BDGE Bridge Bancorp Inc

Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced fourth quarter and year end results for 2020.

The Company's fourth quarter and full year 2020 financial results included:

• Net income for the 2020 fourth quarter of $9.0 million, or $0.45 per diluted share, inclusive of merger and stock acceleration expenses related to the Company’s merger with Dime Community Bancshares, Inc. (“Dime”).
• Excluding merger and stock acceleration expenses, and related tax adjustments, adjusted net income for the 2020 fourth quarter was $15.0 million, or $0.75 per diluted share.1
• Net income for the full year 2020 of $42.0 million, or $2.11 per diluted share, compared to $51.7 million, or $2.59 per diluted share, for the full year 2019.
• Excluding merger and stock acceleration expenses, and related tax adjustments, adjusted net income for the full year 2020 was $50.4 million, or $2.52 per diluted share.1
• Adjusted pre-tax pre-provision net revenue was $19.9 million for the 2020 fourth quarter, $1.0 million lower compared to the linked quarter, and a $1.1 million, or 6%, increase year-over-year.1
• Net interest income grew $2.3 million compared to the linked quarter, to $43.0 million, with a tax-equivalent net interest margin of 2.94%, or 3.24% on an adjusted basis.
• Total assets increased to $6.4 billion at December 31, 2020, 2% higher than September 30, 2020.
• Total deposits increased $120.2 million, and the cost of total deposits decreased 6 basis points, compared to the linked quarter.
• Non-public, non-brokered deposit growth of $19.6 million, or 2% annualized, compared to September 30, 2020, and $1.3 billion, or 43%, from December 31, 2019.
• Non-performing assets of $12.2 million at December 31, 2020, $5.1 million higher than September 30, 2020 and $7.8 million higher than December 31, 2019. Allowance for credit losses coverage to total loans of 0.96% at December 31, 2020.
• Total remaining loan payment deferrals at January 22, 2021 were $76.1 million, or 1.7%, of total loans held for investment.
• Provision for credit losses of $0.5 million, a decline of $1.0 million on a linked quarter basis.
• All capital ratios remain strong. Declared a dividend of $0.24 during the quarter.1 See reconciliation of this non-GAAP financial measure provided elsewhere herein.

Commenting on the results, Kevin O’Connor, President and CEO said, “As we close the book on 2020, and look forward to opening as the new Dime Community Bank on February 1, 2021, we begin a new chapter in the story of Bridge Bancorp. I am amazed at the collective accomplishments of our team. Not just during the challenges of 2020, but in the past decade and over the last 110 years. Several years ago, we developed a mission statement, ‘To Be the Preeminent Community Bank in Our Markets, Providing Added Value and Superior Customer Service.’ Surveying our shared achievements, I’m proud to say, ‘Mission Accomplished!’”

Net Earnings and ReturnsNet income in the 2020 fourth quarter was $9.0 million, or $0.45 per diluted share, which was $4.1 million, or $0.21 per diluted share, lower than the 2020 third quarter, primarily attributable to higher non-interest expense and lower non-interest income, partially offset by growth in net interest income, and lower provision for credit losses. Excluding the impact of merger and stock acceleration expenses, and related tax adjustments, net income for the 2020 fourth quarter was $15.0 million, or $0.75 per diluted share. Net income for the full year 2020 was $42.0 million, or $2.11 per diluted share, compared to $51.7 million, or $2.59 per diluted share, in 2019.

Returns on average assets and equity in the 2020 fourth quarter were 0.56% and 6.85%, respectively. Return on average tangible common equity was 8.67% for the 2020 fourth quarter (see reconciliation of this non-GAAP financial measure provided elsewhere herein). The merger and stock acceleration expenses, and related tax adjustments incurred during the quarter reduced returns on average assets, equity and tangible common equity by approximately 38 basis points, 462 basis points, and 596 basis points, respectively.

Net Interest IncomeInterest income was $47.5 million in the 2020 fourth quarter, an increase of $1.2 million compared to the 2020 third quarter, primarily due to loan portfolio growth and higher average yields on loans, partially offset by a decline in the securities portfolio and lower average yields on securities. Interest expense was $4.5 million in the 2020 fourth quarter, a decrease of $1.1 million compared to the 2020 third quarter, primarily due to a decrease in the average cost of deposits and a decrease in average borrowings, partially offset by an increase in average deposits.

The tax-equivalent net interest margin in the 2020 fourth quarter showed an increase of 11 basis points to 2.94% from 2.83% in the linked quarter. 2020 fourth quarter loan yields showed an increase of 11 basis points to 3.83% from 3.72% in the linked quarter.

		Three Months Ended									Change Compared To
		December 31,			September 30,			December 31,			September 30,			December 31,
		2020			2020			2019			2020			2019
Average yield on loans, tax-equivalent basis			3.83	%		3.72	%		4.45	%		11	bp		(62	)bp
Net interest margin - as reported (1)			2.93	%		2.82	%		3.25	%		11	bp		(32	)bp
Net interest margin, tax-equivalent basis (2)			2.94			2.83			3.26			11			(32	)
Adjusted net interest margin (non-GAAP) (3)			3.24			3.22			3.27			2			(3	)

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(1)	Net interest margin represents net interest income divided by average interest-earning assets.
(2)	Net interest margin, tax-equivalent basis represents net interest income on a tax-equivalent basis divided by average interest-earning assets.
(3)	Adjusted net interest margin represents adjusted net interest income on a tax-equivalent basis, excluding deposits with banks and Paycheck Protection Program (“PPP”) loans, divided by adjusted average interest-earning assets, excluding deposits with banks and PPP loans.

