Bridge Bancorp, Inc. Reports Fourth Quarter and Year End 2019 Results With Record Earnings Per Share of $0.71 and Record Net Income of $14.2 Million

BRIDGEHAMPTON, N.Y., Jan. 29, 2020 (GLOBE NEWSWIRE) -- Bridge Bancorp, Inc. (NASDAQ: BDGE) (the “Company”), the parent company of BNB Bank (“BNB”), today announced fourth quarter and year end results for 2019.

The Company's fourth quarter and full year 2019 financial results included:

• Net income for the 2019 fourth quarter of $14.2 million, or $0.71 per diluted share.
  
• Net income for the full year 2019 of $51.7 million, or $2.59 per diluted share, compared to $39.2 million, or $1.97 per diluted share, for the full year 2018.
  
• Net interest income for the 2019 fourth quarter increased $1.6 million over the 2018 fourth quarter to $35.6 million.
  
• Tax-equivalent net interest margin was 3.26% in the 2019 fourth quarter, flat compared to the 2018 fourth quarter.
  
• Total assets of $4.9 billion at December 31, 2019, 4% higher than September 30, 2019, and 5% higher than December 31, 2018.
  
• 2019 loan growth of $404 million, or 12%, with 2019 fourth quarter growth of $172 million, or 19% annualized.
  
• Loan and line of credit originations of $1.1 billion for the full year 2019.
• Non-public, non-brokered deposit growth of $77 million, or 3%, compared to December 31, 2018.
  
• Non-performing assets of $4.4 million at December 31, 2019, $1.4 million higher than December 31, 2018 and $0.2 million higher than September 30, 2019. Loan loss reserve coverage to total loans of 0.89% at December 31, 2019.
  
• All capital ratios remain strong. Declared a dividend of $0.24 during the quarter, an increase of 4% over the previous dividend.

Commenting on the fourth quarter results, Kevin O’Connor, President and CEO said, “The results for the quarter were strong, reflecting record levels of income and earnings per share, and the fourth quarter provides the opportunity to reflect on the totality of 2019 and the continued expansion and evolution of our company. We had strong increases in net loans and core deposit growth, with much of this activity occurring in our western markets. This allowed us to aggressively manage the funding mix and deposit costs, offsetting, in large part, the repricing of our larger floating rate loan portfolio. We believe the greater geographic diversity and increased product offerings we have been developing allowed us to adjust to the varied market conditions and specific opportunities of 2019.” 

Net Earnings and Returns
Net income in the 2019 fourth quarter was $14.2 million, or $0.71 per diluted share, an increase of $0.3 million compared to the 2018 fourth quarter, driven primarily by higher net interest income and non-interest income, partially offset by higher provision for loan losses and non-interest expense. Net income for the full year 2019 was $51.7 million, or $2.59 per diluted share, compared to $39.2 million, or $1.97 per diluted share, in 2018.

Returns on average assets and equity in the 2019 fourth quarter were 1.18% and 11.40%, respectively.  Return on average tangible common equity was 14.66% for the 2019 fourth quarter.  

Net Interest Income
Interest income was $44.3 million in the 2019 fourth quarter, a decrease of $2.0 million compared to the 2019 third quarter, primarily due to lower yields in the loan and securities portfolios, and a decrease in average securities, partially offset by loan portfolio growth. Interest expense was $8.7 million in the 2019 fourth quarter, a decrease of $1.0 million compared to the 2019 third quarter, primarily due to a decrease in average cost of interest-bearing liabilities coupled with a decrease in average deposits, partially offset by an increase in average borrowings.

The tax-equivalent net interest margin was 3.26% in the 2019 fourth quarter, which was unchanged year-over-year compared to the 2018 fourth quarter and down 14 basis points compared to the 2019 third quarter.

Commenting on the margin Mr. O’Connor said, “The lower margin, despite our continued aggressive move to manage deposit costs, is the result of the full quarter impact of resets on our growing floating rate loan portfolio, the third quarter effect of line of credit fees and finally, the substantial decline in the yield of our investment portfolio as higher prepayments on the underlying MBS instruments negatively pushed yields lower.”

