Bridge Capital Holdings (NASDAQ: BBNK), whose subsidiary is Bridge Bank, National Association, announced today its financial results for the second quarter and six months ended June 30, 2011.

The Company reported net operating income of $1.8 million for the three months ended June 30, 2011, representing an increase of $216,000, or 14%, from $1.6 million in the quarter ended March 31, 2011, and an increase of $1.0 million, or 137%, compared to net operating income of $755,000 for the same period one year ago.

For the quarter ended June 30, 2011, the Company did not pay any preferred dividends and as a result reported earnings per diluted share of $0.12. Net income available to common shareholders was reduced by preferred dividends of $200,000 during the first quarter of 2011 and $298,000 for the quarter ended June 30, 2010, resulting in earnings per diluted common share of $0.09 and $0.04, respectively.

The Company reported net operating income of $3.3 million for the six months ended June 30, 2011, representing an increase of $2.2 million, compared to net operating income of $1.1 million for the same period one year ago. Net income available to common shareholders was reduced by preferred dividends of $200,000 and $1.4 million during the six months ended June 30, 2011 and 2010, respectively, resulting in earnings per diluted share of $0.22 and a loss per diluted share of $(0.03), respectively.

For the quarter ended June 30, 2011, the Company’s return on average assets and return on average equity were 0.73% and 5.82%, respectively, and compared to 0.62% and 4.69%, respectively, for the quarter ended March 31, 2011, and 0.35% and 2.72%, respectively, for the same period in 2010. For the six months ended June 30, 2011, the Company’s return on average assets and return on average equity were 0.67% and 5.23%, respectively, and compared to 0.26% and 2.04%, respectively, for the same period in 2010.

“We are pleased to deliver another quarter of increasing profitability,” said Daniel P. Myers, President and Chief Executive Officer of Bridge Capital Holdings and Bridge Bank. “These results are being driven by positive trends in all of our key metrics including growth of core deposits and loans, an expanding net interest margin, and reduced credit costs. The Silicon Valley market is experiencing strong economic activity and we are well positioned in the marketplace to capitalize on growth opportunities. We are prudently investing to expand our franchise, including the addition of professional business bankers to attract and serve our growing base of quality new commercial clients.”

Second Quarter Highlights

Second quarter results, compared to first quarter 2011 (unless otherwise noted), reflected strong performance across all areas of the Company’s business and included:
  • Net interest income of $11.8 million represented growth of $708,000, or 6%, compared to $11.1 million for the prior quarter.
  • Strong net interest margin of 5.07%, up from 4.66% in the prior quarter.
  • Continued improvement in credit quality resulted in net loan recoveries of $1.7 million and no provision for credit losses.
  • Nonperforming loans declined to $12.6 million, or 1.93% of total gross loans.
  • Allowance for credit losses grew to 2.58% of total gross loans and 133.62% of nonperforming loans.
  • Solid growth of total gross loans to $653.2 million, up from $631.7 million at March 31, 2011, represented continued growth in the commercial and factoring and asset-based lending portfolios.
  • Total deposits of $879.7 million represented growth of $52.0 million, or 6%, compared to $827.7 million at March 31, 2011.
  • Total assets exceeded $1.0 billion at June 30, 2011.
  • Successful negotiation and repurchase of the TARP related warrant held by the U.S. Treasury for $1.4 million, which was recorded as a reduction to shareholders’ equity.
  • Total Risk-Based Capital Ratio of 17.89%, Tier I Capital Ratio of 16.64%, and Tier I Leverage Ratio of 14.30%.

