Company Quick10K Filing
Bridge Bancorp
Price29.63 EPS3
Shares20 P/E11
MCap588 P/FCF12
Net Debt-131 EBIT104
TEV456 TEV/EBIT4
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-03-11
10-Q 2019-09-30 Filed 2019-11-08
10-Q 2019-06-30 Filed 2019-08-08
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-03-11
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-08
10-Q 2018-03-31 Filed 2018-05-09
10-K 2017-12-31 Filed 2018-03-09
10-Q 2017-09-30 Filed 2017-11-08
10-Q 2017-06-30 Filed 2017-08-09
10-Q 2017-03-31 Filed 2017-05-09
10-K 2016-12-31 Filed 2017-03-10
10-Q 2016-09-30 Filed 2016-11-07
10-Q 2016-06-30 Filed 2016-08-08
10-Q 2016-03-31 Filed 2016-05-10
10-K 2015-12-31 Filed 2016-03-14
10-Q 2015-09-30 Filed 2015-11-09
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-11
10-K 2014-12-31 Filed 2015-03-16
10-Q 2014-09-30 Filed 2014-11-07
10-Q 2014-06-30 Filed 2014-08-08
10-Q 2014-03-31 Filed 2014-05-12
10-K 2013-12-31 Filed 2014-03-14
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-08
10-Q 2013-03-31 Filed 2013-05-09
10-K 2012-12-31 Filed 2013-03-13
10-Q 2012-09-30 Filed 2012-11-08
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-09
10-K 2011-12-31 Filed 2012-03-13
10-Q 2011-09-30 Filed 2011-11-01
10-Q 2011-06-30 Filed 2011-08-08
10-Q 2011-03-31 Filed 2011-05-05
10-K 2010-12-31 Filed 2011-03-11
10-Q 2010-09-30 Filed 2010-11-05
10-Q 2010-06-30 Filed 2010-08-05
10-Q 2010-03-31 Filed 2010-05-07
10-K 2009-12-31 Filed 2010-03-11
8-K 2020-06-02
8-K 2020-05-05
8-K 2020-04-30
8-K 2020-04-29
8-K 2020-04-20
8-K 2020-04-07
8-K 2020-04-06
8-K 2020-01-29
8-K 2020-01-10
8-K 2020-01-02
8-K 2019-11-04
8-K 2019-10-24
8-K 2019-10-04
8-K 2019-10-01
8-K 2019-07-29
8-K 2019-07-23
8-K 2019-07-08
8-K 2019-07-02
8-K 2019-05-14
8-K 2019-05-03
8-K 2019-05-03
8-K 2019-04-23
8-K 2019-04-05
8-K 2019-04-02
8-K 2019-03-08
8-K 2019-02-19
8-K 2019-01-28
8-K 2019-01-18
8-K 2019-01-07
8-K 2018-12-05
8-K 2018-11-05
8-K 2018-10-23
8-K 2018-10-05
8-K 2018-10-01
8-K 2018-08-22
8-K 2018-07-30
8-K 2018-07-24
8-K 2018-07-09
8-K 2018-05-15
8-K 2018-05-04
8-K 2018-05-04
8-K 2018-04-25
8-K 2018-04-06
8-K 2018-02-05
8-K 2018-01-29
8-K 2018-01-08

BDGE 10Q Quarterly Report

Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 bdge-20200331ex311af0214.htm
EX-31.2 bdge-20200331ex3124853d0.htm
EX-32.1 bdge-20200331ex3211d9b1a.htm

Bridge Bancorp Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
4.83.82.91.91.00.02012201420172020
Assets, Equity
0.10.10.10.00.00.02016201720182020
Rev, G Profit, Net Income
0.30.20.1-0.1-0.2-0.32012201420172020
Ops, Inv, Fin

10-Q 1 bdge-20200331x10q.htm 10-Q bdge_Current_Folio_10Q

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q


☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2020

Commission file number 001‑34096


BRIDGE BANCORP, INC.