“This has been an interesting year as we moved from expecting further rate hikes to managing through three rate cuts. The long-term strategy has been to become more neutral to interest rates, restructuring both assets and funding to offset the inherent risks in the core community bank. This can at times create short-term volatility as we saw during this year. Our deposit costs are down 15 basis points and 18 basis points in the third and fourth quarter, respectively, for a total of 33 basis points since the inception of this rate cut cycle.  The asset repricings have been as dramatic, down 26 basis points over this same time frame, but they occurred primarily in the fourth quarter. We continue to believe it’s prudent to maintain a strong core funded balance sheet,” stated Mr. O’Connor. 

Provision for Loan Losses
The provision for loan losses was $0.6 million for the 2019 fourth quarter, $0.2 million higher than the 2018 fourth quarter, and $5.7 million for the full year 2019, $3.9 million higher than the full year 2018. The Company recognized net recoveries of $13 thousand in the 2019 fourth quarter, compared to net charge-offs of $0.9 million in the 2018 fourth quarter. The Company recognized net charge-offs of $4.3 million in the full year 2019, compared to net charge-offs of $2.1 million in the full year 2018.

Non-Interest Income
Non-interest income was $8.4 million for the 2019 fourth quarter, $3.3 million higher than the 2018 fourth quarter, primarily attributable to higher loan swap fees in the 2019 fourth quarter. Non-interest income was $25.4 million for the full year 2019, $13.8 million higher than the 2018 full year, driven primarily by the net securities loss related to the balance sheet restructure in 2018 and higher loan swap fees in 2019.

“A confluence of factors transpired this quarter which impacted our results.  Many multi-family investors opted to lock in low rates for longer periods.  At the same time, the shape of the yield curve enabled us to provide fixed rate funding, while retaining floating rate exposure within 15 basis points of the customer’s fixed rate.  This strategy contributed to our loan growth, as well as non-interest income, while servicing our customers and increasing our asset sensitivity,” noted Mr. O’Connor.

Non-Interest Expense
Non-interest expense for the 2019 fourth quarter of $25.3 million was $3.3 million higher than the 2018 fourth quarter. Non-interest expense for the full year 2019 decreased to $96.1 million from $98.2 million in full year 2018. The increase in the fourth quarter was primarily due to higher salaries and benefits expense, occupancy and equipment costs and other operating expenses in the 2019 period, coupled with the impact of the fraud recovery in the 2018 fourth quarter, partially offset by office relocation costs in the 2018 fourth quarter. The decrease in full year non-interest expense was primarily due to the impact of the net fraud loss and office relocation costs during 2018, partially offset by higher salaries and benefits expense, occupancy and equipment costs and other operating expenses in the 2019 period.

Income Tax Expense
Income tax expense was $3.9 million in the 2019 fourth quarter, and $14.1 million in the full year 2019. Income tax expense was $2.9 million in the 2018 fourth quarter, and $9.1 million in the full year 2018.

Balance Sheet
Total assets were $4.9 billion at December 31, 2019, $185.5 million higher than September 30, 2019, and $220.8 million higher than December 31, 2018. Total loans held for investment at December 31, 2019 of $3.7 billion reflects growth of $404.5 million, or 12%, over year-end 2018. Deposits totaled $3.8 billion at December 31, 2019, a decrease of $71.7 million, or 2%, compared to December 31, 2018. Demand deposits increased $70.4 million year-over-year to $1.5 billion at December 31, 2019, representing 40% of total deposits.

The allowance for loan losses was $32.8 million at December 31, 2019, $1.4 million higher than December 31, 2018. The allowance as a percentage of loans was 0.89% at December 31, 2019, compared to 0.96% at year-end 2018.

Stockholders’ equity was $497.2 million at December 31, 2019, $43.3 million higher than December 31, 2018. The growth reflects earnings, partially offset by shareholders’ dividends. Book value per share was $25.06 at December 31, 2019, $2.13 higher than December 31, 2018. Tangible book value per share was $19.54 at December 31, 2019, $2.18 higher than prior year-end.

