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    Justin Crowley • Piper Sandler

    Justin Crowley's questions to Blue Foundry Bancorp (BLFY) leadership

    Justin Crowley's questions to Blue Foundry Bancorp (BLFY) leadership • Q2 2025

    Question

    Justin Crowley of Piper Sandler Companies inquired about the outlook for BlueFoundry's net interest margin (NIM), asking for specifics on loan repricing volumes and rates for the remainder of 2025 and into 2026. He also questioned the potential for further reductions in CD costs, the overall trajectory for NIM expansion, the strategy for consumer loan purchases, and other potential levers to accelerate the company's return to profitability.

    Answer

    EVP & CFO Kelly Pecoraro detailed the loan repricing schedule, noting approximately $23 million will reprice in H2 2025, with a more substantial $75 million set to reprice in 2026. She confirmed that NIM expansion would be limited in H2 2025. Regarding consumer loans, she stated the bank is comfortable growing the portfolio to 7-8% of total loans and that they come with a 3% credit reserve. President & CEO James Nesci added that CD pricing is subject to market competition and that the company is constantly exploring expense efficiencies, including through technology, to improve profitability.

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    Justin Crowley's questions to Blue Foundry Bancorp (BLFY) leadership • Q1 2025

    Question

    Justin Crowley inquired about the net interest margin (NIM) on a spot basis for March, the key drivers for future margin expansion including loan repricing yields, and the potential to lower certificate of deposit (CD) rates. He also asked for details on the purchased consumer loans, including the product type, yield, credit enhancement structure, and the company's strategy for future purchases.

    Answer

    CFO Kelly Pecoraro projected further NIM expansion of 5 to 10 basis points in Q2, noting that significant loan repricing benefits are expected in 2026-2027 rather than 2025. She detailed that $335 million in CDs at a 4.11% cost are maturing next quarter, providing an opportunity to lower costs. Pecoraro described the purchased consumer loans as professional loans yielding around 7% with credit reserves, serving to augment organic growth. CEO James Nesci added that these purchases are a transitional strategy to boost yields and will not continue indefinitely.

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    Justin Crowley's questions to Blue Foundry Bancorp (BLFY) leadership • Q4 2024

    Question

    Justin Crowley inquired about the commercial loan pipeline, deposit cost trends, and the outlook for asset yields heading into the new year.

    Answer

    CFO Kelly Pecoraro confirmed the loan pipeline has improved, highlighting $60 million in letters of intent at a yield around 7.7%. She noted that while deposit costs improved to 2.90%, there are about $500 million in CDs repricing in the first half of the year, with Q1 maturities coming off a ~4.75% rate and resetting to a current promotional rate of 4%. Pecoraro also expects overall loan yields to trend higher, though the construction loan portfolio could be a headwind if the prime rate declines.

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    Justin Crowley's questions to Blue Foundry Bancorp (BLFY) leadership • Q3 2024

    Question

    Justin Crowley inquired about the drivers behind the quarterly Net Interest Margin (NIM) compression, the strategy for lowering deposit rates, the nature of recent consumer loan pool purchases, and the potential for increased share buybacks.

    Answer

    CFO Kelly Pecoraro explained that NIM was impacted by the timing of commercial loan funding and earlier repricing of high-rate CDs. She noted the company has since lowered its promotional CD rate and aims to shift customers to core products. Pecoraro described the consumer loan purchase as a credit-enhanced opportunity with attractive rates and confirmed they are open to similar deals. Regarding buybacks, she stated the company is already repurchasing the maximum volume allowed under SEC rules.

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    Justin Crowley's questions to Eagle Bancorp Inc (EGBN) leadership

    Justin Crowley's questions to Eagle Bancorp Inc (EGBN) leadership • Q2 2025

    Question

    Justin Crowley of Piper Sandler Companies inquired about the timeline for provisioning against office loan losses, the pricing on asset sales, and the net interest margin's sensitivity to potential Federal Reserve rate cuts.

    Answer

    EVP Kevin Geoghegan stated that while he wouldn't specify an 'inning,' he expects Q3 net charge-offs to be similar to Q2 but with less impact on the income statement due to the reserve build. Senior EVP & CFO Eric Newell added that cycle-to-date office charge-offs total $113 million, with $109.5 million in remaining reserves. He noted the weighted average discount on asset sales is approximately 40% off the original loan balance. Regarding the margin, Newell explained that the bank's interest rate risk position is neutral, and they do not anticipate material changes from Fed rate movements. Senior EVP & Chief Real Estate Lending Officer Ryan Riel also mentioned that over half of the 2026 office loan maturities are already being addressed in the current quarter's results.

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    Justin Crowley's questions to Eagle Bancorp Inc (EGBN) leadership • Q1 2025

    Question

    Justin Crowley inquired about the drivers behind the reserve build for the office loan portfolio, the transparency of valuation trends, and the risk assessment for 2026 maturities. He also asked about credit risks outside of office, specifically in government contracting, and the key assumptions supporting the forecast for net interest margin (NIM) expansion, including its sensitivity to potential Federal Reserve rate cuts.

