# EDGAR Filing Document

**Accession Number:** 0001846017
**File Stem:** 0001628280-23-001518
**Filing Date:** 2023-1
**Character Count:** 40868
**Document Hash:** 3e9250b779f1a3ef5b53f412a022a4bb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-23-001518.hdr.sgml**: 20230125

**ACCESSION NUMBER**: 0001628280-23-001518

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230125

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230125

**DATE AS OF CHANGE**: 20230125

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Blue Foundry Bancorp
- **CENTRAL INDEX KEY:** 0001846017
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036]
- **IRS NUMBER:** 862831373
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40619
- **FILM NUMBER:** 23549926

**BUSINESS ADDRESS:**
- **STREET 1:** 19 PARK AVENUE
- **CITY:** RUTHERFORD
- **STATE:** NJ
- **ZIP:** 07070
- **BUSINESS PHONE:** 201-939-6600

**MAIL ADDRESS:**
- **STREET 1:** 19 PARK AVENUE
- **CITY:** RUTHERFORD
- **STATE:** NJ
- **ZIP:** 07070

?xml version="1.0" ? blue-20230125

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): <u>January 25, 2023</u>

<u>BLUE FOUNDRY BANCORP</u>

(Exact Name of Registrant as Specified in its Charter)

---

| | | |
|:---|:---|:---|
| <u>Delaware</u> | <u>001-40619</u> | <u>86-2831373</u> |
| (State or Other Jurisdiction) | (Commission File No.) | (I.R.S. Employer |
| of Incorporation) | | Identification No.) |
| <u>19 Park Avenue, Rutherford, New Jersey</u> | <u>19 Park Avenue, Rutherford, New Jersey</u> | <u>07070</u> |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Zip Code) |

---

Registrant's telephone number, including area code: <u>(201) 939-5000</u>

<u>Not Applicable</u>

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br>**Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.01 par value | BLFY | The NASDAQ Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02 Results of Operation and Financial Condition**

On January 25, 2023, Blue Foundry Bancorp (the "Company"), the holding company for Blue Foundry Bank (the "Bank") issued a press release reporting its financial results for the periods ended December 31, 2022.

A copy of the press release announcing the results is included as Exhibit 99.1 to this Current Report on Form 8-K and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.

**Item 9.01 Financial Statements and Exhibits**

(a) Financial Statements of Businesses Acquired. Not applicable.

(b) Pro Forma Financial Information. Not applicable.

(c) Shell Company Transactions. Not applicable.

(d) Exhibits.

---

| | |
|:---|:---|
| <u>[99.1](earningsrelease-2022q4.htm)</u> | <u>[Press Release dated January 2](earningsrelease-2022q4.htm)[5](earningsrelease-2022q4.htm)[, 202](earningsrelease-2022q4.htm)[3](earningsrelease-2022q4.htm)[.](earningsrelease-2022q4.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **Blue Foundry Bancorp** | **Blue Foundry Bancorp** |
| DATE: January 25, 2023 | By: | <u>/s/ James D. Nesci</u> |
|  |  | James D. Nesci |
|  |  | President and Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**FOR IMMEDIATE RELEASE**

**Blue Foundry Bancorp Reports Fourth Quarter and Year-End 2022 Results**

RUTHERFORD, NJ --January 25, 2023-- **Blue Foundry Bancorp (NASDAQ:BLFY)** (the "Company"), the holding company for Blue Foundry Bank (the "Bank"), today reported net income of $2.4 million, or $0.09 per diluted common share, for the year ended December 31, 2022 compared to a net loss of $36.3 million for the year ended December 31, 2021.

Net income was $562 thousand, or $0.02 per diluted common share, for the three months ended December 31, 2022 compared to $1.2 million, or $0.05 per diluted common share, for the three months ended September 30, 2022, and a net loss of $19.6 million, or $(0.75) per diluted common share, for the three months ended December 31, 2021.

James D. Nesci, President and Chief Executive Officer, commented, "Our fourth quarter was highlighted by continued strong loan growth. In 2022, consistently robust and diverse loan production drove a 20% increase in gross loans. Additionally, the Company's focus on attracting customers to our suite of consumer-friendly deposit products led to a 13% annual increase in core deposits."

