Bridge Capital Holdings Reports Financial Results For The Third Quarter And Nine Months Ended September 30, 2012

Bridge Capital Holdings (NASDAQ: BBNK), whose subsidiary is Bridge Bank, National Association, announced today its financial results for the third quarter and nine months ended September 30, 2012.

The Company reported net income of $4.4 million for the three months ended September 30, 2012, representing an increase of $1.1 million, or 32%, from $3.3 million in the quarter ended June 30, 2012 and an increase of $2.2 million, or 98%, compared to net income of $2.2 million for the same period one year ago.

For the quarter ended September 30, 2012, the Company reported earnings per diluted share of $0.29, which compares with $0.22 for the quarter ended June 30, 2012. This also compares with earnings per diluted share of $0.15 for the quarter ended September 30, 2011.

The Company reported net income of $10.4 million for the nine months ended September 30, 2012 representing an increase of $5.0 million, compared to net income of $5.4 million for the same period one year ago. For the nine months ended September 30, 2012, the Company reported earnings per diluted share of $0.70 compared to $0.37 for the nine months ended September 30, 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 September 30, 2012, the Company’s return on average assets and return on average equity were 1.43% and 12.38%, respectively, and compared to 1.14% and 9.81%, respectively, for the quarter ended June 30, 2012 and 0.81% and 6.94%, respectively, for the same period in 2011. For the nine months ended September 30, 2012, the Company’s return on average assets and return on average equity were 1.18% and 10.18%, respectively, and compared to 0.72% and 5.80%, respectively, for the same period in 2011.

“We continue to see positive trends throughout the Company, which helped drive record levels of quarterly revenue and earnings in the third quarter of 2012, as well as substantial improvement in our return on assets, return on equity and operating efficiency,” said Daniel P. Myers, president and chief executive officer of Bridge Bank, N.A. and Bridge Capital Holdings. “Our strong results continue to be driven by the steady expansion of our customer base, as we continue to generate a higher level of awareness in our markets for the strong value proposition that we provide to emerging growth and middle-market companies. Our successful business development efforts helped us surpass $1 billion in deposits during the third quarter and drive solid growth in our loan portfolio. Most importantly, we have been able to grow our franchise while remaining disciplined in our risk management and underwriting, which is reflected in our superior credit quality and strong net interest margin.”

Third Quarter Highlights

Third quarter results, compared to second quarter 2012 (unless otherwise noted), reflected strong performance across all areas of the Company’s business and included the following:
  • Net income of $4.4 million, or $0.29 earnings per diluted share, represented the highest level of quarterly profitability since the inception of the Company.
  • Total revenue of $19.2 million for the third quarter of 2012 represented an increase of $1.7 million, or 10%, from the prior quarter. Net interest income of $15.4 million for the third quarter of 2012 compared to $14.5 million for the second quarter of 2012. Non-interest income of $3.8 million for the third quarter of 2012 compared to $3.0 million for the second quarter of 2012.
  • Net interest margin remained steady at 5.26% for the quarter ended September 30, 2012 compared to 5.28% for the second quarter of 2012.
  • Loan growth continued to be strong and broad-based with average gross loans reaching $837.6 million for the quarter ended September 30, 2012, representing an increase of $19.7 million, or 2%, compared to average gross loans of $817.8 million for the quarter ended June 30, 2012. Period-end loan balances increased $30.6 million, or 4%, to $881.0 million, compared to $850.4 million at June 30, 2012.
  • Credit quality overall remained solid with the allowance for credit losses representing 2.25% of total gross loans and 224.67% of nonperforming loans at September 30, 2012, compared to 2.30% of total gross loans and 212.15% of nonperforming loans at June 30, 2012. The provision for credit losses of $200,000 for the third quarter of 2012 primarily related to the growth in period-end loan balances. Net recoveries were $50,000 for the quarter ended September 30, 2012, and compared to net charge-offs of $263,000 for the quarter ended June 30, 2012.
  • Nonperforming assets declined by $3.3 million to $9.0 million, or 0.72% of total assets, primarily through the successful resolution of “other real estate owned” properties and legacy problem loans that were originated prior to the economic downturn. The resolution of nonperforming assets contributed $1.0 million to non-interest income for the third quarter of 2012.
  • Total assets grew to $1.25 billion at September 30, 2012, with loans comprising 72% of the average earning asset mix, consistent with the prior quarter. Total deposits of $1.07 billion at September 30, 2012 represented the highest level of deposit balances since the inception of the Company, and compared to $985.6 million at June 30, 2012.
  • Capital ratios remained strong and continued to support the Company’s growth. Total Risk-Based Capital Ratio was 15.70%, Tier I Capital Ratio was 14.44%, and Tier I Leverage Ratio was 13.01% at September 30, 2012.

