Bridge Bancorp, Inc. Reports Fourth Quarter and Year End 2020 Results With Diluted Earnings Per Common Share of $0.45 (as Reported) and $0.75 (as Adjusted)

Bridgehampton, New York, UNITED STATES


BRIDGEHAMPTON, N.Y., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced fourth quarter and year end results for 2020.

The Company's fourth quarter and full year 2020 financial results included:

  • Net income for the 2020 fourth quarter of $9.0 million, or $0.45 per diluted share, inclusive of merger and stock acceleration expenses related to the Company’s merger with Dime Community Bancshares, Inc. (“Dime”).
  • Excluding merger and stock acceleration expenses, and related tax adjustments, adjusted net income for the 2020 fourth quarter was $15.0 million, or $0.75 per diluted share.1
  • Net income for the full year 2020 of $42.0 million, or $2.11 per diluted share, compared to $51.7 million, or $2.59 per diluted share, for the full year 2019.
  • Excluding merger and stock acceleration expenses, and related tax adjustments, adjusted net income for the full year 2020 was $50.4 million, or $2.52 per diluted share.1
  • Adjusted pre-tax pre-provision net revenue was $19.9 million for the 2020 fourth quarter, $1.0 million lower compared to the linked quarter, and a $1.1 million, or 6%, increase year-over-year.1
  • Net interest income grew $2.3 million compared to the linked quarter, to $43.0 million, with a tax-equivalent net interest margin of 2.94%, or 3.24% on an adjusted basis.
  • Total assets increased to $6.4 billion at December 31, 2020, 2% higher than September 30, 2020.
  • Total deposits increased $120.2 million, and the cost of total deposits decreased 6 basis points, compared to the linked quarter.
  • Non-public, non-brokered deposit growth of $19.6 million, or 2% annualized, compared to September 30, 2020, and $1.3 billion, or 43%, from December 31, 2019.
  • Non-performing assets of $12.2 million at December 31, 2020, $5.1 million higher than September 30, 2020 and $7.8 million higher than December 31, 2019. Allowance for credit losses coverage to total loans of 0.96% at December 31, 2020.
  • Total remaining loan payment deferrals at January 22, 2021 were $76.1 million, or 1.7%, of total loans held for investment.
  • Provision for credit losses of $0.5 million, a decline of $1.0 million on a linked quarter basis.
  • All capital ratios remain strong. Declared a dividend of $0.24 during the quarter.
    1 See reconciliation of this non-GAAP financial measure provided elsewhere herein.

Commenting on the results, Kevin O’Connor, President and CEO said, “As we close the book on 2020, and look forward to opening as the new Dime Community Bank on February 1, 2021, we begin a new chapter in the story of Bridge Bancorp. I am amazed at the collective accomplishments of our team. Not just during the challenges of 2020, but in the past decade and over the last 110 years. Several years ago, we developed a mission statement, ‘To Be the Preeminent Community Bank in Our Markets, Providing Added Value and Superior Customer Service.’ Surveying our shared achievements, I’m proud to say, ‘Mission Accomplished!’”

Net Earnings and Returns
Net income in the 2020 fourth quarter was $9.0 million, or $0.45 per diluted share, which was $4.1 million, or $0.21 per diluted share, lower than the 2020 third quarter, primarily attributable to higher non-interest expense and lower non-interest income, partially offset by growth in net interest income, and lower provision for credit losses. Excluding the impact of merger and stock acceleration expenses, and related tax adjustments, net income for the 2020 fourth quarter was $15.0 million, or $0.75 per diluted share. Net income for the full year 2020 was $42.0 million, or $2.11 per diluted share, compared to $51.7 million, or $2.59 per diluted share, in 2019.

Returns on average assets and equity in the 2020 fourth quarter were 0.56% and 6.85%, respectively. Return on average tangible common equity was 8.67% for the 2020 fourth quarter (see reconciliation of this non-GAAP financial measure provided elsewhere herein). The merger and stock acceleration expenses, and related tax adjustments incurred during the quarter reduced returns on average assets, equity and tangible common equity by approximately 38 basis points, 462 basis points, and 596 basis points, respectively.

Net Interest Income
Interest income was $47.5 million in the 2020 fourth quarter, an increase of $1.2 million compared to the 2020 third quarter, primarily due to loan portfolio growth and higher average yields on loans, partially offset by a decline in the securities portfolio and lower average yields on securities. Interest expense was $4.5 million in the 2020 fourth quarter, a decrease of $1.1 million compared to the 2020 third quarter, primarily due to a decrease in the average cost of deposits and a decrease in average borrowings, partially offset by an increase in average deposits.