He continued, "While today's economic environment remains difficult, we are steadfast in executing on our strategic priorities. We are also committed to the underwriting standards that have resulted in consistently strong asset quality, and both our bank and holding company remain well capitalized."

**Highlights for the fourth quarter of 2022:**

• Gross loans grew by $51.3 million, or 3.4%, compared to the linked quarter, led by growth in commercial portfolios.

• Loan originations totaled $68.2 million for the quarter, and included originations of $35.4 million in non-residential loans, and $24.2 million in multifamily loans.

• Total deposits increased $22.4 million, or 1.8%, compared to the linked quarter, driven by growth in time deposits.

• Non-interest expense, excluding the provision for commitments and letters of credit, decreased $427 thousand, or 3.2%, compared to the linked quarter.

• Net interest income for the quarter was $12.9 million, a decrease of $888 thousand, or 6.4%, compared to the prior quarter, and an increase of $590 thousand, or 4.8%, compared to the prior year quarter.

• Net interest margin was 2.62%, a 22 basis point decrease compared to the linked quarter and a one basis point decrease from the prior year quarter.

• The Company recorded a release of provision for loan losses of $224 thousand and a release of provision for commitments and letters of credit of $203 thousand.

• During the quarter, 632,073 shares were repurchased at a weighted average cost of $12.40. 1,298,762 shares have been repurchased as of December 31, 2022, representing 46% of the stock authorized for repurchase under the Company's initial stock repurchase program announced in July 2022.

• Tangible book value per share increased 19 cents to $14.28.

**Lending Franchise**

The Company continues to diversify its lending franchise by focusing on growing the commercial portfolio. During the fourth quarter of 2022, gross loans increased by $51.3 million primarily due to strong growth within the Company's non-residential and multifamily portfolios.

The details of the loan portfolio are below:

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2022 | September 30, <br>2022 | June 30,<br>2022 | March 31,<br>2022 | December 31, 2021 |
| | (In thousands) | (In thousands) | (In thousands) | (In thousands) | |
| Residential one-to-four family | $594521 | $591728 | $590151 | $579083 | $560976 |
| Multifamily | 690278 | 679474 | 579183 | 517037 | 515240 |
| Non-residential real estate | 216394 | 185450 | 211683 | 187310 | 141561 |
| Construction and land | 17990 | 12981 | 21010 | 18613 | 23419 |
| Junior liens | 18477 | 16653 | 16421 | 18071 | 18464 |
| Commercial and industrial (including PPP) | 4682 | 4738 | 5957 | 16201 | 21563 |
| Consumer and other | 38 | 39 | 47 | 37 | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross loans | 1542380 | 1491063 | 1424452 | 1336352 | 1281310 |
| Deferred fees, costs, premiums and discounts, net | 2747 | 3374 | 3821 | 5134 | 6299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | 1545127 | 1494437 | 1428273 | 1341486 | 1287609 |
| Allowance for loan losses | (13400) | (13600) | (14050) | (13465) | (14425) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans receivable, net | $1531727 | $1480837 | $1414223 | $1328021 | $1273184 |

---

The commercial and industrial portfolio includes Paycheck Protection Program (PPP) loans, net of deferred fees, which totaled $477 thousand at December 31, 2022, $557 thousand at September 30, 2022, $2.0 million at June 30, 2022, $8.1 million at March 31, 2022, and $16.8 million at December 31, 2021.

**Retail Banking Franchise**

As of December 31, 2022, core deposits totaled $872.6 million, an increase of $99.4 million or 12.8% from December 31, 2021. The Company remains focused on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products.

The details of deposits are below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2022 | September 30, <br>2022 | June 30,<br>2022 | March 31,<br>2022 | December 31, 2021 |
| | (In thousands) | (In thousands) | (In thousands) | (In thousands) | |
| Non-interest bearing deposits | $49514 | $59636 | $52036 | $45143 | $44894 |
| NOW and demand accounts | 399330 | 385334 | 455776 | 425766 | 363419 |
| Savings | 423758 | 455979 | 358166 | 367177 | 364932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core deposits | 872602 | 900949 | 865978 | 838086 | 773245 |
| Time deposits | 416260 | 365548 | 430696 | 444936 | 473795 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | $1288862 | $1266497 | $1296674 | $1283022 | $1247040 |

