Financial Performance - The Company recorded a net loss of $1.9 million for Q3 2025, an improvement from a net loss of $4.0 million in Q3 2024, representing a 52.5% reduction in losses [169]. - For the nine months ended September 30, 2025, the Company recorded a net loss of $6.5 million, an improvement from a net loss of $9.2 million in the same period of 2024 [181]. Interest Income and Net Interest Income - Interest income for Q3 2025 was $24.1 million, an increase of $2.6 million or 12.1% from $21.5 million in Q3 2024, driven by higher rates on interest-earning assets [170]. - Net interest income increased by $3.1 million to $12.2 million in Q3 2025, with a net interest rate spread of 1.95%, up 66 basis points from the previous year [172]. - Interest income for the nine months ended September 30, 2025, totaled $70.3 million, a 10.4% increase from $63.7 million in 2024, driven by higher average loan balances [182]. - Net interest income for the nine months ended September 30, 2025, increased by $6.5 million to $34.6 million, with a net interest margin of 2.26%, up 36 basis points from 2024 [184]. Credit Losses and Provisions - The provision for credit losses was $589 thousand in Q3 2025, compared to $248 thousand in Q3 2024, reflecting economic variable forecast deterioration [173]. Assets and Loans - Total assets grew to $2.16 billion at September 30, 2025, up from $2.06 billion at December 31, 2024 [192]. - Gross loans held for investment increased by $131.4 million to $1.71 billion at September 30, 2025, with consumer and commercial real estate loans rising by $114.5 million and $57.4 million, respectively [195]. - The average interest-earning assets increased by $70.8 million to $2.04 billion for the nine months ended September 30, 2025 [182]. Deposits and Equity - Total deposits rose by $150.1 million, or 11.2%, to $1.49 billion at September 30, 2025, driven by increases in NOW and demand accounts and time deposits [197]. - Total shareholders' equity decreased by $17.8 million, or 5.4%, to $314.4 million at September 30, 2025, primarily due to share repurchases [200]. Non-Interest Income and Expenses - Non-interest income decreased to $1.2 million for the nine months ended September 30, 2025, down from $1.4 million in 2024, partly due to a prior gain on sale of REO property [186]. - Non-interest expense increased by $1.3 million to $41.1 million for the nine months ended September 30, 2025, primarily due to a $1.2 million rise in compensation and benefits expense [187]. Securities and Borrowings - Securities available-for-sale decreased by $23.1 million, or 7.8%, to $273.9 million at September 30, 2025 [193]. - Borrowings decreased by $38.5 million, or 11.3%, to $301.0 million at September 30, 2025 [199]. Capital and Liquidity - The Bank's total capital ratio as of September 30, 2025 is 18.52%, significantly exceeding the minimum requirement of 8.00% [216]. - The Bank's common equity tier 1 capital is $286,527 thousand, with a ratio of 17.63% as of September 30, 2025 [216]. - Liquidity sources include deposit inflows, loan payments, and wholesale funding, with available borrowing capacity at $283.8 million [211]. - The available borrowing capacity is 2.2 times the total uninsured and uncollateralized deposits to third-party customers [213]. Interest Rate Sensitivity - As of September 30, 2025, a 100 basis point increase in interest rates would result in a 14.1% decrease in Economic Value of Equity (EVE) to $195,762 thousand [209]. - A 200 basis point increase in interest rates would lead to a 28.2% decrease in EVE, amounting to $163,656 thousand [209]. Commitments and Hedges - The Bank has $7.8 million in commitments to originate loans and $146.1 million in unused lines of credit as of September 30, 2025 [213]. - The Company had $526.0 million in interest rate hedges at September 30, 2025, an increase of $177.0 million from December 31, 2024 [201]. - Management expects to retain a substantial portion of certificate holders for maturing deposits totaling $777.1 million [213]. - The Bank is considered "well capitalized" under regulatory guidelines as of September 30, 2025 [215].

