Bridge Capital Holdings Reports Financial Results for the Third Quarter Ended September 30, 2008

Announces Plans for $30 Million Capital Raise and Sale of Nonperforming Loans


SAN JOSE, CA--(Marketwire - November 4, 2008) - Bridge Capital Holdings (NASDAQ: BBNK), whose subsidiary is Bridge Bank, National Association, announced today its financial results for the third quarter ended September 30, 2008. The Company also announced its plans to raise equity to further strengthen its capital position and sell loans to reduce nonperforming assets.

The Company reported a net loss of $(9.2) million, or $(1.41) per diluted share, for the three months ended September 30, 2008 compared to net income of $2.8 million, or $0.40 per diluted share, for the same period last year. The net loss for the nine months ended September 30, 2008 was $(9.0) million, or $(1.38) per diluted share compared to net income of $8.2 million, or $1.18 per diluted share, for the first nine months of 2007. The losses for the third quarter and first nine months of 2008 reflect the impact of a significant increase in its provision for credit losses related to planned sales of nonperforming assets.

CEO Commentary on Third Quarter Results and Recent Developments

"Earlier this week, we reached an understanding with private investors to raise approximately $30.0 million of capital in a private placement. While the Company's capital ratios continued to exceed the levels considered "well-capitalized" by regulatory standards, this strategy is a reflection of our commitment to making certain Bridge Capital Holdings is in the strongest possible position to navigate this uncertain economic environment," said Daniel P. Myers, President and Chief Executive Officer of Bridge Capital Holdings and Bridge Bank. "We are pleased to be able to raise additional capital in the current environment and we expect to announce the terms of this transaction when they have been finalized. Maintaining a strong capital position will provide us with the flexibility to navigate the current economic environment and to capitalize on growth opportunities for well-capitalized banks in our market. On a pro forma basis, following the capital raise, the Company's total risk-based capital ratio will be approximately 14.0%, well in excess of regulatory standards for "well capitalized" institutions.

"In addition, in response to the accelerated deterioration of economic conditions over the past several months, we have made a strategic decision to sell nonperforming loans in an amount that will significantly reduce our total nonperforming assets and improve the risk profile of the bank," continued Mr. Myers. "The loss in the third quarter reflects the impact of this decision as we have written the loans down to a liquidation value and added significantly to our loan loss reserves. Following the completion of planned asset sales we will have reduced the level of loans in nonperforming status at September 30, 2008 to less than 2% of total loans, increased reserves to 2.59% of total loans, and reduced construction and land development loans to less than 20% of total loans."

"We believe these steps to bolster our capital and reduce our exposure to nonperforming assets position the Company for the road ahead. We are confident that the actions we have taken to fortify our balance sheet and capital levels will position us to continue to meet the needs of our customers, capitalize on opportunities in the businesses and markets we know and build upon our foundation of diversified lending. Our core franchise remains sound."

Third Quarter Highlights

--  Reached an understanding with private investors to raise $30.0 million
    of capital in a private placement to further bolster the Company's capital
    position.  Before the additional capital, the Company's capital ratios
    exceeded "well capitalized" thresholds with total risk-based capital of
    10.27%; tier 1 risk-based capital of 9.02%; and tier 1 leverage ratio of
    8.44%.
    
--  Nonperforming loans were reduced to 2.81% of gross loans at September
    30, 2008, from 3.94% at June 30, 2008 as a result of write-downs related to
    the decision to sell at a liquidation value.  The Company recorded charges
    to the allowance for loan losses of approximately $15.9 million, primarily
    to reflect the expected impact of the sale of nonperforming loans.
    Completion of the anticipated sales would further reduce nonperforming
    loans to 1.08% of gross loans at September 30, 2008 on a pro forma basis.
    
--  Recorded a net loss of $(9.2) million for the third quarter of 2008
    due to a $19.0 million provision to the allowance for loan losses related
    to the sales of nonperforming loans.
    
--  As a result of the provision, the Company's allowance for loan and
    lease losses increased to 2.59% of gross loans which approximately doubles
    the coverage of nonperforming loans at September 30, 2008 to 92.0%, up from
    52.4% at June 30, 2008.  After completion of the strategic transactions,
    the allowance at September 30, 2008 would represent coverage of 244.1% of
    pro-forma nonperforming loans.
    