The tax-equivalent net interest margin in the 2020 fourth quarter showed an increase of 11 basis points to 2.94% from 2.83% in the linked quarter. 2020 fourth quarter loan yields showed an increase of 11 basis points to 3.83% from 3.72% in the linked quarter.

                 
  Three Months Ended  Change Compared To 
     December 31,  September 30, December 31,    September 30, December 31, 
  2020 2020 2019 2020 2019 
Average yield on loans, tax-equivalent basis   3.83%   3.72% 4.45% 11bp (62)bp 
                 
Net interest margin - as reported (1)   2.93%   2.82% 3.25% 11bp (32)bp 
Net interest margin, tax-equivalent basis (2)   2.94  2.83  3.26  11  (32) 
Adjusted net interest margin (non-GAAP) (3)   3.24  3.22  3.27  2  (3) 

____________________________

(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 Paycheck Protection Program (“PPP”) loans, divided by adjusted average interest-earning assets, excluding deposits with banks and PPP loans.

Provision for Credit Losses
The provision for credit loss expense was $0.5 million for the 2020 fourth quarter, $1.0 million lower than the 2020 third quarter, and $11.5 million for the full year 2020, $5.8 million higher than the full year 2019. The Company recorded additional expected credit losses in the 2020 first and second quarters related to its estimate of the economic impact of the COVID-19 pandemic. The Company recognized net recoveries of $0.2 million in the 2020 fourth quarter, compared to net charge-offs of $1.4 million in the 2020 third quarter. The Company recognized net charge-offs of $1.7 million in the full year 2020, compared to net charge-offs of $4.3 million in the full year 2019.

Non-Interest Income
Non-interest income was $5.4 million for the 2020 fourth quarter, which was $1.3 million lower compared to the 2020 third quarter, primarily attributable to net securities gains in the 2020 third quarter and a decrease in gain on sale of SBA loans during the 2020 fourth quarter, partially offset by a loss on termination of swaps in the 2020 third quarter. Non-interest income was $19.7 million for the full year 2020, $5.7 million lower than the full year 2019, driven primarily by a loss on termination of swaps in the 2020 third quarter, and decreases in loan swap fees, the fair value of loans held for sale, and service charges during 2020, partially offset by increases in net securities gains and gain on sale of SBA loans. 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 fourth quarter of $35.1 million was $6.1 million higher than the 2020 third quarter. Non-interest expense for the full year 2020 increased to $113.3 million from $96.1 million in full year 2019. The increase in the fourth quarter was primarily due to stock acceleration expense related to the Company’s merger with Dime. The increase in full year non-interest expense was primarily due to higher salaries and benefits expense, related to an increase in incentive accruals, in addition to merger and stock acceleration expenses. Excluding the impact of merger and stock acceleration expenses, total non-interest expense in the 2020 fourth quarter and full year 2020 would have been $28.8 million and $104.6 million, respectively.

Income Tax Expense
Income tax expense was $3.9 million in the 2020 fourth quarter, a decrease of $0.1 million compared to the 2020 third quarter. The effective tax rate for the 2020 fourth quarter was 30.2%, compared to 23.4% in the 2020 third quarter. Income tax expense was $13.7 million in the full year 2020, a decrease of $0.4 million compared to the full year 2019. The effective tax rate for the full year 2020 was 24.6%, compared to 21.4% for the full year 2019. The increase in the Company’s effective tax rate resulted primarily from non-deductible salaries and merger expenses related to the Company’s merger with Dime.

Balance Sheet
Total assets were $6.4 billion at December 31, 2020, $111.9 million higher than September 30, 2020. The rise in total assets compared to the linked quarter was largely attributable to a $153.5 million increase in interest-earning deposits with banks.

Total loans held for investment decreased $42.1 million to $4.6 billion during the 2020 fourth quarter, which includes the reclassification of a $43.0 million loan portfolio to held for sale as of December 31, 2020. Net deferred loan fees were $8.2 million at December 31, 2020, inclusive of $15.4 million remaining unamortized net loan fees related to PPP loans. The allowance for credit losses was $44.2 million at December 31, 2020, $0.7 million higher than September 30, 2020. The allowance as a percentage of loans was 0.96% and 0.94% at December 31, 2020 and September 30, 2020, respectively.

