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8-K - 8-K - Dime Community Bancshares, Inc. /NY/a12-16833_18k.htm

Exhibit 99.1

 

Press Release

 

FOR IMMEDIATE RELEASE

 

 

Contact:

Howard H. Nolan

Senior Executive Vice President

Chief Financial Officer

(631) 537-1001, ext. 7255

 

 

BRIDGE BANCORP, INC.

REPORTS SECOND QUARTER 2012 RESULTS

Growth in Loans, Core Deposits and Net Income

 

(Bridgehampton, NY – July 23, 2012)  Bridge Bancorp, Inc. (NASDAQ:BDGE), the parent company of The Bridgehampton National Bank, today announced net income and earnings per share for the second  quarter of 2012. Highlights of the Company’s financial results for the quarter include:

 

·                Net income of $3.1 million and $.36 per share for the quarter, a 24% increase in net income over 2011.

 

·                Returns on average assets and equity of .87% and 11.55%, respectively.

 

·                Net interest income of $11.8 million, an increase of $1.3 million over 2011, with a net interest margin of 3.63%.

 

·                Total assets of $1.40 billion at June 2012, 18% higher than June 2011.

 

·                Loan growth of $89 million or 15%, compared to June 2011.

 

·                Deposits of $1.23 billion, a 15% increase compared to the second quarter of 2011.

 

·                Continued solid asset quality metrics and increased reserve coverage.

 

·                Tier 1 Capital increased by $36 million or 41% from June 2011.

 

·                Quarterly dividend of $.23 per share declared.

 

“This quarter, we again delivered strong results, achieving impressive gains in deposits and loans and record net income. This is consistent with recent trends, as we continue building on our recognized success as a locally owned and operated community bank.  New relationships in new markets, coupled with successes in long standing markets, continue to generate deposit and lending opportunities. The ability for customers to work with local bankers, who make decisions locally, is the cornerstone of community banking. We have employed this model throughout our history, and are excited to bring it to newer markets,” commented Kevin M. O’Connor, President and CEO, Bridge Bancorp, Inc.

 



 

Net Earnings and Returns

Net income for the quarter ended June 2012 was $3.1 million or $.36 per share, compared to $2.5 million or $.38 per share, for the same period in 2011. The Company’s net income and earnings per share for the second quarter of 2011 included $0.3 million in acquisition costs, net of tax, associated with the Hamptons State Bank merger, which closed in May 2011.

 

For 2012, the increase in net income reflects growth in net interest income and securities gains, partially offset by higher credit costs and non-interest expenses. Earnings per share for the quarter ended June 2012, reflects the higher share count associated with the $24 million in capital raised in the fourth quarter of 2011.

 

The increase in interest income results from a higher level of earning assets funded with core deposits. Average earning assets increased by 24% or $257.7 million during the quarter, offsetting a decline in net interest margin to 3.63% from 4.00% in the second quarter of 2011. The margin decline is attributable to historically low market interest rates on repricing assets and liabilities offsetting strong deposit growth and higher loan demand. The provision for loan losses was $2.5 million for the quarter, $1.6 million higher than the comparable 2011 quarter. The increase in the provision for loan losses, despite the positive trends in the Bank’s asset quality metrics, reflects the consideration of macroeconomic factors.

 

“Although our asset quality measures remain strong, we believe it’s prudent to continue protecting against developing negative trends. This quarter we have seen a marked change in the perception of the domestic economy. Statistically, job creation has dramatically slowed and GDP forecasts have been reduced. Moreover, the budgetary problems that continue in Europe and other parts of the world have contributed to economic uncertainty. Global stock markets have declined, as have market interest rates.  These trends signaled the need for us to be more guarded in our assessment of the overall economy and, to ultimately increase our reserves,” commented Mr. O’Connor.

 

This quarter total non-interest income, excluding net securities gains, increased 23%, driven by title fee income and fees for customer services. During the June 2012 quarter, the Company repositioned its balance sheet, as the continuing low rate environment presented opportunities to exit certain positions in the bond portfolio. Securities aggregating $59 million were sold at a net gain of $1.7 million.  A portion of the sales proceeds were used to repay borrowings with the balance available to fund future loan growth. The $0.8 million increase in non-interest expense reflects investments in new branches, technology and staff.

