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Press release from GlobeNewswire (a Nasdaq OMX company)

Bridge Bancorp, Inc. Reports Fourth Quarter and Year End 2012 Results

Friday, January 25, 2013

Bridge Bancorp, Inc. Reports Fourth Quarter and Year End 2012 Results13:17 EST Friday, January 25, 2013BRIDGEHAMPTON, N.Y., Jan. 25, 2013 (GLOBE NEWSWIRE) -- Bridge Bancorp, Inc. (Nasdaq:BDGE), the parent company of The Bridgehampton National Bank (BNB), today announced fourth quarter and year end results for 2012. Highlights of the Company's financial results for the quarter and year end include: Net income of $3.4 million, a 16% increase over 2011 representing $.39 per share for the quarter. Net income of $12.8 million and $1.48 per share for the year, 23% higher than the $10.4 million recorded in 2011. Returns on average assets and equity for 2012 of .88% and 11.78%, respectively. Net interest income increased $4.1 million for 2012, with a net interest margin of 3.52%. Total assets of $1.62 billion at year end, 21% higher than year end 2011. Loan growth of 30%, with loans exceeding $798 million at year end. Deposits of $1.4 billion at year end, an increase of 19% over 2011, continuing strong growth trends. Continued solid asset quality metrics. Tier 1 Capital increased by $14.6 million, over 12% higher than year end 2011. Accelerated fourth quarter dividend payment of $.23 per share in December 2012. "Our record achievements in 2012 of substantial organic loan, deposit and revenue growth, coupled with strong asset quality and capitalization levels combined to deliver industry leading returns. This is a testament to BNB's unwavering commitment to community banking, whereby we partner with our customers, delivering advice and solutions for their financial needs. This is the core of our business model and dedication to these principles contributes to our current success, and is paramount in all future initiatives," commented Kevin M. O'Connor, President and CEO of Bridge Bancorp, Inc. "The key to delivering on our mission is combining our expanding branch network, improving technology, and experienced professionals with the critical element of local decision making," added Mr. O'Connor.Net Earnings and Returns Net income for the quarter ended December 2012 was $3.4 million or $.39 per share, compared to $3.0 million or $.42 per share, for the same period in 2011, reflecting a 16% increase in net income and a 7% decrease in earnings per share. In 2012, net income was $12.8 million or $1.48 per share, compared to $10.4 million and $1.54 per share. Earnings per share for the quarter and year ended December 31, 2012 reflect the higher share count associated with the $24 million in capital raised in the fourth quarter of 2011. Returns on average assets and equity for 2012 were .88% and 11.78%, respectively. Net interest income grew in 2012 as average earning assets increased by 23% or $258.3 million, offsetting the net interest margin decline from 3.97% to 3.52%. The decline in the net interest margin reflects several factors: the positive impact of higher deposit balances and increased loan demand, offset by increases in the level of lower yielding securities, and historically low market interest rates. This trend continued into the fourth quarter of 2012. Net interest income for the fourth quarter of 2012 increased $0.9 million, over 2011 due to higher average earnings assets. Most of the loan growth occurred late in the fourth quarter, and therefore did not contribute significantly to net interest income. The provision for loan losses was $1.1 million for the quarter, $0.2 million higher than the 2011 fourth quarter. For 2012, the provision was $5 million, an increase of $1.1 million over 2011. Total non-interest income grew $0.8 million for the fourth quarter of 2012, with increases in fee income, service charges, title revenue and securities gains of $0.5 million. During the year, total non-interest income increased $3.7 million resulting from an increase of $2.5 million in securities gains, as well as, higher title revenue, fee income and service charges. Non-interest expense for 2012 increased in both the quarter and year due to expenses associated with new branches, technology and staff. "Our successful expansion of the franchise's geographic reach delivered the desired results; increasing core deposits and loans, and generating record