Yahoo Finance Blue Foundry Bancorp (BLFY) Q1 2024 Earnings Call Transcript Highlights: Key Financial ...
Net Loss: $2.8 million for Q1 2024, an improvement from a net loss of $2.9 million in the previous quarter.
Deposit Growth: Increased by $46 million in Q1 2024.
Loan-to-Deposit Ratio: Decreased by 500 basis points.
Share Repurchases: 532,000 shares at a weighted average price of $9.49.
Tangible Book Value Per Share: Increased by $0.11 to $14.60.
Capital Levels: Tangible equity to tangible common assets at 17.25%.
Net Interest Income: Increased by $221,000; net interest margin expanded by eight basis points.
Provision for Credit Losses: Release of $535,000 due to improved economic forecasts.
Nonaccrual Loans: Increased by $793,000.
Loan Yield: Increased by 16 basis points to 4.45%.
Interest Earning Assets Yield: Increased by 19 basis points to 4.25%.
Cost of Funds: Increased by 11 basis points to 2.81%.
Commercial Account Balances: Increased by $18.5 million or 10%.
Gross Loans: Declined by $6.6 million during the quarter.
Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Could you discuss the factors influencing the net interest margin and the expected pressure on it in the upcoming quarters? A: Kelly Pecoraro, CFO, explained that the expansion in net interest margin was pleasing, but upcoming pressures could arise from the repricing of time deposits, which might reset to higher levels due to market conditions. This could increase deposit costs further.
Q: How is Blue Foundry Bancorp planning to manage deposit generation versus relying on wholesale funding channels? A: James Nesci, CEO, emphasized the focus on organic growth through strong product offerings and small business engagement, aiming to reduce reliance on wholesale funding and enhance market positioning.
Q: What are the current trends in credit quality, and are there any early signs of stress? A: Kelly Pecoraro noted that while there was a slight increase in nonperforming assets, the overall credit quality remains strong with no significant concerns, thanks to robust underwriting standards.
Q: What is the company's strategy regarding share buybacks given the current stock price levels? A: James Nesci affirmed the company's commitment to share buybacks, indicating that the board and management believe it to be a prudent use of capital at current price levels.
Q: Can you provide insights into the loan pipeline and expectations for loan growth in 2024? A: Kelly Pecoraro mentioned a focus on selective asset additions, with a shift towards commercial and industrial loans. The current pipeline is about $40 million, targeting higher yields to enhance profitability.
Q: How is Blue Foundry Bancorp strategizing towards achieving profitability, especially considering the challenging interest rate environment? A: James Nesci outlined efforts to cut costs, optimize staffing, and focus on high-yield commercial loans. He emphasized the companys strategic focus on improving financial performance and profitability through operational efficiencies and asset portfolio adjustments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
