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Bridge Capital Holdings
2008-07-17 15:30:00
Bridge Capital Holdings Reports Financial Results for the Second Quarter Ended June 30, 2008
Management to Host Conference Call and Webcast on July 18 at 9:00 a.m. Eastern Time
SAN JOSE, CA–(EMWNews – July 17, 2008) – Bridge Capital Holdings (
subsidiary is Bridge Bank, National Association, announced today its
financial results for the second quarter ended June 30, 2008.
The Company reported net income of $1.6 million, or $0.23 per diluted
share, for the three months ended June 30, 2008. This represented a
decrease of $1.4 million, or 46%, compared to net income of $3.0 million,
or $0.43 per diluted share, in the same period one year ago. Net income
for the six months ended June 30, 2008 was $3.1 million, or $0.45 per
diluted share, a decrease of $2.3 million, or 42%, compared to $5.4
million, or $0.78 per diluted share, for the first six months of 2007.
Second Quarter Highlights
-- Net income of $1.6 million for the second quarter of 2008 represented
a decrease of $1.4 million, or 46%, compared to $3.0 million for the second
quarter of 2007 and compared to $1.5 million in the first quarter of 2008.
-- Total assets as of June 30, 2008 exceeded $800.0 million for the first
time, and were funded by core deposit growth. At June 30, 2008, demand
deposits and core deposits continued to represent 32% and 87% of total
deposits, respectively.
-- Provision for credit losses of $1.2 million for the second quarter of
2008 represented a decrease of $1.2 million compared to $2.4 million for
the first quarter of 2008 and an increase of $200,000 compared to $1.0
million for the second quarter of 2007.
-- Net interest margin for the second quarter of 2008 remained strong at
6.18% and compared with 6.59% for the first quarter of 2008 and 6.75% for
the second quarter of 2007.
-- Non-interest income of $1.7 million for the second quarter of 2008
remained consistent with non-interest income of $1.7 million for the first
quarter of 2008 and decreased from $2.6 million for the second quarter of
2007.
-- Return on average assets and return on average equity were 0.80% and
9.30%, respectively, for the second quarter of 2008.
-- As of June 30, 2008, the Company continued to remain "well-
capitalized" with a total risk-based capital ratio of 11.72% which
represented an increase from 11.56% for the same period one year ago.
“Our second quarter results were solid in light of the challenges facing
our industry and reflect prudent and proactive recognition of specific
exposures in our real estate portfolio,” said Daniel P. Myers, President
and Chief Executive Officer of Bridge Capital Holdings and Bridge Bank.
“While we are not immune to current economic challenges, we are well
positioned to weather this difficult period due to the strong relative
economic health of our primary market in Silicon Valley, our core business
banking franchise that is built upon a foundation of diversified lending,
our stable core deposits and our strong capital position.”
Net Interest Income and Margin
Net interest income of $11.7 million for the quarter ended June 30, 2008
represented a decrease of approximately $200,000, or 2%, from $11.9 million
reported for the same quarter one year earlier. Average earning assets of
$762.6 million increased $53.6 million, or 8%, compared to $708.9 million
for the same quarter in 2007. The Company’s loan-to-deposit ratio, a
measure of leverage, averaged 97.54% during the quarter ended June 30,
2008, which represented an increase compared to an average of 87.28% for
the same quarter of 2007. The increase was a result of faster loan growth
relative to deposit funding.
For the six months ended June 30, 2008, net interest income of $23.8
million represented growth of $878,000, or 4%, over $22.9 million for the
first six months of 2007. Average earning assets of $748.4 million
increased $74.7 million, or 11%, compared to $673.7 million for the same
period in 2007. The Company’s loan-to-deposit ratio for the six months
ended June 30, 2008 was 97.59%, which represented an increase compared to
an average of 88.20% for the six months ended June 30, 2007 reflecting
faster loan growth relative to deposit funding.
