8-K
Dime Commercial Bancshares, Inc. /NY/ (DCOM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8‑K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): April 29, 2020
BRIDGE BANCORP, INC.
(Exact name of the registrant as specified in its charter)
| New York | 001‑34096 | 11‑2934195 |
| --- | --- | --- | | (State or other jurisdiction of | (Commission File Number) | (IRS Employer | | incorporation or organization) | | Identification No.) |
| 2200 Montauk Highway | |
| --- | --- | | Bridgehampton, New York | 11932 | | (Address of principal executive offices) | (Zip Code) |
(631) 537‑1000
(Registrant’s telephone number)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8‑K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a‑12 under the Exchange Act (17 CFR 240.14a‑12)
☐ Pre-commencement communications pursuant to Rule 14d‑2(b) under the Exchange Act (17 CFR 240.14d‑2(b))
☐ Pre-commencement communications pursuant to Rule 13e‑4(c) under the Exchange Act (17 CFR 240.13e‑4c)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol\(s\) | Name of each exchange on which registered |
| --- | --- | --- | | Common Stock | BDGE | NASDAQ STOCK MARKET, LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b‑2 of the Securities Exchange Act of 1934 (17 CFR §240.12b‑2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On April 29, 2020, Bridge Bancorp, Inc. (the “Company”) issued a press release announcing its earnings for the quarter ended March 31, 2020. A copy of the press release is attached to this Current Report on Form 8‑K as Exhibit 99.1 and is incorporated herein by reference. The information contained in this Item 2.02, including the related information set forth in the Press Release attached hereto and incorporated by reference herein, is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section.
In addition to this press release, supplemental information regarding the Company and COVID-19 related matters will be available on the Company’s website at www.bnbbank.com under “Investor Relations” and will be filed in a Current Report on Form 8-K prior to the conference call.
Item 9.01. Financial Statements and Exhibits. | (a) | Not applicable. | | --- | --- | | (b) | Not applicable. | | --- | --- | | (c) | Not applicable. | | --- | --- | | (d) | Exhibits. | | --- | --- | | Exhibit No. | Description | | --- | --- | | 99.1 | Press Release dated April 29, 2020, announcing the earnings of the Company for the quarter ended March 31, 2020.* |
* Furnished electronically as an exhibit to this Current Report on Form 8‑K. This exhibit is being “furnished” and not “filed” with this Current Report on Form 8‑K.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Bridge Bancorp, Inc. | |
|---|---|
| (Registrant) | |
| /s/ Kevin M. O’Connor | |
| Kevin M. O’Connor | |
| President and Chief Executive Officer | |
| Dated: April 29, 2020 |
bdge\_Ex99\_1
Exhibit 99.1
Press Release
FOR IMMEDIATE RELEASE
| Contact: | John M. McCaffery |
| --- | --- | | | Executive Vice President | | | Chief Financial Officer | | | (631) 537-1001, ext. 7290 |
BRIDGE BANCORP, INC. REPORTS FIRST QUARTER 2020 RESULTS
(Bridgehampton, NY – April 29, 2020) Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced first quarter results for 2020.
The Company's first quarter 2020 financial results included:
| · | Net income for the 2020 first quarter of $9.3 million, or $0.47 per diluted share. |
| --- | --- | | · | Net interest income for the 2020 first quarter increased $2.3 million over the 2019 first quarter to $36.7 million, with a tax-equivalent net interest margin of 3.26%. | | --- | --- | | · | Total assets of $5.1 billion at March 31, 2020, 8% higher than March 31, 2019. | | --- | --- | | · | Loan growth of $371 million, or 11%, compared to March 31, 2019, and $82 million, or 9% annualized, from December 31, 2019. | | --- | --- | | · | Loan and line of credit originations of $220 million for the first quarter of 2020. | | --- | --- | | · | Non-public, non-brokered deposit growth of $141 million, or 5%, compared to March 31, 2019, and $74 million, or 10% annualized, from December 31, 2019. | | --- | --- | | · | Non-performing assets of $4.6 million at March 31, 2020, $1.4 million higher than March 31, 2019 and $0.2 million higher than December 31, 2019. Allowance for credit losses coverage to total loans of 1.04% at March 31, 2020. | | --- | --- | | · | The Company adopted CECL on January 1, 2020, which resulted in a charge to retained earnings and reduction to stockholders’ equity of $1.5 million. | | --- | --- | | · | The provision of $5.0 million included approximately $4.0 million related to our initial estimate of the economic impact of the COVID-19 pandemic. | | --- | --- | | · | Purchased 179,620 shares of the Company’s common stock at a cost of $4.6 million. | | --- | --- | | · | All capital ratios remain strong. Declared a dividend of $0.24 during the quarter. | | --- | --- |
Commenting on the first quarter results, Kevin O’Connor, President and CEO said, “We ended the first quarter with a sound foundation; our margin holding steady, fee income staying strong, and solid capital. In addition to being well capitalized from a financial perspective, the human capital and cultural values that have developed over the Bank’s 110 year history enabled us to meet the challenges of this current crisis and continue to serve our customers and our communities. To that end, we actively participated in the Payroll Protection Program (PPP) and originated over $900 million for 3,500 small businesses.”
