0001846017false00018460172024-01-242024-01-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 24, 2024

BLUE FOUNDRY BANCORP
(Exact Name of Registrant as Specified in its Charter)

Delaware001-4061986-2831373
(State or Other Jurisdiction)(Commission File No.)(I.R.S. Employer
of Incorporation)Identification No.)
19 Park Avenue, Rutherford, New Jersey
07070
(Address of Principal Executive Offices)(Zip Code)

Registrant’s telephone number, including area code: (201) 939-5000

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par valueBLFYThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 Results of Operation and Financial Condition
On January 24, 2024, Blue Foundry Bancorp (the “Company”), the holding company for Blue Foundry Bank (the "Bank") issued a press release reporting its financial results for the periods ended December 31, 2023.
A copy of the press release announcing the results is included as Exhibit 99.1 to this Current Report on Form 8-K and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.
Item 9.01 Financial Statements and Exhibits
(a) Financial Statements of Businesses Acquired. Not applicable.
(b) Pro Forma Financial Information. Not applicable.
(c) Shell Company Transactions. Not applicable.
(d) Exhibits.
104Cover Page Interactive Data File (embedded within the inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.


Blue Foundry Bancorp
DATE: January 24, 2024
By:/s/ James D. Nesci
James D. Nesci
President and Chief Executive Officer

Exhibit 99.1

FOR IMMEDIATE RELEASE
Blue Foundry Bancorp Reports Fourth Quarter and Year-End 2023 Results
RUTHERFORD, NJ --January 24, 2024-- Blue Foundry Bancorp (NASDAQ:BLFY) (the “Company”), the holding company for Blue Foundry Bank (the “Bank”), today reported a net loss of $7.4 million, or $0.31 per diluted common share, for the year ended December 31, 2023 compared to net income of $2.4 million, or $0.09 per diluted common share for the year ended December 31, 2022.
The Company reported a net loss of $2.9 million, or $0.13 per diluted common share, for the three months ended December 31, 2023 compared to a net loss of $1.4 million, or $0.06 per diluted common share for the three months ended September 30, 2023, and net income of $562 thousand, or $0.02 per diluted common share for the three months ended December 31, 2022.
James D. Nesci, President and Chief Executive Officer, commented, “2023 proved to be a challenging year for banks as the financial services industry navigated unprecedented rate hikes, large bank failures and a slowing economy. While these factors have adversely affected revenues, our capital levels and credit quality remain strong, and we have been able to manage expenses and bring efficiencies to the institution that should benefit us in years to come.”
He continued, “As we move into 2024, we are focused on executing our strategic priorities which will lead to prudent balance sheet growth, funded through organic deposit acquisition.”
Highlights for the fourth quarter of 2023:
•Non-interest expense, excluding the provision for commitments and letters of credit, decreased $529 thousand, or 4.05%, compared to the same quarter of 2022.
•Tangible book value per share increased $0.25 to $14.49 from the linked quarter.
•Net interest margin decreased ten basis points from the linked quarter and 78 basis points from the fourth quarter of 2022 to 1.84% for the fourth quarter of 2023.
•During the quarter, 657,162 shares were repurchased at a weighted average cost of $8.72.
•Credit metrics remained favorable with nonperforming loans to total loans of 38 basis points.
Lending Franchise
The Company continues to diversify its lending franchise by focusing on growing the higher-yielding commercial portfolio. Although gross loans increased $15.6 million in 2023, we were able to increase our portfolio of construction loans, non-residential real estate loans and commercial and industrial loans by $42.6 million, $15.7 million and $7.9 million, respectively, while reducing our one-to-four family residential and multifamily portfolios by $46.3 million and $8.1 million, respectively.
1


