Business Wire | Jul 23, 2021 08:00AM EDT

Blue Foundry Bancorp Reports Second Quarter 2021 Results

Jul. 23, 2021

RUTHERFORD, N.J.--(BUSINESS WIRE)--Jul. 23, 2021--Blue Foundry Bancorp (NASDAQ:BLFY) (the "Company"), the holding company for Blue Foundry Bank (the "Bank"), today reported a net loss of $1.0 million for the three months ended June 30, 2021 compared to a net loss of $16.7 million for the three months ended June 30, 2020, and a net loss of $1.7 million for the six months ended June 30, 2021 compared to a net loss of $28.1 million for the six months ended June 30, 2020. The improvement in net loss for those comparative periods was largely driven by a decrease in non-interest expenses, in particular the reclassification of certain properties into held-for-sale in the first quarter of 2020 and goodwill impairment recorded in the second quarter of 2020.

Total assets increased $634.3 million, or 32.65%, to $2.58 billion at June 30, 2021 from $1.94 billion at December 31, 2020. The increase was primarily due to cash received in connection with the previously announced plan to convert to the stock holding company form of organization.

On July 15, 2021, the Company announced that it had closed its stock offering in connection with the completion of the conversion of Blue Foundry, MHC into the stock holding company form of organization. The Company sold 27,772,500 shares of common stock at a price of $10.00 per share in its subscription offering. The Company also contributed 750,000 shares of common stock and $1.5 million in cash to the Blue Foundry Charitable Foundation.

James Nesci, President and Chief Executive Officer commented: "We are delighted to have successfully converted from a mutual holding company to a stock holding company on July 15, 2021. Over the recent past, we have made strategic investments in the infrastructure of Blue Foundry. As a public company, we intend to leverage our investments and grow our bank. The new capital we have received will allow us to fund new loans, refine existing products and services, expand our retail banking franchise, and continue to invest in the backbone of this organization, our people. Blue Foundry has a storied history serving the communities where we operate, and we are very eager for our future as a public institution."

Balance Sheet Summary:

Cash and cash equivalents. Cash and cash equivalents increased $608.7 million to $925.1 million at June 30, 2021 from $316.4 million at December 31, 2020. The increase was primarily due to cash received in connection with the conversion and related stock offering.

Gross Loans. Gross loans held for investment decreased $25.3 million, or 1.98%, to $1.25 billion at June 30, 2021 from $1.28 billion at December 31, 2020. The most significant drivers were net increases in Multifamily loans and Commercial & Industrial (PPP) loans originations exceeded by payoffs and amortization in Residential One-to-Four Family loans. For the six months ended June 30, 2021 there were $91.3 million in originations of Multifamily loans partially offset by $40.3 million of payoffs and amortization, and $39.7 million of originations in Commercial & Industrial (PPP loans) partially offset by $28.2 million in payoffs and amortization. The decrease in One-to-Four Family loans was primarily driven by $12.2 million in originations exceeded by $97.6 million in payoffs and amortization.

Summary of loans receivable, net at June 30, 2021 and December 31, 2020, is as follows:

June 30, 2021 December 31, 2020

(Dollars in thousands)

Residential one-to-four family $ 526,233 $ 611,603

Multifamily 478,455 427,436

Non-residential 134,346 128,141

Construction and land 28,142 33,691

Junior liens 20,732 23,814

Commercial and Industrial (PPP) 65,566 54,053

Consumer and other 84 99

Total loans 1,253,558 1,278,837



Deferred fees, costs and discounts, net 3,211 5,236

Allowance for loan losses (15,593 ) (16,959 )

(12,382 ) (11,723 )

Loans receivable, net $ 1,241,176 $ 1,267,114

Securities Available-For-Sale. Securities available-for-sale increased $49.9 million, or 20.4%, to $294.5 million at June 30, 2021 from $244.6 million at December 31, 2020. During the six months ended June 30, 2021, purchases of agency bonds and residential mortgage-backed securities were executed as interest rates rose. No securities were sold or liquidated during the six months ended June 30, 2021.