Changes in short-term interest rates also impact growth in net interest
income as the interest rate earned on a majority of the Company’s assets,
specifically the loan portfolio, adjust with changes in short-term market
rates. As such, the nature of the Company’s balance sheet is that, over
time as short-term interest rates change, income on interest earning assets
has a greater impact on net interest income than interest paid on
liabilities. The Company’s prime rate averaged 5.08% and 5.65% in the
quarter and six months ended June 30, 2008, respectively, compared to 8.25%
and 8.25% in the same periods, respectively, one year earlier.
The Company’s net interest margin for the quarter ended June 30, 2008 was
6.18% compared to 6.75% for the same period in 2007. The decline was
primarily the result of lower short term interest rates, lower loan fee
contribution and an increase in nonaccrual loans offset, in part, by income
from interest rate swaps. During the quarter ended June 30, 2008, the net
settlement from interest rate swaps contributed $602,000 to support net
interest income compared to a loss of $106,000 for the quarter ended June
30, 2007.
The Company’s net interest margin for the six months ended June 30, 2008
was 6.38% compared to 6.81% for the same period one year earlier primarily
as a result of the decrease in short term interest rates offset, in part,
by an increase in loan related fees and income from interest rate swaps.
During the six months ended June 30, 2008, the Company recognized $400,000
as a success fee resulting from the completion of a capital raising event
of a loan client. In addition, the net settlement from interest rate swaps
contributed $941,000 to support net interest income in the six months ended
June 30, 2008 compared to a loss of $204,000 for the same period in 2007.
Non-Interest Income
The Company’s
non-interest income for the quarter and six months ended June 30, 2008 was
$1.7 million and $3.4 million, respectively, compared to $2.6 million and
$3.9 million, respectively for the same periods one year ago. For the
quarter and six months ended June 30, 2008 international fee income was
$290,000 and $534,000, respectively, compared to $195,000 and $272,000,
respectively, for the same periods in 2007. Additionally, included in
non-interest income for the quarter and six months ended June 30, 2008 was
a hedge accounting adjustment of $172,000 and $451,000, respectively,
pertaining to the Company’s interest rate swap, and the recognition of a
gain on the sale of securities of $298,000.
During the quarter and six months ended June 30, 2008, the Company sold SBA
loans totaling $8.0 million and $16.6 million, respectively, compared to
$31.2 million and $54.7 million, respectively, for the same periods in
2007. The loans sold during the second quarter of 2007 included $11.3
million of un-guaranteed loans which resulted in an additional $1.2 million
of non-interest income from the gain on sale for that period.
Net interest income and non-interest income comprised total revenue of
$13.4 million for the three months ended June 30, 2008 compared to $14.5
million for the same period one year earlier, representing a decrease of
$1.1 million, or 8%.
Non-Interest Expense
Non-interest expense was $9.5 million and $18.2 million for the quarter and
six months ended June 30, 2008, respectively, compared to $8.4 million and
$16.3 million, respectively for the same periods in 2007. The increase in
non-interest expense was primarily due to an increase in salary and
benefits expense associated with the Company’s expansion. Salary and
benefits expense for the quarter ended June 30, 2008 was $5.9 million, an
increase of $647,000 over $5.3 million in the same period of 2007. Salary
and benefits expense for the six months ended June 30, 2008 was $11.6
million, an increase of $1.3 million over $10.3 million in the same period
of 2007. As of June 30, 2008 the Company employed 178 full-time
equivalents (FTE) compared to 161 FTE on the same date one year earlier.
The Company’s efficiency ratio, the ratio of non-interest expense to
revenues, was 70.77% and 67.23% for the quarter and six months ended June
30, 2008, respectively, compared to 57.93% and 60.77%, respectively for the
same periods one year earlier.
Balance Sheet
Bridge Capital Holdings reported total assets at June 30, 2008 of $810.4
million, compared to $763.8 million at June 30, 2007, representing growth
of $46.6 million, or 6%.
The Company reported total gross loans outstanding at June 30, 2008 of
$708.8 million, which represented an increase of $102.7 million, or 17%,
over $606.1 million as of June 30, 2007. The growth in the loan portfolio
was primarily centered in commercial and industrial loans and commercial
real estate loans. In addition, as of June 30, 2008, 59% of the loan
portfolio consisted of non-real estate loans.
