Form 8-K Bridge Capital Holdings For: Apr 20

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (date of earliest event reported): April 20, 2015

 

Bridge Capital Holdings

(Exact name of registrant as specified in its charter)

 

California		000-50974		80-0123855
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

55 Almaden Boulevard, Suite 200 San Jose, California		95113
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number, including area code: (408) 423-8500

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02.

Results of Operations and Financial Condition.

 

On April 20, 2015 the Company issued a press release disclosing information regarding our results of operations for the three months ended March 31, 2015. A copy of the press release is attached hereto as Exhibit 99.1. Such information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any of our filings, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

 

Item 9.01.

Financial Statements and Exhibits

 

(c)

The exhibit list required by this Item is incorporated by reference to the exhibit index filed as part of this report.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: April 20, 2015	Bridge Capital Holdings
	By:	/s/Thomas A. Sa
		Thomas A. Sa
		Executive Vice President and
		Chief Financial Officer

 

 

EXHIBIT INDEX

 

99.1

Press release dated April 20, 2015 announcing results of operations for the three months ended March 31, 2015.

 

 

 

Exhibit 99.1

 

For Immediate Release: April 20, 2015

 

 

Bridge Capital Holdings Reports Financial Results

For the First Quarter Ended

March 31, 2015

 

Conference Call and Webcast Scheduled for Monday, April 20, 2015 at

5:00 p.m. Eastern Time

 

San Jose, CA – April 20, 2015 – Bridge Capital Holdings (NASDAQ: BBNK), whose subsidiary is Bridge Bank, National Association, announced today its financial results for the first quarter ended March 31, 2015.

 

The Company reported net income of $3.9 million for the three months ended March 31, 2015, representing a decrease of $273,000, or 7%, from $4.2 million for the quarter ended December 31, 2014, and representing an increase of $198,000, or 5%, from net income of $3.7 million for the same period one year ago.

 

For the quarter ended March 31, 2015, the Company reported earnings per diluted share of $0.25, compared with $0.27 for the quarter ended December 31, 2014, and $0.24 for the quarter ended March 31, 2014.

 

For the quarter ended March 31, 2015, the Company’s return on average assets and return on average equity were 0.86% and 8.28%, respectively, and compared to 0.94% and 9.00%, respectively, for the quarter ended December 31, 2014 and 0.97% and 9.09%, respectively, for the same period in 2014.

 

For the quarter ended March 31, 2015, the Company incurred merger related expenses associated with its pending acquisition by Western Alliance Bancorporation of $1.2 million. Excluding merger related expenses, adjusted net income for the quarter ended March 31, 2015 was $4.8 million and adjusted earnings per diluted share were $0.31. The Company’s adjusted returns on average assets and average equity for the quarter ended March 31, 2015 were 1.06% and 10.14%, respectively.

 

“Although the first quarter is typically a seasonally slow period for the Bank, we continued to experience very strong balance sheet growth driven by healthy economic activity in our core markets and our effective marketing and new business development efforts,” said Daniel P. Myers, president and chief executive officer of Bridge Bank, N.A. and Bridge Capital Holdings. “Our commercial loan portfolio increased at a 29% annualized rate during the first quarter, and we had meaningful contributions from all of our regional offices and lending groups, including technology, corporate banking, and our energy and infrastructure group. We also had a strong improvement in our net interest margin after the unusually low margin that we experienced last quarter. The combination of our strong balance sheet growth and higher net interest margin generated significant improvement in our core earnings power, excluding merger-related expenses.

 

“We are working diligently towards the completion of our proposed merger with Western Alliance Bancorp. We believe that Western Alliance is an excellent merger partner that will provide additional resources to continue growing the Bridge Bank brand and enhancing our position as a premier business bank serving the innovation and technology sectors,” said Mr. Myers.

 

 

First Quarter Highlights

 

·

Loan growth continued to be strong, primarily in the commercial lending portfolio. Gross loans reached $1.36 billion at March 31, 2015, representing an increase of $46.8 million, or 4%, compared to gross loans of $1.31 billion at December 31, 2014. Average loan balances increased by $105.7 million, or 9%, to $1.33 billion for the first quarter of 2015, compared to $1.22 billion for the quarter ending December 31, 2014.

 

·

Total assets grew to $1.88 billion at March 31, 2015, with loans comprising 75% of the average earning asset mix.  Total deposits were $1.65 billion at March 31, 2015, which included demand deposits of $1.15 billion.