											Change Compared To
		December 31,			September 30,			December 31,			September 30,				December 31,
(Dollars in thousands)		2019			2019			2018			2019				2018
Total assets		$	4,921,520		$	4,736,021		$	4,700,744		$	185,499			$	220,776
Total stockholders' equity			497,154			486,403			453,830			10,751				43,324
Loans held for investment
Investor commercial real estate ("CRE")		$	1,034,599		$	990,324		$	863,158		$	44,275			$	171,441
Owner-occupied CRE			531,088			529,483			510,398			1,605				20,690
Construction and land			97,311			116,463			123,393			(19,152	)			(26,082	)
Commercial and industrial			679,444			667,949			645,724			11,495				33,720
Total commercial			2,342,442			2,304,219			2,142,673			38,223				199,769
Multi-family			812,174			673,909			585,827			138,265				226,347
Residential real estate			493,144			497,842			519,763			(4,698	)			(26,619	)
Installment and consumer			24,836			24,998			20,509			(162	)			4,327
Net deferred loan costs and fees			7,689			7,364			7,039			325				650
Total loans held for investment		$	3,680,285		$	3,508,332		$	3,275,811		$	171,953			$	404,474
Deposits
Total IPC deposits		$	3,042,171		$	3,159,772		$	2,965,007		$	(117,601	)		$	77,164
Brokered deposits			164,034			65,598			255,408			98,436				(91,374	)
Public deposits			608,442			517,913			665,978			90,529				(57,536	)
Total public and brokered deposits			772,476			583,511			921,386			188,965				(148,910	)
Total deposits		$	3,814,647		$	3,743,283		$	3,886,393		$	71,364			$	(71,746	)

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)		2019			2019			2018			2019			2018
Investor CRE		$	68,562		$	100,120		$	25,871		$	243,512		$	126,042
Owner-occupied CRE			20,221			12,973			18,720			118,286			77,793
Commercial and industrial			79,404			57,119			59,335			332,167			259,120
Multi-family			175,906			48,160			10,425			297,860			50,945
Residential real estate			9,228			8,764			12,539			35,517			96,133
Other			18,618			23,901			11,724			94,337			85,535
Total loan and line of credit originations		$	371,939		$	251,037		$	138,614		$	1,121,679		$	695,568

“In 2019 we planned to focus on our western markets where we had greater opportunity to grow market share. This year more than half of our over $1 billion in loan production came from the Nassau County and New York City markets, compared to 2018 when more than half of our loan production occurred in Suffolk County.  Our plan included hiring more bankers to cover our western markets, working in concert with our branch network; this cooperative effort resulted in a 19% increase in deposits in our western region.  Embedded in our IPC deposits are several relationships that decreased due to pricing expectations that we did not feel fit our strategy.  We constantly balance the use of alternative funding sources when evaluating whether to pay up for deposits,” Mr. O’Connor said.

Asset Quality
Asset quality measures remained solid, as non-performing assets were $4.4 million, or 0.09% of total assets, at December 31, 2019, compared to $3.0 million, or 0.06% of total assets, at December 31, 2018. Non-performing assets at December 31, 2018 included $0.2 million of other real estate owned. Non-performing loans were $4.4 million, or 0.12% of total loans at December 31, 2019, compared to $2.8 million, or 0.09% of total loans at December 31, 2018.  Loans 30 to 89 days past due increased $2.0 million to $6.4 million at December 31, 2019, compared to $4.4 million at December 31, 2018. Loans past due 90 days and accruing at December 31, 2019 and 2018 were comprised of $0.3 million of purchased credit impaired loans.

Conference Call
The Company will host a conference call on Thursday, January 30, 2020 at 10:00 AM (ET) to discuss the 2019 fourth quarter results. Investors who would like to join the conference call are encouraged to pre-register using the following link: http://dpregister.com/10137586. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. Telephonic replay will be available through the Company’s website beginning approximately one hour after the conclusion of the call through Thursday, February 13, 2020.

Call and replay information are as follows:

Call Date: Thursday, January 30, 2020
Call Time: 10:00 AM (ET)
Domestic Call Dial In:  1-844-746-0738
International Call Dial In:  1-412-317-5271

Replay Domestic Dial In:  1-877-344-7529
Replay International Dial In:  1-412-317-0088
Access Code: 10137586

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 $4.9 billion, operates 40 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.