Net Interest Income and Margin

Net interest income of $15.4 million for the quarter ended September 30, 2012 represented an increase of $856,000, or 6%, compared to $14.5 million for the quarter ended June 30, 2012 and an increase of $2.7 million, or 22%, compared to $12.7 million for the quarter ended September 30, 2011. The increase in net interest income from the second quarter of 2012 and the same period in prior year was primarily attributable to an increase in average earning assets as a result of loan growth, combined with a decrease in average nonperforming loans. Average earning assets of $1.16 billion for the quarter ended September 30, 2012 increased $56.4 million, or 5%, compared to $1.11 billion for the quarter ended June 30, 2012 and increased $149.3 million, or 15%, compared to $1.01 billion for the same quarter in 2011.

For the nine months ended September 30, 2012, net interest income of $44.8 million represented an increase of $9.3 million, or 26%, from $35.5 million for the nine months ended September 30, 2011 and was primarily attributed to an increase in average earning assets combined with a decrease in average nonperforming loans. Average earning assets of $1.12 billion for the nine months ended September 30, 2012 increased $153.8 million, or 16%, compared to $969.4 million for the same period one year ago.

The Company’s net interest margin for the quarter ended September 30, 2012 was 5.26%, compared to 5.28% for the quarter ended June 30, 2012, and 4.95% for the same period one year earlier. The increase in net interest margin compared to the same quarter in 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 Company’s loan-to-deposit ratio, a measure of leverage, averaged 80.4% during the three months ended September 30, 2012, which represented a decrease compared to an average of 85.0% for the quarter ended June 30, 2012 and an increase from 73.3% for the same period of 2011. The positive impact on the net interest margin from increased loan fees for the three months ended September 30, 2012 compared to the second quarter of 2012 was 30 basis points and the positive impact of increased loan fees from the same period one year ago was 34 basis points.

The Company’s net interest margin for the nine months ended September 30, 2012 was 5.33%, compared to 4.89% 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 nine months ended September 30, 2012 compared to the same period one year ago was 20 basis points. The negative impact of reversed or foregone interest due to nonperforming assets was 6 basis points in the nine months ended September 30, 2012 compared to 16 basis points for the same period one year earlier.

Non-Interest Income

The Company’s non-interest income for the quarters ended September 30, 2012, June 30, 2012, and September 30, 2011 was $3.8 million, $3.0 million, and $3.3 million, respectively.

Service charges on deposit accounts increased compared to the second quarter of 2012 and the same period one year ago as a result of the overall growth of the Company. Service charges on deposit accounts were $888,000, $834,000, and $707,000 for the quarters ended September 30, 2012, June 30, 2012, and September 30, 2011, respectively. During the third quarter of 2012, the Company recognized a gain of $1.0 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. The Company did not recognize any real estate related gains during the second quarter of 2012 or the third quarter of 2011. The Company received warrant related income of $576,000 for the third quarter of 2012 compared to $675,000 for the second quarter of 2012. The Company did not recognize warrant income during the third quarter of 2011. During the third quarter of 2012, the Company recognized a gain from the sale of SBA loans of $227,000 compared to $358,000 for second quarter of 2012 and $815,000 for the third quarter of 2011. The Company did not sell any securities during the third quarter of 2012. During the second quarter of 2012 and the third quarter of 2011, the Company recognized a gain from the sale of securities of $4,000 and $595,000, respectively.

