• Blue Foundry Bancorp Reports First Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 24 Apr 2024 08:15:01   America/New_York

    RUTHERFORD, N.J., April 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 $2.8 million, or $0.13 per diluted common share, for the three months ended March 31, 2024, compared to net loss of $2.9 million, or $0.13 per diluted common share, for the three months ended December 31, 2023, and a net loss of $1.2 million, or $0.05 per diluted common share, for the three months ended March 31, 2023.

    James D. Nesci, President and Chief Executive Officer, commented, “The first quarter was highlighted by significant deposit growth generated through the efforts of our staff. This growth was a catalyst for the margin expansion realized during the quarter. Our asset quality remains strong and our exposure to the more concerning lending markets is minimal.”

    Mr. Nesci continued, “As we are committed to being good stewards of capital, we were pleased to announce our fourth repurchase program in the first quarter. During the quarter, we repurchased more than 532 thousand shares and increased our tangible book value per share to $14.60.”

    Highlights for the first quarter of 2024:

    • Release of provision for credit losses of $535 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
    • Deposits increased $46.3 million, or 3.7% compared to the prior quarter.
    • Uninsured deposits to third-party customers totaled approximately 10% of total deposits as of March 31, 2024.
    • Interest income for the quarter was $20.8 million, an increase of $507 thousand, or 2.5%, compared to the prior quarter.
    • Interest expense for the quarter was $11.4 million, an increase of $286 thousand, or 2.6%, compared to the prior quarter.
    • Net interest margin increased eight basis points from the prior quarter to 1.92%.
    • Book value per share was $14.61 and tangible book value per share was $14.60. See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
    • 532,052 shares were repurchased under our share repurchase plans at a weighted average share price of $9.49 per share.

    Lending Franchise

    The Company continues to focus on diversifying its lending portfolio by growing its commercial portfolios. During the first three months of 2024, total loans decreased by $6.6 million. The commercial real estate, construction and commercial and industrial portfolios increased by $11.7 million, $2.6 million and $1.6 million, respectively, while the multifamily and residential portfolios decreased by $11.6 million and $10.5 million, respectively.

    The details of the loan portfolio are below:

      March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023    		 June 30,
    2023    		 March 31,
    2023
      (In thousands)
    Residential $540,427  $550,929  $567,384  $580,396  $592,809 
    Multifamily  671,011   682,564   689,966   696,956   695,207 
    Commercial real estate  244,207   232,505   236,325   237,247   239,844 
    Construction  63,052   60,414   45,064   36,032   28,141 
    Junior liens  22,052   22,503   22,297   21,338   19,644 
    Commercial and industrial  13,372   11,768   9,904   9,743   10,357 
    Consumer and other  56   47   50   33   58 
    Total loans  1,554,177   1,560,730   1,570,990   1,581,745   1,586,060 
    Less: Allowance for credit losses  13,749   14,154   13,872   14,413   14,153 
    Loans receivable, net $1,540,428  $1,546,576  $1,557,118  $1,567,332  $1,571,907 
     

    Retail Banking Franchise

    As of March 31, 2024, deposits totaled $1.29 billion, an increase of $46.3 million, or 3.72%, from December 31, 2023, mostly due to the increase of $45.7 million in time deposits. 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 retail deposits during the quarter. Brokered deposits were flat for the quarter.

    The details of deposits are below:

      March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023    		 June 30,
    2023    		 March 31,
    2023
      (In thousands)
    Non-interest bearing deposits $25,342  $27,739  $23,787  $26,067  $32,518 
    NOW and demand accounts  373,172   361,139   378,268   404,407   427,281 
    Savings  250,298   259,402   278,665   315,713   361,871 
    Core deposits  648,812   648,280   680,720   746,187   821,670 
    Time deposits  642,372   596,624   572,384   521,074   422,911 
    Total deposits $1,291,184  $1,244,904  $1,253,104  $1,267,261  $1,244,581 
     

    Financial Performance Overview:

    First quarter of 2024 compared to the fourth quarter of 2023

    Net interest income compared to the fourth quarter of 2023:

    • Net interest income was $9.4 million in the three months ended March 31, 2024 compared to $9.2 million in the fourth quarter of 2023 as an increase in interest received on interest-earning assets outpaced the increase in interest paid on interest-bearing liabilities.
    • Net interest margin increased by 8 basis points to 1.92%.
    • Yield on average interest-earning assets increased 19 basis points to 4.25%, while the cost of average interest-bearing liabilities increased 13 basis points to 2.86%.
    • Average loans decreased by $9.3 million and average interest-bearing liabilities decreased by $7.6 million.

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

    • Non-interest expense increased $699 thousand primarily driven by an increase of $662 thousand in compensation and benefits expenses due to merit increases, as well as variable compensation plans being reset, and an increase in professional fees of $99 thousand, partially offset by a decrease in data processing expense of $123 thousand.

