Bridge Capital Holdings (NASDAQ: BBNK), whose subsidiary is Bridge Bank, National Association, announced today its financial results for the fourth quarter and twelve months ended December 31, 2014.

The Company reported net income of $4.2 million for the three months ended December 31, 2014, representing a decrease of $1.2 million, or 23%, from $5.4 million for the quarter ended September 30, 2014, and representing a decrease of $833,000, or 17%, from net income of $5.0 million for the same period one year ago.

For the quarter ended December 31, 2014, the Company reported earnings per diluted share of $0.27, compared with $0.35 for the quarter ended September 30, 2014 and $0.33 for the quarter ended December 31, 2013.

The Company reported net income of $17.6 million for the twelve months ended December 31, 2014, representing an increase of $2.9 million, compared to net income of $14.7 million for the same period one year ago. For the twelve months ended December 31, 2014, the Company reported earnings per diluted share of $1.13, compared to $0.97 for the twelve months ended December 31, 2013.

For the quarter ended December 31, 2014, the Company’s return on average assets and return on average equity were 0.94% and 9.00%, respectively, and compared to 1.29% and 12.11%, respectively, for the quarter ended September 30, 2014 and 1.31% and 12.44%, respectively, for the same period in 2013. For the twelve months ended December 31, 2014, the Company’s return on average assets and return on average equity were 1.07% and 10.06%, respectively, and compared to 1.03% and 9.47%, respectively, for the same period in 2013.

“We had another strong quarter of business development, with new client acquisitions helping to drive 30% annualized growth in our loan portfolio,” said Daniel P. Myers, president and chief executive officer of Bridge Bank, N.A. and Bridge Capital Holdings. “However, we had unusually low contributions from a number of our more volatile income streams including loan-related fees, warrant income, and gain on sale of SBA loans. The collective impact of the lower than normal contributions from these areas offset the strong growth we generated in earning assets and lowered our net income for the quarter. We anticipate a more normalized contribution from these areas going forward, which should have a positive impact on our level of profitability.

“Despite the lower than anticipated earnings in the fourth quarter, we still delivered a very strong year of profitable growth. For the full year, we generated 22% growth in total loans, 10% growth in total deposits, 16% growth in earnings per share and 14% growth in book value per share. We were able to generate strong earnings while also making significant investments in personnel and infrastructure to support the continued growth of our franchise. As we continue to grow our revenue, we expect to see more operating leverage from the investments we made in 2014. We are seeing positive business development trends across all of our major lending groups and we anticipate another year of solid balance sheet and earnings growth in 2015,” said Mr. Myers.

Fourth Quarter Highlights

  • Loan growth continued to be strong, particularly in the commercial lending portfolio. Gross loans reached $1.31 billion at December 31, 2014, representing an increase of $91.6 million, or 8%, compared to gross loans of $1.22 billion at September 30, 2014. Average loan balances increased by $35.8 million, or 3%, to $1.22 billion for the fourth quarter of 2014, compared to $1.19 billion for the quarter ending September 30, 2014.
  • Total assets grew to $1.81 billion at December 31, 2014, with loans comprising 72% of the average earning asset mix. Total deposits were $1.55 billion at December 31, 2014, which included demand deposits of $1.07 billion.
  • Allowance for credit losses represented 1.70% of total gross loans and 284.03% of nonperforming loans at December 31, 2014, compared to 1.84% of total gross loans and 268.67% of nonperforming loans at September 30, 2014. There was no provision for credit losses in the fourth quarter of 2014. Net charge-offs were $134,000 for the period ended December 31, 2014, compared to net charge-offs of $1.7 million for the quarter ended September 30, 2014.
  • Nonperforming assets decreased by $499,000 to $7.9 million, or 0.43% of total assets, at December 31, 2014, compared to $8.4 million, or 0.48% of total assets, at September 30, 2014.
  • Total revenue of $21.8 million for the fourth quarter of 2014 represented a decrease of $3.3 million, or 13%, from the prior quarter. Net interest income of $18.9 million for the fourth quarter of 2014 compared to $20.5 million for the third quarter of 2014. Non-interest income of $2.6 million for the fourth quarter of 2014 compared to $4.5 million for the third quarter of 2014.
  • Net interest margin decreased to 4.39% for the quarter ended December 31, 2014, compared to 5.05% for the third quarter of 2014.
  • Capital ratios remained strong and continued to support the Company’s growth. Total Risk-Based Capital Ratio was 13.91%, Tier I Capital Ratio was 12.66%, and Tier I Leverage Ratio was 11.24% at December 31, 2014.

