BRIDGEHAMPTON, N.Y., Oct. 24, 2019 (GLOBE NEWSWIRE) -- Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced third quarter results for 2019.

The Company's third quarter 2019 financial results included:

• Net income for the 2019 third quarter of $13.9 million, or $0.70 per diluted share, compared to $6.5 million, or $0.33 per diluted share for the 2018 third quarter, inclusive of pre-tax charge of $9.5 million, or $0.37 per diluted share after tax, related to the fraudulent conduct of a business customer through its deposit accounts at BNB in the 2018 period.
• Net interest income for the 2019 third quarter increased $1.2 million over the 2019 second quarter to $36.7 million.
• Tax-equivalent net interest margin for the 2019 third quarter increased 10 basis points over the 2019 second quarter to 3.40%.
• Total assets of $4.7 billion at September 30, 2019, 6% higher than September 30, 2018.
• Loan growth of $311 million, or 10%, compared to September 30, 2018, and $233 million, or 9% annualized, from December 31, 2018.
• Non-public, non-brokered deposit growth of $306 million, or 11%, compared to September 30, 2018, and $195 million, or 9% annualized, from December 31, 2018.
• Non-performing assets of $4.2 million at September 30, 2019, $2.1 million higher than September 30, 2018 and $1.2 million higher than December 31, 2018. Loan loss reserve coverage to total loans of 0.92% at September 30, 2019.
• All capital ratios remain strong. Declared a dividend of $0.23 during the quarter.

Commenting on the third quarter results, Kevin O’Connor, President and CEO said, “This quarter’s results illustrate that our core community banking model delivers returns despite a challenging rate environment- producing record net income, an expanded margin, and strong non-interest income. Our model focuses on relationship banking and delivering customized products to our customers and returns to our shareholders.”

Net Earnings and Returns
Net income in the 2019 third quarter was $13.9 million, or $0.70 per diluted share, an increase of $7.4 million compared to the 2018 third quarter, driven primarily by lower non-interest expense and a rise in net interest income and non-interest income, partially offset by higher provision for loan losses. Excluding the impact of the fraud loss, net income in the 2018 third quarter was $14.0 million, or $0.70 per diluted share. Net income for the nine months ended September 30, 2019 was $37.5 million, or $1.88 per diluted share, compared to $25.4 million, or $1.28 per diluted share, in 2018.

Returns on average assets and equity in the 2019 third quarter were 1.17% and 11.44%, respectively.  Return on average tangible common equity was 14.81% for the 2019 third quarter. Adjusted return on average tangible common equity, excluding the impact of amortization of other intangible assets, was 14.97% for the 2019 third quarter.

“We reported record net interest income as well as record non-interest income this quarter. Highlights included our title and our loan swap program. This loan swap program allows us to deliver fixed rate exposure to our customers while we retain a floating rate asset and generate income. This activity continues to grow so it is now separately reported on our income statement,” noted Mr. O’Connor.

Net Interest Income
Interest income was $46.4 million in the 2019 third quarter, flat compared to the 2019 second quarter, driven primarily by loan portfolio growth offset by lower yields in the loan and securities portfolios, and a decrease in average securities. Interest expense was $9.6 million in the 2019 third quarter, a decrease of $1.2 million compared to the 2019 second quarter, primarily due to a decrease in average cost of interest-bearing liabilities coupled with a decrease in average public and brokered deposits.

The tax-equivalent net interest margin for the 2019 third quarter showed a year-over-year increase of 8 basis points to 3.40% in 2019 from 3.32% in 2018.

“Although the third quarter saw one of the most challenging interest rate environments in years, we were able to expand our net interest margin by 10 basis points compared to the second quarter.  This is a result of our DDA concentration and controlling interest-bearing deposit costs.  Our asset yields only dropped 1 basis point. We also decreased our reliance on high-cost brokered deposits by 44% compared to the second quarter,” stated Mr. O’Connor.

