• Blue Foundry Bancorp Reports Third Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 23 Oct 2024 07:15:01   America/Chicago

    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,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023
      (In thousands)
    Residential $516,754 $526,453 $540,427 $550,929 $567,384
    Multifamily  666,304  671,185  671,011  682,564  689,966
    Commercial real estate  241,711  241,867  244,207  232,505  236,325
    Construction  80,081  71,882  63,052  60,414  45,064
    Junior liens  24,174  23,653  22,052  22,503  22,297
    Commercial and industrial  14,228  12,261  13,372  11,768  9,904
    Consumer and other  7,731  83  56  47  50
    Total loans  1,550,983  1,547,384  1,554,177  1,560,730  1,570,990
    Less: Allowance for credit losses  13,012  13,027  13,749  14,154  13,872
    Loans receivable, net $1,537,971 $1,534,357 $1,540,428 $1,546,576 $1,557,118
                    

    Deposits

    As of September 30, 2024, deposits totaled $1.32 billion, an increase of $73.8 million, or 5.93%, from December 31, 2023, mostly due to the increases of $104.6 million in time deposits partially offset by decreases in savings, non-interest bearing deposits and NOW and demand accounts of $21.8 million, $5.5 million and $3.6 million, respectively. The Company’s strategy is to focus on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products. While there is strong competition for deposits in the northern New Jersey market, we were able to increase customer deposits during the quarter. Brokered deposits remain unchanged since year end 2023.

    The details of deposits are below:

      September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023
      (In thousands)
    Non-interest bearing deposits $22,254 $24,733 $25,342 $27,739 $23,787
    NOW and demand accounts  357,503  368,386  373,172  361,139  378,268
    Savings  237,651  246,559  250,298  259,402  278,665
    Core deposits  617,408  639,678  648,812  648,280  680,720
    Time deposits  701,262  671,478  642,372  596,624  572,384
    Total deposits $1,318,670 $1,311,156 $1,291,184 $1,244,904 $1,253,104
                    

    Financial Performance Overview:

    Third quarter of 2024 compared to the second quarter of 2024

    Net interest income compared to the second quarter of 2024:

    • Net interest income was $9.1 million for the three months ended September 30, 2024 compared to $9.6 million for the second quarter of 2024 as the increase in interest paid on interest-bearing liabilities outpaced the increase in interest received on interest-earning assets.
    • Net interest margin decreased by 14 basis points to 1.82%.
    • The yield on average interest-earning assets decreased five basis points to 4.32%, while the cost of average interest-bearing liabilities increased nine basis points to 3.03%.
    • Average interest-earning assets increased by $20.9 million and average interest-bearing liabilities increased by $29.3 million.

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

    • Non-interest income decreased $149 thousand primarily due the absence of the gain of $123 thousand on the sale of REO property, which was recorded in the second quarter.

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

    • Non-interest expense increased $52 thousand primarily driven by increases in professional fees, data processing expense and FDIC insurance premiums of $190 thousand, $77 thousand and $42 thousand, respectively, partially offset by decreases of $329 thousand in compensation and benefits expenses and $32 thousand in occupancy and equipment.

    Income tax expense compared to the second quarter of 2024:

    • The Company did not record a tax benefit for the losses incurred during the third quarter of 2024 and the second quarter of 2024 due to the full valuation allowance required on its deferred tax assets.
    • The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At September 30, 2024, the valuation allowance on deferred tax assets was $22.2 million.

    Third quarter of 2024 compared to the third quarter of 2023

    Net interest income compared to the third quarter of 2023:

    • Net interest income was $9.1 million for the three months ended September 30, 2024 compared to $9.9 million for the same period in 2023. The decrease was largely due to increases in rates paid on interest-bearing liabilities, which outpaced rates received on interest-earning assets.
    • Net interest margin decreased by 12 basis points to 1.82%.
    • The yield on average interest-earning assets increased 35 basis points to 4.32%, while the cost of average interest-bearing liabilities increased 54 basis points to 3.03%.
    • Average interest-earning assets decreased by $32.6 million and average interest-bearing liabilities decreased by $4.1 million. Average FHLB advances decreased by $48.3 million, while average interest-bearing deposits increased by $44.1 million.