--  Total assets as of September 30, 2008 increased to $855.4 million or
    $50.1 million over total assets at June 30, 2008.  Deposits of $738.7
    million at September 30, 2008 increased $21.9 million over June 30, 2008.
    At September 30, 2008, demand deposits and core deposits continued to
    represent 31% and 86% of total deposits, respectively.
    
--  Gross loans at September 30, 2008 were $686.7 million compared to
    $611.2 million for the same period one year earlier.
    

Net Interest Income and Margin

Net interest income of $11.0 million for the quarter ended September 30, 2008 represented a decrease of approximately $1.3 million, or 11%, from $12.3 million for the same quarter one year earlier. Average earning assets of $821.2 million increased $64.0 million, or 9%, compared to $757.2 million for the same quarter in 2007. The Company's loan-to-deposit ratio, a measure of leverage, averaged 92.41% during the quarter ended September 30, 2008, which represented an increase compared to an average of 83.54% for the same quarter of 2007. The increase was a result of faster loan growth relative to deposit funding.

For the nine months ended September 30, 2008, net interest income of $34.7 million decreased $467,000, or 1%, from $35.2 million for the first nine months of 2007. Average earning assets of $772.8 million increased $71.0 million, or 10%, compared to $701.8 million for the same period in 2007. The Company's loan-to-deposit ratio for the nine months ended September 30, 2008 was 95.73%, an increase compared to an average of 86.52% for the nine months ended September 30, 2007 reflecting faster loan growth relative to deposit funding.

Changes in short-term interest rates also impact growth in net interest income as the interest rate earned on a majority of the Company's assets, specifically the loan portfolio, adjust with changes in short-term market rates. As such, the nature of the Company's balance sheet is that, over time as short-term interest rates change, income on interest earning assets has a greater impact on net interest income than interest paid on liabilities. The Company's prime rate averaged 5.00% and 5.43% in the quarter and nine months ended September 30, 2008, respectively, compared to 8.18% and 8.23% in the same periods, respectively, one year earlier.

The Company's net interest margin for the quarter ended September 30, 2008 was 5.32% compared to 6.46% for the same period in 2007. The decline was primarily the result of lower short term interest rates and interest reversed or foregone in connection with nonaccrual loans offset, in part, by income from interest rate hedges. During the quarter ended September 30, 2008, the net settlement from interest rate hedges contributed $550,000 to support net interest income compared to a loss of $92,000 for the quarter ended September 30, 2007.

The Company's net interest margin for the nine months ended September 30, 2008 was 6.01% compared to 6.71% for the same period one year earlier primarily due to a decrease in short term interest rates and an increase in nonaccrual loans offset, in part, by an increase in income from interest rate hedges. During the nine months ended September 30, 2008, the net settlement from interest rate hedges contributed $1.5 million to support net interest income compared to a loss of $296,000 for the same period in 2007.

Non-Interest Income

The Company's non-interest income for the quarter and nine months ended September 30, 2008 was $2.0 million and $5.3 million, respectively, compared to $1.4 million and $5.3 million, respectively for the same periods one year ago. For the quarter and nine months ended September 30, 2008 international fee income was $594,000 and $1.4 million, respectively, compared to $174,000 and $434,000, respectively, for the same periods in 2007. Additionally, included in non-interest income for the quarter and nine months ended September 30, 2008 was a hedge accounting adjustment of $151,000 and $603,000, respectively, pertaining to the Company's interest rate hedges, and the recognition of gains on the sale of securities of $413,000 and $711,000, respectively.

During the quarter and nine months ended September 30, 2008, the Company sold SBA loans totaling $2.9 million and $20.3 million, respectively, compared to $20.3 million and $75.0 million, respectively, for the same periods in 2007. The loans sold during the first nine months of 2007 included $11.3 million of un-guaranteed loans which resulted in an additional $1.2 million of non-interest income from the gain on sale for that period.

Net interest income and non-interest income comprised total revenue of $12.9 million for the three months ended September 30, 2008 compared to $13.8 million for the same period one year earlier, representing a decrease of $825,000, or 6%. For the nine months ended September 30, 2008, total revenue of $40.1 million compared to $40.6 million for the same period of 2007.