Net Earnings and Returns
Net income in the 2020 first quarter was $9.3 million, or $0.47 per diluted share, a decrease of $3.6 million compared to the 2019 first quarter, driven primarily by higher provision for credit losses and non-interest expense, partially offset by higher net interest income.
Returns on average assets and equity in the 2020 first quarter were 0.76% and 7.50%, respectively. Return on average tangible common equity was 9.59% for the 2020 first quarter.
“Our reported net income of $0.47 per diluted share was impacted by a higher provision for credit losses primarily related to the COVID-19 pandemic, which reduced earnings per share by approximately $0.15, and reduced returns on average assets, equity and tangible common equity by approximately 25 basis points, 248 basis points and 318 basis points, respectively,” noted Mr. O’Connor.
Net Interest Income
Interest income was $44.6 million in the 2020 first quarter, an increase of $0.3 million compared to the 2019 fourth quarter, primarily due to loan portfolio growth and higher average yield in the securities portfolio, partially offset by lower average yield in the loan portfolio. Interest expense was $8.0 million in the 2020 first quarter, a decrease of $0.7 million compared to the 2019 fourth quarter, primarily due to a decrease in average cost of deposits coupled with a decrease in average borrowings, partially offset by an increase in average deposits.
The tax-equivalent net interest margin was 3.26% in the 2020 first quarter, which was unchanged compared to the 2019 fourth quarter and down 3 basis points year-over-year.
Commenting on the margin Mr. O’Connor said, “Similar to last year, we reacted quickly to the Fed’s rate cuts. Our total deposit costs dropped 12 basis points quarter-over-quarter with most of the impact in March. In fact, for the quarter, March had the highest margin of the three months at 3.29%.”
Provision for Credit Losses
The provision for credit loss expense was $5.0 million for the 2020 first quarter, $4.4 million higher than the 2019 first quarter. The higher provision was primarily attributable to higher expected credit losses due to the current projected economic impact of the COVID-19 pandemic. The Company recognized net charge-offs of $0.2 million in the 2020 first quarter, which was unchanged compared to the 2019 first quarter.
“We decided to implement the new accounting standard for credit losses “CECL” and not opt to delay adoption. In response to the COVID-19 pandemic, we assumed near-term economic stress, which resulted in a sizable credit loss expense. We will continue to focus on the ongoing effects of this crisis and provide accordingly. In addition, we recognized a $1.5 million charge to stockholders’ equity on January 1 for the cumulative effect of adopting this standard,” noted Mr. O’Connor.
Non-Interest Income
Non-interest income was $5.2 million for the 2020 first quarter, which was flat compared to the 2019 first quarter, primarily attributable to higher gain on sale of SBA loans, loan swap fees, and service charges and other fees, partially offset by a decrease in other income.
Non-Interest Expense
Non-interest expense for the 2020 first quarter of $24.8 million was $2.2 million higher than the 2019 first quarter. The increase in the first quarter was primarily due to higher salaries and benefits expense. Our operating expenses to average assets dropped by 10 basis points compared to the fourth quarter.
Income Tax Expense
Income tax expense was $2.7 million in the 2020 first quarter, a decrease of $0.7 million compared to the 2019 first quarter. The Company estimates it will record income tax at an effective tax rate of approximately 22.5% for the remainder of 2020.
Balance Sheet
Total assets were $5.1 billion at March 31, 2020, $139.4 million higher than December 31, 2019, and $385.7 million higher than March 31, 2019. Total loans held for investment at March 31, 2020 of $3.8 billion reflects growth of $371.0 million, or 11%, over March 31, 2019. Deposits totaled $4.1 billion at March 31, 2020, an increase of $330.3 million, or 9%, compared to March 31, 2019. Demand deposits increased $167.6 million year-over-year to $1.5 billion at March 31, 2020, representing 37% of total deposits.
