Bridge Capital Holdings Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2014

By Business Wire,  July 22, 2014, 04:01:00 PM EDT


Conference Call and Webcast Scheduled for Tuesday, July 22, 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 second quarter and six months ended June 30, 2014.

The Company reported net income of $4.3 million for the three months ended June 30, 2014, representing an increase of $551,000, or 15%, from $3.7 million for the quarter ended March 31, 2014, and representing an increase of $2.4 million, or 132%, from net income of $1.8 million for the same period one year ago.

For the quarter ended June 30, 2014, the Company reported earnings per diluted share of $0.27, compared with $0.24 for the quarter ended March 31, 2014 and $0.12 for the quarter ended June 30, 2013.

The Company reported net income of $8.0 million for the six months ended June 30, 2014, representing an increase of $2.7 million, compared to net income of $5.3 million for the same period one year ago. For the six months ended June 30, 2014, the Company reported earnings per diluted share of $0.51, compared to $0.35 for the six months ended June 30, 2013.

For the quarter ended June 30, 2014, the Company's return on average assets and return on average equity were 1.07% and 9.98%, respectively, and compared to 0.97% and 9.09%, respectively, for the quarter ended March 31, 2014 and 0.52% and 4.79%, respectively, for the same period in 2013. For the six months ended June 30, 2014, the Company's return on average assets and return on average equity were 1.02% and 9.55%, respectively, and compared to 0.77% and 6.99%, respectively, for the same period in 2013.

"We continue to see solid growth in revenue and earnings driven by our successful new business development efforts," said Daniel P. Myers, president and chief executive officer of Bridge Bank, N.A. and Bridge Capital Holdings. "During the second quarter, we continued to attract new banking relationships within our Technology and Corporate Banking groups, which resulted in 23% annualized growth in our commercial loan portfolio. We also took a number of steps during the second quarter to enhance our ability to continue growing the Bridge Bank franchise, most notably adding several high caliber bankers - including new managers for our International Banking and SBA businesses, well known technology bankers to further penetrate our core markets, and several talented bankers to expand our office in Southern California. We believe that the Southern California commercial market, with its numerous submarkets that have developed into technology hubs, represents a significant growth opportunity for Bridge. We anticipate that our value proposition will resonate well in Southern California and enable us to steadily take market share, providing another source of quality loan and deposit growth in the future."

Second Quarter Highlights

Second quarter 2014 results, compared to first quarter 2014 (unless otherwise noted), reflected strong performance across most areas of the Company's business and included the following:

  • Total revenue of $23.2 million for the second quarter of 2014 represented an increase of $2.4 million, or 12%, from the prior quarter. Net interest income of $19.2 million for the second quarter of 2014 compared to $18.0 million for the first quarter of 2014. Non-interest income of $4.0 million for the second quarter of 2014 compared to $2.7 million for the first quarter of 2014.
  • Net interest margin increased to 5.03% for the quarter ended June 30, 2014, compared to 4.91% for the first quarter of 2014.
  • Total assets grew to $1.63 billion at June 30, 2014, with loans comprising 74% of the average earning asset mix, compared to 73% during the prior quarter. Total deposits were $1.42 billion at June 30, 2014, which included demand deposits of $979.3 million.
  • Loan growth continued to be strong, particularly in the commercial lending portfolio. Gross loans reached $1.18 billion at June 30, 2014, representing an increase of $36.0 million, or 3%, compared to gross loans of $1.14 billion at March 31, 2014. Average loan balances increased by $48.9 million, or 5%, to $1.13 billion for the second quarter of 2014, compared to $1.08 billion for the quarter ending March 31, 2014.
  • Allowance for credit losses represented 1.96% of total gross loans and 179.18% of nonperforming loans at June 30, 2014, compared to 1.98% of total gross loans and 191.51% of nonperforming loans at March 31, 2014. The provision for credit losses of $1.5 million for the second quarter of 2014 was largely attributable to the charge-off of one asset-based credit and the strong growth in the loan portfolio. Net charge-offs were $1.0 million for the period ended June 30, 2014, compared to net recoveries of $221,000 for the quarter ended March 31, 2014.
  • Nonperforming assets increased by $1.0 million to $12.9 million, or 0.79% of total assets, compared to $11.9 million, or 0.73%, of total assets at March 31, 2014.
  • Capital ratios remained strong and continued to support the Company's growth. Total Risk-Based Capital Ratio was 14.00%, Tier I Capital Ratio was 12.74%, and Tier I Leverage Ratio was 11.74% at June 30, 2014.