(Exact name of registrant as specified in its charter)


NEW YORK

11-2934195

(State or other jurisdiction of incorporation or organization)

(IRS Employer Identification Number)

 

 

2200 MONTAUK HIGHWAY, BRIDGEHAMPTON, NEW YORK

11932

(Address of principal executive offices)

(Zip Code)

 

Registrant's telephone number, including area code: (631) 537‑1000

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

Title of each class

Trading Symbol

Name of each exchange on which registered

 Common Stock

 BDGE

 NASDAQ STOCK MARKET, LLC

 

 

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [    ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes [X] No [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

 

 

Large accelerated filer [  ]

Accelerated filer [X]

Non-accelerated filer [  ]

Smaller reporting company [  ]

 

Emerging growth company [  ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes [    ] No [X]

There were 19,732,881 shares of common stock outstanding as of April  30, 2020.

 

 

 

 

BRIDGE BANCORP, INC.

 

 

 

 

 

 

PART I

FINANCIAL INFORMATION

 

 

 

 

Item 1.  

Financial Statements (unaudited)

3

 

 

 

 

Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019

3

 

 

 

 

Consolidated Statements of Income for the Three Months Ended March  31, 2020 and 2019

4

 

 

 

 

Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2020 and 2019

5

 

 

 

 

Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2020 and 2019

6

 

 

 

 

Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019

7

 

 

 

 

Condensed Notes to the Consolidated Financial Statements

8

 

 

 

Item 2.  

Management's Discussion and Analysis of Financial Condition and Results of Operations

39

 

 

 

Item 3.  

Quantitative and Qualitative Disclosures About Market Risk

54

 

 

 

Item 4.  

Controls and Procedures

56

 

 

 

PART II  

OTHER INFORMATION

 

 

 

 

Item 1.  

Legal Proceedings

57

 

 

 

Item 1A. 

Risk Factors

57

 

 

 

Item 2.  

Unregistered Sales of Equity Securities and Use of Proceeds

58

 

 

 

Item 3.  

Defaults Upon Senior Securities

58

 

 

 

Item 4. 

Mine Safety Disclosures

58

 

 

 

Item 5.  

Other Information

58

 

 

 

Item 6.  

Exhibits

59

 

 

 

Signatures 

 

59

 

 

 

 

 

2

Item 1. Financial Statements

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

 

     

2020

    

2019

 

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

Cash and due from banks

 

$

61,352

 

$

77,693

Interest-bearing deposits with banks

 

 

172,830

 

 

39,501

Total cash and cash equivalents

 

 

234,182

 

 

117,194

 

 

 

 

 

 

 

Securities available for sale, at fair value

 

 

553,278

 

 

638,291

Securities held to maturity (fair value of $127,653 and $135,027, respectively)

 

 

124,231

 

 

133,638

Total securities

 

 

677,509

 

 

771,929

 

 

 

 

 

 

 

Securities, restricted

 

 

26,354

 

 

32,879

 

 

 

 

 

 

 

Loans held for sale

 

 

12,643

 

 

12,643

 

 

 

 

 

 

 

Loans held for investment

 

 

3,762,130

 

 

3,680,285

Allowance for credit losses

 

 

(39,215)

 

 

(32,786)

Loans, net

 

 

3,722,915

 

 

3,647,499

 

 

 

 

 

 

 

Premises and equipment, net

 

 

34,521

 

 

34,062

Operating lease right-of-use assets

 

 

41,939

 

 

43,450

Accrued interest receivable

 

 

11,070

 

 

10,908

Goodwill

 

 

105,950

 

 

105,950

Other intangible assets

 

 

3,472

 

 

3,677

Prepaid pension

 

 

11,243

 

 

10,988

Bank owned life insurance

 

 

92,490

 

 

91,942

Other assets

 

 

86,584

 

 

38,399

Total assets

 

$

5,060,872

 

$

4,921,520

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Demand deposits

 

$

1,481,552

 

$

1,518,958

Savings, NOW and money market deposits

 

 

2,264,106

 

 

1,987,712

Certificates of deposit of $100,000 or more

 

 

215,686

 

 

214,093

Other time deposits

 

 

94,391

 

 