Non-interest income for the nine months ending September 30, 2012 and 2011 was $9.3 million and $7.3 million, respectively. Non-interest income for the nine months ending September 30, 2012 included $1.3 million in warrant income compared to $146,000 for the same period in the prior year. During the nine months ending September 30, 2012 the Company recognized a gain on the sale of SBA loans of $861,000 compared to $1.4 million for the same period in the prior year. Non-interest income for the nine months ending September 30, 2012 also included international fee income of $2.0 million and depositor service charges of $2.5 million compared to $1.8 million and $2.1 million, respectively, for the same period one year earlier.

Net interest income and non-interest income comprised total revenue of $19.2 million for the three months ended September 30, 2012, compared to $17.5 million for the three months ended June 30, 2012 and $15.9 million for the same period one year earlier. For the nine months ended September 30, 2012, total revenue of $54.1 million represented an increase of $11.3 million, or 26%, from $42.8 million for the nine months ended September 30, 2011.

Non-Interest Expense

Non-interest expense was $11.6 million for the quarter ended September 30, 2012, compared to $11.4 million and $10.9 million for the quarters ended June 30, 2012 and September 30, 2011, respectively. Non-interest expense for the nine months ended September 30, 2012 was $34.0 million compared to $31.4 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 September 30, 2012 was $7.6 million, compared to $7.4 million and $6.2 million for the quarters ended June 30, 2012 and September 30, 2011, respectively. Salary and benefits expense for the nine months ended September 30, 2012 was $22.0 million compared to $17.5 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 and also included additional accruals for incentive compensation due to strong performance related to business development. During the third quarter of 2012, the Company also recorded additional compensation of approximately $283,000 related to the collection of the warrant success fee discussed above. As of September 30, 2012, the Company employed 203 full-time equivalents (FTE) compared to 200 FTE at June 30, 2012 and 184 FTE at September 30, 2011.

“Other real estate owned” and loan-related charges were $197,000 for the quarter ended September 30, 2012, compared to $233,000 and $224,000 for the quarters ended June 30, 2012 and September 30, 2011, respectively. “Other real estate owned” and loan-related charges were $661,000 for the nine months ended September 30, 2012 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 $230,000 for the quarter ended September 30, 2012, compared to $176,000 for the quarter ended June 30, 2012 and $224,000 for the same period one year ago. Regulatory assessments for the nine months ended September 30, 2012 were $655,000 compared to $1.6 million for the same period one year ago.

The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 60.39%, 64.85%, and 68.66% for the quarters ended September 30, 2012, June 30, 2012, and September 30, 2011, respectively. The efficiency ratio was 62.90% for the nine months ended September 30, 2012 compared to 73.30% for the same period one year earlier.

Balance Sheet

Bridge Capital Holdings reported total assets at September 30, 2012 of $1.25 billion, compared to $1.17 billion at June 30, 2012 and $1.09 billion on the same date one year ago. The increase in total assets of $153.6 million, or 14%, from September 30, 2011 was driven by an increase in core deposit production which was primarily used to fund loan growth.

The Company reported total gross loans outstanding at September 30, 2012 of $881.0 million, which represented an increase of $30.6 million, or 4%, over $850.4 million at June 30, 2012 and an increase of $161.2 million, or 22%, over $719.8 million at September 30, 2011. The increase in total gross loans from June 30, 2012 and September 30, 2011 was broad-based throughout the portfolio, with the most significant growth reflected in the commercial lending and factoring and asset-based lending portfolios.

The Company’s total deposits were $1.07 billion as of September 30, 2012, which represented an increase of $85.7 million, or 9%, compared to $985.6 million at June 30, 2012 and an increase of $135.2 million, or 14%, compared to $936.0 million at September 30, 2011. The increase in deposits from June 30, 2012 and September 30, 2011 was primarily attributable to continued growth in noninterest-bearing demand deposits.

