Market Overview

Bridge Bancorp, Inc. Reports First Quarter 2018 Results

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BRIDGEHAMPTON, N.Y., April 25, 2018 (GLOBE NEWSWIRE) -- Bridge Bancorp, Inc. (NASDAQ:BDGE), (the "Company"), the parent company of BNB Bank ("BNB"), today announced first quarter results for 2018. 

The Company's first quarter 2018 financial results included: 

  • Record net income for the 2018 first quarter of $12.1 million, or $0.61 per diluted share, compared to $9.2 million, or $0.47 per diluted share, for the 2017 first quarter.
  • Net interest income for the 2018 first quarter increased $4.1 million over the 2017 first quarter to $34.5 million, with a net interest margin of 3.42%.
  • Total assets of $4.5 billion at March 31, 2018, 11% higher than March 31, 2017.
  • Loan growth of $544 million, or 20%, compared to March 31, 2017, and $99 million, or 13% annualized, from December 31, 2017.
  • Deposit growth of $448 million, or 15%, compared to March 31, 2017, and $97 million, or 12% annualized, from December 31, 2017.
  • Non-public, non-brokered deposit growth of $345 million, or 16%, compared to March 31, 2017, and $36 million, or 6% annualized, from December 31, 2017.
  • Continued solid asset quality metrics and reserve coverage.
  • All capital ratios exceed the fully phased in requirements of Basel III rules.
  • Declared a dividend of $0.23 during the quarter.

Commenting on the first quarter results, Kevin O'Connor, President and CEO said, "The first quarter of 2018 was a solid quarter as we resumed our trend of increasing earnings, strong credit metrics, and steady growth. While these results reflect a lower effective tax rate, pre-tax performance is positive with record quarterly pre-tax income and an expanding net interest margin. Despite closing some branches this quarter, as previously announced, we cut the ribbon on our new location in Riverhead, NY.  We look forward to serving the people and businesses in this important market."

Net Earnings and Returns
Net income in the 2018 first quarter was $12.1 million, or $0.61 per share, an increase of $2.9 million compared to the 2017 first quarter, driven primarily by a rise in net interest income and lower provision for taxes, partially offset by higher non-interest expense.  Return on average assets and equity in the 2018 first quarter were 1.09% and 10.86%, respectively, compared to 0.92% and 8.62%, respectively, in the 2017 first quarter.

Interest income was $41.4 million in the 2018 first quarter, an increase of $1.4 million compared to the 2017 fourth quarter, driven primarily by organic growth in loans and partially offset by a decrease in the average securities portfolio. Interest expense was $6.8 million in the 2018 first quarter, an increase of $0.4 million compared to the 2017 fourth quarter, due to an increase in average interest bearing liabilities coupled with an increase in average cost of interest bearing liabilities.  

"Competition for deposits has been heating up in all of our markets.  One need only open up the newspaper to see the rates that some financial institutions are offering.  BNB is competing selectively with these offerings in a prudent manner, however, our reputation for outstanding service has helped us keep our deposit costs somewhat contained," stated Mr. O'Connor.

"The Federal Reserve continues to raise short-term rates and although the yield curve did steepen through February, it has struggled to maintain that slope into the second quarter. We continue to focus on strategies to protect earnings and capital through the balance of 2018 and beyond," noted Mr. O'Connor.  
  
Provision for loan losses was $0.8 million for the 2018 first quarter, unchanged compared to the 2017 first quarter. The Company recognized recoveries of $0.3 million in the 2018 first quarter, compared to net charge-offs of $0.1 million in the 2017 first quarter.

For the 2018 first quarter, non-interest income was $4.1 million, unchanged compared to the 2017 first quarter, driven primarily by lower gain on sale of Small Business Administration ("SBA") loans, partially offset by higher service charges and other fees and other operating income. 

Non-interest expense for the 2018 first quarter increased to $22.6 million from $20.3 million in the 2017 first quarter. The increase in 2018 is primarily due to higher salaries and employee benefits and other operating expenses, partially offset by lower occupancy and equipment expense.    