Total Deposits. Total deposits totaled $2.01 billion at June 30, 2021. Excluding deposits received in connection with the conversion and related stock offering, deposits increased $21.8 million, or 1.6%. Checking and savings accounts increased $100.2 million, or 15.7%, to $738.9 million at June 30, 2021 from $638.8 million at December 31, 2020. This was offset by time deposit decreases of $78.4 million, or 10.9%, to $639.0 million at June 30, 2021 from $717.4 million at December 31, 2020. These changes resulted in the ratio of time deposits to total deposits decreasing from 52.9% at December 31, 2020 to 46.4% at June 30, 2021, and a blended deposit cost of funds decline to 0.63% at June 30, 2021 from 0.92% at December 31, 2020.

Borrowings. The Company had $315.4 million of borrowings at June 30, 2021, compared to $329.4 million of borrowings at December 31, 2020. Our borrowings consisted solely of Federal Home Loan Bank of New York advances. Of that total, $109.0 million of the borrowings are associated with longer-dated swap agreements.

Total Equity. Shareholders' total equity decreased by $0.7 million, or 0.33%, to $204.9 million at June 30, 2021 compared to $205.6 million at December 31, 2020. The decrease was due primarily to a net loss of $1.7 million for the six months ended June 30, 2021, offset by an increase of $1.1 million in accumulated other comprehensive income. The Bank's capital ratios remain above the FDIC's "well capitalized" standards.

Results of Operations:

Net Interest Income and Margin. For the three months ended June 30, 2021 net interest income was $9.9 million, flat compared to the same period in 2020. For the six months ended June 30, 2021 net interest income was $19.5 million, a decrease of $0.6 million compared to $20.1 million for same period in 2020. Interest income declined $2.1 million and $4.6 million for the three and six months ended June 30, 2021, respectively, driven by lower loan volume and to a lesser extent, the lower interest rate environment. This decline was partially offset with an improvement in interest expense of $2.0 million and $4.0 million for the three and six months ended June 30, 2021, respectively, driven by the maturity of higher cost time deposits and a lower cost of funds on non-maturity deposits.

Our net interest margin decreased by 9 basis points to 1.99% for the quarter ended June 30, 2021, from 2.08% for the trailing quarter. The yield on interest earning assets and net interest margin was negatively impacted by the minimal yields earned on the cash received in connection with the conversion and related stock offering. The weighted average yield on interest-earning assets decreased 25 basis points to 2.78% for the quarter ended June 30, 2021, from 3.03% for the quarter ended March 31, 2021, while the weighted average cost of interest-bearing deposits decreased 15 basis points to 0.71% for the quarter ended June 30, 2021, compared to 0.86% for the trailing quarter. Our cost of total average deposits was 0.63% for the second quarter 2021 as compared to 1.27% for the first quarter 2021.

Net interest margin for the three months ended June 30, 2021 decreased by 12 basis points from 2.11% in the second quarter of 2020. The yield on average interest earning assets decreased by 59 basis points from the second quarter of 2020 mostly due to higher cash balances with minimal yield. The yield on average loans decreased by 12 basis points to 3.78% for the second quarter 2021 compared to the second quarter of 2020 largely due to the lower interest rate environment. The overall cost of average interest bearing liabilities decreased 50 basis points to 0.94% for the second quarter 2021 compared to the second quarter of 2020 due to repricing of higher cost time deposits and a lower cost of funds on non-maturity deposits.

Net interest margin for the six months ended June 30, 2021 decreased by 15 basis points from 2.19% for the six months ended June 30, 2020. The yield on average interest earning assets decreased by 61 basis points mostly due to higher cash balances with minimal yield. The yield on average loans decreased by 16 basis points and the overall cost of average interest bearing liabilities decreased 51 basis points.

Non-interest Income. Non-interest income of $0.6 million for the three months ended June 30, 2021 decreased $0.2 million from $0.8 million for the three months ended June 30, 2020. Non-interest income of $1.3 million for the six months ended June 30, 2021 increased $1.4 million from a non-interest loss of $0.1 million for the six months ended June 30, 2020.