The Company’s total deposits were $716.8 million as of June 30, 2008,
compared to total deposits of $681.1 million as of June 30, 2007. The
increase in deposits represented growth of $35.7 million, or 5%, compared
to June 30, 2007. As of June 30, 2008, demand deposits and core deposits
continued to represent 32% and 87% of total deposits, respectively.
For the quarter and six months ended June 30, 2008, the Company’s return on
average assets were 0.80% and 0.79%, respectively, and compared to 1.57%
and 1.51%, respectively, for the same periods on year earlier. For the
quarter and six months ended June 30, 2008, the Company’s return on average
equity was 9.30% and 9.19%, respectively, and compared to 22.09% and
20.85%, respectively for the same periods in 2007. Return on average
equity for the second quarter and six months ended June 30, 2008 was
reduced, in part, by the impact of appreciation in the value of interest
rate swaps of approximately $4.1 million which increased average other
comprehensive income by approximately $2.9 million and $2.8 million,
respectively.
Credit Quality
The allowance for loan losses was $11.3 million, or 1.59% of total loans,
at June 30, 2008, compared to $8.6 million, or 1.32% of total loans, at
December 31, 2007. The provision for credit losses for the three and six
months ended June 30, 2008 was $1.2 million and $3.6 million, respectively,
compared to $1.0 million and $1.2 million, respectively, for the same
periods in 2007.
At June 30, 2008 nonperforming assets totaled $23.3 million, or 2.87% of
total assets, compared to $15.9 million, or 2.03% of total assets, on March
31, 2008, and $5.3 million, or 0.69% of total assets, on December 31, 2007.
The nonperforming assets at June 30, 2008 consisted of eight lending
relationships totaling $22.3 million that were on non-accrual status and
determined to be impaired based upon the criteria set forth in SFAS No.
114, undeveloped land valued at $658,000 categorized as “other real estate
owned,” and one commercial property valued at $325,000 categorized as
“other real estate owned.”
Included in the non-performing loans were three lending relationships, two
of which were also included in nonperforming assets at March 31, 2008,
totaling $19.6 million at June 30, 2008 that were collateralized by
undeveloped land. The largest of the relationships, representing $10.0
million, is secured by farmland in the Coachella Valley area of Southern
California. Based upon a recent appraisal, this loan is adequately
collateralized and did not require an impairment reserve. The second
relationship, representing $7.6 million, represents two loans secured by
lots for luxury single family construction in Monterey County. These loans
and the related estimated loss exposure were included in nonperforming
loans and the allowance for loan losses at March 31, 2008. There were no
changes to the status of these loans as of June 30, 2008. The third
relationship is a land development loan for $2.0 million in Fresno County.
This loan was included in non-performing assets at March 31, 2008 and
during the second quarter was paid down by $1.7 million.
Also included in the non-performing loans was a construction loan totaling
$1.8 million as of June 30, 2008. The loan is secured by three completed
luxury homes in the hills of the East Bay region of the San Francisco Bay
area. This loan was included in non-performing assets at March 31, 2008
and during the second quarter the Company charged-off $792,000. As such,
this loan no longer had an indicated potential loss exposure and did not
require an impairment reserve. The three other relationships comprising
the balance of non-performing loans at June 30, 2008 consisted of two SBA
loans totaling $402,000 and a technology division relationship consisting
of three loans totaling approximately $500,000 secured by accounts
receivable and business assets.
At June 30, 2008, the allowance for loan and lease losses included
approximately $1.8 million representing the estimated impairment related to
nonperforming loans.
The Company’s loan charge-offs totaled $885,000 during the second quarter
ended June 30, 2008 compared to $943,000 for the same period one year
earlier. The Company recognized $1,000 in loan recoveries and no loan
recoveries for the three months ended June 30, 2008 and 2007, respectively.
“While nonperforming loans increased during the quarter, they are centered
in two loans and we believe we have fully accommodated the estimated
exposure in the allowance at June 30, 2008,” said Thomas A. Sa, Executive
Vice President and Chief Financial Officer of Bridge Capital Holdings and
Bridge Bank. “The increased reserve levels combined with the strength of
our capital position and deposit base provide a solid foundation for the
future.”
