Core Points - Blue Foundry Bancorp reported a net loss of $2.7 million for Q1 2025, consistent with the previous quarter and slightly improved from a loss of $2.8 million in Q1 2024 [1][6][35] - The company experienced a 27 basis points increase in net interest margin, reaching 2.16%, driven by improved yields on assets and reduced costs of liabilities [2][12] - Total loans increased by $42.2 million to $1.63 billion, with significant growth in commercial real estate and consumer loan portfolios [4][22] - Deposits rose by $43.9 million to $1.39 billion, with a notable increase in NOW and demand accounts [6][7][22] Financial Performance - Interest income for Q1 2025 was $22.7 million, a 4.3% increase from the previous quarter, while interest expense decreased by 2.8% to $12.0 million [6][12] - The provision for credit losses was $201 thousand, reflecting an increase in the commercial real estate portfolio [6][29] - Non-performing loans totaled $5.7 million, representing 0.35% of total loans, an increase from 0.33% in the previous quarter [29][36] Loan and Deposit Details - The consumer loan portfolio increased by $34.3 million, while the commercial real estate portfolio grew by $28.5 million [4][22] - Core deposits accounted for 47.6% of total deposits, slightly up from 47.3% at the end of 2024 [22] - Brokered deposits increased to $205 million, supplementing the reduction in retail time deposits [22] Capital and Asset Quality - Tangible book value per share increased to $14.81, while shareholders' equity decreased to $326.7 million due to share repurchases and year-to-date losses [2][22] - The allowance for credit losses on loans was 0.81%, with a coverage ratio of 229.81% for non-performing loans [29][36] - The company's capital ratios remain above the FDIC's "well capitalized" standards [23]

Core Points - Blue Foundry Bancorp will release its financial results for the quarter ended March 31, 2025, on April 30, 2025 [1] - A conference call for investors and analysts will be held on the same day at 11:00 AM (ET) to discuss the earnings [2] - Participants are encouraged to pre-register for the webcast call [3] Company Overview - Blue Foundry Bancorp is the holding company for Blue Foundry Bank, headquartered in Rutherford, NJ, with a presence in several counties [4] - The bank offers tailored products and services to individuals and businesses, emphasizing its commitment to the community [4] - Blue Foundry Bank has a history of over 145 years, highlighting its longstanding dedication to customers [4]

Credit Risk and Loan Performance - As of December 31, 2024, the company's allowance for credit losses on loans was 0.83% of total loans and 254.02% of non-performing loans [175]. - The company's non-performing assets totaled $5.1 million, representing 0.25% of total assets as of December 31, 2024 [177]. - The company may face increased loan delinquencies and problem assets due to adverse economic conditions [189]. - The company is vulnerable to local economic downturns due to the geographic concentration of its loan portfolio primarily in New Jersey [186]. Investment Portfolio and Interest Rate Sensitivity - The investment portfolio was approximately $330.1 million, with $297.0 million classified as available-for-sale and $33.2 million as held-to-maturity [185]. - An instantaneous 200 basis point increase in market interest rates would decrease the company's net portfolio value by $70.1 million [172]. - A 100 basis point increase in interest rates would result in a 19% decrease in the company's net present value (NPV) [291]. - The company's net interest income sensitivity analysis shows a potential increase of $48,719 thousand (2.5%) with a 200 basis point increase in interest rates [289]. - The company has entered into derivative financial instruments with an aggregate notional amount of $349.0 million to manage interest rate volatility [284]. - The company utilizes a third-party modeling program to evaluate interest rate risk and assess liquidity requirements on a quarterly basis [281]. Business Strategy and Growth Challenges - The company intends to increase its commercial real estate and commercial loan originations, which will elevate lending risk [173]. - The company plans to grow its assets and deposits, but faces challenges in attracting customers from competitors and managing growth effectively [194]. - New de novo branches may increase expenses faster than revenues, impacting earnings until sufficient deposits and loans are generated [195]. - The company is investing in new lines of business and products, but faces risks related to market acceptance and regulatory compliance [196]. Regulatory and Compliance Issues - The company is subject to extensive regulation, which may increase operational costs and affect business operations [216]. - The company expects increased expenses due to the obligations of being a public company, including substantial public reporting requirements [213]. - The company may need to hire additional compliance and accounting staff to meet public company requirements, which could increase operating expenses [213]. Operational Risks and Management - The company relies on third-party vendors for operations, which exposes it to operational and information security risks [208]. - The management team is crucial for implementing the business strategy, and the loss of key personnel could adversely affect operations [210]. - Cybersecurity risks are increasing, and while the Board oversees risk management, reliance on management and consultants remains significant [211]. - Changes in management's estimates and assumptions could materially impact the company's consolidated financial statements [220]. Economic Environment and Market Conditions - Inflation remained above the Federal Reserve's 2% target throughout 2024, posing risks to consumer purchasing power and business loan repayments [191]. - Approximately $108 million, or 6.8% of total loans, are in New York multifamily loans affected by rent stabilization or rent control regulations [222]. - Competition in the financial services industry is intense, with larger competitors able to offer better pricing and a broader range of services [198]. - A lack of liquidity could adversely affect the company's financial condition and results of operations, impacting its ability to fund operations [188]. - The company utilizes stress analysis during underwriting to mitigate risks associated with adjustable-rate loans in a rising interest rate environment [178].

