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]

[Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) The company reported a net loss of **$2.0 million** and diluted loss per share of **$0.10**, while net interest margin expanded to **2.28%** and total loans and deposits grew | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Net Loss** | $2.0 million | $2.7 million | $2.3 million | | **Diluted Loss Per Share** | $0.10 | $0.13 | $0.11 | | **Net Interest Margin** | 2.28% | 2.16% | 1.96% | | **Total Loans** | $1.67 billion | $1.63 billion | $1.55 billion | | **Total Deposits** | $1.42 billion | $1.39 billion | $1.31 billion | - Management highlighted continued improvement driven by **net interest margin expansion**, stable expenses, and strong credit metrics, with margin expansion attributed to **better asset yields** and **lower liability costs**[3](index=3&type=chunk) - The company is executing a strategy to diversify its loan portfolio towards **higher-yield assets** and grow **core deposits** by focusing on full banking relationships with commercial customers[3](index=3&type=chunk) - During the quarter, the company repurchased **406,391 shares** at a weighted average price of **$9.42 per share** and commenced a new stock repurchase program for up to **1,082,533 shares**[6](index=6&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) This section analyzes the company's financial performance across quarterly and year-to-date periods, highlighting trends in net interest income, expenses, and profitability [Second Quarter 2025 vs. First Quarter 2025 (QoQ)](index=2&type=section&id=Second%20quarter%20of%202025%20compared%20to%20the%20first%20quarter%20of%202025) Net loss narrowed to **$2.0 million** from **$2.7 million** quarter-over-quarter, driven by a **12 basis point expansion** in net interest margin to **2.28%** due to improved asset yields and lower liability costs | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | **Net Interest Income** | $11.6M | $10.7M | +$0.9M | | **Net Interest Margin** | 2.28% | 2.16% | +12 bps | | **Yield on Avg. Earning Assets** | 4.58% | 4.51% | +7 bps | | **Cost of Avg. Interest-Bearing Liabilities** | 2.76% | 2.89% | -13 bps | - Non-interest expense decreased by **$90 thousand**, primarily due to a **$94 thousand reduction** in seasonal occupancy and equipment costs from the first quarter[11](index=11&type=chunk) - No income tax benefit was recorded for the net loss due to a **full valuation allowance** on the company's deferred tax assets[15](index=15&type=chunk) [Second Quarter 2025 vs. Second Quarter 2024 (YoY)](index=3&type=section&id=Second%20quarter%20of%202025%20compared%20to%20the%20second%20quarter%20of%202024) Compared to the same period last year, net loss slightly decreased from **$2.3 million** to **$2.0 million**, bolstered by a **$2.0 million increase** in net interest income and a **32 basis point expansion** in net interest margin, despite rising non-interest expenses | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Interest Income** | $11.6M | $9.6M | +$2.0M | | **Net Interest Margin** | 2.28% | 1.96% | +32 bps | | **Yield on Avg. Earning Assets** | 4.58% | 4.37% | +21 bps | | **Cost of Avg. Interest-Bearing Liabilities** | 2.76% | 2.94% | -18 bps | - Non-interest expense increased by **$324 thousand** year-over-year, driven by rises in **compensation and benefits ($185k)**, **data processing ($133k)**, and **advertising ($88k)**[13](index=13&type=chunk) [Six Months 2025 vs. Six Months 2024 (YTD)](index=3&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20compared%20to%20the%20six%20months%20ended%20June%2030%2C%202024) For the first six months of 2025, net interest income grew by **$3.4 million** to **$22.4 million**, with net interest margin increasing by **28 basis points** to **2.22%**, while non-interest income fell and non-interest expenses rose | Metric | 6 Months 2025 | 6 Months 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Interest Income** | $22.4M | $19.0M | +$3.4M | | **Net Interest Margin** | 2.22% | 1.94% | +28 bps | | **Yield on Avg. Earning Assets** | 4.55% | 4.30% | +25 bps | | **Cost of Avg. Interest-Bearing Liabilities** | 2.82% | 2.89% | -7 bps | - Non-interest income decreased by **$188 thousand** primarily because of gains on the sale of loans and REO property that occurred in the first half of 2024[14](index=14&type=chunk) - Non-interest expense for the six-month period rose by **$711 thousand**, mainly due to increases in **compensation and benefits ($474k)** and **data processing ($233k)**[21](index=21&type=chunk) [Balance Sheet Analysis (as of June 30, 2025)](index=1&type=section&id=Balance%20Sheet%20Analysis) This section analyzes the company's balance sheet, detailing changes in assets, liabilities, and capital, along with an assessment of asset quality [Assets](index=1&type=section&id=Assets) Total