Total deposits increased $120.2 million (9% annualized) to $5.5 billion during the 2020 fourth quarter. Demand deposits increased $226.4 million during the 2020 fourth quarter to $2.5 billion at December 31, 2020, representing 45% of total deposits.

Total stockholders’ equity was $517.8 million at December 31, 2020, $5.6 million higher than September 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 $26.23 at December 31, 2020, $0.29 higher than September 30, 2020. Tangible book value per share was $20.69 at December 31, 2020, $0.29 higher than September 30, 2020 (see reconciliation of this non-GAAP financial measure provided elsewhere herein).

Balance Sheet Highlights (unaudited)

                 
           Change Compared To 
     December 31,     September 30,     December 31,     September 30,     December 31,  
(Dollars in thousands) 2020
 2020 2019 2020 2019 
Total assets $ 6,434,296  $6,322,377  $4,921,520 $111,919  $1,512,776  
Total stockholders' equity   517,831   512,221   497,154  5,610   20,677  
                 
Loans held for investment                
Investor commercial real estate ("CRE") $ 1,081,443  $1,097,290  $1,034,599 $(15,847) $46,844  
Owner-occupied CRE   557,076   532,597   531,088  24,479   25,988  
Construction and land   82,479   66,826   97,311  15,653   (14,832) 
Commercial and industrial   682,495   670,796   679,444  11,699   3,051  
Paycheck Protection Program ("PPP")   844,652   960,371   -  (115,719)  844,652  
Total commercial   3,248,145   3,327,880   2,342,442  (79,735)  905,703  
                 
Multi-family   899,730   853,263   812,174  46,467   87,556  
Residential real estate   434,689   449,984   493,144  (15,295)  (58,455) 
Installment and consumer   23,019   22,520   24,836  499   (1,817) 
Net deferred loan (fees) costs   (8,180)  (14,174)  7,689  5,994   (15,869) 
Total loans held for investment $ 4,597,403  $4,639,473  $3,680,285 $(42,070) $917,118  
                 
Deposits                
Total IPC deposits $ 4,338,170  $4,318,594  $3,042,171 $19,576  $1,295,999  
Brokered deposits   126,350   122,543   164,034  3,807   (37,684) 
Public deposits   1,024,733   927,932   608,442  96,801   416,291  
Total public and brokered deposits   1,151,083   1,050,475   772,476  100,608   378,607  
Total deposits $ 5,489,253  $5,369,069  $3,814,647 $120,184  $1,674,606  
                 
Loan-to-deposit ratio  83.75 %   86.41 %   96.48%   (2.66)%   (12.72)%  

Loan and Line of Credit Origination Information (unaudited)

                
  Three Months Ended  Year Ended
     December 31,  September 30, December 31,    December 31,  December 31,
(Dollars in thousands) 2020 2020 2019 2020 2019
Investor CRE $ 27,221 $68,597 $68,562 $ 183,616 $243,512
Owner-occupied CRE   23,533  23,937  20,221   104,477  118,286
Commercial and industrial   134,147  97,209  79,404   372,772  332,167
PPP    10,666     960,395  
Multi-family   68,511  19,773  175,906   175,529  297,860
Residential real estate   4,442  1,683  9,228   18,748  35,517
Other   52,246  28,010  18,618   110,465  94,337
Total loan and line of credit originations $ 310,100 $249,875 $371,939 $ 1,926,002 $1,121,679

Asset Quality
Asset quality measures remained solid, as non-performing assets were $12.2 million, or 0.19% of total assets, at December 31, 2020, compared to $7.1 million, or 0.11% of total assets, at September 30, 2020. Non-performing loans were $12.2 million, or 0.26% of total loans, at December 31, 2020, compared to $7.1 million, or 0.15% of total loans at September 30, 2020. Loans 30 to 89 days past due increased $0.9 million to $11.6 million at December 31, 2020, compared to $10.7 million at September 30, 2020.