Income tax expense was $3.2 million in the 2018 first quarter, a decrease of $1.1 million compared with the 2017 first quarter.  The decrease reflects a lower effective tax rate in 2018 due to the enactment of the Tax Cuts and Jobs Act in the fourth quarter of 2017.  The Company estimates it will record income tax at an effective tax rate of approximately 23% for the remainder of 2018.  

Balance Sheet and Asset Quality
Total assets were $4.5 billion at March 31, 2018, $70.6 million higher than December 31, 2017 and $435.6 million higher than March 31, 2017. Total loans at March 31, 2018 of $3.2 billion reflect growth of $544.4 million, or 20%, over March 31, 2017. Deposits totaled $3.4 billion at March 31, 2018, an increase of $448.4 million, or 15%, over March 31, 2017. Demand deposits increased $136.6 million year-over-year to $1.2 billion at March 31, 2018, representing 36% of total deposits.

Asset quality measures remained solid as non-performing assets were $6.3 million, or 0.14% of total assets, at March 31, 2018, compared to $1.3 million, or 0.03%, at March 31, 2017. Non-performing assets at March 31, 2018 includes $0.2 million of other real estate owned. Non-performing loans were $6.1 million, or 0.19% of total loans at March 31, 2018, compared to $1.3 million, or 0.05%, at March 31, 2017.  Loans 30 to 89 days past due decreased $0.2 million to $4.5 million at March 31, 2018, compared to $4.7 million at March 31, 2017. Loans past due 90 days and accruing at March 31, 2018 and 2017 were comprised of acquired loans of $2.7 million and $1.1 million, respectively.

The allowance for loan losses increased $6.2 million to $32.8 million at March 31, 2018 from $26.6 million as of March 31, 2017. The allowance as a percentage of loans was 1.02% at March 31, 2018, unchanged compared to December 31, 2017 and 0.02% higher than March 31, 2017.   

Stockholders' equity grew $3.8 million to $433.3 million at March 31, 2018, compared to $429.5 million at March 31, 2017.  The growth reflects earnings, partially offset by shareholders' dividends and a decrease in the fair value of available for sale investment securities. Tangible book value per share increased $0.16 to $16.30 at March 31, 2018, compared to $16.14 at March 31, 2017.  The Company's capital ratios exceed all fully phased in capital requirements under the Basel III rules, and the Bank remains classified as well capitalized.

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, formerly known as The Bridgehampton National Bank. Established in 1910, BNB, with assets of approximately $4.5 billion, operates 38 retail branch locations serving Long Island and the greater New York metropolitan area. In addition, BNB operates one loan production office in Manhattan. 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.

This report 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," "intend," "may," "outlook," "predict," "project," "would," "estimated," "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, 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 as a result of the Dodd-Frank Act; and other risk factors discussed elsewhere, and in our reports filed with the Securities and Exchange Commission.   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 SUBSIDIARIES              
Condensed Consolidated Statements of Condition (unaudited)          
(In thousands)              
               
    March 31,    December 31,   March 31,  
      2018       2017       2017    
ASSETS              
Cash and due from banks   $    50,588     $ 76,614     $ 47,541    
Interest earning deposits with banks       48,424       18,133       23,423    
Total cash and cash equivalents       99,012       94,747       70,964    
Securities available for sale, at fair value       726,056       759,916       823,515    
Securities held to maturity       176,089       180,866       214,961    
Total securities       902,145       940,782       1,038,476    
Securities, restricted       36,195       35,349       35,249    
Loans held for investment       3,201,897       3,102,752       2,657,519    
Allowance for loan losses       (32,812 )     (31,707 )     (26,618 )  
Loans, net       3,169,085       3,071,045       2,630,901    
Premises and equipment, net       33,892       33,505       35,124    
Goodwill and other intangible assets       110,953       111,164       111,599    
Other real estate owned       175       -       -    
Accrued interest receivable and other assets       149,167       143,410       142,665    
Total assets   $    4,500,624     $ 4,430,002     $ 4,064,978    
               