---

**Financial Performance Overview:&nbsp;&nbsp;&nbsp;&nbsp;**

***Fourth quarter of 2022 compared to the fourth quarter of 2021***

**Net interest income compared to the fourth quarter of 2021:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Net interest income was $12.9 million, an increase of $590 thousand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net interest margin decreased one basis point to 2.62%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Yield on average interest-earning assets increased 52 basis points to 3.55%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cost of average interest-bearing deposits increased 48 basis points to 0.82%, reflecting the competitive rate environment in our primary market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Average loans increased by $235.2 million and average interest-bearing deposits decreased by $6.7 million.

------

**Non-interest expense compared to the fourth quarter of 2021:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-interest expense was $12.9 million, a decrease of $4.5 million driven by the absence in the 2022 quarter of non-recurring expenses of: a $2.0 million loss on pension withdrawal and $755 thousand in debt extinguishment costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Excluding non-recurring items referenced above, non-interest expense decreased $1.8 million. Fees for professional services declined $872 thousand and advertising costs declined $728 thousand as management focused on reducing discretionary expenses. The provision for commitments and letters of credit was also lower by $351 thousand. These decreases were partially offset by an increase of $599 thousand in compensation and benefits costs which included expenses related to equity grants.

**Income tax expense compared to the fourth quarter of 2021:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Income tax expense was $164 thousand compared to $16.1 million for the prior year quarter. The 22.5% effective tax rate for the quarter reflects discrete state and federal tax items recognized in the fourth quarter, however, management expects the effective tax rate to remain near 10% for the near future. The Company had previously established and continues to maintain a full valuation allowance on its deferred tax assets. Although the Company had a loss before income tax in the prior year quarter, the tax expense recorded in that period reflects the impact of the initial recognition of the full valuation allowance on the Company's deferred tax assets.

***Year ended December 31, 2022 compared to the year ended December 31, 2021***

**Net interest income compared to the year ended December 31, 2021:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Net interest income was $51.8 million, an increase of $8.9 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net interest margin increased by 52 basis points to 2.73%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Yield on average interest-earning assets increased 40 basis points to 3.28%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cost of average interest-bearing deposits decreased 14 basis points to 0.47%, due to a shift to core deposits partially offset by the competitive rate environment in our primary market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Average loans increased by $132.6 million and average interest-bearing deposits decreased by $61.6 million.

**Non-interest expense compared to the year ended December 31, 2021:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-interest expense was $52.8 million, a decrease of $21.9 million driven by the absence in 2022 of non-recurring expenses of: a $11.2 million loss on pension withdrawal, a $9.0 million charitable contribution, and $2.2 million in debt extinguishment costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Excluding non-recurring items referenced above, non-interest expense increased $464 thousand. An increase of $3.5 million in compensation and benefits costs was driven by raises, hiring, an increase in cash incentive compensation expense, and costs associated with equity grants made under the shareholder-approved equity incentive plan. In addition, the costs associated with being a public company increased $1.0 million in 2022. These increases were partially offset by a reduction of $1.3 million in advertising and $1.2 million in data processing, and a lower provision for commitments and letters of credit of $1.0 million.

**Income tax expense compared to the year ended December 31, 2021:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Income tax expense was $338 thousand compared to $9.6 million for the prior year period. The year-to-date effective tax rate of 12.4% reflects the Company's current tax position. The Company had previously established and continues to maintain a full valuation allowance on its deferred tax assets. Although the Company had a loss before income tax in the prior year, the tax expense recorded in that year reflects the impact of the initial recognition of the full valuation allowance on the Company's deferred tax assets.

**Balance Sheet Summary:**

*December 31, 2022 compared to December 31, 2021*

**Cash and cash equivalents:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Cash and cash equivalents decreased $152.3 million compared to December 31, 2021 as the Company deployed cash primarily into higher yielding loans and securities.

------

**Securities available-for-sale:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Securities available-for-sale decreased $10.6 million to $314.2 million as purchases of securities were more than offset by the fair value decline in the portfolio, as well as amortization and calls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** The rising rate environment contributed to a $37.3 million decline in the net unrealized position of the portfolio.