 

·

Allowance for credit losses represented 1.66% of total gross loans and 164.76% of nonperforming loans at March 31, 2015, compared to 1.70% of total gross loans and 284.03% of nonperforming loans at December 31, 2014. There was no provision for credit losses in the first quarter of 2015. Net recoveries were $260,000 for the period ended March 31, 2015, compared to net charge-offs of $134,000 for the quarter ended December 31, 2014.

 

·

Nonperforming assets increased by $5.8 million to $13.7 million, or 0.73% of total assets, at March 31, 2015, compared to $7.9 million, or 0.43% of total assets, at December 31, 2014.

 

·

Total revenue of $24.2 million for the first quarter of 2015 represented an increase of $2.5 million, or 11%, from the prior quarter. Net interest income of $20.9 million for the first quarter of 2015 compared to $18.9 million for the fourth quarter of 2014. Non-interest income of $3.3 million for the first quarter of 2015 compared to $2.9 million for the fourth quarter of 2014.

 

·

Net interest margin increased to 4.79% for the quarter ended March 31, 2015, compared to 4.39% for the fourth quarter of 2014.

 

·

Capital ratios remained strong and continued to support the Company’s growth. Total Risk-Based Capital Ratio was 12.78%, Tier I Capital Ratio was 11.58%, and Tier I Leverage Ratio was 11.14% at March 31, 2015.

 

Net Interest Income and Margin

 

Net interest income of $20.9 million for the quarter ended March 31, 2015 represented an increase of $2.0 million, or 11%, compared to $18.9 million for the quarter ended December 31, 2014, and an increase of $2.9 million, or 16%, compared to $18.0 million for the quarter ended March 31, 2014. The increase in net interest income from the prior quarter was primarily attributable to an increase in average earning assets as a result of loan growth, and a higher level of loan related fees. The increase in net interest income from the same period in the prior year was primarily attributable to an increase in average earning assets as a result of loan growth, partially offset by a slightly lower level of loan related fees. Loan fee amortization for the quarter ended March 31, 2015 was $2.7 million, compared to $2.2 million for the quarter ended December 31, 2014, and $2.8 million for the quarter ended March 31, 2014.

 

Total loan yields for the quarters ended March 31, 2015, December 31, 2014, and March 31, 2014 were 5.98%, 5.69%, and 6.38%, respectively. The weighted average contractual rate on loans, excluding fees, increased to 5.15% for the first quarter of 2015 compared to 4.97% the fourth quarter of 2014 and 5.34% for the same period one year ago. Loan fees comprised 83 basis points of the total loan yield for the first quarter of 2015, compared to 72 basis points and 104 basis points for the fourth and first quarters of 2014, respectively.

 

The Company’s net interest margin for the quarter ended March 31, 2015 was 4.79%, compared to 4.39% for the quarter ended December 31, 2014, and 4.91% for the same period one year earlier. The increase in net interest margin compared to the prior quarter ended December 30, 2014 was primarily due to a higher level of loan related fees, combined with a more favorable balance sheet mix. The decrease in net interest margin compared to the quarter ended March 31, 2014 was primarily due to a lower level of loan related fees, offset in part by an increase in average earning assets.

 

 

The impact on the net interest margin from expansion of contractual rates experienced in the loan portfolio for the three months ended March 31, 2015 compared to the prior quarter was 30 basis points. Compared to the same period one year earlier, the impact from compression of contractual rates experienced in the loan portfolio was 3 basis points.

 

The impact on the net interest margin from increased loan fees for the three months ended March 31, 2015 compared to the prior quarter was 10 basis points. Compared to the same period one year earlier, the impact on the net interest margin from decreased loan fees was 14 basis points.

 

The Company’s loan-to-deposit ratio, a measure of leverage, averaged 83.6% during the three months ended March 31, 2015, compared to an average of 79.0% for the quarter ended December 31, 2014, and an average of 81.1% for the same period of 2014.

 

Non-Interest Income

 

The Company’s non-interest income for the quarters ended March 31, 2015, December 31, 2014, and March 31, 2014 was $3.3 million, $2.9 million, and $2.7 million, respectively.