Non-Interest Expense

Non-interest expense was $9.8 million and $28.1 million for the quarter and nine months ended September 30, 2008, respectively, compared to $8.7 million and $25.0 million, respectively for the same periods in 2007. The increase in non-interest expense was primarily due to an increase in salary and benefits expense associated with the Company's expansion. Salary and benefits expense for the quarter ended September 30, 2008 was $5.9 million, an increase of $329,000 over $5.5 million in the same period of 2007. Salary and benefits expense for the nine months ended September 30, 2008 was $17.4 million, an increase of $1.6 million over $15.8 million in the same period of 2007. As of September 30, 2008 the Company employed 170 full-time equivalents (FTE) compared to 164 FTE on the same date one year earlier.

The Company's efficiency ratio, the ratio of non-interest expense to revenues, was 75.74% and 69.98% for the quarter and nine months ended September 30, 2008, respectively, compared to 63.30% and 61.63%, respectively for the same periods one year earlier.

Balance Sheet

Bridge Capital Holdings reported total assets at September 30, 2008 of $855.4 million, compared to $789.9 million at September 30, 2007, representing growth of $65.5 million, or 8%.

The Company reported total gross loans outstanding at September 30, 2008 of $686.7 million, which represented an increase of $75.5 million, or 12%, over $611.2 million as of September 30, 2007. The growth in the loan portfolio was primarily centered in commercial and industrial loans and commercial real estate loans. In addition, as of September 30, 2008, 61% of the loan portfolio consisted of non-real estate loans.

The Company's total deposits were $738.7 million as of September 30, 2008, compared to total deposits of $702.8 million as of September 30, 2007. The increase in deposits represented growth of $35.9 million, or 5%, compared to September 30, 2007. As of September 30, 2008, demand deposits and core deposits continued to represent 31% and 86% of total deposits, respectively.

For the quarter and nine months ended September 30, 2008, the Company's return on average assets was (4.27)% and (1.48)%, respectively, and compared to 1.36% and 1.46%, respectively, for the same periods one year earlier. For the quarter and nine months ended September 30, 2008, the Company's return on average equity was (54.48)% and (17.69)%, respectively, and compared to 19.02% and 20.20%, respectively for the same periods in 2007. Return on average equity for the third quarter and nine months ended September 30, 2008 was reduced, in part, by the impact of appreciation in the value of interest rate hedges to approximately $4.8 million which increased average other comprehensive income by approximately $2.2 million and $2.6 million, respectively.

Credit Quality

The allowance for loan losses was $17.8 million, or 2.59% of total loans, at September 30, 2008, compared to $8.0 million, or 1.31% of total loans, at September 30, 2007. The provision for credit losses for the three and nine months ended September 30, 2008 was $19.0 million and $27.6 million, respectively, compared to $475,000 and $1.7 million, respectively, for the same periods in 2007.

Nonperforming assets at September 30, 2008 consisted of thirteen lending relationships totaling $19.3 million that were on non-accrual status and determined to be impaired based upon the criteria set forth in SFAS No. 114, undeveloped land valued at $658,000 categorized as "other real estate owned", and one commercial property valued at $204,000 categorized as "other real estate owned".

During the third quarter of 2008, in part as the result of decisions to effect strategic transactions to reduce nonperforming loans, the Company charged-off $15.9 million of loss exposure. As a result, there no longer was an indicated potential loss exposure pertaining to nonperforming loans and no impairment reserves were required to be included in the allowance for credit losses.

The Company's loan charge-offs of $15.9 million during the third quarter ended September 30, 2008 compared to $312,000 for the same period one year earlier. The Company recognized $34,000 in loan recoveries and $250,000 in loan recoveries for the three months ended September 30, 2008 and 2007, respectively.

"We are taking decisive steps to proactively respond to a challenging and rapidly changing economic environment," said Thomas A. Sa, Executive Vice President and Chief Financial Officer of Bridge Capital Holdings and Bridge Bank. "Upon completion of our planned asset sales and capital raise in the fourth quarter of 2008, we will be in a strong position with reserves of over 2.6% of total loans and total risk-based capital approaching 14%."

Capital Adequacy

At September 30, 2008, shareholders' equity totaled $57.7 million, which included approximately $2.2 million in other comprehensive income as the result of increased value of interest rate hedges. Shareholders' equity at September 30, 2008 compared to $60.0 million on the same date one year earlier. The Company's total risk-based capital ratio, tier one capital ratio, and leverage ratio of 10.27%, 9.02%, and 8.44%, respectively, all exceeded the regulatory standards for "well-capitalized" institutions of 10.00%, 6.00%, 5.00%, respectively.

Conference Call and Webcast

Management will host a conference call tomorrow, November 5, 2008 at 9:00 a.m. Eastern time/6:00 a.m. Pacific time to further discuss the Company's financial results and answer questions.

