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8-K - FORM 8-K - Bridge Capital Holdings | v332932_8k.htm |
Exhibit 99.1
For Immediate Release: January 24, 2013
Bridge Capital Holdings Reports Financial Results
For the Fourth Quarter and Year Ended
December 31, 2012
Record Annual Levels of Loans, Deposits, Revenue, and Earnings
Conference Call and Webcast Scheduled for Thursday, January 24, 2013 at
5:00 p.m. Eastern Time
San Jose, CA – January 24, 2013 – Bridge Capital Holdings (NASDAQ: BBNK), whose subsidiary is Bridge Bank, National Association, announced today its financial results for the fourth quarter and year ended December 31, 2012.
The Company reported net income of $3.4 million for the three months ended December 31, 2012, representing a decrease of $1.0 million, or 22%, from $4.4 million in the quarter ended September 30, 2012 and an increase of $1.1 million, or 50%, compared to net income of $2.3 million for the same period one year ago.
For the quarter ended December 31, 2012, the Company reported earnings per diluted share of $0.23, which compares with $0.29 for the quarter ended September 30, 2012. This also compares with earnings per diluted share of $0.16 for the quarter ended December 31, 2011.
The Company reported net income of $13.8 million for the year ended December 31, 2012 representing an increase of $6.2 million, compared to net income of $7.8 million for the same period one year ago. For the year ended December 31, 2012, the Company reported earnings per diluted share of $0.92 compared to $0.52 for the year ended December 31, 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 December 31, 2012, the Company’s return on average assets and return on average equity were 1.06% and 9.41%, respectively, and compared to 1.43% and 12.38%, respectively, for the quarter ended September 30, 2012 and 0.82% and 7.09%, respectively, for the same period in 2011. For the year ended December 31, 2012, the Company’s return on average assets and return on average equity were 1.14% and 9.98%, respectively, and compared to 0.75% and 6.12%, respectively, for the same period in 2011.
“In the fourth quarter, we saw a continuation of the positive trends that made 2012 the most profitable year in the history of the Company,” said Daniel P. Myers, president and chief executive officer of Bridge Bank, N.A. and Bridge Capital Holdings. “We continued to see improvement in nearly all core operating and growth metrics of the company. The relatively strong and improving economic environment of Silicon Valley, our focus and disciplined execution of the fundamentals of blocking and tackling of our business, and the additional personnel and investments we made in infrastructure to expand our business development capabilities across all of our markets has positioned Bridge Bank to continue its growth and success into the new year. This momentum should result in further measured improvement of performance during 2013.”
Fourth Quarter Highlights
Fourth quarter 2012 results, compared to third quarter 2012 (unless otherwise noted), reflected strong performance across all areas of the Company’s business and included the following:
· | Total revenue of $19.5 million for the fourth quarter of 2012 was the highest level of quarterly revenue since the inception of the Company and represented an increase of $0.3 million, or 2%, from the prior quarter. Net interest income of $15.8 million for the fourth quarter of 2012 compared to $15.4 million for the third quarter of 2012. Non-interest income of $3.7 million for the fourth quarter of 2012 compared to $3.8 million for the third quarter of 2012. |
· | Net interest margin declined slightly to 5.10% for the quarter ended December 31, 2012 compared to 5.26% for the third quarter of 2012. |
· | Total assets grew to $1.34 billion at December 31, 2012, with loans comprising 71% of the average earning asset mix compared to 72% for the prior quarter. Total deposits of $1.16 billion at December 31, 2012 represented the highest level of deposit balances since the inception of the Company, and compared to $1.07 billion at September 30, 2012. |
· | Loan growth continued to be strong, primarily in the commercial, factoring, and asset-based lending portfolios, with average gross loans reaching $876.8 million for the quarter ended December 31, 2012, representing an increase of $39.2 million, or 5%, compared to average gross loans of $837.6 million for the quarter ended September 30, 2012. Period-end loan balances increased $27.6 million, or 3%, to $908.6 million, compared to $881.0 million at September 30, 2012. |
