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Bridge Bancorp, Inc. Reports Second Quarter 2019 Results

BRIDGEHAMPTON, N.Y., July 23, 2019 (GLOBE NEWSWIRE) -- Bridge Bancorp, Inc. (BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced second quarter results for 2019.

The Company's second quarter 2019 financial results included:

  • Net income for the 2019 second quarter of $10.7 million, or $0.53 per diluted share, compared to $6.7 million, or $0.34 per diluted share for the 2018 second quarter, inclusive of pre-tax net securities losses of $7.9 million, or $0.31 per diluted share after tax, related to the Company’s balance sheet restructure in the 2018 period.

  • Net interest income for the 2019 second quarter increased $1.2 million over the 2019 first quarter to $35.5 million, with a tax-equivalent net interest margin of 3.30%.

  • Total assets of $4.7 billion at June 30, 2019, 7% higher than June 30, 2018.

  • Loan growth of $249 million, or 8%, compared to June 30, 2018, and $154 million, or 9% annualized, from December 31, 2018.

  • Non-public, non-brokered deposit growth of $431 million, or 16%, compared to June 30, 2018, and $190 million, or 13% annualized, from December 31, 2018.

  • Non-performing assets of $5.5 million at June 30, 2019, $3.7 million higher than June 30, 2018 and $2.5 million higher than December 31, 2018. Loan loss reserve coverage to total loans of 0.91% at June 30, 2019.

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

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

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

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

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

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

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

Three Months Ended

Change Compared To

June 30,

March 31,

June 30,

March 31,

June 30,

2019

2019

2018

2019

2018

Average yield on loans, tax-equivalent basis - as reported

4.76

%

4.66

%

4.52

%

10

bp

24

bp

Adjusted average yield on loans (non-GAAP)

4.66

4.61

4.43

5

23

Net interest margin - as reported (1)

3.29

%

3.27

%

3.30

%

2

bp

(1

)

bp

Net interest margin, tax-equivalent basis (2)

3.30

3.29

3.31

1

(1

)

Adjusted net interest margin (non-GAAP) (3)

3.23

3.24

3.24

(1

)

(1

)

_______________________________

(1) Net interest margin represents net interest income divided by average interest-earning assets.
(2) Net interest margin, tax-equivalent basis represents net interest income on a tax-equivalent basis divided by average interest-earning assets.
(3) Adjusted net interest margin represents adjusted net interest income on a tax-equivalent basis divided by adjusted average interest-earning assets.

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

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

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

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

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

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

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

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

Change Compared To

June 30,

December 31,

June 30,

December 31,

June 30,

(Dollars in thousands)

2019

2018

2018

2018

2018

Total assets

$

4,714,535

$

4,700,744

$

4,414,785

$

13,791

$

299,750

Total stockholders' equity

475,205

453,830

439,755

21,375

35,450

Loans held for investment

Investor commercial real estate ("CRE")

$

910,892

$

863,158

$

844,295

$

47,734

$

66,597

Multi-family ("MF")

631,146

585,827

570,670

45,319

60,476

Construction and land ("C&L")

150,868

123,393

116,899

27,475

33,969

Total investor CRE, MF, and C&L

1,692,906

1,572,378

1,531,864

120,528

161,042

Commercial and industrial ("C&I")

675,168

645,724

629,906

29,444

45,262

Owner-occupied CRE

525,329

510,398

483,652

14,931

41,677

Total C&I and owner-occupied CRE

1,200,497

1,156,122

1,113,558

44,375

86,939

Residential real estate

503,354

519,763

510,303

(16,409

)

(6,949

)

Installment and consumer

25,825

20,509

20,051

5,316

5,774

Net deferred loan costs and fees

7,441

7,039

4,900

402

2,541

Total loans held for investment

$

3,430,023

$

3,275,811

$

3,180,676

$

154,212

$

249,347

Deposits

Total IPC deposits

$

3,154,801

$

2,965,007

$

2,724,208

$

189,794

$

430,593

Total public and brokered deposits

681,775

921,386

828,989

(239,611

)

(147,214

)

Total deposits

$

3,836,576

$

3,886,393

$

3,553,197

$

(49,817

)

$

283,379


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

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

Conference Call
The Company will host a conference call on Wednesday, July 24, 2019 at 9:00 AM (ET) to discuss the 2019 second quarter results. Investors who would like to join the conference call are encouraged to pre-register using the following link: http://dpregister.com/10132796. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. Telephonic replay will be available through the Company’s website approximately one hour after the conclusion of the call through Wednesday, August 7, 2019.

