Bridge Bancorp, Inc. Reports Second Quarter 2020 Results

Rhea-AI Summary

Bridge Bancorp (NASDAQ: BDGE) reported a net income of $10.7 million for Q2 2020, equivalent to $0.54 per diluted share. Adjusted pre-tax pre-provision net revenue rose to $20.9 million, with a notable net interest income increase of $4.9 million year-over-year to $40.4 million. Total assets reached $6.2 billion, marking a 30% increase from the previous year. However, non-performing assets rose to $7.7 million, up $2.2 million year-over-year. The company declared a $0.24 dividend during the quarter and plans to merge with Dime Community, aiming to enhance market share.

Positive

• Net income of $10.7 million, or $0.54 per diluted share.
• Total assets increased to $6.2 billion, up 30% year-over-year.
• Net interest income rose by $4.9 million compared to Q2 2019, totaling $40.4 million.
• Loan growth of $1.2 billion, or 35%, compared to the same period last year.
• Declared a dividend of $0.24 in the quarter.
• Planned merger with Dime Community aims to capture market share.

Negative

• Non-performing assets increased to $7.7 million, up $2.2 million year-over-year.
• Higher provision for credit losses of $4.5 million, largely due to COVID-19 impacts.
• Net interest margin decreased by 30 basis points to 3.00% from 3.30% year-over-year.

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

The Company's second quarter 2020 financial results included:

• Net income for the 2020 second quarter of $10.7 million, or $0.54 per diluted share.
• Adjusted pre-tax pre-provision net revenue was $20.9 million, an increase of $3.9 million over both the 2020 first quarter and 2019 second quarter.
• Net interest income for the 2020 second quarter increased $4.9 million over the 2019 second quarter to $40.4 million, with a tax-equivalent net interest margin of 3.00%.
• Total assets of $6.2 billion at June 30, 2020, 30% higher than June 30, 2019.
• Loan growth of $1.2 billion, or 35%, compared to June 30, 2019, and $940.5 million, or 51% annualized, from December 31, 2019.
• Loan and line of credit originations of $1.1 billion for the second quarter of 2020, inclusive of $950 million Paycheck Protection Program (“PPP”) loans.
• Non-public, non-brokered deposit growth of $841.8 million, or 27%, compared to June 30, 2019, and $954.4 million, or 63% annualized, from December 31, 2019.
• Non-performing assets of $7.7 million at June 30, 2020, $2.2 million higher than June 30, 2019 and $3.4 million higher than December 31, 2019. Allowance for credit losses coverage to total loans of 0.94% at June 30, 2020.
• The provision of $4.5 million included approximately $3.5 million related to our estimate of the economic impact of the COVID-19 pandemic. Additionally, we recorded a $2.6 million charge related to our one loan held for sale.
• All capital ratios remain strong. Declared a dividend of $0.24 during the quarter.

Reflecting on the second quarter results, Kevin O’Connor, President and CEO said, “The second quarter of 2020 was an unprecedented time for our country, our industry, our customers and our employees.  I am proud that our employees rallied to support our customers on several fronts. First, our branches remained open, while adopting measures to protect customers and employees alike. Second, in one capacity or another, the entire bank was involved with processing over 5,000 applications, resulting in almost $1 billion in Paycheck Protection Program loans for our existing customers and the one thousand new customers who came to us because of BNB’s reputation for superior customer service. This program also generated approximately $30 million in fees which will flow into income over the life of the loans. Another milestone event that occurred is our planned merger-of-equals with Dime Community.  We consider this a unique opportunity to capture incremental share in a market where we have low penetration by doing what BNB does best – acquiring and retaining business banking customers. This merger of complementary business models and geographies allows BNB and Dime Community to optimize best-in-class practices, consolidate vendor relationships to reduce expenses and expand our product offerings.”

Net Earnings and Returns
Net income in the 2020 second quarter was $10.7 million, or $0.54 per diluted share, which was comparable with the 2019 second quarter, driven primarily by higher net interest income, partially offset by lower non-interest income, higher provision for credit losses, and higher non-interest expense. Net income for the six months ended June 30, 2020 was $20.0 million, or $1.00 per diluted share, compared to $23.6 million, or $1.18 per diluted share, in 2019.

Returns on average assets and equity in the 2020 second quarter were 0.72% and 8.56%, respectively.  Return on average tangible common equity was 10.95% for the 2020 second quarter.