· | Credit quality overall remained solid with the allowance for credit losses representing 2.20% of total gross loans and 200.14% of nonperforming loans at December 31, 2012, compared to 2.25% of total gross loans and 224.67% of nonperforming loans at September 30, 2012. The provision for credit losses of $1.5 million for the fourth quarter of 2012 primarily related to a charge-off on one asset-based credit. Net charge-offs were $1.3 million for the quarter ended December 31, 2012, and compared to net recoveries of $50,000 for the quarter ended September 30, 2012. |
· | Nonperforming assets increased by $1.1 million to $10.1 million, or 0.75% of total assets, primarily due to one asset-based lending credit. The successful resolution of one remaining “other real estate owned” unit from a multi-unit complex, of which the other units had previously been sold for more than the recorded value of the entire complex, contributed $416,000 to non-interest income for the fourth quarter of 2012. |
· | Capital ratios remained strong and continued to support the Company’s growth. Total Risk-Based Capital Ratio was 15.23%, Tier I Capital Ratio was 13.98%, and Tier I Leverage Ratio was 12.50% at December 31, 2012. |
Net Interest Income and Margin
Net interest income of $15.8 million for the quarter ended December 31, 2012 represented an increase of $411,000, or 3%, compared to $15.4 million for the quarter ended September 30, 2012 and an increase of $2.8 million, or 22%, compared to $13.0 million for the quarter ended December 31, 2011. The increase in net interest income from the third quarter of 2012 and the same period in the prior year was primarily attributable to an increase in average earning assets as a result of loan growth and excess liquidity generated from deposit growth. Average earning assets of $1.23 billion for the quarter ended December 31, 2012 increased $69.1 million, or 6%, compared to $1.16 billion for the quarter ended September 30, 2012 and increased $190.8 million, or 18%, compared to $1.04 billion for the same quarter in 2011.
For the year ended December 31, 2012, net interest income of $60.6 million represented an increase of $12.2 million, or 25%, from $48.4 million for the year ended December 31, 2011 and was primarily attributed to an increase in average earning assets as a result of loan growth. Average earning assets of $1.15 billion for the year ended December 31, 2012 increased $163.0 million, or 17%, compared to $987.6 million for the same period one year ago.
The Company’s net interest margin for the quarter ended December 31, 2012 was 5.10%, compared to 5.26% for the quarter ended September 30, 2012, and 4.94% for the same period one year earlier. The decrease in net interest margin compared to the third quarter of 2012 was primarily due to deposit growth outpacing loan growth, which created excess liquidity and a slightly less favorable mix of earning assets. The increase in net interest margin from the same quarter in the prior year was primarily due to increased balance sheet leverage 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 78.9% during the three months ended December 31, 2012, which represented a decrease compared to an average of 80.4% for the quarter ended September 30, 2012 and an increase from 75.8% for the same period of 2011. The positive impact on the net interest margin from increased loan fees for the three months ended December 31, 2012 compared the same period one year ago was 30 basis points.
The Company’s net interest margin for the year ended December 31, 2012 was 5.27%, compared to 4.90% 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 year ended December 31, 2012 compared to the same period one year ago was 24 basis points. The negative impact of reversed or foregone interest due to nonperforming assets was 6 basis points in the year ended December 31, 2012 compared to 14 basis points for the same period one year earlier.
Non-Interest Income
The Company’s non-interest income for the quarters ended December 31, 2012, September 30, 2012, and December 31, 2011 was $3.7 million, $3.8 million, and $2.6 million, respectively.
During the fourth quarter of 2012, the Company recognized a gain from the sale of SBA loans of $989,000 compared to $227,000 for third quarter of 2012 and $299,000 for the fourth quarter of 2011. The successful resolution of one remaining “other real estate owned” unit from a multi-unit complex, of which the other units had previously been sold for more than the recorded value of the entire complex, contributed $416,000 to non-interest income for the fourth quarter of 2012. During the third quarter of 2012 and fourth quarter of 2011, the Company recognized $1.0 million and $133,000 recognized, respectively, as a result of real estate related gains. The Company received warrant related income of $149,000 for the fourth quarter of 2012 compared to $576,000 for the third quarter of 2012 and $246,000 for the fourth quarter of 2011.