Net Interest Income and Margin

Net interest income of $19.2 million for the quarter ended June 30, 2014 represented an increase of $1.2 million, or 7%, compared to $18.0 million for the quarter ended March 31, 2014, and an increase of $2.7 million, or 16%, compared to $16.6 million for the quarter ended June 30, 2013. The increase in net interest income from the prior quarter and same period in the prior year was primarily attributable to an increase in average earning assets as a result of loan growth, combined with a higher level of loan related fees. Average earning assets of $1.53 billion for the quarter ended June 30, 2014 increased $44.0 million, or 3%, compared to $1.49 billion for the quarter ended March 31, 2014, and increased $168.1 million, or 12%, compared to $1.36 billion for the same quarter in 2013. Loan fee amortization for the quarter ended June 30, 2014 was $3.5 million, compared to $2.8 million for the quarter ended March 31, 2014, and $2.7 million for the quarter ended June 30, 2013.

For the six months ended June 30, 2014, net interest income of $37.2 million represented an increase of $5.1 million, or 16%, from $32.1 million for the six months ended June 30, 2013, and was primarily attributed to an increase in average earning assets as a result of loan growth and excess liquidity generated from deposit growth, combined with a higher level of loan related fees. Average earning assets of $1.51 billion for the six months ended June 30, 2014 increased $203.8 million, or 16%, compared to $1.31 billion for the same period one year ago. Loan fee amortization for the six months ended June 30, 2014 was $6.3 million compared to $4.8 million for the same period ended June 30, 2013.

The Company's net interest margin for the quarter ended June 30, 2014 was 5.03%, compared to 4.91% for the quarter ended March 31, 2014, and 4.87% for the same period one year earlier. The increase in net interest margin compared to the quarters ended March 31, 2014 and June 30, 2013 was primarily due to increased loan fees and a more favorable balance sheet mix. The Company's loan-to-deposit ratio, a measure of leverage, averaged 81.5% during the three months ended June 30, 2014, compared to an average of 81.1% for the quarter ended March 31, 2014, and an average of 79.4% for the same period of 2013. The impact on the net interest margin from increased loan fees for the three months ended June 30, 2014 compared to the prior quarter was 10 basis points. The impact on the net interest margin from increased loan fees compared to the quarter ended June 30, 2013 was 12 basis points. The negative impact of reversal or foregone interest due to nonperforming assets was 6 and 2 basis points in the second and first quarter of 2014, respectively, compared with 8 basis points in the second quarter one year earlier.

The Company's net interest margin for the six months ended June 30, 2014 was 4.97%, compared to 4.95% for the same period one year ago. The increase in net interest margin from the prior year was primarily due to increased loan fees. The Company's loan-to-deposit ratio, a measure of leverage, averaged 81.3% during the six months ended June 30, 2014, compared with 79.5% for the same period of 2013. The impact on the net interest margin from increased loan fees for the six months ended June 30, 2013 compared to the same period one year ago was 9 basis points. The negative impact of reversal or foregone interest due to nonperforming assets was 5 basis points for the first six months of 2014 compared to 8 basis points for same period one year earlier.

Non-Interest Income

The Company's non-interest income for the quarters ended June 30, 2014, March 31, 2014, and June 30, 2013 was $4.0 million, $2.7 million, and $4.8 million, respectively.

The increase in non-interest income of $1.3 million during the second quarter of 2014 compared to the first quarter of 2014 was primarily attributed to an increase in gains on sale of SBA loans and an increase in warrant income. The decrease in non-interest income of $776,000 during the second quarter of 2014 compared to the same period one year earlier was primarily attributed to a decrease in gains on sale of securities and SBA loans. For the quarter ended June 30, 2014, the Company recorded gains on sale of SBA loans of $1.1 million, compared to $213,000 for the prior quarter and $1.3 million for the same period one year earlier. Service charges on deposits increased to $978,000 during the second quarter of 2014 from $916,000 in the first quarter of 2014, and $920,000 during the same period one year earlier. The Company recognized $801,000 in international fee income during the quarter ended June 30, 2014, compared to $761,000 for the prior quarter, and $672,000 for the same period one year earlier. There were no gains on sale of securities during the current quarter, compared to only $5,000 for the quarter ended March 31, 2014, and $804,000 for same period last year. Additionally, $368,000 in Visa interchange/fee income was recognized during the second quarter of 2014, compared to $299,000 during the prior quarter and $226,000 for the same period during the prior year. The Company received warrant related income of $232,000, compared to $121,000 for the period ended March 31, 2014, and $229,000 for the same period one year earlier. Finally, the Company recognized $179,000 in SBA loan servicing income during the current quarter compared to $142,000 during the prior quarter compared to $128,000 for the same period in 2013.

