SAN JOSE, CA--(Marketwire - November 4, 2008) - Bridge Capital Holdings (
NASDAQ:
BBNK), whose
subsidiary is Bridge Bank, National Association, announced today its
financial results for the third quarter ended September 30, 2008. The
Company also announced its plans to raise equity to further strengthen its
capital position and sell loans to reduce nonperforming assets.
The Company reported a net loss of $(9.2) million, or $(1.41) per diluted
share, for the three months ended September 30, 2008 compared to net income
of $2.8 million, or $0.40 per diluted share, for the same period last year.
The net loss for the nine months ended September 30, 2008 was $(9.0)
million, or $(1.38) per diluted share compared to net income of $8.2
million, or $1.18 per diluted share, for the first nine months of 2007.
The losses for the third quarter and first nine months of 2008 reflect the
impact of a significant increase in its provision for credit losses related
to planned sales of nonperforming assets.
CEO Commentary on Third Quarter Results and Recent Developments
"Earlier this week, we reached an understanding with private investors to
raise approximately $30.0 million of capital in a private placement. While
the Company's capital ratios continued to exceed the levels considered
"well-capitalized" by regulatory standards, this strategy is a reflection
of our commitment to making certain Bridge Capital Holdings is in the
strongest possible position to navigate this uncertain economic
environment," said Daniel P. Myers, President and Chief Executive Officer
of Bridge Capital Holdings and Bridge Bank. "We are pleased to be able to
raise additional capital in the current environment and we expect to
announce the terms of this transaction when they have been finalized.
Maintaining a strong capital position will provide us with the flexibility
to navigate the current economic environment and to capitalize on growth
opportunities for well-capitalized banks in our market. On a pro forma
basis, following the capital raise, the Company's total risk-based capital
ratio will be approximately 14.0%, well in excess of regulatory standards
for "well capitalized" institutions.
"In addition, in response to the accelerated deterioration of economic
conditions over the past several months, we have made a strategic decision
to sell nonperforming loans in an amount that will significantly reduce our
total nonperforming assets and improve the risk profile of the bank,"
continued Mr. Myers. "The loss in the third quarter reflects the impact of
this decision as we have written the loans down to a liquidation value and
added significantly to our loan loss reserves. Following the completion of
planned asset sales we will have reduced the level of loans in
nonperforming status at September 30, 2008 to less than 2% of total loans,
increased reserves to 2.59% of total loans, and reduced construction and
land development loans to less than 20% of total loans."
"We believe these steps to bolster our capital and reduce our exposure to
nonperforming assets position the Company for the road ahead. We are
confident that the actions we have taken to fortify our balance sheet and
capital levels will position us to continue to meet the needs of our
customers, capitalize on opportunities in the businesses and markets we
know and build upon our foundation of diversified lending. Our core
franchise remains sound."
Third Quarter Highlights
-- Reached an understanding with private investors to raise $30.0 million
of capital in a private placement to further bolster the Company's capital
position. Before the additional capital, the Company's capital ratios
exceeded "well capitalized" thresholds with total risk-based capital of
10.27%; tier 1 risk-based capital of 9.02%; and tier 1 leverage ratio of
8.44%.
-- Nonperforming loans were reduced to 2.81% of gross loans at September
30, 2008, from 3.94% at June 30, 2008 as a result of write-downs related to
the decision to sell at a liquidation value. The Company recorded charges
to the allowance for loan losses of approximately $15.9 million, primarily
to reflect the expected impact of the sale of nonperforming loans.
Completion of the anticipated sales would further reduce nonperforming
loans to 1.08% of gross loans at September 30, 2008 on a pro forma basis.
-- Recorded a net loss of $(9.2) million for the third quarter of 2008
due to a $19.0 million provision to the allowance for loan losses related
to the sales of nonperforming loans.
-- As a result of the provision, the Company's allowance for loan and
lease losses increased to 2.59% of gross loans which approximately doubles
the coverage of nonperforming loans at September 30, 2008 to 92.0%, up from
52.4% at June 30, 2008. After completion of the strategic transactions,
the allowance at September 30, 2008 would represent coverage of 244.1% of
pro-forma nonperforming loans.
-- Total assets as of September 30, 2008 increased to $855.4 million or
$50.1 million over total assets at June 30, 2008. Deposits of $738.7
million at September 30, 2008 increased $21.9 million over June 30, 2008.
At September 30, 2008, demand deposits and core deposits continued to
represent 31% and 86% of total deposits, respectively.
