Blue Foundry Bancorp Reports Fourth Quarter and Year-End 2024 Results

RUTHERFORD, N.J., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Blue Foundry Bancorp (NASDAQ:BLFY) (the “Company”), the holding company for Blue Foundry Bank (the “Bank”), reported a net loss of $11.9 million, or $0.55 per diluted common share, for the year ended December 31, 2024 compared to a net loss of $7.4 million, or $0.31 per diluted common share for the year ended December 31, 2023. The Company reported a net loss of $2.7 million, or $0.13 per diluted common share, for the three months ended December 31, 2024 compared to a net loss of $4.0 million, or $0.19 per diluted common share for the three months ended September 30, 2024, and a net loss of $2.9 million, or $0.13 per diluted common share for the three months ended December 31, 2023. James D. Nesci, President and Chief Executive Officer, commented, “We are very pleased with both the deposit and loan growth achieved in the fourth quarter and look to carry this positive momentum into 2025.” Mr. Nesci also noted, “Credit quality remained strong and we continue to experience very low charge-offs. Our allowance to credit losses to total loans is 83 basis points and covers non-performing loans by over 2.5 times.” Highlights for the fourth quarter of 2024: Loans totaled $1.58 billion, an increase of $32.5 million from the prior quarter end.Deposits increased $24.7 million to $1.34 billion compared to the prior quarter.Uninsured deposits to third-party customers totaled approximately 11% of total deposits at December 31, 2024.Interest income for the quarter was $21.8 million, an increase of $253 thousand, or 1.2%, compared to the prior quarter.Interest expense for the quarter was $12.3 million, a decrease of $133 thousand, or 1.1%, compared to the prior quarter.Net interest margin increased seven basis points from the prior quarter to 1.89%.The release of provision for credit losses of $301 thousand was primarily due to the decrease in unused lines of credit and releases of provision for loans of $37 thousand and for securities of $24 thousand.Tangible book value per share was $14.74. See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.480,851 shares were repurchased under our share repurchase plans at a weighted average share price of $10.49 per share.Credit metrics remained favorable with non-performing loans to total loans of 0.33%. Loans The Company continues to diversify its lending portfolio by focusing on growing the higher-yielding commercial portfolio. Gross loans increased $22.8 million during 2024 with increases in commercial real estate loans, construction loans, consumer and other loans, commercial and industrial loans and junior liens of $27.1 million, $25.1 million, $7.2 million, $4.5 million and $2.9 million, respectively, offset in part by reductions in the residential portfolio of $32.7 million and multifamily portfolio of $11.4 million. The details of the loan portfolio are below: December 31, 2024 September 30, 2024 June 30,2024 March 31, 2024 December 31, 2023 (Unaudited) (Audited) (In thousands)Residential $518,243 $516,754 $526,453 $540,427 $550,929Multifamily 671,116 666,304 671,185 671,011 682,564Commercial real estate 259,633 241,711 241,867 244,207 232,505Construction and land 85,546 80,081 71,882 63,052 60,414Junior liens 25,422 24,174 23,653 22,052 22,503Commercial and industrial 16,311 14,228 12,261 13,372 11,768Consumer and other 7,211 7,731 83 56 47Total loans 1,583,482 1,550,983 1,547,384 1,554,177 1,560,730Allowance for credit losses on loans 12,965 13,012 13,027 13,749 14,154Loans receivable, net $1,570,517 $1,537,971 $1,534,357 $1,540,428 $1,546,576 Deposits At December 31, 2024, total deposits were $1.34 billion, an increase of $98.4 million or 7.91% from December 31, 2023, mostly due to the increases of $110.7 million and $8.4 million in time deposits and NOW and demand accounts, partially offset by decreases in savings and non-interest bearing deposits of $19.0 million and $1.7 million, respectively. The Company’s strategy is to focus on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products. While there is strong competition