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

    • Non-interest expense was $13.3 million, an increase of $873 thousand driven by increases of $666 thousand, $167 thousand and $126 thousand in compensation and benefits expenses, professional services and occupancy and equipment expenses, respectively, partially offset by decreases of $61 thousand in data processing and $27 thousand in FDIC insurance premiums.

    Income tax expense compared to the third quarter of 2023:

    • The Company did not record a tax benefit for the losses incurred during the third quarters of 2024 and 2023 due to the full valuation allowance required on its deferred tax assets.
    • The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At September 30, 2024, the valuation allowance on deferred tax assets was $22.2 million.

    Nine Months Ended September 30, 2024 compared to the nine months ended September 30, 2023

    Net interest income compared to the nine months ended September 30, 2023:

    • Net interest income was $28.1 million, a decrease of $4.6 million.
    • Net interest margin decreased 28 basis points to 1.90%.
    • The yield on average interest-earning assets increased 39 basis points to 4.30% while the cost of average interest-bearing liabilities increased 78 basis points to 2.93%.
    • Average interest-earning assets decreased by $39.1 million and average interest-bearing deposits increased by $37.0 million.
    • Average borrowings decreased by $43.3 million.

    Non-interest income compared to the nine months ended September 30, 2023:

    • Non-interest income increased $141 thousand primarily due to the gain on the sale of REO property during the second quarter of 2024.

    Non-interest expense compared to the nine months ended September 30, 2023:

    • Non-interest expense was $39.7 million, an increase of $705 thousand.
    • Compensation and benefits expense increased by $938 thousand and occupancy and equipment costs increased by $474 thousand. These increases were partially offset by decreases of $475 thousand and $224 thousand for data processing expense and fees for professional services, respectively.

    Income tax expense compared to the nine months ended September 30, 2023:

    • The Company did not record a tax benefit for the losses incurred during the nine months ended September 30, 2024 and 2023 due to the full valuation allowance required on its deferred tax assets.
    • The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At September 30, 2024, the valuation allowance on deferred tax assets was $22.2 million.

    Balance Sheet Summary:

    September 30, 2024 compared to December 31, 2023

    Cash and cash equivalents:

    • Cash and cash equivalents increased $30.1 million to $76.1 million.

    Securities available-for-sale:

    • Securities available-for-sale increased $7.0 million to $290.8 million due to the decrease in unrealized losses of $7.8 million. The favorable impact of the change in the unrealized loss position was partially offset as maturities, calls and paydowns outpaced purchases during the period.

    Other investments:

    • Other investments decreased $2.1 million due to a decrease in FHLB stock as a result of a reduction in FHLB borrowings.

    Total loans:

    • Total loans held for investment decreased $9.7 million to $1.55 billion.
    • Residential loans and multifamily loans decreased $34.2 million and $16.3 million, respectively, partially offset by increases in construction loans of $19.7 million, commercial real estate loans of $9.2 million and consumer loans of $7.7 million to further diversify our loan portfolio.
    • The Company purchased a consumer loan participation of $8.0 million and residential loans totaling $7.8 million during the third quarter.

    Deposits:

    • Deposits totaled $1.32 billion, an increase of $73.8 million from December 31, 2023. This was largely the result of a $104.6 million increase in certificate of deposits.
    • Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) represented 46.8% of total deposits, compared to 52.1% at December 31, 2023.
    • Brokered deposits totaled $125.0 million at both September 30, 2024 and December 31, 2023.
    • Uninsured and uncollateralized deposits to third-party customers were $159.6 million, or 12% of total deposits, at the end of the third quarter.

    Borrowings:

    • FHLB borrowings decreased $49.0 million to $348.5 million as deposit growth outpaced asset growth.
    • As of September 30, 2024, the Company had $255.7 million of additional borrowing capacity at the FHLB and $78.2 million of other unsecured lines of credit.

    Capital:

    • Shareholders’ equity decreased $16.3 million to $339.3 million. The decrease was primarily driven by the repurchase of shares, including net shares, at a cost of $14.4 million. Additionally, the year-to-date loss, partially offset by favorable changes in accumulated other comprehensive income, also contributed to the decrease.
    • Tangible equity to tangible assets was 16.50% and tangible common equity per share outstanding was $14.74. See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
    • The Bank’s capital ratios remain above the FDIC’s “well capitalized” standards.

