Investor Presentation February 5-7, 2018 Forward Looking Statements - - PowerPoint PPT Presentation

Investor Presentation February 5-7, 2018

Forward Looking Statements

This presentation may contain forward-looking statements regarding Bridge Bancorp, Inc. (“Bridge Bancorp” or the “Company”). These statements constitute forward-looking information within the definition of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, in addition to historical information, involve risk and uncertainties, and are based on the beliefs, assumptions and expectations of management of the Company. Words such as “expects,” “believes,” “should,” “plans,” “anticipates,” “will,” “potential,” “could,” “intend,” “may,” “outlook,” “predict,” “project,” “would,” “estimated,” “assumes,” “likely,” and variations

• f such similar expressions are intended to identify such forward-looking statements. Examples of forward-looking statements include,

but are not limited to, possible or assumed estimates with respect to the financial condition, expected or anticipated revenue, and results

• f operations and business of the Company, including earnings growth; revenue growth in retail banking lending and other areas;
• rigination volume in the consumer, commercial and other lending businesses; current and future capital management programs; non-

interest income levels, including fees from the title abstract subsidiary and banking services as well as product sales; tangible capital generation; market share; expense levels; and other business operations and strategies. For this presentation, the Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA. Factors that could cause future results to vary from current management expectations include, but are not limited to, changing economic conditions; legislative and regulatory changes, including increases in FDIC insurance rates; monetary and fiscal policies of the federal government; changes in tax policies; rates and regulations of federal, state and local tax authorities; changes in interest rates; deposit flows; the cost of funds; demands for loan products; demand for financial services; competition; changes in the quality and composition

• f the Bank’s loan and investment portfolios; changes in management’s business strategies; changes in accounting principles, policies or

guidelines; changes in real estate values; an unexpected increase in operating costs; expanded regulatory requirements as a result of the Dodd-Frank Act; and other risk factors discussed elsewhere, and in our reports filed with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this report, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

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To Be the Preeminent Community Bank in Our Markets, Providing Added Value and Superior Customer Service. Mission Statement

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Investment Thesis/Rationale

Unique Franchise in attractive markets

$4.4 billion community bank operating in 45 locations $1 trillion+ deposit marketplace with above-average household income

Strong Core Funding: 40% Demand Deposits

14% Annual Retail Deposit Growth 0.37% Cost of Funds 93% Loan-to-Deposit ratio

Well Positioned for Higher Rates

Active Management of IRR

Thoughtful Strategic Vision

Disciplined M&A + Strong Organic Growth

Careful Stewards of Capital

6.0% Insider Ownership $0.63 of growth in 1-year TBV/share to $16.14

Experienced Management Team

SVP & Above with Average 20+ years of experience

• Market Cap:

$666 million(1)

• Branches:

45(2)

• FTE:

480

Profile - Current Franchise

• Assets:

$4.4 billion

• Loans:

$3.1 billion

• Deposits:

$3.3 billion

(1) As of February 1, 2018, Stock Price of $33.80/share and 19.7M common shares outstanding. (2) As of February 16, 2018, franchise will consist of 39 branches as a result of 6 previously announced branch

closures.

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Net Interest Income $33.6 million Net Interest Margin 3.36% Loans of $3.1 billion $181 million or 25% Annualized Growth Deposits of $3.3 billion $131 million or 16% Annualized Growth 40% Demand Deposits Net Loss of $6.9 million or $.35 Per Diluted Share

Charge of $7.6 million related to change in net deferred tax asset value as a result of the Tax Act Charge of $5.2 million related to restructuring costs Quarterly Net Income of $5.9 million excluding Tax Act and restructuring cost impact

Continued to Create Value to Shareholders (Tangible Book Value)

Q4 2017 - Summary

+ $.63 to $16.14 compared to 12/31/16

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2017 Recap

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Loans Deposits Net Interest Income Non-Interest Income Non-interest expense Credit Capital

Target Actual

• 13% - 15% growth
• ~$400 million increase
• 19% growth
• $502 million increase
• 13% - 15% growth
• ~$400 million increase
• 14% growth
• $409 million increase
• 8% - 10% growth
• ~$130 million total
• 5% growth
• $127 million total
• 7% - 9% growth
• ~$17 million total
• 13% growth
• $18.1 million total
• ~$84 million total
• $83.7 million total1
• Provision of $4.4 million
• Allowance/Total Loans of