Financial Data and Key Metrics Changes - The company reported a quarterly net loss of $2.7 million, an improvement from a net loss of $4 million in the prior quarter [3][7] - Net interest income increased by $386,000, leading to a 7 basis point improvement in net interest margin [7][8] - Tangible book value per share remained flat at $14.74 [6] Business Line Data and Key Metrics Changes - Gross loans increased by $32.5 million during the quarter, predominantly in owner-occupied commercial real estate [10] - The yield on loans improved by 4 basis points to 4.57% [8] - The company funded $59 million of loans during the quarter, yielding approximately 7.5% [5] Market Data and Key Metrics Changes - Deposits grew by $25 million, with a 17% increase in non-interest bearing accounts [3][11] - Non-performing assets declined modestly, with non-performing assets to assets and non-performing loans to loans remaining relatively flat at 25 basis points and 33 basis points respectively [12] Company Strategy and Development Direction - The company aims to transform into a more commercially oriented institution, focusing on attracting full banking relationships with small to medium-sized businesses [4] - A strategic plan is in place to develop new relationships and deepen existing ones within the communities served [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improvement in yield on interest-earning assets and cost of interest-bearing liabilities, indicating a potential inflection point in net interest margin [4] - The company expects continued balance sheet and interest income growth while remaining disciplined in underwriting standards [5] Other Important Information - The company has robust liquidity with $408 million in untapped borrowing capacity and $211 million in unencumbered available-for-sale securities and unrestricted cash [6] - The allowance for credit losses was released by $301,000, primarily due to loan growth from commitments made in the previous quarter [9][10] Q&A Session Summary Question: Loan growth expectations and multifamily sector performance - Management indicated that they are focusing on growing the commercial book and are monitoring concentration limits in the multifamily space [15] Question: Pipeline activity and future growth - Management noted an improvement in the pipeline, with $60 million of commercial loans in letters of intent [16] Question: Deposit cost progression and margin expectations - Management reported a decrease in deposit costs to 2.9% and anticipates further improvements as rates trend lower [17][19] Question: Expense guidance for 2025 - Management expects operating expenses to remain in the mid to high $13 million range for 2025 [28] Question: Variable compensation metrics for 2025 - The compensation metrics are aligned with growth in loans, deposits, and net interest margin [30] Question: Construction portfolio yields - The yields on the construction portfolio are expected to be between 50 to 100 basis points above the prime rate [31]

