Q1 2022 Blue Foundry Bancorp Earnings Call
Okay.
Good morning, My name is minor and I'll be your conference operator today I would like to welcome everyone to the Blue Foundry Bancorp Q1, 2022 earnings call. Today's call will include forward looking statements, including statements about Blue foundry speech financial and operating results outlook business strategies and plans as well as other opportunities and potential.
Good morning. My name is Simona and I'll be your conference operator today. I would like to welcome everyone to the Blue Foundry Bancorp Q1 2022 earnings call. Today's call will include forward-looking statements, including statements about Blue Foundry's future financial and operating results, outlook, business strategies and plans, as well as other opportunities and potential risks that management foresees.
Risks that management foresees such forward looking statements reflect management's current estimates or beliefs and are subject to known and unknown risks and uncertainties that may cause actual results or the timing of events to differ materially from those expressed or implied in such forward looking statements.
Such forward-looking statements reflect management's current estimates or beliefs and are subject to known and unknown risks and uncertainties that may cause actual results or the timing of events to differ materially from those expressed or implied in such forward-looking statements. Listeners are referred to the disclosure set forth under the caption forward-looking statements in the earnings press release, as well as the risk factors and other disclosures contained in the company's recent filings with the Securities and Exchange Commission. For more information about such risks and uncertainties, please visit our website.
Listeners are referred to the disclosures set forth under the caption forward looking statement in the earnings press release as well as the risk factors and other disclosures contained in the company's recent filings with the Securities and Exchange Commission for more information about such risks and uncertainties any.
Any forward looking statements made during this call represent managements views and estimates only as of today, while the company may elect to update forward looking statements at some point in the future. The company specifically disclaims any obligation to do so even if management's views or estimates change and you should not rely on such statements as representing management views as of any date subsequent to today.
Any forward-looking statements made during this call represent management views and estimates only as of today. While the company may elect to update forward-looking statements at some point in the future, the company specifically disclaims any obligation to do so, even if management views or estimates change. And you should not rely on such statements as representing management views as of any date subsequent to today. During the call, the company will refer to non-GAAP measures, which exclude certain items from reported results. Please refer to today's earnings release for reconciliation of these non-GAAP measures.
The call the company will refer to non-GAAP measures, which exclude certain items from reported results. Please refer to today's earnings release for reconciliations of these non-GAAP measures. Please note. This event is being recorded all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you I'll now turn the call I'd like to gymnast E President and CEO .
Please note this event is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Thank you. I'll now turn the call over to Jim Nesse, President and CEO .
Great. Thanks, operator, and good morning, everyone.
Thank you for joining us.
First quarter earnings.
Joined today by our controller.
And interim Chief Financial Officer, Alex.
Thank you for joining us for Blue Foundry's first quarter earnings call. I am joined today by our controller and interim chief financial officer, Alex Agnellino. He will share the company's financial results and participate in the Q&A segment of the call.
He will share with you.
Actual results and participate in the Q&A session.
The first quarter of 2020, we made great progress towards our goals of growing core deposits and grow.
The higher interest, earning assets, our core deposits increased by $64 8 million.
In the first quarter of 2022, we made great progress towards our goals of growing core deposits and growing higher interest earning assets.
Gross loans increased by $55 million and our debt.
<unk> grew by $57 $3 million.
Our core deposits increased by $64.8 million in the quarter. Gross loans increased by $55 million. And our investment boat grew by $57.3 million.
We also worked diligently to reduce.
<unk> expenses, which decreased by $1 million in the quarter. This will position us well for Q2, when our asset group produces a full quarter of interest income.
We also worked diligently to reduce our core operating expenses, which decreased by over one million in the quarter.
On the retail front, we continue to grow our deposit franchise, specifically within our business customers.
This will position us well for Q2, when our asset growth produces a full quarter of interest.
In the quarter, our team grew core business deposits by over $40 million.
On the retail front, we continue to grow our deposit franchise specifically within our business customers.
New branches opened within the last year has seen strong growth in new customer acquisition success, as our refreshed brick and mortar locations provide an inviting and exciting customer experience.
In the quarter, our team grouped core business deposits by over $40 million.
New branches opened within the last year have seen strong growth and new customer acquisition success as our refreshed brick-and-mortar locations provide an inviting and exciting customer experience.
Moving to our lending efforts our team on boarded over 147 million new loans in the first quarter.
Excluding PPP quarterly gross loan growth came in at a net of $64 $1 million with strong performance within our commercial lending teams.