Financial Data and Key Metrics Changes - The company reported a quarterly net loss of $1.9 million, an improvement from a $2 million loss in the prior quarter [2][6] - Pre-provision net loss was $1.3 million, also showing improvement compared to the previous quarter [2] - Net interest income increased by $551,000 to $12.2 million, driven by an 11.8% annualized increase in interest income [6][4] - Tangible book value per share increased to $15.14 [4] - Non-performing loans rose to $11.4 million, or 66 basis points of total loans, up from $6.3 million, or 38 basis points in the prior quarter [9] Business Line Data and Key Metrics Changes - Loan growth totaled $41.9 million, with commercial real estate and consumer loan portfolios driving this increase [3][9] - The commercial loan portfolio grew by $7.2 million, with strong origination activity of $81.3 million [3] - Consumer loan portfolio increased by $38 million, supported by purchases of unsecured consumer loans [3] - Core deposits grew by over 10% year-to-date, while commercial deposits increased by over 17% [3] Market Data and Key Metrics Changes - The net interest margin expanded by six basis points to 2.34%, supported by a nine basis point increase in asset yields [4][6] - The cost of average interest-bearing liabilities declined to 2.72% [6] Company Strategy and Development Direction - The company is focused on growing core deposits, diversifying the loan portfolio, and expanding the net interest margin [2] - A relationship-driven approach has been emphasized to enhance loan growth and deposit acquisition [3][21] - The company plans to de-emphasize CDs in favor of money market products to manage funding costs [12][13] Management's Comments on Operating Environment and Future Outlook - Management expects downward rate movements to benefit funding costs and net interest margin over time [5] - The company anticipates a relatively flat margin in Q4, with a significant pickup expected in 2026 due to repricing activities [17][18] - Credit quality remains sound, with minimal charge-offs and a disciplined approach to risk management [8][9] Other Important Information - The company repurchased over 837,000 shares at a weighted average price of $9.09 per share, with a total of 8.65 million shares repurchased since the program's inception [4] - Liquidity and capital remain strong, with $423 million in borrowing capacity and $178 million in unencumbered securities [4] Q&A Session Summary Question: Margin outlook and response to rate cuts - Management discussed strategies to manage funding costs and expectations for matching Fed rate cuts [12][13] Question: Loan growth outlook and consumer loan portfolio - Management confirmed a target growth range of 7% to 8% for the structured consumer loan portfolio [26] Question: Buyback activity and future expectations - Management indicated that the recent buyback activity may not be a sustainable run rate, but they still have shares available for repurchase [27][28]

Financial Performance - Blue Foundry Bancorp reported a quarterly loss of $0.1 per share, which aligns with the Zacks Consensus Estimate, compared to a loss of $0.19 per share a year ago [1] - The company posted revenues of $12.61 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.08%, and up from $9.47 million in the same quarter last year [2] - Over the last four quarters, Blue Foundry Bancorp has surpassed consensus EPS estimates three times [1][2] Market Performance - Blue Foundry Bancorp shares have declined approximately 12.1% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $12.92 million, and -$0.39 on revenues of $48.64 million for the current fiscal year [7] - The trend of estimate revisions for Blue Foundry Bancorp was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Banks - Northeast industry, to which Blue Foundry Bancorp belongs, is currently ranked in the top 14% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - The company reported a net loss of $1.9 million, or $0.10 per diluted common share, for Q3 2025, an improvement from a net loss of $2.0 million in Q2 2025 and $4.0 million in Q3 2024[2][3]. - The net loss for the three months ended September 30, 2025, was $1,868,000, a slight improvement from a net loss of $1,957,000 in the previous quarter[36]. - Basic loss per share remained at $0.10 for the three months