 

“Our expanded customer base and geographic footprint fueled growth in all forms of fee income. Our Title business benefitted from increased lending opportunities and leveraging new relationships. Additionally, declines in interest rates across the yield curve provided an opportunity to reposition, at substantial gain, a portion of our balance sheet through the sale of selected securities. It is our intention to redeploy, over time, the proceeds into the loan portfolio,” noted Mr. O’Connor.

 

Balance Sheet and Asset Quality

Total assets of $1.40 billion at quarter end were $209.1 million or 17.5% higher than the June 2011 level of $1.19 billion, reflecting strong organic growth. Loans increased $88.7 million or 15%, while investment securities increased $90.0 million or 17%. Growth was funded principally by deposits, which ended the second quarter at $1.23 billion, including $367.8 million of demand deposits.

 

Asset quality measures substantially improved at June 2012 as non-performing assets (“NPA’s”) declined 53% to $3.3 million from $7.0 million at June 2011.  Currently NPA’s represent only 0.49% of total loans, compared to 1.19% at June 2011. Overall delinquency numbers also show strength with loans past due 30-89 days amounting to only $1.8 million, or less than 0.27% of total loans. At June 30,

 



 

2012, the allowance for loan losses was $13.6 million, a $4.1 million increase from June 30, 2011, and the allowance as a percentage of total loans was 2.0%, compared to 1.61% at June 30, 2011.

 

Stockholders’ equity grew $34.5 million to $112.6 million at June 2012 compared to $78.0 million at June 2011. The increase reflects the capital raised in the 2011 fourth quarter stock offerings, the Dividend Reinvestment Plan, as well as continued earnings growth, net of dividends.  Overall, Tier 1 Capital increased to $125.5 million, 41% higher than the June 2011 level.  The Company’s capital ratios exceed all regulatory minimums and the Bank continues to be classified as well capitalized.

 

Challenges & Opportunities

“Despite fiscal and monetary policy initiatives implemented to combat the recession, many signs still point toward economic weakness. The recovery has been tepid, with a continuing overhang of foreclosed homes and a marked lack of job creation. This prolonged period of deleveraging, after the debt fueled expansion of the mid 2000’s, has been difficult for many, both in economic and personal terms.  Locally, foreclosure rates in Nassau and Suffolk counties have increased sharply over the prior year and the unemployment rate on Long Island has risen compared to 2011.

 

“It is against this challenging backdrop that we manage our business. This quarter we more proactively managed our interest rate and credit risk, a decision we believe was appropriate and prudent given the market signals.

 

“In June 2012, we opened our 21st branch in Ronkonkoma, New York near MacArthur Airport, a regional transportation hub in our market place. We also received regulatory approval to open two additional branches in Suffolk County, NY: Hauppauge and Shelter Island.  We expect to open these locations during the first quarter of 2013.  Our competitive landscape constantly evolves and we must continually invest in our infrastructure and technology, and capitalize on current competitors’ dislocations and distractions.

 

“Finally, we are proud to be ranked 9th out of the top 200 publicly traded banks in the country with assets under $2 billion by American Banker,” concluded Mr. O’Connor.

 

About Bridge Bancorp, Inc.

Bridge Bancorp, Inc. is a bank holding company engaged in commercial banking and financial services through its wholly owned subsidiary, The Bridgehampton National Bank.  Established in 1910, the Bank, with assets of approximately $1.4 billion, and a primary market area of Suffolk County, Long Island, operates 21 retail branch locations. Through this branch network and its electronic delivery channels, it provides deposit and loan products and financial services to local businesses, consumers and municipalities. Title insurance services are offered through the Bank’s wholly owned subsidiary, Bridge Abstract. Bridge Investment Services offers financial planning and investment consultation.

 

The Bridgehampton National Bank continues a rich tradition of involvement in the community by supporting programs and initiatives that promote local business, the environment, education, healthcare, social services and the arts.

 

Please see the attached tables for selected financial information.

