ |
10,438 |
|
|
$ |
13,609 |
|
|
$ |
32,376 |
|
|
$ |
36,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding, including participating securities |
|
|
19,896 |
|
|
|
19,861 |
|
|
|
19,958 |
|
|
|
19,901 |
|
|
|
19,950 |
|
Weighted average participating
securities |
|
|
(423 |
) |
|
|
(409 |
) |
|
|
(422 |
) |
|
|
(415 |
) |
|
|
(425 |
) |
Weighted average common shares
outstanding |
|
|
19,473 |
|
|
|
19,452 |
|
|
|
19,536 |
|
|
|
19,486 |
|
|
|
19,525 |
|
Basic earnings per common
share |
|
$ |
0.66 |
|
|
$ |
0.54 |
|
|
$ |
0.70 |
|
|
$ |
1.66 |
|
|
$ |
1.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding |
|
|
19,473 |
|
|
|
19,452 |
|
|
|
19,536 |
|
|
|
19,486 |
|
|
|
19,525 |
|
Incremental shares from
assumed conversions of options and restricted stock units |
|
|
41 |
|
|
|
36 |
|
|
|
32 |
|
|
|
36 |
|
|
|
27 |
|
Weighted average common and
equivalent shares outstanding |
|
|
19,514 |
|
|
|
19,488 |
|
|
|
19,568 |
|
|
|
19,522 |
|
|
|
19,552 |
|
Diluted earnings per common
share |
|
$ |
0.66 |
|
|
$ |
0.54 |
|
|
$ |
0.70 |
|
|
$ |
1.66 |
|
|
$ |
1.88 |
|
BRIDGE BANCORP, INC. AND
SUBSIDIARIESConsolidated
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, |
|
|
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Selected
Financial Data: |
|
|
|
|
|
|
|
|
|
|
|
Return on average total
assets |
|
0.83 |
% |
0.72 |
% |
1.17 |
% |
0.77 |
% |
1.07 |
% |
Adjusted return on average
total assets (1) |
|
0.98 |
|
0.72 |
|
1.17 |
|
0.83 |
|
1.07 |
|
Return on average
stockholders' equity |
|
10.15 |
|
8.56 |
|
11.44 |
|
8.75 |
|
10.64 |
|
Adjusted return on average
stockholders' equity (1) |
|
11.93 |
|
8.56 |
|
11.44 |
|
9.36 |
|
10.64 |
|
Return on average tangible
common equity (1) (2) |
|
12.90 |
|
10.95 |
|
14.81 |
|
11.17 |
|
13.88 |
|
Adjusted return on average
tangible common equity (1) (2) |
|
15.28 |
|
11.10 |
|
14.97 |
|
12.08 |
|
14.06 |
|
Net interest rate spread,
tax-equivalent basis |
|
2.55 |
|
2.72 |
|
2.88 |
|
2.69 |
|
2.81 |
|
Net interest margin,
tax-equivalent basis |
|
2.83 |
|
3.00 |
|
3.40 |
|
3.01 |
|
3.33 |
|
Average interest-earning
assets to average interest-bearing liabilities |
|
169.28 |
|
169.70 |
|
157.94 |
|
165.63 |
|
154.96 |
|
Efficiency ratio |
|
60.92 |
|
57.16 |
|
56.34 |
|
59.20 |
|
57.33 |
|
Adjusted efficiency ratio
(1) |
|
55.71 |
|
53.32 |
|
55.79 |
|
55.85 |
|
56.74 |
|
Operating expense/average
assets |
|
1.84 |
|
1.66 |
|
2.04 |
|
1.83 |
|
2.02 |
|
Adjusted operating
expense/average assets (1) |
|
1.68 |
|
1.65 |
|