This 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; 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)

		December 31,				September 30,				December 31,
		2019				2019				2018
Assets
Cash and due from banks		$	77,693			$	87,004			$	142,145
Interest-earning deposits with banks			39,501				44,214				153,223
Total cash and cash equivalents			117,194				131,218				295,368
Securities available for sale, at fair value			638,291				610,706				680,886
Securities held to maturity			133,638				139,729				160,163
Total securities			771,929				750,435				841,049
Securities, restricted			32,879				28,469				24,028
Loans held for sale			12,643				12,643				—
Loans held for investment			3,680,285				3,508,332				3,275,811
Allowance for loan losses			(32,786	)			(32,173	)			(31,418	)
Loans held for investment, net			3,647,499				3,476,159				3,244,393
Premises and equipment, net			34,062				33,544				35,008
Operating lease right-of-use assets (1)			43,450				36,356				—
Goodwill and other intangible assets			109,627				109,840				110,324
Other real estate owned			—				—				175
Accrued interest receivable and other assets			152,237				157,357				150,399
Total assets		$	4,921,520			$	4,736,021			$	4,700,744
Liabilities and stockholders' equity
Demand deposits		$	1,386,037			$	1,379,803			$	1,275,664
Savings and negotiable order of withdrawal ("NOW") deposits			438,902				506,476				496,881
Money market deposit accounts ("MMDA")			1,012,322				1,063,848				975,531
Certificates of deposit of less than $100,000			58,640				59,913				61,827
Certificates of deposit of $100,000 or more			146,270				149,732				155,104
Total individual, partnership and corporate ("IPC") deposits			3,042,171				3,159,772				2,965,007
Brokered deposits			164,034				65,598				255,408
Public funds - demand deposits			132,921				45,036				172,941
Public funds - other deposits			475,521				472,877				493,037
Total public and brokered deposits			772,476				583,511				921,386
Total deposits			3,814,647				3,743,283				3,886,393
Federal funds purchased and repurchase agreements			999				956				539
Federal Home Loan Bank ("FHLB") advances			435,000				337,000				240,433
Subordinated debentures, net			78,920				78,885				78,781
Operating lease liabilities (1)			45,977				39,064				—
Other liabilities and accrued expenses			48,823				50,430				40,768
Total liabilities			4,424,366				4,249,618				4,246,914
Total stockholders' equity			497,154				486,403				453,830
Total liabilities and stockholders' equity		$	4,921,520			$	4,736,021			$	4,700,744

____________________________
(1) The Company adopted ASU 2016-02, Leases (Topic 842) using the transition approach at the beginning of the period of adoption on January 1, 2019 and did not restate comparative prior periods.

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

		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2019				2019				2018				2019				2018
Interest income		$	44,320			$	46,354			$	43,480			$	181,541			$	168,984
Interest expense			8,672				9,639				9,382				39,338				32,204
Net interest income			35,648				36,715				34,098				142,203				136,780
Provision for loan losses			600				1,000				400				5,700				1,800
Net interest income after provision for loan losses			35,048				35,715				33,698				136,503				134,980
Non-interest income:
Service charges and other fees			2,487				2,588				2,579				10,059				9,853
Title fees			571				508				458				1,720				1,797
Net securities gains (losses)			—				—				—				201				(7,921	)
Gain on sale of SBA loans			322				601				492				1,984				2,078
Bank owned life insurance			560				561				561				2,230				2,219
Loan swap fees			4,260				1,557				3				7,460				716
Other			226				429				1,022				1,733				2,826
Total non-interest income			8,426				6,244				5,115				25,387				11,568
Non-interest expense:
Salaries and employee benefits			15,011				14,294				12,457				56,244				50,458
Occupancy and equipment			3,791				3,490				3,472				14,372				13,245
Net fraud (recovery) loss			—				—				(600	)			—				8,900
Office relocation costs			—				—				750				—				750
Amortization of other intangible assets			182				182				214				787				917
Other			6,348				6,238				5,778				24,736				23,910
Total non-interest expense			25,332				24,204				22,071				96,139				98,180
Income before income taxes			18,142				17,755				16,742				65,751				48,368
Income tax expense			3,934				3,852				2,878				14,060				9,141
Net income		$	14,208			$	13,903			$	13,864			$	51,691			$	39,227
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,
		2019				2019				2018				2019				2018
Net income		$	14,208			$	13,903			$	13,864			$	51,691			$	39,227
Dividends paid on and earnings allocated to participating securities			(299	)			(294	)			(303	)			(1,096	)			(853	)
Income attributable to common stock		$	13,909			$	13,609			$	13,561			$	50,595			$	38,374
Weighted average common shares outstanding, including participating securities			19,957				19,958				19,893				19,952				19,875
Weighted average participating securities			(419	)			(422	)			(433	)			(424	)			(434	)
Weighted average common shares outstanding			19,538				19,536				19,460				19,528				19,441
Basic earnings per common share		$	0.71			$	0.70			$	0.70			$	2.59			$	1.97
Weighted average common shares outstanding			19,538				19,536				19,460				19,528				19,441
Incremental shares from assumed conversions of options and restricted stock units			40				32				32				31				27
Weighted average common and equivalent shares outstanding			19,578				19,568				19,492				19,559				19,468
Diluted earnings per common share		$	0.71			$	0.70			$	0.70			$	2.59			$	1.97

