Bridge Capital Holdings Reports Financial Results For The Fourth Quarter And Year Ended December 31, 2010

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, 2010.

The Company reported net operating income of $149,000 for the three months ended December 31, 2010 representing a decrease of $1.2 million, or 89%, from $1.3 million in the quarter ended September 30, 2010 and a decrease of $1.3 million, or 89%, compared to net operating income of $1.4 million for the same period one year ago.

Net income available to common shareholders was reduced by preferred dividends of $298,000 resulting in a loss per diluted common share of $(0.01) for the fourth quarter of 2010. Net income available to common shareholders was reduced by preferred dividends of $299,000 during the third quarter of 2010 and $1.1 million for the quarter ended December 31, 2009, resulting in earnings per diluted common share of $0.09 and $0.05, respectively.

The Company reported net operating income of $2.6 million for the twelve months ended December 31, 2010 representing an increase of $1.2 million, compared to net operating income of $1.4 million for the same period one year ago. Net income available to common shareholders was reduced by preferred dividends of $2.0 million and $4.2 million during the years ended 2010 and 2009, respectively, resulting in earnings per diluted share of $0.06 and a loss per diluted share of $(0.42), respectively.

For the quarter ended December 31, 2010, the Company’s return on average assets and return on average equity were 0.06% and 0.47%, respectively, and compared to 0.66% and 5.11%, respectively, for the same period in 2009. For the twelve months ended December 31, 2010, the Company’s return on average assets and return on average equity were 0.29% and 2.26%, respectively, and compared to 0.17% and 1.30%, respectively, for the same period in 2009.

Daniel P. Myers, President and Chief Executive Officer of Bridge Capital Holdings and Bridge Bank, commented on the fourth quarter results, “We continued to generate robust new business development in the fourth quarter, which resulted in an 8% increase in total loans and a 7% increase in total deposits on a linked quarter basis. We are seeing strong economic activity in the Silicon Valley, and our compelling value proposition, unique product offerings, strong balance sheet and growing reputation have allowed us to steadily increase our market share. As a result of our success in attracting new customers to the Bank, we were able to increase our revenue by more than 14% over the fourth quarter of last year.

“We also continue to make steady progress in reducing our level of problem loans, although further declines in collateral valuations for some legacy construction loans that remain on our balance sheet increased our credit costs in the fourth quarter and compromised our overall results. However, we are generally encouraged by the prevailing trend of a stabilizing loan portfolio.

“As we begin 2011, we are optimistic about our ability to deliver improved profitability. Our loan pipeline continues to be strong and we have the capital and liquidity necessary to continue adding quality new assets that should drive higher levels of revenue and earnings going forward,” said Mr. Myers.

