0001846017false00018460172023-07-262023-07-26

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): July 26, 2023

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 July 26, 2023, Blue Foundry Bancorp (the “Company”), the holding company for Blue Foundry Bank (the "Bank") issued a press release reporting its financial results for the period ended June 30, 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.

99.1
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:July 26, 2023By:/s/ James D. Nesci
James D. Nesci
President and Chief Executive Officer

Exhibit 99.1

FOR IMMEDIATE RELEASE

Blue Foundry Bancorp Reports Second Quarter 2023 Results

RUTHERFORD, NJ, July 26, 2023 — Blue Foundry Bancorp (NASDAQ:BLFY) (the “Company”), the holding company for Blue Foundry Bank (the “Bank”), today reported a net loss of $1.8 million, or $0.08 per diluted common share, for the three months ended June 30, 2023, compared to net loss of $1.2 million, or $0.05 per diluted common share, for the three months ended March 31, 2023, and net income of $40 thousand for the three months ended June 30, 2022.
“Blue Foundry continues to maintain its strong capital position and access to liquidity, as well as a diversified deposit base and a low percentage of uninsured deposits to customers,” said James D. Nesci, President and Chief Executive Officer.
He continued, “Our second quarter performance largely reflects the impact that the inverted yield curve and the highly competitive rate environment in northern New Jersey has had on our funding base. Despite this, we are seeing our investments in technology lead to productivity saves through lower operating expenses. We also remain active in lending markets, focusing on the organic origination of commercial loans with strong credit metrics.”
Highlights for the second quarter of 2023:
•Deposits increased $22.7 million, or 1.8%, compared to the prior quarter.
•Non-interest expense decreased $689 thousand or 5.1% sequentially, primarily driven by lower compensation and benefits expenses.
•Uninsured deposits to third-party customers totaled approximately 14% of total deposits as of June 30, 2023.
•Interest income for the quarter was $19.8 million, an increase of $933 thousand, or 5.0%, compared to the prior quarter.
•Interest expense for the quarter was $8.9 million, an increase of $2.0 million, or 28.6%, compared to the prior quarter.
•Net interest margin decreased 25 basis points from the prior quarter to 2.17%.
•Tangible book value per share was $14.35.
•1,892,060 shares were repurchased at a weighted average cost of $9.68.
Lending Franchise
The Company continues to diversify its lending franchise by focusing on growing the commercial portfolio. During the first half of 2023, total loans increased by $36.6 million primarily due to growth within the Company’s non-residential real estate, construction, multifamily and commercial and industrial portfolios.
The details of the loan portfolio are below:
June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022
(In thousands)
Residential one-to-four family$580,396 $592,809 $597,254 $594,795 $593,563 
Multifamily696,956 695,207 690,690 680,181 580,060 
Non-residential real estate237,247 239,844 216,061 185,147 211,429 
Construction and land36,032 28,141 17,799 12,792 20,762 
Junior liens21,338 19,644 18,631 16,778 16,537 
Commercial and industrial9,743 10,357 4,653 4,705 5,875 
Consumer and other33 58 39 39 47 
Total loans1,581,745 1,586,060 1,545,127 1,494,437 1,428,273 
Less: Allowance for credit losses14,413 14,153 13,400 13,600 14,050 
Loans receivable, net$1,567,332 $1,571,907 $1,531,727 $1,480,837 $1,414,223 
.
1