levels of revenue and income. This revenue offset higher credit and compliance costs allowing us to continue building the infrastructure necessary to manage in today's increasingly complex regulatory environment," commented Mr. O'Connor.Balance Sheet and Asset Quality Total assets of $1.62 billion at December 2012, were $287.3 million higher than last year, and average assets increased 23%. This increase reflects strong organic growth in new and existing markets driven by growth in loans of $186.3 million or 30% and investments of $130.5 million or 21%, partially offset by a $28.3 million decrease in cash and cash equivalents. Total deposits were $1.4 billion at December 31, 2012 and included demand deposits of $529.2 million or 38% compared to 27% at December 2011. The increase in total deposits at year end 2012 reflects organic growth of $221.1 million or 19% compared to December 2011. "During the fourth quarter of 2012, loans increased $66 million or 36% on an annualized basis. Much of this growth occurred in December, as customers were anxious to close, prior to year end due to uncertainty around the potential "Fiscal Cliff" and future income tax rates," noted Mr. O'Connor. Asset quality measures remained strong as non-performing assets ("NPA") at December 2012 declined 15% to $3.5 million from $4.2 million at December 2011. This represents only 0.22% of total assets, compared to 0.31% at December 2011. For 2012, the allowance for loan losses increased $3.6 million to $14.4 million. The allowance as a percentage of total loans at December 2012 remained stable at 1.81% compared to 1.77% at December 2011. Stockholders' equity grew $11.7 million to $118.7 million, reflecting the capital raised through the Dividend Reinvestment Plan, as well as continued earnings growth, net of dividends. Overall, Tier 1 capital increased to $132.9 million or 12% higher than the December 2011 level. In addition, the Company's capital levels reflect five dividend payments to shareholders in 2012, as the payment of the fourth quarter 2012 dividend was accelerated and paid in December. The Company's capital ratios exceed all regulatory minimums, and it continues to be classified as well capitalized.Challenges & Opportunities "Five years after the financial crisis, the Banking environment remains uncertain, as we deal with the fallout from both regulatory activity and the economic impact of decisions made during and subsequent to the crisis. The costs, in terms of compliance and greater capitalization, continue impacting shareholder expectations and returns. Additionally, the persistently low level of market interest rates has created opportunities for borrowers, but substantial challenges for banks and other financial intermediaries. The eventuality of rising rates is arguably our industry's greatest challenge and threat, creating margin pressures and ultimately impacting credit, as businesses adjust and manage with potentially higher borrowing costs. The credit environment appears to be stabilizing and our Company and many of our customers avoided significant damage from the effects of Hurricane Sandy, however, the continued confidence of consumers and businesses remains critical to future economic activity. "The end of a year is time for reflection, and 2012 can be categorized as successful. We achieved many of our goals: opened two new branches, increased our customer base and expanded our loan portfolio. We invested for the future: committing to three additional branch locations, adding critical staff and improving systems and processes. "This year's results mark another step in the continuing evolution of our Company and demonstrate ongoing commitment to identify, leverage and efficiently execute on market opportunities. Looking ahead, we see the potential to continue this strategic course with similar positive results," concluded Mr. O'Connor.About Bridge Bancorp, Inc. Bridge Bancorp, Inc. is a one bank holding company engaged in commercial banking and financial services through its wholly owned subsidiary, The Bridgehampton National Bank. Established in 1910, the Bank, with assets of approximately $1.6 billion, and a primary market area of Suffolk County, Long Island, operates 22 retail branch locations. Through this branch network and its electronic delivery channels, it provides deposit and loan products and financial services to local businesses, consumers