NASDAQ:BLFY Blue Foundry Bancorp Q2 2023 Earnings Report $9.84 +0.25 (+2.61%) Closing price 05/2/2025 04:00 PM EasternExtended Trading$9.84 0.00 (0.00%) As of 04:17 AM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Blue Foundry Bancorp EPS ResultsActual EPS-$0.08Consensus EPS -$0.10Beat/MissBeat by +$0.02One Year Ago EPSN/ABlue Foundry Bancorp Revenue ResultsActual Revenue$11.29 millionExpected Revenue$11.76 millionBeat/MissMissed by -$470.00 thousandYoY Revenue GrowthN/ABlue Foundry Bancorp Announcement DetailsQuarterQ2 2023Date7/26/2023TimeN/AConference Call DateWednesday, July 26, 2023Conference Call Time11:00AM ETUpcoming EarningsBlue Foundry Bancorp's Q2 2025 earnings is scheduled for Wednesday, July 23, 2025, with a conference call scheduled at 11:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Blue Foundry Bancorp Q2 2023 Earnings Call TranscriptProvided by QuartrJuly 26, 2023 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Good morning, and welcome to the Blue Foundry Bancorp's Second Quarter 2023 Earnings Call. My name is Carla, and I will be your conference operator today. 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. During the call, management will refer to non GAAP measures, which exclude certain items from reported results. Operator00:00:42Please refer to today's earnings release for reconciliations of these non GAAP measures. As a reminder, this event is being recorded. Your line will be muted for the duration of the call. After the speakers' remarks, there will be a question and answer session. I will now turn the call over to President and CEO, Jim Nesi. Speaker 100:01:04Thank you, operator. Good morning, everyone, and welcome to our Q2 earnings call. I am joined by our Chief Financial Officer, Kelly Temperaro, We will share the company's financial results in greater detail after my opening remarks. The competition for deposits from both depository And non depository institutions along with the inverted yield curve continues to have an adverse impact On our margin and cost of funds, despite this top line pressure, we have been pleased to see our investments in technology results And productivity saves. Quarter over quarter, our operating expenses declined $689,000 or 5.1 percent, Driven primarily by lower compensation and benefits expense. Speaker 100:01:53Headcount is 9% lower Than it was at the end of 2022. And employees have increased productivity by optimizing redundant tests Through the use of technology, allowing them to focus on more impactful projects. Additionally, we have been keenly focused on managing down variable expenses. We have reduced our reliance on consultants and our advertising costs were 71% During the Q2, we repurchased 1,892,000 shares At a weighted average cost of $9.68 a discount to tangible book value. This helped tangible book value per share increase $0.29 to $14.35 at June 30. Speaker 100:02:41We continue to believe that share repurchase programs represent the prudent use of capital. We are still active in the lending markets. During the Q2, we originated $41,000,000 in loans primarily in our commercial portfolios. Our underwriting standards remain conservative, and our credit quality remains strong. Our management team continues to monitor The macroeconomic environment and liquidity challenges being experienced throughout the banking industry, we remain steadfast in maintaining strong capital liquidity positions. Speaker 100:03:17Both our bank and holding company remained more than well capitalized. At the end of the second quarter, We had over $395,000,000 in untapped borrowing capacity. Additionally, our available for sale securities portfolio, Which represents 90% of the debt securities we hold, provided an additional $301,000,000 of liquidity. Blue Foundry continues to operate with a low percentage of uninsured deposits and low concentration risk to any single depositor. Our bank subsidiary had uninsured deposits totaling approximately $293,000,000 at the end of the second quarter. Speaker 100:04:00This total includes approximately $69,000,000 of deposits from the Blue Foundry Bancorp, dollars 20,000,000 of deposits from its subsidiary, Blue Factory Investment Company and $32,000,000 on municipal deposits, Which are insured under New Jersey's Governmental Unit Deposit Protection Act. Excluding these three items, uninsured deposits From customer accounts represented only 13.6 percent of the bank's total deposits. This improved from the prior quarter As some of our larger relationships took advantage of the increased FDIC coverage that we provide through our ICS and Cedar Sweep account products. Additionally, our available liquidity covers 4.4 times our uninsured and uncollateralized deposits to customers. With that, I'd like to turn the call over to Kelly, and then we'd be delighted to answer your questions. Speaker 200:04:57Thank you, Jen, and good morning, everyone. The net loss for the Q2 was $1,800,000 compared to net loss of $1,200,000 during the prior quarter. This change was largely related to funding pressures from the