 

The increases in non-interest income of $420,000 and $525,000 million during the first quarter of 2015 compared to the fourth quarter of 2014 and the first quarter of 2014, respectively, was primarily attributed to an increase in gains on sales of securities. For the quarter ended March 31, 2015, the Company recorded gains on sales of securities of $306,000, compared to gains on sales of securities of $5,000 for the period ended December 31, 2014. There were no gains on sales of securities for the period ended March 31, 2014. The company recognized international fee income during the quarter ended March 31, 2015 of $841,000, compared to $789,000 in the prior quarter, and $761,000 during the same period last year. Service charges on deposits were $1.0 million during the first quarter of 2015 and fourth quarter of 2014, compared to $916,000 during the same period one year earlier. Visa interchange/fee income increased to $401,000 during the quarter ended March 31, 2015, from $386,000 for the prior quarter, and $299,000 for the same period one year earlier. Additionally, $195,000 in gains on sale of SBA loans was recognized during the first quarter of 2015, compared to $165,000 during the prior quarter and $213,000 for the same period during the prior year. Finally, the Company recognized $189,000 in SBA loan servicing income during the current quarter, compared to $176,000 during the prior quarter and $142,000 for the same period in 2014.

 

Net interest income and non-interest income comprised total revenue of $24.2 million for the three months ended March 31, 2015, compared to $21.7 million for the three months ended December 31, 2014 and $20.8 million for the same period one year earlier.

 

Non-Interest Expense

 

Non-interest expense was $17.3 million for the quarter ended March 31, 2015, and included $1.2 million of merger related expense, compared to $14.5 million for the quarter ended December 31, 2014, and $14.0 million for the quarter ended March 31, 2014. Overall, the trend in non-interest expense (excluding merger related costs) continues to reflect the Company’s investments in new initiatives and personnel to support growth.

 

Salary and benefits expense for the quarter ended March 31, 2015 was $10.6 million, compared to $9.5 million and $9.0 million for the quarters ended December 31, 2014 and March 31, 2014, respectively. The increase in salary and benefits expense for the first quarter of 2015 compared to the prior quarter was primarily due to lower incentive compensation accruals during the fourth quarter of 2014. The increase in salary and benefits expense from the current quarter compared to the same period in the prior year was primarily due 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. As of March 31, 2015 and December 31, 2014, the Company employed 262 and 260 full-time equivalents (FTE), respectively, compared to 235 FTE at March 31, 2014.

 

 

Marketing expense for the quarter ended March 31, 2015 was $567,000, compared to $670,000 and $619,000 for the quarters ended December 31, 2014 and March 31, 2014, respectively. Over the past several years, the Company increased marketing investments to raise the level of its brand visibility, and the rising trend of these expenses has leveled off in the current quarter. To leverage the increased brand visibility, the Company will continue to fund marketing and sales initiatives to accelerate demand for its customized banking solutions.

 

“Other real estate owned” and loan-related charges were $384,000 for the quarter ended March 31, 2015, compared to $309,000 and $194,000 for the quarters ended December 31, 2014 and March 31, 2014, respectively. The increase in charges from prior quarter and prior year is primarily related to the ongoing resolution of the increased non-performing credit portfolio during the current quarter.

 

Regulatory assessments related to FDIC insurance for deposit balances totaled $333,000 for the quarter ended March 31, 2015, compared to $250,000 for the quarter ended December 31, 2014 and $351,000 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 71.61%, 66.66%, and 67.64% for the quarters ended March 31, 2015, December 31, 2014, and March 31, 2014, respectively. For the quarter ended March 31, 2015, the Company’s adjusted efficiency ratio, net of merger related expenses, was 66.69%.

 

Balance Sheet

 

Bridge Capital Holdings reported total assets at March 31, 2015 of $1.88 billion, compared to $1.81 billion at December 31, 2014 and $1.62 billion on the same date one year ago. The increase in total assets of $68.1 million, or 4%, from December 31, 2014 was driven by increases in the loan portfolio and federal funds sold. The increase in total assets of $265.8 million, or 16%, from March 31, 2014 was driven by increases in the loan portfolio and investment securities.

 

The Company reported total gross loans outstanding at March 31, 2015 of $1.36 billion, which represented an increase of $46.8 million, or 4%, over $1.31 billion at December 31, 2014, and an increase of $213.4 million, or 19%, over $1.14 billion at March 31, 2014. The increase in total gross loans from December 31, 2014 was primarily in the commercial loan portfolio, slightly offset by reductions in factoring and asset-based loans. The increase in loans from March 31, 2014 was broad-based throughout the portfolio, with the most significant growth reflected in the commercial lending portfolio, partially offset by a decrease in factoring and asset-based loans.

