SAN JOSE, CA--(Marketwire - February 7, 2008) - Bridge Capital Holdings (
NASDAQ:
BBNK), whose
subsidiary Bridge Bank, National Association was recently recognized as one
of the top performing banks in the United States by U.S. Banker magazine,
today announced financial results for the fourth quarter and year ended
December 31, 2007.
The Company reported net income of $2.7 million, or $0.39 per diluted
share, for the three months ended December 31, 2007. This represented an
increase of $300,000, or 13%, compared to net income of $2.4 million, or
$0.35 per diluted share, in the same period one year ago. Net income for
the twelve months ended December 31, 2007 was $10.9 million, or $1.57 per
diluted share, compared to $8.6 million, or $1.27 per diluted share, for
the year ended 2006, representing a 24% increase in earnings per share.
"Our achievements in 2007 stand out in an extremely challenging environment
facing the industry," said Allan C. Kramer M.D., Chairman of the Boards of
Bridge Capital Holdings and Bridge Bank. "The results are indicative of
solid execution of our franchise and continued strength in our operating
markets."
Fourth Quarter Highlights
-- Net income of $2.7 million for the fourth quarter of 2007 represented
an increase of $300,000 or 13% compared to $2.4 million for the fourth
quarter of 2006.
-- Growth in average earning assets produced an increase in net interest
income after provision for credit losses of $1.6 million, or 15%, compared
to the same period one year earlier.
-- Net interest margin for the fourth quarter increased to 6.93% from
6.46% in the third quarter of 2007.
-- Non-interest income increased $500,000 to $1.4 million in the fourth
quarter of 2007 from $900,000 in the fourth quarter of 2006, primarily due
to increased international fee income.
-- Return on average assets and return on average equity were 1.42% and
17.12%, respectively, for the fourth quarter of 2007.
Fiscal Year Highlights
-- Net income of $10.9 million for 2007 represented an increase of $2.3
million or 26% compared to $8.6 million for 2006.
-- Growth in average earning assets produced an increase in net interest
income after provision for credit losses of $8.0 million, or 21%, compared
to 2006.
-- Net interest margin for 2007 remained strong at 6.76%.
-- Non-interest income increased $2.9 million to $6.7 million for 2007
from $3.8 million for 2006, primarily due to increased volume of SBA loan
sales combined with increased international fee income.
-- Return on average assets and return on average equity were 1.45% and
19.34%, respectively, for 2007.
-- Total assets increased $52.8 million to $774.8 million as of December
31, 2007 compared to $722.0 million on the same date one year earlier.
"Our commercial and technology industries lines continued to drive strong
growth in interest income and net income with increases of 26% each for
2007," said Daniel P. Myers, President and Chief Executive Officer of
Bridge Capital Holdings and Bridge Bank. "Silicon Valley remains one of the
strongest economic regions in the State of California. Looking ahead, we
see significant opportunities to capitalize on quality loan demand in the
region and to attract new clients and talent as the banking sector
continues to consolidate. In the current environment, Bridge Bank has
performed better than the banking industry as a whole due to our primary
focus on business banking, our diversified business lines, and our
determination to manage risk exposure. We have deliberately limited our
direct exposure to the housing market and that is paying off. Our asset
quality remains strong and we believe we are well positioned for continued,
measured growth in 2008."
Net Interest Income and Margin
Earnings growth was driven primarily by growth in net interest income. Net
interest income of $12.4 million for the quarter ended December 31, 2007
represented an increase of approximately $1.6 million, or 15%, over $10.8
million reported for the same quarter one year earlier and was primarily
attributed to growth in average earning assets of $75.2 million, or 12%,
compared to the same quarter in 2006. The Company's loan-to-deposit ratio,
a measure of leverage, averaged 95.12% during the quarter ended December
31, 2007, which represented an increase compared to an average of 83.51%
for the same quarter of 2006.
For the twelve months ended December 31, 2007, net interest income of $47.6
million represented growth of $8.9 million, or 23%, over $38.7 million for
the year ended 2006. For the twelve month period, growth in average
earning assets was the primary driver of growth in net interest income.