Net Interest Income and Margin

Net interest income of $18.9 million for the quarter ended December 31, 2014 represented a decrease of $1.6 million, or 8%, compared to $20.5 million for the quarter ended September 30, 2014, and an increase of $515,000, or 3%, compared to $18.4 million for the quarter ended December 31, 2013. The decrease in net interest income from the prior quarter was primarily attributable to a decrease in loan related fees of $1.5 million. The increase in net interest income from the same period in the prior year was primarily attributable to an increase in average earning assets as a result of loan growth, partially offset by a lower level of loan related fees. Loan fee amortization for the quarter ended December 31, 2014 was $2.2 million, compared to $3.7 million for the quarter ended September 30, 2014, and $3.6 million for the quarter ended December 31, 2013.

For the twelve months ended December 31, 2014, net interest income of $76.6 million represented an increase of $8.4 million, or 12%, from $68.3 million for the twelve months ended December 31, 2013, and was primarily attributed to an increase in average earning assets as a result of loan growth which was funded by liquidity generated from deposit growth, combined with a decrease in non-performing loans and a slightly higher level of loan related fees. Average earning assets of $1.58 billion for the twelve months ended December 31, 2014 increased $213.6 million, or 16%, compared to $1.37 billion for the same period one year ago. Loan fee amortization for the twelve months ended December 31, 2014 was $12.2 million compared to $11.9 million for the same period ended December 31, 2013.

The Company’s net interest margin for the quarter ended December 31, 2014 was 4.39%, compared to 5.05% for the quarter ended September 30, 2014, and 4.99% for the same period one year earlier. The decrease in net interest margin compared to the quarters ended September 30, 2014 and December 31, 2013 was primarily due to a lower level of loan related fees combined with moderate compression of contractual rates experienced in the loan portfolio, offset in part by an increase in average earning assets. The Company’s loan-to-deposit ratio, a measure of leverage, averaged 79.0% during the three months ended December 31, 2014, compared to an average of 81.7% for the quarter ended September 30, 2014, and an average of 77.5% for the same period of 2013.

The impact on the net interest margin from decreased loan fees for the three months ended December 31, 2014 compared to the prior quarter was 40 basis points. Compared to the same period one year earlier, the impact on the net interest margin from decreased loan fees was 47 basis points. The primary driver for decreased loan fees during the fourth quarter of 2014 was a reduction in the level of transactions that typically accelerate fee amortization in certain segments of the Company’s business.

The impact on the net interest margin from compression of contractual rates experienced in the loan portfolio for the three months ended December 31, 2014 compared to the prior quarter was 32 basis points. Compared to the same period one year earlier, the impact from compression of contractual rates experienced in the loan portfolio was 16 basis points. The weighted average contractual rate on loans, excluding fees, decreased to 4.97% for the fourth quarter of 2014 compared to 5.25% the third quarter of 2014 and 5.31% for the same period one year ago.

The Company’s net interest margin for the twelve months ended December 31, 2014 was 4.83%, compared to 4.98% for the same period one year ago. The decrease in net interest margin from prior year was primarily due to a lower yield on earning assets, including a decrease in loan yields from 6.66% to 6.24%. Loan fees comprised 1.05% of total loan yields in 2014 compared to 1.23% in 2013. The weighted average contractual rate on loans, excluding fees, was 5.19% in 2014 compared to 5.43% in the prior year. The Company’s loan-to-deposit ratio, a measure of leverage, averaged 80.7% during the twelve months ended December 31, 2014, compared with 78.3% for the same period of 2013.

