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 THIRD QUARTER 2020 RESULTS WITH DILUTED EARNINGS PER COMMON SHARE OF $0.66 (AS REPORTED) AND $0.77 (AS ADJUSTED)
(Bridgehampton, NY – October 27, 2020) Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced third quarter results for 2020.
The Company's third quarter 2020 financial results included:
| ● | Net income for the 2020 third quarter of $13.1 million, or $0.66 per diluted share, inclusive of pre-tax merger expenses of $2.4 million, or $0.11 per diluted share after tax, related to the Company’s merger with Dime Community Bancshares, Inc. (“Dime”). |
| ● | Excluding merger expenses, adjusted net income was $15.4 million, or $0.77 per diluted share. |
| ● | Adjusted pre-tax pre-provision net revenue was $20.9 million for the 2020 third quarter, flat compared to the linked quarter, and a $2.2 million, or 12%, increase year-over-year. |
| ● | Net interest income grew $0.3 million compared to the linked quarter, to $40.7 million, with a tax-equivalent net interest margin of 2.83%, or 3.22% on an adjusted basis. |
| ● | Total assets increased to $6.3 billion at September 30, 2020, 3% higher than June 30, 2020. |
| ● | Total deposits increased $288.7 million, and the cost of total deposits decreased 10 basis points, compared to the linked quarter. |
| ● | Non-public, non-brokered deposit growth of $322.0 million, or 8%, compared to June 30, 2020, and $1.3 billion, or 56% annualized, from December 31, 2019. |
| ● | Non-performing assets of $7.1 million at September 30, 2020, $0.7 million lower than June 30, 2020 and $2.7 million higher than December 31, 2019. Allowance for credit losses coverage to total loans of 0.94% at September 30, 2020. |
| ● | Total remaining loan payment deferrals at October 25, 2020 were $44 million, or 1.0%, of total loans held for investment. |
| ● | Provision for credit losses of $1.5 million, a decline of $3.0 million on a linked quarter basis. |
| ● | All capital ratios remain strong. Declared a dividend of $0.24 during the quarter. |
Reflecting on the third quarter results, Kevin O’Connor, President and CEO said, “Our strong quarterly results reflect the solid foundations of our balance sheet and business model. We continue to navigate this turbulent environment, supporting our employees who, in turn, support our customers. Additionally, we are working with our counterparts at Dime Community Bank to deliver a smooth transition for our customers. I want to thank all of the BNB employees-their ability to service our customers at the highest level while dealing with the pandemic, remote work, child-care issues, and a complicated integration, speaks volumes about their dedication and commitment. I could not be prouder to work with this group of professionals.”
Net Earnings and 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. O’Connor said, “The effects of the pandemic, and the economic and fiscal response continue to weigh on our net interest margin. The PPP forgiveness process has just started, and we are helping our customers navigate the SBA procedures. As of September 30, 2020, all PPP loans were still outstanding. Additionally, customers continue to conserve their liquidity as evidenced by the continued growth in deposits. Non-public customer deposits were up over $300 million quarter-over-quarter, which resulted in an outsized amount of overnight funds earning about 10 basis points. Without this excess liquidity and the PPP loans, the margin would have been 3.22% for the quarter. We continue to lower our already low deposit costs dropping them by 10 basis points quarter-over-quarter. This quarter we restructured our wholesale balance sheet, offsetting securities gains with swap termination losses for a $136 thousand net gain, which should positively impact the margin in the fourth quarter.”
Provision for Credit 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 Company’s 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. O’Connor stated, “As of October 25, 2020, there were $44 million in loans that had not reached the end of their forbearance agreements, which is about 1.0% of all loans as of the end of the quarter. This will continue to be a focus of management as we work closely with these customers to monitor their financial health.”
Conference 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/10148363/d9dd3cf1e4. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. Telephonic replay will be available through the Company’s website beginning approximately one hour after the conclusion of the call through Wednesday, November 11, 2020.
Call and replay information are as follows:
Call Date: Wednesday, October 28, 2020
Call Time: 10:00 AM (ET)
Domestic Call Dial In: 1-844-746-0738
International Call Dial In: 1-412-317-5271
Replay Domestic Dial In: 1-877-344-7529
Replay International Dial In: 1-412-317-0088
Access Code: 10148363
About Bridge Bancorp, Inc.
Bridge Bancorp, Inc. is a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, BNB Bank. Established in 1910, BNB, with assets of approximately $6.3 billion, operates 39 branch locations serving Long Island and the greater New York metropolitan area. Through its branch network and its electronic delivery channels, BNB provides deposit and loan products and financial services to local businesses, consumers and municipalities. Title insurance services are offered through BNB's wholly-owned subsidiary, Bridge Abstract. Bridge Financial Services, Inc., a wholly-owned subsidiary of BNB, offers financial planning and investment consultation. For more information visit www.bnbbank.com.
BNB also has a rich tradition of involvement in the community, supporting programs and initiatives that promote local business, the environment, education, healthcare, social services and the arts.
Please see the attached tables for selected financial information.
Forward Looking 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 BNB’s loan and investment portfolios; changes in management’s business strategies; changes in accounting principles, policies or guidelines; changes in real estate values; an unexpected increase in operating costs; expanded regulatory requirements; expenses related to our proposed merger with Dime Community Bancshares, Inc., unexpected delays related to the merger, or our inability to obtain regulatory approvals or satisfy other closing conditions required to complete the merger; and other risk factors discussed elsewhere, and in our reports filed with the Securities and Exchange Commission. In addition, the COVID-19 pandemic is having an adverse impact on the Company, its customers and the communities it serves. The adverse effect of the COVID-19 pandemic on the Company, its customers
and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. The forward-looking statements are made as of the date of this report, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
BRIDGE BANCORP, INC. AND 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. |