The allowance for credit losses was $39.2 million at March 31, 2020, $7.4 million higher than March 31, 2019. The allowance as a percentage of loans was 1.04% at March 31, 2020, compared to 0.94% at March 31, 2019.
Stockholders’ equity was $493.3 million at March 31, 2020, $28.3 million higher than March 31, 2019. The growth reflects earnings, partially offset by shareholders’ dividends and stock repurchases. During the 2020 first quarter, the Company purchased 179,620 shares of its common stock under the repurchase plan at a cost of $4.6 million. Book value per share was $25.01 at March 31, 2020, $1.58 higher than March 31, 2019. Tangible book value per share was $19.46 at March 31, 2020, $1.58 higher than March 31, 2019.
| Change Compared To | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| March 31, | December 31, | March 31, | December 31, | March 31, | ||||||
| (Dollars in thousands) | 2020 | 2019 | 2019 | 2019 | 2019 | |||||
| Total assets | $ | 5,060,872 | $ | 4,921,520 | $ | 4,675,209 | $ | 139,352 | $ | 385,663 |
| Total stockholders' equity | 493,253 | 497,154 | 465,003 | (3,901) | 28,250 | |||||
| Loans held for investment | ||||||||||
| Investor commercial real estate ("CRE") | $ | 1,053,901 | $ | 1,034,599 | $ | 859,797 | $ | 19,302 | $ | 194,104 |
| Owner-occupied CRE | 529,877 | 531,088 | 542,836 | (1,211) | (12,959) | |||||
| Construction and land | 100,643 | 97,311 | 147,116 | 3,332 | (46,473) | |||||
| Commercial and industrial | 758,683 | 679,444 | 671,897 | 79,239 | 86,786 | |||||
| Total commercial | 2,443,104 | 2,342,442 | 2,221,646 | 100,662 | 221,458 | |||||
| Multi-family | 800,556 | 812,174 | 624,114 | (11,618) | 176,442 | |||||
| Residential real estate | 485,492 | 493,144 | 515,173 | (7,652) | (29,681) | |||||
| Installment and consumer | 25,051 | 24,836 | 22,781 | 215 | 2,270 | |||||
| Net deferred loan costs and fees | 7,927 | 7,689 | 7,390 | 238 | 537 | |||||
| Total loans held for investment | $ | 3,762,130 | $ | 3,680,285 | $ | 3,391,104 | $ | 81,845 | $ | 371,026 |
| Deposits | ||||||||||
| Total IPC deposits | $ | 3,115,746 | $ | 3,042,171 | $ | 2,974,282 | $ | 73,575 | $ | 141,464 |
| Brokered deposits | 201,566 | 164,034 | 166,696 | 37,532 | 34,870 | |||||
| Public deposits | 738,423 | 608,442 | 584,486 | 129,981 | 153,937 | |||||
| Total public and brokered deposits | 939,989 | 772,476 | 751,182 | 167,513 | 188,807 | |||||
| Total deposits | $ | 4,055,735 | $ | 3,814,647 | $ | 3,725,464 | $ | 241,088 | $ | 330,271 |
Loan and Line of Credit Origination Information (unaudited) | | Three Months Ended | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | March 31, | | December 31, | | March 31, | | | (Dollars in thousands) | 2020 | | 2019 | | 2019 | | | Investor CRE | $ | 41,738 | $ | 68,562 | $ | 13,975 | | Owner-occupied CRE | | 33,720 | | 20,221 | | 51,365 | | Commercial and industrial | | 75,796 | | 79,404 | | 55,223 | | Multi-family | | 38,915 | | 175,906 | | 28,216 | | Residential real estate | | 8,969 | | 9,228 | | 8,159 | | Other | | 21,011 | | 18,618 | | 13,967 | | Total loan and line of credit originations | $ | 220,149 | $ | 371,939 | $ | 170,905 | “We continued to generate business during the first quarter through additional C&I originations. This, along with greater line usage, resulted in a net increase in C&I loans outstanding of $79 million. IPC deposits also grew accordingly. At the end of the quarter, as the pandemic’s impact became clearer, we enhanced our liquidity profile by deferring investment purchases and adding to our brokered deposits,” Mr. O’Connor said.
Asset Quality
Asset quality measures remained solid, as non-performing assets were $4.6 million, or 0.09% of total assets, at March 31, 2020, compared to $3.2 million, or 0.07% of total assets, at March 31, 2019. Non-performing assets at March 31, 2019 included $0.2 million of other real estate owned. Non-performing loans were $4.6 million, or 0.12% of total loans at March 31, 2020, compared to $3.1 million, or 0.09% of total loans at March 31, 2019. Loans 30 to 89 days past due decreased $5.0 million to $12.9 million at March 31, 2020, compared to $17.9 million at March 31, 2019. Loans past due 90 days and accruing at March 31, 2020 and 2019 totaled $0.3 million. The increase in the current quarter of 30 to 89 days past due loans is primarily comprised of several residential loans.