“Fee contribution over time has provided strong and consistent support to the net interest margin and over the past five years our net interest margin has shown remarkable resilience. Loan fees recognized in the fourth quarter represented a three year low in contribution to loan yields,” noted Thomas A. Sa, executive vice president and chief financial officer of Bridge Capital Holdings, “While we have not been immune to the effects of a very competitive environment, we continue to originate credit at rates, excluding fees, that are at premiums to the industry and we expect fees to return to a more significant level of quarterly contribution. One of our priorities for 2015 will be to emphasize choices in executing our business that support the long-term performance of net interest margin.”

Non-Interest Income

The Company’s non-interest income for the quarters ended December 31, 2014, September 30, 2014, and December 31, 2013 was $2.9 million, $4.5 million, and $3.9 million, respectively.

The decreases in non-interest income of $1.7 million and $1.0 million during the fourth quarter of 2014 compared to the third quarter of 2014 and the fourth quarter of 2013, respectively, was primarily attributed to a decrease in gains on sales of SBA loans and warrant income. For the quarter ended December 30, 2014, the Company recorded gains on sales of SBA loans of $165,000, compared to gains on sales of SBA loans of $1.1 million for the period ended September 30, 2014, and $751,000 for the period ended December 31, 2013. The company recognized warrant income during the quarter ended December 31, 2014 of $50,000, compared to $941,000 in the prior quarter, and $785,000 during the same period last year. Service charges on deposits were $1.0 million during the fourth quarter of 2014 compared to $951,000 in the third quarter of 2014, and $954,000 during the same period one year earlier. International fee income increased to $789,000 during the quarter ended December 31, 2014, from $717,000 for the prior quarter, and $763,000 for the same period one year earlier. Additionally, $386,000 in Visa interchange/fee income was recognized during the fourth quarter of 2014, compared to $381,000 during the prior quarter and $268,000 for the same period during the prior year. Finally, the Company recognized $176,000 in SBA loan servicing income during the current quarter, compared to $155,000 during the prior quarter and $102,000 for the same period in 2013.

Non-interest income for the twelve months ended December 31, 2014 and 2013 was $14.1 million and $14.3 million, respectively. The primary drivers for the decrease in non-interest income of $373,000 were lower gains on sales of securities of $799,000, lower gains on sales of OREO of $470,000, and lower gains on sale of SBA loans of $321,000. These decreases were partially offset by increases in Visa interchange/fee income of $520,000 and service charges on deposits of $173,000.

Net interest income and non-interest income comprised total revenue of $21.7 million for the three months ended December 31, 2014, compared to $25.0 million for the three months ended September 30, 2014 and $22.3 million for the same period one year earlier. For the twelve months ended December 31, 2014, total revenue of $90.8 million represented an increase of $8.2 million, or 10%, from $82.6 million for the twelve months ended December 31, 2013.

Non-Interest Expense

Non-interest expense was $14.5 million for the quarter ended December 31, 2014, compared to $14.8 million for the quarter ended September 30, 2014, and $14.0 million for the quarter ended December 31, 2013. Overall, the trend in non-interest expense continues to reflect the Company’s investments in new initiatives and personnel to support future growth.

Salary and benefits expense for the quarter ended December 31, 2014 was $9.5 million, compared to $9.6 million and $9.4 million for the quarters ended September 30, 2014 and December 31, 2013, respectively. For the twelve months ended December 31, 2014, salary and benefits expense was $37.5 million compared to $33.5 million for the same period in 2013. The decrease in salary and benefits expense for the fourth quarter of 2014 compared to the prior quarter was primarily due to a reduction in incentive compensation accruals. The increase in salary and benefits expense from the current quarter compared to the same period in the prior year was primarily due to an increase in headcount and annual salary increases. The increase in salary and benefits expense for 2014 compared to 2013 was primarily related to an increase in headcount to support growth and new initiatives, combined with annual salary increases necessary to remain competitive in the Company’s core markets and increased stock-based compensation due to long-term retention awards. As of December 31, 2014 and September 30, 2014, the Company employed 260 and 250 full-time equivalents (FTE), respectively, compared to 235 FTE at December 31, 2013.

Marketing expense for the quarter ended December 31, 2014 was $670,000, compared to $722,000 and $586,000 for the quarters ended September 30, 2014 and December 31, 2013, respectively. Over the past several years, the Company increased marketing investments to raise the level of its brand visibility. To leverage this increased brand visibility, the Company continues to fund marketing and sales initiatives to accelerate demand for its customized banking solutions.