Moving to our lending efforts, our team onboarded over $147 million of new loans in the first quarter. Excluding PPP, quarterly gross loan growth came in at a net of $64.1 million, with strong performance within our commercial lending.
We are and we will continue to benefit from the rising rate environment as we put excess liquidity to work and as we fund the new loan growth with low cost core deposits total cash was 101 6 million.
We are and we will continue to benefit from the rising rate environment as we put excess liquidity to work and as we fund new loan growth with low-cost core deposits. Total cash was $101.6 million at the end of the first quarter, which represents our management team putting over $90 million to work during the quarter.
In the first quarter, which represents our management team putting over $90 million to work during the quarter.
The first quarter shows evidence of our core strategy and capability is beginning to come to fruition with our migration to becoming a larger more commercial bank funded by core deposits.
The first quarter shows evidence of our core strategy and capabilities beginning to come to fruition, with our migration to becoming a larger, more commercial bank funded by Core to Positive.
I'm also pleased to announce the appointment of our new Chief Financial Officer Kelly.
Kelly joins <unk> from.
From investors.
Where she most recently served as the Chief Accounting Officer. She began her career at KPMG audit practice and brings a wealth of accounting finance regulatory knowledge from her 30, plus year career that will support our growth objectives, Kelly will be formally appointed in mid day, and we'll work to transition responsibility with our interim.
I'm also pleased to announce the appointment of our new Chief Financial Officer, Kelly Pacquero. Kelly joins Blue Foundry Bank from Investors Bank, where she most recently served as the Chief Accounting Officer. She began her career in KPMG's audit practice and brings a wealth of accounting, finance, and regulatory knowledge from her 30-plus-year career that will support our growth objectives.
CFO .
Alex will return to serving as our controller following Kelly's appointment I'd like to turn the call over to Alex to discuss the company's financial results.
Kelly will be formally appointed in mid-May and will work to transition responsibilities with our interim CFO , Alex. Alex will return to serving as our controller following Kelly's appointment. I'd like to turn the call over to Alta Igniletto to discuss the company's financial...
Thank you Jim and good morning, everyone. Our GAAP net income for the quarter was 553000 or two cents per share core operating expenses decreased $1 4 million or 7% quarter over quarter to $13 4 million.
Thank you, Jim, and good morning, everyone. Our gap net income for the quarter was $553,000, or $0.02 per share. Core operating expenses decreased $1.04 million, or 7% quarter over quarter, to $13.4 million. This decrease was driven by a $418,000 reduction in professional...
This decrease was driven by a $418000 reduction in professional fees combined with a reduction in advertising expense of 276000.
And a reduction in occupancy expense of 199000.
This marks a significant reduction in our operating cost and will enable us to return to profitability in the coming months as we previously announced.
combined with a reduction in advertising expense of $276,000 and a reduction in occupancy expense of $199,000.
Quarter over quarter net interest income decreased 397000, or 3% to 11 9 million. This decrease was driven primarily by a reduction in PPP fees realized which was offset by loan and investment growth and a continued reduction in our cost of funds our net interest.
This marks a significant reduction in our operating costs and will enable us to return to profitability in the coming months as we previously announced.
Quarter over quarter, net interest income decreased 397,000, or 3%, to $11.9 million. This decrease was driven primarily by a reduction in PPP fees realized, which was offset by loan and investment growth, and a continued reduction in our cost of funds.
Margin decreased by one basis point to 262% for the three months ended March 31 2022.
They are to the prior quarter net interest margin increased by 54 basis points year over year from 2.08% to $2, 62%, representing a 26% increase our adjusted <unk> was a loss of 520000 for the quarter compared to a loss of $1 four.
our net interest margin decreased by 1 basis point to 2.62% of the 3 months ended March 31, 2022 as compared to the prior quarter. Net interest margin increased by 54 basis points year over year from 2.08% to 2.62% representing a 26% increase.
In the prior quarter. These results represent progress up nearly 900000 toward our breakeven point, which we expect will come in the next few months.
Our adjusted PPNR was a loss of $520,000 in the quarter, compared to a loss of $1.4 million in the prior quarter.
Interest income decreased by 641000 or 5% during the quarter, which was driven primarily by 600000 lower realization of PPP fee income in the quarter, coupled with the timing of loan and investment portfolio growth being later in the quarter.
These results represent progress of nearly 900,000 toward our break-even point, which we expect will come in the next few months.
Interest income decreased by $641,000, or 5% during the quarter, which was driven primarily by $600,000 lower realization of PPP fee income in the quarter, coupled with the timing of loan and investment portfolio growth being later in the quarter.