“Our reported net income of $0.54 per diluted share was impacted by a higher provision for credit losses primarily related to the COVID-19 pandemic, and a write-down of a loan previously classified as held for sale, which reduced earnings per share by approximately $0.13 and $0.10, respectively. These charges reduced returns on average assets, equity and tangible common equity by approximately 31 basis points, 371 basis points, and 474 basis points, respectively,” noted Mr. O’Connor. 

Net Interest Income
Interest income was $45.9 million in the 2020 second quarter, an increase of $1.2 million compared to the 2020 first quarter, primarily due to loan portfolio growth from the PPP program, partially offset by lower average yields in loans, securities and deposits with banks. Interest expense was $5.4 million in the 2020 second quarter, a decrease of $2.5 million compared to the 2020 first quarter, primarily due to a decrease in average cost of deposits, partially offset by an increase in average deposits and average borrowings.

The tax-equivalent net interest margin in the 2020 second quarter showed a year-over-year decline of 30 basis points to 3.00% in 2020 from 3.30% in 2019. The adjusted net interest margin, excluding PPP loans, was down 24 basis points to 3.06% in 2020.  Reported 2020 second quarter loan yields showed a year-over-year decrease of 94 basis points from 4.76% in 2019 to 3.82% in 2020, while yields excluding PPP loans decreased 70 basis points to 4.06% in 2020 from 4.76% in 2019.

		Three Months Ended						Change Compared To
		June 30,		March 31,		June 30,		March 31,			June 30,
		2020		2020		2019		2020			2019
Average yield on loans, tax-equivalent basis - as reported		3.82	%	4.35	%	4.76	%	(53	)	bp	(94	)	bp
Adjusted average yield on loans (non-GAAP)		4.06		4.35		4.76		(29	)		(70	)
Net interest margin - as reported (1)		2.99	%	3.25	%	3.29	%	(26	)	bp	(30	)	bp
Net interest margin, tax-equivalent basis (2)		3.00		3.26		3.30		(26	)		(30	)
Adjusted net interest margin (non-GAAP) (3)		3.06		3.26		3.30		(20	)		(24	)

___________________________

(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 PPP loans, divided by adjusted average interest-earning assets, excluding PPP loans.

Commenting on the margin Mr. O’Connor said, “The PPP loans and excess liquidity have had a negative impact on our net interest margin. The all-in yield on PPP loans, including amortization of fees and costs, was about 2.55% in Q2.  When the pandemic began, we thought it prudent to bolster our liquidity position.  However, the decline in economic activity during the shut-down resulted in more of our customers keeping more money in the bank. The subsequent excess liquidity had the effect of depressing the margin by approximately 20 basis points,” stated Mr. O’Connor.

Provision for Credit Losses
The provision for credit loss expense was $4.5 million for the 2020 second quarter, $1.0 million higher than the 2019 second quarter. The higher provision was primarily attributable to higher expected credit losses related to our estimate of the economic impact of the COVID-19 pandemic and an increase in specific reserves. The Company recognized net charge-offs of $0.3 million in the 2020 second quarter, compared to net charge-offs of $4.1 million in the 2019 second quarter, which included a $3.7 million charge-off related to one loan currently held for sale.

Non-Interest Income
Non-interest income was $2.3 million for the 2020 second quarter, which was $3.2 million lower compared to the 2019 second quarter, primarily attributable to a decrease in fair value of one loan held for sale, lower service charges and other fees, and lower gain on sale of SBA loans, partially offset by an increase in loan swap fees.

Non-Interest Expense
Non-interest expense for the 2020 second quarter of $24.4 million was $0.4 million higher than the 2019 second quarter. The increase in the second quarter was primarily due to higher salaries and benefits expense. Our operating expenses to average assets dropped by 35 basis points compared to the first quarter.

Income Tax Expense
Income tax expense was $3.1 million in the 2020 second quarter, an increase of $0.3 million compared to the 2019 second quarter. The Company estimates it will record income tax at an effective tax rate of approximately 22.7% for the remainder of 2020.

Balance Sheet
Total assets were $6.2 billion at June 30, 2020, $1.2 billion higher than December 31, 2019, and $1.4 billion higher than June 30, 2019. Total loans held for investment at June 30, 2020 of $4.6 billion reflects growth of $1.2 billion, or 35%, over June 30, 2019, inclusive of PPP loans totaling $950 million. Net deferred loan fees were $17.3 million at June 30, 2020, inclusive of $26.0 million remaining unamortized net loan fees related to PPP loans. Deposits totaled $5.1 billion at June 30, 2020, an increase of $1.2 billion, or 32%, compared to June 30, 2019. Demand deposits increased $778.5 million year-over-year to $2.2 billion at June 30, 2020, representing 43% of total deposits.