Capital Adequacy
At June 30, 2008, shareholders’ equity totaled $69.1 million, which
included approximately $1.9 million in other comprehensive income as the
result of increased value of interest rate swaps and the Bank’s investment
portfolio. Shareholders’ equity at June 30, 2008 compared to $55.0 million
on the same date one year earlier. As a result, the Company’s total
risk-based capital ratio, tier one capital ratio, and leverage ratio of
11.72%, 10.47%, and 10.63%, respectively, were all substantially above the
regulatory standards for “well-capitalized” institutions of 10.00%, 6.00%,
5.00%, respectively.
Conference Call and Webcast
Management will host a conference call tomorrow, July 18, 2008 at 9:00 a.m.
Eastern time/6:00 a.m. Pacific time to further discuss the Company’s
financial results and answer questions.
Individuals interested in participating in the conference call may do so by
dialing 800.891.6020 from the United States, or 702.696.4830 from outside
the United States. Those interested in listening to the conference call
live via the Internet may do so by visiting the Investor Relations section
of the Company’s Web site at www.bridgebank.com.
A telephone replay will be available for 48 hours following the conclusion
of the call by dialing 800.642.1687 from the United States, or 706.645.9291
from outside the United States, and entering reservation code 55037290. A
webcast replay will be available for 90 days.
About Bridge Capital Holdings
Bridge Capital Holdings is the holding company for Bridge Bank, National
Association. Bridge Capital Holdings was formed on October 1, 2004 and
holds a Global Select listing on The NASDAQ Stock Market under the trading
symbol BBNK. For additional information, visit the Bridge Capital Holdings
website at http://www.bridgecapitalholdings.com.
About Bridge Bank, N.A.
Bridge Bank, N.A. is Silicon Valley’s full-service professional business
bank. The Bank is dedicated to meeting the financial needs of small, middle
market, and emerging technology businesses. Bridge Bank provides its
clients with a comprehensive package of business banking solutions
delivered through experienced, professional bankers. For additional
information, visit the Bridge Bank website at http://www.bridgebank.com.
Forward-Looking Statements
Certain matters discussed in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995, and are subject to the safe harbors created by that Act.
Forward-looking statements describe future plans, strategies, and
expectations, and are based on currently available information,
expectations, assumptions, projections, and management’s judgment about the
Bank, the banking industry and general economic conditions. These
forward-looking statements are subject to certain risks and uncertainties
that could cause the actual results, performance or achievements to differ
materially from those expressed, suggested or implied by the forward
looking statements.
These risks and uncertainties include, but are not limited to: (1)
competitive pressures in the banking industry; (2) changes in interest rate
environment; (3) general economic conditions, nationally, regionally, and
in operating markets; (4) changes in the regulatory environment; (5)
changes in business conditions and inflation; (6) changes in securities
markets; (7) future credit loss experience; (8) the ability to satisfy
requirements related to the Sarbanes-Oxley Act and other regulation on
internal control; (9) civil disturbances or terrorist threats or acts, or
apprehension about the possible future occurrences of acts of this type;
and (10) the involvement of the United States in war or other hostilities.
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 Exchange Commission.
