Bridge Capital Holdings Reports Financial Results For the Fourth Quarter and Twelve Months Ended December 31, 2013

By Business Wire,  January 23, 2014, 04:01:00 PM EDT


Conference Call and Webcast Scheduled for Thursday, January 23, 2014 at 5:00 p.m. Eastern Time

SAN JOSE, Calif.--(BUSINESS WIRE)-- Bridge Capital Holdings(NASDAQ:BBNK), whose subsidiary is Bridge Bank, National Association, announced today its financial results for the fourth quarter and twelve months ended December 31, 2013.

The Company reported net income of $5.0 million for the three months ended December 31, 2013, representing an increase of $593,000, or 13%, from $4.4 million for the quarter ended September 30, 2013, and representing an increase of $1.6 million, or 47%, from net income of $3.4 million for the same period one year ago.

For the quarter ended December 31, 2013, the Company reported earnings per diluted share of $0.33, which compared with $0.29 for the quarter ended September 30, 2013, and $0.23 for the quarter ended December 31, 2012.

The Company reported net income of $14.7 million for the twelve months ended December 31, 2013, representing an increase of $907,000, compared to net income of $13.8 million for the same period one year ago. For the twelve months ended December 31, 2013, the Company reported earnings per diluted share of $0.97, compared to $0.92 for the twelve months ended December 31, 2012.

For the quarter ended December 31, 2013, the Company's return on average assets and return on average equity were 1.31% and 12.44%, respectively, and compared to 1.20% and 11.16%, respectively, for the quarter ended September 30, 2013 and 1.06% and 9.41%, respectively, for the same period in 2012. For the twelve months ended December 31, 2013, the Company's return on average assets and return on average equity were 1.03% and 9.47%, respectively, and compared to 1.14% and 9.98%, respectively, for the same period in 2012.

"We completed 2013 with a strong quarter of business development activity, which resulted in a record level of profitability and substantial growth in both loans and deposits," said Daniel P. Myers, president and chief executive officer of Bridge Bank, N.A. and Bridge Capital Holdings. "For the full year, we were able to generate 19% growth in total loans and 21% growth in total deposits, which reflects our steady progress on a number of key initiatives: continuing to take market share in our core Silicon Valley market by generating greater awareness for our unique brand of commercial banking; continuing to build our presence in other tech-centric markets in the United States; expanding our commercial lending activities in the San Francisco market; and continuing to attract experienced bankers who understand how to deliver the flexible solutions that small- and middle-market companies need to thrive in the modern economy. We intend to continue executing on these strategic initiatives in 2014 and delivering the balanced, disciplined growth that we believe will drive further increases in the value our franchise."

Fourth Quarter Highlights

Fourth quarter 2013 results, compared to third quarter 2013 (unless otherwise noted), reflected strong performance across most areas of the Company's business and included the following:

  • Total revenue of $22.3 million for the fourth quarter of 2013 was the highest level of quarterly revenue since the inception of the Company and represented an increase of $1.8 million, or 9%, from the prior quarter. Net interest income of $18.4 million for the fourth quarter of 2013 compared to $17.8 million for the third quarter of 2013. Non-interest income of $3.9 million for the fourth quarter of 2013 compared to $2.7 million for the third quarter of 2013.
  • Net interest margin decreased slightly to 4.99% for the quarter ended December 31, 2013 compared to 5.01% for the third quarter of 2013.
  • Total assets grew to $1.60 billion at December 31, 2013, with loans continuing to comprise 70% of the average earning asset mix, consistent with the prior quarter. Total deposits were $1.41 billion at December 31, 2013, which included demand deposits of $965.8 million, representing the highest level of demand deposit balances since the inception of the Company.
  • Loan growth continued to be strong, particularly in the commercial lending portfolio. Gross loans reached $1.08 billion at December 31, 2013, representing an increase of $63.7 million, or 6%, compared to gross loans of $1.01 billion at September 30, 2013. Average loan balances increased by $44.1 million, or 5%, to $1.02 billion for the fourth quarter of 2013, compared to $980.2 million for the quarter ending September 30, 2013.
  • There was no provision for credit losses required during both the third and fourth quarters of 2013. Net recoveries were $975,000 for the quarter ended December 31, 2013, compared to net recoveries of $499,000 for the quarter ended September 30, 2013. Allowance for credit losses represented 2.04% of total gross loans and 145.2% of nonperforming loans at December 31, 2013, compared to 2.07% of total gross loans and 135.0% of nonperforming loans at September 30, 2013.
  • Nonperforming assets decreased by $418,000 to $15.1 million, or 0.94% of total assets, compared to $15.6 million, or 1.06%, of total assets at September 30, 2013.
  • Capital ratios remained strong and continued to support the Company's growth. Total Risk-Based Capital Ratio was 13.96%, Tier I Capital Ratio was 12.70%, and Tier I Leverage Ratio was 11.61% at December 31, 2013.

