Blue Foundry Bancorp (BLFY) 2025 Q2 法說會逐字稿

Good morning, and welcome to Blue Foundry Bancorp's Second Quarter 2025 Earnings Call. Comments made during today's call may include forward-looking statements, which are based on management's current expectations and are subject to uncertainty and changes in circumstances. Blue Foundry encourages all participants to refer to the full disclaimer contained in this morning's earnings release, which has been posted to the Investor Relations page on bluefoundrybank.com.

早安，歡迎參加 Blue Foundry Bancorp 2025 年第二季財報電話會議。今天電話會議上發表的評論可能包括前瞻性陳述，這些陳述是基於管理層當前的預期，並受不確定性和情況變化的影響。Blue Foundry 鼓勵所有參與者參考今天早上收益報告中的完整免責聲明，該免責聲明已發佈在 bluefoundrybank.com 的投資者關係頁面上。

During the call, management will refer to non-GAAP measures which exclude certain items from reported results. Please refer to today's earnings release for reconciliations of these non-GAAP measures. As a reminder, this event is being recorded. (Operator Instructions)

在電話會議中，管理階層將參考非公認會計準則指標，這些指標不包括報告結果中的某些項目。請參閱今天的收益報告以了解這些非公認會計準則指標的對帳情況。提醒一下，此事件正在被記錄。（操作員指示）

I will now turn the call over to our President and CEO, Jim Nesci to begin. Please go ahead, Jim.

現在我將把電話轉給我們的總裁兼執行長 Jim Nesci。請繼續，吉姆。

Thank you, operator, and good morning, everyone. We appreciate you joining us for our second quarter earnings call. As always, I'm joined by our Chief Financial Officer, Kelly Pecoraro, who will review our financial performance in detail following my update.

謝謝接線員，大家早安。感謝您參加我們的第二季財報電話會議。像往常一樣，我們的財務長凱利·佩科拉羅 (Kelly Pecoraro) 將在我的更新之後詳細審查我們的財務表現。

Earlier today, we reported a net loss of $2 million or $0.10 per diluted share. We are pleased with the progress made toward our strategic objectives in the second quarter and thus far, in 2025. Despite the competitive environment, we were able to grow core deposits and expand the net interest margin for the third consecutive quarter. This, coupled with our expense discipline, resulted in a pre-provision net revenue improvement of approximately $1 million versus last quarter. Our strong capital and liquidity position continue to support our transformation into a more commercially focused institution. This quarter's increase in core deposits reflects the deepening of our relationships with the businesses and communities we serve, and marks continued progress in expanding efficient funding sources.

今天早些時候，我們報告淨虧損 200 萬美元，即每股虧損 0.10 美元。我們對第二季以及迄今為止 2025 年策略目標的進展感到滿意。儘管競爭激烈，我們仍連續第三個季度增加核心存款並擴大淨利差。再加上我們的費用控制，導致撥備前淨收入與上一季相比增加了約 100 萬美元。我們強大的資本和流動性狀況繼續支持我們轉型為更注重商業的機構。本季核心存款的成長反映了我們與所服務的企業和社區關係的加深，並標誌著我們在擴大高效資金來源方面取得了持續進展。

We achieved approximately 3% loan growth during the quarter while improving the yield on our loan portfolio by 8 basis points. This was supported by $29 million in deposit growth, including an almost 4% increase in core deposits and a 13-basis-point reduction in our cost of deposits. Together, these results contributed to a meaningful 12-basis-point expansion in our net interest margin.

本季度，我們的貸款成長了約 3%，同時貸款組合收益率提高了 8 個基點。這得益於 2,900 萬美元的存款成長，包括核心存款增加近 4% 以及存款成本降低 13 個基點。這些結果共同促使我們的淨利差大幅擴大了 12 個基點。

Loan production year-to-date totaled $180 million with $90 million produced during the second quarter at a weighted average yield of approximately 7%. Year-to-date, our diversification efforts have led to a $22 million increase in commercial and industrial loans, including owner-occupied commercial real estate. Additionally, construction loans increased $12 million while we thoughtfully decreased our multifamily portfolio by $37 million. We also saw a $76 million increase in consumer loans through June 30. Primarily driven by purchases of credit in [pants], consumer loans at attractive yields.