Demand deposits represented 66.6% of total deposits at September 30, 2012, compared to 66.1% at June 30, 2012 and 58.1% for the same period one year ago. Core deposits represented 95.7% of total deposits at September 30, 2012, compared to 95.9% at June 30, 2012 and 96.5% at September 30, 2011.

Credit Quality

Nonperforming assets decreased to $9.0 million, or 0.72% of total assets, as of September 30, 2012, compared to $12.3 million, or 1.06% of total assets, as of June 30, 2012 and $21.4 million, or 1.96% of total assets, at September 30, 2011. The decrease in nonperforming assets in the third quarter of 2012 was primarily due to successful sales efforts on “other real estate owned” (OREO). The nonperforming assets at September 30, 2012 consisted of loans on nonaccrual or 90 days or more past due totaling $8.8 million, and OREO valued at $144,000.

Nonperforming loans at September 30, 2012 were comprised of loans with legal contractual balances totaling approximately $12.9 million reduced by $1.2 million received in non-accrual interest and impairment charges of $2.9 million which have been charged against the allowance for credit losses.

Nonperforming loans decreased to $8.8 million, or 1.00% of total gross loans, as of September 30, 2012, compared to $9.2 million, or 1.08% of total gross loans, as of June 30, 2012 and $12.1 million, or 1.69% of total gross loans, at September 30, 2011.

The carrying value of OREO was $144,000 as of September 30, 2012, compared to $3.1 million as of June 30, 2012 and $9.3 million as of September 30, 2011.

The Company charged-off $17,000 in loan balances during the three months ended September 30, 2012, compared to $553,000 charged-off during the three months ended June 30, 2012 and $280,000 charged-off during the three months ended September 30, 2011. During the nine months ended September 30, 2012, the Company charged-off balances totaling $1.6 million, which compared to $2.4 million charged-off during the same period of 2011. Approximately $750,000 of the charge-offs in 2012 were related to one loan in the factoring portfolio.

During the three months ended September 30, 2012, the Company recognized $67,000 in loan recoveries compared to $290,000 and $450,000, respectively, in loan recoveries for the three months ended June 30, 2012 and September 30, 2011. During the nine months ended September 30, 2012, the Company recognized $381,000 in loan recoveries which compared to $3.2 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 $19.8 million, or 2.25% of total loans, at September 30, 2012, compared to $19.5 million, or 2.30% of total loans, at June 30, 2012 and $18.3 million, or 2.54% of total loans, at September 30, 2011. The provision for credit losses for the third quarter of 2012 was $200,000 compared to $500,000 for the second quarter of 2012 and $1.3 million for the same period one year ago. The provision for credit losses for the nine months ending September 30, 2012 and September 30, 2011 was $2.5 million and $2.0 million, respectively. The provision for credit losses for the third quarter of 2012 was primarily due to the growth of the loan portfolio.

“We are very pleased with the low level of problem assets and generally improving trends in asset quality. During the quarter we resolved a significant portion of our few remaining legacy problem assets,” said Thomas A. Sa, executive vice president and chief financial officer of Bridge Capital Holdings. “The successful resolution of these assets contributed $1.0 million to non-interest income, which reflects the conservative marks we take on problem assets and the effectiveness of our resolution strategies.”

Capital Adequacy

The Company’s capital ratios at September 30, 2012 substantially exceed the regulatory definition for being “well capitalized” with a Total Risk-Based Capital Ratio of 15.70%, a Tier I Risk-Based Capital Ratio of 14.44%, and a Tier I Leverage Ratio of 13.01%. Additionally, the Company’s tangible common equity ratio at September 30, 2012 was 11.39% and book value per common share was $9.02, representing an increase of $0.03, or 0.4%, from $8.99 at June 30, 2012 and an increase of $0.69, or 8%, from $8.33 at September 30, 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 800.762.8779 from the United States, or 480.629.9866 from outside the United States and referencing conference ID 4570361. 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 November 6, 2012, by dialing 800.406.7325 from the United States, or 303.590.3030 from outside the United States, and entering conference ID 4570361. 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.