-- Gross loans at September 30, 2008 were $686.7 million compared to
$611.2 million for the same period one year earlier.
Net Interest Income and Margin
Net interest income of $11.0 million for the quarter ended September 30,
2008 represented a decrease of approximately $1.3 million, or 11%, from
$12.3 million for the same quarter one year earlier. Average earning assets
of $821.2 million increased $64.0 million, or 9%, compared to $757.2
million for the same quarter in 2007. The Company's loan-to-deposit ratio,
a measure of leverage, averaged 92.41% during the quarter ended September
30, 2008, which represented an increase compared to an average of 83.54%
for the same quarter of 2007. The increase was a result of faster loan
growth relative to deposit funding.
For the nine months ended September 30, 2008, net interest income of $34.7
million decreased $467,000, or 1%, from $35.2 million for the first nine
months of 2007. Average earning assets of $772.8 million increased $71.0
million, or 10%, compared to $701.8 million for the same period in 2007.
The Company's loan-to-deposit ratio for the nine months ended September 30,
2008 was 95.73%, an increase compared to an average of 86.52% for the nine
months ended September 30, 2007 reflecting faster loan growth relative to
deposit funding.
Changes in short-term interest rates also 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 5.00% and 5.43% in the
quarter and nine months ended September 30, 2008, respectively, compared to
8.18% and 8.23% in the same periods, respectively, one year earlier.
The Company's net interest margin for the quarter ended September 30, 2008
was 5.32% compared to 6.46% for the same period in 2007. The decline was
primarily the result of lower short term interest rates and interest
reversed or foregone in connection with nonaccrual loans offset, in part,
by income from interest rate hedges. During the quarter ended September
30, 2008, the net settlement from interest rate hedges contributed $550,000
to support net interest income compared to a loss of $92,000 for the
quarter ended September 30, 2007.
The Company's net interest margin for the nine months ended September 30,
2008 was 6.01% compared to 6.71% for the same period one year earlier
primarily due to a decrease in short term interest rates and an increase
in nonaccrual loans offset, in part, by an increase in income from interest
rate hedges. During the nine months ended September 30, 2008, the net
settlement from interest rate hedges contributed $1.5 million to support
net interest income compared to a loss of $296,000 for the same period in
2007.
Non-Interest Income
The Company's non-interest income for the quarter and nine months ended
September 30, 2008 was $2.0 million and $5.3 million, respectively,
compared to $1.4 million and $5.3 million, respectively for the same
periods one year ago. For the quarter and nine months ended September 30,
2008 international fee income was $594,000 and $1.4 million, respectively,
compared to $174,000 and $434,000, respectively, for the same periods in
2007. Additionally, included in non-interest income for the quarter and
nine months ended September 30, 2008 was a hedge accounting adjustment of
$151,000 and $603,000, respectively, pertaining to the Company's interest
rate hedges, and the recognition of gains on the sale of securities of
$413,000 and $711,000, respectively.
During the quarter and nine months ended September 30, 2008, the Company
sold SBA loans totaling $2.9 million and $20.3 million, respectively,
compared to $20.3 million and $75.0 million, respectively, for the same
periods in 2007. The loans sold during the first nine months of 2007
included $11.3 million of un-guaranteed loans which resulted in an
additional $1.2 million of non-interest income from the gain on sale for
that period.
Net interest income and non-interest income comprised total revenue of
$12.9 million for the three months ended September 30, 2008 compared to
$13.8 million for the same period one year earlier, representing a decrease
of $825,000, or 6%. For the nine months ended September 30, 2008, total
revenue of $40.1 million compared to $40.6 million for the same period of
2007.
Non-Interest Expense
Non-interest expense was $9.8 million and $28.1 million for the quarter and
nine months ended September 30, 2008, respectively, compared to $8.7
million and $25.0 million, respectively for the same periods in 2007. The
increase in non-interest expense was primarily due to an increase in salary
and benefits expense associated with the Company's expansion. Salary and
benefits expense for the quarter ended September 30, 2008 was $5.9 million,
an increase of $329,000 over $5.5 million in the same period of 2007.
Salary and benefits expense for the nine months ended September 30, 2008
was $17.4 million, an increase of $1.6 million over $15.8 million in the
same period of 2007. As of September 30, 2008 the Company employed 170
full-time equivalents (FTE) compared to 164 FTE on the same date one year
earlier.