2.03 |
|
1.76 |
|
2.00 |
|
(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, |
|
June 30, |
|
December 31, |
|
|
|
2020 |
|
2020 |
|
2019 |
|
Selected Financial Data: |
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
25.94 |
|
$ |
25.47 |
|
$ |
25.06 |
|
Tangible book value per share
(1) |
|
$ |
20.40 |
|
$ |
19.93 |
|
$ |
19.54 |
|
Common shares outstanding |
|
|
19,749 |
|
|
19,734 |
|
|
19,837 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
Total capital to risk-weighted
assets |
|
|
13.3 |
% |
|
13.2 |
% |
|
13.1 |
% |
Tier 1 capital to
risk-weighted assets |
|
|
10.3 |
|
|
10.2 |
|
|
10.2 |
|
Common equity Tier 1 capital
to risk-weighted assets |
|
|
10.3 |
|
|
10.2 |
|
|
10.2 |
|
Tier 1 capital to average
assets |
|
|
6.8 |
|
|
7.0 |
|
|
8.5 |
|
Tangible common equity to
tangible assets (1) (2) |
|
|
6.5 |
|
|
6.5 |
|
|
8.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios
- Bank Only: |
|
|
|
|
|
|
|
|
|
|
Total capital to risk-weighted
assets |
|
|
13.2 |
% |
|
13.1 |
% |
|
13.0 |
% |
Tier 1 capital to
risk-weighted assets |
|
|
12.2 |
|
|
12.1 |
|
|
12.1 |
|
Common equity Tier 1 capital
to risk-weighted assets |
|
|
12.2 |
|
|
12.1 |
|
|
12.1 |
|
Tier 1 capital to average
assets |
|
|
8.1 |
|
|
8.4 |
|
|
10.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality: |
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days past due |
|
$ |
10,682 |
|
$ |
5,080 |
|
$ |
6,366 |
|
Loans 90 days past due and
accruing |
|
$ |
— |
|
$ |
— |
|
$ |
343 |
|
Non-performing loans/
Non-performing assets |
|
$ |
7,064 |
|
$ |
7,731 |
|
$ |
4,369 |
|
Non-performing loans/total
loans |
|
|
0.15 |
% |
|
0.17 |
% |
|
0.12 |
% |
Non-performing assets/total
assets |
|
|
0.11 |
|
|
0.13 |
|
|
0.09 |
|
Allowance/non-performing
loans |
|
|
615.43 |
|
|
561.39 |
|
|
750.42 |
|
Allowance/total loans |
|
|
0.94 |
|
|
0.94 |
|
|
0.89 |
|
(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
September 30, |
|
Three Months Ended June 30, |
|
Three Months Ended September 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) |
|
$ |
4,612,125 |
|
$ |
43,108 |
|
|
3.72 |
|
% |
$ |
4,429,423 |
|
$ |
42,044 |
|
|
3.82 |
|
% |
$ |
3,442,462 |
|
$ |
41,053 |
|
|
4.73 |
|
% |
Securities (1) |
|
|
596,981 |
|
|
3,144 |
|
|
2.10 |
|
|
|
647,218 |
|
|
3,796 |
|
|
2.36 |
|
|
|
787,387 |
|
|
5,060 |
|
|
2.55 |
|
|
Deposits with banks |
|
|
531,205 |
|
|
135 |
|
|
0.10 |
|
|
|
365,770 |
|
|
112 |
|
|
0.12 |
|
|
|
61,853 |
|
|
342 |
|
|
2.19 |
|
|
Total interest-earning assets (1) |