Non-interest income for the six months ended June 30, 2014 and 2013 was $6.7 million and $7.7 million, respectively. The primary drivers for the decrease in non-interest income of $947,000 was a decrease in gains on sales of securities of $799,000, a decrease in gains on sales of OREO of $470,000 and a decrease in gains on sales of SBA loans of $352,000, partially offset by increases in Visa interchange/fee income of $267,000 and international fee income of $255,000.

Net interest income and non-interest income comprised total revenue of $23.2 million for the three months ended June 30, 2014, compared to $20.8 million for the three months ended March 31, 2014 and $21.3 million for the same period one year earlier. For the six months ended June 30, 2014, total revenue of $44.0 million represented an increase of $4.2 million, or 11%, from $39.8 million for the six months ended June 30, 2013.

Non-Interest Expense

Non-interest expense was $14.7 million for the quarter ended June 30, 2014, compared to $14.0 million for the quarter ended March 31, 2014, and $12.9 million for the quarter ended June 30, 2013. 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 June 30, 2014 was $9.4 million, compared to $9.0 million and $8.2 million for the quarters ended March 31, 2014 and June 30, 2013, respectively. For the six months ended June 30, 2014, salary and benefits expense was $18.4 million compared to $15.7 million for the same period in 2013. The increases in salary and benefits expense for the current quarter compared to the prior quarter are primarily related to an increase in headcount to support growth. The increase in salary and benefits expense for the current period compared to the same period in the prior year is 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 June 30, 2014 and March 31, 2014, the Company employed 242 and 235 full-time equivalents (FTE), respectively, compared to 220 FTE at June 30, 2013.

Marketing expense for the quarter ended June 30, 2014 was $671,000, compared to $619,000 and $658,000 for the quarters ended March 31, 2014 and June 30, 2013, respectively. Over the past several years we have increased our marketing investments to raise the level of visibility of our brand. To leverage this increased brand visibility, we are continuing to fund marketing and sales initiatives to accelerate demand for our banking solutions.

"Other real estate owned" and loan-related charges were $297,000 for the quarter ended June 30, 2014, compared to $329,000 and $352,000 for the quarters ended March 31, 2014 and June 30, 2013, respectively.

Regulatory assessments related to FDIC insurance for deposit balances, totaled $323,000 for the quarter ended June 30, 2014, compared to $351,000 for the quarter ended March 31, 2014 and $294,000 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 63.39%, 67.64%, and 60.41% for the quarters ended June 30, 2014, March 31, 2014, and June 30, 2013, respectively.

Balance Sheet

Bridge Capital Holdings reported total assets at June 30, 2014 of $1.63 billion, compared to $1.62 billion at March 31, 2014 and $1.46 billion on the same date one year ago. The increase in total assets of $10.7 million, or 1%, from March 31, 2014 was driven by an increase in both the loan portfolio and investment securities.

The Company reported total gross loans outstanding at June 30, 2014 of $1.18 billion, which represented an increase of $36.0 million, or 3%, over $1.14 billion at March 31, 2014, and an increase of $181.0 million, or 18%, over $999.8 million at June 30, 2013. The increase in total gross loans from March 31, 2014 was primarily attributable to the growth in commercial and real estate loans. The increase in loans from June 30, 2013 was broad-based throughout the portfolio, with the most significant growth reflected in the commercial lending portfolio.

The Company's total deposits were $1.42 billion as of June 30, 2014, which represented an increase of $7.8 million, or 1%, compared to $1.42 billion at March 31, 2014 and an increase of $147.1 million, or 12%, compared to $1.28 billion at June 30, 2013. The increase in deposits from March 31, 2014 was primarily attributable to an increase in Money Market and Savings accounts, while the increase from June 30, 2013 was primarily attributable to growth in non-interest bearing demand deposit accounts.