Provision for Credit LossesThe provision for credit loss expense was $0.5 million for the 2020 fourth quarter, $1.0 million lower than the 2020 third quarter, and $11.5 million for the full year 2020, $5.8 million higher than the full year 2019. The Company recorded additional expected credit losses in the 2020 first and second quarters related to its estimate of the economic impact of the COVID-19 pandemic. The Company recognized net recoveries of $0.2 million in the 2020 fourth quarter, compared to net charge-offs of $1.4 million in the 2020 third quarter. The Company recognized net charge-offs of $1.7 million in the full year 2020, compared to net charge-offs of $4.3 million in the full year 2019.

Non-Interest IncomeNon-interest income was $5.4 million for the 2020 fourth quarter, which was $1.3 million lower compared to the 2020 third quarter, primarily attributable to net securities gains in the 2020 third quarter and a decrease in gain on sale of SBA loans during the 2020 fourth quarter, partially offset by a loss on termination of swaps in the 2020 third quarter. Non-interest income was $19.7 million for the full year 2020, $5.7 million lower than the full year 2019, driven primarily by a loss on termination of swaps in the 2020 third quarter, and decreases in loan swap fees, the fair value of loans held for sale, and service charges during 2020, partially offset by increases in net securities gains and gain on sale of SBA loans. Additionally, there was an increase in title fees on a year-over-year and linked quarter basis as real estate activity increased in our eastern markets.

Non-Interest ExpenseNon-interest expense for the 2020 fourth quarter of $35.1 million was $6.1 million higher than the 2020 third quarter. Non-interest expense for the full year 2020 increased to $113.3 million from $96.1 million in full year 2019. The increase in the fourth quarter was primarily due to stock acceleration expense related to the Company’s merger with Dime. The increase in full year non-interest expense was primarily due to higher salaries and benefits expense, related to an increase in incentive accruals, in addition to merger and stock acceleration expenses. Excluding the impact of merger and stock acceleration expenses, total non-interest expense in the 2020 fourth quarter and full year 2020 would have been $28.8 million and $104.6 million, respectively.

Income Tax ExpenseIncome tax expense was $3.9 million in the 2020 fourth quarter, a decrease of $0.1 million compared to the 2020 third quarter. The effective tax rate for the 2020 fourth quarter was 30.2%, compared to 23.4% in the 2020 third quarter. Income tax expense was $13.7 million in the full year 2020, a decrease of $0.4 million compared to the full year 2019. The effective tax rate for the full year 2020 was 24.6%, compared to 21.4% for the full year 2019. The increase in the Company’s effective tax rate resulted primarily from non-deductible salaries and merger expenses related to the Company’s merger with Dime.

Balance SheetTotal assets were $6.4 billion at December 31, 2020, $111.9 million higher than September 30, 2020. The rise in total assets compared to the linked quarter was largely attributable to a $153.5 million increase in interest-earning deposits with banks.

Total loans held for investment decreased $42.1 million to $4.6 billion during the 2020 fourth quarter, which includes the reclassification of a $43.0 million loan portfolio to held for sale as of December 31, 2020. Net deferred loan fees were $8.2 million at December 31, 2020, inclusive of $15.4 million remaining unamortized net loan fees related to PPP loans. The allowance for credit losses was $44.2 million at December 31, 2020, $0.7 million higher than September 30, 2020. The allowance as a percentage of loans was 0.96% and 0.94% at December 31, 2020 and September 30, 2020, respectively.

Total deposits increased $120.2 million (9% annualized) to $5.5 billion during the 2020 fourth quarter. Demand deposits increased $226.4 million during the 2020 fourth quarter to $2.5 billion at December 31, 2020, representing 45% of total deposits.

Total stockholders’ equity was $517.8 million at December 31, 2020, $5.6 million higher than September 30, 2020. The growth reflects earnings, partially offset by shareholders’ dividends. During the 2020 first quarter, the Company purchased 179,620 shares of its common stock under the repurchase plan at a cost of $4.6 million. Book value per share was $26.23 at December 31, 2020, $0.29 higher than September 30, 2020. Tangible book value per share was $20.69 at December 31, 2020, $0.29 higher than September 30, 2020 (see reconciliation of this non-GAAP financial measure provided elsewhere herein).