The Company's efficiency ratio, the ratio of non-interest expense to
revenues, was 75.74% and 69.98% for the quarter and nine months ended
September 30, 2008, respectively, compared to 63.30% and 61.63%,
respectively for the same periods one year earlier.
Balance Sheet
Bridge Capital Holdings reported total assets at September 30, 2008 of
$855.4 million, compared to $789.9 million at September 30, 2007,
representing growth of $65.5 million, or 8%.
The Company reported total gross loans outstanding at September 30, 2008 of
$686.7 million, which represented an increase of $75.5 million, or 12%,
over $611.2 million as of September 30, 2007. The growth in the loan
portfolio was primarily centered in commercial and industrial loans and
commercial real estate loans. In addition, as of September 30, 2008, 61%
of the loan portfolio consisted of non-real estate loans.
The Company's total deposits were $738.7 million as of September 30, 2008,
compared to total deposits of $702.8 million as of September 30, 2007. The
increase in deposits represented growth of $35.9 million, or 5%, compared
to September 30, 2007. As of September 30, 2008, demand deposits and
core deposits continued to represent 31% and 86% of total deposits,
respectively.
For the quarter and nine months ended September 30, 2008, the Company's
return on average assets was (4.27)% and (1.48)%, respectively, and
compared to 1.36% and 1.46%, respectively, for the same periods one year
earlier. For the quarter and nine months ended September 30, 2008, the
Company's return on average equity was (54.48)% and (17.69)%, respectively,
and compared to 19.02% and 20.20%, respectively for the same periods in
2007. Return on average equity for the third quarter and nine months ended
September 30, 2008 was reduced, in part, by the impact of appreciation in
the value of interest rate hedges to approximately $4.8 million which
increased average other comprehensive income by approximately $2.2 million
and $2.6 million, respectively.
Credit Quality
The allowance for loan losses was $17.8 million, or 2.59% of total loans,
at September 30, 2008, compared to $8.0 million, or 1.31% of total loans,
at September 30, 2007. The provision for credit losses for the three and
nine months ended September 30, 2008 was $19.0 million and $27.6 million,
respectively, compared to $475,000 and $1.7 million, respectively, for the
same periods in 2007.
Nonperforming assets at September 30, 2008 consisted of thirteen lending
relationships totaling $19.3 million that were on non-accrual status and
determined to be impaired based upon the criteria set forth in SFAS No.
114, undeveloped land valued at $658,000 categorized as "other real estate
owned", and one commercial property valued at $204,000 categorized as
"other real estate owned".
During the third quarter of 2008, in part as the result of decisions to
effect strategic transactions to reduce nonperforming loans, the Company
charged-off $15.9 million of loss exposure. As a result, there no longer
was an indicated potential loss exposure pertaining to nonperforming loans
and no impairment reserves were required to be included in the allowance
for credit losses.
The Company's loan charge-offs of $15.9 million during the third quarter
ended September 30, 2008 compared to $312,000 for the same period one year
earlier. The Company recognized $34,000 in loan recoveries and $250,000 in
loan recoveries for the three months ended September 30, 2008 and 2007,
respectively.
"We are taking decisive steps to proactively respond to a challenging and
rapidly changing economic environment," said Thomas A. Sa, Executive Vice
President and Chief Financial Officer of Bridge Capital Holdings and Bridge
Bank. "Upon completion of our planned asset sales and capital raise in the
fourth quarter of 2008, we will be in a strong position with reserves of
over 2.6% of total loans and total risk-based capital approaching 14%."
Capital Adequacy
At September 30, 2008, shareholders' equity totaled $57.7 million, which
included approximately $2.2 million in other comprehensive income as the
result of increased value of interest rate hedges. Shareholders' equity at
September 30, 2008 compared to $60.0 million on the same date one year
earlier. The Company's total risk-based capital ratio, tier one capital
ratio, and leverage ratio of 10.27%, 9.02%, and 8.44%, respectively, all
exceeded the regulatory standards for "well-capitalized" institutions of
10.00%, 6.00%, 5.00%, respectively.
Conference Call and Webcast
Management will host a conference call tomorrow, November 5, 2008 at 9:00
a.m. Eastern time/6:00 a.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, and entering reservation code 70438459. 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 for 48 hours following the conclusion
of the call by dialing 800.642.1687 from the United States, or 706.645.9291
from outside the United States, and entering reservation code 70438459. A
webcast replay will be available for 90 days.
