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]

Blue Foundry Bancorp (BLFY) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.20. This compares to loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 35%. A quarter ago, it was expected that this company would post a loss of $0.14 per share when it actually produced a loss of $0.13, delivering a surprise of 7.14%.Over the last four quarters, the company has surpass ...

Financial Performance - The company reported a net loss of $2.8 million, or $0.13 per diluted common share, for Q1 2024, compared to a net loss of $2.9 million in Q4 2023 and a net loss of $1.2 million in Q1 2023[2]. - The company reported a net loss of $2,839 thousand for the first quarter of 2024, compared to a net loss of $1,209 thousand for the same period in 2023[29]. - Basic loss per share remained at $(0.13) for the first quarter of 2024, consistent with the previous quarter[29]. - Pre-provision net loss for March 31, 2024, was $(3,374,000), worsening from $(2,775,000) in the previous quarter[53]. Deposits and Loans - Deposits increased by $46.3 million, or 3.7%, to $1.29 billion compared to the prior quarter, primarily due to a $45.7 million increase in time deposits[10]. - Total loans held for investment decreased by $6.6 million to $1.55 billion, with commercial real estate loans increasing by $11.7 million[9]. - Core deposits represented 50.3% of total deposits, down from 52.1% at the end of Q4 2023[10]. - Total deposits as of March 31, 2024, were $1,291,184,000, an increase from $1,244,904,000 in December 31, 2023[53]. Interest Income and Margin - Interest income for the quarter was $20.8 million, an increase of $507 thousand, or 2.5%, compared to the prior quarter[2]. - Total interest income increased to $20,842 thousand for the three months ended March 31, 2024, compared to $18,832 thousand for the same period in 2023, reflecting a growth of about 10.7%[29]. - The net interest margin increased by 8 basis points to 1.92%[17]. - The company reported a net interest margin of 1.92% for March 31, 2024, compared to 1.84% for December 31, 2023[49]. Non-Performing Loans and Credit Losses - Non-performing loans totaled $6.7 million, or 0.43% of total loans, compared to $5.9 million, or 0.38% at the end of Q4 2023[10]. - Non-performing loans increased to $6,691,000 as of March 31, 2024, up from $5,898,000 on December 31, 2023[49]. - The allowance for credit losses on loans was 0.88% of gross loans, with a net release of provision for credit losses of $535 thousand during the quarter[10]. - The allowance for credit losses to total loans ratio improved to 0.88% as of March 31, 2024, down from 0.91% on December 31, 2023[49]. Shareholder Equity and Book Value - Shareholders' equity decreased by $5.5 million to $350.2 million, primarily due to share repurchases[10]. - Book value per share increased to $14.61 as of March 31, 2024, compared to $14.51 on December 31, 2023[49]. - Tangible book value per share increased to $14.60 as of March 31, 2024, compared to $14.49 in December 31, 2023[53]. Operational Efficiency - Non-interest expense was $13,242 thousand for the three months ended March 31, 2024, a decrease of $415 thousand compared to the previous quarter, driven by reductions in compensation and benefits expenses[37]. - The efficiency ratio for the first quarter of 2024 was impacted by changes in non-interest expenses and income, reflecting the company's operational efficiency[31]. - The efficiency ratio deteriorated to 134.19% for March 31, 2024, compared to 128.41% for December 31, 2023[49]. - Efficiency ratio for March 31, 2024, was 134.2%, up from 128.4% in the previous quarter[53]. Assets - Total assets decreased to $2,027,787 thousand as of March 31, 2024, down from $2,044,963 thousand at December 31, 2023, representing a decline of approximately 0.8%[45]. - Total assets as of March 31, 2024, were $2,027,787,000, a slight decrease from $2,044,963,000 in December 31, 2023[53]. - Total interest-earning assets amounted to $1,971,284,000 as of March 31, 2024, down from $1,987,643,000 on December 31, 2023[51]. Future Outlook - The company anticipates potential challenges due to inflation and changes in the interest rate environment, which could affect margins and yields moving forward[44].

