Blue Foundry Bancorp(US:BLFY)2024-11-13 21:51Financial Performance - The company reported a net loss of $4.0 million for Q3 2024, compared to a net loss of $1.4 million in Q3 2023[96]. - The Company recorded a net loss of $9.2 million for the nine months ended September 30, 2024, compared to a net loss of $4.5 million for the same period in 2023[99]. Interest Income and Expense - Interest income increased by $1.4 million, or 6.7%, to $21.5 million in Q3 2024, driven by higher rates on interest-earning assets[96]. - Interest income increased by $4.9 million, or 8.3%, to $63.7 million for the nine months ended September 30, 2024, driven by higher rates on interest-earning assets[99]. - Interest expense rose by $2.1 million to $12.4 million in Q3 2024, primarily due to increased rates on interest-bearing liabilities[96]. Net Interest Income - Net interest income decreased to $9.1 million in Q3 2024 from $9.9 million in Q3 2023, with a net interest margin decline of 12 basis points to 1.82%[96]. - Net interest income decreased by $4.6 million to $28.1 million for the nine months ended September 30, 2024, with a net interest margin of 1.90% compared to 2.18% in 2023[99]. Credit Losses - The provision for credit losses was $248 thousand in Q3 2024, compared to a $717 thousand release in Q3 2023[96]. - The allowance for credit losses on loans was 0.84% of total loans as of September 30, 2024[96]. Assets and Deposits - Total assets increased to $2.06 billion at September 30, 2024, from $2.04 billion at December 31, 2023[102]. - Cash and cash equivalents increased by $30.1 million, or 65%, to $76.1 million at September 30, 2024, due to deposit growth and loan repayments[103]. - Total deposits rose by $73.8 million, or 5.9%, to $1.32 billion at September 30, 2024[106]. - Total deposits increased to $1,318,670 thousand as of September 30, 2024, up from $1,244,904 thousand at December 31, 2023, representing a growth of 5.9%[107]. Loans and Borrowings - Gross loans decreased by $9.7 million to $1.55 billion at September 30, 2024, with residential loans down by $34.2 million[103]. - Non-performing loans decreased to $5.1 million at September 30, 2024, from $6.1 million at December 31, 2023[106]. - Borrowings decreased by $49,000 thousand, or 12.3%, to $348,500 thousand from $397,500 thousand as of December 31, 2023, due to increased deposits being used to pay down borrowings[108]. Shareholders' Equity - Total shareholders' equity decreased by $16,300 thousand, or 4.6%, to $339,300 thousand at September 30, 2024, primarily due to treasury share repurchases costing $14,400 thousand[108]. Capital Ratios - Common equity tier 1 capital ratio was 19.84% at September 30, 2024, significantly exceeding the minimum requirement of 4.50%[115]. - Total capital ratio was 20.76% at September 30, 2024, well above the minimum requirement of 8.00%[115]. Economic Value and Commitments - Estimated net interest income would decrease by 2.3% to $42,686 thousand with a 200 basis point increase in interest rates[110]. - Economic value of equity (EVE) would decrease by 18.4% to $174,039 thousand with a 100 basis point increase in interest rates[112]. - The company had $31,300 thousand in commitments to originate loans and unused lines of credit totaled $74,600 thousand as of September 30, 2024[113]. - Total available borrowing capacity was $255,700 thousand, which is 2.6 times total uninsured and uncollateralized deposits[113]. Branch Expansion - The Company added a branch to its network in the fourth quarter of 2023, contributing to its market expansion strategy[99].