    Income tax expense compared to the fourth quarter of 2023:

    • The Company did not record a tax benefit for the loss incurred during the first quarter of 2024 and the fourth quarter of 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 March 31, 2024, the valuation allowance on deferred tax assets was $23.5 million.

    First quarter of 2024 compared to the first quarter of 2023

    Net interest income compared to the first quarter of 2023:

    • Net interest income was $9.4 million for the three months ended March 31, 2024 compared to $11.9 million for the same period in 2023. The decrease is largely due to increases in rates paid on interest-bearing liabilities.
    • Net interest margin decreased by 50 basis points to 1.92%.
    • Yield on average interest-earning assets increased 43 basis points to 4.25%, while the cost of average interest-bearing liabilities increased 109 basis points to 2.86%.
    • Average loans increased by $2.4 million and average interest-bearing liabilities increased by $28.1 million.

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

    • Non-interest expense was $13.2 million, a decrease of $415 thousand driven by a decrease of $298 thousand in compensation and benefits expenses, a decrease of $250 thousand in professional services and a decrease of $214 thousand in data processing partially offset by an increase of $210 thousand and $94 thousand in occupancy and equipment and FDIC premiums, respectively.

    Income tax expense compared to the first quarter of 2023:

    • The Company did not record a tax benefit for the loss incurred during the first 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 March 31, 2024, the valuation allowance on deferred tax assets was $23.5 million.

    Balance Sheet Summary:

    March 31, 2024 compared to December 31, 2023

    Cash and cash equivalents:

    • Cash and cash equivalents increased $7.7 million to $53.8 million.

    Securities available-for-sale:

    • Securities available-for-sale decreased $18.6 million to $265.2 million due to maturities and paydowns.
    • Unrealized losses increased $1.1 million to $31.8 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 $6.6 million to $1.55 billion.
    • Commercial real estate loans increased $11.7 million, construction loans increased $2.6 million and commercial and industrial loans increased $1.6 million offset by a reduction of $11.6 million in multifamily loans and $10.5 million in residential loans in line with our strategy to further diversify our loan portfolio.

    Deposits:

    • Deposits totaled $1.29 billion, an increase of $46.3 million from December 31, 2023. This was largely the result of a $45.7 million increase in certificate of deposits.
    • Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) represented 50.3% of total deposits, compared to 52.1% at December 31, 2023 and 66.0% at March 31, 2023.
    • Brokered deposits totaled $125.0 million at March 31, 2024 and December 31, 2023.
    • Uninsured and uncollateralized deposits to third party customers were $133.4 million, or 10% of total deposits, at the end of the first quarter.

    Borrowings:

    • FHLB borrowings decreased $55.0 million to $342.5 million as deposit growth outpaced asset growth.
    • As of March 31, 2024, the Company had $379.7 million of additional borrowing capacity at the FHLB and $33.2 million of other unsecured lines of credit.

    Capital:

    • Shareholders’ equity decreased by $5.5 million to $350.2 million. The decrease was primarily driven by the repurchase of shares, including net shares, at a cost of $5.3 million.
    • Tangible equity to tangible assets was 17.25% and tangible common equity per share outstanding was $14.60. 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 March 31, 2024, the allowance for credit losses (“ACL”) on loans as a percentage of gross loans was 0.88%.
    • The Company recorded a net release of provision for credit losses of $535 thousand for the quarter ended March 31, 2024, driven by decreases in all categories. There was a release of $396 thousand in the ACL for loans, $121 thousand in the ACL for off-balance-sheet commitments and $18 thousand in the ACL for held-to-maturity securities. The release was driven by improvements in the economic forecast for the key drivers of our model.
    • Non-performing loans totaled $6.7 million, or 0.43% of total loans compared to $5.9 million, or 0.38% of total loans at December 31, 2023, and $7.5 million, or 0.47% of total loans at March 31, 2023.
    • Net charge-offs were $9 thousand for the quarter ended March 31, 2024.
    • Ratio of non-performing loans to allowance for credit losses on loans was 205.48% at March 31, 2024 compared to 239.98% at December 31, 2023 and 189.18% at March 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 first quarter 2024 earnings announcement will be held today, Wednesday, April 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 580671. 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; the effects of the recent turmoil in the banking industry; 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
     