Provision for Loan Losses
The provision for loan losses was $1.0 million for the 2019 third quarter, $0.8 million higher than the 2018 third quarter.  The Company recognized net recoveries of $2 thousand in the 2019 third quarter, compared to net recoveries of $17 thousand in the 2018 third quarter.

Non-Interest Income
Non-interest income was $6.2 million for the 2019 third quarter, $1.3 million higher than the 2018 third quarter, primarily attributable to higher loan swap fees in the 2019 third quarter.  

Non-Interest Expense
Non-interest expense for the 2019 third quarter of $24.2 million was $6.8 million lower than the 2018 third quarter. The decrease in 2019 was primarily due to the impact of the fraud loss in the 2018 third quarter, partially offset by higher salaries and benefits expense, occupancy and equipment costs and other operating expenses in the 2019 period. Excluding the fraud loss in 2018, non-interest expenses were up $2.7 million, or 13%, in the third quarter of 2019.

Income Tax Expense
Income tax expense was $3.9 million in the 2019 third quarter, an increase of $2.5 million compared to the 2018 third quarter. The Company estimates it will record income tax at an effective tax rate of approximately 22% for the remainder of 2019. 

Balance Sheet
Total assets were $4.7 billion at September 30, 2019, $35.3 million higher than December 31, 2018, and $287.3 million higher than September 30, 2018. Total loans held for investment at September 30, 2019 of $3.5 billion reflects growth of $310.9 million, or 10%, over September 30, 2018. Deposits totaled $3.7 billion at September 30, 2019, an increase of $124.1 million, or 3%, over September 30, 2018. Demand deposits increased $92.0 million year-over-year to $1.4 billion at September 30, 2019, representing 38% of total deposits.

The allowance for loan losses was $32.2 million at September 30, 2019, $0.3 million higher than September 30, 2018. The allowance as a percentage of loans was 0.92% at September 30, 2019, compared to 1.00% at September 30, 2018.

Stockholders’ equity was $486.4 million at September 30, 2019, $46.4 million higher than September 30, 2018. The growth reflects earnings, partially offset by shareholders’ dividends. Book value per share was $24.53 at September 30, 2019, $2.30 higher than September 30, 2018. Tangible book value per share was $18.99 at September 30, 2019, $2.35 higher than September 30, 2018.

											Change Compared To
		September 30,			December 31,			September 30,			December 31,				September 30,
(Dollars in thousands)		2019			2018			2018			2018				2018
Total assets		$	4,736,021		$	4,700,744		$	4,448,757		$	35,277			$	287,264
Total stockholders' equity			486,403			453,830			439,985			32,573				46,418
Loans held for investment
Investor commercial real estate ("CRE")		$	990,324		$	863,158		$	850,242		$	127,166			$	140,082
Multi-family ("MF")			673,909			585,827			579,827			88,082				94,082
Construction and land ("C&L")			116,463			123,393			118,137			(6,930	)			(1,674	)
Total investor CRE, MF, and C&L			1,780,696			1,572,378			1,548,206			208,318				232,490
Commercial and industrial ("C&I")			667,949			645,724			608,723			22,225				59,226
Owner-occupied CRE			529,483			510,398			498,327			19,085				31,156
Total C&I and owner-occupied CRE			1,197,432			1,156,122			1,107,050			41,310				90,382
Residential real estate			497,842			519,763			516,995			(21,921	)			(19,153	)
Installment and consumer			24,998			20,509			19,157			4,489				5,841
Net deferred loan costs and fees			7,364			7,039			6,019			325				1,345
Total loans held for investment		$	3,508,332		$	3,275,811		$	3,197,427		$	232,521			$	310,905
Deposits
Total IPC deposits		$	3,159,772		$	2,965,007		$	2,854,030		$	194,765			$	305,742
Brokered deposits			65,598			255,408			281,241			(189,810	)			(215,643	)
Public deposits			517,913			665,978			483,871			(148,065	)			34,042
Total public and brokered deposits			583,511			921,386			765,112			(337,875	)			(181,601	)
Total deposits		$	3,743,283		$	3,886,393		$	3,619,142		$	(143,110	)		$	124,141