|
|
5,740,311 |
|
|
46,387 |
|
|
3.21 |
|
|
|
5,442,411 |
|
|
45,952 |
|
|
3.40 |
|
|
|
4,291,702 |
|
|
46,455 |
|
|
4.29 |
|
|
Non-interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
509,574 |
|
|
|
|
|
|
|
471,232 |
|
|
|
|
|
|
|
412,300 |
|
|
|
|
|
|
Total assets |
|
$ |
6,249,885 |
|
|
|
|
|
|
$ |
5,913,643 |
|
|
|
|
|
|
$ |
4,704,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
353,624 |
|
$ |
72 |
|
|
0.08 |
|
% |
$ |
317,346 |
|
$ |
95 |
|
|
0.12 |
|
% |
$ |
433,086 |
|
$ |
1,083 |
|
|
0.99 |
|
% |
NOW |
|
|
219,275 |
|
|
29 |
|
|
0.05 |
|
|
|
131,650 |
|
|
26 |
|
|
0.08 |
|
|
|
125,056 |
|
|
51 |
|
|
0.16 |
|
|
MMDA |
|
|
1,247,455 |
|
|
1,016 |
|
|
0.32 |
|
|
|
1,151,830 |
|
|
1,135 |
|
|
0.40 |
|
|
|
1,034,002 |
|
|
3,452 |
|
|
1.32 |
|
|
Savings, NOW and MMDA |
|
|
1,820,354 |
|
|
1,117 |
|
|
0.24 |
|
|
|
1,600,826 |
|
|
1,256 |
|
|
0.32 |
|
|
|
1,592,144 |
|
|
4,586 |
|
|
1.14 |
|
|
Certificates of deposit of less than $100,000 |
|
|
53,813 |
|
|
155 |
|
|
1.15 |
|
|
|
56,603 |
|
|
214 |
|
|
1.52 |
|
|
|
60,144 |
|
|
299 |
|
|
1.97 |
|
|
Certificates of deposit of $100,000 or more |
|
|
140,982 |
|
|
387 |
|
|
1.09 |
|
|
|
147,706 |
|
|
575 |
|
|
1.57 |
|
|
|
152,093 |
|
|
844 |
|
|
2.20 |
|
|
Total IPC deposits |
|
|
2,015,149 |
|
|
1,659 |
|
|
0.33 |
|
|
|
1,805,135 |
|
|
2,045 |
|
|
0.46 |
|
|
|
1,804,381 |
|
|
5,729 |
|
|
1.26 |
|
|
Brokered deposits |
|
|
139,760 |
|
|
339 |
|
|
0.96 |
|
|
|
210,393 |
|
|
454 |
|
|
0.87 |
|
|
|
75,410 |
|
|
387 |
|
|
2.04 |
|
|
Public funds |
|
|
825,734 |
|
|
1,049 |
|
|
0.51 |
|
|
|
769,815 |
|
|
1,060 |
|
|
0.55 |
|
|
|
500,440 |
|
|
1,139 |
|
|
0.90 |
|
|
Total public and brokered deposits |
|
|
965,494 |
|
|
1,388 |
|
|
0.57 |
|
|
|
980,208 |
|
|
1,514 |
|
|
0.62 |
|
|
|
575,850 |
|
|
1,526 |
|
|
1.05 |
|
|
Total deposits |
|
|
2,980,643 |
|
|
3,047 |
|
|
0.41 |
|
|
|
2,785,343 |
|
|
3,559 |
|
|
0.51 |
|
|
|
2,380,231 |
|
|
7,255 |
|
|
1.21 |
|
|
Federal funds purchased and repurchase agreements |
|
|
1,793 |
|
|
— |
|
|
— |
|
|
|
1,659 |
|
|
1 |
|
|
0.24 |
|
|
|
14,160 |
|
|
70 |
|
|
1.96 |
|
|
FHLB advances |
|
|
329,674 |
|
|
1,407 |
|
|
1.70 |
|
|
|
341,099 |
|
|
723 |
|
|
0.85 |
|
|
|
244,011 |
|
|
1,179 |
|
|
1.92 |
|
|
Subordinated debentures |
|
|
79,003 |
|
|
1,135 |
|
|
5.72 |
|
|
|
78,968 |
|
|
1,135 |
|
|
5.78 |
|
|
|
78,862 |
|
|
1,135 |
|
|
5.71 |
|
|
Total borrowings |
|
|
410,470 |
|
|
2,542 |
|
|
2.46 |
|
|
|
421,726 |
|
|
1,859 |
|
|
1.77 |
|
|
|
337,033 |
|
|
2,384 |
|
|
2.81 |
|
|
