Bridge Capital Holdings Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2009
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Conference Call and Webcast Scheduled for Monday, November 2, 2009 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 third quarter and nine months ended September 30, 2009.
The Company reported an operating profit of $539,000 for the three months ended September 30, 2009, representing an improvement of $9.7 million compared to an operating loss of $(9.2) million for the same period one year ago. The operating profit for the third quarter of 2009 was reduced by preferred dividends of $1.1 million resulting in a net loss available to common shareholders of $(525,000), or $(0.08) per diluted common share. This represented an improvement of $8.7 million compared to a net loss available to common shareholders of $(9.2) million, or $(1.41) per diluted common share, for the same period one year ago. There were no preferred dividends during the third quarter of 2008.
The Company reported an operating profit of $30,000 for the nine months ended September 30, 2009, representing an improvement of $9.0 million compared to an operating loss of $(9.0) million for the same period one year ago. The operating profit for the first nine months of 2009 was reduced by preferred dividends of $3.1 million resulting in a net loss available to common shareholders of $(3.1) million, or $(0.47) per diluted common share. This represented an improvement of $5.9 million compared to a net loss available to common shareholders of $(9.0) million, or $(1.38) per diluted common share, for the same period one year ago. There were no preferred dividends during the first nine months of 2008.
"One year ago we set out to aggressively reduce the risk profile of our business, and the third quarter reflects the results of this work," said Daniel P. Myers, President and Chief Executive Officer of Bridge Capital Holdings and Bridge Bank. "In the past year we have reduced land and construction exposure by more than 52% while building our allowance and capital ratios. Our aggressive remediation of the land and construction portfolio, along with stable asset quality in our other portfolios, has enabled the Company to dramatically reduce our credit costs. We have also been able to significantly improve our deposit mix, with non-interest bearing demand deposits increasing by more than $38.0 million during the third quarter of 2009. The reduced credit costs and improved deposit mix helped drive our return to profitability on an operating basis for both the quarter and year to date. Certainly our operating environment continues to present considerable challenges, but we are confident that the extraordinary efforts of our professional Bridge Bankers have positioned our Company to weather the remaining cycle and emerge strongly as the economy begins to recover."
Third Quarter Highlights
-- Operating profit improved $9.7 million compared to the same quarter one
year earlier on lower provisions for loan losses.
-- Provision for loan losses decreased $18.3 million to $650,000 during the
third quarter of 2009 compared to $19.0 million for the same period one
year ago. Net charge-offs of $1.7 million were at the lowest level in
six quarters.
-- The allowance for credit losses at September 30, 2009 was 2.95% of gross
loans, consistent with 2.96% at June 30, 2009; however it was 14% higher
than the level of 2.59% one year earlier. At September 30, 2009 the
allowance for credit losses represented coverage of 60.99% of
nonperforming loans.
-- Nonperforming assets increased to $32.1 million, or 3.84% of total
assets, as of September 30, 2009 from $29.4 million, or 3.55% of total
assets at June 30, 2009.
-- Construction and land development loans together decreased $72.0
million, or 52%, from one year ago, which includes a decrease of $27.6
million, or 67%, in land development loans.
-- Capital ratios substantially exceed the regulatory calculation for being
"well capitalized" with a Total Risk-Based Capital Ratio of 19.57%, a
Tier I Capital Ratio of 15.32%, and a Tier I Leverage Ratio of 12.38%.
-- Total assets were $834.8 million as of September 30, 2009, representing
a decrease of $20.6 million, or 2%, from $855.4 million on the same date
one year ago. This also represents an increase of $5.3 million from
$829.3 million in total assets at June 30, 2009.
-- Total deposits decreased $46.7 million, or 6%, to $692.1 million as of
September 30, 2009 compared to $738.7 million on the same date one year
ago and increased slightly over $689.1 million at June 30, 2009.
-- Demand deposits and core deposits represented 45.9% and 83.3%,
respectively, of total deposits at September 30, 2009.
For the quarter ended September 30, 2009, the Company's return on average assets and return on average equity were 0.25% and 1.96%, respectively, compared to (4.27)% and (54.48)%, respectively, for the same period in 2008. Return on average assets and return on average equity for the nine months ended September 30, 2009 were 0.00% and 0.04%, respectively, compared to (1.48)% and (17.69)%, respectively, for the same period one year earlier.
