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Exhibit 99.1

 

For Immediate Release: January 24, 2013

 

 

Bridge Capital Holdings Reports Financial Results

For the Fourth Quarter and Year Ended

December 31, 2012

 

Record Annual Levels of Loans, Deposits, Revenue, and Earnings

 

Conference Call and Webcast Scheduled for Thursday, January 24, 2013 at

5:00 p.m. Eastern Time

 

San Jose, CA – January 24, 2013 – Bridge Capital Holdings (NASDAQ: BBNK), whose subsidiary is Bridge Bank, National Association, announced today its financial results for the fourth quarter and year ended December 31, 2012.

 

The Company reported net income of $3.4 million for the three months ended December 31, 2012, representing a decrease of $1.0 million, or 22%, from $4.4 million in the quarter ended September 30, 2012 and an increase of $1.1 million, or 50%, compared to net income of $2.3 million for the same period one year ago.

 

For the quarter ended December 31, 2012, the Company reported earnings per diluted share of $0.23, which compares with $0.29 for the quarter ended September 30, 2012. This also compares with earnings per diluted share of $0.16 for the quarter ended December 31, 2011.

 

The Company reported net income of $13.8 million for the year ended December 31, 2012 representing an increase of $6.2 million, compared to net income of $7.8 million for the same period one year ago. For the year ended December 31, 2012, the Company reported earnings per diluted share of $0.92 compared to $0.52 for the year ended December 31, 2011, which included preferred dividend payments of $200,000. The Company retired the preferred stock issued under TARP in March of 2011 and, as a result, no longer has any preferred dividend payments.

 

For the quarter ended December 31, 2012, the Company’s return on average assets and return on average equity were 1.06% and 9.41%, respectively, and compared to 1.43% and 12.38%, respectively, for the quarter ended September 30, 2012 and 0.82% and 7.09%, respectively, for the same period in 2011. For the year ended December 31, 2012, the Company’s return on average assets and return on average equity were 1.14% and 9.98%, respectively, and compared to 0.75% and 6.12%, respectively, for the same period in 2011.

 

 
 

 

“In the fourth quarter, we saw a continuation of the positive trends that made 2012 the most profitable year in the history of the Company,” said Daniel P. Myers, president and chief executive officer of Bridge Bank, N.A. and Bridge Capital Holdings.  “We continued to see improvement in nearly all core operating and growth metrics of the company.  The relatively strong and improving economic environment of Silicon Valley, our focus and disciplined execution of the fundamentals of blocking and tackling of our business,  and the additional personnel and investments we made in infrastructure to expand our business development capabilities across all of our markets has positioned Bridge Bank to continue its growth and success into the new year.  This momentum should result in further measured improvement of performance during 2013.”

 

Fourth Quarter Highlights

 

Fourth quarter 2012 results, compared to third quarter 2012 (unless otherwise noted), reflected strong performance across all areas of the Company’s business and included the following:

 

·Total revenue of $19.5 million for the fourth quarter of 2012 was the highest level of quarterly revenue since the inception of the Company and represented an increase of $0.3 million, or 2%, from the prior quarter. Net interest income of $15.8 million for the fourth quarter of 2012 compared to $15.4 million for the third quarter of 2012. Non-interest income of $3.7 million for the fourth quarter of 2012 compared to $3.8 million for the third quarter of 2012.

 

·Net interest margin declined slightly to 5.10% for the quarter ended December 31, 2012 compared to 5.26% for the third quarter of 2012.

 

·Total assets grew to $1.34 billion at December 31, 2012, with loans comprising 71% of the average earning asset mix compared to 72% for the prior quarter.  Total deposits of $1.16 billion at December 31, 2012 represented the highest level of deposit balances since the inception of the Company, and compared to $1.07 billion at September 30, 2012.

 

·Loan growth continued to be strong, primarily in the commercial, factoring, and asset-based lending portfolios, with average gross loans reaching $876.8 million for the quarter ended December 31, 2012, representing an increase of $39.2 million, or 5%, compared to average gross loans of $837.6 million for the quarter ended September 30, 2012. Period-end loan balances increased $27.6 million, or 3%, to $908.6 million, compared to $881.0 million at September 30, 2012.