Fourth Quarter Highlights
  • Successfully completed the sale of $30.0 million in common stock to a group of institutional investors in a private placement transaction. Resulting regulatory capital ratios substantially exceed the definition for being “well capitalized” with a Total Risk-Based Capital Ratio of 20.87%, a Tier I Capital Ratio of 19.61%, and a Tier I Leverage Ratio of 16.67% at December 31, 2010.
  • Book value per common share of $8.16 at December 31, 2010, compared to $8.13 at September 30, 2010 and $7.81 at December 31, 2009.
  • For the first time, total assets exceeded $1.0 billion during the fourth quarter of 2010. As of December 31, 2010 total assets were $1.0 billion, representing an increase of $89.8 million, or 10%, compared to $940.0 million as of September 30, 2010, and an increase of $185.7 million, or 22%, from $844.1 million on the same date one year ago.
  • Total deposits increased $52.5 million, or 7%, to $847.9 million at December 31, 2010, from $795.4 million at September 30, 2010 and increased $142.9 million, or 20%, from $705.0 million at December 31, 2009. At December 31, 2010, demand deposits and core deposits represented 53.0% and 94.9%, respectively, of total deposits. Demand deposits and core deposits represented 55.1% and 94.2% of total deposits at September 30, 2010, respectively, and represented 47.9% and 87.1% of total deposits at December 31, 2009, respectively.
  • Total loans increased $46.3 million, or 8%, to $651.5 million at December 31, 2010, from $605.2 million at September 30, 2010 and increased $75.1 million, or 13%, from $576.4 million at December 31, 2009.
  • Nonperforming assets decreased to $23.3 million, or 2.27% of total assets, as of December 31, 2010, compared to $28.3 million, or 3.01% of total assets, as of September 30, 2010 and $23.5 million, or 2.79% of total assets, at December 31, 2009. The decrease in nonperforming assets during the fourth quarter of 2010 was the result of a decrease in nonperforming loans of $2.9 million and a decrease in “other real estate owned” (OREO) of $2.0 million.
  • Nonperforming loans decreased to $16.7 million, or 2.56% of total gross loans, as of December 31, 2010, compared to $19.6 million, or 3.25% of total gross loans, as of September 30, 2010 and $17.0 million, or 2.95% of total gross loans, at December 31, 2009.
  • Total revenue increased for the third consecutive quarter to $13.5 million for the fourth quarter of 2010, compared to $12.1 million for the quarter ended September 30, 2010 and $11.8 million for the same period one year ago.
  • Income before taxes and provision for credit losses was $2.4 million for the fourth quarter of 2010. This represented a decrease of $467,000, or 17%, compared to $2.8 million for the quarter ended September 30, 2010 and an increase of $662,000, or 39%, compared to $1.7 million for the same period one year ago.
  • Net interest income of $11.4 million represented an increase of $751,000, or 7%, compared to $10.7 million for the quarter ended September 30, 2010 and an increase of $1.9 million, or 21%, compared to the quarter ended December 31, 2009.
  • Net interest margin of 4.97% for the quarter ended December 31, 2010, compared to 4.97% for the quarter ended September 30, 2010 and 4.68% for the quarter ended December 31, 2009.
  • Provision for loan losses was $2.0 million which resulted in an allowance for credit losses that represented 2.39% of gross loans at December 31, 2010, compared with 2.52% at September 30, 2010 and 2.78% one year earlier. At December 31, 2010, the allowance for credit losses represented coverage of 93.11% of nonperforming loans, compared to 77.63% at September 30, 2010 and 94.14% at December 31, 2009.
  • Net charge-offs were $1.7 million for the quarter ended December 31, 2010 compared to $239,000 for the quarter ended September 30, 2010 and $1.8 million for the same period one year ago.

Net Interest Income and Margin

Net interest income of $11.4 million for the quarter ended December 31, 2010 represented an increase of $751,000, or 7%, compared to $10.7 million for the quarter ended September 30, 2010 and an increase of $1.9 million, or 21%, compared to the quarter ended December 31, 2009. The increase was primarily attributable to a lower cost of funds, an increase in earning assets, and a decrease during the current quarter in nonperforming loans, offset in part by decreased leverage. Average earning assets of $911.6 million for the quarter ended December 31, 2010 increased $108.2 million, or 14%, compared to $803.4 million for the same quarter in 2009. The Company’s loan-to-deposit ratio, a measure of leverage, averaged 75.39% during the quarter ended December 31, 2010, which represented a decrease compared to an average of 78.78% for the same quarter of 2009.

For the twelve months ended December 31, 2010, net interest income of $42.1 million represented an increase of $4.3 million, or 11%, from $37.8 million for the twelve months ended December 31, 2009 and was primarily attributed to a lower cost of funds, an increase in earning assets, and a decrease in average nonperforming loans, offset in part by decreased leverage. Average earning assets of $843.4 million for the twelve months ended December 31, 2010 increased $18.5 million, or 2%, compared to $824.9 million for the same period one year ago. The Company’s loan-to-deposit ratio, a measure of leverage, averaged 78.59% during the twelve months ended December 31, 2010, which represented a decrease compared to an average of 85.16% for the same period of 2009.