Balance Sheet Highlights (unaudited)

													Change Compared To
		December 31,				September 30,				December 31,			September 30,				December 31,
(Dollars in thousands)		2020				2020				2019			2020				2019
Total assets		$	6,434,296			$	6,322,377			$	4,921,520		$	111,919			$	1,512,776
Total stockholders' equity			517,831				512,221				497,154			5,610				20,677
Loans held for investment
Investor commercial real estate ("CRE")		$	1,081,443			$	1,097,290			$	1,034,599		$	(15,847	)		$	46,844
Owner-occupied CRE			557,076				532,597				531,088			24,479				25,988
Construction and land			82,479				66,826				97,311			15,653				(14,832	)
Commercial and industrial			682,495				670,796				679,444			11,699				3,051
Paycheck Protection Program ("PPP")			844,652				960,371				-			(115,719	)			844,652
Total commercial			3,248,145				3,327,880				2,342,442			(79,735	)			905,703
Multi-family			899,730				853,263				812,174			46,467				87,556
Residential real estate			434,689				449,984				493,144			(15,295	)			(58,455	)
Installment and consumer			23,019				22,520				24,836			499				(1,817	)
Net deferred loan (fees) costs			(8,180	)			(14,174	)			7,689			5,994				(15,869	)
Total loans held for investment		$	4,597,403			$	4,639,473			$	3,680,285		$	(42,070	)		$	917,118
Deposits
Total IPC deposits		$	4,338,170			$	4,318,594			$	3,042,171		$	19,576			$	1,295,999
Brokered deposits			126,350				122,543				164,034			3,807				(37,684	)
Public deposits			1,024,733				927,932				608,442			96,801				416,291
Total public and brokered deposits			1,151,083				1,050,475				772,476			100,608				378,607
Total deposits		$	5,489,253			$	5,369,069			$	3,814,647		$	120,184			$	1,674,606
Loan-to-deposit ratio			83.75		%		86.41		%		96.48	%		(2.66	)	%		(12.72	)	%

Loan and Line of Credit Origination Information (unaudited)

		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,			December 31,
(Dollars in thousands)		2020			2020			2019			2020			2019
Investor CRE		$	27,221		$	68,597		$	68,562		$	183,616		$	243,512
Owner-occupied CRE			23,533			23,937			20,221			104,477			118,286
Commercial and industrial			134,147			97,209			79,404			372,772			332,167
PPP			—			10,666			—			960,395			—
Multi-family			68,511			19,773			175,906			175,529			297,860
Residential real estate			4,442			1,683			9,228			18,748			35,517
Other			52,246			28,010			18,618			110,465			94,337
Total loan and line of credit originations		$	310,100		$	249,875		$	371,939		$	1,926,002		$	1,121,679

Asset QualityAsset quality measures remained solid, as non-performing assets were $12.2 million, or 0.19% of total assets, at December 31, 2020, compared to $7.1 million, or 0.11% of total assets, at September 30, 2020. Non-performing loans were $12.2 million, or 0.26% of total loans, at December 31, 2020, compared to $7.1 million, or 0.15% of total loans at September 30, 2020. Loans 30 to 89 days past due increased $0.9 million to $11.6 million at December 31, 2020, compared to $10.7 million at September 30, 2020.

About Bridge Bancorp, Inc.Bridge Bancorp, Inc. is a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, BNB Bank. Established in 1910, BNB, with assets of approximately $6.4 billion, operates 39 branch locations serving Long Island and the greater New York metropolitan area. Through its branch network and its electronic delivery channels, BNB provides deposit and loan products and financial services to local businesses, consumers and municipalities. Title insurance services are offered through BNB's wholly-owned subsidiary, Bridge Abstract. Bridge Financial Services, Inc., a wholly-owned subsidiary of BNB, offers financial planning and investment consultation. For more information visit www.bnbbank.com.

BNB also has a rich tradition of involvement in the community, supporting programs and initiatives that promote local business, the environment, education, healthcare, social services and the arts.

Please see the attached tables for selected financial information.

Forward Looking StatementsThis release may contain statements relating to the future results of the Company (including certain projections and business trends) that are considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). Such forward-looking statements, in addition to historical information, involve risk and uncertainties, and are based on the beliefs, assumptions and expectations of management of the Company. Words such as “expects,” “believes,” “should,” “plans,” “anticipates,” “will,” “potential,” “could,” “intends,” “may,” “outlook,” “predicts,” “projects,” “would,” “estimates,” “assumes,” “likely,” and variation of such similar expressions are intended to identify such forward-looking statements. Examples of forward-looking statements include, but are not limited to, possible or assumed estimates with respect to the financial condition, expected or anticipated revenue, tax rates, and results of operations and business of the Company, including earnings growth; revenue growth in retail banking, lending and other areas; origination volume in the consumer, commercial and other lending businesses; current and future capital management programs; non-interest income levels, including fees from the title abstract subsidiary and banking services as well as product sales; tangible capital generation; market share; expense levels; and other business operations and strategies. The Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.

Factors that could cause future results to vary from current management expectations include, but are not limited to, changing economic conditions; legislative and regulatory changes, including increases in FDIC insurance rates; monetary and fiscal policies of the federal government; changes in tax policies; rates and regulations of federal, state and local tax authorities; changes in interest rates; deposit flows; the cost of funds; demands for loan products; demand for financial services; competition; changes in the quality and composition of BNB’s loan and investment portfolios; changes in management’s business strategies; changes in accounting principles, policies or guidelines; changes in real estate values; an unexpected increase in operating costs; expanded regulatory requirements; expenses related to our proposed merger with Dime Community Bancshares, Inc., unexpected delays related to the merger, or our inability to obtain regulatory approvals or satisfy other closing conditions required to complete the merger; and other risk factors discussed elsewhere, and in our reports filed with the Securities and Exchange Commission. In addition, the COVID-19 pandemic is having an adverse impact on the Company, its customers and the communities it serves. The adverse effect of the COVID-19 pandemic on the Company, its customers and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. The forward-looking statements are made as of the date of this report, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.BRIDGE BANCORP, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Condition (unaudited)(In thousands)