Average earning assets were $703.5 million compared to $593.0 million for
the same period one year earlier. The Company's average loan-to-deposit
ratio for the twelve months ended December 31, 2007 was 88.67% compared to
87.12% for the prior year, reflecting slightly 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 7.53% and 8.05%,
respectively, in the quarter and twelve months ended December 31, 2007
compared to 8.25% and 7.96%, respectively, in the same periods one year
earlier.
The Company's net interest margin for the quarter ended December 31, 2007
was 6.93% compared to 6.77% for the same period one year earlier as a
result of increased loan fees. The net interest margin for the twelve
months ended December 31, 2007 was 6.76% compared to 6.87% for the year
ended 2006 as a result of growth in the volume of average interest bearing
liabilities and decreased balance sheet leverage.
"In the fourth quarter of 2006 and the first quarter of 2007, we entered
into two interest rate swap transactions in order to mitigate the exposure
in our prime-based loan portfolio to a decline in short-term interest
rates," said Thomas A. Sa, Executive Vice President and Chief Financial
Officer of Bridge Capital Holdings and Bridge Bank. "These two
transactions, which had a total notional value of $100 million, effectively
locked in the prime rate at approximately 7.83%. In addition, we increased
balance sheet leverage by transferring $50 million of higher-cost client
deposits to off-balance sheet investments. These strategies positively
affected our net interest margin which increased to 6.93% in the fourth
quarter of 2007 from 6.46% in the preceding quarter, even with the Federal
Reserve's lowering short-term interest rates by 100 basis points. We are
pleased with the results of these interest rate risk strategies; however,
recent actions by the Federal Reserve to reduce short-term rates by an
additional 125 basis points present a challenge going forward. While we
expect net interest margin to continue to be above industry norms, some
compression is likely."
Non-Interest Income
The Company's non-interest income for the quarter and twelve months ended
December 31, 2007 was $1.4 million and $6.7 million, respectively, compared
to $900,000 and $3.8 million, respectively, for the same periods one year
ago. Non-interest income is primarily comprised of gains realized on sales
of SBA loans, and the increase in non-interest income primarily reflects a
higher volume of SBA loan sales in 2007. During the quarter and twelve
months ended December 31, 2007, the Company sold SBA loans totaling $11.2
million and $90.3 million, respectively, compared to $26.6 million and
$66.3 million, respectively, for the same periods during 2006. In
addition, non-interest income for the quarter and year ended December 31,
2007 included $198,000 and $652,000, respectively, for international fee
income compared to $69,000 and $234,000, respectively, for the
corresponding periods in 2006. During the three and twelve months ended
December 31, 2007, the Company recognized $66,000 and $441,000,
respectively, resulting from the liquidation of warrant positions in
several of the Bank's loan clients.
Net interest income and non-interest income comprised total revenue of
$13.8 million for the three months ended December 31, 2007 compared to
$11.7 million for the same period one year earlier, representing an
increase of $2.1 million, or 18%. For the twelve months ended December 31,
2007, total revenue of $54.3 million represented an increase of $11.8, or
28%, over $42.5 million for the year ended 2006.
Non-Interest Expense
Non-interest expense was $8.6 million and $33.6 million for the quarter and
twelve months ended December 31, 2007, respectively, compared to $7.3
million and $27.3 million, respectively, for the same periods in 2006. 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 December 31, 2007 was $5.2 million,
an increase of $500,000 over $4.7 million in the same period of 2006.
Salary and benefits expense for the twelve months ended December 31, 2007
was $21.0 million, an increase of $3.6 million over $17.4 million in the
same period of 2006. As of December 31, 2007 the Company employed 170
full-time equivalents (FTE) compared to 140 FTE on the same date one year
earlier.
The Company's efficiency ratio, the ratio of non-interest expense to
revenues, was 62.44% and 61.83% for the quarter and twelve months ended
December 31, 2007 compared to 62.04% and 64.14%, respectively, in the same
periods one year earlier.
Balance Sheet
Bridge Capital Holdings reported total assets at December 31, 2007 of
$774.8 million, compared to $722.0 million on the same date one year ago.
The increase in total assets represented growth of $52.9 million, or 7%,
compared to December 31, 2006.