-Financial Tables Follow-
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
         
 
 
 
Three months ended Nine months ended
  09/30/12     06/30/12     09/30/11     09/30/12     09/30/11  
 
INTEREST INCOME
Loans $ 14,467 $ 13,365 $ 11,615 $ 41,400 $ 33,563
Federal funds sold 59 31 64 137 202
Investment securities 1,444 1,694 1,501 4,847 3,407
Other   -     -     -     1     19  
Total interest income   15,970     15,090     13,180     46,385     37,191  
 
INTEREST EXPENSE
Deposits 300 232 259 765 827
Other   273     317     270     836     889  
Total interest expense   573     549     529     1,601     1,716  
 
Net interest income 15,397 14,541 12,651 44,784 35,475
Provision for credit losses   200     500     1,250     2,450     2,000  

Net interest income after provision for credit losses
  15,197     14,041     11,401     42,334     33,475  
 
NON-INTEREST INCOME
Service charges on deposit accounts 888 834 707 2,527 2,102
International Fee Income 627 659 704 2,003 1,780
Other non-interest income   2,270     1,479     1,846     4,770     3,432  
Total non-interest income   3,785     2,972     3,257     9,300     7,314  
 
OPERATING EXPENSES
Salaries and benefits 7,579 7,390 6,207 22,009 17,512
Premises and fixed assets 1,043 987 945 2,965 2,841
Other   2,962     2,981     3,771     9,046     11,012  
Total operating expenses   11,584     11,358     10,923     34,020     31,365  
 
Income before income taxes 7,398 5,655 3,735 17,614 9,424
Income tax expense 3,034 2,346 1,532 7,234 3,865
         
NET INCOME $ 4,364   $ 3,309   $ 2,203   $ 10,380   $ 5,559  
 
Preferred dividends   -     -     -     -     200  

Net income available to common shareholders
$ 4,364   $ 3,309   $ 2,203   $ 10,380   $ 5,359  
 
EARNINGS PER SHARE
Basic earnings per share $ 0.30   $ 0.23   $ 0.15   $ 0.72   $ 0.38  
Diluted earnings per share $ 0.29   $ 0.22   $ 0.15   $ 0.70   $ 0.37  
Average common shares outstanding   14,391,432     14,383,214     14,297,806     14,379,505     14,217,752  

Average common and equivalent shares outstanding
  14,991,337     14,935,752     14,699,419     14,905,624     14,610,302  
 
PERFORMANCE MEASURES
Return on average assets 1.43 % 1.14 % 0.81 % 1.18 % 0.72 %
Return on average equity 12.38 % 9.81 % 6.94 % 10.18 % 5.80 %
Efficiency ratio 60.39 % 64.85 % 68.66 % 62.90 % 73.30 %
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
         
 
 
 
  09/30/12     06/30/12     03/31/12     12/31/11     09/30/11  
 
ASSETS
Cash and due from banks $ 27,509 $ 16,877 $ 21,663 $ 17,135 $ 18,836
Federal funds sold 82,245 39,420 48,700 106,690 85,075
Interest-bearing deposits 335 335 335 335 335
Investment securities 227,336 224,967 238,556 240,268 232,758
Loans:
Commercial 404,657 382,471 362,556 330,348 295,916
SBA 91,805 83,718 82,459 73,336 76,430
Real estate construction 39,011 46,341 51,986 47,213 40,897
Land and land development 5,321 5,327 6,109 6,772 6,046
Real estate other 153,003 153,919 154,697 157,446 141,539
Factoring and asset-based lending 182,213 173,996 154,895 142,482 153,230
Other   4,949     4,614     4,284     4,431     5,727  
Loans, gross 880,959 850,386 816,986 762,028 719,785
Unearned fee income (3,136 ) (2,605 ) (2,622 ) (2,792 ) (2,448 )
Allowance for credit losses   (19,791 )   (19,541 )   (19,304 )   (18,540 )   (18,292 )
Loans, net 858,032 828,240 795,060 740,696 699,045
Premises and equipment, net 2,057 2,205 2,302 2,337 2,184
Accrued interest receivable 3,439 3,452 3,534 3,291 3,317
Other assets   46,601     49,713     50,672     50,281     52,433  
Total assets $ 1,247,554   $ 1,165,209   $ 1,160,822   $ 1,161,033   $ 1,093,983  
 