 

The Company’s total deposits were $1.66 billion as of March 31, 2015, which represented an increase of $106.3 million, or 7%, compared to $1.55 billion at December 31, 2014 and an increase of $239.9 million, or 17%, compared to $1.42 billion at March 31, 2014. The increase in deposits from December 31, 2014 was generally reflected in all product types with a modest reduction in interest-bearing demand deposit accounts. The increase in deposits from March 31, 2014 was also broad-based with a slight reduction in time deposits.

 

Demand deposits represented 69.3% of total deposits at March 31, 2015, compared to 68.9% at December 31, 2014 and 69.9% for the same period one year ago. Core deposits represented 97.8%, 97.9%, and 97.0% of total deposits at March 31, 2015, December 31, 2014 and March 31, 2014, respectively.

 

Credit Quality

 

Nonperforming assets were $13.7 million, or 0.73% of total assets, as of March 31, 2015, compared to $7.9 million, or 0.43% of total assets, as of December 31, 2014, and $11.9 million, or 0.73% of total assets, at March 31, 2014. The nonperforming assets at March 31, 2015 consisted of loans on nonaccrual or 90 days or more past due totaling $13.7 million and OREO valued at $22,000.

 

Nonperforming loans at March 31, 2015 were comprised of loans with legal contractual balances totaling approximately $16.3 million reduced by $422,000 received in non-accrual interest and by impairment charges of $2.2 million which have been charged against the allowance for credit losses.

 

 

Nonperforming loans were $13.7 million, or 1.01% of total gross loans, as of March 31, 2015, compared to $7.9 million, or 0.60% of total gross loans, as of December 31, 2014, and $11.8 million, or 1.03% of total gross loans, at March 31, 2014. The increase in nonperforming loans was primarily attributable to one client relationship with both commercial and asset-based credits outstanding.

 

The carrying value of OREO was $22,000 as of March 31, 2015, compared to $23,000 as of December 31, 2014 and March 31, 2014.

 

The allowance for loan losses was $22.6 million, or 1.66% of total loans, at March 31, 2015, compared to $22.3 million, or 1.70% of total loans, at December 31, 2014, and $22.7 million, or 1.98% of total loans, at March 31, 2014. There was no provision for credit losses during the current quarter or prior quarter, compared to $500,000 for the quarter ended March 31, 2014.

 

The Company charged-off $93,000 in loan balances during the three months ended March 31, 2015, compared to $232,000 charged-off during the three months ended December 31, 2014, and $465,000 charged-off during the three months ended March 31, 2014.

 

During the three months ended March 31, 2015, the Company recognized $353,000 in loan recoveries compared to $98,000 and $686,000, respectively, in loan recoveries for the three months ended December 31, 2014 and March 31, 2014.

 

Capital Adequacy

 

The Company’s capital ratios at March 31, 2015 substantially exceed the regulatory definition for being “well capitalized” with a Total Risk-Based Capital Ratio of 12.78%, a Tier I Risk-Based Capital Ratio of 11.58%, and a Tier I Leverage Ratio of 11.14%. Additionally, the Company’s tangible common equity ratio at March 31, 2015 was 10.23% and book value per common share was $12.08, representing an increase of $0.37, or 3.2%, from $11.72 at December 31, 2014 and an increase of $1.50, or 14.2%, from $10.58 at March 31, 2014.

 

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 866-235-9918 from the United States, or 412-902-4104 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 website at www.bridgebank.com.

 

A telephone replay will be available through April 27, 2015, by dialing 877-344-7529 from the United States, or 412-317-0088 from outside the United States, and entering access code 10064085. 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 The Findley Reports as a Super Premium Performing Bank, and designated "Superior" by BauerFinancial and IDC, Bridge Bank is a full-service professional business bank, and preferred SBA lender, 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. Bridge Bank's product offering includes growth capital, equipment and working capital credit facilities and treasury management solutions, along with a full line of international products and services and financing secured by domestic, government and foreign receivables. Learn more at the new www.bridgebank.com. Follow us on Twitter @BridgeBank.

 

Contacts
Daniel P. Myers	Thomas A. Sa
President	Executive Vice President
Chief Executive Officer	Chief Financial Officer and Chief Strategy Officer
408.556.6510	408.556.8308
[email protected]	[email protected]

 

Forward-Looking Statements

 

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by that Act. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements are based on currently available information, expectations, assumptions, projections, and management’s judgment about the Company, the banking industry and general economic conditions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date.  Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.

