Blue Foundry Bancorp (BLFY) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The pow ...

Blue Foundry Bancorp (NASDAQ:BLFY) Q2 2024 Earnings Conference Call July 24, 2024 11:00 AM ET Company Participants James Nesci - President and Chief Executive Officer Kelly Pecoraro - Executive Vice President and Chief Financial Officer Conference Call Participants Justin Crowley - Piper Sandler Christopher O'Connell - KBW Operator Good morning and welcome to Blue Foundry Bancorp's Second Quarter 2024 Earnings Call. Comments made during today's call may include forward-looking statements, which are based on ...

This quarterly report represents an earnings surprise of 42.11%. A quarter ago, it was expected that this company would post a loss of $0.20 per share when it actually produced a loss of $0.13, delivering a surprise of 35%. Blue Foundry Bancorp, which belongs to the Zacks Banks - Northeast industry, posted revenues of $10.11 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 4.54%. This compares to year-ago revenues of $11.29 million. The company has topped consensus revenue ...

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 histor ...

James D. Nesci, President and Chief Executive Officer, commented, "Deposit growth continued in the second quarter despite the highly competitive environment in our market area. We remain focused on growing the commercial loan portfolios and saw increases in commercial real estate and construction lending." Commenting on the recent appointment of John F. Kuntz to the Board of Directors, Mr. Nesci remarked, "We are delighted to welcome Mr. Kuntz to Blue Foundry's Board of Directors. His years of combined lega ...

Kenneth Grimbilas, Chairman, stated, "We are very pleased to have Mr. Kuntz join Blue Foundry's Board of Directors. His extensive knowledge and experience in financial, legal and operational matters will provide additional perspective and depth to the organization. His experience with charitable foundations will also prove to be instrumental at Blue Foundry." Mr. Kuntz previously served as General Counsel and Corporate Secretary of Provident Financial Services, Inc., the public holding company of Provident ...

RUTHERFORD, N.J., July 23, 2024 (GLOBE NEWSWIRE) -- Blue Foundry Bancorp (Nasdaq: BLFY) (the "Company"), announced today the appointment of John F. Kuntz, Esq. as a Director of both the Company and its subsidiary, Blue Foundry Bank, effective immediately. Kenneth Grimbilas, Chairman, stated, "We are very pleased to have Mr. Kuntz join Blue Foundry's Board of Directors. His extensive knowledge and experience in financial, legal and operational matters will provide additional perspective and depth to the orga ...

RUTHERFORD, N.J., July 10, 2024 (GLOBE NEWSWIRE) -- Blue Foundry Bancorp (NASDAQ: BLFY) (the "Company"), the holding company for Blue Foundry Bank, announced that on the morning of Wednesday, July 24, 2024 it will release financial results for the quarter ended June 30, 2024. A copy of the earnings release will be available on the Company's website, https://ir.bluefoundrybank.com/, in the "News" section and on the SEC's website, https://www.sec.gov/. Representatives of the Company will hold a conference cal ...

