Blue Foundry Bancorp Reports Third Quarter 2024 Results
Blue Foundry Bancorp (NASDAQ:BLFY) reported a net loss of $4.0 million, or $0.19 per diluted share, for Q3 2024, compared to a net loss of $2.3 million in Q2 2024. Key highlights include: deposits increased by $7.5 million to $1.32 billion; interest income rose by $240,000 to $21.5 million; net interest margin decreased 14 basis points to 1.82%. The company maintained strong capital position with tangible book value at $14.74 per share. Credit quality improved with a 17% reduction in non-performing loans. The company repurchased 521,685 shares at an average price of $10.52.
Blue Foundry Bancorp (NASDAQ:BLFY) ha riportato una perdita netta di 4,0 milioni di dollari, o $0,19 per azione su base diluita, per il terzo trimestre del 2024, rispetto a una perdita netta di 2,3 milioni di dollari nel secondo trimestre del 2024. Tra i punti salienti: i depositi sono aumentati di 7,5 milioni di dollari, raggiungendo 1,32 miliardi di dollari; il reddito da interessi è salito di 240.000 dollari, arrivando a 21,5 milioni di dollari; il margine di interesse netto è diminuito di 14 punti base, attestandosi all'1,82%. L'azienda ha mantenuto una robusta posizione di capitale con un valore contabile tangibile di 14,74 dollari per azione. La qualità del credito è migliorata con una riduzione del 17% dei prestiti non performanti. L'azienda ha riacquistato 521.685 azioni a un prezzo medio di 10,52 dollari.
Blue Foundry Bancorp (NASDAQ:BLFY) reportó una pérdida neta de 4,0 millones de dólares, o $0,19 por acción diluida, para el tercer trimestre de 2024, en comparación con una pérdida neta de 2,3 millones de dólares en el segundo trimestre de 2024. Los aspectos destacados incluyen: los depósitos aumentaron en 7,5 millones de dólares a 1,32 mil millones de dólares; los ingresos por intereses crecieron en 240,000 dólares a 21,5 millones de dólares; el margen de interés neto disminuyó 14 puntos básicos al 1,82%. La empresa mantuvo una sólida posición de capital con un valor contable tangible de 14,74 dólares por acción. La calidad del crédito mejoró con una reducción del 17% en los préstamos no productivos. La empresa recompró 521,685 acciones a un precio promedio de 10,52 dólares.
블루 파운드리 은행(Bancorp) (NASDAQ:BLFY)는 2024년 3분기 동안 400만 달러의 순손실, 주당 희석 주식 기준으로 $0.19을 보고했습니다. 이는 2024년 2분기의 230만 달러 순손실과 비교됩니다. 주요 하이라이트는 다음과 같습니다: 예금이 750만 달러 증가하여 13억 2천만 달러에 도달했습니다; 이자 수익이 24만 달러 증가하여 2150만 달러가 되었습니다; 순이자 마진이 14bp 감소하여 1.82%가 되었습니다. 회사는 주당 14.74달러의 유형 자산 가치를 유지했습니다. 신용 품질은 부실 채권이 17% 감소하며 개선되었습니다. 회사는 평균 10.52달러의 가격으로 521,685주를 재매입했습니다.
Blue Foundry Bancorp (NASDAQ:BLFY) a déclaré une perte nette de 4,0 millions de dollars, soit 0,19 dollar par action diluée, pour le troisième trimestre 2024, contre une perte nette de 2,3 millions de dollars au deuxième trimestre 2024. Les principaux points à retenir incluent : les dépôts ont augmenté de 7,5 millions de dollars pour atteindre 1,32 milliard de dollars; les revenus d'intérêts ont augmenté de 240 000 dollars pour atteindre 21,5 millions de dollars; la marge d'intérêt nette a diminué de 14 points de base pour atteindre 1,82 %. L'entreprise a maintenu une solide position en capital avec une valeur comptable tangible de 14,74 dollars par action. La qualité du crédit s'est améliorée avec une réduction de 17 % des prêts non performants. L'entreprise a racheté 521 685 actions à un prix moyen de 10,52 dollars.
Blue Foundry Bancorp (NASDAQ:BLFY) berichtete über einen Nettoverlust von 4,0 Millionen Dollar, oder 0,19 Dollar pro verwässerter Aktie, für das dritte Quartal 2024, im Vergleich zu einem Nettoverlust von 2,3 Millionen Dollar im zweiten Quartal 2024. Zu den wichtigsten Highlights gehören: Einlagen stiegen um 7,5 Millionen Dollar auf 1,32 Milliarden Dollar; Zinseinnahmen stiegen um 240.000 Dollar auf 21,5 Millionen Dollar; die Nettozinsspanne fiel um 14 Basispunkte auf 1,82%. Das Unternehmen hielt eine starke Kapitalposition mit einem buchstäblichen Wert von 14,74 Dollar pro Aktie. Die Kreditqualität verbesserte sich mit einer 17%igen Senkung der notleidenden Kredite. Das Unternehmen kaufte 521.685 Aktien zu einem durchschnittlichen Preis von 10,52 Dollar zurück.