-Financial Tables Follow-
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands)
Three months ended Six months ended
------------------------------- --------------------
06/30/08 03/31/08 06/30/07 06/30/08 06/30/07
--------- --------- --------- --------- ---------
INTEREST INCOME
Loans $ 14,248 $ 15,227 $ 15,433 $ 29,475 $ 29,617
Federal funds sold 146 177 753 323 1,277
Investment
securities
available for sale 518 617 750 1,135 1,420
Other 36 - - 36 -
--------- --------- --------- --------- ---------
Total interest
income 14,948 16,021 16,936 30,969 32,314
--------- --------- --------- --------- ---------
INTEREST EXPENSE
Deposits:
Interest-bearing
demand 3 4 10 7 23
Money market and
savings 1,997 2,581 3,628 4,578 6,625
Certificates of
deposit 941 1,088 1,112 2,029 2,268
Other 283 315 260 599 520
--------- --------- --------- --------- ---------
Total interest
expense 3,224 3,988 5,010 7,213 9,436
--------- --------- --------- --------- ---------
Net interest income 11,724 12,033 11,926 23,756 22,878
Provision for credit
losses 1,200 2,370 1,000 3,570 1,200
--------- --------- --------- --------- ---------
Net interest income
after provision
for credit
losses 10,524 9,663 10,926 20,186 21,678
--------- --------- --------- --------- ---------
NON-INTEREST INCOME
Service charges on
deposit accounts 258 229 181 487 332
Gain on sale of SBA
loans 186 283 1,890 469 2,622
Other non-interest
income 1,271 1,159 542 2,430 953
--------- --------- --------- --------- ---------
Total non-
interest income 1,715 1,671 2,613 3,386 3,907
--------- --------- --------- --------- ---------
OPERATING EXPENSES
Salaries and
benefits 5,912 5,650 5,265 11,562 10,267
Premises and fixed
assets 1,156 1,105 1,026 2,261 1,975
Other 2,443 1,981 2,131 4,424 4,034
--------- --------- --------- --------- ---------
Total operating
expenses 9,511 8,736 8,422 18,247 16,276
--------- --------- --------- --------- ---------
Income before income
taxes 2,728 2,598 5,117 5,325 9,309
Income taxes 1,124 1,076 2,134 2,199 3,882
--------- --------- --------- --------- ---------
NET INCOME $ 1,604 $ 1,522 $ 2,983 $ 3,126 $ 5,427
========= ========= ========= ========= =========
EARNINGS PER SHARE
Basic earnings per
share $ 0.25 $ 0.24 $ 0.47 $ 0.49 $ 0.85
========= ========= ========= ========= =========
Diluted earnings per
share $ 0.23 $ 0.22 $ 0.43 $ 0.45 $ 0.78
========= ========= ========= ========= =========
Average common
shares outstanding 6,492,647 6,434,900 6,381,493 6,463,773 6,356,192
========= ========= ========= ========= =========
Average common and
equivalent shares
outstanding 6,861,043 6,954,014 6,933,273 6,909,913 6,908,338
========= ========= ========= ========= =========
PERFORMANCE MEASURES
Return on average
assets 0.80% 0.79% 1.57% 0.79% 1.51%
Return on average
equity 9.30% 9.07% 22.09% 9.19% 20.85%
Efficiency ratio 70.77% 63.75% 57.93% 67.23% 60.77%
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
06/30/08 03/31/08 12/31/07 09/30/07 06/30/07
--------- --------- --------- --------- ---------
ASSETS
Cash and due from
banks $ 31,458 $ 25,138 $ 27,440 $ 19,076 $ 21,274
Federal funds sold 12,765 16,880 13,395 70,155 39,790
Interest-bearing
deposits 5,606 - - - -
Investment
securities
available for sale 28,879 46,823 55,482 66,071 73,362
Loans:
Commercial 293,034 271,390 272,660 264,360 258,978
SBA 64,725 61,472 56,945 63,205 56,176
Real estate
construction 99,712 85,522 85,378 83,030 104,652
Land development 60,117 60,783 56,196 58,938 52,733
Real estate other 132,341 128,134 114,846 85,500 81,566
Factoring and
asset-based
lending 46,819 53,108 57,662 43,942 42,683
Other 12,048 10,898 9,042 12,231 9,341
--------- --------- --------- --------- ---------
Loans, gross 708,796 671,307 652,729 611,206 606,129
Unearned fee
income (2,071) (1,664) (1,856) (1,616) (1,483)
Allowance for
credit losses (11,294) (10,978) (8,608) (8,003) (7,590)