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 $6.4 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)

          
     December 31,  September 30, December 31,
  2020
 2020 2019
Assets         
Cash and due from banks $ 107,729  $94,892  $77,693 
Interest-earning deposits with banks   769,099   615,575   39,501 
Total cash and cash equivalents   876,828   710,467   117,194 
Securities available for sale, at fair value   450,360   466,081   638,291 
Securities held to maturity   85,700   100,934   133,638 
Total securities   536,060   567,015   771,929 
Securities, restricted   23,362   23,362   32,879 
Loans held for sale   52,785   10,000   12,643 
Loans held for investment   4,597,403   4,639,473   3,680,285 
Allowance for credit losses   (44,200)  (43,474)  (32,786)
Loans held for investment, net   4,553,203   4,595,999   3,647,499 
Premises and equipment, net   34,872   34,341   34,062 
Operating lease right-of-use assets   44,007   44,642   43,450 
Goodwill and other intangible assets   109,328   109,398   109,627 
Accrued interest receivable and other assets   203,851   227,153   152,237 
Total assets $ 6,434,296  $6,322,377  $4,921,520 
          
Liabilities and stockholders' equity         
Demand deposits $ 2,304,794  $2,176,391  $1,386,037 
Savings and negotiable order of withdrawal ("NOW") deposits   632,126   686,310   438,902 
Money market deposit accounts ("MMDA")   1,213,506   1,265,136   1,012,322 
Certificates of deposit of less than $100,000   50,350   52,797   58,640 
Certificates of deposit of $100,000 or more   137,394   137,960   146,270 
Total individual, partnership and corporate ("IPC") deposits   4,338,170   4,318,594   3,042,171 
Brokered deposits   126,350   122,543   164,034 
Public funds - demand deposits   167,933   69,914   132,921 
Public funds - other deposits   856,800   858,018   475,521 
Total public and brokered deposits   1,151,083   1,050,475   772,476 
Total deposits   5,489,253   5,369,069   3,814,647 
Federal funds purchased and repurchase agreements   1,223   1,353   999 
Federal Home Loan Bank ("FHLB") advances   215,000   215,000   435,000 
Subordinated debentures, net   79,059   79,024   78,920 
Operating lease liabilities   46,713   47,383   45,977 
Other liabilities and accrued expenses   85,217   98,327   48,823 
Total liabilities   5,916,465   5,810,156   4,424,366 
Total stockholders' equity   517,831   512,221   497,154 
Total liabilities and stockholders' equity $ 6,434,296  $6,322,377  $4,921,520 

BRIDGE BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (unaudited)
(In thousands)

                
  Three Months Ended  Year Ended
  December 31,  September 30, December 31, December 31,  December 31,
     2020    2020    2019    2020
    2019
Interest income $ 47,484  $46,296  $44,320  $ 184,232  $181,541 
Interest expense   4,492   5,589   8,672    23,451   39,338 
Net interest income   42,992   40,707   35,648    160,781   142,203 
Provision for credit losses   500   1,500   600    11,500   5,700 
Net interest income after provision for credit losses   42,492   39,207   35,048    149,281   136,503 
                
Non-interest income:               
Service charges and other fees   2,351   2,215   2,487    8,955   10,059 
Title fees   928   695   571    2,337   1,720 
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   (234)         (2,877)   
Gain on sale of SBA loans   909   2,191   322    3,940   1,984 
Bank owned life insurance   548   543   560    2,186   2,230 
Loan swap fees   637   554   4,260    3,742   7,460 
Other   305   455   226    1,298   1,733 
Total non-interest income   5,444   6,790   8,426    19,703   25,387 
                
Non-interest expense:               
Salaries and employee benefits   17,109   16,406   15,011    62,983   56,244 
Stock acceleration expense   4,176          4,176    
Occupancy and equipment   3,669   3,599   3,791    14,287   14,372 
Merger expenses   2,100   2,352       4,452    
Amortization of other intangible assets   149   149   182    656   787 
Other   7,875   6,431   6,348    26,703   24,736 
Total non-interest expense   35,078   28,937   25,332    113,257   96,139 
                
Income before income taxes   12,858   17,060   18,142    55,727   65,751 
Income tax expense   3,881   3,999   3,934    13,685   14,060 
Net income $ 8,977  $13,061  $14,208  $ 42,042  $51,691 
                
                
                
Earnings Per Share (unaudited)               
(In thousands, except per share data) Three Months Ended  Year Ended
  December 31,  September 30, December 31, December 31,  December 31,
     2020    2020    2019 2020
 2019
Net income $ 8,977  $13,061  $14,208  $ 42,042  $51,691 
Dividends paid on and earnings allocated to participating securities   (183)   (276)  (299)   (872)  (1,096)
Income attributable to common stock $ 8,794  $12,785  $13,909  $ 41,170  $50,595 
                