competitive rate environment. While we realized a 930 $3,000 expansion in interest income. Our interest expense increased $2,000,000 resulting in a Reduction of $1,000,000 in net interest income. Speaker 200:05:31Yield on loans increased by 11 basis points To 4.18 percent and yield on all interest bearing assets also increased by 11 basis points To 3.93 percent. Remaining competitive in deposit pricing, the cost of interest bearing deposits increased 35 basis points to 1.73%. This, coupled with an increase in average short term borrowing, Drove the cost of funds to 2.15 percent, a 42 basis point increase compared with the prior quarter. While the increase in the cost of interest bearing liabilities and cost of funds has slowed since last quarter, we still expect pressure on our margin to continue Due to competition for deposits, the current rate environment and the liability sensitive nature of our balance sheet. During the quarter, we recorded a provision for credit loss of $143,000 for the quarter ended June 30, 2023, driven by an increase in the allowance for loans, partially offset by a decrease in the allowance for commitments. Speaker 200:06:49Our asset quality remains strong in the current environment. During the quarter, non performing loans to total loans increased 2 basis points to 49 basis points, primarily driven by a slight increase in non accrual loans. Our allowance to total loans increased 2 basis points to 91 basis points, and our allowance to non accrual loans decreased to 186 percent from 189% the prior quarter, also due to the slight increase in non accrual loans. Expenses declined $689,000 largely driven by a reduction in compensation and benefit expense. This reduction was driven by a full quarter of sustained lower headcount and a reduction in variable compensation. Speaker 200:07:44We continue to explore opportunities to reduce our expense base. Additionally, while there were one time items in operating expenses this Quarter, they largely offset each other. Therefore, we expect operating expenses for the remainder of the year To remain relatively in line with the Q2. Moving on to the balance sheet, gross loans declined $4,600,000 as amortization and payoff outpaced loan funding. As a reminder, less than 2% of our loan portfolio is in office space and none is in the New York City market. Speaker 200:08:27With the duration of 4.8 years, our debt securities portfolio continues to provide cash flow that is being used to fund loans. These securities declined $8,200,000 due to maturities, calls and scheduled pay downs. Funding our balance sheet has been challenging in this environment. Deposits increased $23,000,000 1.8% during the quarter. We were able to increase retail time deposits by $48,000,000 And we executed $50,000,000 of new brokered CDs. Speaker 200:09:07This growth in time deposits was partially offset By an outflow of $75,000,000 from non maturity accounts. Our focus remains on attracting the full banking relationship of small to medium sized businesses. We offer an extensive suite of low cost deposit products to our business customers. Despite the competition for deposits, we were able to grow both business balances and the number of business accounts By 2% during the Q2. For the 6 months ended June 30, 2023, Balances were up 8% and accounts were up 5%. Speaker 200:09:51During the quarter, borrowings decreased $23,000,000 And with that, Jim and I are happy to take your questions. Operator00:10:08Thank Our first question is from Justin Crowley from Piper Sandler. Your line is now open. Please go ahead. Speaker 300:10:31Hey, good morning guys. Speaker 200:10:34Good morning. Speaker 300:10:35So it's certainly nice to see some of the expense reduction this quarter And you spoke to sort of holding this rate through the end of the year. Curious, it sounds like maybe that was a little bit more of a pull forward. I was looking for more of some of these reductions towards the back half of the year, but on some of the further strategies that you're taking a look at, What does that sort of entail? Does it go beyond simply headcount, which you've done a strong job on? Speaker 200:11:08So Justin, yes, I think we're guiding at this point to low-13s for the Q3 and into the 4th quarter, Driven primarily by the reduction in headcount and variable compensation, we're also continually looking at ways of reducing costs, Whether it's through our advertising initiatives or other initiatives throughout the bank being able to leverage the technology we already have in place As opposed to putting new things on, so we continue to look for all of those cost savings initiatives as we move forward. Speaker 100:11:42Justin, just to add on to that a little bit. We go through a vendor analysis on a quarterly basis where we can Consolidate number of vendors or extract better contract pricing, but that's something that we do on a regular basis. So expense management It's definitely a focus of the management team. Speaker 300:12:05Okay. I appreciate that. And then switching over to growth, I think you guys had