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Blue Foundry Bancorp Reports Third Quarter 2024 Results
Source: Nasdaq GlobeNewswire / 23 Oct 2024 08:15:01 America/New_York
RUTHERFORD, N.J., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Blue Foundry Bancorp (NASDAQ:BLFY) (the “Company”), the holding company for Blue Foundry Bank (the “Bank”), today reported a net loss of $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,
2024June 30,
2024March 31,
2024December 31,
2023September 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,
2024June 30,
2024March 31,
2024December 31,
2023September 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. Nesci
President and Chief Executive Officer
BlueFoundryBank.com
jnesci@bluefoundrybank.com
201-972-8900Forward 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 ConditionSeptember 30,
2024June 30,
2024March 31,
2024December 31,
2023(unaudited) (unaudited) (unaudited) (audited) (Dollars in Thousands) ASSETS Cash and cash equivalents $ 76,109 $ 60,262 $ 53,753 $ 46,025 Securities available-for-sale, at fair value 290,806 297,790 265,191 283,766 Securities held to maturity 33,119 33,169 33,217 33,254 Other investments 18,203 17,942 17,908 20,346 Loans, net 1,537,971 1,534,357 1,540,428 1,546,576 Real estate owned, net — — 593 593 Interest and dividends receivable 8,386 7,882 8,001 7,595 Premises and equipment, net 30,161 30,858 31,696 32,475 Right-of-use assets 24,190 24,596 24,454 25,172 Bank owned life insurance 22,399 22,274 22,153 22,034 Other assets 13,749 16,322 30,393 27,127 Total assets $ 2,055,093 $ 2,045,452 $ 2,027,787 $ 2,044,963 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Deposits $ 1,318,670 $ 1,311,156 $ 1,291,184 $ 1,244,904 Advances from the Federal Home Loan Bank 348,500 342,500 342,500 397,500 Advances by borrowers for taxes and insurance 9,909 9,875 9,368 8,929 Lease liabilities 25,870 26,243 26,081 26,777 Other liabilities 12,845 10,081 8,498 11,213 Total liabilities 1,715,794 1,699,855 1,677,631 1,689,323 Shareholders’ equity 339,299 345,597 350,156 355,640 Total liabilities and shareholders’ equity $ 2,055,093 $ 2,045,452 $ 2,027,787 $ 2,044,963 BLUE FOUNDRY BANCORP AND SUBSIDIARY
Consolidated Statements of Operations
(Dollars in Thousands Except Per Share Data) (Unaudited)Three months ended Nine months ended September 30,
2024June 30, 2024 September 30,
2023September 30,
2024September 30,
2023(Dollars in thousands) Interest income: Loans $ 17,646 $ 17,570 $ 16,728 $ 52,408 $ 48,778 Taxable investment income 3,850 3,686 3,339 11,150 9,663 Non-taxable investment income 36 36 106 108 329 Total interest income 21,532 21,292 20,173 63,666 58,770 Interest expense: Deposits 9,712 9,132 7,034 27,257 16,361 Borrowed funds 2,733 2,587 3,263 8,332 9,686 Total interest expense 12,445 11,719 10,297 35,589 26,047 Net interest income 9,087 9,573 9,876 28,077 32,723 Provision for (release of) credit losses 248 (762 ) (717 ) (1,049 ) (597 ) Net interest income after provision for (release of) credit losses 8,839 10,335 10,593 29,126 33,320 Non-interest income: Fees and service charges 272 296 291 897 833 Gain on sale of loans — — — 36 159 Other income 115 240 78 441 241 Total non-interest income 387 536 369 1,374 1,233 Non-interest expense: Compensation and employee benefits 7,306 7,635 6,640 22,490 21,552 Occupancy and equipment 2,230 2,262 2,104 6,684 6,210 Data processing 1,412 1,335 1,473 4,134 4,609 Advertising 87 52 85 211 234 Professional services 813 623 646 2,166 2,390 Federal deposit insurance 236 194 263 629 599 Other 1,183 1,114 1,183 3,410 3,425 Total non-interest expense 13,267 13,215 12,394 39,724 39,019 Loss before income tax expense (4,041 ) (2,344 ) (1,432 ) (9,224 ) (4,466 ) Income tax expense — — — — — Net loss $ (4,041 ) $ (2,344 ) $ (1,432 ) $ (9,224 ) $ (4,466 ) Basic loss per share $ (0.19 ) $ (0.11 ) $ (0.06 ) $ (0.43 ) $ (0.18 ) Diluted loss per share $ (0.19 ) $ (0.11 ) $ (0.06 ) $ (0.43 ) $ (0.18 ) Weighted average shares outstanding Basic 21,263,482 21,735,002 23,278,490 21,695,895 24,289,599 Diluted (1) 21,263,482 21,735,002 23,278,490 21,695,895 24,289,599 (1) The assumed vesting of outstanding restricted stock units had an antidilutive effect on diluted earnings per share due to the Company’s net loss for the 2024 and 2023 periods.