Total interest-bearing
liabilities |
|
|
3,391,113 |
|
|
5,589 |
|
|
0.66 |
|
|
|
3,207,069 |
|
|
5,418 |
|
|
0.68 |
|
|
|
2,717,264 |
|
|
9,639 |
|
|
1.41 |
|
|
Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
2,193,615 |
|
|
|
|
|
|
|
2,061,371 |
|
|
|
|
|
|
|
1,417,159 |
|
|
|
|
|
|
Other liabilities |
|
|
153,102 |
|
|
|
|
|
|
|
144,541 |
|
|
|
|
|
|
|
87,313 |
|
|
|
|
|
|
Total liabilities |
|
|
5,737,830 |
|
|
|
|
|
|
|
5,412,981 |
|
|
|
|
|
|
|
4,221,736 |
|
|
|
|
|
|
Stockholders' equity |
|
|
512,055 |
|
|
|
|
|
|
|
500,662 |
|
|
|
|
|
|
|
482,266 |
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
|
$ |
6,249,885 |
|
|
|
|
|
|
$ |
5,913,643 |
|
|
|
|
|
|
$ |
4,704,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
2.55 |
|
% |
|
|
|
|
|
|
2.72 |
|
% |
|
|
|
|
|
|
2.88 |
|
% |
Net interest-earning
assets |
|
$ |
2,349,198 |
|
|
|
|
|
|
$ |
2,235,342 |
|
|
|
|
|
|
$ |
1,574,438 |
|
|
|
|
|
|
Net interest margin -
tax-equivalent |
|
|
|
|
|
40,798 |
|
|
2.83 |
|
% |
|
|
|
|
40,534 |
|
|
3.00 |
|
% |
|
|
|
|
36,816 |
|
|
3.40 |
|
% |
Less: Tax-equivalent
adjustment |
|
|
|
|
|
(91 |
) |
|
(0.01 |
) |
|
|
|
|
|
(102 |
) |
|
(0.01 |
) |
|
|
|
|
|
(101 |
) |
|
(0.01 |
) |
|
Net interest income |
|
|
|
|
$ |
40,707 |
|
|
|
|
|
|
|
$ |
40,432 |
|
|
|
|
|
|
|
$ |
36,715 |
|
|
|
|
Net interest margin |
|
|
|
|
|
|
|
2.82 |
|
% |
|
|
|
|
|
|
2.99 |
|
% |
|
|
|
|
|
|
3.39 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
Nine Months Ended
September 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) |
|
$ |
4,240,881 |
|
$ |
124,962 |
|
|
3.94 |
|
% |
$ |
3,364,574 |
|
$ |
118,712 |
|
|
4.72 |
|
% |
Securities (1) |
|
|
669,100 |
|
|
11,568 |
|
|
2.31 |
|
|
|
844,057 |
|
|
17,442 |
|
|
2.76 |
|
|
Deposits with banks |
|
|
330,355 |
|
|
514 |
|
|
0.21 |
|
|
|
85,241 |
|
|
1,485 |
|
|
2.33 |
|
|
Total interest-earning assets (1) |
|
|
5,240,336 |
|
|
137,044 |
|
|
3.49 |
|
|
|
4,293,872 |
|
|
137,639 |
|
|
4.29 |
|
|
Non-interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
475,813 |
|
|
|
|
|
|
|
402,174 |
|
|
|
|
|
|
Total assets |
|
$ |
5,716,149 |
|
|
|
|
|
|
$ |
4,696,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
325,039 |
|
$ |
355 |
|
|
0.15 |
|
% |
$ |
425,265 |
|
$ |
3,219 |
|
|
1.01 |
|
% |
NOW |
|
|
161,165 |
|
|
101 |
|
|
0.08 |
|
|
|
118,530 |
|
|
140 |
|
|
0.16 |
|
|
MMDA |
|
|
1,150,020 |
|
|
4,560 |
|
|
0.53 |
|
|
|
1,010,304 |
|
|
10,878 |
|
|
1.44 |
|
|
Savings, NOW and
MMDA |
|
|
1,636,224 |
|
|
5,016 |
|
|
0.41 |
|
|
|
1,554,099 |
|
|