for deposits in the northern New Jersey market, we were able to increase customer deposits by $78.0 million, or 7.0%, during the year. Brokered deposits increased $30.0 million since year end 2023. The details of deposits are below: December 31, 2024 September 30, 2024 June 30,2024 March 31, 2024 December 31, 2023 (Unaudited) (Audited) (In thousands)Non-interest bearing deposits $26,001 $22,254 $24,733 $25,342 $27,739NOW and demand accounts 369,554 357,503 368,386 373,172 361,139Savings 240,426 237,651 246,559 250,298 259,402Core deposits 635,981 617,408 639,678 648,812 648,280Time deposits 707,339 701,262 671,478 642,372 596,624Total deposits $1,343,320 $1,318,670 $1,311,156 $1,291,184 $1,244,904 Financial Performance Overview: Fourth quarter of 2024 compared to the third quarter of 2024 Net interest income compared to the third quarter of 2024: Net interest income was $9.5 million for the fourth quarter of 2024 compared to $9.1 million for the third quarter of 2024, an increase of $386 thousand.Net interest margin increased by seven basis points to 1.89%.The yield on average interest-earning assets increased five basis points to 4.37%, while the cost of average interest-bearing liabilities decreased six basis points to 2.97% due to a decrease in rates paid on time deposits.Average interest-earning assets increased by $10.1 million and average interest-bearing liabilities increased by $15.4 million. Non-interest income compared to the third quarter of 2024: Non-interest income increased $33 thousand primarily due to increase in fees and service charges. Non-interest expense compared to the third quarter of 2024: Non-interest expense decreased $386 thousand primarily driven by decreases of $363 thousand in compensation and benefits expenses, $76 thousand in professional fees and $36 thousand in occupancy and equipment, partially offset by an increase in data processing expense of $102 thousand. Income tax expense compared to the third quarter of 2024: The Company did not record a tax benefit for the losses incurred during the third or fourth quarter of 2024 due to the full valuation allowance required on its deferred tax assets.The Company’s current tax position reflects the full valuation allowance on its deferred tax assets. At December 31, 2024, the valuation allowance on deferred tax assets was $25.1 million. Fourth quarter of 2024 compared to the fourth quarter of 2023 Net interest income compared to the fourth quarter of 2023: Net interest income was $9.5 million, an increase of $277 thousand.Net interest margin increased five basis point to 1.89%.Yield on average interest-earning assets increased 31 basis points to 4.37%.Cost of average interest-bearing deposits increased 38 basis points to 2.90%, reflecting the competitive rate environment in our primary market.Average loans increased by $7.5 million and average interest-bearing deposits increased by $94.2 million. Non-interest income compared to the fourth quarter of 2023: Non-interest income decreased $152 thousand, or 26.57%. The prior year period included gains on sales of loans and securities that were not present in the current period. In addition, there was a decline in fees and service charges from the prior period. Non-interest expense compared to the fourth quarter of 2023: Non-interest expense was $12.9 million, an increase of $338 thousand driven by increases in professional services expense, compensation and benefit costs and occupancy and equipment expense of $106 thousand, $56 thousand and $54 thousand, respectively, partially offset by a decrease in advertising expense of $39 thousand. In addition, other expense increased $131 thousand when compared to the fourth quarter of 2023 due in part to increases in business development and postage expenses. Income tax expense compared to the fourth quarter of 2023: The Company did not record a tax benefit for the loss incurred during the fourth quarter of 2024 or 2023 due to the full valuation allowance required on its deferred tax assets.The Company’s current tax position reflects the full valuation allowance on its deferred tax assets. At December 31, 2024, the valuation allowance on