 |
 |
|
|
|||
|
|
|
||
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 |
|
Bridge Capital Holdings Reports Financial Results For the Fourth Quarter and Year Ended December 31, 2008 Fourth Quarter Highlights
For the quarter ended December 31, 2008, the Company's return on average assets and return on average equity were 0.75% and 10.04%, respectively, and compared to 1.42% and 17.12%, respectively, for the same period in 2007. Return on average assets and return on average equity for the twelve months ended December 31, 2008 were (0.88)% and (10.87)%, respectively, compared to 1.45% and 19.34%, respectively, for the same period one year earlier. "The fourth quarter marked significant progress in positioning the Company strongly for the road ahead," said Allan C. Kramer M.D., Chairman of the Boards of Bridge Capital Holdings and Bridge Bank. "In the midst of the most challenging environment in a century for the banking industry, we were able to attract significant capital investment while increasing reserves and decreasing nonperforming assets." "Our successful completion of the private capital raise announced last quarter, together with participation in the government's TARP program has bolstered our capital position by $54 million. We move forward with capital ratios and reserve levels that are among the highest in the nation," said Daniel P. Myers, President and Chief Executive Officer of Bridge Capital Holdings and Bridge Bank. "We believe that we were early to recognize deterioration in economic conditions and are confident that the proactive actions we have taken to fortify our balance sheet position us to continue to meet the needs of our customers and capitalize on opportunities in the businesses and markets we know." Net Interest Income and Margin Net interest income of $10.1 million for the quarter ended December 31, 2008 represented a decrease of approximately $2.3 million, or 18%, from $12.4 million for the same quarter one year earlier and was primarily attributed to the decrease in short-term interest rates. For the twelve months ended December 31, 2008, net interest income of $44.9 million represented a decline of $2.7 million, or 6%, from $47.6 million for the year ended 2007 and was primarily attributed to the decrease in short-term interest rates. The Company's net interest margin for the quarter ended December 31, 2008 was 4.82% compared to 6.93% for the same period one year earlier, primarily due to lower short-term interest rates and lower balance sheet leverage. The Company's loan-to-deposit ratio, a measure of leverage, averaged 91.08% during the quarter ended December 31, 2008, which represented a decrease compared to an average of 95.12% for the same quarter of 2007. In addition, an increased level of nonperforming assets resulted in a negative impact of approximately 29 basis points in the fourth quarter of 2008 from reversed or foregone interest. The net interest margin for the twelve months ended December 31, 2008 was 5.69% compared to 6.76% for the year ended 2007 which was also primarily the result of lower short-term interest rates offset, in part, by higher balance sheet leverage. The Company's average loan-to-deposit ratio for the twelve months ended December 31, 2008 was 94.51% compared to 88.67% for the prior year, reflecting slightly faster loan growth relative to deposit funding. Nonperforming loans had a negative impact on net interest margin of approximately 15 basis points in 2008. "The net interest margin in the fourth quarter of 2008 was significantly impacted by nonperforming assets and the rapid deterioration in our operating environment," said Thomas A. Sa, Executive Vice President and Chief Financial Officer of Bridge Capital Holdings and Bridge Bank. "We took a very defensive posture with regard to our investment portfolio and managed the balance sheet by placing a premium on liquidity. This was a prudent action but came at the cost, over the short-term, of net interest margin. At the same time, we believe that growth in core deposits, particularly non-interest bearing demand deposits position us for strong earnings potential when economic conditions improve." Non-Interest Income The Company's non-interest income for the quarter and twelve months ended December 31, 2008 was $4.6 million and $10.0 million, respectively, compared to $1.4 million and $6.7 million, respectively, for the same periods one year ago. Non-interest income is primarily comprised of international income and gains on the sale of SBA loans; however, the increase in non-interest income during the year ending December 31, 2008 was primarily attributable to the termination of interest rate swaps having a combined notional value of $100.0 million. Due to the significant decline in short-term interest rates, the loan pools designated as hedged against the interest rate swaps had decreased to a level that hedge accounting treatment was no longer applicable. As such, the Company determined that it was economically beneficial to terminate the interest rate swaps and have the ability to immediately recognize $3.3 million in