The allowance for credit losses was $43.4 million at June 30, 2020, $12.2 million higher than June 30, 2019. The allowance as a percentage of loans was 0.94% at June 30, 2020, compared to 0.91% at June 30, 2019. The PPP loans had the effect of decreasing the Company’s allowance as a percentage of loans by approximately 22 basis points at June 30, 2020.

Stockholders’ equity was $502.6 million at June 30, 2020, $27.4 million higher than June 30, 2019. The growth reflects earnings, partially offset by shareholders’ dividends and stock repurchases. 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 $25.47 at June 30, 2020, $1.51 higher than June 30, 2019. Tangible book value per share was $19.93 at June 30, 2020, $1.52 higher than June 30, 2019.

												Change Compared To
		June 30,				December 31,			June 30,			December 31,				June 30,
(Dollars in thousands)		2020				2019			2019			2019				2019
Total assets		$	6,150,664			$	4,921,520		$	4,714,535		$	1,229,144			$	1,436,129
Total stockholders' equity			502,621				497,154			475,205			5,467				27,416
Loans held for investment
Investor commercial real estate ("CRE")		$	1,064,623			$	1,034,599		$	910,892		$	30,024			$	153,731
Owner-occupied CRE			528,118				531,088			525,329			(2,970	)			2,789
Construction and land			81,516				97,311			150,868			(15,795	)			(69,352	)
Commercial and industrial			675,989				679,444			675,168			(3,455	)			821
Paycheck Protection Program ("PPP")			949,662				—			—			949,662				949,662
Total commercial			3,299,908				2,342,442			2,262,257			957,466				1,037,651
Multi-family			844,066				812,174			631,146			31,892				212,920
Residential real estate			469,183				493,144			503,354			(23,961	)			(34,171	)
Installment and consumer			24,953				24,836			25,825			117				(872	)
Net deferred loan costs and fees			(17,282	)			7,689			7,441			(24,971	)			(24,723	)
Total loans held for investment		$	4,620,828			$	3,680,285		$	3,430,023		$	940,543			$	1,190,805
Deposits
Total IPC deposits		$	3,996,590			$	3,042,171		$	3,154,801		$	954,419			$	841,789
Brokered deposits			194,019				164,034			127,196			29,985				66,823
Public deposits			889,810				608,442			554,579			281,368				335,231
Total public and brokered deposits			1,083,829				772,476			681,775			311,353				402,054
Total deposits		$	5,080,419			$	3,814,647		$	3,836,576		$	1,265,772			$	1,243,843
Loan-to-deposit ratio			90.95		%		96.48	%		89.40	%		(5.52	)	%		1.55

Loan and Line of Credit Origination Information (unaudited)

		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands)		2020			2020			2019			2020			2019
Investor CRE		$	46,060		$	41,738		$	60,855		$	87,798		$	74,830
Owner-occupied CRE			23,287			33,720			29,468			57,007			84,691
Commercial and industrial			65,620			75,796			76,405			141,416			196,546
PPP			949,729			—			—			949,729			—
Multi-family			48,330			38,915			22,429			87,245			73,794
Residential real estate			3,654			8,969			9,366			12,623			17,525
Other			9,198			21,011			19,390			30,209			51,317
Total loan and line of credit originations		$	1,145,878		$	220,149		$	217,913		$	1,366,027		$	498,703

Asset Quality
Asset quality measures remained solid, as non-performing assets were $7.7 million, or 0.13% of total assets, at June 30, 2020, compared to $5.5 million, or 0.12% of total assets, at June 30, 2019. Non-performing loans were $7.7 million, or 0.17% of total loans at June 30, 2020, compared to $5.5 million, or 0.16% of total loans at June 30, 2019. The quarter-over-quarter increase in non-performing assets is primarily related to one C&I relationship which was previously restructured and subsequently moved into non-accrual in the current quarter. Loans 30 to 89 days past due increased $1.7 million to $5.1 million at June 30, 2020, compared to $3.4 million at June 30, 2019. The increase in 30 to 89 days past due loans compared to prior year is primarily comprised of several residential loans.