RUTHERFORD, N.J., April 24, 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 $2.8 million, or $0.13 per diluted common share, for the three months ended March 31, 2024, compared to net loss of $2.9 million, or $0.13 per diluted common share, for the three months ended December 31, 2023, and a net loss of $1.2 million, or $0.05 per diluted common share, for the three months ended March 31, 2023. J ...

RUTHERFORD, N.J., April 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, April 24, 2024 it will release financial results for the quarter ended March 31, 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 ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Blue Foundry Bank, a New Jersey-chartered savings bank, focuses on originating real estate and commercial loans, primarily funded by retail deposits, with a strategic shift towards commercial lending - Blue Foundry Bank's core business involves originating **real estate mortgages and commercial loans**, primarily funded by retail deposits in **northern New Jersey**[12](index=12&type=chunk)[13](index=13&type=chunk) - The company is strategically shifting from residential loans to **commercial real estate, multifamily, and C&I lending** to diversify and increase yields[15](index=15&type=chunk) Key Financial Metrics (as of December 31, 2023) | Metric | Amount (Billions) | | :--- | :--- | | Total Assets | $2.04 | | Net Loans | $1.55 | | Deposits | $1.24 | [Lending Activities](index=6&type=section&id=Lending%20Activities) The bank's loan portfolio totaled **$1.56 billion** as of December 31, 2023, with a strategic shift towards commercial-type lending, despite a significant decrease in originations Loan Portfolio Composition (December 31, 2023 vs 2022) | Loan Type | 2023 Amount ($ thousands) | 2023 Percent | 2022 Amount ($ thousands) | 2022 Percent | | :--- | :--- | :--- | :--- | :--- | | Residential one-to-four family | 550,929 | 35.30% | 594,521 | 38.55% | | Multifamily | 682,564 | 43.74% | 690,278 | 44.75% | | Non-residential | 232,505 | 14.90% | 216,394 | 14.03% | | Construction and land | 60,414 | 3.87% | 17,990 | 1.17% | | Junior liens | 22,503 | 1.44% | 18,477 | 1.20% | | Commercial and Industrial | 11,768 | 0.75% | 4,682 | 0.30% | | **Total gross loans** | **1,560,730** | **100.00%** | **1,542,380** | **100.00%** | - Loan originations significantly decreased to **$119.6 million** in 2023 from **$488.2 million** in 2022, with loan purchases also declining[21](index=21&type=chunk) - The bank's largest single borrower relationship was **$34.3 million**, remaining below internal policy and legal limits[44](index=44&type=chunk) [Asset Quality](index=12&type=section&id=Asset%20Quality) Asset quality improved in 2023, with non-performing assets decreasing to **$6.7 million** (0.33% of total assets) and classified loans also declining Non-Performing Assets (December 31, 2023 vs 2022) | Category | 2023 ($ thousands) | 2022 ($ thousands) | | :--- | :--- | :--- | | Non-accrual loans | 6,118 | 7,767 | | Accruing loans past due 90+ days | — | 61 | | **Total non-performing loans** | **6,118** | **7,828** | | Real estate owned | 593 | — | | **Total non-performing assets** | **6,711** | **7,828** | | **Total non-performing assets to total assets** | **0.33%** | **0.38%** | Classified Loans (December 31, 2023 vs 2022) | Classification | 2023 ($ thousands) | 2022 ($ thousands) | | :--- | :--- | :--- | | Special mention | 1,567 | 2,224 | | Substandard | 6,118 | 8,469 | | Doubtful | — | — | | Loss | — | — | | **Total** | **7,685** | **10,693** | [Allowance for Credit Losses](index=14&type=section&id=Allowance%20for%20Credit%20Losses) The company adopted CECL in 2023, increasing the allowance for credit losses (ACL) to **$14.15 million**, significantly improving the ACL to non-performing loans ratio to **231.35%** - The company adopted **ASU 2016-13 (CECL)** on January 1, 2023, requiring measurement of expected credit losses[79](index=79&type=chunk) Allowance for Credit Losses on Loans Activity | Description | 2023 ($ thousands) | 2022 ($ thousands) | | :--- | :--- | :--- | | Balance at beginning of period | 13,400 | 14,425 | | Impact of adopting ASU 2016-13 | 668 | — | | Provision for credit losses | 146 | (1,001) | | Net charge-offs | (60) | (24) | | **Balance at end of period** | **14,154** | **13,400** | | **ACL to total loans** | **0.91%** | **0.87%** | | **ACL to non-performing loans** | **231.35%** | **172.52%** | [Sources of Funds](index=18&type=section&id=Sources%20Of%20Funds) Primary