Blue Foundry Bancorp (NASDAQ:BLFY) (the
“Company”), the holding company for Blue Foundry Bank (the “Bank”),
today reported a net loss of $4.0 million, or $0.19 per diluted
common share, for the three months ended September 30, 2024,
compared to net loss of $2.3 million, or $0.11 per diluted common
share, for the three months ended June 30, 2024, and a net
loss of $1.4 million, or $0.06 per diluted common share, for the
three months ended September 30, 2023.
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 $14.74
per share.”
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 17% improvement in
non-performing loans. Our 84 basis point allowance for credit
losses now covers non-performing loans by over 2.5 times.”
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, or 1.1%, compared to
the prior quarter.
- Interest expense for the quarter
was $12.4 million, an increase of $726 thousand, or 6.2%, 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 $9.7 million during the first nine months
of 2024, our construction portfolio increased by $19.7 million and
our commercial real estate portfolio increased by $9.2 million, of
which $7.1 million was on owner-occupied properties. In addition,
our consumer and other loans increased by $7.7 million as we took
advantage of an opportunity to participate in a consumer loan
participation at an attractive rate with credit enhancements. The
residential and multifamily portfolios decreased by $34.2 million
and $16.3 million, respectively.
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
$1.32 billion, an increase of $73.8 million, or 5.93%, from
December 31, 2023, mostly due to the increases of
$104.6 million in time deposits partially offset by decreases
in savings, non-interest bearing deposits and NOW and demand
accounts of $21.8 million, $5.5 million and
$3.6 million, respectively. The Company’s strategy is to focus
on attracting the full banking relationship of small- to
medium-sized businesses through an extensive suite of deposit
products. While there is strong competition for deposits in the
northern New Jersey market, we were able to increase customer
deposits during the quarter. Brokered deposits remain unchanged
since year end 2023.
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 to 3.03%.
- 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 to 3.03%.
- 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 to 2.93%.
- 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 to 52.1% 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, or 12% 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, or 0.33% of total loans compared to $5.9 million, or 0.38%
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 to 239.98% 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.
NesciPresident and Chief Executive
OfficerBlueFoundryBank.comjnesci@bluefoundrybank.com201-972-8900
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 SUBSIDIARYConsolidated 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 SUBSIDIARYConsolidated 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 SUBSIDIARYConsolidated 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 SUBSIDIARYAnalysis of Net Interest
Income(Dollars in Thousands) (Unaudited) |
| |
|
|
| |
|
Three Months Ended, |
| |
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
| |
|
Average Balance |
|
Interest |
|
AverageYield/Cost |
|
Average Balance |
|
Interest |
|
AverageYield/Cost |
|
Average Balance |
|
Interest |
|
AverageYield/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 SUBSIDIARYAnalysis of Net Interest
Income(Dollars in Thousands) (Unaudited) |
| |
|
|
| |
|
Nine Months Ended September 30, |
| |
|
2024 |
|
2023 |
| |
|
Average Balance |
|
Interest |
|
AverageYield/Cost |
|
Average Balance |
|
Interest |
|
AverageYield/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 SUBSIDIARYSupplemental 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 |
|
Blue Foundry Bancorp (NASDAQ:BLFY)
過去 株価チャート
から 10 2024 まで 11 2024
Blue Foundry Bancorp (NASDAQ:BLFY)
過去 株価チャート
から 11 2023 まで 11 2024