Retail Banking Franchise
As of June 30, 2023, deposits totaled $1.27 billion, an increase of $22.7 million, or 1.8%, from March 31, 2023. While the Company continues to focus on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products, the rate environment in the northern New Jersey market has intensified competition for deposits. The reduction of $75.5 million in core deposits was more than offset by an increase of $98.2 million in time deposits, including $50.0 million of brokered deposits.
The details of deposits are below:
June 30, 2023March 31, 2023December 31, 2022September 30, 2022June 30, 2022
(In thousands)
Non-interest bearing deposits$26,067 $32,518 $37,907 $48,097 $43,655 
NOW and demand accounts404,407 427,281 410,937 396,873 464,157 
Savings315,713 361,871 423,758 455,979 358,166 
Core deposits746,187 821,670 872,602 900,949 865,978 
Time deposits521,074 422,911 416,260 365,548 430,696 
Total deposits$1,267,261 $1,244,581 $1,288,862 $1,266,497 $1,296,674 
Financial Performance Overview:    
Second quarter of 2023 compared to the second quarter of 2022
Net interest income compared to the second quarter of 2022:
•Net interest income was $10.9 million in the three months ended June 30, 2023 compared to $13.2 million in same period in 2022 due to increases in rates paid on interest-bearing liabilities.
•Net interest margin decreased by 66 basis points to 2.17%.
•Yield on average interest-earning assets increased 74 basis points to 3.93%, while the cost of average interest-bearing liabilities increased 170 basis points to 2.18%.
•Average loans increased by $213.7 million and average interest-bearing liabilities increased by $208.3 million.
Non-interest expense compared to the second quarter of 2022:
•Non-interest expense was $13.0 million, a decrease of $159 thousand excluding the provision for commitments and letters of credit, driven by a decrease of $272 thousand in advertising, a decrease of $212 thousand in professional services and a decrease of $69 thousand in compensation and benefits expenses, partially offset by an increase of $210 thousand in occupancy and equipment, an increase of $142 thousand in data processing and an increase of $132 thousand in FDIC assessment.
•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 second quarter of 2022, the Company recorded a $108 thousand release of its provision for commitments and letters of credit.
Income tax expense compared to the second quarter of 2022:
•The Company did not record a tax benefit for the loss incurred during the current quarter due to the full valuation allowance required on its deferred tax assets. The prior year quarter effective tax rate of 7.0% was a result of the taxable income produced during the prior year 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 June 30, 2023, the valuation allowance on deferred tax assets was $22.1 million.
2

Six months ended June 30, 2023 compared to the six months ended June 30, 2022
Net interest income compared to the six months ended June 30, 2022:
•Net interest income was $22.8 million, a decrease of $2.3 million.
•Net interest margin decreased by 43 basis points to 2.29%.
•Yield on average interest-earning assets increased 78 basis points to 3.87% while the cost of average interest-bearing deposits increased 125 basis points to 1.55%.
•Average loans increased by $243.0 million and average interest-bearing deposits decreased by $15.7 million.
Non-interest expense compared to the six months ended June 30, 2022:
•Non-interest expense was $26.6 million, an increase of $112 thousand excluding the provision of commitments and letters of credit, driven by an increase of $718 thousand in compensation and benefits costs, $311 thousand in occupancy and equipment costs and $265 thousand in data processing expense, partially offset by decreases of $719 thousand in advertising and $523 thousand in fees for professional services.
•The Company recorded a $278 thousand release of its provision for commitments and letters of credit in the first half of 2022.
Income tax expense compared to the six months ended June 30, 2022:
•The Company did not record a tax benefit for the loss incurred during the six months ended June 30, 2023 due to the full valuation allowance required on its deferred tax assets. The six months ended June 30, 2022 effective tax rate of 8.1% 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 June 30, 2023, the valuation allowance on deferred tax assets was $22.1 million.
Balance Sheet Summary:
June 30, 2023 compared to December 31, 2022
Cash and cash equivalents:
•Cash and cash equivalents increased $4.6 million compared to December 31, 2022.
Securities available-for-sale:
•Securities available-for-sale decreased $13.3 million to $300.9 million due to amortization and payoffs.
•Unrealized losses improved slightly to a net loss of $35.9 million.
Total loans:
•Total loans held for investment increased $36.6 million to $1.58 billion.
•Non-residential real estate loans increased $21.2 million, construction and land loans increased $18.2 million, commercial and industrial increased $5.1 million and multifamily loans increased $6.3 million.
Deposits:
•Deposits totaled $1.27 billion, a decrease of $21.6 million from December 31, 2022, largely the result of the competitive rate environment.
•Core deposits represented 58.9% of total deposits, compared to 67.7% at December 31, 2022 and 66.8% at June 30, 2022.
•Uninsured and uncollateralized deposits to third party customers were $172.5 million, or 14% of total deposits, at the end of the second quarter.
Borrowings:
•FHLB borrowings increased by $89.0 million to $399.5 million to support loan growth and replace deposit attrition.
•During the first quarter of 2023, the Company executed $100 million of hedges on interest rates with maturities ranging from three to five years. The Company’s hedging program aims to reduce the Company’s sensitivity to interest rate by locking in spread.
3

