• Blue Foundry Bancorp Reports Second Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 24 Jul 2024 07:15:01   America/Chicago

    RUTHERFORD, N.J., July 24, 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 $2.3 million, or $0.11 per diluted common share, for the three months ended June 30, 2024, compared to net loss of $2.8 million, or $0.13 per diluted common share, for the three months ended March 31, 2024, and a net loss of $1.8 million, or $0.08 per diluted common share, for the three months ended June 30, 2023.

    James D. Nesci, President and Chief Executive Officer, commented, “Deposit growth continued in the second quarter despite the highly competitive environment in our market area. We remain focused on growing the commercial loan portfolios and saw increases in commercial real estate and construction lending.”

    Mr. Nesci continued, “The Company continues to maintain its strong capital position and access to liquidity. We continued to repurchase shares and increased our tangible book value to $14.69 per share.”

    Commenting on the recent appointment of John F. Kuntz to the Board of Directors, Mr. Nesci remarked, “We are delighted to welcome Mr. Kuntz to Blue Foundry’s Board of Directors. His years of combined legal and operational expertise leading financial institutions will be invaluable to the Company.”

    Highlights for the second quarter of 2024:

    • Deposits increased $20.0 million, or 1.55% compared to the prior quarter.
    • Uninsured deposits to third-party customers totaled approximately 12% of total deposits as of June 30, 2024.
    • Interest income for the quarter was $21.3 million, an increase of $450 thousand, or 2.2%, compared to the prior quarter.
    • Interest expense for the quarter was $11.7 million, an increase of $294 thousand, or 2.6%, compared to the prior quarter.
    • Net interest margin increased four basis points from the prior quarter to 1.96%.
    • Release of provision for credit losses of $762 thousand due to the impact of the change in forecast on the loan portfolio, coupled with a decline in portfolio balances and unused lines of credit.
    • Book value per share was $14.70 and tangible book value per share was $14.69. See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
    • 386,352 shares were repurchased under our share repurchase plans at a weighted average share price of $8.84 per share.

    Loans

    The Company continues to focus on diversifying its lending portfolio by growing its commercial portfolios. During the first six months of 2024, while total loans decreased by $13.3 million, the construction and commercial real estate portfolios increased by $11.5 million and $9.4 million, respectively. The residential and multifamily portfolios decreased by $24.5 million and $11.4 million, respectively.

    The details of the loan portfolio are below:

      June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023    		 June 30,
    2023
      (In thousands)
    Residential $526,453  $540,427  $550,929  $567,384  $580,396 
    Multifamily  671,185   671,011   682,564   689,966   696,956 
    Commercial real estate  241,867   244,207   232,505   236,325   237,247 
    Construction  71,882   63,052   60,414   45,064   36,032 
    Junior liens  23,653   22,052   22,503   22,297   21,338 
    Commercial and industrial  12,261   13,372   11,768   9,904   9,743 
    Consumer and other  83   56   47   50   33 
    Total loans  1,547,384   1,554,177   1,560,730   1,570,990   1,581,745 
    Less: Allowance for credit losses  13,027   13,749   14,154   13,872   14,413 
    Loans receivable, net $1,534,357  $1,540,428  $1,546,576  $1,557,118  $1,567,332 
     

    Deposits

    As of June 30, 2024, deposits totaled $1.31 billion, an increase of $66.3 million, or 5.32%, from December 31, 2023, mostly due to the increases of $74.9 million in time deposits and $7.2 million in NOW and demand accounts, partially offset by decreases in non-interest bearing deposits and savings of $3.0 million and $12.8 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:

      June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023    		 June 30,
    2023
      (In thousands)
    Non-interest bearing deposits $24,733  $25,342  $27,739  $23,787  $26,067 
    NOW and demand accounts  368,386   373,172   361,139   378,268   404,407 
    Savings  246,559   250,298   259,402   278,665   315,713 
    Core deposits  639,678   648,812   648,280   680,720   746,187 
    Time deposits  671,478   642,372   596,624   572,384   521,074 
    Total deposits $1,311,156  $1,291,184  $1,244,904  $1,253,104  $1,267,261 
     

    Financial Performance Overview:

    Second quarter of 2024 compared to the first quarter of 2024

    Net interest income compared to the first quarter of 2024:

    • Net interest income was approximately $9.6 million in the three months ended June 30, 2024 compared to $9.4 million in the first quarter of 2024 as the increase in interest received on interest-earning assets outpaced the increase in interest paid on interest-bearing liabilities.
    • Net interest margin increased by four basis points to 1.96%.
    • Yield on average interest-earning assets increased 12 basis points to 4.37%, while the cost of average interest-bearing liabilities increased eight basis points to 2.94%.
    • Average interest-earning assets decreased by $9.4 million and average interest-bearing liabilities decreased by $4.8 million.