deferred tax assets was $25.1 million. Year ended December 31, 2024 compared to the year ended December 31, 2023 Net interest income compared to the year ended December 31, 2023: Net interest income was $37.6 million, a decrease of $4.4 million.Net interest margin decreased by 19 basis points to 1.90%.Yield on average interest-earning assets increased 38 basis points to 4.32%.Cost of average interest-bearing deposits increased 92 basis points to 2.89%, due to an increase in higher-cost time deposits and the competitive rate environment in our primary market.Average loans decreased by $16.4 million and average interest-bearing deposits increased by $52.6 million. Non-interest income compared to the year ended December 31, 2023: Non-interest income decreased $11 thousand, or 0.61%, largely due to the lack of gain on sale of loans and securities, offset in part by a gain on sale of an REO property in 2024. Non-interest expense compared to the year ended December 31, 2023: Non-interest expense was $52.6 million, an increase of $1.0 million, primarily driven by increases in compensation and benefits of $994 thousand, occupancy and equipment of $528 thousand and FDIC premiums of $56 thousand, offset in part by decreases in data processing expense and professional services of $471 thousand and $118 thousand, respectively. Income tax expense compared to the year ended December 31, 2023: The Company did not record a tax benefit for the loss incurred during 2024 or 2023 due to the full valuation allowance required on its deferred tax assets.The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At December 31, 2024, the valuation allowance on deferred tax assets was $25.1 million. Balance Sheet Summary: December 31, 2024 compared to December 31, 2023 Securities available-for-sale: Securities available-for-sale increased $13.3 million to $297.0 million due to purchases and a $3.3 million improvement in the unrealized loss position on the portfolio, partially offset by amortization, maturities and calls during the year. Other investments: Other investments decreased during 2024 by $2.6 million due to a decrease in FHLB stock as a result of a reduction in FHLB borrowings. Total loans: Gross loans held for investment increased $22.8 million to $1.58 billion.Commercial real estate loans increased $27.1 million, construction loans increased $25.1 million, consumer and other category increased $7.2 million and commercial and industrial loans increased $4.5 million, while residential and multifamily loans decreased $32.7 million and $11.4 million, respectively.Loan fundings totaled $108.4 million, including fundings of $35.7 million in commercial real estate loans, $33.7 million in construction loans, $12.2 million in multifamily loans and $11.2 million in commercial and industrial loans. In addition, the Company purchased $21.6 million of conforming residential mortgages in New Jersey and participated in a consumer loan participation of $8.0 million during the year. Deposits: Deposits totaled $1.34 billion, an increase of $98.4 million since December 31, 2023, largely the result of increases in customer deposits.Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) represented 47.3% of total deposits compared to 48.8% at December 31, 2023, as time deposits increased $110.7 million.The increase in time deposits include $30.0 million in brokered deposits, bringing our total brokered deposit balance to $155.0 million at December 31, 2024.Uninsured and uncollateralized deposits to third-party customers were $147.6 million, or 11% of total deposits, at the end of the fourth quarter. Borrowings: FHLB borrowings decreased by $58.0 million to $339.5 million as we were able to pay off short-term borrowings with deposit growth that outpaced asset growth.As of December 31, 2024, the Company had $270.6 million of additional borrowing capacity at the FHLB, $107.7 million in secured lines of credit at the Federal Reserve Bank and $30.0 million of other unsecured lines of credit. Capital: Shareholders’ equity decreased by $23.4 million to $332.2 million. The decrease was primarily driven by the repurchase of shares at a cost of $19.4 