“Other real estate owned” and loan-related charges were $532,000 for the quarter ended December 31, 2014, compared to $443,000 and $211,000 for the quarters ended September 30, 2014 and December 31, 2013, respectively. The increase in charges from prior quarter and prior year is primarily related to the ongoing resolution of non-performing credits and increased expenses related to the Visa card program that was implemented in 2013.

Regulatory assessments related to FDIC insurance for deposit balances totaled $250,000 for the quarter ended December 31, 2014, compared to $329,000 for the quarter ended September 30, 2014 and $345,000 for the same period one year ago. Regulatory assessments fluctuate depending on asset size and other factors, including credit quality.

The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 66.66%, 59.12%, and 62.76% for the quarters ended December 31, 2014, September 30, 2014, and December 31, 2013, respectively.

Balance Sheet

Bridge Capital Holdings reported total assets at December 31, 2014 of $1.81 billion, compared to $1.76 billion at September 30, 2014 and $1.60 billion on the same date one year ago. The increase in total assets of $54.0 million, or 3%, from September 30, 2014 was driven by increases in the loan portfolio and investment securities.

The Company reported total gross loans outstanding at December 31, 2014 of $1.31 billion, which represented an increase of $91.6 million, or 8%, over $1.22 billion at September 30, 2014, and an increase of $233.7 million, or 22%, over $1.08 billion at December 31, 2013. The increase in total gross loans from September 30, 2014 was broad-based throughout the portfolio, with the exception of a modest reduction in construction loans. The increase in loans from December 31, 2013 was also broad-based throughout the portfolio, with the most significant growth reflected in the commercial lending portfolio, partially offset by a decrease in factoring and asset-based loans.

The Company’s total deposits were $1.55 billion as of December 31, 2014, which represented an increase of $10.3 million, or 1%, compared to $1.54 billion at September 30, 2014 and an increase of $143.5 million, or 10%, compared to $1.41 billion at December 31, 2013. The increase in deposits from September 30, 2014 was primarily attributable to growth in money market and savings accounts, while the increase in deposits from December 31, 2013 was primarily attributable to growth in non-interest bearing demand deposit accounts and growth in money market and savings accounts.

Demand deposits represented 68.9% of total deposits at December 31, 2014, compared to 69.5% at September 30, 2014 and 68.7% for the same period one year ago. Core deposits represented 97.9% of total deposits at December 31, 2014 and September 30, 2014 and 96.5% at December 31, 2013.

Credit Quality

Nonperforming assets were $7.9 million, or 0.43% of total assets, as of December 31, 2014, compared to $8.4 million, or 0.48% of total assets, as of September 30, 2014, and $15.1 million, or 0.94% of total assets, at December 31, 2013. The nonperforming assets at December 31, 2014 consisted of loans on nonaccrual or 90 days or more past due totaling $7.9 million and OREO valued at $23,000.

Nonperforming loans at December 31, 2014 were comprised of loans with legal contractual balances totaling approximately $11.7 million reduced by $404,000 received in non-accrual interest and impairment charges of $3.4 million which have been charged against the allowance for credit losses.

Nonperforming loans were $7.9 million, or 0.60% of total gross loans, as of December 31, 2014, compared to $8.4 million, or 0.68% of total gross loans, as of September 30, 2014, and $15.1 million, or 1.40% of total gross loans, at December 31, 2013.

The carrying value of OREO was $23,000 as of December 31, 2014 and September 30, 2014, and was $31,000 at December 31, 2013.

The allowance for loan losses was $22.3 million, or 1.70% of total loans, at December 31, 2014, compared to $22.4 million, or 1.84% of total loans, at September 30, 2014, and $21.9 million, or 2.04% of total loans, at December 31, 2013. There was no provision for credit losses during the current quarter or during the same period in the prior year, compared to $1.0 million for the quarter ended September 30, 2014.

The Company charged-off $232,000 in loan balances during the three months ended December 31, 2014, compared to $2.2 million charged-off during the three months ended September 30, 2014, and $850,000 charged-off during the three months ended December 31, 2013.

During the three months ended December 31, 2014, the Company recognized $98,000 in loan recoveries compared to $523,000 and $1.8 million, respectively, in loan recoveries for the three months ended September 30, 2014 and December 31, 2013.