BRIDGE BANCORP, INC. AND SUBSIDIARIES
Consolidated 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,
		2019		2019		2018		2019		2018
Selected Financial Data:
Return on average total assets		1.18	%	1.17	%	1.22	%	1.10	%	0.87	%
Adjusted return on average total assets (1)		1.18		1.17		1.23		1.10		1.18
Return on average stockholders' equity		11.40		11.44		12.32		10.84		8.66
Adjusted return on average stockholders' equity (1)		11.40		11.44		12.43		10.84		11.69
Return on average tangible common equity (1) (2)		14.66		14.81		16.38		14.09		11.47
Adjusted return on average tangible common equity (1) (2)		14.81		14.97		16.72		14.26		15.69
Net interest margin, tax-equivalent basis		3.26		3.40		3.26		3.31		3.33
Efficiency ratio		57.48		56.34		56.28		57.37		66.18
Adjusted efficiency ratio (1)		56.93		55.79		55.16		56.79		55.85
Operating expense/average assets		2.10		2.04		1.94		2.04		2.19
Adjusted operating expense/average assets (1)		2.09		2.03		1.90		2.02		1.95

____________________________
(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,
		2019			2019			2018
Selected Financial Data:
Book value per share		$	25.06		$	24.53		$	22.93
Tangible book value per share (1)		$	19.54		$	18.99		$	17.36
Common shares outstanding			19,837			19,830			19,791
Capital Ratios:
Total capital to risk-weighted assets			13.1	%		13.4	%		13.6	%
Tier 1 capital to risk-weighted assets			10.2			10.4			10.4
Common equity Tier 1 capital to risk-weighted assets			10.2			10.4			10.4
Tier 1 capital to average assets			8.5			8.4			8.1
Tangible common equity to tangible assets (1) (2)			8.1			8.1			7.5
Tier 1 capital to average assets (Bank)			10.1			10.0			9.9
Asset Quality:
Loans 30-89 days past due		$	6,366		$	5,986		$	4,400
Loans 90 days past due and accruing (3)		$	343		$	338		$	308
Non-performing loans		$	4,369		$	4,211		$	2,808
Other real estate owned			—			—			175
Non-performing assets		$	4,369		$	4,211		$	2,983
Non-performing loans/total loans			0.12	%		0.12	%		0.09	%
Non-performing assets/total assets			0.09			0.09			0.06
Allowance/non-performing loans			750.42			764.02			1118.87
Allowance/total loans			0.89			0.92			0.96

____________________________
(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.
(3) Represents purchased credit impaired loans.