Net Interest Income and Margin

Net interest income of $18.4 million for the quarter ended December 31, 2013 represented an increase of $605,000, or 3%, compared to $17.8 million for the quarter ended September 30, 2013, and an increase of $2.6 million, or 16%, compared to $15.8 million for the quarter ended December 31, 2012. The increase in net interest income from the prior quarter and the same period in 2012 was primarily attributable to an increase in average earning assets, combined with a higher level of loan related fees. Average earning assets of $1.46 billion for the quarter ended December 31, 2013 increased $52.6 million, or 4%, compared to $1.41 billion for the quarter ended September 30, 2013, and increased $228.8 million, or 19%, compared to $1.23 billion for the same quarter in 2012. Loan fee amortization for the quarter ended December 31, 2013 was $3.6 million, compared to $3.4 million for the quarter ended September 30, 2013, and $2.7 million for the quarter ended December 31, 2012.

For the twelve months ended December 31, 2013, net interest income of $68.3 million represented an increase of $7.7 million, or 13%, from $60.6 million for the twelve months ended December 31, 2012, and was primarily attributed to an increase in average earning assets as a result of loan growth and excess liquidity generated from deposit growth. Average earning assets of $1.37 billion for the twelve months ended December 31, 2013 increased $221.0 million, or 19%, compared to $1.15 billion for the same period one year ago.

The Company's net interest margin for the quarter ended December 31, 2013 was 4.99%, compared to 5.01% for the quarter ended September 30, 2013, and 5.10% for the same period one year earlier. The decrease in net interest margin compared to the same period one year ago was primarily due to deposit growth outpacing loan growth, which created excess liquidity and a slightly less favorable mix of earning assets offset, in part, by increased loan fees.

The Company's loan-to-deposit ratio, a measure of leverage, averaged 77.5% during the three months ended December 31, 2013, which represented an increase compared to an average of 76.9% for the quarter ended September 30, 2013, and a decrease from an average of 78.9% for the same period of 2012. The impact on the net interest margin from increased loan fees for the three months ended December 31, 2013 compared to the prior quarter and the same period one year ago was 6 basis points and 11 basis points, respectively. The negative impact of reversal or foregone interest due to nonperforming assets was 10 basis points and 9 basis points in the fourth and third quarters of 2013, respectively, compared with 6 basis points in the same period one year earlier.

The Company's net interest margin for the twelve months ended December 31, 2013 was 4.98%, compared to 5.27% for the same period one year ago. The decrease in net interest margin from the prior year was primarily due to a less favorable mix in average earning assets, decreased leverage and increased nonperforming loans. The Company's loan-to-deposit ratio, a measure of leverage, averaged 78.3% during the twelve months ended December 31, 2013, compared with 80.9% for the same period of 2012. The impact on the net interest margin from increased loan fees for the twelve months ended December 31, 2013 compared to the same period one year ago was 5 basis points. The negative impact of reversal or foregone interest due to nonperforming assets was 8 basis points for year ended December 31, 2013 and 6 basis points for the same period one year earlier.

Non-Interest Income

The Company's non-interest income for the quarters ended December 31, 2013, September 30, 2013, and December 31, 2012 was $3.9 million, $2.7 million, and $3.7 million, respectively.

The increase in non-interest income of $1.2 million during the fourth quarter of 2013 compared to the third quarter of 2013 was primarily attributed to an increase in warrant income and an increase in the gain on sale of SBA loans. The increase in non-interest income of $200,000 during the fourth quarter of 2013 compared to the same period one year earlier was primarily attributed to an increase in warrant income, depositor service charges and international fee income. For the quarter ended December 31, 2013, the Company received warrant related income of $785,000, compared to $234,000 for the period ended September 30, 2013, and $149,000 for the same period one year earlier. For the quarter ended December 31, 2013, the Company recognized a gain from the sale of SBA loans of $751,000, compared to $253,000 for the third quarter of 2013, and $989,000 for the same period one year earlier. Service charges on deposits increased to $954,000 during the fourth quarter of 2013 from $926,000 in the third quarter of 2013, and $826,000 during the same period one year earlier. Additionally, the Company recognized $763,000 in international fee income during the quarter ended December 31, 2013, compared to $633,000 for the prior quarter, and 643,000 for the same period one year earlier.

