BLUE FOUNDRY BANCORP NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS The following is a summary of the changes in accumulated other comprehensive income by component, net of tax, inclusive of a deferred tax valuation allowance, for the periods indicated: | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------|-------------------------------------------------|-------|--------------------------------------------------------------------|------- ...

Blue Foundry Bancorp (NASDAQ:BLFY) Q1 2023 Earnings Conference Call April 26, 2023 11:00 AM ET Company Participants Jim Nesci - President & CEO Kelly Pecoraro - CFO Conference Call Participants Chris O'Connell - KBW Operator Good morning, and welcome to Blue Foundry Bancorp's First Quarter 2023 Earnings Call. My name is Lauren, and I will be your conference operator today. Comments made during today's call may include forward-looking statements, which are based on management's current expectations and are s ...

Loan Losses and Credit Risk - The adoption of ASU 2016-13 will result in a minimal change in the total allowance for loan losses and reserves for unfunded commitments, with an immaterial allowance for credit losses on held-to-maturity debt securities [287]. - A downturn in the local economy could lead to an increase in non-performing loans, adversely affecting the company's operations, financial condition, and earnings [299]. - The geographic concentration of the loan portfolio makes the company vulnerable to economic downturns in its local market area, potentially reducing demand for products and services [299]. - Construction lending involves additional risks due to the uncertain value of projects before completion, which may lead to inadequate collateral for loan repayment [295]. Interest Rate Risk - The Bank has entered into derivative financial instruments with an aggregate notional amount of $109.0 million as of December 31, 2022, to reduce risk associated with interest rate volatility [473]. - The company anticipates that adjustable-rate loans will better offset the adverse effects of an increase in interest rates compared to fixed-rate loans, although this may lead to increased delinquencies and defaults [293]. - The transition from LIBOR to SOFR may have significant economic impacts, including potential disputes with borrowers over replacement reference rates [292]. Funding and Liquidity - The company relies heavily on deposits as its primary source of funds, and a decline in deposit balances could negatively impact liquidity and increase funding costs [300]. Competitive Landscape - The financial services industry is becoming increasingly competitive due to regulatory changes and technological advancements, which may affect the company's market position [307]. - The company’s growth strategy includes increasing assets, deposits, and market share, which depends on attracting customers from other financial institutions [303].

Financial Data and Key Metrics Changes - In 2022, the company generated net income of $2.4 million or $0.09 per diluted share and pre-provision net revenue of $1.4 million, reflecting the execution of strategic priorities [4] - For the fourth quarter, net income was $562,000 or $0.02 per diluted share, down from $1.2 million in the linked quarter, primarily due to funding pressures from a competitive rate environment [41][68] - The yield on loans increased by 9 basis points to 3.80%, while yields on all interest-bearing assets increased by 18 basis points to 3.55% [6] - The cost of interest-bearing deposits increased by 36 basis points to 82 basis points, leading to a total cost of funds of 1.17%, a 51 basis point increase compared to the prior quarter [72] Business Line Data and Key Metrics Changes - Gross loans grew by $51 million or 3.4% sequentially, driven by originations of $68 million, primarily in non-residential and multifamily segments [40] - Core deposits grew by $99 million or 13% in 2022, with business balances increasing by 56% [69] - The bank purchased $18 million of high-quality residential loans during the quarter, which were originated to Fannie Mae standards [40] Market Data and Key Metrics Changes - The company experienced an outflow of $28 million from non-maturity accounts but offset this with $51 million growth in time deposits, resulting in a total deposit increase of $22 million during the quarter [8] - The competitive rate environment has put pressure on the ability to retain deposits, with management focused on attracting low-cost core deposits [55][48] Company Strategy and Development Direction - The company continues to repurchase stock at a discount to tangible book value, having repurchased a total of 1,299,000 shares, approximately 46% of the approved stock repurchase program [5] - Management is focused on optimizing the business model and managing operating expenses, targeting mid to high $13 million range for operating expenses [18][73] Management's Comments on Operating Environment and Future Outlook - Management anticipates loan growth in 2023 to be in the high single to low double digits, acknowledging pressures on the deposit side [43] - The company expects continued pressure on net interest margin due to the liability-sensitive nature of its balance sheet [57] - Management is exploring various funding sources, including swaps and digital avenues, to mitigate funding challenges [31] Other Important Information - The allowance for loan losses decreased to 87 basis points, with an increase in the allowance to non-accrual loans to 173% from 162% in the prior quarter [7] - The securities portfolio has a duration of 4.3 years, providing cash flow to fund loans, with a decline attributed to maturities and scheduled paydowns [58] Q&A Session Summary Question: What is the outlook for loan growth and deposit inflows? - Management indicated that loan growth is expected to be lower than the previous year, with a focus on attracting core deposits while managing funding pressures [43][88] Question: Can you provide details on the commercial real estate portfolio? - The commercial loan portfolio contains around 3% of office loans, with no exposure to hotels or restaurants, and LTVs on that portfolio are around 50% [96] Question: What is the expected tax rate for minimal profitability? - The tax rate is pegged at 10% to 12% if the company is minimally profitable, with no tax benefit recorded in a loss position [38]

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, 2022 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 (State or Other Jurisdiction of Incorporation or Organization) ...

Start Time: 11:00 January 1, 0000 11:22 AM ET Blue Foundry Bancorp (NASDAQ:BLFY) Q3 2022 Earnings Conference Call October 26, 2022, 11:00 AM ET Company Participants James Nesci - President and CEO Kelly Pecoraro - EVP and CFO Conference Call Participants Laurie Hunsicker - Compass Point Operator Good morning, and welcome to Blue Foundry Bancorp's Third Quarter 2022 Earnings Call. My name is Harry, and I will be your conference operator today. Comments made during today's call may include forward-looking st ...

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 June 30, 2022 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 (State or Other Jurisdiction of Incorporation or Organization) 19 Pa ...

Blue Foundry Bancorp (NASDAQ:BLFY) Q2 2022 Earnings Conference Call July 27, 2022 11:00 AM ET Company Participants James Nesci - President and Chief Executive Officer Kelly Pecoraro - Chief Financial Officer Conference Call Participants Ross Haberman - RLH Investors Laurie Hunsicker - Compass Point Operator Good morning, and welcome to Blue Foundry Bancorp's Second Quarter 2022 Earnings Call. My name is Melissa, and I will be your conference operator today. Comments made during today's call may include forw ...

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 March 31, 2022 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) 19 Park Avenue, (Address of principal executive offices) | --- | --- | |---- ...

Blue Foundry Bancorp (NASDAQ:BLFY) Q1 2022 Earnings Conference Call April 27, 2022 11:00 AM ET Company Participants Jim Neste - President & Chief Executive Officer Alex Angeleno - Controller & Interim Chief Financial Officer Conference Call Participants Laurie Hunsicker - Compass Point Operator Good morning. My name is Simon, and I'll be your conference operator today. I would like to welcome everyone to the Blue Foundry Bancorp Q1 2022 Earnings Call. Today's call will include forward-looking statements, in ...