    Asset quality:

    • As of September 30, 2024, the allowance for credit losses (“ACL”) on loans as a percentage of gross loans was 0.84%.
    • The Company recorded a provision for credit losses of $248 thousand for the third quarter of 2024 and a net release of provision for credit losses of $1.0 million for the nine months ended September 30, 2024. For the third quarter of 2024, there was a provision of $264 thousand in the ACL for off-balance-sheet commitments, offset by a release of $5 thousand in the ACL for loans and $11 thousand in the ACL for held-to-maturity securities. For the nine months ended September 30, 2024, there was a release of $1.1 million in the ACL for loans and $36 thousand in the ACL for held-to-maturity securities, offset by a provision of $94 thousand in the ACL for off-balance-sheet commitments. The release was driven by the impact of the economic forecasts for the key drivers of our loan segments partially offset by an increase in off-balance-sheet commitments.
    • Non-performing loans totaled $5.1 million, or 0.33% of total loans compared to $5.9 million, or 0.38% of total loans at December 31, 2023.
    • Net charge-offs were $11 thousand and $36 thousand for the three and nine months ended September 30, 2024, respectively.
    • Ratio of allowance for credit losses on loans to non-performing loans was 252.86% at September 30, 2024 compared to 239.98% at December 31, 2023.

    About Blue Foundry

    Blue Foundry Bancorp is the holding company for Blue Foundry Bank, a place where things are made, purpose is formed, and ideas are crafted. Headquartered in Rutherford NJ, with a presence in Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Somerset and Union counties, Blue Foundry Bank is a full-service, innovative bank serving the doers, movers, and shakers in our communities. We offer individuals and businesses alike the tailored products and services they need to build their futures. With a rich history dating back more than 145 years, Blue Foundry Bank has a longstanding commitment to its customers and communities. To learn more about Blue Foundry Bank visit BlueFoundryBank.com or call (888) 931-BLUE. Member FDIC.

    Conference Call Information

    A conference call covering Blue Foundry’s third quarter 2024 earnings announcement will be held today, Wednesday, October 23, 2024 at 11:00 a.m. (EDT). To listen to the live call, please dial 1-833-470-1428 (toll free) or +1-404-975-4839 (international) and use access code 725750. The webcast (audio only) will be available on ir.bluefoundrybank.com. The conference call will be recorded and will be available on the Company’s website for one month.

    Contact:
    James D. Nesci
    President and Chief Executive Officer
    BlueFoundryBank.com
    jnesci@bluefoundrybank.com
    201-972-8900

    Forward Looking Statements

    Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions.

    Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase in the level of defaults, losses and prepayments on loans we have made and make; general economic conditions, either nationally or in our market areas, that are worse than expected; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in our market area; our ability to implement and change our business strategies; competition among depository and other financial institutions; adverse changes in the securities or secondary mortgage markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums; changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; changes in the quality or composition of our loan or investment portfolios; technological changes that may be more difficult or expensive than expected; a failure or breach of our operational or security systems or infrastructure, including cyber-attacks; the inability of third party providers to perform as expected; our ability to manage market risk, credit risk and operational risk in the current economic environment; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related there to; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; our ability to retain key employees; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the ability of the U.S. Government to manage federal debt limits; and changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

    Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Statements of Financial Condition
             
      September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023
      (unaudited) (unaudited) (unaudited) (audited)
      (Dollars in Thousands)
    ASSETS        
    Cash and cash equivalents $76,109 $60,262 $53,753 $46,025
    Securities available-for-sale, at fair value  290,806  297,790  265,191  283,766
    Securities held to maturity  33,119  33,169  33,217  33,254
    Other investments  18,203  17,942  17,908  20,346
    Loans, net  1,537,971  1,534,357  1,540,428  1,546,576
    Real estate owned, net  —  —  593  593
    Interest and dividends receivable  8,386  7,882  8,001  7,595
    Premises and equipment, net  30,161  30,858  31,696  32,475
    Right-of-use assets  24,190  24,596  24,454  25,172
    Bank owned life insurance  22,399  22,274  22,153  22,034
    Other assets  13,749  16,322  30,393  27,127
    Total assets $2,055,093 $2,045,452 $2,027,787 $2,044,963
             