Changes in short-term interest rates impact growth in net interest income as the interest rate earned on a majority of the Company’s assets, specifically the loan portfolio, adjust with changes in short-term market rates. As such, the nature of the Company’s balance sheet is that over time, as short-term interest rates change, income on interest earning assets has a greater impact on net interest income than interest paid on liabilities. The Company’s prime rate has remained 3.25% throughout 2010 and 2009.

The Company’s net interest margin for the quarter ended December 31, 2010 was 4.97%, compared to 4.97% for the quarter ended September 30, 2010, and 4.68% for the same period one year earlier. The increase in net interest margin from prior year was primarily due to a lower cost of funds. In addition, the negative impact of reversal or foregone interest due to nonperforming assets was only 5 basis points in the fourth quarter of 2010 compared to 23 basis points in the fourth quarter of 2009.

The Company’s net interest margin for the twelve months ended December 31, 2010 was 4.99%, compared to 4.58% for the same period one year earlier. The increase in net interest margin from prior year was primarily due to a lower cost of funds. In addition, the negative impact of reversal or foregone interest due to nonperforming assets was only 14 basis points in the year ended December 31, 2010 compared to 24 basis points for the same period one year earlier.

Non-Interest Income

The Company’s non-interest income for the quarter and twelve months ended December 31, 2010 was $2.1 million and $6.9 million, respectively, compared to $2.3 million and $10.3 million for the same periods one year ago. Non-interest income for the quarter and twelve months ending December 31, 2009 included $64,000 and $3.3 million as the result of acceleration of the deferred gain on interest rate swaps terminated during the fourth quarter of 2008.

Net interest income and non-interest income comprised total revenue of $13.5 million for the three months ended December 31, 2010 compared to $11.8 million for the same period one year earlier, representing an increase of $1.7 million, or 15%. For the twelve months ended December 31, 2010, total revenue of $49.0 million represented an increase of $844,000, or 2%, from $48.1 million for the twelve months ended December 31, 2009.

Non-Interest Expense

Non-interest expense was $11.1 million and $39.7 million for the quarter and twelve months ended December 31, 2010, respectively, compared to $10.1 million and $38.1 million, respectively for the same periods in 2009.

Salary and benefits expense for the quarter and twelve months ended December 31, 2010 was $5.9 million and $21.3 million, respectively, compared to $4.5 million and $20.3 million, respectively, for the same periods in 2009. As of December 31, 2010, the Company employed 170 full-time equivalents (FTE) compared to 164 FTE at December 31, 2009.

“Other real estate owned” and loan related charges were $1.0 million and $2.4 million for the quarter and twelve months ended December 31, 2010, respectively, compared to $929,000 and $1.9 million, respectively, for the same periods one year ago. The increase in “other real estate owned” and loan related charges was primarily attributed to declines in valuations for properties held in “other real estate owned”.

Regulatory assessments related to participation in the Transaction Guarantee Program as well as FDIC insurance pertaining to deposit balances, totaled $660,000 and $2.5 million for the quarter and twelve months ended December 31, 2010, respectively, compared to $1.3 million and $2.6 million for the same periods one year ago.

The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 82.45% and 81.12% for the quarter and twelve months ended December 31, 2010, respectively, compared to 85.52% and 79.12% for the same periods one year earlier.

Balance Sheet

Bridge Capital Holdings reported total assets at December 31, 2010 of $1.0 billion, compared to $844.1 million on the same date one year ago. The increase in total assets of $185.7 million, or 22%, compared to December 31, 2009 was primarily due to a higher balance of investment securities available for sale and higher loan balances as a result of liquidity from increased low cost deposits.

The Company reported total gross loans outstanding at December 31, 2010 of $651.5 million, which represented an increase of $75.1 million, or 13%, over $576.4 million at December 31, 2009. The increase was primarily attributable to growth in the factoring and asset-based lending portfolio.