Non-interest Expense. Non-interest expense decreased $15.2 million to $11.8 million for the three months ended June 30, 2021 from $27.0 million for the three months ended June 30, 2020, and decreased $26.6 million to $24.2 million for the six months ended June 30, 2021 from $50.8 million for the six months ended June 30, 2020. The primary drivers of these decreases were the $12.8 million loss on assets held for sale recognized in the first quarter of 2020 and the goodwill impairment of $15.5 million recognized in the second quarter of 2020.

Asset Quality. The allowance for loan losses and letters of credit and commitments was $16.2 million at June 30, 2021 compared to $17.3 million at June 30, 2020, of which $0.61 million and $0, respectively, related to the allowance for letters of credit and commitments. The allowance for loan losses to total loans was 1.24% at June 30, 2021 compared to 1.22% at June 30, 2020, while the allowance for loan losses to non-performing loans was 125% at June 30, 2021 compared to 347% at June 30, 2020. The Company recorded a recovery of provision for loan losses of $0.6 million and $1.4 million for the three and six months ended June 30, 2021, respectively, compared with provisions of $1.3 million and $2.8 million for the three and six months ended June 30, 2020, respectively.

Non-performing loans totaled $12.5 million at June 30, 2021 compared to $12.9 million at December 31, 2020 and $5.0 million at June 30, 2020.

Income Tax Expense. The Company recognized an income tax expense of $283 thousand for the three months ended June 30, 2021 compared to an income tax benefit of $706 thousand for the three months ended June 30, 2020, and an income tax benefit of $268 thousand for the six months ended June 30, 2021 compared to an income tax benefit of $5.4 million for the six months ended June 30, 2020.

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. Dedicated to individual support, Blue Foundry Bank offers a comprehensive line of products and services including personal and business banking and lending, to support clients' financial goals and investment for growth. With its Universal Bankers acting more as partners, the process will be less about banking and more about living. To learn more about Blue Foundry, go to www.bluefoundrybank.com or call our Customer Service Center at 1-888-931-BLUE.

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: conditions related to the recent global coronavirus outbreak that has and will continue to pose risks and could harm our business and results of operations; 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 loan 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; 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; 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.

BLUE FOUNDRY BANCORP AND SUBSIDIARY

Consolidated Statements of Financial Condition

June 30, 2021 (Unaudited) and December 31, 2020

(Dollars in thousands)

June 30, 2021 December 31, 2020

(In thousands)

ASSETS

Cash and cash equivalents $ 925,091 $ 316,445

Securities available for sale, at fair value 294,484 244,587

Assets held for sale 6,117 5,295

Securities held to maturity (fair value of$3,001 at June 30, 2021 and $6,979 at December 3,002 7,005 31, 2020)

Restricted stock, at cost 16,027 16,860

Loans receivable, net of allowance of $15,593at June 30, 2021 and $16,959 at December 31, 1,241,176 1,267,114 2020

Real estate owned, net 624 624

Interest and dividends receivable 5,507 5,749

Premises and equipment, net 24,876 19,569

Right-of-use assets 25,700 24,878

Bank owned life insurance 21,423 21,186

Other assets 12,824 13,234

Total assets $ 2,576,851 $ 1,942,546



LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

Deposits $ 2,008,068 $ 1,356,184

Advances from the Federal Home Loan Bank 315,400 329,400

Advances by borrowers for taxes and insurance 10,417 10,841

Lease liabilities 26,765 25,535

Other liabilities 11,289 14,986

Total liabilities 2,371,939 1,736,946



Shareholders' equity

Common stock $0.10 par value; 20,000,000 sharesauthorized; 100,000 shares issued and 10 10 outstanding

Additional paid-in capital 822 822

Retained earnings 204,051 205,799

Accumulated other comprehensive income (loss) 29 (1,031 )

Total shareholders' equity 204,912 205,600

Total liabilities and shareholders' equity $ 2,576,851 $ 1,942,546

BLUE FOUNDRY BANCORP AND SUBSIDIARY

Consolidated Statements of Operations

(Dollars in Thousands) (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

(In thousands)