- Deposits increased by $7.5 million to $1.32 billion
- Interest income increased by $240,000 (1.1%) quarter-over-quarter
- 17% improvement in non-performing loans
- Strong capital position with 252.86% allowance coverage of non-performing loans
- Net loss widened to $4.0 million from $2.3 million in previous quarter
- Net interest margin decreased 14 basis points to 1.82%
- Total loans decreased by $9.7 million during first nine months of 2024
- Interest expense increased by $726,000 (6.2%) quarter-over-quarter
Insights
Blue Foundry Bancorp's Q3 2024 results reveal significant challenges, with a net loss of
- Net interest margin contracted to
1.82% , down 14 basis points quarter-over-quarter - Interest expense increased
6.2% while interest income grew only1.1% - Non-performing loans improved but remain significant at
$5.1 million
Despite challenges, positive indicators include deposit growth of
RUTHERFORD, N.J., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Blue Foundry Bancorp (NASDAQ:BLFY) (the “Company”), the holding company for Blue Foundry Bank (the “Bank”), today reported a net loss of
James D. Nesci, President and Chief Executive Officer, commented, “The Company continues to maintain its strong capital position and access to liquidity. We executed on our share repurchase program and increased our tangible book value to
Mr. Nesci also noted, “Deposit growth continued in the third quarter. Increases in our construction and commercial and industrial portfolios drove loan growth during the third quarter as we remain focused on growing our commercial portfolio. Credit quality remained strong highlighted by a
Highlights for the third quarter of 2024:
- Deposits increased
$7.5 million to$1.32 billion compared to the prior quarter. - Uninsured deposits to third-party customers totaled approximately
12% of total deposits as of September 30, 2024. - Interest income for the quarter was
$21.5 million , an increase of$240 thousand , or1.1% , compared to the prior quarter. - Interest expense for the quarter was
$12.4 million , an increase of$726 thousand , or6.2% , compared to the prior quarter. - Net interest margin decreased 14 basis points from the prior quarter to
1.82% . - Provision for credit losses of
$248 thousand was primarily due to the increase in unused lines of credit partially offset by releases of provision for loans of$5 thousand and for securities of$11 thousand . - Book value per share was
$14.76 and tangible book value per share was$14.74 . See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures. - 521,685 shares were repurchased under our share repurchase plans at a weighted average share price of
$10.52 per share.
Loans
The Company continues to focus on diversifying its lending portfolio by growing its commercial portfolios. While total loans decreased by
The details of the loan portfolio are below:
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||
| (In thousands) | |||||||||||||||
| Residential | $ | 516,754 | $ | 526,453 | $ | 540,427 | $ | 550,929 | $ | 567,384 | |||||
| Multifamily | 666,304 | 671,185 | 671,011 | 682,564 | 689,966 | ||||||||||
| Commercial real estate | 241,711 | 241,867 | 244,207 | 232,505 | 236,325 | ||||||||||
| Construction | 80,081 | 71,882 | 63,052 | 60,414 | 45,064 | ||||||||||
| Junior liens | 24,174 | 23,653 | 22,052 | 22,503 | 22,297 | ||||||||||
| Commercial and industrial | 14,228 | 12,261 | 13,372 | 11,768 | 9,904 | ||||||||||
| Consumer and other | 7,731 | 83 | 56 | 47 | 50 | ||||||||||
| Total loans | 1,550,983 | 1,547,384 | 1,554,177 | 1,560,730 | 1,570,990 | ||||||||||
| Less: Allowance for credit losses | 13,012 | 13,027 | 13,749 | 14,154 | 13,872 | ||||||||||
| Loans receivable, net | $ | 1,537,971 | $ | 1,534,357 | $ | 1,540,428 | $ | 1,546,576 | $ | 1,557,118 | |||||
Deposits
As of September 30, 2024, deposits totaled
The details of deposits are below:
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||
| (In thousands) | |||||||||||||||
| Non-interest bearing deposits | $ | 22,254 | $ | 24,733 | $ | 25,342 | $ | 27,739 | $ | 23,787 | |||||
| NOW and demand accounts | 357,503 | 368,386 | 373,172 | 361,139 | 378,268 | ||||||||||
| Savings | 237,651 | 246,559 | 250,298 | 259,402 | 278,665 | ||||||||||
| Core deposits | 617,408 | 639,678 | 648,812 | 648,280 | 680,720 | ||||||||||
| Time deposits | 701,262 | 671,478 | 642,372 | 596,624 | 572,384 | ||||||||||
| Total deposits | $ | 1,318,670 | $ | 1,311,156 | $ | 1,291,184 | $ | 1,244,904 | $ | 1,253,104 | |||||
Financial Performance Overview:
Third quarter of 2024 compared to the second quarter of 2024
Net interest income compared to the second quarter of 2024:
- Net interest income was
$9.1 million for the three months ended September 30, 2024 compared to$9.6 million for the second quarter of 2024 as the increase in interest paid on interest-bearing liabilities outpaced the increase in interest received on interest-earning assets. - Net interest margin decreased by 14 basis points to
1.82% . - The yield on average interest-earning assets decreased five basis points to
4.32% , while the cost of average interest-bearing liabilities increased nine basis points to3.03% . - Average interest-earning assets increased by
$20.9 million and average interest-bearing liabilities increased by$29.3 million .