 

·Credit quality overall remained solid with the allowance for credit losses representing 2.20% of total gross loans and 200.14% of nonperforming loans at December 31, 2012, compared to 2.25% of total gross loans and 224.67% of nonperforming loans at September 30, 2012. The provision for credit losses of $1.5 million for the fourth quarter of 2012 primarily related to a charge-off on one asset-based credit. Net charge-offs were $1.3 million for the quarter ended December 31, 2012, and compared to net recoveries of $50,000 for the quarter ended September 30, 2012.

 

·Nonperforming assets increased by $1.1 million to $10.1 million, or 0.75% of total assets, primarily due to one asset-based lending credit. The successful resolution of one remaining “other real estate owned” unit from a multi-unit complex, of which the other units had previously been sold for more than the recorded value of the entire complex, contributed $416,000 to non-interest income for the fourth quarter of 2012.

 

·Capital ratios remained strong and continued to support the Company’s growth. Total Risk-Based Capital Ratio was 15.23%, Tier I Capital Ratio was 13.98%, and Tier I Leverage Ratio was 12.50% at December 31, 2012.

 

Net Interest Income and Margin

 

Net interest income of $15.8 million for the quarter ended December 31, 2012 represented an increase of $411,000, or 3%, compared to $15.4 million for the quarter ended September 30, 2012 and an increase of $2.8 million, or 22%, compared to $13.0 million for the quarter ended December 31, 2011. The increase in net interest income from the third quarter of 2012 and the same period in the prior year was primarily attributable to an increase in average earning assets as a result of loan growth and excess liquidity generated from deposit growth. Average earning assets of $1.23 billion for the quarter ended December 31, 2012 increased $69.1 million, or 6%, compared to $1.16 billion for the quarter ended September 30, 2012 and increased $190.8 million, or 18%, compared to $1.04 billion for the same quarter in 2011.

 

 
 

 

For the year ended December 31, 2012, net interest income of $60.6 million represented an increase of $12.2 million, or 25%, from $48.4 million for the year ended December 31, 2011 and was primarily attributed to an increase in average earning assets as a result of loan growth. Average earning assets of $1.15 billion for the year ended December 31, 2012 increased $163.0 million, or 17%, compared to $987.6 million for the same period one year ago.

 

The Company’s net interest margin for the quarter ended December 31, 2012 was 5.10%, compared to 5.26% for the quarter ended September 30, 2012, and 4.94% for the same period one year earlier. The decrease in net interest margin compared to the third quarter of 2012 was primarily due to deposit growth outpacing loan growth, which created excess liquidity and a slightly less favorable mix of earning assets. The increase in net interest margin from the same quarter in the prior year was primarily due to increased balance sheet leverage and increased recurring loan fees related to overall growth of the loan portfolio. The Company’s loan-to-deposit ratio, a measure of leverage, averaged 78.9% during the three months ended December 31, 2012, which represented a decrease compared to an average of 80.4% for the quarter ended September 30, 2012 and an increase from 75.8% for the same period of 2011. The positive impact on the net interest margin from increased loan fees for the three months ended December 31, 2012 compared the same period one year ago was 30 basis points.

 

The Company’s net interest margin for the year ended December 31, 2012 was 5.27%, compared to 4.90% for the same period one year earlier. The increase in net interest margin from the prior year was primarily due to increased balance sheet leverage, a more favorable mix in average earning assets, and increased recurring loan fees related to overall growth of the loan portfolio. The positive impact on the net interest margin from increased loan fees for the year ended December 31, 2012 compared to the same period one year ago was 24 basis points. The negative impact of reversed or foregone interest due to nonperforming assets was 6 basis points in the year ended December 31, 2012 compared to 14 basis points for the same period one year earlier.

 

Non-Interest Income

 

The Company’s non-interest income for the quarters ended December 31, 2012, September 30, 2012, and December 31, 2011 was $3.7 million, $3.8 million, and $2.6 million, respectively.