•As of June 30, 2023, the Company had $363.0 million of additional borrowing capacity at FHLB and $32.5 million of other unsecured lines of credit.
Capital:
•Shareholders’ equity decreased by $27.2 million to $366.5 million. The decrease was primarily driven by the $27.4 million cost of shares repurchased and a $3.1 million reduction in retained earnings, partially offset by stock-based compensation activity.
•Tangible equity to tangible assets was 17.59% and tangible common equity per share outstanding was $14.35.
•The Bank’s capital ratios remain above the FDIC’s “well capitalized” standards.
Asset quality:
•As of June 30, 2023, the Allowance for Credit Losses as a percentage of gross loans was 0.91%.
•The Company recorded a net provision for credit losses of $143 thousand for the quarter ended June 30, 2023, driven by an increase in the allowance for loans, partially offset by a decrease in the allowance for commitments.
•Non-performing loans totaled $7.7 million, or 0.49% of total loans compared to $7.8 million, or 0.50% of total loans at December 31, 2022, and $10.0 million, or 0.70% of total loans at June 30, 2022.
•Net charge-offs were $13 thousand for the quarter ended June 30, 2023 and $17 thousand for the six months ended June 30, 2023.

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, 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 covering Blue Foundry’s second quarter 2023 earnings announcement will be held today, Wednesday, July 26, 2023 at 11:00 a.m. (EDT). To listen to the live call, please dial 1-833-470-1428 (toll free) or +1-404-975-4839 (international) and use access code 445457. The webcast (audio only) will be available on ir.bluefoundrybank.com. 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
BlueFoundryBank.com
jnesci@bluefoundrybank.com
201-972-8900
4

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 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.

5

BLUE FOUNDRY BANCORP AND SUBSIDIARY
Consolidated Statements of Financial Condition

June 30, 2023March 31, 2023December 31,
2022
(unaudited)(unaudited)
(Dollars in Thousands)
ASSETS
Cash and cash equivalents
$45,759 $57,621 $41,182 
Securities available-for-sale, at fair value300,923 309,083 314,248 
Securities held to maturity 33,445 33,472 33,705 
Other investments20,420 21,070 16,069 
Loans held-for-sale2,497 2,552 — 
Loans, net1,567,332 1,571,907 1,531,727 
Interest and dividends receivable7,285 7,375 6,893 
Premises and equipment, net31,519 30,839 29,825 
Right-of-use assets26,594 26,320 25,906 
Bank owned life insurance21,802 21,688 21,576 
Other assets22,938 19,128 22,207 
Total assets$2,080,514 $2,101,055 $2,043,338 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits$1,267,261 $1,244,581 $1,288,862 
Advances from the Federal Home Loan Bank399,500 422,500 310,500 
Advances by borrowers for taxes and insurance9,862 9,695 9,302 
Lease liabilities28,130 27,799 27,324 
Other liabilities9,227 10,787 13,632 
Total liabilities1,713,980 1,715,362 1,649,620 
Shareholders’ equity366,534 385,693 393,718 
Total liabilities and shareholders’ equity$2,080,514 $2,101,055 $2,043,338 




6

BLUE FOUNDRY BANCORP AND SUBSIDIARY
Consolidated Statements of Operations
(Dollars in Thousands Except Per Share Data) (Unaudited)
Three months endedSix months ended
June 30, 2023March 31, 2023June 30, 2022June 30, 2023June 30, 2022
(Dollars in thousands)
Interest income:
Loans$16,481 $15,569 $12,444 $32,050 $24,100 
Taxable investment income3,172 3,152 2,320 6,324 4,137 
Non-taxable investment income112 111 114 223 235 
Total interest income19,765 18,832 14,878 38,597 28,472 
Interest expense:
Deposits5,173 4,154 950 9,327 1,832 
Borrowed funds3,686 2,737 766 6,423 1,539 
Total interest expense8,859 6,891 1,716 15,750 3,371 
Net interest income10,906 11,941 13,162 22,847 25,101 
Provision for (release of) credit losses143 (23)594 120 (358)
Net interest income after provision for (release of) credit losses10,763 11,964 12,568 22,727 25,459 
Non-interest income:
Fees and service charges280 262 365 542 1,165 
Gain on securities, net— — 14 — 14 
Gain on sale of loans24 135 — 159 — 
Other income76 87 115 163 242 
Total non-interest income380 484 494 864 1,421 
Non-interest expense:
Compensation and employee benefits7,065 7,847 7,134 14,912 14,194 
Occupancy and equipment2,124 1,982 1,914 4,106 3,795 
Data processing1,535 1,601 1,393 3,136 2,871 
Advertising77 72 349 149 868 
Professional services764 980 976 1,744 2,267 
Release of provision for commitments and letters of credit— — (108)— (278)
Federal deposit insurance231 105 99 336 177 
Other1,172 1,070 1,262 2,242 2,341 
Total non-interest expense12,968 13,657 13,019 26,625 26,235 
(Loss) income before income tax expense(1,825)(1,209)43 (3,034)645 
Income tax expense— — 3 — 52 
Net (loss) income$(1,825)$(1,209)$40 $(3,034)$593 
Basic (loss) earnings per share$(0.08)$(0.05)$— $(0.13)$0.02 
Diluted (loss) earnings per share$(0.08)$(0.05)$— $(0.13)$0.02 
Weighted average shares outstanding-basic and diluted (1)24,249,714 25,374,653 26,366,324 24,131,017 26,354,979
(1) The assumed vesting of outstanding restricted stock units had an antidilutive effect on diluted earnings per share due to the Company’s net loss for the 2023 periods. There were no equity awards to cause dilution in the 2022 periods.
7

