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Bridge Bancorp, Inc. Reports Fourth Quarter and Year End 2018 Results

BRIDGEHAMPTON, N.Y., Jan. 28, 2019 (GLOBE NEWSWIRE) -- Bridge Bancorp, Inc. (BDGE), (the “Company”), the parent company of BNB Bank (“BNB”), today announced fourth quarter and year end results for 2018.

The Company's fourth quarter and full year 2018 financial results included:

  • Net income for the 2018 fourth quarter of $13.9 million, or $0.70 per diluted share.
  • Net income for the full year 2018 of $39.2 million, or $1.97 per diluted share, inclusive of:
    • Pre-tax charge of $8.9 million, or $0.35 per diluted share after tax, related to the fraudulent conduct of a business customer through its deposit accounts at BNB in the 2018 third quarter.
    • Pre-tax net securities losses of $7.9 million, or $0.31 per diluted share after tax, related to the Company’s balance sheet restructure in the 2018 second quarter.
    • Pre-tax charge of $0.8 million, or $0.03 per diluted share after tax, related to the Company’s office relocation costs in the 2018 fourth quarter.
  • Excluding the impact of the fraud loss, balance sheet restructure, and office relocation costs, net income for the full year 2018 was $52.9 million, or $2.66 per diluted share.
  • Net interest income for the 2018 fourth quarter increased $0.5 million over 2017 to $34.1 million, with a tax-equivalent net interest margin of 3.26%.
  • Adjusted net interest margin (excluding purchase accounting) declined from 3.24% in the 2018 third quarter to 3.21% in the 2018 fourth quarter due to excess liquidity in December 2018.
  • Total assets of $4.7 billion at December 31, 2018, 6% higher than September 30, 2018 and December 31, 2017.
  • 2018 loan growth of $173 million, or 6%, (7% excluding the 2018 second quarter loan sale) with 2018 fourth quarter growth of $78 million, or 10% annualized.
  • Deposit growth of $552 million, or 17%, compared to December 31, 2017, and $267 million, or 29% annualized, from September 30, 2018.
  • Non-public, non-brokered deposit growth of $431 million, or 17%, compared to December 31, 2017, and $111 million, or 16% annualized, from September 30, 2018.
  • Non-performing assets of $3.0 million at December 31, 2018, $4.0 million lower than December 31, 2017 and $0.9 million higher than September 30, 2018. With loan loss reserve coverage to total loans of 0.96%.
  • All capital ratios remain strong. Declared a dividend of $0.23 during the quarter.

Commenting on the fourth quarter results, Kevin O’Connor, President and CEO said, “Our focus continues to be on profitably growing our business, by adding and expanding relationships. This was evident in 2018 as loans and deposits both increased with the velocity of growth expanding in the fourth quarter as each experienced a double-digit annualized increase. Profitability was evident as adjusted net interest margin increased on a year-over-year basis and net interest income grew by $9.6 million, or 8%. These resulted in strong returns and in the fourth quarter we achieved a 1.22% return on average assets and a 16.38% return on tangible common equity. While the interest rate environment remains challenging and competition is intense, we believe our balance sheet structure, featuring strong liquidity and core funding, provides us an opportunity to continue this momentum, and achieve targeted performance objectives.”

Net Earnings and Returns
Net income in the 2018 fourth quarter was $13.9 million, or $0.70 per diluted share, an increase of $20.8 million compared to the 2017 fourth quarter. Excluding the impact of the reduction to net deferred tax assets related to the Tax Cuts and Jobs Act (“Tax Act”) and restructuring costs, net income for the 2017 fourth quarter was $5.9 million, or $0.30 per share.

Net income for the full year 2018 was $39.2 million, or $1.97 per diluted share, compared to $20.5 million, or $1.04 per diluted share, in 2017. Excluding the impact of the fraud loss, office relocation costs and balance sheet restructure, net income for the full year 2018 was $52.9 million, or $2.66 per diluted share. Excluding the impact of the Tax Act and restructuring costs, net income for the full year 2017 was $33.3 million, or $1.68 per share.

Returns on average assets and equity in the 2018 fourth quarter were 1.22% and 12.32%, respectively.  Return on average tangible common equity was 16.38% for the 2018 fourth quarter.  

