New Zealand markets closed
  • NZX 50

    12,036.05
    +12.59 (+0.10%)
     
  • NZD/USD

    0.6496
    +0.0003 (+0.05%)
     
  • NZD/EUR

    0.5971
    +0.0016 (+0.28%)
     
  • ALL ORDS

    7,709.50
    +21.50 (+0.28%)
     
  • ASX 200

    7,493.80
    +25.50 (+0.34%)
     
  • OIL

    79.38
    -1.63 (-2.01%)
     
  • GOLD

    1,927.60
    -2.40 (-0.12%)
     
  • NASDAQ

    12,166.60
    +115.12 (+0.96%)
     
  • FTSE

    7,765.15
    +4.04 (+0.05%)
     
  • Dow Jones

    33,978.08
    +28.67 (+0.08%)
     
  • DAX

    15,150.03
    +17.18 (+0.11%)
     
  • Hang Seng

    22,688.90
    +122.12 (+0.54%)
     
  • NIKKEI 225

    27,382.56
    +19.81 (+0.07%)
     
  • NZD/JPY

    84.3220
    -0.0920 (-0.11%)
     

Blue Foundry Bancorp Reports Fourth Quarter and Year-End 2022 Results

Blue Foundry Bancorp
Blue Foundry Bancorp

RUTHERFORD, N. J. , Jan. 25, 2023 (GLOBE NEWSWIRE) -- Blue Foundry Bancorp (NASDAQ:BLFY) (the “Company”), the holding company for Blue Foundry Bank (the “Bank”), today reported net income of $2.4 million, or $0.09 per diluted common share, for the year ended December 31, 2022 compared to a net loss of $36.3 million for the year ended December 31, 2021.

Net income was $562 thousand, or $0.02 per diluted common share, for the three months ended December 31, 2022 compared to $1.2 million, or $0.05 per diluted common share, for the three months ended September 30, 2022, and a net loss of $19.6 million, or $(0.75) per diluted common share, for the three months ended December 31, 2021.

James D. Nesci, President and Chief Executive Officer, commented, “Our fourth quarter was highlighted by continued strong loan growth. In 2022, consistently robust and diverse loan production drove a 20% increase in gross loans. Additionally, the Company’s focus on attracting customers to our suite of consumer-friendly deposit products led to a 13% annual increase in core deposits.”

He continued, “While today’s economic environment remains difficult, we are steadfast in executing on our strategic priorities. We are also committed to the underwriting standards that have resulted in consistently strong asset quality, and both our bank and holding company remain well capitalized.”

Highlights for the fourth quarter of 2022:

  • Gross loans grew by $51.3 million, or 3.4%, compared to the linked quarter, led by growth in commercial portfolios.

  • Loan originations totaled $68.2 million for the quarter, and included originations of $35.4 million in non-residential loans, and $24.2 million in multifamily loans.

  • Total deposits increased $22.4 million, or 1.8%, compared to the linked quarter, driven by growth in time deposits.

  • Non-interest expense, excluding the provision for commitments and letters of credit, decreased $427 thousand, or 3.2%, compared to the linked quarter.

  • Net interest income for the quarter was $12.9 million, a decrease of $888 thousand, or 6.4%, compared to the prior quarter, and an increase of $590 thousand, or 4.8%, compared to the prior year quarter.

  • Net interest margin was 2.62%, a 22 basis point decrease compared to the linked quarter and a one basis point decrease from the prior year quarter.

  • The Company recorded a release of provision for loan losses of $224 thousand and a release of provision for commitments and letters of credit of $203 thousand.

  • During the quarter, 632,073 shares were repurchased at a weighted average cost of $12.40. 1,298,762 shares have been repurchased as of December 31, 2022, representing 46% of the stock authorized for repurchase under the Company’s initial stock repurchase program announced in July 2022.

  • Tangible book value per share increased 19 cents to $14.28.

Lending Franchise

The Company continues to diversify its lending franchise by focusing on growing the commercial portfolio. During the fourth quarter of 2022, gross loans increased by $51.3 million primarily due to strong growth within the Company’s non-residential and multifamily portfolios.