LIABILITIES AND STOCKHOLDERS' EQUITY              
Demand deposits   $    1,224,043     $ 1,338,701     $ 1,087,434    
Savings, NOW and money market deposits       1,924,455       1,773,478       1,685,546    
Certificates of deposit of $100,000 or more       159,303       158,584       131,193    
Other time deposits       123,444       63,780       78,694    
Total deposits       3,431,245       3,334,543       2,982,867    
Federal funds purchased and repurchase agreements       872       50,877       50,707    
Federal Home Loan Bank advances       520,092       501,374       491,177    
Subordinated debentures, net       78,676       78,641       78,537    
Other liabilities and accrued expenses       36,416       35,367       32,232    
Total liabilities       4,067,301       4,000,802       3,635,520    
Total stockholders' equity       433,323       429,200       429,458    
Total liabilities and stockholders' equity   $    4,500,624     $ 4,430,002     $ 4,064,978    
               

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES            
Condensed Consolidated Statements of  Income  (unaudited)      
(In thousands, except per share amounts)              
                 
      Three Months Ended   
      Mar. 31,   Dec. 31,   Mar. 31,  
      2018   2017
  2017  
Interest income   $    41,364   $ 39,960     $ 35,217  
Interest expense       6,825     6,399       4,756  
  Net interest income       34,539     33,561       30,461  
Provision for loan losses       800     10,400       800  
  Net interest income after provision for loan losses       33,739     23,161       29,661  
                 
Non-interest income:              
  Service charges and other fees       2,163     2,334       2,050  
  Title fee income       505     546       550  
  Net securities losses       -      (222 )     -  
  Gain on sale of Small Business Administration loans       371     247       543  
  BOLI income       546     560       560  
  Other operating income       528     1,034       419  
  Total non-interest income       4,113     4,499       4,122  
                 
Non-interest expense:              
  Salaries and employee benefits       12,812     11,505       11,500  
  Occupancy and equipment       3,243     3,647       3,398  
  Restructuring costs       -      8,020       -  
  Amortization of other intangible assets       246     247       279  
  Other operating expenses       6,297     5,735       5,119  
  Total non-interest expense       22,598     29,154       20,296  
                 
Income (loss) before income taxes       15,254     (1,494 )     13,487  
Income tax expense       3,181     5,422       4,316  
  Net income (loss)   $    12,073   $ (6,916 )   $ 9,171  
Basic earnings (loss) per share   $    0.61   $ (0.35 )   $ 0.47  
Diluted earnings (loss) per share   $    0.61   $ (0.35 )   $ 0.47  
Weighted average common and equivalent shares       19,437     19,419       19,296  
                 

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES            
Consolidated Financial Highlights (unaudited)            
(In thousands, except per share amounts and financial ratios)          
  Three Months Ended   
  Mar. 31,   Dec. 31,   Mar. 31,  
  2018
  2017
  2017
 
Selected Financial Data:            
Return on average total assets   1.09 %     (0.63 )%     0.92 %  
Adjusted return on average total assets (1)   1.09 %     0.53 %     0.92 %  
Return on average stockholders' equity   10.86 %     (6.07 )%     8.62 %  
Adjusted return on average stockholders' equity (1)   10.86 %     5.15 %     8.62 %  
Return on average tangible common equity (1) (2)   14.41 %     (8.04 )%     11.63 %  
Adjusted return on average tangible common equity (1) (2)   14.65 %     7.01 %     11.86 %  
Net interest margin, tax equivalent basis (1)   3.42 %     3.36 %     3.39 %  
Adjusted net interest margin (1)   3.22 %     3.14 %     3.13 %  
Efficiency ratio   58.47 %     76.60 %     58.69 %  
Adjusted efficiency ratio (1)   57.58 %     54.08 %     57.31 %  
Operating expense/average assets   2.05 %     2.65 %     2.04 %  
Adjusted operating expense/average assets (1)   2.03 %     1.90 %     2.02 %  
             
(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.
             