Interest income was $43.5 million in the 2018 fourth quarter, an increase of $0.9 million compared to the 2018 third quarter, driven primarily by loan portfolio growth and higher investment portfolio yields. Interest expense was $9.4 million in the 2018 fourth quarter, an increase of $1.0 million compared to the 2018 third quarter, primarily due to deposit growth and an increase in average cost of interest-bearing liabilities. Proceeds from a large deposit made in December 2018 were not readily deployed into investments or loans. This caused margin compression of 3 basis points in the 2018 fourth quarter.

The impact of purchase accounting on the margin continues to decrease.  The reported margin for the 2018 fourth quarter showed a year-over-year decline of 10 basis points from 3.36% in 2017 to 3.26% in 2018. However, the adjusted margin, excluding purchase accounting, is up 7 basis points from 3.14% in 2017 to 3.21% in 2018.  The decreased impact of purchase accounting can also be observed regarding loan yields.  Reported 2018 fourth quarter loan yields were flat year-over year at 4.56%, while yields ex-purchase accounting were up 24 basis points, increasing from 4.26% in 2017 to 4.50% in 2018.

“Although assets only expanded by 6% year-over-year, our deposit base increased by 17%, enabling us to reduce wholesale borrowings. By improving our funding mix, our adjusted margin increased over the same quarter last year,” stated Mr. O’Connor.

The provision for loan losses was $0.4 million for the 2018 fourth quarter, $10.0 million lower than the 2017 fourth quarter, and $1.8 million for the full year 2018, $12.3 million lower than the full year 2017.  Contributing to the lower provision were decreases in net charge-offs in the fourth quarter and full year 2018 compared to the same periods in 2017. The Company recognized net charge-offs of $0.9 million in the 2018 fourth quarter, compared to net charge-offs of $8.0 million in the 2017 fourth quarter. The Company recognized net charge-offs of $2.1 million in the full year 2018, compared to net charge-offs of $8.2 million in the 2017 full year.

During the 2018 fourth quarter, the Company negotiated the payoff of $11 million in Taxi Medallion loans. The parties agreed to settle the outstanding notes at $450 thousand per medallion, which resulted in $1.1 million in charge-offs. This did not result in an increase in the 2018 fourth quarter provision. As of December 31, 2018, $4 million had been paid off, with the remaining loans paid down in January 2019.  After this transaction the Company’s exposure to Taxi Medallion loans has declined to $10 million.  All remaining loans are performing.

Non-interest income was $5.1 million for the 2018 fourth quarter, $0.6 million higher than the 2017 fourth quarter, attributable to higher gain on sale of Small Business Administration (“SBA”) loans, higher service charges and other fees, and net securities losses in the 2017 fourth quarter, partially offset by lower title fee income and other operating income. Non-interest income was $11.6 million for the full year 2018, $6.5 million lower than the 2017 full year, driven primarily by net securities losses related to the balance sheet restructure in 2018 and lower title fee income, partially offset by higher gain on sale of SBA loans, service charges and other fees, and other operating income. Excluding the impact of the balance sheet restructure, total non-interest income in the full year 2018 would have been $19.5 million.

Non-interest expense for the 2018 fourth quarter decreased to $22.1 million from $29.2 million in the 2017 fourth quarter.  Non-interest expense for the full year 2018 increased to $98.2 million from $91.7 million in full year 2017. The decrease in the fourth quarter is primarily due to restructuring costs related to branch restructuring and charter conversion in 2017, and a recovery of fraud loss in the 2018 fourth quarter, partially offset by growth in salaries and benefits expense and office relocation costs in 2018. The increase in the full year non-interest expense is primarily due to growth in salaries and benefits expense, and a fraud loss and office relocation costs in 2018, partially offset by restructuring costs related to branch restructuring and charter conversion in 2017. Excluding the impact of the fraud recovery and office relocation costs, total non-interest expense in the fourth quarter 2018 would have been $21.9 million. Excluding the impact of the restructuring costs, total non-interest expense in the fourth quarter 2017 would have been $21.1 million.  Excluding the impact of the fraud loss and office relocation costs, total non-interest expense in the full year 2018 would have been $88.5 million. Excluding the impact of the restructuring costs, total non-interest expense in the full year 2017 would have been $83.7 million. 