BLUE FOUNDRY BANCORP AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands Except Per Share Data) (Unaudited)Three months ended September 30,
2024June 30,
2024March 31,
2024December 31,
2023September 30,
2023(Dollars in thousands) Performance Ratios (%): Return on average assets (0.79 ) (0.47 ) (0.56 ) (0.57 ) (0.27 ) Return on average equity (4.68 ) (2.71 ) (3.23 ) (3.25 ) (1.55 ) Interest rate spread (1) 1.29 1.43 1.40 1.33 1.48 Net interest margin (2) 1.82 1.96 1.92 1.84 1.94 Efficiency ratio (3) (4) 140.04 130.73 134.19 128.41 120.98 Average interest-earning assets to average interest-bearing liabilities 121.37 122.28 122.50 122.93 123.05 Tangible equity to tangible assets (4) 16.50 16.88 17.25 17.37 17.07 Book value per share (5) $ 14.76 $ 14.70 $ 14.61 $ 14.51 $ 14.27 Tangible book value per share (4)(5) $ 14.74 $ 14.69 $ 14.60 $ 14.49 $ 14.24 Asset Quality: Non-performing loans $ 5,146 $ 6,208 $ 6,691 $ 5,898 $ 6,139 Real estate owned, net — — 593 593 593 Non-performing assets $ 5,146 $ 6,208 $ 7,284 $ 6,491 $ 6,732 Allowance for credit losses to total loans (%) 0.84 0.84 0.88 0.91 0.88 Allowance for credit losses to non-performing loans (%) 252.86 209.84 205.48 239.98 225.97 Non-performing loans to total loans (%) 0.33 0.40 0.43 0.38 0.39 Non-performing assets to total assets (%) 0.25 0.30 0.36 0.32 0.33 Net charge-offs to average outstanding loans during the period (%) — — — — 0.01 (1) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.
(3) Efficiency ratio represents adjusted non-interest expense divided by the sum of net interest income plus non-interest income.
