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].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-40619 BLUE FOUNDRY BANCORP (Exact name of the registrant as specified in its charter) Delaware 86-2831373 (State or Other Jurisdiction of Incorporation or Org ...

Start Time: 11:00 January 1, 0000 11:23 AM ET Blue Foundry Bancorp (NASDAQ:BLFY) Q3 2024 Results Conference Call October 23, 2024, 11:00 AM ET Company Participants James Nesci - President and CEO Kelly Pecoraro - EVP and CFO Conference Call Participants Justin Crowley - Piper Sandler Chris O'Connell - KBW Operator Good morning, and welcome to Blue Foundry Bancorp's Third Quarter 2024 Earnings Call. Comments made during today's call may include forward-looking statements, which are based on management's curr ...

Financial Data and Key Metrics Changes - The company reported a quarterly net loss of $4 million, compared to a net loss of $2.3 million in the prior quarter, primarily due to an increase in the provision for credit losses [3][6] - Deposits increased by $7.5 million, while loans grew by $3.6 million, indicating a positive trend in the company's balance sheet [3][4] - Tangible book value per share increased by $0.05 to $14.74, reflecting shareholder value improvement [5] Business Line Data and Key Metrics Changes - The company originated $22 million in commercial lines of credit during the quarter, with unused lines of credit increasing by $12.8 million [6] - Non-performing assets declined by $1.1 million, resulting in a reduction in non-performing assets to total assets by 5 basis points and non-performing loans to total loans by 7 basis points [7] - The yield on loans contracted by 3 basis points to 4.53%, while the cost of funds increased by 10 basis points to 2.99% [8] Market Data and Key Metrics Changes - The company experienced an 11% increase in commercial deposits and a 7% increase in consumer deposits year-to-date [4] - The bank's liquidity position remains strong, with $334 million in untapped borrowing capacity and an additional $300 million in available for sale securities and unrestricted cash [5] Company Strategy and Development Direction - The company is focusing on becoming a more commercially-oriented institution, selectively originating real estate loans while expanding its commercial loan pipeline [4] - Management expressed a positive outlook for sustained loan growth in the coming quarters, driven by a healthy commercial loan pipeline [3] Management Comments on Operating Environment and Future Outlook - Management noted that the recent 50 basis point rate cut by the Federal Reserve is expected to positively impact net interest income [3] - The company anticipates improvements in net interest margin as loans close and deposits reprice lower [6][8] Other Important Information - The company repurchased 522,000 shares at a weighted average price of $10.52 during the quarter, contributing to shareholder value [5] - Operating expenses for the fourth quarter of 2024 are expected to be in the mid to high $13 million range [8] Q&A Session Summary Question: What drove the decrease in NIM for the quarter? - Management indicated that the decrease in loan yields was due to the timing of funding on loan products and re-pricing of deposits in anticipation of the Fed rate cut [11] Question: How does the company plan to lower deposit rates moving forward? - Management is monitoring the competitive rate environment and has recently lowered CD rates, aiming to shift customers back into core products [12] Question: Can you provide details on the consumer loan participation? - The company participated in a consumer loan pool with strong credit enhancements, although specific average FICO scores were not disclosed [13] Question: How is the loan pipeline looking compared to last quarter? - The loan pipeline is stronger than the previous quarter, with a pipeline of just over $60 million at rates around 8.7% [18] Question: What is the strategy regarding the CD portfolio? - Management indicated that the CD portfolio is kept short, with about $300 million set to reprice in the fourth quarter [25]