Regarding asset quality and the current environment, Mr. O’Connor stated, “As the crisis unfolded our customers applied for forbearance on certain loans.  We granted payment moratoriums on approximately 500 loans totaling $630 million.  At this time, approximately $400 million of these loans have reached the end of their three-month deferral period.  Of those loans, 54% have returned to making their agreed-on payments, 36% have requested an extension, and 10% are pending. Extensions are being granted on a case-by-case basis.”

Conference Call
The Company will host a conference call on Wednesday, July 29, 2020 at 10:00 AM (ET) to discuss the 2020 second quarter results. 

Investors who would like to join the conference call are encouraged to pre-register using the following link: http://dpregister.com/10145180. 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 Wednesday, August 12, 2020.

Call and replay information are as follows:

Call Date: Wednesday, July 29, 2020
Call Time: 10:00 AM (ET)
Domestic Call Dial In:  1-844-746-0738
International Call Dial In:  1-412-317-5271

Replay Domestic Dial In:  1-877-344-7529
Replay International Dial In:  1-412-317-0088
Access Code: 10145180

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 $6.2 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)

		June 30,				December 31,				June 30,
		2020				2019				2019
Assets
Cash and due from banks		$	67,633			$	77,693			$	71,292
Interest-earning deposits with banks			422,148				39,501				87,349
Total cash and cash equivalents			489,781				117,194				158,641
Securities available for sale, at fair value			537,746				638,291				642,897
Securities held to maturity			111,307				133,638				144,716
Total securities			649,053				771,929				787,613
Securities, restricted			28,987				32,879				24,104
Loans held for sale			10,000				12,643				12,643
Loans held for investment			4,620,828				3,680,285				3,430,023
Allowance for credit losses			(43,401	)			(32,786	)			(31,171	)
Loans held for investment, net			4,577,427				3,647,499				3,398,852
Premises and equipment, net			34,495				34,062				34,006
Operating lease right-of-use assets			40,434				43,450				37,619
Goodwill and other intangible assets			109,248				109,627				109,975
Accrued interest receivable and other assets			211,239				152,237				151,082
Total assets		$	6,150,664			$	4,921,520			$	4,714,535
Liabilities and stockholders' equity
Demand deposits		$	2,101,950			$	1,386,037			$	1,322,625
Savings and negotiable order of withdrawal ("NOW") deposits			495,421				438,902				613,431
Money market deposit accounts ("MMDA")			1,202,125				1,012,322				1,002,768
Certificates of deposit of less than $100,000			54,643				58,640				60,658
Certificates of deposit of $100,000 or more			142,451				146,270				155,319
Total individual, partnership and corporate ("IPC") deposits			3,996,590				3,042,171				3,154,801
Brokered deposits			194,019				164,034				127,196
Public funds - demand deposits			62,244				132,921				63,084
Public funds - other deposits			827,566				475,521				491,495
Total public and brokered deposits			1,083,829				772,476				681,775
Total deposits			5,080,419				3,814,647				3,836,576
Federal funds purchased and repurchase agreements			1,670				999				945
Federal Home Loan Bank ("FHLB") advances			340,000				435,000				240,000
Subordinated debentures, net			78,990				78,920				78,850
Operating lease liabilities			43,131				45,977				40,263
Other liabilities and accrued expenses			103,833				48,823				42,696
Total liabilities			5,648,043				4,424,366				4,239,330
Total stockholders' equity			502,621				497,154				475,205
Total liabilities and stockholders' equity		$	6,150,664			$	4,921,520			$	4,714,535

