On July 24, 2024, Blue Foundry Bancorp (NASDAQ:BLFY) released its 8-K filing for the second quarter of 2024. Blue Foundry Bancorp is a full-service bank that originates various types of loans and attracts retail deposits through its banking offices and online presence. The company also invests in securities, deriving revenue primarily from interest on loans and investments.
Performance Overview
For the three months ended June 30, 2024, Blue Foundry Bancorp reported a net loss of $2.3 million, or $0.11 per diluted common share. This is an improvement from the net loss of $2.8 million, or $0.13 per diluted common share, in the previous quarter but a decline from the net loss of $1.8 million, or $0.08 per diluted common share, in the same period last year. The reported earnings per share (EPS) of -$0.11 fell short of the analyst estimate of -$0.09.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Loss | -$2.3 million | -$2.8 million | -$1.8 million |
| EPS | -$0.11 | -$0.13 | -$0.08 |
| Interest Income | $21.3 million | $20.8 million | $19.8 million |
| Interest Expense | $11.7 million | $11.4 million | $8.9 million |
| Net Interest Margin | 1.96% | 1.92% | 2.17% |
Financial Achievements and Challenges
Despite the competitive environment, Blue Foundry Bancorp saw a $20.0 million increase in deposits, a 1.55% rise from the previous quarter. The company also reported a 2.2% increase in interest income to $21.3 million, while interest expense rose by 2.6% to $11.7 million. The net interest margin improved slightly to 1.96% from 1.92% in the prior quarter.
James D. Nesci, President and Chief Executive Officer, commented, “Deposit growth continued in the second quarter despite the highly competitive environment in our market area. We remain focused on growing the commercial loan portfolios and saw increases in commercial real estate and construction lending.”
However, the company continues to face challenges, including a decrease in net interest income compared to the same period last year, primarily due to higher rates paid on interest-bearing liabilities. The net interest margin also decreased by 21 basis points year-over-year.
Income Statement and Balance Sheet Highlights
Blue Foundry Bancorp's total loans decreased by $13.3 million to $1.55 billion, with residential and multifamily loans declining by $24.5 million and $11.4 million, respectively. However, construction loans and commercial real estate loans increased by $11.5 million and $9.4 million, respectively, aligning with the company's strategy to diversify its loan portfolio.
Deposits totaled $1.31 billion, a 5.32% increase from December 31, 2023, driven by a $74.9 million rise in time deposits. The company's core deposits represented 48.8% of total deposits, down from 52.1% at the end of 2023.
Asset Quality and Capital Position
As of June 30, 2024, the allowance for credit losses on loans was 0.84% of gross loans. Non-performing loans totaled $6.2 million, or 0.40% of total loans, compared to $5.9 million, or 0.38% of total loans, at the end of 2023. The company's tangible equity to tangible assets ratio was 16.88%, and tangible book value per share was $14.69.
Mr. Nesci continued, “The Company continues to maintain its strong capital position and access to liquidity. We continued to repurchase shares and increased our tangible book value to $14.69 per share.”
For more detailed financial information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Blue Foundry Bancorp for further details.