non-interest income and amortize a deferred gain of $4.7 million over the remaining term of the designated hedging relationship. Non-Interest Expense Non-interest expense was $8.3 million and $36.3 million for the quarter and twelve months ended December 31, 2008, respectively, compared to $8.6 million and $33.6 million, respectively, for the same periods in 2007. Salary and benefits expense for the quarter ended December 31, 2008 was $4.0 million, representing a decrease of $1.2 million from $5.2 million in the same period of 2007 that was primarily attributable to the reversal of incentive compensation accrual for 2008. Salary and benefits expense for the twelve months ended December 31, 2008 was $21.4 million, an increase of $400,000 over $21.1 million in the same period of 2007. As of December 31, 2008 the Company employed 171 full-time equivalents (FTE) compared to 170 FTE on the same date one year earlier. The Company's efficiency ratio, the ratio of non-interest expense to revenues, was 56.06% and 66.23% for the quarter and twelve months ended December 31, 2008 compared to 62.44% and 61.83%, respectively, in the same periods one year earlier. Balance Sheet Bridge Capital Holdings reported total assets at December 31, 2008 of $947.6 million, compared to $774.8 million on the same date one year ago. The increase in total assets represented growth of $172.8 million, or 22%, compared to December 31, 2007. The Company reported total gross loans outstanding at December 31, 2008 of $699.6 million, which represented an increase of $46.9 million, or 7%, over $652.7 million for the same date one year earlier. The Company's total deposits were $777.2 million as of December 31, 2008, compared to total deposits of $671.4 million as of December 31, 2007. The increase in deposits represented growth of $105.9 million, or 16%, compared to December 31, 2007. Credit Quality The allowance for loan losses was $18.6 million, or 2.65% of total loans, at December 31, 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 twelve months ended December 31, 2008 was $4.0 million and $31.5 million, respectively, compared to $600,000 and $2.3 million, respectively, for the same periods in 2007. At December 31, 2008 nonperforming assets totaled $16.9 million, or 1.78% of total assets, compared to $5.3 million, or 0.69% of total assets, on the same date one year earlier. The nonperforming assets at December 31, 2008 consisted of 16 loans, representing 14 relationships, totaling $15.8 million, and three properties valued at $1.1 million that were categorized as "other real estate owned". Capital Adequacy At December 31, 2008, shareholders' equity in the Company totaled $112.5 million, which included approximately $53.9 million in preferred stock and $1.1 million in other comprehensive income. Shareholders' equity at December 31, 2008 compared to $65.1 million on the same date one year earlier. As a result, the Company's Total Risk-Based Capital Ratio, Tier I Capital Ratio, and Tier I Leverage Ratio of 16.90%, 13.31%, and 12.36%, respectively, were all substantially above the regulatory standards for "well-capitalized" institutions. Conference Call and Webcast Management will host a conference call tomorrow, January 30, 2009 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 through February 13, 2009 by dialing 800.642.1687 from the United States, or 706.645.9291 from outside the United States, and entering the conference ID 82454718. A webcast replay will be available for 90 days.
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 can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements describe future plans, strategies and expectations, such as, for example, the Company's plans to divest itself of non-performing assets, to sell convertible preferred shares and expectations regarding capital ratios. Forward-looking statements are based on currently available information, expectations, assumptions, projections, and management's judgment about the Company, the banking industry and general economic conditions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that might cause such differences include, but are not limited to: the Company's ability to reach definitive agreements regarding and to subsequently complete the sales of nonperforming assets and convertible preferred shares, the Company's ability to successfully execute its business plans and achieve its objectives; changes in general economic, real estate and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; new litigation or changes in existing litigation; future credit loss experience; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company's operations or business; loss of key personnel; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; and the ability to satisfy requirements related to the Sarbanes-Oxley Act and other regulation on internal control. 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 and Exchange Commission. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
|
|
|
|
 |
| Home | News | Products & Services | Bank Offices | About Bridge Bank | Investor Relations |