Non-recurring items in the 2018 fourth quarter included $0.8 million related to the consolidation of back office operations and a $0.6 million net recovery related to the 2018 third quarter fraud loss resulting from a final settlement with another financial institution.

Income tax expense was $2.9 million in the 2018 fourth quarter, and $9.1 million in full year 2018. Income tax expense was $5.4 million in the 2017 fourth quarter and $18.9 million in full year 2017, which included a $7.6 million charge to write-down the Company’s deferred tax assets due to the enactment of the Tax Act in the 2017 fourth quarter.    

Balance Sheet and Asset Quality
Total assets were $4.7 billion at December 31, 2018, $252.0 million higher than September 30, 2018, and $270.7 million higher than December 31, 2017. Total loans at December 31, 2018 of $3.3 billion reflect growth of $173.1 million, or 6%, over December 31, 2017. Deposits totaled $3.9 billion at December 31, 2018, an increase of $551.9 million, or 17%, over December 31, 2017. Demand deposits increased $109.9 million year-over-year to $1.4 billion at December 31, 2018, representing 37% of total deposits.

Asset quality measures improved as non-performing assets were $3.0 million, or 0.06% of total assets, at December 31, 2018, compared to $7.0 million, or 0.16% of total assets, at December 31, 2017. Non-performing assets at December 31, 2018 included $0.2 million of other real estate owned. Non-performing loans were $2.8 million, or 0.09% of total loans at December 31, 2018, compared to $7.0 million, or 0.22% of total loans at December 31, 2017.  Loans 30 to 89 days past due increased $0.8 million to $4.4 million at December 31, 2018, compared to $3.6 million at December 31, 2017. Loans past due 90 days and accruing at December 31, 2018 and 2017 were comprised of acquired loans of $0.3 million and $1.8 million, respectively.

The allowance for loan losses was $31.4 million at December 31, 2018, $0.3 million lower than December 31, 2017. The allowance as a percentage of loans was 0.96% at December 31, 2018, compared to 1.02% at December 31, 2017.

Stockholders’ equity was $453.8 million at December 31, 2018, $24.6 million higher than December 31, 2017. The growth reflects earnings, partially offset by shareholders’ dividends. Tangible book value per share was $17.36 at December 31, 2018, $1.22 higher than December 31, 2017.

Conference Call
The Company will host a conference call on Tuesday, January 29, 2019 at 10:00 AM (ET). Investors who would like to join the conference call are encouraged to pre-register using the following link: http://dpregister.com/10128294. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. Telephonic replay will be available through the Company’s website approximately one hour after the conclusion of the call through Tuesday, February 12, 2019.

Call and replay information are as follows:

Call Date: Tuesday, January 29, 2019
Call Time: 10:00 AM (ET)
Domestic Call Dial In:  1-888-317-6016
International Call Dial In:  1-412-317-6016

Replay Domestic Dial In:  1-877-344-7529
Replay International Dial In:  1-412-317-0088
Access Code: 10128294

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, formerly known as The Bridgehampton National Bank. Established in 1910, BNB, with assets of approximately $4.7 billion, operates 39 branch locations serving Long Island and the greater New York metropolitan area. In addition, BNB operates one loan production office in Manhattan. Through its branch network and its electronic delivery channels, BNB provides deposit and loan products and financial services to local businesses, consumers and municipalities. Title insurance services are offered through BNB's wholly owned subsidiary, Bridge Abstract. Bridge Financial Services, Inc., a wholly owned subsidiary of BNB, offers financial planning and investment consultation.  For more information visit www.bnbbank.com.

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

Please see the attached tables for selected financial information.

This report 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,” “intend,” “may,” “outlook,” “predict,” “project,” “would,” “estimated,” “assumes,” “likely,” and variation of such similar expressions are intended to identify such forward-looking statements.  Examples of forward-looking statements include, but are not limited to, possible or assumed estimates with respect to the financial condition, expected or anticipated revenue, and results of operations and business of the Company, including earnings growth; revenue growth in retail banking lending and other areas; origination volume in the  consumer, commercial and other lending businesses; current and future capital management programs; non-interest income levels, including fees from the title abstract subsidiary and banking services as well as product sales; tangible capital generation; market share; expense levels; and other business operations and strategies.  The Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.