funds sources are deposits and FHLB borrowings, with total deposits decreasing to **$1.24 billion** and a notable shift to higher-cost time deposits Deposit Composition (December 31, 2023 vs 2022) | Deposit Type | 2023 Amount ($ thousands) | 2023 Percent | 2022 Amount ($ thousands) | 2022 Percent | | :--- | :--- | :--- | :--- | :--- | | Non-interest bearing | 27,739 | 2.23% | 37,907 | 2.94% | | NOW and demand accounts | 361,139 | 29.01% | 410,937 | 31.88% | | Savings | 259,402 | 20.84% | 423,758 | 32.88% | | Time deposits | 596,624 | 47.92% | 416,260 | 32.30% | | **Total** | **1,244,904** | **100.00%** | **1,288,862** | **100.00%** | - As of December 31, 2023, the company had **$397.5 million** in FHLB advances and an additional **$320.0 million** borrowing capacity[91](index=91&type=chunk) - Uninsured deposits totaled **$245.9 million**, or **0.02%** of total deposits, including company and municipal funds[89](index=89&type=chunk) [Supervision and Regulation](index=20&type=section&id=Supervision%20and%20Regulation) The company and its bank subsidiary operate under comprehensive regulation by NJDOBI, FDIC, and the Federal Reserve, consistently exceeding capital requirements - The Bank is comprehensively regulated by the **NJDOBI** and the **FDIC**[63](index=63&type=chunk) - As of December 31, 2023, the Bank exceeded all minimum capital standards and was classified as **"well capitalized"**[65](index=65&type=chunk)[98](index=98&type=chunk)[131](index=131&type=chunk) - As a bank holding company, the Company is regulated by the **Federal Reserve Board** and must serve as a financial strength source for its subsidiary bank[69](index=69&type=chunk) - The Company qualifies as an **"emerging growth company,"** benefiting from reduced reporting and extended accounting standard transition periods[104](index=104&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from interest rate volatility, increased credit risk from commercial lending, liquidity challenges, operational failures, and regulatory compliance costs - Profitability is highly sensitive to market interest rates; a **200 basis point increase** would decrease net portfolio value by **$73.9 million**[141](index=141&type=chunk) - Increased commercial real estate and commercial loan originations elevate lending risk due to their inherently higher risk profile compared to residential mortgages[113](index=113&type=chunk)[142](index=142&type=chunk) - Significant liquidity risk arises from volatile customer deposits, influenced by market conditions and competition[121](index=121&type=chunk)[149](index=149&type=chunk)[151](index=151&type=chunk) - Operational risks are significant due to high transaction volumes and third-party vendor reliance, with exposure to cyber-attacks impacting operations and reputation[155](index=155&type=chunk)[156](index=156&type=chunk)[160](index=160&type=chunk) [Unresolved Staff Comments](index=42&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - There are **no unresolved staff comments**[197](index=197&type=chunk) [Cybersecurity](index=42&type=section&id=Item%201C.%20Cybersecurity) The company's cybersecurity program, based on the NIST framework and overseen by the Board, manages incidents without material business impact to date - The cybersecurity program is designed around the **NIST Cybersecurity Framework** and managed by the Chief Information Security Officer[169](index=169&type=chunk) - Oversight is provided by the **Board's Enterprise Risk Committee**, receiving regular reports on program effectiveness and incidents[201](index=201&type=chunk) - A Cyber Incident Response Procedure provides a framework for responding to cybersecurity incidents, evaluated at least annually[170](index=170&type=chunk) [Properties](index=43&type=section&id=Item%202.%20Properties) The company operates **20 full-service branch offices** in northern New Jersey, with a net book value of premises and equipment totaling **$32.5 million** - The company operates **20 full-service branch offices**, owning five properties and leasing sixteen[205](index=205&type=chunk) - The net book value of premises and equipment was **$32.5 million** at December 31, 2023[205](index=205&type=chunk) [Legal Proceedings](index=43&type=section&id=Item%203.