 

Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this press release.  Factors that might cause such differences include, but are not limited to: the Company’s ability to successfully execute its business plans and achieve its objectives; changes in general economic, real estate and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; new litigation or changes in existing litigation; future credit loss experience; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; loss of key personnel; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; and the ability to satisfy requirements related to the Sarbanes-Oxley Act and other regulation on internal control.

 

The reader should refer to the more complete discussion of such risks in Bridge Capital Holdings’ annual reports on Forms 10-K and quarterly reports on Forms 10-Q on file with the Securities and Exchange Commission. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

 

- Financial Tables Follow -

 

 

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in Thousands)

 

		Three months ended
		03/31/15				12/31/14				03/31/14
INTEREST INCOME
Loans		$	19,596			$	17,549			$	17,047
Federal funds sold			73				109				78
Investment securities			1,792				1,779				1,502
Other			-				-				-
Total interest income			21,461				19,437				18,627
INTEREST EXPENSE
Deposits			259				263				338
Other			255				271				269
Total interest expense			514				534				607
Net interest income			20,947				18,903				18,020
Provision for credit losses			-				-				500
Net interest income after provision for credit losses			20,947				18,903				17,520
NON-INTEREST INCOME
Service charges on deposit accounts			995				1,002				916
International Fee Income			841				789				761
Gain on sale of SBA loans			195				165				213
Other non-interest income			1,242				897				858
Total non-interest income			3,273				2,853				2,748
OPERATING EXPENSES
Salaries and benefits			10,620				9,456				9,015
Premises and fixed assets			1,272				1,268				1,238
Merger related expenses			1,191				-				-
Other			4,261				3,778				3,794
Total operating expenses			17,344				14,502				14,047
Income before income taxes			6,876				7,254				6,221
Income tax expense			2,962				3,067				2,505
NET INCOME		$	3,914			$	4,187			$	3,716
EARNINGS PER SHARE
Basic earnings per share		$	0.26			$	0.28			$	0.25
Diluted earnings per share		$	0.25			$	0.27			$	0.24
Average common shares outstanding			14,900,669				14,837,845				14,646,573
Average common and equivalent shares outstanding			15,643,440				15,624,527				15,462,648
PERFORMANCE MEASURES
Return on average assets			0.86	%			0.94	%			0.97	%
Return on average equity			8.28	%			9.00	%			9.09	%
Efficiency ratio			71.61	%			66.66	%			67.64	%

 

 

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

CONTINUED

(Dollars in Thousands)

 

GAAP RECONCILATIONS

 

For periods presented below, adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures derived from GAAP based amounts. We calculate these figures by excluding merger related expenses in period results. Management believes that the exclusion of such items from these financial measures provides useful information to an understanding of the operating results of our core business. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.

 

		Three months ended
		03/31/15				12/31/14				03/31/14
ADJUSTED NET INCOME
Net income		$	3,914			$	4,187			$	3,716
Plus merger related expenses, net of tax			879				-				-
Adjusted net income		$	4,793			$	4,187			$	3,716
ADJUSTED DILUTED EARNINGS PER SHARE
Diluted earnings per share		$	0.25			$	0.27			$	0.24
Plus merger related expenses, net of tax			0.06				-				-
Adjusted diluted earnings per share		$	0.31			$	0.27			$	0.24
ADJUSTED PERFORMANCE MEASURES
Adjusted return on average assets			1.06	%			0.94	%			0.97	%
Adjusted return on average equity			10.14	%			9.00	%			9.09	%
Efficiency ratio			66.69	%			66.66	%			67.64	%

 

 

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY

INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in Thousands)

 