(4) See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
(5) September 30, 2024 per share metrics computed using 22,990,908 total shares outstanding.BLUE FOUNDRY BANCORP AND SUBSIDIARY
Analysis of Net Interest Income
(Dollars in Thousands) (Unaudited)Three Months Ended, September 30, 2024 June 30, 2024 September 30, 2023 Average
BalanceInterest Average
Yield/CostAverage
BalanceInterest Average
Yield/CostAverage
BalanceInterest Average
Yield/Cost(Dollars in thousands) Assets: Loans (1) $ 1,548,962 $ 17,646 4.53 % $ 1,550,736 $ 17,570 4.56 % $ 1,577,173 $ 16,728 4.21 % Mortgage-backed securities 181,596 1,186 2.60 % 167,219 960 2.31 % 170,326 840 1.96 % Other investment securities 173,008 1,527 3.51 % 175,394 1,688 3.87 % 194,953 1,507 3.07 % FHLB stock 17,666 406 9.15 % 17,223 447 10.44 % 21,047 456 8.60 % Cash and cash equivalents 61,507 767 4.96 % 51,290 627 4.92 % 51,884 642 4.91 % Total interest-earning assets 1,982,739 21,532 4.32 % 1,961,862 21,292 4.37 % 2,015,383 20,173 3.97 % Non-interest earning assets 61,787 56,826 58,042 Total assets $ 2,044,526 $ 2,018,688 $ 2,073,425 Liabilities and shareholders' equity: NOW, savings, and money market deposits $ 598,048 1,925 1.28 % $ 611,931 1,955 1.28 % $ 684,228 2,123 1.23 % Time deposits 688,570 7,787 4.50 % 655,755 7,177 4.40 % 558,252 4,911 3.49 % Interest-bearing deposits 1,286,618 9,712 3.00 % 1,267,686 9,132 2.90 % 1,242,480 7,034 2.25 % FHLB advances 347,076 2,733 3.13 % 336,742 2,587 3.09 % 395,359 3,263 3.27 % Total interest-bearing liabilities 1,633,694 12,445 3.03 % 1,604,428 11,719 2.94 % 1,637,839 10,297 2.49 % Non-interest bearing deposits 23,421 25,076 25,540 Non-interest bearing other 43,713 41,061 44,628 Total liabilities 1,700,828 1,670,565 1,708,007 Total shareholders' equity 343,698 348,123 365,418 Total liabilities and shareholders' equity $ 2,044,526 $ 2,018,688 $ 2,073,425 Net interest income $ 9,087 $ 9,573 $ 9,876 Net interest rate spread (2) 1.29 % 1.43 % 1.48 % Net interest margin (3) 1.82 % 1.96 % 1.94 % (1) Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans.
(2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average interest-earning assets.BLUE FOUNDRY BANCORP AND SUBSIDIARY
Analysis of Net Interest Income
(Dollars in Thousands) (Unaudited)Nine Months Ended September 30, 2024 2023 Average
BalanceInterest Average
Yield/CostAverage
BalanceInterest Average
Yield/Cost(Dollars in thousands) Assets: Loans (1) $ 1,551,734 $ 52,408 4.50 % $ 1,571,204 $ 48,778 4.15 % Mortgage-backed securities 169,765 3,022 2.37 % 174,742 2,789 2.13 % Other investment securities 177,455 4,867 3.65 % 197,522 4,523 3.06 % FHLB stock 18,335 1,345 9.77 % 21,343 1,106 6.93 % Cash and cash equivalents 54,810 2,024 4.92 % 46,363 1,574 4.54 % Total interest-earning assets 1,972,099 63,666 4.30 % 2,011,174 58,770 3.91 % Non-interest earning assets 59,245 56,762 Total assets $ 2,031,344 $ 2,067,936 Liabilities and shareholders' equity: NOW, savings, and money market deposits $ 608,677 $ 5,816 1.27 % $ 753,419 $ 6,350 1.13 % Time deposits 654,639 21,441 4.36 % 472,866 10,011 2.83 % Interest-bearing deposits 1,263,316 27,257 2.87 % 1,226,285 16,361 1.78 % FHLB advances 352,544 8,332 3.15 % 395,800 9,686 3.27 % Total interest-bearing liabilities 1,615,860 35,589 2.93 % 1,622,085 26,047 2.15 % Non-interest bearing deposits 24,992 23,092 Non-interest bearing other 42,120 44,572 Total liabilities 1,682,972 1,689,749 Total shareholders' equity 348,372 378,187 Total liabilities and shareholders' equity $ 2,031,344 $ 2,067,936 Net interest income $ 28,077 $ 32,723 Net interest rate spread (2) 1.37 % 1.76 % Net interest margin (3) 1.90 % 2.18 % (1) Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans.
(2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average interest-earning assets.BLUE FOUNDRY BANCORP AND SUBSIDIARY
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Blue Foundry's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Blue Foundry's financial results. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Blue Foundry strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Net income, as presented in the Consolidated Statements of Operations, includes the provision for credit losses and income tax expense, while pre-provision net revenue does not.
Three months ended September 30,
2024June 30, 2024 March 31,
2024December 31,
2023September 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