previously talked about being a little bit more judicious on loan growth. Curious how the slowdown that we saw this quarter, how that sort of compares to expectations as you look through the balance of the year? How much of that is Predicated on what you see on the deposit generation side, and perhaps managing that loan to deposit ratio. Speaker 100:12:34So I think you hit it spot on. We're constantly looking at our funding sources, whether it's on Organic deposit generation or through wholesale funding. We are definitely opportunistic Match Funding, we have lines accessible to us where we can still make a decent spread. So we are still in the market, still lending. But again, it is definitely we look at funding first and then we look at the opportunity and we look at the credit quality and what the market will give us. Speaker 100:13:07But I think Kelly may want to add to that. Speaker 200:13:10Yes. No, I think Jim is correct in terms of how we look at it. Also, what's available in the market, remain disciplined on our credit standards as we are walking into this market. So That's how we look at it. We do envision growth. Speaker 200:13:26We are able to originate in this market and look for opportunistic Speaker 300:13:34Okay. And where are you seeing the most opportunity? Is it going to be more like the C and I side and less so real estate Just as you look out here. Speaker 200:13:45So I think we're seeing it in a couple of different segments. You did see our construction tick up. We are have originated some construction loans to well seasoned sponsors and building on the multifamily product. Also, we are seeing some additional increases in C and I as we move into the second half of the year. Speaker 300:14:08Okay. That's helpful. And then I guess just quickly just back to the funding side of things. So weighing of putting on brokered money versus borrowings, can you just unpack a little bit what drives that decision? Is it the pure economics of it? Speaker 300:14:24And how do you balance that with, again, just sort of going back to the loan to deposit ratio where that flushes out, again, just versus looking at the cost Speaker 100:14:37So we look at a funding curve. We go through wholesale funding first, then we look at our retail funding, and they're all laid out on the curve For us to consider, sometimes the swap markets provide better value, but we are diligent in looking and picking Where on the curve we want to be as far as duration and then the type of funding we want to take on our balance sheet, where we And get a fuller relationship from a customer that does incentivize us to possibly pay up for a rate. But in general, we look at the Funding sources between wholesale and retail. Speaker 200:15:20And then Speaker 300:15:21Okay, got it. And then Speaker 100:15:25Sorry, go ahead. Speaker 200:15:27No, Jessa. I was just saying in terms of our wholesale funding, looking at the difference Between whether we're borrowing from the Federal Home Loan Bank or going into the brokered market, we take the metrics into consideration. We are short about 40% of our wholesale funding book is under a year in terms of duration. Still looking to be opportunistic as we place the funding. Speaker 300:15:54Okay. And then do you I mean at 10%, Is there a limit on how much further you can lean into the brokered market? Speaker 200:16:04So it's a combination in terms of what our policy limits have at this point, but we still have some room in the brokerage spot. Speaker 300:16:15Okay, got it. All right, guys. I appreciate it. I'll leave it there. Thank you for taking my questions. Speaker 100:16:22Thank you, Justin. Thanks, Justin. Operator00:16:27Thank you, Justin. We have no further questions at this time. So I will now hand back to Jim Nesi for any final remarks. Speaker 100:16:35I'd like to thank all the participants who dialed in today. I appreciate your interest in Blue Foundry Bank and we look forward to speaking with you again next quarter. Thank you. Operator00:16:54This concludes today's call. Thank you for joining. You may now disconnect your lines.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallBlue Foundry Bancorp Q2 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Blue Foundry Bancorp Earnings HeadlinesEarnings call transcript: Blue Foundry Bancorp beats Q1 2025 EPS forecastMay 2 at 8:51 AM | uk.investing.comBlue Foundry Bancorp highlights Q1 2025 loan growth and net interest margin expansionMay 1, 2025 | msn.comTrump wipes out trillions overnight…Is there anybody more powerful than Donald Trump right now? In a single tariff announcement, he wiped out nearly $5 trillion in wealth from the S&P 500 and $6.4 trillion from the Dow Jones… Not to mention the countless trillions of dollars lost in every market around the world… leaving the major political powers scrambling in fear of Trump’s next move.May 5, 2025 | Porter & Company (Ad)Blue Foundry Bancorp (BLFY) Q1 2025 Earnings Call Highlights: Navigating Growth Amidst ChallengesMay 1, 2025 | finance.yahoo.comBlue Foundry Bancorp reports narrower Q1 loss, stock fallsApril 30, 2025 | za.investing.comBlue Foundry Bancorp (BLFY) Q1 2025 Earnings Call TranscriptApril 30, 2025 | seekingalpha.comSee More Blue Foundry Bancorp Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Blue Foundry Bancorp? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Blue Foundry Bancorp and other key companies, straight to your email. Email Address About Blue Foundry BancorpBlue Foundry Bancorp (NASDAQ:BLFY) operates as a bank holding company for Blue Foundry Bank, a savings bank that offers various banking products and services for individuals and businesses in the United States. The company offers saving, time, and non-interest bearing deposits; demand accounts; and loans, such as one-to-four family residential property, multi-family, residential real estate, non-residential real estate, consumer, construction, and commercial and industrial loans, as well as junior liens and home equity lines of credit. The company was formerly known as Boiling Springs Bancorp and changed its name to Blue Foundry Bancorp in July 2019. Blue Foundry Bancorp was founded in 1939 and is based in Rutherford, New Jersey.View Blue Foundry Bancorp ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Amazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2Palantir Earnings: 1 Bullish Signal and 1 Area of ConcernVisa Q2 Earnings Top Forecasts, Adds $30B Buyback PlanMicrosoft Crushes Earnings, What’s Next for MSFT Stock?Qualcomm's Earnings: 2 Reasons to Buy, 1 to Stay AwayAMD Stock Signals Strong Buy Ahead of Earnings Upcoming Earnings Advanced Micro Devices (5/6/2025)American Electric Power (5/6/2025)Constellation Energy (5/6/2025)Marriott International (5/6/2025)Energy Transfer (5/6/2025)Mplx (5/6/2025)Brookfield Asset Management (5/6/2025)Arista Networks (5/6/2025)Duke Energy (5/6/2025)Zoetis (5/6/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 4 speakers on the call. Operator00:00:00Good morning, and welcome to the Blue Foundry Bancorp's Second Quarter 2023 Earnings Call. My name is Carla, and I will be your conference operator today. 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. During the call, management will refer to non GAAP measures, which exclude certain items from reported results. Operator00:00:42Please refer to today's earnings release for reconciliations of these non GAAP measures. As a reminder, this event is being recorded. Your line will be muted for the duration of the call. After the speakers' remarks, there will be a question and answer session. I will now turn the call over to President and CEO, Jim Nesi. Speaker 100:01:04Thank you, operator. Good morning, everyone, and welcome to our Q2 earnings call. I am joined by our Chief Financial Officer, Kelly Temperaro, We will share the company's financial results in greater detail after my opening remarks. The competition for deposits from both depository And non depository institutions along with the inverted yield curve continues to have an adverse impact On our margin and cost of funds, despite this top line pressure, we have been pleased to see our investments in technology results And productivity saves. Quarter over quarter, our operating expenses declined $689,000 or 5.1 percent, Driven primarily by lower compensation and benefits expense. Speaker 100:01:53Headcount is 9% lower Than it was at the end of 2022. And employees have increased productivity by optimizing redundant tests Through the use of technology, allowing them to focus on more impactful projects. Additionally, we have been keenly focused on managing down variable expenses. We have reduced our reliance on consultants and our advertising costs were 71% During the Q2, we repurchased 1,892,000 shares At a weighted average cost of $9.68 a discount to tangible book value. This helped tangible book value per share increase $0.29 to $14.35 at June 30. Speaker 100:02:41We continue to believe that share repurchase programs represent the prudent use of capital. We are still active in the lending markets. During the Q2, we originated $41,000,000 in loans primarily in our commercial portfolios. Our underwriting standards remain conservative, and our credit quality remains strong. Our management team continues to monitor The macroeconomic environment and liquidity challenges being experienced throughout the banking industry, we remain steadfast in maintaining strong capital liquidity positions. Speaker 100:03:17Both our bank and holding company remained more than well capitalized. At the end of the second quarter, We had over $395,000,000 in untapped borrowing capacity. Additionally, our available for sale securities portfolio, Which represents 90% of the debt securities we hold, provided an additional $301,000,000 of liquidity. Blue Foundry continues to operate with a low percentage of uninsured deposits and low concentration risk to any single depositor. Our bank subsidiary had uninsured deposits totaling approximately $293,000,000 at the end of the second quarter. Speaker 100:04:00This total includes approximately $69,000,000 of deposits from the Blue Foundry