The Company reported total gross loans outstanding at December 31, 2007 of
$652.7 million, which represented an increase of $111.9 million, or 21%,
over $540.8 million for the same date one year earlier.
The Company's total deposits were $671.4 million as of December 31, 2007,
compared to total deposits of $645.0 million as of December 31, 2006. The
increase in deposits represented growth of $26.4 million, or 4%, compared
to December 31, 2006.
For the quarter ended December 31, 2007, the Company's return on average
assets and return on average equity were 1.42% and 17.12%, respectively,
and compared to 1.39% and 19.41%, respectively, for the same period in
2006. Return on average equity for the fourth quarter of 2007 was reduced,
in part, by the impact of appreciation in the value of interest rate swaps
of approximately $3.7 million which increased average other comprehensive
income by approximately $1.2 million. Return on average assets and return
on average equity for the twelve months ended December 31, 2007 were 1.45%
and 19.34%, respectively, compared to 1.42% and 19.34%, respectively, for
the same period one year earlier.
Credit Quality
The allowance for loan losses was $8.6 million, or 1.32% of total loans, at
December 31, 2007, compared to $7.3 million, or 1.36% of total loans, at
December 31, 2006. The provision for credit losses for the three and
twelve months ended December 31, 2007 was $600,000 and $2.3 million,
respectively, compared to $600,000 and $1.4 million, respectively, for the
same periods in 2006.
At December 31, 2007 nonperforming assets totaled $5.3 million, or 0.69% of
total assets, compared to $437,000, or 0.06% of total assets, on the same
date one year earlier. The nonperforming assets at December 31, 2007
consisted of four loans totaling $4.9 million that were on non-accrual
status and determined to be impaired based upon the criteria set forth in
SFAS No. 114, and one commercial property valued at $425,000 that was
categorized as "other real estate owned." Included in the non-performing
loans was one loan totaling $3.7 million at December 31, 2007 which was
collateralized by undeveloped land. This loan had an indicated potential
loss exposure of approximately $330,000 and an impairment reserve was
included in the allowance for loan losses. The other significant
non-performing loan is an SBA 504 loan that totaled $713,000 and was
adequately collateralized by undeveloped land. As such, no specific
reserve was required for this loan.
Although there has been an increase in non-performing loans, net loan
charge-offs remained low at 0.17% of average gross loans for the year
ending 2007. The Company had no loan charge-off activity during the three
months ended December 31, 2007 and 2006. During the twelve months ended
December 31, 2007, the Company charged-off balances totaling $1.3 million
which compared to no loan charge-off activity during the same period of
2006. During the three and twelve months ended December 31, 2007 the
Company recognized $5,000 and $259,000, respectively, in loan recoveries
compared to $1,000 in loan recoveries during the same periods of 2006.
Capital Adequacy
At December 31, 2007, shareholders' equity in the Company totaled $65.1
million, which included approximately $2.6 million in other comprehensive
income as the result of increased value of interest rate swaps and the
Bank's investment portfolio. Shareholder's equity at December 31, 2007
compared to $49.1 million on the same date one year earlier. As a result,
the Company's total risk-based capital ratio, tier one capital ratio, and
leverage ratio of 11.67%, 10.54%, and 10.66%, respectively, were all
substantially above the regulatory standards for "well-capitalized"
institutions.
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 is
listed 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 Santa Clara County's full-service professional
business bank. The bank is dedicated to meeting the financial needs of
small and middle market, and emerging technology businesses, in the Silicon
Valley, Palo Alto, Redwood City, San Ramon-Pleasanton, Sacramento, San
Diego, Bakersfield, Fresno, Orange County, Dallas, TX, and Reston, VA
business communities. 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 describe future plans, strategies, and
expectations, and are based on currently available information,
expectations, assumptions, projections, and management's judgment about the
Bank, the banking industry and general economic conditions. These forward
looking statements are subject to certain risks and uncertainties that
could cause the actual results, performance or achievements to differ
materially from those expressed, suggested or implied by the forward
looking statements.