14,237 |
|
|
1.22 |
|
|
Certificates of
deposit of less than $100,000 |
|
|
56,324 |
|
|
635 |
|
|
1.51 |
|
|
|
60,796 |
|
|
845 |
|
|
1.86 |
|
|
Certificates of
deposit of $100,000 or more |
|
|
144,630 |
|
|
1,676 |
|
|
1.55 |
|
|
|
151,675 |
|
|
2,382 |
|
|
2.10 |
|
|
Total IPC deposits |
|
|
1,837,178 |
|
|
7,327 |
|
|
0.53 |
|
|
|
1,766,570 |
|
|
17,464 |
|
|
1.32 |
|
|
Brokered
deposits |
|
|
172,107 |
|
|
1,485 |
|
|
1.15 |
|
|
|
139,356 |
|
|
2,368 |
|
|
2.27 |
|
|
Public funds |
|
|
756,514 |
|
|
3,500 |
|
|
0.62 |
|
|
|
527,022 |
|
|
3,701 |
|
|
0.94 |
|
|
Total public and brokered deposits |
|
|
928,621 |
|
|
4,985 |
|
|
0.72 |
|
|
|
666,378 |
|
|
6,069 |
|
|
1.22 |
|
|
Total deposits |
|
|
2,765,799 |
|
|
12,312 |
|
|
0.59 |
|
|
|
2,432,948 |
|
|
23,533 |
|
|
1.29 |
|
|
Federal funds purchased and repurchase agreements |
|
|
10,975 |
|
|
79 |
|
|
0.96 |
|
|
|
15,722 |
|
|
273 |
|
|
2.32 |
|
|
FHLB advances |
|
|
308,128 |
|
|
3,163 |
|
|
1.37 |
|
|
|
243,544 |
|
|
3,455 |
|
|
1.90 |
|
|
Subordinated debentures |
|
|
78,968 |
|
|
3,405 |
|
|
5.76 |
|
|
|
78,828 |
|
|
3,405 |
|
|
5.78 |
|
|
Total borrowings |
|
|
398,071 |
|
|
6,647 |
|
|
2.23 |
|
|
|
338,094 |
|
|
7,133 |
|
|
2.82 |
|
|
Total interest-bearing
liabilities |
|
|
3,163,870 |
|
|
18,959 |
|
|
0.80 |
|
|
|
2,771,042 |
|
|
30,666 |
|
|
1.48 |
|
|
Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
1,910,686 |
|
|
|
|
|
|
|
1,372,285 |
|
|
|
|
|
|
Other liabilities |
|
|
136,802 |
|
|
|
|
|
|
|
81,588 |
|
|
|
|
|
|
Total liabilities |
|
|
5,211,358 |
|
|
|
|
|
|
|
4,224,915 |
|
|
|
|
|
|
Stockholders' equity |
|
|
504,791 |
|
|
|
|
|
|
|
471,131 |
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
|
$ |
5,716,149 |
|
|
|
|
|
|
$ |
4,696,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
2.69 |
|
% |
|
|
|
|
|
|
2.81 |
|
% |
Net interest-earning
assets |
|
$ |
2,076,466 |
|
|
|
|
|
|
$ |
1,522,830 |
|
|
|
|
|
|
Net interest margin -
tax-equivalent |
|
|
|
|
|
118,085 |
|
|
3.01 |
|
% |
|
|
|
|
106,973 |
|
|
3.33 |
|
% |
Less: Tax-equivalent
adjustment |
|
|
|
|
|
(296 |
) |
|
(0.01 |
) |
|
|
|
|
|
(418 |
) |
|
(0.01 |
) |
|
Net interest income |
|
|
|
|
$ |
117,789 |
|
|
|
|
|
|
|
$ |
106,555 |
|
|
|
|
Net interest margin |
|
|
|
|
|
|
|
3.00 |
|
% |
|
|
|
|
|
|
3.32 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 merger expenses associated with the Company’s proposed
merger with Dime. Tax deductible adjustments to net income are
taxed at the Company’s statutory tax rate of approximately 29%.