Non-interest income for the twelve months ended December 31, 2013 and 2012 was $14.3 million and $13.0 million, respectively. The primary drivers for the increase in non-interest income of $1.1 million was an increase in the gain on sale of SBA loans of $832,000 and an increase in the gain on sale of securities of $481,000, partially offset by decreases in gains from the sale of real estate owned of $586,000.

Net interest income and non-interest income comprised total revenue of $22.3 million for the three months ended December 31, 2013, compared to $20.5 million for the three months ended September 30, 2013 and $19.5 million for the same period one year earlier. For the twelve months ended December 31, 2013, total revenue of $82.6 million represented an increase of $9.0 million, or 12%, from $73.6 million for the twelve months ended December 31, 2012.

Non-Interest Expense

Non-interest expense was $14.0 million for the quarter ended December 31, 2013, compared to $13.2 million and $12.2 million for the quarters ended September 30, 2013 and December 31, 2012, respectively. Overall, the increase in non-interest expenses reflects the Company's investments in new initiatives and personnel to support future growth.

Salary and benefits expense for the quarter ended December 31, 2013 was $9.4 million, compared to $8.4 million and $8.3 million for the quarters ended September 30, 2013 and December 31, 2012, respectively. Salary and benefits expense for the twelve months ended December 31, 2013 was $33.5 million compared to $30.3 million for the same period one year ago. The increase in salary and benefits expense compared to the same periods in prior year was primarily related to an increase in headcount to support growth and new initiatives, combined with annual salary increases necessary to remain competitive in the Company's core markets and increased stock-based compensation due to long-term retention awards. As of December 31, 2013, the Company employed 235 full-time equivalents (FTE) compared to 230 FTE at September 30, 2013 and 207 FTE at December 31, 2012.

Marketing expense for the quarter ended December 31, 2013 was $586,000, compared to $859,000 and $544,000 for the quarters ended September 30, 2013 and December 31, 2012, respectively. Marketing expense was $2.6 million for twelve months ended December 31, 2013 compared to $2.1 million for the same period one year ago. The increase in marketing expense from prior year was a result of an overall initiative to increase brand awareness.

"Other real estate owned" and loan-related charges were $212,000 for the quarter ended December 31, 2013, compared to $274,000 and $334,000 for the quarters ended September 30, 2013 and December 31, 2012, respectively. "Other real estate owned" and loan-related charges were $1.0 million for the twelve months ended December 31, 2013 compared to $955,000 for the same period one year ago. The increase in "other real estate owned" and loan related charges from prior year was primarily attributed to an increase in average nonperforming assets.

Regulatory assessments related to FDIC insurance for deposit balances, totaled $345,000 for the quarter ended December 31, 2013, compared to $376,000 for the quarter ended September 30, 2013 and $224,000 for the same period one year ago. Regulatory assessments for the twelve months ended December 31, 2013 were $1.2 million compared to $878,000 for the same period one year ago. Regulatory assessments fluctuate depending on asset size and other factors, including credit quality.

The Company's efficiency ratio, the ratio of non-interest expense to revenues, was 62.76%, 64.18%, and 62.55% for the quarters ended December 31, 2013, September 30, 2013, and December 31, 2012, respectively. The efficiency ratio was 62.83% for the twelve months ended December 31, 2013 compared to 62.81% for the same period one year earlier.

Balance Sheet

Bridge Capital Holdings reported total assets at December 31, 2013 of $1.60 billion, compared to $1.47 billion at September 30, 2013 and $1.34 billion on the same date one year ago. The increase in total assets of $260.5 million, or 19%, from December 31, 2012 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, 2013 of $1.08 billion, which represented an increase of $63.7 million, or 6%, over $1.01 billion at September 30, 2013, and an increase of $169.1 million, or 19%, over $908.6 million at December 31, 2012. The increase in total gross loans from September 30, 2013 and December 31, 2012 was broad-based throughout the portfolio, with the most significant growth reflected in the commercial lending portfolio.