Loan and Line of Credit Origination Information (unaudited)

		Three Months Ended									Nine Months Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
(Dollars in thousands)		2019			2019			2018			2019			2018
Investor CRE		$	100,120		$	60,855		$	17,353		$	174,950		$	93,971
Multi-family			48,160			22,429			17,120			121,954			40,520
Owner-occupied CRE			12,973			29,468			21,280			97,664			59,073
Commercial and industrial			28,437			36,977			13,828			93,630			67,053
Residential real estate			8,764			9,366			8,318			26,289			83,344
Other			70			6,091			964			20,128			3,875
Total loan originations		$	198,524		$	165,186		$	78,863		$	534,615		$	347,836
Total line of credit originations		$	52,513		$	52,727		$	49,704		$	215,125		$	209,118

“Robust loan originations during the quarter and year-to-date were partially offset by several large loan paydowns. We continue to maintain pricing discipline on all loan products.  IPC deposit growth kept pace with our loan-to-deposit ratio ending the quarter at 94%.  Our IPC deposits are comprised of 44% non-interest bearing DDA, which helps bolster our margin,” Mr. O’Connor said.

Asset Quality
Asset quality measures remained solid, as non-performing assets were $4.2 million, or 0.09% of total assets, at September 30, 2019, compared to $2.1 million, or 0.05% of total assets, at September 30, 2018. Non-performing assets at September 30, 2018 included $175 thousand of other real estate owned. Non-performing loans were $4.2 million, or 0.12% of total loans at September 30, 2019, compared to $1.9 million, or 0.06% of total loans at September 30, 2018.  Loans 30 to 89 days past due increased $0.2 million to $6.0 million at September 30, 2019, compared to $5.8 million at September 30, 2018. Loans past due 90 days and accruing at September 30, 2019 and 2018 were comprised of $0.3 million of acquired loans.

Conference Call
The Company will host a conference call on Friday, October 25, 2019 at 10:00 AM (ET) to discuss the 2019 third quarter results. Investors who would like to join the conference call are encouraged to pre-register using the following link: http://dpregister.com/10134567. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. Telephonic replay will be available through the Company’s website beginning approximately one hour after the conclusion of the call through Friday, November 8, 2019.

Call and replay information are as follows:

Call Date: Friday, October 25, 2019
Call Time: 10:00 AM (ET)
Domestic Call Dial In:  1-844-746-0738
International Call Dial In:  1-412-317-6016

Replay Domestic Dial In:  1-877-344-7529
Replay International Dial In:  1-412-317-0088
Access Code: 10134567

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 $4.7 billion, operates 40 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.

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; and other risk factors discussed elsewhere, and in our reports filed 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)