LIABILITIES
Deposits:
Demand noninterest-bearing $ 708,513 $ 645,884 $ 640,235 $ 660,036 $ 538,987
Demand interest-bearing 5,089 5,264 4,232 4,272 4,325
Money market and savings 311,671 294,389 320,489 298,145 359,634
Time   45,934     40,017     31,647     36,222     33,046  
Total deposits   1,071,207     985,554     996,603     998,675     935,992  
 
Junior subordinated debt securities 17,527 17,527 17,527 17,527 17,527
Other borrowings - 10,000 - - -
Accrued interest payable 10 11 10 9 27
Other liabilities   16,759     15,007     13,560     15,309     14,392  
Total liabilities   1,105,503     1,028,099     1,027,700     1,031,520     967,938  
 
SHAREHOLDERS' EQUITY
Common stock 108,117 107,661 107,184 106,673 105,918
Retained earnings 33,811 29,447 26,138 23,431 21,143
Accumulated other comprehensive income (loss)   123     2     (200 )   (591 )   (1,016 )
Total shareholders' equity   142,051     137,110     133,122     129,513     126,045  
Total liabilities and shareholders' equity $ 1,247,554   $ 1,165,209   $ 1,160,822   $ 1,161,033   $ 1,093,983  
 
CAPITAL ADEQUACY
Tier I leverage ratio 13.01 % 13.16 % 12.86 % 13.36 % 13.39 %
Tier I risk-based capital ratio 14.44 % 14.54 % 14.38 % 14.80 % 15.29 %
Total risk-based capital ratio 15.70 % 15.80 % 15.63 % 16.06 % 16.55 %
Total equity/ total assets 11.39 % 11.77 % 11.47 % 11.15 % 11.52 %
Book value per common share $ 9.02 $ 8.99 $ 8.72 $ 8.55 $ 8.33
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
           
 
 
 
Three months ended September 30,
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) $ 837,574 6.87 % $ 14,467 $ 673,464 6.84 % $ 11,615
Federal funds sold 99,726 0.24 % 59 107,063 0.24 % 64
Investment securities 225,775 2.54 % 1,444 233,202 2.55 % 1,501
Other   335 0.00 %   -   335 0.00 %   -
Total interest earning assets   1,163,410 5.46 %   15,970   1,014,064 5.16 %   13,180
 
Noninterest-earning assets:
Cash and due from banks 23,232 25,066
All other assets (3)   30,432   36,189
TOTAL $ 1,217,074 $ 1,075,319
 

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand $ 5,475 0.00 % $ - $ 7,115 0.06 % $ 1
Money market and savings 295,646 0.32 % 237 324,282 0.27 % 220
Time 45,370 0.55 % 63 32,948 0.46 % 38
Other   19,592 5.54 %   273   17,527 6.11 %   270
Total interest-bearing liabilities   366,083 0.62 %   573   381,872 0.55 %   529
 
Noninterest-bearing liabilities:
Demand deposits 694,903 554,001

Accrued expenses and other liabilities
15,833 13,596
Shareholders' equity   140,255   125,850
TOTAL $ 1,217,074 $ 1,075,319
       
Net interest income and margin 5.26 % $ 15,397 4.95 % $ 12,651
 

(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 $19.6 million and $16.9 million, respectively.
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
           
 
 