Net Interest Income and Margin
Net interest income of $9.0 million for the quarter ended September 30, 2009 represented a decrease of approximately $2.0 million, or 18%, from $11.0 million for the same quarter one year earlier and was primarily attributable to the decrease in short-term interest rates, lower balance sheet leverage and increased levels of nonperforming loans. Average earning assets of $813.6 million for the quarter ended September 30, 2009 decreased $7.6 million, or 1%, compared to $821.2 million for the same quarter in 2008. The Company's loan-to-deposit ratio, a measure of leverage, averaged 82.48% during the quarter ended September 30, 2009, which represented a decrease compared to an average of 92.41% for the same quarter of 2008.
For the nine months ended September 30, 2009, net interest income of $28.3 million represented a decline of $6.4 million, or 18%, from $34.7 million for the first nine months of 2008 and was primarily attributable to the decrease in short-term interest rates, lower balance sheet leverage and increased levels of nonperforming loans. Average earning assets of $832.1 million for the nine months ended September 30, 2009 increased $59.3 million, or 8%, compared to $772.8 million for the same period one year ago. The Company's loan-to-deposit ratio, a measure of leverage, averaged 87.27% during the nine months ended September 30, 2009, which represented a decrease compared to an average of 95.73% for the same period of 2008.
Changes in short-term interest rates impact growth in net interest income as the interest rate earned on a majority of the Company's assets, specifically the loan portfolio, adjust with changes in short-term market rates. As such, the nature of the Company's balance sheet is that over time as short-term interest rates change, income on interest earning assets has a greater impact on net interest income than interest paid on liabilities. The Company's prime rate averaged 3.25% and 3.25%, respectively, in the quarter and nine months ended September 30, 2009 compared to 5.00% and 5.43%, respectively, in the same periods one year earlier.
The Company's net interest margin for the quarter ended September 30, 2009 was 4.38% compared to 5.32% for the same period one year earlier. The decline was primarily due to lower short-term interest rates and lower balance sheet leverage. In addition, an increased level of nonperforming assets resulted in a negative impact of approximately 29 basis points in the third quarter of 2009 from reversed or foregone interest.
The net interest margin for the nine months ended September 30, 2009 was 4.55% compared to 6.01% for the nine months ended September 30, 2008. The decline was also primarily the result of lower short-term interest rates and lower balance sheet leverage. Nonperforming loans had a negative impact on net interest margin of approximately 24 basis points in 2009.
Non-Interest Income
The Company's non-interest income for the quarter and nine months ended September 30, 2009 was $1.7 million and $8.0 million, respectively, compared to $2.0 million and $5.3 million, respectively, for the same periods one year ago. The decrease in non-interest income for the third quarter of 2009 compared to the same period one year ago was primarily due to a gain of $413,000 recognized on the sale of securities during 2008, offset in part by increased deposit service charges during 2009. The increase in non-interest income for the nine months ended September 30, 2009 compared to the same period one year ago was primarily attributable to the recognition of $3.2 million from the acceleration of the deferred gain on interest rate swaps terminated during the fourth quarter of 2008. Excluding the impact of accounting related to hedging strategies, non-interest income is primarily comprised of foreign exchange fee income, deposit service charges, gains on the sale of "other real estate owned," gains on the sale of securities, and gains on the sale of SBA loans.
Net interest income and non-interest income comprised total revenue of $10.7 million for the three months ended September 30, 2009 compared to $12.9 million for the same period one year earlier, representing a decrease of $2.3 million, or 18%. For the nine months ended September 30, 2009, total revenue of $36.4 million represented a decrease of $3.7 million, or 9%, from $40.1 million for the nine months ended September 30, 2008.
Non-Interest Expense
Non-interest expense was $9.2 million and $28.0 million for the quarter and nine months ended September 30, 2009, respectively, compared to $9.8 million and $28.0 million, respectively, for the same periods in 2008.
Salary and benefits expense for the quarter ended September 30, 2009 was $5.1 million, representing a decrease of $779,000 from $5.9 million in the same period of 2008. Salary and benefits expense for the nine months ended September 30, 2009 was $15.7 million, a decrease of $1.7 million from $17.4 million in the same period of 2008. As of September 30, 2009 the Company employed 163 full-time equivalents (FTE) compared to 170 FTE on the same date one year earlier.
The Company's efficiency ratio, the ratio of non-interest expense to revenues, was 86.15% and 77.04% for the quarter and nine months ended September 30, 2009 compared to 75.74% and 69.98%, respectively, in the same periods one year earlier.
