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8-K - FORM 8-K - Dime Community Bancshares, Inc. /NY/ | g24979e8vk.htm |
Exhibit 99.1
Press Release
FOR IMMEDIATE RELEASE
Contact:
|
Howard H. Nolan Senior Executive Vice President Chief Financial Officer (631) 537-1001, ext. 7255 |
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BRIDGE BANCORP, INC.
REPORTS THIRD QUARTER 2010 RESULTS
Growth in Earnings, Core Deposits and Capital
REPORTS THIRD QUARTER 2010 RESULTS
Growth in Earnings, Core Deposits and Capital
Bridgehampton, NY October 25, 2010, Bridge Bancorp, Inc. (NASDAQ:BDGE), the parent company of
The Bridgehampton National Bank, today announced net income and earnings per share for the third
quarter of 2010. Highlights for the quarter include:
| Net income of $2.4 million or $.38 per share, 3% higher than the comparable 2009 period. |
| Returns on average assets and equity of .94% and 15.58%, respectively. |
| Net interest income of $9.4 million, with a net interest margin of 4.09%. |
| Total assets exceeded $1 billion at September 30, 2010. |
| Deposits increased to $926.2 million, 21% higher than the third quarter of 2009. |
| Loan growth of 7% from year end levels, with loans totaling $480.0 million. |
| Strong liquidity with higher levels of securities, and a net loan to deposit ratio of 51%. |
| Continued solid asset quality metrics with an increased allowance for loan losses. |
| Tier 1 Capital increased by $20.8 million or 36%, from September 2009. |
| Opened the Banks 18th branch, in Patchogue, New York. |
| Declared a quarterly dividend of $.23 per share. |
We benefited from growth in revenues as success in our existing and new markets provided
opportunities to add customers and develop relationships. These new relationships provided the
funding and growth opportunities to increase assets to over $1 billion at September
30th. Revenue gains were however, offset by
the recurrent themes of lower loan demand, an historically low interest rate environment and high
credit and regulatory costs, commented Kevin M. OConnor, the President and CEO of Bridge Bancorp,
Inc.
Our current performance, despite the myriad of challenges facing our economy and industry,
demonstrates our underlying fundamental strength. However, we remain cautious as we manage through
a still weak economy characterized by lackluster job creation, a fragile housing recovery and the
consequences, both intended and unintended, of attempts to reverse the countrys course. There is
also the specter and undetermined impact financial, and otherwise, of recently passed financial
legislation, continued Mr. OConnor.
Net Earnings and Returns
Net income for the quarter ended September 30, 2010 was $2.4 million or $.38 per share, compared to
$2.3 million or $.37 per share, for the same period in 2009. The net income increase reflects
higher net interest income and non interest income, and lower credit costs, partially offset by
higher operating expenses associated with new branches, expanded support functions and higher FDIC
insurance costs.
Net interest income increased compared to the quarter ended September 30, 2009, although margins
were impacted by historically low market rates and a higher concentration of securities holdings.
The increase in average deposits of $168.0 million primarily funded lower yielding securities,
which grew $126.1 million, while net loans increased only $28.9 million from the comparable 2009
quarter. The net interest margin of 4.09%, was lower than 2009, but still above peer levels with
earning assets yielding 4.90%, and an overall funding cost of .82%. We continue to execute on our
strategy of cautiously investing core deposit growth and managing our overall balance sheet for the
eventuality of higher market interest rates, noted Mr. OConnor.
The coverage ratio of the allowance for loan losses to loans increased to 1.62% reflecting the
current quarters provision for loan losses of $.6 million. Non interest income increased $0.1
million due to higher title and customer service fee income. Higher operating expenses included
costs related to branch expansion, technology, FDIC insurance, risk management and other support
and administrative functions. Net income for the nine months ended September 30, 2010 increased to
$6.8 million or $1.07 per share, compared to $6.6 million or $1.05 per share in the prior year.
Our decisions relating to liquidity, security portfolio management, expansion and lending have
remained consistent during this economic cycle, as we balance our risks, short term opportunities
and long term objectives. Weve taken a conservative view on balance sheet management and capital
focusing on increasing stable core deposits, actions consistent with our Companys historic focus
and approach, commented Mr. OConnor.