Interest expense continue to decrease from last quarter by 13% or 244000 to one 7 million. This decrease was driven primarily by continued maturing time deposits as well as slightly reduced average hlv borrowing balances in the fourth quarter contained a partial.
Interest expense continued to decrease from last quarter by 13%, or $244,000, to $1.7 million. This decrease was driven primarily by continued material use of time deposits.
The higher balances prior to the October Hlv Paydown.
as well as slightly reduced average FHLB borrowing value.
Quarter over quarter gross loans, excluding PPP increased by $64 1 million or 5%, primarily due to strong origination performance across our CRE portfolios, coupled with the continuation of the residential loan purchase program.
The fourth quarter contained a partial month of higher balances prior to the October FHLB payout.
quarter-over-quarter gross loans excluding PPP increased by 64.1 million or 5 percent, primarily due to strong origination performance across our CRE portfolios, coupled with the continuation of the residential loan purchase program.
Gross loans, including PPP increased by $65 million or four 3% currently we have $8 $1 million of PPP loans remaining on our books and $251000 of fees left to be realized.
Gross loans, including PPP, increased by $55 million, or 4.3%. Currently, we have $8.1 million of PPP loans remaining on our books, and $251,000 of fees left to be realized.
Our total pipeline was over $130 million as of March 31, with an average expected yield of three 9% our real estate portfolio has experienced strong growth in the quarter driven by originations of over $147 million.
Our total pipeline was over $130 million as of March 31st, with an average expected yield of 3.9%. Our real estate portfolios experienced strong growth in the quarter, driven by originations of over $147 million.
Our residential portfolio growth through a mixture of organic originations and the continuation of the loan purchase program that was enacted last year during.
During the quarter the bank purchased approximately 45 million of high quality residential loans originated for Fannie Mae standards and two borrowers in our principal market. This purchase program is expected to continue through the next two quarters to offset higher than average prepayment levels.
our residential portfolio grew through a mixture of organic originations and the continuation of the loan purchase program that was enacted last year.
During the quarter, the bank purchased approximately $45 million of high-quality residential loans originated to Fannie Mae standards and to borrowers in our principal market. This purchase program is expected to continue through the next two quarters to offset higher than average prepayment levels.
Our securities portfolio grew by $57 $3 million during the quarter, which was the result of utilizing excess liquidity to capture incremental yield as rates rose we plan to continue to reinvest excess liquidity into a mixture of loans in shorter duration securities over the coming quarters, we have been reinvesting.
Our securities portfolio grew by $57.3 million during the quarter, which was the result of utilizing excess liquidity to capture incremental yield as rates rose.
In securities at a yield of roughly $2 six 5% over the past quarter and as rates rise we plan to put more excess liquidity to work. Our current portfolio has a weighted average life of four seven years.
We plan to continue to reinvest excess liquidity into a mixture of loans and shorter duration securities over the coming quarters. We have been reinvesting in securities that yielded roughly 2.65% over the past quarter and as rates rise, we plan to put more excess liquidity to work. Our current portfolio has a weighted average life of 4.7 years. We view our asset quality as stable and improved.
We view, our asset quality is stable and improving.
Our nonperforming loans to total loans decreased 16 basis points from zero point, 94% to 0.78%.
Loans, 90 days or more past due decreased by $2 million or over 20% from $9 6 million at year end to $7 6 million as of the current quarter.
decreased 16 basis points from 0.94% to 0.78%.
Loans 90 days or more past due decreased by $2 million or over 20% from $9.6 million at year-end to $7.6 million as of the current quarter.
During the quarter, our allowance to total loans decreased 13 basis points from 113% to 1% as the economy continues to stabilize and improve.
During the quarter, our allowance to total loans decreased 13 basis points from 1.13% to 1% as the economy continues to stabilize.
As a reminder, we expect to adopt Stifel as of January one 2023 and are currently operating under the incurred loss model now I would like to turn it back to Jim for concluding remarks.
As a reminder, we expect to adopt CECL as of January 1st, 2023 and are currently operating under the incurred loss model. Now I'd like to turn it back to Jim for concluding remarks.
Thanks, Alex the first quarter marks significant progress positioning our balance sheet to deliver strong future results I am encouraged by the continued improvement in our core operating costs.
Thanks, Alex. The first quarter marks significant progress in positioning our balance sheet to deliver strong future results, and I am encouraged by the continued improvement in our core operating.