Non-interest income for the year ending December 31, 2012 and 2011 was $13.0 million and $9.9 million, respectively. During the year ending December 31, 2012, the Company recognized $1.6 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 compared to $421,000 in the prior year. Also included in non-interest income for the year ending December 31, 2012 was $1.4 million in warrant income compared to $392,000 in the prior year. During the year ending December 31, 2012 the Company recognized a gain on the sale of SBA loans of $1.9 million compared to $1.7 million in the prior year. Additionally, non-interest income for the year ending December 31, 2012 included international fee income of $2.6 million and depositor service charges of $3.4 million compared to $2.5 million and $2.9 million, respectively, for the same period one year earlier.
Net interest income and non-interest income comprised total revenue of $19.5 million for the three months ended December 31, 2012, compared to $19.2 million for the three months ended September 30, 2012 and $15.6 million for the same period one year earlier. For the year ended December 31, 2012, total revenue of $73.6 million represented an increase of $15.2 million, or 26%, from $58.4 million for the year ended December 31, 2011.
Non-Interest Expense
Non-interest expense was $12.2 million for the quarter ended December 31, 2012, compared to $11.6 million and $11.1 million for the quarters ended September 30, 2012 and December 31, 2011, respectively. Non-interest expense for the year ended December 31, 2012 was $46.2 million compared to $42.4 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 December 31, 2012 was $8.3 million, compared to $7.6 million and $7.1 million for the quarters ended September 30, 2012 and December 31, 2011, respectively. Salary and benefits expense for the year ended December 31, 2012 was $30.3 million compared to $24.6 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, additional accruals for incentive compensation due to strong performance related to business development, and increased stock-based compensation due to long-term retention awards granted during the third quarter of 2012. As of December 31, 2012, the Company employed 207 full-time equivalents (FTE) compared to 203 FTE at September 30, 2012 and 193 FTE at December 31, 2011.
“Other real estate owned” and loan-related charges were $334,000 for the quarter ended December 31, 2012, compared to $197,000 and $565,000 for the quarters ended September 30, 2012 and December 31, 2011, respectively. “Other real estate owned” and loan-related charges were $995,000 for the year ended December 31, 2012 compared to $1.8 million for the same period one year ago. The decrease in “other real estate owned” and loan related charges from prior year 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 $224,000 for the quarter ended December 31, 2012, compared to $230,000 for the quarter ended September 30, 2012 and $144,000 for the same period one year ago. Regulatory assessments for the year ended December 31, 2012 were $878,000 compared to $1.7 million for the same period one year ago.
The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 62.55%, 60.39%, and 70.99% for the quarters ended December 31, 2012, September 30, 2012, and December 31, 2011, respectively. The efficiency ratio was 62.81% for the year ended December 31, 2012 compared to 72.68% for the same period one year earlier.
Balance Sheet
Bridge Capital Holdings reported total assets at December 31, 2012 of $1.34 billion, compared to $1.25 billion at September 30, 2012 and $1.16 billion on the same date one year ago. The increase in total assets of $182.6 million, or 16%, from December 31, 2011 was driven by an increase in deposit production which was primarily used to fund loan growth and increase the investment portfolio.
The Company reported total gross loans outstanding at December 31, 2012 of $908.6 million, which represented an increase of $27.6 million, or 3%, over $881.0 million at September 30, 2012 and an increase of $146.6 million, or 19%, over $762.0 million at December 31, 2011. The increase in total gross loans from September 30, 2012 and December 31, 2011 was broad-based throughout the portfolio, with the most significant growth reflected in the commercial lending, factoring, and asset-based lending portfolios.
The Company’s total deposits were $1.16 billion as of December 31, 2012, which represented an increase of $91.3 million, or 9%, compared to $1.07 billion at September 30, 2012 and an increase of $163.9 million, or 16%, compared to $998.7 million at December 31, 2011. The increase in deposits from September 30, 2012 and December 31, 2011 was primarily attributable to continued growth in money market and savings, and noninterest-bearing demand deposit accounts.
