<PAGE>
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 10-QSB
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934.
For the quarterly period ended March 31, 1997
OR
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934.
For the transition period from to
-------------------------
COMMISSION FILE NUMBER: 000-18546
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BRIDGE BANCORP, INC.
(Exact name of small business issuer as specified in its charter)
NEW YORK
(State or other jurisdiction of
incorporation or organization)
2200 MONTAUK HIGHWAY
BRIDGEHAMPTON, NEW YORK
(Address of principal executive offices)
11932
(Zip Code)
11-2934195
(IRS Employer Identification Number)
(516) 537-1000
(Issuer's telephone number)
2488 MONTAUK HIGHWAY
BRIDGEHAMPTON, NEW YORK
(Former name, former address and former fiscal year,
if changed since last report.)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15 (d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes [X] No [ ]
State the number of shares outstanding of each of the issuer's classes of
common equity, as the latest practicable date: 1,407,999 shares of common stock
as of May 5, 1997.
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BRIDGE BANCORP, INC.
INDEX
Part 1. FINANCIAL INFORMATION
- -----------------------------
Item 1. Financial Statements
Unaudited Consolidated Statements of Condition as of March 31,
1997 and December 31, 1996
Unaudited Consolidated Statements of Income for the three months
ended March 31, 1997 and 1996
Unaudited Consolidated Statements of Cash Flows for the three months ended
March 31, 1997 and 1996
Notes to Unaudited Consolidated Financial Statements
Item 2. Management's Discussion and Analysis or Plan of Operation
PART II. OTHER INFORMATION
- --------------------------
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders-None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8K-None
SIGNATURES
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<TABLE>
<CAPTION>
Part 1. Financial Information
Item 1. Financial Statements
BRIDGE BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except share and per share amounts)
March 31, December 31,
1997 1996
------- -------
<S> <C> <C>
ASSETS
Cash and due from banks ....................................... $ 12,061 $ 12,247
Interest earning deposits with banks .......................... 2,596 68
Federal funds sold ............................................ - 1,250
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Total cash and cash equivalents ........................ 14,657 13,565
Investment in debt and equity securities, net:
Securities available for sale, at fair value ............... 62,489 57,779
Securities held to maturity (fair value of $7,055
and $6,273 respectively) ................................... 7,051 6,262
------- -------
Total investment in debt and equity securities, net .... 69,540 64,041
Loans ......................................................... 121,872 118,881
Less:
Allowance for possible loan losses .......................... 1,312 1,238
------- -------
Loans, net ............................................. 120,560 117,643
Banking premises and equipment, net ........................... 7,540 6,773
Accrued interest receivable ................................... 1,732 1,343
Deferred income taxes ......................................... 363 51
Other assets .................................................. 1,404 1,198
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TOTAL ASSETS .................................................. $ 215,796 $ 204,614
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits ............................................... $ 50,966 $ 50,464
Savings, NOW, and money market deposits ....................... 67,638 73,791
Certificates of deposit of $100,000 or more ................... 28,234 18,251
Other time deposits ........................................... 42,857 42,341
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Total deposits ........................................ 189,695 184,847
Federal funds purchased ....................................... 6,700 -
Accrued interest on depositors' accounts ...................... 1,499 1,537
Other liabilities and accrued expenses ........................ 666 1,304
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Total Liabilities ..................................... $ 198,560 $ 187,688
======= =======
Stockholders' equity:
Common stock, par value $5.00 per share:
Authorized: 6,500,000 shares; issued and outstanding
1,407,600 shares at 3/31/97 and 12/31/96 7,092 7,092
Surplus ..................................................... 600 600
Undivided profits ........................................... 10,152 9,395
Less: Net unrealized appreciation in securities
available for sale, net of tax ......................... 13 460
Treasury Stock at cost, 32,400 shares .................. (621) (621)
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Total Stockholders' Equity ............................ 17,236 16,926
Commitments and contingencies ............................... - -
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .................... $ 215,796 $ 204,614
========= =========
</TABLE>
See accompanying notes to the unaudited consolidated financial statements.