93,884

Total deposits

 

 

4,055,735

 

 

3,814,647

 

 

 

 

 

 

 

Repurchase agreements

 

 

1,195

 

 

999

Federal Home Loan Bank ("FHLB") advances

 

 

290,000

 

 

435,000

Subordinated debentures, net

 

 

78,955

 

 

78,920

Operating lease liabilities

 

 

44,571

 

 

45,977

Other liabilities and accrued expenses

 

 

97,163

 

 

48,823

Total liabilities

 

 

4,567,619

 

 

4,424,366

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 —

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

Preferred stock, par value $.01 per share (2,000,000 shares authorized; none issued)

 

 

 —

 

 

 —

Common stock, par value $.01 per share (40,000,000 shares authorized; 19,907,217 and 19,898,022 shares issued, respectively; and 19,722,299 and 19,836,797 shares outstanding, respectively)

 

 

199

 

 

199

Surplus

 

 

355,014

 

 

356,436

Retained earnings

 

 

153,766

 

 

150,703

Treasury stock at cost, 184,918 and 61,225 shares, respectively

 

 

(4,800)

 

 

(1,843)

 

 

 

504,179

 

 

505,495

Accumulated other comprehensive loss, net of income taxes

 

 

(10,926)

 

 

(8,341)

Total stockholders’ equity

 

 

493,253

 

 

497,154

Total liabilities and stockholders’ equity

 

$

5,060,872

 

$

4,921,520

See accompanying condensed notes to the Unaudited Consolidated Financial Statements.

3

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Income (unaudited)

(In thousands, except per share amounts)

 

 

 

 

 

 

 

Three Months Ended

 

March 31, 

 

2020

    

2019

Interest income:

 

 

 

 

 

Loans (including fee income)

$

39,763

 

$

37,612

Mortgage-backed securities, CMOs and other asset-backed securities

 

3,040

 

 

4,789

U.S. GSE securities

 

337

 

 

192

State and municipal obligations

 

513

 

 

627

Corporate bonds

 

300

 

 

336

Deposits with banks

 

267

 

 

544

Other interest and dividend income

 

382

 

 

415

Total interest income

 

44,602

 

 

44,515

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

Savings, NOW and money market deposits

 

4,255

 

 

6,369

Certificates of deposit of $100,000 or more

 

1,036

 

 

983

Other time deposits

 

415

 

 

562

Federal funds purchased and repurchase agreements

 

78

 

 

45

FHLB advances

 

1,033

 

 

1,098

Subordinated debentures

 

1,135

 

 

1,135

Total interest expense

 

7,952

 

 

10,192

 

 

 

 

 

 

Net interest income

 

36,650

 

 

34,323

Provision for credit losses

 

5,000

 

 

600

Net interest income after provision for credit losses

 

31,650

 

 

33,723

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

Service charges and other fees

 

2,500

 

 

2,428

Net securities losses

 

(15)

 

 

 —

Title fees

 

329

 

 

306

Gain on sale of Small Business Administration ("SBA") loans

 

371

 

 

217

Bank owned life insurance

 

548

 

 

553

Loan swap fees

 

1,231

 

 

1,115

Other

 

253

 

 

599

Total non-interest income

 

5,217

 

 

5,218

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

Salaries and employee benefits

 

15,549

 

 

13,280

Occupancy and equipment

 

3,499

 

 

3,531

Technology and communications

 

2,217

 

 

1,789

Marketing and advertising

 

823

 

 

1,023

Professional services

 

956

 

 

757

FDIC assessments

 

 1

 

 

238

Amortization of other intangible assets

 

181

 

 

213

Other

 

1,617

 

 

1,768

Total non-interest expense

 

24,843

 

 

22,599

 

 

 

 

 

 

Income before income taxes

 

12,024

 

 

16,342

Income tax expense

 

2,676

 

 

3,415

Net income

$

9,348

 

$

12,927

Basic earnings per share

$

0.47

 

$

0.65

Diluted earnings per share

$

0.47

 

$

0.65

 

See accompanying condensed notes to the Unaudited Consolidated Financial Statements.