**Gross loans:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross loans held for investment increased $261.1 million to $1.54 billion. Excluding PPP, gross loans increased by $277.9 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Multifamily loans increased $175.0 million, non-residential real estate loans increased $74.8 million, and residential loans increased $33.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Originations totaled $488.2 million, including originations of $285.4 million in multifamily loans, $128.7 million in non-residential real estate loans, and $44.1 million in construction loans. In addition, $106.1 million of conforming residential mortgages in New Jersey were purchased during the period.

**Deposits and borrowings:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Deposits totaled $1.29 billion, an increase of $41.8 million since December 31, 2021. Core deposits represented 67.7% of total deposits compared to 62.0% at December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** FHLB borrowings increased by $125.0 million to $310.5 million to support loan growth.

**Capital:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholders' equity decreased by $35.8 million to $393.7 million. The decrease was primarily driven by a $24.3 million reduction in accumulated other comprehensive income reflecting the net impact that the interest rate environment had on the Company's available-for-sale securities and the swap agreements used in its cash flow hedges. The Company also repurchased 1,298,762 of its shares at a cost of $15.6 million. 299,481of the shares repurchased were used to fund the shareholder-approved restricted stock grants. These decreases were partially offset by net income of $2.4 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Tangible equity to tangible assets was 19.24% and tangible common equity per share outstanding was $14.28.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank's capital ratios remain above the FDIC's "well capitalized" standards.

**Asset quality:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Non-performing loans totaled $7.8 million, or 0.50% of total loans compared to $12.0 million, or 0.94% of total loans at December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The allowance for loan losses represented 0.87% of total loans compared to 1.13% at December 31, 2021. The allowance for loan losses was 172.52% of non-performing loans compared to 120.38% at December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** The Company recorded a net release of provision for loan losses of $224 thousand for the quarter ended December 31, 2022 and $1.0 million for the year ended December 31, 2022 driven by significant pay downs within the construction and land portfolio, partially offset by growth in our multifamily portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Net recoveries were $24 thousand for the quarter ended December 31, 2022 and for the year ended December 31, 2022 net charge-offs were $24 thousand.

------

**About Blue Foundry**

Blue Foundry Bancorp is the holding company for Blue Foundry Bank, a place where things are made, purpose is formed, and ideas are crafted. Headquartered in Rutherford NJ, with a presence in Bergen, Essex, Hudson, Morris, Passaic and Somerset counties, Blue Foundry Bank is a full-service, innovative bank serving the doers, movers, and shakers in our communities. We offer individuals and businesses alike the tailored products and services they need to build their futures. With a rich history dating back more than 145 years, Blue Foundry Bank has a longstanding commitment to its customers and communities. To learn more about Blue Foundry Bank visit BlueFoundryBank.com or call (888) 931-BLUE. Member FDIC.

**Conference Call Information**

A conference call discussing Blue Foundry's fourth quarter and year ended December 31, 2022 financial results will be held today, Wednesday, January 25, 2023 at 11:00 a.m. (EST). To listen to the live call, please dial 1-833-927-1758 (toll free), 1-646-904-5544 (local) or 1-929-526-1599 (all other locations) and use access code 372166. The webcast (audio only) will be available on BlueFoundryBank.com. The conference call will be recorded and will be available on the Company's website for one month.&nbsp;&nbsp;&nbsp;&nbsp;

**<u>Contact:</u>**

**James D. Nesci**

President and Chief Executive Officer

BlueFoundryBank.com

jnesci@bluefoundrybank.com

201-972-8900

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BLUE FOUNDRY BANCORP AND SUBSIDIARY