 

This report may contain statements relating to the future results of the Company (including certain projections and business trends) that are considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “PSLRA”).  Such forward-looking statements, in addition to historical information, involve risk and uncertainties, and are based on the beliefs, assumptions and expectations of management of the Company.  Words such as “expects,”  “believes,”  “should,” “plans,” “anticipates,” “will,” “potential,” “could,” “intend,” “may,” “outlook,” “predict,” “project,” “would,” “estimated,” “assumes,” “likely,” and variation of such similar expressions are intended to identify such forward-looking statements.  Examples of forward-looking statements include, but are not limited to, possible or assumed estimates with respect to the financial condition, expected or anticipated revenue, and results of operations and business of the

 



 

Company, including earnings growth; revenue growth in retail banking lending and other areas; origination volume in the  consumer, commercial and other lending businesses; current and future capital management programs; non-interest income levels, including fees from the title abstract subsidiary and banking services as well as product sales; tangible capital generation; market share; expense levels; and other business operations and strategies.  For this presentation, the Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.

 

Factors that could cause future results to vary from current management expectations include, but are not limited to, changing economic  conditions; legislative and regulatory changes, including increases in FDIC insurance rates; monetary and fiscal policies of the federal government; changes in tax policies; rates and regulations of federal, state and local tax authorities; changes in interest rates; deposit flows; the cost of funds; demands for loan products; demand for financial services; competition; changes in the quality and composition of the Bank’s loan and investment portfolios; changes in management’s business strategies; changes in accounting principles, policies or guidelines; changes in real estate values; a failure to realize or an unexpected delay in realizing, the growth opportunities and cost savings anticipated from the Hamptons State Bank merger; an unexpected increase in operating costs, customer losses and business disruptions  following the Hamptons State Bank merger; expanded regulatory requirements as a result of the Dodd-Frank Act, which could adversely affect operating results; and other factors discussed elsewhere in this report, and in other reports filed by the Company with the Securities and Exchange Commission.   The forward-looking statements are made as of the date of this report, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

 



 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Condition (unaudited)

(In thousands)

 

 

 

June 30,

 

December 31,

 

June 30,

 

 

 

2012

 

2011

 

2011

 

ASSETS

 

 

 

 

 

 

 

Cash and Due from Banks

 

$

 29,034

 

$

 25,921

 

$

 17,426

 

Interest Earning Deposits with Banks

 

35,183

 

53,625

 

12,491

 

Total Cash and Cash Equivalents

 

64,217

 

79,546

 

29,917

 

Securities Available for Sale, at Fair Value

 

449,493

 

441,439

 

385,910

 

Securities Held to Maturity

 

177,922

 

169,153

 

152,807

 

Total Securities

 

627,415

 

610,592

 

538,717

 

Securities, Restricted

 

2,828

 

1,660

 

1,485

 

Loans Held for Sale

 

 

2,300

 

 

Loans Held for Investment

 

678,532

 

612,143

 

589,788

 

Less: Allowance for Loan Losses

 

(13,556

)

(10,837

)

(9,494

)

Loans, net

 

664,976

 

601,306

 

580,294

 

Premises and Equipment, net

 

24,993

 

24,171

 

23,674

 

Goodwill and Other Intangible Assets

 

2,315

 

2,350

 

2,301

 

Accrued Interest Receivable and Other Assets

 

15,465

 

15,533

 

16,761

 

Total Assets

 

$

 1,402,209

 

$

 1,337,458

 

$

 1,193,149

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Demand Deposits

 

$

 367,768

 

$

 321,496

 

$

 308,056

 

Savings, NOW and Money Market Deposits

 

686,171

 

683,863

 

608,047

 

Certificates of Deposit of $100,000 or more

 

135,875

 

140,578

 

110,337

 

Other Time Deposits

 

40,710

 

42,248

 

45,904

 

Total Deposits

 

1,230,524

 

1,188,185

 

1,072,344

 

Federal Funds Purchased and Repurchase Agreements

 

12,317

 

16,897

 

16,197

 

Federal Home Loan Bank Advances

 

15,000

 

 

 

Junior Subordinated Debentures

 

16,002

 

16,002

 

16,002

 

Other Liabilities and Accrued Expenses

 

15,778

 

9,387

 

10,560

 

Total Liabilities

 

1,289,621

 

1,230,471

 

1,115,103

 

Total Stockholders’ Equity

 

112,588

 

106,987

 

78,046

 

