Bridge Bancorp, Inc. (NASDAQ:BDGE) Q1 2019 Earnings Conference Call Transcript

Apr 24, 2019 • 10:00 am ET


Bridge Bancorp, Inc. (NASDAQ:BDGE) Q1 2019 Earnings Conference Call Transcript


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Good morning and welcome to the Bridge Bancorp First Quarter 2019 Earnings Call. All participants will be in listen-only mode. (Operator Instructions). After today's presentation, there will be an opportunity to ask questions. (Operator Instructions). Please note this event is being recorded.

I would now like to turn the conference over to Kevin O'Connor, President and CEO. Please go ahead.

Kevin O'Connor

Thank you. Good morning and welcome. Thank you for joining us on our second earnings call and for the positive feedback we received for initiating this method of communication. We were actually on the Road recently speaking to shareholders who expressed their appreciation for the call, and actually, with their advice, we also added some additional disclosure on our press release.

I'm again pleased to be able to provide an overview of our business, our performance and some discussion on strategy.

I'm joined on our call by our CFO, John McCaffery, and between us, we hope to answer your questions regarding the results and general market conditions. The first quarter of each year always goes by fast. It's a mix of finalizing prior year results, dealing with the auditors and other year-end issues, all while trying to track early returns versus the budget and the projections we've established.

We coupled this in 2019 with our first successful exam by our new regulators, the New York State EFS, and the Federal Reserve Bank of New York. Each year comes with different challenges and opportunities and 2019 is no different, and we believe our early results reflects our ability to navigate these and deliver organic growth and strong results.

It's a testament to our ingrained commitment to achieving a banking model, focused on building long-term relationships, protecting our industry-leading core funding and seeking profitable credit-worthy loans.

We strive to be the bank of choice on Long Island for businesses, working in concert with a strong network of accountants, lawyers and insurance professionals, other advisers who recommend and sometimes sell BNB to their clients. We remained focused on credit, cognizant of technology initiatives and aware of the growth potential provided by the continued changes in our competitors' delivery models.

We strive to control core expenses, while still making prudent investments with the goal of continuing to deliver a positive operating leverage. It's a somewhat simple business model, but it's again translating into strong financial returns and a continued expansion of our franchise. I will again ask John to discuss in detail some of the financial items, however, I want to highlight some of the first quarter trends and results.

We delivered record revenues, strong growth in loans and a year-over-year core deposit growth. Most importantly, an increasing net interest margin. This translate into net income of $12.9 million or an EPS of $0.65 a share. Diving a bit deeper during the first quarter, loans grow at a net $115 million or at a 14% annualized rate. This growth included almost $60 million of C&I and owner-occupied real estate loans, the real sweet spot for