%20Legal%20Proceedings) As of December 31, 2023, no pending legal proceedings are expected to have a material adverse effect on the company's financial condition or operations - At December 31, 2023, no legal proceedings were expected to materially affect the company's financial condition, operations, or cash flows[172](index=172&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[202](index=202&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=44&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "BLFY"; no dividends are anticipated, and **657,162 shares** were repurchased in Q4 2023 - The Company's common stock is listed on the **Nasdaq Global Select Market** under the symbol **"BLFY"**[203](index=203&type=chunk) - The Company has not declared and does not anticipate paying dividends on its common stock in the near future[203](index=203&type=chunk) Issuer Purchases of Equity Securities (Q4 2023) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Remaining for Repurchase | | :--- | :--- | :--- | :--- | | October | 148,810 | $7.87 | 947,399 | | November | 283,300 | $8.37 | 664,099 | | December | 225,052 | $9.71 | 439,047 | | **Total** | **657,162** | **$8.72** | **439,047** | [Reserved](index=44&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company reported a **$7.4 million net loss** in 2023, driven by a **19.1% decrease in net interest income** and a **64 basis point compression** in net interest margin, while assets remained stable Comparison of Operating Results (2023 vs 2022) | Metric | 2023 ($ thousands) | 2022 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net (Loss) Income | (7,397) | 2,396 | (408.7%) | | Net Interest Income | 41,919 | 51,843 | (19.1%) | | Total Interest Income | 79,105 | 62,413 | 26.7% | | Total Interest Expense | 37,186 | 10,570 | 251.8% | | Non-interest Income | 1,805 | 2,664 | (32.2%) | | Non-interest Expense | 51,562 | 52,774 | (2.3%) | - The net interest margin decreased by **64 basis points** to **2.09%** in 2023, due to a faster increase in the cost of funds[328](index=328&type=chunk) - The business strategy focuses on growing core deposits, diversifying into commercial lending, and improving operating leverage and efficiency[295](index=295&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed through balance sheet diversification and swaps, with a **100 basis point rate increase** projected to decrease Net Portfolio Value by **41.8%** - The company's most significant market risk is **interest rate risk**, managed through balance sheet diversification and interest rate swaps[318](index=318&type=chunk) Net Portfolio Value (NPV) Sensitivity Analysis (as of Dec 31, 2023) | Change in Interest Rates (bps) | Estimated NPV ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | +200 | 15,293 | (73,921) | (82.9)% | | +100 | 51,896 | (37,318) | (41.8)% | | 0 | 89,214 | — | — | | -100 | 126,976 | 37,763 | 42.3% | | -200 | 165,462 | 76,248 | 85.5% | Net Interest Income (NII) Sensitivity Analysis (as of Dec 31, 2023) | Change in Interest Rates (bps) | Estimated NII ($ thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | +200 | 45,392 | (1,012) | (2.2)% | | +100 | 45,929 | (475) | (1.0)% | | 0 | 46,404 | — | — | | -100 | 48,977 | 2,573 | 5.5% | | -200 | 51,187 | 4,783 | 10.3% | [Financial Statements and Supplementary Data](index=55&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2023 and 2022, including balance sheets, statements of operations, and detailed notes - The company adopted **ASU 2016-13 (CECL)** on January 1, 2023, increasing the allowance for credit losses on loans by **$668 thousand**[375](index=375&type=chunk) - The Bank exceeded all regulatory capital requirements as of December 31, 2023, and was considered **"well capitalized"** under the prompt corrective action framework[225](index=225&type=chunk)[526](index=526&type=chunk) - The company repurchased **3.7 million shares** for **$36.0 million** during 2023 across three stock repurchase programs[221](index=221&type=chunk) [Consolidated Balance Sheets](index=57&type=section&id=Consolidated%20Balance%20Sheets) Total assets were **$2.045 billion** as of December 31, 2023, with total liabilities increasing to **$1.689 billion** and shareholders' equity decreasing by **9.7%** Consolidated Balance Sheet Highlights (as of Dec 31) | Account | 2023 ($ thousands) | 2022 ($ thousands) | | :--- | :--- | :--- | | **Total Assets** | **2,044,963** | **2,043,338** | | Loans receivable, net | 1,546,576 | 1,531,727 | | Securities (AFS & HTM) | 317,020 | 347,953 | | **Total Liabilities** | **1,689,323** | **1,649,620** | | Deposits | 1,244,904 | 1,288,862 | | FHLB Advances | 397,500 | 310,500 | | **Total