Individuals interested in participating in the conference call may do so by dialing 800.891.6020 from the United States, or 702.696.4830 from outside the United States, and entering reservation code 70438459. Those interested in listening to the conference call live via the Internet may do so by visiting the Investor Relations section of the Company's Web site at www.bridgebank.com.

A telephone replay will be available for 48 hours following the conclusion of the call by dialing 800.642.1687 from the United States, or 706.645.9291 from outside the United States, and entering reservation code 70438459. A webcast replay will be available for 90 days.

About Bridge Capital Holdings

Bridge Capital Holdings is the holding company for Bridge Bank, National Association. Bridge Capital Holdings was formed on October 1, 2004 and holds a Global Select listing on The NASDAQ Stock Market under the trading symbol BBNK. For additional information, visit the Bridge Capital Holdings website at http://www.bridgecapitalholdings.com.

About Bridge Bank, N.A.

Bridge Bank, N.A. is Silicon Valley's full-service professional business bank. The Bank is dedicated to meeting the financial needs of small, middle market, and emerging technology businesses. Bridge Bank provides its clients with a comprehensive package of business banking solutions delivered through experienced, professional bankers. For additional information, visit the Bridge Bank website at http://www.bridgebank.com.

Forward-Looking Statements

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by that Act. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements describe future plans, strategies and expectations, such as, for example, the Company's plans to divest itself of non-performing assets, to sell convertible preferred shares and expectations regarding capital ratios. Forward-looking statements are based on currently available information, expectations, assumptions, projections, and management's judgment about the Company, the banking industry and general economic conditions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.

Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that might cause such differences include, but are not limited to: the Company's ability to reach definitive agreements regarding and to subsequently complete the sales of nonperforming assets and convertible preferred shares, the Company's ability to successfully execute its business plans and achieve its objectives; changes in general economic, real estate and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; new litigation or changes in existing litigation; future credit loss experience; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company's operations or business; loss of key personnel; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; and the ability to satisfy requirements related to the Sarbanes-Oxley Act and other regulation on internal control.

The reader should refer to the more complete discussion of such risks in Bridge Capital Holdings' annual reports on Forms 10-K and quarterly reports on Forms 10-Q on file with the Securities and Exchange Commission. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

-Financial Tables Follow-

                  BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
        INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                          (Dollars in Thousands)



                      Three months ended          Nine months ended
                     ---------  ---------  ---------  ---------  ---------
                     09/30/08   06/30/08   09/30/07   09/30/08   09/30/07
                     ---------  ---------  ---------  ---------  ---------

INTEREST INCOME
Loans                $  13,632  $  14,248  $  15,585  $  43,107  $  45,202
Federal funds sold         512        146      1,138        835      2,415
Investment
 securities
 available for sale         69        518        904      1,204      2,324
Other                       45         36          -         81          -
                     ---------  ---------  ---------  ---------  ---------
  Total interest
   income               14,258     14,948     17,627     45,227     49,941
                     ---------  ---------  ---------  ---------  ---------

INTEREST EXPENSE
Deposits:
  Interest-bearing
   demand                    3          3         10         10         33
  Money market and
   savings               2,083      1,997      3,984      6,662     10,609
  Certificates of
   deposit                 894        941      1,039      2,923      3,307
Other                      291        283        262        889        782
                     ---------  ---------  ---------  ---------  ---------
  Total interest
   expense               3,271      3,224      5,295     10,484     14,731
                     ---------  ---------  ---------  ---------  ---------

Net interest income     10,987     11,724     12,332     34,743     35,210
Provision for credit
 losses                 19,000      6,200        475     27,570      1,675
                     ---------  ---------  ---------  ---------  ---------
Net interest income
 after provision
     for credit
      losses            (8,013)     5,524     11,857      7,173     33,535
                     ---------  ---------  ---------  ---------  ---------

NON-INTEREST INCOME
Service charges on
 deposit accounts          327        258        166        814        497
Gain on sale of SBA
 loans                      87        186        363        556      2,986
Other non-interest
 income                  1,541      1,271        906      3,971      1,859
                     ---------  ---------  ---------  ---------  ---------
  Total non-interest
   income                1,955      1,715      1,435      5,341      5,342
                     ---------  ---------  ---------  ---------  ---------