million. Additionally, the year-to-date loss, partially offset by favorable changes in accumulated other comprehensive income, also contributed to the decrease.Tangible equity to tangible assets was 16.11% and 17.37% at December 31, 2024 and 2023, respectively.Tangible common equity per share outstanding was $14.74 at December 31, 2024 and $14.49 at December 31, 2023.The Bank’s capital ratios remain above the FDIC’s “well capitalized” standards. Asset quality: The allowance for credit losses on loans represented 0.83% of total loans at December 31, 2024 compared to 0.91% at December 31, 2023. The allowance for credit losses on loans was 254.02% of non-performing loans compared to 239.98% at December 31, 2023.The Company recorded a release of provision for credit losses of $301 thousand for the fourth quarter of 2024 and a release of provision for credit losses of $1.4 million for the year ended December 31, 2024. For the fourth quarter of 2024, there was a release of provision of $240 thousand, $37 thousand and $24 thousand in the ACL for off-balance-sheet commitments, loans and held-to-maturity securities, respectively. For the year ended December 31, 2024, there was a release of $1.1 million in the ACL for loans, $146 thousand in the ACL for off-balance-sheet commitments and $60 thousand in the ACL for held-to-maturity securities. The release was driven by the impact of the economic forecasts for the key drivers of our loan segments as well as a decrease in off-balance-sheet commitments.Non-performing loans totaled $5.1 million, or 0.33% of total loans at December 31, 2024 compared to $5.9 million, or 0.38% of total loans at December 31, 2023.Net charge-offs were $10 thousand and $46 thousand for the quarter and year ended December 31, 2024, respectively. 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, 2024 financial results will be held today, Wednesday, January 29, 2025 at 11:00 a.m. (EST). To listen to the live call, please dial 1-833-470-1428 (toll free) or +1-404-975-4839 (international) and use access code 168429. Participants are encouraged to preregister to listen via webcast at https://events/q4inc.com/attendee/980680589. The conference call will be recorded and will be available on the Company’s website for one month. Contact: James D. NesciPresident and Chief Executive Officerjnesci@bluefoundrybank.com201-972-8900 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 in 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; 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 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. BLUE FOUNDRY BANCORP AND SUBSIDIARYConsolidated Statements of Financial Condition December 31,2024 September 30,2024 December 31,2023 (Unaudited) (Unaudited) (Audited) (In thousands)ASSETS Cash and cash equivalents $42,502 $76,109 $46,025Securities available for sale, at fair value 297,028 290,806 283,766Securities held to maturity 33,076 33,119 33,254Other investments 17,791 18,203 20,346Loans, net 1,570,517 1,537,971 1,546,576Real estate owned, net — — 593Interest and dividends receivable 8,014 8,386 7,595Premises and equipment, net 29,486 30,161 32,475Right-of-use assets 23,470 24,190 25,172Bank owned life insurance 22,519 22,399 22,034Other assets 16,280 13,749 27,127Total assets $2,060,683 $2,055,093 $2,044,963 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Deposits $1,343,320 $1,318,670 $1,244,904Advances from the Federal Home Loan Bank 339,500 348,500 397,500Advances by borrowers for taxes and insurance 9,356 9,909 8,929Lease liabilities 25,168 25,870 26,777Other liabilities 11,141 12,845 11,213Total liabilities 1,728,485 1,715,794 1,689,323Shareholders’ equity 332,198 339,299 355,640Total liabilities and shareholders’ equity $2,060,683 $2,055,093 $2,044,963 BLUE FOUNDRY BANCORP AND SUBSIDIARYConsolidated Statements of Operations(Dollars in thousands except per share data) Three months ended Year Ended December 31, December 31, 2024 September 30, 2024 December 31, 2023 2024 2023 (unaudited) (Unaudited) (Audited)Interest income: Loans $17,777 $17,646 $16,907 $70,185 $65,685 Taxable investment income 3,972 3,850 3,327 15,122 12,990 Non-taxable