 

During the fourth quarter of 2012, the Company recognized a gain from the sale of SBA loans of $989,000 compared to $227,000 for third quarter of 2012 and $299,000 for the fourth quarter of 2011. The successful resolution of one remaining “other real estate owned” unit from a multi-unit complex, of which the other units had previously been sold for more than the recorded value of the entire complex, contributed $416,000 to non-interest income for the fourth quarter of 2012. During the third quarter of 2012 and fourth quarter of 2011, the Company recognized $1.0 million and $133,000 recognized, respectively, as a result of real estate related gains. The Company received warrant related income of $149,000 for the fourth quarter of 2012 compared to $576,000 for the third quarter of 2012 and $246,000 for the fourth quarter of 2011.

 

Non-interest income for the year ending December 31, 2012 and 2011 was $13.0 million and $9.9 million, respectively. During the year ending December 31, 2012, the Company recognized $1.6 million as a result of the successful resolution of “other real estate owned” properties and legacy problem loans that were originated prior to the economic downturn compared to $421,000 in the prior year. Also included in non-interest income for the year ending December 31, 2012 was $1.4 million in warrant income compared to $392,000 in the prior year. During the year ending December 31, 2012 the Company recognized a gain on the sale of SBA loans of $1.9 million compared to $1.7 million in the prior year. Additionally, non-interest income for the year ending December 31, 2012 included international fee income of $2.6 million and depositor service charges of $3.4 million compared to $2.5 million and $2.9 million, respectively, for the same period one year earlier.

 

Net interest income and non-interest income comprised total revenue of $19.5 million for the three months ended December 31, 2012, compared to $19.2 million for the three months ended September 30, 2012 and $15.6 million for the same period one year earlier. For the year ended December 31, 2012, total revenue of $73.6 million represented an increase of $15.2 million, or 26%, from $58.4 million for the year ended December 31, 2011.

 

 
 

 

Non-Interest Expense

 

Non-interest expense was $12.2 million for the quarter ended December 31, 2012, compared to $11.6 million and $11.1 million for the quarters ended September 30, 2012 and December 31, 2011, respectively. Non-interest expense for the year ended December 31, 2012 was $46.2 million compared to $42.4 million for the same period one year ago. Overall, trends in non-interest expenses continue to reflect a lower level of expenses related to problem asset valuation and resolution, and higher expenses related to supporting growth and investments in new initiatives.

 

Salary and benefits expense for the quarter ended December 31, 2012 was $8.3 million, compared to $7.6 million and $7.1 million for the quarters ended September 30, 2012 and December 31, 2011, respectively. Salary and benefits expense for the year ended December 31, 2012 was $30.3 million compared to $24.6 million for the same period one year ago. The increase in salary and benefits expense compared to the same periods in prior year primarily related to an increase in headcount to support growth and new initiatives, additional accruals for incentive compensation due to strong performance related to business development, and increased stock-based compensation due to long-term retention awards granted during the third quarter of 2012. As of December 31, 2012, the Company employed 207 full-time equivalents (FTE) compared to 203 FTE at September 30, 2012 and 193 FTE at December 31, 2011.

 

“Other real estate owned” and loan-related charges were $334,000 for the quarter ended December 31, 2012, compared to $197,000 and $565,000 for the quarters ended September 30, 2012 and December 31, 2011, respectively. “Other real estate owned” and loan-related charges were $995,000 for the year ended December 31, 2012 compared to $1.8 million for the same period one year ago. The decrease in “other real estate owned” and loan related charges from prior year was primarily attributed to a decline in nonperforming assets.

 

Regulatory assessments related to participation in the Transaction Guarantee Program as well as FDIC insurance pertaining to deposit balances, totaled $224,000 for the quarter ended December 31, 2012, compared to $230,000 for the quarter ended September 30, 2012 and $144,000 for the same period one year ago. Regulatory assessments for the year ended December 31, 2012 were $878,000 compared to $1.7 million for the same period one year ago.

 

The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 62.55%, 60.39%, and 70.99% for the quarters ended December 31, 2012, September 30, 2012, and December 31, 2011, respectively. The efficiency ratio was 62.81% for the year ended December 31, 2012 compared to 72.68% for the same period one year earlier.