    Non-interest income compared to the first quarter of 2024:

    • Non-interest income increased $85 thousand due to a gain of $123 thousand on the sale of REO property during the quarter, partially offset by a reduction in service charge income.

    Non-interest expense compared to the first quarter of 2024:

    • Non-interest expense decreased $27 thousand primarily driven by decreases in professional fees and data processing expense of $107 thousand and $52 thousand, respectively, partially offset by an increase of $86 thousand in compensation and benefits expenses and an increase of $70 thousand in occupancy and equipment.

    Income tax expense compared to the first quarter of 2024:

    • The Company did not record a tax benefit for the losses incurred during the second quarter of 2024 and the first 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 June 30, 2024, the valuation allowance on deferred tax assets was $23.5 million.

    Second quarter of 2024 compared to the second quarter of 2023

    Net interest income compared to the second quarter of 2023:

    • Net interest income was $9.6 million for the three months ended June 30, 2024 compared to $10.9 million for the same period in 2023. The decrease was largely due to increases in rates paid on interest-bearing liabilities.
    • Net interest margin decreased by 21 basis points to 1.96%.
    • Yield on average interest-earning assets increased 44 basis points to 4.37%, while the cost of average interest-bearing liabilities increased 76 basis points to 2.94%.
    • Average interest-earning assets decreased by $57.6 million and average interest-bearing liabilities decreased by $24.3 million. Average FHLB advances decreased by $95.4 million, while average interest-bearing deposits increased by $71.1 million.

    Non-interest income compared to the second quarter of 2023:

    • Non-interest income increased $156 thousand due, in part, to a gain of $123 thousand on the sale of REO property during the quarter.

    Non-interest expense compared to the second quarter of 2023:

    • Non-interest expense was $13.2 million, an increase of $247 thousand driven by increases of $570 thousand and $138 thousand in compensation and benefits expenses and occupancy and equipment expenses, respectively, partially offset by decreases of $141 thousand in professional services and $200 thousand in data processing.

    Income tax expense compared to the second quarter of 2023:

    • The Company did not record a tax benefit for the losses incurred during the second 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 June 30, 2024, the valuation allowance on deferred tax assets was $23.5 million.

    Six Months Ended June 30, 2024 compared to the six months ended June 30, 2023

    Net interest income compared to the six months ended June 30, 2023:

    • Net interest income was $19.0 million, a decrease of $3.9 million.
    • Net interest margin decreased 35 basis points to 1.94%.
    • Yield on average interest-earning assets increased 43 basis points to 4.30% while the cost of average interest-bearing liabilities increased 91 basis points to 2.89%.
    • Average interest-earning assets decreased by $42.5 million and average interest-bearing deposits increased by $41.7 million.
    • Average borrowings decreased by $40.7 million.

    Non-interest income compared to the six months ended June 30, 2023:

    • Non-interest income increased $123 thousand due to the gain on the sale of REO property during the quarter.

    Non-interest expense compared to the six months ended June 30, 2023:

    • Non-interest expense was $26.5 million, a decrease of $168 thousand.
    • Fees for professional services decreased by $391 thousand and data processing expense decreased by $414 thousand. These decreases were partially offset by increases of $348 thousand in occupancy and equipment costs and $272 thousand in compensation and benefits expense.

    Income tax expense compared to the six months ended June 30, 2023:

    • The Company did not record a tax benefit for the losses incurred during the six months ended June 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 June 30, 2024, the valuation allowance on deferred tax assets was $23.5 million.

    Balance Sheet Summary:

    June 30, 2024 compared to December 31, 2023

    Cash and cash equivalents:

    • Cash and cash equivalents increased $14.2 million to $60.3 million.

    Securities available-for-sale:

    • Securities available-for-sale increased $14.0 million to $297.8 million due to purchases partially offset by maturities and paydowns.
    • Unrealized losses increased $748 thousand to $31.4 million.

    Other investments:

    • Other investments decreased $2.4 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 $13.3 million to $1.55 billion.
    • Residential loans and multifamily loans decreased $24.5 million and $11.4 million, respectively, partially offset by increases in construction loans of $11.5 million and in commercial real estate loans of $9.4 million, in line with our strategy to further diversify our loan portfolio.
    • The Company sold its REO property during the second quarter at a gain of $123 thousand.