Balance Sheet
Bridge Capital Holdings reported total assets at September 30, 2009 of $834.8 million, compared to $855.4 million on the same date one year ago. The decrease in total assets represented a decline of $20.6 million, or 2%, compared to September 30, 2008. Total assets at September 30, 2009 compared to $947.6 million at December 31, 2008 representing a decrease of $112.8 million, or 12%.
The Company's total deposits were $692.1 million as of September 30, 2009, compared to total deposits of $738.7 million as of September 30, 2008. The decrease in deposits was $46.7 million, or 6%, compared to September 30, 2008. Demand deposits represented 45.9% of total deposits at September 30, 2009, up from 30.9% at September 30, 2008.
The Company reported total gross loans outstanding at September 30, 2009 of $573.7 million, which represented a decrease of $113.0 million, or 17%, from $686.7 million for the same date one year earlier. The decrease in gross loans included a decrease of $72.0 million, or 52%, in construction and land development loans. In addition, de-leveraging by commercial borrowers resulted in a decrease in commercial and industrial loan balances of $29.1 million, or 10%.
Credit Quality
At September 30, 2009, nonperforming assets totaled $32.1 million, or 3.84% of total assets, compared to $29.4 million, or 3.55% of total assets as of June 30, 2009, and $20.2 million, or 2.36% of total assets, on the same date one year earlier. The nonperforming assets at September 30, 2009 consisted of loans on nonaccrual or 90 days or more past due totaling $27.7 million, and other real estate owned valued at $4.3 million. Nonperforming loans at September 30, 2009 were comprised of loans with legal contractual balances totaling approximately $41.4 million reduced by impairment charges of $13.7 million which have been charged against the allowance for credit losses.
The Company charged-off $1.7 million during the three months ended September 30, 2009 compared to $15.9 million charged-off during the three months ended September 30, 2008. During the nine months ended September 30, 2009, the Company charged-off balances totaling $10.3 million which compared to $18.4 million charged-off during the same period of 2008. During the three and nine months ended September 30, 2009 the Company recognized $11,000 and $319,000, respectively, in loan recoveries compared to $34,000 and $35,000, respectively, in loan recoveries during the same periods of 2008.
Construction and land development loans together totaled approximately $66.4 million as of September 30, 2009, compared to $138.4 million one year earlier, representing a decrease of $72.0 million or 52%. Land development loans decreased by $27.6 million, or 67%, from $41.1 million at September 30, 2008 to $13.5 million on September 30, 2009. During the same period, unfunded commitments on construction and land development loans decreased by $35.9 million.
"In the third quarter of 2009 alone we reduced construction and land development exposure by $28 million, or 30%, primarily as a result of pay-downs," said Thomas A. Sa, Executive Vice President and Chief Financial Officer of Bridge Capital Holdings. "In addition, construction and land development loans comprise $22 million, or nearly 81%, of nonperforming loans. On average these loans have been written down by over 30% of their original contractual balance. This practice strongly supports the level of allowance for loan losses at 2.95% of loans."
The allowance for loan losses was $16.9 million, or 2.95% of total loans, at September 30, 2009, compared to $17.8 million, or 2.59% of total loans, at September 30, 2008. The provision for credit losses for the three and nine months ended September 30, 2009 was $650,000 and $8.3 million, respectively, compared to $19.0 million and $27.6 million, respectively, for the same periods in 2008.
Capital Adequacy
At September 30, 2009, shareholders' equity in the Company totaled $108.7 million, which included approximately $53.9 million in preferred stock and $(617,000) in other comprehensive income/(loss). Shareholders' equity at September 30, 2009 compared to $57.7 million on the same date one year earlier. The increase was the result of capital raised in the fourth quarter of 2008 in the form of $30.0 million of mandatorily convertible preferred stock and $23.8 million of preferred stock issued under the US Treasury's Capital Purchase Program.
In October, the Company elected to exercise its rights under the mandatorily convertible preferred stock to defer the dividend payment of $750,000 that was due on October 15, 2009. The dividend is cumulative and shareholders' equity at September 30, 2009 has been reduced for its future payment, which may be effected in cash or the distribution of common shares of equivalent value.
The Company's tangible common equity ratio was 6.57% at September 30, 2009 compared to 6.19% at December 31, 2008. The Company's Total Risk-Based Capital Ratio, Tier I Capital Ratio, and Tier I Leverage Ratio of 19.57%, 15.32%, and 12.38%, respectively, were all substantially above the regulatory standards for "well-capitalized" institutions.