These risks and uncertainties include, but are not limited to: (1)
competitive pressures in the banking industry; (2) changes in interest rate
environment; (3) general economic conditions, nationally, regionally, and
in operating markets; (4) changes in the regulatory environment; (5)
changes in business conditions and inflation; (6) changes in securities
markets; (7) future credit loss experience; (8) the ability to satisfy
requirements related to the Sarbanes-Oxley Act and other regulation on
internal control; (9) civil disturbances or terrorist threats or acts, or
apprehension about the possible future occurrences of acts of this type;
and (10) the involvement of the United States in war or other hostilities.
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 Exchange Commission.
-Financial Tables Follow-
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended Twelve months ended
----------------------------- -------------------
12/31/07 09/30/07 12/31/06 12/31/07 12/31/06
--------- --------- --------- --------- ---------
INTEREST INCOME
Loans $ 15,806 $ 15,585 $ 13,552 $ 61,008 $ 48,248
Federal funds sold 233 1,138 1,267 2,648 3,990
Investment securities
available for sale 765 904 408 3,089 724
--------- --------- --------- --------- ---------
Total interest income 16,804 17,627 15,227 66,745 52,962
--------- --------- --------- --------- ---------
INTEREST EXPENSE
Deposits:
Interest-bearing
demand 7 10 11 40 34
Money market and
savings 3,174 3,984 2,785 13,783 8,858
Certificates of
deposit 974 1,039 1,366 4,281 4,290
Other 274 262 264 1,056 1,089
--------- --------- --------- --------- ---------
Total interest
expense 4,429 5,295 4,426 19,160 14,271
--------- --------- --------- --------- ---------
Net interest income 12,375 12,332 10,801 47,585 38,691
Provision for credit
losses 600 475 600 2,275 1,372
--------- --------- --------- --------- ---------
Net interest income
after provision for
credit losses 11,775 11,857 10,201 45,310 37,319
--------- --------- --------- --------- ---------
NON-INTEREST INCOME
Service charges on
deposit accounts 173 166 128 672 498
Gain on sale of SBA
loans 580 363 670 3,564 1,734
Other non-interest
income 618 906 79 2,477 1,605
--------- --------- --------- --------- ---------
Total non-interest
income 1,371 1,435 877 6,713 3,837
--------- --------- --------- --------- ---------
OPERATING EXPENSES
Salaries and benefits 5,194 5,530 4,711 20,990 17,417
Premises and fixed
assets 1,189 1,173 711 4,337 2,833
Other 2,200 2,012 1,823 8,247 7,029
--------- --------- --------- --------- ---------
Total operating
expenses 8,583 8,715 7,245 33,574 27,279
--------- --------- --------- --------- ---------
Income before income
taxes 4,563 4,577 3,833 18,449 13,877
Income taxes 1,876 1,825 1,457 7,583 5,243
--------- --------- --------- --------- ---------
NET INCOME $ 2,687 $ 2,752 $ 2,376 $ 10,866 $ 8,634
========= ========= ========= ========= =========
EARNINGS PER SHARE
Basic earnings per share $ 0.42 $ 0.43 $ 0.38 $ 1.70 $ 1.38
========= ========= ========= ========= =========
Diluted earnings per
share $ 0.39 $ 0.40 $ 0.35 $ 1.57 $ 1.27
========= ========= ========= ========= =========
Average common shares
outstanding 6,410,099 6,397,140 6,309,307 6,380,100 6,274,051
========= ========= ========= ========= =========
Average common and
equivalent shares
outstanding 6,945,475 6,947,833 6,871,992 6,925,862 6,816,700
========= ========= ========= ========= =========
PERFORMANCE MEASURES
Return on average assets 1.42% 1.36% 1.39% 1.45% 1.42%
Return on average equity 17.12% 19.02% 19.41% 19.34% 19.34%
Efficiency ratio 62.44% 63.30% 62.04% 61.83% 64.14%
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
12/31/07 09/30/07 06/30/07 03/31/07 12/31/06
-------- -------- -------- -------- --------
ASSETS
Cash and due from banks $ 27,440 $ 19,076 $ 21,274 $ 21,673 $ 24,360
Federal funds sold 13,395 70,155 39,790 60,620 93,845
Investment securities
available for sale 55,482 66,071 73,362 53,920 43,933
Loans:
Commercial 272,660 264,360 258,978 213,436 197,174
SBA 56,945 63,205 56,176 60,871 59,888
