Blue Foundry Bancorp reports Q3 EPS (6c) vs. (8c) last year

Non-interest expense decreased $574 thousand, or 4.4%, sequentially, primarily driven by lower compensation and benefits expenses. Release of provision for credit losses of $717 thousand due to the impact of the change in forecast on the loan portfolio, coupled with a decline in portfolio balances and unused lines. Uninsured deposits to third-party customers totaled approximately 10% of total deposits as of September 30, 2023. Interest income for the quarter was $20.2 million, an increase of $408 thousand, or 2.1%, compared to the prior quarter. Interest expense for the quarter was $10.3 million, an increase of $1.4 million, or 16.2%, compared to the prior quarter. Net interest margin decreased 23 basis points from the prior quarter to 1.94%. The Company executed $50 million of hedges on interest rates to reduce the Company’s sensitivity to interest rate by locking in spread. Tangible book value per share was $14.24. James Nesci, President and CEO commented, “Blue Foundry remains well capitalized with credit quality at historically stable levels. In addition to strong on-balance sheet liquidity, we have access to multiple sources of liquidity,. We have also been pleased with the resourcefulness of our management team and employees in managing expenses. This has helped offset some of the pressure on net interest income we are experiencing as the current rate environment continues to adversely affect our margin.”