Blue Foundry Bancorp Reports Third Quarter 2025 Results

Rhea-AI Summary

Blue Foundry Bancorp (NASDAQ:BLFY) reported a Q3 2025 net loss of $1.9M ($0.10 per diluted share) versus a loss of $4.0M in Q3 2024. Loans rose to $1.715B (up $41.9M q/q; +$131.4M YTD) and deposits reached $1.493B (up $77.1M q/q; +$150.1M YTD). Net interest margin expanded to 2.34% (up 6 bps q/q; +52 bps y/y) as yield on earning assets improved to 4.67%.

Highlights: tangible book value exceeded $15 per share, 837,388 shares were repurchased (avg $9.09), provision for credit losses was $589K in the quarter, allowance for credit losses was 0.81% of loans, and non-performing loans rose to $11.4M (0.66%) driven by one $5.3M commercial credit with legal proceedings underway.

Positive

• Loans increased by $131.4M year-to-date
• Deposits increased by $150.1M since Dec 31, 2024
• Net interest margin rose to 2.34% (up 52 bps y/y)
• Tangible common equity per share exceeded $15.14

Negative

• Net loss of $1.9M in Q3 2025
• Non-performing loans increased to $11.4M (0.66%)
• Valuation allowance on deferred tax assets of $25.3M

Insights

Banking Financial Analyst

Results show balance-sheet growth and margin improvement, but the company remains unprofitable with rising non-performing loans.

Net loss narrowed to $1.9 million in Q3 2025 from $4.0 million year-over-year while net interest margin expanded to 2.34%, driven by a higher yield on assets and lower funding costs; loans rose to $1.715 billion and deposits to $1.493 billion, supporting higher net interest income of $12.2 million. Tangible book value per share exceeded $15, and management repurchased 837,388 shares during the quarter.

Key dependencies and risks remain evident in the results: the company still posted a net loss and carries a full valuation allowance on deferred tax assets of $25.3 million, while non-performing loans increased to $11.4 million (0.66% of loans), driven mainly by one commercial credit for $5.3 million that is in legal proceedings. Brokered deposits rose to $275.0 million, which helps fund loan growth but represents a funding-mix sensitivity. Provisions and the ACL remain modest at 0.81% of gross loans, with a Q3 provision of $589 thousand.

Watch the next several quarters for sustained quarterly profitability and direction of credit metrics: specifically quarterly net income or loss, trends in non-performing loans and charge-offs, changes to the allowance relative to loan growth, and deposit composition shifts (core vs. brokered). Near-term catalysts include continued margin expansion and realization of claimed yield gains; monitor updates through the next two to four quarters for confirmation.

RUTHERFORD, N.J., Oct. 29, 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 $1.9 million, or $0.10 per diluted common share, for the three months ended September 30, 2025, compared to net loss of $2.0 million, or $0.10 per diluted common share, for the three months ended June 30, 2025, and a net loss of $4.0 million, or $0.19 per diluted common share, for the three months ended September 30, 2024.

James D. Nesci, President and Chief Executive Officer, commented, “During the third quarter, we experienced expansion in our net interest margin due to improvements in both yield on assets and cost of funds. Our strategy of focusing on obtaining the full banking relationship, coupled with diversifying our loan portfolio with an emphasis on asset classes that provide higher yields and better risk-adjusted returns, will position us well for continued balance sheet and interest income growth.”

Mr. Nesci further noted, “We remain committed to enhancing shareholder value. This quarter, tangible book value exceeded $15 per share. As our profitability slowly continues to improve, we expect market valuation to follow.”