Demand deposits represented 63.1% of total deposits at December 31, 2012, compared to 66.6% at September 30, 2012 and 66.5% for the same period one year ago. Core deposits represented 95.9% of total deposits at December 31, 2012, compared to 95.7% at September 30, 2012 and 96.4% at December 31, 2011.
Credit Quality
Nonperforming assets increased to $10.1 million, or 0.75% of total assets, as of December 31, 2012, compared to $9.0 million, or 0.72% of total assets, as of September 30, 2012 and $16.0 million, or 1.38% of total assets, at December 31, 2011. The nonperforming assets at December 31, 2012 consisted of loans on nonaccrual or 90 days or more past due totaling $10.0 million, and OREO valued at $144,000. The increase in nonperforming loans in the fourth quarter of 2012 was primarily due to one asset-based lending credit.
Nonperforming loans at December 31, 2012 were comprised of loans with legal contractual balances totaling approximately $15.5 million reduced by $1.4 million received in non-accrual interest and impairment charges of $4.1 million which have been charged against the allowance for credit losses.
Nonperforming loans increased to $10.0 million, or 1.10% of total gross loans, as of December 31, 2012, compared to $8.8 million, or 1.00% of total gross loans, as of September 30, 2012 and decreased compared to $11.8 million, or 1.55% of total gross loans, at December 31, 2011.
The carrying value of OREO was $144,000 as of December 31, 2012, unchanged compared to September 30, 2012 and down from $4.1 million as of December 31, 2011.
The Company charged-off $1.6 million in loan balances during the three months ended December 31, 2012, compared to $17,000 charged-off during the three months ended September 30, 2012 and $488,000 charged-off during the three months ended December 31, 2011. During the year ended December 31, 2012, the Company charged-off balances totaling $3.1 million, which compared to $2.9 million charged-off during the same period of 2011. Approximately $2.3 million of the charge-offs in 2012 were related to one loan in the asset-based lending portfolio and one loan in the factoring portfolio.
During the three months ended December 31, 2012, the Company recognized $222,000 in loan recoveries compared to $67,000 and $136,000, respectively, in loan recoveries for the three months ended September 30, 2012 and December 31, 2011. During the year ended December 31, 2012, the Company recognized $603,000 in loan recoveries which compared to $3.3 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 $19.9 million, or 2.20% of total loans, at December 31, 2012, compared to $19.8 million, or 2.25% of total loans, at September 30, 2012 and $18.5 million, or 2.43% of total loans, at December 31, 2011. The provision for credit losses for the fourth quarter of 2012 was $1.5 million compared to $200,000 for the third quarter of 2012 and $600,000 for the same period one year ago. The provision for credit losses for the year ending December 31, 2012 and December 31, 2011 was $4.0 million and $2.6 million, respectively. The provision for credit losses of $1.5 million for the fourth quarter of 2012 primarily related to a charge-off on one asset-based credit.
Capital Adequacy
The Company’s capital ratios at December 31, 2012 substantially exceed the regulatory definition for being “well capitalized” with a Total Risk-Based Capital Ratio of 15.23%, a Tier I Risk-Based Capital Ratio of 13.98%, and a Tier I Leverage Ratio of 12.50%. Additionally, the Company’s tangible common equity ratio at December 31, 2012 was 10.92% and book value per common share was $9.32, representing an increase of $0.30, or 3.4%, from $9.02 at September 30, 2012 and an increase of $0.77, or 9.0%, from $8.55 at December 31, 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 877.941.6009 from the United States, or 480.629.9819 from outside the United States and referencing conference ID 4592023. Those interested in listening to the conference call live via the Internet may do so by visiting the Investor Relations section of the Company's Web site at www.bridgebank.com.
A telephone replay will be available through February 7, 2013, by dialing 800.406.7325 from the United States, or 303.590.3030 from outside the United States, and entering conference ID 4592023. 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.
