Blue Foundry Bancorp(US:BLFY)2024-04-24 17:58Financial 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]