		December 31,				September 30,				December 31,
		2020				2020				2019
Assets
Cash and due from banks		$	107,729			$	94,892			$	77,693
Interest-earning deposits with banks			769,099				615,575				39,501
Total cash and cash equivalents			876,828				710,467				117,194
Securities available for sale, at fair value			450,360				466,081				638,291
Securities held to maturity			85,700				100,934				133,638
Total securities			536,060				567,015				771,929
Securities, restricted			23,362				23,362				32,879
Loans held for sale			52,785				10,000				12,643
Loans held for investment			4,597,403				4,639,473				3,680,285
Allowance for credit losses			(44,200	)			(43,474	)			(32,786	)
Loans held for investment, net			4,553,203				4,595,999				3,647,499
Premises and equipment, net			34,872				34,341				34,062
Operating lease right-of-use assets			44,007				44,642				43,450
Goodwill and other intangible assets			109,328				109,398				109,627
Accrued interest receivable and other assets			203,851				227,153				152,237
Total assets		$	6,434,296			$	6,322,377			$	4,921,520
Liabilities and stockholders' equity
Demand deposits		$	2,304,794			$	2,176,391			$	1,386,037
Savings and negotiable order of withdrawal ("NOW") deposits			632,126				686,310				438,902
Money market deposit accounts ("MMDA")			1,213,506				1,265,136				1,012,322
Certificates of deposit of less than $100,000			50,350				52,797				58,640
Certificates of deposit of $100,000 or more			137,394				137,960				146,270
Total individual, partnership and corporate ("IPC") deposits			4,338,170				4,318,594				3,042,171
Brokered deposits			126,350				122,543				164,034
Public funds - demand deposits			167,933				69,914				132,921
Public funds - other deposits			856,800				858,018				475,521
Total public and brokered deposits			1,151,083				1,050,475				772,476
Total deposits			5,489,253				5,369,069				3,814,647
Federal funds purchased and repurchase agreements			1,223				1,353				999
Federal Home Loan Bank ("FHLB") advances			215,000				215,000				435,000
Subordinated debentures, net			79,059				79,024				78,920
Operating lease liabilities			46,713				47,383				45,977
Other liabilities and accrued expenses			85,217				98,327				48,823
Total liabilities			5,916,465				5,810,156				4,424,366
Total stockholders' equity			517,831				512,221				497,154
Total liabilities and stockholders' equity		$	6,434,296			$	6,322,377			$	4,921,520

BRIDGE BANCORP, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Income (unaudited)(In thousands)

		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2020				2020				2019				2020				2019
Interest income		$	47,484			$	46,296			$	44,320			$	184,232			$	181,541
Interest expense			4,492				5,589				8,672				23,451				39,338
Net interest income			42,992				40,707				35,648				160,781				142,203
Provision for credit losses			500				1,500				600				11,500				5,700
Net interest income after provision for credit losses			42,492				39,207				35,048				149,281				136,503
Non-interest income:
Service charges and other fees			2,351				2,215				2,487				8,955				10,059
Title fees			928				695				571				2,337				1,720
Net securities gains			—				3,540				—				3,525				201
Loss on termination of swaps			—				(3,403	)			—				(3,403	)			—
Change in fair value of loans held for sale			(234	)			—				—				(2,877	)			—
Gain on sale of SBA loans			909				2,191				322				3,940				1,984
Bank owned life insurance			548				543				560				2,186				2,230
Loan swap fees			637				554				4,260				3,742				7,460
Other			305				455				226				1,298				1,733
Total non-interest income			5,444				6,790				8,426				19,703				25,387
Non-interest expense:
Salaries and employee benefits			17,109				16,406				15,011				62,983				56,244
Stock acceleration expense			4,176				—				—				4,176				—
Occupancy and equipment			3,669				3,599				3,791				14,287				14,372
Merger expenses			2,100				2,352				—				4,452				—
Amortization of other intangible assets			149				149				182				656				787
Other			7,875				6,431				6,348				26,703				24,736
Total non-interest expense			35,078				28,937				25,332				113,257				96,139
Income before income taxes			12,858				17,060				18,142				55,727				65,751
Income tax expense			3,881				3,999				3,934				13,685				14,060
Net income		$	8,977			$	13,061			$	14,208			$	42,042			$	51,691
Earnings Per Share (unaudited)
(In thousands, except per share data)		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2020				2020				2019				2020				2019
Net income		$	8,977			$	13,061			$	14,208			$	42,042			$	51,691
Dividends paid on and earnings allocated to participating securities			(183	)			(276	)			(299	)			(872	)			(1,096	)
Income attributable to common stock		$	8,794			$	12,785			$	13,909			$	41,170			$	50,595
Weighted average common shares outstanding, including participating securities			19,908				19,896				19,957				19,903				19,952
Weighted average participating securities			(392	)			(423	)			(419	)			(409	)			(424	)
Weighted average common shares outstanding			19,516				19,473				19,538				19,494				19,528
Basic earnings per common share		$	0.45			$	0.66			$	0.71			$	2.11			$	2.59
Weighted average common shares outstanding			19,516				19,473				19,538				19,494				19,528
Incremental shares from assumed conversions of options and restricted stock units			58				41				40				55				31
Weighted average common and equivalent shares outstanding			19,574				19,514				19,578				19,549				19,559
Diluted earnings per common share		$	0.45			$	0.66			$	0.71			$	2.11			$	2.59