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

		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
		2020				2020				2019				2020				2019
Interest income		$	45,850			$	44,602			$	46,352			$	90,452			$	90,867
Interest expense			5,418				7,952				10,835				13,370				21,027
Net interest income			40,432				36,650				35,517				77,082				69,840
Provision for credit losses			4,500				5,000				3,500				9,500				4,100
Net interest income after provision for credit losses			35,932				31,650				32,017				67,582				65,740
Non-interest income:
Service charges and other fees			1,889				2,500				2,556				4,389				4,984
Title fees			385				329				335				714				641
Net securities (losses) gains			—				(15	)			201				(15	)			201
Change in fair value of loans held for sale			(2,643	)			—				—				(2,643	)			—
Gain on sale of SBA loans			469				371				844				840				1,061
Bank owned life insurance			547				548				556				1,095				1,109
Loan swap fees			1,320				1,231				528				2,551				1,643
Other			285				253				479				538				1,078
Total non-interest income			2,252				5,217				5,499				7,469				10,717
Non-interest expense:
Salaries and employee benefits			13,919				15,549				13,659				29,468				26,939
Occupancy and equipment			3,520				3,499				3,560				7,019				7,091
Amortization of other intangible assets			177				181				210				358				423
Other			6,783				5,614				6,575				12,397				12,150
Total non-interest expense			24,399				24,843				24,004				49,242				46,603
Income before income taxes			13,785				12,024				13,512				25,809				29,854
Income tax expense			3,129				2,676				2,859				5,805				6,274
Net income		$	10,656			$	9,348			$	10,653			$	20,004			$	23,580
Earnings Per Share (unaudited)
(In thousands, except per share data)		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
		2020				2020				2019				2020				2019
Net income		$	10,656			$	9,348			$	10,653			$	20,004			$	23,580
Dividends paid on and earnings allocated to participating securities			(218	)			(195	)			(226	)			(413	)			(503	)
Income attributable to common stock		$	10,438			$	9,153			$	10,427			$	19,591			$	23,077
Weighted average common shares outstanding, including participating securities			19,861				19,946				19,965				19,904				19,946
Weighted average participating securities			(409	)			(414	)			(428	)			(411	)			(427	)
Weighted average common shares outstanding			19,452				19,532				19,537				19,493				19,519
Basic earnings per common share		$	0.54			$	0.47			$	0.53			$	1.01			$	1.18
Weighted average common shares outstanding			19,452				19,532				19,537				19,493				19,519
Incremental shares from assumed conversions of options and restricted stock units			36				34				28				34				26
Weighted average common and equivalent shares outstanding			19,488				19,566				19,565				19,527				19,545
Diluted earnings per common share		$	0.54			$	0.47			$	0.53			$	1.00			$	1.18

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

		Three Months Ended						Six Months Ended
		June 30,		March 31,		June 30,		June 30,		June 30,
		2020		2020		2019		2020		2019
Selected Financial Data:
Return on average total assets		0.72	%	0.76	%	0.90	%	0.74	%	1.01	%
Return on average stockholders' equity		8.56		7.50		9.06		8.03		10.22
Return on average tangible common equity (1) (2)		10.95		9.59		11.82		10.27		13.38
Adjusted return on average tangible common equity (1) (2)		11.10		9.74		12.01		10.42		13.57
Net interest rate spread, tax-equivalent basis		2.72		2.86		2.76		2.78		2.76
Net interest margin, tax-equivalent basis		3.00		3.26		3.30		3.12		3.29
Adjusted net interest margin (1)		3.06		3.26		3.30		3.16		3.29
Average interest-earning assets to average interest-bearing liabilities		169.70		156.79		153.61		163.58		153.48
Efficiency ratio		57.16		59.34		58.52		58.24		57.85
Adjusted efficiency ratio (1)		53.32		58.74		58.03		55.92		57.24
Operating expense/average assets		1.66		2.01		2.03		1.82		2.00
Adjusted operating expense/average assets (1)		1.65		1.99		2.01		1.80		1.98

__________________________

(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.

		June 30,			December 31,			June 30,
		2020			2019			2019
Selected Financial Data:
Book value per share		$	25.47		$	25.06		$	23.96
Tangible book value per share (1)		$	19.93		$	19.54		$	18.41
Common shares outstanding			19,734			19,837			19,834
Capital Ratios:
Total capital to risk-weighted assets			13.2	%		13.1	%		13.3	%
Tier 1 capital to risk-weighted assets			10.2			10.2			10.3
Common equity Tier 1 capital to risk-weighted assets			10.2			10.2			10.3
Tier 1 capital to average assets			7.0			8.5			8.1
Tangible common equity to tangible assets (1) (2)			6.5			8.1			7.9
Capital Ratios - Bank Only:
Total capital to risk-weighted assets			13.1	%		13.0	%		13.2	%
Tier 1 capital to risk-weighted assets			12.1			12.1			12.4
Common equity Tier 1 capital to risk-weighted assets			12.1			12.1			12.4
Tier 1 capital to average assets			8.4			10.1			9.7
Asset Quality:
Loans 30-89 days past due		$	5,080		$	6,366		$	3,382
Loans 90 days past due and accruing		$	—		$	343		$	329
Non-performing loans		$	7,731		$	4,369		$	5,509
Non-performing assets		$	7,731		$	4,369		$	5,509
Non-performing loans/total loans			0.17	%		0.12	%		0.16	%
Non-performing assets/total assets			0.13			0.09			0.12
Allowance/non-performing loans			561.39			750.42			565.82
Allowance/total loans			0.94			0.89			0.91