OPERATING EXPENSES
Salaries and
 benefits                5,859      5,912      5,530     17,421     15,796
Premises and fixed
 assets                  1,163      1,156      1,173      3,424      3,149
Other                    2,780      2,443      2,012      7,204      6,046
                     ---------  ---------  ---------  ---------  ---------
  Total operating
   expenses              9,802      9,511      8,715     28,049     24,991
                     ---------  ---------  ---------  ---------  ---------

Income before income
 taxes                 (15,860)    (2,272)     4,577    (15,535)    13,886
Income taxes            (6,655)      (945)     1,825     (6,525)     5,707

                     ---------  ---------  ---------  ---------  ---------
NET INCOME           $  (9,205) $  (1,327) $   2,752  $  (9,010) $   8,179
                     =========  =========  =========  =========  =========

EARNINGS PER SHARE
Basic earnings per
 share               $   (1.41) $   (0.20) $    0.43  $   (1.38) $    1.28
                     =========  =========  =========  =========  =========
Diluted earnings per
 share               $   (1.41) $   (0.20) $    0.40  $   (1.38) $    1.18
                     =========  =========  =========  =========  =========
Average common
 shares outstanding  6,533,545  6,492,647  6,397,140  6,487,200  6,369,991
                     =========  =========  =========  =========  =========
Average common and
 equivalent
  shares outstanding 6,533,545  6,861,043  6,947,833  6,487,200  6,923,726
                     =========  =========  =========  =========  =========

PERFORMANCE MEASURES
Return on average
 assets                  -4.27%     -0.66%      1.36%     -1.48%      1.46%
Return on average
 equity                 -54.48%     -7.70%     19.02%    -17.69%     20.20%
Efficiency ratio         75.74%     70.77%     63.30%     69.98%     61.63%




                  BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
              INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                          (Dollars in Thousands)



                     09/30/08   06/30/08   03/31/08   12/31/07   09/30/07
                     ---------  ---------  ---------  ---------  ---------
ASSETS
Cash and due from
 banks               $  21,286  $  31,458  $  25,138  $  27,440  $  19,076
Federal funds sold     113,735     12,765     16,880     13,395     70,155
Interest-bearing
 deposits                4,915      5,606          -          -          -
Investment
 securities
 available for sale        101     28,879     46,823     55,482     66,071
Loans:
 Commercial            286,793    292,731    271,390    272,660    264,360
 SBA                    69,921     64,596     61,472     56,945     63,205
 Real estate
  construction          97,255     99,712     85,522     85,378     83,030
 Land and land
  development           41,136     58,863     60,783     56,196     58,938
 Real estate other     130,845    132,341    128,134    114,846     85,500
 Factoring and
  asset-based
  lending               50,006     46,819     53,108     57,662     43,942
 Other                  10,767     12,048     10,898      9,042     12,231
                     ---------  ---------  ---------  ---------  ---------
   Loans, gross        686,723    707,110    671,307    652,729    611,206
 Unearned fee income    (1,817)    (2,071)    (1,664)    (1,856)    (1,616)
 Allowance for
  credit losses        (17,764)   (14,608)   (10,978)    (8,608)    (8,003)
                     ---------  ---------  ---------  ---------  ---------
   Loans, net          667,142    690,431    658,665    642,265    601,587
Premises and
 equipment, net          5,044      5,093      5,045      5,005      4,618
Accrued interest
 receivable              3,217      3,325      4,074      4,400      4,748
Other assets            39,967     27,795     28,381     26,845     23,622
                     ---------  ---------  ---------  ---------  ---------
   Total assets      $ 855,407  $ 805,352  $ 785,006  $ 774,832  $ 789,877
                     =========  =========  =========  =========  =========

LIABILITIES
Deposits:
 Demand noninterest-
  bearing            $ 223,843  $ 229,329  $ 200,567  $ 198,641  $ 201,133
 Demand interest-
  bearing                4,224      4,439      4,587      5,350      4,271
 Money market and
  savings              404,212    386,332    386,369    372,923    418,503
 Time                  106,460     96,714     97,719     94,442     78,943
                     ---------  ---------  ---------  ---------  ---------
   Total deposits      738,739    716,814    689,242    671,356    702,850
                     ---------  ---------  ---------  ---------  ---------

Junior subordinated
 debt securities        17,527     17,527     17,527     17,527     17,527
Other borrowings        30,000          -          -     10,000          -
Accrued interest
 payable                   274        224        190        210        298
Other liabilities       11,176      4,605      9,176     10,655      9,187
                     ---------  ---------  ---------  ---------  ---------
   Total liabilities   797,716    739,170    716,135    709,748    729,862
                     ---------  ---------  ---------  ---------  ---------