BRIDGE BANCORP, INC. AND SUBSIDIARIESConsolidated Financial Highlights (unaudited)(In thousands, except per share amounts and financial ratios)

		Three Months Ended						Year Ended
		December 31,		September 30,		December 31,		December 31,		December 31,
		2020		2020		2019		2020		2019
Selected Financial Data:
Return on average total assets		0.56	%	0.83	%	1.18	%	0.72	%	1.10	%
Adjusted return on average total assets (1)		0.94		0.98		1.18		0.86		1.10
Return on average stockholders' equity		6.85		10.15		11.40		8.26		10.84
Adjusted return on average stockholders' equity (1)		11.47		11.93		11.40		9.90		10.84
Return on average tangible common equity (1) (2)		8.67		12.90		14.66		10.52		14.09
Adjusted return on average tangible common equity (1) (2)		14.63		15.28		14.81		12.74		14.26
Net interest rate spread, tax-equivalent basis		2.71		2.55		2.79		2.70		2.80
Net interest margin, tax-equivalent basis		2.94		2.83		3.26		2.99		3.31
Average interest-earning assets to average interest-bearing liabilities		175.43		169.28		159.10		168.19		155.99
Efficiency ratio		72.42		60.92		57.48		62.75		57.37
Adjusted efficiency ratio (1)		58.77		55.71		56.93		56.62		56.79
Operating expense/average assets		2.20		1.84		2.10		1.93		2.04
Adjusted operating expense/average assets (1)		1.80		1.68		2.09		1.77		2.02

 

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(1)	See reconciliation of this non-GAAP financial measure provided elsewhere herein.
(2)	Average tangible common equity represents a non-GAAP financial measure calculated as average total stockholders' equity less average goodwill and intangible assets.

                 

		December 31,			September 30,			December 31,
		2020			2020			2019
Selected Financial Data:
Book value per share		$	26.23		$	25.94		$	25.06
Tangible book value per share (1)		$	20.69		$	20.40		$	19.54
Common shares outstanding			19,744			19,749			19,837
Capital Ratios:
Total capital to risk-weighted assets			13.0	%		13.3	%		13.1	%
Tier 1 capital to risk-weighted assets			10.3			10.3			10.2
Common equity Tier 1 capital to risk-weighted assets			10.3			10.3			10.2
Tier 1 capital to average assets			6.8			6.8			8.5
Tangible common equity to tangible assets (1) (2)			6.5			6.5			8.1
Capital Ratios - Bank Only:
Total capital to risk-weighted assets			13.2	%		13.2	%		13.0	%
Tier 1 capital to risk-weighted assets			12.2			12.2			12.1
Common equity Tier 1 capital to risk-weighted assets			12.2			12.2			12.1
Tier 1 capital to average assets			8.1			8.1			10.1
Asset Quality:
Loans 30-89 days past due		$	11,613		$	10,682		$	6,366
Loans 90 days past due and accruing		$	—		$	—		$	343
Non-performing loans/ Non-performing assets		$	12,162		$	7,064		$	4,369
Non-performing loans/total loans			0.26	%		0.15	%		0.12	%
Non-performing assets/total assets			0.19			0.11			0.09
Allowance/non-performing loans			363.43			615.43			750.42
Allowance/total loans			0.96			0.94			0.89

 

____________________________

(1)	Tangible common equity represents a non-GAAP financial measure calculated as total stockholders' equity less goodwill and intangible assets.
(2)	Tangible assets represent a non-GAAP financial measure calculated as total assets less goodwill and intangible assets.

BRIDGE BANCORP, INC. AND SUBSIDIARIESSupplemental Financial InformationCondensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)(Dollars in thousands)