Weighted average common shares outstanding, including participating securities   19,908    19,896   19,957    19,903   19,952 
Weighted average participating securities   (392)   (423)  (419)   (409)  (424)
Weighted average common shares outstanding   19,516    19,473   19,538    19,494   19,528 
Basic earnings per common share $ 0.45  $0.66  $0.71  $ 2.11  $2.59 
                
Weighted average common shares outstanding   19,516    19,473   19,538    19,494   19,528 
Incremental shares from assumed conversions of options and restricted stock units   58    41   40    55   31 
Weighted average common and equivalent shares outstanding   19,574    19,514   19,578    19,549   19,559 
Diluted earnings per common share $ 0.45  $0.66  $0.71  $ 2.11  $2.59 


BRIDGE BANCORP, INC. AND SUBSIDIARIES
Consolidated Financial Highlights (unaudited)
(In thousands, except per share amounts and financial ratios)

            
  Three Months Ended  Year Ended  
  December 31,  September 30, December 31, December 31,  December 31, 
  2020 2020 2019 2020 2019 
Selected Financial Data:           
Return on average total assets  0.56%  0.83%1.18% 0.72%  1.10%
Adjusted return on average total assets (1)  0.94 0.98 1.18  0.86 1.10 
Return on average stockholders' equity  6.85 10.15 11.40  8.26 10.84 
Adjusted return on average stockholders' equity (1)  11.47 11.93 11.40  9.90 10.84 
Return on average tangible common equity (1) (2)  8.67 12.90 14.66  10.52 14.09 
Adjusted return on average tangible common equity (1) (2)  14.63 15.28 14.81  12.74 14.26 
Net interest rate spread, tax-equivalent basis  2.71 2.55 2.79  2.70 2.80 
Net interest margin, tax-equivalent basis  2.94 2.83 3.26  2.99 3.31 
Average interest-earning assets to average interest-bearing liabilities  175.43 169.28 159.10  168.19 155.99 
Efficiency ratio  72.42 60.92 57.48  62.75 57.37 
Adjusted efficiency ratio (1)  58.77 55.71 56.93  56.62 56.79 
Operating expense/average assets  2.20 1.84 2.10  1.93 2.04 
Adjusted operating expense/average assets (1)  1.80 1.68 2.09  1.77 2.02 

 

____________________________

(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.

        
         

           
     December 31,  September 30, December 31, 
  2020 2020 2019 
Selected Financial Data:          
Book value per share $ 26.23 $25.94 $25.06 
Tangible book value per share (1) $ 20.69 $20.40 $19.54 
Common shares outstanding   19,744  19,749  19,837 
           
Capital Ratios:          
Total capital to risk-weighted assets   13.0%   13.3% 13.1%
Tier 1 capital to risk-weighted assets   10.3  10.3  10.2 
Common equity Tier 1 capital to risk-weighted assets   10.3  10.3  10.2 
Tier 1 capital to average assets   6.8  6.8  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%   13.2% 13.0%
Tier 1 capital to risk-weighted assets   12.2  12.2  12.1 
Common equity Tier 1 capital to risk-weighted assets   12.2  12.2  12.1 
Tier 1 capital to average assets   8.1  8.1  10.1 
           
Asset Quality:          
Loans 30-89 days past due $ 11,613 $10,682 $6,366 
Loans 90 days past due and accruing $ $ $343 
Non-performing loans/ Non-performing assets $ 12,162 $7,064 $4,369 
Non-performing loans/total loans   0.26%   0.15% 0.12%
Non-performing assets/total assets   0.19  0.11  0.09 
Allowance/non-performing loans   363.43  615.43  750.42 
Allowance/total loans   0.96  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 December 31,   Three Months Ended September 30,  Three Months Ended December 31, 
  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) $ 4,641,754 $ 44,649   3.83 %   $4,612,125 $43,108  3.72 % $3,547,865  $39,780  4.45 %
Securities (1)   563,124   2,760   1.95    596,981  3,144  2.10    761,628   4,432  2.31  
Deposits with banks   624,415   159   0.10    531,205  135  0.10    46,994   212  1.79  
Total interest-earning assets (1)   5,829,293   47,568   3.25    5,740,311  46,387  3.21    4,356,487   44,424  4.05  
Non-interest-earning assets:                              
Other assets   506,978        509,574        428,508       
Total assets $ 6,336,271       $6,249,885       $4,784,995       
                             