Commenting on asset quality and the current environment, Mr. O’Connor stated, “Stating the obvious, we are seeing now and facing in the future, levels of economic inactivity not seen since the great depression. This will be a challenge to our industry. We have been working with borrowers, on a case by case basis, as they seek forbearance. Where granted we are working with them assessing their cash flows and ability to service their obligations. The historical performance of our Bank, while not an indication of future performance does evidence a credit discipline to potentially weather these difficult times. Although the environment is somewhat different it is useful to note that during the financial crisis the highest level of charge-offs we experienced in a given year was 47 basis points and the cumulative losses experienced was 143 basis points. Also, one should note that originated LTV on our multi-family/commercial real estate portfolio is 64%.”
Conference Call
The Company will host a conference call on Thursday, April 30, 2020 at 10:00 AM (ET) to discuss the 2020 first quarter results. In addition to this press release, supplemental information regarding the Company and COVID-19 related matters will be available on the Company’s website at www.bnbbank.com under “Investor Relations” and will be filed as a Current Report on Form 8-K prior to the conference call.
Investors who would like to join the conference call are encouraged to pre-register using the following link: http://dpregister.com/10141514. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. Telephonic replay will be available through the Company’s website beginning approximately one hour after the conclusion of the call through Thursday, May 14, 2020.
Call and replay information are as follows:
Call Date: Thursday, April 30, 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: 10141514
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 $5.1 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.
This release may contain statements relating to the future results of the Company (including certain projections and business trends) that are considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). Such forward-looking statements, in addition to historical information, involve risk and uncertainties, and are based on the beliefs, assumptions and expectations of management of the Company. Words such as “expects,” “believes,” “should,” “plans,” “anticipates,” “will,” “potential,” “could,” “intends,” “may,” “outlook,” “predicts,” “projects,” “would,” “estimates,” “assumes,” “likely,” and variation of such similar expressions are intended to identify such forward-looking statements. Examples of forward-looking statements include, but are not limited to, possible or assumed estimates with respect to the financial condition, expected or anticipated revenue, tax rates, and results of operations and business of the Company, including earnings growth; revenue growth in retail banking, lending and other areas; origination volume in the consumer, commercial and other lending businesses; current and future capital management programs; non-interest income levels, including fees from the title abstract subsidiary and banking services as well as product sales; tangible capital generation; market share; expense levels; and other business operations and strategies. The Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.
Factors that could cause future results to vary from current management expectations include, but are not limited to, changing economic conditions; legislative and regulatory changes, including increases in FDIC insurance rates; monetary and fiscal policies of the federal government; changes in tax policies; rates and regulations of federal, state and local tax authorities; changes in interest rates; deposit flows; the cost of funds; demands for loan products; demand for financial services; competition; changes in the quality and composition of BNB’s loan and investment portfolios; changes in management’s business strategies; changes in accounting principles, policies or guidelines; changes in real estate values; an unexpected increase in operating costs; expanded regulatory requirements; and other risk factors discussed elsewhere, and in our reports filed with the Securities and Exchange Commission. In addition, the COVID-19 pandemic is having an adverse impact on the Company, its customers and the communities it serves. The adverse effect of the COVID-19 pandemic on the Company, its customers and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. The forward-looking statements are made as of the date of this report, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