Real estate
construction 85,378 83,030 104,652 116,282 103,710
Real estate other 171,042 144,438 134,299 123,853 115,313
Factoring and
asset-based lending 57,662 43,942 42,683 51,904 56,924
Other 9,042 12,231 9,341 8,794 7,771
-------- -------- -------- -------- --------
Loans, gross 652,729 611,206 606,129 575,140 540,780
Unearned fee income (1,856) (1,616) (1,483) (1,586) (1,495)
Allowance for credit
losses (8,608) (8,003) (7,590) (7,533) (7,329)
-------- -------- -------- -------- --------
Loans, net 642,265 601,587 597,056 566,021 531,956
Premises and equipment,
net 5,005 4,618 4,966 4,050 3,479
Accrued interest
receivable 4,400 4,748 4,608 4,212 4,292
Other assets 26,845 23,622 22,741 20,626 20,114
-------- -------- -------- -------- --------
Total assets $774,832 $789,877 $763,797 $731,122 $721,979
======== ======== ======== ======== ========
LIABILITIES
Deposits:
Demand
noninterest-bearing $198,641 $201,133 $218,651 $195,965 $198,639
Demand interest-bearing 5,350 4,271 4,563 9,611 3,901
Money market and
savings 372,923 418,503 372,470 352,975 333,838
Time 94,442 78,943 85,442 94,847 108,609
-------- -------- -------- -------- --------
Total deposits 671,356 702,850 681,126 653,398 644,987
-------- -------- -------- -------- --------
Junior subordinated debt
securities 17,527 17,527 17,527 17,527 17,527
Other borrowings 10,000 - - - -
Accrued interest payable 210 298 276 289 318
Other liabilities 10,655 9,187 9,882 7,449 10,053
-------- -------- -------- -------- --------
Total liabilities 709,748 729,862 708,811 678,663 672,885
-------- -------- -------- -------- --------
SHAREHOLDERS' EQUITY
Common stock 37,697 36,888 36,466 35,954 35,427
Retained earnings 25,409 22,722 19,970 16,987 14,543
Accumulated other
comprehensive (loss) 1,978 405 (1,450) (482) (876)
-------- -------- -------- -------- --------
Total shareholders'
equity 65,084 60,015 54,986 52,459 49,094
-------- -------- -------- -------- --------
Total liabilities
and shareholders'
equity $774,832 $789,877 $763,797 $731,122 $721,979
======== ======== ======== ======== ========
CAPITAL ADEQUACY
Tier I leverage ratio 10.66% 10.20% 10.13% 10.15% 10.97%
Tier I risk-based capital
ratio 10.54% 10.68% 10.48% 10.55% 10.52%
Total risk-based capital
ratio 11.67% 11.80% 11.56% 11.69% 11.74%
Total equity/ total
assets 8.40% 7.60% 7.20% 7.18% 6.80%
Book value per share $ 10.03 $ 9.32 $ 8.61 $ 8.21 $ 7.77
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
Three months ended December 31,
---------------------------------------------------
2007 2006
------------------------- -------------------------
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
--------- ----- -------- --------- ----- --------
ASSETS
Interest earning assets (2):
Loans (1) $ 626,763 10.01% $ 15,806 $ 504,030 10.67% $ 13,552
Federal funds sold 20,604 4.49% 233 96,067 5.23% 1,267
Investment securities 61,174 4.96% 765 33,198 4.88% 408
Total interest earning
assets 708,541 9.41% 16,804 633,295 9.54% 15,227
--------- ----- -------- --------- ----- --------
Noninterest-earning assets:
Cash and due from
banks 19,568 28,201
All other assets (3) 23,517 16,395
--------- ---------
TOTAL $ 751,626 $ 677,891
========= =========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand $ 4,846 0.57% $ 7 $ 4,811 0.91% $ 11
Money market and
savings 374,315 3.36% 3,174 308,786 3.58% 2,785
Time 80,517 4.80% 974 112,436 4.82% 1,366
Other 18,616 5.84% 274 17,527 5.98% 264
--------- ----- -------- --------- ----- --------
Total interest-bearing
liabilities 478,294 3.67% 4,429 443,560 3.96% 4,426
--------- ----- -------- --------- ----- --------
Noninterest-bearing
liabilities:
Demand deposits 199,224 177,525
Accrued expenses and
other liabilities 11,834 8,247
Shareholders' equity 62,274 48,559
--------- ---------
TOTAL $ 751,626 $ 677,891
========= =========
----- -------- ----- --------
Net interest income and
margin 6.93% $ 12,375 6.77% $ 10,801
===== ======== ===== ========
(1) Loan fee amortization of $1.6 million and $1.2 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 $8.2 million and $6.9
million, respectively.