    LIABILITIES AND SHAREHOLDERS’ EQUITY      
    Liabilities        
    Deposits $1,318,670 $1,311,156 $1,291,184 $1,244,904
    Advances from the Federal Home Loan Bank  348,500  342,500  342,500  397,500
    Advances by borrowers for taxes and insurance  9,909  9,875  9,368  8,929
    Lease liabilities  25,870  26,243  26,081  26,777
    Other liabilities  12,845  10,081  8,498  11,213
    Total liabilities  1,715,794  1,699,855  1,677,631  1,689,323
    Shareholders’ equity  339,299  345,597  350,156  355,640
    Total liabilities and shareholders’ equity $2,055,093 $2,045,452 $2,027,787 $2,044,963
                 


    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Statements of Operations
    (Dollars in Thousands Except Per Share Data) (Unaudited)
         
      Three months ended Nine months ended
      September 30,
    2024    		 June 30, 2024 September 30,
    2023    		 September 30,
    2024    		 September 30,
    2023
      (Dollars in thousands)
    Interest income:          
    Loans $17,646  $17,570  $16,728  $52,408  $48,778 
    Taxable investment income  3,850   3,686   3,339   11,150   9,663 
    Non-taxable investment income  36   36   106   108   329 
    Total interest income  21,532   21,292   20,173   63,666   58,770 
    Interest expense:          
    Deposits  9,712   9,132   7,034   27,257   16,361 
    Borrowed funds  2,733   2,587   3,263   8,332   9,686 
    Total interest expense  12,445   11,719   10,297   35,589   26,047 
    Net interest income  9,087   9,573   9,876   28,077   32,723 
    Provision for (release of) credit losses  248   (762)  (717)  (1,049)  (597)
    Net interest income after provision for (release of) credit losses  8,839   10,335   10,593   29,126   33,320 
    Non-interest income:          
    Fees and service charges  272   296   291   897   833 
    Gain on sale of loans  —   —   —   36   159 
    Other income  115   240   78   441   241 
    Total non-interest income  387   536   369   1,374   1,233 
    Non-interest expense:          
    Compensation and employee benefits  7,306   7,635   6,640   22,490   21,552 
    Occupancy and equipment  2,230   2,262   2,104   6,684   6,210 
    Data processing  1,412   1,335   1,473   4,134   4,609 
    Advertising  87   52   85   211   234 
    Professional services  813   623   646   2,166   2,390 
    Federal deposit insurance  236   194   263   629   599 
    Other  1,183   1,114   1,183   3,410   3,425 
    Total non-interest expense  13,267   13,215   12,394   39,724   39,019 
    Loss before income tax expense  (4,041)  (2,344)  (1,432)  (9,224)  (4,466)
    Income tax expense  —   —   —   —   — 
    Net loss $(4,041) $(2,344) $(1,432) $(9,224) $(4,466)
    Basic loss per share $(0.19) $(0.11) $(0.06) $(0.43) $(0.18)
    Diluted loss per share $(0.19) $(0.11) $(0.06) $(0.43) $(0.18)
    Weighted average shares outstanding          
    Basic  21,263,482   21,735,002   23,278,490   21,695,895   24,289,599 
    Diluted (1)  21,263,482   21,735,002   23,278,490   21,695,895   24,289,599 

    (1) The assumed vesting of outstanding restricted stock units had an antidilutive effect on diluted earnings per share due to the Company’s net loss for the 2024 and 2023 periods.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Financial Highlights
    (Dollars in Thousands Except Per Share Data) (Unaudited)
       
      Three months ended
      September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023
      (Dollars in thousands)
    Performance Ratios (%):          
    Return on average assets  (0.79)  (0.47)  (0.56)  (0.57)  (0.27)
    Return on average equity  (4.68)  (2.71)  (3.23)  (3.25)  (1.55)
    Interest rate spread (1)  1.29   1.43   1.40   1.33   1.48 
    Net interest margin (2)  1.82   1.96   1.92   1.84   1.94 
    Efficiency ratio (3) (4)  140.04   130.73   134.19   128.41   120.98 
    Average interest-earning assets to average interest-bearing liabilities  121.37   122.28   122.50   122.93   123.05 
    Tangible equity to tangible assets (4)  16.50   16.88   17.25   17.37   17.07 
    Book value per share (5) $14.76  $14.70  $14.61  $14.51  $14.27 
    Tangible book value per share (4)(5) $14.74  $14.69  $14.60  $14.49  $14.24 
               