About Bridge Capital Holdings
Bridge Capital Holdings is the holding company for Bridge Bank, National
Association. Bridge Capital Holdings was formed on October 1, 2004 and
holds a Global Select listing on The NASDAQ Stock Market under the trading
symbol BBNK. For additional information, visit the Bridge Capital Holdings
website at
http://www.bridgecapitalholdings.com.
About Bridge Bank, N.A.
Bridge Bank, N.A. 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." Forward-looking statements describe
future plans, strategies and expectations, such as, for example, the
Company's plans to divest itself of non-performing assets, to sell
convertible preferred shares and expectations regarding capital ratios.
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 reach
definitive agreements regarding and to subsequently complete the sales of
nonperforming assets and convertible preferred shares, 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 Nine months ended
--------- --------- --------- --------- ---------
09/30/08 06/30/08 09/30/07 09/30/08 09/30/07
--------- --------- --------- --------- ---------
INTEREST INCOME
Loans $ 13,632 $ 14,248 $ 15,585 $ 43,107 $ 45,202
Federal funds sold 512 146 1,138 835 2,415
Investment
securities
available for sale 69 518 904 1,204 2,324
Other 45 36 - 81 -
--------- --------- --------- --------- ---------
Total interest
income 14,258 14,948 17,627 45,227 49,941
--------- --------- --------- --------- ---------
INTEREST EXPENSE
Deposits:
Interest-bearing
demand 3 3 10 10 33
Money market and
savings 2,083 1,997 3,984 6,662 10,609
Certificates of
deposit 894 941 1,039 2,923 3,307
Other 291 283 262 889 782
--------- --------- --------- --------- ---------
Total interest
expense 3,271 3,224 5,295 10,484 14,731
--------- --------- --------- --------- ---------
Net interest income 10,987 11,724 12,332 34,743 35,210
Provision for credit
losses 19,000 6,200 475 27,570 1,675
--------- --------- --------- --------- ---------
Net interest income
after provision
for credit
losses (8,013) 5,524 11,857 7,173 33,535
--------- --------- --------- --------- ---------
NON-INTEREST INCOME
Service charges on
deposit accounts 327 258 166 814 497
Gain on sale of SBA
loans 87 186 363 556 2,986
Other non-interest
income 1,541 1,271 906 3,971 1,859
--------- --------- --------- --------- ---------
Total non-interest
income 1,955 1,715 1,435 5,341 5,342
--------- --------- --------- --------- ---------
OPERATING EXPENSES
Salaries and
benefits 5,859 5,912 5,530 17,421 15,796
Premises and fixed
assets 1,163 1,156 1,173 3,424 3,149
Other 2,780 2,443 2,012 7,204 6,046
--------- --------- --------- --------- ---------
Total operating
expenses 9,802 9,511 8,715 28,049 24,991
--------- --------- --------- --------- ---------
Income before income
taxes (15,860) (2,272) 4,577 (15,535) 13,886
Income taxes (6,655) (945) 1,825 (6,525) 5,707
--------- --------- --------- --------- ---------
NET INCOME $ (9,205) $ (1,327) $ 2,752 $ (9,010) $ 8,179
========= ========= ========= ========= =========
EARNINGS PER SHARE
Basic earnings per
share $ (1.41) $ (0.20) $ 0.43 $ (1.38) $ 1.28
========= ========= ========= ========= =========
Diluted earnings per
share $ (1.41) $ (0.20) $ 0.40 $ (1.38) $ 1.18
========= ========= ========= ========= =========
Average common
shares outstanding 6,533,545 6,492,647 6,397,140 6,487,200 6,369,991
========= ========= ========= ========= =========
Average common and
equivalent
shares outstanding 6,533,545 6,861,043 6,947,833 6,487,200 6,923,726
========= ========= ========= ========= =========
PERFORMANCE MEASURES
Return on average
assets -4.27% -0.66% 1.36% -1.48% 1.46%
Return on average
equity -54.48% -7.70% 19.02% -17.69% 20.20%
Efficiency ratio 75.74% 70.77% 63.30% 69.98% 61.63%
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
09/30/08 06/30/08 03/31/08 12/31/07 09/30/07
--------- --------- --------- --------- ---------
ASSETS
Cash and due from
banks $ 21,286 $ 31,458 $ 25,138 $ 27,440 $ 19,076
Federal funds sold 113,735 12,765 16,880 13,395 70,155
Interest-bearing
deposits 4,915 5,606 - - -
Investment
securities
available for sale 101 28,879 46,823 55,482 66,071
Loans:
Commercial 286,793 292,731 271,390 272,660 264,360
SBA 69,921 64,596 61,472 56,945 63,205
Real estate
construction 97,255 99,712 85,522 85,378 83,030