             
  Mar. 31, 2018   Dec. 31, 2017   Mar. 31, 2017  
Selected Financial Data:            
Book value per share $    21.91     $ 21.78     $ 21.80    
Tangible book value per share (1) $    16.30     $ 16.14     $ 16.14    
Common shares outstanding     19,780       19,709       19,698    
             
Capital Ratios:            
Total capital to risk weighted assets   13.3 %     13.3 %     14.8 %  
Tier 1 capital to risk weighted assets   10.0 %     10.0 %     11.2 %  
Common equity Tier 1 capital to risk weighted assets   10.0 %     10.0 %     11.2 %  
Tier 1 capital to average assets   7.9 %     7.9 %     8.5 %  
Tangible common equity to tangible assets (1) (2)   7.3 %     7.4 %     8.0 %  
Tier 1 capital to average assets (Bank)   9.5 %     9.6 %     9.9 %  
             
Asset Quality:            
Loans 30-89 days past due $    4,506     $ 3,614     $ 4,676    
Loans 90 days past due and accruing (3) $    2,665     $ 1,834     $ 1,072    
Non-performing loans $    6,071     $ 6,955     $ 1,257    
Other real estate owned     175       -       -    
Non-performing assets $    6,246     $ 6,955     $ 1,257    
Non-performing loans/total loans   0.19 %     0.22 %     0.05 %  
Non-performing assets/total assets   0.14 %     0.16 %     0.03 %  
Allowance/non-performing loans   540.47 %     455.89 %     2117.58 %  
Allowance/total loans   1.02 %     1.02 %     1.00 %  
             
(1) Tangible common equity represents a non-GAAP financial measure calculated as total stockholders' equity less goodwill and intangible assets.
(2) Tangible assets represents a non-GAAP financial measure calculated as total assets less goodwill and intangible assets.
(3) Represents loans acquired in connection with the Community National Bank, FNBNY Bancorp, Inc., and Hamptons State Bank acquisitions.
             

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES                      
Supplemental Financial Information                      
Condensed Consolidated Average Balance Sheets And Average Rate Data (unaudited)              
(Dollars in thousands)                      
                                       
    Three Months Ended March 31,   Three Months Ended December 31,   Three Months Ended March 31,  
    2018
  2017
  2017
 
            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)   $    3,127,900   $  35,660     4.62 %   $ 2,984,476   $ 34,309     4.56 %   $ 2,587,999   $ 29,478     4.62 %  
Securities (1)       969,292       5,780     2.42 %     997,762     5,918     2.35 %     1,071,530     6,040     2.29 %  
Deposits with banks       23,108       90     1.58 %     21,638     70     1.28 %     21,411     46     0.87 %  
Total interest earning assets (1)       4,120,300       41,530     4.09 %     4,003,876     40,297     3.99 %     3,680,940     35,564     3.92 %  
Non interest earning assets:                                      
Other assets       354,893             359,460             346,827          
Total assets   $    4,475,193           $ 4,363,336           $ 4,027,767          
                                       
Interest bearing liabilities:                                      
Deposits   $    2,065,045   $    3,226     0.63 %   $ 1,996,584   $ 3,044     0.60 %   $ 1,842,003   $ 2,108     0.46 %  
Federal funds purchased and repurchase agreements       151,647       606     1.62 %     142,923     498     1.38 %     143,565     316     0.89 %  
Federal Home Loan Bank advances       428,247       1,858     1.76 %     401,155     1,723     1.70 %     404,252     1,149     1.15 %  
Subordinated debentures       78,653       1,135     5.85 %     78,618     1,134     5.72 %     78,514     1,135     5.86 %  
Junior subordinated debentures       -       -       -       -     -     -       2,710     48     7.18 %  
Total interest bearing liabilities       2,723,592       6,825     1.02 %     2,619,280     6,399     0.97 %     2,471,044     4,756     0.78 %  
Non interest bearing liabilities:                                      
Demand deposits       1,262,989             1,255,110             1,094,786          
Other liabilities       37,838             36,689             30,464          
Total liabilities       4,024,419             3,911,079             3,596,294          
Stockholders' equity       450,774             452,257             431,473          
Total liabilities and stockholders' equity   $    4,475,193           $ 4,363,336           $ 4,027,767          
                                       