BRIDGE BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Condition (unaudited)
(In thousands)
| December 31, | March 31, | ||||
|---|---|---|---|---|---|
| 2019 | 2019 | ||||
| Assets | |||||
| Cash and due from banks | 61,352 | $ | 77,693 | $ | 68,773 |
| Interest-earning deposits with banks | 172,830 | 39,501 | 31,684 | ||
| Total cash and cash equivalents | 234,182 | 117,194 | 100,457 | ||
| Securities available for sale, at fair value | 553,278 | 638,291 | 707,451 | ||
| Securities held to maturity | 124,231 | 133,638 | 149,512 | ||
| Total securities | 677,509 | 771,929 | 856,963 | ||
| Securities, restricted | 26,354 | 32,879 | 28,068 | ||
| Loans held for sale | 12,643 | 12,643 | — | ||
| Loans held for investment | 3,762,130 | 3,680,285 | 3,391,104 | ||
| Allowance for credit losses | (39,215) | (32,786) | (31,784) | ||
| Loans held for investment, net | 3,722,915 | 3,647,499 | 3,359,320 | ||
| Premises and equipment, net | 34,521 | 34,062 | 34,478 | ||
| Operating lease right-of-use assets | 41,939 | 43,450 | 37,621 | ||
| Goodwill and other intangible assets | 109,422 | 109,627 | 110,100 | ||
| Other real estate owned | — | — | 175 | ||
| Accrued interest receivable and other assets | 201,387 | 152,237 | 148,027 | ||
| Total assets | 5,060,872 | $ | 4,921,520 | $ | 4,675,209 |
| Liabilities and stockholders' equity | |||||
| Demand deposits | 1,421,743 | $ | 1,386,037 | $ | 1,258,544 |
| Savings and negotiable order of withdrawal ("NOW") deposits | 421,212 | 438,902 | 513,971 | ||
| Money market deposit accounts ("MMDA") | 1,074,310 | 1,012,322 | 993,920 | ||
| Certificates of deposit of less than 100,000 | 58,820 | 58,640 | 61,240 | ||
| Certificates of deposit of 100,000 or more | 139,661 | 146,270 | 146,607 | ||
| Total individual, partnership and corporate ("IPC") deposits | 3,115,746 | 3,042,171 | 2,974,282 | ||
| Brokered deposits | 201,566 | 164,034 | 166,696 | ||
| Public funds - demand deposits | 59,809 | 132,921 | 55,403 | ||
| Public funds - other deposits | 678,614 | 475,521 | 529,083 | ||
| Total public and brokered deposits | 939,989 | 772,476 | 751,182 | ||
| Total deposits | 4,055,735 | 3,814,647 | 3,725,464 | ||
| Federal funds purchased and repurchase agreements | 1,195 | 999 | 721 | ||
| Federal Home Loan Bank ("FHLB") advances | 290,000 | 435,000 | 330,217 | ||
| Subordinated debentures, net | 78,955 | 78,920 | 78,815 | ||
| Operating lease liabilities | 44,571 | 45,977 | 40,454 | ||
| Other liabilities and accrued expenses | 97,163 | 48,823 | 34,535 | ||
| Total liabilities | 4,567,619 | 4,424,366 | 4,210,206 | ||
| Total stockholders' equity | 493,253 | 497,154 | 465,003 | ||
| Total liabilities and stockholders' equity | 5,060,872 | $ | 4,921,520 | $ | 4,675,209 |
All values are in US Dollars.
BRIDGE BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (unaudited)
(In thousands)
| | Three Months Ended | | | | | |
| --- | --- | --- | --- | --- | --- | --- | | | March 31, | | December 31, | | March 31, | | | | 2020 | | 2019 | | 2019 | | | Interest income | $ | 44,602 | $ | 44,320 | $ | 44,515 | | Interest expense | | 7,952 | | 8,672 | | 10,192 | | Net interest income | | 36,650 | | 35,648 | | 34,323 | | Provision for credit losses | | 5,000 | | 600 | | 600 | | Net interest income after provision for credit losses | | 31,650 | | 35,048 | | 33,723 | | Non-interest income: | | | | | | | | Service charges and other fees | | 2,500 | | 2,487 | | 2,428 | | Title fees | | 329 | | 571 | | 306 | | Net securities losses | | (15) | | — | | — | | Gain on sale of SBA loans | | 371 | | 322 | | 217 | | Bank owned