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<TABLE>
<CAPTION>
BRIDGE BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share amounts)
Three Months
Ended March 31,
1997 1996
----- -----
<S> <C> <C>
Interest income:
Loans (including fee income) ........................... $2,921 $2,738
Deposits with banks .................................... 1 1
Federal funds sold ..................................... 77 90
U.S. Treasury and government agency securities ......... 294 262
State and municipal obligations ........................ 252 223
Other securities ....................................... 16 10
Mortgage-backed securities ............................. 451 366
----- -----
Total interest income ................................ 4,012 3,690
===== =====
Interest expense:
Savings, N.O.W. and money market deposits .............. 395 378
Certificates of deposit of $100,000 or more ............ 379 244
Other time deposits .................................... 551 639
Other borrowed money ................................... 13 1
----- -----
Total interest expense ............................... 1,338 1,262
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Net interest income ...................................... 2,674 2,428
Provision for possible loan losses ....................... 60 76
----- -----
Net interest income after provision for
possible loan losses ................................... 2,614 2,352
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Other income:
Service charges on deposit accounts .................... 176 141
Mortgage banking activities ............................ 242 114
Other operating income ................................. 120 178
----- -----
Total other income ................................... 538 433
----- -----
Other expenses:
Salaries and employee benefits ......................... 1,100 986
Net occupancy expense .................................. 138 153
Furniture and fixture expense .......................... 133 120
Other operating expenses ............................... 650 649
----- -----
Total other expenses ................................. 2,021 1,908
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Income before provision for income taxes ................. 1,131 877
Provision for income taxes ............................... 374 280
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Net income ............................................... $ 757 $ 597
====== ======
Basic Earnings per share ................................. $ 0.54 $ 0.41
====== ======
</TABLE>
See accompanying notes to the unaudited consolidated financial statements.
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<TABLE>
<CAPTION>
BRIDGE BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months ended March 31,
1997 1996
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<S> <C> <C>
Operating activities:
Net Income ................................................... $ 757 $ 597
Adjustments to reconcile net income to net cash provided by
operating activities:
Provision for possible loan losses ....................... 60 76
Depreciation and amortization ............................ 111 102
Accretion of discounts ................................... (15) (19)
Amortization of premiums ................................. 32 116
Increase in accrued interest receivable .................. (389) (95)
Increase in other assets ................................. (206) (1)
Increase in accrued and other liabilities ................ 4 345
------ -----
Net cash provided by operating activities ....................... 354 1,121
------ -----
Investing activities:
Purchases of securities available for sale ................... (6,300) (2,112)
Purchases of securities held to maturity ..................... (789) -
Proceeds from maturing securities available for sale ......... - 2,435
Proceeds from maturing securities held to maturity ........... - 1,180
Proceeds from principal payments on mortgage-backed securities 814 1,839
Net increase in loans ........................................ (2,977) (122)
Purchases of banking premises and equipment, net of deletions (878) (423)
------ -----
Net cash used by investing activities .......................... (10,130) 2,797
------ -----
Financing activities:
Net increase in deposits ..................................... 4,848 4,736
Increase in other borrowings ................................. 6,700 -
Cash dividends paid .......................................... (680) (528)
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Net cash provided by financing activities ...................... 10,868 4,208
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Increase in cash and cash equivalents .......................... 1,092 8,126
Cash and cash equivalents beginning of period .................. 13,565 7,480
------ -----
Cash and cash equivalents end of period ........................ $ 14,657 $ 15,606
======== ========
Supplemental information-Cash Flows:
Cash paid for:
Interest ................................................... $ 1,375 $ 1,021
Income taxes ............................................... $ 117 $ 153
</TABLE>
See accompanying notes to the unaudited consolidated financial statements.
