Blue Foundry Bancorp Reports Third Quarter 2024 Results

Источник: Nasdaq GlobeNewswire / 23 окт 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	%

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

Blue Foundry Bancorp Reports Third Quarter 2024 Results

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