Call and replay information are as follows:

Call Date: Wednesday, July 24, 2019
Call Time: 9:00 AM (ET)
Domestic Call Dial In: 1-844-746-0738
International Call Dial In: 1-412-317-6016

Replay Domestic Dial In: 1-877-344-7529
Replay International Dial In: 1-412-317-0088
Access Code: 10132796

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

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

Please see the attached tables for selected financial information.

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

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


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Condition (unaudited)
(In thousands)

June 30,

December 31,

June 30,

2019

2018

2018

Assets

Cash and due from banks

$

71,292

$

142,145

$

74,255

Interest-earning deposits with banks

87,349

153,223

31,636

Total cash and cash equivalents

158,641

295,368

105,891

Securities available for sale, at fair value

642,897

680,886

659,076

Securities held to maturity

144,716

160,163

169,717

Total securities

787,613

841,049

828,793

Securities, restricted

24,104

24,028

26,747

Loans held for sale

12,643

6,338

Loans held for investment

3,430,023

3,275,811

3,180,676

Allowance for loan losses

(31,171

)

(31,418

)

(31,652

)

Loans held for investment, net

3,398,852

3,244,393

3,149,024

Premises and equipment, net

34,006

35,008

36,043

Operating lease right-of-use assets (1)

37,619

Goodwill and other intangible assets

109,975

110,324

110,816

Other real estate owned

175

175

Accrued interest receivable and other assets

151,082

150,399

150,958

Total assets

$

4,714,535

$

4,700,744

$

4,414,785

Liabilities and stockholders' equity

Demand deposits

$

1,322,625

$

1,275,664

$

1,248,383

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

613,431

496,881

436,227

Money market deposit accounts ("MMDA")

1,002,768

975,531

843,390

Certificates of deposit of less than $100,000

60,658

61,827

59,053

Certificates of deposit of $100,000 or more

155,319

155,104

137,155

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

3,154,801

2,965,007

2,724,208

Brokered deposits

127,196

255,408

318,164

Public funds - demand deposits

63,084

172,941

58,941

Public funds - other deposits

491,495

493,037

451,884

Total public and brokered deposits

681,775

921,386

828,989

Total deposits

3,836,576

3,886,393

3,553,197

Federal funds purchased and repurchase agreements

945

539

1,437

Federal Home Loan Bank ("FHLB") advances

240,000

240,433

300,863

Subordinated debentures, net

78,850

78,781

78,711

Operating lease liabilities (1)

40,263

Other liabilities and accrued expenses

42,696

40,768

40,822

Total liabilities

4,239,330

4,246,914

3,975,030

Total stockholders' equity

475,205

453,830

439,755

Total liabilities and stockholders' equity

$

4,714,535

$

4,700,744

$

4,414,785

___________________________

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


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (unaudited)
(In thousands, except per share amounts)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2019

2019

2018

2019

2018

Interest income

$

46,352

$

44,515

$

41,551

$

90,867

$

82,915

Interest expense

10,835

10,192

7,622

21,027

14,447

Net interest income

35,517

34,323

33,929

69,840

68,468

Provision for loan losses

3,500

600

400

4,100

1,200

Net interest income after provision for loan losses

32,017

33,723

33,529

65,740

67,268

Non-interest income:

Service charges and other fees

2,556

2,428

2,562

4,984

4,725

Title fee income

335

306

450

641

955

Net securities gains (losses)

201

(7,921

)

201

(7,921

)

Gain on sale of SBA loans

844

217

691

1,061

1,062

BOLI income

556

553

555

1,109

1,101

Other operating income

1,007

1,714

1,085

2,721

1,613

Total non-interest income (loss)

5,499

5,218

(2,578

)

10,717

1,535

Non-interest expense:

Salaries and employee benefits

13,659

13,280

13,055

26,939

25,867

Occupancy and equipment

3,560

3,531

3,205

7,091

6,448

Amortization of other intangible assets

210

213

242

423

488

Other operating expenses

6,575

5,575

6,005

12,150

12,302

Total non-interest expense

24,004

22,599

22,507

46,603

45,105

Income before income taxes

13,512

16,342

8,444

29,854

23,698

Income tax expense

2,859

3,415

1,701

6,274

4,882

Net income

$

10,653

$

12,927

$

6,743

$

23,580

$

18,816

Basic earnings per share

$

0.53

$

0.65

$

0.34

$

1.18

$

0.95

Diluted earnings per share

$

0.53

$

0.65

$

0.34

$

1.18

$

0.95

Weighted average common and equivalent shares

19,565

19,526

19,468

19,545

19,453


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Consolidated Financial Highlights (unaudited)
(In thousands, except per share amounts and financial ratios)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2019

2019

2018

2019

2018

Selected Financial Data:

Return on average total assets

0.90

%

1.13

%

0.60

%

1.01

%

0.85

%

Adjusted return on average total assets (1)

0.90

1.13

1.15

1.01

1.12

Return on average stockholders' equity

9.06

11.41

5.96

10.22

8.39

Adjusted return on average stockholders' equity (1)

9.06

11.41

11.43

10.22

11.15

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

11.82

15.01

7.90

13.38

11.12

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

12.01

15.21

15.35

13.57

15.00

Net interest margin, tax-equivalent basis

3.30

3.29

3.31

3.29

3.36

Adjusted net interest margin (1)

3.23

3.24

3.24

3.24

3.23

Efficiency ratio

58.52

57.15

71.79

57.85

64.43

Adjusted efficiency ratio (1)

58.03

56.43

56.47

57.24

57.02

Operating expense/average assets

2.03

1.97

2.01

2.00

2.03

Adjusted operating expense/average assets (1)

2.01

1.95

1.99

1.98

2.01

____________________________

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


June 30,

December 31,

June 30,

2019

2018

2018

Selected Financial Data:

Book value per share

$

23.96

$

22.93

$

22.23

Tangible book value per share (1)

$

18.41

$

17.36

$

16.62

Common shares outstanding

19,834

19,791

19,786

Capital Ratios:

Total capital to risk-weighted assets

13.3

%

13.6

%

13.6

%

Tier 1 capital to risk-weighted assets

10.3

10.4

10.3

Common equity Tier 1 capital to risk-weighted assets

10.3

10.4

10.3

Tier 1 capital to average assets

8.1

8.1

7.9

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

7.9

7.5

7.6

Tier 1 capital to average assets (Bank)

9.7

9.9

9.6

Asset Quality:

Loans 30-89 days past due

$

3,382

$

4,400

$

4,391

Loans 90 days past due and accruing (3)

$

329

$

308

$

934

Non-performing loans

$

5,509

$

2,808

$

1,599

Other real estate owned

175

175

Non-performing assets

$

5,509

$

2,983

$

1,774

Non-performing loans/total loans

0.16

%

0.09

%

0.05

%

Non-performing assets/total assets

0.12

0.06

0.04

Allowance/non-performing loans

565.82

1118.87

1979.49

Allowance/total loans

0.91

0.96

1.00

________________________

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


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Supplemental Financial Information
Condensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)
(Dollars in thousands)

Three Months Ended June 30,

Three Months Ended March 31,

Three Months Ended June 30,

2019

2019

2018

Average

Average

Average

Average

Yield/

Average

Yield/

Average

Yield/

Balance

Interest

Cost

Balance

Interest

Cost

Balance

Interest

Cost

Interest-earning assets:

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

$

3,373,601

$

40,000

4.76

%

$

3,275,828

$

37,659

4.66

%

$

3,179,632

$

35,817

4.52

%

Securities (1)

860,031

5,940

2.77

885,834

6,442

2.95

924,979

5,784

2.51

Deposits with banks

102,515

599

2.34

91,682

544

2.41

25,206

106

1.69

Total interest-earning assets (1)

4,336,147

46,539

4.30

4,253,344

44,645

4.26

4,129,817

41,707

4.05

Non-interest-earning assets:

Other assets

401,720

392,283

365,038

Total assets

$

4,737,867

$

4,645,627

$

4,494,855

Interest-bearing liabilities:

Savings

$

443,830

$

1,231

1.11

%

$

398,499

$

905

0.92

%

$

296,882

$

132

0.18

%

NOW

124,329

48

0.15

105,996

41

0.16

130,000

30

0.09

MMDA

1,012,419

3,840

1.52

983,942

3,586

1.48

808,845

1,833

0.91

Savings, NOW and MMDA

1,580,578

5,119

1.30

1,488,437

4,532

1.23

1,235,727

1,995

0.65

Certificates of deposit of less than $100,000

60,940

285

1.88

61,317

261

1.73

57,753

170

1.18

Certificates of deposit of $100,000 or more

152,809

806

2.12

150,102

732

1.98

117,380

384

1.31

Total IPC deposits

1,794,327

6,210

1.39

1,699,856

5,525

1.32

1,410,860

2,549

0.72

Brokered deposits

134,720

771

2.30

209,409

1,210

2.34

276,405

1,299

1.89

Public funds

546,432

1,383

1.02

534,568

1,179

0.89

509,353

665

0.52

Total public and brokered deposits

681,152

2,154

1.27

743,977

2,389

1.30

785,758

1,964

1.00

Total deposits

2,475,479

8,364

1.36

2,443,833

7,914

1.31

2,196,618

4,513

0.82

Federal funds purchased and repurchase agreements

25,246

158

2.51

7,691

45

2.37

122,463

567

1.86

FHLB advances

243,322

1,178

1.94

243,290

1,098

1.83

337,615

1,407

1.67

Subordinated debentures

78,827

1,135

5.78

78,793

1,135

5.84

78,688

1,135

5.79

Total borrowings

347,395

2,471

2.85

329,774

2,278

2.80

538,766

3,109

2.31

Total interest-bearing liabilities

2,822,874

10,835

1.54

2,773,607

10,192

1.49

2,735,384

7,622

1.12

Non-interest-bearing liabilities:

Demand deposits

1,365,279

1,333,498

1,265,370

Other liabilities

78,278

79,083

40,633

Total liabilities

4,266,431

4,186,188

4,041,387

Stockholders' equity

471,436

459,439

453,468

Total liabilities and stockholders' equity

$

4,737,867

$

4,645,627

$

4,494,855

Net interest rate spread

2.76

%

2.77

%

2.93

%

Net interest-earning assets

$

1,513,273

$

1,479,737

$

1,394,433

Net interest margin - tax-equivalent

35,704

3.30

%

34,453

3.29

%

34,085

3.31

%

Less: Tax-equivalent adjustment

(187

)

(0.01

)

(130

)

(0.02

)

(156

)

(0.01

)

Net interest income

$

35,517

$

34,323

$

33,929

Net interest margin

3.29

%

3.27

%

3.30

%

______________________________

(1) Presented on a tax-equivalent basis.


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Supplemental Financial Information
Condensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)
(Dollars in thousands)

Six Months Ended June 30,

2019

2018

Average

Average

Average

Yield/

Average

Yield/

Balance

Interest

Cost

Balance

Interest

Cost

Interest-earning assets:

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

$

3,324,985

$

77,659

4.71

%

$

3,153,909

$

71,477

4.57

%

Securities (1)

872,861

12,382

2.86

947,013

11,564

2.46

Deposits with banks

97,128

1,143

2.37

24,163

196

1.64

Total interest-earning assets (1)

4,294,974

91,184

4.28

4,125,085

83,237

4.07

Non-interest-earning assets:

Other assets

397,027

359,993

Total assets

$

4,692,001

$

4,485,078

Interest-bearing liabilities:

Savings

$

421,290

$

2,136

1.02

%

$

294,200

$

210

0.14

%

NOW

115,213

89

0.16

133,126

56

0.08

MMDA

998,259

7,426

1.50

789,566

3,234

0.83

Savings, NOW and MMDA

1,534,762

9,651

1.27

1,216,892

3,500

0.58

Certificates of deposit of less than $100,000

61,128

546

1.80

58,270

331

1.15

Certificates of deposit of $100,000 or more

151,463

1,538

2.05

113,259

716

1.27

Total IPC deposits

1,747,353

11,735

1.35

1,388,421

4,547

0.66

Brokered deposits

171,858

1,981

2.32

239,346

2,084

1.76

Public funds

540,533

2,562

0.96

503,428

1,108

0.44

Total public and brokered deposits

712,391

4,543

1.29

742,774

3,192

0.87

Total deposits

2,459,744

16,278

1.33

2,131,195

7,739

0.73

Federal funds purchased and repurchase agreements

16,517

203

2.48

136,974

1,173

1.73

FHLB advances

243,306

2,276

1.89

382,681

3,265

1.72

Subordinated debentures

78,810

2,270

5.81

78,671

2,270

5.82

Total borrowings

338,633

4,749

2.83

598,326

6,708

2.26

Total interest-bearing liabilities

2,798,377

21,027

1.52

2,729,521

14,447

1.07

Non-interest-bearing liabilities:

Demand deposits

1,349,476

1,264,186

Other liabilities

78,677

39,242

Total liabilities

4,226,530

4,032,949

Stockholders' equity

465,471

452,129

Total liabilities and stockholders' equity

$

4,692,001

$

4,485,078

Net interest rate spread

2.76

%

3.00

%

Net interest-earning assets

$

1,496,597

$

1,395,564

Net interest margin - tax-equivalent

70,157

3.29

%

68,790

3.36

%

Less: Tax-equivalent adjustment

(317

)

(0.01

)

(322

)

(0.01

)

Net interest income

$

69,840

$

68,468

Net interest margin

3.28

%

3.35

%

___________________________

(1) Presented on a tax-equivalent basis.


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures (unaudited)
Reconciliation of as reported (GAAP) and non-GAAP financial measures

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

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

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2019

2019

2018

2019

2018

Return on average total assets - as reported

0.90

%

1.13

%

0.60

%

1.01

%

0.85

%

Net securities losses

0.71

0.35

Income tax effect of adjustments above

(0.16

)

(0.08

)

Adjusted return on average total assets (non-GAAP)

0.90

1.13

1.15

1.01

1.12

Return on average stockholders' equity - as reported

9.06

%

11.41

%

5.96

%

10.22

%

8.39

%

Net securities losses

7.01

3.53

Income tax effect of adjustments above

(1.54

)

(0.77

)

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

9.06

11.41

11.43

10.22

11.15

Return on average tangible common equity - as reported

11.82

%

15.01

%

7.90

%

13.38

%

11.12

%

Net securities losses

9.27

4.68

Amortization of other intangible assets

0.23

0.25

0.28

0.24

0.29

Income tax effect of adjustments above

(0.04

)

(0.05

)

(2.10

)

(0.05

)

(1.09

)

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

12.01

15.21

15.35

13.57

15.00


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures (unaudited)

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

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(Dollars in thousands, except per share amounts)

2019

2019

2018

2019

2018

Net income - as reported

$

10,653

$

12,927

$

6,743

$

23,580

$

18,816

Adjustments:

Net securities losses

7,921

7,921

Income tax effect of adjustments above

(1,742

)

(1,742

)

Adjusted net income (non-GAAP)

$

10,653

$

12,927

$

12,922

$

23,580

$

24,995

Diluted earnings per share - as reported

$

0.53

$

0.65

$

0.34

$

1.18

$

0.95

Adjustments:

Net securities losses

0.40

0.40

Income tax effect of adjustments above

(0.09

)

(0.09

)

Adjusted diluted earnings per share (non-GAAP)

$

0.53

$

0.65

$

0.65

$

1.18

$

1.26


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

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(Dollars in thousands, except per share amounts)

2019

2019

2018

2019

2018

Efficiency ratio - as reported

58.52

%

57.15

%

71.79

%

57.85

%

64.43

%

Non-interest expense - as reported

$

24,004

$

22,599

$

22,507

$

46,603

$

45,105

Less: Amortization of intangible assets

(210

)

(213

)

(242

)

(423

)

(488

)

Adjusted non-interest expense (non-GAAP)