Net interest income/interest rate spread (1)           34,705     3.07 %         33,898     3.02 %         30,808     3.14 %  
                                       
Net interest earning assets/net interest margin (1)   $    1,396,708       3.42 %   $ 1,384,596       3.36 %   $ 1,209,896       3.39 %  
                                       
Tax equivalent adjustment           (166 )   (0.02 )%         (337 )   (0.03 )%         (347 )   (0.03 )%  
                                       
Net interest income/net interest margin       $  34,539     3.40 %       $ 33,561     3.33 %       $ 30,461     3.36 %  
                                       
                                       
(1) Presented on a non-GAAP tax equivalent basis.                                      
                                       

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES            
Non-GAAP Financial Measures (unaudited)            
Reconciliation of as reported (GAAP) and non-GAAP financial measures            
             
The tables below provide a reconciliation of generally accepted accounting principles ("GAAP") (as reported) and non-GAAP financial measures. 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.
  Three Months Ended  
  Mar. 31,   Dec. 31,   Mar. 31,  
  2018
  2017
  2017
 
Return on average total assets - as reported 1.09 %   (0.63 )%   0.92 %  
Restructuring costs 0.00 %   0.73 %   0.00 %  
Income tax effect of restructuring costs 0.00 %   (0.26 )%   0.00 %  
Deferred tax asset remeasurement 0.00 %   0.69 %   0.00 %  
Adjusted return on average total assets (non-GAAP) 1.09 %   0.53 %   0.92 %  
             
Return on average stockholders' equity - as reported 10.86 %   (6.07 )%   8.62 %  
Restructuring costs 0.00 %   7.04 %   0.00 %  
Income tax effect of restructuring costs 0.00 %   (2.46 )%   0.00 %  
Deferred tax asset remeasurement 0.00 %   6.64 %   0.00 %  
Adjusted return on average stockholders' equity (non-GAAP)  10.86 %   5.15 %   8.62 %  
             
Return on average tangible common equity - as reported 14.41 %   (8.04 )%   11.63 %  
Restructuring costs 0.00 %   9.32 %   0.00 %  
Amortization of other intangible assets 0.29 %   0.29 %   0.35 %  
Income tax effect of adjustments above (0.05 )%   (3.36 )%   (0.12 )%  
Deferred tax asset remeasurement 0.00 %   8.80 %   0.00 %  
Adjusted return on average tangible common equity (non-GAAP) 14.65 %   7.01 %   11.86 %  
             

 

BRIDGE BANCORP, INC. AND SUBSIDIARIES            
Non-GAAP Financial Measures (unaudited)            
The following table presents a reconciliation of net income (loss) and diluted earnings (loss) per share (as reported) to adjusted net income and adjusted diluted earnings per share excluding restructuring costs and deferred tax asset remeasurement:
  Three Months Ended  
  Mar. 31,   Dec. 31,   Mar. 31,  
(Dollars in thousands, except per share amounts) 2018
  2017
  2017
 
Net income (loss) - as reported $    12,073     $ (6,916 )   $ 9,171    
Adjustments:            
Restructuring costs     -        8,020       -    
Income tax effect of restructuring costs     -        (2,807 )     -    
Deferred tax asset remeasurement     -        7,572       -    
Adjusted net income (non-GAAP) $    12,073     $ 5,869     $ 9,171    
             
Diluted earnings (loss) per share - as reported $    0.61     $ (0.35 )   $ 0.47    
Adjustments:            
Restructuring costs     -        0.40       -    
Income tax effect of restructuring costs     -        (0.14 )     -    
Deferred tax asset remeasurement     -        0.39       -    
Adjusted diluted earnings per share (non-GAAP) $    0.61     $ 0.30     $ 0.47    
             
