Return to Index

San Jose, CA - October 20, 2004 - Bridge Capital Holdings (NASDAQ: BBNK), whose sole subsidiary is Bridge Bank, National Association, Santa Clara County's newest full-service business bank, today announced financial results for the quarter and nine months ended September 30, 2004.

The Company reported net income of $817,000, or $0.12 per diluted share, in the three months ended September 30, 2004. The third quarter result represented improvement of $344,000, or 73%, compared to net income of $473,000, or $0.07 per diluted share, in the same period one year ago.

The improvement in net income was after a tax provision of $568,000 for the three months ended September 30, 2004. Results for the quarter ended September 30, 2003 did not yet reflect the impact of income taxes. Pre-tax income of $1,385,000 for the quarter ended September 30, 2004 represented improvement of  $912,000, or 193%, compared to the same quarter in 2003.

Net income for the nine months ended September 30, 2004 was $1,907,000, or $0.29 per diluted share, compared to $880,000, or $0.14 per diluted share, in the first nine months of 2003. Net income for the first nine months of 2004 represented an increase of $1,027,000, or 117%, over the same period of 2003. Pre-tax income for the first nine months of 2004 was $3,236,000 and represented improvement of $2.4 million, or 268% over the same period one year earlier.

Return on average assets (ROAA) for the quarter was reported at 0.94%, which compared to 0.82% for the same period in 2003. For the nine months ended September 30, 2004 the Bank's ROAA was 0.78%, up from 0.57%, in the same period one year earlier.

Return on average equity (ROAE) was reported at 10.45%, which compared to 6.96% for the third quarter of 2003. For the nine months ended September 30, 2004 the Bank's ROAE was 8.45%, up from 4.37% in the same period one year earlier.

"We are very pleased with the third quarter results and the significant improvement in profitability," said Daniel P. Myers, President and Chief Executive Officer of Bridge Capital Holdings and Bridge Bank. "Over the past year, Bridge Bank achieved significant growth in assets, core revenue, and operating efficiency. We will continue to expand the business and build on the strong foundation established in our first three years of operation."

At September 30, 2004, total assets of the Company were $384.6 million, compared to $245.3 million on the same date one year ago, which represented an increase of $139.3 million, or 57%. Growth in total assets was primarily funded by growth in deposits.

The Company's total deposits increased $133.1 million, or 62%, to $348.9 million as of September 30, 2004, compared to total deposits of $215.8 million as of September 30, 2003.

The Company reported total loans outstanding at September 30, 2004 of $280.3 million, which represented an increase of $110.6 million, or 65%, over $169.6 million for the same date last year.

Net interest income of $4.5 million for the quarter ended September 30, 2004 represented an increase of approximately $1.8 million, or 70%, over $2.6 million reported for the same quarter one year earlier. For the nine months ended September 30, 2004, net interest income of $11.4 million represented growth of $4.3 million, or 60%, over $7.1 million in the first nine months of 2003.

Growth in net interest income was attributed to growth in average assets of the Company. Average total assets of $348.6 million for the third quarter of 2004 represented an increase of $117.6 million, or 51%, over $231.0 million for the same period one year earlier. For the nine months ended September 30, 2004 average total assets of $326.7 million represented an increase of $121.5 million, or 59%, over $205.2 million for the first nine months of 2003.

The Company's net interest margin improved to 5.56% and 4.99%, respectively, for the three and nine months ended September 30, 2004, compared to 4.83% and 4.89%, respectively, for the same periods in 2003. For the third quarter of 2004, the improvement in net interest margin, compared to the same period a year earlier, was primarily attributed to higher balance sheet leverage together with increases in short-term interest rates during the third quarter of 2004. For the year-to- date, the improvement in 2004 was attributed to improvement in the mix of average earning assets together with the impact of increases in short-term 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 Company's balance sheet, net interest income should directly benefit over time from increases in the prime rate.

The Company's loan to deposit ratio, a measure of leverage, averaged 84% during the quarter ended September 30, 2004, which represented an increase over 82% for the same quarter of 2003. For the nine months ended September 30, 2004, the Company's average loan to deposit ratio was 78%, compared to 86% in the same period of 2003.

The Company's non-interest income for the third quarter and nine months ended September 30, 2004 was $834,000 and $2,734,000, respectively, compared to $749,000 and $1,859,000, respectively, for the three and nine months ended September 30, 2003. Non-interest income is primarily comprised of gains realized on sales of SBA loans, an area in which the Company continues to be a market leader among independent banks in Northern California. In September 2004, Bridge Bank achieved California Statewide Preferred Lender Participant status with the U.S. Small Business Administration.

The Company provided $611,000 and $1,385,000, respectively, to the allowance for loan losses for the three and nine months ended September 30, 2004, compared to $82,000 and $564,000, respectively, provided in the same periods one year earlier. Non-performing assets were 0.39% of gross loans at September 30, 2004. The Company reported no non-performing assets at September 30, 2003. At September 30, 2004, the allowance represented 1.40% of gross loans compared to 1.42% on the same date one year earlier.

Non-interest expenses were $3.3 million and $9.5 million for the three and nine months ended September 30, 2004, compared to $2.8 million and $7.5 million, respectively, for the three and nine months ended September 30, 2003. The increase in non-interest expenses year-to-date reflects the impact of continued expansion of the business. The Bank's efficiency ratio was 62.4% for the quarter ended September 30, 2004, an improvement of 25.3% over the 83.6% efficiency ratio for the quarter one year ago.

"The third quarter results reflect our focus on growing revenue while continuing to invest in the infrastructure of the Company to capitalize on opportunities," said Thomas A. Sa, Executive Vice President and Chief Financial Officer of Bridge Capital Holdings and Bridge Bank. "For the first nine months of 2004, revenue has grown 57% over the same period last year while non-interest expenses increased 26%. In the third quarter, revenue also grew 57% while non-interest expenses increased by only 17%."

At September 30, 2004, shareholders' equity of the Company was $31.9 million, up from $27.5 million for the same date one year earlier. The resulting leverage ratio, tier one capital divided by average total assets, was 9.13%, substantially above the regulatory standard of 5.0% for "well-capitalized" institutions.

About Bridge Capital Holdings

Bridge Capital Holdings is the holding company for Bridge Bank, National Association. Bridge Capital Holdings was formed on October 1, 2004 and is listed on The NASDAQ Stock Market under the trading symbol BBNK. Visit Bridge Capital Holdings on the web at www.bridgebankcapitalholdings.com.

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, and emerging technology 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.

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; and (7) future credit loss experience.

To print or save a pdf version of this press release please click here to download

You need Acrobat Reader to view these pdf files. Download a free version Here.

To save a .pdf file for off-line viewing, please right click on a link, and choose:

'Save Link As' in Netscape
'Save Target As' in Internet Explorer