Highlights for the third quarter of 2025:

• Loans increased $41.9 million to $1.71 billion compared to the linked quarter.
• Deposits increased $77.1 million to $1.49 billion compared to the linked quarter. Core deposits increased by $18.6 million compared to the linked quarter.
• Net interest margin increased six basis points to 2.34% compared to the linked quarter.
• Interest income for the quarter was $24.1 million, an increase of $693 thousand, or 3.0%, compared to the linked quarter.
• Interest expense for the quarter was $11.9 million, an increase of $142 thousand compared to the linked quarter.
• Provision for credit losses of $589 thousand was primarily due to the increase in the provision for loans.
• Book value per share and tangible book value per share were $15.14, respectively. See the “Supplemental Information - Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
• 837,388 shares were repurchased during the quarter at a weighted average share price of $9.09 per share. 500,000 of the shares repurchased were part of a private transaction executed at a slight discount to the market prices at the time.

Loans

During the first nine months of 2025, loans increased by $131.4 million. The Company continues to focus on diversifying its lending portfolio. During the first nine months of 2025, we purchased unsecured consumer loans with credit reserves, which is cash collateral held at the Bank. Management has determined the collateral to be sufficient to cover any expected losses in the loan pools. These loans have helped improve yields while having lower exposure to credit loss. As a result of the purchases, the consumer loan portfolio increased by $114.5 million during the first nine months of 2025. In addition, the commercial real estate portfolio increased by $57.4 million, of which $46.3 million was in owner-occupied properties, and the commercial and industrial portfolio increased $8.0 million. The construction and multifamily portfolios decreased by $25.0 million and $23.8 million, respectively, during the nine months ended September 30, 2025.

The details of the loan portfolio are below:

		September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
		(In thousands)
Residential		$	514,263		$	519,370		$	512,793		$	518,243		$	516,754
Multifamily			647,269			633,849			645,399			671,116			666,304
Commercial real estate			317,079			293,179			288,151			259,633			241,711
Construction			60,543			97,207			92,813			85,546			80,081
Junior liens			29,694			27,996			26,902			25,422			24,174
Commercial and industrial			24,315			17,729			18,079			16,311			14,228
Consumer and other			121,752			83,706			41,518			7,211			7,731
Total loans			1,714,915			1,673,036			1,625,655			1,583,482			1,550,983
Less: Allowance for credit losses			13,834			13,304			13,152			12,965			13,012
Loans receivable, net		$	1,701,081		$	1,659,732		$	1,612,503		$	1,570,517		$	1,537,971

Deposits

At September 30, 2025, deposits totaled $1.49 billion, an increase of $150.1 million, or 11.17%, from December 31, 2024. This change was driven by increases of $87.5 million in NOW and demand accounts and $81.9 million in time deposits, partially offset by a decrease in savings accounts of $18.3 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. Despite strong competition for deposits in the northern New Jersey market, during the nine months ended September 30, 2025, we were able to increase core customer deposits by $68.2 million, or 10.7%, with commercial deposits increasing $36.1 million during the year-to-date period. In addition, brokered deposits increased $120.0 million during the nine months ended September 30, 2025, as higher cost customer time deposits matured and were supplemented with brokered deposits. Uninsured deposits to third-party customers totaled approximately 13% of total deposits as of September 30, 2025.

The details of deposits are below:

		September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
		(In thousands)
Non-interest bearing deposits		$	24,951		$	25,161		$	25,222		$	26,001		$	22,254
NOW and demand accounts			457,072			431,485			398,332			369,554			357,503
Savings			222,137			228,897			236,779			240,426			237,651
Core deposits			704,160			685,543			660,333			635,981			617,408
Time deposits			789,220			730,778			726,908			707,339			701,262
Total deposits		$	1,493,380		$	1,416,321		$	1,387,241		$	1,343,320		$	1,318,670

Financial Performance Overview:

Third quarter of 2025 compared to the second quarter of 2025

Net interest income compared to the second quarter of 2025:

• Net interest income was $12.2 million for the third quarter of 2025 compared to $11.6 million for the second quarter of 2025 as interest income increased $693 thousand, partially offset by an increase in interest expense of $142 thousand.
• Net interest margin increased by six basis points to 2.34%.
• The yield on average interest-earning assets increased nine basis points to 4.67%, while the cost of average interest-bearing liabilities decreased four basis points to 2.72%.
• Average interest-earning assets increased by $21.1 million and average interest-bearing liabilities increased by $23.0 million.