The details of the loan portfolio are below:

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

 

December 31,
2021

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

Residential one-to-four family

$

594,521

 

 

$

591,728

 

 

$

590,151

 

 

$

579,083

 

 

$

560,976

 

Multifamily

 

690,278

 

 

 

679,474

 

 

 

579,183

 

 

 

517,037

 

 

 

515,240

 

Non-residential real estate

 

216,394

 

 

 

185,450

 

 

 

211,683

 

 

 

187,310

 

 

 

141,561

 

Construction and land

 

17,990

 

 

 

12,981

 

 

 

21,010

 

 

 

18,613

 

 

 

23,419

 

Junior liens

 

18,477

 

 

 

16,653

 

 

 

16,421

 

 

 

18,071

 

 

 

18,464

 

Commercial and industrial (including PPP)

 

4,682

 

 

 

4,738

 

 

 

5,957

 

 

 

16,201

 

 

 

21,563

 

Consumer and other

 

38

 

 

 

39

 

 

 

47

 

 

 

37

 

 

 

87

 

Total gross loans

 

1,542,380

 

 

 

1,491,063

 

 

 

1,424,452

 

 

 

1,336,352

 

 

 

1,281,310

 

Deferred fees, costs, premiums and discounts, net

 

2,747

 

 

 

3,374

 

 

 

3,821

 

 

 

5,134

 

 

 

6,299

 

Total loans

 

1,545,127

 

 

 

1,494,437

 

 

 

1,428,273

 

 

 

1,341,486

 

 

 

1,287,609

 

Allowance for loan losses

 

(13,400

)

 

 

(13,600

)

 

 

(14,050

)

 

 

(13,465

)

 

 

(14,425

)

Loans receivable, net

$

1,531,727

 

 

$

1,480,837

 

 

$

1,414,223

 

 

$

1,328,021

 

 

$

1,273,184

 

The commercial and industrial portfolio includes Paycheck Protection Program (PPP) loans, net of deferred fees, which totaled $477 thousand at December 31, 2022, $557 thousand at September 30, 2022, $2.0 million at June 30, 2022, $8.1 million at March 31, 2022, and $16.8 million at December 31, 2021.

Retail Banking Franchise

As of December 31, 2022, core deposits totaled $872.6 million, an increase of $99.4 million or 12.8% from December 31, 2021. The Company remains focused on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products.

The details of deposits are below:

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

 

December 31,
2021

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

Non-interest bearing deposits

$

49,514

 

$

59,636

 

$

52,036

 

$

45,143

 

$

44,894

NOW and demand accounts

 

399,330

 

 

385,334

 

 

455,776

 

 

425,766

 

 

363,419

Savings

 

423,758

 

 

455,979

 

 

358,166

 

 

367,177

 

 

364,932

Core deposits

 

872,602

 

 

900,949

 

 

865,978

 

 

838,086

 

 

773,245

 

 

 

 

 

 

 

 

 

 

Time deposits

 

416,260

 

 

365,548

 

 

430,696

 

 

444,936

 

 

473,795

Total deposits

$

1,288,862

 

$

1,266,497

 

$

1,296,674

 

$

1,283,022

 

$

1,247,040


Financial Performance Overview:

Fourth quarter of 2022 compared to the fourth quarter of 2021

Net interest income compared to the fourth quarter of 2021:

  • Net interest income was $12.9 million, an increase of $590 thousand.

  • Net interest margin decreased one basis point to 2.62%.

  • Yield on average interest-earning assets increased 52 basis points to 3.55%.

  • Cost of average interest-bearing deposits increased 48 basis points to 0.82%, reflecting the competitive rate environment in our primary market.

  • Average loans increased by $235.2 million and average interest-bearing deposits decreased by $6.7 million.

Non-interest expense compared to the fourth quarter of 2021:

  • Non-interest expense was $12.9 million, a decrease of $4.5 million driven by the absence in the 2022 quarter of non-recurring expenses of: a $2.0 million loss on pension withdrawal and $755 thousand in debt extinguishment costs.

  • Excluding non-recurring items referenced above, non-interest expense decreased $1.8 million. Fees for professional services declined $872 thousand and advertising costs declined $728 thousand as management focused on reducing discretionary expenses. The provision for commitments and letters of credit was also lower by $351 thousand. These decreases were partially offset by an increase of $599 thousand in compensation and benefits costs which included expenses related to equity grants.