4

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

 

    

2020

    

2019

Net income

 

$

9,348

 

$

12,927

Other comprehensive (loss) income:

  

 

  

  

 

  

Change in unrealized net gains on securities available for sale, net of reclassifications and deferred income taxes

 

 

4,124

 

 

3,918

Adjustment to pension liability, net of reclassifications and deferred income taxes

 

 

98

 

 

90

Unrealized losses on cash flow hedges, net of reclassifications and deferred income taxes

  

 

(6,807)

  

 

(1,525)

Total other comprehensive (loss) income

 

 

(2,585)

 

 

2,483

Comprehensive income

  

$

6,763

  

$

15,410

 

See accompanying condensed notes to the Unaudited Consolidated Financial Statements.

5

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders' Equity (unaudited)

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

Common

 

 

 

 

Retained

 

Treasury

 

Comprehensive

 

 

 

 

   

Stock

   

Surplus

   

 Earnings

   

Stock

   

Loss

   

Total

Balance at January 1, 2020

 

$

199

 

$

356,436

 

$

150,703

 

$

(1,843)

 

$

(8,341)

 

$

497,154

Cumulative change in accounting principle (Note 1)

 

 

 

 

 

 

 

 

(1,473)

 

 

 

 

 

 

 

 

(1,473)

Balance at January 1, 2020 (as adjusted for change in accounting principle)

 

 

199

 

 

356,436

 

 

149,230

 

 

(1,843)

 

 

(8,341)

 

 

495,681

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

  

 

 

 

 

9,348

  

 

 

 

 

 

  

 

9,348

Shares issued under the dividend reinvestment plan (6,275 shares)

 

 

 

  

 

240

 

 

 

  

 

 

 

 

 

  

 

240

Purchase of treasury stock (179,620 shares)

 

 

 

 

 

 

 

 

 

 

 

(4,633)

 

 

 

 

 

(4,633)

Stock awards granted and distributed (90,657 shares)

 

 

 

  

 

(2,668)

 

 

 

  

 

2,668

 

 

 

  

 

 —

Stock awards forfeited (585 shares)

 

 

 

  

 

20

 

 

 

  

 

(20)

 

 

 

  

 

 —

Repurchase of surrendered stock from vesting of stock plans (31,225 shares)

 

 

 

  

 

(36)

 

 

 

  

 

(972)

 

 

 

  

 

(1,008)

Share based compensation expense

 

 

 

  

 

1,022

 

 

 

  

 

 

 

 

 

  

 

1,022

Cash dividend declared, $0.24 per share

 

 

 

  

 

 

 

 

(4,812)

  

 

 

 

 

 

  

 

(4,812)

Other comprehensive loss, net of deferred income taxes

 

 

 

  

 

 

 

 

 

  

 

 

 

 

(2,585)

  

 

(2,585)

Balance at March 31, 2020

 

$

199

 

$

355,014

 

$

153,766

 

$

(4,800)

 

$

(10,926)

 

$

493,253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

Common 

 

 

 

 

Retained

 

Treasury

 

Comprehensive

 

 

 

 

   

Stock

   

Surplus

   

Earnings

   

Stock

   

Loss

   

Total

Balance at January 1, 2019

 

$

198

 

$

352,093

 

$

117,432

 

$

(781)

 

$

(15,112)

 

$

453,830

Net income

 

 

 

  

 

 

 

 

12,927

  

 

 

 

 

 

  

 

12,927

Shares issued under the dividend reinvestment plan (5,864 shares)

 

 

 

  

 

198

 

 

 

  

 

 

 

 

 

  

 

198

Stock awards granted and distributed (76,274 shares)

 

 

 1

  

 

(791)

 

 

 

  

 

790

 

 

 

  

 

 —

Repurchase of surrendered stock from vesting of stock plans (24,132 shares)

 

 

 

  

 

 

 

 

 

  

 

(795)

 

 

 

  

 

(795)

Share based compensation expense

 

 

 

  

 

954

 

 

 

  

 

 

 

 

 

  

 

954

Cash dividend declared, $0.23 per share

 

 

 

  

 

 

 

 

(4,594)

  

 

 

 

 

 

  

 

(4,594)

Other comprehensive income, net of deferred income taxes

 

 

 

  

 

 

 

 

 

  

 

 

 

 

2,483

  

 

2,483

Balance at March 31, 2019

 

$

199

 

$

352,454

 

$

125,765

 

$

(786)

 

$

(12,629)

 

$

465,003

 

See accompanying condensed notes to the Unaudited Consolidated Financial Statements.