Contacts
Daniel P. Myers | Thomas A. Sa | |
President | Executive Vice President | |
Chief Executive Officer | Chief Financial Officer and Chief Strategy Officer | |
408.556.6510 | 408.556.8308 | |
dan.myers@bridgebank.com | tom.sa@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 | Twelve months ended | |||||||||||||||||||
12/31/12 | 09/30/12 | 12/31/11 | 12/31/12 | 12/31/11 | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Loans | $ | 14,722 | $ | 14,467 | $ | 11,789 | $ | 56,122 | $ | 45,352 | ||||||||||
Federal funds sold | 66 | 59 | 53 | 203 | 255 | |||||||||||||||
Investment securities | 1,614 | 1,444 | 1,661 | 6,461 | 5,068 | |||||||||||||||
Other | - | - | - | 1 | 19 | |||||||||||||||
Total interest income | 16,402 | 15,970 | 13,503 | 62,787 | 50,694 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 324 | 300 | 269 | 1,089 | 1,096 | |||||||||||||||
Other | 270 | 273 | 271 | 1,106 | 1,160 | |||||||||||||||
Total interest expense | 594 | 573 | 540 | 2,195 | 2,256 | |||||||||||||||
Net interest income | 15,808 | 15,397 | 12,963 | 60,592 | 48,438 | |||||||||||||||
Provision for credit losses | 1,500 | 200 | 600 | 3,950 | 2,600 | |||||||||||||||
Net interest income after provision for credit losses | 14,308 | 15,197 | 12,363 | 56,642 | 45,838 | |||||||||||||||
NON-INTEREST INCOME | ||||||||||||||||||||
Service charges on deposit accounts | 826 | 888 | 774 | 3,353 | 2,876 | |||||||||||||||
International Fee Income | 643 | 627 | 708 | 2,646 | 2,488 | |||||||||||||||
Other non-interest income | 2,216 | 2,270 | 1,134 | 6,985 | 4,566 | |||||||||||||||
Total non-interest income | 3,685 | 3,785 | 2,616 | 12,984 | 9,930 | |||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||
Salaries and benefits | 8,299 | 7,579 | 7,094 | 30,308 | 24,606 | |||||||||||||||
Premises and fixed assets | 1,028 | 1,043 | 960 | 3,993 | 3,801 | |||||||||||||||
Other | 2,866 | 2,962 | 3,005 | 11,911 | 14,017 | |||||||||||||||
Total operating expenses | 12,193 | 11,584 | 11,059 | 46,212 | 42,424 | |||||||||||||||
Income before income taxes | 5,800 | 7,398 | 3,920 | 23,414 | 13,344 | |||||||||||||||
Income tax expense | 2,376 | 3,034 | 1,633 | 9,610 | 5,498 | |||||||||||||||
NET INCOME | $ | 3,424 | $ | 4,364 | $ | 2,287 | $ | 13,804 | $ | 7,846 | ||||||||||
Preferred dividends | - | - | - | - | 200 | |||||||||||||||
Net income available to common shareholders | $ | 3,424 | $ | 4,364 | $ | 2,287 | $ | 13,804 | $ | 7,646 | ||||||||||
EARNINGS PER SHARE | ||||||||||||||||||||
Basic earnings per share | $ | 0.24 | $ | 0.30 | $ | 0.16 | $ | 0.96 | $ | 0.54 | ||||||||||
Diluted earnings per share | $ | 0.23 | $ | 0.29 | $ | 0.16 | $ | 0.92 | $ | 0.52 | ||||||||||
Average common shares outstanding | 14,403,867 | 14,391,432 | 14,337,176 | 14,385,629 | 14,247,853 | |||||||||||||||
Average common and equivalent shares outstanding | 15,002,775 | 14,991,337 | 14,735,337 | 14,927,837 | 14,642,260 | |||||||||||||||
PERFORMANCE MEASURES | ||||||||||||||||||||
Return on average assets | 1.06 | % | 1.43 | % | 0.82 | % | 1.14 | % | 0.75 | % | ||||||||||
Return on average equity | 9.41 | % | 12.38 | % | 7.09 | % | 9.98 | % | 6.12 | % | ||||||||||
Efficiency ratio | 62.55 | % | 60.39 | % | 70.99 | % | 62.81 | % | 72.68 | % |
