Blue Foundry Bancorp Reports Second Quarter 2025 Results

Rhea-AI Summary

Blue Foundry Bancorp (NASDAQ:BLFY) reported Q2 2025 results with a net loss of $2.0 million, or $0.10 per diluted share, showing improvement from Q1 2025's loss of $2.7 million. The quarter saw positive developments in key metrics, with loans increasing by $47.4 million to $1.67 billion and deposits growing by $29.1 million to $1.42 billion.

Notable improvements include a 12 basis point increase in net interest margin to 2.28%, interest income growth of 3.2% to $23.4 million, and a 1.4% decrease in interest expense. The company continued its share repurchase program, buying back 406,391 shares at an average price of $9.42 per share, and launched its sixth repurchase program for up to 1,082,533 shares.

The bank maintained strong asset quality with an allowance for credit losses ratio of 0.80% and non-performing loans at 0.38% of total loans. Core deposits represented 48.4% of total deposits, with uninsured deposits at 12% of total deposits.

Positive

• Net interest margin expanded by 12 basis points to 2.28%
• Loans increased $47.4 million to $1.67 billion
• Core deposits grew by $25.2 million quarter-over-quarter
• Interest income increased by $725 thousand (3.2%) while interest expense decreased by $171 thousand
• Strong asset quality maintained with 0.80% allowance for credit losses ratio

Negative

• Reported net loss of $2.0 million ($0.10 per share)
• Full valuation allowance required on deferred tax assets of $25.6 million
• Non-performing loans increased to 0.38% from 0.33% in December 2024
• Shareholders' equity decreased by $10.9 million from December 2024
• Higher reliance on brokered deposits, which increased by $70.0 million in first half of 2025

Insights

Banking Financial Analyst

Blue Foundry shows modest improvement with expanding margins despite continuing losses; loan growth and deposit diversification offer positive signals amid challenges.

Blue Foundry Bancorp reported a net loss of $2.0 million ($0.10 per share) for Q2 2025, showing slight improvement from the $2.7 million loss in Q1 2025 and the $2.3 million loss in Q2 2024. While still operating at a loss, there are several encouraging signals in this quarter's results.

The bank's net interest margin expanded 12 basis points to 2.28% quarter-over-quarter, driven by both higher asset yields and lower liability costs. This improvement indicates the bank's strategy shift is beginning to gain traction. Interest income increased by $725,000 (3.2%) while interest expense decreased by $171,000 (1.4%), resulting in net interest income of $11.6 million compared to $10.7 million in Q1.

Loan growth was robust with a $47.4 million increase to $1.67 billion. The portfolio diversification strategy is evident in the $76.5 million increase in consumer loans during H1 2025, while commercial real estate grew by $33.5 million. This shift toward higher-yielding assets appears to be helping margin improvement.

Deposit growth was also solid, increasing by $29.1 million to $1.42 billion, with core deposits up $25.2 million. However, the bank increased its reliance on brokered deposits, which rose to $225 million from $155 million at year-end 2024. This funding strategy helps lower costs but represents less stable funding than core customer deposits.

Asset quality remains stable with non-performing loans at 0.38% of total loans (slightly up from 0.33% at year-end). The allowance for credit losses stands at 0.80% of gross loans, providing a coverage ratio of 211.81% of non-performing loans.

Notably, the bank maintains a full valuation allowance on its $25.6 million deferred tax assets, indicating uncertainty about future profitability. The continued share repurchases ($8.5 million year-to-date) at below book value ($14.88) could be accretive to remaining shareholders but reduces capital that could otherwise support growth.

The capital position remains strong with tangible equity to tangible assets at 15.10%, providing ample buffer for the current operating challenges and continued growth initiatives.

RUTHERFORD, N.J., July 30, 2025 (GLOBE NEWSWIRE) -- Blue Foundry Bancorp (NASDAQ:BLFY) (the “Company”), the holding company for Blue Foundry Bank (the “Bank”), today reported a net loss of $2.0 million, or $0.10 per diluted common share, for the three months ended June 30, 2025, compared to net loss of $2.7 million, or $0.13 per diluted common share, for the three months ended March 31, 2025, and a net loss of $2.3 million, or $0.11 per diluted common share, for the three months ended June 30, 2024.