--------- --------- --------- --------- ---------
Loans, net 695,431 658,665 642,265 601,587 597,056
Premises and
equipment, net 5,093 5,045 5,005 4,618 4,966
Accrued interest
receivable 3,325 4,074 4,400 4,748 4,608
Other assets 27,795 28,381 26,845 23,622 22,741
--------- --------- --------- --------- ---------
Total assets $ 810,352 $ 785,006 $ 774,832 $ 789,877 $ 763,797
========= ========= ========= ========= =========
LIABILITIES
Deposits:
Demand noninterest-
bearing $ 229,329 $ 200,567 $ 198,641 $ 201,133 $ 218,651
Demand
interest-bearing 4,439 4,587 5,350 4,271 4,563
Money market and
savings 386,332 386,369 372,923 418,503 372,470
Time 96,714 97,719 94,442 78,943 85,442
--------- --------- --------- --------- ---------
Total deposits 716,814 689,242 671,356 702,850 681,126
--------- --------- --------- --------- ---------
Junior subordinated
debt securities 17,527 17,527 17,527 17,527 17,527
Other borrowings - - 10,000 - -
Accrued interest
payable 224 190 210 298 276
Other liabilities 6,674 9,176 10,655 9,187 9,882
--------- --------- --------- --------- ---------
Total
liabilities 741,239 716,135 709,748 729,862 708,811
--------- --------- --------- --------- ---------
SHAREHOLDERS' EQUITY
Common stock 38,703 38,040 37,697 36,888 36,466
Retained earnings 28,535 26,931 25,409 22,722 19,970
Accumulated other
comprehensive
(loss) 1,875 3,900 1,978 405 (1,450)
--------- --------- --------- --------- ---------
Total shareholders'
equity 69,113 68,871 65,084 60,015 54,986
--------- --------- --------- --------- ---------
Total liabilities
and shareholders'
equity $ 810,352 $ 785,006 $ 774,832 $ 789,877 $ 763,797
========= ========= ========= ========= =========
CAPITAL ADEQUACY
Tier I leverage
ratio 10.63% 10.52% 10.66% 10.20% 10.13%
Tier I risk-based
capital ratio 10.47% 10.47% 10.54% 10.68% 10.48%
Total risk-based
capital ratio 11.72% 11.72% 11.67% 11.80% 11.56%
Total equity/ total
assets 8.53% 8.77% 8.40% 7.60% 7.20%
Book value per share $ 10.50 $ 10.58 $ 10.04 $ 9.32 $ 8.56
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
Three months ended June 30,
-----------------------------------------------------------
2008 2007
----------------------------- -----------------------------
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
--------- -------- --------- --------- -------- ---------
ASSETS
Interest
earning
assets(2):
Loans (1) $ 688,358 8.32% $ 14,248 $ 592,461 10.45% $ 15,433
Federal funds
sold 27,876 2.11% 146 57,851 5.22% 753
Investment
securities 41,973 4.96% 518 58,615 5.13% 750
Other 4,369 3.31% 36 - 0.00% -
--------- -------- --------- --------- -------- ---------
Total interest
earning assets 762,576 7.88% 14,948 708,927 9.58% 16,936
--------- -------- --------- --------- -------- ---------
Noninterest-
earning assets:
Cash and due
from banks 20,546 29,985
All other
assets (3) 23,570 20,993
--------- ---------
TOTAL $ 806,692 $ 759,905
========= =========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
liabilities:
Deposits:
Demand $ 5,519 0.22% $ 3 $ 5,408 0.74% $ 10
Money market
and savings 381,882 2.10% 1,997 376,293 3.87% 3,629
Time 97,726 3.87% 941 91,712 4.86% 1,111
Other 21,834 5.21% 283 17,527 5.95% 260
--------- -------- --------- --------- -------- ---------
Total interest-
bearing
liabilities 506,961 2.56% 3,224 490,940 4.09% 5,010
--------- -------- --------- --------- -------- ---------
Noninterest-
bearing
liabilities:
Demand
deposits 220,572 205,360
Accrued
expenses
and other
liabilities 9,789 9,434
Shareholders'
equity 69,370 54,171
--------- ---------
TOTAL $ 806,692 $ 759,905
========= =========
-------- --------- -------- ---------
Net interest
income and
margin 6.18% $ 11,724 6.75% $ 11,926
======== ========= ======== =========
(1) Loan fee amortization of $1.4 million and $1.5 million, respectively,
is included in interest income. Nonperforming loans have been included
in average loan balances.