We recognize the work ahead of us and we believe we are well positioned to return to profitability in the coming months. We also would like to thank everyone for their time today and for their interest in Blue Battery Bank and look forward to sharing our operating results next quarter. The operator can begin the Q&A session now thank you.
We recognize the work ahead of us, and we believe we are well positioned to return to profitability in the coming months.
We also would like to thank everyone for their time today and for their interest in Blue Foundry Bank. We look forward to sharing our operating results next quarter. The operator can begin the Q&A session now. Thank you.
Thank you Jim if you would like to ask a question. Please press star followed by one on your telephone keypad now if you change your mind. Please press star followed by two when preparing to ask your question. Please ensure you will find is on muted likely and if youre listening on a speakerphone. Please pick up your handset before asking your question.
Thank you, Jim. If you would like to ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your phone is unmuted locally, and if you're listening on a speakerphone, please pick up your handset before asking your question.
Our first question comes from Laurie Hunsicker of Compass point Laurie. Your line is open. Please go ahead.
Yeah, Hi, Thanks, Good morning, Jim and Alex and Kelly Congratulations to you I was hoping that you could go back to loan growth and it looks like your your commercial real estate loan growth was very very strong what what's going on there and how are you thinking about that and is that also purchase.
Our first question comes from Laurie Hunsicker of Compass Point. Laurie, your line is open, please go ahead.
Good morning, Jim and Alex and Kelly, congratulations to you. I was hoping that you could go back to loan growth. It looks like your commercial real estate loan growth was very, very strong. What's going on there and how are you thinking about that and is that also a purchase?
So good morning, and just to clarify Kelly will be starting with us in a couple of weeks and I think you can refer back to the K that we released it gets the exact dates and times, but she is we're excited to have her joining the team shortly.
So, good morning. And just to clarify, Kelly will be starting with us in a couple of weeks, and I think you can refer back to the K that we released because of the exact dates and times, but she is, we're excited to have her joining the team shortly. On loan growth, it's been an exciting quarter. It's been a lot of
Loan growth.
Been an exciting quarter, it's been a lot of.
Cree deals coming in at good prices.
Lot of nonresidential create deals as well.
Happy to answer questions on it if you want to be more specific in the questions.
Cree deals coming in at good prices. It's a lot of non-residential Cree deals as well. But I'm happy to answer questions on it if you want to be more specific in the question.
Yeah. So I'm just looking linked quarter, you went from 142 million to $187 million up really pretty big jump, what what type of Korea are you, adding and argue we're resonating that or are you working with other banks how are you thinking about that.
Yeah, so I'm just looking, Linkorder, you went from $142 million to $187 million, that's really a pretty big jump. What type of CRE are you adding, and are you originating that, or are you working with other banks? How are you thinking about that?
So it is our originations there had not purchased some are with other banks in some of our direct from our lenders.
Got it and sorry, what was I mean, I can follow up with you, but that's very high level, what type of Korea are you adding.
So it is our originations. They are not purchased. Some are with other banks and some are direct from our lenders.
Yes.
It's a mix.
Got it. I mean, I can follow up with you, but just very high level, what type of Cree are you adding?
It's industrial you know what.
It's just the mix of industrial.
Other spaces in New Jersey.
It's a good mix is what I would tell you.
Okay. Okay.
It's just a mix of industrial and other spaces in New Jersey, it's a good mix is what I would tell you.
Yeah, and so it's so onto them onto net interest income I just wanted to verify that that the amount of P. P. P games you realized this quarter was with 265 is that.
On to net interest income, I just wanted to verify this. The amount of PPP gains you realized this quarter was $265, did I get that right?
Did I get that right.
Right around there Laurie decades to make higher right around 320000.
About 250 left to go in Q2, but I don't think all of it will be realized in Q2, I think it's going to take a few quarters for all of that.
Right around there Lori, it's actually just a nick higher right around 320,000 We have about 250 left to go in Q2
To come to fruition.
Got it okay. So stripping that out very back of the envelope you were 262 margins, though acting that.
But I don't think all of it will be realized in Q2, I think it's going to take a few quarters for all of that to come to fruition.
Your 255 core can you can you help us think a little bit as you talked about you know putting that to work purchasing more busby Marsh securities. It looks like your interest rate sensitivity as of December 31st then a 100 basis point up is that is it 3% on NII can you.
Got it. Okay, so just stripping that out, very back of the envelope, you were 262 margins, so X-ing that.
your 255 core, can you help us think a little bit as you talked about putting that to work, purchasing more Resi, more securities, it looks like your interest rate sensitivity as of December 31st and 100 basis point up is a 3% on NII. Can you just help us quantify that a little bit more? In other words, what is margin going to look like as we head into this rising rate environment you have?