 

Balance Sheet

 

Bridge Capital Holdings reported total assets at December 31, 2012 of $1.34 billion, compared to $1.25 billion at September 30, 2012 and $1.16 billion on the same date one year ago. The increase in total assets of $182.6 million, or 16%, from December 31, 2011 was driven by an increase in deposit production which was primarily used to fund loan growth and increase the investment portfolio.

 

The Company reported total gross loans outstanding at December 31, 2012 of $908.6 million, which represented an increase of $27.6 million, or 3%, over $881.0 million at September 30, 2012 and an increase of $146.6 million, or 19%, over $762.0 million at December 31, 2011. The increase in total gross loans from September 30, 2012 and December 31, 2011 was broad-based throughout the portfolio, with the most significant growth reflected in the commercial lending, factoring, and asset-based lending portfolios.

 

The Company’s total deposits were $1.16 billion as of December 31, 2012, which represented an increase of $91.3 million, or 9%, compared to $1.07 billion at September 30, 2012 and an increase of $163.9 million, or 16%, compared to $998.7 million at December 31, 2011. The increase in deposits from September 30, 2012 and December 31, 2011 was primarily attributable to continued growth in money market and savings, and noninterest-bearing demand deposit accounts.

 

Demand deposits represented 63.1% of total deposits at December 31, 2012, compared to 66.6% at September 30, 2012 and 66.5% for the same period one year ago. Core deposits represented 95.9% of total deposits at December 31, 2012, compared to 95.7% at September 30, 2012 and 96.4% at December 31, 2011.

 

 
 

 

Credit Quality

 

Nonperforming assets increased to $10.1 million, or 0.75% of total assets, as of December 31, 2012, compared to $9.0 million, or 0.72% of total assets, as of September 30, 2012 and $16.0 million, or 1.38% of total assets, at December 31, 2011. The nonperforming assets at December 31, 2012 consisted of loans on nonaccrual or 90 days or more past due totaling $10.0 million, and OREO valued at $144,000. The increase in nonperforming loans in the fourth quarter of 2012 was primarily due to one asset-based lending credit.

 

Nonperforming loans at December 31, 2012 were comprised of loans with legal contractual balances totaling approximately $15.5 million reduced by $1.4 million received in non-accrual interest and impairment charges of $4.1 million which have been charged against the allowance for credit losses.

 

Nonperforming loans increased to $10.0 million, or 1.10% of total gross loans, as of December 31, 2012, compared to $8.8 million, or 1.00% of total gross loans, as of September 30, 2012 and decreased compared to $11.8 million, or 1.55% of total gross loans, at December 31, 2011.

 

The carrying value of OREO was $144,000 as of December 31, 2012, unchanged compared to September 30, 2012 and down from $4.1 million as of December 31, 2011.

 

The Company charged-off $1.6 million in loan balances during the three months ended December 31, 2012, compared to $17,000 charged-off during the three months ended September 30, 2012 and $488,000 charged-off during the three months ended December 31, 2011. During the year ended December 31, 2012, the Company charged-off balances totaling $3.1 million, which compared to $2.9 million charged-off during the same period of 2011. Approximately $2.3 million of the charge-offs in 2012 were related to one loan in the asset-based lending portfolio and one loan in the factoring portfolio.

 

During the three months ended December 31, 2012, the Company recognized $222,000 in loan recoveries compared to $67,000 and $136,000, respectively, in loan recoveries for the three months ended September 30, 2012 and December 31, 2011. During the year ended December 31, 2012, the Company recognized $603,000 in loan recoveries which compared to $3.3 million in loan recoveries for the same period one year ago. The loan recoveries during 2011 were primarily the result of payments received on two real estate loans that were funded prior to the economic downturn.