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Return on
average total assets - as reported |
|
0.83 |
|
% |
0.72 |
|
% |
1.17 |
|
% |
0.77 |
|
% |
1.07 |
|
% |
Merger expenses |
|
0.15 |
|
|
— |
|
|
— |
|
|
0.06 |
|
|
— |
|
|
Income tax effect of
adjustment above |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Adjusted
return on average total assets (non-GAAP) |
|
0.98 |
|
|
0.72 |
|
|
1.17 |
|
|
0.83 |
|
|
1.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average stockholders' equity - as reported |
|
10.15 |
|
% |
8.56 |
|
% |
11.44 |
|
% |
8.75 |
|
% |
10.64 |
|
% |
Merger expenses |
|
1.83 |
|
|
— |
|
|
— |
|
|
0.62 |
|
|
— |
|
|
Income tax effect of
adjustment above |
|
(0.05 |
) |
|
— |
|
|
— |
|
|
(0.01 |
) |
|
— |
|
|
Adjusted
return on average stockholders' equity
(non-GAAP) |
|
11.93 |
|
|
8.56 |
|
|
11.44 |
|
|
9.36 |
|
|
10.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average tangible common equity - as reported |
|
12.90 |
|
% |
10.95 |
|
% |
14.81 |
|
% |
11.17 |
|
% |
13.88 |
|
% |
Merger expenses |
|
2.32 |
|
|
— |
|
|
— |
|
|
0.79 |
|
|
— |
|
|
Amortization of other
intangible assets |
|
0.15 |
|
|
0.18 |
|
|
0.19 |
|
|
0.17 |
|
|
0.23 |
|
|
Income tax effect of
adjustments above |
|
(0.09 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
Adjusted
return on average tangible common equity
(non-GAAP) |
|
15.28 |
|
|
11.10 |
|
|
14.97 |
|
|
12.08 |
|
|
14.06 |
|
|
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 merger expenses:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars in thousands, except per share amounts) |
|
2020 |
|
|
2020 |
|
2019 |
|
2020 |
|
|
2019 |
Net income - as reported |
|
$ |
13,061 |
|
|
$ |
10,656 |
|
$ |
13,903 |
|
$ |
33,065 |
|
|
$ |
37,483 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger expenses |
|
|
2,352 |
|
|
|
— |
|
|
— |
|
|
2,352 |
|
|
|
— |
Income tax effect of adjustment above |
|
|
(58 |
) |
|
|
— |
|
|
— |
|
|
(58 |
) |
|
|
— |
Adjusted net
income (non-GAAP) |
|
$ |
15,355 |
|
|
$ |
10,656 |
|
$ |
13,903 |
|
$ |
35,359 |
|
|
$ |
37,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share - as reported |
|
$ |
0.66 |
|
|
$ |
0.54 |
|
$ |
0.70 |
|
$ |
1.66 |
|
|
$ |
1.88 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger expenses |
|
|
0.11 |
|
|
|
— |
|
|
— |
|
|
0.11 |
|
|
|
— |
Income tax effect of adjustment above |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
Adjusted
diluted earnings per share (non-GAAP) |
|
$ |
0.77 |
|
|
$ |
0.54 |
|
$ |
0.70 |
|
$ |
1.77 |
|
|
$ |
1.88 |
BRIDGE BANCORP, INC. AND
SUBSIDIARIESNon-GAAP Financial
Measures (unaudited)
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 |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net interest income |
|
$ |
40,707 |
|
$ |
40,432 |
|
$ |
36,715 |
|
$ |
117,789 |
|
$ |
106,555 |
Non-interest income |
|
|
6,790 |
|
|
2,252 |
|
|
6,244 |
|
|
14,259 |
|
|
16,961 |
Total revenues |
|
|
47,497 |
|
|
42,684 |
|
|
42,959 |
|
|
132,048 |
|
|
123,516 |
Non-interest expense |
|
|
28,937 |
|
|
24,399 |
|
|
24,204 |
|
|
78,179 |
|
|
70,807 |
Pre-tax
pre-provision net revenue (non-GAAP) (1) |
|
$ |
18,560 |
|
$ |
18,285 |
|
$ |
18,755 |
|
$ |
53,869 |
|
$ |
52,709 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of loans
held for sale |
|
|
— |
|
|
2,643 |
|
|
— |
|
|
2,643 |
|
|
— |
Merger expenses |
|
|
2,352 |
|
|
— |
|
|
— |
|
|
2,352 |
|
|
— |
Adjusted
pre-tax pre-provision net revenue (non-GAAP)
(2) |
|
$ |
20,912 |
|
$ |
20,928 |
|
$ |
18,755 |
|
$ |
58,864 |
|
$ |
52,709 |
(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) The 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 and
merger expenses.