Help us quantify that a little bit more in other words, what what is marching gonna look like as we head into this rising rate environment do you have any sort of data point you can give us on every 25 basis point hike Yelp acts.
Any more color you can give us around that maybe even thoughts on on your deposits.
Any sort of data point you can give us on every 25 basis point, height, yields, act.
Sure so.
Up 100 scenario out 12 months, we're seeing NII at up four or.
If there's any more color you can give us around that, maybe even thoughts on your deposit.
Four 5%.
Sure. So, in an up 100 scenario, out 12 months, we're seeing NII at up 4.45%. I think we still have some bits of cash left to deploy. Q1 was deployed for our purchases, a mix of some lower yielding investments that were shorter duration, high credit quality. As we go into Q2, those rates are obviously going to be priced a bit higher as rates have moved a lot in the last two months.
I think we still have some bits of cash left to deploy the Q1 was deployed at a mixed for our purchases.
<unk> of some lower yielding investments over shorter duration high credit quality.
We go into Q2 those rates are obviously going to be priced a bit higher as rates have moved a lot in the last two months. So I think in the short term margins will continue to expand slightly and then as we get into Q3.
Cost of funds will be challenged slightly as we will move off of where we are right now in the forty's and move up towards.
margins will continue to expand slightly and then as we get into Q3
A higher number.
Cost of funds will be challenged slightly as we will move off of where we are right now in the 40s and move up towards a higher number.
Just to clarify Laurie.
The the purchases I think you will see us slowing down on investment purchases over the next quarter.
Just to clarify, Laurie, the purchases, I think you will see us slowing down on investment purchases over the next quarter, but as far as one to four residential, high-quality residential loans, we'll probably still fill in with a few more tranches of those in the next quarter. That's where I think we will be. It just depends on what the market is doing.
But as far as one to four residential high quality residential loans will probably still fill in with a few more tranches of those in the next quarter.
Where I think we will be.
It just depends on what the market is doing.
Great Okay.
That's that's helpful. And then can you can you talk a little bit about them.
The loan loss provision line, obviously, you have very very strong loan growth you're now sitting at a <unk>.
Great, okay, that's helpful. And then, can you talk a little bit about.
1% reserves to loans are one O one extra P. P P. How.
The loan loss provision line, obviously you have very, very strong loan growth. You're now sitting at a 1% reserve to loans or 101 extra PPP.
How should we be thinking about that in terms of provision normalizing and it realized.
Cecil isn't coming until till 2023, but can you just help us think about how that looks going forward, where you have a reserve to loan target.
how should we be thinking about that in terms of provision normalizing? And I realized
Sure. So I I don't know at this time that we're willing to put out unnecessary target I think each quarter, we considered the economic factors relative to each portfolio. What I can say about the current quarter is that a lot of the reserve was related to reductions in the construction portfolio as those loans are a riskier assets and they can come with higher <unk>.
CCIL isn't coming until 2023, but can you just help us think about how that looks going forward where you have a reserves to loan target?
Sure, so I don't know at this time that we're willing to put out a necessary target. I think each quarter we consider the economic factors relative to each portfolio. What I can say about the current quarter is that a lot of the reserve was related to reductions in the construction portfolio. Those loans are riskier assets and they come with higher reserve.
<unk>.
Ratios, but our underlying credit quality across the rest of our portfolio remains strong we've not had any charge offs in the last few quarters, let alone years. So I think that's a strengthening credit quality or in our broader portfolio of mixed with some good fundamentals in collateral values and broader economic.
ratios, but our underlying credit quality across the rest of our portfolios remains strong. We've not had any charge-offs in the last few quarters, let alone years.
So I think strengthening credit quality in our broader portfolio mixed with
Fact patterns for each portfolio type.
Led us to where we are today, it's hard to say exactly where that lands in the future, but youre right in that it's hard to compare us to some of our peers because a lot of our public peers are all on the seasonal model, which we will not be on until later in.
good fundamentals in collateral values and broader economic fact patterns for you.
has led us to where we are today. It's hard to say exactly where that lands in the future, but you're right in that it's hard to compare us to some of our peers, because a lot of our public peers are all on the Cecil model, which we will not be on until later into a few quarters from now.
Into a few quarters from now.
Got it okay. Okay, and then your noninterest income obviously strong your fees and service charges.