 

The allowance for loan losses was $19.9 million, or 2.20% of total loans, at December 31, 2012, compared to $19.8 million, or 2.25% of total loans, at September 30, 2012 and $18.5 million, or 2.43% of total loans, at December 31, 2011. The provision for credit losses for the fourth quarter of 2012 was $1.5 million compared to $200,000 for the third quarter of 2012 and $600,000 for the same period one year ago. The provision for credit losses for the year ending December 31, 2012 and December 31, 2011 was $4.0 million and $2.6 million, respectively. The provision for credit losses of $1.5 million for the fourth quarter of 2012 primarily related to a charge-off on one asset-based credit.

 

Capital Adequacy

 

The Company’s capital ratios at December 31, 2012 substantially exceed the regulatory definition for being “well capitalized” with a Total Risk-Based Capital Ratio of 15.23%, a Tier I Risk-Based Capital Ratio of 13.98%, and a Tier I Leverage Ratio of 12.50%. Additionally, the Company’s tangible common equity ratio at December 31, 2012 was 10.92% and book value per common share was $9.32, representing an increase of $0.30, or 3.4%, from $9.02 at September 30, 2012 and an increase of $0.77, or 9.0%, from $8.55 at December 31, 2011.

 

Conference Call and Webcast

 

Management will host a conference call today at 5:00 p.m. Eastern time/2:00 p.m. Pacific time to discuss the Company’s financial results and answer questions.

 

Individuals interested in participating in the conference call may do so by dialing 877.941.6009 from the United States, or 480.629.9819 from outside the United States and referencing conference ID 4592023. Those interested in listening to the conference call live via the Internet may do so by visiting the Investor Relations section of the Company's Web site at www.bridgebank.com.

 

 
 

 

A telephone replay will be available through February 7, 2013, by dialing 800.406.7325 from the United States, or 303.590.3030 from outside the United States, and entering conference ID 4592023.  A webcast replay will be available for 90 days.

 

About Bridge Capital Holdings

 

Bridge Capital Holdings is the holding company for Bridge Bank, National Association. Bridge Capital Holdings was formed on October 1, 2004 and holds a Global Select listing on The NASDAQ Stock Market under the trading symbol BBNK. For additional information, visit the Bridge Capital Holdings website at http://www.bridgecapitalholdings.com.

 

About Bridge Bank, N.A.

 

Bridge Bank, N.A. is Silicon Valley’s full-service professional business bank. The Bank is dedicated to meeting the financial needs of small, middle market, and emerging technology businesses. Bridge Bank provides its clients with a comprehensive package of business banking solutions delivered through experienced, professional bankers. For additional information, visit the Bridge Bank website at http://www.bridgebank.com.

 

Contacts

 

Daniel P. Myers   Thomas A. Sa
President   Executive Vice President
Chief Executive Officer   Chief Financial Officer and Chief Strategy Officer
408.556.6510   408.556.8308
dan.myers@bridgebank.com   tom.sa@bridgebank.com

 

Forward-Looking Statements

 

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by that Act. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements are based on currently available information, expectations, assumptions, projections, and management’s judgment about the Company, the banking industry and general economic conditions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date.  Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.

 

Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this press release.  Factors that might cause such differences include, but are not limited to: the Company’s ability to successfully execute its business plans and achieve its objectives; changes in general economic, real estate and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; new litigation or changes in existing litigation; future credit loss experience; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; loss of key personnel; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; and the ability to satisfy requirements related to the Sarbanes-Oxley Act and other regulation on internal control.

 

 
 

 

The reader should refer to the more complete discussion of such risks in Bridge Capital Holdings’ annual reports on Forms 10-K and quarterly reports on Forms 10-Q on file with the Securities and Exchange Commission. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

 

-Financial Tables Follow-

 

 
 

 

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in Thousands)

 

   Three months ended   Twelve months ended 
   12/31/12   09/30/12   12/31/11   12/31/12   12/31/11 
                     
INTEREST INCOME                         
Loans  $14,722   $14,467   $11,789   $56,122   $45,352 
Federal funds sold   66    59    53    203    255 
Investment securities   1,614    1,444    1,661    6,461    5,068 
Other   -    -    -    1    19 
Total interest income   16,402    15,970    13,503    62,787    50,694 
                          