ended September 30, 2025, consistent with the previous quarter[36]. Loans and Credit Quality - Total loans increased by $131.4 million to $1.71 billion during the first nine months of 2025, with significant growth in consumer loans ($114.5 million) and commercial real estate loans ($57.4 million) offset by declines in construction and multifamily loans[5][22]. - Non-performing loans increased to $11.4 million, or 0.66% of total loans, compared to $5.1 million, or 0.33% at December 31, 2024[27]. - The allowance for credit losses on loans was 0.81% of gross loans as of September 30, 2025, with a provision for credit losses of $589 thousand recorded in Q3 2025[27]. - The ratio of allowance for credit losses on loans to non-performing loans was 121.49% as of September 30, 2025, down from 254.02% at December 31, 2024[27]. - The provision for credit losses was $589 thousand, primarily due to an increase in the provision for loans[6]. - The company recorded net charge-offs of $25 thousand for Q3 2025 and $36 thousand for the nine months ended September 30, 2025[27]. - The allowance for credit losses to total loans ratio was 0.81% as of September 30, 2025, slightly up from 0.80% in the previous quarter, reflecting a stable credit risk profile[38]. Deposits and Assets - Deposits totaled $1.49 billion at September 30, 2025, reflecting an increase of $150.1 million, or 11.17%, from December 31, 2024, driven by increases in NOW and demand accounts ($87.5 million) and time deposits ($81.9 million)[8][22]. - Total assets reached $2,155.8 million as of September 30, 2025, an increase from $2,060.7 million at December 31, 2024[34]. - Total liabilities were $1,841.4 million as of September 30, 2025, compared to $1,728.5 million at December 31, 2024[34]. - Total deposits reached $1,493,380 thousand, with core deposits accounting for 47.2% of total deposits, up from 46.8% a year ago[51]. Interest Income and Margin - The net interest margin improved by six basis points to 2.34% compared to the previous quarter, with interest income rising to $24.1 million, a 3.0% increase from Q2 2025[6][10]. - Total interest income for the three months ended September 30, 2025, was $24,131,000, an increase of 7.4% from $23,438,000 in the previous quarter[36]. - Net interest income after provision for credit losses for the three months ended September 30, 2025, was $11,602,000, compared to $11,177,000 in the previous quarter, reflecting a 3.8% increase[36]. - The interest rate spread increased to 1.95% for the three months ended September 30, 2025, compared to 1.82% in the previous quarter, indicating improved interest income generation[38]. - Net interest rate spread improved to 1.95% for the three months ended September 30, 2025, compared to 1.29% in the same period last year[42]. Shareholder Value and Equity - The company’s tangible book value per share exceeded $15, indicating a focus on enhancing shareholder value[3]. - Shareholders' equity decreased to $314.4 million as of September 30, 2025, down $17.8 million from December 31, 2024, primarily due to share repurchases costing $16.3 million[27]. - The tangible book value per share increased to $15.14 as of September 30, 2025, compared to $14.88 in the previous quarter, indicating a strengthening balance sheet[38]. - The tangible equity to tangible assets ratio was 14.58% as of September 30, 2025[27]. Operational Efficiency - The efficiency ratio improved to 110.15% for the three months ended September 30, 2025, compared to 112.40% in the previous quarter, suggesting better cost management[38]. - Operating expenses for the quarter were $13,886 thousand, leading to a pre-provision net loss of $1,279 thousand[51]. - The efficiency ratio improved to 110.2% from 140.0% in the same quarter last year[51]. Other Financial Metrics - Average interest-earning assets increased by $84.2 million, while average interest-bearing liabilities rose by $105.3 million compared to Q3 2024[15]. - The valuation allowance on deferred tax assets was $25.3 million as of September 30, 2025, reflecting the company's current tax position[15][21]. - The company repurchased 837,388 shares at a weighted average price of $9.09 per share during the quarter[6]. - Total non-interest income for the three months ended September 30, 2025, was $416,000, a marginal increase from $405,000 in the previous quarter[36].