6

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

 

    

2020

    

2019

Cash flows from operating activities:

 

 

    

 

 

  

Net income

 

$

9,348

 

$

12,927

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

  

 

 

Provision for credit losses

 

 

5,000

  

 

600

Depreciation and amortization of premises and equipment

 

 

1,003

  

 

1,048

Net (accretion) and other amortization

 

 

(218)

 

 

(287)

Net amortization on securities

 

 

654

  

 

648

Increase in cash surrender value of bank owned life insurance

 

 

(548)

  

 

(553)

Amortization of other intangible assets

 

 

181

  

 

213

Share based compensation expense

 

 

1,022

  

 

954

Net securities losses

 

 

15

  

 

 —

Increase in accrued interest receivable

 

 

(162)

  

 

(1,821)

SBA loans originated for sale

 

 

(5,888)

  

 

(3,188)

Proceeds from sale of the guaranteed portion of SBA loans

 

 

6,345

  

 

3,454

Gain on sale of the guaranteed portion of SBA loans

 

 

(371)

  

 

(217)

(Increase) decrease in other assets

 

 

(3,979)

  

 

4,006

Decrease in accrued expenses and other liabilities

 

 

(4,137)

  

 

(5,619)

Net cash provided by operating activities

 

 

8,265

  

 

12,165

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

  

 

  

Purchases of securities available for sale

 

 

(91,098)

  

 

(40,771)

Purchases of securities, restricted

 

 

(14,130)

  

 

(14,850)

Proceeds from sales of securities available for sale

 

 

74,558

  

 

 —

Redemption of securities, restricted

 

 

20,655

  

 

10,810

Maturities, calls and principal payments of securities available for sale

 

 

106,840

  

 

19,270

Maturities, calls and principal payments of securities held to maturity

 

 

9,280

  

 

10,470

Net increase in loans

 

 

(81,992)

  

 

(115,341)

Purchase of premises and equipment

 

 

(1,462)

  

 

(518)

Net cash provided by (used in) investing activities

 

 

22,651

  

 

(130,930)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

  

 

  

Net increase (decrease) in deposits

 

 

241,089

  

 

(160,921)

Net (decrease) increase in FHLB advances

 

 

(145,000)

  

 

89,784

Net increase in repurchase agreements

 

 

196

  

 

182

Net proceeds from issuance of common stock

 

 

240

  

 

198

Purchase of treasury stock

 

 

(4,633)

 

 

 —

Repurchase of surrendered stock from vesting of stock plans

 

 

(1,008)

  

 

(795)

Cash dividends paid

 

 

(4,812)

  

 

(4,594)

Net cash provided by (used in) financing activities

 

 

86,072

  

 

(76,146)

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

116,988

  

 

(194,911)

Cash and cash equivalents at beginning of period

 

 

117,194

  

 

295,368

Cash and cash equivalents at end of period

 

$

234,182

 

$

100,457

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

  

 

  

Cash paid for:

 

 

 

  

 

  

Interest

 

$

9,032

 

$

11,126

Income taxes

 

$

213

 

$

49

 

See accompanying condensed notes to the Unaudited Consolidated Financial Statements.

7

BRIDGE BANCORP, INC. AND SUBSIDIARIES

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. BASIS OF PRESENTATION

Bridge Bancorp, Inc. (the “Holding Company”), is a bank holding company incorporated under the laws of the State of New York. The Holding Company’s business consists of the operations of its wholly-owned subsidiary, BNB Bank (the “Bank”). The Bank’s operations include its real estate investment trust subsidiary, Bridgehampton Community, Inc.; a financial title insurance subsidiary, Bridge Abstract LLC (“Bridge Abstract”); and an investment services subsidiary, Bridge Financial Services, Inc. (“Bridge Financial Services”).