investment income 36 36 101 144 430 Total interest income 21,785 21,532 20,335 85,451 79,105 Interest expense: Deposits 9,573 9,712 7,755 36,830 24,116 Borrowed funds 2,739 2,733 3,384 11,071 13,070 Total interest expense 12,312 12,445 11,139 47,901 37,186 Net interest income 9,473 9,087 9,196 37,550 41,919 (Release of ) provision for credit losses (301) 248 156 (1,350) (441)Net interest income after (release of ) provision for credit losses 9,774 8,839 9,040 38,900 42,360 Non-interest income: Fees and service charges 306 272 331 1,203 1,164 Gain on securities, net — — 20 — 20 Gain on sale of loans — — 72 36 231 Other income 114 115 149 555 390 Total non-interest income 420 387 572 1,794 1,805 Non-interest expense: Compensation and benefits 6,943 7,306 6,887 29,433 28,439 Occupancy and equipment 2,194 2,230 2,140 8,878 8,350 Data processing 1,514 1,412 1,510 5,648 6,119 Advertising 81 87 120 292 354 Professional services 737 813 631 2,903 3,021 Federal deposit insurance premiums 226 236 200 855 799 Other expense 1,186 1,183 1,055 4,596 4,480 Total non-interest expenses 12,881 13,267 12,543 52,605 51,562 Loss before income tax expense (2,687) (4,041) (2,931) (11,911) (7,397)Income tax expense — — — — — Net loss $(2,687) $(4,041) $(2,931) $(11,911) $(7,397)Basic loss per share $(0.13) $(0.19) $(0.13) $(0.55) $(0.31)Diluted loss per share $(0.13) $(0.19) $(0.13) $(0.55) $(0.31)Weighted average shares outstanding-basic 20,826,845 21,263,482 22,845,252 21,477,429 23,925,724 Weighted average shares outstanding-diluted 20,826,845 21,263,482 22,845,252 21,477,429 23,925,724 BLUE FOUNDRY BANCORP AND SUBSIDIARYConsolidated Financial Highlights(Dollars in thousands except for share data) (Unaudited) Three months ended December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023Performance Ratios (%) Loss on average assets (0.52) (0.79) (0.47) (0.56) (0.57)Loss on average equity (3.17) (4.68) (2.71) (3.23) (3.25)Interest rate spread (1) 1.40 1.29 1.43 1.40 1.33 Net interest margin (2) 1.89 1.82 1.96 1.92 1.84 Efficiency ratio (non-GAAP) (3) 130.20 140.04 130.73 134.19 128.41 Average interest-earning assets to average interest-bearing liabilities 120.84 121.37 122.28 122.50 122.93 Tangible equity to tangible assets (4) 16.11 16.50 16.88 17.25 17.37 Book value per share (5) $14.75 $14.76 $14.70 $14.61 $14.51 Tangible book value per share (5) $14.74 $14.74 $14.69 $14.60 $14.49 Asset Quality Non-performing loans $5,104 $5,146 $6,208 $6,691 $5,898 Real estate owned, net — — — 593 593 Non-performing assets $5,104 $5,146 $6,208 $7,284 $6,491 Allowance for credit losses on loans to total loans (%) 0.83 0.84 0.84 0.88 0.91 Allowance for credit losses on loans to non-performing loans (%) 254.02 252.86 209.84 205.48 239.98 Non-performing loans to total loans (%) 0.33 0.33 0.40 0.43 0.38 Non-performing assets to total assets (%) 0.25 0.25 0.30 0.36 0.32 Net charge-offs to average outstanding loans during the period (%) — — — — — (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 $332.0 million, which excludes intangible assets ($244 thousand of capitalized software). Tangible assets equal $2.06 billion and exclude intangible assets. (5) Per share metrics are computed using 22,522,626 total shares outstanding. BLUE FOUNDRY BANCORP AND SUBSIDIARYAnalysis of Net Interest Income(Unaudited) Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Average Balance Interest AverageYield/Cost Average Balance Interest AverageYield/Cost Average Balance Interest AverageYield/Cost (Dollars in thousands)Assets: Loans (1) $1,557,342 $17,777 4.57% $1,548,962 $17,646 4.53% $1,564,800 $16,907 4.29%Mortgage-backed securities 185,382 1,254 2.71% 181,596 1,186 2.60% 165,471 904 2.17%Other investment securities 164,392 1,573 3.83% 173,008 1,527 3.51% 190,507 1,486 3.09%FHLB stock 17,153 411 9.58% 17,666 406 9.15% 20,970 477 9.02%Cash and cash equivalents 68,536 770 4.50% 61,507 767 4.96% 45,895 561 4.85%Total interest-bearing assets 1,992,805 21,785 4.37% 1,982,739 21,532 4.32% 1,987,643 20,335 4.06%Non-interest earning assets 61,586 61,787 54,918 Total assets $2,054,391 $2,044,526 $2,042,561 Liabilities and shareholders' equity: NOW, savings, and