The details of the loan portfolio are below:
December 31, 2023September 30, 2023June 30,
2023		March 31, 2023December 31, 2022
(Unaudited)(Audited)
(In thousands)
Residential one-to-four family$550,929 $567,384 $580,396 $592,809 $597,254 
Multifamily682,564 689,966 696,956 695,207 690,690 
Non-residential real estate231,720 236,325 237,247 239,844 216,061 
Construction and land60,414 45,064 36,032 28,141 17,799 
Junior liens22,503 22,297 21,338 19,644 18,631 
Commercial and industrial12,553 9,904 9,743 10,357 4,653 
Consumer and other47 50 33 58 39 
Total loans1,560,730 1,570,990 1,581,745 1,586,060 1,545,127 
Allowance for credit losses on loans14,154 13,872 14,413 14,153 13,400 
Loans receivable, net$1,546,576 $1,557,118 $1,567,332 $1,571,907 $1,531,727 
Retail Franchise
As of December 31, 2023, total deposits were $1.24 billion, a decrease of $44.0 million or 3.41% from December 31, 2022. While we continue to see a shift into time deposits, the Company remains focused on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products.
The details of deposits are below:
December 31, 2023September 30, 2023June 30,
2023		March 31, 2023December 31, 2022
(Unaudited)(Audited)
(In thousands)
Non-interest bearing deposits$27,739 $23,787 $26,067 $32,518 $37,907 
NOW and demand accounts361,139 378,268 404,407 427,281 410,937 
Savings259,402 278,665 315,713 361,871 423,758 
Core deposits648,280 680,720 746,187 821,670 872,602 
Time deposits596,624 572,384 521,074 422,911 416,260 
Total deposits$1,244,904 $1,253,104 $1,267,261 $1,244,581 $1,288,862 
Financial Performance Overview:    
Fourth quarter of 2023 compared to the fourth quarter of 2022
Net interest income compared to the fourth quarter of 2022:
•Net interest income was $9.2 million, a decrease of $3.7 million.
•Net interest margin decreased 78 basis point to 1.84%.
•Yield on average interest-earning assets increased 51 basis points to 4.06%.
•Cost of average interest-bearing deposits increased 170 basis points to 2.52%, reflecting the competitive rate environment in our primary market.
•Average loans increased by $52.9 million and average interest-bearing deposits increased by $14.7 million.
Non-interest income compared to the fourth quarter of 2022:
•Non-interest income increased $128 thousand, or 28.83%, largely driven by a gain on sale of loans of $72 thousand in the fourth quarter of 2023.
2


Non-interest expense compared to the fourth quarter of 2022:
•Non-interest expense was $12.5 million, a decrease of $529 thousand, excluding the provision for commitments and letters of credit, driven by lower compensation and benefit costs and professional services expense of $733 thousand and $207 thousand, respectively, partially offset by increases in occupancy and equipment expense of $231 thousand and data processing expense of $186 thousand.
•Since the adoption of the current expected credit loss (CECL) methodology on January 1, 2023, the provision for commitments and letters of credit is recorded in the provision for credit losses. This expense was previously recorded in non-interest expense. During the fourth quarter of 2022, the Company recorded a $203 thousand release of provision for credit losses on commitments and letters of credit.
Income tax expense compared to the fourth quarter of 2022:
•The Company did not record a tax benefit for the loss incurred during the fourth quarter of 2023 due to the full valuation allowance required on its deferred tax assets. The fourth quarter of 2022 effective tax rate of 22.59% was a result of the taxable income produced during that quarter, partially offset by the ability to utilize a portion of the net operating losses that were fully reserved.
•The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At December 31, 2023, the valuation allowance on deferred tax assets was $24.0 million.
Year ended December 31, 2023 compared to the year ended December 31, 2022
Net interest income compared to the year ended December 31, 2022:
•Net interest income was $41.9 million, a decrease of $9.9 million.
•Net interest margin decreased by 64 basis points to 2.09%.
•Yield on average interest-earning assets increased 66 basis points to 3.94%.
•Cost of average interest-bearing deposits increased 150 basis points to 1.97%, due to an increase in higher-cost time deposits and the competitive rate environment in our primary market.
•Average loans increased by $162.1 million and average interest-bearing deposits decreased by $1.9 million.
Non-interest income compared to the year ended December 31, 2022:
•Non-interest income decreased $859 thousand, or 32.24%, largely due to the discontinuation of overdraft charges in 2022, partially offset by a gain on sale of loans of $231 thousand in 2023.
Non-interest expense compared to the year ended December 31, 2022:
•Non-interest expense was $51.6 million, a decrease of $1.5 million excluding the provision for commitments and letters of credit, driven by a decrease in professional services, compensation and benefits and advertising expenses of $1.1 million, $808 thousand and $707 thousand, respectively, offset in part by increases in occupancy and equipment, FDIC premiums and data processing expense of $725 thousand, $418 thousand and $365 thousand, respectively.
•As noted in the quarter comparison, the provision for commitments and letters of credit is recorded in the provision for credit losses in 2023. In 2022, the Company recorded a release of the provision for commitments and letters of credit of $311 thousand.
Income tax expense compared to the year ended December 31, 2022:
•The Company did not record a tax benefit for the loss incurred during 2023 due to the full valuation allowance required on its deferred tax assets. The effective tax rate for 2022 of 12.36% was a result of the taxable income produced during the prior year period, partially offset by the ability to utilize a portion of the net operating losses that were fully reserved.
•The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At December 31, 2023, the valuation allowance on deferred tax assets was $24.0 million.
3