今年迄今的貸款總額為 1.8 億美元，其中第二季貸款總額為 9,000 萬美元，加權平均收益率約為 7%。今年迄今為止，我們的多元化努力已使商業和工業貸款增加了 2,200 萬美元，其中包括自住商業房地產。此外，建築貸款增加了 1,200 萬美元，同時我們慎重地減少了 3,700 萬美元的多戶住宅投資組合。截至 6 月 30 日，我們的消費貸款也增加了 7,600 萬美元。主要受[褲子]信貸購買的推動，消費貸款的收益率很有吸引力。

As we continue to execute our strategy of quarterly diversification, we remain focused on prioritizing asset classes that deliver higher yields and better risk-adjusted returns. Growth in our owner-occupied commercial real estate and construction lending reflects our disciplined approach to supporting local businesses while managing credit exposure. Additionally, our investment in credit enhanced consumer loans further enhances returns while maintaining a strong risk management framework. These portfolio shifts are aligned with our goal of driving earnings and long-term value creation. Our loan pipeline remains healthy with executed letters of intent totaling more than $40 million at quarter end, primarily in commercial lending, with anticipated yields above 7%. We expect this momentum to continue in the coming quarters. Tangible book value per share increased to $14.87, up $0.06 from the prior quarter. We remain committed to enhancing shareholder value through disciplined capital management.

隨著我們繼續執行季度多元化策略，我們仍然專注於優先考慮提供更高收益和更好風險調整回報的資產類別。我們的自用商業房地產和建築貸款的成長反映了我們在管理信貸風險的同時支持本地企業的嚴謹態度。此外，我們對信用增強型消費貸款的投資進一步提高了回報，同時保持了強大的風險管理框架。這些投資組合的轉變與我們推動獲利和長期價值創造的目標一致。我們的貸款管道保持健康，截至季度末已執行的意向書總額超過 4,000 萬美元，主要為商業貸款，預期收益率超過 7%。我們預計這一勢頭將在未來幾季持續下去。每股有形帳面價值增至 14.87 美元，較上一季增加 0.06 美元。我們始終致力於透過嚴格的資本管理來提高股東價值。

During the quarter, we repurchased 406,000 shares at a weighted average price of $9.42, a significant discount to our tangible book value and adjusted tangible book value. Both the bank and holding company remain well capitalized with tangible equity to tangible common assets among the highest in the industry at 15.1%. Our capital position and credit quality remains strong, and we are encouraged by the sustained momentum across both lending and deposit [front]. We believe these efforts will continue to support balance sheet and income growth in the coming quarters.

在本季度，我們以 9.42 美元的加權平均價格回購了 406,000 股，較我們的有形帳面價值和調整後的有形帳面價值有大幅折扣。該銀行和控股公司均保持充足的資本，有形權益與有形普通資產之比達到 15.1%，在業界名列前茅。我們的資本狀況和信貸品質依然強勁，貸款和存款業務的持續成長動能令我們感到鼓舞[正面]。我們相信這些努力將在未來幾季繼續支持資產負債表和收入的成長。

With that, I'll turn the call over to Kelly for a deeper look at our financials. After her remarks, we will be happy to answer your questions. Kelly?

說完這些，我將把電話轉給凱利，讓他更深入地了解我們的財務狀況。在她發言之後，我們將很樂意回答大家的提問。凱莉？

Thank you, Jim, and good morning, everyone. Net loss for the second quarter was $2 million. This is a $735,000 improvement to the prior quarter. We are encouraged by positive momentum in net interest income, which was partially offset by higher provision expense, driven by unfunded loan commitments.