SHAREHOLDERS' EQUITY
Common stock            39,139     38,703     38,040     37,697     36,888
Retained earnings       16,399     25,604     26,931     25,409     22,722
Accumulated other
 comprehensive
 (loss)                  2,153      1,875      3,900      1,978        405
                     ---------  ---------  ---------  ---------  ---------
   Total
    shareholders'
    equity              57,691     66,182     68,871     65,084     60,015
                     ---------  ---------  ---------  ---------  ---------
   Total liabilities
    and
    shareholders'
    equity           $ 855,407  $ 805,352  $ 785,006  $ 774,832  $ 789,877
                     =========  =========  =========  =========  =========

CAPITAL ADEQUACY
Tier I leverage
 ratio                    8.44%     10.26%     10.52%     10.66%     10.20%
Tier I risk-based
 capital ratio            9.02%     10.12%     10.47%     10.54%     10.68%
Total risk-based
 capital ratio           10.27%     11.37%     11.72%     11.67%     11.80%
Total equity/ total
 assets                   6.74%      8.22%      8.77%      8.40%      7.60%
Book value per share $    8.74  $   10.06  $   10.58  $   10.04  $    9.32




                  BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
  INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
                          (Dollars in Thousands)



                               Three months ended September 30,
                    -------------------------------------------------------
                               2008                        2007
                    --------------------------- ---------------------------
                              Yields   Interest           Yields   Interest
                    Average     or     Income/  Average     or     Income/
                    Balance    Rates   Expense  Balance    Rates   Expense
                    --------- -------  -------- --------- -------  --------
ASSETS
Interest earning
 assets (2):
  Loans (1)         $ 705,402    7.69% $ 13,632 $ 597,214   10.35% $ 15,585
  Federal funds
   sold               104,909    1.94%      512    89,483    5.05%    1,138
  Investment
   securities           5,419    5.07%       69    70,498    5.09%      904
  Other                 5,481    3.27%       45         -    0.00%        -
                    --------- -------  -------- --------- -------  --------
Total interest
 earning assets       821,211    6.91%   14,258   757,195    9.24%   17,627
                    --------- -------  -------- --------- -------  --------

Noninterest-earning
 assets:
  Cash and due from
   banks               18,154                      20,882
  All other assets
   (3)                 19,190                      23,172
                    ---------                   ---------
    TOTAL           $ 858,555                   $ 801,249
                    =========                   =========

LIABILITIES AND
  SHAREHOLDERS'
   EQUITY
Interest-bearing
 liabilities:
 Deposits:
  Demand            $   5,340    0.22% $      3 $   5,761    0.69% $     10
  Money market and
   savings            420,900    1.97%    2,083   417,255    3.79%    3,984
  Time                 99,290    3.58%      894    84,149    4.90%    1,039
Other                  21,386    5.41%      291    17,527    5.93%      262
                    --------- -------  -------- --------- -------  --------
Total
 interest-bearing
 liabilities          546,916    2.38%    3,271   524,692    4.00%    5,295
                    --------- -------  -------- --------- -------  --------

Noninterest-bearing
 liabilities:
  Demand deposits     237,831                     207,753
  Accrued expenses
   and
  other liabilities     6,586                      11,404
Shareholders'
 equity                67,222                      57,400
                    ---------                   ---------
  TOTAL             $ 858,555                   $ 801,249
                    =========                   =========

                              -------  --------           -------  --------
Net interest income
 and margin                      5.32% $ 10,987              6.46% $ 12,332
                              =======  ========           =======  ========




(1)  Loan fee amortization of $1.2 million and $1.5 million, respectively,
     is included in interest income.  Nonperforming loans have been
     included in average loan balances.
(2)  Interest income is reflected on an actual basis, not a fully taxable
     equivalent basis.  Yields are based on amortized cost.
(3)  Net of average allowance for credit losses of $15.8 million and $7.8
     million, respectively.