Non-interest income compared to the second quarter of 2024:
- Non-interest income decreased
$149 thousand primarily due the absence of the gain of$123 thousand on the sale of REO property, which was recorded in the second quarter.
Non-interest expense compared to the second quarter of 2024:
- Non-interest expense increased
$52 thousand primarily driven by increases in professional fees, data processing expense and FDIC insurance premiums of$190 thousand ,$77 thousand and$42 thousand , respectively, partially offset by decreases of$329 thousand in compensation and benefits expenses and$32 thousand in occupancy and equipment.
Income tax expense compared to the second quarter of 2024:
- The Company did not record a tax benefit for the losses incurred during the third quarter of 2024 and the second quarter of 2024 due to the full valuation allowance required on its deferred tax assets.
- The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At September 30, 2024, the valuation allowance on deferred tax assets was
$22.2 million .
Third quarter of 2024 compared to the third quarter of 2023
Net interest income compared to the third quarter of 2023:
- Net interest income was
$9.1 million for the three months ended September 30, 2024 compared to$9.9 million for the same period in 2023. The decrease was largely due to increases in rates paid on interest-bearing liabilities, which outpaced rates received on interest-earning assets. - Net interest margin decreased by 12 basis points to
1.82% . - The yield on average interest-earning assets increased 35 basis points to
4.32% , while the cost of average interest-bearing liabilities increased 54 basis points to3.03% . - Average interest-earning assets decreased by
$32.6 million and average interest-bearing liabilities decreased by$4.1 million . Average FHLB advances decreased by$48.3 million , while average interest-bearing deposits increased by$44.1 million .
Non-interest expense compared to the third quarter of 2023:
- Non-interest expense was
$13.3 million , an increase of$873 thousand driven by increases of$666 thousand ,$167 thousand and$126 thousand in compensation and benefits expenses, professional services and occupancy and equipment expenses, respectively, partially offset by decreases of$61 thousand in data processing and$27 thousand in FDIC insurance premiums.
Income tax expense compared to the third quarter of 2023:
- The Company did not record a tax benefit for the losses incurred during the third quarters of 2024 and 2023 due to the full valuation allowance required on its deferred tax assets.
- The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At September 30, 2024, the valuation allowance on deferred tax assets was
$22.2 million .
Nine Months Ended September 30, 2024 compared to the nine months ended September 30, 2023
Net interest income compared to the nine months ended September 30, 2023:
- Net interest income was
$28.1 million , a decrease of$4.6 million . - Net interest margin decreased 28 basis points to
1.90% . - The yield on average interest-earning assets increased 39 basis points to
4.30% while the cost of average interest-bearing liabilities increased 78 basis points to2.93% . - Average interest-earning assets decreased by
$39.1 million and average interest-bearing deposits increased by$37.0 million . - Average borrowings decreased by
$43.3 million .
Non-interest income compared to the nine months ended September 30, 2023:
- Non-interest income increased
$141 thousand primarily due to the gain on the sale of REO property during the second quarter of 2024.
Non-interest expense compared to the nine months ended September 30, 2023:
- Non-interest expense was
$39.7 million , an increase of$705 thousand . - Compensation and benefits expense increased by
$938 thousand and occupancy and equipment costs increased by$474 thousand . These increases were partially offset by decreases of$475 thousand and$224 thousand for data processing expense and fees for professional services, respectively.
Income tax expense compared to the nine months ended September 30, 2023:
- The Company did not record a tax benefit for the losses incurred during the nine months ended September 30, 2024 and 2023 due to the full valuation allowance required on its deferred tax assets.
- The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At September 30, 2024, the valuation allowance on deferred tax assets was
$22.2 million .
Balance Sheet Summary:
September 30, 2024 compared to December 31, 2023
Cash and cash equivalents:
- Cash and cash equivalents increased
$30.1 million to$76.1 million .
Securities available-for-sale:
- Securities available-for-sale increased
$7.0 million to$290.8 million due to the decrease in unrealized losses of$7.8 million . The favorable impact of the change in the unrealized loss position was partially offset as maturities, calls and paydowns outpaced purchases during the period.