		Three Months Ended December 31,											Three Months Ended September 30,											Three Months Ended December 31,
		2020											2020											2019
									Average											Average												Average
		Average							Yield/				Average							Yield/				Average								Yield/
		Balance			Interest				Cost				Balance			Interest				Cost				Balance				Interest				Cost
Interest-earning assets:
Loans, net (including loan fee income) (1)		$	4,641,754		$	44,649			3.83		%		$	4,612,125		$	43,108			3.72		%		$	3,547,865			$	39,780			4.45		%
Securities (1)			563,124			2,760			1.95					596,981			3,144			2.10					761,628				4,432			2.31
Deposits with banks			624,415			159			0.10					531,205			135			0.10					46,994				212			1.79
Total interest-earning assets (1)			5,829,293			47,568			3.25					5,740,311			46,387			3.21					4,356,487				44,424			4.05
Non-interest-earning assets:
Other assets			506,978											509,574											428,508
Total assets		$	6,336,271										$	6,249,885										$	4,784,995
Interest-bearing liabilities:
Savings		$	366,824		$	62			0.07		%		$	353,624		$	72			0.08		%		$	335,743			$	377			0.45		%
NOW			251,539			29			0.05					219,275			29			0.05					136,562				53			0.15
MMDA			1,275,540			888			0.28					1,247,455			1,016			0.32					1,067,493				3,108			1.16
Savings, NOW and MMDA			1,893,903			979			0.21					1,820,354			1,117			0.24					1,539,798				3,538			0.91
Certificates of deposit of less than $100,000			51,422			124			0.96					53,813			155			1.15					59,337				284			1.90
Certificates of deposit of $100,000 or more			138,434			323			0.93					140,982			387			1.09					147,557				774			2.08
Total IPC deposits			2,083,759			1,426			0.27					2,015,149			1,659			0.33					1,746,692				4,596			1.04
Brokered deposits			125,215			321			1.02					139,760			339			0.96					93,372				391			1.66
Public funds			818,286			920			0.45					825,734			1,049			0.51					452,509				939			0.82
Total public and brokered deposits			943,501			1,241			0.52					965,494			1,388			0.57					545,881				1,330			0.97
Total deposits			3,027,260			2,667			0.35					2,980,643			3,047			0.41					2,292,573				5,926			1.03
Federal funds purchased and repurchase agreements			1,503			—			—					1,793			—			—					116,312				494			1.69
FHLB advances			215,000			829			1.53					329,674			1,407			1.70					250,446				1,118			1.77
Subordinated debentures			79,037			996			5.01					79,003			1,135			5.72					78,897				1,134			5.70
Total borrowings			295,540			1,825			2.46					410,470			2,542			2.46					445,655				2,746			2.44
Total interest-bearing liabilities			3,322,800			4,492			0.54					3,391,113			5,589			0.66					2,738,228				8,672			1.26
Non-interest-bearing liabilities:
Demand deposits			2,347,853											2,193,615											1,452,908
Other liabilities			144,213											153,102											99,607
Total liabilities			5,814,866											5,737,830											4,290,743
Stockholders' equity			521,405											512,055											494,252
Total liabilities and stockholders' equity		$	6,336,271										$	6,249,885										$	4,784,995
Net interest rate spread									2.71		%									2.55		%										2.79		%
Net interest-earning assets		$	2,506,493										$	2,349,198										$	1,618,259
Net interest margin - tax-equivalent						43,076			2.94		%						40,798			2.83		%							35,752			3.26		%
Less: Tax-equivalent adjustment						(84	)		(0.01	)							(91	)		(0.01	)								(104	)		(0.01	)
Net interest income					$	42,992										$	40,707											$	35,648
Net interest margin									2.93		%									2.82		%										3.25		%

____________________________(1) Presented on a tax-equivalent basis.

BRIDGE BANCORP, INC. AND SUBSIDIARIESSupplemental Financial InformationCondensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)(Dollars in thousands)

		Year Ended December 31,
		2020										2019
									Average										Average
		Average							Yield/			Average							Yield/
		Balance			Interest				Cost			Balance			Interest				Cost
Interest-earning assets:
Loans, net (including loan fee income) (1)		$	4,341,647		$	169,611			3.91		%	$	3,410,773		$	158,492			4.65		%
Securities (1)			642,461			14,328			2.23				823,280			21,874			2.66
Deposits with banks			404,272			673			0.17				75,600			1,697			2.24
Total interest-earning assets (1)			5,388,380			184,612			3.43				4,309,653			182,063			4.22
Non-interest-earning assets:
Other assets			483,647										408,813
Total assets		$	5,872,027									$	4,718,466
Interest-bearing liabilities:
Savings		$	335,543		$	417			0.12		%	$	402,701		$	3,596			0.89		%
NOW			183,882			130			0.07				123,075			193			0.16
MMDA			1,181,572			5,448			0.46				1,024,719			13,986			1.36
Savings, NOW and MMDA			1,700,997			5,995			0.35				1,550,495			17,775			1.15
Certificates of deposit of less than $100,000			55,092			759			1.38				60,428			1,129			1.87
Certificates of deposit of $100,000 or more			143,072			1,999			1.40				150,638			3,156			2.10
Total IPC deposits			1,899,161			8,753			0.46				1,761,561			22,060			1.25
Brokered deposits			160,320			1,806			1.13				127,765			2,759			2.16
Public funds			772,041			4,420			0.57				508,240			4,640			0.91
Total public and brokered deposits			932,361			6,226			0.67				636,005			7,399			1.16
Total deposits			2,831,522			14,979			0.53				2,397,566			29,459			1.23
Federal funds purchased and repurchase agreements			8,595			79			0.92				41,077			767			1.87
FHLB advances			284,718			3,992			1.40				245,283			4,573			1.86
Subordinated debentures			78,985			4,401			5.57				78,845			4,539			5.76
Total borrowings			372,298			8,472			2.28				365,205			9,879			2.71
Total interest-bearing liabilities			3,203,820			23,451			0.73				2,762,771			39,338			1.42
Non-interest-bearing liabilities:
Demand deposits			2,020,575										1,392,606
Other liabilities			138,665										86,130
Total liabilities			5,363,060										4,241,507
Stockholders' equity			508,967										476,959
Total liabilities and stockholders' equity		$	5,872,027									$	4,718,466
Net interest rate spread									2.70		%								2.80		%
Net interest-earning assets		$	2,184,560									$	1,546,882
Net interest margin - tax-equivalent						161,161			2.99		%					142,725			3.31		%
Less: Tax-equivalent adjustment						(380	)		(0.01	)						(522	)		(0.01	)
Net interest income					$	160,781									$	142,203
Net interest margin									2.98		%								3.30		%