Interest income:

Loans

$

12,056

$

13,950

$

24,318

$

28,165

Taxable investment income

1,618

1,769

3,163

3,807

Non-taxable investment income

128

156

263

339

Total interest income

13,802

15,875

27,744

32,311

Interest expense:

Deposits

2,379

4,213

5,197

8,815

Borrowed funds

1,515

1,718

3,039

3,378

Total interest expense

3,894

5,931

8,236

12,193

Net interest income

9,908

9,944

19,508

20,118

(Recovery of) provision for loan losses

(553

)

1,252

(1,361

)

2,753

Net interest income after (recovery of) provision for loan losses

10,461

8,692

20,869

17,365

Noninterest income:

Fees and service charges

537

617

1,063

920

Loss on premises and equipment

(86

)

-

(86

)

-

Write-down of Real Estate Owned

-

-

-

(1,390

)

Other

169

209

310

393

Total other income (loss)

620

826

1,287

(77

)

Noninterest expense:

Compensation and employee benefits

6,369

5,978

12,391

11,569

Occupancy and equipment

2,043

1,343

3,996

2,742

Loss on assets held for sale

-

-

21

12,765

Data processing

1,885

833

3,652

1,764

Advertising

521

249

991

648

Professional services

546

2,363

1,943

4,478

Directors fees

136

123

277

247

(Recovery of) provision for commitment and letters of credit

(473

)

-

(704

)

-

Federal deposit insurance

129

69

254

69

Goodwill impairment

-

15,460

-

15,460

Other

645

550

1,351

1,015

Total operating expenses

11,801

26,968

24,172

50,757

Loss before income tax expense

(720

)

(17,450

)

(2,016

)

(33,469

)

Income tax expense (benefit)

283

(706

)

(268

)

(5,391

)

Net loss

$

(1,003

)

$

(16,744

)

$

(1,748

)

$

(28,078

)

BLUE FOUNDRY BANCORP AND SUBSIDIARY

Consolidated Statements of Operations

(Dollars in Thousands) (Unaudited)

Three Months Ended June Six Months Ended June 30, 30,

2021 2020 2021 2020

(In thousands)

Interest income:

Loans $ 12,056 $ 13,950 $ 24,318 $ 28,165

Taxable investment income 1,618 1,769 3,163 3,807

Non-taxable investment 128 156 263 339 income

Total interest income 13,802 15,875 27,744 32,311

Interest expense:

Deposits 2,379 4,213 5,197 8,815

Borrowed funds 1,515 1,718 3,039 3,378

Total interest expense 3,894 5,931 8,236 12,193

Net interest income 9,908 9,944 19,508 20,118

(Recovery of) provision (553 ) 1,252 (1,361 ) 2,753 for loan losses

Net interest income after(recovery of) provision 10,461 8,692 20,869 17,365 for loan losses

Noninterest income:

Fees and service charges 537 617 1,063 920

Loss on premises and (86 ) - (86 ) - equipment

Write-down of Real Estate - - - (1,390 )Owned

Other 169 209 310 393

Total other income (loss) 620 826 1,287 (77 )

Noninterest expense:

Compensation and employee 6,369 5,978 12,391 11,569 benefits

Occupancy and equipment 2,043 1,343 3,996 2,742

Loss on assets held for - - 21 12,765 sale

Data processing 1,885 833 3,652 1,764

Advertising 521 249 991 648

Professional services 546 2,363 1,943 4,478

Directors fees 136 123 277 247

(Recovery of) provisionfor commitment and (473 ) - (704 ) - letters of credit

Federal deposit insurance 129 69 254 69

Goodwill impairment - 15,460 - 15,460

Other 645 550 1,351 1,015

Total operating expenses 11,801 26,968 24,172 50,757

Loss before income tax (720 ) (17,450 ) (2,016 ) (33,469 )expense

Income tax expense 283 (706 ) (268 ) (5,391 )(benefit)

Net loss $ (1,003 ) $ (16,744 ) $ (1,748 ) $ (28,078 )