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

• Non-interest expense increased $347 thousand primarily driven by increases of $206 thousand and $198 thousand in compensation and benefits and professional services, respectively. Compensation and benefits increased primarily due to increased compensation cost and an additional day of expense during the third quarter.
  

Income tax expense compared to the second quarter of 2025:

• The Company did not record a tax benefit for the losses incurred during the third quarter of 2025 or the second 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 September 30, 2025, the valuation allowance on deferred tax assets was $25.3 million.

Third quarter of 2025 compared to the third quarter of 2024

Net interest income compared to the third quarter of 2024:

• Net interest income was $12.2 million for the third quarter of 2025 compared to $9.1 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 52 basis points to 2.34%.
• The yield on average interest-earning assets increased 35 basis points to 4.67% and the cost of average interest-bearing liabilities decreased by 31 basis points.
• Average interest-earning assets and average interest-bearing liabilities increased by $84.2 million and $105.3 million, respectively. Average loans drove the growth in interest-earning assets, with an increase of $135.1 million. Average interest-bearing deposits increased by $128.3 million, while average borrowings decreased by $23.0 million.

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

• Non-interest expense was $13.9 million and $13.3 million for the third quarter of 2025 and 2024, respectively, an increase of $619 thousand. Compensation and benefits expense increased by $720 thousand primarily due to increases in variable compensation accruals. Professional services, data processing and advertising expenses increased by $71 thousand, $61 thousand and $50 thousand, respectively.
  

Income tax expense compared to the third quarter of 2024:

• The Company did not record a tax benefit for the losses incurred during the third quarters of 2025 or 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 September 30, 2025, the valuation allowance on deferred tax assets was $25.3 million.
  

Nine Months Ended September 30, 2025 compared to the nine months ended September 30, 2024

Net interest income compared to the nine months ended September 30, 2024:

• Net interest income was $34.6 million, an increase of $6.5 million.
• Net interest margin increased 36 basis points to 2.26%.
• The yield on average interest-earning assets increased 29 basis points to 4.59% while the cost of average interest-bearing liabilities decreased 14 basis points to 2.79%.
• Average loans increased by $92.9 million and average interest-bearing deposits increased by $110.3 million.
• Average borrowings decreased by $14.5 million.
  

Non-interest income compared to the nine months ended September 30, 2024:

• Non-interest income decreased $159 thousand primarily due to the absence of gains on the sale of loans and REO property during the first nine months of 2024.
  

Non-interest expense compared to the nine months ended September 30, 2024:

• Non-interest expense was $41.1 million, an increase of $1.3 million.
• Compensation and benefits expense increased by $1.2 million, primarily driven by increases in variable compensation accruals. Additionally, data processing expense, advertising, and professional services increased by $294 thousand, $133 thousand and $103 thousand, respectively.

Income tax expense compared to the nine months ended September 30, 2024:

• The Company did not record a tax benefit for the losses incurred during the nine months ended September 30, 2025 or 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 September 30, 2025, the valuation allowance on deferred tax assets was $25.3 million.
  

Balance Sheet Summary:

September 30, 2025 compared to December 31, 2024

Cash and cash equivalents:

• Cash and cash equivalents increased $1.6 million to $44.1 million.
  

Securities available-for-sale:

• Securities available-for-sale decreased $23.1 million to $273.9 million due to maturities, calls and pay downs, partially offset by purchases and a decrease in the unrealized loss position of $8.6 million.
  

Securities held-to-maturity

• Securities held-to-maturity decreased $6.0 million due to pay downs in the portfolio.
  

Total loans:

• Total loans held for investment increased $131.4 million to $1.71 billion.
• Consumer, commercial real estate and commercial and industrial loans increased $114.5 million, $57.4 million, and $8.0 million, respectively. Partially offsetting these increases was a decrease in construction loans and multifamily loans of $25.0 million and $23.8 million, respectively.
• During the nine months ended September 30, 2025, the Company purchased consumer and residential loans totaling $123.8 million and $35.3 million, respectively.
  