____________________________(1) Presented on a tax-equivalent basis.

BRIDGE BANCORP, INC. AND SUBSIDIARIESNon-GAAP Financial Measures (unaudited)Reconciliation of as reported (GAAP) and non-GAAP financial measures

The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

The following non-GAAP financial measures exclude merger and stock acceleration expenses associated with the Company’s proposed merger with Dime. Tax deductible adjustments to net income are taxed at the Company’s statutory tax rate of approximately 29%.

		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,			December 31,
		2020			2020			2019			2020			2019
Return on average total assets - as reported		0.56		%	0.83		%	1.18		%	0.72		%	1.10		%
Merger expenses		0.13			0.15			—			0.08			—
Stock acceleration expense		0.26			—			—			0.07			—
Income tax effect of adjustments		(0.01	)		—			—			(0.01	)		—
Adjusted return on average total assets (non-GAAP)		0.94			0.98			1.18			0.86			1.10
Return on average stockholders' equity - as reported		6.85		%	10.15		%	11.40		%	8.26		%	10.84		%
Merger expenses		1.60			1.83			—			0.87			—
Stock acceleration expense		3.19			—			—			0.82			—
Income tax effect of adjustments		(0.17	)		(0.05	)		—			(0.05	)		—
Adjusted return on average stockholders' equity (non-GAAP)		11.47			11.93			11.40			9.90			10.84
Return on average tangible common equity - as reported		8.67		%	12.90		%	14.66		%	10.52		%	14.09		%
Merger expenses		2.03			2.32			—			1.11			—
Stock acceleration expense		4.03			—			—			1.05			—
Amortization of other intangible assets		0.14			0.15			0.19			0.16			0.21
Income tax effect of adjustments		(0.24	)		(0.09	)		(0.04	)		(0.10	)		(0.04	)
Adjusted return on average tangible common equity (non-GAAP)		14.63			15.28			14.81			12.74			14.26

The following table presents a reconciliation of net income and diluted earnings per share (as reported) to adjusted net income and adjusted diluted earnings per share excluding merger and stock acceleration expenses:

		Three Months Ended											Year Ended
		December 31,				September 30,				December 31,			December 31,				December 31,
(Dollars in thousands, except per share amounts)		2020				2020				2019			2020				2019
Net income - as reported		$	8,977			$	13,061			$	14,208		$	42,042			$	51,691
Adjustments:
Merger expenses			2,100				2,352				—			4,452				—
Stock acceleration expense			4,176				—				—			4,176				—
Income tax effect of adjustments			(220	)			(58	)			—			(278	)			—
Adjusted net income (non-GAAP)		$	15,033			$	15,355			$	14,208		$	50,392			$	51,691
Diluted earnings per share - as reported		$	0.45			$	0.66			$	0.71		$	2.11			$	2.59
Adjustments:
Merger expenses			0.10				0.11				—			0.21				—
Stock acceleration expense			0.21				—				—			0.21				—
Income tax effect of adjustments			(0.01	)			—				—			(0.01	)			—
Adjusted diluted earnings per share (non-GAAP)		$	0.75			$	0.77			$	0.71		$	2.52			$	2.59

BRIDGE BANCORP, INC. AND SUBSIDIARIESNon-GAAP Financial Measures (unaudited)

The following table presents a reconciliation of net interest income, non-interest income and non-interest expense to pre-tax pre-provision net revenue (non-GAAP) and adjusted pre-tax pre-provision net revenue (non-GAAP):

		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,			December 31,
(Dollars in thousands)		2020			2020			2019			2020			2019
Net interest income		$	42,992		$	40,707		$	35,648		$	160,781		$	142,203
Non-interest income			5,444			6,790			8,426			19,703			25,387
Total revenues			48,436			47,497			44,074			180,484			167,590
Non-interest expense			35,078			28,937			25,332			113,257			96,139
Pre-tax pre-provision net revenue (non-GAAP) (1)		$	13,358		$	18,560		$	18,742		$	67,227		$	71,451
Adjustments:
Change in fair value of loans held for sale			234			—			—			2,877			—
Merger expenses			2,100			2,352			—			4,452			—
Stock acceleration expense			4,176			—			—			4,176			—
Adjusted pre-tax pre-provision net revenue (non-GAAP) (2)		$	19,868		$	20,912		$	18,742		$	78,732		$	71,451

____________________________

(1)	The reported pre-tax pre-provision net revenue is a non-GAAP measure calculated by adding GAAP net interest income and GAAP non-interest income less GAAP non-interest expense.
(2)	The adjusted pre-tax pre-provision net revenue is a non-GAAP measure calculated by adding pre-tax pre-provision net revenue less the change in fair value of loans held for sale, and merger and stock acceleration expenses.

