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BUSINESS COMBINATIONS
 9 Months Ended
Sep. 30, 2015
Business Combinations [Abstract]  
BUSINESS COMBINATIONS

14. BUSINESS COMBINATIONS

 

On June 19, 2015, the Company acquired Community National Bank (“CNB”) at a purchase price of $157.5 million, issued an aggregate of 5.647 million Bridge Bancorp common shares in exchange for all the issued and outstanding common stock of CNB and recorded goodwill of $86.0 million, which is not deductible for tax purposes. At acquisition, CNB had total acquired assets on a fair value basis of $899.5 million, with loans of $735.6 million, investment securities of $90.1 million and deposits of $786.9 million. The transaction expanded the Company’s geographic footprint across Long Island including Nassau County, Queens and into New York City. It complements the Bank’s existing branch network and enhances asset generation capabilities. The expanded branch network allows the Bank to serve a greater portion of the Long Island and metropolitan marketplace through a network of 40 branches.

 

The acquisition was accounted for under the acquisition method of accounting in accordance with FASB ASC 805, “Business Combinations.” Accordingly, the assets acquired and liabilities assumed were recorded at their respective acquisition date fair values, and identifiable intangible assets were recorded at fair value. The operating results of the Company for the nine month period ended September 30, 2015 includes the operating results of CNB since the acquisition date of June 19, 2015.

 

The following summarizes the preliminary fair value of the assets acquired and liabilities assumed on June 19, 2015:

 

          Measurement        
    As Initially     Period        
(In thousands)   Reported     Adjustments     As Adjusted  
Cash and due from banks   $ 24,628     $ —     $ 24,628  
Securities     90,109       —       90,109  
Loans     736,348       (768 )     735,580  
Bank Owned Life Insurance     21,445       —       21,445  
Premises and equipment     6,398       —       6,398  
Other intangible assets     6,698       —       6,698  
Other assets     14,484       161       14,645  
Total Assets Acquired   $ 900,110     $ (607 )   $ 899,503  
                         
Deposits   $ 786,853     $ —     $ 786,853  
Federal Home Loan Bank term advances     35,581       —       35,581  
Other liabilities and accrued expenses     5,647       (59 )     5,588  
Total Liabilities Assumed   $ 828,081     $ (59 )   $ 828,022  
                         
Net Assets Acquired     72,029       (548 )     71,481  
Consideration Paid     157,503       —       157,503  
Goodwill Recorded on Acquisition   $ 85,474     $ 548     $ 86,022  

 

Considering the closing date of the transaction, the above fair values and accruals for acquisition costs are preliminary and subject to adjustment as fair value assessments and estimated acquisition costs are finalized. In accordance with FASB ASC 805-10 (Subtopic 25-15), the Company has up to one year from date of acquisition to complete this assessment.

 

The following table presents selected unaudited pro forma financial information reflecting the Merger assuming it was completed as of January 1, 2015 and January 1, 2014. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the Merger actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full fiscal year period.

 

The unaudited pro forma information, for the nine months ended September 30, 2015 and 2014, set forth below reflects the adjustments related to estimated amortization and accretion of purchase accounting fair value adjustments related to interest income on loans and investments, interest expense on time deposits and borrowings, unfavorable leases, SBA loan servicing rights, and core deposit and other intangibles. In the table below, merger-related expenses of $11.3 million were excluded from pro forma non-interest expenses for the nine months ended September 30, 2015. Additionally, the unaudited pro forma information does not reflect management’s estimate of any revenue enhancement opportunities or anticipated cost savings:

  

    Pro Forma for the Nine Months  
    Ended September 30,  
(In thousands, except per share amounts)   2015     2014  
Net interest income   $ 92,134     $ 74,576  
                 
Net income   $ 24,730     $ 13,101  
                 
Basic earnings per share   $ 1.42     $ 0.77  
                 
Diluted earnings per share   $ 1.42     $ 0.77