                  BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
  INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
                          (Dollars in Thousands)



                                Nine months ended September 30,
                    -------------------------------------------------------
                               2008                        2007
                    --------------------------- ---------------------------
                              Yields   Interest           Yields   Interest
                    Average     or     Income/  Average     or     Income/
                    Balance    Rates   Expense  Balance    Rates   Expense
                    --------- -------  -------- --------- -------  --------
ASSETS
Interest earning
 assets (2):
  Loans (1)         $ 684,690    8.41% $ 43,107 $ 578,204   10.41% $ 45,202
  Federal funds
   sold                52,514    2.12%      835    62,803    5.12%    2,415
  Investment
   securities          32,332    4.97%    1,204    60,809    5.09%    2,324
  Other                 3,294    3.28%       81         -    0.00%        -
                    --------- -------  -------- --------- -------  --------
Total interest
 earning assets       772,830    7.82%   45,227   701,816    9.48%   49,941
                    --------- -------  -------- --------- -------  --------

Noninterest-earning
 assets:
  Cash and due from
   banks               19,062                      27,210
  All other assets
   (3)                 22,791                      21,145
                    ---------                   ---------
    TOTAL           $ 814,683                   $ 750,171
                    =========                   =========

LIABILITIES AND
  SHAREHOLDERS'
   EQUITY
Interest-bearing
 liabilities:
 Deposits:
  Demand            $   5,271    0.25% $     10 $   5,563    0.79% $     33
  Money market and
   savings            390,347    2.28%    6,662   370,379    3.82%   10,609
  Time                 98,349    3.97%    2,923    91,247    4.83%    3,307
Other                  22,184    5.35%      889    17,527    5.94%      782
                    --------- -------  -------- --------- -------  --------
Total
 interest-bearing
 liabilities          516,151    2.71%   10,484   484,716    4.05%   14,731
                    --------- -------  -------- --------- -------  --------

Noninterest-bearing
 liabilities:
  Demand deposits     221,257                     201,103
  Accrued expenses
   and
   other liabilities    9,258                      10,209
Shareholders'
 equity                68,017                      54,143
                    ---------                   ---------
  TOTAL             $ 814,683                   $ 750,171
                    =========                   =========

                              -------  --------           -------  --------
Net interest income
 and margin                      6.01% $ 34,743              6.68% $ 35,210
                              =======  ========           =======  ========




(1)  Loan fee amortization of $4.3 million and $4.3 million, respectively,
     is included in interest income.  Nonperforming loans have been
     included in average loan balances.
(2)  Interest income is reflected on an actual basis, not a fully taxable
     equivalent basis.  Yields are based on amortized cost.
(3)  Net of average allowance for credit losses of $11.9 million and $7.5
     million, respectively.




                  BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
               INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
                          (Dollars in Thousands)



                          09/30/08  06/30/08  03/31/08  12/31/07  09/30/07
                          --------  --------  --------  --------  --------

ALLOWANCE FOR CREDIT
 LOSSES
Balance, beginning of
 period                   $ 14,608  $ 10,978  $  8,608  $  8,003  $  7,590
Provision for credit
 losses, quarterly          19,000     6,200     2,370       600       475
Charge-offs, quarterly     (15,878)   (2,571)        -         -      (312)
Recoveries, quarterly           34         1         -         5       250
                          --------  --------  --------  --------  --------
Balance, end of period    $ 17,764  $ 14,608  $ 10,978  $  8,608  $  8,003
                          ========  ========  ========  ========  ========




NONPERFORMING ASSETS
Loans accounted for on a
 non-accrual basis        $ 19,316  $ 27,872  $ 15,578  $  4,914  $      -
Loans restructured and in
 compliance with
  modified terms                 -         -         -         -         -
Other loans with
 principal or interest
 contractually
 past due 90 days or more        -         -         -         -         -
                          --------  --------  --------  --------  --------
  Nonperforming loans       19,316    27,872    15,578     4,914         -
Other real estate owned        862       979       348       425       425
                          --------  --------  --------  --------  --------
  Nonperforming assets    $ 20,178  $ 28,851  $ 15,926  $  5,339  $    425
                          ========  ========  ========  ========  ========




ASSET QUALITY
Allowance for credit
 losses / gross loans         2.59%     2.07%     1.64%     1.32%     1.31%
Allowance for credit
 losses / nonperforming
 loans                       91.97%    52.41%    70.47%   175.17%     0.00%
Nonperforming assets /
 total assets                 2.36%     3.58%     2.03%     0.69%     0.05%
Nonperforming loans /
 gross loans                  2.81%     3.94%     2.32%     0.75%     0.00%
Net quarterly charge-offs
 / gross loans                2.31%     0.36%     0.00%     0.00%     0.01%