    Deposits:

    • Deposits totaled $1.31 billion, an increase of $66.3 million from December 31, 2023. This was largely the result of a $74.9 million increase in certificate of deposits.
    • Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) represented 48.8% of total deposits, compared to 52.1% at December 31, 2023.
    • Brokered deposits totaled $125.0 million at both June 30, 2024 and December 31, 2023.
    • Uninsured and uncollateralized deposits to third-party customers were $150.9 million, or 12% of total deposits, at the end of the second quarter.

    Borrowings:

    • FHLB borrowings decreased $55.0 million to $342.5 million as deposit growth outpaced asset growth.
    • As of June 30, 2024, the Company had $360.5 million of additional borrowing capacity at the FHLB and $33.1 million of other unsecured lines of credit.

    Capital:

    • Shareholders’ equity decreased $10.0 million to $345.6 million. The decrease was primarily driven by the repurchase of shares, including net shares, at a cost of $8.8 million and the year-to-date loss.
    • Tangible equity to tangible assets was 16.88% and tangible common equity per share outstanding was $14.69. 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 June 30, 2024, the allowance for credit losses (“ACL”) on loans as a percentage of gross loans was 0.84%.
    • The Company recorded a net release of provision for credit losses of $762 thousand and $1.3 million for the three and six months ended June 30, 2024, driven by decreases in all categories. For the second quarter of 2024, there was a release of $706 thousand in the ACL for loans, $49 thousand in the ACL for off-balance-sheet commitments and $7 thousand in the ACL for held-to-maturity securities. There was a release of $1.1 million in the ACL for loans, $170 thousand in the ACL for off-balance-sheet commitments and $25 thousand in the ACL for held-to-maturity securities for the six months ended June 30, 2024. The release was driven by improvements in the economic forecast for the key drivers of our model as well as decreases in off-balance-sheet commitments.
    • Non-performing loans totaled $6.2 million, or 0.40% of total loans compared to $5.9 million, or 0.38% of total loans at December 31, 2023.
    • Net charge-offs were $16 thousand for the quarter ended June 30, 2024.
    • Ratio of allowance for credit losses on loans to non-performing loans was 209.84% at June 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 second quarter 2024 earnings announcement will be held today, Wednesday, July 24, 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 057129. 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
     
      June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
      (unaudited) (unaudited) (audited)
      (Dollars in Thousands)
    ASSETS      
    Cash and cash equivalents $60,262  $53,753  $46,025 
    Securities available-for-sale, at fair value  297,790   265,191   283,766 
    Securities held to maturity  33,169   33,217   33,254 
    Other investments  17,942   17,908   20,346 
    Loans, net  1,534,357   1,540,428   1,546,576 
    Real estate owned, net  —   593   593 
    Interest and dividends receivable  7,882   8,001   7,595 
    Premises and equipment, net  30,858   31,696   32,475 
    Right-of-use assets  24,596   24,454   25,172 
    Bank owned life insurance  22,274   22,153   22,034 
    Other assets  16,322   30,393   27,127 
    Total assets $2,045,452  $2,027,787  $2,044,963 
           
    LIABILITIES AND SHAREHOLDERS’ EQUITY      
    Liabilities      
    Deposits $1,311,156  $1,291,184  $1,244,904 
    Advances from the Federal Home Loan Bank  342,500   342,500   397,500 
    Advances by borrowers for taxes and insurance  9,875   9,368   8,929 
    Lease liabilities  26,243   26,081   26,777 
    Other liabilities  10,081   8,498   11,213 
    Total liabilities  1,699,855   1,677,631   1,689,323 
    Shareholders’ equity  345,597   350,156   355,640 
    Total liabilities and shareholders’ equity $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 Six months ended
      June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023
      (Dollars in thousands)
    Interest income:          
    Loans $17,570  $17,192  $16,481  $34,762  $32,050 
    Taxable investment income  3,686   3,614   3,172   7,300   6,324 
    Non-taxable investment income  36   36   112   72   223 
    Total interest income  21,292   20,842   19,765   42,134   38,597 
    Interest expense:          
    Deposits  9,132   8,413   5,173   17,545   9,327 
    Borrowed funds  2,587   3,012   3,686   5,599   6,423 
    Total interest expense  11,719   11,425   8,859   23,144   15,750 
    Net interest income  9,573   9,417   10,906   18,990   22,847 
    (Release of) provision for credit losses  (762)  (535)  143   (1,297)  120 
    Net interest income after (release of) provision for credit losses  10,335   9,952   10,763   20,287   22,727 
    Non-interest income:          
    Fees and service charges  296   329   280   625   542 
    Gain on sale of loans  —   36   24   36   159 
    Other income  240   86   76   326   163 
    Total non-interest income  536   451   380   987   864 
    Non-interest expense:          
    Compensation and employee benefits  7,635   7,549   7,065   15,184   14,912 
    Occupancy and equipment  2,262   2,192   2,124   4,454   4,106 
    Data processing  1,335   1,387   1,535   2,722   3,136 
    Advertising  52   72   77   124   149 
    Professional services  623   730   764   1,353   1,744 
    Federal deposit insurance  194   199   231   393   336 
    Other  1,114   1,113   1,172   2,227   2,242 
    Total non-interest expense  13,215   13,242   12,968   26,457   26,625 
    Loss before income tax expense  (2,344)  (2,839)  (1,825)  (5,183)  (3,034)
    Income tax expense  —   —   —   —   — 
    Net loss $(2,344) $(2,839) $(1,825) $(5,183) $(3,034)
    Basic loss per share $(0.11) $(0.13) $(0.08) $(0.24) $(0.13)
    Diluted loss per share $(0.11) $(0.13) $(0.08) $(0.24) $(0.13)
    Weighted average shares outstanding          
    Basic  21,735,002   22,095,260   24,249,714   21,914,811   24,131,017 
    Diluted (1)  21,735,002   22,095,260   24,249,714   21,914,811   24,131,017 