The following table presents a reconciliation of efficiency ratio (as reported) and adjusted efficiency ratio (non-GAAP) :
Efficiency ratio - as reported   58.47 %     76.60 %     58.69 %  
Non-interest expense - as reported $    22,598     $ 29,154     $ 20,296    
Less: Restructuring costs     -        (8,020 )       -     
Less: Amortization of intangible assets     (246 )     (247 )     (279 )  
Adjusted non-interest expense  (non-GAAP) $    22,352     $ 20,887     $ 20,017    
Net interest income - as reported $    34,539     $ 33,561     $ 30,461    
Tax equivalent adjustment     166       337       347    
Net interest income, tax-equivalent basis (non-GAAP) $    34,705     $ 33,898     $ 30,808    
Non-interest income - as reported $    4,113     $ 4,499     $ 4,122    
Less: Net securities losses     -        222       -    
Adjusted non-interest income (non-GAAP) $    4,113     $ 4,721     $ 4,122    
Adjusted total revenues for adjusted efficiency ratio (non-GAAP) $    38,818     $ 38,619     $ 34,930    
Adjusted efficiency ratio (non-GAAP) (1)   57.58 %     54.08 %     57.31 %  
             
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  
  Mar. 31,   Dec. 31,   Mar. 31,  
  2018
  2017
  2017
 
Operating expense as a % of average assets - as reported   2.05 %     2.65 %     2.04 %  
Restructuring costs   0.00 %     (0.73 )%     0.00 %  
Amortization of other intangible assets   (0.02 )%     (0.02 )%     (0.02 )%  
Adjusted operating expense as a % of average assets (non-GAAP)   2.03 %     1.90 %     2.02 %  
             
(1) Adjusted efficiency ratio is 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 SUBSIDIARIES            
Non-GAAP Financial Measures (unaudited)            
The following table reconciles net interest margin (as reported) to adjusted net interest margin on a tax equivalent basis, excluding accretion income and average purchase accounting adjustments on acquired loans (non-GAAP) :
  Three Months Ended  
  Mar. 31,   Dec. 31,   Mar. 31,  
(Dollars in thousands) 2018
  2017
  2017
 
Net interest income - as reported $    34,539     $ 33,561     $ 30,461    
Tax equivalent adjustment     166       337       347    
Net interest income, tax-equivalent basis (non-GAAP) $    34,705     $ 33,898     $ 30,808    
Adjustment:            
Less: Accretion income on acquired loans     (1,959 )     (2,072 )     (2,238 )  
Adjusted net interest income, tax-equivalent basis  (non-GAAP) $    32,746     $ 31,826     $ 28,570    
             
Average interest earning assets - as reported $   4,120,300     $ 4,003,876     $ 3,680,940    
Adjustment:            
Average purchase accounting adjustments on acquired loans     9,131       14,309       19,114    
Adjusted average interest earning assets (non-GAAP) $   4,129,431     $ 4,018,185     $ 3,700,054    
             
Net interest margin - as reported (1)   3.40 %     3.33 %     3.36 %  
Tax equivalent adjustment   0.02 %     0.03 %     0.03 %  
Net interest margin, tax-equivalent basis (non-GAAP) (2)   3.42 %     3.36 %     3.39 %  
Adjustment:            
Purchase accounting adjustments on acquired loans   (0.20 )%     (0.22 )%     (0.26 )%  
Adjusted net interest margin (non-GAAP) (3)   3.22 %     3.14 %     3.13 %  
             
(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, tax equivalent basis divided by adjusted average interest earning assets.
             
The following table presents the tangible common equity to tangible assets calculation (non-GAAP) :
  Mar. 31,   Dec. 31,   Mar. 31,  
(Dollars in thousands) 2018
  2017
  2017
 
Total assets - as reported $   4,500,624     $ 4,430,002     $ 4,064,978    
Less: Goodwill and other intangible assets - as reported     (110,953 )     (111,164 )     (111,599 )  
Tangible assets (non-GAAP) $   4,389,671     $ 4,318,838     $ 3,953,379    
             
Total stockholders' equity - as reported $    433,323     $ 429,200     $ 429,458    
Less: Goodwill and other intangible assets - as reported     (110,953 )     (111,164 )     (111,599 )  
Tangible common equity (non-GAAP) $    322,370     $ 318,036     $ 317,859    
             
Tangible common equity to tangible assets (non-GAAP) (1)   7.3 %     7.4 %     8.0 %  
(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

 

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