Net Interest Income and Margin

Net interest income of $11.8 million for the quarter ended June 30, 2011, represented an increase of $708,000, or 6%, compared to $11.1 million for the quarter ended March 31, 2011, and an increase of $1.6 million, or 16%, compared to $10.2 million for the quarter ended June 30, 2010. The increase in net interest income from the first quarter of 2011 was primarily attributable to an increase in yield on earning assets combined with a decrease in average interest-bearing liabilities. The increase in net interest income from the same period one year ago was primarily attributable to an increase in average earning assets combined with a lower cost of funds. Average earning assets of $930.2 million for the quarter ended June 30, 2011, decreased $33.0 million, or 3%, compared to $963.3 million for the quarter ended March 31, 2011, and increased $114.9 million, or 14%, compared to $815.3 million for the same quarter in 2010. The Company’s loan-to-deposit ratio, a measure of leverage, averaged 75.8% during the quarter ended June 30, 2011, which represented an increase compared to an average of 73.8% for the quarter ended March 31, 2011, and a decrease compared to an average of 79.8% for the same quarter of 2010.

For the six months ended June 30, 2011, net interest income of $22.8 million represented an increase of $2.8 million, or 14%, from $20.0 million for the six months ended June 30, 2010, and was primarily attributed to an increase in average earning assets combined with a decrease in average nonperforming loans and a lower cost of funds. Average earning assets of $946.7 million for the six months ended June 30, 2011, increased $142.3 million, or 18%, compared to $804.4 million for the same period one year ago. The Company’s loan-to-deposit ratio, a measure of leverage, averaged 74.8% during the six months ended June 30, 2011, which represented a decrease compared to an average of 80.5% for the same period of 2010.

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 2011 and 2010.

The Company’s net interest margin for the quarter ended June 30, 2011, was 5.07%, compared to 4.66% for the quarter ended March 31, 2011, and 5.00% for the same period one year earlier. The increase in net interest margin from the first quarter of 2011 was primarily due to higher interest income recognized as a result of increased loan fees related to loan recoveries and growth in the factoring and asset-based lending portfolio. The positive impact on the net interest margin from increased loan fees for the second quarter of 2011 compared to the first quarter of 2011 was 18 basis points. In addition, during the quarter ended March 31, 2011, the Company experienced a significant pre-payment on a specific class of mortgage-backed securities which had a negative impact on the first quarter net interest margin of 9 basis points.

The increase in net interest margin for the second quarter of 2011 compared to the same period one year ago was primarily due to increased loan fees, related to the growth in the factoring and asset-based lending portfolio, and a lower cost of funds, partially offset by lower balance sheet leverage. The positive impact on the net interest margin from increased loan fees for the second quarter of 2011 compared to the second quarter of 2010 was 26 basis points.

The negative impact of reversed or foregone interest (net of recovered interest) due to nonperforming assets was 15 basis points in the second quarter of 2011 compared to 9 basis points in the first quarter of 2011 and 21 basis points in the second quarter of 2010.

The Company’s net interest margin for the six months ended June 30, 2011, was 4.86%, compared to 5.02% for the same period one year earlier. The decrease in net interest margin from prior year was primarily due to decreased balance sheet leverage and a less favorable mix in average earning assets, partially offset by increased loan fees related to the growth in the factoring and asset-based lending portfolio. The positive impact on the net interest margin from increased loan fees for the six months ended June 30, 2011 compared to the same period one year ago was 15 basis points. The negative impact of reversed or foregone interest (net of recovered interest) due to nonperforming assets was 12 basis points in the six months ended June 30, 2011, compared to 17 basis points for the same period one year earlier.

Non-Interest Income

The Company’s non-interest income for the quarters ending June 30, 2011; March 31, 2011; and June 30, 2010, was $1.5 million, $2.5 million, and $1.7 million, respectively. Non-interest income for the six months ending June 30, 2011 and 2010, was $4.1 million and $3.3 million, respectively. Non-interest income for the six months ending June 30, 2011, included $187,000 in warrant income and a $641,000 gain on the sale of SBA loans, which were recognized in the first quarter of 2011. The Company did not recognize warrant income or sell any SBA loans during the second quarter of 2011 or the first six months of 2010.