Income tax expense compared to the fourth quarter of 2021:

  • Income tax expense was $164 thousand compared to $16.1 million for the prior year quarter. The 22.5% effective tax rate for the quarter reflects discrete state and federal tax items recognized in the fourth quarter, however, management expects the effective tax rate to remain near 10% for the near future. The Company had previously established and continues to maintain a full valuation allowance on its deferred tax assets. Although the Company had a loss before income tax in the prior year quarter, the tax expense recorded in that period reflects the impact of the initial recognition of the full valuation allowance on the Company’s deferred tax assets.

Year ended December 31, 2022 compared to the year ended December 31, 2021

Net interest income compared to the year ended December 31, 2021:

  • Net interest income was $51.8 million, an increase of $8.9 million.

  • Net interest margin increased by 52 basis points to 2.73%.

  • Yield on average interest-earning assets increased 40 basis points to 3.28%.

  • Cost of average interest-bearing deposits decreased 14 basis points to 0.47%, due to a shift to core deposits partially offset by the competitive rate environment in our primary market.

  • Average loans increased by $132.6 million and average interest-bearing deposits decreased by $61.6 million.

Non-interest expense compared to the year ended December 31, 2021:

  • Non-interest expense was $52.8 million, a decrease of $21.9 million driven by the absence in 2022 of non-recurring expenses of: a $11.2 million loss on pension withdrawal, a $9.0 million charitable contribution, and $2.2 million in debt extinguishment costs.

  • Excluding non-recurring items referenced above, non-interest expense increased $464 thousand. An increase of $3.5 million in compensation and benefits costs was driven by raises, hiring, an increase in cash incentive compensation expense, and costs associated with equity grants made under the shareholder-approved equity incentive plan. In addition, the costs associated with being a public company increased $1.0 million in 2022. These increases were partially offset by a reduction of $1.3 million in advertising and $1.2 million in data processing, and a lower provision for commitments and letters of credit of $1.0 million.

Income tax expense compared to the year ended December 31, 2021:

  • Income tax expense was $338 thousand compared to $9.6 million for the prior year period. The year-to-date effective tax rate of 12.4% reflects the Company’s current tax position. The Company had previously established and continues to maintain a full valuation allowance on its deferred tax assets. Although the Company had a loss before income tax in the prior year, the tax expense recorded in that year reflects the impact of the initial recognition of the full valuation allowance on the Company’s deferred tax assets.

Balance Sheet Summary:

December 31, 2022 compared to December 31, 2021

Cash and cash equivalents:

  • Cash and cash equivalents decreased $152.3 million compared to December 31, 2021 as the Company deployed cash primarily into higher yielding loans and securities.

Securities available-for-sale:

  • Securities available-for-sale decreased $10.6 million to $314.2 million as purchases of securities were more than offset by the fair value decline in the portfolio, as well as amortization and calls.

  • The rising rate environment contributed to a $37.3 million decline in the net unrealized position of the portfolio.

Gross loans:

  • Gross loans held for investment increased $261.1 million to $1.54 billion. Excluding PPP, gross loans increased by $277.9 million.

  • Multifamily loans increased $175.0 million, non-residential real estate loans increased $74.8 million, and residential loans increased $33.5 million.

  • Originations totaled $488.2 million, including originations of $285.4 million in multifamily loans, $128.7 million in non-residential real estate loans, and $44.1 million in construction loans. In addition, $106.1 million of conforming residential mortgages in New Jersey were purchased during the period.

Deposits and borrowings:

  • Deposits totaled $1.29 billion, an increase of $41.8 million since December 31, 2021. Core deposits represented 67.7% of total deposits compared to 62.0% at December 31, 2021.

  • FHLB borrowings increased by $125.0 million to $310.5 million to support loan growth.

Capital:

  • Shareholders’ equity decreased by $35.8 million to $393.7 million. The decrease was primarily driven by a $24.3 million reduction in accumulated other comprehensive income reflecting the net impact that the interest rate environment had on the Company’s available-for-sale securities and the swap agreements used in its cash flow hedges. The Company also repurchased 1,298,762 of its shares at a cost of $15.6 million. 299,481of the shares repurchased were used to fund the shareholder-approved restricted stock grants. These decreases were partially offset by net income of $2.4 million.

  • Tangible equity to tangible assets was 19.24% and tangible common equity per share outstanding was $14.28.

  • The Bank’s capital ratios remain above the FDIC’s “well capitalized” standards.