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):

		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands, except per share amounts)		2020				2020				2019				2020				2019
Efficiency ratio - as reported (non-GAAP) (1)			72.42		%		60.92		%		57.48		%		62.75		%		57.37		%
Non-interest expense - as reported		$	35,078			$	28,937			$	25,332			$	113,257			$	96,139
Less: Merger expenses			(2,100	)			(2,352	)			—				(4,452	)			—
Less: Stock acceleration expense			(4,176	)			—				—				(4,176	)			—
Less: Amortization of intangible assets			(149	)			(149	)			(182	)			(656	)			(787	)
Adjusted non-interest expense (non-GAAP)		$	28,653			$	26,436			$	25,150			$	103,973			$	95,352
Net interest income - as reported		$	42,992			$	40,707			$	35,648			$	160,781			$	142,203
Tax-equivalent adjustment			84				91				104				380				522
Net interest income, tax-equivalent basis		$	43,076			$	40,798			$	35,752			$	161,161			$	142,725
Non-interest income - as reported		$	5,444			$	6,790			$	8,426			$	19,703			$	25,387
Less: Net securities gains			—				(3,540	)			—				(3,525	)			(201	)
Less: Loss on termination of swaps			—				3,403				—				3,403				—
Less: Change in fair value of loans held for sale			234				—				—				2,877				—
Adjusted non-interest income (non-GAAP)		$	5,678			$	6,653			$	8,426			$	22,458			$	25,186
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)		$	48,754			$	47,451			$	44,178			$	183,619			$	167,911
Adjusted efficiency ratio (non-GAAP) (2)			58.77		%		55.71		%		56.93		%		56.62		%		56.79		%

____________________________

(1)	The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income.
(2)	The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of net interest income on a tax-equivalent basis and adjusted non-interest income.

BRIDGE BANCORP, INC. AND SUBSIDIARIESNon-GAAP Financial Measures (unaudited)

The following table reconciles net interest margin (as reported) to adjusted net interest margin on a tax-equivalent basis, excluding net interest income and average adjustments on deposits with banks and PPP loans (non-GAAP):

		Three Months Ended
		December 31,				September 30,				December 31,
(Dollars in thousands)		2020				2020				2019
Net interest income - as reported		$	42,992			$	40,707			$	35,648
Tax-equivalent adjustment			84				91				104
Net interest income, tax-equivalent basis		$	43,076			$	40,798			$	35,752
Adjustment:
Less: Interest income on deposits with banks			(159	)			(135	)			(212	)
Less: Net interest income on PPP loans and swaps			(7,981	)			(6,005	)			—
Adjusted net interest income, tax-equivalent basis (non-GAAP)		$	34,936			$	34,658			$	35,540
Average interest-earning assets - as reported		$	5,829,293			$	5,740,311			$	4,356,487
Adjustments:
Average deposits with banks			(624,415	)			(531,205	)			(46,994	)
Average PPP loans			(909,022	)			(933,345	)			—
Adjusted average interest-earning assets (non-GAAP)		$	4,295,856			$	4,275,761			$	4,309,493
Net interest margin - as reported (1)			2.93		%		2.82		%		3.25		%
Net interest margin, tax-equivalent basis (2)			2.94				2.83				3.26
Adjusted net interest margin (non-GAAP) (3)			3.24				3.22				3.27

____________________________

(1)	Net interest margin represents net interest income divided by average interest-earning assets.
(2)	Net interest margin, tax-equivalent basis represents net interest income on a tax-equivalent basis divided by average interest-earning assets.
(3)	Adjusted net interest margin represents adjusted net interest income on a tax-equivalent basis divided by adjusted average interest-earning assets.

The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):

		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,			December 31,
		2020			2020			2019			2020			2019
Operating expense as a % of average assets - as reported		2.20		%	1.84		%	2.10		%	1.93		%	2.04		%
Merger expenses		(0.13	)		(0.15	)		—			(0.08	)		—
Stock acceleration expense		(0.26	)		—			—			(0.07	)		—
Amortization of other intangible assets		(0.01	)		(0.01	)		(0.01	)		(0.01	)		(0.02	)
Adjusted operating expense as a % of average assets (non-GAAP)		1.80			1.68			2.09			1.77			2.02

The following table presents the tangible common equity to tangible assets calculation (non-GAAP):

		December 31,				September 30,				December 31,
(Dollars in thousands)		2020				2020				2019
Total assets - as reported		$	6,434,296			$	6,322,377			$	4,921,520
Less: Goodwill and other intangible assets - as reported			(109,328	)			(109,398	)			(109,627	)
Tangible assets (non-GAAP)		$	6,324,968			$	6,212,979			$	4,811,893
Total stockholders' equity - as reported		$	517,831			$	512,221			$	497,154
Less: Goodwill and other intangible assets - as reported			(109,328	)			(109,398	)			(109,627	)
Tangible common equity (non-GAAP)		$	408,503			$	402,823			$	387,527
Tangible common equity to tangible assets (non-GAAP) (1)			6.5		%		6.5		%		8.1		%

____________________________ (1)   Calculated by dividing tangible common equity by tangible assets.

Contact:	John M. McCaffery
	Executive Vice President
	Chief Financial Officer
	(631) 537-1001, ext. 7290