1.01%

• Provision of $14.1 million
• Allowance/Total Loans of

1.02%

• Tier 1 Bank Leverage Ratio
• f 9.68%
• Tier 1 Bank Leverage Ratio
• f 9.58%

(1) Excludes $8.0 million in restructuring costs

2018 Outlook

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9% - 11%

• Grow Loans ~$310 million through a combination of current
• fferings

Ratio Target Comments

13% - 15%

• Grow Deposits ~$470 million through organic DDA and MMA

expansion as well as new deposit initiatives 90% - 95%

• Balance growth of lending through deposit activity
• Consistently favorable loans to deposits ratio relative to peers

3.18% - 3.23%

• Continued NIM compression expected
• Budgeted 2 Yr. - 10 Yr. Treasury spread of 0.39% at December

2018 5% - 7%

• Led by continued growth of swap, gain on sale of SBA loans and

title fee income 23%

• Reinvestment of tax savings back into company by raising

minimum wage to $15/hr., effectively providing raises to 20% of BNB Bank workforce. $85 - $88 million

• Continued improvement of expenses to assets
• Target 1.85%

Measure Target Comments

Loan Growth Deposit Growth Loans to Deposits Net Interest Margin Non-Interest Income Effective Tax Rate Non-Interest Expense

2018 Outlook

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• Enhanced portfolio analysis as a result of Q4 2017 results
• Reorganization of business lines based on customers vs. geography
• Underwriting function centralized under newly created Chief

Credit Officer role

• Centralized review of contractors
• Total Exposure of $24.6 million at December 31, 2017
• 0.79% of Total Loans
• Reserves of $2.4 million

Theme Comments

• Well-positioned for higher rates through active management of IRR
• Deposit initiatives aligned with rising rate environment
• Multi-Family loan pricing rationalization
• Savings from branch closures
• Rationalization of compliance costs
• Increase Avg. Assets/Avg. FTE 14% to $9.8 million

Credit Taxi Medallions Deposit & Loan Pricing Expense Control

Conservative Deposit Pricing Model

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0.24% 0.26% 0.29% 0.32% 0.36% 0.37%

0.50% 0.75% 1.00% 1.25% 1.25% 1.50% 0.24% 0.32% 0.40% 0.48% 0.48% 0.56% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

Funding Beta Analysis (β)

Cost of Deposits (Actual) Fed Funds Target Cost of Deposits (using Deposit Betas)

Actual β: 13%

Exposure to Interest Rate Risk

11 Interest Rate Risk 12/31/2017 9/30/2017 12/31/2016

Earnings at Risk (Max.) Pct (%) Change in Net Interest Income with +200 bps ramp (12 Mths) Year 1 NII (% Change from Year 1 – Base)

• 3.5%
• 4.8%
• 6.5%

Up 200 BP Year 2 NII (% Change from Year 1 – Base) 2.4% 0.1%

• 6.1%

Up 200 BP

2017 Loan Growth Trend

C&I 25% Land & Construction 8% Consumer 1% Commercial Real Estate 18% Multi-Family 14% Residential 34%

4th Quarter

C&I 21% Land & Construction 6% Consumer 1% Commercial Real Estate 40% Multi-Family 15% Residential 17%

Full Year

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$181 million growth in Q4 2017 $502 million growth for the full year 2017

Significant traction in Residential and C&I markets heading into 2018

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Taxi Medallions

$20,000 $22,000 $24,000 $26,000 $28,000 $30,000 $32,000 $34,000 2014 2015 2016 2017

Outstanding ($000)

2016 - $5 million relationship paid off 2017 - $650K Charge Off All Medallion loans save one are paying as agreed Heightened monitoring of financial health of guarantors – Annual Personal Financial Statements (PFS) Only 1 individual owner/operator medallion - $229K All loans amortizing Paydowns of $50K - $300K made as loans renew – Designated as TDRs Total of 52 medallions

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$24,640 $345 $4,081 $8,169 $3,479 $3,131 $3,164 $2,271 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Outstanding as

• f Dec 2017

<$300K per Medallion Strong Liquidity Strong Net Worth Moderate Liquidity Other Assets Allocated Reserves Residual

Alternate Sources of Repayment ($000)

Personal Guarantees:

• Strong Liquidity – PFS shows liquidity at > 5x

collateral shortfall

• Strong Net Worth – PFS shows net worth at > 10x

collateral shortfall

• Moderate Liquidity - PFS shows liquidity at > 1x

collateral shortfall

Taxi Medallions

BNB has loans on

• ther assets of

Medallion Owner

Tangible Common Equity

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6.24% 6.75% 6.72% 7.51% 8.04% 7.89% 7.93% 7.37% 7.48% 7.45% 7.48% 7.50% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Plan Q1 2018 Plan Q2 2018 Plan Q3 2018 Plan Q4 2018

Summary

Strong & Consistent Financial Performance

Solid trend despite noisy 4Q 2017

Outstanding Asset Quality and Balance Sheet Flexibility Superior Franchise Growth with Compelling Opportunities Well-Positioned in Economically Attractive Markets Experienced Management Team and Board of Directors Clear Understanding of Risks, Opportunities and Challenges

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Appendix

BDGE Market Cap & Liquidity

Source: SNL Financial LC

Share prices presented are as of the respective year/quarter ends

$- $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q4 2017

TANGIBLE BOOK VALUE ($/share) MARKET CAP

Market Cap (000) Tangible Book Value

$24.00 $20.34 $35.00

Share Price 18

17% 8% 22% 11% 10% 38% 20% 30% 14%

0% 10% 20% 30% 40% Median FFIC LBAI DCOM KRNY BDGE CNOB FLIC NFBK

Noninterest Demand/ Deposits

24% 31% 16% 23% 42% 7% 30% 11% 25%

0% 10% 20% 30% 40% 50% Median FFIC LBAI DCOM KRNY BDGE CNOB FLIC NFBK

CDs/ Deposits

4% 5% 4% 4% 7% 3% 4% 3% 3%

0% 1% 2% 3% 4% 5% 6% 7% Median FFIC LBAI DCOM KRNY BDGE CNOB FLIC NFBK

Jumbo CDs/ Deposits (%)

108% 114% 94% 131% 106% 91% 110% 99% 113%

0% 20% 40% 60% 80% 100% 120% 140% Median FFIC LBAI DCOM KRNY BDGE CNOB FLIC NFBK

Loans/ Deposits

61 91 36 82 78 32 65 43 58

20 40 60 80 100 Median FFIC LBAI DCOM KRNY BDGE CNOB FLIC NFBK

Cost of Deposits (bps)

$77 $214 $79 $172 $74 $72 $164 $60 $71

$0 $50 $100 $150 $200 $250 Median FFIC LBAI DCOM KRNY BDGE CNOB FLIC NFBK

Avg Branch Size*

KEY

FFIC - Flushing Financial Corporation KRNY - Kearny Financial Corp. FLIC - First of Long Island Corporation LBAI - Lakeland Bancorp, Inc. BDGE – Bridge Bancorp, Inc. NFBK - Northfield Bancorp, Inc. DCOM - Dime Community Bancshares CNOB - ConnectOne Bancorp, Inc.

NYC MSA Deposit Analysis

Source: SNL Financial. Data as of Q3 2017 unless otherwise specified

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*Branch data as of Q2 2017

IRR Strategies

($ in 000’s)

2014 2015 2016 Q4 2017

Macro Swaps $75,000 $125,000 $175,000 $290,000 Loan Swaps $11,175 $ 56,328 $ 62,472 $147,967 O/N Borrowings as percent of assets (avg.) 6.09% 5.52% 6.85% 6.65% Portfolio E-DUR 3.99 years 4.45 years 3.73 years 3.23 years

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Quarterly Net Interest Margin

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(1) See Appendix for a reconciliation of NIM as reported (GAAP) to Adj. NIM (non-GAAP) financial measure.

Diversified Loan Composition

Commercial Mortgages: Non-Owner Occupied 25% Commercial Mortgages: Owner Occupied 19% Multi-Family 16% Equity Loans 5% Residential Mortgages 7% Land & Construction Loans 5% Commercial Loans 22% Consumer Loans 1%

As of December 31, 2014

$3.1 Billion in Total Loans as of December 31, 2017 with a YTD Average Yield of 4.57% 22

As of December 31, 2017

Commercial Mortgages: Non-Owner Occupied 26% Commercial Mortgages: Owner Occupied 17% Multi-Family 19% Equity Loans 2 % Residential Mortgages 13% Land & Construction Loans 3% Commercial Loans 19% Consumer Loans 1%