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
Twelve months ended December 31,
---------------------------------------------------
2007 2006
------------------------- -------------------------
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
--------- ----- -------- --------- ----- --------
ASSETS
Interest earning assets (2):
Loans (1) $ 590,443 10.33% $ 61,008 $ 466,529 10.34% $ 48,248
Federal funds sold 52,166 5.08% 2,648 78,946 5.05% 3,990
Investment securities 60,901 5.07% 3,089 17,523 4.13% 724
Total interest earning
assets 703,510 9.49% 66,745 562,998 9.41% 52,962
--------- ----- -------- --------- ----- --------
Noninterest-earning assets:
Cash and due from
banks 25,284 27,748
All other assets (3) 21,744 15,760
--------- ---------
TOTAL $ 750,538 $ 606,506
========= =========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand $ 5,382 0.74% $ 40 $ 3,902 0.87% $ 34
Money market and
savings 371,371 3.71% 13,783 261,251 3.39% 8,858
Time 88,542 4.83% 4,281 99,924 4.29% 4,290
Other 17,802 5.93% 1,056 19,106 5.70% 1,089
--------- ----- -------- --------- ----- --------
Total interest-bearing
liabilities 483,097 3.97% 19,160 384,183 3.71% 14,271
--------- ----- -------- --------- ----- --------
Noninterest-bearing
liabilities:
Demand deposits 200,630 170,395
Accrued expenses and
other liabilities 10,619 7,282
Shareholders' equity 56,192 44,646
--------- ---------
TOTAL $ 750,538 $ 606,506
========= =========
----- -------- ----- --------
Net interest income and
margin 6.76% $ 47,585 6.87% $ 38,691
===== ======== ===== ========
(1) Loan fee amortization of $5.9 million and $4.2 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 $7.7 million and $6.5
million, respectively.
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
(Dollars in Thousands)
12/31/07 09/30/07 06/30/07 03/31/07 12/31/06
-------- -------- -------- -------- --------
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of
period $ 8,003 $ 7,590 $ 7,533 $ 7,329 $ 6,728
Provision for credit
losses, quarterly 600 475 1,000 200 600
Charge-offs, quarterly - (312) (943) - -
Recoveries, quarterly 5 250 - 4 1
-------- -------- -------- -------- --------
Balance, end of period $ 8,608 $ 8,003 $ 7,590 $ 7,533 $ 7,329
======== ======== ======== ======== ========
NONPERFORMING ASSETS
Loans accounted for on a
non-accrual basis $ 4,914 $ - $ - $ 5,450 $ 437
Loans restructured and in
compliance with modified
terms - - - - -
Other loans with
principal or interest
contractually past due
90 days or more - - - - -
-------- -------- -------- -------- --------
Nonperforming loans 4,914 - - 5,450 437
Other real estate owned 425 425 425 - -
-------- -------- -------- -------- --------
Nonperforming assets $ 5,339 $ 425 $ 425 $ 5,450 $ 437
======== ======== ======== ======== ========
ASSET QUALITY
Allowance for credit
losses / gross loans 1.32% 1.31% 1.25% 1.31% 1.36%
Allowance for credit
losses / nonperforming
loans 175.17% 0.00% 0.00% 138.22% 1677.12%
Nonperforming assets /
total assets 0.69% 0.05% 0.06% 0.75% 0.06%
Nonperforming loans /
gross loans 0.75% 0.00% 0.00% 0.95% 0.08%
Net quarterly charge-offs
/ gross loans 0.00% 0.01% 0.16% 0.00% 0.00%