Interest-bearing liabilities:                               
Savings $ 366,824 $ 62   0.07 %   $353,624 $72  0.08 % $335,743  $377  0.45 %
NOW   251,539   29   0.05    219,275  29  0.05    136,562   53  0.15  
MMDA   1,275,540   888   0.28    1,247,455  1,016  0.32    1,067,493   3,108  1.16  
Savings, NOW and MMDA   1,893,903   979   0.21    1,820,354  1,117  0.24    1,539,798   3,538  0.91  
Certificates of deposit of less than $100,000   51,422   124   0.96    53,813  155  1.15    59,337   284  1.90  
Certificates of deposit of $100,000 or more   138,434   323   0.93    140,982  387  1.09    147,557   774  2.08  
Total IPC deposits   2,083,759   1,426   0.27    2,015,149  1,659  0.33    1,746,692   4,596  1.04  
Brokered deposits   125,215   321   1.02    139,760  339  0.96    93,372   391  1.66  
Public funds   818,286   920   0.45    825,734  1,049  0.51    452,509   939  0.82  
Total public and brokered deposits   943,501   1,241   0.52    965,494  1,388  0.57    545,881   1,330  0.97  
Total deposits   3,027,260   2,667   0.35    2,980,643  3,047  0.41    2,292,573   5,926  1.03  
Federal funds purchased and repurchase agreements   1,503        1,793        116,312   494  1.69  
FHLB advances   215,000   829   1.53    329,674  1,407  1.70    250,446   1,118  1.77  
Subordinated debentures   79,037   996   5.01    79,003  1,135  5.72    78,897   1,134  5.70  
Total borrowings   295,540   1,825   2.46    410,470  2,542  2.46    445,655   2,746  2.44  
Total interest-bearing liabilities   3,322,800   4,492   0.54    3,391,113  5,589  0.66    2,738,228   8,672  1.26  
Non-interest-bearing liabilities:                               
Demand deposits   2,347,853        2,193,615        1,452,908       
Other liabilities   144,213        153,102        99,607       
Total liabilities   5,814,866        5,737,830        4,290,743       
Stockholders' equity   521,405        512,055        494,252       
Total liabilities and stockholders' equity $ 6,336,271       $6,249,885       $4,784,995       
                             
Net interest rate spread        2.71 %         2.55 %        2.79 %
Net interest-earning assets $ 2,506,493       $2,349,198       $1,618,259       
Net interest margin - tax-equivalent      43,076   2.94 %       40,798  2.83 %      35,752  3.26 %
Less: Tax-equivalent adjustment      (84)  (0.01)      (91) (0.01)       (104) (0.01) 
Net interest income    $ 42,992        $40,707         $35,648    
Net interest margin        2.93 %         2.82 %        3.25 %
                             

____________________________
(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)

                  
  Year Ended December 31,  
  2020 2019 
      Average     Average 
  Average   Yield/ Average   Yield/ 
     Balance    Interest    Cost    Balance Interest Cost 
Interest-earning assets:                 
Loans, net (including loan fee income) (1) $ 4,341,647 $ 169,611   3.91 %  $3,410,773 $158,492  4.65 %
Securities (1)   642,461   14,328   2.23   823,280  21,874  2.66  
Deposits with banks   404,272   673   0.17   75,600  1,697  2.24  
Total interest-earning assets (1)   5,388,380   184,612   3.43   4,309,653  182,063  4.22  
Non-interest-earning assets:                   
Other assets   483,647        408,813      
Total assets $ 5,872,027       $4,718,466      
                  
Interest-bearing liabilities:                    
Savings $ 335,543 $ 417   0.12 %  $402,701 $3,596  0.89 %
NOW   183,882   130   0.07   123,075  193  0.16  
MMDA   1,181,572   5,448   0.46   1,024,719  13,986  1.36  
Savings, NOW and MMDA   1,700,997   5,995   0.35   1,550,495  17,775  1.15  
Certificates of deposit of less than $100,000   55,092   759   1.38   60,428  1,129  1.87  
Certificates of deposit of $100,000 or more   143,072   1,999   1.40   150,638  3,156  2.10  
Total IPC deposits   1,899,161   8,753   0.46   1,761,561  22,060  1.25  
Brokered deposits   160,320   1,806   1.13   127,765  2,759  2.16  
Public funds   772,041   4,420   0.57   508,240  4,640  0.91  
Total public and brokered deposits   932,361   6,226   0.67   636,005  7,399  1.16  
Total deposits   2,831,522   14,979   0.53   2,397,566  29,459  1.23  
Federal funds purchased and repurchase agreements   8,595   79   0.92   41,077  767  1.87  
FHLB advances   284,718   3,992   1.40   245,283  4,573  1.86  
Subordinated debentures   78,985   4,401   5.57   78,845  4,539  5.76  
Total borrowings   372,298   8,472   2.28   365,205  9,879  2.71  
Total interest-bearing liabilities   3,203,820   23,451   0.73   2,762,771  39,338  1.42  
Non-interest-bearing liabilities:                   
Demand deposits   2,020,575         1,392,606      
Other liabilities   138,665         86,130      
Total liabilities   5,363,060         4,241,507      
Stockholders' equity   508,967         476,959      
Total liabilities and stockholders' equity $ 5,872,027        $4,718,466      
                  