BRIDGE BANCORP, INC. AND SUBSIDIARIES
Supplemental Financial Information
Condensed 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,
		2019										2019										2018
									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)		$	3,547,865		$	39,780			4.45		%	$	3,442,462		$	41,053			4.73		%	$	3,206,033		$	36,848			4.56		%
Securities (1)			761,628			4,432			2.31				787,387			5,060			2.55				882,886			6,328			2.84
Deposits with banks			46,994			212			1.79				61,853			342			2.19				74,348			443			2.36
Total interest-earning assets (1)			4,356,487			44,424			4.05				4,291,702			46,455			4.29				4,163,267			43,619			4.16
Non-interest-earning assets:
Other assets			428,508										412,300										359,740
Total assets		$	4,784,995									$	4,704,002									$	4,523,007
Interest-bearing liabilities:
Savings		$	335,743		$	377			0.45		%	$	433,086		$	1,083			0.99		%	$	375,792		$	656			0.69		%
NOW			136,562			53			0.15				125,056			51			0.16				113,116			40			0.14
MMDA			1,067,493			3,108			1.16				1,034,002			3,452			1.32				906,565			2,950			1.29
Savings, NOW and MMDA			1,539,798			3,538			0.91				1,592,144			4,586			1.14				1,395,473			3,646			1.04
Certificates of deposit of less than $100,000			59,337			284			1.90				60,144			299			1.97				61,803			250			1.60
Certificates of deposit of $100,000 or more			147,557			774			2.08				152,093			844			2.20				156,806			739			1.87
Total IPC deposits			1,746,692			4,596			1.04				1,804,381			5,729			1.26				1,614,082			4,635			1.14
Brokered deposits			93,372			391			1.66				75,410			387			2.04				263,580			1,528			2.30
Public funds			452,509			939			0.82				500,440			1,139			0.90				433,845			787			0.72
Total public and brokered deposits			545,881			1,330			0.97				575,850			1,526			1.05				697,425			2,315			1.32
Total deposits			2,292,573			5,926			1.03				2,380,231			7,255			1.21				2,311,507			6,950			1.19
Federal funds purchased and repurchase agreements			116,312			494			1.69				14,160			70			1.96				3,180			15			1.87
FHLB advances			250,446			1,118			1.77				244,011			1,179			1.92				265,235			1,282			1.92
Subordinated debentures			78,897			1,134			5.70				78,862			1,135			5.71				78,758			1,135			5.72
Total borrowings			445,655			2,746			2.44				337,033			2,384			2.81				347,173			2,432			2.78
Total interest-bearing liabilities			2,738,228			8,672			1.26				2,717,264			9,639			1.41				2,658,680			9,382			1.40
Non-interest-bearing liabilities:
Demand deposits			1,452,908										1,417,159										1,370,428
Other liabilities			99,607										87,313										47,547
Total liabilities			4,290,743										4,221,736										4,076,655
Stockholders' equity			494,252										482,266										446,352
Total liabilities and stockholders' equity		$	4,784,995									$	4,704,002									$	4,523,007
Net interest rate spread									2.79		%								2.88		%								2.76		%
Net interest-earning assets		$	1,618,259									$	1,574,438									$	1,504,587
Net interest margin - tax-equivalent						35,752			3.26		%					36,816			3.40		%					34,237			3.26		%
Less: Tax-equivalent adjustment						(104	)		(0.01	)						(101	)		(0.01	)						(139	)		(0.01	)
Net interest income					$	35,648									$	36,715									$	34,098
Net interest margin									3.25		%								3.39		%								3.25		%

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

BRIDGE BANCORP, INC. AND SUBSIDIARIES
Supplemental Financial Information
Condensed Consolidated Average Balance Sheets and Average Rate Data (unaudited)
(Dollars in thousands)