James D. Nesci, President and Chief Executive Officer, commented, “We are encouraged by the continued improvement experienced this quarter, highlighted by net interest margin expansion, stable expenses, and continued strong credit metrics.”

Mr. Nesci further noted, “The net interest margin expanded due to improvements in both asset yields and the cost of liabilities. We continue to execute on our strategy of diversifying our loan portfolio, emphasizing asset classes that provide higher yields and better risk-adjusted returns. Additionally, our focus on attracting the full banking relationship has contributed to core deposit growth, especially among commercial customers. We believe these efforts will position us well for continued balance sheet and interest income growth.”

Highlights for the second quarter of 2025:

• Loans increased $47.4 million to $1.67 billion.
• Deposits increased $29.1 million to $1.42 billion compared to the linked quarter. Core deposits increased by $25.2 million compared to the linked quarter.
• Net interest margin increased 12 basis points to 2.28% compared to the linked quarter .
• Interest income for the quarter was $23.4 million, an increase of $725 thousand, or 3.2%, compared to the linked quarter.
• Interest expense for the quarter was $11.8 million, a decrease of $171 thousand, or 1.4%, compared to the linked quarter.
• Provision for credit losses of $463 thousand was primarily due to the increase in the provision for off-balance-sheet commitments.
• Book value per share was $14.88 and tangible book value per share was $14.87. See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
• 406,391 shares were repurchased under our share repurchase plans at a weighted average share price of $9.42 per share.
• On June 20, 2025, the Company commenced its sixth stock repurchase program for up to 1,082,533 shares of its common stock, approximately 5% of the outstanding common stock.
  
  

Loans

Loans increased by $89.6 million during the first six months of 2025. The Company continues to focus on diversifying its lending portfolio by growing its commercial portfolios. Additionally, during the first six months of 2025, we purchased unsecured consumer loans with credit reserves, which is cash collateral held at the Bank in excess of the expected losses. These loans have helped improve yields while having lower exposure to credit loss. During the first six months of 2025, the consumer loan portfolio increased by $76.5 million as a result of these purchases. In addition, the commercial real estate portfolio increased by $33.5 million, of which $20.8 million was owner-occupied properties and the construction portfolio increased by $11.7 million. The multifamily portfolio decreased by $37.3 million.

The details of the loan portfolio are below:

		June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
		(In thousands)
Residential		$	519,370			$	512,793			$	518,243			$	516,754			$	526,453
Multifamily			633,849				645,399				671,116				666,304				671,185
Commercial real estate			293,179				288,151				259,633				241,711				241,867
Construction			97,207				92,813				85,546				80,081				71,882
Junior liens			27,996				26,902				25,422				24,174				23,653
Commercial and industrial			17,729				18,079				16,311				14,228				12,261
Consumer and other			83,706				41,518				7,211				7,731				83
Total loans			1,673,036				1,625,655				1,583,482				1,550,983				1,547,384
Less: Allowance for credit losses			13,304				13,152				12,965				13,012				13,027
Loans receivable, net		$	1,659,732			$	1,612,503			$	1,570,517			$	1,537,971			$	1,534,357

Deposits

Deposits totaled $1.42 billion as of June 30, 2025, an increase of $73.0 million, or 5.43%, from December 31, 2024, driven by increases of $61.9 million and $23.4 million in NOW and demand accounts and time deposits, respectively, partially offset by a decrease in savings accounts of $11.5 million. The Company’s strategy is to focus on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products. While there is strong competition for deposits in the northern New Jersey market, we were able to increase core customer deposits by $49.6 million during the six months ended June 30, 2025. In addition, commercial deposits increased $25.5 million during year-to-date period. Brokered deposits increased $70.0 million during the first half of 2025 as higher cost customer time deposits matured and were supplemented with brokered deposits. Uninsured deposits to third-party customers totaled approximately 12% of total deposits as of June 30, 2025.