<PAGE>
BRIDGE BANCORP, INC. AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
1. Basis of Financial Statement Presentation
The accompanying unaudited consolidated financial statements include the
accounts of Bridge Bancorp, Inc. (the Registrant or Company) and its
wholly-owned subsidiary, The Bridgehampton National Bank (the Bank). The
consolidated financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In preparing the interim financial statements, management has made estimates and
assumptions that affect the reported amounts of assets and liabilities and the
revenue and expense for the reported periods. Actual future results could differ
significantly from these estimates. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results are not necessarily
indicative of the results that may be expected for the year ended December 31,
1997. For further information, refer to the consolidated financial statements
and footnotes thereto included in the Company's Annual Report on Form 10-KSB for
the year ended December 31, 1996.
Item 2. Management's Discussion and Analysis or Plan of Operation
Financial Condition
- -------------------
The assets of the Registrant totaled $215,796,000 at March 31, 1997, an increase
of $ 11,182,000 or 5.5% from the year end. This increase mainly resulted from an
increase in investments in debt and equity securities of 8.6% or $5,499,000 and
and growth in net loans of 2.5% or $2,917,000. Interest earning deposits with
banks increased from $68,000 at December 31, 1996 to $2,596,000 or 3717.7% at
March 31, 1997. Continued construction of the Registrant's main office facility
resulted in an increase in Bank premises and equipment of $767,000 in the first
three months of 1996 as these construction costs are capitalized. The source of
funds for the increase in assets was derived from an increase in deposits of
$4,848,000 or 2.6%, and the increase in purchased federal funds totalling
$6,700,000 at quarter end.
Total stockholders' equity was $17,236,000 at March 31, 1997, an increase of
1.8% over December 31, 1996. The increase of $310,000 was the result of
undistributed net income for the three month period ended March 31, 1996, of
$757,000 less the net decrease in unrealized appreciation in securities
available for sale, net of tax, of $447,000. The decrease in the unrealized
appreciation in securities available for sale is directly attributable to
changes in interest rates. Management determined such depreciation to be
temporary, and does not expect future sales to result in material loss with
regards to results of operations.
On April 15, 1997 the Board of Directors declared a three-for-one stock split in
the form of a stock dividend payable May 30, 1997 to stockholders of record as
of May 1, 1997. The stock split increased outstanding common shares from 469,333
to 1,407,999 shares. Stockholder's equity has been restated to give retroactive
recognition to the stock split for all periods presented by reclassifying from
undivided profits to common stock the par value of the additional shares arising
from the stock split. In addition, all references in the unaudited Consolidated
Financial Statements and Notes thereto to the number of shares and per-share
amounts of the common stock have been restated giving retroactive recognition to
the stock split.
<PAGE>
Results of Operations
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During the first three months of 1997, the Registrant earned net income of
$757,000 or $.54 per share as compared with $597,000 or $.41 per share for the
same period in 1996. Highlights for the three months ended March 31, 1997
include: (i) a $246,000 or 10.1% increase in net interest income; (ii) a
$105,000 or 24.2% increase in total other income; and (iii) a $113,000 or 5.9%
increase in total other expenses. The provision for income taxes increased
$94,000 or 33.6%. In 1997, the Company adopted Statement of Financial Accounting
Standards No. 128 Earnings Per Share.
Net income for the first three months of 1997 reflects annualized returns of
17.55% on average total stockholders' equity and 1.45% on average total assets
as compared to the corresponding figures for the preceding calendar year of
18.84% on average total stockholders' equity and 1.51% on average total assets.
Net interest income, the primary source of income, increased by $246,000 or
10.1% for the current three month period over the same period last year. The
increase primarily resulted from an increase in average total interest earning
assets from $175,348,000 in the first three months of 1996 to $193,152,000 for
the comparable period in 1997, a 10.2% increase. There was a decrease in the
yield on average interest earning assets from 8.4% at March 31, 1996 to 8.3% in
the current year. The cost of average interest bearing liabilities remained the
same at 3.8% . The net yield on average earning assets of 5.5% for the period
ended March 31, 1997 was consistent for the same period in 1996.
A $60,000 provision for possible loan losses was made during the three month
period ended March 31, 1997, compared to a $76,000 provision for the same period
in 1996. The allowance for possible loan losses increased to $1,312,000 at March
31,1997, as compared to $1,238,000 at December 31, 1996. As a percentage of
loans the allowance was 1.08% at March 31, 1997 and 1.04% at December 31, 1996.