Balance Sheet and Asset Quality
Total assets grew to $1.04 billion at September 30, 2010, representing a 21% increase over the
September 2009 level of $854.5 million. Over the same period, investment securities increased
$140.7 million, while net loans grew by approximately $38.4 million. The securities purchased were
principally shorter term government guaranteed securities and obligations of local municipalities.
Notwithstanding the overall weak economic conditions and continued negative industry trends, asset
quality remained relatively strong. Non-performing loans were $8.9 million at September 30, 2010,
compared to
$8.2 million at June 30, 2010 and $5.9 million at December 31, 2009. This increase relates
primarily to one $2.1 million relationship representing loans secured by first mortgage liens on
real estate with recently appraised values aggregating $9.3 million. The majority of the other
non-performing loans are previously restructured relationships with borrowers continuing to make
payments in compliance with the modified terms. The $2.6 million provision for loan losses,
partially offset by net charge-offs of $.9 million for the nine months ended September 30, 2010,
increased the allowance for loan losses to $7.8 million, representing a ratio of allowance to total
loans of 1.62% at September 30, 2010, compared to 1.35% at year end and 1.25% at September 30,
2009.
Deposits ended the quarter at $926.2 million, an increase of $160.8 million or 21% over September
30, 2009, with both new and existing markets contributing to core deposit growth. This growth
continues to fund the expansion of interest earning assets, with these lower cost funds
contributing to a strong margin. Demand deposits were $250.6 million at September 30, 2010, 18%
higher than September 30, 2009.
Following last years successful openings, weve opened three new branches this year, Center
Moriches, Patchogue and in October, Deer Park, our 19th location. These expansion
efforts built around seasoned professionals with strong community connections, provide a platform
for growth and we intend to concentrate our efforts on delivering our brand of community banking to
these markets, stated Mr. OConnor.
Stockholders equity grew to $66.2 million at September 30, 2010, reflecting continued earnings
growth, and a positive market valuation on investment securities. The Companys Tier 1 capital,
including the positive effects of the convertible trust preferred securities, increased to $78
million or 36% higher than the September 2009 level. The Companys capital ratios continue to
exceed all regulatory minimums to be classified as well capitalized. One positive aspect of the
financial reform legislation was the clarification on certain forms of capital. Based on our size
and timing of issuance, our trust preferred securities were grandfathered into the legislation
and remain an effective form of capitalization, commented Mr. OConnor.
Opportunities & Challenges
Locally many customers, citing great summer weather and renewed optimism, reported improvement in
their businesses in 2010. However, more broadly, great uncertainty remains on the breath of
economic recovery and its sustainability. Job growth is anemic, and unemployment and under
employment remains stubbornly high. The housing market continues down an uncertain path, impacted
by foreclosure moratoriums, mortgage availability and uncertainty regarding past and future
government initiatives. There is also talk of new initiatives as well as the use of unconventional
stimulus to revive the economy and create the needed jobs. Finally, we have the new financial
reform legislation representing a framework to be clarified with a myriad of new rules and
regulations, not yet completed. Although it is still early, indications are the impacts will be
significant and compliance may be costly. We will need to devote substantial time and resources to
assess the impact on us and develop a framework for compliance.
We balance these global issues, with the realities of the local markets to identify strategic
initiatives, provide guidance on capital deployment and determine investment decisions. However,
the longer term mission, focusing on the customer and serving our communities has been successful
for over 100 years and, transcends these shorter term concerns. This has allowed us to manage
through the uncertain, and at times,
difficult environment and deliver strong financial results and returns to our shareholders, said
Mr. OConnor.
About Bridge Bancorp, Inc.
Bridge Bancorp, Inc. is a bank holding company engaged in commercial banking and financial services
through its wholly owned subsidiary, The Bridgehampton National Bank. Established in 1910, the
Bank, with assets of approximately $1 billion, and a primary market area of the North and South
Forks of Eastern Long Island, extending westward into Suffolk County, operates 19 retail branch
locations. Through this network and electronic delivery channels, the Bank provides deposit and
loan products and financial services to local businesses, consumers and municipalities. Title
insurance services are offered through the subsidiary, Bridge Abstract and investments through
Bridge Investment Services.