Asset quality:

  • Non-performing loans totaled $7.8 million, or 0.50% of total loans compared to $12.0 million, or 0.94% of total loans at December 31, 2021.

  • The allowance for loan losses represented 0.87% of total loans compared to 1.13% at December 31, 2021. The allowance for loan losses was 172.52% of non-performing loans compared to 120.38% at December 31, 2021.

  • The Company recorded a net release of provision for loan losses of $224 thousand for the quarter ended December 31, 2022 and $1.0 million for the year ended December 31, 2022 driven by significant pay downs within the construction and land portfolio, partially offset by growth in our multifamily portfolio.

  • Net recoveries were $24 thousand for the quarter ended December 31, 2022 and for the year ended December 31, 2022 net charge-offs were $24 thousand.

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, Morris, Passaic and Somerset 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 discussing Blue Foundry’s fourth quarter and year ended December 31, 2022 financial results will be held today, Wednesday, January 25, 2023 at 11:00 a.m. (EST). To listen to the live call, please dial 1-833-927-1758 (toll free), 1-646-904-5544 (local) or 1-929-526-1599 (all other locations) and use access code 372166. The webcast (audio only) will be available on 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

BLUE FOUNDRY BANCORP AND SUBSIDIARY
Consolidated Statements of Financial Condition

 

December 31,
2022

 

September 30, 2022

 

December 31,
2021

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

(In thousands)

ASSETS

 

 

 

 

 

Cash and cash equivalents

$

41,182

 

$

57,324

 

$

193,446

Securities available for sale, at fair value

 

314,248

 

 

321,320

 

 

324,892

Securities held to maturity (fair value of $29,115, $26,344 and $22,849 at December 31, 2022, September 30, 2022 and December 31, 2021, respectively)

 

33,705

 

 

30,749

 

 

23,281

Other investments

 

16,069

 

 

15,432

 

 

10,182

Loans, net

 

1,531,727

 

 

1,480,837

 

 

1,273,184

Interest and dividends receivable

 

6,893

 

 

6,431

 

 

5,372

Premises and equipment, net

 

29,825

 

 

29,992

 

 

28,126

Right-of-use assets

 

25,906

 

 

25,537

 

 

25,457

Bank owned life insurance

 

21,576

 

 

22,012

 

 

21,662

Other assets

 

22,207

 

 

22,284

 

 

8,609

Total assets

$

2,043,338

 

$

2,011,918

 

$

1,914,211

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Liabilities

 

 

 

 

 

Deposits

$

1,288,862

 

$

1,266,497

 

$

1,247,040

Advances from the Federal Home Loan Bank

 

310,500

 

 

295,500

 

 

185,500

Advances by borrowers for taxes and insurance

 

9,302

 

 

10,926

 

 

9,582

Lease liabilities

 

27,324

 

 

26,875

 

 

26,696

Other liabilities

 

13,632

 

 

14,782

 

 

15,922

Total liabilities

 

1,649,620

 

 

1,614,580

 

 

1,484,740

 

 

 

 

 

 

Shareholders’ equity

 

393,718

 

 

397,338

 

 

429,471

Total liabilities and shareholders’ equity

$

2,043,338

 

$

2,011,918

 

$

1,914,211

 

 

 

 

 

 

BLUE FOUNDRY BANCORP AND SUBSIDIARY
Consolidated Statements of Operations
(Dollars in thousands except per share data) (Unaudited)

 

Three months ended

 

Year Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

December 31,
2022

 

September 30,
2022

 

December 31,
2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

(Unaudited)

 

(Audited)

Interest income:

 

 

 

 

 

 

 

 

 

Loans

$

14,487

 

 

$

13,692

 

 

$

12,357

 

 

$

52,279

 

 

$

48,719

 

Taxable investment income

 

2,970

 

 

 

2,571

 

 

 

1,757

 

 

 

9,678

 

 

 

6,821

 

Non-taxable investment income

 

112

 

 

 

109

 

 

 

121

 

 

 

456

 

 

 

513

 

Total interest income

 

17,569

 

 

 

16,372

 

 

 

14,235

 

 

 

62,413

 

 

 

56,053

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

2,482

 

 

 

1,424

 

 

 

1,036

 

 

 

5,738

 

 

 

7,884

 

Borrowed funds

 