Deposits:

• Deposits totaled $1.49 billion at September 30, 2025, increasing $150.1 million from $1.34 billion at December 31, 2024. This increase was driven by a $87.5 million increase in NOW and demand accounts and a $81.9 million increase in certificates of deposits, partially offset by a decrease of $18.3 million in savings accounts.
• Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) increased $68.2 million and represented 57.8% of total deposits, excluding brokered deposits, at September 30, 2025, compared to 53.5% at December 31, 2024.
• Brokered deposits totaled $275.0 million and $155.0 million at September 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 $194.1 million, or 13% of total deposits, at the end of the third quarter.

Borrowings:

• At September 30, 2025, FHLB borrowings totaled $301.0 million, a decrease of $38.5 million from December 31, 2024.
• As of September 30, 2025, the Company had $283.8 million of additional borrowing capacity at the FHLB, $109.4 million in secured lines at the Federal Reserve Bank and $30.0 million of other unsecured lines of credit.

Capital:

• Shareholders’ equity was $314.4 million at September 30, 2025, a decrease of $17.8 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 $16.3 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 14.58% and tangible common equity per share outstanding was $15.14. 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 0.81% as of September 30, 2025.
• The Company recorded a provision for credit losses of $589 thousand for the third quarter of 2025, primarily driven by deterioration in the economic variable forecasts. For the third quarter of 2025, the provision for the ACL on loans, off-balance-sheet commitments and held-to-maturity securities was $555 thousand, $24 thousand and $10 thousand, respectively. The provision for credit losses for the nine months ended September 30, 2025 was $1.3 million. The provision for the ACL on loans, off-balance-sheet commitments and held-to-maturity securities totaled $905 thousand, $346 thousand and $2 thousand, respectively.
• Non-performing loans totaled $11.4 million, or 0.66% of total loans compared to $5.1 million, or 0.33% of total loans at December 31, 2024. The increase in non-performing loans was primarily driven by one commercial credit for $5.3 million that has previously been disclosed as a special mention asset. Legal proceedings have commenced and we are seeking the appointment of a rent receiver. At this time, we do not believe any principal is at risk.
• Net charge-offs for the three and nine months ended September 30, 2025 were $25 thousand and $36 thousand, respectively.
• The ratio of allowance for credit losses on loans to non-performing loans was 121.49% at September 30, 2025 compared to 254.02% at December 31, 2024, as a result of the increase in non-performing loans as noted above.
  

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 third quarter of 2025 earnings announcement will be held today, Wednesday, October 29, 2025 at 11:00 a.m. (EDT). To listen to the live call, please dial 1-833-470-1428 (toll free) and use access code 211381. 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; the impact of the federal government shutdown; 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
		September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
		(unaudited)			(unaudited)			(unaudited)			(audited)
		(Dollars in thousands)
ASSETS
Cash and cash equivalents		$	44,086		$	41,877		$	46,220		$	42,502
Securities available-for-sale, at fair value			273,941			284,239			286,620			297,028
Securities held to maturity			27,050			29,062			32,038			33,076
Other investments			16,309			18,112			17,605			17,791
Loans, net			1,701,081			1,659,732			1,612,503			1,570,517
Interest and dividends receivable			9,237			8,817			8,746			8,014
Premises and equipment, net			27,523			28,187			28,805			29,486
Right-of-use assets			21,422			22,101			22,778			23,470
Bank owned life insurance			22,888			22,761			22,638			22,519
Other assets			12,255			12,616			14,253			16,280
Total assets		$	2,155,792		$	2,127,504		$	2,092,206		$	2,060,683
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits		$	1,493,380		$	1,416,321		$	1,387,241		$	1,343,320
Advances from the Federal Home Loan Bank			301,000			343,000			334,000			339,500
Advances by borrowers for taxes and insurance			9,980			10,079			9,743			9,356
Lease liabilities			23,147			23,820			24,490			25,168
Other liabilities			13,888			12,984			10,069			11,141
Total liabilities			1,841,395			1,806,204			1,765,543			1,728,485
Shareholders’ equity			314,397			321,300			326,663			332,198
Total liabilities and shareholders’ equity		$	2,155,792		$	2,127,504		$	2,092,206		$	2,060,683

BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Statements of Operations (Dollars in Thousands Except Per Share Data) (Unaudited)
		Three months ended												Nine months ended
		September 30, 2025				June 30, 2025				September 30, 2024				September 30, 2025				September 30, 2024
		(Dollars in thousands)
Interest income:
Loans		$	20,608			$	19,763			$	17,646			$	59,263			$	52,408
Taxable investment income			3,488				3,639				3,850				10,912				11,150
Non-taxable investment income			35				36				36				107				108
Total interest income			24,131				23,438				21,532				70,282				63,666
Interest expense:
Deposits			9,277				8,968				9,712				27,271				27,257
Borrowed funds			2,663				2,830				2,733				8,436				8,332
Total interest expense			11,940				11,798				12,445				35,707				35,589
Net interest income			12,191				11,640				9,087				34,575				28,077
Provision for (release of) credit losses			589				463				248				1,253				(1,049	)
Net interest income after provision for (release of) credit losses			11,602				11,177				8,839				33,322				29,126
Non-interest income:
Fees and service charges			276				289				272				808				897
Gain on sale of loans			—				—				—				—				36
Other income			140				116				115				407				441
Total non-interest income			416				405				387				1,215				1,374
Non-interest expense:
Compensation and employee benefits			8,026				7,820				7,306				23,684				22,490
Occupancy and equipment			2,162				2,209				2,230				6,674				6,684
Data processing			1,473				1,468				1,412				4,428				4,134
Advertising			137				140				87				344				211
Professional services			884				686				813				2,269				2,166
Federal deposit insurance			239				231				236				693				629
Other			965				985				1,183				2,962				3,410
Total non-interest expense			13,886				13,539				13,267				41,054				39,724
Loss before income tax expense			(1,868	)			(1,957	)			(4,041	)			(6,517	)			(9,224	)
Income tax expense			—				—				—				—				—
Net loss		$	(1,868	)		$	(1,957	)		$	(4,041	)		$	(6,517	)		$	(9,224	)
Basic loss per share		$	(0.10	)		$	(0.10	)		$	(0.19	)		$	(0.33	)		$	(0.43	)
Diluted loss per share		$	(0.10	)		$	(0.10	)		$	(0.19	)		$	(0.33	)		$	(0.43	)
Weighted average shares outstanding
Basic			19,431,456				19,843,710				21,263,482				19,889,497				21,695,895
Diluted (1)			19,431,456				19,843,710				21,263,482				19,889,497				21,695,895

(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
		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
		(Dollars in thousands)
Performance Ratios (%):
Loss on average assets			(0.35	)			(0.37	)			(0.53	)			(0.52	)			(0.79	)
Loss on average equity			(2.31	)			(2.42	)			(3.29	)			(3.17	)			(4.68	)
Interest rate spread(1)			1.95				1.82				1.62				1.40				1.29
Net interest margin(2)			2.34				2.28				2.16				1.89				1.82
Efficiency ratio(3) (4)			110.15				112.40				122.36				130.20				140.04
Average interest-earning assets to average interest-bearing liabilities			118.86				119.22				120.01				120.84				121.37
Tangible equity to tangible assets(4)			14.58				15.10				15.61				16.11				16.50
Book value per share(5)		$	15.14			$	14.88			$	14.82			$	14.75			$	14.76
Tangible book value per share(4)(5)		$	15.14			$	14.87			$	14.81			$	14.74			$	14.74
Asset Quality:
Non-performing loans		$	11,387			$	6,281			$	5,723			$	5,104			$	5,146
Real estate owned, net			—				—				—				—				—
Non-performing assets		$	11,387			$	6,281			$	5,723			$	5,104			$	5,146
Allowance for credit losses to total loans (%)			0.81				0.80				0.81				0.83				0.84
Allowance for credit losses to non-performing loans (%)			121.49				211.81				229.81				254.02				252.86
Non-performing loans to total loans (%)			0.66				0.38				0.35				0.33				0.33
Non-performing assets to total assets (%)			0.53				0.30				0.27				0.25				0.25
Net charge-offs to average outstanding loans during the period (%)			0.01				—				—				—				—

(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)	September 30, 2025 per share metrics computed using 20,761,225 total shares outstanding.