Total Liabilities and Stockholders’ Equity

 

$

 1,402,209

 

$

 1,337,458

 

$

 1,193,149

 

Selected Financial Data:

 

 

 

 

 

 

 

Tangible Book Value Per Share

 

$

 12.83

 

$

 12.54

 

$

 11.25

 

Capital Ratios

 

 

 

 

 

 

 

Total Capital (to risk weighted assets)

 

15.8

%

16.2

%

13.1

%

Tier 1 Capital (to risk weighted assets)

 

14.5

%

15.0

%

11.8

%

Tier 1 Capital (to average assets)

 

8.9

%

9.3

%

7.8

%

Asset Quality

 

 

 

 

 

 

 

Non-performing loans

 

$

 3,339

 

$

 4,161

 

$

 7,028

 

Real estate owned

 

 

 

 

Non-performing assets

 

$

 3,339

 

$

 4,161

 

$

 7,028

 

Non-performing loans/Total loans

 

0.49

%

0.68

%

1.19

%

Allowance/Non-performing loans

 

405.99

%

260.44

%

135.09

%

Allowance/Total loans

 

2.00

%

1.77

%

1.61

%

Allowance/Originated loans

 

2.08

%

1.87

%

1.72

%

 



 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of  Income  (unaudited)

(In thousands, except per share amounts)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

$

 13,677

 

$

 12,333

 

$

 26,975

 

$

 23,929

 

Interest Expense

 

1,872

 

1,872

 

3,770

 

3,684

 

Net Interest Income

 

11,805

 

10,461

 

23,205

 

20,245

 

Provision for Loan Losses

 

2,500

 

900

 

3,325

 

1,600

 

Net Interest Income after Provision for Loan Losses

 

9,305

 

9,561

 

19,880

 

18,645

 

Other Non Interest Income

 

1,609

 

1,427

 

3,067

 

2,677

 

Title Fee Income

 

470

 

263

 

693

 

467

 

Net Securities Gains

 

1,721

 

135

 

1,993

 

135

 

Total Non Interest Income

 

3,800

 

1,825

 

5,753

 

3,279

 

Salaries and Benefits

 

5,262

 

4,399

 

10,373

 

8,574

 

Acquisition Costs

 

 

386

 

 

619

 

Amortization of Core Deposit Intangible

 

17

 

8

 

35

 

8

 

Cost of Extinguishment of Debt

 

 

 

158

 

 

Other Non Interest Expense

 

3,288

 

2,991

 

6,222

 

5,991

 

Total Non Interest Expense

 

8,567

 

7,784

 

16,788

 

15,192

 

Income Before Income Taxes

 

4,538

 

3,602

 

8,845

 

6,732

 

Provision for Income Taxes

 

1,475

 

1,126

 

2,843

 

2,096

 

Net Income

 

$

 3,063

 

$

 2,476

 

$

 6,002

 

$

 4,636

 

Basic Earnings Per Share

 

$

 0.36

 

$

 0.38

 

$

 0.71

 

$

 0.71

 

Diluted Earnings Per Share

 

$

 0.36

 

$

 0.38

 

$

 0.71

 

$

 0.71

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Data:

 

 

 

 

 

 

 

 

 

Return on Average Total Assets

 

0.87

%

0.86

%

0.87

%

0.85

%

Return on Average Stockholders’ Equity

 

11.55

%

14.51

%

11.53

%

14.09

%

Net Interest Margin

 

3.63

%

4.00

%

3.67

%

4.07

%

Efficiency Ratio

 

60.10

%

62.06

%

60.42

%

62.86

%

Operating Expense as a % of Average Assets

 

2.43

%

2.71

%

2.44

%

2.78

%

 



 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Supplemental Financial Information

Condensed Consolidated Average Balance

Sheets And Average Rate Data (unaudited)

(In thousands)

 

 

 

Three months ended June 30,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

(In thousands)

 

Balance

 

Interest

 

Cost

 

Balance

 

Interest

 

Cost

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net (including loan fee income)

 

$

649,420

 

$

9,764

 

6.05

%

$

544,094

 

$

8,564

 

6.31

%

Securities

 

668,417

 

4,238

 

2.55

 

477,997

 

4,106

 

3.45

 