Net interest income and non-interest income comprised total revenue of $13.3 million for the three months ended June 30, 2011, compared to $13.6 million for the three months ended March 31, 2011, and $11.9 million for the same period one year earlier. For the six months ended June 30, 2011, total revenue of $26.9 million represented an increase of $3.5 million, or 15%, from $23.4 million for the six months ended June 30, 2010.

Non-Interest Expense

Non-interest expense was $10.2 million for the quarter ended June 30, 2011, compared to $10.2 million and $9.7 million for the quarters ended March 31, 2011, and June 30, 2010, respectively. Non-interest expense for the six months ended June 30, 2011, was $20.4 million compared to $19.3 million for the same period one year ago.

Salary and benefits expense for the quarter ended June 30, 2011, was $5.9 million compared to $5.4 million and $5.0 million for the quarters ended March 31, 2011, and June 30, 2010, respectively. Salary and benefits expense for the six months ended June 30, 2011, was $11.3 million compared to $10.3 million for the same period one year ago. As of June 30, 2011, the Company employed 172 full-time equivalents (FTE) compared to 168 FTE at March 31, 2011, and 157 FTE at June 30, 2010.

“Other real estate owned” and loan related charges were $395,000 for the quarter ended June 30, 2011, compared to $586,000 and $819,000 for the quarters ended March 31, 2011, and June 30, 2010, respectively. “Other real estate owned” and loan related charges were $981,000 for the six months ended June 30, 2011, compared to $1.2 million for the same period one year ago. The decrease in “other real estate owned” and loan related charges 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 $547,000 for the quarter ended June 30, 2011, compared to $803,000 and $578,000 for the quarters ended March 31, 2011, and June 30, 2010, respectively. Regulatory assessments for the six months ended June 30, 2011, were $1.4 million compared to $1.2 million for the same period one year ago.

The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 76.86%, 75.25%, and 81.46% for the quarters ended June 30, 2011; March 31, 2011; and June 30, 2010, respectively. The efficiency ratio was 76.05% for the six months ended June 30, 2011, compared to 82.67% for the same period one year earlier.

Balance Sheet

Bridge Capital Holdings reported total assets at June 30, 2011, of $1.03 billion, compared to $998.4 million at March 31, 2011, and $915.4 million on the same date one year ago. The increase in total assets of $35.5 million, or 4%, from March 31, 2011, was primarily due to new commercial and factoring loans funded at the end of the second quarter. The increase in total assets of $118.6 million, or 13%, compared to June 30, 2010, 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 June 30, 2011, of $653.2 million, which represented an increase of $21.6 million, or 3%, over $631.7 million at March 31, 2011, and an increase of $57.6 million, or 10%, over $595.7 million at June 30, 2010. The increase in total gross loans from March 31, 2011, and June 30, 2010, was primarily attributable to continued growth in the commercial and factoring and asset-based lending portfolios.

The Company’s total deposits were $879.7 million as of June 30, 2011, which represented an increase of $52.0 million, or 6%, compared to $827.7 million at March 31, 2011, and an increase of $105.3 million, or 14%, compared to $774.4 million at June 30, 2010. The increase in deposits from March 31, 2011, and June 30, 2010, was primarily attributable to continued growth in noninterest-bearing demand deposits offset, in part, by a reduction in time deposits.

Demand deposits represented 59.4% of total deposits at June 30, 2011, compared to 58.0% at March 31, 2011, and 47.4% for the same period one year ago. Core deposits represented 96.2% of total deposits at June 30, 2011, up from 94.9% at March 31, 2011, and 91.6% at June 30, 2010.

Credit Quality

Nonperforming assets decreased to $22.3 million, or 2.16% of total assets, as of June 30, 2011, compared to $23.9 million, or 2.40% of total assets, as of March 31, 2011, and $29.7 million, or 3.25% of total assets, at June 30, 2010. The nonperforming assets at June 30, 2011, consisted of loans on nonaccrual or 90 days or more past due totaling $12.6 million, and “other real estate owned” (OREO) valued at $9.7 million.