BLUE FOUNDRY BANCORP AND SUBSIDIARY

Consolidated Financial Highlights

(Dollars in Thousands) (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Selected Operating Data

Interest income

13,802

15,875

27,744

32,311

Interest expense

3,894

5,931

8,236

12,193

Net interest income

9,908

9,944

19,508

20,118

Provision for (recovery of) loan losses

(553

)

1,252

(1,361

)

2,753

Non-interest income

620

826

1,287

(77

)

Non-interest expense

11,801

26,968

24,172

50,757

(Loss) income before income tax expense

(720

)

(17,450

)

(2,016

)

(33,469

)

Income tax (benefit) expense

283

(706

)

(268

)

(5,391

)

Net (loss) income

$

(1,003

)

$

(16,744

)

$

(1,748

)

$

(28,078

)

Performance Ratios (%)

Return (loss) on average assets

(0.19

)

(0.86

)

(0.09

)

(1.46

)

Return (loss) on average equity

(1.97

)

(7.89

)

(0.85

)

(12.51

)

Interest rate spread (1)

1.84

1.94

1.90

2.01

Net interest margin (2)

1.99

2.11

2.04

2.19

Efficiency ratio (3)

112.09

250.42

116.24

253.24

Average interest-earning liabilities to average interest-bearing liabilities

119.87

113.87

115.68

113.20

Equity to assets (end of period)

7.92

10.53

Asset Quality

Non-performing loans

12.5

5.0

Real estate owned, net

0.6

0.6

Non-performing assets

13.1

5.6

Allowance for loan losses as a percent of total loans (%)

1.24

1.22

Allowance for loan losses as a percent of non-performing loans (%)

125.08

347.22

Non-performing loans as a percent of total loans (%)

0.99

0.35

Non-performing assets as a percent of total assets (%)

0.51

0.28

Net charge-offs to average outstanding loans during the period (%)

-

%

-

%

-

%

-

%

BLUE FOUNDRY BANCORP AND SUBSIDIARY

Consolidated Financial Highlights

(Dollars in Thousands) (Unaudited)

Three Months Ended June Six Months Ended June 30, 30,

2021 2020 2021 2020

Selected Operating Data

Interest income 13,802 15,875 27,744 32,311

Interest expense 3,894 5,931 8,236 12,193

Net interest income 9,908 9,944 19,508 20,118

Provision for (recovery (553 ) 1,252 (1,361 ) 2,753 of) loan losses

Non-interest income 620 826 1,287 (77 )

Non-interest expense 11,801 26,968 24,172 50,757

(Loss) income before (720 ) (17,450 ) (2,016 ) (33,469 )income tax expense

Income tax (benefit) 283 (706 ) (268 ) (5,391 )expense

Net (loss) income $ (1,003 ) $ (16,744 ) $ (1,748 ) $ (28,078 )



Performance Ratios (%)

Return (loss) on average (0.19 ) (0.86 ) (0.09 ) (1.46 )assets

Return (loss) on average (1.97 ) (7.89 ) (0.85 ) (12.51 )equity

Interest rate spread (1) 1.84 1.94 1.90 2.01

Net interest margin (2) 1.99 2.11 2.04 2.19

Efficiency ratio (3) 112.09 250.42 116.24 253.24

Average interest-earningliabilities to average 119.87 113.87 115.68 113.20 interest-bearing liabilities

Equity to assets (end of 7.92 10.53 period)



Asset Quality

Non-performing loans 12.5 5.0

Real estate owned, net 0.6 0.6

Non-performing assets 13.1 5.6

Allowance for loan lossesas a percent of total 1.24 1.22 loans (%)

Allowance for loan lossesas a percent of 125.08 347.22 non-performing loans (%)

Non-performing loans as apercent of total loans 0.99 0.35 (%)

Non-performing assets asa percent of total assets 0.51 0.28 (%)

Net charge-offs toaverage 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 non-interest expense divided by the sum of net interest income plus non-interest income.

(1) Interest rate spread represents the difference between the yield oninterest-earning assets and the cost of interest-bearing liabilities.