		Year Ended December 31,
		2019										2018
									Average										Average
		Average							Yield/			Average							Yield/
		Balance			Interest				Cost			Balance			Interest				Cost
Interest-earning assets:
Loans, net (including loan fee income) (1)		$	3,410,773		$	158,492			4.65		%	$	3,167,933		$	144,568			4.56		%
Securities (1)			823,280			21,874			2.66				910,726			23,936			2.63
Deposits with banks			75,600			1,697			2.24				52,143			1,076			2.06
Total interest-earning assets (1)			4,309,653			182,063			4.22				4,130,802			169,580			4.11
Non-interest-earning assets:
Other assets			408,813										362,276
Total assets		$	4,718,466									$	4,493,078
Interest-bearing liabilities:
Savings		$	402,701		$	3,596			0.89		%	$	326,576		$	1,261			0.39		%
NOW			123,075			193			0.16				121,818			123			0.10
MMDA			1,024,719			13,986			1.36				838,481			8,570			1.02
Savings, NOW and MMDA			1,550,495			17,775			1.15				1,286,875			9,954			0.77
Certificates of deposit of less than $100,000			60,428			1,129			1.87				59,516			790			1.33
Certificates of deposit of $100,000 or more			150,638			3,156			2.10				122,621			2,129			1.74
Total IPC deposits			1,761,561			22,060			1.25				1,469,012			12,873			0.88
Brokered deposits			127,765			2,759			2.16				273,127			5,205			1.91
Public funds			508,240			4,640			0.91				471,967			2,658			0.56
Total public and brokered deposits			636,005			7,399			1.16				745,094			7,863			1.06
Total deposits			2,397,566			29,459			1.23				2,214,106			20,736			0.94
Federal funds purchased and repurchase agreements			41,077			767			1.87				69,604			1,200			1.72
FHLB advances			245,283			4,573			1.86				324,653			5,729			1.76
Subordinated debentures			78,845			4,539			5.76				78,706			4,539			5.77
Total borrowings			365,205			9,879			2.71				472,963			11,468			2.42
Total interest-bearing liabilities			2,762,771			39,338			1.42				2,687,069			32,204			1.20
Non-interest-bearing liabilities:
Demand deposits			1,392,606										1,310,857
Other liabilities			86,130										42,392
Total liabilities			4,241,507										4,040,318
Stockholders' equity			476,959										452,760
Total liabilities and stockholders' equity		$	4,718,466									$	4,493,078
Net interest rate spread									2.80		%								2.91		%
Net interest-earning assets		$	1,546,882									$	1,443,733
Net interest margin - tax-equivalent						142,725			3.31		%					137,376			3.33		%
Less: Tax-equivalent adjustment						(522	)		(0.01	)						(596	)		(0.02	)
Net interest income					$	142,203									$	136,780
Net interest margin									3.30		%								3.31		%

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

BRIDGE BANCORP, INC. AND SUBSIDIARIES
Non-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 a fraud recovery and office relocation costs during the fourth quarter of 2018, a fraud loss during the third quarter of 2018 and certain net securities losses associated with the Company’s strategic plan to restructure its balance sheet during the second quarter of 2018.

		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,			December 31,
		2019			2019			2018			2019			2018
Return on average total assets - as reported		1.18		%	1.17		%	1.22		%	1.10		%	0.87		%
Net securities losses		—			—			—			—			0.18
Net fraud (recovery) loss		—			—			(0.05	)		—			0.20
Office relocation costs		—			—			0.07			—			0.02
Income tax effect of adjustments above		—			—			(0.01	)		—			(0.09	)
Adjusted return on average total assets (non-GAAP)		1.18			1.17			1.23			1.10			1.18
Return on average stockholders' equity - as reported		11.40		%	11.44		%	12.32		%	10.84		%	8.66		%
Net securities losses		—			—			—			—			1.75
Net fraud (recovery) loss		—			—			(0.53	)		—			1.97
Office relocation costs		—			—			0.67			—			0.17
Income tax effect of adjustments above		—			—			(0.03	)		—			(0.86	)
Adjusted return on average stockholders' equity (non-GAAP)		11.40			11.44			12.43			10.84			11.69
Return on average tangible common equity - as reported		14.66		%	14.81		%	16.38		%	14.09		%	11.47		%
Net securities losses		—			—			—			—			2.32
Net fraud (recovery) loss		—			—			(0.71	)		—			2.60
Office relocation costs		—			—			0.89			—			0.22
Amortization of other intangible assets		0.19			0.19			0.25			0.21			0.27
Income tax effect of adjustments above		(0.04	)		(0.03	)		(0.09	)		(0.04	)		(1.19	)
Adjusted return on average tangible common equity (non-GAAP)		14.81			14.97			16.72			14.26			15.69

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

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 a fraud recovery and office relocation costs during the fourth quarter of 2018, a fraud loss during the third quarter of 2018 and net securities losses associated with the Company’s strategic plan to restructure its balance sheet during the second quarter of 2018:

		Three Months Ended										Year Ended
		December 31,			September 30,			December 31,				December 31,			December 31,
(Dollars in thousands, except per share amounts)		2019			2019			2018				2019			2018
Net income - as reported		$	14,208		$	13,903		$	13,864			$	51,691		$	39,227
Adjustments:
Net securities losses			—			—			—				—			7,921
Net fraud (recovery) loss			—			—			(600	)			—			8,900
Office relocation costs			—			—			750				—			750
Income tax effect of adjustments above			—			—			(32	)			—			(3,865	)
Adjusted net income (non-GAAP)		$	14,208		$	13,903		$	13,982			$	51,691		$	52,933
Diluted earnings per share - as reported		$	0.71		$	0.70		$	0.70			$	2.59		$	1.97
Adjustments:
Net securities losses			—			—			—				—			0.40
Net fraud (recovery) loss			—			—			(0.03	)			—			0.45
Office relocation costs			—			—			0.04				—			0.04
Income tax effect of adjustments above			—			—			(0.01	)			—			(0.20	)
Adjusted diluted earnings per share (non-GAAP)		$	0.71		$	0.70		$	0.70			$	2.59		$	2.66

The following table presents a reconciliation of efficiency ratio (as reported) 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)		2019				2019				2018				2019				2018
Efficiency ratio - as reported			57.48		%		56.34		%		56.28		%		57.37		%		66.18		%
Non-interest expense - as reported		$	25,332			$	24,204			$	22,071			$	96,139			$	98,180
Less: Net fraud recovery (loss)			—				—				600				—				(8,900	)
Less: Office relocation costs			—				—				(750	)			—				(750	)
Less: Amortization of intangible assets			(182	)			(182	)			(214	)			(787	)			(917	)
Adjusted non-interest expense (non-GAAP)		$	25,150			$	24,022			$	21,707			$	95,352			$	87,613
Net interest income - as reported		$	35,648			$	36,715			$	34,098			$	142,203			$	136,780
Tax-equivalent adjustment			104				101				139				522				596
Net interest income, tax-equivalent basis		$	35,752			$	36,816			$	34,237			$	142,725			$	137,376
Non-interest income - as reported		$	8,426			$	6,244			$	5,115			$	25,387			$	11,568
Less: Net securities (gains)/ losses			—				—				—				(201	)			7,921
Adjusted non-interest income (non-GAAP)		$	8,426			$	6,244			$	5,115			$	25,186			$	19,489
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)		$	44,178			$	43,060			$	39,352			$	167,911			$	156,865
Adjusted efficiency ratio (non-GAAP) (1)			56.93		%		55.79		%		55.16		%		56.79		%		55.85		%

____________________________
(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 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,
		2019			2019			2018			2019			2018
Operating expense as a % of average assets - as reported		2.10		%	2.04		%	1.94		%	2.04		%	2.19		%
Net fraud recovery (loss)		—			—			0.05			—			(0.20	)
Office relocation costs		—			—			(0.07	)		—			(0.02	)
Amortization of other intangible assets		(0.01	)		(0.01	)		(0.02	)		(0.02	)		(0.02	)
Adjusted operating expense as a % of average assets (non-GAAP)		2.09			2.03			1.90			2.02			1.95

____________________________

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

		December 31,				September 30,				December 31,
(Dollars in thousands)		2019				2019				2018
Total assets - as reported		$	4,921,520			$	4,736,021			$	4,700,744
Less: Goodwill and other intangible assets - as reported			(109,627	)			(109,840	)			(110,324	)
Tangible assets (non-GAAP)		$	4,811,893			$	4,626,181			$	4,590,420
Total stockholders' equity - as reported		$	497,154			$	486,403			$	453,830
Less: Goodwill and other intangible assets - as reported			(109,627	)			(109,840	)			(110,324	)
Tangible common equity (non-GAAP)		$	387,527			$	376,563			$	343,506
Tangible common equity to tangible assets (non-GAAP) (1)			8.1		%		8.1		%		7.5		%

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

Contact:	John M. McCaffery
	Executive Vice President
	Chief Financial Officer
	[phone], ext. 7290