BLUE FOUNDRY BANCORP AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands Except Per Share Data) (Unaudited)
Three months ended
June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022
Performance Ratios (%):
(Loss) return on average assets(0.35)(0.24)0.11 0.25 0.01 
(Loss) return on average equity(1.95)(1.25)0.56 1.20 0.04 
Interest rate spread (1)
1.75 2.05 2.35 2.68 2.71 
Net interest margin (2)
2.17 2.42 2.62 2.84 2.83 
Efficiency ratio (non-GAAP) (3)
114.90 109.92 97.76 92.37 96.13 
Average interest-earning assets to average interest-bearing liabilities130.77 126.39 128.30 130.30 131.52 
Tangible equity to tangible assets (4)
17.59 18.33 19.24 19.72 20.97 
Book value per share (5)
$14.38 $14.08 $14.30 $14.11 $14.46 
Tangible book value per share (5)
$14.35 $14.06 $14.28 $14.09 $14.43 
Asset Quality:
Non-performing loans$7,736 $7,481 $7,767 $8,409 $9,998 
Real estate owned, net— — — — — 
Non-performing assets$7,736 $7,481 $7,767 $8,409 $9,998 
Allowance for credit losses to total loans (%)0.91 0.89 0.87 0.91 0.98 
Allowance for credit losses to non-performing loans (%)186.31 189.18 172.52 161.73 140.53 
Non-performing loans to total loans (%)0.49 0.47 0.50 0.56 0.70 
Non-performing assets to total assets (%)0.37 0.36 0.38 0.42 0.51 
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 $365.8 million, which exclude intangible assets ($730 thousand of capitalized software). Tangible assets equal $2.08 billion and exclude intangible assets.
(5) June 30, 2023 per share metrics computed using 25,493,422 total shares outstanding.

8

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

Three Months Ended,
June 30, 2023March 31, 2023June 30, 2022
 Average Balance  Interest  Average
Yield/Cost 		 Average Balance  Interest  Average
Yield/Cost 		 Average Balance  Interest  Average
Yield/Cost
(Dollars in thousands)
Assets:
Loans (1)
$1,583,057 $16,481 4.18 %$1,553,118 $15,569 4.07 %$1,369,389 $12,444 3.64 %
Mortgage-backed securities174,398 967 2.22 %179,604 982 2.22 %205,387 1,066 2.08 %
Other investment securities198,588 1,505 3.04 %199,069 1,512 3.08 %208,958 1,144 2.20 %
FHLB stock22,832 342 6.00 %20,141 308 6.20 %10,121 116 4.60 %
Cash and cash equivalents40,614 470 4.64 %46,530 461 4.02 %74,242 108 0.58 %
Total interest-earning assets2,019,489 19,765 3.93 %1,998,462 18,832 3.82 %1,868,097 14,878 3.19 %
Non-interest earning assets56,280 55,942 68,003 
Total assets$2,075,769 $2,054,404 $1,936,100 
Liabilities and shareholders' equity:
NOW, savings, and money market deposits$754,048 2,217 1.18 %$805,392 2,010 1.01 %$800,918 312 0.16 %
Time deposits442,547 2,956 2.68 %416,238 2,144 2.09 %431,813 638 0.59 %
Interest-bearing deposits1,196,595 5,173 1.73 %1,221,630 4,154 1.38 %1,232,731 950 0.29 %
FHLB advances432,137 3,686 3.42 %359,511 2,737 3.09 %187,698 766 1.64 %
Total interest-bearing liabilities1,628,732 8,859 2.18 %1,581,141 6,891 1.77 %1,420,429 1,716 0.48 %
Non-interest bearing deposits26,914 34,879 48,763 
Non-interest bearing other44,240 44,850 46,688 
Total liabilities1,699,886 1,660,870 1,515,880 
Total shareholders' equity375,883 393,534 420,220 
Total liabilities and shareholders' equity$2,075,769 $2,054,404 $1,936,100 
Net interest income$10,906 $11,941 $13,162 
Net interest rate spread (2)
1.75 %2.05 %2.71 %
Net interest margin (3)
2.17 %2.42 %2.83 %
(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.
9