Balance Sheet Summary:
December 31, 2023 compared to December 31, 2022
Securities available-for-sale:
•Securities available-for-sale decreased $30.5 million to $283.8 million due to sales, maturities and calls during the year partially offset by purchases and a $5.5 million improvement in the unrealized loss position on the portfolio.
•In the fourth quarter of 2023, the Company sold $9.3 million of securities available for sale for a net gain of $20 thousand and purchased $15.5 million in higher yielding securities.
Gross loans:
•Gross loans held for investment increased $15.6 million to $1.56 billion.
•Construction loans increased $42.6 million, non-residential real estate loans increased $15.7 million and commercial and industrial loans increased $7.9 million, while residential and multifamily loans decreased $46.3 million and $8.1 million, respectively.
•Originations totaled $119.6 million, including originations of $35.6 million in construction loans, $27.4 million in non-residential real estate loans and $17.3 million in multifamily loans. In addition, the Company originated $7.8 million of residential mortgage loans and purchased $6.8 million of conforming residential mortgages in New Jersey during the year.
Deposits and borrowings:
•Deposits totaled $1.24 billion, a decrease of $44.0 million since December 31, 2022. Core deposits represented 52.1% of total deposits compared to 67.7% at December 31, 2022.
•FHLB borrowings increased by $87.0 million to $397.5 million to support loan growth and offset the decrease in deposits.
Capital:
•Shareholders’ equity decreased by $38.1 million to $355.6 million. The decrease was primarily driven by the repurchase of shares at a cost of $36.3 million.
•The net loss of $7.4 million was partially offset by $3.8 million in share-based plan activity and a $1.8 million favorable change in accumulated other comprehensive loss.
•Tangible equity to tangible assets was 17.37% and 19.24% at December 31, 2023 and 2022, respectively.
•Tangible common equity per share outstanding was $14.49 at December 31, 2023 and $14.28 at December 31, 2022.
•The Bank’s capital ratios remain above the FDIC’s “well capitalized” standards.
Asset quality:
•Non-performing loans totaled $5.9 million, or 0.38% of total loans at December 31, 2023 compared to $7.8 million, or 0.50% of total loans at December 31, 2022.
•The allowance for credit losses on loans represented 0.91% of total loans at December 31, 2023 compared to 0.87% at December 31, 2022. The allowance for credit losses on loans was 239.98% of non-performing loans compared to 172.52% at December 31, 2022.
•The Company recorded a net provision for credit losses of $156 thousand for the quarter ended December 31, 2023 and a release of net provision for credit losses of $441 thousand for the year ended December 31, 2023.
•Net charge-offs were $16 thousand and $60 thousand for the quarter and year ended December 31, 2023, respectively.
Off-Balance Sheet:
•To help manage our interest rate position, the Company had $259.0 million in interest rate hedges at December 31, 2023, with a weighted average duration of 3.2 years and a weighted average rate of 2.58%, increasing by $150.0 million from $109.0 million at December 31, 2022
4