Consolidated Statements of Financial Condition

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| | | | |
|:---|:---|:---|:---|
| | December 31, 2022 | September 30, 2022 | December 31, 2021 |
| | (Unaudited) | (Unaudited) | (Audited) |
| | (In thousands) | (In thousands) | (In thousands) |
| **ASSETS** |  |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $41182 | $57324 | $193446 |
| &nbsp;&nbsp;&nbsp;Securities available for sale, at fair value | 314248 | 321320 | 324892 |
| &nbsp;&nbsp;Securities held to maturity (fair value of $29,115, $26,344 and $22,849 at December 31, 2022, September 30, 2022 and December 31, 2021, respectively) | 33705 | 30749 | 23281 |
| &nbsp;&nbsp;&nbsp;Other investments | 16069 | 15432 | 10182 |
| &nbsp;&nbsp;&nbsp;Loans, net | 1531727 | 1480837 | 1273184 |
| &nbsp;&nbsp;&nbsp;Interest and dividends receivable | 6893 | 6431 | 5372 |
| &nbsp;&nbsp;&nbsp;Premises and equipment, net | 29825 | 29992 | 28126 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | 25906 | 25537 | 25457 |
| &nbsp;&nbsp;&nbsp;Bank owned life insurance | 21576 | 22012 | 21662 |
| &nbsp;&nbsp;&nbsp;Other assets | 22207 | 22284 | 8609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2043338 | $2011918 | $1914211 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |
| Liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | $1288862 | $1266497 | $1247040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances from the Federal Home Loan Bank | 310500 | 295500 | 185500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances by borrowers for taxes and insurance | 9302 | 10926 | 9582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 27324 | 26875 | 26696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 13632 | 14782 | 15922 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1649620 | 1614580 | 1484740 |
| Shareholders' equity | 393718 | 397338 | 429471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $2043338 | $2011918 | $1914211 |

---

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BLUE FOUNDRY BANCORP AND SUBSIDIARY

Consolidated Statements of Operations

(Dollars in thousands except per share data) (Unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Year Ended December 31, | Year Ended December 31, |
| | December 31, 2022 | September 30, 2022 | December 31, 2021 | 2022 | 2021 |
| | (unaudited) | (unaudited) | (unaudited) | (Unaudited) | (Audited) |
| Interest income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | $14487 | $13692 | $12357 | $52279 | $48719 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxable investment income | 2970 | 2571 | 1757 | 9678 | 6821 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-taxable investment income | 112 | 109 | 121 | 456 | 513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 17569 | 16372 | 14235 | 62413 | 56053 |
| Interest expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 2482 | 1424 | 1036 | 5738 | 7884 |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowed funds | 2160 | 1133 | 863 | 4832 | 5220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 4642 | 2557 | 1899 | 10570 | 13104 |
| Net interest income | 12927 | 13815 | 12336 | 51843 | 42949 |
| Release of provision for loan losses | (224) | (419) | (819) | (1001) | (2518) |
| Net interest income after provision for loan losses | 13151 | 14234 | 13155 | 52844 | 45467 |
| Non-interest income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees and service charges | 341 | 650 | 565 | 2156 | 1975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on securities, net |  |  | (1) | 14 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income | 103 | 149 | 140 | 494 | 505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | 444 | 799 | 704 | 2664 | 2479 |
| Non-interest expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation and benefits | 7620 | 7433 | 7021 | 29247 | 25755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on pension withdrawal |  |  | 1974 |  | 11206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Occupancy and equipment | 1909 | 1921 | 2080 | 7625 | 7929 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Data processing | 1324 | 1559 | 1501 | 5754 | 6933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt extinguishment costs |  |  | 754 |  | 2155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advertising | 68 | 125 | 795 | 1061 | 2390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Professional services | 838 | 1012 | 1709 | 4117 | 4528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Release of) provision for commitments and letters of credit | (203) | 170 | 148 | (311) | 689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal deposit insurance premiums | 105 | 98 | 110 | 381 | 494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contribution to Blue Foundry Charitable Foundation |  |  |  |  | 9000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense | 1208 | 1351 | 1288 | 4900 | 3591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expenses | 12869 | 13669 | 17380 | 52774 | 74670 |
| Income (loss) before income tax expense | 726 | 1364 | (3521) | 2734 | (26724) |
| Income tax expense | 164 | 123 | 16103 | 338 | 9618 |
| Net income (loss) | $562 | $1241 | $(19624) | $2396 | $(36342) |
| Basic and diluted earnings (loss) per share | $0.02 | $0.05 | $(0.75) | $0.09 | $(2.99) |
| Weighted average shares outstanding-basic | 25713534 | 26128851 | 26307456 | 26165841 | 12171050 |
| Weighted average shares outstanding-diluted | 26013015 | 26246039 | 26307456 | 26270864 | 12171050 |

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BLUE FOUNDRY BANCORP AND SUBSIDIARY

