BLFY - Earnings call transcript Q1 2022

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Operator

Good morning. My name is Simon, and I'll be your conference operator today. I would like to welcome everyone to the Blue Foundry Bancorp Q1 2022 Earnings Call. Today's call will include forward-looking statements, including statements about Blue Foundry's future financial and operating results, outlook, business strategies and plans as well as other opportunities and potential risks that management foresees. Such forward-looking statements reflect management's current estimates or beliefs and are subject to known and unknown risks and uncertainties that may cause actual results or the timing of events to differ materially from those expressed or implied in such forward-looking statements. disclosures the the forth well Securities earnings risk and to forward-looking the as and referred company's and factors in the uncertainties. more statements press other such Exchange are Commission disclosures with information under set caption the recent for Listeners filings in about the risks contained release as Any of today. as and estimates forward-looking statements only made during this call represent management's views

any the should obligation change, statements While do the at forward-looking of company subsequent today. company specifically as the in and on any update if disclaims may even to as statements some future, to estimates so, management management not elect point our views representing date such to views rely you

certain release reported today's is items refer mute to During this reconciliations the Thank Please will for any Please from to Jim been call, the prevent company background exclude will CEO. results. earnings the these have recorded. to Neste, I All President event refer will After you. note a placed non-GAAP of being be call measures. now turn which non-GAAP and noise. over lines the there to on question-and-answer remarks, speaker's session. measures,

Jim Neste

morning of made in interest for participate Thank we our core and In Earnings share to and segment for quarter higher and joining Interim growing of first Q&A goals growing results earning the you Chief us and financial Controller company's operator, the progress XXXX, deposits Thanks, I'm towards of call. the assets. great our joined the Great. Angeleno. Alex Blue will He good Quarter First by Foundry's everyone. Call. today Financial Officer,

$XX increased grew investment million. book by and in the Our core deposits our by increased quarter. million, Gross $XX.X loans million by $XX.X

a diligently This income. position produces expenses, to our our We quarter quarter. well $X over decreased which of million also asset us for growth will in full when interest the operating QX by core worked reduce

customers. business within our grew our to over In core deposit team franchise, by On business our front, grow continue we retail deposits the the specifically quarter, million. $XX

strong acquisition refreshed year exciting last an New branches customer inviting seen within as the our have experience. and growth new customer opened brick-and-mortar locations and provide success

lending Moving our efforts. to

team over quarter. of first in new loans Our the onboarded million $XXX

growth net million Excluding performance teams. at gross of our in came $XX.X commercial a within with loan PPP, strong quarterly lending

and are, represents rising to putting from We liquidity we at up environment to the work excess fund team cash will over million $XXX.X continue the of and new Total we our as we with management to during growth the benefit the put loan core end which $XX quarter, rate million deposits. was first quarter. low-cost as work

I'd shows Foundry Financial Chief as will to over Alex. new announce quarter discuss return provision like serving our controller as the Blue Alex her XX-year capabilities to from served that growth our formally Kelly more following joins brings to our to first be Kelly responsibilities migration turn Accounting of deposits. Alex accounting, company's commercial career objectives. Kelly appointment to from bank I'm of to the knowledge Siperaro; Chief her the and a core began Investors also and work come mid-May core will to she Angeleno pleased in Officer, KPMG's finance our with a Bank interim The in and Bank, support beginning career CFO deployment. where audit She to of becoming call practice results. will strategy larger, Kelly recently the to by our most and will with of funded financial regulatory transition wealth our evidence appointed Officer.

Alex Angeleno

and you, good Jim, Thank morning, everyone.

Quarter-over-quarter, and with reduction $XXX,XXX of operating or or a as This primarily $XX.X $X.XX to a our decrease driven costs income expense will in announced. in months the operating decreased fees, which significant continued a million. interest reduction quarter-over-quarter expenses quarter in advertising by fees was reduction $XXX,XXX. to This enable per and share. by and of million a for growth our This net X% in us loan occupancy combined the income marks $X.X the to $XX.X investment $XXX,XXX return million. to $XXX,XXX of PPP or production realized, decrease funds. was in previously net was reduction we offset expense and Our decreased profitability $XXX,XXX Core the in driven by in reduction coming GAAP professional cost was X%

as Net ended interest by points months to to net margin margin point from XX% quarter. XX, year-over-year the by decreased XXXX, compared prior a basis basis X.XX% increased Our X.XX%, March interest for the increase. X X representing X.XX% to XX

quarter $X.X excluding higher including slightly continued reduced on $XX.X well our fees a left program. gross was decreased X%, as million by the residential being by in loans, X.X%. compared PPP, performance The point, by by PPP FHLB from the portfolios, which was purchase in continuation $XXX,XXX of by or to with we to partial progress primarily PPP Our Currently, expect $XXX,XXX lower or quarter, income of paydown. Gross months. we of in $X.X $XXX,XXX or $XXX,XXX This Interest our maturity Quarter-over-quarter, investment the a These realized. loans a quarter continued remaining be prior primarily CRE FHLB later expense coupled of $X.X due origination breakeven growth balances October results to driven the $XXX,XXX loss primarily million books of fourth during driven loss and income portfolio strong quarter. last represent timing come nearly PPNR million. XX% million of quarter, adjusted to and across X% which quarter few quarter. the deposits by coupled of loan the the prior bottling. the month for have or the $XXX,XXX was as increased contained toward of next with realization loans, Interest in decrease to $XX PPP increased of the decrease million average time of our will loan to

of average was total pipeline X.X%. as over yield with of March Our $XXX XX, million expected an

in portfolio estate the experienced growth originations $XXX by of over strong real driven has Our million. quarter,

Our of grew residential the continuation organic that enacted program was originations of loan purchase mixture a and through year. portfolio last the

prepayment approximately expected quarters million in the the residential originated standards market. of bank high-quality higher through This borrowers continue During to to principal $XX than purchased to is our loans quarter, next Fannie the purchase Mae program and offset average levels. X to

excess portfolio which of a over and grew continue mixture into to the securities securities the rates rose. loans during duration by excess incremental as liquidity shorter reinvest coming of quarters. yield plan utilizing million was Our the capture result liquidity We to $XX.X quarter, to

rise, at we have yield excess X.X% We to been past as over work. roughly reinvesting a to in liquidity And more put quarter. plan of securities the rates

Our as asset has weighted stable life X.X current portfolio improve. a quality We view average of and our years.