The Company's total deposits were $1.41 billion as of December 31, 2013, which represented an increase of $124.3 million, or 10%, compared to $1.28 billion at September 30, 2013 and an increase of $243.5 million, or 21%, compared to $1.16 billion at December 31, 2012. The increase in deposits from September 30, 2013 was primarily attributable to continued growth in non-interest bearing demand deposit accounts. The increase in deposits from December 31, 2012 was primarily attributable to growth in the non-interest bearing demand deposit accounts and money market and savings accounts.

Demand deposits represented 68.7% of total deposits at December 31, 2013, compared to 64.7% at September 30, 2013 and 63.1% for the same period one year ago. Core deposits represented 96.5% of total deposits at December 31, 2013, compared to 96.2% at September 30, 2013 and 95.9% at December 31, 2012.

Credit Quality

Nonperforming assets were $15.1 million, or 0.94% of total assets, as of December 31, 2013, compared to $15.6 million, or 1.06% of total assets, as of September 30, 2013, and $10.1 million, or 0.75% of total assets, at December 31, 2012. The nonperforming assets at December 31, 2013 consisted of loans on nonaccrual or 90 days or more past due totaling $15.1 million and OREO valued at $31,000.

Nonperforming loans at December 31, 2013 were comprised of loans with legal contractual balances totaling approximately $24.4 million reduced by $2.1 million received in non-accrual interest and impairment charges of $7.2 million which have been charged against the allowance for credit losses.

Nonperforming loans were $15.1 million, or 1.40% of total gross loans, as of December 31, 2013, compared to $15.5 million, or 1.53% of total gross loans, as of September 30, 2013, and $10.0 million, or 1.10% of total gross loans, at December 31, 2012.

The carrying value of OREO was $31,000 as of December 31, 2013 and September 30, 2013, and $144,000 as of December 31, 2012.

The allowance for loan losses was $21.9 million, or 2.04% of total loans, at December 31, 2013, compared to $21.0 million, or 2.07% of total loans, at September 30, 2013, and $19.9 million, or 2.20% of total loans, at December 31, 2012. There was no provision for credit losses for the third and fourth quarters of 2013, compared to $1.5 million for the same period one year ago.

The Company charged-off $850,000 in loan balances during the three months ended December 31, 2013, compared to $1.7 million charged-off during the three months ended September 30, 2013 and $1.6 million charged-off during the three months ended December 31, 2012.

During the three months ended December 31, 2013, the Company recognized $1.8 million in loan recoveries compared to $2.2 million and $222,000, respectively, in loan recoveries for the three months ended September 30, 2013 and December 31, 2012.

Capital Adequacy

The Company's capital ratios at December 31, 2013 substantially exceed the regulatory definition for being "well capitalized" with a Total Risk-Based Capital Ratio of 13.96%, a Tier I Risk-Based Capital Ratio of 12.70%, and a Tier I Leverage Ratio of 11.61%. Additionally, the Company's tangible common equity ratio at December 31, 2013 was 10.15% and book value per common share was $10.26, representing an increase of $0.32, or 3.2%, from $9.94 at September 30, 2013 and an increase of $0.94, or 10.1%, from $9.32 at December 31, 2012.

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 4663410 or "Bridge Capital Holdings." 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 January 30, 2014, by dialing 800.406.7325 from the United States, or 303.590.3030 from outside the United States, and entering conference ID 4663410. 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.

Recognized by SNL Financial on their 2012's Top 100 Performing Banks with assets between $500m and $5b, and designated "Superior" by BauerFinancial and IDC, Bridge Bank is a full-service professional business bank founded in the highly competitive climate of Silicon Valley in 2001. From the very beginning, our goal has been to offer small-market and middle-market businesses from across many industries a better way to bank. We provide a surprisingly broad range of financial solutions, enabling us to meet our clients' varied needs across all stages -- from inception to IPO and beyond. It's how we go about doing so that differentiates us from our competition.

For additional information, visit the Bridge Bank website at www.bridgebank.com or follow us @BridgeBank.

