Blue Foundry Bancorp (BLFY) Q4 2024 earnings summary

Executive summary

• Reported a net loss of $11.9 million for 2024, with a Q4 net loss of $2.7 million, improved from $4 million in Q3.

• Loans increased by $32.5 million and deposits by $24.7 million in Q4 2024; year-end loans totaled $1.58 billion and deposits $1.34 billion.

• Tangible book value per share was $14.74 at year-end; capital and credit quality remain strong.

• Strategic focus on expanding commercial banking relationships and deepening community ties.

Financial highlights

• Net interest income for 2024 was $37.6 million, down $4.4 million year-over-year; Q4 net interest income rose by $386,000 sequentially.

• Net interest margin for 2024 was 1.90%, down 19 bps year-over-year; Q4 margin increased to 1.89% from 1.82% in Q3.

• Interest income increased $253,000; interest expense declined $133,000 in Q4.

• Non-interest expense for 2024 was $52.6 million, up $1 million year-over-year, mainly due to higher compensation, occupancy, and FDIC premiums.

• No tax benefit recorded for losses due to a full valuation allowance on deferred tax assets ($25.1 million at year-end).

Outlook and guidance

• Expectation for net interest margin to improve as loans close at current rates and deposits reprice lower.

• Anticipate high single-digit loan growth in 2025, with margin expansion at a similar pace to Q4.

• Operating expenses projected in the mid to high $13 million range for 2025.

• Management expressed optimism about carrying positive deposit and loan growth momentum into 2025.

• Continued focus on commercial loan growth and disciplined underwriting.