The details of deposits are below:

		June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
		(In thousands)
Non-interest bearing deposits		$	25,161			$	25,222			$	26,001			$	22,254			$	24,733
NOW and demand accounts			431,485				398,332				369,554				357,503				368,386
Savings			228,897				236,779				240,426				237,651				246,559
Core deposits			685,543				660,333				635,981				617,408				639,678
Time deposits			730,778				726,908				707,339				701,262				671,478
Total deposits		$	1,416,321			$	1,387,241			$	1,343,320			$	1,318,670			$	1,311,156

Financial Performance Overview:

Second quarter of 2025 compared to the first quarter of 2025

Net interest income compared to the first quarter of 2025:

• Net interest income was $11.6 million for the second quarter of 2025 compared to $10.7 million for the first quarter of 2025 as interest earned on interest-earning assets increased $725 thousand and interest paid on interest-bearing liabilities decreased $171 thousand.
• Net interest margin increased by 12 basis points to 2.28%.
• The yield on average interest-earning assets increased seven basis points to 4.58%, while the cost of average interest-bearing liabilities decreased 13 basis points to 2.76%.
• Average interest-earning assets increased by $30.3 million and average interest-bearing liabilities increased by $36.6 million.
  
  

Non-interest expense compared to the first quarter of 2025:

• Non-interest expense decreased $90 thousand primarily driven by a decrease of $94 thousand in occupancy and equipment, largely due to seasonal expenses in the first quarter that were not present in the second quarter. Advertising expense increased by $73 thousand due to increased marketing efforts, which were offset by slight decreases in other categories.
  
  

Income tax expense compared to the first quarter of 2025:

• The Company did not record a tax benefit for the losses incurred during the second quarter of 2025 and the first quarter of 2025 due to the full valuation allowance required on its deferred tax assets.
• The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At June 30, 2025, the valuation allowance on deferred tax assets was $25.6 million.
  
  

Second quarter of 2025 compared to the second quarter of 2024

Net interest income compared to the second quarter of 2024:

• Net interest income was $11.6 million for the second quarter of 2025 compared to $9.6 million for the same period in 2024. The increase was largely due to increases in interest earned on loans and lower interest costs on time deposits.
• Net interest margin increased by 32 basis points to 2.28%.
• The yield on average interest-earning assets increased 21 basis points to 4.58% and the cost of average interest-bearing liabilities decreased by 18 basis points.
• Average interest-earning assets and average interest-bearing liabilities increased by $83.9 million and $111.6 million, respectively. Average loans drove the growth in interest-earning assets, with an increase of $97.0 million. Average interest-bearing deposits increased by $105.4 million.
  
  

Non-interest expense compared to the second quarter of 2024:

• Non-interest expense was $13.5 million and $13.2 million for the second quarter of 2025 and 2024, respectively, an increase of $324 thousand. Compensation and benefits expense increased by $185 thousand primarily due to increases in variable compensation accruals. Data processing and advertising expenses increased by $133 thousand and $88 thousand, respectively. As noted above, the Company increased its marketing efforts in the second quarter of 2025.
  
  

Income tax expense compared to the second quarter of 2024:

• The Company did not record a tax benefit for the losses incurred during the second quarters of 2025 and 2024 due to the full valuation allowance required on its deferred tax assets.
• The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At June 30, 2025, the valuation allowance on deferred tax assets was $25.6 million.
  
  

Six Months Ended June 30, 2025 compared to the six months ended June 30, 2024

Net interest income compared to the six months ended June 30, 2024:

• Net interest income was $22.4 million, an increase of $3.4 million.
• Net interest margin increased 28 basis points to 2.22%.
• The yield on average interest-earning assets increased 25 basis points to 4.55% while the cost of average interest-bearing liabilities decreased seven basis points to 2.82%.
• Average loans increased by $71.5 million and average interest-bearing deposits increased by $101.1 million.
• Average borrowings decreased by $10.2 million.
  
  

Non-interest income compared to the six months ended June 30, 2024:

• Non-interest income decreased $188 thousand primarily due to the gains on the sale of loans and REO property that occurred during the first half of 2024.
  
  

Non-interest expense compared to the six months ended June 30, 2024:

• Non-interest expense was $27.2 million, an increase of $711 thousand.
• Compensation and benefits expense increased by $474 thousand and data processing expense increased $233 thousand. Additionally, advertising, FDIC insurance and occupancy and equipment expenses increased by $83 thousand, $61 thousand and $58 thousand, respectively.
  