money market deposits $614,623 1,988 1.29% $598,048 1,925 1.28% $634,257 1,989 1.24%Time deposits 698,801 7,585 4.32% 688,570 7,787 4.50% 584,977 5,766 3.91%Interest-bearing deposits 1,313,424 9,573 2.90% 1,286,618 9,712 3.00% 1,219,234 7,755 2.52%FHLB advances 335,686 2,739 3.26% 347,076 2,733 3.13% 397,643 3,384 3.38%Total interest-bearing liabilities 1,649,110 12,312 2.97% 1,633,694 12,445 3.03% 1,616,877 11,139 2.73%Non-interest bearing deposits 24,945 23,421 26,629 Non-interest bearing other 43,016 43,713 41,780 Total liabilities 1,717,071 1,700,828 1,685,286 Total shareholders' equity 337,320 343,698 357,275 Total liabilities and shareholders' equity $2,054,391 $2,044,526 $2,042,561 Net interest income $9,473 $9,087 $9,196 Net interest rate spread (2) 1.40% 1.29% 1.33%Net interest margin (3) 1.89% 1.82% 1.84% (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. BLUE FOUNDRY BANCORP AND SUBSIDIARYAnalysis of Net Interest Income continued(Unaudited) Year Ended December 31, 2024 2023 Average Balance Interest AverageYield/Cost Average Balance Interest AverageYield/Cost (Dollar in thousands)Assets: Loans (1) $1,553,143 $70,185 4.52% $1,569,590 $65,685 4.18%Mortgage-backed securities 173,691 4,276 2.46% 172,405 3,693 2.14%Other investment securities 174,172 6,440 3.70% 195,754 6,010 3.07%FHLB stock 18,038 1,756 9.73% 21,249 1,582 7.45%Cash and cash equivalents 58,261 2,794 4.80% 46,245 2,135 4.62%Total interest-bearing assets 1,977,305 85,451 4.32% 2,005,243 79,105 3.94%Non-interest earning assets 59,832 56,297 Total assets $2,037,137 $2,061,540 Liabilities and shareholders' equity: NOW, savings, and money market deposits $610,172 7,803 1.28% $722,149 8,339 1.15%Time deposits 665,740 29,027 4.36% 501,124 15,777 3.15%Interest-bearing deposits 1,275,912 36,830 2.89% 1,223,273 24,116 1.97%FHLB advances 348,306 11,071 3.18% 396,265 13,070 3.30%Total interest-bearing liabilities 1,624,218 47,901 2.95% 1,619,538 37,186 2.30%Non-interest bearing deposits 24,980 25,227 Non-interest bearing other 42,345 43,868 Total liabilities 1,691,543 1,688,633 Total shareholders' equity 345,594 372,907 Total liabilities and shareholders' equity $2,037,137 $2,061,540 Net interest income $37,550 $41,919 Net interest rate spread (2) 1.37% 1.64%Net interest margin (3) 1.90% 2.09% (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. BLUE FOUNDRY BANCORP AND SUBSIDIARYAdjusted Pre-Provision Net Loss (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 loss, as presented in the Consolidated Statements of Operations, includes the provision for credit losses and income tax expense while pre-provision net loss does not. Three months ended December 31, 2024 September 30, 2024 June 30,2024 March 31, 2024 December 31, 2023Pre-provision net loss and efficiency ratio, as adjusted: Net interest income $9,473 $9,087 $9,573 $9,417 $9,196 Other income 420 387 536 451 572 9,893 9,474 10,109 9,868 9,768 Operating expenses, as reported 12,881 13,267 13,215 13,242 12,543 Pre-provision net loss, as adjusted $(2,988) $(3,793) $(3,106) $(3,374) $(2,775)Efficiency ratio 130.2% 140.0% 130.7% 134.2% 128.4% Core deposits: Total deposits $1,343,320 $1,318,670 $1,311,156 $1,291,184 $1,244,904 Less: time deposits 707,339 701,262 671,478 642,372 596,624 Core deposits $635,981 $617,408 $639,678 $648,812 $648,280 Core deposits to total deposits 47.3% 46.8% 48.8% 50.2% 52.1% Total assets $2,060,683 $2,055,093 $2,045,452 $2,027,787 $2,044,963 Less: intangible assets 244 300 386 473 557 Tangible assets $2,060,439 $2,054,793 $2,045,066 $2,027,314 $2,044,406 Tangible equity: Shareholders’ equity $332,198 $339,299 $345,597 $350,156 $355,640 Less: intangible assets 244 300 386 473 557 Tangible equity $331,954 $338,999 $345,211 $349,683 $355,083 Tangible equity to tangible assets 16.11% 16.50% 16.88% 17.25% 17.37% Tangible book value per share: Tangible equity $331,954 $338,999 $345,211 $349,683 $355,083 Shares outstanding 22,522,626 22,990,908 23,505,357 23,958,888 24,509,950 Tangible book value per share $14.74 $14.74 $14.69 $14.60 $14.49

Blue Foundry Bancorp Reports Fourth Quarter and Year-End 2024 Results

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