Federal funds sold

 

 

 

 

 

 

 

Deposits with banks

 

27,284

 

18

 

0.27

 

65,292

 

41

 

0.25

 

Total interest earning assets

 

1,345,121

 

14,020

 

4.19

 

1,087,383

 

12,711

 

4.69

 

Non interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Assets

 

73,727

 

 

 

 

 

63,873

 

 

 

 

 

Total assets

 

$

1,418,848

 

 

 

 

 

$

1,151,256

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

899,602

 

$

1,407

 

0.63

%

$

763,852

 

$

1,396

 

0.73

%

Federal funds purchased and repurchase agreements

 

41,756

 

115

 

1.11

 

16,392

 

135

 

3.30

 

Federal Home Loan Bank term advances

 

7,527

 

9

 

0.48

 

330

 

 

 

Junior Subordinated Debentures

 

16,002

 

341

 

8.57

 

16,002

 

341

 

8.55

 

Total interest bearing liabilities

 

964,887

 

1,872

 

0.78

 

796,576

 

1,872

 

0.94

 

Non interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

340,318

 

 

 

 

 

278,816

 

 

 

 

 

Other liabilities

 

7,005

 

 

 

 

 

7,403

 

 

 

 

 

Total liabilities

 

1,312,210

 

 

 

 

 

1,082,795

 

 

 

 

 

Stockholders’ equity

 

106,638

 

 

 

 

 

68,461

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,418,848

 

 

 

 

 

$

1,151,256

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income/interest rate spread

 

 

 

12,148

 

3.41

%

 

 

10,839

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest earning assets/net interest margin

 

$

380,234

 

 

 

3.63

%

$

290,807

 

 

 

4.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Tax equivalent adjustment

 

 

 

(343

)

 

 

 

 

(378

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

11,805

 

 

 

 

 

$

10,461

 

 

 

 



 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Supplemental Financial Information

Condensed Consolidated Average Balance

Sheets And Average Rate Data (unaudited)

(In thousands)

 

 

 

Six months ended June 30,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

(In thousands)

 

Balance

 

Interest

 

Cost

 

Balance

 

Interest

 

Cost

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net (including loan fee income)

 

$

633,574

 

$

19,286

 

6.12

%

$

523,173

 

$

16,519

 

6.37

%

Securities

 

646,214

 

8,409

 

2.62

 

470,810

 

8,116

 

3.48

 

Federal funds sold

 

 

 

 

 

 

 

Deposits with banks

 

32,021

 

42

 

0.26

 

47,808

 

59

 

0.25

 

Total interest earning assets

 

1,311,809

 

27,737

 

4.25

 

1,041,791

 

24,694

 

4.78

 

Non interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Assets

 

71,387

 

 

 

 

 

60,978

 

 

 

 

 

Total assets

 

$

1,383,196

 

 

 

 

 

$

1,102,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

899,395

 

$

2,853

 

0.64

%

$

736,620

 

$

2,732

 

0.75

%

Federal funds purchased and repurchase agreements

 

29,032

 

226

 

1.57

 

16,766

 

269

 

3.24

 

Federal Home Loan Bank term advances

 

3,764

 

8

 

0.43

 

166

 

 

 

Junior Subordinated Debentures

 

16,002

 

683

 

8.58

 

16,002

 

683

 

8.61

 

Total interest bearing liabilities

 

948,193

 

3,770

 

0.80

 

769,554

 

3,684

 

0.97

 

Non interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

323,523

 

 

 

 

 

260,712

 

 

 

 

 

Other liabilities

 

6,836

 

 

 

 

 

6,156

 

 

 

 

 

Total liabilities

 

1,278,552

 

 

 

 

 

1,036,422

 

 

 

 

 

Stockholders’ equity

 

104,644

 

 

 

 

 

66,347

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,383,196

 

 

 

 

 

$

1,102,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income/interest rate spread

 

 

 

23,967

 

3.45

%

 

 

21,010

 

3.81

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest earning assets/net interest margin

 

$

363,616

 

 

 

3.67

%

$

272,237

 

 

 

4.07

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Tax equivalent adjustment

 

 

 

(762

)

 

 

 

 

(765

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

23,205

 

 

 

 

 

$

20,245