Demand deposits represented 68.8% of total deposits at June 30, 2014, compared to 69.9% at March 31, 2014 and 62.6% for the same period one year ago. Core deposits represented 97.6% of total deposits at June 30, 2014, compared to 97.0% at March 31, 2014 and 96.0% at June 30, 2013.

Credit Quality

Nonperforming assets were $12.9 million, or 0.79% of total assets, as of June 30, 2014, compared to $11.9 million, or 0.73% of total assets, as of March 31, 2014, and $16.2 million, or 1.11% of total assets, at June 30, 2013. The nonperforming assets at June 30, 2014 consisted of loans on nonaccrual or 90 days or more past due totaling $12.9 million and OREO valued at $23,000.

Nonperforming loans at June 30, 2014 were comprised of loans with legal contractual balances totaling approximately $18.6 million reduced by $2.1 million received in non-accrual interest and impairment charges of $3.6 million which have been charged against the allowance for credit losses.

Nonperforming loans were $12.9 million, or 1.09% of total gross loans, as of June 30, 2014, compared to $11.8 million, or 1.03% of total gross loans, as of March 31, 2014, and $16.2 million, or 1.62% of total gross loans, at June 30, 2013. The increase in non-performing loans from prior quarter was primarily attributable to one commercial relationship.

The carrying value of OREO was $23,000 as of June 30, and March 31, 2014, and was $31,000 at June 30, 2013.

The allowance for loan losses was $23.1 million, or 1.96% of total loans, at June 30, 2014, compared to $22.7 million, or 1.98% of total loans, at March 31, 2014, and $20.5 million, or 2.05% of total loans, at June 30, 2013. The provision for credit losses was $1.5 million for the second quarter of 2014, compared to $500,000 for the quarter ended March 31, 2014 and $5.1 million for the same period one year ago.

The Company charged-off $1.3 million in loan balances during the three months ended June 30, 2014, compared to $465,000 charged-off during the three months ended March 31, 2014, and $5.4 million charged-off during the three months ended June 30, 2013.

During the three months ended June 30, 2014, the Company recognized $222,000 in loan recoveries compared to $686,000 and $26,000, respectively, in loan recoveries for the three months ended March 31, 2014 and June 30, 2013.

Capital Adequacy

The Company's capital ratios at June 30, 2014 substantially exceed the regulatory definition for being "well capitalized" with a Total Risk-Based Capital Ratio of 14.00%, a Tier I Risk-Based Capital Ratio of 12.74%, and a Tier I Leverage Ratio of 11.74%. Additionally, the Company's tangible common equity ratio at June 30, 2014 was 10.66% and book value per common share was $10.93, representing an increase of $0.35, or 3.3%, from $10.58 at March 31, 2014 and an increase of $1.14, or 11.7%, from $9.79 at June 30, 2013.

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 888-317-6016 from the United States, or 412-317-6016 from outside the United States and asking to be joined to the "Bridge Capital Holdings" conference call. 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 July 30, 2014, by dialing 877-344-7529 from the United States, or 412-317-0088 from outside the United States, and entering access code 10049539. A webcast replay will be available for at least 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 $500 million and $5 billion, 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.

-Financial Tables Follow -

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
         
 
 
Three months ended Six months ended
  06/30/14     03/31/14     06/30/13     06/30/14     06/30/13  
 
INTEREST INCOME
Loans $ 18,192 $ 17,047 $ 15,926 $ 35,239 $ 30,397
Federal funds sold 84 78 69 162 112
Investment securities 1,494 1,502 1,221 2,996 2,855
Other   1     -     -     1     -  
Total interest income   19,771     18,627     17,216     38,398     33,364  
 
INTEREST EXPENSE
Deposits 276 338 367 614 705
Other   268     269     272     537     539  
Total interest expense   544     607     639     1,151     1,244  
 
Net interest income 19,227 18,020 16,577 37,247 32,120
Provision for credit losses   1,500     500     5,300     2,000     6,050  