_________________________

(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 June 30,										Three Months Ended March 31,										Three Months Ended June 30,
		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)		$	4,429,423		$	42,044			3.82		%	$	3,677,017		$	39,810			4.35		%	$	3,373,601		$	40,000			4.76		%
Securities (1)			647,218			3,796			2.36				763,894			4,628			2.44				860,031			5,940			2.77
Deposits with banks			365,770			112			0.12				91,884			267			1.17				102,515			599			2.34
Total interest-earning assets (1)			5,442,411			45,952			3.40				4,532,795			44,705			3.97				4,336,147			46,539			4.30
Non-interest-earning assets:
Other assets			471,232										446,258										401,720
Total assets		$	5,913,643									$	4,979,053									$	4,737,867
Interest-bearing liabilities:
Savings		$	317,346		$	95			0.12		%	$	303,834		$	188			0.25		%	$	443,830		$	1,231			1.11		%
NOW			131,650			26			0.08				131,931			46			0.14				124,329			48			0.15
MMDA			1,151,830			1,135			0.40				1,049,707			2,409			0.92				1,012,419			3,840			1.52
Savings, NOW and MMDA			1,600,826			1,256			0.32				1,485,472			2,643			0.72				1,580,578			5,119			1.30
Certificates of deposit of less than $100,000			56,603			214			1.52				58,583			266			1.83				60,940			285			1.88
Certificates of deposit of $100,000 or more			147,706			575			1.57				145,242			714			1.98				152,809			806			2.12
Total IPC deposits			1,805,135			2,045			0.46				1,689,297			3,623			0.86				1,794,327			6,210			1.39
Brokered deposits			210,393			454			0.87				166,523			692			1.67				134,720			771			2.30
Public funds			769,815			1,060			0.55				673,232			1,391			0.83				546,432			1,383			1.02
Total public and brokered deposits			980,208			1,514			0.62				839,755			2,083			1.00				681,152			2,154			1.27
Total deposits			2,785,343			3,559			0.51				2,529,052			5,706			0.91				2,475,479			8,364			1.36
Federal funds purchased and repurchase agreements			1,659			1			0.24				29,575			78			1.06				25,246			158			2.51
FHLB advances			341,099			723			0.85				253,374			1,033			1.64				243,322			1,178			1.94
Subordinated debentures			78,968			1,135			5.78				78,932			1,135			5.78				78,827			1,135			5.78
Total borrowings			421,726			1,859			1.77				361,881			2,246			2.50				347,395			2,471			2.85
Total interest-bearing liabilities			3,207,069			5,418			0.68				2,890,933			7,952			1.11				2,822,874			10,835			1.54
Non-interest-bearing liabilities:
Demand deposits			2,061,371										1,473,962										1,365,279
Other liabilities			144,541										112,582										78,278
Total liabilities			5,412,981										4,477,477										4,266,431
Stockholders' equity			500,662										501,576										471,436
Total liabilities and stockholders' equity		$	5,913,643									$	4,979,053									$	4,737,867
Net interest rate spread									2.72		%								2.86		%								2.76		%
Net interest-earning assets		$	2,235,342									$	1,641,862									$	1,513,273
Net interest margin - tax-equivalent						40,534			3.00		%					36,753			3.26		%					35,704			3.30		%
Less: Tax-equivalent adjustment						(102	)		(0.01	)						(103	)		(0.01	)						(187	)		(0.01	)
Net interest income					$	40,432									$	36,650									$	35,517
Net interest margin									2.99		%								3.25		%								3.29		%

____________________________

(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)