 
Nine months ended September 30,
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) $ 811,214 6.82 % $ 41,400 $ 643,149 6.98 % $ 33,563
Federal funds sold 78,000 0.23 % 137 115,167 0.23 % 202
Investment securities 233,621 2.77 % 4,847 209,843 2.17 % 3,407
Other   329 0.41 %   1   1,222 2.08 %   19
Total interest earning assets   1,123,164 5.52 %   46,385   969,381 5.13 %   37,191
 
Noninterest-earning assets:
Cash and due from banks 22,295 22,671
All other assets (3)   32,996   37,145
TOTAL $ 1,178,455 $ 1,029,197
 

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand $ 5,315 0.03 % $ 1 $ 6,836 0.06 % $ 3
Money market and savings 296,456 0.29 % 643 323,298 0.27 % 652
Time 36,539 0.44 % 121 37,419 0.61 % 172
Other   32,929 3.39 %   836   21,123 5.63 %   889
Total interest-bearing liabilities   371,239 0.58 %   1,601   388,676 0.59 %   1,716
 
Noninterest-bearing liabilities:
Demand deposits 656,090 498,553

Accrued expenses and other liabilities
14,922 13,809
Shareholders' equity   136,204   128,159
TOTAL $ 1,178,455 $ 1,029,197
       
Net interest income and margin 5.33 % $ 44,784 4.89 % $ 35,475
 

(1)

Loan fee amortization of $6.7 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 $19.1 million and $16.5 million, respectively.
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
(Dollars in Thousands)
         
 
 
 
  09/30/12     06/30/12     03/31/12     12/31/11     09/30/11  
 
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period $ 19,541 $ 19,304 $ 18,540 $ 18,292 $ 16,872
Provision for credit losses, quarterly 200 500 1,750 600 1,250
Charge-offs, quarterly (17 ) (553 ) (1,010 ) (488 ) (280 )
Recoveries, quarterly   67     290     24     136     450  
Balance, end of period $ 19,791   $ 19,541   $ 19,304   $ 18,540   $ 18,292  
 
 
 
 
NONPERFORMING ASSETS
Loans accounted for on a non-accrual basis $ 8,807 $ 9,211 $ 8,891 $ 11,840 $ 12,146

Loans with principal or interest contractually past due 90 days or more and still accruing interest
  2     -     -     -     -  

Nonperforming loans
8,809 9,211 8,891 11,840 12,146
Other real estate owned   144     3,125     4,150     4,126     9,255  
Nonperforming assets $ 8,953   $ 12,336   $ 13,041   $ 15,966   $ 21,401  
 

Loans restructured and in compliance with modified terms
  10,629     11,272     9,927     10,677     10,569  
Nonperforming assets and restructured loans $ 19,582   $ 23,608   $ 22,968   $ 26,643   $ 31,970  
 
 
Nonperforming Loans by Asset Type:
Commercial $ 816 $ 1,041 $ 257 $ 798 $ 1,235
SBA 2,099 2,162 1,011 2,110 714
Construction - - - - -
Land 13 31 498 540 583
Other real estate 5,879 5,977 6,067 6,184 7,006
Factoring and asset-based lending - - 1,058 2,208 2,608
Other   2     -     -     -     -  
Nonperforming loans $ 8,809   $ 9,211   $ 8,891   $ 11,840   $ 12,146  
 
 
 
 
ASSET QUALITY
Allowance for credit losses / gross loans 2.25 % 2.30 % 2.36 % 2.43 % 2.54 %
Allowance for credit losses / nonperforming loans 224.67 % 212.15 % 217.12 % 156.59 % 150.60 %
Nonperforming assets / total assets 0.72 % 1.06 % 1.12 % 1.38 % 1.96 %
Nonperforming loans / gross loans 1.00 % 1.08 % 1.09 % 1.55 % 1.69 %
Net quarterly charge-offs / gross loans -0.01 % 0.03 % 0.12 % 0.05 % -0.02 %

Copyright Business Wire 2010

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