Capital Adequacy

The Company’s capital ratios at December 31, 2014 substantially exceed the regulatory definition for being “well capitalized” with a Total Risk-Based Capital Ratio of 13.91%, a Tier I Risk-Based Capital Ratio of 12.66%, and a Tier I Leverage Ratio of 11.24%. Additionally, the Company’s tangible common equity ratio at December 31, 2014 was 10.31% and book value per common share was $11.72, representing an increase of $0.39, or 3.5%, from $11.33 at September 30, 2014 and an increase of $1.45, or 14.2%, from $10.26 at December 31, 2013.

Conference Call and Webcast

Management will host a conference call today at 5:00 p.m. Eastern time/2:00 p.m. Pacific time to discuss the Company’s financial results and answer questions.

Individuals interested in participating in the conference call may do so by dialing 866-235-9918 from the United States, or 412-902-4104 from outside the United States and asking to be joined to the “Bridge Capital Holdings” conference call. Those interested in listening to the conference call live via the Internet may do so by visiting the Investor Relations section of the Company's website at www.bridgebank.com.

A telephone replay will be available through February 4, 2015, by dialing 877-344-7529 from the United States, or 412-317-0088 from outside the United States, and entering access code 10059565. A webcast replay will be available for at least 90 days.

About Bridge Capital Holdings

Bridge Capital Holdings is the holding company for Bridge Bank, National Association. Bridge Capital Holdings was formed on October 1, 2004 and holds a Global Select listing on The NASDAQ Stock Market under the trading symbol BBNK. For additional information, visit the Bridge Capital Holdings website at http://www.bridgecapitalholdings.com.

About Bridge Bank, N.A.

Recognized by The Findley Reports as a Super Premium Performing Bank, and designated "Superior" by BauerFinancial and IDC, Bridge Bank is a full-service professional business bank, and preferred SBA lender, founded in the highly competitive climate of Silicon Valley in 2001. From the very beginning, our goal has been to offer small-market and middle-market businesses from across many industries a better way to bank. We provide a surprisingly broad range of financial solutions, enabling us to meet our clients' varied needs across all stages -- from inception to IPO and beyond. It's how we go about doing so that differentiates us from our competition. Bridge Bank's product offering includes growth capital, equipment and working capital credit facilities and treasury management solutions, along with a full line of international products and services and financing secured by domestic, government and foreign receivables. Learn more at the new www.bridgebank.com. Follow us on Twitter @BridgeBank.

Forward-Looking Statements

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

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

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

- Financial Tables Follow -

         
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
 
 
 
Three months ended Twelve months ended
  12/31/14     09/30/14     12/31/13     12/31/14     12/31/13  
 
INTEREST INCOME
Loans $ 17,549 $ 19,459 $ 17,326 $ 72,247 $ 64,629
Federal funds sold 109 94 102 365 317
Investment securities 1,779 1,469 1,599 6,243 5,864
Other   -     -     -     1     -  
Total interest income   19,437     21,022     19,027     78,856     70,810  
 
INTEREST EXPENSE
Deposits 263 255 369 1,131 1,443
Other   271     273     270     1,081     1,075  
Total interest expense   534     528     639     2,212     2,518  
 
Net interest income 18,903 20,494 18,388 76,644 68,292
Provision for credit losses   -     1,000     -     3,000     6,050  
Net interest income after provision
for credit losses   18,903     19,494     18,388     73,644     62,242  
 
NON-INTEREST INCOME
Service charges on deposit accounts 1,002 951 954 3,847 3,674
International Fee Income 789 717 763 3,067 2,703
Gain on sale of SBA loans 165 1,080 751 2,572 2,682
Other non-interest income   897     1,787     1,428     4,631     5,221  
Total non-interest income   2,853     4,535     3,896     14,117     14,280  
 
OPERATING EXPENSES
Salaries and benefits 9,456 9,589 9,435 37,473 33,543
Premises and fixed assets 1,268 1,207 1,073 4,939 4,103
Other   3,778     4,000     3,478     15,645     14,238  
Total operating expenses   14,502     14,796     13,986     58,057     51,884  
 