(2) Interest income is reflected on an actual basis, not a fully taxable
equivalent basis. Yields are based on amortized cost.
(3) Net of average allowance for credit losses of $11.0 million and $7.5
million, respectively.
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
Six months ended June 30,
-----------------------------------------------------------
2008 2007
----------------------------- -----------------------------
Yields Interest Yields Interest
Average or Income/ Average or Income/
Balance Rates Expense Balance Rates Expense
--------- -------- --------- --------- -------- ---------
ASSETS
Interest
earning assets
(2):
Loans (1) $ 674,220 8.79% $ 29,475 $ 568,542 10.45% $ 29,617
Federal funds
sold 26,028 2.50% 323 49,241 5.20% 1,277
Investment
securities 45,937 4.97% 1,135 55,883 5.10% 1,420
Other 2,188 3.31% 36 - 0.00% -
--------- -------- --------- --------- -------- ---------
Total interest
earning assets 748,373 8.32% 30,969 673,666 9.62% 32,314
--------- -------- --------- --------- -------- ---------
Noninterest-
earning assets:
Cash and due
from banks 19,521 30,426
All other
assets (3) 24,612 20,116
--------- ---------
TOTAL $ 792,506 $ 724,208
========= =========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
liabilities:
Deposits:
Demand $ 5,236 0.27% $ 7 $ 5,462 0.84% $ 23
Money market
and savings 374,902 2.46% 4,578 346,552 3.83% 6,625
Time 97,872 4.17% 2,029 94,855 4.80% 2,268
Other 22,588 5.33% 599 17,527 5.95% 520
--------- -------- --------- --------- -------- ---------
Total
interest-
bearing
liabilities 500,598 2.90% 7,213 464,396 4.07% 9,436
--------- -------- --------- --------- -------- ---------
Noninterest-
bearing
liabilities:
Demand
deposits 212,880 197,723
Accrued
expenses
and other
liabilities 10,609 9,602
Shareholders'
equity 68,419 52,487
--------- ---------
TOTAL $ 792,506 $ 724,208
========= =========
-------- --------- -------- ---------
Net interest
income and
margin 6.38% $ 23,756 6.81% $ 22,878
======== ========= ======== =========
(1) Loan fee amortization of $3.1 million and $2.8 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 $9.9 million and $7.4
million, respectively.
BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
(Dollars in Thousands)
06/30/08 03/31/08 12/31/07 09/30/07 06/30/07
-------- -------- -------- -------- --------
ALLOWANCE FOR CREDIT
LOSSES
Balance, beginning of
period $ 10,978 $ 8,608 $ 8,003 $ 7,590 $ 7,533
Provision for credit
losses, quarterly 1,200 2,370 600 475 1,000
Charge-offs, quarterly (885) - - (312) (943)
Recoveries, quarterly 1 - 5 250 -
-------- -------- -------- -------- --------
Balance, end of period $ 11,294 $ 10,978 $ 8,608 $ 8,003 $ 7,590
======== ======== ======== ======== ========
NONPERFORMING ASSETS
Loans accounted for on a
non-accrual basis $ 22,290 $ 15,578 $ 4,914 $ - $ -
Loans restructured and in
compliance with modified
terms - - - - -
Other loans with
principal or interest
contractually past due
90 days or more - - - - -
-------- -------- -------- -------- --------
Nonperforming loans 22,290 15,578 4,914 - -
Other real estate owned 979 348 425 425 425
-------- -------- -------- -------- --------
Nonperforming assets $ 23,269 $ 15,926 $ 5,339 $ 425 $ 425
======== ======== ======== ======== ========
ASSET QUALITY
Allowance for credit
losses / gross loans 1.59% 1.64% 1.32% 1.31% 1.25%
Allowance for credit
losses / nonperforming
loans 50.67% 70.47% 175.17% 0.00% 0.00%
Nonperforming assets /
total assets 2.87% 2.03% 0.69% 0.05% 0.06%
Nonperforming loans /
gross loans 3.14% 2.32% 0.75% 0.00% 0.00%
Net quarterly charge-offs
/ gross loans 0.12% 0.00% 0.00% 0.01% 0.16%