INTEREST EXPENSE                         
Deposits   324    300    269    1,089    1,096 
Other   270    273    271    1,106    1,160 
Total interest expense   594    573    540    2,195    2,256 
                          
Net interest income   15,808    15,397    12,963    60,592    48,438 
Provision for credit losses   1,500    200    600    3,950    2,600 
Net interest income after provision for credit losses   14,308    15,197    12,363    56,642    45,838 
                          
NON-INTEREST INCOME                         
Service charges on deposit accounts   826    888    774    3,353    2,876 
International Fee Income   643    627    708    2,646    2,488 
Other non-interest income   2,216    2,270    1,134    6,985    4,566 
Total non-interest income   3,685    3,785    2,616    12,984    9,930 
                          
OPERATING EXPENSES                         
Salaries and benefits   8,299    7,579    7,094    30,308    24,606 
Premises and fixed assets   1,028    1,043    960    3,993    3,801 
Other   2,866    2,962    3,005    11,911    14,017 
Total operating expenses   12,193    11,584    11,059    46,212    42,424 
                          
Income before income taxes   5,800    7,398    3,920    23,414    13,344 
Income tax expense   2,376    3,034    1,633    9,610    5,498 
                          
NET INCOME  $3,424   $4,364   $2,287   $13,804   $7,846 
                          
Preferred dividends   -    -    -    -    200 
Net income available to common shareholders  $3,424   $4,364   $2,287   $13,804   $7,646 
                          
EARNINGS PER SHARE                         
Basic earnings per share  $0.24   $0.30   $0.16   $0.96   $0.54 
Diluted earnings per share  $0.23   $0.29   $0.16   $0.92   $0.52 
Average common shares outstanding   14,403,867    14,391,432    14,337,176    14,385,629    14,247,853 
Average common and equivalent shares outstanding   15,002,775    14,991,337    14,735,337    14,927,837    14,642,260 
                          
PERFORMANCE MEASURES                         
Return on average assets   1.06%   1.43%   0.82%   1.14%   0.75%
Return on average equity   9.41%   12.38%   7.09%   9.98%   6.12%
Efficiency ratio   62.55%   60.39%   70.99%   62.81%   72.68%

 

 
 

 

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY

INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in Thousands)

 

   12/31/12   09/30/12   06/30/12   03/31/12   12/31/11 
                     
ASSETS                         
Cash and due from banks  $17,251   $27,509   $16,877   $21,663   $17,135 
Federal funds sold   113,790    82,245    39,420    48,700    106,690 
Interest-bearing deposits   335    335    335    335    335 
Investment securities   267,204    227,336    224,967    238,556    240,268 
Loans:                         
Commercial   436,293    404,657    382,471    362,556    330,348 
SBA   87,375    91,805    83,718    82,459    73,336 
Real estate construction   35,502    39,011    46,341    51,986    47,213 
Land and land development   8,973    5,321    5,327    6,109    6,772 
Real estate other   139,930    153,003    153,919    154,697    157,446 
Factoring and asset-based lending   195,343    182,213    173,996    154,895    142,482 
Other   5,163    4,949    4,614    4,284    4,431 
Loans, gross   908,579    880,959    850,386    816,986    762,028 
Unearned fee income   (3,056)   (3,136)   (2,605)   (2,622)   (2,792)
Allowance for credit losses   (19,948)   (19,791)   (19,541)   (19,304)   (18,540)
Loans, net   885,575    858,032    828,240    795,060    740,696 
Premises and equipment, net   2,042    2,057    2,205    2,302    2,337 
Accrued interest receivable   3,469    3,439    3,452    3,534    3,291 
Other assets   53,919    46,601    49,713    50,672    50,281 
Total assets  $1,343,585   $1,247,554   $1,165,209   $1,160,822   $1,161,033 
                          
LIABILITIES                         
Deposits:                         
Demand noninterest-bearing  $723,517   $708,513   $645,884   $640,235   $660,036 
Demand interest-bearing   10,582    5,089    5,264    4,232    4,272 
Money market and savings   380,949    311,671    294,389    320,489    298,145 
Time   47,500    45,934    40,017    31,647    36,222 
Total deposits   1,162,548    1,071,207    985,554    996,603    998,675 
                          