Income before income taxes 7,254 9,233 8,298 29,704 24,638
Income tax expense 3,067 3,802 3,278 12,103 9,927
         
NET INCOME $ 4,187   $ 5,431   $ 5,020   $ 17,601   $ 14,711  
 
EARNINGS PER SHARE
Basic earnings per share $ 0.28   $ 0.37   $ 0.35   $ 1.19   $ 1.02  
Diluted earnings per share $ 0.27   $ 0.35   $ 0.33   $ 1.13   $ 0.97  
Average common shares outstanding   14,837,845     14,812,197     14,487,562     14,769,452     14,444,246  
Average common and equivalent
shares outstanding   15,624,527     15,574,795     15,342,164     15,556,573     15,196,220  
 
 
PERFORMANCE MEASURES
Return on average assets 0.94 % 1.29 % 1.31 % 1.07 % 1.03 %
Return on average equity 9.00 % 12.11 % 12.44 % 10.06 % 9.47 %
Efficiency ratio 66.66 % 59.12 % 62.76 % 63.97 % 62.83 %
 
       
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
 
 
 
  12/31/14     09/30/14     06/30/14     03/31/14     12/31/13  
 
ASSETS
Cash and due from banks $ 21,950 $ 31,921 $ 33,796 $ 30,799 $ 23,958
Federal funds sold 75,420 146,675 82,635 123,724 162,379
Interest-bearing deposits 326 326 326 326 326
Investment securities 365,165 319,201 295,205 281,527 307,378
Loans:
Commercial 785,360 712,113 664,806 628,190 585,559
SBA 124,180 113,146 116,862 117,967 106,406
Real estate construction 71,673 78,445 70,232 62,360 51,518
Land and land development 15,890 15,659 16,658 13,554 13,572
Real estate other 139,623 134,463 130,000 129,447 122,063
Factoring and asset-based lending 167,518 162,198 176,101 187,319 192,783
Other   7,069     3,720     6,146     5,923     5,730  
Loans, gross 1,311,313 1,219,744 1,180,805 1,144,760 1,077,631
Unearned fee income (5,644 ) (4,211 ) (3,845 ) (4,701 ) (4,727 )
Allowance for credit losses   (22,305 )   (22,439 )   (23,116 )   (22,665 )   (21,944 )
Loans, net 1,283,364 1,193,094 1,153,844 1,117,394 1,050,960
Premises and equipment, net 2,504 3,697 3,587 2,850 2,081
Accrued interest receivable 4,989 5,236 4,323 4,390 4,323
Other assets   60,404     59,957     53,457     55,428     52,707  
Total assets $ 1,814,122   $ 1,760,107   $ 1,627,173   $ 1,616,438   $ 1,604,112  
 
LIABILITIES
Deposits:
Demand noninterest-bearing $ 1,051,357 $ 1,055,815 $ 970,941 $ 981,406 $ 954,727
Demand interest-bearing 15,492 13,886 8,373 8,404 11,115
Money market and savings 450,873 437,432 410,565 384,364 391,310
Time   31,823     32,065     33,833     41,782     48,940  
Total deposits   1,549,545     1,539,198     1,423,712     1,415,956     1,406,092  
 
Junior subordinated debt securities 17,527 17,527 17,527 17,527 17,527
Other borrowings 40,000 - - - -
Accrued interest payable 8 7 8 9 10
Other liabilities   19,935     21,870     12,521     15,189     17,736  
Total liabilities   1,627,015     1,578,602     1,453,768     1,448,681     1,441,365  
 
SHAREHOLDERS' EQUITY
Common stock 117,321 116,525 114,053 113,081 112,714
Retained earnings 69,547 65,360 59,929 55,662 51,946
Accumulated other comprehensive income /(loss)   239     (380 )   (577 )   (986 )   (1,913 )
Total shareholders' equity   187,107     181,505     173,405     167,757     162,747  
Total liabilities and shareholders' equity $ 1,814,122   $ 1,760,107   $ 1,627,173   $ 1,616,438   $ 1,604,112  
 