謝謝你，吉姆，大家早安。第二季淨虧損為200萬美元。與上一季相比，這一數字增加了 735,000 美元。我們對淨利息收入的正面動能感到鼓舞，但由於無資金貸款承諾導致撥備支出增加，部分抵銷了淨利息收入的成長動能。

Net interest income increased by $896,000 or 8.3%, driven by a 12-basis-point expansion in our net interest margin. Interest income expanded $725,000, primarily due to loan growth. Interest expense declined by $171,000 reflecting lower deposit profit. The yield on loans increased by 8 basis points to 4.80% and the yield on total interest earning assets improved by 7 basis to 4.58%. Our cost of funds declined by 13 basis points to 2.72%. The cost of interest-bearing deposits decreased 13 basis points to 2.62% and the cost of borrowings decreased 9 basis points to 3.30%. Noninterest expense decreased by $90,000 compared to prior quarter, drive primarily by seasonal occupancy expense. We are pleased that expenses have remained relatively stable over the past several quarters and continue to expect them to stay within the mid- to high $13 million range.

淨利息收入增加了 896,000 美元，即 8.3%，這得益於淨息差擴大了 12 個基點。利息收入增加了 725,000 美元，主要由於貸款增長。利息支出減少了 171,000 美元，反映存款利潤下降。貸款收益率上升8個基點至4.80%，總生息資產收益率提高7個基點至4.58%。我們的資金成本下降了 13 個基點，至 2.72%。計息存款成本下降 13 個基點至 2.62%，借款成本下降 9 個基點至 3.30%。非利息支出與上一季相比減少了 90,000 美元，主要原因是季節性入住費用減少。我們很高興看到，過去幾季的支出保持相對穩定，並預計將保持在 1300 萬美元的中高水平範圍內。

As we progress toward our growth targets and achieve corporate goals, we anticipate a modest increase in compensation expense in the second half of the year due to higher variable [monetation] costs. For the quarter, we recorded a provision for credit losses of $463,000 primarily attributed to reserves required unfunded commitments that are scheduled to close in Q3. As a reminder, the majority of our allowance is derived for quantitative model as our methodology continues to assign greater [ways] to the [Phase 1] and adverse economic scenario.

隨著我們朝著成長目標邁進並實現企業目標，我們預計由於可變[貨幣]成本的增加，下半年薪資支出將小幅增加。本季度，我們記錄了 463,000 美元的信貸損失準備金，主要歸因於計劃於第三季度結束的儲備金所需未撥付的承諾。提醒一下，我們的津貼大多來自定量模型，因為我們的方法繼續為[第一階段]和不利的經濟情境分配更多的[方法]。

From a balance sheet perspective, gross loans increased $47.4 million during the quarter. Organic growth was primarily in our occupied commercial real estate and construction. We also purchased $45 million in credit enhanced consumer loans and $19 million in residential loans to support our residential portfolio. Our available for sale securities portfolio with a duration of 4.1 [meters] declined by $2.4 million due to maturities, calls and pay downs. This was partially offset by purchases and a $1.7 million improvement in unrealized losses. Deposits increased $29.1 million or 2%, we experienced $25.2 million or approximately 4% growth in core deposit accounts.

從資產負債表的角度來看，本季總貸款增加了 4,740 萬美元。有機成長主要體現在我們佔據的商業房地產和建築業。我們還購買了 4500 萬美元的信用增強消費貸款和 1900 萬美元的住宅貸款，以支持我們的住宅投資組合。我們的可供出售證券投資組合期限為 4.1 [米]，由於到期、贖回和償還，減少了 240 萬美元。這部分被購買和 170 萬美元的未實現損失改善所抵消。存款增加了 2,910 萬美元，即 2%，核心存款帳戶增加了 2,520 萬美元，約 4%。

Importantly, growth in core deposits was fueled by full banking relationships with commercial customers, emphasizing our strategic focus on deepening client engagement in a competitive market. Time deposits increased as we strategically [reinplaced] promotional CDs and backfilled runoff with $20 million in broker deposits at lower rates. Borrowings increased slightly to help fund loan growth.

重要的是，核心存款的成長得益於與商業客戶的全面銀行關係，強調了我們的策略重點是在競爭激烈的市場中深化客戶參與度。由於我們策略性地[重新替換]了促銷存單，並以較低的利率向經紀人注入了 2000 萬美元的存款來填補虧損，定期存款有所增加。借款略有增加，以幫助資助貸款成長。

Lastly, asset quality remains strong. Nonperforming assets increased due to a slight rise in nonaccrual loans. Nonperforming assets, the total assets picked up by 3 basis points and nonselling loans to total loans also ticked up by 3 basis points. Both remained low at 30 basis points and 38 basis points, respectively. Allowance coverage decreased slightly with the allowance for credit losses to total loans declining by 1 basis point to 80 basis points and the ratio of allowance for credit losses to nonperforming loans decreased from 230% to 211%.