		September 30,				December 31,				September 30,
		2019				2018				2018
Assets
Cash and due from banks		$	87,004			$	142,145			$	63,687
Interest-earning deposits with banks			44,214				153,223				61,414
Total cash and cash equivalents			131,218				295,368				125,101
Securities available for sale, at fair value			610,706				680,886				661,862
Securities held to maturity			139,729				160,163				164,438
Total securities			750,435				841,049				826,300
Securities, restricted			28,469				24,028				25,162
Loans held for sale			12,643				—				1,619
Loans held for investment			3,508,332				3,275,811				3,197,427
Allowance for loan losses			(32,173	)			(31,418	)			(31,869	)
Loans held for investment, net			3,476,159				3,244,393				3,165,558
Premises and equipment, net			33,544				35,008				35,893
Operating lease right-of-use assets (1)			36,356				—				—
Goodwill and other intangible assets			109,840				110,324				110,667
Other real estate owned			—				175				175
Accrued interest receivable and other assets			157,357				150,399				158,282
Total assets		$	4,736,021			$	4,700,744			$	4,448,757
Liabilities and stockholders' equity
Demand deposits		$	1,379,803			$	1,275,664			$	1,286,673
Savings and negotiable order of withdrawal ("NOW") deposits			506,476				496,881				468,242
Money market deposit accounts ("MMDA")			1,063,848				975,531				883,386
Certificates of deposit of less than $100,000			59,913				61,827				61,548
Certificates of deposit of $100,000 or more			149,732				155,104				154,181
Total individual, partnership and corporate ("IPC") deposits			3,159,772				2,965,007				2,854,030
Brokered deposits			65,598				255,408				281,241
Public funds - demand deposits			45,036				172,941				46,119
Public funds - other deposits			472,877				493,037				437,752
Total public and brokered deposits			583,511				921,386				765,112
Total deposits			3,743,283				3,886,393				3,619,142
Federal funds purchased and repurchase agreements			956				539				816
Federal Home Loan Bank ("FHLB") advances			337,000				240,433				265,648
Subordinated debentures, net			78,885				78,781				78,746
Operating lease liabilities (1)			39,064				—				—
Other liabilities and accrued expenses			50,430				40,768				44,420
Total liabilities			4,249,618				4,246,914				4,008,772
Total stockholders' equity			486,403				453,830				439,985
Total liabilities and stockholders' equity		$	4,736,021			$	4,700,744			$	4,448,757

______________________________
(1) The Company adopted ASU 2016-02, Leases (Topic 842) using the transition approach at the beginning of the period of adoption on January 1, 2019 and did not restate comparative prior periods.

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

		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
		2019				2019				2018				2019				2018
Interest income		$	46,354			$	46,352			$	42,589			$	137,221			$	125,504
Interest expense			9,639				10,835				8,375				30,666				22,822
Net interest income			36,715				35,517				34,214				106,555				102,682
Provision for loan losses			1,000				3,500				200				5,100				1,400
Net interest income after provision for loan losses			35,715				32,017				34,014				101,455				101,282
Non-interest income:
Service charges and other fees			2,588				2,556				2,549				7,572				7,274
Title fees			508				335				384				1,149				1,339
Net securities gains (losses)			—				201				—				201				(7,921	)
Gain on sale of SBA loans			601				844				524				1,662				1,586
Bank owned life insurance			561				556				557				1,670				1,658
Loan swap fees			1,557				528				404				3,200				713
Other			429				479				500				1,507				1,804
Total non-interest income			6,244				5,499				4,918				16,961				6,453
Non-interest expense:
Salaries and employee benefits			14,294				13,659				12,134				41,233				38,001
Occupancy and equipment			3,490				3,560				3,325				10,581				9,773
Fraud loss			—				—				9,500				—				9,500
Amortization of other intangible assets			182				210				215				605				703
Other			6,238				6,575				5,830				18,388				18,132
Total non-interest expense			24,204				24,004				31,004				70,807				76,109
Income before income taxes			17,755				13,512				7,928				47,609				31,626
Income tax expense			3,852				2,859				1,381				10,126				6,263
Net income		$	13,903			$	10,653			$	6,547			$	37,483			$	25,363
Earnings Per Share (unaudited)
(In thousands, except per share data)		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
		2019				2019				2018				2019				2018
Net income		$	13,903			$	10,653			$	6,547			$	37,483			$	25,363
Dividends paid on and earnings allocated to participating securities			(294	)			(226	)			(145	)			(797	)			(550	)
Income attributable to common stock		$	13,609			$	10,427			$	6,402			$	36,686			$	24,813
Weighted average common shares outstanding, including participating securities			19,958				19,965				19,890				19,950				19,869
Weighted average participating securities			(422	)			(428	)			(438	)			(425	)			(435	)
Weighted average common shares outstanding			19,536				19,537				19,452				19,525				19,434
Basic earnings per common share		$	0.70			$	0.53			$	0.33			$	1.88			$	1.28
Weighted average common shares outstanding			19,536				19,537				19,452				19,525				19,434
Incremental shares from assumed conversions of options and restricted stock units			32				28				33				27				27
Weighted average common and equivalent shares outstanding			19,568				19,565				19,485				19,552				19,461
Diluted earnings per common share		$	0.70			$	0.53			$	0.33			$	1.88			$	1.28