		Six Months Ended June 30,
		2020										2019
									Average										Average
		Average							Yield/			Average							Yield/
		Balance			Interest				Cost			Balance			Interest				Cost
Interest-earning assets:
Loans, net (including loan fee income) (1)		$	4,053,220		$	81,854			4.06		%	$	3,324,985		$	77,659			4.71		%
Securities (1)			705,555			8,424			2.40				872,861			12,382			2.86
Deposits with banks			228,827			379			0.33				97,128			1,143			2.37
Total interest-earning assets (1)			4,987,602			90,657			3.66				4,294,974			91,184			4.28
Non-interest-earning assets:
Other assets			458,746										397,027
Total assets		$	5,446,348									$	4,692,001
Interest-bearing liabilities:
Savings		$	310,590		$	283			0.18		%	$	421,290		$	2,136			1.02		%
NOW			131,791			72			0.11				115,213			89			0.16
MMDA			1,100,768			3,544			0.65				998,259			7,426			1.50
Savings, NOW and MMDA			1,543,149			3,899			0.51				1,534,762			9,651			1.27
Certificates of deposit of less than $100,000			57,593			480			1.68				61,128			546			1.80
Certificates of deposit of $100,000 or more			146,474			1,289			1.77				151,463			1,538			2.05
Total IPC deposits			1,747,216			5,668			0.65				1,747,353			11,735			1.35
Brokered deposits			188,458			1,146			1.22				171,858			1,981			2.32
Public funds			721,523			2,451			0.68				540,533			2,562			0.96
Total public and brokered deposits			909,981			3,597			0.79				712,391			4,543			1.29
Total deposits			2,657,197			9,265			0.70				2,459,744			16,278			1.33
Federal funds purchased and repurchase agreements			15,617			79			1.02				16,517			203			2.48
FHLB advances			297,236			1,756			1.19				243,306			2,276			1.89
Subordinated debentures			78,950			2,270			5.78				78,810			2,270			5.81
Total borrowings			391,803			4,105			2.11				338,633			4,749			2.83
Total interest-bearing liabilities			3,049,000			13,370			0.88				2,798,377			21,027			1.52
Non-interest-bearing liabilities:
Demand deposits			1,767,666										1,349,476
Other liabilities			128,563										78,677
Total liabilities			4,945,229										4,226,530
Stockholders' equity			501,119										465,471
Total liabilities and stockholders' equity		$	5,446,348									$	4,692,001
Net interest rate spread									2.78		%								2.76		%
Net interest-earning assets		$	1,938,602									$	1,496,597
Net interest margin - tax-equivalent						77,287			3.12		%					70,157			3.29		%
Less: Tax-equivalent adjustment						(205	)		(0.01	)						(317	)		(0.01	)
Net interest income					$	77,082									$	69,840
Net interest margin									3.11		%								3.28		%

___________________________

(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 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									Six Months Ended
		June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands)		2020			2020			2019			2020			2019
Net interest income		$	40,432		$	36,650		$	35,517		$	77,082		$	69,840
Non-interest income			2,252			5,217			5,499			7,469			10,717
Total revenues			42,684			41,867			41,016			84,551			80,557
Non-interest expense			24,399			24,843			24,004			49,242			46,603
Pre-tax pre-provision net revenue (non-GAAP) (1)		$	18,285		$	17,024		$	17,012		$	35,309		$	33,954
Adjustment:
Change in fair value of loans held for sale			2,643			—			—			2,643			—
Adjusted pre-tax pre-provision net revenue (non-GAAP) (2)		$	20,928		$	17,024		$	17,012		$	37,952		$	33,954

____________________________

(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) 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.

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

		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
(Dollars in thousands, except per share amounts)		2020				2020				2019				2020				2019
Efficiency ratio - as reported (non-GAAP) (1)			57.16		%		59.34		%		58.52		%		58.24		%		57.85		%
Non-interest expense - as reported		$	24,399			$	24,843			$	24,004			$	49,242			$	46,603
Less: Amortization of intangible assets			(177	)			(181	)			(210	)			(358	)			(423	)
Adjusted non-interest expense (non-GAAP)		$	24,222			$	24,662			$	23,794			$	48,884			$	46,180
Net interest income - as reported		$	40,432			$	36,650			$	35,517			$	77,082			$	69,840
Tax-equivalent adjustment			102				103				187				205				317
Net interest income, tax-equivalent basis		$	40,534			$	36,753			$	35,704			$	77,287			$	70,157
Non-interest income - as reported		$	2,252			$	5,217			$	5,499			$	7,469			$	10,717
Less: Net securities losses/(gains)			—				15				(201	)			15				(201	)
Less: Change in fair value of loans held for sale			2,643				—				—				2,643				—
Adjusted non-interest income (non-GAAP)		$	4,895			$	5,232			$	5,298			$	10,127			$	10,516
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)		$	45,429			$	41,985			$	41,002			$	87,414			$	80,673
Adjusted efficiency ratio (non-GAAP) (2)			53.32		%		58.74		%		58.03		%		55.92		%		57.24		%

___________________________

(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 paycheck protection program loans (non-GAAP):