Nonperforming loans at June 30, 2011, comprised loans with legal contractual balances totaling approximately $18.2 million reduced by $886,000 received in non-accrual interest and impairment charges of $4.6 million which have been charged against the allowance for credit losses.

Nonperforming loans decreased to $12.6 million, or 1.93% of total gross loans, as of June 30, 2011, compared to $14.3 million, or 2.26% of total gross loans, as of March 31, 2011, and $21.9 million, or 3.67% of total gross loans, at June 30, 2010.

The carrying value of OREO was $9.7 million as of June 30, 2011, and March 31, 2011, compared to $7.8 million as of June 30, 2010.

The Company charged-off $380,000 during the three months ended June 30, 2011, compared to $1.8 million charged-off during the three months ended March 31, 2011, and $2.5 million charge-off during the three months ended June 30, 2010. During the six months ended June 30, 2011, the Company charged-off balances totaling $2.1 million, which compared to $4.6 million charged-off during the same period of 2010.

During the three months ended June 30, 2011, the Company recognized $2.1 million in loan recoveries from payments received on two real estate loans that were funded prior to the economic downturn. The recoveries recognized during the second quarter of 2011 compared to $632,000 and $352,000, respectively, in loan recoveries for the three months ended March 31, 2011 and June 30, 2010. During the six months ended June 30, 2011, the Company recognized $2.7 million in loan recoveries, which compared to $1.3 million in loan recoveries for the same period one year ago.

The allowance for loan losses was $16.9 million, or 2.58% of total loans, at June 30, 2011, compared to $15.2 million, or 2.40% of total loans, at March 31, 2011, and $15.1 million, or 2.54% of total loans, at June 30, 2010. The Company did not record a provision for credit losses for the three months ended June 30, 2011 due to the improving condition of the loan portfolio combined with the loan recoveries recognized during the quarter. The provision for credit losses was $750,000 and $1.2 million, respectively, for the quarters ending March 31, 2011, and June 30, 2010. The provision for credit losses for the six months ending June 30, 2011, and June 30, 2010, was $750,000 and $2.4 million, respectively. The decrease in the provision for credit losses for the first six months of 2011 compared to the same period one year ago reflects lower charge-offs and greater recoveries experienced during the current year combined with the improving condition of the Company’s loan portfolio.

“We were very pleased to recognize significant recoveries this quarter, which reflects our conservative treatment of problem loans, as well as the extraordinary collection efforts by our credit administration team,” said Thomas A. Sa, Executive Vice president and Chief Financial Officer of Bridge Capital Holdings. “The recoveries eliminated the need to record a provision for loan losses in the quarter, and we expect the recovery experience and improving economy to moderate the level of provision expense that will be required as we continue to grow our loan balances in the future.”

Capital Adequacy

During the second quarter of 2011, the Company successfully negotiated and repurchased the TARP related warrant held by the U.S. Treasury for $1.4 million, which was recorded as a reduction to shareholders’ equity. The 10-year warrant was issued on December 23, 2008, as part of the Company’s participation in the U.S. Treasury’s Capital Purchase Program, and entitled the Treasury to purchase 396,412 shares of Bridge Capital Holdings common stock at an exercise price of $9.03 per share.

The Company’s capital ratios at June 30, 2011, substantially exceed the regulatory definition for being “well capitalized” with a Total Risk-Based Capital Ratio of 17.89%, a Tier I Capital Ratio of 16.64%, and a Tier I Leverage Ratio of 14.30%. Additionally, the Company’s tangible common equity ratio at June 30, 2011, was 11.96% and book value per common share was $8.19, representing an increase of $0.07, or 1%, from $8.12 at March 31, 2011, and an increase of $0.15, or 2%, from June 30, 2010.