Core Viewpoint - Blue Foundry Bancorp reported a quarterly loss of $0.13 per share, which was better than the Zacks Consensus Estimate of a loss of $0.17, indicating a positive earnings surprise of 23.53% [1] Financial Performance - The company posted revenues of $9.89 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.67%, but showing a slight increase from $9.77 million in the same quarter last year [2] - Over the last four quarters, Blue Foundry Bancorp has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Blue Foundry Bancorp shares have declined approximately 0.2% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $10.31 million, and for the current fiscal year, it is -$0.56 on revenues of $44.98 million [7] - The estimate revisions trend for Blue Foundry Bancorp is mixed, which could change following the recent earnings report [6] Industry Context - The Banks - Northeast industry, to which Blue Foundry Bancorp belongs, is currently ranked in the top 9% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - The company reported a net loss of $11.9 million, or $0.55 per diluted common share, for the year ended December 31, 2024, compared to a net loss of $7.4 million, or $0.31 per diluted common share for the year ended December 31, 2023[2]. - The net loss for the three months ended December 31, 2024, was $2,687,000, an improvement from a net loss of $2,931,000 in the same period of 2023[41]. - Non-interest income decreased by $152 thousand, or 26.57%, compared to the fourth quarter of 2023, primarily due to the absence of gains on sales of loans and securities[15]. - Non-interest expense for the year increased by $1.0 million to $52.6 million, driven by higher compensation and benefits costs[21]. - Total non-interest expenses were $12,881,000 for the three months ended December 31, 2024, compared to $12,543,000 for the same period in 2023, representing an increase of 2.7%[41]. - The efficiency ratio (non-GAAP) improved to 130.20% for the three months ended December 31, 2024, compared to 140.04% in the previous quarter[43]. Loan and Deposit Growth - Total loans increased by $22.8 million during 2024, reaching $1.58 billion, with significant growth in commercial real estate loans ($27.1 million) and construction loans ($25.1 million) offset by declines in residential and multifamily loans[5][27]. - Total deposits increased by $98.4 million, or 7.91%, to $1.34 billion compared to December 31, 2023, primarily driven by increases in time deposits and NOW and demand accounts[8][27]. - Deposits rose to $1,343.3 million at December 31, 2024, compared to $1,244.9 million at December 31, 2023[39]. - Total deposits reached $1,343,320 million, up from $1,244,904 million a year ago, indicating a growth of 7.9%[55]. Asset Quality - Non-performing loans to total loans remained low at 0.33%, with the allowance for credit losses covering non-performing loans by over 2.5 times[4][6]. - Non-performing loans totaled $5.1 million, or 0.33% of total loans at December 31, 2024, down from $5.9 million, or 0.38% at December 31, 2023[30]. - Non-performing loans decreased to $5,104,000 as of December 31, 2024, down from $6,208,000 a year earlier, indicating improved asset quality[43]. - The allowance for credit losses on loans was 0.83% of total loans at December 31, 2024, compared to 0.91% at December 31, 2023[30]. - The allowance for credit losses on loans to total loans ratio was 0.83% as of December 31, 2024, slightly down from 0.91% a year ago[43]. Interest Income and Margin - Interest income for the fourth quarter was $21.8 million, an increase of $253 thousand, or 1.2%, compared to the prior quarter[6]. - Total interest income for the three months ended December 31, 2024, was $21,785,000, an increase of 7.1% compared to $20,335,000 for the same period in 2023[41]. - Net interest income after the release of provision for credit losses was $9,774,000 for the three months ended December 31, 2024, compared to $9,040,000 for the same period in 2023, reflecting a 8.1% increase[41]. - The net interest margin increased by seven basis points to 1.89% in the fourth quarter of 2024 compared to the previous quarter[6][11]. - The net interest margin for the three months ended December 31, 2024, was 1.89%, up from 1.84% in the same period last year[47]. - The net interest rate spread for the three months ended December 31, 2024, was 1.40%, compared to 1.33% for the same period in 2023[48]. Shareholder Equity and Capital - Shareholders' equity decreased by $23.4 million to $332.2 million, primarily due to share repurchases costing $19.4 million[30]. - Total shareholders' equity as of December 31, 2024, was $337,320,000, a decrease from $357,275,000 on December 31, 2023[47]. - Tangible equity to tangible assets was 16.11% at December 31, 2024, down from 17.37% at December 31, 2023[30]. - Tangible equity decreased to $331,954 million from $355,083 million year-over-year, reflecting a decline of 6.5%[55]. - Book value per share remained stable at $14.75 as of December 31, 2024, compared to $14.51 a year earlier[43]. Borrowings and Assets - FHLB borrowings decreased by $58.0 million to $339.5 million, with deposit growth outpacing asset growth[30]. - Total assets increased to $2,060.7 million as of December 31, 2024, from $2,044.9 million at December 31, 2023[39]. - Total assets as of December 31, 2024, were $2,054,391,000, an increase from $2,042,561,000 on December 31, 2023[47]. - Total interest-bearing assets for the three months ended December 31, 2024, were $1,992,805,000, with a total interest income of $21,785,000, resulting in a yield of 4.37%[47].