CAPITAL ADEQUACY
Tier I leverage ratio 11.24 % 11.69 % 11.74 % 11.71 % 11.61 %
Tier I risk-based capital ratio 12.66 % 13.12 % 12.74 % 12.51 % 12.70 %
Total risk-based capital ratio 13.91 % 14.37 % 14.00 % 13.76 % 13.96 %
Total equity/ total assets 10.31 % 10.31 % 10.66 % 10.38 % 10.15 %
Book value per common share $ 11.72 $ 11.33 $ 10.93 $ 10.58 $ 10.26
 
Outstanding shares 15,970,506 16,026,119 15,868,525 15,854,180 15,859,098
 
       
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
   
 
 
 
Three months ended December 31,
2014 2013
 
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 1,224,241 5.69% $ 17,549 $ 1,024,227 6.71% $ 17,326
Federal funds sold 138,322 0.31% 109 143,070 0.28% 102
Investment securities 345,034 2.05% 1,779 293,640 2.16% 1,599
Other 326 0.00% - 326 0.00% -
Total interest earning assets 1,707,923 4.52% 19,437 1,461,263 5.17% 19,027
 
Noninterest-earning assets:
Cash and due from banks 29,469 27,080
All other assets (3) 37,891 28,342
TOTAL $ 1,775,283 $ 1,516,685
 
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand $ 12,059 0.03% $ 1 $ 9,568 0.04% $ 1
Money market and savings 447,015 0.19% 214 405,043 0.30% 304
Time 32,173 0.59% 48 47,020 0.54% 64
Other 19,266 5.58% 271 17,527 6.11% 270
Total interest-bearing liabilities 510,513 0.41% 534 479,158 0.53% 639
 
Noninterest-bearing liabilities:
Demand deposits 1,059,257 859,254
Accrued expenses and
other liabilities 20,949 18,111
Shareholders' equity 184,564 160,162
TOTAL $ 1,775,283 $ 1,516,685
 
Net interest income and margin 4.39% $ 18,903 4.99% $ 18,388

 

(1) Loan fee amortization of $2.2 million and $3.6 million, respectively, is included in interest income. Nonperforming loans have been included in average loan balances.
(2) Interest income is reflected on an actual basis, not a fully taxable equivalent basis. Yields are based on amortized cost.
(3) Net of average allowance for credit losses of $22.6 million and $21.6 million, respectively.
       
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
   
 
 
 
Three months ended December 31,   Three months ended September 30,
2014 2014
 
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 1,224,241 5.69 % $ 17,549 $ 1,188,397 6.50 % $ 19,459
Federal funds sold 138,322 0.31 % 109 118,034 0.32 % 94
Investment securities 345,034 2.05 % 1,779 301,915 1.93 % 1,469
Other   326 0.00 %   -   326 0.00 %   -
Total interest earning assets   1,707,923 4.52 %   19,437   1,608,672 5.18 %   21,022
 
Noninterest-earning assets:
Cash and due from banks 29,469 27,473
All other assets (3)   37,891   38,900
TOTAL $ 1,775,283 $ 1,675,045
 
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand $ 12,059 0.03 % $ 1 $ 9,519 0.04 % $ 1
Money market and savings 447,015 0.19 % 214 415,537 0.20 % 206
Time 32,173 0.59 % 48 32,149 0.59 % 48
Other   19,266 5.58 %   271   22,092 4.90 %   273
Total interest-bearing liabilities   510,513 0.41 %   534   479,297 0.44 %   528
 
Noninterest-bearing liabilities:
Demand deposits 1,059,257 997,820
Accrued expenses and
other liabilities 20,949 19,981
Shareholders' equity   184,564   177,947
TOTAL $ 1,775,283 $ 1,675,045
       
Net interest income and margin 4.39 % $ 18,903 5.05 % $ 20,494
 
(1) Loan fee amortization of $2.2 million and $3.7 million, respectively, is included in interest income. Nonperforming loans have been included in average loan balances.
(2) Interest income is reflected on an actual basis, not a fully taxable equivalent basis. Yields are based on amortized cost.
(3) Net of average allowance for credit losses of $22.6 million and $23.2 million, respectively.
 