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 877-941-2928 from the United States, or 480-629-9774 from outside the United States, and providing the conference ID 4459536. 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 August 11, 2011, by dialing 800-406-7325 from the United States, or 303-590-3030 from outside the United States, and entering the conference ID 4459536. 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   Six months ended
06/30/11   03/31/11   06/30/10 06/30/11   06/30/10
 
INTEREST INCOME
Loans $ 11,132 $ 10,816 $ 10,298 $ 21,948 $ 20,404
Federal funds sold 56 82 63 138 122
Investment securities available for sale 1,104 802 592 1,906 1,139
Other   9     10     37     19     82  
Total interest income   12,301     11,710     10,990     24,011     21,747  
 
INTEREST EXPENSE
Deposits 262 306 520 568 1,161
Other   273     346     315     619     556  
Total interest expense   535     652     835     1,187     1,717  
 
Net interest income 11,766 11,058 10,155 22,824 20,030
Provision for credit losses   -     750     1,150     750     2,400  

Net interest income after provision for credit losses
  11,766     10,308     9,005     22,074     17,630  
 
NON-INTEREST INCOME
Service charges on deposit accounts 720 675 578 1,395 1,123
International Fee Income 530 546 478 1,076 906
Other non-interest income   261     1,325     647     1,586     1,300  
Total non-interest income   1,511     2,546     1,703     4,057     3,329  
 
OPERATING EXPENSES
Salaries and benefits 5,927 5,378 5,013 11,305 10,297
Premises and fixed assets 924 972 1,017 1,896 2,069
Other   3,354     3,887     3,629     7,241     6,946  
Total operating expenses   10,205     10,237     9,659     20,442     19,312  
 
Income before income taxes 3,072 2,617 1,049 5,689 1,647
Income tax expense   1,286     1,047     294     2,333     527  
NET INCOME $ 1,786   $ 1,570   $ 755   $ 3,356   $ 1,120  
 
Preferred dividends   -     200     298     200     1,358  

Net income (loss) available to common shareholders
$ 1,786   $ 1,370   $ 457   $ 3,156   $ (238 )
 
EARNINGS (LOSS) PER SHARE
Basic earnings (loss) per share $ 0.13   $ 0.10   $ 0.04   $ 0.22   $ (0.03 )
Diluted earnings (loss) per share $ 0.12   $ 0.09   $ 0.04   $ 0.22   $ (0.03 )
Average common shares outstanding   14,263,583     14,089,577     10,300,576     14,177,061     8,449,036  

Average common and equivalent shares outstanding
  14,652,766     14,466,839     10,790,051     14,563,274     8,449,036  
 
PERFORMANCE MEASURES
Return on average assets 0.73 % 0.62 % 0.35 % 0.67 % 0.26 %
Return on average equity 5.82 % 4.69 % 2.72 % 5.23 % 2.04 %
Efficiency ratio 76.86 % 75.25 % 81.46 % 76.05 % 82.67 %
 
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
 
  06/30/11   03/31/11   12/31/10   09/30/10   06/30/10
 
ASSETS
Cash and due from banks $ 28,299 $ 15,001 $ 8,676 $ 17,599 $ 20,688
Federal funds sold 110,330 108,520 114,240 125,155 131,955
Interest-bearing deposits 335 1,560 2,539 3,028 5,658
Investment securities available for sale 207,275 204,177 217,303 151,119 125,591
Loans:
Commercial 265,621 256,865 269,034 245,894 238,288
SBA 69,396 65,537 67,538 60,005 58,198
Real estate construction 38,615 35,291 40,705 39,416 37,322
Land and land development 5,808 8,235 9,072 9,558 10,202
Real estate other 137,199 139,499 138,633 141,245 144,433
Factoring and asset-based lending 132,182 122,052 122,542 105,172 102,774
Other   4,415     4,193     4,023     3,917     4,456  
Loans, gross 653,236 631,672 651,547 605,207 595,673
Unearned fee income (1,573 ) (1,422 ) (1,444 ) (1,509 ) (1,581 )
Allowance for credit losses   (16,872 )   (15,171 )   (15,546 )   (15,248 )   (15,137 )
Loans, net 634,791 615,079 634,557 588,450 578,955
Premises and equipment, net 2,223 2,396 2,580 2,833 3,018
Accrued interest receivable 3,313 3,592 3,439 3,185 3,098
Other assets   47,399     48,112     46,397     48,606     46,404  
Total assets $ 1,033,965   $ 998,437   $ 1,029,731   $ 939,975   $ 915,367  
 