The unaudited consolidated financial statements presented in this Quarterly Report on Form 10-Q include the collective results of the Holding Company and its wholly-owned subsidiary, the Bank, which are collectively herein referred to as “we”, “us”, “our” and the “Company.”

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. The unaudited consolidated financial statements included herein reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. Such estimates are subject to change in the future as additional information becomes available or previously existing circumstances are modified. Actual future results could differ significantly from those estimates. The annualized results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain reclassifications have been made to prior year amounts, and the related discussion and analysis, to conform to the current year presentation. These reclassifications did not have an impact on net income or total stockholders' equity. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10‑K for the year ended December 31, 2019.

COVID-19 Risks

In December 2019, a novel coronavirus (“COVID-19”) was reported in China, and, in March 2020, the World Health Organization declared COVID-19 a pandemic.  On March 12, 2020, the President of the United States declared the COVID-19 outbreak in the United States a national emergency.  The COVID-19 pandemic has caused significant economic dislocation in the United States as many state and local governments, including New York, have ordered non-essential businesses to close and residents to shelter in place at home.  This has resulted in an unprecedented slow-down in economic activity and a related increase in unemployment.   

The Company’s unaudited consolidated financial statements reflect the impact of COVID-19 on the assumptions and estimates used. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 outbreak on the Company’s business.  The extent of such impact will depend on future developments, which are highly uncertain, including when COVID-19 can be controlled and abated and when and how the economy may be reopened.  As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, the Company may be subject to the following risks, any of which could have a material, adverse effect on its business, financial condition, liquidity, and results of operations.

·

demand for the Company’s products and services may decline, making it difficult to grow assets and income;

8

·

if the economy is unable to substantially reopen, and high levels of unemployment continue, for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income;

·

collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase;

·

the Company’s allowance for credit losses (“ACL”) may have to be increased if borrowers experience financial difficulties beyond forbearance periods, which will adversely affect the Company’s net income;

·

the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to the Company;

·

as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on the Company’s assets may decline to a greater extent than the decline in its cost of interest-bearing liabilities, reducing net interest margin and spread and reducing net income;

·

a material decrease in net income or a net loss over several quarters could result in a decrease in the rate of the Company’s quarterly cash dividend;

·

the Company’s cyber security risks are increased as the result of an increase in the number of employees working remotely; and

·

the Company relies on third party vendors for certain services and the unavailability of a critical service due to the COVID-19 outbreak could have an adverse effect on the Company.

 

ASU 2016-13, Financial Instruments – Credit Losses (Topic 326)

Effective for periods after December 31, 2019, the Company adopted Accounting Standards Update (“ASU”) No 2016-13, Financial Instruments – Credit Losses (Topic 326), which replaced the long-standing incurred loss model used in calculating the allowance for loan and lease losses with a more forward-looking, current expected credit loss model (“CECL” or the “CECL Standard”).  Furthermore, the CECL Standard requires financial institutions to measure all expected credit losses for in-scope financial assets held at amortized cost at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts, including estimates of prepayments.  It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. Accordingly, financial institutions will now leverage forward-looking information to better inform their credit loss estimates. For the Company, this standard applies to loans held for investment, unfunded commitments, and securities held to maturity.  In addition, the CECL Standard made changes to the accounting for available for sale debt securities. Credit losses on available for sale debt securities should be measured in a manner similar to current GAAP. However, the amendments in the CECL Standard require that credit losses be presented as an allowance for credit losses rather than as a write-down.  This approach is an improvement to current GAAP because an entity will be able to record reversals of credit losses (in situations in which the estimate of credit losses declines) in current period net income, which in turn should align the income statement recognition of credit losses with the reporting period in which changes occur. Although the Coronavirus Aid, Relief, and Economic Security Act (the “CARES” Act) provided the option to delay the adoption of the CECL Standard until the earlier of December 31, 2020 or the termination of the current national emergency declaration related to the COVID-19 outbreak, the Company adopted the CECL Standard in the first quarter of 2020 as previously planned using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the CECL Standard resulted in an initial increase of $1.6 million to the allowance for credit losses and $0.5 million to the reserve for unfunded commitments. The after-tax cumulative-effect adjustment of $1.5 million was recorded in retained earnings as of January 1, 2020. Based on the credit quality of the Company's securities portfolio, there was no initial adjustment to retained earnings for credit losses associated with debt securities held to maturity.

