Bridge Bancorp, Inc. Reports Third Quarter 2020 Results With Diluted Earnings Per Common Share of $0.66 (as Reported) and $0.77 (as Adjusted)

Bridge Bancorp, Inc.
·24 min read

BRIDGEHAMPTON, N.Y., Oct. 27, 2020 (GLOBE NEWSWIRE) -- 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 Companys 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 OConnor, 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 Returns
Net 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 Income
Interest 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. OConnor 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 Losses
The 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 Income
Non-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 Expense
Non-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 Expense
Income 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 Companys effective tax rate resulted primarily from non-deductible merger expenses in the 2020 third quarter.

Balance Sheet
Total 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 Quality
Asset 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. OConnor 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 Call
The 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/101 48363/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 Companys 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 Statements
This release may contain statements relating to the future results of the Company (including certain projections and business trends) that are considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 (the PSLRA). Such forward-looking statements, in addition to historical information, involve risk and uncertainties, and are based on the beliefs, assumptions and expectations of management of the Company. Words such as expects, believes, should, plans, anticipates, will, potential, could, intends, may, outlook, predicts, projects, would, estimates, assumes, likely, and variation of such similar expressions are intended to identify such forward-looking statements. Examples of forward-looking statements include, but are not limited to, possible or assumed estimates with respect to the financial condition, expected or anticipated revenue, tax rates, and results of operations and business of the Company, including earnings growth; revenue growth in retail banking, lending and other areas; origination volume in the consumer, commercial and other lending businesses; current and future capital management programs; non-interest income levels, including fees from the title abstract subsidiary and banking services as well as product sales; tangible capital generation; market share; expense levels; and other business operations and strategies. The Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.

Factors that could cause future results to vary from current management expectations include, but are not limited to, changing economic conditions; legislative and regulatory changes, including increases in FDIC insurance rates; monetary and fiscal policies of the federal government; changes in tax policies; rates and regulations of federal, state and local tax authorities; changes in interest rates; deposit flows; the cost of funds; demands for loan products; demand for financial services; competition; changes in the quality and composition of BNBs loan and investment portfolios; changes in managements 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 Companys 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 SUBSIDIARIES
Condensed 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 SUBSIDIARIES

Condensed 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 SUBSIDIARIES

Consolidated 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 SUBSIDIARIES

Supplemental Financial Information
Condensed 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 SUBSIDIARIES

Supplemental Financial Information
Condensed 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 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 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 SUBSIDIARIES

Non-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 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 net
interest 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