		Three Months Ended										Six Months Ended
		June 30,				March 31,			June 30,			June 30,				June 30,
(Dollars in thousands)		2020				2020			2019			2020				2019
Net interest income - as reported		$	40,432			$	36,650		$	35,517		$	77,082			$	69,840
Tax-equivalent adjustment			102				103			187			205				317
Net interest income, tax-equivalent basis		$	40,534			$	36,753		$	35,704		$	77,287			$	70,157
Adjustment:
Less: Net interest income on PPP loans			(4,614	)			—			—			(4,614	)			—
Adjusted net interest income, tax-equivalent basis (non-GAAP)		$	35,920			$	36,753		$	35,704		$	72,673			$	70,157
Average interest-earning assets - as reported		$	5,442,411			$	4,532,795		$	4,336,147		$	4,987,602			$	4,294,974
Adjustment:
Average PPP loans			(721,637	)			—			—			(360,818	)			—
Adjusted average interest-earning assets (non-GAAP)		$	4,720,774			$	4,532,795		$	4,336,147		$	4,626,784			$	4,294,974
Average yield on loans, tax-equivalent basis - as reported			3.82		%		4.35	%		4.76	%		4.06		%		4.71	%
Adjustment:
PPP loans			0.24				—			—			0.15				—
Adjusted average yield on loans (non-GAAP)			4.06				4.35			4.76			4.21				4.71
Net interest margin - as reported (1)			2.99		%		3.25	%		3.29	%		3.11		%		3.28	%
Tax-equivalent adjustment			0.01				0.01			0.01			0.01				0.01
Net interest margin, tax-equivalent basis (2)			3.00				3.26			3.30			3.12				3.29
Adjustment:
PPP loans			0.06				—			—			0.04				—
Adjusted net interest margin (non-GAAP) (3)			3.06				3.26			3.30			3.16				3.29

_______________________

(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.

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

The following table presents a reconciliation of return on average tangible common equity (as reported) and adjusted return on average tangible common equity (non-GAAP).

		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,			June 30,
		2020			2020			2019			2020			2019
Return on average tangible common equity - as reported		10.95		%	9.59		%	11.82		%	10.27		%	13.38		%
Amortization of other intangible assets		0.18			0.19			0.23			0.18			0.24
Income tax effect of adjustments above		(0.03	)		(0.04	)		(0.04	)		(0.03	)		(0.05	)
Adjusted return on average tangible common equity (non-GAAP)		11.10			9.74			12.01			10.42			13.57

____________________________

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									Six Months Ended
		June 30,			March 31,			June 30,			June 30,			June 30,
		2020			2020			2019			2020			2019
Operating expense as a % of average assets - as reported		1.66		%	2.01		%	2.03		%	1.82		%	2.00		%
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)		1.65			1.99			2.01			1.80			1.98

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

		June 30,				December 31,				June 30,
(Dollars in thousands)		2020				2019				2019
Total assets - as reported		$	6,150,664			$	4,921,520			$	4,714,535
Less: Goodwill and other intangible assets - as reported			(109,248	)			(109,627	)			(109,975	)
Tangible assets (non-GAAP)		$	6,041,416			$	4,811,893			$	4,604,560
Total stockholders' equity - as reported		$	502,621			$	497,154			$	475,205
Less: Goodwill and other intangible assets - as reported			(109,248	)			(109,627	)			(109,975	)
Tangible common equity (non-GAAP)		$	393,373			$	387,527			$	365,230
Tangible common equity to tangible assets (non-GAAP) (1)			6.5		%		8.1		%		7.9		%

__________________________

(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

FAQ

What were Bridge Bancorp's Q2 2020 earnings results?

Bridge Bancorp reported a net income of $10.7 million for Q2 2020, or $0.54 per diluted share.

How did Bridge Bancorp's total assets change in Q2 2020?

Total assets reached $6.2 billion, a 30% increase compared to the same quarter last year.

What initiated the rise in Bridge Bancorp's loan growth?

Loan growth of $1.2 billion, or 35%, was fueled by the Paycheck Protection Program (PPP) loans.

How much was the dividend declared by Bridge Bancorp in Q2 2020?

Bridge Bancorp declared a dividend of $0.24 during the second quarter of 2020.

What was the impact of COVID-19 on Bridge Bancorp's financials?

The provision for credit losses increased by $4.5 million due to the estimated economic impacts of COVID-19.

What is the significance of the planned merger with Dime Community for BDGE?

The merger aims to enhance market share and optimize operational efficiencies across both banks.