REGULATORY CAPITAL REQUIREMENTS

12 Months Ended

Dec. 31, 2011

REGULATORY CAPITAL REQUIREMENTS

REGULATORY CAPITAL REQUIREMENTS

13. REGULATORY CAPITAL REQUIREMENTS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital requirements that involve quantitative measures of the Company’s and Bank’s assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classifications also are subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined).  Management believes as of December 31, 2011, the Company and the Bank met all capital adequacy requirements. Since 2009, the Company has actively managed its capital position in response to its growth. During this period, the Company has raised capital through the following initiatives:

·In April 2009, the Company implemented a Dividend Reinvestment Plan (“DRP Plan”) and filed a registration statement on Form S-3 to register 600,000 shares of common stock with the Securities and Exchange Commission (“SEC”) pursuant to the DRP Plan. In April 2010, the Company increased the discount from 3% to 5%, and raised the quarterly optional cash purchase amount to $50,000 under the DRP Plan. Proceeds from the issuance of common stock related to the DRP Plan for the twelve months ended December 31, 2011 and 2010, was $4.6 million and $1.4 million, respectively. Since the inception of the DRP Plan in April 2009 through December 31, 2011, the Company has issued 307,912 shares of common stock and raised $6.3 million in capital.

·In June 2009, the Company filed a shelf registration statement on Form S-3 to register up to $50 million of securities with the SEC.

·In December 2009, the Company completed the private placement of $16.0 million in aggregate liquidation amount of 8.50% cumulative convertible trust preferred securities (the “TPS”), through its subsidiary, Bridge Statutory Capital Trust II. The Debentures may be included in Tier I capital (with certain limitations applicable) under current regulatory guidelines and interpretations.

·On May 27, 2011, the Company issued 273,479 shares of common stock increasing capital by $5.8 million in connection with the acquisition of Hamptons State Bank.

·In November 2011, the Company filed a prospectus supplement under which it may from time to time sell up to $10.0 million of its common stock pursuant to an at-the-market equity offering program. During 2011 the Company issued 30,220 shares of common stock and raised $0.6 million in capital under this program.

·On December 20, 2011, the Company raised $22.9 million in capital, net of offering costs, from the sale of 1,377,000 shares of common stock to selected institutional and other private investors in a registered direct offering.

As of December 31, 2011, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. Since that notification, there are no conditions or events that management believes have changed the institution’s category.

The Company’s and the Bank’s actual capital amounts and ratios are presented in the following table:

Bridge Bancorp, Inc. (Consolidated)
As of December 31,	2011
(Dollars In thousands)
	Actual				For CapitalAdequacyPurposes				To Be WellCapitalized UnderPrompt CorrectiveAction Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Capital (to risk weighted assets)	$	128,226	16.2	%	$	63,228	8.0	%	n/a		n/a
Tier 1 Capital (to risk weighted assets)	118,334		15.0	%	31,614		4.0	%	n/a		n/a
Tier 1 Capital (to average assets)	118,334		9.3	%	51,010		4.0	%	n/a		n/a
As of December 31,					2010
(Dollars In thousands)
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Capital (to risk weighted assets)	$	88,006	13.7	%	$	51,504	8.0	%	n/a		n/a
Tier 1 Capital (to risk weighted assets)	79,953		12.4	%	25,752		4.0	%	n/a		n/a
Tier 1 Capital (to average assets)	79,953		7.9	%	40,667		4.0	%	n/a		n/a
Bridgehampton National Bank
As of December 31,	2011
(Dollars In thousands)
	Actual				For CapitalAdequacyPurposes				To Be WellCapitalized UnderPrompt CorrectiveAction Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Capital (to risk weighted assets)	$	115,383	14.6	%	$	63,213	8.0	%	$	79,016	10.0	%
Tier 1 Capital (to risk weighted assets)	105,494		13.4	%	31,606		4.0	%	47,410		6.0	%
Tier 1 Capital (to average assets)	105,494		8.3	%	51,001		4.0	%	63,751		5.0	%
As of December 31,					2010
(In thousands)	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Capital (to risk weighted assets)	$	85,514	13.3	%	$	51,444	8.0	%	$	64,304	10.0	%
Tier 1 Capital (to risk weighted assets)	77,470		12.1	%	25,722		4.0	%	38,583		6.0	%
Tier 1 Capital (to average assets)	77,470		7.6	%	40,639		4.0	%	50,799		5.0	%