life insurance | | 548 | | 560 | | 553 | | Loan swap fees | | 1,231 | | 4,260 | | 1,115 | | Other | | 253 | | 226 | | 599 | | Total non-interest income | | 5,217 | | 8,426 | | 5,218 | | Non-interest expense: | | | | | | | | Salaries and employee benefits | | 15,549 | | 15,011 | | 13,280 | | Occupancy and equipment | | 3,499 | | 3,791 | | 3,531 | | Amortization of other intangible assets | | 181 | | 182 | | 213 | | Other | | 5,614 | | 6,348 | | 5,575 | | Total non-interest expense | | 24,843 | | 25,332 | | 22,599 | | Income before income taxes | | 12,024 | | 18,142 | | 16,342 | | Income tax expense | | 2,676 | | 3,934 | | 3,415 | | Net income | $ | 9,348 | $ | 14,208 | $ | 12,927 | | Earnings Per Share (unaudited) | | | | | | | | (In thousands, except per share data) | Three Months Ended | | | | | | | | March 31, | | December 31, | | March 31, | | | | 2020 | | 2019 | | 2019 | | | Net income | $ | 9,348 | $ | 14,208 | $ | 12,927 | | Dividends paid on and earnings allocated to participating securities | | (195) | | (299) | | (277) | | Income attributable to common stock | $ | 9,153 | $ | 13,909 | $ | 12,650 | | Weighted average common shares outstanding, including participating securities | | 19,946 | | 19,957 | | 19,926 | | Weighted average participating securities | | (414) | | (419) | | (426) | | Weighted average common shares outstanding | | 19,532 | | 19,538 | | 19,500 | | Basic earnings per common share | $ | 0.47 | $ | 0.71 | $ | 0.65 | | Weighted average common shares outstanding | | 19,532 | | 19,538 | | 19,500 | | Incremental shares from assumed conversions of options and restricted stock units | | 34 | | 40 | | 26 | | Weighted average common and equivalent shares outstanding | | 19,566 | | 19,578 | | 19,526 | | Diluted earnings per common share | $ | 0.47 | $ | 0.71 | $ | 0.65 |
BRIDGE BANCORP, INC. AND SUBSIDIARIES
Consolidated Financial Highlights (unaudited)
(In thousands, except per share amounts and financial ratios)
| | Three Months Ended | | | | | |
| --- | --- | --- | --- | --- | --- | --- | | | March 31, | | December 31, | | March 31, | | | | 2020 | | 2019 | | 2019 | | | Selected Financial Data: | | | | | | | | Return on average total assets | 0.76 | % | 1.18 | % | 1.13 | % | | Return on average stockholders' equity | 7.50 | | 11.40 | | 11.41 | | | Return on average tangible common equity (1) (2) | 9.59 | | 14.66 | | 15.01 | | | Adjusted return on average tangible common equity (1) (2) | 9.74 | | 14.81 | | 15.21 | | | Net interest margin, tax-equivalent basis | 3.26 | | 3.26 | | 3.29 | | | Efficiency ratio | 59.34 | | 57.48 | | 57.15 | | | Adjusted efficiency ratio (1) | 58.74 | | 56.93 | | 56.43 | | | Operating expense/average assets | 2.01 | | 2.10 | | 1.97 | | | Adjusted operating expense/average assets (1) | 1.99 | | 2.09 | | 1.95 | |
| \(1\) | 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. |
|---|
| | March 31, | | | December 31, | | | March 31, | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2020 | | | 2019 | | | 2019 | | | | Selected Financial Data: | | | | | | | | | | | Book value per share | $ | 25.01 | | $ | 25.06 | | $ | 23.43 | | | Tangible book value per share (1) | $ | 19.46 | | $ | 19.54 | | $ | 17.88 | | | Common shares outstanding | | 19,722 | | | 19,837 | | | 19,848 | | | Capital Ratios: | | | | | | | | | | | Total capital to risk-weighted assets | | 12.9 | % | | 13.1 | % | | 13.3 | % | | Tier 1 capital to risk-weighted assets | | 10.0 | | | 10.2 | | | 10.2 | | | Common equity Tier 1 capital to risk-weighted assets | | 10.0 | | | 10.2 | | | 10.2 | | | Tier 1 capital to average assets | | 8.2 | | | 8.5 | | | 8.1 | | | Tangible common equity to tangible assets (1) (2) | | 7.8 | | | 8.1 | | | 7.8 | | | Tier 1 capital to average assets (Bank) | | 9.7 | | | 10.1 | | | 9.8 | | | Asset Quality: | | | | | | | | | | | Loans 30-89 days past due | $ | 12,941 | | $ | 6,366 | | $ | 17,937 | | | Loans 90 days past due and accruing | $ | 343 | | $ | 343 | | $ | 318 | | | Non-performing loans | $ | 4,609 | | $ | 4,369 | | $ | 3,071 | | | Other real estate owned | | — | | | — | | | 175 | | | Non-performing assets | $ | 4,609 | | $ | 4,369 | | $ | 3,246 | | | Non-performing loans/total loans | | 0.12 | % | | 0.12 | % | | 0.09 | % | | Non-performing assets/total assets | | 0.09 | | | 0.09 | | | 0.07 | | | Allowance/non-performing loans | | 850.84 | | | 750.42 | | | 1,034.97 | | | Allowance/total loans | | 1.04 | | | 0.89 | | | 0.94 | |