Consolidated Financial Highlights

(Dollars in thousands except for share data) (Unaudited)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Three months ended | Three months ended |
| | December 31,<br>2022 | September 30,<br>2022 | June 30,<br>2022 | March 31,<br>2022 | December 31,<br>2021 |
| **Performance Ratios (%)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Return (loss) on average assets | 0.11 | 0.25 | 0.01 | 0.12 | (3.97) |
| &nbsp;&nbsp;&nbsp;Return (loss) on average equity | 0.56 | 1.20 | 0.04 | 0.52 | (17.36) |
| &nbsp;&nbsp;Interest rate spread <sup>(1)</sup> | 2.35 | 2.68 | 2.71 | 2.50 | 2.50 |
| &nbsp;&nbsp;Net interest margin <sup>(2)</sup> | 2.62 | 2.84 | 2.83 | 2.62 | 2.63 |
| &nbsp;&nbsp;Efficiency ratio (non-GAAP) <sup>(3)</sup> | 97.76 | 92.37 | 96.13 | 104.04 | 110.59 |
| &nbsp;&nbsp;&nbsp;Average interest-earning assets to average interest-bearing liabilities | 128.30 | 130.30 | 131.52 | 131.77 | 132.04 |
| &nbsp;&nbsp;Tangible equity to tangible assets <sup>(4)</sup> | 19.24 | 19.72 | 20.97 | 21.68 | 22.42 |
| &nbsp;&nbsp;Book value per share <sup>(5)</sup> | $14.30 | $14.11 | $14.46 | $14.73 | $15.06 |
| &nbsp;&nbsp;Tangible book value per share <sup>(5)</sup> | $14.28 | $14.09 | $14.43 | $14.72 | $15.04 |
| **Asset Quality** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-performing loans | $7767 | $8409 | $9998 | $10482 | $11983 |
| &nbsp;&nbsp;&nbsp;Real estate owned, net | $— | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;Non-performing assets | $7767 | $8409 | $9998 | $10482 | $11983 |
| &nbsp;&nbsp;&nbsp;Allowance for loan losses to total loans (%) | 0.87 | 0.91 | 0.98 | 1.00 | 1.13 |
| &nbsp;&nbsp;&nbsp;Allowance for loan losses to non-performing loans (%) | 172.52 | 161.73 | 140.53 | 128.46 | 120.38 |
| &nbsp;&nbsp;&nbsp;Non-performing loans to total loans (%) | 0.50 | 0.56 | 0.70 | 0.78 | 0.94 |
| &nbsp;&nbsp;&nbsp;Non-performing assets to total assets (%) | 0.38 | 0.42 | 0.51 | 0.54 | 0.63 |
| &nbsp;&nbsp;&nbsp;Net charge-offs to average outstanding loans during the period (%) | (0.01) | 0.01 |  |  |  |

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(1) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(2) Net interest margin represents net interest income divided by average interest-earning assets.

(3) Efficiency ratio represents adjusted non-interest expense divided by the sum of net interest income plus non-interest income.

(4) Tangible equity equals $392.9 million, which exclude intangible assets ($798 thousand of capitalized software).

Tangible assets equal $2.04 billion and excludes intangible assets.

(5) Per share metrics are computed using 27,523,219 total shares outstanding.

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BLUE FOUNDRY BANCORP AND SUBSIDIARY

Analysis of Net Interest Income

(Unaudited)