Net interest rate spread         2.70 %        2.80 %
Net interest-earning assets $ 2,184,560       $1,546,882      
Net interest margin - tax-equivalent      161,161   2.99 %      142,725  3.31 %
Less: Tax-equivalent adjustment       (380)  (0.01)     (522) (0.01) 
Net interest income    $ 160,781       $142,203    
Net interest margin        2.98 %        3.30 %
                  

____________________________
(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 and stock acceleration 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  Year Ended  
     December 31,  September 30, December 31,    December 31,  December 31, 
  2020 2020 2019 2020 2019 
Return on average total assets - as reported  0.56 %  0.83 %1.18 % 0.72 %  1.10 %
Merger expenses  0.13  0.15     0.08    
Stock acceleration expense  0.26       0.07    
Income tax effect of adjustments  (0.01)      (0.01)   
Adjusted return on average total assets (non-GAAP)  0.94  0.98  1.18   0.86  1.10  
            
Return on average stockholders' equity - as reported  6.85 %  10.15 %11.40 % 8.26 %  10.84 %
Merger expenses  1.60  1.83     0.87    
Stock acceleration expense  3.19       0.82    
Income tax effect of adjustments  (0.17) (0.05)    (0.05)   
Adjusted return on average stockholders' equity (non-GAAP)  11.47  11.93  11.40   9.90  10.84  
            
Return on average tangible common equity - as reported  8.67 %  12.90 %14.66 % 10.52 %  14.09 %
Merger expenses  2.03  2.32     1.11    
Stock acceleration expense  4.03       1.05    
Amortization of other intangible assets  0.14  0.15  0.19   0.16  0.21  
Income tax effect of adjustments  (0.24) (0.09) (0.04)  (0.10) (0.04) 
Adjusted return on average tangible common equity (non-GAAP)  14.63  15.28  14.81   12.74  14.26  

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 and stock acceleration expenses:

                
  Three Months Ended  Year Ended
     December 31,  September 30, December 31,    December 31,  December 31,
(Dollars in thousands, except per share amounts) 2020
 2020 2019 2020
 2019
Net income - as reported $ 8,977  $13,061  $14,208 $ 42,042  $51,691
Adjustments:               
Merger expenses   2,100   2,352      4,452   
Stock acceleration expense   4,176         4,176   
Income tax effect of adjustments   (220)  (58)     (278)  
Adjusted net income (non-GAAP) $ 15,033  $15,355  $14,208 $ 50,392  $51,691
                
Diluted earnings per share - as reported $ 0.45  $0.66  $0.71 $ 2.11  $2.59
Adjustments:               
Merger expenses   0.10   0.11      0.21   
Stock acceleration expense   0.21         0.21   
Income tax effect of adjustments   (0.01)        (0.01)  
Adjusted diluted earnings per share (non-GAAP) $ 0.75  $0.77  $0.71 $ 2.52  $2.59

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  Year Ended
  December 31,  September 30, December 31,    December 31,  December 31,
(Dollars in thousands) 2020 2020 2019 2020 2019
Net interest income $ 42,992 $40,707 $35,648 $ 160,781 $142,203
Non-interest income   5,444  6,790  8,426   19,703  25,387
Total revenues   48,436  47,497  44,074   180,484  167,590
Non-interest expense   35,078  28,937  25,332   113,257  96,139
Pre-tax pre-provision net revenue (non-GAAP) (1) $ 13,358 $18,560 $18,742 $ 67,227 $71,451
Adjustments:               
Change in fair value of loans held for sale   234       2,877  
Merger expenses   2,100  2,352     4,452  
Stock acceleration expense   4,176       4,176  
Adjusted pre-tax pre-provision net revenue (non-GAAP) (2) $ 19,868 $20,912 $18,742 $ 78,732 $71,451

____________________________

(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 and stock acceleration expenses.