Land and land
development 41,136 58,863 60,783 56,196 58,938
Real estate other 130,845 132,341 128,134 114,846 85,500
Factoring and
asset-based
lending 50,006 46,819 53,108 57,662 43,942
Other 10,767 12,048 10,898 9,042 12,231
--------- --------- --------- --------- ---------
Loans, gross 686,723 707,110 671,307 652,729 611,206
Unearned fee income (1,817) (2,071) (1,664) (1,856) (1,616)
Allowance for
credit losses (17,764) (14,608) (10,978) (8,608) (8,003)
--------- --------- --------- --------- ---------
Loans, net 667,142 690,431 658,665 642,265 601,587
Premises and
equipment, net 5,044 5,093 5,045 5,005 4,618
Accrued interest
receivable 3,217 3,325 4,074 4,400 4,748
Other assets 39,967 27,795 28,381 26,845 23,622
--------- --------- --------- --------- ---------
Total assets $ 855,407 $ 805,352 $ 785,006 $ 774,832 $ 789,877
========= ========= ========= ========= =========
LIABILITIES
Deposits:
Demand noninterest-
bearing $ 223,843 $ 229,329 $ 200,567 $ 198,641 $ 201,133
Demand interest-
bearing 4,224 4,439 4,587 5,350 4,271
Money market and
savings 404,212 386,332 386,369 372,923 418,503
Time 106,460 96,714 97,719 94,442 78,943
--------- --------- --------- --------- ---------
Total deposits 738,739 716,814 689,242 671,356 702,850
--------- --------- --------- --------- ---------
Junior subordinated
debt securities 17,527 17,527 17,527 17,527 17,527
Other borrowings 30,000 - - 10,000 -
Accrued interest
payable 274 224 190 210 298
Other liabilities 11,176 4,605 9,176 10,655 9,187
--------- --------- --------- --------- ---------
Total liabilities 797,716 739,170 716,135 709,748 729,862
--------- --------- --------- --------- ---------
SHAREHOLDERS' EQUITY
Common stock 39,139 38,703 38,040 37,697 36,888
Retained earnings 16,399 25,604 26,931 25,409 22,722
Accumulated other
comprehensive
(loss) 2,153 1,875 3,900 1,978 405
--------- --------- --------- --------- ---------
Total
shareholders'
equity 57,691 66,182 68,871 65,084 60,015
--------- --------- --------- --------- ---------
Total liabilities
and
shareholders'
equity $ 855,407 $ 805,352 $ 785,006 $ 774,832 $ 789,877
========= ========= ========= ========= =========
CAPITAL ADEQUACY
Tier I leverage
ratio 8.44% 10.26% 10.52% 10.66% 10.20%
Tier I risk-based
capital ratio 9.02% 10.12% 10.47% 10.54% 10.68%
Total risk-based
capital ratio 10.27% 11.37% 11.72% 11.67% 11.80%
Total equity/ total
assets 6.74% 8.22% 8.77% 8.40% 7.60%
Book value per share $ 8.74 $ 10.06 $ 10.58 $ 10.04 $ 9.32
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
Three months ended September 30,
-------------------------------------------------------
2008 2007
--------------------------- ---------------------------
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
--------- ------- -------- --------- ------- --------
ASSETS
Interest earning
assets (2):
Loans (1) $ 705,402 7.69% $ 13,632 $ 597,214 10.35% $ 15,585
Federal funds
sold 104,909 1.94% 512 89,483 5.05% 1,138
Investment
securities 5,419 5.07% 69 70,498 5.09% 904
Other 5,481 3.27% 45 - 0.00% -
--------- ------- -------- --------- ------- --------
Total interest
earning assets 821,211 6.91% 14,258 757,195 9.24% 17,627
--------- ------- -------- --------- ------- --------
Noninterest-earning
assets:
Cash and due from
banks 18,154 20,882
All other assets
(3) 19,190 23,172
--------- ---------
TOTAL $ 858,555 $ 801,249
========= =========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
liabilities:
Deposits:
Demand $ 5,340 0.22% $ 3 $ 5,761 0.69% $ 10
Money market and
savings 420,900 1.97% 2,083 417,255 3.79% 3,984
Time 99,290 3.58% 894 84,149 4.90% 1,039
Other 21,386 5.41% 291 17,527 5.93% 262
--------- ------- -------- --------- ------- --------
Total
interest-bearing
liabilities 546,916 2.38% 3,271 524,692 4.00% 5,295
--------- ------- -------- --------- ------- --------
Noninterest-bearing
liabilities:
Demand deposits 237,831 207,753
Accrued expenses
and
other liabilities 6,586 11,404
Shareholders'
equity 67,222 57,400
--------- ---------
TOTAL $ 858,555 $ 801,249
========= =========
------- -------- ------- --------
Net interest income
and margin 5.32% $ 10,987 6.46% $ 12,332
======= ======== ======= ========
(1) Loan fee amortization of $1.2 million and $1.5 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 $15.8 million and $7.8
million, respectively.