最後，資產品質依然強勁。不良資產因不計息貸款略有增加而增加。不良資產、總資產上升了 3 個基點，非銷售貸款佔總貸款的比例也上升了 3 個基點。兩者均保持在低位，分別維持在30個基點和38個基點。撥備覆蓋率略有下降，貸款撥備覆蓋率下降1個基點至80個基點，貸款撥備覆蓋率由230%下降至211%。

With that, Jim and I are happy to answer your questions.

因此，吉姆和我很樂意回答您的問題。

(Operator Instructions) Justin Crowley, Piper Sandler.

（操作員指示）賈斯汀·克勞利、派珀·桑德勒。

Just wanted to start off on margin -- just wanted to start off on the margin and some of the drivers as we look ahead here. Can you quantify for us what loan repricings look like through the back half of this year and then as you get into '26? Just any detail on volume and then what the rate pickup looks like? I think you mentioned previously that it's really next year when you see a lot of that multifamily portfolio start to turn. But just wondering if you could put some numbers around that for us.

只是想從邊際開始 - 只是想從邊際開始，以及我們展望未來的一些驅動因素。您能否為我們量化一下今年下半年以及 26 年的貸款重新定價？關於交易量的任何細節以及利率回升情況如何？我想您之前提到過，實際上到明年您會看到許多多戶型投資組合開始轉變。我只是想知道您是否可以為我們提供一些數字。

Yes, sure. No problem, Justin. You're right, 2026 is really where we see a lot of the repricing taking place. In '26, we have about $75 million that's standing at a rate of about 375, that's due to reprice. It's not exactly equally during the year, but spread over the year in '26. For the remainder of '25, we have just about $23 million that's sitting at a rate of [4.75%] that's going to reprice throughout Q3 and Q4.

是的，當然。沒問題，賈斯汀。你說得對，2026 年我們確實會看到大量重新定價的發生。在 26 年，我們有大約 7500 萬美元，利率約為 375，這是由於重新定價造成的。它在一年內並不是完全均勻的，而是在 26 年內分佈的。在 25 年剩餘的時間裡，我們有大約 2,300 萬美元的利率為 [4.75%]，將在第三季和第四季重新定價。

Important to keep in mind we also have maturities that are coming in, those maturities, the majority of them sit in the construction portfolio and our current market rate, while we have a nice pipeline of construction coming in, as you know, those don't funds all upfront. So we'll see a little lag in terms of the construction portfolio having matured.

重要的是要記住，我們也有即將到期的債券，這些到期的債券，其中大部分都位於建築投資組合和我們目前的市場利率中，雖然我們有一個良好的建築渠道，但如你所知，這些並不是預先提供的所有資金。因此，我們會看到建築投資組合在成熟方面略有滯後。

Okay. Got it. And then I guess on the CD side and maybe just assuming flat rates for a moment through year-end, who knows what we'll get out of the Fed. But as pricing opportunity there largely run its course, and so would it really just take lower rate from here to see funding costs you will appreciably lower? What's the thinking there?

好的。知道了。然後我猜想在 CD 方面，也許只是假設利率在年底前暫時保持不變，誰知道我們會從美聯儲得到什麼。但隨著定價機會的逐漸成熟，那麼是否真的只需要降低利率就能看到融資成本明顯降低呢？那裡的想法是什麼？

Well, from a CD perspective, we were keeping book relatively short, right around that three-month time frame, but we did introduce an eight-month CD that has extended that maturity. So we don't see that repricing of that book until January or February as those fees will mature.

嗯，從 CD 的角度來看，我們的帳簿相對較短，大約在三個月的時間範圍內，但我們確實推出了八個月的 CD，延長了期限。因此，我們要等到一月或二月這些費用到期時才會看到這本書的重新定價。

Justin, I think there's also a market component to that question. It depends what our competitors do in the marketplace. So we're obviously working through the market competition, just like everybody else. And we're keeping an eye on our depot base and trying to make sure we produce products that our customers are interested in purchasing.