Net interest income after provision for credit losses

  17,727     17,520     11,277     35,247     26,070  
 
NON-INTEREST INCOME
Service charges on deposit accounts 978 916 920 1,894 1,793
International Fee Income 801 761 672 1,562 1,307
Gain on sale of SBA loans 1,113 213 1,278 1,326 1,678
Other non-interest income   1,088     858     1,886     1,946     2,897  
Total non-interest income   3,980     2,748     4,756     6,728     7,675  
 
OPERATING EXPENSES
Salaries and benefits 9,414 9,015 8,155 18,429 15,715
Premises and fixed assets 1,225 1,238 997 2,463 1,979
Other   4,073     3,794     3,736     7,867     7,052  
Total operating expenses   14,712     14,047     12,888     28,759     24,746  
 
Income before income taxes 6,995 6,221 3,145 13,216 8,998
Income tax expense 2,728 2,505 1,302 5,233 3,734
         
NET INCOME $ 4,267   $ 3,716   $ 1,843   $ 7,983   $ 5,264  
 
 
EARNINGS PER SHARE
Basic earnings per share $ 0.29   $ 0.25   $ 0.13   $ 0.54   $ 0.37  
Diluted earnings per share $ 0.27   $ 0.24   $ 0.12   $ 0.51   $ 0.35  
Average common shares outstanding   14,778,624     14,646,573     14,427,497     14,712,963     14,419,229  

Average common and equivalent shares outstanding

  15,545,090     15,462,649     15,113,187     15,510,201     15,090,598  
 
 
PERFORMANCE MEASURES
Return on average assets 1.07 % 0.97 % 0.52 % 1.02 % 0.77 %
Return on average equity 9.98 % 9.09 % 4.79 % 9.55 % 6.99 %
Efficiency ratio 63.39 % 67.64 % 60.41 % 65.40 % 62.18 %
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
         
 
 
  06/30/14     03/31/14     12/31/13     09/30/13     06/30/13  
 
ASSETS
Cash and due from banks $ 33,796 $ 30,799 $ 23,958 $ 31,439 $ 25,387
Federal funds sold 82,635 123,724 162,379 116,640 142,310
Interest-bearing deposits 326 326 326 326 326
Investment securities 295,205 281,527 307,378 281,741 258,090
Loans:
Commercial 664,806 628,190 585,559 537,822 514,363
SBA 116,862 117,967 106,406 106,383 93,839
Real estate construction 70,232 62,360 51,518 43,289 47,410
Land and land development 16,658 13,554 13,572 12,576 12,696
Real estate other 130,000 129,447 122,063 128,445 142,139
Factoring and asset-based lending 176,101 187,319 192,783 178,901 184,289
Other   6,146     5,923     5,730     6,541     5,086  
Loans, gross 1,180,805 1,144,760 1,077,631 1,013,957 999,822
Unearned fee income (3,845 ) (4,701 ) (4,727 ) (4,441 ) (4,302 )
Allowance for credit losses   (23,116 )   (22,665 )   (21,944 )   (20,969 )   (20,470 )
Loans, net 1,153,844 1,117,394 1,050,960 988,547 975,050
Premises and equipment, net 3,587 2,850 2,081 1,856 1,977
Accrued interest receivable 4,323 4,390 4,323 4,088 3,981
Other assets   53,457     55,428     52,707     49,357     56,201  
Total assets $ 1,627,173   $ 1,616,438   $ 1,604,112   $ 1,473,994   $ 1,463,322  
 
LIABILITIES
Deposits:
Demand noninterest-bearing $ 970,941 $ 981,406 $ 954,727 $ 819,784 $ 789,382
Demand interest-bearing 8,373 8,404 11,115 9,213 9,761
Money market and savings 410,565 384,364 391,310 403,916 426,539
Time   33,833     41,782     48,940     48,909     50,932  
Total deposits   1,423,712     1,415,956     1,406,092     1,281,822     1,276,614  
 
Junior subordinated debt securities 17,527 17,527 17,527 17,527 17,527
Accrued interest payable 8 9 10 10 10
Other liabilities   12,521     15,189     17,736     17,907     15,208  
Total liabilities   1,453,768     1,448,681     1,441,365     1,317,266     1,309,359  
 
SHAREHOLDERS' EQUITY
Common stock 114,053 113,081 112,714 112,120 110,883
Retained earnings 59,929 55,662 51,946 46,926 42,499

Accumulated other comprehensive income / (loss)