LIABILITIES
Deposits:
Demand noninterest-bearing $ 515,622 $ 475,287 $ 443,806 $ 432,714 $ 361,980
Demand interest-bearing 6,505 5,096 5,275 5,164 5,410
Money market and savings 324,079 305,113 355,772 311,107 343,886
Time   33,467     42,215     43,093     46,460     63,108  
Total deposits   879,673     827,711     847,946     795,445     774,384  
 
Junior subordinated debt securities 17,527 17,527 17,527 17,527 17,527
Other borrowings - - 7,672 - -
Accrued interest payable 41 36 48 60 134
Other liabilities   13,092     30,797     14,235     13,978     11,541  
Total liabilities   910,333     876,071     887,428     827,010     803,586  
 
SHAREHOLDERS' EQUITY
Preferred stock - - 23,864 23,864 23,864
Common stock 105,239 106,112 104,843 74,322 73,853
Retained earnings 18,939 17,154 15,784 15,933 14,910
Accumulated other comprehensive (loss)   (546 )   (900 )   (2,188 )   (1,154 )   (846 )
Total shareholders' equity   123,632     122,366     142,303     112,965     111,781  
Total liabilities and shareholders' equity $ 1,033,965   $ 998,437   $ 1,029,731   $ 939,975   $ 915,367  
 
CAPITAL ADEQUACY
Tier I leverage ratio 14.30 % 13.68 % 16.67 % 14.44 % 14.94 %
Tier I risk-based capital ratio 16.64 % 16.98 % 19.61 % 17.18 % 17.41 %
Total risk-based capital ratio 17.89 % 18.23 % 20.87 % 18.45 % 18.68 %
Total equity/ total assets 11.96 % 12.26 % 13.82 % 12.02 % 12.21 %
Book value per common share $ 8.19 $ 8.12 $ 8.16 $ 8.13 $ 8.04
 
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
 
  Three months ended June 30,
2011   2010
       
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 628,159 7.11 % $ 11,132 $ 578,776 7.14 % $ 10,298
Federal funds sold 95,968 0.23 % 56 108,423 0.23 % 63
Investment securities 204,641 2.16 % 1,104 121,009 1.96 % 591
Other   1,479 2.44 %   9   7,120 2.14 %   38
Total interest earning assets   930,247 5.30 %   12,301   815,328 5.41 %   10,990
 
Noninterest-earning assets:
Cash and due from banks 20,919 18,372
All other assets (3)   35,759   33,567
TOTAL $ 986,925 $ 867,267
 
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand $ 6,841 0.06 % $ 1 $ 5,996 0.13 % $ 2
Money market and savings 300,558 0.27 % 205 306,543 0.41 % 316
Time 35,819 0.63 % 56 62,826 1.30 % 203
Other   21,483 5.10 %   273   17,527 7.19 %   314
Total interest-bearing liabilities   364,701 0.59 %   535   392,892 0.85 %   835
 
Noninterest-bearing liabilities:
Demand deposits 485,281 350,280

Accrued expenses and other liabilities
13,815 12,823
Shareholders' equity   123,128   111,272
TOTAL $ 986,925 $ 867,267
       
Net interest income and margin 5.07 % $ 11,766 5.00 % $ 10,155
 

(1) Loan fee amortization of $1.6 million and $874,000, 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 $16.8 million and $15.8 million, respectively.
 
