Blue Foundry Bancorp (NASDAQ:BLFY) Q2 2023 Earnings Call Transcript

Jim Nesci: So we look at, say, funding curve. We go through wholesale funding first, then we look at our retail funding, and they are 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 can 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.

Kelly Pecoraro: And then…

Justin Crowley: Okay. Got it. Sorry, go ahead.

Kelly Pecoraro: No. 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 sure that 40% of our wholesale funding book is under a year in terms of duration, so looking to be opportunistic as we place the funding.

Justin Crowley: Okay. And then do you – I mean at 10%, is there a limit on how much further you can lean into the brokered market?

Kelly Pecoraro: So it’s a combination in terms of what our policy limits has at this point, but we still have some room in the brokered spot.

Justin Crowley: Okay, got it. Alright, guys. I appreciate it. I will leave it there. Thank you for taking my questions.

Kelly Pecoraro: Thank you, Justin.

Jim Nesci: Thank you, Justin.

Operator: Thank you, Justin. We have no further questions at this time. So I will now hand back to Jim Nesci for any final remarks.

Jim Nesci: I’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.

Operator: This concludes today’s call. Thank you for joining. You may now disconnect your lines.