		03/31/15				12/31/14				09/30/14				06/30/14				03/31/14
ASSETS
Cash and due from banks		$	29,969			$	21,950			$	31,921			$	33,796			$	30,799
Federal funds sold			121,028				75,420				146,675				82,635				123,724
Interest-bearing deposits			326				326				326				326				326
Investment securities			332,587				365,165				319,201				295,205				281,527
Loans:
Commercial			843,096				785,360				712,113				664,806				628,190
SBA			125,075				124,180				113,146				116,862				117,967
Real estate construction			65,380				71,673				78,445				70,232				62,360
Land and land development			14,536				15,890				15,659				16,658				13,554
Real estate other			146,597				139,624				134,463				130,000				129,447
Factoring and asset-based lending			156,806				167,513				162,198				176,101				187,319
Other			6,625				7,073				3,720				6,146				5,923
Loans, gross			1,358,115				1,311,313				1,219,744				1,180,805				1,144,760
Unearned fee income			(5,662	)			(5,644	)			(4,211	)			(3,845	)			(4,701	)
Allowance for credit losses			(22,565	)			(22,305	)			(22,439	)			(23,116	)			(22,665	)
Loans, net			1,329,888				1,283,364				1,193,094				1,153,844				1,117,394
Premises and equipment, net			2,362				2,504				3,697				3,587				2,850
Accrued interest receivable			5,178				4,989				5,236				4,323				4,390
Other assets			60,861				60,404				59,957				53,457				55,428
Total assets		$	1,882,199			$	1,814,122			$	1,760,107			$	1,627,173			$	1,616,438
LIABILITIES
Deposits:
Demand noninterest-bearing		$	1,132,231			$	1,051,357			$	1,055,815			$	970,941			$	981,406
Demand interest-bearing			14,362				15,492				13,886				8,373				8,404
Money market and savings			472,475				450,873				437,432				410,565				384,364
Time			36,777				31,823				32,065				33,833				41,782
Total deposits			1,655,845				1,549,545				1,539,198				1,423,712				1,415,956
Junior subordinated debt securities			17,527				17,527				17,527				17,527				17,527
Other borrowings			-				40,000				-				-				-
Accrued interest payable			9				8				7				8				9
Other liabilities			16,194				19,935				21,870				12,521				15,189
Total liabilities			1,689,575				1,627,015				1,578,602				1,453,768				1,448,681
SHAREHOLDERS' EQUITY
Common stock			117,732				117,321				116,525				114,053				113,081
Retained earnings			73,460				69,547				65,360				59,929				55,662
Accumulated other comprehensive income /(loss)			1,432				239				(380	)			(577	)			(986	)
Total shareholders' equity			192,624				187,107				181,505				173,405				167,757
Total liabilities and shareholders' equity		$	1,882,199			$	1,814,122			$	1,760,107			$	1,627,173			$	1,616,438
CAPITAL ADEQUACY
Tier I leverage ratio			11.14	%			11.24	%			11.69	%			11.74	%			11.71	%
Tier I risk-based capital ratio			11.58	%			12.66	%			13.12	%			12.74	%			12.51	%
Total risk-based capital ratio			12.78	%			13.91	%			14.37	%			14.00	%			13.76	%
Total equity/ total assets			10.23	%			10.31	%			10.31	%			10.66	%			10.38	%
Book value per common share		$	12.08			$	11.72			$	11.33			$	10.93			$	10.58
Outstanding shares			15,940,819				15,970,506				16,026,119				15,868,525				15,854,180

 

 

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY

INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)

(Dollars in Thousands)

 

		Three months ended March 31,
		2015												2014
						Yields				Interest								Yields				Interest
		Average				or				Income/				Average				or				Income/
		Balance				Rates				Expense				Balance				Rates				Expense
ASSETS
Interest earning assets (2):
Loans (1)		$	1,329,896				5.98	%		$	19,596			$	1,082,993				6.38	%		$	17,047
Federal funds sold			86,095				0.34	%			73				113,062				0.28	%			78
Investment securities			358,411				2.03	%			1,792				292,594				2.08	%			1,502
Other			325				0.00	%			-				326				0.00	%			-
Total interest earning assets			1,774,727				4.90	%			21,461				1,488,975				5.07	%			18,627
Noninterest-earning assets:
Cash and due from banks			27,394												26,549
All other assets (3)			38,989												31,504
TOTAL		$	1,841,110											$	1,547,028
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand		$	16,110				0.03	%		$	1			$	8,568				0.05	%		$	1
Money market and savings			456,899				0.18	%			208				388,723				0.29	%			277
Time			35,279				0.57	%			50				43,416				0.56	%			60
Other			40,082				2.58	%			255				27,805				3.92	%			269
Total interest-bearing liabilities			548,370				0.38	%			514				468,512				0.53	%			607
Noninterest-bearing liabilities:
Demand deposits			1,082,608												895,265
Accrued expenses and other liabilities			18,459												17,439
Shareholders' equity			191,673												165,812
TOTAL		$	1,841,110											$	1,547,028
Net interest income and margin							4.79	%		$	20,947								4.91	%		$	18,020

 

(1)

Loan fee amortization of $2.7 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 $22.4 million and $22.5 million, respectively.