BLUE FOUNDRY BANCORP AND SUBSIDIARY Analysis of Net Interest Income (Dollars in Thousands) (Unaudited)
		Three Months Ended,
		September 30, 2025									June 30, 2025									September 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)		$	1,684,075		$	20,608		4.89	%		$	1,647,763		$	19,763		4.80	%		$	1,548,962		$	17,646		4.53	%
Mortgage-backed securities			179,954			1,241		2.76	%			184,572			1,274		2.76	%			181,596			1,186		2.60	%
Other investment securities			146,726			1,557		4.24	%			153,985			1,638		4.26	%			173,008			1,527		3.51	%
FHLB stock			16,640			331		7.97	%			17,490			349		7.98	%			17,666			406		9.15	%
Cash and cash equivalents			39,505			394		3.99	%			41,998			414		3.95	%			61,507			767		4.96	%
Total interest-earning assets			2,066,900			24,131		4.67	%			2,045,808			23,438		4.58	%			1,982,739			21,532		4.32	%
Non-interest earning assets			61,565									61,060									61,787
Total assets		$	2,128,465								$	2,106,868								$	2,044,526
Liabilities and shareholders' equity:
NOW, savings, and money market deposits		$	662,312			2,504		1.50	%		$	642,063			2,244		1.40	%		$	598,048			1,925		1.28	%
Time deposits			752,613			6,773		3.57	%			731,003			6,724		3.69	%			688,570			7,787		4.50	%
Interest-bearing deposits			1,414,925			9,277		2.60	%			1,373,066			8,968		2.62	%			1,286,618			9,712		3.00	%
FHLB advances			324,043			2,663		3.29	%			342,945			2,830		3.30	%			347,076			2,733		3.13	%
Total interest-bearing liabilities			1,738,968			11,940		2.72	%			1,716,011			11,798		2.76	%			1,633,694			12,445		3.03	%
Non-interest bearing deposits			25,559									24,885									23,421
Non-interest bearing other			43,513									41,824									43,713
Total liabilities			1,808,040									1,782,720									1,700,828
Total shareholders' equity			320,425									324,148									343,698
Total liabilities and shareholders' equity		$	2,128,465								$	2,106,868								$	2,044,526
Net interest income					$	12,191								$	11,640								$	9,087
Net interest rate spread(2)								1.95	%								1.82	%								1.29	%
Net interest margin(3)								2.34	%								2.28	%								1.82	%

(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)

		Nine Months Ended September 30,
			2025									2024
		Average Balance			Interest			Average Yield/Cost			Average Balance			Interest			Average Yield/Cost
		(Dollars in thousands)
Assets:
Loans(1)		$	1,644,670		$	59,263		4.80	%		$	1,551,734		$	52,408		4.50	%
Mortgage-backed securities			184,746			3,838		2.77	%			169,765			3,022		2.37	%
Other investment securities			154,705			4,883		4.21	%			177,455			4,867		3.65	%
FHLB stock			17,266			1,079		8.33	%			18,335			1,345		9.77	%
Cash and cash equivalents			41,553			1,219		3.91	%			54,810			2,024		4.92	%
Total interest-earning assets			2,042,940			70,282		4.59	%			1,972,099			63,666		4.30	%
Non-interest earning assets			61,381									59,245
Total assets		$	2,104,321								$	2,031,344
Liabilities and shareholders' equity:
NOW, savings, and money market deposits		$	641,361		$	6,778		1.41	%		$	608,677		$	5,816		1.27	%
Time deposits			732,283			20,493		3.74	%			654,639			21,441		4.36	%
Interest-bearing deposits			1,373,644			27,271		2.65	%			1,263,316			27,257		2.87	%
FHLB advances			338,042			8,436		3.33	%			352,544			8,332		3.15	%
Total interest-bearing liabilities			1,711,686			35,707		2.79	%			1,615,860			35,589		2.93	%
Non-interest bearing deposits			25,286									24,992
Non-interest bearing other			42,015									42,120
Total liabilities			1,778,987									1,682,972
Total shareholders' equity			325,334									348,372
Total liabilities and shareholders' equity		$	2,104,321								$	2,031,344
Net interest income					$	34,575								$	28,077
Net interest rate spread(2)								1.80	%								1.37	%
Net interest margin(3)								2.26	%								1.90	%