About Blue Foundry
Blue Foundry Bancorp is the holding company for Blue Foundry Bank, a place where things are made, purpose is formed, and ideas are crafted. Headquartered in Rutherford NJ, with a presence in Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Somerset and Union counties, Blue Foundry Bank is a full-service, innovative bank serving the doers, movers, and shakers in our communities. We offer individuals and businesses alike the tailored products and services they need to build their futures. With a rich history dating back more than 145 years, Blue Foundry Bank has a longstanding commitment to its customers and communities. To learn more about Blue Foundry Bank visit BlueFoundryBank.com or call (888) 931-BLUE. Member FDIC.
Conference Call Information
A conference call discussing Blue Foundry’s fourth quarter and year ended December 31, 2023 financial results will be held today, Wednesday, January 24, 2024 at 11:00 a.m. (EST). To listen to the live call, please dial 1-833-470-1428 (toll free) and use access code 416218. Participants are encouraged to preregister to listen via webcast at https://events/q4inc.com/attendee/888056143. The conference call will be recorded and will be available on the Company’s website for one month.
Contact:
James D. Nesci
President and Chief Executive Officer
jnesci@bluefoundrybank.com
201-972-8900
5


Forward Looking Statements
Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions.
Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make; general economic conditions, either nationally or in our market areas, that are worse than expected; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in our market area; our ability to implement and change our business strategies; competition among depository and other financial institutions; the effects of the recent turmoil in the banking industry (including the failures of two financial institutions); adverse changes in the securities or secondary mortgage markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums; changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; changes in the quality or composition of our loan or investment portfolios; technological changes that may be more difficult or expensive than expected; a failure or breach of our operational or security systems or infrastructure, including cyber-attacks; the inability of third party providers to perform as expected; our ability to manage market risk, credit risk and operational risk in the current economic environment; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related there to; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; our ability to retain key employees; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the impact of potential government shutdown; the ability of the U.S. Government to manage federal debt limits; and changes in the financial condition, results of operations or future prospects of issuers of securities that we own.
Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

6



BLUE FOUNDRY BANCORP AND SUBSIDIARY
Consolidated Statements of Financial Condition
December 31,
2023		September 30,
2023		December 31,
2022
(Unaudited)(Unaudited)(Audited)
(In thousands)
ASSETS
Cash and cash equivalents
$46,025 $52,407 $41,182 
Securities available for sale, at fair value283,766 283,649 314,248 
Securities held to maturity33,254 33,298 33,705 
Other investments20,346 20,515 16,069 
Loans held for sale— 2,435 — 
Loans, net1,546,576 1,557,118 1,531,727 
Real estate owned, net593 593 — 
Interest and dividends receivable7,595 7,787 6,893 
Premises and equipment, net32,475 32,031 29,825 
Right-of-use assets25,172 25,885 25,906 
Bank owned life insurance22,034 21,919 21,576 
Other assets27,127 22,939 22,207 
Total assets$2,044,963 $2,060,576 $2,043,338 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits$1,244,904 $1,253,104 $1,288,862 
Advances from the Federal Home Loan Bank397,500 402,500 310,500 
Advances by borrowers for taxes and insurance8,929 9,615 9,302 
Lease liabilities26,777 27,466 27,324 
Other liabilities11,213 8,742 13,632 
Total liabilities1,689,323 1,701,427 1,649,620 
Shareholders’ equity355,640 359,149 393,718 
Total liabilities and shareholders’ equity$2,044,963 $2,060,576 $2,043,338 