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-Qon file with theSecurities and ExchangeCommission.The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
           
 
Three months ended Twelve months ended
  12/31/13     09/30/13     12/31/12     12/31/13     12/31/12  
 
INTEREST INCOME
Loans $ 17,326 $ 16,906 $ 14,722 $ 64,629 $ 56,123
Federal funds sold 102 103 66 317 203
Investment securities   1,599     1,410     1,614     5,864     6,461  
Total interest income   19,027     18,419     16,402     70,810     62,787  
 
INTEREST EXPENSE
Deposits 369 369 324 1,443 1,089
Other   270     267     270     1,075     1,106  
Total interest expense   639     636     594     2,518     2,195  
 
Net interest income 18,388 17,783 15,808 68,292 60,592
Provision for credit losses   -     -     1,500     6,050     3,950  
Net interest income after provision
for credit losses   18,388     17,783     14,308     62,242     56,642  
 
NON-INTEREST INCOME
Service charges on deposit accounts 954 926 826 3,674 3,353
International Fee Income 763 632 643 2,703 2,646
Gain on sale of SBA loans 751 253 989 2,682 1,850
Other non-interest income   1,428     899     1,227     5,221     5,135  
Total non-interest income   3,896     2,710     3,685     14,280     12,984  
 
OPERATING EXPENSES
Salaries and benefits 9,435 8,393 8,299 33,543 30,307
Premises and fixed assets 1,073 1,051 1,028 4,103 3,994
Other   3,478     3,708     2,866     14,238     11,911  
Total operating expenses   13,986     13,152     12,193     51,884     46,212  
 
Income before income taxes 8,298 7,341 5,800 24,638 23,414
Income tax expense 3,278 2,914 2,376 9,927 9,610
         
NET INCOME $ 5,020   $ 4,427   $ 3,424   $ 14,711   $ 13,804  
 
 
EARNINGS PER SHARE
Basic earnings per share $ 0.35   $ 0.31   $ 0.24   $ 1.02   $ 0.96  
Diluted earnings per share $ 0.33   $ 0.29   $ 0.23   $ 0.97   $ 0.92  
Average common shares outstanding   14,487,562     14,450,150     14,403,867     14,444,246     14,385,629  
Average common and equivalent
shares outstanding   15,342,164     15,231,454     15,002,775     15,196,220     14,927,837  
 
 
PERFORMANCE MEASURES
Return on average assets 1.31 % 1.20 % 1.06 % 1.03 % 1.14 %
Return on average equity 12.44 % 11.16 % 9.41 % 9.47 % 9.98 %
Efficiency ratio 62.76 % 64.18 % 62.55 % 62.83 %

62.81

%
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
       
 
  12/31/13     09/30/13     06/30/13     03/31/13     12/31/12  
 
ASSETS
Cash and due from banks $ 23,958 $ 31,439 $ 25,387 $ 23,023 $ 17,251
Federal funds sold 162,379 116,640 142,310 42,030 113,790
Interest-bearing deposits 326 326 326 326 335
Investment securities 307,378 281,741 258,090 289,054 267,204
Loans:
Commercial 585,559 537,822 514,363 471,200 436,293
SBA 106,406 106,383 93,839 91,893 87,375
Real estate construction 51,518 43,289 47,410 37,975 35,502
Land and land development 13,572 12,576 12,696 10,353 8,973
Real estate other 122,063 128,445 142,139 136,244 139,930
Factoring and asset-based lending 192,783 178,901 184,289 200,831 195,343
Other   5,730     6,541     5,086     5,667     5,163  
Loans, gross 1,077,631 1,013,957 999,822 954,163 908,579
Unearned fee income (4,727 ) (4,441 ) (4,302 ) (3,701 ) (3,056 )
Allowance for credit losses   (21,944 )   (20,969 )   (20,470 )   (20,543 )   (19,948 )
Loans, net 1,050,960 988,547 975,050 929,919 885,575
Premises and equipment, net 2,081 1,856 1,977 1,987 2,042
Accrued interest receivable 4,323 4,088 3,981 4,192 3,469
Other assets   52,707     49,357     56,201     56,610     53,919  
Total assets $ 1,604,112   $ 1,473,994   $ 1,463,322   $ 1,347,141   $ 1,343,585  
 
LIABILITIES
Deposits:
Demand noninterest-bearing $ 954,727 $ 819,784 $ 789,382 $ 719,206 $ 723,517
Demand interest-bearing 11,115 9,213 9,761 8,671 10,582
Money market and savings 391,310 403,916 426,539 389,153 380,949
Time   48,940     48,909     50,932     49,250     47,500  
Total deposits   1,406,092     1,281,822     1,276,614     1,166,280     1,162,548  
 