The Bridgehampton National Bank has a rich tradition of involvement in the community by supporting
programs and initiatives that promote local business, the environment, education, healthcare,
social services and the arts.
Please see the attached tables for selected financial information.
This report may contain statements relating to the future results of the Company (including
certain projections and business trends) that are considered forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995 (the PSLRA). Such
forward-looking statements, in addition to historical information, which involve risk and
uncertainties, are based on the beliefs, assumptions and expectations of management of the Company.
Words such as expects, believes, should, plans, anticipates, will, potential,
could, intend, may, outlook, predict, project, would, estimated, assumes,
likely, and variation of such similar expressions are intended to identify such forward-looking
statements. Examples of forward-looking statements include, but are not limited to, possible or
assumed estimates with respect to the financial condition, expected or anticipated revenue, and
results of operations and business of the Company, including earnings growth; revenue growth in
retail banking lending and other areas; origination volume in the Companys consumer, commercial
and other lending businesses; current and future capital management programs; non-interest income
levels, including fees from the title abstract subsidiary and banking services as well as product
sales; tangible capital generation; market share; expense levels; and other business operations and
strategies. For this presentation, the Company claims the protection of the safe harbor for
forward-looking statements contained in the PSLRA.
Factors that could cause future results to vary from current management expectations include, but
are not limited to, changing economic conditions; legislative and regulatory changes, including
increases in FDIC insurance rates; monetary and fiscal policies of the federal government; changes
in tax policies; rates and regulations of federal, state and local tax authorities; changes in
interest rates; deposit flows; the cost of funds; demands for loan products; demand for financial
services; competition; changes in the quality and composition of the Banks loan and investment
portfolios; changes in managements business strategies; changes in accounting principles, policies
or guidelines, changes in real estate values and other factors discussed elsewhere in this report,
and in other reports filed by the Company with the Securities and Exchange Commission. The
forward-looking statements are made as of the date of this report, and the Company assumes no
obligation to update the forward-looking statements or to update the reasons why actual results
could differ from those projected in the forward-looking statements.
BRIDGE BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Condition (unaudited)
(In thousands)
September 30, | December 31, | September 30, | ||||||||||
2010 | 2009 | 2009 | ||||||||||
ASSETS |
||||||||||||
Cash and Cash Equivalents |
$ | 26,396 | $ | 34,147 | $ | 36,732 | ||||||
Securities Available for Sale, at Fair Value |
346,590 | 306,112 | 291,308 | |||||||||
Securities Held to Maturity |
147,981 | 77,424 | 62,534 | |||||||||
Total Securities |
494,571 | 383,536 | 353,842 | |||||||||
Securities, restricted |
1,219 | 1,205 | 1,205 | |||||||||
Loans |
480,020 | 448,038 | 439,317 | |||||||||
Less: Allowance for Loan Losses |
(7,792 | ) | (6,045 | ) | (5,485 | ) | ||||||
Loans, net |
472,228 | 441,993 | 433,832 | |||||||||
Premises and Equipment, net |