    Asset Quality:          
    Non-performing loans $5,146  $6,208  $6,691  $5,898  $6,139 
    Real estate owned, net  —   —   593   593   593 
    Non-performing assets $5,146  $6,208  $7,284  $6,491  $6,732 
    Allowance for credit losses to total loans (%)  0.84   0.84   0.88   0.91   0.88 
    Allowance for credit losses to non-performing loans (%)  252.86   209.84   205.48   239.98   225.97 
    Non-performing loans to total loans (%)  0.33   0.40   0.43   0.38   0.39 
    Non-performing assets to total assets (%)  0.25   0.30   0.36   0.32   0.33 
    Net charge-offs to average outstanding loans during the period (%)  —   —   —   —   0.01 

    (1) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (2) Net interest margin represents net interest income divided by average interest-earning assets.
    (3) Efficiency ratio represents adjusted non-interest expense divided by the sum of net interest income plus non-interest income.
    (4) See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
    (5) September 30, 2024 per share metrics computed using 22,990,908 total shares outstanding.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Analysis of Net Interest Income
    (Dollars in Thousands) (Unaudited)
       
      Three Months Ended,
      September 30, 2024 June 30, 2024 September 30, 2023
      Average
    Balance    		 Interest Average
    Yield/Cost    		 Average
    Balance    		 Interest Average
    Yield/Cost    		 Average
    Balance    		 Interest Average
    Yield/Cost
      (Dollars in thousands)
    Assets:                  
    Loans (1) $1,548,962 $17,646 4.53% $1,550,736 $17,570 4.56% $1,577,173 $16,728 4.21%
    Mortgage-backed securities  181,596  1,186 2.60%  167,219  960 2.31%  170,326  840 1.96%
    Other investment securities  173,008  1,527 3.51%  175,394  1,688 3.87%  194,953  1,507 3.07%
    FHLB stock  17,666  406 9.15%  17,223  447 10.44%  21,047  456 8.60%
    Cash and cash equivalents  61,507  767 4.96%  51,290  627 4.92%  51,884  642 4.91%
    Total interest-earning assets  1,982,739  21,532 4.32%  1,961,862  21,292 4.37%  2,015,383  20,173 3.97%
    Non-interest earning assets  61,787      56,826      58,042    
    Total assets $2,044,526     $2,018,688     $2,073,425    
    Liabilities and shareholders' equity:                  
    NOW, savings, and money market deposits $598,048  1,925 1.28% $611,931  1,955 1.28% $684,228  2,123 1.23%
    Time deposits  688,570  7,787 4.50%  655,755  7,177 4.40%  558,252  4,911 3.49%
    Interest-bearing deposits  1,286,618  9,712 3.00%  1,267,686  9,132 2.90%  1,242,480  7,034 2.25%
    FHLB advances  347,076  2,733 3.13%  336,742  2,587 3.09%  395,359  3,263 3.27%
    Total interest-bearing liabilities  1,633,694  12,445 3.03%  1,604,428  11,719 2.94%  1,637,839  10,297 2.49%
    Non-interest bearing deposits  23,421      25,076      25,540    
    Non-interest bearing other  43,713      41,061      44,628    
    Total liabilities  1,700,828      1,670,565      1,708,007    
    Total shareholders' equity  343,698      348,123      365,418    
    Total liabilities and shareholders' equity $2,044,526     $2,018,688     $2,073,425    
    Net interest income   $9,087     $9,573     $9,876  
    Net interest rate spread (2)     1.29%     1.43%     1.48%
    Net interest margin (3)     1.82%     1.96%     1.94%

    (1) Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans.
    (2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (3) Net interest margin represents net interest income divided by average interest-earning assets.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Analysis of Net Interest Income
    (Dollars in Thousands) (Unaudited)
       