7


BLUE FOUNDRY BANCORP AND SUBSIDIARY
Consolidated Statements of Operations
(Dollars in thousands except per share data)
Three months endedYear Ended December 31,
December 31, 2023September 30, 2023December 31, 202220232022
(unaudited)(Unaudited)(Audited)
Interest income:
Loans$16,907 $16,728 $14,487 $65,685 $52,279 
Taxable investment income3,327 3,339 2,971 12,990 9,678 
Non-taxable investment income101 106 111 430 456 
Total interest income20,335 20,173 17,569 79,105 62,413 
Interest expense:
Deposits7,755 7,034 2,482 24,116 5,738 
Borrowed funds3,384 3,263 2,160 13,070 4,832 
Total interest expense11,139 10,297 4,642 37,186 10,570 
Net interest income9,196 9,876 12,927 41,919 51,843 
Net provision (release of provision) for credit losses156 (717)(224)(441)(1,001)
Net interest income after provision for credit losses9,040 10,593 13,151 42,360 52,844 
Non-interest income:
Fees and service charges331 291 341 1,164 2,156 
Gain on securities, net20 — — 20 14 
Gain on sale of loans72 — — 231 — 
Other income149 78 103 390 494 
Total non-interest income 572 369 444 1,805 2,664 
Non-interest expense:
Compensation and benefits6,887 6,640 7,620 28,439 29,247 
Occupancy and equipment2,140 2,104 1,909 8,350 7,625 
Data processing1,510 1,473 1,324 6,119 5,754 
Advertising120 85 68 354 1,061 
Professional services631 646 838 3,021 4,117 
Release of provision for commitments and letters of credit— — (203)— (311)
Federal deposit insurance premiums200 263 105 799 381 
Other expense1,055 1,183 1,208 4,480 4,900 
Total non-interest expenses12,543 12,394 12,869 51,562 52,774 
(Loss) income before income tax expense(2,931)(1,432)726 (7,397)2,734 
Income tax expense — — 164 — 338 
Net (loss) income$(2,931)$(1,432)$562 $(7,397)$2,396 
Basic (loss) earnings per share$(0.13)$(0.06)$0.02 $(0.31)$0.09 
Diluted (loss) earnings per share$(0.13)$(0.06)$0.02 $(0.31)$0.09 
Weighted average shares outstanding-basic22,845,25223,278,49025,713,53423,925,72426,165,841
Weighted average shares outstanding-diluted22,845,25223,278,49026,013,01523,925,72426,270,864
8


BLUE FOUNDRY BANCORP AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in thousands except for share data) (Unaudited)
Three months ended
December 31,
2023		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022
Performance Ratios (%)
(Loss) return on average assets(0.57)(0.27)(0.35)(0.24)0.11 
(Loss) return on average equity(3.25)(1.55)(1.95)(1.25)0.56 
Interest rate spread (1)
1.33 1.48 1.75 2.05 2.35 
Net interest margin (2)
1.84 1.94 2.17 2.42 2.62 
Efficiency ratio (non-GAAP) (3)
128.41 120.98 114.90 109.92 97.76 
Average interest-earning assets to average interest-bearing liabilities122.93 123.05 130.77 126.39 128.30 
Tangible equity to tangible assets (4)
17.37 17.07 17.59 18.33 19.24 
Book value per share (5)
$14.51 $14.27 $14.38 $14.08 $14.30 
Tangible book value per share (5)
$14.49 $14.24 $14.35 $14.06 $14.28 
Asset Quality
Non-performing loans$5,898 $6,139 $7,736 $7,481 $7,767 
Real estate owned, net593 593 — — — 
Non-performing assets$6,491 $6,732 $7,736 $7,481 $7,767 
Allowance for credit losses on loans to total loans (%)0.91 0.88 0.91 0.89 0.87 
Allowance for credit losses on loans to non-performing loans (%)239.98 225.97 186.31 189.18 172.52 
Non-performing loans to total loans (%)0.38 0.39 0.49 0.47 0.50 
Non-performing assets to total assets (%)0.32 0.33 0.37 0.36 0.38 
Net charge-offs to average outstanding loans during the period (%)— 0.01 — — (0.01)

(1)    Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(2)    Net interest margin represents net interest income divided by average interest-earning assets.
(3)     Efficiency ratio represents adjusted non-interest expense divided by the sum of net interest income plus non-interest income.
(4)     Tangible equity equals $355.1 million, which excludes intangible assets ($557 thousand of capitalized software). Tangible assets equal $2.04 billion and exclude intangible assets.
(5)     Per share metrics are computed using 24,509,950 total shares outstanding.