  (577 )   (986 )   (1,913 )   (2,318 )   581  
Total shareholders' equity   173,405     167,757     162,747     156,728     153,963  
Total liabilities and shareholders' equity $ 1,627,173   $ 1,616,438   $ 1,604,112   $ 1,473,994   $ 1,463,322  
 
CAPITAL ADEQUACY
Tier I leverage ratio 11.74 % 11.71 % 11.61 % 11.84 % 11.71 %
Tier I risk-based capital ratio 12.74 % 12.51 % 12.70 % 13.76 % 13.41 %
Total risk-based capital ratio 14.00 % 13.76 % 13.96 % 15.01 % 14.80 %

Total equity / total assets

10.66 % 10.38 % 10.15 % 10.63 % 10.52 %
Book value per common share $ 10.93 $ 10.58 $ 10.26 $ 9.94 $ 9.79
 
Outstanding shares 15,868,525 15,854,180 15,859,098 15,763,343 15,734,460
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
           
 
 
 
Three months ended June 30,
2014 2013
 
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 1,131,856 6.45 % $ 18,192 $ 984,030 6.49 % $ 15,926
Federal funds sold 115,636 0.29 % 84 117,134 0.24 % 69
Investment securities 285,180 2.10 % 1,494 263,395 1.86 % 1,221
Other   326 1.23 %   1   313 0.00 %   -
Total interest earning assets   1,532,998 5.17 %   19,771   1,364,872 5.06 %   17,216
 
Noninterest-earning assets:
Cash and due from banks 26,574 25,831
All other assets (3)   34,786   38,268

TOTAL

$ 1,594,358 $ 1,428,971
 

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:
Deposits:
Demand $ 9,541 0.04 % $ 1 $ 11,191 0.04 % $ 1
Money market and savings 390,699 0.22 % 217 429,403 0.28 % 301
Time 42,233 0.55 % 58 49,423 0.53 % 65
Other   17,527 6.13 %   268   20,824 5.24 %   272
Total interest-bearing liabilities   460,000 0.47 %   544   510,841 0.50 %   639
 
Noninterest-bearing liabilities:
Demand deposits 946,964 748,794

Accrued expenses and other liabilities

15,981 15,082
Shareholders' equity   171,413   154,254
TOTAL $ 1,594,358 $ 1,428,971
       
Net interest income and margin 5.03 % $ 19,227 4.87 % $ 16,577
 

(1)

Loan fee amortization of $3.5 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 $22.8 million and $19.3 million, respectively.

 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
           
 
 
 
Three months ended June 30,   Three months ended March 31,
2014 2014
 
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 1,131,856 6.45 % $ 18,192 $ 1,082,993 6.38 % $ 17,047
Federal funds sold 115,636 0.29 % 84 113,062 0.28 % 78
Investment securities 285,180 2.10 % 1,494 292,594 2.08 % 1,502
Other   326 1.23 %   1   326 0.00 %   -
Total interest earning assets   1,532,998 5.17 %   19,771   1,488,975 5.07 %   18,627
 
Noninterest-earning assets:
Cash and due from banks 26,574 26,549
All other assets (3)   34,786   31,504
TOTAL $ 1,594,358 $ 1,547,028
 

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:
Deposits:
Demand $ 9,541 0.04 % $ 1 $ 8,568 0.05 % $ 1
Money market and savings 390,699 0.22 % 217 388,723 0.29 % 277

Time

42,233 0.55 % 58 43,416 0.56 % 60

Other

  17,527 6.13 %   268   27,805 3.92 %   269
Total interest-bearing liabilities   460,000 0.47 %   544   468,512 0.53 %   607
 
Noninterest-bearing liabilities:
Demand deposits 946,964 895,265

Accrued expenses and other liabilities

15,981 17,439
Shareholders' equity   171,413   165,812
TOTAL $ 1,594,358 $ 1,547,028
       
Net interest income and margin 5.03 % $ 19,227 4.91 % $ 18,020
 

(1)

Loan fee amortization of $3.5 million and $2.8 million, respectively, is included in interest income. Nonperforming loans have been included in average loan balances.

(2)

Interest income is reflected on an actual basis, not a fully taxable equivalent basis. Yields are based on amortized cost.

(3)

Net of average allowance for credit losses of $22.8 million and $22.5 million, respectively.