賈斯汀，我認為這個問題也涉及市場因素。這取決於我們的競爭對手在市場上做什麼。因此，我們顯然正在努力應對市場競爭，就像其他人一樣。我們密切注意我們的倉庫基地，並努力確保我們生產客戶有興趣購買的產品。

Okay. That's helpful. And I guess just sort of putting it all together, obviously, a decent step-up in the NIM through the first half of this year. Given kind of all the puts and takes, would you kind of expect expansion to be more limited through the back half of this year with '26 really being when we start to see kind of more significant improvement in margin?

好的。這很有幫助。我想，綜合起來看，今年上半年 NIM 顯然會有一個相當大的提升。考慮到所有的投入和產出，您是否預計今年下半年的擴張會更加有限，而 26 年才是我們真正開始看到利潤率更顯著改善的時候？

Yes, Justin, you have it absolutely right. We're only looking at a couple of [weeks] expansion probably in the third quarter. And then when we get to the fourth quarter, that will depend upon pipeline and what's coming on and what happens in the market. But the expansion will be limited in the back half of the year.

是的，賈斯汀，你說得完全正確。我們只考慮第三季可能出現的幾週的擴張。然後，當我們進入第四季度時，這將取決於管道、即將發生的事情以及市場發生的情況。但下半年擴張將受到限制。

Okay. I appreciate that. And then just in terms of the consumer purchases, I know in the past, you said there's not necessarily a magic number in mind, but with the book at 5% of loans today, can you just give us a sense of thinking on adding to that portfolio from here, how that fits in?

好的。我很感激。然後就消費者購買而言，我知道在過去，您說過，心中不一定有一個神奇的數字，但是考慮到今天的貸款賬面價值為 5%，您能否從現在開始考慮增加該投資組合，這如何適應？

Yes, Justin. So right, it stands right now, about 5% of the loan portfolio. Right now, we're comfortable going to about 7% to 8% of the loan portfolio over the next couple of quarters.

是的，賈斯汀。所以，目前的情況是，約佔貸款組合的 5%。目前，我們預計未來幾季貸款組合將達到 7% 至 8% 左右。

Okay. And then can you just remind us as far as the credit enhancements that come along with those, can you just boil down the exact structure of these credits and how much in the way of potential loss you're protected from?

好的。然後，您能否提醒我們，就隨之而來的信用增強而言，您能否概括出這些信用的具體結構以及您可以避免多少潛在損失？

Right. So these come with a 3% reserve against these credits. So you do run through our normal allowance calculation, we look to see if there's any additional exposure there. But they are -- we have a 3% credit reserve against them.

正確的。因此，這些都帶有 3% 的儲備金來抵消這些信貸。因此，您確實會進行我們的正常津貼計算，我們會查看是否有任何額外的風險。但他們是——我們對他們有 3% 的信用儲備。

Okay. And then maybe just one last on a bigger picture question. Profitability is obviously still strain here, but these moving closer to being in the black. And it seems like, particularly next year, there are some margin tailwinds that will help over time. But is there anything else behind the scenes that you're looking into or weighing whether that be from an expense standpoint. I know you gave guide there. So either there or just wherever else that could help accelerate that progress?

好的。最後也許還有一個更大的問題。盈利能力顯然仍然緊張，但已經接近盈利。而且看起來，特別是明年，一些利潤率的順風將會隨著時間的推移而有所幫助。但是，從費用角度來看，您是否正在調查或權衡幕後的其他事情？我知道你在那裡給了指南。那麼，是那裡還是其他任何地方可以幫助加速這一進程？

So what I can tell you is we're looking at everything, constantly, especially expenses. I noticed some of the early notes mentioned expense discipline. Kelly and I are very focused on looking for any dollars we can find it's expensive to run a bank in today's age. It just takes people to run the bank. We've kept a close eye on our head count, we have our people working as efficiently as we can. But with the eye, we're looking to gain new efficiencies.