The following table presents a reconciliation of
efficiency ratio (non-GAAP) 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) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Efficiency ratio - as reported (non-GAAP)
(1) |
|
|
60.92 |
|
% |
|
57.16 |
|
% |
|
56.34 |
|
% |
|
59.20 |
|
% |
|
57.33 |
|
% |
Non-interest expense - as
reported |
|
$ |
28,937 |
|
|
$ |
24,399 |
|
|
$ |
24,204 |
|
|
$ |
78,179 |
|
|
$ |
70,807 |
|
|
Less: Merger expenses |
|
|
(2,352 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,352 |
) |
|
|
— |
|
|
Less: Amortization of intangible assets |
|
|
(149 |
) |
|
|
(177 |
) |
|
|
(182 |
) |
|
|
(507 |
) |
|
|
(605 |
) |
|
Adjusted non-interest expense
(non-GAAP) |
|
$ |
26,436 |
|
|
$ |
24,222 |
|
|
$ |
24,022 |
|
|
$ |
75,320 |
|
|
$ |
70,202 |
|
|
Net interest income - as
reported |
|
$ |
40,707 |
|
|
$ |
40,432 |
|
|
$ |
36,715 |
|
|
$ |
117,789 |
|
|
$ |
106,555 |
|
|
Tax-equivalent adjustment |
|
|
91 |
|
|
|
102 |
|
|
|
101 |
|
|
|
296 |
|
|
|
418 |
|
|
Net interest income,
tax-equivalent basis |
|
$ |
40,798 |
|
|
$ |
40,534 |
|
|
$ |
36,816 |
|
|
$ |
118,085 |
|
|
$ |
106,973 |
|
|
Non-interest income - as
reported |
|
$ |
6,790 |
|
|
$ |
2,252 |
|
|
$ |
6,244 |
|
|
$ |
14,259 |
|
|
$ |
16,961 |
|
|
Less: Net securities gains |
|
|
(3,540 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3,525 |
) |
|
|
(201 |
) |
|
Less: Loss on termination of swaps |
|
|
3,403 |
|
|
|
— |
|
|
|
— |
|
|
|
3,403 |
|
|
|
— |
|
|
Less: Change in fair value of loans held for sale |
|
|
— |
|
|
|
2,643 |
|
|
|
— |
|
|
|
2,643 |
|
|
|
— |
|
|
Adjusted non-interest income
(non-GAAP) |
|
$ |
6,653 |
|
|
$ |
4,895 |
|
|
$ |
6,244 |
|
|
$ |
16,780 |
|
|
$ |
16,760 |
|
|
Adjusted total revenues for
adjusted efficiency ratio (non-GAAP) |
|
$ |
47,451 |
|
|
$ |
45,429 |
|
|
$ |
43,060 |
|
|
$ |
134,865 |
|
|
$ |
123,733 |
|
|
Adjusted
efficiency ratio (non-GAAP) (2) |
|
|
55.71 |
|
% |
|
53.32 |
|
% |
|
55.79 |
|
% |
|
55.85 |
|
% |
|
56.74 |
|
% |
(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 netinterest income and average
adjustments on deposits with banks and PPP loans (non-GAAP):
|
|
Three Months Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
(Dollars in thousands) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
Net interest income - as reported |
|
$ |
40,707 |
|
|
$ |
40,432 |
|
|
$ |
36,715 |
|
|
Tax-equivalent adjustment |
|
|
91 |
|
|
|
102 |
|
|
|
101 |
|
|
Net interest income,
tax-equivalent basis |
|
$ |
40,798 |
|
|
$ |
40,534 |
|
|
$ |
36,816 |
|
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
Less: Interest income on deposits with banks |
|
|
(135 |
) |
|
|
(112 |
) |
|
|
(342 |
) |
|
Less: Net interest income on PPP loans and swaps |