Up nicely linked quarter.
Maybe just some color around how we should be thinking about that and also will you refresh us in terms of.
Okay. Okay. And then your non-interest income, obviously strong, your fees and service charges up nicely late quarter. Okay.
Overdraft and NSP about NSF fees are and and any plans to become a little bit more consumer friendly there.
you know, maybe just some color around how we should be thinking about that. And then also, will you refresh us in terms of...
How that would impact your fee income, how you're thinking about that.
what your overdraft and NSFCs are and any plans to become a little bit more consumer-friendly there.
Sure. So I don't think our business model is very consumer driven I think all of our products are built around low cost.
and just how that would impact your fee income and how you're thinking about that.
The models and I think that's reflected in how much.
Sure, so I don't think our business model is very consumer fee-driven. I think a lot of our products are built around low-cost fee models, and I think that's reflective in how much of those fees are currently included in our non-interest income. So on a quarterly basis, we have under $100,000. In the 10Q, we will put out an exact number for that, but it's not overly significant to the numbers that you're seeing here, and I don't think that it will be in the next quarter or two.
Of those fees are currently included in our noninterest income so quanta quarterly basis, we have under 100000.
In the 10-Q, we will put out an exact number for that but it's not overly significant to the numbers that youre seeing here and I don't think that it will be in the next quarter or two.
And just to add onto that.
Youll continue to see us become more consumer friendly I think those are your words that you're using so you will see us following along with others.
And again, to add on to that, you'll continue to see us become more consumer friendly, I think those are your words that you're using, so you will see us following along with others on items like overdraft fees.
On items like overdraft fees.
It's not a big line item is that as Alex has suggested but it will continue to improve for consumers.
Got it okay and that 100000 met annual or that's for the quarter.
It's not a big line item as Alex has suggested, but it will continue to improve for consumers.
It's under that number the exact number I will publish in the 10-Q, but that is a quarterly number.
Got it. OK. And that $100,000, that's annual or that's for the quarter?
Quarterly Okay, great. Okay, and then just last question for me can you comment a little bit on expenses.
It's under that number, the exact number I will publish in the 10Q, but that is a quarterly number.
Obviously that came down nicely there was a lot of one time items I mean compare linked quarter, but can you just refresh us on your thoughts around expenses.
quarterly. Okay, great. Okay. And then, last
Happen to have what the seasonal payroll tax wasn't in this quarter versus how it looks next and then also any any plans we should be thinking about in terms of de novo branching either for this year and next and how we should think about expenses around that.
Obviously, that came down nicely. There's a lot of one-time items when we compare link quarter. But can you just refresh us on your thoughts around expenses? If you happen to have what the seasonal payroll tax was in this quarter versus how it looks next. And then also, any plans we should be thinking about in terms of de novo branching, either for this year or next, and how we should think about expenses around that?
Sure. So I'll, let Jim speak to that Didnt de novo branching, but as far as expenses go I think next quarter, we're looking to see expenses relatively flat.
The reduction has come at the.
At the way a lot of our consulting costs rolling off the book.
But I don't see a significant continued reduction there I think it's going to be fairly stable as we look into the next quarter or two as we continue to build out our products and services and higher.
Key team members.
Okay, and what about any any de novo branching plans, we should be aware of or how are you thinking about that.
We continue to look for opportunities in the marketplace, where we think our business model fits in well.
Okay, and what about any Genova branching plans we should be aware of, or how are you thinking about that?
I just don't have anything further to give you on that but we are we are looking in the marketplace to continue to de Novo.
We continue to look for opportunities in the marketplace where we think our business model fits in well. I just don't have anything further to give you on that, but we are looking in the marketplace to continue to de novo.
Great. Thanks for taking my question.
Of course.
Thank you Laurie.
We have no further questions registered at this time, so I'll hand back to President and CEO , Jim Murphy for any closing remarks.
Thank you operator I appreciate everyone's time this morning, and we look forward to speaking to everyone again next quarter have a great day.
Thank you Laurie. We have no further questions registered at this time so I'll hand back to President and CEO Jim Nesse for any closing remarks.
This concludes the play foundry Bancorp Q1, 2022 earnings call. Thank you all for joining we hope you have a great rest of your day you may now disconnect your lines.
Thank you operator, appreciate everyone's time this morning and we look forward to speaking to everyone again next quarter. Have a great day.
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No.
This concludes the Blue Foundry Bangkok T1 2022 Earnings Call. Thank you all for joining. We hope you have a great rest of your day. You may now disconnect your line.
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