    (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
      June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023    		 June 30,
    2023
      (Dollars in thousands)
    Performance Ratios (%):          
    Return on average assets  (0.47)  (0.56)  (0.57)  (0.27)  (0.35)
    Return on average equity  (2.71)  (3.23)  (3.25)  (1.55)  (1.95)
    Interest rate spread (1)  1.43   1.40   1.33   1.48   1.75 
    Net interest margin (2)  1.96   1.92   1.84   1.94   2.17 
    Efficiency ratio (3) (4)  130.73   134.19   128.41   120.98   114.90 
    Average interest-earning assets to average interest-bearing liabilities  122.28   122.50   122.93   123.05   130.77 
    Tangible equity to tangible assets (4)  16.88   17.25   17.37   17.07   17.59 
    Book value per share (5) $14.70  $14.61  $14.51  $14.27  $14.38 
    Tangible book value per share (4)(5) $14.69  $14.60  $14.49  $14.24  $14.35 
               
    Asset Quality:          
    Non-performing loans $6,208  $6,691  $5,898  $6,139  $7,736 
    Real estate owned, net  —   593   593   593   — 
    Non-performing assets $6,208  $7,284  $6,491  $6,732  $7,736 
    Allowance for credit losses to total loans (%)  0.84   0.88   0.91   0.88   0.91 
    Allowance for credit losses to non-performing loans (%)  209.84   205.48   239.98   225.97   186.31 
    Non-performing loans to total loans (%)  0.40   0.43   0.38   0.39   0.49 
    Non-performing assets to total assets (%)  0.30   0.36   0.32   0.33   0.37 
    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) June 30, 2024 per share metrics computed using 23,505,357 total shares outstanding.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Analysis of Net Interest Income
    (Dollars in Thousands) (Unaudited)
     
      Three Months Ended,
      June 30, 2024 March 31, 2024 June 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) $1,550,736  $17,570  4.56% $1,555,534  $17,192  4.45% $1,583,057  $16,481  4.18%
    Mortgage-backed securities  167,219   960  2.31%  160,349   876  2.20%  174,398   967  2.22%
    Other investment securities  175,394   1,688  3.87%  183,717   1,652  3.62%  198,588   1,505  3.04%
    FHLB stock  17,223   447  10.44%  20,123   492  9.83%  22,832   342  6.00%
    Cash and cash equivalents  51,290   627  4.92%  51,561   630  4.92%  40,614   470  4.64%
    Total interest-earning assets  1,961,862   21,292  4.37%  1,971,284   20,842  4.25%  2,019,489   19,765  3.93%
    Non-interest earning assets  56,826       59,357       56,280     
    Total assets $2,018,688      $2,030,641      $2,075,769     
    Liabilities and shareholders' equity:                  
    NOW, savings, and money market deposits $611,931   1,955  1.28% $616,169   1,937  1.26% $754,048   2,217  1.18%
    Time deposits  655,755   7,177  4.40%  619,220   6,476  4.21%  442,547   2,956  2.68%
    Interest-bearing deposits  1,267,686   9,132  2.90%  1,235,389   8,413  2.74%  1,196,595   5,173  1.73%
    FHLB advances  336,742   2,587  3.09%  373,874   3,012  3.24%  432,137   3,686  3.42%
    Total interest-bearing liabilities  1,604,428   11,719  2.94%  1,609,263   11,425  2.86%  1,628,732   8,859  2.18%
    Non-interest bearing deposits  25,076       26,491       26,914     
    Non-interest bearing other  41,061       41,569       44,240     
    Total liabilities  1,670,565       1,677,323       1,699,886     
    Total shareholders' equity  348,123       353,318       375,883     
    Total liabilities and shareholders' equity $2,018,688      $2,030,641      $2,075,769     
    Net interest income   $9,573      $9,417      $10,906   
    Net interest rate spread (2)     1.43%     1.39%     1.75%
    Net interest margin (3)     1.96%     1.92%     2.17%