9


BLUE FOUNDRY BANCORP AND SUBSIDIARY
Analysis of Net Interest Income
(Unaudited)

Three Months Ended
December 31, 2023September 30, 2023December 31, 2022
 Average Balance  Interest  Average
Yield/Cost 		Average BalanceInterestAverage
Yield/Cost		Average BalanceInterestAverage
Yield/Cost
(Dollars in thousands)
Assets:
Loans (1)
$1,564,800 $16,907 4.29 %$1,577,173 $16,728 4.21 %$1,511,941 $14,487 3.80 %
Mortgage-backed securities165,471 904 2.17 %170,326 840 1.96 %187,213 1,092 2.31 %
Other investment securities190,507 1,486 3.09 %194,953 1,507 3.07 %200,013 1,425 2.83 %
FHLB stock20,970 477 9.02 %21,047 456 8.60 %17,225 216 4.96 %
Cash and cash equivalents45,895 561 4.85 %51,884 642 4.91 %44,718 349 3.10 %
Total interest-bearing assets1,987,643 20,335 4.06 %2,015,383 20,173 3.97 %1,961,110 17,569 3.55 %
Non-interest earning assets54,918 58,042 52,258 
Total assets$2,042,561 $2,073,425 $2,013,368 
Liabilities and shareholders' equity:
NOW, savings, and money market deposits$634,257 1,989 1.24 %$684,228 2,123 1.23 %$848,199 1,636 0.77 %
Time deposits584,977 5,766 3.91 %558,252 4,911 3.49 %356,377 846 0.94 %
Interest-bearing deposits1,219,234 7,755 2.52 %1,242,480 7,034 2.25 %1,204,576 2,482 0.82 %
FHLB advances397,643 3,384 3.38 %395,359 3,263 3.27 %323,903 2,160 2.65 %
Total interest-bearing liabilities1,616,877 11,139 2.73 %1,637,839 10,297 2.49 %1,528,479 4,642 1.20 %
Non-interest bearing deposits26,629 25,540 42,144 
Non-interest bearing other41,780 44,628 47,746 
Total liabilities1,685,286 1,708,007 1,618,369 
Total shareholders' equity357,275 365,418 394,999 
Total liabilities and shareholders' equity$2,042,561 $2,073,425 $2,013,368 
Net interest income$9,196 $9,876 $12,927 
Net interest rate spread (2)
1.33 %1.48 %2.35 %
Net interest margin (3)
1.84 %1.94 %2.62 %
(1)     Average loan balances are net of deferred loan fees and costs, and premiums and discounts, and include non-accrual loans.
(2)     Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(3)     Net interest margin represents net interest income divided by average interest-earning assets.

10


BLUE FOUNDRY BANCORP AND SUBSIDIARY
Analysis of Net Interest Income continued
(Unaudited)