2,160

 

 

 

1,133

 

 

 

863

 

 

 

4,832

 

 

 

5,220

 

Total interest expense

 

4,642

 

 

 

2,557

 

 

 

1,899

 

 

 

10,570

 

 

 

13,104

 

Net interest income

 

12,927

 

 

 

13,815

 

 

 

12,336

 

 

 

51,843

 

 

 

42,949

 

Release of provision for loan losses

 

(224

)

 

 

(419

)

 

 

(819

)

 

 

(1,001

)

 

 

(2,518

)

Net interest income after provision for loan losses

 

13,151

 

 

 

14,234

 

 

 

13,155

 

 

 

52,844

 

 

 

45,467

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Fees and service charges

 

341

 

 

 

650

 

 

 

565

 

 

 

2,156

 

 

 

1,975

 

Gain (loss) on securities, net

 

 

 

 

 

 

 

(1

)

 

 

14

 

 

 

(1

)

Other income

 

103

 

 

 

149

 

 

 

140

 

 

 

494

 

 

 

505

 

Total non-interest income

 

444

 

 

 

799

 

 

 

704

 

 

 

2,664

 

 

 

2,479

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

7,620

 

 

 

7,433

 

 

 

7,021

 

 

 

29,247

 

 

 

25,755

 

Loss on pension withdrawal

 

 

 

 

 

 

 

1,974

 

 

 

 

 

 

11,206

 

Occupancy and equipment

 

1,909

 

 

 

1,921

 

 

 

2,080

 

 

 

7,625

 

 

 

7,929

 

Data processing

 

1,324

 

 

 

1,559

 

 

 

1,501

 

 

 

5,754

 

 

 

6,933

 

Debt extinguishment costs

 

 

 

 

 

 

 

754

 

 

 

 

 

 

2,155

 

Advertising

 

68

 

 

 

125

 

 

 

795

 

 

 

1,061

 

 

 

2,390

 

Professional services

 

838

 

 

 

1,012

 

 

 

1,709

 

 

 

4,117

 

 

 

4,528

 

(Release of) provision for commitments and letters of credit

 

(203

)

 

 

170

 

 

 

148

 

 

 

(311

)

 

 

689

 

Federal deposit insurance premiums

 

105

 

 

 

98

 

 

 

110

 

 

 

381

 

 

 

494

 

Contribution to Blue Foundry Charitable Foundation

 

 

 

 

 

 

 

 

 

 

 

 

 

9,000

 

Other expense

 

1,208

 

 

 

1,351

 

 

 

1,288

 

 

 

4,900

 

 

 

3,591

 

Total non-interest expenses

 

12,869

 

 

 

13,669

 

 

 

17,380

 

 

 

52,774

 

 

 

74,670

 

Income (loss) before income tax expense

 

726

 

 

 

1,364

 

 

 

(3,521

)

 

 

2,734

 

 

 

(26,724

)

Income tax expense

 

164

 

 

 

123

 

 

 

16,103

 

 

 

338

 

 

 

9,618

 

Net income (loss)

$

562

 

 

$

1,241

 

 

$

(19,624

)

 

$

2,396

 

 

$

(36,342

)

Basic and diluted earnings (loss) per share

$

0.02

 

 

$

0.05

 

 

$

(0.75

)

 

$

0.09

 

 

$

(2.99

)

Weighted average shares outstanding-basic

 

25,713,534

 

 

 

26,128,851

 

 

 

26,307,456

 

 

 

26,165,841

 

 

 

12,171,050

 

Weighted average shares outstanding-diluted

 

26,013,015

 

 

 

26,246,039

 

 

 

26,307,456

 

 

 

26,270,864

 

 

 

12,171,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BLUE FOUNDRY BANCORP AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in thousands except for share data) (Unaudited)

 

Three months ended

 

 

 

 

 

 

 

 

 

 

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

 

December 31,
2021

Performance Ratios (%)

 

 

 

 

 

 

 

 

 

Return (loss) on average assets

 

0.11

 

 

 

0.25

 

 

0.01

 

 

0.12

 

 

(3.97

)

Return (loss) on average equity

 

0.56

 

 

 

1.20

 

 

0.04

 

 

0.52

 

 

(17.36

)

Interest rate spread (1)

 

2.35

 

 

 

2.68

 

 