|
|
(6,005 |
) |
|
|
(5,370 |
) |
|
|
— |
|
|
Adjusted net interest income,
tax-equivalent basis (non-GAAP) |
|
$ |
34,658 |
|
|
$ |
35,052 |
|
|
$ |
36,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning
assets - as reported |
|
$ |
5,740,311 |
|
|
$ |
5,442,411 |
|
|
$ |
4,291,702 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Average deposits with banks |
|
|
(531,205 |
) |
|
|
(365,770 |
) |
|
|
(61,853 |
) |
|
Average PPP loans |
|
|
(933,345 |
) |
|
|
(729,394 |
) |
|
|
— |
|
|
Adjusted average
interest-earning assets (non-GAAP) |
|
$ |
4,275,761 |
|
|
$ |
4,347,247 |
|
|
$ |
4,229,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin - as
reported (1) |
|
|
2.82 |
|
% |
|
2.99 |
|
% |
|
3.39 |
|
% |
Net interest margin,
tax-equivalent basis (2) |
|
|
2.83 |
|
|
|
3.00 |
|
|
|
3.40 |
|
|
Adjusted net interest margin
(non-GAAP) (3) |
|
|
3.22 |
|
|
|
3.24 |
|
|
|
3.42 |
|
|
(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.
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, |
|
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Operating
expense as a % of average assets - as
reported |
|
1.84 |
|
% |
1.66 |
|
% |
2.04 |
|
% |
1.83 |
|
% |
2.02 |
|
% |
Merger expenses |
|
(0.15 |
) |
|
— |
|
|
— |
|
|
(0.05 |
) |
|
— |
|
|
Amortization of other
intangible assets |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
Adjusted
operating expense as a % of average assets
(non-GAAP) |
|
1.68 |
|
|
1.65 |
|
|
2.03 |
|
|
1.76 |
|
|
2.00 |
|
|
The following table presents the tangible common
equity to tangible assets calculation (non-GAAP):
|
|
September 30, |
|
June 30, |
|
December 31, |
|
(Dollars in thousands) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
Total assets - as reported |
|
$ |
6,322,377 |
|
|
$ |
6,150,664 |
|
|
$ |
4,921,520 |
|
|
Less: Goodwill and other intangible assets - as reported |
|
|
(109,398 |
) |
|
|
(109,248 |
) |
|
|
(109,627 |
) |
|
Tangible assets
(non-GAAP) |
|
$ |
6,212,979 |
|
|
$ |
6,041,416 |
|
|
$ |
4,811,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity -
as reported |
|
$ |
512,221 |
|
|
$ |
502,621 |
|
|
$ |
497,154 |
|
|
Less: Goodwill and other intangible assets - as reported |
|
|
(109,398 |
) |
|
|
(109,248 |
) |
|
|
(109,627 |
) |
|
Tangible common equity
(non-GAAP) |
|
$ |
402,823 |
|
|
$ |
393,373 |
|
|
$ |
387,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
common equity to tangible assets (non-GAAP)
(1) |
|
|
6.5 |
|
% |
|
6.5 |
|
% |
|
8.1 |
|
% |
(1) Calculated by dividing tangible common
equity by tangible assets.
Contact: |
John
M. McCaffery |
|
Executive Vice President |
|
Chief Financial Officer |
|
(631) 537-1001, ext. 7290 |
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