23,668 | 21,306 | 20,568 | |||||||||
Accrued Interest Receivable and Other Assets |
18,461 | 15,070 | 8,367 | |||||||||
Total Assets |
$ | 1,036,543 | $ | 897,257 | $ | 854,546 | ||||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||||||
Demand Deposits |
$ | 250,623 | $ | 212,137 | $ | 213,121 | ||||||
Savings, NOW and Money Market Deposits |
527,908 | 440,447 | 391,853 | |||||||||
Other Time Deposits |
77,362 | 67,553 | 75,359 | |||||||||
Certificates of Deposit of $100,000 or more |
70,356 | 73,401 | 85,101 | |||||||||
Total Deposits |
926,249 | 793,538 | 765,434 | |||||||||
Federal Funds Purchased and Repurchase Agreements |
17,094 | 15,000 | 15,000 | |||||||||
Junior Subordinated Debentures |
16,002 | 16,002 | | |||||||||
Other Liabilities and Accrued Expenses |
11,000 | 10,862 | 12,489 | |||||||||
Total Liabilities |
970,345 | 835,402 | 792,923 | |||||||||
Total Stockholders Equity |
66,198 | 61,855 | 61,623 | |||||||||
Total Liabilities and Stockholders Equity |
$ | 1,036,543 | $ | 897,257 | $ | 854,546 | ||||||
Selected Financial Data: |
||||||||||||
Capital Ratios |
||||||||||||
Total Capital (to risk weighted assets) |
13.8 | % | 14.5 | % | 11.8 | % | ||||||
Tier 1 Capital (to risk weighted assets) |
12.6 | % | 13.4 | % | 10.7 | % | ||||||
Tier 1 Capital (to average assets) |
7.8 | % | 8.6 | % | 7.0 | % | ||||||
Asset Quality |
||||||||||||
Non-performing loans |
$ | 8,926 | $ | 5,891 | $ | 5,953 | ||||||
Real estate owned |
| | | |||||||||
Non-performing assets |
$ | 8,926 | $ | 5,891 | $ | 5,953 | ||||||
Non-performing loans/Total loans |
1.86 | % | 1.31 | % | 1.36 | % | ||||||
Allowance/Non-performing loans |
87.30 | % | 102.61 | % | 92.14 | % | ||||||
Allowance/Total loans |
1.62 | % | 1.35 | % | 1.25 | % |
BRIDGE BANCORP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (unaudited)
(In thousands, except per share amounts)
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Interest Income |
$ | 11,377 | $ | 10,727 | $ | 33,132 | $ | 32,614 | ||||||||
Interest Expense |
1,937 | 1,916 | 5,907 | 5,791 | ||||||||||||
Net Interest Income |
9,440 | 8,811 | 27,225 | 26,823 | ||||||||||||
Provision for Loan Losses |
600 | 900 | 2,600 | 3,200 | ||||||||||||
Net Interest Income after Provision for Loan Losses |
8,840 | 7,911 | 24,625 | 23,623 | ||||||||||||
Other Non Interest Income |
1,429 | 1,339 | 3,784 | 3,554 | ||||||||||||
Title Fee Income |
244 | 226 | 817 | 586 | ||||||||||||
Net Securities Gains |
| | 1,303 | 529 | ||||||||||||
Total Non Interest Income |
1,673 | 1,565 | 5,904 | 4,669 | ||||||||||||
Salaries and Benefits |
4,111 | 3,614 | 11,926 | 10,714 | ||||||||||||
FDIC Assessments |
343 | 310 | 917 | 1,265 | ||||||||||||
Other Non Interest Expense |
2,603 | 2,140 | 7,814 | 6,624 | ||||||||||||
Total Non Interest Expense |
7,057 | 6,064 | 20,657 | 18,603 | ||||||||||||
Income Before Income Taxes |
3,456 | 3,412 | 9,872 | 9,689 | ||||||||||||
Provision for Income Taxes |
1,074 | 1,092 | 3,111 | 3,137 | ||||||||||||
Net Income |
$ | 2,382 | $ | 2,320 | $ | 6,761 | $ | 6,552 | ||||||||
Basic Earnings Per Share |
$ | 0.38 | $ | 0.37 | $ | 1.07 | $ | 1.05 | ||||||||
Diluted Earnings Per Share |
$ | 0.38 | $ | 0.37 | $ | 1.07 | $ | 1.05 | ||||||||
Selected Financial Data: |
||||||||||||||||
Return on Average Total Assets |
0.94 | % | 1.12 | % | 0.95 | % | 1.08 | % | ||||||||
Return on Average Stockholders Equity |
15.58 | % | 16.07 | % | 15.28 | % | 15.64 | % | ||||||||
Net Interest Margin |
4.09 | % | 4.63 | % | 4.21 | % | 4.80 | % | ||||||||
Operating Efficiency |
61.40 | % | 56.89 | % | 62.82 | % | 58.43 | % | ||||||||
Operating Expense as a % of Average Assets |
2.77 | % | 2.93 | % | 2.90 | % | 3.05 | % |