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
 
  Six months ended June 30,
2011   2010
       
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 627,740 7.05 % $ 21,948 $ 574,934 7.16 % $ 20,404
Federal funds sold 119,286 0.23 % 138 105,193 0.23 % 122
Investment securities 197,971 1.94 % 1,906 116,149 1.98 % 1,139
Other   1,672 2.29 %   19   8,083 2.05 %   82
Total interest earning assets   946,669 5.11 %   24,011   804,359 5.45 %   21,747
 
Noninterest-earning assets:
Cash and due from banks 21,453 17,438
All other assets (3)   37,632   33,786
TOTAL $ 1,005,754 $ 855,583
 
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand $ 6,694 0.06 % $ 2 $ 6,027 0.13 % $ 4
Money market and savings 322,797 0.27 % 432 290,789 0.47 % 674
Time 39,692 0.68 % 134 69,046 1.41 % 483
Other   22,951 5.44 %   619   17,637 6.36 %   556
Total interest-bearing liabilities   392,134 0.61 %   1,187   383,499 0.90 %   1,717
 
Noninterest-bearing liabilities:
Demand deposits 470,369 348,334

Accrued expenses and other liabilities
13,918 13,233
Shareholders' equity   129,333   110,517
TOTAL $ 1,005,754 $ 855,583
       
Net interest income and margin 4.86 % $ 22,824 5.02 % $ 20,030
 

(1) Loan fee amortization of $2.8 million and $1.8 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 $16.2 million and $16.0 million, respectively.
 
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
(Dollars in Thousands)
 
  06/30/11   03/31/11   12/31/10   09/30/10   06/30/10
 
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period $ 15,171 $ 15,546 $ 15,248 $ 15,137 $ 16,155
Provision for credit losses, quarterly - 750 1,950 350 1,150
Charge-offs, quarterly (380 ) (1,757 ) (2,340 ) (1,268 ) (2,520 )
Recoveries, quarterly   2,081     632     688     1,029     352  
Balance, end of period $ 16,872   $ 15,171   $ 15,546   $ 15,248   $ 15,137  
 
 
NONPERFORMING ASSETS
Loans accounted for on a non-accrual basis $ 12,627 $ 11,821 $ 16,696 $ 19,641 $ 21,886

Loans with principal or interest contractually past due 90 days or more and still accruing interest
  -     2,442     -     -     -  
Nonperforming loans 12,627 14,263 16,696 19,641 21,886
Other real estate owned   9,661     9,666     6,645     8,625     7,833  
Nonperforming assets $ 22,288   $ 23,929   $ 23,341   $ 28,266   $ 29,719  

 

Loans restructured and in compliance with modified terms
  4,926     4,456     4,494     4,474     4,380  
Nonperforming assets and restructured loans $ 27,214   $ 28,385   $ 27,835   $ 32,740   $ 34,099  
 
 
Nonperforming Loans by Asset Type:
Commercial $ 1,905 $ 1,365 $ 300 $ 109 $ 665
Land 638 2,595 3,176 4,025 4,220
Construction - - 5,342 6,480 6,888
Other real estate 7,370 10,303 7,878 9,027 9,913
Other   2,714     -     -     -     200  
Nonperforming loans $ 12,627   $ 14,263   $ 16,696   $ 19,641   $ 21,886  
 
 
ASSET QUALITY
Allowance for credit losses / gross loans 2.58 % 2.40 % 2.39 % 2.52 % 2.54 %
Allowance for credit losses / nonperforming loans 133.62 % 106.37 % 93.11 % 77.63 % 69.16 %
Nonperforming assets / total assets 2.16 % 2.40 % 2.27 % 3.01 % 3.25 %
Nonperforming loans / gross loans 1.93 % 2.26 % 2.56 % 3.25 % 3.67 %
Net quarterly charge-offs / gross loans -0.26 % 0.18 % 0.25 % 0.04 % 0.36 %
 

Copyright Business Wire 2010

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