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

BRIDGE BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Condition (unaudited)
(In thousands)
                 
  December 31,   September 30,   December 31,
  2018   2018   2017
Assets                
Cash and due from banks $  142,145     $  63,687     $  76,614  
Interest earning deposits with banks    153,223        61,414        18,133  
Total cash and cash equivalents    295,368        125,101        94,747  
Securities available for sale, at fair value    680,886        661,862        759,916  
Securities held to maturity    160,163        164,438        180,866  
Total securities    841,049        826,300        940,782  
Securities, restricted    24,028        25,162        35,349  
Loans held for sale    —        1,619        —  
Loans held for investment    3,275,811        3,197,427        3,102,752  
Allowance for loan losses    (31,418 )      (31,869 )      (31,707 )
Loans held for investment, net    3,244,393        3,165,558        3,071,045  
Premises and equipment, net    35,008        35,893        33,505  
Goodwill and other intangible assets    110,324        110,667        111,164  
Other real estate owned    175        175        —  
Accrued interest receivable and other assets    150,399        158,282        143,410  
Total assets $  4,700,744     $  4,448,757     $  4,430,002  
                 
Liabilities and stockholders' equity                
Demand deposits $  1,275,664     $  1,286,673     $  1,188,535  
Savings and negotiable order of withdrawal ("NOW") deposits    496,881        468,242        419,513  
Money market deposit accounts ("MMDA")    975,531        883,386        755,483  
Certificates of deposit of less than $100,000    61,827        61,548        59,019  
Certificates of deposit of $100,000 or more    155,104        154,181        111,691  
Total individual, partnership and corporate ("IPC") deposits    2,965,007        2,854,030        2,534,241  
Brokered deposits    255,408        281,241        212,593  
Public funds - demand deposits    172,941        46,119        150,166  
Public funds - other deposits    493,037        437,752        437,543  
Total public and brokered deposits    921,386        765,112        800,302  
Total deposits    3,886,393        3,619,142        3,334,543  
Federal funds purchased and repurchase agreements    539        816        50,877  
Federal Home Loan Bank ("FHLB") advances    240,433        265,648        501,374  
Subordinated debentures, net    78,781        78,746        78,641  
Other liabilities and accrued expenses    40,768        44,420        35,367  
Total liabilities    4,246,914        4,008,772        4,000,802  
Total stockholders' equity    453,830        439,985        429,200  
Total liabilities and stockholders' equity $  4,700,744     $  4,448,757     $  4,430,002  
                       


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (unaudited)
(In thousands, except per share amounts)
                                 
  Three Months Ended   Year Ended
  December 31,   September 30,   December 31,   December 31,   December 31,
  2018   2018   2017   2018   2017
Interest income $  43,480     $  42,589     $  39,960     $  168,984     $  149,849  
Interest expense    9,382        8,375        6,399        32,204        22,689  
Net interest income    34,098        34,214        33,561        136,780        127,160  
Provision for loan losses    400        200        10,400        1,800        14,050  
Net interest income after provision for loan losses    33,698        34,014        23,161        134,980        113,110  
                                 
Non-interest income:                                
Service charges and other fees    2,579        2,549        2,334        9,853        8,996  
Title fee income    458        384        546        1,797        2,394  
Net securities (losses) gains    —        —        (222 )      (7,921 )      38  
Gain on sale of SBA loans    492        524        247        2,078        1,689  
BOLI income    561        557        560        2,219        2,250  
Other operating income    1,025        904        1,034        3,542        2,735  
Total non-interest income    5,115        4,918        4,499        11,568        18,102  
                                 
Non-interest expense:                                
Salaries and employee benefits    12,457        12,134        11,506        50,458        46,560  
Occupancy and equipment    3,472        3,325        3,647        13,245        13,998  
Net fraud (recovery) loss    (600 )      9,500        —        8,900        —  
Office relocation costs    750        —        —        750        —  
Restructuring costs    —        —        8,020        —        8,020  
Amortization of other intangible assets    214        215        247        917        1,047  
Other operating expenses    5,778        5,830        5,734        23,910        22,102  
Total non-interest expense    22,071        31,004        29,154        98,180        91,727  
                                 