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

Six Months Ended June 30,
20232022
 Average Balance  Interest  Average
Yield/Cost 		 Average Balance  Interest  Average
Yield/Cost
(Dollars in thousands)
Assets:
Loans (1)
$1,568,170 $32,050 4.12 %$1,325,134 $24,100 3.67 %
Mortgage-backed securities176,987 1,949 2.22 %188,742 1,788 1.91 %
Other investment securities198,827 3,017 3.06 %203,756 2,164 2.14 %
FHLB stock21,494 649 6.09 %10,032 232 4.66 %
Cash and cash equivalents43,556 932 4.31 %131,158 188 0.29 %
Total interest-earning assets2,009,034 38,597 3.87 %1,858,822 28,472 3.09 %
Non-interest earning assets56,112 72,945 
Total assets$2,065,146 $1,931,767 
Liabilities and shareholders' equity:
NOW, savings, and money market deposits780,362 4,227 1.09 %780,609 548 0.14 %
Time deposits429,465 5,100 2.39 %444,889 1,284 0.58 %
Interest-bearing deposits1,209,827 9,327 1.55 %1,225,498 1,832 0.30 %
FHLB advances396,025 6,423 3.27 %186,605 1,539 1.66 %
Total interest-bearing liabilities1,605,852 15,750 1.98 %1,412,103 3,371 0.48 %
Non-interest bearing deposits30,091 46,213 
Non-interest bearing other44,543 47,482 
 Total liabilities1,680,486 1,505,798 
Total shareholders' equity384,660 425,969 
Total liabilities and shareholders' equity$2,065,146 $1,931,767 
Net interest income$22,847 $25,101 
Net interest rate spread (2)
1.89 %2.62 %
Net interest margin (3)
2.29 %2.72 %
(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
Adjusted Pre-Provision Net Revenue (Non-GAAP)
(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
June 30, 2023March 31, 2023December 31, 2022September 30, 2022June 30, 2022
(Dollars in thousands, except per share data)
Pre-provision net revenue (PPNR) and efficiency ratio, as adjusted:
Net interest income$10,906 $11,941 $12,927 $13,815 $13,162 
Other income380 484 444 799 494 
Operating expenses, as reported12,968 13,657 12,869 13,669 13,019 
Less: Provision for commitments and letters of credit— — (203)170 (108)
Operating expenses, as adjusted12,968 13,657 13,072 13,499 13,127 
Pre-provision net (loss) revenue, as adjusted$(1,682)$(1,232)$299 $1,115 $529 
Efficiency ratio, as adjusted114.9 %109.9 %97.8 %92.4 %96.1 %
Core deposits:
Total deposits$1,267,261 $1,244,581 $1,288,862 $1,266,497 $1,296,674 
Less: time deposits521,074 422,911 416,260 365,548 430,696 
Core deposits$746,187 $821,670 $872,602 $900,949 $865,978 
Core deposits to total deposits58.9 %66.0 %67.7 %71.1 %66.8 %
Tangible equity:
Shareholders’ equity$366,534 $385,693 $393,718 $397,338 $412,293 
Less: intangible assets730 781 798 760 630 
Tangible equity$365,804 $384,912 $392,920 $396,578 $411,663 
Tangible book value per share:
Tangible equity$365,804 $384,912 $— $392,920 $396,578 $411,663 
Shares outstanding25,493,422 27,385,482 27,523,219 28,155,292 28,522,500 
Tangible book value per share$14.35 $14.06 $14.28 $14.09 14.43 

11
v3.23.2
Cover
Jul. 26, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 26, 2023
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.