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended |
| | December 31, 2022 | December 31, 2022 | December 31, 2022 | September 30, 2022 | September 30, 2022 | September 30, 2022 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
| | Average Balance | Interest | Average<br>Yield/Cost | Average Balance | Interest | Average<br>Yield/Cost | Average Balance | Interest | Average<br>Yield/Cost |
| | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| Assets: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Loans <sup>(1)</sup> | $1511941 | $14487 | 3.80% | $1465114 | $13692 | 3.71% | $1276698 | $12357 | 3.84% |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities | 187213 | 1092 | 2.31% | 197406 | 1055 | 2.12% | 160372 | 708 | 1.75% |
| &nbsp;&nbsp;&nbsp;Other investment securities | 200013 | 1425 | 2.83% | 204506 | 1230 | 2.39% | 171427 | 913 | 2.11% |
| &nbsp;&nbsp;&nbsp;FHLB stock | 17225 | 216 | 4.96% | 13141 | 139 | 4.20% | 10549 | 158 | 5.96% |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 44718 | 349 | 3.10% | 49163 | 256 | 2.07% | 243110 | 99 | 0.16% |
| Total interest-bearing assets | 1961110 | 17569 | 3.55% | 1929330 | 16372 | 3.37% | 1862156 | 14235 | 3.03% |
| Non-interest earning assets | 52258 |  |  | 61264 |  |  | 96592 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2013368 |  |  | $1990594 |  |  | $1958748 |  |  |
| Liabilities and shareholders' equity: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, savings, and money market deposits | $848199 | 1636 | 0.77% | $831191 | 759 | 0.36% | $715653 | 256 | 0.14% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time deposits | 356377 | 846 | 0.94% | 405823 | 665 | 0.65% | 495608 | 781 | 0.62% |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | 1204576 | 2482 | 0.82% | 1237014 | 1424 | 0.46% | 1211261 | 1037 | 0.34% |
| &nbsp;&nbsp;&nbsp;FHLB advances | 323903 | 2160 | 2.65% | 243647 | 1133 | 1.84% | 199001 | 863 | 1.72% |
| Total interest-bearing liabilities | 1528479 | 4642 | 1.20% | 1480661 | 2557 | 0.69% | 1410262 | 1900 | 0.53% |
| Non-interest bearing deposits | 42144 |  |  | 49869 |  |  | 43977 |  |  |
| Non-interest bearing other | 47746 |  |  | 48103 |  |  | 56095 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1618369 |  |  | 1578633 |  |  | 1510334 |  |  |
| Total shareholders' equity | 394999 |  |  | 411961 |  |  | 448414 |  |  |
| Total liabilities and shareholders' equity | $2013368 |  |  | $1990594 |  |  | $1958748 |  |  |
| Net interest income |  | $12927 |  |  | $13815 |  |  | $12335 |  |
| Net interest rate spread <sup>(2)</sup> |  |  | 2.35% |  |  | 2.68% |  |  | 2.50% |
| Net interest margin <sup>(3)</sup> |  |  | 2.62% |  |  | 2.84% |  |  | 2.63% |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Average loan balances are net of deferred loan fees and costs, and premiums and discounts, and include non-accrual loans.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Net interest margin represents net interest income divided by average interest-earning assets.

------

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, |
| | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 |
| | Average Balance | Interest | Average<br>Yield/Cost | Average Balance | Interest | Average<br>Yield/Cost |
| | (Dollar in thousands) | (Dollar in thousands) | (Dollar in thousands) | (Dollar in thousands) | (Dollar in thousands) | (Dollar in thousands) |
| Assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;Loans <sup>(1)</sup> | $1407502 | $52279 | 3.71% | $1274885 | $48719 | 3.82% |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities | 190540 | 3934 | 2.06% | 154882 | 2908 | 1.88% |
| &nbsp;&nbsp;&nbsp;Other investment securities | 203002 | 4820 | 2.37% | 147853 | 3237 | 2.19% |
| &nbsp;&nbsp;&nbsp;FHLB stock | 12629 | 587 | 4.65% | 14373 | 744 | 5.17% |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 88703 | 793 | 0.89% | 356458 | 445 | 0.12% |
| Total interest-bearing assets | 1902376 | 62413 | 3.28% | 1948451 | 56053 | 2.88% |
| Non-interest earning assets | 64786 |  |  | 87443 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1967162 |  |  | $2035894 |  |  |
| Liabilities and shareholders' equity: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, savings, and money market deposits | $812473 | 2959 | 0.36% | $676697 | 1091 | 0.16% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time deposits | 412734 | 2779 | 0.67% | 610092 | 6793 | 1.11% |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | 1225207 | 5738 | 0.47% | 1286789 | 7884 | 0.61% |
| &nbsp;&nbsp;&nbsp;FHLB advances | 235589 | 4832 | 2.05% | 280985 | 5220 | 1.86% |
| Total interest-bearing liabilities | 1460796 | 10570 | 0.72% | 1567774 | 13104 | 0.84% |
| Non-interest bearing deposits | 44029 |  |  | 106033 |  |  |
| Non-interest bearing other | 47707 |  |  | 47560 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1552532 |  |  | 1721367 |  |  |
| Total shareholders' equity | 414630 |  |  | 314527 |  |  |
| Total liabilities and shareholders' equity | $1967162 |  |  | $2035894 |  |  |
| Net interest income |  | $51843 |  |  | $42949 |  |
| Net interest rate spread <sup>(2)</sup> |  |  | 2.56% |  |  | 2.04% |
| Net interest margin <sup>(3)</sup> |  |  | 2.73% |  |  | 2.20% |

