Blue Foundry Bancorp reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a challenging period marked by increased losses and fluctuating revenues. The company recorded a net loss of $4.0 million for Q3 2024, compared to a loss of $1.4 million in Q3 2023. For the nine-month period, the net loss was $9.2 million, up from $4.5 million in the same period last year.

Interest income for the third quarter increased to $21.5 million, a 6.7% rise from $20.2 million in Q3 2023. For the nine months, interest income reached $63.7 million, an 8.3% increase from $58.8 million in 2023. However, total interest expense also rose significantly, reaching $12.4 million in Q3 2024, up from $10.3 million in Q3 2023, and $35.6 million for the nine months, compared to $26.1 million in the prior year. This led to a decrease in net interest income, which fell to $9.1 million in Q3 2024 from $9.9 million in Q3 2023, and to $28.1 million for the nine months, down from $32.7 million in 2023.

Total deposits increased by $73.8 million to $1.32 billion as of September 30, 2024, driven by a 17.5% rise in time deposits, which reached $701.3 million. However, checking and savings accounts saw a decline of 4.8%. The company’s total assets increased slightly to $2.06 billion from $2.04 billion at the end of 2023.

The company’s total shareholders’ equity decreased by $16.3 million to $339.3 million, primarily due to the repurchase of treasury shares costing $14.4 million. The allowance for credit losses on loans decreased to $13.0 million, down from $14.2 million at the end of 2023, reflecting a release of $1.0 million in provisions for credit losses during the nine-month period.

In terms of strategic developments, Blue Foundry Bancorp adopted a stock repurchase program on November 8, 2024, allowing for the repurchase of up to 1,139,420 shares, or 5% of its outstanding common stock. As of the reporting date, the company had repurchased 4,700 shares under this plan. The company continues to manage interest rate risk through various strategies, including the use of interest rate swaps, which increased to a notional amount of $274.0 million as of September 30, 2024.

Overall, Blue Foundry Bancorp's financial performance reflects a period of increased interest income but also heightened expenses and losses, alongside strategic initiatives aimed at stabilizing its financial position.