Income (loss) before income taxes    16,742        7,928        (1,494 )      48,368        39,485  
Income tax expense    2,878        1,381        5,422        9,141        18,946  
Net income (loss) $  13,864     $  6,547     $  (6,916 )   $  39,227     $  20,539  
Basic earnings (loss) per share $  0.70     $  0.33     $  (0.35 )   $  1.97     $  1.04  
Diluted earnings (loss) per share $  0.70     $  0.33     $  (0.35 )   $  1.97     $  1.04  
Weighted average common and equivalent shares    19,492        19,485        19,419        19,468        19,379  
                                       


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Consolidated Financial Highlights (unaudited)
(In thousands, except per share amounts and financial ratios)
                             
  Three Months Ended   Year Ended  
  December 31,
  September 30,   December 31,   December 31,
  December 31,  
  2018
  2018   2017   2018
  2017  
Selected Financial Data:                            
Return on average total assets  1.22    0.58    (0.63 )  0.87    0.49   %
Adjusted return on average total assets (1)  1.23      1.24      0.53      1.18      0.79    
Return on average stockholders' equity  12.32      5.64      (6.07 )    8.66      4.64    
Adjusted return on average stockholders' equity (1)  12.43      12.03      5.15      11.69      7.53    
Return on average tangible common equity (1) (2)  16.38      7.43      (8.04 )    11.47      6.21    
Adjusted return on average tangible common equity (1) (2)  16.72      16.03      7.01      15.69      10.28    
Net interest margin, tax-equivalent basis  3.26      3.32      3.36      3.33      3.34    
Adjusted net interest margin (1)  3.21      3.24      3.14      3.23      3.13    
Efficiency ratio  56.28      79.23      76.60      66.18      63.15    
Adjusted efficiency ratio (1)  55.16      54.22      54.08      55.85      56.39    
Operating expense/average assets  1.94      2.75      2.65      2.19      2.18    
Adjusted operating expense/average assets (1)  1.90      1.89      1.90      1.95      1.97    
                               


(1)   See reconciliation of this non-GAAP financial measure provided elsewhere herein.
(2)   Average tangible common equity represents a non-GAAP financial measure calculated as average total stockholders' equity less average goodwill and intangible assets.
     


  December 31,    September 30,    December 31,   
  2018   2018   2017  
Selected Financial Data:                        
Book value per share $  22.93     $  22.23     $  21.78    
Tangible book value per share (1) $  17.36     $  16.64     $  16.14    
Common shares outstanding    19,791        19,789        19,709    
                         
Capital Ratios:                        
Total capital to risk-weighted assets    13.6      13.6      13.3   %
Tier 1 capital to risk-weighted assets    10.4        10.3        10.0    
Common equity Tier 1 capital to risk-weighted assets    10.4        10.3        10.0    
Tier 1 capital to average assets    8.1        8.0        7.9    
Tangible common equity to tangible assets (1) (2)    7.5        7.6        7.4    
Tier 1 capital to average assets (Bank)    9.9        9.7        9.6    
                         
Asset Quality:                        
Loans 30-89 days past due $  4,400     $  5,801     $  3,614    
Loans 90 days past due and accruing (3) $  308     $  299     $  1,834    
Non-performing loans $  2,808     $  1,944     $  6,955    
Other real estate owned    175        175        —    
Non-performing assets $  2,983     $  2,119     $  6,955    
Non-performing loans/total loans    0.09      0.06      0.22   %
Non-performing assets/total assets    0.06        0.05        0.16    
Allowance/non-performing loans   1118.87       1639.35       455.89    
Allowance/total loans    0.96        1.00        1.02    
                         


(1)   Tangible common equity represents a non-GAAP financial measure calculated as total stockholders' equity less goodwill and intangible assets.
(2)   Tangible assets represent a non-GAAP financial measure calculated as total assets less goodwill and intangible assets.
(3)   Represents loans acquired in connection with the Community National Bank, FNBNY Bancorp, Inc., and Hamptons State Bank acquisitions.
     