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

		Three Months Ended						Nine Months Ended
		September 30,		June 30,		September 30,		September 30,		September 30,
		2019		2019		2018		2019		2018
Selected Financial Data:
Return on average total assets		1.17	%	0.90	%	0.58	%	1.07	%	0.76	%
Adjusted return on average total assets (1)		1.17		0.90		1.24		1.07		1.16
Return on average stockholders' equity		11.44		9.06		5.64		10.64		7.45
Adjusted return on average stockholders' equity (1)		11.44		9.06		12.03		10.64		11.45
Return on average tangible common equity (1) (2)		14.81		11.82		7.43		13.88		9.86
Adjusted return on average tangible common equity (1) (2)		14.97		12.01		16.03		14.06		15.36
Net interest margin, tax-equivalent basis		3.40		3.30		3.32		3.33		3.35
Efficiency ratio		56.34		58.52		79.23		57.33		69.74
Adjusted efficiency ratio (1)		55.79		58.03		54.22		56.74		56.08
Operating expense/average assets		2.04		2.03		2.75		2.02		2.27
Adjusted operating expense/average assets (1)		2.03		2.01		1.89		2.00		1.97

_________________________
(1) See reconciliation of this non-GAAP financial measure provided elsewhere herein.
(2) Average tangible common equity represents a non-GAAP financial measure calculated as average total stockholders' equity less average goodwill and intangible assets.

		September 30,			December 31,			September 30,
		2019			2018			2018
Selected Financial Data:
Book value per share		$	24.53		$	22.93		$	22.23
Tangible book value per share (1)		$	18.99		$	17.36		$	16.64
Common shares outstanding			19,830			19,791			19,789
Capital Ratios:
Total capital to risk-weighted assets			13.4	%		13.6	%		13.6	%
Tier 1 capital to risk-weighted assets			10.4			10.4			10.3
Common equity Tier 1 capital to risk-weighted assets			10.4			10.4			10.3
Tier 1 capital to average assets			8.4			8.1			8.0
Tangible common equity to tangible assets (1) (2)			8.1			7.5			7.6
Tier 1 capital to average assets (Bank)			10.0			9.9			9.7
Asset Quality:
Loans 30-89 days past due		$	5,986		$	4,400		$	5,801
Loans 90 days past due and accruing (3)		$	338		$	308		$	299
Non-performing loans		$	4,211		$	2,808		$	1,944
Other real estate owned			—			175			175
Non-performing assets		$	4,211		$	2,983		$	2,119
Non-performing loans/total loans			0.12	%		0.09	%		0.06	%
Non-performing assets/total assets			0.09			0.06			0.05
Allowance/non-performing loans			764.02			1118.87			1639.35
Allowance/total loans			0.92			0.96			1.00

____________________________
(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.
(3) Represents purchased credit impaired loans.

BRIDGE BANCORP, INC. AND SUBSIDIARIES
Supplemental Financial Information
Condensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)
(Dollars in thousands)