The allowance as a percentage of nonperforming loans (including loans past due
90 days or more and still accruing) was 113.3% at March 31, 1997 compared to
460.2% at December 31, 1996. This decrease results from one loan relationship
becoming nonperforming although the Bank feels the borrowings are well
collateralized. The allowance reflects management's evaluation of classified
loans, charge-off trends, concentrations of credit and other pertinent factors.
It also reflects input from the Bank's outside loan review consultants.
Total other income increased during the three month period ended March 31, 1997
by $105,000 or 24.3% over the same period last year. The increase was the result
of mortgage banking activities totalling $242,000, an increase of $128,000 or
112.3% over the same period last year. The increase was caused by the Bank's
efforts to further penetrate the mortgage market. Other operating income
decreased $58,000 or 32.6% from the same period last year . The March 31, 1996
total of $178,000 included nonrecurring other income primarily consisting of
recoveries of interest and fees on nonaccrual loans.
Total other expenses increased during the three month period ended March 31,
1997 by $113,000 or 5.9% over the same period last year. This increase mainly
results from increased salary and employee benefit expense of $114,000 or 11.6%
which relates to salary increases and additional staffing.
The provision for income taxes increased during the three month period ended
March 31, 1997 by $94,000 or 33.6% over the same period last year. The increase
reflects the growth in income before income taxes.
Part II Other Information
None.
<PAGE>
In accordance with the requirement of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
BRIDGE BANCORP, INC.
Date: May 8, 1997 Thomas J. Tobin
---------------
Thomas J. Tobin
President and Chief Executive Officer
Date: May 8, 1997 Christopher Becker
------------------
Christopher Becker
Senior Vice President and Treasurer
<PAGE>
May 8, 1997
Securities and Exchange Commission
450 Fifth Street, N.W.
Filing Desk
Mall Stop 1-H
Washington, DC 20549-1004
Dear Sirs:
Pursuant to regulations of the Securities and Exchange Commission,
submitted herewith for filing on behalf of Bridge Bancorp, Inc. (the "Company")
is the Company's Quarterly Report on Form 10-QSB for the fiscal quarter ended
March 31, 1997.
This filing is being effected by direct transmission to the Commission's
EDGAR System.
Sincerely,
CHRISTOPHER BECKER
Senior Vice President & Treasurer
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000846617
<NAME> Bridge Bancorp, Inc.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-END> Mar-31-1997
<CASH> 12,061
<INT-BEARING-DEPOSITS> 2,596
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 62,489
<INVESTMENTS-CARRYING> 7,051
<INVESTMENTS-MARKET> 7,055
<LOANS> 121,872
<ALLOWANCE> 1,312
<TOTAL-ASSETS> 215,796
<DEPOSITS> 189,695
<SHORT-TERM> 6,700
<LIABILITIES-OTHER> 2,165
<LONG-TERM> 0
0
0
<COMMON> 7,093
<OTHER-SE> 621
<TOTAL-LIABILITIES-AND-EQUITY> 215,796
<INTEREST-LOAN> 2,921
<INTEREST-INVEST> 1,013
<INTEREST-OTHER> 78
<INTEREST-TOTAL> 4,012
<INTEREST-DEPOSIT> 1,325
<INTEREST-EXPENSE> 1,338
<INTEREST-INCOME-NET> 2,674
<LOAN-LOSSES> 60
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,021
<INCOME-PRETAX> 1,131
<INCOME-PRE-EXTRAORDINARY> 1,131
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 757
<EPS-PRIMARY> .54
<EPS-DILUTED> .54
<YIELD-ACTUAL> 5.50
<LOANS-NON> 1158
<LOANS-PAST> 11
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,238
<CHARGE-OFFS> 4
<RECOVERIES> 18
<ALLOWANCE-CLOSE> 1,312
<ALLOWANCE-DOMESTIC> 1,312
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