Bancorp, dollars 20,000,000 of deposits from its subsidiary, Blue Factory Investment Company and $32,000,000 on municipal deposits, Which are insured under New Jersey's Governmental Unit Deposit Protection Act. Excluding these three items, uninsured deposits From customer accounts represented only 13.6 percent of the bank's total deposits. This improved from the prior quarter As some of our larger relationships took advantage of the increased FDIC coverage that we provide through our ICS and Cedar Sweep account products. Additionally, our available liquidity covers 4.4 times our uninsured and uncollateralized deposits to customers. With that, I'd like to turn the call over to Kelly, and then we'd be delighted to answer your questions. Speaker 200:04:57Thank you, Jen, and good morning, everyone. The net loss for the Q2 was $1,800,000 compared to net loss of $1,200,000 during the prior quarter. This change was largely related to funding pressures from the competitive rate environment. While we realized a 930 $3,000 expansion in interest income. Our interest expense increased $2,000,000 resulting in a Reduction of $1,000,000 in net interest income. Speaker 200:05:31Yield on loans increased by 11 basis points To 4.18 percent and yield on all interest bearing assets also increased by 11 basis points To 3.93 percent. Remaining competitive in deposit pricing, the cost of interest bearing deposits increased 35 basis points to 1.73%. This, coupled with an increase in average short term borrowing, Drove the cost of funds to 2.15 percent, a 42 basis point increase compared with the prior quarter. While the increase in the cost of interest bearing liabilities and cost of funds has slowed since last quarter, we still expect pressure on our margin to continue Due to competition for deposits, the current rate environment and the liability sensitive nature of our balance sheet. During the quarter, we recorded a provision for credit loss of $143,000 for the quarter ended June 30, 2023, driven by an increase in the allowance for loans, partially offset by a decrease in the allowance for commitments. Speaker 200:06:49Our asset quality remains strong in the current environment. During the quarter, non performing loans to total loans increased 2 basis points to 49 basis points, primarily driven by a slight increase in non accrual loans. Our allowance to total loans increased 2 basis points to 91 basis points, and our allowance to non accrual loans decreased to 186 percent from 189% the prior quarter, also due to the slight increase in non accrual loans. Expenses declined $689,000 largely driven by a reduction in compensation and benefit expense. This reduction was driven by a full quarter of sustained lower headcount and a reduction in variable compensation. Speaker 200:07:44We continue to explore opportunities to reduce our expense base. Additionally, while there were one time items in operating expenses this Quarter, they largely offset each other. Therefore, we expect operating expenses for the remainder of the year To remain relatively in line with the Q2. Moving on to the balance sheet, gross loans declined $4,600,000 as amortization and payoff outpaced loan funding. As a reminder, less than 2% of our loan portfolio is in office space and none is in the New York City market. Speaker 200:08:27With the duration of 4.8 years, our debt securities portfolio continues to provide cash flow that is being used to fund loans. These securities declined $8,200,000 due to maturities, calls and scheduled pay downs. Funding our balance sheet has been challenging in this environment. Deposits increased $23,000,000 1.8% during the quarter. We were able to increase retail time deposits by $48,000,000 And we executed $50,000,000 of new brokered CDs. Speaker 200:09:07This growth in time deposits was partially offset By an outflow of $75,000,000 from non maturity accounts. Our focus remains on attracting the full banking relationship of small to medium sized businesses. We offer an extensive suite of low cost deposit products to our business customers. Despite the competition for deposits, we were able to grow both business balances and the number of business accounts By 2% during the Q2. For the 6 months ended June 30, 2023, Balances were up 8% and accounts were up 5%. Speaker 200:09:51During the quarter, borrowings decreased $23,000,000 And with that, Jim and I are happy to take your questions. Operator00:10:08Thank Our first question is from Justin Crowley from Piper Sandler. Your line is now open. Please go ahead. Speaker 300:10:31Hey, good morning guys. Speaker 200:10:34Good morning. Speaker 300:10:35So it's certainly nice to see some of the expense reduction this quarter And you spoke to sort of holding this rate through the end of the year. Curious, it sounds like maybe that was a little bit more of a pull forward. I was looking for more of some of these reductions towards the back half of the year, but on some of the further strategies that you're taking a look at, What does that sort of entail? Does it go beyond simply headcount, which you've