      Nine Months Ended September 30,
      2024 2023
      Average
    Balance    		 Interest Average
    Yield/Cost    		 Average
    Balance    		 Interest Average
    Yield/Cost
      (Dollars in thousands)
    Assets:            
    Loans (1) $1,551,734 $52,408 4.50% $1,571,204 $48,778 4.15%
    Mortgage-backed securities  169,765  3,022 2.37%  174,742  2,789 2.13%
    Other investment securities  177,455  4,867 3.65%  197,522  4,523 3.06%
    FHLB stock  18,335  1,345 9.77%  21,343  1,106 6.93%
    Cash and cash equivalents  54,810  2,024 4.92%  46,363  1,574 4.54%
    Total interest-earning assets  1,972,099  63,666 4.30%  2,011,174  58,770 3.91%
    Non-interest earning assets  59,245      56,762    
    Total assets $2,031,344     $2,067,936    
    Liabilities and shareholders' equity:            
    NOW, savings, and money market deposits $608,677 $5,816 1.27% $753,419 $6,350 1.13%
    Time deposits  654,639  21,441 4.36%  472,866  10,011 2.83%
    Interest-bearing deposits  1,263,316  27,257 2.87%  1,226,285  16,361 1.78%
    FHLB advances  352,544  8,332 3.15%  395,800  9,686 3.27%
    Total interest-bearing liabilities  1,615,860  35,589 2.93%  1,622,085  26,047 2.15%
    Non-interest bearing deposits  24,992      23,092    
    Non-interest bearing other  42,120      44,572    
    Total liabilities  1,682,972      1,689,749    
    Total shareholders' equity  348,372      378,187    
    Total liabilities and shareholders' equity $2,031,344     $2,067,936    
    Net interest income   $28,077     $32,723  
    Net interest rate spread (2)     1.37%     1.76%
    Net interest margin (3)     1.90%     2.18%

    (1) Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans.
    (2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (3) Net interest margin represents net interest income divided by average interest-earning assets.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Supplemental Information - Non-GAAP Financial Measures
    (Unaudited)

    This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Blue Foundry's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Blue Foundry's financial results. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Blue Foundry strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

    Net income, as presented in the Consolidated Statements of Operations, includes the provision for credit losses and income tax expense, while pre-provision net revenue does not.

      Three months ended
      September 30,
    2024    		 June 30, 2024 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023
      (Dollars in thousands, except per share data)
    Pre-provision net revenue and efficiency ratio:        
    Net interest income $9,087  $9,573  $9,417  $9,196  $9,876 
    Other income  387   536   451   572   369 
    Total revenue  9,474   10,109   9,868   9,768   10,245 
    Operating expenses  13,267   13,215   13,242   12,543   12,394 
    Pre-provision net loss $(3,793) $(3,106) $(3,374) $(2,775) $(2,149)
    Efficiency ratio  140.0%  130.7%  134.2%  128.4%  121.0%
               
    Core deposits:          
    Total deposits $1,318,670  $1,311,156  $1,291,184  $1,244,904  $1,253,104 
    Less: time deposits  701,262   671,478   642,372   596,624   572,384 
    Core deposits $617,408  $639,678  $648,812  $648,280  $680,720 
    Core deposits to total deposits  46.8%  48.8%  50.2%  52.1%  54.3%
               
    Total assets $2,055,093  $2,045,452  $2,027,787  $2,044,963  $2,101,055 
    Less: intangible assets  300   386   473   557   644 
    Tangible assets $2,054,793  $2,045,066  $2,027,314  $2,044,406  $2,100,411 
               
    Tangible equity:          
    Shareholders’ equity $339,299  $345,597  $350,156  $355,640  $359,149 
    Less: intangible assets  300   386   473   557   644 
    Tangible equity $338,999  $345,211  $349,683  $355,083  $358,505 
               
    Tangible equity to tangible assets  16.50%  16.88%  17.25%  17.37%  17.07%
               
    Tangible book value per share:          
    Tangible equity $338,999  $345,211  $349,683  $355,083  $358,505 
    Shares outstanding  22,990,908   23,505,357   23,958,888   24,509,950   25,174,412 
    Tangible book value per share $14.74  $14.69  $14.60  $14.49   14.24 

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