Results for reporting periods beginning after January 1, 2020 are presented under the CECL Standard while prior period amounts will continue to be reported in accordance with previously applicable GAAP.

9

2. EARNINGS PER SHARE

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 260‑10‑45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards (“RSAs”) and certain restricted stock units (“RSUs”) granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities.

The following table presents the computation of EPS for the three months ended March 31, 2020 and 2019:

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

(In thousands, except per share data)

    

2020

    

2019

Net income

 

$

9,348

 

$

12,927

Dividends paid on and earnings allocated to participating securities

 

 

(195)

 

 

(277)

Income attributable to common stock

 

$

9,153

 

$

12,650

 

 

 

 

 

 

 

Weighted average common shares outstanding, including participating securities

 

 

19,946

 

 

19,926

Weighted average participating securities

 

 

(414)

 

 

(426)

Weighted average common shares outstanding

 

 

19,532

 

 

19,500

Basic earnings per common share

 

$

0.47

 

$

0.65

 

 

 

 

 

 

 

Income attributable to common stock

 

$

9,153

 

$

12,650

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

19,532

 

 

19,500

Incremental shares from assumed conversions of options and restricted stock units

 

 

34

 

 

26

Weighted average common and equivalent shares outstanding

 

 

19,566

 

 

19,526

Diluted earnings per common share

 

$

0.47

 

$

0.65

 

There were 180,020 stock options outstanding at March 31, 2020 that were not included in the computation of diluted earnings per share for the three months ended March 31, 2020 because the options' exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. There were 110,660 stock options outstanding at March 31, 2019 that were not included in the computation of diluted earnings per share for the three months ended March 31, 2019 because the options' exercise prices were greater than the average market price of common stock and were, therefore, antidilutive.

There were 26,556 and 22,305 RSUs that were antidilutive for the three months ended March 31, 2020 and 2019, respectively.

3. STOCK-BASED COMPENSATION PLANS

In May 2019, the Company’s shareholders approved the Bridge Bancorp, Inc. 2019 Equity Incentive Plan (the “2019 Equity Incentive Plan”), which provides for the grant of stock-based and other incentive awards to officers, employees and directors of the Company. The 2019 Equity Incentive Plan superseded the Bridge Bancorp, Inc. 2012 Stock-Based Incentive Plan (the “2012 Equity Incentive Plan”). The 2012 Equity Incentive Plan superseded the 2006 Stock-Based Incentive Plan. The maximum number of shares of stock, in the aggregate, that may be granted under the 2019 Equity Incentive Plan as stock options, restricted stock, or restricted stock units is 370,000 plus the number of shares of stock which have been reserved but not issued under the 2012 Equity Incentive Plan, and any awards that are forfeited under the 2012 Equity Incentive Plan after the effective date of the 2019 Equity Incentive Plan. No further grants will be made under the 2012 Equity Incentive Plan. Currently outstanding grants under the 2012 Equity Incentive Plan will not be affected.

The number of shares of common stock of Bridge Bancorp, Inc. available for stock-based awards under the 2019 Equity Incentive Plan is 370,000 plus 162,738 shares that were remaining under the 2012 Equity Incentive Plan. At March 31, 2020, 382,166 shares remain available for issuance, including shares that may be granted in the form of stock options, RSAs, or RSUs.

10

The Compensation Committee of the Board of Directors determines awards under the 2019 Equity Incentive Plan. The Company accounts for the 2019 Equity Incentive Plan under FASB ASC No. 718.

Stock Options