done a strong job on? Speaker 200:11:08So Justin, yes, I think we're guiding at this point to low-13s for the Q3 and into the 4th quarter, Driven primarily by the reduction in headcount and variable compensation, we're also continually looking at ways of reducing costs, Whether it's through our advertising initiatives or other initiatives throughout the bank being able to leverage the technology we already have in place As opposed to putting new things on, so we continue to look for all of those cost savings initiatives as we move forward. Speaker 100:11:42Justin, just to add on to that a little bit. We go through a vendor analysis on a quarterly basis where we can Consolidate number of vendors or extract better contract pricing, but that's something that we do on a regular basis. So expense management It's definitely a focus of the management team. Speaker 300:12:05Okay. I appreciate that. And then switching over to growth, I think you guys had previously talked about being a little bit more judicious on loan growth. Curious how the slowdown that we saw this quarter, how that sort of compares to expectations as you look through the balance of the year? How much of that is Predicated on what you see on the deposit generation side, and perhaps managing that loan to deposit ratio. Speaker 100:12:34So I think you hit it spot on. We're constantly looking at our funding sources, whether it's on Organic deposit generation or through wholesale funding. We are definitely opportunistic Match Funding, we have lines accessible to us where we can still make a decent spread. So we are still in the market, still lending. But again, it is definitely we look at funding first and then we look at the opportunity and we look at the credit quality and what the market will give us. Speaker 100:13:07But I think Kelly may want to add to that. Speaker 200:13:10Yes. No, I think Jim is correct in terms of how we look at it. Also, what's available in the market, remain disciplined on our credit standards as we are walking into this market. So That's how we look at it. We do envision growth. Speaker 200:13:26We are able to originate in this market and look for opportunistic Speaker 300:13:34Okay. And where are you seeing the most opportunity? Is it going to be more like the C and I side and less so real estate Just as you look out here. Speaker 200:13:45So I think we're seeing it in a couple of different segments. You did see our construction tick up. We are have originated some construction loans to well seasoned sponsors and building on the multifamily product. Also, we are seeing some additional increases in C and I as we move into the second half of the year. Speaker 300:14:08Okay. That's helpful. And then I guess just quickly just back to the funding side of things. So weighing of putting on brokered money versus borrowings, can you just unpack a little bit what drives that decision? Is it the pure economics of it? Speaker 300:14:24And how do you balance that with, again, just sort of going back to the loan to deposit ratio where that flushes out, again, just versus looking at the cost Speaker 100:14:37So we look at a funding curve. We go through wholesale funding first, then we look at our retail funding, and they're all laid out on the curve For us to consider, sometimes the swap markets provide better value, but we are diligent in looking and picking Where on the curve we want to be as far as duration and then the type of funding we want to take on our balance sheet, where we And get a fuller relationship from a customer that does incentivize us to possibly pay up for a rate. But in general, we look at the Funding sources between wholesale and retail. Speaker 200:15:20And then Speaker 300:15:21Okay, got it. And then Speaker 100:15:25Sorry, go ahead. Speaker 200:15:27No, Jessa. I was just saying in terms of our wholesale funding, looking at the difference Between whether we're borrowing from the Federal Home Loan Bank or going into the brokered market, we take the metrics into consideration. We are short about 40% of our wholesale funding book is under a year in terms of duration. Still looking to be opportunistic as we place the funding. Speaker 300:15:54Okay. And then do you I mean at 10%, Is there a limit on how much further you can lean into the brokered market? Speaker 200:16:04So it's a combination in terms of what our policy limits have at this point, but we still have some room in the brokerage spot. Speaker 300:16:15Okay, got it. All right, guys. I appreciate it. I'll leave it there. Thank you for taking my questions. Speaker 100:16:22Thank you, Justin. Thanks, Justin. Operator00:16:27Thank you, Justin. We have no further questions at this time. So I will now hand back to Jim Nesi for any final remarks. Speaker 100:16:35I'd like to thank all the participants who dialed in today. I appreciate your interest in Blue Foundry Bank and we look forward to speaking with you again next quarter. Thank you. Operator00:16:54This concludes today's call. Thank you for joining. You may now disconnect your lines.Read morePowered by