Other investments:
- Other investments decreased
$2.1 million due to a decrease in FHLB stock as a result of a reduction in FHLB borrowings.
Total loans:
- Total loans held for investment decreased
$9.7 million to$1.55 billion . - Residential loans and multifamily loans decreased
$34.2 million and$16.3 million , respectively, partially offset by increases in construction loans of$19.7 million , commercial real estate loans of$9.2 million and consumer loans of$7.7 million to further diversify our loan portfolio. - The Company purchased a consumer loan participation of
$8.0 million and residential loans totaling$7.8 million during the third quarter.
Deposits:
- Deposits totaled
$1.32 billion , an increase of$73.8 million from December 31, 2023. This was largely the result of a$104.6 million increase in certificate of deposits. - Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) represented
46.8% of total deposits, compared to52.1% at December 31, 2023. - Brokered deposits totaled
$125.0 million at both September 30, 2024 and December 31, 2023. - Uninsured and uncollateralized deposits to third-party customers were
$159.6 million , or12% of total deposits, at the end of the third quarter.
Borrowings:
- FHLB borrowings decreased
$49.0 million to$348.5 million as deposit growth outpaced asset growth. - As of September 30, 2024, the Company had
$255.7 million of additional borrowing capacity at the FHLB and$78.2 million of other unsecured lines of credit.
Capital:
- Shareholders’ equity decreased
$16.3 million to$339.3 million . The decrease was primarily driven by the repurchase of shares, including net shares, at a cost of$14.4 million . Additionally, the year-to-date loss, partially offset by favorable changes in accumulated other comprehensive income, also contributed to the decrease. - Tangible equity to tangible assets was
16.50% and tangible common equity per share outstanding was$14.74 . See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures. - The Bank’s capital ratios remain above the FDIC’s “well capitalized” standards.
Asset quality:
- As of September 30, 2024, the allowance for credit losses (“ACL”) on loans as a percentage of gross loans was
0.84% . - The Company recorded a provision for credit losses of
$248 thousand for the third quarter of 2024 and a net release of provision for credit losses of$1.0 million for the nine months ended September 30, 2024. For the third quarter of 2024, there was a provision of$264 thousand in the ACL for off-balance-sheet commitments, offset by a release of$5 thousand in the ACL for loans and$11 thousand in the ACL for held-to-maturity securities. For the nine months ended September 30, 2024, there was a release of$1.1 million in the ACL for loans and$36 thousand in the ACL for held-to-maturity securities, offset by a provision of$94 thousand in the ACL for off-balance-sheet commitments. The release was driven by the impact of the economic forecasts for the key drivers of our loan segments partially offset by an increase in off-balance-sheet commitments. - Non-performing loans totaled
$5.1 million , or0.33% of total loans compared to$5.9 million , or0.38% of total loans at December 31, 2023. - Net charge-offs were
$11 thousand and$36 thousand for the three and nine months ended September 30, 2024, respectively. - Ratio of allowance for credit losses on loans to non-performing loans was
252.86% at September 30, 2024 compared to239.98% at December 31, 2023.
About Blue Foundry
Blue Foundry Bancorp is the holding company for Blue Foundry Bank, a place where things are made, purpose is formed, and ideas are crafted. Headquartered in Rutherford NJ, with a presence in Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Somerset and Union counties, Blue Foundry Bank is a full-service, innovative bank serving the doers, movers, and shakers in our communities. We offer individuals and businesses alike the tailored products and services they need to build their futures. With a rich history dating back more than 145 years, Blue Foundry Bank has a longstanding commitment to its customers and communities. To learn more about Blue Foundry Bank visit BlueFoundryBank.com or call (888) 931-BLUE. Member FDIC.
Conference Call Information
A conference call covering Blue Foundry’s third quarter 2024 earnings announcement will be held today, Wednesday, October 23, 2024 at 11:00 a.m. (EDT). To listen to the live call, please dial 1-833-470-1428 (toll free) or +1-404-975-4839 (international) and use access code 725750. The webcast (audio only) will be available on ir.bluefoundrybank.com. The conference call will be recorded and will be available on the Company’s website for one month.
Contact:
James D. Nesci
President and Chief Executive Officer
BlueFoundryBank.com
jnesci@bluefoundrybank.com
201-972-8900
Forward Looking Statements
Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions.
Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase in the level of defaults, losses and prepayments on loans we have made and make; general economic conditions, either nationally or in our market areas, that are worse than expected; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in our market area; our ability to implement and change our business strategies; competition among depository and other financial institutions; adverse changes in the securities or secondary mortgage markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums; changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; changes in the quality or composition of our loan or investment portfolios; technological changes that may be more difficult or expensive than expected; a failure or breach of our operational or security systems or infrastructure, including cyber-attacks; the inability of third party providers to perform as expected; our ability to manage market risk, credit risk and operational risk in the current economic environment; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related there to; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; our ability to retain key employees; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the ability of the U.S. Government to manage federal debt limits; and changes in the financial condition, results of operations or future prospects of issuers of securities that we own.
Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.
| BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Statements of Financial Condition | ||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | (audited) | |||||||||
| (Dollars in Thousands) | ||||||||||||
| ASSETS | ||||||||||||
| Cash and cash equivalents | $ | 76,109 | $ | 60,262 | $ | 53,753 | $ | 46,025 | ||||
| Securities available-for-sale, at fair value | 290,806 | 297,790 | 265,191 | 283,766 | ||||||||
| Securities held to maturity | 33,119 | 33,169 | 33,217 | 33,254 | ||||||||
| Other investments | 18,203 | 17,942 | 17,908 | 20,346 | ||||||||
| Loans, net | 1,537,971 | 1,534,357 | 1,540,428 | 1,546,576 | ||||||||
| Real estate owned, net | — | — | 593 | 593 | ||||||||
| Interest and dividends receivable | 8,386 | 7,882 | 8,001 | 7,595 | ||||||||
| Premises and equipment, net | 30,161 | 30,858 | 31,696 | 32,475 | ||||||||
| Right-of-use assets | 24,190 | 24,596 | 24,454 | 25,172 | ||||||||
| Bank owned life insurance | 22,399 | 22,274 | 22,153 | 22,034 | ||||||||
| Other assets | 13,749 | 16,322 | 30,393 | 27,127 | ||||||||
| Total assets | $ | 2,055,093 | $ | 2,045,452 | $ | 2,027,787 | $ | 2,044,963 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Deposits | $ | 1,318,670 | $ | 1,311,156 | $ | 1,291,184 | $ | 1,244,904 | ||||
| Advances from the Federal Home Loan Bank | 348,500 | 342,500 | 342,500 | 397,500 | ||||||||
| Advances by borrowers for taxes and insurance | 9,909 | 9,875 | 9,368 | 8,929 | ||||||||
| Lease liabilities | 25,870 | 26,243 | 26,081 | 26,777 | ||||||||
| Other liabilities | 12,845 | 10,081 | 8,498 | 11,213 | ||||||||
| Total liabilities | 1,715,794 | 1,699,855 | 1,677,631 | 1,689,323 | ||||||||
| Shareholders’ equity | 339,299 | 345,597 | 350,156 | 355,640 | ||||||||
| Total liabilities and shareholders’ equity | $ | 2,055,093 | $ | 2,045,452 | $ | 2,027,787 | $ | 2,044,963 | ||||
| BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Statements of Operations (Dollars in Thousands Except Per Share Data) (Unaudited) | ||||||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans | $ | 17,646 | $ | 17,570 | $ | 16,728 | $ | 52,408 | $ | 48,778 | ||||||||||
| Taxable investment income | 3,850 | 3,686 | 3,339 | 11,150 | 9,663 | |||||||||||||||
| Non-taxable investment income | 36 | 36 | 106 | 108 | 329 | |||||||||||||||
| Total interest income | 21,532 | 21,292 | 20,173 | 63,666 | 58,770 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 9,712 | 9,132 | 7,034 | 27,257 | 16,361 | |||||||||||||||
| Borrowed funds | 2,733 | 2,587 | 3,263 | 8,332 | 9,686 | |||||||||||||||
| Total interest expense | 12,445 | 11,719 | 10,297 | 35,589 | 26,047 | |||||||||||||||
| Net interest income | 9,087 | 9,573 | 9,876 | 28,077 | 32,723 | |||||||||||||||
| Provision for (release of) credit losses | 248 | (762 | ) | (717 | ) | (1,049 | ) | (597 | ) | |||||||||||
| Net interest income after provision for (release of) credit losses | 8,839 | 10,335 | 10,593 | 29,126 | 33,320 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Fees and service charges | 272 | 296 | 291 | 897 | 833 | |||||||||||||||
| Gain on sale of loans | — | — | — | 36 | 159 | |||||||||||||||
| Other income | 115 | 240 | 78 | 441 | 241 | |||||||||||||||
| Total non-interest income | 387 | 536 | 369 | 1,374 | 1,233 | |||||||||||||||
| Non-interest expense: | ||||||||||||||||||||
| Compensation and employee benefits | 7,306 | 7,635 | 6,640 | 22,490 | 21,552 | |||||||||||||||
| Occupancy and equipment | 2,230 | 2,262 | 2,104 | 6,684 | 6,210 | |||||||||||||||