Conference Call and Webcast
Management will host a conference call today, November 2, 2009 at 5:00 p.m. Eastern time/2:00 p.m. Pacific time to further discuss the Company's financial results and answer questions.
Individuals interested in participating in the conference call may do so by dialing 800-891-6020 from the United States, or 702-696-4830 from outside the United States. Those interested in listening to the conference call live via the Internet may do so by visiting the Investor Relations section of the Company's Web site at www.bridgebank.com.
A telephone replay will be available through November 16, 2009 by dialing 800-642-1687 from the United States, or 706-645-9291 from outside the United States, and entering the conference ID 37034175. 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, National Association
Bridge Bank, National Association is Silicon Valley's full-service professional business bank. The Bank is dedicated to meeting the financial needs of small, middle market, and emerging technology businesses. Bridge Bank provides its clients with a comprehensive package of business banking solutions delivered through experienced, professional bankers. For additional information, visit the Bridge Bank website at http://www.bridgebank.com.
Forward-Looking Statements
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by that Act. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Examples of forward-looking statements include, but are not limited to: statements concerning future profitability or financial performance; statements concerning the adequacy of loan loss reserves or capital; statements of plans and expectations of the Company or its management or board of directors, including those relating to products or services; and stated assumptions underlying such statements. 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. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof.
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; the length and severity of current difficulties in the national and California economies and the effects of federal and state government efforts to address those difficulties; changes in interest rates; fluctuations in assets prices including, but not limited to, stocks, bonds and real estate; new litigation or changes in existing litigation; future credit loss experience; increased competitive challenges and expanding product and pricing pressures among financial institutions; changes in legislation, regulations or the regulatory environment which adversely affect the Company's operations or business, including without limitation those relating to the TARP Capital Purchase Program and related executive compensation requirements; loss of key personnel; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; operational risks including data processing system failures; 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.
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended Nine months ended
09/30/09 06/30/09 09/30/08 09/30/09 09/30/08
INTEREST
INCOME
Loans $ 10,181 $ 11,263 $ 13,632 $ 33,218 $ 43,107
Federal 106 82 512 300 835
funds sold
Investment
securities 117 29 69 146 1,204
available
for sale
Other 111 102 45 287 81
Total
interest 10,515 11,476 14,258 33,951 45,227
income
INTEREST
EXPENSE
Deposits 1,262 1,437 2,980 4,530 9,595
Other 261 346 291 1,086 889
Total
interest 1,523 1,783 3,271 5,616 10,484
expense
Net interest 8,992 9,693 10,987 28,335 34,743
income
Provision
for credit 650 4,000 19,000 8,300 27,570
losses
Net interest
income after
provision 8,342 5,693 (8,013 ) 20,035 7,173
for credit
losses
NON-INTEREST
INCOME
Service
charges on 498 476 327 1,394 814
deposit
accounts
Gain on sale 220 287 87 611 556
of SBA loans
Other
non-interest 971 1,563 1,541 6,014 3,971
income
Total
non-interest 1,689 2,326 1,955 8,019 5,341
income
OPERATING
EXPENSES
Salaries and 5,081 5,101 5,859 15,749 17,421
benefits
Premises and 1,118 1,104 1,163 3,336 3,424
fixed assets
Other 3,003 3,138 2,780 8,923 7,204
Total
operating 9,202 9,343 9,802 28,008 28,049
expenses
Income
before 829 (1,324 ) (15,860 ) 46 (15,535 )
income taxes
Income taxes 290 (482 ) (6,655 ) 16 (6,525 )
NET INCOME $ 539 $ (842 ) $ (9,205 ) $ 30 $ (9,010 )
Preferred 1,064 1,057 - 3,138 -
dividends
Net income
available to $ (525 ) $ (1,899 ) $ (9,205 ) $ (3,108 ) $ (9,010 )
common
shareholders
EARNINGS PER
SHARE