and municipalities. Title insurance services are offered through the Bank's wholly owned subsidiary, Bridge Abstract. Bridge Investment Services offers financial planning and investment consultation. The Bridgehampton National Bank continues a rich tradition of involvement in the community by supporting programs and initiatives that promote local business, the environment, education, healthcare, social services and the arts. The Bridge Bancorp, Inc. logo is available at Please see the attached tables for selected financial information. This report 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, which involve risk and uncertainties, are based on the beliefs, assumptions and expectations of management of the Company. Words such as "expects," "believes," "should," "plans," "anticipates," "will," "potential," "could," "intend," "may," "outlook," "predict," "project," "would," "estimated," "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, 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. For this presentation, 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 the Bank'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 as a result of the Dodd-Frank Act, which could adversely affect operating results; and other factors discussed elsewhere in this report, and in other reports filed by the Company with the Securities and Exchange Commission. 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, December 31,  2012 2011ASSETS     Cash and Due from Banks $ 46,855  $ 25,921 Interest Earning Deposits with Banks 4,394  53,625 Total Cash and Cash Equivalents 51,249  79,546 Securities Available for Sale, at Fair Value 529,070  441,439 Securities Held to Maturity 210,735  169,153 Total Securities 739,805  610,592 Securities, Restricted 2,978  1,660 Loans Held for Sale --   2,300 Loans Held for Investment 798,446  612,143 Less: Allowance for Loan Losses (14,439)  (10,837) Loans, net784,007 601,306 Premises and Equipment, net 26,001  24,171 Goodwill and Other Intangible Assets 2,283  2,350 Accrued Interest Receivable and Other Assets 18,390  15,533Total Assets $ 1,624,713  $ 1,337,458LIABILITIES AND STOCKHOLDERS' EQUITY     Demand Deposits $ 529,205  $ 321,496 Savings, NOW and Money Market Deposits 722,869  683,863 Certificates of Deposit of $100,000 or more 118,724  140,578 Other Time Deposits 38,524  42,248 Total Deposits 1,409,322  1,188,185 Federal Funds Purchased and Repurchase Agreements 56,890  16,897 Federal Home Loan Bank Advances 15,000  --  Junior Subordinated Debentures 16,002  16,002 Other Liabilities and Accrued Expenses 8,827  9,387 Total Liabilities 1,506,041  1,230,471 Total Stockholders' Equity 118,672  106,987Total Liabilities and Stockholders' Equity $ 1,624,713  $ 1,337,458Selected Financial Data:     Tangible Book Value Per Share $ 13.07  $ 12.54Capital Ratios:     Total Capital (to risk weighted assets)14.2% 16.2% Tier 1 Capital (to risk weighted assets)12.9% 15.0% Tier 1 Capital (to average assets)8.4% 9.3%Asset Quality:     Non-performing loans $ 3,289  $ 4,161 Real estate owned 250  --  Non-performing assets $ 3,539  $ 4,161 Non-performing loans/Total loans0.41% 0.68% Non-performing assets/Total assets0.22% 0.31% Allowance/Non-performing loans439.01% 260.44% Allowance/Total loans1.81% 1.77%                BRIDGE BANCORP, INC. AND SUBSIDIARIES        Condensed Consolidated Statements of Income (unaudited)         (In thousands, except per share amounts)                    Three months endedTwelve months ended  December 31,December 31,  2012 20112012 2011           Interest Income $ 13,832  $ 13,026 $ 54,514  $ 50,426 Interest Expense 1,896  1,983 7,555  7,616 Net Interest Income 11,936  11,043 46,959  42,810 Provision for Loan Losses 1,075  850 5,000  3,900 Net Interest Income after Provision for Loan Losses 10,861  10,193 41,959  38,910 Other Non Interest Income 1,619  1,555 6,391  5,798 Title Fee Income 598  349 1,635  1,016 Net Securities Gains 468  --  2,647  135 Total Non Interest Income 2,685  1,904 10,673  6,949 Salaries and Benefits 5,121  4,647 20,705  18,036 Acquisition Costs --   65 --   793 Amortization of Core Deposit Intangible 16  18 67  42 Cost of Extinguishment of Debt --   --  158  --  Other Non Interest Expense 3,376  3,091 12,850  11,966 Total Non Interest Expense 8,513  7,821 33,780  30,837 Income Before Income Taxes 5,033  4,276 18,852  15,022 Provision for Income Taxes 1,623  1,326 