因此我可以告訴你的是，我們正在不斷關註一切，尤其是開支。我注意到一些早期的筆記提到了費用紀律。凱利和我非常專注於尋找我們能找到的任何美元，因為在當今時代經營銀行的成本很高。只是需要有人來經營銀行。我們密切注意員工人數，並要求員工盡可能有效率地工作。但透過觀察，我們希望獲得新的效率。

So those are the things that we're working through. What else can we do with fewer people and again a greater output from our existing staff. So those -- I can't give you a timing of what happens, but I can tell you that's the type of stuff that we're constantly looking at.

這些就是我們正在努力解決的事情。我們還能用更少的人力和更大的現有員工產出做什麼呢？所以那些——我無法告訴你事情發生的時間，但我可以告訴你，那是我們一直在關注的事情。

David Konrad, KBW.

大衛·康拉德，KBW。

Justin kind of went through the quarter pretty good there. So really just kind of have a very longer-term picture question, kind of looking at regarding the asset generation, but also kind of tied to the noninterest-bearing deposit levels. I think it's kind of early days on C&I. But are you kind of thinking about how can we get that mix up and thinking about what type of assets you can generate maybe to grow the noninterest-bearing deposits?

賈斯汀在本季表現相當不錯。所以這其實只是一個非常長期的問題，既關注資產的產生，也與無息存款水準相關。我認為 C&I 還處於早期階段。但是您是否考慮過我們如何實現這種混合，並思考可以產生哪種類型的資產來增加無息存款？

David, thanks for joining our call today. Yes, we are looking at the noninterest-bearing is obviously, a key point for us to focus on. So we're not just looking at C&I, and we're looking at our commercial real estate (inaudible) and we're trying to make sure we get a full relationship from all borrowers regardless of what asset class they may be borrowing in. And that's been working really well. We believe by driving good products to our customers, commercial or consumer that we will get more of that core type deposits.

大衛，感謝您今天參加我們的電話會議。是的，我們正在考慮無息業務，這顯然是我們關注的重點。因此，我們不僅僅關注 C&I，我們還關注商業房地產（聽不清楚），我們試圖確保與所有借款人建立全面的關係，無論他們借入的資產類別是什麼。而且效果非常好。我們相信，透過向我們的客戶（無論是商業客戶還是消費者）提供優質產品，我們將獲得更多的核心存款。

And again, it seems to be working. We're encouraged by that pathway, and we'll keep reaching out to our existing customers on the loan side to say, we really like your full banking relationship. So yes, that is clearly part of the strategy, and we think it is working and continue to work going forward.

而且，它似乎再次發揮了作用。我們對這條途徑感到鼓舞，我們將繼續與貸款方面的現有客戶聯繫，告訴他們，我們真的很喜歡你們的全面銀行關係。是的，這顯然是策略的一部分，我們認為它正在發揮作用，並將繼續發揮作用。

We currently have no further questions. So I'd like to hand back to Jim Nesci for some closing remarks.

目前我們沒有其他問題。因此，我想把發言時間交還給 Jim Nesci，請他做最後的總結。

Thank you, operator. I wanted to thank everybody who dialed in today to listen to the earnings call. Again, we're encouraged by the quarter and what we're starting to see. And it all stems from our dedicated employees out on the line, working hard every single day. I want to acknowledge all of our customers and shareholders that have been with us, some of you for a very long time, shareholders that have stuck with us as we recreate our strategy and try to drive towards profitability.

謝謝您，接線生。我要感謝今天撥入電話收聽財報電話會議的所有人。再次，我們對本季以及我們開始看到的情況感到鼓舞。這一切都源自於我們敬業的員工每天在第一線辛勤工作。我要感謝所有與我們合作的客戶和股東，其中一些已經合作了很長時間，在我們重新制定策略並努力實現盈利的過程中，這些股東一直支持著我們。

With that, I just want to say thanks again, and hope to speak with all of you again next quarter. Thank you.

最後，我只想再次表示感謝，並希望下個季度能再次與大家交談。謝謝。

This concludes today's call. We thank everyone for joining. You may now disconnect your lines.

今天的電話會議到此結束。我們感謝大家的加入。現在您可以斷開線路了。