(2) Net interest margin represents net interest income divided by averageinterest-earning assets.

(3) Efficiency ratio represents non-interest expense divided by the sum of netinterest income plus non-interest income.

BLUE FOUNDRY BANCORP AND SUBSIDIARYAnalysis of Net Interest Income

Three Months Ended June 30,

2021

2020

Average Balance

Interest

Average Yield/Cost

Average Balance

Interest

Average Yield/Cost

(Dollar in thousands)

Assets:

Loans

$

1,280,773

12,056

3.78

%

$

1,434,723

13,950

3.90

%

Mortgage-backed securities

155,566

761

1.96

%

135,603

760

2.25

%

Other investment securities

133,189

726

2.19

%

138,034

890

2.59

%

FHLB stock

16,102

192

4.79

%

18,554

240

5.20

%

Cash and cash equivalents

408,162

67

0.07

%

159,952

35

0.08

%

Total interest-bearing assets

1,993,792

13,802

2.78

%

1,886,866

15,875

3.37

%

Non-interest earning assets

79,033

64,442

Total assets

$

2,072,825

$

1,951,308

Liabilities and shareholders' equity:

NOW and demand accounts

359,238

139

0.15

%

267,454

175

0.26

%

Savings and money market accounts

321,024

150

0.19

%

229,900

167

0.29

%

Time deposit

663,707

2,090

1.26

%

788,976

3,871

1.97

%

Interest-bearing deposits

1,343,969

2,379

0.71

%

1,286,330

4,213

1.31

%

FHLB advances

319,367

1,515

1.90

%

370,697

1,718

1.86

%

Total interest-bearing liabilities

1,663,336

3,894

0.94

%

1,657,027

5,931

1.44

%

Non-interest bearing deposits

161,805

45,155

Non-interest bearing other

43,569

36,884

Total liabilities

1,868,710

1,739,066

Total shareholders' equity

204,116

212,242

Total liabilities and shareholders' equity

$

2,072,826

$

1,951,308

Net interest income

9,908

9,944

Net interest rate spread (1)

1.84

%

1.93

%

Net interest margin (2)

1.99

%

2.11

%

BLUE FOUNDRY BANCORP AND SUBSIDIARYAnalysis of Net Interest Income

Three Months Ended June 30,

2021 2020

Average Average Average Average Balance Interest Yield/ Balance Interest Yield/ Cost Cost

(Dollar in thousands)

Assets:

Loans $ 1,280,773 12,056 3.78 % $ 1,434,723 13,950 3.90 %

Mortgage-backed 155,566 761 1.96 % 135,603 760 2.25 %securities

Other investment 133,189 726 2.19 % 138,034 890 2.59 %securities

FHLB stock 16,102 192 4.79 % 18,554 240 5.20 %

Cash and cash 408,162 67 0.07 % 159,952 35 0.08 %equivalents

Totalinterest-bearing 1,993,792 13,802 2.78 % 1,886,866 15,875 3.37 %assets

Non-interest 79,033 64,442 earning assets

Total assets $ 2,072,825 $ 1,951,308

Liabilities andshareholders' equity:

NOW and demand 359,238 139 0.15 % 267,454 175 0.26 %accounts

Savings andmoney market 321,024 150 0.19 % 229,900 167 0.29 %accounts

Time deposit 663,707 2,090 1.26 % 788,976 3,871 1.97 %

Interest-bearing 1,343,969 2,379 0.71 % 1,286,330 4,213 1.31 %deposits

FHLB advances 319,367 1,515 1.90 % 370,697 1,718 1.86 %

Totalinterest-bearing 1,663,336 3,894 0.94 % 1,657,027 5,931 1.44 %liabilities

Non-interest 161,805 45,155 bearing deposits

Non-interest 43,569 36,884 bearing other

Total 1,868,710 1,739,066 liabilities

Totalshareholders' 204,116 212,242 equity

Totalliabilities and $ 2,072,826 $ 1,951,308 shareholders' equity

Net interest 9,908 9,944 income

Net interest 1.84 % 1.93 %rate spread (1)