2.71

 

 

2.50

 

 

2.50

 

Net interest margin (2)

 

2.62

 

 

 

2.84

 

 

2.83

 

 

2.62

 

 

2.63

 

Efficiency ratio (non-GAAP) (3)

 

97.76

 

 

 

92.37

 

 

96.13

 

 

104.04

 

 

110.59

 

Average interest-earning assets to average interest-bearing liabilities

 

128.30

 

 

 

130.30

 

 

131.52

 

 

131.77

 

 

132.04

 

Tangible equity to tangible assets (4)

 

19.24

 

 

 

19.72

 

 

20.97

 

 

21.68

 

 

22.42

 

Book value per share (5)

$

14.30

 

 

$

14.11

 

$

14.46

 

$

14.73

 

$

15.06

 

Tangible book value per share (5)

$

14.28

 

 

$

14.09

 

$

14.43

 

$

14.72

 

$

15.04

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

Non-performing loans

$

7,767

 

 

$

8,409

 

$

9,998

 

$

10,482

 

$

11,983

 

Real estate owned, net

$

 

 

$

 

$

 

$

 

$

 

Non-performing assets

$

7,767

 

 

$

8,409

 

$

9,998

 

$

10,482

 

$

11,983

 

Allowance for loan losses to total loans (%)

 

0.87

 

 

 

0.91

 

 

0.98

 

 

1.00

 

 

1.13

 

Allowance for loan losses to non-performing loans (%)

 

172.52

 

 

 

161.73

 

 

140.53

 

 

128.46

 

 

120.38

 

Non-performing loans to total loans (%)

 

0.50

 

 

 

0.56

 

 

0.70

 

 

0.78

 

 

0.94

 

Non-performing assets to total assets (%)

 

0.38

 

 

 

0.42

 

 

0.51

 

 

0.54

 

 

0.63

 

Net charge-offs to average outstanding loans during the period (%)

 

(0.01

)

 

 

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)

 

Tangible equity equals $392.9 million, which exclude intangible assets ($798 thousand of capitalized software). Tangible assets equal $2.04 billion and excludes intangible assets.

(5)

 

Per share metrics are computed using 27,523,219 total shares outstanding.

 

 

 

BLUE FOUNDRY BANCORP AND SUBSIDIARY
Analysis of Net Interest Income
(Unaudited)

 

Three Months Ended

 

December 31, 2022

 

September 30, 2022

 

December 31, 2021

 

Average
Balance

 

Interest

 

Average
Yield/Cost

 

Average
Balance

 

Interest

 

Average
Yield/Cost

 

Average
Balance

 

Interest

 

Average
Yield/Cost

 

(Dollars in thousands)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

$

1,511,941

 

$

14,487

 

3.80

%

 

$

1,465,114

 

$

13,692

 

3.71

%

 

$

1,276,698

 

$

12,357

 

3.84

%

Mortgage-backed securities

 

187,213

 

 

1,092

 

2.31

%

 

 

197,406

 

 

1,055

 

2.12

%

 

 

160,372

 

 

708

 

1.75

%

Other investment securities

 

200,013

 

 

1,425

 

2.83

%

 

 

204,506

 

 

1,230

 

2.39

%

 

 

171,427

 

 

913

 

2.11

%

FHLB stock

 

17,225

 

 

216

 

4.96

%

 

 

13,141

 

 

139

 

4.20

%

 

 

10,549

 

 

158

 

5.96

%

Cash and cash equivalents

 

44,718

 

 

349

 

3.10

%

 

 

49,163

 

 

256

 

2.07

%

 

 

243,110

 

 

99

 

0.16

%

Total interest-bearing assets

 

1,961,110

 

 

17,569

 

3.55

%

 

 

1,929,330

 

 

16,372

 

3.37

%

 

 

1,862,156

 

 

14,235

 

3.03

%

Non-interest earning assets

 

52,258

 

 

 

 

 

 

61,264

 

 

 

 

 

 

96,592

 

 

 

 

Total assets

$

2,013,368

 

 

 

 

 

$

1,990,594

 

 

 

 

 

$

1,958,748

 

 

 

 

Liabilities and shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW, savings, and money market deposits

$

848,199

 

 

1,636

 

0.77

%

 

$

831,191

 

 

759

 

0.36

%

 

$

715,653

 

 