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Supplemental Financial Information
Condensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)
(Dollars in thousands)
                                                       
  Three Months Ended December 31,   Three Months Ended September 30,   Three Months Ended December 31,  
  2018   2018   2017  
          Average           Average           Average  
  Average       Yield/   Average       Yield/   Average       Yield/  
  Balance   Interest   Cost   Balance   Interest   Cost   Balance   Interest   Cost  
Interest-earning assets:                                                      
Loans, net (including loan fee income) (1) $  3,206,033     $  36,848      4.56   $  3,157,422     $  36,243      4.55   $  2,984,476     $  34,309      4.56   %
Securities (1)    882,886        6,328      2.84        867,174        6,044      2.77        997,762        5,918      2.35    
Deposits with banks    74,348        443      2.36        84,986        437      2.04        21,638        70      1.28    
Total interest-earning assets (1)    4,163,267        43,619      4.16        4,109,582        42,724      4.12        4,003,876        40,297      3.99    
Non-interest-earning assets:                                                      
Other assets    359,740                  369,305                  359,460              
Total assets $  4,523,007               $  4,478,887               $  4,363,336              
                                                       
Interest-bearing liabilities:                                                      
  Savings $  375,792     $  656      0.69   $  341,056     $  395      0.46   $  298,766     $  81      0.11  
  NOW    113,116        40      0.14        108,271        27      0.10        126,275        27      0.08    
  MMDA    906,565        2,950      1.29        866,631        2,386      1.09        797,552        1,406      0.70    
  Savings, NOW and MMDA    1,395,473        3,646      1.04        1,315,958        2,808      0.85        1,222,593        1,514      0.49    
  Certificates of deposit of less than $100,000    61,803        250      1.60        59,681        209      1.39        58,655        157      1.06    
  Certificates of deposit of $100,000 or more    156,806        739      1.87        148,339        674      1.80        113,011        348      1.22    
Total IPC deposits    1,614,082        4,635      1.14        1,523,978        3,691      0.96        1,394,259        2,019      0.57    
  Brokered deposits    263,580        1,528      2.30        307,651        1,593      2.05        233,202        804      1.37    
  Public funds    433,845        787      0.72        448,191        763      0.68        369,123        221      0.24    
Total public and brokered deposits    697,425        2,315      1.32        755,842        2,356      1.24        602,325        1,025      0.68    
Total deposits    2,311,507        6,950      1.19        2,279,820        6,047      1.05        1,996,584        3,044      0.60    
Federal funds purchased and repurchase agreements    3,180        15      1.87        3,487        12      1.37        142,923        498      1.38    
FHLB advances    265,235        1,282      1.92        269,909        1,182      1.74        401,155        1,723      1.70    
Subordinated debentures    78,758        1,135      5.72        78,723        1,134      5.72        78,618        1,134      5.72    
Total borrowings    347,173        2,432      2.78        352,119        2,328      2.62        622,696        3,355      2.14    
Total interest-bearing liabilities    2,658,680        9,382      1.40        2,631,939        8,375      1.26        2,619,280        6,399      0.97    
Non-interest-bearing liabilities:                                                      
Demand deposits    1,370,428                  1,343,107                  1,255,110              
Other liabilities    47,547                  43,432                  36,689              
Total liabilities    4,076,655                  4,018,478                  3,911,079              
Stockholders' equity    446,352                  460,409                  452,257              
Total liabilities and stockholders' equity $  4,523,007               $  4,478,887               $  4,363,336              
                                                       
Net interest rate spread                2.76                  2.86                  3.02   %
Net interest-earning assets $  1,504,587               $  1,477,643               $  1,384,596              
Net interest margin - tax-equivalent            34,237      3.26              34,349      3.32              33,898      3.36   %
Less: Tax-equivalent adjustment            (139 )    (0.01 )              (135 )    (0.02 )              (337 )    (0.03 )  
Net interest income         $  34,098                 $  34,214                 $  33,561        
Net interest margin                3.25                  3.30                  3.33  
                                                       


(1)   Presented on a tax-equivalent basis.
     


...
BRIDGE BANCORP, INC. AND SUBSIDIARIES
Supplemental Financial Information
Condensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)
(Dollars in thousands)
                                     
  Year Ended December 31,   
  2018   2017  
          Average           Average  
  Average       Yield/   Average       Yield/  
  Balance   Interest   Cost   Balance   Interest   Cost  
Interest-earning assets:                                    
Loans, net (including loan fee income) (1) $  3,167,933     $  144,568      4.56   $  2,774,422     $  126,802      4.57   %
Securities (1)    910,726        23,936      2.63        1,048,033        24,140      2.30