Portfolio Update: Bridge Capital Holdings
Bridge Capital Holdings (Nasdaq: BBNK) on April 19 released financial results for its first quarter 2007 ended March 31, 2006.
Net income for the quarter was a record $24 million, or $0.35 per diluted share, an increase of 26% over net income of $1.9 million, or $0.29 per diluted share, in the year ago quarter.
A few key metrics for the quarter include:
- For the first quarter of 2007, return on average assets was 1.44% versus 1.45% for the same period in 2006. Return on average equity for the period was 19.52%, compared with 19.28% in the year-ago period.
- On the balance sheet as of March 31, assets totaled $731.1 million, compared with $566.9 million a year earlier, representing an increase of 29%. Total deposits were $653.4 million, up 33% from $492.4 million a year earlier. Total loans outstanding stood at $575.1 million, representing an increase of 26% over $457.1 million on the same date last year.
Bridge Bank attributes its earnings growth to an increase in net interest income. For the quarter, net interest income was $11.0 million, up 28% from $8.5 million in the year-ago quarter.
We maintain our BUY rating and price target of $26.00, which represents a pricing multiple of 17X the current year analyst earnings estimate of $1.52.