| \(1\) | 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 December 31, | Three Months Ended March 31, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2019 | ||||||||||||||||
| Average | Average | Average | |||||||||||||||
| Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||
| Interest | Cost | Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||
| Interest-earning assets: | |||||||||||||||||
| Loans, net (including loan fee income) (1) | 3,677,017 | $ | 39,810 | 4.35 | % | $ | 3,547,865 | $ | 39,780 | 4.45 | % | $ | 3,275,828 | $ | 37,659 | 4.66 | % |
| Securities (1) | 763,894 | 4,628 | 2.44 | 761,628 | 4,432 | 2.31 | 885,834 | 6,442 | 2.95 | ||||||||
| Deposits with banks | 91,884 | 267 | 1.17 | 46,994 | 212 | 1.79 | 91,682 | 544 | 2.41 | ||||||||
| Total interest-earning assets (1) | 4,532,795 | 44,705 | 3.97 | 4,356,487 | 44,424 | 4.05 | 4,253,344 | 44,645 | 4.26 | ||||||||
| Non-interest-earning assets: | |||||||||||||||||
| Other assets | 446,258 | 428,508 | 392,283 | ||||||||||||||
| Total assets | 4,979,053 | $ | 4,784,995 | $ | 4,645,627 | ||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| Savings | 303,834 | $ | 188 | 0.25 | % | $ | 335,743 | $ | 377 | 0.45 | % | $ | 398,499 | $ | 905 | 0.92 | % |
| NOW | 131,931 | 46 | 0.14 | 136,562 | 53 | 0.15 | 105,996 | 41 | 0.16 | ||||||||
| MMDA | 1,049,707 | 2,409 | 0.92 | 1,067,493 | 3,108 | 1.16 | 983,942 | 3,586 | 1.48 | ||||||||
| Savings, NOW and MMDA | 1,485,472 | 2,643 | 0.72 | 1,539,798 | 3,538 | 0.91 | 1,488,437 | 4,532 | 1.23 | ||||||||
| Certificates of deposit of less than 100,000 | 58,583 | 266 | 1.83 | 59,337 | 284 | 1.90 | 61,317 | 261 | 1.73 | ||||||||
| Certificates of deposit of 100,000 or more | 145,242 | 714 | 1.98 | 147,557 | 774 | 2.08 | 150,102 | 732 | 1.98 | ||||||||
| Total IPC deposits | 1,689,297 | 3,623 | 0.86 | 1,746,692 | 4,596 | 1.04 | 1,699,856 | 5,525 | 1.32 | ||||||||
| Brokered deposits | 166,523 | 692 | 1.67 | 93,372 | 391 | 1.66 | 209,409 | 1,210 | 2.34 | ||||||||
| Public funds | 673,232 | 1,391 | 0.83 | 452,509 | 939 | 0.82 | 534,568 | 1,179 | 0.89 | ||||||||
| Total public and brokered deposits | 839,755 | 2,083 | 1.00 | 545,881 | 1,330 | 0.97 | 743,977 | 2,389 | 1.30 | ||||||||
| Total deposits | 2,529,052 | 5,706 | 0.91 | 2,292,573 | 5,926 | 1.03 | 2,443,833 | 7,914 | 1.31 | ||||||||
| Federal funds purchased and repurchase agreements | 29,575 | 78 | 1.06 | 116,312 | 494 | 1.69 | 7,691 | 45 | 2.37 | ||||||||
| FHLB advances | 253,374 | 1,033 | 1.64 | 250,446 | 1,118 | 1.77 | 243,290 | 1,098 | 1.83 | ||||||||
| Subordinated debentures | 78,932 | 1,135 | 5.78 | 78,897 | 1,134 | 5.70 | 78,793 | 1,135 | 5.84 | ||||||||
| Total borrowings | 361,881 | 2,246 | 2.50 | 445,655 | 2,746 | 2.44 | 329,774 | 2,278 | 2.80 | ||||||||
| Total interest-bearing liabilities | 2,890,933 | 7,952 | 1.11 | 2,738,228 | 8,672 | 1.26 | 2,773,607 | 10,192 | 1.49 | ||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||
| Demand deposits | 1,473,962 | 1,452,908 | 1,333,498 | ||||||||||||||
| Other liabilities | 112,582 | 99,607 | 79,083 | ||||||||||||||
| Total liabilities | 4,477,477 | 4,290,743 | 4,186,188 | ||||||||||||||
| Stockholders' equity | 501,576 | 494,252 | 459,439 | ||||||||||||||
| Total liabilities and stockholders' equity | 4,979,053 | $ | 4,784,995 | $ | 4,645,627 | ||||||||||||
| Net interest rate spread | 2.86 | % | 2.79 | % | 2.77 | % | |||||||||||
| Net interest-earning assets | 1,641,862 | $ | 1,618,259 | $ | 1,479,737 | ||||||||||||
| Net interest margin - tax-equivalent | 36,753 | 3.26 | % | 35,752 | 3.26 | % | 34,453 | 3.29 | % | ||||||||
| Less: Tax-equivalent adjustment | (103) | (0.01) | (104) | (0.01) | (130) | (0.02) | |||||||||||
| Net interest income | $ | 36,650 | $ | 35,648 | $ | 34,323 | |||||||||||
| Net interest margin | 3.25 | % | 3.25 | % | 3.27 | % |
All values are in US Dollars.