Part I [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Blue Foundry Bancorp reported a net loss of $2.8 million in Q1 2024, with total assets at $2.03 billion, reflecting declining net interest income due to rising interest expenses [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to $2.03 billion as of March 31, 2024, with shareholders' equity declining to $350.2 million due to treasury stock repurchases Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,027,787** | **$2,044,963** | | Loans receivable, net | $1,540,428 | $1,546,576 | | Securities available-for-sale | $265,191 | $283,766 | | **Total Liabilities** | **$1,677,631** | **$1,689,323** | | Deposits | $1,291,184 | $1,244,904 | | Advances from FHLB | $342,500 | $397,500 | | **Total Shareholders' Equity** | **$350,156** | **$355,640** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a net loss of $2.8 million for Q1 2024, driven by a decrease in net interest income due to significantly higher interest expenses Q1 Statement of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Interest Income | $20,842 | $18,832 | | Total Interest Expense | $11,425 | $6,891 | | **Net Interest Income** | **$9,417** | **$11,941** | | Release of provision for credit losses | $(535) | $(23) | | Total Non-interest Expense | $13,242 | $13,657 | | **Net Loss** | **$(2,839)** | **$(1,209)** | | **Diluted Loss Per Share** | **$(0.13)** | **$(0.05)** | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The company recorded a comprehensive loss of $1.1 million for Q1 2024, partially offset by $1.7 million in other comprehensive income from unrealized gains Q1 Comprehensive Income (Loss) (in thousands) | Component | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Loss | $(2,839) | $(1,209) | | Total Other Comprehensive Income | $1,705 | $1,593 | | **Comprehensive (Loss) Income** | **$(1,134)** | **$384** | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity decreased to $350.2 million by March 31, 2024, primarily due to a net loss and treasury stock repurchases - Total shareholders' equity decreased by **$5.5 million** during Q1 2024, ending at **$350.2 million**[15](index=15&type=chunk) - Key drivers for the decrease in equity were the net loss of **$2.8 million** and treasury stock purchases of **$5.3 million**[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash increased by $7.7 million in Q1 2024, driven by investing activities despite cash used in operations and financing Q1 Cash Flow Summary (in thousands) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,855) | $(4,422) | | Net cash provided by (used in) investing activities | $26,295 | $(37,929) | | Net cash (used in) provided by financing activities | $(13,712) | $58,790 | | **Net increase in cash and cash equivalents** | **$7,728** | **$16,439** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20UNAUDITED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Notes detail the securities portfolio's unrealized losses, the loan portfolio's composition, a decreased allowance for credit losses, and the use of interest rate swaps for hedging - The company's securities portfolio, valued at fair value of **$265.2 million** for AFS and an estimated fair value of **$28.6 million** for HTM, has significant unrealized losses primarily attributed to changes in interest rates, not credit quality[28](index=28&type=chunk)[57](index=57&type=chunk)[48](index=48&type=chunk) - The loan portfolio, totaling **$1.55 billion**, is primarily composed of multifamily (**$671.0 million**) and residential (**$540.4 million**) loans, with non-accrual loans increasing to **$6.7 million**[58](index=58&type=chunk)[90](index=90&type=chunk) - The Allowance for Credit Losses on loans decreased to **$13.7 million** from **$14.2 million**, driven by a release of provision of **$396 thousand**[94](index=94&type=chunk) - The company utilizes interest rate swaps with a total notional amount of **$254.0 million** as of March 31, 2024, to hedge interest rate risk on FHLB advances and brokered deposits[111](index=111&type=chunk) [Management's Discussion and Analysis (MD&A)](index=34&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes the increased net loss of $2.8 million in Q1 2024 to significant net interest margin compression, despite deposit growth and strong capitalization - Net loss increased to **$2.8 million** in Q1 2024 from **$1.2 million** in Q1 2023[156](index=156&type=chunk) - Net interest margin decreased by **50 basis points** to **1.92%** YoY, and net interest spread decreased by **66 basis points** to **1.39%**, reflecting significant margin compression[156](index=156&type=chunk) - Total deposits increased by **$46.3 million (3.7%)** during the quarter, primarily driven by a **$45.7 million** increase in time deposits[160](index=160&type=chunk) - The company repurchased **556,353 shares** at a weighted average cost of **$9.49 per share** during the quarter[190](index=190&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=39&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURE%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate risk, with EVE sensitivity showing a 24.3% decrease for a 100 basis point rate increase, managed through various strategies including swaps Economic Value of Equity (EVE) Sensitivity Analysis (as of March 31, 2024) | Change in Interest Rates (bps) | Estimated EVE (in thousands) | Change from Base (%) | | :--- | :--- | :--- | | +200 | $86,379 | (48.4)% | | +100 | $126,650 | (24.3)% | | 0 | $167,400 | 0.0% | | -100 | $208,705 | 24.7% | | -200 | $249,172 | 48.9% | - The company uses derivative financial instruments (interest rate swaps) with an aggregate notional amount of **$254.0 million** as of March 31, 2024, to reduce risk associated with interest rate volatility[164](index=164&type=chunk) [Controls and Procedures](index=42&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective[196](index=196&type=chunk) Part II [Legal Proceedings](index=42&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is not currently engaged in any material legal proceedings, with ongoing actions not expected to have a material adverse effect - The Company is not engaged in any legal proceedings of a material nature at the present time[197](index=197&type=chunk) [Risk Factors](index=42&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes in risk factors from those identified in the Annual Report on Form 10-K - There have been no material changes in risk factors from those identified in the Annual Report on Form 10-K[209](index=209&type=chunk) [Issuer Purchases of Equity Securities](index=43&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES.%20USE%20OF%20PROCEEDS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company repurchased 556,353 shares at an average price of $9.49 per share in Q1 2024, and adopted a new repurchase program for up to 1,203,545 shares Q1 2024 Share Repurchases | Period | Total Shares Purchased | Average Price Paid | Shares Purchased Under Program | | :--- | :--- | :--- | :--- | | January | 225,600 | $9.96 | 225,600 | | February | 186,111 | $9.26 | 186,111 | | March | 144,642 | $9.07 | 120,341 | | **Total** | **556,353** | **$9.49** | **532,052** | - On February 21, 2024, the Company adopted its fourth repurchase program to repurchase up to **1,203,545 shares**, or **5%** of its outstanding common stock[172](index=172&type=chunk) [Exhibits](index=44&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including articles of incorporation, bylaws, and required certifications from executive officers - Key exhibits filed include Certifications of the Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[213](index=213&type=chunk)