Junior subordinated debt securities 17,527 17,527 17,527 17,527 17,527
Accrued interest payable 10 10 10 10 11
Other liabilities   17,736     17,907     15,208     11,924     16,752  
Total liabilities   1,441,365     1,317,266     1,309,359     1,195,741     1,196,838  
 
SHAREHOLDERS' EQUITY
Common stock 112,714 112,120 110,883 109,928 108,963
Retained earnings 51,946 46,926 42,499 40,656 37,235
Accumulated other comprehensive income   (1,913 )   (2,318 )   581     816     549  
Total shareholders' equity   162,747     156,728     153,963     151,400     146,747  
Total liabilities and shareholders' equity $ 1,604,112   $ 1,473,994   $ 1,463,322   $ 1,347,141   $ 1,343,585  
 
CAPITAL ADEQUACY
Tier I leverage ratio 11.61 % 11.84 % 11.71 % 12.81 % 12.50 %
Tier I risk-based capital ratio 12.70 % 13.76 % 13.41 % 13.94 % 13.98 %
Total risk-based capital ratio 13.96 % 15.01 % 14.80 % 15.19 % 15.23 %
Total equity/ total assets 10.15 % 10.63 % 10.52 % 11.24 % 10.92 %
Book value per common share $ 10.26 $ 9.94 $ 9.79 $ 9.61 $ 9.32
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
           
 
Three months ended December 31,
  2013   2012
 
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 1,024,227 6.71 % $ 17,326 $ 876,765 6.68 % $ 14,722
Federal funds sold 143,070 0.28 % 102 112,749 0.23 % 66
Investment securities 293,640 2.16 % 1,599 242,658 2.65 % 1,614
Other   326 0.00 %   -   335 0.00 %   -
Total interest earning assets   1,461,263 5.17 %   19,027   1,232,507 5.29 %   16,402
 
Noninterest-earning assets:
Cash and due from banks 27,080 24,886
All other assets (3)   28,342   33,392
TOTAL $ 1,516,685 $ 1,290,785
 
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand $ 9,568 0.04 % $ 1 $ 7,379 0.05 % $ 1
Money market and savings 405,043 0.30 % 304 357,147 0.29 % 257
Time 47,020 0.54 % 64 46,064 0.57 % 66
Other   17,527 6.11 %   270   17,527 6.13 %   270
Total interest-bearing liabilities   479,158 0.53 %   639   428,117 0.55 %   594
 
Noninterest-bearing liabilities:
Demand deposits 859,254 700,073
Accrued expenses and
other liabilities 18,111 17,791
Shareholders' equity   160,162   144,804
TOTAL $ 1,516,685 $ 1,290,785
       
Net interest income and margin 4.99 % $ 18,388 5.10 % $ 15,808
 
 
(1) Loan fee amortization of $3.6 million and $2.7 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 $21.6 million and $19.5 million, respectively.
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
           
 
Three months ended December 31,   Three months ended September 30,
  2013   2013
 
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 1,024,227 6.71 % $ 17,326 $ 980,165 6.84 % $ 16,906
Federal funds sold 143,070 0.28 % 102 152,809 0.27 % 103
Investment securities 293,640 2.16 % 1,599 275,360 2.03 % 1,410
Other   326 0.00 %   -   326 0.00 %   -
Total interest earning assets   1,461,263 5.17 %   19,027   1,408,660 5.19 %   18,419
 
Noninterest-earning assets:
Cash and due from banks 27,080 27,024
All other assets (3)   28,342   30,176
TOTAL $ 1,516,685 $ 1,465,860
 
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand $ 9,568 0.04 % $ 1 $ 9,141 0.04 % $ 1
Money market and savings 405,043 0.30 % 304 419,842 0.28 % 301
Time 47,020 0.54 % 64 49,918 0.53 % 67
Other   17,527 6.11 %   270   17,744 5.97 %   267
Total interest-bearing liabilities   479,158 0.53 %   639   496,645 0.51 %   636
 
Noninterest-bearing liabilities:
Demand deposits 859,254 795,452
Accrued expenses and
other liabilities 18,111 16,381
Shareholders' equity   160,162   157,382
TOTAL $ 1,516,685 $ 1,465,860
       