  

Income tax expense compared to the six months ended June 30, 2024:

• The Company did not record a tax benefit for the losses incurred during the six months ended June 30, 2025 and 2024 due to the full valuation allowance required on its deferred tax assets.
• The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At June 30, 2025, the valuation allowance on deferred tax assets was $25.6 million.
  
  

Balance Sheet Summary:

June 30, 2025 compared to December 31, 2024

Cash and cash equivalents:

• Cash and cash equivalents decreased $625 thousand to $41.9 million.
  
  

Securities available-for-sale:

• Securities available-for-sale decreased $12.8 million to $284.2 million due to maturities, calls and pay downs, partially offset by purchases and a decrease in unrealized losses of $5.8 million.
  
  

Securities held-to-maturity

• Securities held-to-maturity decreased $4.0 million due to calls and pay downs in the portfolio.
  
  

Total loans:

• Total loans held for investment increased $89.6 million to $1.67 billion.
• Consumer, commercial real estate and construction loans increased $76.5 million, $33.5 million, and $11.7 million, respectively. Partially offsetting these increases was a decrease in multifamily loans of $37.3 million.
• During the six months ended June 30, 2025, the Company purchased consumer and residential loans totaling $80.4 million and $25.5 million, respectively.
  
  

Deposits:

• Deposits increased $73.0 million from $1.34 billion at December 31, 2024 to $1.42 billion at June 30, 2025. This was largely the result of a $61.9 million increase in NOW and demand accounts and a $23.4 million increase in certificates of deposits, partially offset by a decrease of $11.5 million in savings accounts.
• Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) increased $49.6 million and represented 48.4% of total deposits at June 30, 2025, compared to 47.3% at December 31, 2024.
• Brokered deposits totaled $225.0 million and $155.0 million at June 30, 2025 and December 31, 2024, respectively. The increase in brokered deposits offset the reduction in retail time deposits and helped fund loan growth.
• Uninsured and uncollateralized deposits to third-party customers were $168.6 million, or 12% of total deposits, at the end of the second quarter.
  
  

Borrowings:

• FHLB borrowings increased $3.5 million to $343.0 million.
• As of June 30, 2025, the Company had $256.1 million of additional borrowing capacity at the FHLB, $110.3 million in secured lines at the Federal Reserve Bank and $30.0 million of other unsecured lines of credit.
  
  

Capital:

• Shareholders’ equity was $321.3 million at June 30, 2025, a decrease of $10.9 million from December 31, 2024. The decrease was primarily driven by the repurchase of shares, including shares netted for income tax withholding on vested equity awards, at a cost of $8.5 million. Additionally, the year-to-date loss, partially offset by favorable changes in accumulated other comprehensive income, contributed to the decrease in shareholders’ equity.
• Tangible equity to tangible assets was 15.10% and tangible common equity per share outstanding was $14.87. See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
• The Bank’s capital ratios remain above the FDIC’s “well capitalized” standards.
  
  

Asset quality:

• The allowance for credit losses (“ACL”) on loans as a percentage of gross loans was 0.80% as of June 30, 2025.
• The Company recorded a provision for credit losses of $463 thousand for the second quarter of 2025. The provision was primarily driven by the increase in loan commitments and the shift in the composition of the loan portfolio. The provision for the ACL on off-balance-sheet commitments was $323 thousand and the net provision for the ACL for loans was $147 thousand, while there was a release of $7 thousand in the ACL for held-to-maturity securities. The provision for credit losses for the six months ended June 30, 2025 was $664 thousand. The provision in the ACL for loans totaled $350 thousand and for off-balance-sheet commitments totaled $322 thousand, while there was a release of $8 thousand in the ACL for held-to-maturity securities.
• Non-performing loans totaled $6.3 million, or 0.38% of total loans compared to $5.1 million, or 0.33% of total loans at December 31, 2024.
• Net recoveries for the three months ended June 30, 2025 were $5 thousand and net charge-offs were $11 thousand for the six months ended June 30, 2025.
• The ratio of allowance for credit losses on loans to non-performing loans was 211.81% at June 30, 2025 compared to 254.02% at December 31, 2024.
  
