Blue Foundry Bank: Overview of the bank
Established in the year 1939 and with its main office located in the city of Rutherford which is located in the state of New Jersey, Blue Foundry Bank is a mid-sized bank that has been operating for 83 years. Blue Foundry Bank has been insured by the Federal Deposit Insurance Corporation since 1939 and the independent agency has provided insurance to the bank ever since. In addition, the FDIC is the primary federal regulator for the bank and is focused on supervising and examining the bank for operational safety and soundness. Mainly because of its relative size, geographic reach and presence, the bank is considered to be a community bank, instead of a national bank. Based on our estimates, we believe its asset base of $2,022 million ranks it in the 90th percentile of banks in the United States. Blue Foundry Bank does not currently have any offices located outside of the United States, and functionally is a domestic bank. Within the U.S., the bank currently has 18 offices. Finally, the bank currently has a total employee base of 173 people.
Overview of the Bank’s Assets and Liabilities
Some of the key components of the bank’s balance sheet are total assets of $2,022 million, total loans extended to customers of $1,239 million and customer deposits of $1,394 million. Approximately 38% of the bank’s deposits outstanding were transactional deposits, while domestic depositors made up 100% of the bank’s total deposit base. 80% of the domestic deposits outstanding are insured. Loans extended to customers of the bank currently comprise 62% of the bank’s total assets. Loans extended to customers for real estate purposes represented 97% of the total loans outstanding. In addition, 100% of real estate loans were domestic. Blue Foundry Bank has $547 million of outstanding 1-4 family residential loans (mortgages), which in total represents 44% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 0% and 3% of loans outstanding, respectively.
Contact Information and Other Facts For Blue Foundry Bank
- Main Office Address: 7 Sylvan Way, Rutherford, NJ 7054
- Website: http://bluefoundrybank.com
- Total Number of Branches: 18
- Total Number of International Branches: None
- Number of Employees: 173
- FDIC Certificate Number: 30052
- FDIC Community Bank: Yes
- FDIC Field Office: Jamesburg
- Independent or Subsidiary Bank: Independent
- Federal Reserve ID Number: 797775
- Bank Charter Class: SB
- Primary Regulator: FDIC
The bank had total assets of $2,022 million based on the latest available information. Its total assets have increased over the past year, with an increase of 5.1%. Moving to the bank’s loan portfolio, the bank has net loans outstanding of $1,239 million based on the latest available information. Its net loans outstanding have decreased over the past year, with a decrease of 7.2%. Residential mortgages comprise 44% of the outstanding loans of the bank. The outstanding balance of residential mortgages has decreased over the past year by 20.9%. In addition, the bank provides loans to commercial and industrial businesses, which represents 3.4% of its total lending and stood at $43 million based on the latest available information.
Bank Liquidity and Funding
While most banks are insured by the FDIC, the insurance coverage does not always provide full protection. Therefore, understanding a banks liquidity and funding is important to help assess the riskiness of a bank’s balance sheet. Customer deposits is usually one of the cheapest ways to finance a bank. This is especially the case for accounts that don’t pay interest, such as checking accounts. Blue Foundry Bank has total customer deposits of $1,394 million. Looking over the past year, its deposit base has increased with a growth rate of 4.3%. Furthermore, the bank has a loan to deposit ratio of 89% which is above the national average. Banks in the United States have a loan to deposit ratio of approximately 82%. A lower ratio is better since it means that a bank’s lending activities are more comfortably covered by its deposit base. Effectively all of the bank’s deposit base is funded by domestic sources.
Bank Performance and Capital Metrics
The above chart provides a brief summary of some of the key performance metrics for Blue Foundry Bank. Next to these metrics are the equivalent for the average U.S. bank. When it comes to the bank’s return on assets, over the past year it has improved. Importantly, on this metric we can also see that the bank is below the average bank. Return on assets tells us how productive a bank is being with its asset base. Next, looking at the bank’s return on equity, which tells us how much of a return the bank has generated for its owners, over the past year it has improved. In addition, we can also see that the bank is below the average bank on this metric. The bank’s total leverage ratio has improved over the past year and is currently above the national average. Last but certainly not least is the tier 1 capital ratio. This is an important measure of the financial strength of a bank and its balance sheet. Blue Foundry Bank’s tier 1 capital ratio has improved over the past year, and is above the average U.S. bank.
Final Thoughts: Blue Foundry Bank
In conclusion, when we look at all the various factors and data we give Blue Foundry Bank a 2.5 out of 5.0 rating, which we consider to be average. While for example, the bank shines when it comes to its tier 1 capital, which is above the national average, its net interest margin is a downward force on its rating. On this metric, the bank is below the national average. Finally, please note that the rating information is based on our proprietary scoring system. This system was developed by us and leverages data from a nationwide bank study. Importantly, keep in mind that none of the work presented is intended to be investment advice or advice of any sort and is presented purely for informational purposes.a