Core Insights - Blue Foundry Bancorp reported a net loss of $1.9 million, or $0.10 per diluted common share, for Q3 2025, an improvement from a net loss of $2.0 million in Q2 2025 and a net loss of $4.0 million in Q3 2024 [1][6][39]. Financial Performance - The net interest margin increased by six basis points to 2.34% compared to the previous quarter, driven by improvements in yield on assets and cost of funds [2][12]. - Interest income for Q3 2025 was $24.1 million, a 3.0% increase from the previous quarter, while interest expense rose to $11.9 million [6][39]. - The provision for credit losses was $589 thousand for Q3 2025, reflecting an increase in the provision for loans [6][39]. Loan Portfolio - Total loans increased by $131.4 million to $1.71 billion during the first nine months of 2025, with significant growth in consumer loans and commercial real estate [4][27]. - The consumer loan portfolio rose by $114.5 million, while the commercial real estate portfolio increased by $57.4 million [4][27]. - Construction and multifamily portfolios saw declines of $25.0 million and $23.8 million, respectively [4][27]. Deposit Growth - Total deposits reached $1.49 billion, an increase of $150.1 million from December 31, 2024, driven by increases in NOW and demand accounts and time deposits [7][27]. - Core deposits increased by $68.2 million, representing 57.8% of total deposits, up from 53.5% at the end of 2024 [7][27]. - Brokered deposits rose to $275.0 million, up from $155.0 million at the end of 2024 [7][27]. Shareholder Value - Tangible book value per share exceeded $15, reaching $15.14, reflecting the company's commitment to enhancing shareholder value [2][6]. - The company repurchased 837,388 shares at a weighted average price of $9.09 per share during the quarter [6][39]. Asset Quality - Non-performing loans totaled $11.4 million, or 0.66% of total loans, an increase from 0.33% at the end of 2024 [33][41]. - The allowance for credit losses as a percentage of gross loans was 0.81% as of September 30, 2025 [27][41].

Core Viewpoint - Blue Foundry Bancorp will release its financial results for the third quarter of 2025 on October 29, 2025, and will hold a conference call to discuss these results with investors and analysts [1][2]. Financial Results Announcement - The financial results for the quarter ended September 30, 2025, will be available on the Company's website and the SEC's website [1]. - A conference call for investors and analysts is scheduled for October 29, 2025, at 11:00 AM (ET) to discuss the earnings [2]. Conference Call Details - Participants are encouraged to pre-register for the webcast call, and upon registration, they will receive confirmation and a calendar invitation [3]. - Dial-in information is provided for those unable to join via webcast, including toll-free and local numbers [4]. Company Overview - Blue Foundry Bancorp is the holding company for Blue Foundry Bank, which has a history of over 145 years and serves various counties in New Jersey [4]. - The bank offers tailored products and services to individuals and businesses, focusing on community engagement and support [4].

Core Viewpoint - Blue Foundry Bancorp (BLFY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Company Performance and Outlook - The upgrade for Blue Foundry Bancorp reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [5][10]. - Over the past three months, the Zacks Consensus Estimate for Blue Foundry Bancorp has increased by 7.1%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Blue Foundry Bancorp's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9][10].

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Blue Foundry Bancorp's unaudited consolidated financial statements for Q2 and H1 2025, detailing financial position and performance with accompanying notes [Consolidated Balance Sheets](index=3&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets increased to **$2.13 billion** by June 30, 2025, driven by loan growth, while liabilities rose to **$1.81 billion** and equity decreased to **$321.3 million** Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Total Assets** | **$2,127,504** | **$2,060,683** | | Cash and cash equivalents | $41,877 | $42,502 | | Securities (AFS & HTM) | $313,301 | $330,104 | | Loans receivable, net | $1,659,732 | $1,570,517 | | **Total Liabilities** | **$1,806,204** | **$1,728,485** | | Deposits | $1,416,321 | $1,343,320 | | Advances from FHLB | $343,000 | $339,500 | | **Total Shareholders' Equity** | **$321,300** | **$332,198** | [Consolidated Statements of Operations](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q2 2025, net loss improved to **$2.0 million** from **$2.3 million** year-over-year, driven by a **$2.1 million** increase in net interest income, with the six-month net loss narrowing to **$4.6 million** Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Interest Income | $23,438 | $21,292 | $46,151 | $42,134 | | Total Interest Expense | $11,798 | $11,719 | $23,767 | $23,144 | | **Net Interest Income** | **$11,640** | **$9,573** | **$22,384** | **$18,990** | | Provision for (release of) credit losses | $463 | $(762) | $664 | $(1,297) | | Total Non-interest Income | $405 | $536 | $799 | $987 | | Total Non-interest Expenses | $13,539 | $13,215 | $27,168 | $26,457 | | **Net Loss** | **$(1,957)** | **$(2,344)** | **$(4,649)** | **$(5,183)** | | **Diluted Loss Per Share** | **$(0.10)** | **$(0.11)** | **$(0.23)** | **$(0.24)** | [Consolidated Statements of Comprehensive Loss](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20LOSS) Comprehensive loss for Q2 2025 was **$2.4 million**, including a **$2.0 million** net loss and **$0.5 million** other comprehensive loss, resulting in a six-month comprehensive loss of **$4.2 million** Comprehensive Loss Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Loss | $(1,957) | $(2,344) | $(4,649) | $(5,183) | | Total Other Comprehensive (Loss) Income | $(473) | $292 | $409 | $1,997 | | **Comprehensive Loss** | **$(2,430)** | **$(2,052)** | **$(4,240)** | **$(3,186)** | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20SHAREHOLDERS'%20EQUITY) Shareholders' equity decreased from **$332.2 million** at year-end 2024 to **$321.3 million** at June 30, 2025, primarily due to a **$4.6 million** net loss and **$8.6 million** in treasury stock purchases - For the six months ended June 30, 2025, total shareholders' equity decreased by **$10.9 million**[19](index=19&type=chunk) - Key drivers of the decrease in equity were the net loss of **$4.6 million** and the repurchase of treasury stock totaling **$8.6 million**[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, cash and cash equivalents decreased by **$0.6 million**, with net cash used in operating and investing activities largely offset by financing activities driven by increased deposits Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(1,785) | $9,270 | | Net cash (used in) provided by investing activities | $(67,427) | $1,648 | | Net cash provided by financing activities | $68,587 | $3,319 | | **Net (decrease) increase in cash and cash equivalents** | **$(625)** | **$14,237** | [Notes to the Consolidated Financial Statements](index=10&type=section&id=NOTES%20TO%20THE%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The notes detail financial accounts and policies, including securities portfolio unrealized losses, loan portfolio growth to **$1.67 billion**, a **$13.3 million** allowance for credit losses, and **$426.0 million** in interest rate swaps - The securities portfolio includes available-for-sale securities with a fair value of **$284.2 million** and held-to-maturity securities with an amortized cost of **$29.1 million**, with unrealized losses primarily due to interest rate changes, not credit quality[33](index=33&type=chunk)[35](index=35&type=chunk)[46](index=46&type=chunk) Loan Portfolio Composition (in thousands) | Loan Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Residential | $519,370 | $518,243 | | Multifamily | $633,849 | $671,116 | | Commercial real estate | $293,179 | $259,633 | | Construction | $97,207 | $85,546 | | Consumer and other | $83,706 | $7,211 | | **Total Loans** | **$1,673,036** | **$1,583,482** | - The allowance for credit losses on loans was **$13.3 million** at June 30, 2025, up from **$13.0 million** at year-end 2024, with a provision of **$350 thousand** recorded for the first six months of 2025[76](index=76&type=chunk)[82](index=82&type=chunk) - The company uses interest rate swaps with a total notional amount of **$426.0 million** as of June 30, 2025, designated as cash flow hedges against FHLB advances and brokered deposits[118](index=118&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the company's financial performance, highlighting reduced net losses for Q2 and H1 2025 due to improved net interest income, alongside loan portfolio growth, deposit increases, and capital adequacy [Comparison of Operating Results](index=41&type=section&id=Comparison%20of%20Operating%20Results) Q2 2025 net loss improved to **$2.0 million** from **$2.3 million** year-over-year, driven by a **$2.1 million** increase in net interest income, despite higher credit loss provisions and non-interest expenses - Net interest income for Q2 2025 increased by **$2.1 million** year-over-year, with the net