256

 

0.14

%

Time deposits

 

356,377

 

 

846

 

0.94

%

 

 

405,823

 

 

665

 

0.65

%

 

 

495,608

 

 

781

 

0.62

%

Interest-bearing deposits

 

1,204,576

 

 

2,482

 

0.82

%

 

 

1,237,014

 

 

1,424

 

0.46

%

 

 

1,211,261

 

 

1,037

 

0.34

%

FHLB advances

 

323,903

 

 

2,160

 

2.65

%

 

 

243,647

 

 

1,133

 

1.84

%

 

 

199,001

 

 

863

 

1.72

%

Total interest-bearing liabilities

 

1,528,479

 

 

4,642

 

1.20

%

 

 

1,480,661

 

 

2,557

 

0.69

%

 

 

1,410,262

 

 

1,900

 

0.53

%

Non-interest bearing deposits

 

42,144

 

 

 

 

 

 

49,869

 

 

 

 

 

 

43,977

 

 

 

 

Non-interest bearing other

 

47,746

 

 

 

 

 

 

48,103

 

 

 

 

 

 

56,095

 

 

 

 

Total liabilities

 

1,618,369

 

 

 

 

 

 

1,578,633

 

 

 

 

 

 

1,510,334

 

 

 

 

Total shareholders' equity

 

394,999

 

 

 

 

 

 

411,961

 

 

 

 

 

 

448,414

 

 

 

 

Total liabilities and shareholders' equity

$

2,013,368

 

 

 

 

 

$

1,990,594

 

 

 

 

 

$

1,958,748

 

 

 

 

Net interest income

 

 

$

12,927

 

 

 

 

 

$

13,815

 

 

 

 

 

$

12,335

 

 

Net interest rate spread (2)

 

 

 

 

2.35

%

 

 

 

 

 

2.68

%

 

 

 

 

 

2.50

%

Net interest margin (3)

 

 

 

 

2.62

%

 

 

 

 

 

2.84

%

 

 

 

 

 

2.63

%


(1)

 

Average loan balances are net of deferred loan fees and costs, and premiums and discounts, and include non-accrual loans.

(2)

 

Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(3)

 

Net interest margin represents net interest income divided by average interest-earning assets.

 

 

 


 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

Average
Balance

Interest

Average
Yield/Cost

 

Average
Balance

Interest

Average
Yield/Cost

 

(Dollar in thousands)

Assets:

 

 

 

 

 

 

 

Loans (1)

$

1,407,502

$

52,279

3.71

%

 

$

1,274,885

$

48,719

3.82

%

Mortgage-backed securities

 

190,540

 

3,934

2.06

%

 

 

154,882

 

2,908

1.88

%

Other investment securities

 

203,002

 

4,820

2.37

%

 

 

147,853

 

3,237

2.19

%

FHLB stock

 

12,629

 

587

4.65

%

 

 

14,373

 

744

5.17

%

Cash and cash equivalents

 

88,703

 

793

0.89

%

 

 

356,458

 

445

0.12

%

Total interest-bearing assets

 

1,902,376

 

62,413

3.28

%

 

 

1,948,451

 

56,053

2.88

%

Non-interest earning assets

 

64,786

 

 

 

 

87,443

 

 

Total assets

$

1,967,162

 

 

 

$

2,035,894

 

 

Liabilities and shareholders' equity:

 

 

 

 

 

 

 

NOW, savings, and money market deposits

$

812,473

 

2,959

0.36

%

 

$

676,697

 

1,091

0.16

%

Time deposits

 

412,734

 

2,779

0.67

%

 

 

610,092

 

6,793

1.11

%

Interest-bearing deposits

 

1,225,207

 

5,738

0.47

%

 

 

1,286,789

 

7,884

0.61

%

FHLB advances

 

235,589

 

4,832

2.05

%

 

 

280,985

 

5,220

1.86

%

Total interest-bearing liabilities

 

1,460,796

 

10,570

0.72

%

 

 

1,567,774

 

13,104

0.84

%

Non-interest bearing deposits

 

44,029

 

 

 

 

106,033

 

 

Non-interest bearing other

 

47,707

 

 

 

 

47,560

 

 

Total liabilities

 

1,552,532

 

 

 

 

1,721,367

 

 

Total shareholders' equity

 

414,630

 

 

 

 

314,527

 

 

Total liabilities and shareholders' equity

$

1,967,162

 

 

 

$

2,035,894

 

 

Net interest income

 

$

51,843

 

 

 

$

42,949

 

Net interest rate spread (2)

 

 

2.56

%

 

 

 

2.04

%

Net interest margin (3)

 

 

2.73

%

 

 

 

2.20

%


(1)

 

Average loan balances are net of deferred loan fees and costs, and premiums and discounts, and include non-accrual loans.