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | 12/31/11 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 17,251 | $ | 27,509 | $ | 16,877 | $ | 21,663 | $ | 17,135 | ||||||||||
Federal funds sold | 113,790 | 82,245 | 39,420 | 48,700 | 106,690 | |||||||||||||||
Interest-bearing deposits | 335 | 335 | 335 | 335 | 335 | |||||||||||||||
Investment securities | 267,204 | 227,336 | 224,967 | 238,556 | 240,268 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | 436,293 | 404,657 | 382,471 | 362,556 | 330,348 | |||||||||||||||
SBA | 87,375 | 91,805 | 83,718 | 82,459 | 73,336 | |||||||||||||||
Real estate construction | 35,502 | 39,011 | 46,341 | 51,986 | 47,213 | |||||||||||||||
Land and land development | 8,973 | 5,321 | 5,327 | 6,109 | 6,772 | |||||||||||||||
Real estate other | 139,930 | 153,003 | 153,919 | 154,697 | 157,446 | |||||||||||||||
Factoring and asset-based lending | 195,343 | 182,213 | 173,996 | 154,895 | 142,482 | |||||||||||||||
Other | 5,163 | 4,949 | 4,614 | 4,284 | 4,431 | |||||||||||||||
Loans, gross | 908,579 | 880,959 | 850,386 | 816,986 | 762,028 | |||||||||||||||
Unearned fee income | (3,056 | ) | (3,136 | ) | (2,605 | ) | (2,622 | ) | (2,792 | ) | ||||||||||
Allowance for credit losses | (19,948 | ) | (19,791 | ) | (19,541 | ) | (19,304 | ) | (18,540 | ) | ||||||||||
Loans, net | 885,575 | 858,032 | 828,240 | 795,060 | 740,696 | |||||||||||||||
Premises and equipment, net | 2,042 | 2,057 | 2,205 | 2,302 | 2,337 | |||||||||||||||
Accrued interest receivable | 3,469 | 3,439 | 3,452 | 3,534 | 3,291 | |||||||||||||||
Other assets | 53,919 | 46,601 | 49,713 | 50,672 | 50,281 | |||||||||||||||
Total assets | $ | 1,343,585 | $ | 1,247,554 | $ | 1,165,209 | $ | 1,160,822 | $ | 1,161,033 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand noninterest-bearing | $ | 723,517 | $ | 708,513 | $ | 645,884 | $ | 640,235 | $ | 660,036 | ||||||||||
Demand interest-bearing | 10,582 | 5,089 | 5,264 | 4,232 | 4,272 | |||||||||||||||
Money market and savings | 380,949 | 311,671 | 294,389 | 320,489 | 298,145 | |||||||||||||||
Time | 47,500 | 45,934 | 40,017 | 31,647 | 36,222 | |||||||||||||||
Total deposits | 1,162,548 | 1,071,207 | 985,554 | 996,603 | 998,675 | |||||||||||||||
Junior subordinated debt securities | 17,527 | 17,527 | 17,527 | 17,527 | 17,527 | |||||||||||||||
Other borrowings | - | - | 10,000 | - | - | |||||||||||||||
Accrued interest payable | 11 | 10 | 11 | 10 | 9 | |||||||||||||||
Other liabilities | 16,752 | 16,759 | 15,007 | 13,560 | 15,309 | |||||||||||||||
Total liabilities | 1,196,838 | 1,105,503 | 1,028,099 | 1,027,700 | 1,031,520 | |||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Common stock | 108,963 | 108,117 | 107,661 | 107,184 | 106,673 | |||||||||||||||
Retained earnings | 37,235 | 33,811 | 29,447 | 26,138 | 23,431 | |||||||||||||||
Accumulated other comprehensive income (loss) | 549 | 123 | 2 | (200 | ) | (591 | ) | |||||||||||||
Total shareholders' equity | 146,747 | 142,051 | 137,110 | 133,122 | 129,513 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,343,585 | $ | 1,247,554 | $ | 1,165,209 | $ | 1,160,822 | $ | 1,161,033 | ||||||||||
CAPITAL ADEQUACY | ||||||||||||||||||||
Tier I leverage ratio | 12.50 | % | 13.01 | % | 13.16 | % | 12.86 | % | 13.36 | % | ||||||||||
Tier I risk-based capital ratio | 13.98 | % | 14.44 | % | 14.54 | % | 14.38 | % | 14.80 | % | ||||||||||