| Data processing | 1,412 | 1,335 | 1,473 | 4,134 | 4,609 | |||||||||||||||
| Advertising | 87 | 52 | 85 | 211 | 234 | |||||||||||||||
| Professional services | 813 | 623 | 646 | 2,166 | 2,390 | |||||||||||||||
| Federal deposit insurance | 236 | 194 | 263 | 629 | 599 | |||||||||||||||
| Other | 1,183 | 1,114 | 1,183 | 3,410 | 3,425 | |||||||||||||||
| Total non-interest expense | 13,267 | 13,215 | 12,394 | 39,724 | 39,019 | |||||||||||||||
| Loss before income tax expense | (4,041 | ) | (2,344 | ) | (1,432 | ) | (9,224 | ) | (4,466 | ) | ||||||||||
| Income tax expense | — | — | — | — | — | |||||||||||||||
| Net loss | $ | (4,041 | ) | $ | (2,344 | ) | $ | (1,432 | ) | $ | (9,224 | ) | $ | (4,466 | ) | |||||
| Basic loss per share | $ | (0.19 | ) | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.43 | ) | $ | (0.18 | ) | |||||
| Diluted loss per share | $ | (0.19 | ) | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.43 | ) | $ | (0.18 | ) | |||||
| Weighted average shares outstanding | ||||||||||||||||||||
| Basic | 21,263,482 | 21,735,002 | 23,278,490 | 21,695,895 | 24,289,599 | |||||||||||||||
| Diluted (1) | 21,263,482 | 21,735,002 | 23,278,490 | 21,695,895 | 24,289,599 | |||||||||||||||
(1) The assumed vesting of outstanding restricted stock units had an antidilutive effect on diluted earnings per share due to the Company’s net loss for the 2024 and 2023 periods.
| BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Financial Highlights (Dollars in Thousands Except Per Share Data) (Unaudited) | ||||||||||||||||||||
| Three months ended | ||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Performance Ratios (%): | ||||||||||||||||||||
| Return on average assets | (0.79 | ) | (0.47 | ) | (0.56 | ) | (0.57 | ) | (0.27 | ) | ||||||||||
| Return on average equity | (4.68 | ) | (2.71 | ) | (3.23 | ) | (3.25 | ) | (1.55 | ) | ||||||||||
| Interest rate spread (1) | 1.29 | 1.43 | 1.40 | 1.33 | 1.48 | |||||||||||||||
| Net interest margin (2) | 1.82 | 1.96 | 1.92 | 1.84 | 1.94 | |||||||||||||||
| Efficiency ratio (3) (4) | 140.04 | 130.73 | 134.19 | 128.41 | 120.98 | |||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 121.37 | 122.28 | 122.50 | 122.93 | 123.05 | |||||||||||||||
| Tangible equity to tangible assets (4) | 16.50 | 16.88 | 17.25 | 17.37 | 17.07 | |||||||||||||||
| Book value per share (5) | $ | 14.76 | $ | 14.70 | $ | 14.61 | $ | 14.51 | $ | 14.27 | ||||||||||
| Tangible book value per share (4)(5) | $ | 14.74 | $ | 14.69 | $ | 14.60 | $ | 14.49 | $ | 14.24 | ||||||||||
| Asset Quality: | ||||||||||||||||||||
| Non-performing loans | $ | 5,146 | $ | 6,208 | $ | 6,691 | $ | 5,898 | $ | 6,139 | ||||||||||
| Real estate owned, net | — | — | 593 | 593 | 593 | |||||||||||||||
| Non-performing assets | $ | 5,146 | $ | 6,208 | $ | 7,284 | $ | 6,491 | $ | 6,732 | ||||||||||
| Allowance for credit losses to total loans (%) | 0.84 | 0.84 | 0.88 | 0.91 | 0.88 | |||||||||||||||
| Allowance for credit losses to non-performing loans (%) | 252.86 | 209.84 | 205.48 | 239.98 | 225.97 | |||||||||||||||
| Non-performing loans to total loans (%) | 0.33 | 0.40 | 0.43 | 0.38 | 0.39 | |||||||||||||||
| Non-performing assets to total assets (%) | 0.25 | 0.30 | 0.36 | 0.32 | 0.33 | |||||||||||||||
| Net charge-offs to average outstanding loans during the period (%) | — | — | — | — | 0.01 | |||||||||||||||
(1) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.
(3) Efficiency ratio represents adjusted non-interest expense divided by the sum of net interest income plus non-interest income.