  

About Blue Foundry

Blue Foundry Bancorp is the holding company for Blue Foundry Bank, a place where things are made, purpose is formed, and ideas are crafted. Headquartered in Rutherford NJ, with a presence in Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Somerset and Union counties, Blue Foundry Bank is a full-service, innovative bank serving the doers, movers, and shakers in our communities. We offer individuals and businesses alike the tailored products and services they need to build their futures. With a rich history dating back more than 145 years, Blue Foundry Bank has a longstanding commitment to its customers and communities. To learn more about Blue Foundry Bank visit BlueFoundryBank.com or call (888) 931-BLUE. Member FDIC.

Conference Call Information

A conference call covering Blue Foundry’s second quarter 2025 earnings announcement will be held today, Wednesday, July 30, 2025 at 11:00 a.m. (EDT). To listen to the live call, please dial 1-833-470-1428 (toll free) or +1-404-975-4839 (international) and use access code 243510. The webcast (audio only) will be available on ir.bluefoundrybank.com. The conference call will be recorded and will be available on the Company’s website for one month.

Contact:
James D. Nesci
President and Chief Executive Officer
BlueFoundryBank.com
jnesci@bluefoundrybank.com
201-972-8900

Forward Looking Statements

Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions.

Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase in the level of defaults, losses and prepayments on loans we have made and make; general economic conditions, either nationally or in our market areas, that are worse than expected, including potential recessionary conditions, the imposition of tariffs or other domestic or international governmental policies and potential retaliatory responses; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in our market area; our ability to implement and change our business strategies; competition among depository and other financial institutions; adverse changes in the securities or secondary mortgage markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums; changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; changes in the quality or composition of our loan or investment portfolios; technological changes that may be more difficult or expensive than expected; a failure or breach of our operational or security systems or infrastructure, including cyber-attacks; the inability of third party providers to perform as expected; our ability to manage market risk, credit risk and operational risk in the current economic environment; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; our ability to retain key employees; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the ability of the U.S. Government to manage federal debt limits; and changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Statements of Financial Condition
		June 30, 2025				March 31, 2025				December 31, 2024				June 30, 2024
		(unaudited)				(unaudited)				(audited)				(unaudited)
		(Dollars in thousands)
ASSETS
Cash and cash equivalents		$	41,877			$	46,220			$	42,502			$	60,262
Securities available-for-sale, at fair value			284,239				286,620				297,028				297,790
Securities held to maturity			29,062				32,038				33,076				33,169
Other investments			18,112				17,605				17,791				17,942
Loans, net			1,659,732				1,612,503				1,570,517				1,534,357
Interest and dividends receivable			8,817				8,746				8,014				7,882
Premises and equipment, net			28,187				28,805				29,486				30,858
Right-of-use assets			22,101				22,778				23,470				24,596
Bank owned life insurance			22,761				22,638				22,519				22,274
Other assets			12,616				14,253				16,280				16,322
Total assets		$	2,127,504			$	2,092,206			$	2,060,683			$	2,045,452
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits		$	1,416,321			$	1,387,241			$	1,343,320			$	1,311,156
Advances from the Federal Home Loan Bank			343,000				334,000				339,500				342,500
Advances by borrowers for taxes and insurance			10,079				9,743				9,356				9,875
Lease liabilities			23,820				24,490				25,168				26,243
Other liabilities			12,984				10,069				11,141				10,081
Total liabilities			1,806,204				1,765,543				1,728,485				1,699,855
Shareholders’ equity			321,300				326,663				332,198				345,597
Total liabilities and shareholders’ equity		$	2,127,504			$	2,092,206			$	2,060,683			$	2,045,452

BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Statements of Operations (Dollars in Thousands Except Per Share Data) (Unaudited)
		Three months ended												Six months ended
		June 30, 2025				March 31, 2025				June 30, 2024				June 30, 2025				June 30, 2024
		(Dollars in thousands)
Interest income:
Loans		$	19,763			$	18,892			$	17,570			$	38,655			$	34,762
Taxable investment income			3,639				3,785				3,686				7,424				7,300
Non-taxable investment income			36				36				36				72				72
Total interest income			23,438				22,713				21,292				46,151				42,134
Interest expense:
Deposits			8,968				9,026				9,132				17,994				17,545
Borrowed funds			2,830				2,943				2,587				5,773				5,599
Total interest expense			11,798				11,969				11,719				23,767				23,144
Net interest income			11,640				10,744				9,573				22,384				18,990
Provision for (release of) credit losses			463				201				(762	)			664				(1,297	)
Net interest income after provision for (release of) credit losses			11,177				10,543				10,335				21,720				20,287
Non-interest income:
Fees and service charges			289				243				296				532				625
Gain on sale of loans			—				—				—				—				36
Other income			116				151				240				267				326
Total non-interest income			405				394				536				799				987
Non-interest expense:
Compensation and employee benefits			7,820				7,838				7,635				15,658				15,184
Occupancy and equipment			2,209				2,303				2,262				4,512				4,454
Data processing			1,468				1,487				1,335				2,955				2,722
Advertising			140				67				52				207				124
Professional services			686				699				623				1,385				1,353
Federal deposit insurance			231				223				194				454				393
Other			985				1,012				1,114				1,997				2,227
Total non-interest expense			13,539				13,629				13,215				27,168				26,457
Loss before income tax expense			(1,957	)			(2,692	)			(2,344	)			(4,649	)			(5,183	)
Income tax expense			—				—				—				—				—
Net loss		$	(1,957	)		$	(2,692	)		$	(2,344	)		$	(4,649	)		$	(5,183	)
Basic loss per share		$	(0.10	)		$	(0.13	)		$	(0.11	)		$	(0.23	)		$	(0.24	)
Diluted loss per share		$	(0.10	)		$	(0.13	)		$	(0.11	)		$	(0.23	)		$	(0.24	)
Weighted average shares outstanding
Basic			19,843,710				20,404,941				21,735,002				20,122,623				21,914,811
Diluted (1)			19,843,710				20,404,941				21,735,002				20,122,623				21,914,811
(1) The assumed vesting of outstanding restricted stock units had an anti-dilutive effect on diluted earnings per share due to the Company’s net loss for the 2025 and 2024 periods.

BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Financial Highlights (Dollars in Thousands Except Per Share Data) (Unaudited)
		Three months ended
		June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
		(Dollars in thousands)
Performance Ratios (%):
Loss on average assets			(0.37	)			(0.53	)			(0.52	)			(0.79	)			(0.47	)
Loss on average equity			(2.42	)			(3.29	)			(3.17	)			(4.68	)			(2.71	)
Interest rate spread (1)			1.82				1.62				1.40				1.29				1.43
Net interest margin (2)			2.28				2.16				1.89				1.82				1.96
Efficiency ratio (3) (4)			112.40				122.36				130.20				140.04				130.73
Average interest-earning assets to average interest-bearing liabilities			119.22				120.01				120.84				121.37				122.28
Tangible equity to tangible assets (4)			15.10				15.61				16.11				16.50				16.88
Book value per share (5)		$	14.88			$	14.82			$	14.75			$	14.76			$	14.70
Tangible book value per share (4) (5)		$	14.87			$	14.81			$	14.74			$	14.74			$	14.69
Asset Quality:
Non-performing loans		$	6,281			$	5,723			$	5,104			$	5,146			$	6,208
Real estate owned, net			—				—				—				—				—
Non-performing assets		$	6,281			$	5,723			$	5,104			$	5,146			$	6,208
Allowance for credit losses to total loans (%)			0.80				0.81				0.83				0.84				0.84
Allowance for credit losses to non-performing loans (%)			211.81				229.81				254.02				252.86				209.84
Non-performing loans to total loans (%)			0.38				0.35				0.33				0.33				0.40
Non-performing assets to total assets (%)			0.30				0.27				0.25				0.25				0.30
Net charge-offs to average outstanding loans during the period (%)			—				—				—				—				—
(1) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. (2) Net interest margin represents net interest income divided by average interest-earning assets. (3) Efficiency ratio represents adjusted non-interest expense divided by the sum of net interest income plus non-interest income. (4) See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures. (5) June 30, 2025 per share metrics computed using 21,591,757 total shares outstanding.