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):

                 
  Three Months Ended  Year Ended  
     December 31,  September 30, December 31,    December 31,  December 31, 
(Dollars in thousands, except per share amounts) 2020 2020 2019 2020 2019 
Efficiency ratio - as reported (non-GAAP) (1)      72.42 %   60.92 % 57.48 %  62.75 %   57.37 %
Non-interest expense - as reported $ 35,078  $28,937  $25,332  $ 113,257  $96,139  
Less: Merger expenses   (2,100)  (2,352)      (4,452)    
Less: Stock acceleration expense   (4,176)         (4,176)    
Less: Amortization of intangible assets   (149)  (149)  (182)   (656)  (787) 
Adjusted non-interest expense (non-GAAP) $ 28,653  $26,436  $25,150  $ 103,973  $95,352  
Net interest income - as reported $ 42,992  $40,707  $35,648  $ 160,781  $142,203  
Tax-equivalent adjustment   84   91   104    380   522  
Net interest income, tax-equivalent basis $ 43,076  $40,798  $35,752  $ 161,161  $142,725  
Non-interest income - as reported $ 5,444  $6,790  $8,426  $ 19,703  $25,387  
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   234          2,877     
Adjusted non-interest income (non-GAAP) $ 5,678  $6,653  $8,426  $ 22,458  $25,186  
Adjusted total revenues for adjusted efficiency ratio (non-GAAP) $ 48,754  $47,451  $44,178  $ 183,619  $167,911  
Adjusted efficiency ratio (non-GAAP) (2)    58.77 %   55.71 % 56.93 %  56.62 %   56.79 %

____________________________

(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  
     December 31,  September 30, December 31,    
(Dollars in thousands) 2020 2020 2019 
Net interest income - as reported $ 42,992  $40,707  $35,648  
Tax-equivalent adjustment   84   91   104  
Net interest income, tax-equivalent basis $ 43,076  $40,798  $35,752  
Adjustment:          
Less: Interest income on deposits with banks   (159)  (135)  (212) 
Less: Net interest income on PPP loans and swaps   (7,981)  (6,005)    
Adjusted net interest income, tax-equivalent basis (non-GAAP) $ 34,936  $34,658  $35,540  
           
Average interest-earning assets - as reported $ 5,829,293  $5,740,311  $4,356,487  
Adjustments:          
Average deposits with banks   (624,415)  (531,205)  (46,994) 
Average PPP loans   (909,022)  (933,345)    
Adjusted average interest-earning assets (non-GAAP) $ 4,295,856  $4,275,761  $4,309,493  
           
Net interest margin - as reported (1)   2.93 %   2.82 % 3.25 %
Net interest margin, tax-equivalent basis (2)   2.94   2.83   3.26  
Adjusted net interest margin (non-GAAP) (3)   3.24   3.22   3.27  

____________________________

(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  Year Ended  
     December 31,  September 30, December 31,    December 31,  December 31, 
  2020 2020 2019 2020 2019 
Operating expense as a % of average assets - as reported  2.20 %  1.84 %2.10 % 1.93 %  2.04 %
Merger expenses  (0.13) (0.15)    (0.08)   
Stock acceleration expense  (0.26)      (0.07)   
Amortization of other intangible assets  (0.01) (0.01) (0.01)  (0.01) (0.02) 
Adjusted operating expense as a % of average assets (non-GAAP)  1.80  1.68  2.09   1.77  2.02  

The following table presents the tangible common equity to tangible assets calculation (non-GAAP):

           
     December 31,  September 30, December 31, 
(Dollars in thousands) 2020
 2020 2019 
Total assets - as reported $ 6,434,296  $6,322,377  $4,921,520  
Less: Goodwill and other intangible assets - as reported   (109,328)  (109,398)  (109,627) 
Tangible assets (non-GAAP) $ 6,324,968  $6,212,979  $4,811,893  
           
Total stockholders' equity - as reported $ 517,831  $512,221  $497,154  
Less: Goodwill and other intangible assets - as reported   (109,328)  (109,398)  (109,627) 
Tangible common equity (non-GAAP) $ 408,503  $402,823  $387,527  
           
Tangible common equity to tangible assets (non-GAAP) (1)   6.5 %   6.5 % 8.1 %

____________________________
(1)   Calculated by dividing tangible common equity by tangible assets.


Contact:John M. McCaffery 
 Executive Vice President
 Chief Financial Officer
 (631) 537-1001, ext. 7290