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
           
 
 
 
Twelve months ended December 31,
2014 2013
 
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
ASSETS
Interest earning assets (2):
Loans (1) $ 1,157,345 6.24 % $ 72,247 $ 971,129 6.66 % $ 64,629
Federal funds sold 121,324 0.30 % 365 121,983 0.26 % 316
Investment securities 306,313 2.04 % 6,243 278,239 2.11 % 5,864
Other   326 0.61 %   2   323 0.31 %   1
Total interest earning assets   1,585,308 4.97 %   78,857   1,371,674 5.16 %   70,810
 
Noninterest-earning assets:
Cash and due from banks 27,524 26,147
All other assets (3)   35,796   33,510
TOTAL $ 1,648,628 $ 1,431,331
 
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand $ 9,930 0.03 % $ 3 $ 9,849 0.03 % $ 3
Money market and savings 410,667 0.22 % 915 403,906 0.29 % 1,179
Time 37,447 0.57 % 214 48,496 0.54 % 260
Other   21,650 4.99 %   1,080   19,116 5.63 %   1,076
Total interest-bearing liabilities   479,694 0.46 %   2,212   481,367 0.52 %   2,518
 
Noninterest-bearing liabilities:
Demand deposits 975,339 778,219
Accrued expenses and
other liabilities 18,601 16,412
Shareholders' equity   174,994   155,333
TOTAL $ 1,648,628 $ 1,431,331
       
Net interest income and margin 4.83 % $ 76,645 4.98 % $ 68,292
 
(1) Loan fee amortization of $12.2 million and $11.9 million, respectively, is included in interest income. Nonperforming loans have been included in average loan balances.
(2) Interest income is reflected on an actual basis, not a fully taxable equivalent basis. Yields are based on amortized cost.
(3) Net of average allowance for credit losses of $22.8 million and $20.6 million, respectively.
         
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
(Dollars in Thousands)
 
 
 
 
  12/31/14     09/30/14     06/30/14     03/31/14     12/31/13  
 
ALLOWANCE FOR CREDIT LOSSES
Balance, beginning of period $ 22,439 $ 23,116 $ 22,665 $ 21,944 $ 20,969
Provision for credit losses, quarterly - 1,000 1,500 500 -
Charge-offs, quarterly (232 ) (2,200 ) (1,271 ) (465 ) (850 )
Recoveries, quarterly   98     523     222     686     1,825  
Balance, end of period $ 22,305   $ 22,439   $ 23,116   $ 22,665   $ 21,944  
 
 
 
 
NONPERFORMING ASSETS
Loans accounted for on a non-accrual basis $ 7,853 $ 8,352 $ 12,901 $ 11,835 $ 15,115
Loans with principal or interest contractually past
due 90 days or more and still accruing interest   -     -     -     -     -  
Nonperforming loans 7,853 8,352 12,901 11,835 15,115
Other real estate owned   23     23     23     23     31  
Nonperforming assets $ 7,876   $ 8,375   $ 12,924   $ 11,858   $ 15,146  
 
Loans restructured and in compliance with
modified terms   9,237     10,363     5,502     5,535     5,569  
Nonperforming assets and restructured loans $ 17,113   $ 18,738   $ 18,426   $ 17,393   $ 20,715  
 
 
Nonperforming Loans by Asset Type:
Commercial $ 1,267 $ 2,602 $ 2,740 $ 59 $ 452
SBA 3,589 3,439 1,962 1,746 1,738
Construction - - - - -
Land - - - - 4
Other real estate 2,800 1,868 6,882 7,159 7,290
Factoring and asset-based lending 197 443 1,317 2,871 5,631
Other   -     -     -     -     -  
Nonperforming loans $ 7,853   $ 8,352   $ 12,901   $ 11,835   $ 15,115  
 
 
 
 
ASSET QUALITY
Allowance for credit losses / gross loans 1.70 % 1.84 % 1.96 % 1.98 % 2.04 %
Allowance for credit losses / nonperforming loans 284.03 % 268.67 % 179.18 % 191.51 % 145.18 %
Nonperforming assets / total assets 0.43 % 0.48 % 0.79 % 0.73 % 0.94 %
Nonperforming loans / gross loans 0.60 % 0.68 % 1.09 % 1.03 % 1.40 %
Net quarterly charge-offs / gross loans 0.01 % 0.14 % 0.09 % -0.02 % -0.09 %