Total risk-based capital ratio | 15.23 | % | 15.70 | % | 15.80 | % | 15.63 | % | 16.06 | % | ||||||||||
Total equity/ total assets | 10.92 | % | 11.39 | % | 11.77 | % | 11.47 | % | 11.15 | % | ||||||||||
Book value per common share | $ | 9.32 | $ | 9.02 | $ | 8.99 | $ | 8.72 | $ | 8.55 |
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
Three months ended December 31, | ||||||||||||||||||||||||
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) | $ | 876,765 | 6.68 | % | $ | 14,722 | $ | 712,441 | 6.56 | % | $ | 11,789 | ||||||||||||
Federal funds sold | 112,749 | 0.23 | % | 66 | 91,232 | 0.23 | % | 53 | ||||||||||||||||
Investment securities | 242,658 | 2.65 | % | 1,614 | 237,722 | 2.77 | % | 1,661 | ||||||||||||||||
Other | 335 | 0.00 | % | - | 335 | 0.00 | % | - | ||||||||||||||||
Total interest earning assets | 1,232,507 | 5.29 | % | 16,402 | 1,041,730 | 5.14 | % | 13,503 | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 24,886 | 21,563 | ||||||||||||||||||||||
All other assets (3) | 33,392 | 37,097 | ||||||||||||||||||||||
TOTAL | $ | 1,290,785 | $ | 1,100,390 | ||||||||||||||||||||
LIABILITIES AND | ||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand | $ | 7,379 | 0.05 | % | $ | 1 | $ | 4,332 | 0.09 | % | $ | 1 | ||||||||||||
Money market and savings | 357,147 | 0.29 | % | 257 | 336,187 | 0.27 | % | 232 | ||||||||||||||||
Time | 46,064 | 0.57 | % | 66 | 35,265 | 0.41 | % | 36 | ||||||||||||||||
Other | 17,527 | 6.13 | % | 270 | 17,527 | 6.13 | % | 271 | ||||||||||||||||
Total interest-bearing liabilities | 428,117 | 0.55 | % | 594 | 393,311 | 0.54 | % | 540 | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 700,073 | 564,026 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 17,791 | 15,019 | ||||||||||||||||||||||
Shareholders' equity | 144,804 | 128,034 | ||||||||||||||||||||||
TOTAL | $ | 1,290,785 | $ | 1,100,390 | ||||||||||||||||||||
Net interest income and margin | 5.10 | % | $ | 15,808 | 4.94 | % | $ | 12,963 |
(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 $19.5 million and $18.3 million, respectively. |
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
Twelve months ended December 31, | ||||||||||||||||||||||||
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) | $ | 827,691 | 6.78 | % | $ | 56,122 | $ | 660,614 | 6.87 | % | $ | 45,352 | ||||||||||||
Federal funds sold | 86,735 | 0.23 | % | 203 | 109,134 | 0.23 | % | 255 | ||||||||||||||||
Investment securities | 235,892 | 2.74 | % | 6,461 | 216,870 | 2.34 | % | 5,068 | ||||||||||||||||
Other | 331 | 0.30 | % | 1 | 998 | 1.90 | % | 19 | ||||||||||||||||
Total interest earning assets | 1,150,649 | 5.46 | % | 62,787 | 987,616 | 5.13 | % | 50,694 | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 22,946 | 22,392 | ||||||||||||||||||||||
All other assets (3) | 33,096 | 37,133 | ||||||||||||||||||||||
TOTAL | $ | 1,206,691 | $ | 1,047,141 | ||||||||||||||||||||
LIABILITIES AND | ||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand | $ | 5,834 | 0.03 | % | $ | 2 | $ | 6,205 | 0.06 | % | $ | 4 | ||||||||||||
Money market and savings | 311,712 | 0.29 | % | 900 | 326,546 | 0.27 | % | 884 | ||||||||||||||||
Time | 38,933 | 0.48 | % | 187 | 36,876 | 0.56 | % | 208 | ||||||||||||||||