		Three Months Ended September 30,										Three Months Ended June 30,										Three Months Ended September 30,
		2019										2019										2018
									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)		$	3,442,462		$	41,053			4.73		%	$	3,373,601		$	40,000			4.76		%	$	3,157,422		$	36,243			4.55		%
Securities (1)			787,387			5,060			2.55				860,031			5,940			2.77				867,174			6,044			2.77
Deposits with banks			61,853			342			2.19				102,515			599			2.34				84,986			437			2.04
Total interest-earning assets (1)			4,291,702			46,455			4.29				4,336,147			46,539			4.30				4,109,582			42,724			4.12
Non-interest-earning assets:
Other assets			412,300										401,720										369,305
Total assets		$	4,704,002									$	4,737,867									$	4,478,887
Interest-bearing liabilities:
Savings		$	433,086		$	1,083			0.99		%	$	443,830		$	1,231			1.11		%	$	341,056		$	395			0.46		%
NOW			125,056			51			0.16				124,329			48			0.15				108,271			27			0.10
MMDA			1,034,002			3,452			1.32				1,012,419			3,840			1.52				866,631			2,386			1.09
Savings, NOW and MMDA			1,592,144			4,586			1.14				1,580,578			5,119			1.30				1,315,958			2,808			0.85
Certificates of deposit of less than $100,000			60,144			299			1.97				60,940			285			1.88				59,681			209			1.39
Certificates of deposit of $100,000 or more			152,093			844			2.20				152,809			806			2.12				148,339			674			1.80
Total IPC deposits			1,804,381			5,729			1.26				1,794,327			6,210			1.39				1,523,978			3,691			0.96
Brokered deposits			75,410			387			2.04				134,720			771			2.30				307,651			1,593			2.05
Public funds			500,440			1,139			0.90				546,432			1,383			1.02				448,191			763			0.68
Total public and brokered deposits			575,850			1,526			1.05				681,152			2,154			1.27				755,842			2,356			1.24
Total deposits			2,380,231			7,255			1.21				2,475,479			8,364			1.36				2,279,820			6,047			1.05
Federal funds purchased and repurchase agreements			14,160			70			1.96				25,246			158			2.51				3,487			12			1.37
FHLB advances			244,011			1,179			1.92				243,322			1,178			1.94				269,909			1,182			1.74
Subordinated debentures			78,862			1,135			5.71				78,827			1,135			5.78				78,723			1,134			5.72
Total borrowings			337,033			2,384			2.81				347,395			2,471			2.85				352,119			2,328			2.62
Total interest-bearing liabilities			2,717,264			9,639			1.41				2,822,874			10,835			1.54				2,631,939			8,375			1.26
Non-interest-bearing liabilities:
Demand deposits			1,417,159										1,365,279										1,343,107
Other liabilities			87,313										78,278										43,432
Total liabilities			4,221,736										4,266,431										4,018,478
Stockholders' equity			482,266										471,436										460,409
Total liabilities and stockholders' equity		$	4,704,002									$	4,737,867									$	4,478,887
Net interest rate spread									2.88		%								2.76		%								2.86		%
Net interest-earning assets		$	1,574,438									$	1,513,273									$	1,477,643
Net interest margin - tax-equivalent						36,816			3.40		%					35,704			3.30		%					34,349			3.32		%
Less: Tax-equivalent adjustment						(101	)		(0.01	)						(187	)		(0.01	)						(135	)		(0.02	)
Net interest income					$	36,715									$	35,517									$	34,214
Net interest margin									3.39		%								3.29		%								3.30		%

____________________________
(1) Presented on a tax-equivalent basis.

BRIDGE BANCORP, INC. AND SUBSIDIARIES
Supplemental Financial Information
Condensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)
(Dollars in thousands)