Basic
earnings per $ (0.08 ) $ (0.29 ) $ (1.41 ) $ (0.47 ) $ (1.38 )
share
Diluted
earnings per $ (0.08 ) $ (0.29 ) $ (1.41 ) $ (0.47 ) $ (1.38 )
share
Average
common 6,571,479 6,571,479 6,533,545 6,571,479 6,487,200
shares
outstanding
Average
common and
equivalent 6,571,479 6,571,479 6,533,545 6,571,479 6,487,200
shares
outstanding
PERFORMANCE
MEASURES
Return on
average 0.25 % -0.39 % -4.27 % 0.00 % -1.48 %
assets
Return on
average 1.96 % -3.04 % -54.48 % 0.04 % -17.69 %
equity
Efficiency 86.15 % 77.74 % 75.74 % 77.04 % 69.98 %
ratio
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
09/30/09 06/30/09 03/31/09 12/31/08 09/30/08
ASSETS
Cash and due from $ 15,327 $ 18,295 $ 16,637 $ 18,421 $ 21,286
banks
Federal funds sold 157,845 122,500 169,080 199,525 113,735
Interest-bearing 19,120 24,520 16,539 7,268 4,915
deposits
Investment
securities 40,761 32,517 - - 101
available for sale
Loans:
Commercial 257,703 261,927 282,782 301,024 286,793
SBA 59,606 60,885 70,339 77,043 69,921
Real estate 52,888 79,738 90,268 98,105 97,255
construction
Land and land 13,530 14,224 19,066 23,535 41,136
development
Real estate other 135,326 136,016 137,960 134,767 130,845
Factoring and 48,413 47,790 45,295 55,761 50,006
asset-based lending
Other 6,228 5,960 10,407 9,371 10,767
Loans, gross 573,694 606,540 656,117 699,606 686,723
Unearned fee income (1,518 ) (1,437 ) (1,361 ) (1,601 ) (1,817 )
Allowance for (16,922 ) (17,968 ) (18,155 ) (18,554 ) (17,764 )
credit losses
Loans, net 555,254 587,135 636,601 679,451 667,142
Premises and 3,909 4,169 4,504 4,790 5,044
equipment, net
Accrued interest 2,825 2,723 2,672 3,137 3,217
receivable
Other assets 39,787 37,477 35,558 35,004 39,967
Total assets $ 834,828 $ 829,336 $ 881,591 $ 947,596 $ 855,407
LIABILITIES
Deposits:
Demand $ 313,228 $ 274,633 $ 286,749 $ 284,319 $ 223,843
noninterest-bearing
Demand 4,255 4,486 4,163 4,267 4,224
interest-bearing
Money market and 259,282 280,262 296,828 335,200 404,212
savings
Time 115,294 129,740 145,358 153,459 106,460
Total deposits 692,059 689,121 733,098 777,245 738,739
Junior subordinated 17,527 17,527 17,527 17,527 17,527
debt securities
Other borrowings - - 10,000 30,000 30,000
Accrued interest 337 365 412 511 274
payable
Other liabilities 16,204 13,079 10,231 9,823 11,176
Total liabilities 726,127 720,092 771,268 835,106 797,716
SHAREHOLDERS'
EQUITY
Preferred stock 53,864 53,864 53,864 53,864 -
Common stock 40,656 40,301 39,921 39,655 39,139
Retained earnings 14,798 15,334 17,233 17,916 16,399
Accumulated other
comprehensive (617 ) (255 ) (695 ) 1,055 2,153
(loss)
Total shareholders' 108,701 109,244 110,323 112,490 57,691
equity
Total liabilities
and shareholders' $ 834,828 $ 829,336 $ 881,591 $ 947,596 $ 855,407
equity
CAPITAL ADEQUACY
Tier I leverage 12.38 % 12.28 % 11.82 % 12.36 % 8.44 %
ratio
Tier I risk-based 15.32 % 15.08 % 14.20 % 13.31 % 9.02 %
capital ratio
Total risk-based 19.57 % 19.27 % 18.15 % 16.90 % 10.27 %
capital ratio
Total equity/ total 13.02 % 13.17 % 12.51 % 11.87 % 6.74 %
assets
Book value per $ 7.83 $ 7.91 $ 8.18 $ 8.51 $ 8.74
common share
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
Three months ended September 30,
2009 2008
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning
assets (2):
Loans (1) $ 589,343 6.85 % $ 10,181 $ 705,402 7.69 % $ 13,632
Federal funds sold 167,480 0.25 % 106 104,909 1.94 % 512
Investment securities 35,161 1.32 % 117 5,419 5.07 % 69
Other 21,591 2.04 % 111 5,481 3.27 % 45
Total interest earning 813,575 5.13 % 10,515 821,211 6.91 % 14,258
assets
Noninterest-earning
assets:
Cash and due from 15,185 18,154
banks
All other assets (3) 25,487 19,190
TOTAL $ 854,247 $ 858,555
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing
liabilities:
Deposits:
Demand $ 4,349 0.09 % 1 $ 5,340 0.22 % $ 3
Money market and 280,640 0.61 % 435 420,900 1.97 % 2,083
savings
Time 137,139 2.39 % 826 99,290 3.58 % 894
Other 17,527 5.91 % 261 21,386 5.41 % 291
Total interest-bearing 439,655 1.37 % 1,523 546,916 2.38 % 3,271
liabilities
Noninterest-bearing
liabilities:
Demand deposits 292,370 237,831
Accrued expenses and 13,062 6,586
other liabilities
Shareholders' equity 109,160 67,222
TOTAL $ 854,247 $ 858,555
Net interest income 4.38 % $ 8,992 5.32 % $ 10,987
and margin
(1) Loan fee amortization of $833,000 and $1.2 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 $17.7 million and $15.8
million, respectively.