(4) See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
(5) September 30, 2024 per share metrics computed using 22,990,908 total shares outstanding.
| BLUE FOUNDRY BANCORP AND SUBSIDIARY Analysis of Net Interest Income (Dollars in Thousands) (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended, | |||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||
| Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||
| Loans (1) | $ | 1,548,962 | $ | 17,646 | 4.53 | % | $ | 1,550,736 | $ | 17,570 | 4.56 | % | $ | 1,577,173 | $ | 16,728 | 4.21 | % | |||||||||
| Mortgage-backed securities | 181,596 | 1,186 | 2.60 | % | 167,219 | 960 | 2.31 | % | 170,326 | 840 | 1.96 | % | |||||||||||||||
| Other investment securities | 173,008 | 1,527 | 3.51 | % | 175,394 | 1,688 | 3.87 | % | 194,953 | 1,507 | 3.07 | % | |||||||||||||||
| FHLB stock | 17,666 | 406 | 9.15 | % | 17,223 | 447 | 10.44 | % | 21,047 | 456 | 8.60 | % | |||||||||||||||
| Cash and cash equivalents | 61,507 | 767 | 4.96 | % | 51,290 | 627 | 4.92 | % | 51,884 | 642 | 4.91 | % | |||||||||||||||
| Total interest-earning assets | 1,982,739 | 21,532 | 4.32 | % | 1,961,862 | 21,292 | 4.37 | % | 2,015,383 | 20,173 | 3.97 | % | |||||||||||||||
| Non-interest earning assets | 61,787 | 56,826 | 58,042 | ||||||||||||||||||||||||
| Total assets | $ | 2,044,526 | $ | 2,018,688 | $ | 2,073,425 | |||||||||||||||||||||
| Liabilities and shareholders' equity: | |||||||||||||||||||||||||||
| NOW, savings, and money market deposits | $ | 598,048 | 1,925 | 1.28 | % | $ | 611,931 | 1,955 | 1.28 | % | $ | 684,228 | 2,123 | 1.23 | % | ||||||||||||
| Time deposits | 688,570 | 7,787 | 4.50 | % | 655,755 | 7,177 | 4.40 | % | 558,252 | 4,911 | 3.49 | % | |||||||||||||||
| Interest-bearing deposits | 1,286,618 | 9,712 | 3.00 | % | 1,267,686 | 9,132 | 2.90 | % | 1,242,480 | 7,034 | 2.25 | % | |||||||||||||||
| FHLB advances | 347,076 | 2,733 | 3.13 | % | 336,742 | 2,587 | 3.09 | % | 395,359 | 3,263 | 3.27 | % | |||||||||||||||
| Total interest-bearing liabilities | 1,633,694 | 12,445 | 3.03 | % | 1,604,428 | 11,719 | 2.94 | % | 1,637,839 | 10,297 | 2.49 | % | |||||||||||||||
| Non-interest bearing deposits | 23,421 | 25,076 | 25,540 | ||||||||||||||||||||||||
| Non-interest bearing other | 43,713 | 41,061 | 44,628 | ||||||||||||||||||||||||
| Total liabilities | 1,700,828 | 1,670,565 | 1,708,007 | ||||||||||||||||||||||||
| Total shareholders' equity | 343,698 | 348,123 | 365,418 | ||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,044,526 | $ | 2,018,688 | $ | 2,073,425 | |||||||||||||||||||||
| Net interest income | $ | 9,087 | $ | 9,573 | $ | 9,876 | |||||||||||||||||||||
| Net interest rate spread (2) | 1.29 | % | 1.43 | % | 1.48 | % | |||||||||||||||||||||
| Net interest margin (3) | 1.82 | % | 1.96 | % | 1.94 | % | |||||||||||||||||||||
(1) Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans.
(2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average interest-earning assets.
| BLUE FOUNDRY BANCORP AND SUBSIDIARY Analysis of Net Interest Income (Dollars in Thousands) (Unaudited) | ||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||
| Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| Assets: | ||||||||||||||||||
| Loans (1) | $ | 1,551,734 | $ | 52,408 | 4.50 | % | $ | 1,571,204 | $ | 48,778 | 4.15 | % | ||||||
| Mortgage-backed securities | 169,765 | 3,022 | 2.37 | % | 174,742 | 2,789 | 2.13 | % | ||||||||||
| Other investment securities | 177,455 | 4,867 | 3.65 | % | 197,522 | 4,523 | 3.06 | % | ||||||||||
| FHLB stock | 18,335 | 1,345 | 9.77 | % | 21,343 | 1,106 | 6.93 | % | ||||||||||
| Cash and cash equivalents | 54,810 | 2,024 | 4.92 | % | 46,363 | 1,574 | 4.54 | % | ||||||||||
| Total interest-earning assets | 1,972,099 | 63,666 | 4.30 | % | 2,011,174 | 58,770 | 3.91 | % | ||||||||||
| Non-interest earning assets | 59,245 | 56,762 | ||||||||||||||||
| Total assets | $ | 2,031,344 | $ | 2,067,936 | ||||||||||||||
| Liabilities and shareholders' equity: | ||||||||||||||||||
| NOW, savings, and money market deposits | $ | 608,677 | $ | 5,816 | 1.27 | % | $ | 753,419 | $ | 6,350 | 1.13 | % | ||||||
| Time deposits | 654,639 | 21,441 | 4.36 | % | 472,866 | 10,011 | 2.83 | % | ||||||||||
| Interest-bearing deposits | 1,263,316 | 27,257 | 2.87 | % | 1,226,285 | 16,361 | 1.78 | % | ||||||||||
| FHLB advances | 352,544 | 8,332 | 3.15 | % | 395,800 | 9,686 | 3.27 | % | ||||||||||
| Total interest-bearing liabilities | 1,615,860 | 35,589 | 2.93 | % | 1,622,085 | 26,047 | 2.15 | % | ||||||||||
| Non-interest bearing deposits | 24,992 | 23,092 | ||||||||||||||||
| Non-interest bearing other | 42,120 | 44,572 | ||||||||||||||||
| Total liabilities | 1,682,972 | 1,689,749 | ||||||||||||||||
| Total shareholders' equity | 348,372 | 378,187 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,031,344 | $ | 2,067,936 | ||||||||||||||
| Net interest income | $ | 28,077 | $ | 32,723 | ||||||||||||||
| Net interest rate spread (2) | 1.37 | % | 1.76 | % | ||||||||||||||
| Net interest margin (3) | 1.90 | % | 2.18 | % | ||||||||||||||
(1) Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans.