BLUE FOUNDRY BANCORP AND SUBSIDIARY Analysis of Net Interest Income (Dollars in Thousands) (Unaudited)
		Three Months Ended,
		June 30, 2025									March 31, 2025									June 30, 2024
		Average Balance			Interest			Average Yield/Cost			Average Balance			Interest			Average Yield/Cost			Average Balance			Interest			Average Yield/Cost
		(Dollars in thousands)
Assets:
Loans (1)		$	1,647,763		$	19,763		4.80	%		$	1,601,262		$	18,892		4.72	%		$	1,550,736		$	17,570		4.56	%
Mortgage-backed securities			184,572			1,274		2.76	%			189,820			1,323		2.79	%			167,219			960		2.31	%
Other investment securities			153,985			1,638		4.26	%			163,590			1,689		4.13	%			175,394			1,688		3.87	%
FHLB stock			17,490			349		7.98	%			17,680			399		9.02	%			17,223			447		10.44	%
Cash and cash equivalents			41,998			414		3.95	%			43,195			410		3.80	%			51,290			627		4.92	%
Total interest-earning assets			2,045,808			23,438		4.58	%			2,015,547			22,713		4.51	%			1,961,862			21,292		4.37	%
Non-interest earning assets			61,060									61,518									56,826
Total assets		$	2,106,868								$	2,077,065								$	2,018,688
Liabilities and shareholders' equity:
NOW, savings, and money market deposits		$	642,063			2,244		1.40	%		$	619,234			2,031		1.33	%		$	611,931			1,955		1.28	%
Time deposits			731,003			6,724		3.69	%			712,796			6,995		3.98	%			655,755			7,177		4.40	%
Interest-bearing deposits			1,373,066			8,968		2.62	%			1,332,030			9,026		2.75	%			1,267,686			9,132		2.90	%
FHLB advances			342,945			2,830		3.30	%			347,394			2,943		3.39	%			336,742			2,587		3.09	%
Total interest-bearing liabilities			1,716,011			11,798		2.76	%			1,679,424			11,969		2.89	%			1,604,428			11,719		2.94	%
Non-interest bearing deposits			24,885									25,411									25,076
Non-interest bearing other			41,824									40,679									41,061
Total liabilities			1,782,720									1,745,514									1,670,565
Total shareholders' equity			324,148									331,551									348,123
Total liabilities and shareholders' equity		$	2,106,868								$	2,077,065								$	2,018,688
Net interest income					$	11,640								$	10,744								$	9,573
Net interest rate spread (2)								1.82	%								1.62	%								1.43	%
Net interest margin (3)								2.28	%								2.16	%								1.96	%
(1) Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans. (2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average interest-earning assets.

BLUE FOUNDRY BANCORP AND SUBSIDIARY Analysis of Net Interest Income (Dollars in Thousands) (Unaudited)
		Six Months Ended June 30,
			2025											2024
		Average Balance				Interest				Average Yield/Cost			Average Balance				Interest				Average Yield/Cost
		(Dollars in thousands)
Assets:
Loans (1)		$	1,624,641			$	38,655			4.76	%		$	1,553,135			$	34,762			4.49	%
Mortgage-backed securities			187,182				2,597			2.78	%			163,784				1,836			2.25	%
Other investment securities			158,761				3,327			4.19	%			179,555				3,340			3.73	%
FHLB stock			17,584				748			8.50	%			18,673				939			10.08	%
Cash and cash equivalents			42,593				824			3.87	%			51,426				1,257			4.90	%
Total interest-earning assets			2,030,761				46,151			4.55	%			1,966,573				42,134			4.30	%
Non-interest earning assets			61,288											58,108
Total assets		$	2,092,049										$	2,024,681
Liabilities and shareholders' equity:
NOW, savings, and money market deposits		$	630,711			$	4,275			1.37	%		$	614,049			$	3,891			1.27	%
Time deposits			721,950				13,719			3.83	%			637,488				13,654			4.30	%
Interest-bearing deposits			1,352,661				17,994			2.68	%			1,251,537				17,545			2.81	%
FHLB advances			345,158				5,773			3.35	%			355,308				5,599			3.16	%
Total interest-bearing liabilities			1,697,819				23,767			2.82	%			1,606,845				23,144			2.89	%
Non-interest bearing deposits			25,147											25,786
Non-interest bearing other			41,254											41,314
Total liabilities			1,764,220											1,673,945
Total shareholders' equity			327,829											350,736
Total liabilities and shareholders' equity		$	2,092,049										$	2,024,681
Net interest income						$	22,384										$	18,990
Net interest rate spread (2)										1.72	%										1.41	%
Net interest margin (3)										2.22	%										1.94	%
(1) Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans. (2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average interest-earning assets.