    (1) Average loan balances are net of deferred loan fees and costs, and 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)
     
      Six Months Ended June 30,
       2024   2023 
      Average Balance Interest Average
    Yield/Cost    		 Average Balance Interest Average
    Yield/Cost
      (Dollars in thousands)
    Assets:            
    Loans (1) $1,553,135  $34,762  4.49% $1,568,170  $32,050  4.12%
    Mortgage-backed securities  163,784   1,836  2.25%  176,987   1,949  2.22%
    Other investment securities  179,555   3,340  3.73%  198,827   3,017  3.06%
    FHLB stock  18,673   939  10.08%  21,494   649  6.09%
    Cash and cash equivalents  51,426   1,257  4.90%  43,556   932  4.31%
    Total interest-earning assets  1,966,573   42,134  4.30%  2,009,034   38,597  3.87%
    Non-interest earning assets  58,108       56,112     
    Total assets $2,024,681      $2,065,146     
    Liabilities and shareholders' equity:            
    NOW, savings, and money market deposits $614,049  $3,891  1.27% $780,362  $4,227  1.09%
    Time deposits  637,488   13,654  4.30%  429,465   5,100  2.39%
    Interest-bearing deposits  1,251,537   17,545  2.81%  1,209,827   9,327  1.55%
    FHLB advances  355,308   5,599  3.16%  396,025   6,423  3.27%
    Total interest-bearing liabilities  1,606,845   23,144  2.89%  1,605,852   15,750  1.98%
    Non-interest bearing deposits  25,786       30,091     
    Non-interest bearing other  41,314       44,543     
    Total liabilities  1,673,945       1,680,486     
    Total shareholders' equity  350,736       384,660     
    Total liabilities and shareholders' equity $2,024,681      $2,065,146     
    Net interest income   $18,990      $22,847   
    Net interest rate spread (2)     1.41%     1.89%
    Net interest margin (3)     1.94%     2.29%

    (1) Average loan balances are net of deferred loan fees and costs, and 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
      June 30, 2024 March 31, 2024 December 31, 2023 September 30,
    2023    		 June 30, 2023
      (Dollars in thousands, except per share data)
    Pre-provision net revenue and efficiency ratio:        
    Net interest income $9,573  $9,417  $9,196  $9,876  $10,906 
    Other income  536   451   572   369   380 
    Total revenue  10,109   9,868   9,768   10,245   11,286 
    Operating expenses  13,215   13,242   12,543   12,394   12,968 
    Pre-provision net loss $(3,106) $(3,374) $(2,775) $(2,149) $(1,682)
    Efficiency ratio  130.7%  134.2%  128.4%  121.0%  114.9%
               
    Core deposits:          
    Total deposits $1,311,156  $1,291,184  $1,244,904  $1,253,104  $1,267,261 
    Less: time deposits  671,478   642,372   596,624   572,384   521,074 
    Core deposits $639,678  $648,812  $648,280  $680,720  $746,187 
    Core deposits to total deposits  48.8%  50.2%  52.1%  54.3%  58.9%
               
    Total assets $2,045,452  $2,027,787  $2,044,963  $2,101,055  $2,080,514 
    Less: intangible assets  386   473   557   644   730 
    Tangible assets $2,045,066  $2,027,314  $2,044,406  $2,100,411  $2,079,784 
               
    Tangible equity:          
    Shareholders’ equity $345,597  $350,156  $355,640  $359,149  $366,534 
    Less: intangible assets  386   473   557   644   730 
    Tangible equity $345,211  $349,683  $355,083  $358,505  $365,804 
               
    Tangible equity to tangible assets  16.88%  17.25%  17.37%  17.07%  17.59%
               
    Tangible book value per share:          
    Tangible equity $345,211  $349,683  $355,083  $358,505  $365,804 
    Shares outstanding  23,505,357   23,958,888   24,509,950   25,174,412   25,493,422 
    Tangible book value per share $14.69  $14.60  $14.49  $14.24   14.35 

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