      March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023    		 June 30,
    2023    		 March 31,
    2023
      (unaudited) (audited) (unaudited) (unaudited) (unaudited)
      (Dollars in Thousands)
    ASSETS          
    Cash and cash equivalents $53,753  $46,025  $52,407  $45,759  $57,621 
    Securities available-for-sale, at fair value  265,191   283,766   283,649   300,923   309,083 
    Securities held to maturity  33,217   33,254   33,298   33,445   33,472 
    Other investments  17,908   20,346   20,515   20,420   21,070 
    Loans held-for-sale  —   —   2,435   2,497   2,552 
    Loans, net  1,540,428   1,546,576   1,557,118   1,567,332   1,571,907 
    Real estate owned, net  593   593   593   —   — 
    Interest and dividends receivable  8,001   7,595   7,787   7,285   7,375 
    Premises and equipment, net  31,696   32,475   32,031   31,519   30,839 
    Right-of-use assets  24,454   25,172   25,885   26,594   26,320 
    Bank owned life insurance  22,153   22,034   21,919   21,802   21,688 
    Other assets  30,393   27,127   22,939   22,938   19,128 
    Total assets $2,027,787  $2,044,963  $2,060,576  $2,080,514  $2,101,055 
               
    LIABILITIES AND SHAREHOLDERS’ EQUITY        
    Liabilities          
    Deposits $1,291,184  $1,244,904  $1,253,104  $1,267,261  $1,244,581 
    Advances from the Federal Home Loan Bank  342,500   397,500   402,500   399,500   422,500 
    Advances by borrowers for taxes and insurance  9,368   8,929   9,615   9,862   9,695 
    Lease liabilities  26,081   26,777   27,466   28,130   27,799 
    Other liabilities  8,498   11,213   8,742   9,227   10,787 
    Total liabilities  1,677,631   1,689,323   1,701,427   1,713,980   1,715,362 
               
    Shareholders’ equity  350,156   355,640   359,149   366,534   385,693 
    Total liabilities and shareholders’ equity $2,027,787  $2,044,963  $2,060,576  $2,080,514  $2,101,055 


    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Statements of Operations
    (Dollars in Thousands Except Per Share Data) (Unaudited)
     
      Three months ended
      March 31, 2024 December 31, 2023 March 31, 2023
      (Dollars in thousands)
    Interest income:      
    Loans $17,192  $16,907  $15,569 
    Taxable investment income  3,614   3,327   3,152 
    Non-taxable investment income  36   101   111 
    Total interest income  20,842   20,335   18,832 
    Interest expense:      
    Deposits  8,413   7,755   4,154 
    Borrowed funds  3,012   3,384   2,737 
    Total interest expense  11,425   11,139   6,891 
    Net interest income  9,417   9,196   11,941 
    (Release of) provision for credit losses  (535)  156   (23)
    Net interest income after (release of) provision for credit losses  9,952   9,040   11,964 
    Non-interest income:      
    Fees and service charges  329   331   262 
    Gain on securities, net  —   20   — 
    Gain on sale of loans  36   72   135 
    Other income  86   149   87 
    Total non-interest income  451   572   484 
    Non-interest expense:      
    Compensation and employee benefits  7,549   6,887   7,847 
    Occupancy and equipment  2,192   2,140   1,982 
    Data processing  1,387   1,510   1,601 
    Advertising  72   120   72 
    Professional services  730   631   980 
    Federal deposit insurance  199   200   105 
    Other  1,113   1,055   1,070 
    Total non-interest expense  13,242   12,543   13,657 
    (Loss) income before income tax expense  (2,839)  (2,931)  (1,209)
    Income tax expense  —   —   — 
    Net (loss) income $(2,839) $(2,931) $(1,209)
    Basic loss per share $(0.13) $(0.13) $(0.05)
    Diluted loss per share $(0.13) $(0.13) $(0.05)
    Weighted average shares outstanding-basic  22,095,260   22,845,252   25,374,653 
    Weighted average shares outstanding-diluted (1)  22,095,260   22,845,252   25,374,653 

    (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
      March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023    		 June 30,
    2023    		 March 31,
    2023
      (Dollars in thousands)
    Performance Ratios (%):          
    Return on average assets  (0.56)  (0.57)  (0.27)  (0.35)  (0.24)
    Return on average equity  (3.23)  (3.25)  (1.55)  (1.95)  (1.25)
    Interest rate spread (1)  1.40   1.33   1.48   1.75   2.05 
    Net interest margin (2)  1.92   1.84   1.94   2.17   2.42 
    Efficiency ratio (3) (4)  134.19   128.41   120.98   114.90   109.92 
    Average interest-earning assets to average interest-bearing liabilities  122.50   122.93   123.05   130.77   126.39 
    Tangible equity to tangible assets (4)  17.25   17.37   17.07   17.59   18.33 
    Book value per share (5) $14.61  $14.51  $14.27  $14.38  $14.08 
    Tangible book value per share (4)(5) $14.60  $14.49  $14.24  $14.35  $14.06 
               
    Asset Quality:          
    Non-performing loans $6,691  $5,898  $6,139  $7,736  $7,481 
    Real estate owned, net  593   593   593   —   — 
    Non-performing assets $7,284  $6,491  $6,732  $7,736  $7,481 
    Allowance for credit losses to total loans (%)  0.88   0.91   0.88   0.91   0.89 
    Allowance for credit losses to non-performing loans (%)  205.48   239.98   225.97   186.31   189.18 
    Non-performing loans to total loans (%)  0.43   0.38   0.39   0.49   0.47 
    Non-performing assets to total assets (%)  0.36   0.32   0.33   0.37   0.36 
    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) March 31, 2024 per share metrics computed using 23,958,888 total shares outstanding.