interest margin expanding by **32 basis points** to **2.28%**[166](index=166&type=chunk) - A provision for credit losses of **$463 thousand** was recorded in Q2 2025, compared to a **$762 thousand** release in Q2 2024, primarily due to growth in unfunded loan commitments and shifts in the loan portfolio composition[167](index=167&type=chunk) - Non-interest expense for Q2 2025 rose by **$324 thousand** year-over-year, driven by higher compensation, benefits, and data processing costs[169](index=169&type=chunk) [Comparison of Financial Condition](index=45&type=section&id=Comparison%20of%20Financial%20Condition) Total assets grew by **$66.8 million** to **$2.13 billion** by June 30, 2025, driven by **$89.6 million** loan growth and **$73.0 million** deposit increase, while equity decreased by **$10.9 million** - Gross loans increased by **$89.6 million** since year-end 2024, with significant growth in consumer loans (+$76.5 million) and commercial real estate loans (+$33.5 million)[188](index=188&type=chunk) - Total deposits grew by **$73.0 million**, or **5.4%**, since year-end 2024, supported by an increase in brokered deposits to **$225.0 million**[189](index=189&type=chunk) - Total shareholders' equity declined by **$10.9 million**, primarily due to the repurchase of shares at a cost of **$8.5 million** and the net loss for the period[192](index=192&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$256.1 million** in FHLB borrowing capacity, exceeding all regulatory capital requirements and remaining 'well capitalized' with a **13.51%** Tier 1 leverage ratio - Available borrowing capacity at June 30, 2025, included **$256.1 million** from the FHLB of New York, a **$110.3 million** line with the Federal Reserve, and a **$30.0 million** unsecured line with a correspondent bank[205](index=205&type=chunk) Bank Regulatory Capital Ratios as of June 30, 2025 | Ratio | Actual | Minimum for Well Capitalized | | :--- | :--- | :--- | | Common equity tier 1 | 18.11% | 6.50% | | Tier 1 capital | 18.11% | 8.00% | | Total capital | 18.98% | 10.00% | | Tier 1 (leverage) capital | 13.51% | 5.00% | [Quantitative and Qualitative Disclosure About Market Risk](index=46&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURE%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate risk, managed with **$426.0 million** in interest rate swaps, where a **100 basis point** rate increase would decrease Economic Value of Equity by **15.4%** - The company utilizes interest rate swaps to manage risk, with an aggregate notional amount of **$426 million** as of June 30, 2025[197](index=197&type=chunk) Net Interest Income Sensitivity Analysis (at June 30, 2025) | Change in Interest Rates (bps) | Change in NII (in thousands) | Percent Change | | :--- | :--- | :--- | | +200 | $1,309 | 2.5% | | +100 | $709 | 1.4% | | -100 | $907 | 1.7% | | -200 | $1,824 | 3.5% | Economic Value of Equity (EVE) Sensitivity Analysis (at June 30, 2025) | Change in Interest Rates (bps) | Change in EVE (in thousands) | Percent Change | | :--- | :--- | :--- | | +200 | $(68,059) | (30.9)% | | +100 | $(33,957) | (15.4)% | | -100 | $32,592 | 14.8% | | -200 | $66,292 | 30.1% | [Controls and Procedures](index=49&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[209](index=209&type=chunk) [PART II. OTHER INFORMATION](index=49&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=49&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is not currently involved in any material legal proceedings, and any normal course actions are not expected to materially affect its financial condition or operations - The Company is not engaged in any material legal proceedings at the present time[211](index=211&type=chunk) [Risk Factors](index=49&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes in risk factors have occurred since the last Annual Report on Form 10-K[212](index=212&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=50&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES.%20USE%20OF%20PROCEEDS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) During Q2 2025, the company repurchased **406,391 shares** at an average price of **$9.45** per share and authorized a new program to repurchase up to **1,082,533 additional shares** Share Repurchases for Quarter Ended June 30, 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April | 231,145 | $9.04 | | May | 165,842 | $10.04 | | June | 9,404 | $8.98 | | **Total** | **406,391** | **$9.45** | - On June 18, 2025, the Company adopted its sixth repurchase program to repurchase up to **1,082,533 shares**, or **5%** of its outstanding common stock[214](index=214&type=chunk) [Defaults Upon Senior Securities](index=50&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) Not applicable [Mine Safety Disclosures](index=50&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) Not applicable [Other Information](index=50&type=section&id=ITEM%205.