Net interest 1.99 % 2.11 %margin (2)

Six Months Ended June 30,

2021

2020

Average Balance

Interest

Average Yield/Cost

Average Balance

Interest

Average Yield/Cost

(Dollar in thousands)

Assets:

Loans

$

1,285,931

24,318

3.81

%

$

1,427,819

28,165

3.97

%

Mortgage-backed securities

146,861

1,439

1.98

%

124,897

1,485

2.39

%

Other investment securities

127,972

1,453

2.29

%

128,562

1,660

2.60

%

FHLB stock

16,282

402

4.98

%

17,474

471

5.42

%

Cash and cash equivalents

354,429

132

0.08

%

151,896

530

0.70

%

Total interest-bearing assets

1,931,475

27,744

2.90

%

1,850,648

32,311

3.51

%

Non-interest earning assets

77,789

69,172

Total assets

$

2,009,264

$

1,919,820

Liabilities and shareholders' equity:

NOW and demand accounts

359,238

293

0.16

%

267,454

356

0.27

%

Savings and money market accounts

305,055

300

0.20

%

225,289

329

0.29

%

Time deposit

683,324

4,604

1.36

%

794,761

8,130

2.06

%

Interest-bearing deposits

1,347,617

5,197

0.78

%

1,287,504

8,815

1.38

%

FHLB advances

322,063

3,039

1.90

%

347,381

3,378

1.96

%

Total interest-bearing liabilities

1,669,680

8,236

0.99

%

1,634,885

12,193

1.50

%

Non-interest bearing deposits

89,117

29,847

Non-interest bearing other

45,588

30,736

Total liabilities

1,804,385

1,695,468

Total shareholders' equity

204,879

224,352

Total liabilities and shareholders' equity

$

2,009,264

$

1,919,820

Net interest income

19,508

20,118

Net interest rate spread (1)

1.91

%

2.01

%

Net interest margin (2)

2.04

%

2.19

%

Six Months Ended June 30,

2021 2020

Average Average Average Average Balance Interest Yield/ Balance Interest Yield/ Cost Cost

(Dollar in thousands)

Assets:

Loans $ 1,285,931 24,318 3.81 % $ 1,427,819 28,165 3.97 %

Mortgage-backed 146,861 1,439 1.98 % 124,897 1,485 2.39 %securities

Other investment 127,972 1,453 2.29 % 128,562 1,660 2.60 %securities

FHLB stock 16,282 402 4.98 % 17,474 471 5.42 %

Cash and cash 354,429 132 0.08 % 151,896 530 0.70 %equivalents

Totalinterest-bearing 1,931,475 27,744 2.90 % 1,850,648 32,311 3.51 %assets

Non-interest 77,789 69,172 earning assets

Total assets $ 2,009,264 $ 1,919,820

Liabilities andshareholders' equity:

NOW and demand 359,238 293 0.16 % 267,454 356 0.27 %accounts

Savings andmoney market 305,055 300 0.20 % 225,289 329 0.29 %accounts

Time deposit 683,324 4,604 1.36 % 794,761 8,130 2.06 %

Interest-bearing 1,347,617 5,197 0.78 % 1,287,504 8,815 1.38 %deposits

FHLB advances 322,063 3,039 1.90 % 347,381 3,378 1.96 %

Totalinterest-bearing 1,669,680 8,236 0.99 % 1,634,885 12,193 1.50 %liabilities

Non-interest 89,117 29,847 bearing deposits

Non-interest 45,588 30,736 bearing other

Total 1,804,385 1,695,468 liabilities

Totalshareholders' 204,879 224,352 equity

Totalliabilities and $ 2,009,264 $ 1,919,820 shareholders' equity

Net interest 19,508 20,118 income

Net interest 1.91 % 2.01 %rate spread (1)

Net interest 2.04 % 2.19 %margin (2)

(1) Net 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210723005078/en/

CONTACT: James D. Nesci President and Chief Executive Officer BlueFoundryBank.com jnesci@bluefoundrybank.com 201-972-8900