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Bridge Capital Holdings Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2009

Posted by Dana in November 3rd 2009

Bridge Capital Holdings (NASDAQ: BBNK), whose subsidiary is Bridge Bank, National Association, announced its financial results for the third quarter and nine months ended September 30, 2009.

The Company reported an operating profit of $539,000 for the three months ended September 30, 2009, representing an improvement of $9.7 million compared to an operating loss of $(9.2) million for the same period one year ago. The operating profit for the third quarter of 2009 was reduced by preferred dividends of $1.1 million resulting in a net loss available to common shareholders of $(525,000), or $(0.08) per diluted common share. This represented an improvement of $8.7 million compared to a net loss available to common shareholders of $(9.2) million, or $(1.41) per diluted common share, for the same period one year ago. There were no preferred dividends during the third quarter of 2008.

The Company reported an operating profit of $30,000 for the nine months ended September 30, 2009, representing an improvement of $9.0 million compared to an operating loss of $(9.0) million for the same period one year ago. The operating profit for the first nine months of 2009 was reduced by preferred dividends of $3.1 million resulting in a net loss available to common shareholders of $(3.1) million, or $(0.47) per diluted common share. This represented an improvement of $5.9 million compared to a net loss available to common shareholders of $(9.0) million, or $(1.38) per diluted common share, for the same period one year ago. There were no preferred dividends during the first nine months of 2008.

Third Quarter Highlights

* Operating profit improved $9.7 million compared to the same quarter one year earlier on lower provisions for loan losses.
* Provision for loan losses decreased $18.3 million to $650,000 during the third quarter of 2009 compared to $19.0 million for the same period one year ago. Net charge-offs of $1.7 million were at the lowest level in six quarters.
* The allowance for credit losses at September 30, 2009 was 2.95% of gross loans, consistent with 2.96% at June 30, 2009; however it was 14% higher than the level of 2.59% one year earlier. At September 30, 2009 the allowance for credit losses represented coverage of 60.99% of nonperforming loans.
* Nonperforming assets increased to $32.1 million, or 3.84% of total assets, as of September 30, 2009 from $29.4 million, or 3.55% of total assets at June 30, 2009.
* Construction and land development loans together decreased $72.0 million, or 52%, from one year ago, which includes a decrease of $27.6 million, or 67%, in land development loans.
* Capital ratios substantially exceed the regulatory calculation for being “well capitalized” with a Total Risk-Based Capital Ratio of 19.57%, a Tier I Capital Ratio of 15.32%, and a Tier I Leverage Ratio of 12.38%.
* Total assets were $834.8 million as of September 30, 2009, representing a decrease of $20.6 million, or 2%, from $855.4 million on the same date one year ago. This also represents an increase of $5.3 million from $829.3 million in total assets at June 30, 2009.
* Total deposits decreased $46.7 million, or 6%, to $692.1 million as of September 30, 2009 compared to $738.7 million on the same date one year ago and increased slightly over $689.1 million at June 30, 2009.
* Demand deposits and core deposits represented 45.9% and 83.3%, respectively, of total deposits at September 30, 2009.

For the quarter ended September 30, 2009, the Company’s return on average assets and return on average equity were 0.25% and 1.96%, respectively, compared to (4.27)% and (54.48)%, respectively, for the same period in 2008. Return on average assets and return on average equity for the nine months ended September 30, 2009 were 0.00% and 0.04%, respectively, compared to (1.48)% and (17.69)%, respectively, for the same period one year earlier.