 BRIDGEHAMPTON, N.Y., July 28, 2020 GLOBE NEWSWIRE -- Bridge Bancorp, Inc. NASDAQ: BDGE the Company, the parent company of BNB Bank BNB, today announced second quarter results for 2020.The Companys second quarter 2020 financial results included: Net income for the 2020 second quarter of 10.7 million, or 0.54 per diluted share. Adjusted pre-tax pre-provision net revenue was 20.9 million, an increase of 3.9 million over both the 2020 first quarter and 2019 second quarter. Net interest income for the 2020 second quarter increased 4.9 million over the 2019 second quarter to 40.4 million, with a tax-equivalent net interest margin of 3.00. Total assets of 6.2 billion at June 30, 2020, 30 higher than June 30, 2019. Loan growth of 1.2 billion, or 35, compared to June 30, 2019, and 940.5 million, or 51 annualized, from December 31, 2019. Loan and line of credit originations of 1.1 billion for the second quarter of 2020, inclusive of 950 million Paycheck Protection Program PPP loans. Non-public, non-brokered deposit growth of 841.8 million, or 27, compared to June 30, 2019, and 954.4 million, or 63 annualized, from December 31, 2019. Non-performing assets of 7.7 million at June 30, 2020, 2.2 million higher than June 30, 2019 and 3.4 million higher than December 31, 2019. Allowance for credit losses coverage to total loans of 0.94 at June 30, 2020. The provision of 4.5 million included approximately 3.5 million related to our estimate of the economic impact of the COVID-19 pandemic. Additionally, we recorded a 2.6 million charge related to our one loan held for sale. All capital ratios remain strong. Declared a dividend of 0.24 during the quarter.Reflecting on the second quarter results, Kevin OConnor, President and CEO said, The second quarter of 2020 was an unprecedented time for our country, our industry, our customers and our employees. I am proud that our employees rallied to support our customers on several fronts. First, our branches remained open, while adopting measures to protect customers and employees alike. Second, in one capacity or another, the entire bank was involved with processing over 5,000 applications, resulting in almost 1 billion in Paycheck Protection Program loans for our existing customers and the one thousand new customers who came to us because of BNBs reputation for superior customer service. This program also generated approximately 30 million in fees which will flow into income over the life of the loans. Another milestone event that occurred is our planned merger-of-equals with Dime Community. We consider this a unique opportunity to capture incremental share in a market where we have low penetration by doing what BNB does best acquiring and retaining business banking customers. This merger of complementary business models and geographies allows BNB and Dime Community to optimize best-in-class practices, consolidate vendor relationships to reduce expenses and expand our product offerings.Net Earnings and Returns Net income in the 2020 second quarter was 10.7 million, or 0.54 per diluted share, which was comparable with the 2019 second quarter, driven primarily by higher net interest income, partially offset by lower non-interest income, higher provision for credit losses, and higher non-interest expense. Net income for the six months ended June 30, 2020 was 20.0 million, or 1.00 per diluted share, compared to 23.6 million, or 1.18 per diluted share, in 2019.Returns on average assets and equity in the 2020 second quarter were 0.72 and 8.56, respectively. Return on average tangible common equity was 10.95 for the 2020 second quarter.Our reported net income of 0.54 per diluted share was impacted by a higher provision for credit losses primarily related to the COVID-19 pandemic, and a write-down of a loan previously classified as held for sale, which reduced earnings per share by approximately 0.13 and 0.10, respectively. These charges reduced returns on average assets, equity and tangible common equity by approximately 31 basis points, 371 basis points, and 474 basis points, respectively, noted Mr. OConnor. Net Interest Income Interest income was 45.9 million in the 2020 second quarter, an increase of 1.2 million compared to the 2020 first quarter, primarily due to loan portfolio growth from the PPP program, partially offset by lower average yields in loans, securities and deposits with banks. Interest expense was 5.4 million in the 2020 second quarter, a decrease of 2.5 million compared to the 2020 first quarter, primarily due to a decrease in average cost of deposits, partially offset by an increase in average deposits and average borrowings.The tax-equivalent net interest margin in the 2020 second quarter showed a year-over-year decline of 30 basis points to 3.00 in 2020 from 3.30 