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Bridge Bancorp Inc. Reports Operating Results (10-Q)

November 05, 2009 | About:
10qk

10qk

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Bridge Bancorp Inc. (BDGE) filed Quarterly Report for the period ended 2009-09-30.

Bridge Bancorp Inc. is the bank holding company of The Bridgehampton National Bank. Bridge Bancorp Inc. has a market cap of $131 million; its shares were traded at around $21.03 with a P/E ratio of 14.7 and P/S ratio of 2.8. The dividend yield of Bridge Bancorp Inc. stocks is 4.5%.

Highlight of Business Operations:

On February 27, 2009, the FDIC issued a final rule, effective April 1, 2009, to change the way that the FDICs assessment system differentiates for risk and to set new assessment rates beginning with the second quarter of 2009. In May 2009, the FDIC issued a final rule to impose an emergency special assessment of 5 basis points on all banks based on their total assets less tier one capital as of June 30, 2009. The special assessment is payable on September 30, 2009. During the second quarter of 2009, the Company recorded an expense of $375,000 related to the FDIC special assessment. In September 2009, the FDIC issued a Notice of Proposed Rulemaking that would require insured institutions to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009 and for all of 2010, 2011 and 2012. The FDIC also adopted a uniform three-basis point increase in assessment rates effective on January 1, 2011. The Companys estimated prepayment of FDIC assessments is approximately $3.8 million which would be amortized to expense over three years.

Net income for the three months ended September 30, 2009 was $2.3 million or $0.38 per diluted share as compared to $2.4 million or $0.39 per diluted share for the same period in 2008. Changes for the three months ended September 30, 2009 compared to September 30, 2008 include: (i) $1.0 million or 12.8% increase in net interest income; (ii) $0.1 million or 6.7% decrease in total non interest income as a result of lower fee income for customer services and lower title insurance revenues; (iii) $0.7 million or 12.3% increase in total non interest expenses, primarily due to a $0.4 million increase in salaries and employee benefits related to increased staffing and greater incentive based compensation, a $0.3 million increase in other operating expenses primarily related to higher FDIC insurance premiums and higher occupancy costs associated with new branches. In addition, a provision for loan losses of $0.9 million was recorded this quarter due to the continued growth of our loan portfolio as well as our assessment of risk factors considering the weakening economic environment and overall industry trends. The effective income tax rate was 32.0% for the quarter ended September 30, 2009 compared to 33.4% for the same period last year.

Net income was unchanged at $6.6 million for the nine months ended September 30, 2009 and 2008, however the following fluctuations did occur: (i) $5.1 million or 23.2% increase in net interest income; (ii) a provision for loan losses of $3.2 million was recorded in 2009 compared to $1.1 million in 2008 due to the continued growth of our loan portfolio and changes in economic conditions, (iii) $63,000 or 1.3% decrease in total non interest income as a result of lower service charges on deposit accounts and fees on customer services and lower title insurance income and merchant income, partially offset by net securities gains of $0.5 million and (iv) $2.9 million or 18.7% increase in total non interest expenses, primarily due to a $1.3 million increase in salaries and employee benefits related to higher staff levels associated with expanding the Companys infrastructure and the opening of new branch offices and higher incentive based compensation, and a $1.6 million increase in other operating expenses primarily related to higher FDIC insurance premiums related to growth in deposits, higher rates and the special assessment. The effective income tax rate decreased to 32.4% from 32.7% for the same period last year. For the nine months ended September 30, 2009 diluted earnings per share was $1.07 as compared to $1.08 for the same period in 2008.

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