Other | 29,057 | 3.81 | % | 1,106 | 20,217 | 5.74 | % | 1,160 | ||||||||||||||||
Total interest-bearing liabilities | 385,536 | 0.57 | % | 2,195 | 389,844 | 0.58 | % | 2,256 | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 667,146 | 515,056 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 15,643 | 14,113 | ||||||||||||||||||||||
Shareholders' equity | 138,366 | 128,128 | ||||||||||||||||||||||
TOTAL | $ | 1,206,691 | $ | 1,047,141 | ||||||||||||||||||||
Net interest income and margin | 5.27 | % | $ | 60,592 | 4.90 | % | $ | 48,438 |
(1) | Loan fee amortization of $9.4 million and $5.7 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 $19.2 million and $16.9 million, respectively. |
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
(Dollars in Thousands)
12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | 12/31/11 | ||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||||||
Balance, beginning of period | $ | 19,791 | $ | 19,541 | $ | 19,304 | $ | 18,540 | $ | 18,292 | ||||||||||
Provision for credit losses, quarterly | 1,500 | 200 | 500 | 1,750 | 600 | |||||||||||||||
Charge-offs, quarterly | (1,565 | ) | (17 | ) | (553 | ) | (1,010 | ) | (488 | ) | ||||||||||
Recoveries, quarterly | 222 | 67 | 290 | 24 | 136 | |||||||||||||||
Balance, end of period | $ | 19,948 | $ | 19,791 | $ | 19,541 | $ | 19,304 | $ | 18,540 | ||||||||||
NONPERFORMING ASSETS | ||||||||||||||||||||
Loans accounted for on a non-accrual basis | $ | 9,967 | $ | 8,807 | $ | 9,211 | $ | 8,891 | $ | 11,840 | ||||||||||
Loans with principal or interest contractually past due 90 days or more and still accruing interest | - | 2 | - | - | - | |||||||||||||||
Nonperforming loans | 9,967 | 8,809 | 9,211 | 8,891 | 11,840 | |||||||||||||||
Other real estate owned | 144 | 144 | 3,125 | 4,150 | 4,126 | |||||||||||||||
Nonperforming assets | $ | 10,111 | $ | 8,953 | $ | 12,336 | $ | 13,041 | $ | 15,966 | ||||||||||
Loans restructured and in compliance with modified terms | 9,402 | 10,629 | 11,272 | 9,927 | 10,677 | |||||||||||||||
Nonperforming assets and restructured loans | $ | 19,513 | $ | 19,582 | $ | 23,608 | $ | 22,968 | $ | 26,643 | ||||||||||
Nonperforming Loans by Asset Type: | ||||||||||||||||||||
Commercial | $ | 676 | $ | 816 | $ | 1,041 | $ | 257 | $ | 798 | ||||||||||
SBA | 2,047 | 2,099 | 2,162 | 1,011 | 2,110 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
Land | 11 | 13 | 31 | 498 | 540 | |||||||||||||||
Other real estate | 5,783 | 5,879 | 5,977 | 6,067 | 6,184 | |||||||||||||||
Factoring and asset-based lending | 1,450 | - | - | 1,058 | 2,208 | |||||||||||||||
Other | - | 2 | - | - | - | |||||||||||||||
Nonperforming loans | $ | 9,967 | $ | 8,809 | $ | 9,211 | $ | 8,891 | $ | 11,840 | ||||||||||
ASSET QUALITY | ||||||||||||||||||||
Allowance for credit losses / gross loans | 2.20 | % | 2.25 | % | 2.30 | % | 2.36 | % | 2.43 | % | ||||||||||
Allowance for credit losses / nonperforming loans | 200.14 | % | 224.67 | % | 212.15 | % | 217.12 | % | 156.59 | % | ||||||||||
Nonperforming assets / total assets | 0.75 | % | 0.72 | % | 1.06 | % | 1.12 | % | 1.38 | % | ||||||||||
Nonperforming loans / gross loans | 1.10 | % | 1.00 | % | 1.08 | % | 1.09 | % | 1.55 | % | ||||||||||
Net quarterly charge-offs / gross loans | 0.15 | % | -0.01 | % | 0.03 | % | 0.12 | % | 0.05 | % |