The Company’s total deposits were $847.9 million as of December 31, 2010, which represented an increase of $142.9 million, or 20%, compared to $705.0 million at December 31, 2009. The increase in deposits was primarily due to an increase of $110.6 million in non-interest bearing demand balances and an increase in money market accounts of $79.9 million, offset by the intentional reduction in time deposits, which decreased by $48.1 million.

Demand deposits represented 53.0% of total deposits at December 31, 2010, compared to 47.9% at December 31, 2009. Core deposits represented 94.9% of total deposits at December 31, 2010, up from 87.1% at December 31, 2009.

Credit Quality

Nonperforming assets decreased to $23.3 million, or 2.27% of total assets, as of December 31, 2010, compared to $28.3 million, or 3.01% of total assets, as of September 30, 2010 and $23.5 million, or 2.79% of total assets, at December 31, 2009. The nonperforming assets at December 31, 2010 consisted of loans on nonaccrual or 90 days or more past due totaling $16.7 million, and “other real estate owned” (OREO) valued at $6.6 million.

Nonperforming loans at December 31, 2010 were comprised of loans with legal contractual balances totaling approximately $23.3 million reduced by impairment charges of $6.6 million which have been charged against the allowance for credit losses.

Nonperforming loans decreased to $16.7 million, or 2.56% of total gross loans, as of December 31, 2010, compared to $19.6 million, or 3.25% of total gross loans, as of September 30, 2010 and $17.0 million, or 2.95% of total gross loans, at December 31, 2009.

The carrying value of OREO was $6.6 million as of December 31, 2010, compared to $8.6 million as of September 30, 2010 and $6.5 million as of December 31, 2009.

The Company charged-off $2.3 million during the three months ended December 31, 2010 compared to $2.5 million charged-off during the three months ended December 31, 2009. During the twelve months ended December 31, 2010, the Company charged-off balances totaling $8.2 million which compared to $12.8 million charged-off during the same period of 2009. During the three and twelve months ended December 31, 2010 the Company recognized $688,000 and $3.0 million, respectively, in loan recoveries compared to $734,000 and $1.1 million, respectively, in loan recoveries during the same periods of 2009.

The allowance for loan losses was $15.5 million, or 2.39% of total loans, at December 31, 2010, compared to $16.0 million, or 2.78% of total loans, at December 31, 2009. The provision for credit losses for the three months and twelve months ended December 31, 2010 was $2.0 million and $4.7 million, respectively, compared to $900,000 and $9.2 million for the same periods in 2009. The increase in the provision for credit losses in the fourth quarter of 2010 reflects the higher charge-offs experienced in the quarter.

Capital Adequacy

During the fourth quarter of 2010, the Company successfully completed the sale of $30.0 million in common stock to a group of institutional investors in a private placement transaction. The investors in the private placement purchased 3,508,771 shares of common stock at a price per share of $8.55. The price per share in the private placement was equal to the Nasdaq closing bid price of the Company’s common stock on November 18, 2010.

The Company’s capital ratios at December 31, 2010 substantially exceed the regulatory definition for being “well capitalized” with a Total Risk-Based Capital Ratio of 20.87%, a Tier I Capital Ratio of 19.61%, and a Tier I Leverage Ratio of 16.67%. Additionally, the Company’s tangible common equity ratio at December 31, 2010 was 11.50% and book value per common share was $8.16, representing an increase of $0.35, or 4%, from $7.81 at December 31, 2009.

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 877.477.1461 from the United States, or 973.409.9694 from outside the United States, and providing the conference ID 38895558. 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 10, 2011 by dialing 800.642.1687 from the United States, or 706.645.9291 from outside the United States, and entering the conference ID 38895558. 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.

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.
           