		Nine Months Ended September 30,
		2019										2018
									Average										Average
		Average							Yield/			Average							Yield/
		Balance			Interest				Cost			Balance			Interest				Cost
Interest-earning assets:
Loans, net (including loan fee income) (1)		$	3,364,574		$	118,712			4.72		%	$	3,155,093		$	107,720			4.56		%
Securities (1)			844,057			17,442			2.76				920,108			17,608			2.56
Deposits with banks			85,241			1,485			2.33				44,660			633			1.90
Total interest-earning assets (1)			4,293,872			137,639			4.29				4,119,861			125,961			4.09
Non-interest-earning assets:
Other assets			402,174										363,131
Total assets		$	4,696,046									$	4,482,992
Interest-bearing liabilities:
Savings		$	425,265		$	3,219			1.01		%	$	309,990		$	605			0.26		%
NOW			118,530			140			0.16				124,750			83			0.09
MMDA			1,010,304			10,878			1.44				815,537			5,620			0.92
Savings, NOW and MMDA			1,554,099			14,237			1.22				1,250,277			6,308			0.67
Certificates of deposit of less than $100,000			60,796			845			1.86				58,745			540			1.23
Certificates of deposit of $100,000 or more			151,675			2,382			2.10				125,081			1,390			1.49
Total IPC deposits			1,766,570			17,464			1.32				1,434,103			8,238			0.77
Brokered deposits			139,356			2,368			2.27				262,364			3,677			1.87
Public funds			527,022			3,701			0.94				484,814			1,871			0.52
Total public and brokered deposits			666,378			6,069			1.22				747,178			5,548			0.99
Total deposits			2,432,948			23,533			1.29				2,181,281			13,786			0.85
Federal funds purchased and repurchase agreements			15,722			273			2.32				91,989			1,185			1.72
FHLB advances			243,544			3,455			1.90				344,677			4,447			1.72
Subordinated debentures			78,828			3,405			5.78				78,688			3,404			5.78
Total borrowings			338,094			7,133			2.82				515,354			9,036			2.34
Total interest-bearing liabilities			2,771,042			30,666			1.48				2,696,635			22,822			1.13
Non-interest-bearing liabilities:
Demand deposits			1,372,285										1,290,782
Other liabilities			81,588										40,656
Total liabilities			4,224,915										4,028,073
Stockholders' equity			471,131										454,919
Total liabilities and stockholders' equity		$	4,696,046									$	4,482,992
Net interest rate spread									2.81		%								2.96		%
Net interest-earning assets		$	1,522,830									$	1,423,226
Net interest margin - tax-equivalent						106,973			3.33		%					103,139			3.35		%
Less: Tax-equivalent adjustment						(418	)		(0.01	)						(457	)		(0.02	)
Net interest income					$	106,555									$	102,682
Net interest margin									3.32		%								3.33		%

____________________
(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 a fraud loss during the third quarter of 2018 and certain net securities losses associated with the Company’s strategic plan to restructure its balance sheet during the second quarter of 2018.

		Three Months Ended									Nine Months Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
		2019			2019			2018			2019			2018
Return on average total assets - as reported		1.17		%	0.90		%	0.58		%	1.07		%	0.76		%
Net securities losses		—			—			—			—			0.24
Fraud loss		—			—			0.84			—			0.28
Income tax effect of adjustments above		—			—			(0.18	)		—			(0.12	)
Adjusted return on average total assets (non-GAAP)		1.17			0.90			1.24			1.07			1.16
Return on average stockholders' equity - as reported		11.44		%	9.06		%	5.64		%	10.64		%	7.45		%
Net securities losses		—			—			—			—			2.33
Fraud loss		—			—			8.19			—			2.79
Income tax effect of adjustments above		—			—			(1.80	)		—			(1.12	)
Adjusted return on average stockholders' equity (non-GAAP)		11.44			9.06			12.03			10.64			11.45
Return on average tangible common equity - as reported		14.81		%	11.82		%	7.43		%	13.88		%	9.86		%
Net securities losses		—			—			—			—			3.08
Fraud loss		—			—			10.78			—			3.69
Amortization of other intangible assets		0.19			0.23			0.24			0.23			0.27
Income tax effect of adjustments above		(0.03	)		(0.04	)		(2.42	)		(0.05	)		(1.54	)
Adjusted return on average tangible common equity (non-GAAP)		14.97			12.01			16.03			14.06			15.36

BRIDGE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures (unaudited)

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 a fraud loss during the third quarter of 2018 and net securities losses associated with the Company’s strategic plan to restructure its balance sheet during the second quarter of 2018:

		Three Months Ended										Nine Months Ended
		September 30,			June 30,			September 30,				September 30,			September 30,
(Dollars in thousands, except per share amounts)		2019			2019			2018				2019			2018
Net income - as reported		$	13,903		$	10,653		$	6,547			$	37,483		$	25,363
Adjustments:
Net securities losses			—			—			—				—			7,921
Fraud loss			—			—			9,500				—			9,500
Income tax effect of adjustments above			—			—			(2,091	)			—			(3,833	)
Adjusted net income (non-GAAP)		$	13,903		$	10,653		$	13,956			$	37,483		$	38,951
Diluted earnings per share - as reported		$	0.70		$	0.53		$	0.33			$	1.88		$	1.28
Adjustments:
Net securities losses			—			—			—				—			0.40
Fraud loss			—			—			0.48				—			0.48
Income tax effect of adjustments above			—			—			(0.11	)			—			(0.20	)
Adjusted diluted earnings per share (non-GAAP)		$	0.70		$	0.53		$	0.70			$	1.88		$	1.96

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

		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
(Dollars in thousands, except per share amounts)		2019				2019				2018				2019				2018
Efficiency ratio - as reported			56.34		%		58.52		%		79.23		%		57.33		%		69.74		%
Non-interest expense - as reported		$	24,204			$	24,004			$	31,004			$	70,807			$	76,109
Less: Fraud loss			—				—				(9,500	)			—				(9,500	)
Less: Amortization of intangible assets			(182	)			(210	)			(215	)			(605	)			(703	)
Adjusted non-interest expense (non-GAAP)		$	24,022			$	23,794			$	21,289			$	70,202			$	65,906
Net interest income - as reported		$	36,715			$	35,517			$	34,214			$	106,555			$	102,682
Tax-equivalent adjustment			101				187				135				418				457
Net interest income, tax-equivalent basis		$	36,816			$	35,704			$	34,349			$	106,973			$	103,139
Non-interest income - as reported		$	6,244			$	5,499			$	4,918			$	16,961			$	6,453
Less: Net securities (gains)/ losses			—				(201	)			—				(201	)			7,921
Adjusted non-interest income (non-GAAP)		$	6,244			$	5,298			$	4,918			$	16,760			$	14,374
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)		$	43,060			$	41,002			$	39,267			$	123,733			$	117,513
Adjusted efficiency ratio (non-GAAP) (1)			55.79		%		58.03		%		54.22		%		56.74		%		56.08		%

The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):

		Three Months Ended									Nine Months Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
		2019			2019			2018			2019			2018
Operating expense as a % of average assets - as reported		2.04		%	2.03		%	2.75		%	2.02		%	2.27		%
Fraud loss		—			—			(0.84	)		—			(0.28	)
Amortization of other intangible assets		(0.01	)		(0.02	)		(0.02	)		(0.02	)		(0.02	)
Adjusted operating expense as a % of average assets (non-GAAP)		2.03			2.01			1.89			2.00			1.97

_______________________

(1) Adjusted efficiency ratio is 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 presents the tangible common equity to tangible assets calculation (non-GAAP):

		September 30,				December 31,				September 30,
(Dollars in thousands)		2019				2018				2018
Total assets - as reported		$	4,736,021			$	4,700,744			$	4,448,757
Less: Goodwill and other intangible assets - as reported			(109,840	)			(110,324	)			(110,667	)
Tangible assets (non-GAAP)		$	4,626,181			$	4,590,420			$	4,338,090
Total stockholders' equity - as reported		$	486,403			$	453,830			$	439,985
Less: Goodwill and other intangible assets - as reported			(109,840	)			(110,324	)			(110,667	)
Tangible common equity (non-GAAP)		$	376,563			$	343,506			$	329,318
Tangible common equity to tangible assets (non-GAAP) (1)			8.1		%		7.5		%		7.6		%

_________________________
(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

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