 

 

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY

INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)

(Dollars in Thousands)

 

		Three months ended March 31,												Three months ended December 31,
		2015												2014
						Yields				Interest								Yields				Interest
		Average				or				Income/				Average				or				Income/
		Balance				Rates				Expense				Balance				Rates				Expense
ASSETS
Interest earning assets (2):
Loans (1)		$	1,329,896				5.98	%		$	19,596			$	1,224,241				5.69	%		$	17,549
Federal funds sold			86,095				0.34	%			73				138,322				0.31	%			109
Investment securities			358,411				2.03	%			1,792				345,034				2.05	%			1,779
Other			325				0.00	%			-				326				0.00	%			-
Total interest earning assets			1,774,727				4.90	%			21,461				1,707,923				4.52	%			19,437
Noninterest-earning assets:
Cash and due from banks			27,394												29,469
All other assets (3)			38,989												37,891
TOTAL		$	1,841,110											$	1,775,283
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand		$	16,110				0.03	%		$	1			$	12,059				0.03	%		$	1
Money market and savings			456,899				0.18	%			208				447,015				0.19	%			214
Time			35,279				0.57	%			50				32,173				0.59	%			48
Other			40,082				2.58	%			255				19,266				5.58	%			271
Total interest-bearing liabilities			548,370				0.38	%			514				510,513				0.41	%			534
Noninterest-bearing liabilities:
Demand deposits			1,082,608												1,059,257
Accrued expenses and other liabilities			18,459												20,949
Shareholders' equity			191,673												184,564
TOTAL		$	1,841,110											$	1,775,283
Net interest income and margin							4.79	%		$	20,947								4.39	%		$	18,903

 

(1)

Loan fee amortization of $2.7 million and $2.2 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 $22.4 million and $22.6 million, respectively.

 

 

BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY

INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)

(Dollars in Thousands)

 

		03/31/15				12/31/14				09/30/14				06/30/14				03/31/14
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period		$	22,305			$	22,439			$	23,116			$	22,665			$	21,944
Provision for credit losses, quarterly			-				-				1,000				1,500				500
Charge-offs, quarterly			(93	)			(232	)			(2,200	)			(1,271	)			(465	)
Recoveries, quarterly			353				98				523				222				686
Balance, end of period		$	22,565			$	22,305			$	22,439			$	23,116			$	22,665
NONPERFORMING ASSETS
Loans accounted for on a non-accrual basis		$	13,696			$	7,853			$	8,352			$	12,901			$	11,835
Loans with principal or interest contractually past due 90 days or more and still accruing interest			-				-				-				-				-
Nonperforming loans			13,696				7,853				8,352				12,901				11,835
Other real estate owned			22				23				23				23				23
Nonperforming assets		$	13,718			$	7,876			$	8,375			$	12,924			$	11,858
Loans restructured and in compliance with modified terms			4,311				9,237				10,363				5,502				5,535
Nonperforming assets and restructured loans		$	18,029			$	17,113			$	18,738			$	18,426			$	17,393
Nonperforming Loans by Asset Type:
Commercial		$	2,997			$	1,267			$	2,602			$	2,740			$	59
SBA			3,370				3,589				3,439				1,962				1,746
Construction			-				-				-				-				-
Land			-				-				-				-				-
Other real estate			2,594				2,800				1,868				6,882				7,159
Factoring and asset-based lending			4,735				197				443				1,317				2,871
Other			-				-				-				-				-
Nonperforming loans		$	13,696			$	7,853			$	8,352			$	12,901			$	11,835
ASSET QUALITY
Allowance for credit losses / gross loans			1.66	%			1.70	%			1.84	%			1.96	%			1.98	%
Allowance for credit losses / nonperforming loans			164.76	%			284.03	%			268.67	%			179.18	%			191.51	%
Nonperforming assets / total assets			0.73	%			0.43	%			0.48	%			0.79	%			0.73	%
Nonperforming loans / gross loans			1.01	%			0.60	%			0.68	%			1.09	%			1.03	%
Net quarterly charge-offs / gross loans			-0.02	%			0.01	%			0.14	%			0.09	%			-0.02	%

 

 

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