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(1) Average loan balances are net of deferred loan fees and costs, and premiums and discounts, and include non-accrual loans.

(2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(3) Net interest margin represents net interest income divided by average interest-earning assets.

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BLUE FOUNDRY BANCORP AND SUBSIDIARY

Adjusted Pre-Provision Net Revenue (Non-GAAP)

(Dollars in thousands except per share data) (Unaudited)

This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Blue Foundry's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Blue Foundry's financial results. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Blue Foundry strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Net income, as presented in the Consolidated Statements of Operations, includes the provision for loan losses, provision for commitments and letters of credit, and income tax expense while pre-provision net revenue does not.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Three months ended | Three months ended |
| | December 31, 2022 | September 30,<br>2022 | June 30,<br>2022 | March 31,<br>2022 | December 31,<br>2021 |
| **Pre-provision net revenue (PPNR) and efficiency ratio, as adjusted:** | **Pre-provision net revenue (PPNR) and efficiency ratio, as adjusted:** |  |  |  |  |
| Net interest income | $12927 | $13815 | $13162 | $11939 | $12336 |
| Other income | 444 | 799 | 494 | 927 | 704 |
| Operating expenses, as reported | 12869 | 13669 | 13019 | 13216 | 17380 |
| &nbsp;&nbsp;&nbsp;Less: Fee on debt extinguishment |  |  |  |  | 754 |
| &nbsp;&nbsp;&nbsp;Less: Loss on pension withdrawal |  |  |  |  | 1974 |
| &nbsp;&nbsp;&nbsp;Less: Provision for commitments and letters of credit | (203) | 170 | (108) | (170) | 148 |
| &nbsp;&nbsp;&nbsp;Less: Loss on assets held for sale |  |  |  |  | 83 |
| Operating expenses, as adjusted | 13072 | 13499 | 13127 | 13386 | 14421 |
| **Pre-provision net revenue (loss), as adjusted** | $**299** | $**1115** | $**529** | $**(520)** | $**(1381)** |
| **Efficiency ratio, as adjusted** | **97.8%** | **92.4%** | **96.1%** | **104.0%** | **110.6%** |
| **Core deposits:** |  |  |  |  |  |
| Total deposits | $1288862 | $1266497 | $1296674 | $1283022 | $1247040 |
| Less: time deposits | 416260 | 365548 | 430696 | 444936 | 473795 |
| **Core deposits** | $**872602** | $**900949** | $**865978** | $**838086** | $**773245** |
| Core deposits to total deposits | 67.7% | 71.1% | 66.8% | 65.3% | 62.0% |
| **Tangible equity:** |  |  |  |  |  |
| Shareholders' equity <sup>(1) (2)</sup> | $393718 | $397338 | $412293 | $420214 | $429472 |
| Less: intangible assets | 798 | 760 | 630 | 452 | 437 |
| **Tangible equity** | $**392920** | $**396578** | $**411663** | $**419762** | $**429035** |
| **Tangible book value per share:** |  |  |  |  |  |
| Tangible equity | $392920 | $396578 | $411663 | $419762 | $429035 |
| Shares outstanding | 27523219 | 28155292 | 28522500 | 28522500 | 28522500 |
| **Tangible book value per share** | $**14.28** | $**14.09** | $**14.43** | $**14.72** | $**15.04** |

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(1) The Company recorded a deferred tax asset valuation allowance of $16.8 million as of December 31, 2021.

(2) Accumulated other comprehensive income (AOCI) declined by $24.3 million in 2022, largely a result of the rising rate environment which negatively impacted the fair value of the Company's available-for-sale investment portfolio.

<br>