%20OTHER%20INFORMATION) During Q2 2025, no directors or officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - No directors or officers adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company's securities under Rule 10b5-1(c) during Q2 2025[217](index=217&type=chunk) [Exhibits](index=51&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with or incorporated by reference into the Form 10-Q, including the company's certificate of incorporation, bylaws, and required certifications

Core Viewpoint - Blue Foundry Bancorp (BLFY) has shown a downtrend recently, losing 8.3% over the past four weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting that bulls may be gaining control [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that the stock opened lower, made a new low, but closed near or above the opening price, reflecting buying interest [4][5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for BLFY, which is a bullish indicator, as it typically leads to price appreciation [7]. - The consensus EPS estimate for the current year has increased by 7.1% over the last 30 days, indicating strong agreement among analysts regarding the company's improved earnings potential [8]. Zacks Rank - BLFY currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [9][10]. - A Zacks Rank of 2 is a strong indicator of a potential trend reversal, as it reflects improving company prospects [10].

Financial Data and Key Metrics Changes - The company reported a net loss of $2,000,000 or $0.10 per diluted share, which is an improvement of $735,000 compared to the prior quarter [3][9] - Net interest income increased by $896,000 or 8.3%, driven by a 12 basis point expansion in the net interest margin [9][10] - Tangible book value per share increased to $14.87, up $0.06 from the prior quarter [7] Business Line Data and Key Metrics Changes - Core deposits grew by approximately 4%, contributing to a total deposit increase of $29,000,000 or 2% [5][13] - Loan production year-to-date totaled $180,000,000, with $90,000,000 produced during the second quarter at a weighted average yield of approximately 7% [5] - The company achieved approximately 3% loan growth during the quarter, with a notable increase in commercial and industrial loans by $22,000,000 [5][12] Market Data and Key Metrics Changes - The cost of deposits decreased by 13 basis points, contributing to a 12 basis point expansion in the net interest margin [5][10] - Nonperforming assets increased slightly, with nonperforming loans to total loans rising by three basis points, remaining low at 38 basis points [14] Company Strategy and Development Direction - The company is focused on portfolio diversification, prioritizing asset classes that deliver higher yields and better risk-adjusted returns [6] - There is a strategic emphasis on deepening client engagement in a competitive market, particularly with commercial customers [13][38] - The company aims to enhance shareholder value through disciplined capital management, including share repurchases [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained momentum across lending and deposit fronts, expecting continued balance sheet and income growth [8] - The company anticipates limited expansion in net interest margin in the second half of the year, with more significant improvements expected in 2026 [24][28] Other Important Information - The company repurchased 406,000 shares at a weighted average price of $9.42, which is a significant discount to its tangible book value [7] - The allowance for credit losses to total loans decreased slightly to 80 basis points, indicating strong asset quality [14] Q&A Session Summary Question: Loan repricing and volume expectations for 2026 - Management indicated that significant loan repricing is expected in 2026, with $75,000,000 at a rate of $3.75 due to reprice [20] Question: CD pricing opportunities - Management noted that the pricing opportunity for CDs has largely run its course, and lower rates would be needed to see funding costs move appreciably lower [22] Question: Consumer loan portfolio expansion - Management is comfortable increasing the consumer loan portfolio from 5% to about 7-8% over the next couple of quarters [25] Question: Asset generation and noninterest-bearing deposits - The company is focusing on enhancing relationships with borrowers across various asset classes to grow noninterest-bearing deposits [38]