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
 
 
Three months ended Twelve months ended
12/31/10 09/30/10 12/31/09 12/31/10 12/31/09
 
INTEREST INCOME
Loans $ 11,018 $ 10,649 $ 10,132 $ 42,071 $ 43,350
Federal funds sold 75 66 95 263 395
Investment securities available for sale 962 632 318 2,733 464
Other   17     22     76     121     363  
Total interest income   12,072     11,369     10,621     45,188     44,572  
 
INTEREST EXPENSE
Deposits 378 426 886 1,965 5,416
Other   275     275     261     1,106     1,347  
Total interest expense   653     701     1,147     3,071     6,763  
 
Net interest income 11,419 10,668 9,474 42,117 37,809
Provision for credit losses   1,950     350     900     4,700     9,200  

Net interest income after provision for credit losses
  9,469     10,318     8,574     37,417     28,609  
 
NON-INTEREST INCOME
Service charges on deposit accounts 656 638 506 2,417 1,900
International Fee Income 464 415 446 1,785 1,583
Other non-interest income   967     380     1,341     2,647     6,829  
Total non-interest income   2,087     1,433     2,293     6,849     10,312  
 
OPERATING EXPENSES
Salaries and benefits 5,892 5,103 4,537 21,292 20,286
Premises and fixed assets 961 1,012 1,041 4,042 4,377
Other   4,287     3,153     4,485     14,386     13,408  
Total operating expenses   11,140     9,268     10,063     39,720     38,071  
 
Income (loss) before income taxes 416 2,483 804 4,546 850
Income tax expense (benefit) 267 1,161 (601 ) 1,955 (585 )
         
NET INCOME (LOSS) $ 149   $ 1,322   $ 1,405   $ 2,591   $ 1,435  
 
Preferred dividends 298 299 1,065 1,955 4,203

 
         

Net income (loss) available to common shareholders
$ (149 ) $ 1,023   $ 340   $ 636   $ (2,768 )
 
EARNINGS (LOSS) PER SHARE
Basic earnings (loss) per share $ (0.01 ) $ 0.10   $ 0.05   $ 0.06   $ (0.42 )
Diluted earnings (loss) per share $ (0.01 ) $ 0.09   $ 0.05   $ 0.06   $ (0.42 )
Average common shares outstanding   11,921,615     10,417,094     6,571,479     9,820,755     6,571,479  

Average common and equivalent shares outstanding
  11,921,615     10,843,374     6,810,264     10,234,535     6,571,479  
 
PERFORMANCE MEASURES
Return on average assets 0.06 % 0.58 % 0.66 % 0.29 % 0.17 %
Return on average equity 0.47 % 4.65 % 5.11 % 2.26 % 1.30 %
Efficiency ratio 82.48 % 76.59 % 85.52 % 81.12 % 79.12 %
           
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
 
 
12/31/10 09/30/10 06/30/10 03/31/10 12/31/09
 
ASSETS
Cash and due from banks $ 8,676 $ 17,599 $ 20,688 $ 10,273 $ 14,893
Federal funds sold 114,240 125,155 131,955 114,790 104,260
Interest-bearing deposits 2,539 3,028 5,658 8,053 9,980
Investment securities available for sale 217,303 151,119 125,591 107,317 105,005
Loans:
Commercial 269,034 245,894 238,288 243,672 253,776
SBA 67,538 60,005 58,198 56,037 67,629
Real estate construction 40,705 39,416 37,322 34,330 20,601
Land and land development 9,072 9,558 10,202 12,245 12,763
Real estate other 138,633 141,245 144,433 145,959 149,617
Factoring and asset-based lending 122,542 105,172 102,774 88,127 66,660
Other   4,023     3,917     4,456     5,396     5,395  
Loans, gross 651,547 605,207 595,673 585,766 576,441
Unearned fee income (1,444 ) (1,509 ) (1,581 ) (1,518 ) (1,452 )
Allowance for credit losses   (15,546 )   (15,248 )   (15,137 )   (16,155 )   (16,012 )
Loans, net 634,557 588,450 578,955 568,093 558,977
Premises and equipment, net 2,580 2,833 3,018 3,314 3,566
Accrued interest receivable 3,439 3,185 3,098 3,055 2,829
Other assets   46,397     48,606     46,404     43,876     44,557  
Total assets $ 1,029,731   $ 939,975   $ 915,367   $ 858,771   $ 844,067  
 
