Blue Foundry Bancorp(US:BLFY)2025-07-30 16:00Financial Data and Key Metrics Changes - The company reported a net loss of $2,000,000 or $0.10 per diluted share, which is an improvement of $735,000 compared to the prior quarter [3][9] - Net interest income increased by $896,000 or 8.3%, driven by a 12 basis point expansion in the net interest margin [9][10] - Tangible book value per share increased to $14.87, up $0.06 from the prior quarter [7] Business Line Data and Key Metrics Changes - Core deposits grew by approximately 4%, contributing to a total deposit increase of $29,000,000 or 2% [5][13] - Loan production year-to-date totaled $180,000,000, with $90,000,000 produced during the second quarter at a weighted average yield of approximately 7% [5] - The company achieved approximately 3% loan growth during the quarter, with a notable increase in commercial and industrial loans by $22,000,000 [5][12] Market Data and Key Metrics Changes - The cost of deposits decreased by 13 basis points, contributing to a 12 basis point expansion in the net interest margin [5][10] - Nonperforming assets increased slightly, with nonperforming loans to total loans rising by three basis points, remaining low at 38 basis points [14] Company Strategy and Development Direction - The company is focused on portfolio diversification, prioritizing asset classes that deliver higher yields and better risk-adjusted returns [6] - There is a strategic emphasis on deepening client engagement in a competitive market, particularly with commercial customers [13][38] - The company aims to enhance shareholder value through disciplined capital management, including share repurchases [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained momentum across lending and deposit fronts, expecting continued balance sheet and income growth [8] - The company anticipates limited expansion in net interest margin in the second half of the year, with more significant improvements expected in 2026 [24][28] Other Important Information - The company repurchased 406,000 shares at a weighted average price of $9.42, which is a significant discount to its tangible book value [7] - The allowance for credit losses to total loans decreased slightly to 80 basis points, indicating strong asset quality [14] Q&A Session Summary Question: Loan repricing and volume expectations for 2026 - Management indicated that significant loan repricing is expected in 2026, with $75,000,000 at a rate of $3.75 due to reprice [20] Question: CD pricing opportunities - Management noted that the pricing opportunity for CDs has largely run its course, and lower rates would be needed to see funding costs move appreciably lower [22] Question: Consumer loan portfolio expansion - Management is comfortable increasing the consumer loan portfolio from 5% to about 7-8% over the next couple of quarters [25] Question: Asset generation and noninterest-bearing deposits - The company is focusing on enhancing relationships with borrowers across various asset classes to grow noninterest-bearing deposits [38]