(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 table presents a reconciliation of return on average tangible common equity (as reported) and adjusted return on average tangible common equity (non-GAAP).
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31, | December 31, | March 31, | ||||
| 2020 | 2019 | 2019 | ||||
| Return on average tangible common equity - as reported | 9.59 | % | 14.66 | % | 15.01 | % |
| Amortization of other intangible assets | 0.19 | 0.19 | 0.25 | |||
| Income tax effect of adjustments above | (0.04) | (0.04) | (0.05) | |||
| Adjusted return on average tangible common equity (non-GAAP) | 9.74 | 14.81 | 15.21 |
The following table presents a reconciliation of efficiency ratio (as reported) and adjusted efficiency ratio (non-GAAP):
| | Three Months Ended | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | March 31, | | | December 31, | | | March 31, | | | | (Dollars in thousands, except per share amounts) | 2020 | | | 2019 | | | 2019 | | | | Efficiency ratio - as reported | | 59.34 | % | | 57.48 | % | | 57.15 | % | | Non-interest expense - as reported | $ | 24,843 | | $ | 25,332 | | $ | 22,599 | | | Less: Amortization of intangible assets | | (181) | | | (182) | | | (213) | | | Adjusted non-interest expense (non-GAAP) | $ | 24,662 | | $ | 25,150 | | $ | 22,386 | | | Net interest income - as reported | $ | 36,650 | | $ | 35,648 | | $ | 34,323 | | | Tax-equivalent adjustment | | 103 | | | 104 | | | 130 | | | Net interest income, tax-equivalent basis | $ | 36,753 | | $ | 35,752 | | $ | 34,453 | | | Non-interest income - as reported | $ | 5,217 | | $ | 8,426 | | $ | 5,218 | | | Less: Net securities losses | | 15 | | | — | | | — | | | Adjusted non-interest income (non-GAAP) | $ | 5,232 | | $ | 8,426 | | $ | 5,218 | | | Adjusted total revenues for adjusted efficiency ratio (non-GAAP) | $ | 41,985 | | $ | 44,178 | | $ | 39,671 | | | Adjusted efficiency ratio (non-GAAP) (1) | | 58.74 | % | | 56.93 | % | | 56.43 | % |
| \(1\) | 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. |
| --- | --- |
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 | | | | | |
| --- | --- | --- | --- | --- | --- | --- | | | March 31, | | December 31, | | March 31, | | | | 2020 | | 2019 | | 2019 | | | Operating expense as a % of average assets - as reported | 2.01 | % | 2.10 | % | 1.97 | % | | Amortization of other intangible assets | (0.02) | | (0.01) | | (0.02) | | | Adjusted operating expense as a % of average assets (non-GAAP) | 1.99 | | 2.09 | | 1.95 | |
BRIDGE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures (unaudited)
The following table presents the tangible common equity to tangible assets calculation (non-GAAP):
| | March 31, | | | December 31, | | | March 31, | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (Dollars in thousands) | 2020 | | | 2019 | | | 2019 | | | | Total assets - as reported | $ | 5,060,872 | | $ | 4,921,520 | | $ | 4,675,209 | | | Less: Goodwill and other intangible assets - as reported | | (109,422) | | | (109,627) | | | (110,100) | | | Tangible assets (non-GAAP) | $ | 4,951,450 | | $ | 4,811,893 | | $ | 4,565,109 | | | Total stockholders' equity - as reported | $ | 493,253 | | $ | 497,154 | | $ | 465,003 | | | Less: Goodwill and other intangible assets - as reported | | (109,422) | | | (109,627) | | | (110,100) | | | Tangible common equity (non-GAAP) | $ | 383,831 | | $ | 387,527 | | $ | 354,903 | | | Tangible common equity to tangible assets (non-GAAP) (1) | | 7.8 | % | | 8.1 | % | | 7.8 | % |
| \(1\) | Calculated by dividing tangible common equity by tangible assets. |
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