LIABILITIES
Deposits:
Demand noninterest-bearing $ 443,806 $ 432,714 $ 361,980 $ 356,787 $ 333,171
Demand interest-bearing 5,275 5,164 5,410 6,019 4,830
Money market and savings 355,772 311,107 343,886 289,984 275,850
Time   43,093     46,460     63,108     65,834     91,195  
Total deposits   847,946     795,445     774,384     718,624     705,046  
 
Junior subordinated debt securities 17,527 17,527 17,527 17,527 17,527
Other borrowings 7,672 - - - -
Accrued interest payable 48 60 134 112 121
Other liabilities   14,235     13,978     11,541     12,015     12,059  
Total liabilities   887,428     827,010     803,586     748,278     734,753  
 
SHAREHOLDERS' EQUITY
Preferred stock 23,864 23,864 23,864 23,864 53,864
Common stock 104,843 74,322 73,853 72,741 40,934
Retained earnings 15,784 15,933 14,910 14,453 15,133
Accumulated other comprehensive (loss)   (2,188 )   (1,154 )   (846 )   (565 )   (617 )
Total shareholders' equity   142,303     112,965     111,781     110,493     109,314  
Total liabilities and shareholders' equity $ 1,029,731   $ 939,975   $ 915,367   $ 858,771   $ 844,067  
 
CAPITAL ADEQUACY
Tier I leverage ratio 16.67 % 14.44 % 14.94 % 15.17 % 12.53 %
Tier I risk-based capital ratio 19.61 % 17.18 % 17.41 % 17.96 % 15.26 %
Total risk-based capital ratio 20.87 % 18.45 % 18.68 % 19.23 % 19.45 %
Total equity/ total assets 13.82 % 12.02 % 12.21 % 12.87 % 12.95 %
Book value per common share $ 8.16 $ 8.13 $ 8.04 $ 8.00 $ 7.81
             
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
 
 
Three months ended December 31,
2010 2009
 
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 611,400 7.15 % $ 11,018 $ 558,797 7.19 % $ 10,132
Federal funds sold 128,774 0.23 % 76 162,451 0.23 % 95
Investment securities 168,491 2.26 % 961 67,880 1.86 % 318
Other   2,938 2.30 %   17   14,231 2.12 %   76
Total interest earning assets   911,603 5.25 %   12,072   803,359 5.25 %   10,621
 
Noninterest-earning assets:
Cash and due from banks 21,437 17,860
All other assets (3)   35,533   28,659
TOTAL $ 968,573 $ 849,878
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Interest-bearing liabilities:
Deposits:
Demand $ 6,034 0.07 % $ 1 $ 5,202 0.08 % 1
Money market and savings 320,394 0.33 % 268 273,459 0.58 % 401
Time 45,145 0.96 % 109 99,947 1.92 % 484
Other   17,684 6.17 %   275   17,527 5.91 %   261
Total interest-bearing liabilities   389,257 0.67 %   653   396,135 1.15 %   1,147
 
Noninterest-bearing liabilities:
Demand deposits 439,433 330,678
Accrued expenses and
other liabilities 15,411 14,059
Shareholders' equity   124,472   109,006
TOTAL $ 968,573 $ 849,878
       
Net interest income and margin 4.97 % $ 11,419 4.68 % $ 9,474
 

(1) Loan fee amortization of $1.3 million and $1.1 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 $15.6 million and $16.5 million, respectively.
             