6,080  4,663 Net Income $ 3,410  $ 2,950 $ 12,772  $ 10,359 Basic/Diluted Earnings Per Share $ 0.39  $ 0.42 $ 1.48  $ 1.54 Diluted Earnings Per Share $ 0.39  $ 0.42 $ 1.48  $ 1.54 Weighted Average Common Shares 8,786  7,057 8,612  6,698          Selected Financial Data:                   Return on Average Total Assets0.86% 0.92%0.88% 0.88% Return on Average Stockholders' Equity11.96% 14.47%11.78% 14.37% Net Interest Margin3.24% 3.75%3.52% 3.97% Efficiency Ratio58.57% 57.96%59.73% 58.64% Operating Expense as a % of Average Assets2.14% 2.41%2.34% 2.55%                        BRIDGE BANCORP, INC. AND SUBSIDIARIES            Supplemental Financial Information            Condensed Consolidated Average Balance            Sheets And Average Rate Data (unaudited)             (In thousands)                            Three months ended December 31,  2012 2011      Average     Average  Average  Yield/ Average   Yield/  BalanceInterestCost Balance Interest CostInterest earning assets:             Loans, net (including loan fee income) $ 739,602  $ 10,502 5.65%  $ 588,038  $ 9,360 6.32% Securities 761,169  3,677  1.92  574,987  4,038  2.79 Deposits with banks 8,013  8  0.40  47,610  31  0.26 Total interest earning assets 1,508,784  14,187  3.74  1,210,635  13,429  4.40Non interest earning assets:             Other Assets 72,121      67,692     Total assets $ 1,580,905      $ 1,278,327                  Interest bearing liabilities:             Deposits $ 889,643  $ 1,341 0.60%  $ 823,213  $ 1,504 0.72% Federal funds purchased and repurchase agreements 78,074  138  0.70  19,378  138  2.83 Federal Home Loan Bank term advances 49,435  76  0.61  --  --  -- Junior Subordinated Debentures 16,002  341  8.48  16,002  341  8.45 Total interest bearing liabilities 1,033,154  1,896  0.73  858,593  1,983  0.92 Non interest bearing liabilities:             Demand deposits 424,494      329,761     Other liabilities 9,874      9,102     Total liabilities 1,467,522      1,197,456     Stockholders' equity 113,383      80,871     Total liabilities and stockholders' equity $ 1,580,905      $ 1,278,327                   Net interest income/interest rate spread   12,291 3.01%    11,446 3.48%               Net interest earning assets/net interest margin $ 475,630  3.24%  $ 352,042   3.75%               Less: Tax equivalent adjustment   (355)      (403)                 Net interest income   $ 11,936      $ 11,043                              BRIDGE BANCORP, INC. AND SUBSIDIARIES            Supplemental Financial Information            Condensed Consolidated Average Balance            Sheets And Average Rate Data (unaudited)             (In thousands)                            Twelve months ended December 31,  2012 2011      Average     Average  Average  Yield/ Average   Yield/  BalanceInterestCost Balance Interest CostInterest earning assets:             Loans, net (including loan fee income) $ 671,103  $ 40,255 6.00%  $ 554,469  $ 35,434 6.39% Securities 675,646  15,640  2.31  513,000  16,410  3.20 Deposits with banks 27,840  78  0.28  48,841  123  0.25 Total interest earning assets 1,374,589  55,973  4.07  1,116,310  51,967  4.66Non interest earning assets:             Other Assets 71,596      63,977     Total assets $ 1,446,185      $ 1,180,287                  Interest bearing liabilities:             Deposits $ 891,203  $ 5,607 0.63%  $ 772,245  $ 5,707 0.74% Federal funds purchased and repurchase agreements 38,613  461  1.19  17,582  543  3.09 Federal Home Loan Bank term advances 18,068  122  0.68  82  --  -- Junior Subordinated Debentures 16,002  1,365  8.53  16,002  1,366  8.54 Total interest bearing liabilities 963,886  7,555  0.78  805,911  7,616  0.95 Non interest bearing liabilities:             Demand deposits 365,999      294,566     Other liabilities 7,923      7,721     Total liabilities 1,337,808      1,108,198     Stockholders' equity 108,377      72,089     Total liabilities and stockholders' equity $ 1,446,185      $ 1,180,287                   Net interest income/interest rate spread   48,418 3.29%    44,351 3.71%               Net interest earning assets/net interest margin $ 410,703  3.52%  $ 310,399   3.97%               Less: Tax equivalent adjustment   (1,459)      (1,541)                 Net interest income   $ 46,959      $ 42,810                CONTACT: Howard H. Nolan Senior Executive Vice President Chief Financial Officer (631) 537-1001, ext. 7255