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Santa Clara, California - July 15, 2004 - Bridge Bank, National Association (NASDAQ - BBNK), Santa Clara County's newest full-service business bank, today announced financial results for the quarter and six months ended June 30, 2004.

The Bank reported net income of $624,000, or $0.09 per diluted share, in the three months ended June 30, 2004. The second quarter result represented improvement of $346,000, or 125%, compared to net income of $278,000, or $0.04 per diluted share, in the same period one year ago. On a linked-quarter basis, results for the second quarter of 2004 represented improvement of 33% over the first quarter of 2004.

The improvement in net income was after a tax provision of $434,000 for the three months ended June 30, 2004. Results for 2003 did not yet reflect the impact of income taxes. Pre-tax operating income of $1,058,000 for the quarter ended June 30, 2004 represented improvement of $780,000, or 281%, compared to the same quarter in 2003.

Net income for the six months ended June 30, 2004 was $1,090,000, or $0.16 per diluted share, compared to $407,000, or $0.07 per diluted share, in the first six months of 2003. Net income for the first half of 2004 represented an increase of $683,000, or 168%, over the same period of 2003. Pre-tax operating income for the first six months of 2004 was $1,851,000 and represented improvement of $1.4 million, or 355%, over the same period one year earlier.

Return on average assets (ROAA) for the quarter was reported at 0.74%, which compared to 0.54% for the same period in 2003. For the six months ended June 30, 2004 the Bank's ROAA was 0.70%, up from 0.43% in the same period one year earlier.

Return on average equity (ROAE) was reported at 8.14%, which compared to 4.14% for the second quarter of 2003. For the six months ended June 30, 2004 the Bank's ROAE was 7.42%, up from 3.07% in the same period one year earlier.

"We continue to build on the foundation we created during the first three years of Bridge Bank," said Daniel P. Myers, President and Chief Executive Officer of Bridge Bank. "These results show our progress in achieving growth in assets and core revenue while at the same time leveraging our infrastructure and improving efficiency."

Net interest income of $3.7 million for the quarter ended June 30, 2004 represented an increase of approximately $1.4 million, or 57%, over $2.4 million reported for the same quarter one year earlier. For the six months ended June 30, 2004, net interest income of $6.9 million represented growth of $2.4 million, or 54%, over $4.5 million for the first six months of 2003.

Growth in net interest income was attributed to growth in average assets of the Bank. Average total assets of $336.1 million for the second quarter of 2004 represented an increase of $131.0 million, or 64%, over $205.0 million for the same period one year earlier. For the six months ended June 30, 2004 average total assets of $315.6 million represented an increase of $123.5 million, or 64%, over $192.1 million for the first six months of 2003.

The Bank's net interest margin was 4.78% and 4.71%, respectively, for the three and six months ended June 30, 2004, down from 4.92% and 5.00%, respectively, for the second quarter of 2003. The lower net interest margin was attributed to lower balance sheet leverage together with the persistent low level of market interest rates. The interest rate earned on a majority of the Bank's loan portfolio adjusts with the prime rate. As such, based on the nature of the Bank's balance sheet, net interest income should directly benefit over time from increases in the prime rate.

The Bank's loan-to-deposit ratio, a measure of leverage, averaged 74% during the quarter ended June 30, 2004, which represented a decrease from 87% for the same quarter of 2003. For the six months ended June 30, 2004, the Bank's average loan-to-deposit ratio was 75%, compared to 88% in the first half of 2003.

"We are particularly pleased with the Bank's progress in growing net interest income through the recent challenging economic environment," said Thomas A. Sa, Executive Vice President and Chief Financial Officer of Bridge Bank. "The decrease in leverage reflects, to some degree, our continued care in focusing on the quality of loan growth. It also represents capacity that can be used to fund core commercial loan business as the economy improves."

The Bank's non-interest income for the second quarter and six months ended June 30, 2004 was $779,000 and $1,901,000, respectively, compared to $516,000 and $1,110,000, respectively, for the three and six months ended June 30, 2003. Non-interest income is primarily comprised of gains realized on sales of SBA loans, an area in which the Bank continues to be a market leader among independent banks in Northern California.

The Bank provided $369,000 and $774,000, respectively, to the allowance for loan losses for the three and six months ended June 30, 2004, compared to $228,000 and $482,000, respectively, provided in the same periods one year earlier. Non-performing assets were 0.47% of gross loans at June 30, 2004; net of U.S Government guarantees on U. S. Small Business Administration loans, non-performing assets were 0.14% of gross loans. The Bank reported no non-performing assets at June 30, 2003. At June 30, 2004, the allowance represented 1.41% of gross loans compared to 1.40% on the same date one year earlier.

Non-interest expenses were $3.1 million and $6.2 million, respectively, for the three and six months ended June 30, 2004, compared to $2.4 million and $4.7 million, respectively, for the three and six months ended June 30 2003. The increase in non-interest expenses year to date reflects the impact of continued expansion of the business in 2004.

At June 30, 2004, Bridge Bank's total assets were $340.1 million, compared to $226.8 million on the same date one year ago, which represented an increase of $113.3 million or 50%. Growth in total assets was primarily funded by growth in deposits.

The Bank's total deposits increased $108.0 million or 55% to $306.5 million as of June 30, 2004, compared to total deposits of $198.4 million as of June 30, 2003.

The Bank reported total loans outstanding at June 30, 2004 of $233.1 million, which represented an increase of $66.9 million, or 40%, over $166.3 million for the same date last year.

At June 30, 2004, shareholders' equity of the Bank was $30.9 million, up from $27.0 million for the same date one year earlier. The resulting leverage ratio, tier one capital divided by average total assets, was 9.19%, substantially above the regulatory standard of 5.0% for "well-capitalized" institutions.

Bridge Bank specializes in providing superior service and customized banking solutions to small and middle-market businesses. The bank's product offerings include 24/7 internet-based business cash management, on-line account statement and item imaging, commercial lines of credit, construction loans, Small Business Administration 7(a) and 504 loans as an SBA Preferred Lender Participant-accredited direct lender, and factoring and asset-based loans through its Bridge Capital Finance Group.

Bridge Bank recently opened a full service regional banking office in downtown San Jose, a regional Small Business Administration loan production office in San Diego to serve the Southern California small business market, and announced the opening of a loan production office in Fresno to serve the Central Valley small business market. It also has received the prestigious 5-Star rating from BauerFinacial Incorporated, that independent rating firm's highest quality rating for financial institutions.


About Bridge Bank, N.A.
Bridge Bank is Santa Clara County's newest full-service business bank. The Bank is dedicated to meeting the financial needs of small and middle-market businesses in the Silicon Valley, Palo Alto, Sacramento, San Diego, and Fresno business communities. Bridge Bank provides clients with a comprehensive package of business banking solutions delivered through experienced and professional bankers. Visit Bridge Bank on the Web at www.bridgebank.com.