in 2019. The adjusted net interest margin, excluding PPP loans, was down 24 basis points to 3.06 in 2020. Reported 2020 second quarter loan yields showed a year-over-year decrease of 94 basis points from 4.76 in 2019 to 3.82 in 2020, while yields excluding PPP loans decreased 70 basis points to 4.06 in 2020 from 4.76 in 2019. Three Months Ended Change Compared To June 30, March 31, June 30, March 31, June 30, 2020 2020 2019 2020 2019 Average yield on loans, tax-equivalent basis - as reported 3.82 4.354.7653bp94bp Adjusted average yield on loans non-GAAP 4.06 4.35 4.76 29 70 Net interest margin - as reported 1 2.99 3.253.2926bp30bp Net interest margin, tax-equivalent basis 2 3.00 3.26 3.30 26 30 Adjusted net interest margin non-GAAP 3 3.06 3.26 3.30 20 24 ___1 Net interest margin represents net interest income divided by average interest-earning assets. 2 Net interest margin, tax-equivalent basis represents net interest income on a tax-equivalent basis divided by average interest-earning assets. 3 Adjusted net interest margin represents adjusted net interest income on a tax-equivalent basis, excluding PPP loans, divided by adjusted average interest-earning assets, excluding PPP loans.Commenting on the margin Mr. OConnor said, The PPP loans and excess liquidity have had a negative impact on our net interest margin. The all-in yield on PPP loans, including amortization of fees and costs, was about 2.55 in Q2. When the pandemic began, we thought it prudent to bolster our liquidity position. However, the decline in economic activity during the shut-down resulted in more of our customers keeping more money in the bank. The subsequent excess liquidity had the effect of depressing the margin by approximately 20 basis points, stated Mr. OConnor.Provision for Credit Losses The provision for credit loss expense was 4.5 million for the 2020 second quarter, 1.0 million higher than the 2019 second quarter. The higher provision was primarily attributable to higher expected credit losses related to our estimate of the economic impact of the COVID-19 pandemic and an increase in specific reserves. The Company recognized net charge-offs of 0.3 million in the 2020 second quarter, compared to net charge-offs of 4.1 million in the 2019 second quarter, which included a 3.7 million charge-off related to one loan currently held for sale.Non-Interest Income Non-interest income was 2.3 million for the 2020 second quarter, which was 3.2 million lower compared to the 2019 second quarter, primarily attributable to a decrease in fair value of one loan held for sale, lower service charges and other fees, and lower gain on sale of SBA loans, partially offset by an increase in loan swap fees.Non-Interest Expense Non-interest expense for the 2020 second quarter of 24.4 million was 0.4 million higher than the 2019 second quarter. The increase in the second quarter was primarily due to higher salaries and benefits expense. Our operating expenses to average assets dropped by 35 basis points compared to the first quarter.Income Tax Expense Income tax expense was 3.1 million in the 2020 second quarter, an increase of 0.3 million compared to the 2019 second quarter. The Company estimates it will record income tax at an effective tax rate of approximately 22.7 for the remainder of 2020.Balance Sheet Total assets were 6.2 billion at June 30, 2020, 1.2 billion higher than December 31, 2019, and 1.4 billion higher than June 30, 2019. Total loans held for investment at June 30, 2020 of 4.6 billion reflects growth of 1.2 billion, or 35, over June 30, 2019, inclusive of PPP loans totaling 950 million. Net deferred loan fees were 17.3 million at June 30, 2020, inclusive of 26.0 million remaining unamortized net loan fees related to PPP loans. Deposits totaled 5.1 billion at June 30, 2020, an increase of 1.2 billion, or 32, compared to June 30, 2019. Demand deposits increased 778.5 million year-over-year to 2.2 billion at June 30, 2020, representing 43 of total deposits.The allowance for credit losses was 43.4 million at June 30, 2020, 12.2 million higher than June 30, 2019. The allowance as a percentage of loans was 0.94 at June 30, 2020, compared to 0.91 at June 30, 2019. The PPP loans had the effect of decreasing the Companys allowance as a percentage of loans by approximately 22 basis points at June 30, 2020.Stockholders equity was 502.6 million at June 30, 2020, 27.4 million higher than June 30, 2019. The growth reflects earnings, partially offset by shareholders dividends and stock repurchases. During the 2020 first quarter, the Company purchased 179,620 shares of its common stock under the repurchase plan at a cost of 4.6 million. Book value per share was 25.47 at June 30, 2020, 1.51 higher than June 30, 2019. Tangible book value per share was 19. 