Year Ended December 31,
20232022
Average BalanceInterestAverage
Yield/Cost		Average BalanceInterestAverage
Yield/Cost
(Dollar in thousands)
Assets:
Loans (1)
$1,569,590 $65,685 4.18 %$1,407,502 $52,279 3.71 %
Mortgage-backed securities172,405 3,693 2.14 %190,540 3,934 2.06 %
Other investment securities195,754 6,010 3.07 %203,002 4,820 2.37 %
FHLB stock21,249 1,582 7.45 %12,629 587 4.65 %
Cash and cash equivalents46,245 2,135 4.62 %88,703 793 0.89 %
Total interest-bearing assets2,005,243 79,105 3.94 %1,902,376 62,413 3.28 %
Non-interest earning assets56,297 64,786 
Total assets$2,061,540 $1,967,162 
Liabilities and shareholders' equity:
NOW, savings, and money market deposits$722,149 8,339 1.15 %$812,473 2,959 0.36 %
Time deposits501,124 15,777 3.15 %412,734 2,779 0.67 %
Interest-bearing deposits1,223,273 24,116 1.97 %1,225,207 5,738 0.47 %
FHLB advances396,265 13,070 3.30 %235,589 4,832 2.05 %
Total interest-bearing liabilities1,619,538 37,186 2.30 %1,460,796 10,570 0.72 %
Non-interest bearing deposits25,227 44,029 
Non-interest bearing other43,868 47,707 
Total liabilities1,688,633 1,552,532 
Total shareholders' equity372,907 414,630 
Total liabilities and shareholders' equity$2,061,540 $1,967,162 
Net interest income$41,919 $51,843 
Net interest rate spread (2)
1.64 %2.56 %
Net interest margin (3)
2.09 %2.73 %
(1)     Average loan balances are net of deferred loan fees and costs, and premiums and discounts, and include non-accrual loans.
(2)    Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(3)     Net interest margin represents net interest income divided by average interest-earning assets.


11



BLUE FOUNDRY BANCORP AND SUBSIDIARY
Adjusted Pre-Provision Net Revenue (Non-GAAP)
(Dollars in thousands except per share data) (Unaudited)

This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Blue Foundry's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Blue Foundry's financial results. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Blue Foundry strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Net income, as presented in the Consolidated Statements of Operations, includes the provision for loan losses, provision for commitments and letters of credit, and income tax expense while pre-provision net revenue does not.

Three months ended
December 31, 2023September 30, 2023June 30,
2023		March 31, 2023December 31, 2022
Pre-provision net revenue (PPNR) and efficiency ratio, as adjusted:
Net interest income$9,196 $9,876 $10,906 $11,941 $12,927 
Other income572 369 380 484 444 
9,768 10,245 11,286 12,425 13,371 
Operating expenses, as reported12,543 12,394 12,968 13,657 12,869 
Less:
Loss on assets held for sale— — — — (203)
Operating expenses, as adjusted12,543 12,394 12,968 13,657 13,072 
Pre-provision net (loss) revenue, as adjusted$(2,775)$(2,149)$(1,682)$(1,232)$299 
Efficiency ratio128.4 %121.0 %114.9 %109.9 %97.8 %
Core deposits:
Total deposits$1,244,904 $1,253,104 $1,267,261 $1,244,581 $1,288,862 
Less: time deposits596,624 572,384 521,074 422,911 416,260 
Core deposits$648,280 $680,720 $746,187 $821,670 $872,602 
Core deposits to total deposits52.1 %54.3 %58.9 %66.0 %67.7 %
Tangible equity:
Shareholders’ equity
$355,640 $359,149 $366,534 $385,693 $393,718 
Less: intangible assets557 644 730 781 798 
Tangible equity$355,083 $358,505 $365,804 $384,912 $392,920 
Tangible book value per share:
Tangible equity$355,083 $358,505 $365,804 $384,912 $392,920 
Shares outstanding24,509,950 25,174,412 25,493,422 27,385,482 27,523,219 
Tangible book value per share$14.49 $14.24 $14.35 $14.06 $14.28 

12
v3.23.4
Cover
Jan. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 24, 2024
Entity Registrant Name BLUE FOUNDRY BANCORP
Entity Incorporation, State or Country Code DE
Entity File Number 001-40619
Entity Tax Identification Number 86-2831373
Entity Address, Address Line One 19 Park Avenue
Entity Address, City or Town Rutherford
Entity Address, State or Province NJ
Entity Address, Postal Zip Code 07070
City Area Code 201
Local Phone Number 939-5000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value
Trading Symbol BLFY
Security Exchange Name NASDAQ
Entity Emerging Growth Company true
Entity Ex Transition Period false
Entity Central Index Key 0001846017
Amendment Flag false
Blue Foundry Bancorp (NASDAQ:BLFY)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Blue Foundry Bancorp Charts.
Blue Foundry Bancorp (NASDAQ:BLFY)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Blue Foundry Bancorp Charts.