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
Nine months ended September 30,
-------------------------------------------------------
2008 2007
--------------------------- ---------------------------
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
--------- ------- -------- --------- ------- --------
ASSETS
Interest earning
assets (2):
Loans (1) $ 684,690 8.41% $ 43,107 $ 578,204 10.41% $ 45,202
Federal funds
sold 52,514 2.12% 835 62,803 5.12% 2,415
Investment
securities 32,332 4.97% 1,204 60,809 5.09% 2,324
Other 3,294 3.28% 81 - 0.00% -
--------- ------- -------- --------- ------- --------
Total interest
earning assets 772,830 7.82% 45,227 701,816 9.48% 49,941
--------- ------- -------- --------- ------- --------
Noninterest-earning
assets:
Cash and due from
banks 19,062 27,210
All other assets
(3) 22,791 21,145
--------- ---------
TOTAL $ 814,683 $ 750,171
========= =========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
liabilities:
Deposits:
Demand $ 5,271 0.25% $ 10 $ 5,563 0.79% $ 33
Money market and
savings 390,347 2.28% 6,662 370,379 3.82% 10,609
Time 98,349 3.97% 2,923 91,247 4.83% 3,307
Other 22,184 5.35% 889 17,527 5.94% 782
--------- ------- -------- --------- ------- --------
Total
interest-bearing
liabilities 516,151 2.71% 10,484 484,716 4.05% 14,731
--------- ------- -------- --------- ------- --------
Noninterest-bearing
liabilities:
Demand deposits 221,257 201,103
Accrued expenses
and
other liabilities 9,258 10,209
Shareholders'
equity 68,017 54,143
--------- ---------
TOTAL $ 814,683 $ 750,171
========= =========
------- -------- ------- --------
Net interest income
and margin 6.01% $ 34,743 6.68% $ 35,210
======= ======== ======= ========
(1) Loan fee amortization of $4.3 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 $11.9 million and $7.5
million, respectively.
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
(Dollars in Thousands)
09/30/08 06/30/08 03/31/08 12/31/07 09/30/07
-------- -------- -------- -------- --------
ALLOWANCE FOR CREDIT
LOSSES
Balance, beginning of
period $ 14,608 $ 10,978 $ 8,608 $ 8,003 $ 7,590
Provision for credit
losses, quarterly 19,000 6,200 2,370 600 475
Charge-offs, quarterly (15,878) (2,571) - - (312)
Recoveries, quarterly 34 1 - 5 250
-------- -------- -------- -------- --------
Balance, end of period $ 17,764 $ 14,608 $ 10,978 $ 8,608 $ 8,003
======== ======== ======== ======== ========
NONPERFORMING ASSETS
Loans accounted for on a
non-accrual basis $ 19,316 $ 27,872 $ 15,578 $ 4,914 $ -
Loans restructured and in
compliance with
modified terms - - - - -
Other loans with
principal or interest
contractually
past due 90 days or more - - - - -
-------- -------- -------- -------- --------
Nonperforming loans 19,316 27,872 15,578 4,914 -
Other real estate owned 862 979 348 425 425
-------- -------- -------- -------- --------
Nonperforming assets $ 20,178 $ 28,851 $ 15,926 $ 5,339 $ 425
======== ======== ======== ======== ========
ASSET QUALITY
Allowance for credit
losses / gross loans 2.59% 2.07% 1.64% 1.32% 1.31%
Allowance for credit
losses / nonperforming
loans 91.97% 52.41% 70.47% 175.17% 0.00%
Nonperforming assets /
total assets 2.36% 3.58% 2.03% 0.69% 0.05%
Nonperforming loans /
gross loans 2.81% 3.94% 2.32% 0.75% 0.00%
Net quarterly charge-offs
/ gross loans 2.31% 0.36% 0.00% 0.00% 0.01%