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
Nine months ended September 30,
2009 2008
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning
assets (2):
Loans (1) $ 630,354 7.05 % $ 33,218 $ 684,690 8.41 % $ 43,107
Federal funds sold 169,113 0.24 % 300 52,514 2.12 % 835
Investment securities 14,908 1.31 % 146 32,332 4.97 % 1,204
Other 17,723 2.17 % 287 3,294 3.28 % 81
Total interest earning 832,098 5.46 % 33,951 772,830 7.82 % 45,227
assets
Noninterest-earning
assets:
Cash and due from 18,001 19,062
banks
All other assets (3) 24,230 22,791
TOTAL $ 874,329 $ 814,683
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing
liabilities:
Deposits:
Demand $ 4,632 0.12 % $ 4 $ 5,271 0.25 % $ 10
Money market and 298,868 0.78 % 1,749 390,347 2.28 % 6,662
savings
Time 137,945 2.69 % 2,777 98,349 3.97 % 2,923
Other 29,432 4.93 % 1,086 22,184 5.35 % 889
Total interest-bearing 470,877 1.59 % 5,616 516,151 2.71 % 10,484
liabilities
Noninterest-bearing
liabilities:
Demand deposits 280,830 221,257
Accrued expenses and 11,689 9,258
other liabilities
Shareholders' equity 110,933 68,017
TOTAL $ 874,329 $ 814,683
Net interest income 4.55 % $ 28,335 6.01 % $ 34,743
and margin
(1) Loan fee amortization of $3.2 million and $4.3 million, respectively, is
included in interest income. Nonperforming loans have been included in average
loan balances.
(2) Interest income is reflected on an actual basis, not a fully taxable
equivalent basis. Yields are based on amortized cost.
(3) Net of average allowance for credit losses of $17.9 million and $11.9
million, respectively.
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
(Dollars in Thousands)
09/30/09 06/30/09 03/31/09 12/31/08 09/30/08
ALLOWANCE FOR
CREDIT LOSSES
Balance, beginning $ 17,968 $ 18,155 $ 18,554 $ 17,764 $ 14,608
of period
Provision for
credit losses, 650 4,000 3,650 3,950 19,000
quarterly
Charge-offs, (1,707 ) (4,210 ) (4,334 ) (3,246 ) (15,878 )
quarterly
Recoveries, 11 23 285 86 34
quarterly
Balance, end of $ 16,922 $ 17,968 $ 18,155 $ 18,554 $ 17,764
period
NONPERFORMING
ASSETS
Loans accounted for
on a non-accrual $ 27,745 $ 27,136 $ 23,205 $ 15,772 $ 19,316
basis
Loans with
principal or
interest
contractually past - - 1,437 - -
due 90 days or more
and still accruing
interest
Nonperforming loans 27,745 27,136 24,642 15,772 19,316
Other real estate 4,333 2,268 3,626 1,096 862
owned
Nonperforming $ 32,078 $ 29,404 $ 28,268 $ 16,868 $ 20,178
assets
ASSET QUALITY
Allowance for
credit losses / 2.95 % 2.96 % 2.77 % 2.65 % 2.59 %
gross loans
Allowance for
credit losses / 60.99 % 66.21 % 73.68 % 117.64 % 91.97 %
nonperforming loans
Nonperforming
assets / total 3.84 % 3.55 % 3.21 % 1.78 % 2.36 %
assets
Nonperforming loans 4.84 % 4.47 % 3.76 % 2.25 % 2.81 %
/ gross loans
Net quarterly
charge-offs / gross 0.30 % 0.69 % 0.62 % 0.45 % 2.31 %
loans
Source: Bridge Capital Holdings
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