    Answer

    CFO Eric Newell explained the reserve build was driven by an annual reassessment of default probabilities based on appraisal experience, increasing the performing office loan coverage to 5.78%. He noted the NIM expansion is based on a new pricing structure for a payment processing relationship, redeployment of investment portfolio cash flows, and C&I-driven deposit growth, adding the forecast is neutral to Fed rate changes. Chief Lending Officer for Commercial Real Estate, Ryan Riel, added that office market valuations have stabilized at a low point. Chief Credit Officer Kevin Geoghegan stated the government contracting portfolio is modest and closely monitored.

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    Justin Crowley's questions to Eagle Bancorp Inc (EGBN) leadership • Q4 2024

    Question

    Justin Crowley inquired about the recently downgraded office loan, asking if the appraisal volatility on a Class A suburban property changes the risk outlook for the broader portfolio. He also asked for more detail on the improving fundamentals of the nonaccrual loan, the bank's exposure to potential federal government office space sales, and opportunities arising from a competitor's merger.

    Answer

    Executive Janice Williams explained that while suburban office properties are more insulated than those in the Central Business District, appraisal volatility remains a factor, noting she was surprised by an 11% discount rate on a Class A suburban property. She expressed cautious optimism, citing improving leasing activity, reduced tenant improvement allowances, and a stabilized value projection of $110 million by 2027 for the property. Williams also stated that the bank has very little exposure to GSA-leased properties and sees potential for increased private sector leasing. CEO Susan Riel and CFO Eric Newell confirmed they view a competitor's merger as a positive opportunity, having mobilized a team to target shared customers and attract new business and talent.

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    Justin Crowley's questions to Eagle Bancorp Inc (EGBN) leadership • Q3 2024

    Question

    Justin Crowley from Piper Sandler asked for more detail on the increase in nonperforming loans, particularly in the assisted living portfolio. He also inquired about the outlook for the office portfolio regarding appraisals and occupancy rates, and sought guidance on the allowance for credit losses and charge-off expectations for 2025.

    Answer

    Retiring Chief Credit Officer Jan Williams provided a detailed breakdown of the nonperforming loans, attributing the increase to specific properties, including an assisted living facility facing stabilization issues. She noted continued volatility in office appraisals but stable occupancy in the suburban market. CFO Eric Newell provided a 2025 charge-off forecast of 25 to 50 basis points on average loans, adding that future reserve builds would likely be driven by specific loans rather than broad qualitative adjustments.

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    Justin Crowley's questions to Civista Bancshares Inc (CIVB) leadership

    Justin Crowley's questions to Civista Bancshares Inc (CIVB) leadership • Q1 2025

    Question

    Justin Crowley of Piper Sandler & Co. inquired about Civista's potential for further funding cost reduction and the sustainability of net interest margin (NIM) expansion. He also sought clarity on the normalization of operating expenses and the full-year cost outlook, considering planned technology investments.

    Answer

    CEO Dennis Shaffer and CFO Ian Whinnem confirmed continued opportunity for margin expansion, projecting 4-5 bps in Q2 and 2-3 bps in Q3, even with two Fed rate cuts factored in. They noted $110 million in loans will reprice higher in the next two quarters. Regarding expenses, Ian Whinnem and COO Rich Dutton explained that while some Q4 professional fees normalized, Q2 would remain flat due to merit increases, followed by investments in digital banking in the second half. They affirmed that keeping full-year 2025 expenses flat compared to 2024 is realistic, with H2 quarterly expenses expected to be below $28 million.

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    Justin Crowley's questions to Civista Bancshares Inc (CIVB) leadership • Q4 2024

    Question

    Justin Crowley asked for details on the net interest margin, including the original yields on $180 million of fixed-rate loans set to reprice. He also questioned the strategy for lowering deposit costs beyond CD repricing and sought guidance on the expense run rate for 2025.

    Answer

    CEO Dennis Shaffer and EVP Richard Dutton estimated the repricing loans carried yields in the 'high 4s to low 5s' and would likely reprice into the 'low 7s'. Shaffer explained that while the bank is proactively managing rates, overall deposit costs might rise slightly due to volume growth, but total funding costs should decline. CFO Ian Whinnem projected Q1 expenses to be around $28.8 million, expecting them to remain stable, excluding potential new investments for digital deposit initiatives.

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    Justin Crowley's questions to Civista Bancshares Inc (CIVB) leadership • Q3 2024

    Question

    Justin Crowley inquired about the outlook for Civista's net interest margin (NIM), plans for paying down borrowings, the effectiveness of deposit gathering initiatives, the potential for further deposit rate cuts, capital management strategies concerning the TCE ratio, and the overall credit outlook.

    Answer

    SVP and CFO Ian Whinnem stated that the company will use new relationship deposits to reduce overnight borrowings and reprice brokered CDs. President and CEO Dennis Shaffer added that they have already lowered CD rates by 70 basis points this year and anticipate a further 5 basis point NIM lift in Q4. Shaffer also affirmed their ability to be aggressive in lowering deposit rates due to their relationship banking model. Regarding capital, Shaffer and SVP & COO Rich Dutton emphasized their focus on rebuilding the TCE ratio to their 7-7.5% target before resuming share repurchases. On credit, Shaffer and Chief Credit Officer Mike Mulford confirmed the allowance is healthy, with the recent increase driven by slower loan prepayments rather than credit deterioration.

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