 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
           
 
 
 
Six months ended June 30,
2014 2013
 
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 1,107,560 6.42 % $ 35,239 $ 939,547 6.52 % $ 30,397
Federal funds sold 114,356 0.29 % 162 95,595 0.24 % 112
Investment securities 288,866 2.09 % 2,996 271,874 2.12 % 2,855
Other   326 0.62 %   1   321 0.00 %   -
Total interest earning assets   1,511,108 5.12 %   38,398   1,307,337 5.15 %   33,364
 
Noninterest-earning assets:
Cash and due from banks 26,561 25,229
All other assets (3)   33,155   37,829
TOTAL $ 1,570,824 $ 1,370,395
 

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing liabilities:
Deposits:
Demand $ 9,057 0.02 % $ 1 $ 10,351 0.02 % $ 1
Money market and savings 389,717 0.26 % 495 395,228 0.29 % 574
Time 42,821 0.56 % 118 48,523 0.54 % 129
Other   22,637 4.78 %   537   20,621 5.28 %   540
Total interest-bearing liabilities   464,232 0.50 %   1,151   474,723 0.53 %   1,244
 
Noninterest-bearing liabilities:
Demand deposits 921,257 728,271

Accrued expenses and other liabilities

16,707 15,565
Shareholders' equity   168,628   151,836
TOTAL $ 1,570,824 $ 1,370,395
       
Net interest income and margin 4.97 % $ 37,247 4.95 % $ 32,120
 

(1)

Loan fee amortization of $6.3 million and $4.8 million, respectively, is included in interest income. Nonperforming loans have been included in average loan balances.

(2)

Interest income is reflected on an actual basis, not a fully taxable equivalent basis. Yields are based on amortized cost.

(3)

Net of average allowance for credit losses of $22.6 million and $19.6 million, respectively.

 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
(Dollars in Thousands)
         
 
 
 
  06/30/14     03/31/14     12/31/13     09/30/13     06/30/13  
 
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period $ 22,665 $ 21,944 $ 20,969 $ 20,470 $ 20,543
Provision for credit losses, quarterly 1,500 500 - - 5,300
Charge-offs, quarterly (1,271 ) (465 ) (850 ) (1,660 ) (5,399 )
Recoveries, quarterly   222     686     1,825     2,159     26  
Balance, end of period $ 23,116   $ 22,665   $ 21,944   $ 20,969   $ 20,470  
 
 
 
 
NONPERFORMING ASSETS
Loans accounted for on a non-accrual basis $ 12,901 $ 11,835 $ 15,115 $ 15,533 $ 16,160

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

  -     -     -     -     -  
Nonperforming loans 12,901 11,835 15,115 15,533 16,160
Other real estate owned   23     23     31     31     31  
Nonperforming assets $ 12,924   $ 11,858   $ 15,146   $ 15,564   $ 16,191  
 

Loans restructured and in compliance with modified terms

  5,502     5,535     5,569     5,652     5,708  
Nonperforming assets and restructured loans $ 18,426   $ 17,393   $ 20,715   $ 21,216   $ 21,899  
 
 
Nonperforming Loans by Asset Type:
Commercial $ 2,740 $ 59 $ 452 $ 95 $ 195
SBA 1,962 1,746 1,738 1,770 1,884
Construction - - - - -
Land - - 4 5 7
Other real estate 6,882 7,159 7,290 7,549 10,390
Factoring and asset-based lending 1,317 2,871 5,631 6,114 3,684
Other   -     -     -     -     -  
Nonperforming loans $ 12,901   $ 11,835   $ 15,115   $ 15,533   $ 16,160  
 
 
 
 
ASSET QUALITY
Allowance for credit losses / gross loans 1.96 % 1.98 % 2.04 % 2.07 % 2.05 %
Allowance for credit losses / nonperforming loans 179.18 % 191.51 % 145.18 % 135.00 % 126.67 %
Nonperforming assets / total assets 0.79 % 0.73 % 0.94 % 1.06 % 1.11 %
Nonperforming loans / gross loans 1.09 % 1.03 % 1.40 % 1.53 % 1.62 %
Net quarterly charge-offs / gross loans 0.09 % -0.02 % -0.09 % -0.05 % 0.54 %

Source: Bridge Capital Holdings



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