Junior subordinated debt securities   17,527    17,527    17,527    17,527    17,527 
Other borrowings   -    -    10,000    -    - 
Accrued interest payable   11    10    11    10    9 
Other liabilities   16,752    16,759    15,007    13,560    15,309 
Total liabilities   1,196,838    1,105,503    1,028,099    1,027,700    1,031,520 
                          
SHAREHOLDERS' EQUITY                         
Common stock   108,963    108,117    107,661    107,184    106,673 
Retained earnings   37,235    33,811    29,447    26,138    23,431 
Accumulated other comprehensive income (loss)   549    123    2    (200)   (591)
Total shareholders' equity   146,747    142,051    137,110    133,122    129,513 
Total liabilities and shareholders' equity  $1,343,585   $1,247,554   $1,165,209   $1,160,822   $1,161,033 
                          
CAPITAL ADEQUACY                         
Tier I leverage ratio   12.50%   13.01%   13.16%   12.86%   13.36%
Tier I risk-based capital ratio   13.98%   14.44%   14.54%   14.38%   14.80%
Total risk-based capital ratio   15.23%   15.70%   15.80%   15.63%   16.06%
Total equity/ total assets   10.92%   11.39%   11.77%   11.47%   11.15%
Book value per common share  $9.32   $9.02   $8.99   $8.72   $8.55 

 

 
 

 

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY

INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)

(Dollars in Thousands)

 

   Three months ended December 31, 
   2012   2011 
                         
       Yields   Interest       Yields   Interest 
   Average   or   Income/   Average   or   Income/ 
   Balance   Rates   Expense   Balance   Rates   Expense 
ASSETS                              
Interest earning assets (2):                              
Loans (1)  $876,765    6.68%  $14,722   $712,441    6.56%  $11,789 
Federal funds sold   112,749    0.23%   66    91,232    0.23%   53 
Investment securities   242,658    2.65%   1,614    237,722    2.77%   1,661 
Other   335    0.00%   -    335    0.00%   - 
Total interest earning assets   1,232,507    5.29%   16,402    1,041,730    5.14%   13,503 
                               
Noninterest-earning assets:                              
Cash and due from banks   24,886              21,563           
All other assets (3)   33,392              37,097           
TOTAL  $1,290,785             $1,100,390           
                               
LIABILITIES AND                              
SHAREHOLDERS' EQUITY                              
Interest-bearing liabilities:                              
Deposits:                              
Demand  $7,379    0.05%  $1   $4,332    0.09%  $1 
Money market and savings   357,147    0.29%   257    336,187    0.27%   232 
Time   46,064    0.57%   66    35,265    0.41%   36 
Other   17,527    6.13%   270    17,527    6.13%   271 
Total interest-bearing liabilities   428,117    0.55%   594    393,311    0.54%   540 
                               
Noninterest-bearing liabilities:                              
Demand deposits   700,073              564,026           
Accrued expenses and other liabilities   17,791              15,019           
Shareholders' equity   144,804              128,034           
TOTAL  $1,290,785             $1,100,390           
                               
Net interest income and margin        5.10%  $15,808         4.94%  $12,963 

 

(1)Loan fee amortization of $2.7 million and $1.5 million, respectively, is included in interest income. Nonperforming loans have been included in average loan balances.
(2)Interest income is reflected on an actual basis, not a fully taxable equivalent basis. Yields are based on amortized cost.
(3)Net of average allowance for credit losses of $19.5 million and $18.3 million, respectively.