Asset Quality Ratios

*Annualized

ALLL/Total Loans Past Due & NPLs/Total Loans NPLs/Total Loans YTD Net Loan Losses/ Avg Total Loans* ALLL/NPLs Historical 12/31/2016 1.00% 0.17% 0.05% 0.02% 2087% 03/31/2017 1.00% 0.26% 0.05% 0.01% 2118% 06/30/2017 0.99% 0.36% 0.10% 0.01% 1029% 09/30/2017 1.00% 0.47% 0.26% 0.01% 393% 12/31/2017 1.02% 0.40% 0.22% 0.30% 456% 9/30/2017 Peer Group 0.87% 0.48% 0.60%

• 0. 02%

147%

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Conservative Securities Portfolio

$940 Million in Securities Exceptional Credit Quality with 80% Guaranteed by the U.S. Government Effective Portfolio Duration is 3.23 Years

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Agency CMO's 47% MBS 24% Agencies 6% Munis 16% Corporate; Others 7%

December 31, 2017

Deposit Profile

Certificates of Deposit 7% Savings & NOW 18% Money Market 35% Demand Deposits 40%

As of December 31, 2017

$3.3 billion in Deposits, Average Cost of 37 bps 10 Year Annualized Growth of 21% Branch Managers Well Known in The Community Lowest Cost of Funds of Peers

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Capital Overview

• Tier1 Leverage ratio at the Bank reflects $80 million in sub-debt contributed to

the Bank

• Above Board adopted minimum standards & well-capitalized regulatory capital

standards

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Tier 1 Leverage Tier 1 RBC TRBC 12/31/2015 9.1% 11.9% 12.7% 12/31/2016 9.9% 13.1% 14.0% 12/31/2017 9.6% 12.1% 13.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

Bank Level

Tier 1 Leverage Tier 1 RBC TRBC 12/31/2015 7.6% 9.9% 13.6% 12/31/2016 8.6% 11.4% 15.0% 12/31/2017 7.9% 10.0% 13.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

Holding Company Level

Reconciliation of GAAP to Non-GAAP Adjustment - NIM

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BRIDGE BANCORP, INC. AND SUBSIDIARIES Non-GAAP Financial Measures (unaudited)

• Dec. 31,
• Sept. 30,
• Dec. 31,
• Dec. 31,
• Dec. 31,

(Dollars in thousands) 2017 2017 2016 2017 2016 Net interest income - as reported $ 33,561 $ 32,345 $ 30,165 $ 127,160 $ 120,871 Tax equivalent adjustment 337 339 344 1,371 1,330 Net interest income, tax-equivalent basis (non-GAAP) $ 33,898 $ 32,684 $ 30,509 $ 128,531 $ 122,201 Adjustment: Less: Accretion income on acquired loans (2,072) (1,738) (2,579) (7,558) (9,050) Adjusted net interest income, tax-equivalent basis (non-GAAP) $ 31,826 $ 30,946 $ 27,930 $ 120,973 $ 113,151 Average interest earning assets - as reported $ 4,003,876 $ 3,894,829 $ 3,562,519 $ 3,847,009 $ 3,508,429 Adjustment: Average purchase accounting adjustments on acquired loans 14,309 16,077 21,828 16,716 24,792 Adjusted average interest earning assets (non-GAAP) $ 4,018,185 $ 3,910,906 $ 3,584,347 $ 3,863,725 $ 3,533,221 Net interest margin - as reported (1) 3.33% 3.29% 3.37% 3.31% 3.45% Tax equivalent adjustment 0.03% 0.04% 0.04% 0.03% 0.03% Net interest margin, tax-equivalent basis (non-GAAP) (2) 3.36% 3.33% 3.41% 3.34% 3.48% Adjustment: Purchase accounting adjustments on acquired loans (0.22)% (0.19)% (0.32)% (0.21)% (0.28)% Adjusted net interest margin (non-GAAP) (3) 3.14% 3.14% 3.09% 3.13% 3.20% The following table reconciles net interest margin (as reported) to adjusted net interest margin on a tax equivalent basis, excluding accretion income and average purchase accounting adjustments on acquired loans (non-GAAP) : (3) Adjusted net interest margin represents adjusted net interest income, tax equivalent basis divided by adjusted average interest earning assets. Three Months Ended Year Ended (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.