$

23,794

$

22,386

$

22,265

$

46,180

$

44,617

Net interest income - as reported

$

35,517

$

34,323

$

33,929

$

69,840

$

68,468

Tax-equivalent adjustment

187

130

156

317

322

Net interest income, tax-equivalent basis

$

35,704

$

34,453

$

34,085

$

70,157

$

68,790

Non-interest income - as reported

$

5,499

$

5,218

$

(2,578

)

$

10,717

$

1,535

Less: Net securities losses/(gains)

(201

)

7,921

(201

)

7,921

Adjusted non-interest income (non-GAAP)

$

5,298

$

5,218

$

5,343

$

10,516

$

9,456

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

$

41,002

$

39,671

$

39,428

$

80,673

$

78,246

Adjusted efficiency ratio (non-GAAP) (1)

58.03

%

56.43

%

56.47

%

57.24

%

57.02

%

_______________________________

The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2019

2019

2018

2019

2018

Operating expense as a % of average assets - as reported

2.03

%

1.97

%

2.01

%

2.00

%

2.03

%

Amortization of other intangible assets

(0.02

)

(0.02

)

(0.02

)

(0.02

)

(0.02

)

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

2.01

1.95

1.99

1.98

2.01

_______________________________

(1) Adjusted efficiency ratio is calculated by dividing adjusted non-interest expense by the sum of net interest income on a tax-equivalent basis and adjusted non-interest income.


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures (unaudited)

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

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(Dollars in thousands)

2019

2019

2018

2019

2018

Net interest income - as reported

$

35,517

$

34,323

$

33,929

$

69,840

$

68,468

Tax-equivalent adjustment

187

130

156

317

322

Net interest income, tax-equivalent basis

$

35,704

$

34,453

$

34,085

$

70,157

$

68,790

Adjustment:

Less: Accretion income on acquired loans

(713

)

(385

)

(625

)

(1,098

)

(2,584

)

Adjusted net interest income, tax-equivalent basis (non-GAAP)

$

34,991

$

34,068

$

33,460

$

69,059

$

66,206

Average interest-earning assets - as reported

$

4,336,147

$

4,253,344

$

4,129,817

$

4,294,974

$

4,125,085

Adjustment:

Average purchase accounting adjustments on acquired loans

4,592

4,941

6,758

4,766

7,938

Adjusted average interest-earning assets (non-GAAP)

$

4,340,739

$

4,258,285

$

4,136,575

$

4,299,740

$

4,133,023

Average yield on loans, tax-equivalent basis - as reported

4.76

%

4.66

%

4.52

%

4.71

%

4.57

%

Adjustment:

Purchase accounting adjustments on acquired loans

(0.10

)

(0.05

)

(0.09

)

(0.07

)

(0.18

)

Adjusted average yield on loans (non-GAAP)

4.66

4.61

4.43

4.64

4.39

Net interest margin - as reported (1)

3.29

%

3.27

%

3.30

%

3.28

%

3.35

%

Tax-equivalent adjustment

0.01

0.02

0.01

0.01

0.01

Net interest margin, tax-equivalent basis (2)

3.30

3.29

3.31

3.29

3.36

Adjustment:

Purchase accounting adjustments on acquired loans

(0.07

)

(0.05

)

(0.07

)

(0.05

)

(0.13

)

Adjusted net interest margin (non-GAAP) (3)

3.23

3.24

3.24

3.24

3.23

_______________________________

(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 the tangible common equity to tangible assets calculation (non-GAAP):

June 30,

December 31,

June 30,

(Dollars in thousands)

2019

2018

2018

Total assets - as reported

$

4,714,535

$

4,700,744

$

4,414,785

Less: Goodwill and other intangible assets - as reported

(109,975

)

(110,324

)

(110,816

)

Tangible assets (non-GAAP)

$

4,604,560

$

4,590,420

$

4,303,969

Total stockholders' equity - as reported

$

475,205

$

453,830

$

439,755

Less: Goodwill and other intangible assets - as reported

(109,975

)

(110,324

)

(110,816

)

Tangible common equity (non-GAAP)

$

365,230

$

343,506

$

328,939

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

7.9

%

7.5

%

7.6

%

___________________________________

(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