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
 
 
Twelve months ended December 31,
2010 2009
 
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 590,334 7.13 % $ 42,071 $ 612,318 7.08 % $ 43,350
Federal funds sold 112,940 0.23 % 263 167,434 0.24 % 395
Investment securities 134,349 2.03 % 2,733 16,843 2.75 % 464
Other   5,775 2.10 %   121   28,259 1.28 %   363
Total interest earning assets   843,398 5.36 %   45,188   824,854 5.40 %   44,572
 
Noninterest-earning assets:
Cash and due from banks 18,792 17,965
All other assets (3)   34,950   25,347
TOTAL $ 897,140 $ 868,166
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Interest-bearing liabilities:
Deposits:
Demand $ 6,079 0.10 % $ 6 $ 4,776 0.10 % $ 5
Money market and savings 306,461 0.40 % 1,223 292,464 0.74 % 2,150
Time 58,285 1.26 % 736 128,367 2.54 % 3,261
Other   17,622 6.28 %   1,106   26,431 5.10 %   1,347
Total interest-bearing liabilities   388,447 0.79 %   3,071   452,038 1.50 %   6,763
 
Noninterest-bearing liabilities:
Demand deposits 380,295 293,394
Accrued expenses and
other liabilities 13,775 12,287
Shareholders' equity   114,623   110,447
TOTAL $ 897,140 $ 868,166
       
Net interest income and margin 4.99 % $ 42,117 4.58 % $ 37,809
 

(1) Loan fee amortization of $4.1 million and $4.3 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 $15.6 million and $17.5 million, respectively.
           
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
(Dollars in Thousands)
 
 
12/31/10 09/30/10 06/30/10 03/31/10 12/31/09
 
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period $ 15,248 $ 15,137 $ 16,155 $ 16,012 $ 16,922
Provision for credit losses, quarterly 1,950 350 1,150 1,250 900
Charge-offs, quarterly (2,340 ) (1,268 ) (2,520 ) (2,051 ) (2,544 )
Recoveries, quarterly   688     1,029     352     944     734  
Balance, end of period $ 15,546   $ 15,248   $ 15,137   $ 16,155   $ 16,012  
 
 
 
 
NONPERFORMING ASSETS
Loans accounted for on a non-accrual basis $ 16,696 $ 19,641 $ 21,886 $ 13,217 $ 17,009

Loans with principal or interest contractually past due 90 days or more and still accruing interest
  -     -     -     -     -  
Nonperforming loans 16,696 19,641 21,886 13,217 17,009
Other real estate owned   6,645     8,625     7,833     6,626     6,509  
Nonperforming assets $ 23,341   $ 28,266   $ 29,719   $ 19,843   $ 23,518  
 

Loans restructured and in compliance with modified terms
  4,494     4,474     4,380     12,076     16,834  
Nonperforming assets and restructured loans $ 27,835   $ 32,740   $ 34,099   $ 31,919   $ 40,352  
 
 
Nonperforming Loans by Asset Type:
Commercial $ 300 $ 109 $ 665 $ 1,202 $ -
Land 3,176 4,025 4,220 3,933 4,371
Construction 5,342 6,480 6,888 3,568 3,620
Other real estate 7,878 9,027 9,913 4,514 9,018
Other   -     -     200     -     -  
Nonperforming loans $ 16,696   $ 19,641   $ 21,886   $ 13,217   $ 17,009  
 
 
 
 
ASSET QUALITY
Allowance for credit losses / gross loans 2.39 % 2.52 % 2.54 % 2.76 % 2.78 %
Allowance for credit losses / nonperforming loans 93.11 % 77.63 % 69.16 % 122.23 % 94.14 %
Nonperforming assets / total assets 2.27 % 3.01 % 3.25 % 2.31 % 2.79 %
Nonperforming loans / gross loans 2.56 % 3.25 % 3.67 % 2.26 % 2.95 %
Net quarterly charge-offs / gross loans 0.25 % 0.04 % 0.36 % 0.19 % 0.31 %

Copyright Business Wire 2010

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