Financial Performance - The company reported a net loss of $11.9 million, or $0.55 per diluted common share, for the year ended December 31, 2024, compared to a net loss of $7.4 million, or $0.31 per diluted common share for the year ended December 31, 2023 [1] - For the three months ended December 31, 2024, the company reported a net loss of $2.7 million, or $0.13 per diluted common share, an improvement from a net loss of $4.0 million, or $0.19 per diluted common share for the three months ended September 30, 2024 [2] Loan and Deposit Growth - Gross loans increased by $22.8 million during 2024, with notable increases in commercial real estate loans ($27.1 million), construction loans ($25.1 million), and other categories, while residential loans decreased by $32.7 million [4][31] - Total deposits increased by $98.4 million, or 7.91%, from December 31, 2023, primarily due to increases in time deposits and NOW and demand accounts [8][31] Interest Income and Expenses - Interest income for the fourth quarter of 2024 was $21.8 million, an increase of $253 thousand, or 1.2%, compared to the prior quarter [6] - Interest expense for the quarter was $12.3 million, a decrease of $133 thousand, or 1.1%, compared to the prior quarter [6] Credit Quality - The allowance for credit losses on loans was 0.83% of total loans at December 31, 2024, compared to 0.91% at December 31, 2023, indicating improved credit quality [38] - Non-performing loans totaled $5.1 million, or 0.33% of total loans at December 31, 2024, down from $5.9 million, or 0.38% at December 31, 2023 [38] Shareholder Equity and Capital Ratios - Shareholders' equity decreased by $23.4 million to $332.2 million, primarily due to share repurchases and year-to-date losses [31] - Tangible equity to tangible assets was 16.11% at December 31, 2024, down from 17.37% at December 31, 2023 [31]

Core Viewpoint - Blue Foundry Bancorp will release its financial results for the fourth quarter and year-end 2024 on January 29, 2025, with a conference call scheduled for the same day to discuss the results and address questions from analysts [1][2]. Group 1 - The financial results will be available on the Company's website and the SEC's website [1]. - A conference call for investors and analysts will take place at 11:00 AM (ET) on January 29, 2025 [2]. - Participants are encouraged to pre-register for the webcast call to receive confirmation and calendar invitations [3]. Group 2 - The Company provides dial-in information for participants unable to join via webcast, including a toll-free number for the United States and an international number [4]. - Blue Foundry Bancorp is the holding company for Blue Foundry Bank, which has a history of over 145 years and serves various counties in New Jersey [4]. - The bank focuses on offering tailored products and services to individuals and businesses in its communities [4].

Core Viewpoint - Blue Foundry Bancorp will release its financial results for the fourth quarter and year-end 2024 on January 29, 2025, and will hold a conference call to discuss these results with investors and analysts [1][2]. Group 1: Financial Results Announcement - The financial results for the quarter ended December 31, 2024, will be available on the Company's website and the SEC's website [1]. - A conference call for investors and analysts is scheduled for January 29, 2025, at 11:00 AM (ET) to discuss the earnings [2]. Group 2: Conference Call Details - Participants are encouraged to pre-register for the webcast call, receiving immediate confirmation and a calendar invitation [3]. - Dial-in information is provided for those unable to join via webcast, including a toll-free number for the United States and an international number [4]. Group 3: Company Overview - Blue Foundry Bancorp is the holding company for Blue Foundry Bank, which has a history of over 145 years and serves various counties in New Jersey [4]. - The bank offers tailored products and services to individuals and businesses, emphasizing its commitment to customers and communities [4].

Core Viewpoint - Blue Foundry Bancorp has initiated a fifth stock repurchase program, allowing the repurchase of up to 1.14 million shares, which is about 5% of its outstanding shares, following the completion of its fourth program [1][2]. Company Summary - The fifth stock repurchase program commenced on November 8, 2024, and follows the completion of the fourth program on November 7, 2024, which authorized the repurchase of up to 1.2 million shares [1]. - Blue Foundry Bancorp has a history of share repurchase programs, having repurchased a total of 6.65 million shares since its initial public offering in July 2021, representing 23.3% of its outstanding shares at a weighted average price of $10.14 per share [3]. - The company does not have a history of paying dividends, with the CEO stating that share repurchases are a prudent use of capital, especially as they have been able to repurchase shares at a discount to tangible book value [2]. Financial Position - As of September 30, 2024, Blue Foundry Bancorp had total debt of $358.4 million and cash and cash equivalents of only $76.1 million, raising concerns about the sustainability of its share repurchase activities given its weak liquidity position [4]. Market Performance - Over the past three months, Blue Foundry Bancorp's shares have increased by 8.7%, while the industry has seen a growth of 19.1%. The company currently holds a Zacks Rank of 4 (Sell) [5].