(2)

 

Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(3)

 

Net interest margin represents net interest income divided by average interest-earning assets.

 

 

 

BLUE FOUNDRY BANCORP AND SUBSIDIARY
Adjusted Pre-Provision Net Revenue (Non-GAAP)
(Dollars in thousands except per share data) (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 loan losses, provision for commitments and letters of credit, and income tax expense while pre-provision net revenue does not.

 

Three months ended

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

 

December 31,
2021

 

 

 

 

 

 

 

 

 

 

 

 

Pre-provision net revenue (PPNR) and efficiency ratio, as adjusted:

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

12,927

 

 

$

13,815

 

 

$

13,162

 

 

$

11,939

 

 

$

12,336

 

Other income

 

444

 

 

 

799

 

 

 

494

 

 

 

927

 

 

 

704

 

Operating expenses, as reported

 

12,869

 

 

 

13,669

 

 

 

13,019

 

 

 

13,216

 

 

 

17,380

 

Less: Fee on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

 

 

754

 

Less: Loss on pension withdrawal

 

 

 

 

 

 

 

 

 

 

 

 

 

1,974

 

Less: Provision for commitments and letters of credit

 

(203

)

 

 

170

 

 

 

(108

)

 

 

(170

)

 

 

148

 

Less: Loss on assets held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

83

 

Operating expenses, as adjusted

 

13,072

 

 

 

13,499

 

 

 

13,127

 

 

 

13,386

 

 

 

14,421

 

Pre-provision net revenue (loss), as adjusted

$

299

 

 

$

1,115

 

 

$

529

 

 

$

(520

)

 

$

(1,381

)

Efficiency ratio, as adjusted

 

97.8

%

 

 

92.4

%

 

 

96.1

%

 

 

104.0

%

 

 

110.6

%

 

 

 

 

 

 

 

 

 

 

Core deposits:

 

 

 

 

 

 

 

 

 

Total deposits

$

1,288,862

 

 

$

1,266,497

 

 

$

1,296,674

 

 

$

1,283,022

 

 

$

1,247,040

 

Less: time deposits

 

416,260

 

 

 

365,548

 

 

 

430,696

 

 

 

444,936

 

 

 

473,795

 

Core deposits

$

872,602

 

 

$

900,949

 

 

$

865,978

 

 

$

838,086

 

 

$

773,245

 

Core deposits to total deposits

 

67.7

%

 

 

71.1

%

 

 

66.8

%

 

 

65.3

%

 

 

62.0

%

 

 

 

 

 

 

 

 

 

 

Tangible equity:

 

 

 

 

 

 

 

 

 

Shareholders’ equity (1) (2)

$

393,718

 

 

$

397,338

 

 

$

412,293

 

 

$

420,214

 

 

$

429,472

 

Less: intangible assets

 

798

 

 

 

760

 

 

 

630

 

 

 

452

 

 

 

437

 

Tangible equity

$

392,920

 

 

$

396,578

 

 

$

411,663

 

 

$

419,762

 

 

$

429,035

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share:

 

 

 

 

 

 

 

 

 

Tangible equity

$

392,920

 

 

$

396,578

 

 

$

411,663

 

 

$

419,762

 

 

$

429,035

 

Shares outstanding

 

27,523,219

 

 

 

28,155,292

 

 

 

28,522,500

 

 

 

28,522,500

 

 

 

28,522,500

 

Tangible book value per share

$

14.28

 

 

$

14.09

 

 

$

14.43

 

 

$

14.72

 

 

$

15.04

 


(1)

 

The Company recorded a deferred tax asset valuation allowance of $16.8 million as of December 31, 2021.

(2)

 

Accumulated other comprehensive income (AOCI) declined by $24.3 million in 2022, largely a result of the rising rate environment which negatively impacted the fair value of the Company’s available-for-sale investment portfolio.