Net interest income and margin 4.99 % $ 18,388 5.01 % $ 17,783
 
 
 
 
(1) Loan fee amortization of $3.6 million and $3.4 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 $21.6 million and $21.6 million, respectively.
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
           
 
Twelve months ended December 31,
  2013   2012
 
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 971,129 6.66 % $ 64,629 $ 827,691 6.78 % $ 56,122
Federal funds sold 121,983 0.26 % 316 86,735 0.23 % 203
Investment securities 278,239 2.11 % 5,864 235,892 2.74 % 6,461
Other   323 0.31 %   1   331 0.30 %   1
Total interest earning assets   1,371,674 5.16 %   70,810   1,150,649 5.46 %   62,787
 
Noninterest-earning assets:
Cash and due from banks 26,147 22,946
All other assets (3)   33,510   33,096
TOTAL $ 1,431,331 $ 1,206,691
 
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand $ 9,849 0.03 % $ 3 $ 5,834 0.03 % $ 2
Money market and savings 403,906 0.29 % 1,179 311,712 0.29 % 900
Time 48,496 0.54 % 260 38,933 0.48 % 187
Other   19,116 5.63 %   1,076   29,057 3.81 %   1,106
Total interest-bearing liabilities   481,367 0.52 %   2,518   385,536 0.57 %   2,195
 
Noninterest-bearing liabilities:
Demand deposits 778,219 667,146
Accrued expenses and
other liabilities 16,412 15,643
Shareholders' equity   155,333   138,366
TOTAL $ 1,431,331 $ 1,206,691
       
Net interest income and margin 4.98 % $ 68,292 5.27 % $ 60,592
 
 
 
 
(1) Loan fee amortization of $11.9 million and $9.4 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 $20.6 million and $19.2 million, respectively.
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
(Dollars in Thousands)
       
 
  12/31/13     09/30/13     06/30/13     03/31/13     12/31/12  
 
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period $ 20,969 $ 20,470 $ 20,543 $ 19,948 $ 19,791
Provision for credit losses, quarterly - - 5,300 750 1,500
Charge-offs, quarterly (850 ) (1,660 ) (5,399 ) (350 ) (1,565 )
Recoveries, quarterly   1,825     2,159     26     195     222  
Balance, end of period $ 21,944   $ 20,969   $ 20,470   $ 20,543   $ 19,948  
 
 
 
 
NONPERFORMING ASSETS
Loans accounted for on a non-accrual basis $ 15,115 $ 15,533 $ 16,160 $ 9,588 $ 9,967
Loans with principal or interest contractually past
due 90 days or more and still accruing interest   -     -     -     -     -  
Nonperforming loans 15,115 15,533 16,160 9,588 9,967
Other real estate owned   31     31     31     31     144  
Nonperforming assets $ 15,146   $ 15,564   $ 16,191   $ 9,619   $ 10,111  
 
Loans restructured and in compliance with
modified terms   5,569     5,652     5,708     8,798     9,402  
Nonperforming assets and restructured loans $ 20,715   $ 21,216   $ 21,899   $ 18,417   $ 19,513  
 
 
Nonperforming Loans by Asset Type:
Commercial $ 452 $ 95 $ 195 $ 449 $ 676
SBA 1,738 1,770 1,884 1,924 2,047
Construction - - - - -
Land 4 5 7 9 11
Other real estate 7,290 7,549 10,390 5,688 5,783
Factoring and asset-based lending 5,631 6,114 3,684 1,518 1,450
Other   -     -     -     -     -  
Nonperforming loans $ 15,115   $ 15,533   $ 16,160   $ 9,588   $ 9,967  
 
 
 
 
ASSET QUALITY
Allowance for credit losses / gross loans 2.04 % 2.07 % 2.05 % 2.15 % 2.20 %
Allowance for credit losses / nonperforming loans 145.18 % 135.00 % 126.67 % 214.26 % 200.14 %
Nonperforming assets / total assets 0.94 % 1.06 % 1.11 % 0.71 % 0.75 %
Nonperforming loans / gross loans 1.40 % 1.53 % 1.62 % 1.00 % 1.10 %
Net quarterly charge-offs / gross loans -0.09 % -0.05 % 0.54 % 0.02 % 0.15 %

Source: Bridge Capital Holdings



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