(2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average interest-earning assets.
| BLUE FOUNDRY BANCORP AND SUBSIDIARY Supplemental Information - Non-GAAP Financial Measures (Unaudited) |
This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Blue Foundry's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Blue Foundry's financial results. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Blue Foundry strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Net income, as presented in the Consolidated Statements of Operations, includes the provision for credit losses and income tax expense, while pre-provision net revenue does not.
| Three months ended | ||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||
| Pre-provision net revenue and efficiency ratio: | ||||||||||||||||||||
| Net interest income | $ | 9,087 | $ | 9,573 | $ | 9,417 | $ | 9,196 | $ | 9,876 | ||||||||||
| Other income | 387 | 536 | 451 | 572 | 369 | |||||||||||||||
| Total revenue | 9,474 | 10,109 | 9,868 | 9,768 | 10,245 | |||||||||||||||
| Operating expenses | 13,267 | 13,215 | 13,242 | 12,543 | 12,394 | |||||||||||||||
| Pre-provision net loss | $ | (3,793 | ) | $ | (3,106 | ) | $ | (3,374 | ) | $ | (2,775 | ) | $ | (2,149 | ) | |||||
| Efficiency ratio | 140.0 | % | 130.7 | % | 134.2 | % | 128.4 | % | 121.0 | % | ||||||||||
| Core deposits: | ||||||||||||||||||||
| Total deposits | $ | 1,318,670 | $ | 1,311,156 | $ | 1,291,184 | $ | 1,244,904 | $ | 1,253,104 | ||||||||||
| Less: time deposits | 701,262 | 671,478 | 642,372 | 596,624 | 572,384 | |||||||||||||||
| Core deposits | $ | 617,408 | $ | 639,678 | $ | 648,812 | $ | 648,280 | $ | 680,720 | ||||||||||
| Core deposits to total deposits | 46.8 | % | 48.8 | % | 50.2 | % | 52.1 | % | 54.3 | % | ||||||||||
| Total assets | $ | 2,055,093 | $ | 2,045,452 | $ | 2,027,787 | $ | 2,044,963 | $ | 2,101,055 | ||||||||||
| Less: intangible assets | 300 | 386 | 473 | 557 | 644 | |||||||||||||||
| Tangible assets | $ | 2,054,793 | $ | 2,045,066 | $ | 2,027,314 | $ | 2,044,406 | $ | 2,100,411 | ||||||||||
| Tangible equity: | ||||||||||||||||||||
| Shareholders’ equity | $ | 339,299 | $ | 345,597 | $ | 350,156 | $ | 355,640 | $ | 359,149 | ||||||||||
| Less: intangible assets | 300 | 386 | 473 | 557 | 644 | |||||||||||||||
| Tangible equity | $ | 338,999 | $ | 345,211 | $ | 349,683 | $ | 355,083 | $ | 358,505 | ||||||||||
| Tangible equity to tangible assets | 16.50 | % | 16.88 | % | 17.25 | % | 17.37 | % | 17.07 | % | ||||||||||
| Tangible book value per share: | ||||||||||||||||||||
| Tangible equity | $ | 338,999 | $ | 345,211 | $ | 349,683 | $ | 355,083 | $ | 358,505 | ||||||||||
| Shares outstanding | 22,990,908 | 23,505,357 | 23,958,888 | 24,509,950 | 25,174,412 | |||||||||||||||
| Tangible book value per share | $ | 14.74 | $ | 14.69 | $ | 14.60 | $ | 14.49 | 14.24 | |||||||||||
FAQ
What was Blue Foundry Bancorp's (BLFY) net loss in Q3 2024?
How much did BLFY's deposits increase in Q3 2024?
What was BLFY's net interest margin in Q3 2024?
How many shares did BLFY repurchase in Q3 2024?