 

 
 

 

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY

INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)

(Dollars in Thousands)

 

   Twelve months ended December 31, 
   2012   2011 
                         
       Yields   Interest       Yields   Interest 
   Average   or   Income/   Average   or   Income/ 
   Balance   Rates   Expense   Balance   Rates   Expense 
ASSETS                              
Interest earning assets (2):                              
Loans (1)  $827,691    6.78%  $56,122   $660,614    6.87%  $45,352 
Federal funds sold   86,735    0.23%   203    109,134    0.23%   255 
Investment securities   235,892    2.74%   6,461    216,870    2.34%   5,068 
Other   331    0.30%   1    998    1.90%   19 
Total interest earning assets   1,150,649    5.46%   62,787    987,616    5.13%   50,694 
                               
Noninterest-earning assets:                              
Cash and due from banks   22,946              22,392           
All other assets (3)   33,096              37,133           
TOTAL  $1,206,691             $1,047,141           
                               
LIABILITIES AND                              
SHAREHOLDERS' EQUITY                              
Interest-bearing liabilities:                              
Deposits:                              
Demand  $5,834    0.03%  $2   $6,205    0.06%  $4 
Money market and savings   311,712    0.29%   900    326,546    0.27%   884 
Time   38,933    0.48%   187    36,876    0.56%   208 
Other   29,057    3.81%   1,106    20,217    5.74%   1,160 
Total interest-bearing liabilities   385,536    0.57%   2,195    389,844    0.58%   2,256 
                               
Noninterest-bearing liabilities:                              
Demand deposits   667,146              515,056           
Accrued expenses and other liabilities   15,643              14,113           
Shareholders' equity   138,366              128,128           
TOTAL  $1,206,691             $1,047,141           
                               
Net interest income and margin        5.27%  $60,592         4.90%  $48,438 

 

(1)Loan fee amortization of $9.4 million and $5.7 million, respectively, is included in interest income. Nonperforming loans have been included in average loan balances.
(2)Interest income is reflected on an actual basis, not a fully taxable equivalent basis. Yields are based on amortized cost.
(3)Net of average allowance for credit losses of $19.2 million and $16.9 million, respectively.

 

 
 

 

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY

INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)

(Dollars in Thousands)

 

   12/31/12   09/30/12   06/30/12   03/31/12   12/31/11 
                     
ALLOWANCE FOR CREDIT LOSSES                         
Balance, beginning of period  $19,791   $19,541   $19,304   $18,540   $18,292 
Provision for credit losses, quarterly   1,500    200    500    1,750    600 
Charge-offs, quarterly   (1,565)   (17)   (553)   (1,010)   (488)
Recoveries, quarterly   222    67    290    24    136 
Balance, end of period  $19,948   $19,791   $19,541   $19,304   $18,540 
                          
NONPERFORMING ASSETS                         
Loans accounted for on a non-accrual basis  $9,967   $8,807   $9,211   $8,891   $11,840 
Loans with principal or interest contractually past due 90 days or more and still accruing interest   -    2    -    -    - 
Nonperforming loans   9,967    8,809    9,211    8,891    11,840 
Other real estate owned   144    144    3,125    4,150    4,126 
Nonperforming assets  $10,111   $8,953   $12,336   $13,041   $15,966 
                          
Loans restructured and in compliance with modified terms   9,402    10,629    11,272    9,927    10,677 
Nonperforming assets and restructured loans  $19,513   $19,582   $23,608   $22,968   $26,643 
                          
Nonperforming Loans by Asset Type:                         
Commercial  $676   $816   $1,041   $257   $798 
SBA   2,047    2,099    2,162    1,011    2,110 
Construction   -    -    -    -    - 
Land   11    13    31    498    540 
Other real estate   5,783    5,879    5,977    6,067    6,184 
Factoring and asset-based lending   1,450    -    -    1,058    2,208 
Other   -    2    -    -    - 
Nonperforming loans  $9,967   $8,809   $9,211   $8,891   $11,840 
                          
ASSET QUALITY                         
Allowance for credit losses / gross loans   2.20%   2.25%   2.30%   2.36%   2.43%
Allowance for credit losses / nonperforming loans   200.14%   224.67%   212.15%   217.12%   156.59%
Nonperforming assets / total assets   0.75%   0.72%   1.06%   1.12%   1.38%
Nonperforming loans / gross loans   1.10%   1.00%   1.08%   1.09%   1.55%
Net quarterly charge-offs / gross loans   0.15%   -0.01%   0.03%   0.12%   0.05%