BLUE FOUNDRY BANCORP AND SUBSIDIARY Supplemental Information - Non-GAAP Financial Measures (Unaudited)
This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Blue Foundry's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Blue Foundry's financial results. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Blue Foundry strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. Net income, as presented in the Consolidated Statements of Operations, includes the provision for credit losses and income tax expense, while pre-provision net revenue does not.
		Three months ended
		June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
		(Dollars in thousands, except per share data)
Pre-provision net revenue and efficiency ratio:
Net interest income		$	11,640			$	10,744			$	9,473			$	9,087			$	9,573
Other income			405				394				420				387				536
Total revenue			12,045				11,138				9,893				9,474				10,109
Operating expenses			13,539				13,629				12,881				13,267				13,215
Pre-provision net loss		$	(1,494	)		$	(2,491	)		$	(2,988	)		$	(3,793	)		$	(3,106	)
Efficiency ratio			112.4	%			122.4	%			130.2	%			140.0	%			130.7	%
Core deposits:
Total deposits		$	1,416,321			$	1,387,241			$	1,343,320			$	1,318,670			$	1,311,156
Less: time deposits			730,778				726,908				707,339				701,262				671,478
Core deposits		$	685,543			$	660,333			$	635,981			$	617,408			$	639,678
Core deposits to total deposits			48.4	%			47.6	%			47.3	%			46.8	%			48.8	%
Total assets		$	2,127,504			$	2,092,206			$	2,060,683			$	2,055,093			$	2,045,452
Less: intangible assets			134				189				244				300				386
Tangible assets		$	2,127,370			$	2,092,017			$	2,060,439			$	2,054,793			$	2,045,066
Tangible equity:
Shareholders’ equity		$	321,300			$	326,663			$	332,198			$	339,299			$	345,597
Less: intangible assets			134				189				244				300				386
Tangible equity		$	321,166			$	326,474			$	331,954			$	338,999			$	345,211
Tangible equity to tangible assets			15.10	%			15.61	%			16.11	%			16.50	%			16.88	%
Tangible book value per share:
Tangible equity		$	321,166			$	326,474			$	331,954			$	338,999			$	345,211
Shares outstanding			21,591,757				22,047,649				22,522,626				22,990,908				23,505,357
Tangible book value per share		$	14.87			$	14.81			$	14.74			$	14.74				14.69

FAQ

What were Blue Foundry Bancorp's (BLFY) Q2 2025 earnings results?

Blue Foundry reported a net loss of $2.0 million ($0.10 per share) in Q2 2025, improving from a $2.7 million loss in Q1 2025 and $2.3 million loss in Q2 2024.

How did BLFY's loan portfolio perform in Q2 2025?

Total loans increased by $47.4 million to $1.67 billion, with notable growth in consumer loans ($76.5 million), commercial real estate ($33.5 million), and construction loans ($11.7 million).

What was Blue Foundry's deposit composition as of Q2 2025?

Total deposits were $1.42 billion, with core deposits representing 48.4% of total deposits. Uninsured deposits were 12% of total deposits, and brokered deposits totaled $225.0 million.

How did BLFY's net interest margin (NIM) change in Q2 2025?

Net interest margin increased by 12 basis points to 2.28% compared to Q1 2025, driven by improved asset yields and lower cost of liabilities.

What is the status of BLFY's share repurchase program?

BLFY repurchased 406,391 shares at $9.42 per share and launched its sixth repurchase program for up to 1,082,533 shares (approximately 5% of outstanding shares).