Shareholders' Equity** | **355,640** | **393,718** | [Consolidated Statements of Operations](index=58&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a **net loss of $7.4 million** for 2023, or **($0.31) per share**, primarily due to a decline in net interest income Consolidated Statement of Operations Summary (Year Ended Dec 31) | Account | 2023 ($ thousands) | 2022 ($ thousands) | | :--- | :--- | :--- | | Net Interest Income | 41,919 | 51,843 | | Release of Provision for Credit Losses | (441) | (1,001) | | Non-interest Income | 1,805 | 2,664 | | Non-interest Expense | 51,562 | 52,774 | | (Loss) Income Before Tax | (7,397) | 2,734 | | **Net (Loss) Income** | **(7,397)** | **2,396** | | **Basic and Diluted (Loss) EPS** | **($0.31)** | **$0.09** | [Notes to Consolidated Financial Statements](index=63&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, including CECL adoption, portfolio composition, credit losses, funding structures, and regulatory capital, confirming single business segment operation - The company adopted **ASU 2016-13 (CECL)** on January 1, 2023, increasing the allowance for credit losses on loans by **$668 thousand** and establishing a **$170 thousand** reserve on held-to-maturity securities[375](index=375&type=chunk) - The Bank exceeded all regulatory capital requirements as of December 31, 2023, and was considered **"well capitalized"** under the prompt corrective action framework[225](index=225&type=chunk)[526](index=526&type=chunk) - The company repurchased **3.7 million shares** for a total cost of **$36.0 million** during 2023 across three stock repurchase programs[221](index=221&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosures](index=107&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosures) The company reports no changes in or disagreements with its accountants on accounting and financial disclosures - None[531](index=531&type=chunk) [Controls and Procedures](index=108&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no attestation report required for the emerging growth company - Management concluded the company's disclosure controls and procedures were **effective** as of the report period end[230](index=230&type=chunk) - Management concluded the company's internal control over financial reporting was **effective** as of December 31, 2023, based on the COSO framework[230](index=230&type=chunk) [Other Information](index=107&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - Not applicable[561](index=561&type=chunk) [Disclosure Regarding Foreign Jurisdiction that Prevent Inspections](index=108&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdiction%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[231](index=231&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=108&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference to the Proxy Statement for the Company's 2024 Annual Meeting of Stockholders[232](index=232&type=chunk) [Executive Compensation](index=108&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference to the Proxy Statement for the Company's 2024 Annual Meeting of Stockholders[247](index=247&type=chunk) [Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters](index=108&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owner%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item is incorporated by reference from the company's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference to the Proxy Statement for the Company's 2024 Annual Meeting of Stockholders[233](index=233&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=108&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference to the Proxy Statement for the Company's 2024 Annual Meeting of Stockholders[563](index=563&type=chunk) [Principal Accounting Fees and Services](index=108&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference to the Proxy Statement for the Company's 2024 Annual Meeting of Stockholders[570](index=570&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=109&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists financial statements and exhibits filed with the Form 10-K, including corporate documents, agreements, and certifications - This section lists all financial statements and exhibits filed with the Form 10-K, including certifications pursuant to the Sarbanes-Oxley Act[536](index=536&type=chunk)[571](index=571&type=chunk) [Form 10-K Summary](index=110&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - Not applicable[537](index=537&type=chunk)