XX from Our -- the or decreased year-end points to Loans loans million $X.X loans. to to X.XX% total by nonperforming X.XX%. $X $X.X or over due days million basis quarter. current XX million from of at XX% past decreased more as

from our continues XX quarter, as improve. basis points stabilize the X.XX% to allowance X% the to to and loans economy total decreased During

loss XXXX, X, the we adopt reminder, incurred model. as a are January expect of operating currently and to As CECL under

it concluding to like Jim to back Now, turn for remarks. I'd

Jim Neste

Thanks, Alex.

costs. the continued deliver marks future ahead strong first recognize improvement to encouraged are by quarter core the well the of operating our The sheet results, progress months. we and balance and to profitability We us, in significant to in positioning believe I'm work positioned we our return coming

next interest The in quarter. for can their like everyone begin their time for now. would Blue you. sharing to thank We and Bank. today also the We operating to session look Thank results Q&A forward our Factory operator

Operator

[Operator Instructions].

Our from first Please is ahead. Laurie of your Hunsicker go line question Point. comes open. Laurie, Compass

Laurie Hunsicker

estate Alex. very like was morning, loan going there? What's hoping that? and that Yes, to purchased? you Jim, And Good how And about It that you go I commercial growth. congratulations back growth your was very, also are on thinking hi, looks is to Kelly, strong. And thanks. could loan you. real

Jim Neste

On lot to couple in loan released a at be happy have CRE the lot been answer questions exact to good give quarter. we're in Kelly the on think nonresidential And a time, want just an you with But you team clarify, the back we that starting K shortly. her weeks, been coming date joining of of and in us -- to prices. deals if is It's she more to could it It's CRE excited I exciting specific have will a but refer growth, deals be I'm and it's of the as to well. to question.

Laurie Hunsicker

Yes.

other banks? you you that? you Or to $XXX So from are pretty That's thinking adding? What that? you type just million. went at are jump. looking working really linked $XXX you are with I'm originating a of CRE are quarter, big And about How million

Jim Neste

They is purchased. it are So originations. our not

some and lenders. are banks from other with direct our are Some

Laurie Hunsicker

it. Got

And I you, mean of CRE just very sorry, are what adding? -- level, but with can up I high what follow you type

Jim Neste

a It's mix. It's industrial.

Laurie Hunsicker

what… know You

Jim Neste

It's Jersey. I just tell New you. spaces industrial in good what is mix of mix It's a would and other a

Laurie Hunsicker

Yes. Okay.

that I PPP was on right? that this gains get verify of income, net quarter -- you to And I amount interest so to wanted just did realized $XXX the Is million.

Alex Angeleno

higher Laurie. just Right actually around a there, right It's $XXX,XXX. around

in of have all left I really about QX. We QX. $XXX realized go But in to million think it don't

to to fruition. to a going take come few quarters all it's think for I of that

Laurie Hunsicker

Got it.

Okay.

you were of XXX So just stripping margin. that back out, envelope, very the

In Do -- help it head more? XXX us putting even little NII. margin and your of So more a more think data us it give on that about maybe a into $XXX up, talked XX like to basis we X% December point on deposits. what can Can just looks around exiting on give that, rising us to help any rate you going you bit color this as securities, you quantify a purchasing point rate any ex that thoughts height that have is yield you core. Can look you can bit is work, sensitivity us environment? little other more as resi, point your every XX basis as of like your you sort words, interest

Alex Angeleno

Sure.

up XXX months, up NII scenario an XX seeing at in So out X.XX%. we're

that I some credit left for cash still quality. have a yielding high mix at and duration, QX investments of purchases was our to shorter deploy. were mix think bits some we a lower of deployed

moved full rates months. into we last in a go be As out the rates are X priced as have obviously bit QX, higher going those to

I continue QX, get where in the move are So higher slightly challenged cost will term, right up as then the move will funds XXs we to be think in as number. of and will And expand of a margins slightly. off towards now we into short we

Jim Neste

more will next quarter. the few X to over far investment will on tranches residential those a I loans, the in be. Laurie. with X residential just next And purchases still It purchases, see just But of think we'll clarify, is probably I doing. us where to you -- down That's as market the we on high-quality the slowing think fill in quarter. depends as what

Laurie Hunsicker

Right.

Okay. line? And can helpful. very little talk That's Obviously, strong about loan then provision the growth. very, you had Lomas you bit a

reserve or can now to be loans X% forward how XXX thinking about you that reserves-to-loans But should You're CECL in to us that where looks target? a coming How terms And we help have provision realize at going ex I about XXXX. sitting you normalizing? just think a PPP. isn't until of

Operator

you all for conference participating. today's concludes call. Thank This

pleasant You a disconnect, have and day. may now

Blue Foundry Bancorp (BLFY) 27 Apr 222022 Q1 Earnings call transcript