Bridge Bancorp in Bridgehampton, N.Y., reported higher quarterly earnings following the acquisition of FNBNY Bancorp earlier this year.
Net income in the second quarter rose 33% from a year earlier, to $4.3 million. Earnings per share of 37 cents missed by 3 cents the average estimate of analysts polled by Bloomberg.
The $2.2 billion-asset company reported net interest income of $16.8 million, up 37% from a year earlier. The increase was attributed to the acquisition of the $276 million-asset FNBNY, which was completed in February. The deal helped push loans to $1.2 billion, up 33% from a year earlier. The company reported loan growth of nearly 6% from the first quarter. Additionally, the company's net interest margin was 3.36%, up 13 basis points from a year earlier.
Asset quality remained strong as nonperforming assets declined to $2.9 million, or 0.13% of total assets, the company said in Monday's earnings release.
Noninterest income decreased 7%, to $2.3 million, due to a net security loss, which was partially offset by increases in service fees and title fee income.
Meanwhile, the FNBNY acquisition resulted in a 30% rise in noninterest expenses, to $12.1 million, which included higher salaries because of more staff, investments in new branches, and technology enhancements.
"We recognize today's more complex banking environment requires increased investment in systems, processes, controls and procedures," said Kevin O'Connor, president and chief executive of Bridge Bancorp. "We have broadened our scale, while simultaneously identifying opportunities to enhance efficiencies. Our strategy to quickly assimilate the employees and integrate the operations of FNBNY successfully evidenced these efforts contributing directly to increased profits this quarter."