Financial Data and Key Metrics Changes - Deposits increased by $46 million, resulting in a reduction of the loan-to-deposit ratio by 500 basis points [2] - Net interest income rose by $221,000, leading to an 8 basis point expansion in net interest margin [3] - The net loss for the first quarter was $2.8 million, an improvement from a net loss of $2.9 million in the prior quarter [39] - Tangible book value per share increased by $0.11 to $14.60 due to share repurchases [19] Business Line Data and Key Metrics Changes - Commercial account balances increased by $18.5 million or 10% during the quarter [43] - Gross loans declined by $6.6 million as amortization and payoffs outpaced new loan funding [42] - The allowance to total loans decreased by 3 basis points to 88 basis points [22] Market Data and Key Metrics Changes - Uninsured and uncollateralized deposits accounted for $133 million, approximately 10% of total deposits [20] - Yields on loans increased by 16 basis points to 4.45%, while the yield on all interest-earning assets increased by 19 basis points to 4.25% [41] Company Strategy and Development Direction - The company aims to become more commercially oriented, focusing on originating real estate loans and building a commercial pipeline [2] - The management is committed to being good stewards of capital and believes that repurchasing shares at current levels is a good use of capital [36] - The focus remains on attracting full banking relationships with small to medium-sized businesses [43] Management Comments on Operating Environment and Future Outlook - Management anticipates production and commercial credits to pick up as 2024 progresses, while remaining disciplined in underwriting [36] - There may be slight margin pressure in the upcoming quarters due to interest rate activity and the macroeconomic environment [3] - The company is exploring opportunities to optimize its expense base, expecting operating expenses for Q2 2024 to be in the mid to high $13 million range [23] Other Important Information - The company operates with a low percentage of uninsured deposits and low concentration risk to any single depositor [20] - The debt securities portfolio was reduced by $18.6 million during the quarter due to maturities, calls, and scheduled paydowns [42] Q&A Session Summary Question: Comments on margin and future outlook - Management discussed the potential for NIM pressure due to the repricing of time deposits and the competitive environment [26][45] Question: Credit quality and nonperforming assets - Management expressed satisfaction with credit metrics, noting strong underwriting practices and a manageable level of nonperforming assets [28][47] Question: Buyback strategy - Management confirmed a strong belief in the buyback program and indicated that they would remain active in repurchasing shares [60] Question: Loan pipeline and growth expectations - Management noted a slight reduction in the loan portfolio but emphasized a focus on higher-yielding assets and a healthy pipeline of approximately $40 million [64][65]