BUSINESS COMBINATIONS

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

BUSINESS COMBINATIONS

14. BUSINESS COMBINATIONS

On December 14, 2014, the Company, the Bank and Community National Bank entered into an Agreement and Plan of Merger (the “merger agreement’) pursuant to which Bridge Bancorp. would acquire, in an all stock merger, CNB through the merger of CNB with and into The Bridgehampton National Bank (the “merger”). The CNB transaction closed on June 19, 2015 resulting in the addition of total acquired assets on a fair value basis of $900.1 million, with loans of $736.3 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 our 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.

Under the terms of the merger agreement, the Company acquired CNB at a purchase price of $157.5 million and 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 $85.5 million which is not deductible for tax purposes. In connection with the transaction, the Company also recorded an intangible asset of $2.2 million which represents a Non-Competition Agreement between the Company and a former executive of CNB.

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 six month period ended June 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:

(In thousands)	June 19, 2015
Cash and due from banks	$	24,628
Securities		90,109
Loans		736,348
Bank Owned Life Insurance		21,445
Premises and equipment		6,398
Other intangible assets		6,698
Other assets		14,484
Total Assets Acquired	$	900,110
Deposits	$	786,853
Federal Home Loan Bank term advances		35,581
Other liabilities and accrued expenses		5,647
Total Liabilities Assumed	$	828,081
Net Assets Acquired		72,029
Consideration Paid		157,503
Goodwill Recorded on Acquisition	$	85,474

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 six months ended June 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 $8.4 million were excluded from pro forma non-interest expenses for the six months ended June 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 Six Months
	Ended June 30,
(In thousands, except per share amounts)	2015		2014
Net interest income		$54,946		$48,590
Net income		$13,447		$6,839
Basic earnings per share		$0.77		$0.40
Diluted earnings per share		$0.77		$0.40