    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Analysis of Net Interest Income
    (Dollars in Thousands) (Unaudited)
     
      Three Months Ended,
      March 31, 2024 December 31, 2023 March 31, 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) $1,555,534  $17,192  4.45% $1,564,800  $16,907  4.29% $1,553,118  $15,569  4.07%
    Mortgage-backed securities  160,349   876  2.20%  165,471   904  2.17%  179,604   982  2.22%
    Other investment securities  183,717   1,652  3.62%  190,507   1,486  3.09%  199,069   1,512  3.08%
    FHLB stock  20,123   492  9.83%  20,970   477  9.02%  20,141   308  6.20%
    Cash and cash equivalents  51,561   630  4.92%  45,895   561  4.85%  46,530   461  4.02%
    Total interest-earning assets  1,971,284   20,842  4.25%  1,987,643   20,335  4.06%  1,998,462   18,832  3.82%
    Non-interest earning assets  59,357       54,918       55,942     
    Total assets $2,030,641      $2,042,561      $2,054,404     
    Liabilities and shareholders' equity:                  
    NOW, savings, and money market deposits $616,169   1,937  1.26% $634,257   1,989  1.24% $805,392   2,010  1.01%
    Time deposits  619,220   6,476  4.21%  584,977   5,766  3.91%  416,238   2,144  2.09%
    Interest-bearing deposits  1,235,389   8,413  2.74%  1,219,234   7,755  2.52%  1,221,630   4,154  1.38%
    FHLB advances  373,874   3,012  3.24%  397,643   3,384  3.38%  359,511   2,737  3.09%
    Total interest-bearing liabilities  1,609,263   11,425  2.86%  1,616,877   11,139  2.73%  1,581,141   6,891  1.77%
    Non-interest bearing deposits  26,491       26,629       34,879     
    Non-interest bearing other  41,569       41,780       44,850     
    Total liabilities  1,677,323       1,685,286       1,660,870     
    Total shareholders' equity  353,318       357,275       393,534     
    Total liabilities and shareholders' equity $2,030,641      $2,042,561      $2,054,404     
    Net interest income   $9,417      $9,196      $11,941   
    Net interest rate spread (2)     1.39%     1.33%     2.05%
    Net interest margin (3)     1.92%     1.84%     2.42%

    (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
      March 31, 2024 December 31, 2023 September 30, 2023 June 30,
    2023    		 March 31, 2023
      (Dollars in thousands, except per share data)
    Pre-provision net revenue and efficiency ratio:        
    Net interest income $9,417  $9,196  $9,876  $10,906  $11,941 
    Other income  451   572   369   380   484 
    Total revenue  9,868   9,768   10,245   11,286   12,425 
    Operating expenses  13,242   12,543   12,394   12,968   13,657 
    Pre-provision net loss $(3,374) $(2,775) $(2,149) $(1,682) $(1,232)
    Efficiency ratio  134.2%  128.4%  121.0%  114.9%  109.9%
               
    Core deposits:          
    Total deposits $1,291,184  $1,244,904  $1,253,104  $1,267,261  $1,244,581 
    Less: time deposits  642,372   596,624   572,384   521,074   422,911 
    Core deposits $648,812  $648,280  $680,720  $746,187  $821,670 
    Core deposits to total deposits  50.3%  52.1%  54.3%  58.9%  66.0%
               
    Total assets $2,027,787  $2,044,963  $2,101,055  $2,080,514  $2,101,055 
    Less: intangible assets  473   557   644   730   781 
    Tangible assets $2,027,314  $2,044,406  $2,100,411  $2,079,784  $2,100,274 
               
    Tangible equity:          
    Shareholders’ equity $350,156  $355,640  $359,149  $366,534  $385,693 
    Less: intangible assets  473   557   644   730   781 
    Tangible equity $349,683  $355,083  $358,505  $365,804  $384,912 
               
    Tangible equity to tangible assets  17.25%  17.37%  17.07%  17.59%  18.33%
               
    Tangible book value per share:          
    Tangible equity $349,683  $355,083  $358,505  $365,804  $384,912 
    Shares outstanding  23,958,888   24,509,950   25,174,412   25,493,422   27,385,482 
    Tangible book value per share $14.60  $14.49  $14.24  $14.35   14.06 


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