(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
		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
		(Dollars in thousands, except per share data)
Pre-provision net revenue and efficiency ratio:
Net interest income		$	12,191			$	11,640			$	10,744			$	9,473			$	9,087
Other income			416				405				394				420				387
Total revenue			12,607				12,045				11,138				9,893				9,474
Operating expenses			13,886				13,539				13,629				12,881				13,267
Pre-provision net loss		$	(1,279	)		$	(1,494	)		$	(2,491	)		$	(2,988	)		$	(3,793	)
Efficiency ratio			110.2	%			112.4	%			122.4	%			130.2	%			140.0	%
Core deposits:
Total deposits		$	1,493,380			$	1,416,321			$	1,387,241			$	1,343,320			$	1,318,670
Less: time deposits			789,220				730,778				726,908				707,339				701,262
Core deposits		$	704,160			$	685,543			$	660,333			$	635,981			$	617,408
Core deposits to total deposits			47.2	%			48.4	%			47.6	%			47.3	%			46.8	%
Total assets		$	2,155,792			$	2,127,504			$	2,092,206			$	2,060,683			$	2,055,093
Less: intangible assets			79				134				189				244				300
Tangible assets		$	2,155,713			$	2,127,370			$	2,092,017			$	2,060,439			$	2,054,793
Tangible equity:
Shareholders’ equity		$	314,397			$	321,300			$	326,663			$	332,198			$	339,299
Less: intangible assets			79				134				189				244				300
Tangible equity		$	314,318			$	321,166			$	326,474			$	331,954			$	338,999
Tangible equity to tangible assets			14.58	%			15.10	%			15.61	%			16.11	%			16.50	%
Tangible book value per share:
Tangible equity		$	314,318			$	321,166			$	326,474			$	331,954			$	338,999
Shares outstanding			20,761,225				21,591,757				22,047,649				22,522,626				22,990,908
Tangible book value per share		$	15.14			$	14.87			$	14.81			$	14.74			$	14.74

FAQ

What was Blue Foundry Bancorp's net loss and EPS for Q3 2025 (BLFY)?

Blue Foundry reported a Q3 2025 net loss of $1.9M, or $0.10 per diluted common share.

How much did Blue Foundry (BLFY) loans and deposits grow in Q3 2025?

Loans increased $41.9M q/q to $1.715B and deposits increased $77.1M q/q to $1.493B.

What was Blue Foundry's net interest margin (NIM) in Q3 2025 and how did it change?

NIM was 2.34% in Q3 2025, up 6 basis points quarter-over-quarter and 52 basis points year-over-year.

Did Blue Foundry repurchase shares in Q3 2025 (BLFY) and at what price?

Yes; 837,388 shares were repurchased during the quarter at a weighted average price of $9.09 per share.

What drove the increase in Blue Foundry's non-performing loans in Q3 2025?

Non-performing loans rose primarily due to one commercial credit of $5.3M that is subject to legal proceedings and a rent receiver request.

How large is Blue Foundry's allowance for credit losses and provision in Q3 2025?

Allowance for credit losses was 0.81% of gross loans and the provision for credit losses for Q3 2025 was $589K.