loans grew by **$89.6 million** in the first six months of 2025 to **$1.67 billion**, reflecting a strategic shift towards higher-yielding consumer and commercial loans, partially offset by a decrease in multifamily portfolio and securities | Loan Portfolio (in thousands) | June 30, 2025 | Dec 31, 2024 | Change YTD | | :--- | :--- | :--- | :--- | | Consumer and other | $83,706 | $7,211 | +$76,495 | | Commercial real estate | $293,179 | $259,633 | +$33,546 | | Construction | $97,207 | $85,546 | +$11,661 | | Multifamily | $633,849 | $671,116 | -$37,267 | | **Total Loans** | **$1,673,036** | **$1,583,482** | **+$89,554** | - The company is actively diversifying its loan portfolio, purchasing **$80.4 million in consumer loans** and **$25.5 million in residential loans** during the first half of 2025[5](index=5&type=chunk)[22](index=22&type=chunk) - Securities available-for-sale decreased by **$12.8 million** and securities held-to-maturity decreased by **$4.0 million** since year-end 2024 due to maturities, calls, and pay downs[17](index=17&type=chunk)[18](index=18&type=chunk) [Liabilities](index=2&type=section&id=Liabilities) Total deposits increased by **$73.0 million** in the first half of 2025 to **$1.42 billion**, driven by growth in NOW and demand accounts and time deposits, including brokered deposits, with uninsured deposits at a low **12%** | Deposit Portfolio (in thousands) | June 30, 2025 | Dec 31, 2024 | Change YTD | | :--- | :--- | :--- | :--- | | NOW and demand accounts | $431,485 | $369,554 | +$61,931 | | Time deposits | $730,778 | $707,339 | +$23,439 | | Savings | $228,897 | $240,426 | -$11,529 | | **Total Deposits** | **$1,416,321** | **$1,343,320** | **+$73,001** | - Core deposits grew by **$49.6 million** year-to-date, representing **48.4% of total deposits**, with the company's strategy focusing on attracting full banking relationships from small-to-medium-sized businesses[8](index=8&type=chunk)[22](index=22&type=chunk) - FHLB borrowings increased slightly by **$3.5 million** to **$343.0 million**, while the company maintains significant additional borrowing capacity of **$256.1 million** at the FHLB and **$110.3 million** at the Federal Reserve Bank[22](index=22&type=chunk) [Capital and Asset Quality](index=5&type=section&id=Capital%20and%20Asset%20Quality) Shareholders' equity declined by **$10.9 million** to **$321.3 million** since year-end, primarily due to **$8.5 million** in share repurchases, while capital ratios remain above 'well capitalized' standards and asset quality is strong with non-performing loans at **0.38%** - The decrease in shareholders' equity was primarily driven by the repurchase of shares at a cost of **$8.5 million** and the year-to-date net loss[27](index=27&type=chunk) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Non-performing loans / Total loans** | 0.38% | 0.33% | | **Allowance for credit losses / Gross loans** | 0.80% | 0.83% | | **Allowance / Non-performing loans** | 211.81% | 254.02% | | **Tangible book value per share** | $14.87 | $14.74 | - The provision for credit losses was **$463 thousand** for the quarter, mainly driven by an increase in the provision for off-balance-sheet commitments and shifts in the loan portfolio composition[27](index=27&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial statements, including the balance sheet, income statement, key financial highlights, and a detailed analysis of net interest income [Consolidated Statements of Financial Condition](index=7&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) As of June 30, 2025, total assets were **$2.13 billion**, supported by **$1.66 billion** in net loans, with total liabilities at **$1.81 billion** mainly from **$1.42 billion** in deposits and **$343 million** in FHLB advances, and total shareholders' equity at **$321.3 million** Consolidated Balance Sheet (in thousands) | | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$2,127,504** | **$2,060,683** | | Loans, net | $1,659,732 | $1,570,517 | | Securities (AFS & HTM) | $313,301 | $330,104 | | Cash and cash equivalents | $41,877 | $42,502 | | **Total Liabilities** | **$1,806,204** | **$1,728,485** | | Deposits | $1,416,321 | $1,343,320 | | FHLB Advances | $343,000 | $339,500 | | **Shareholders' Equity** | **$321,300** | **$332,198** | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, the company reported **$11.6 million** in net interest income, a **$463 thousand** provision for credit losses, and **$13.5 million** in non-interest expenses, resulting in a net loss of **$2.0 million**, or **$0.10** per diluted share Consolidated Income Statement (in thousands) | | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $11,640 | $10,744 | $9,573 | | Provision for credit losses | $463 | $201 | ($762) | | Non-interest income | $405 | $394 | $536 | | Non-interest expense | $13,539 | $13,629 | $13,215 | | **Net Loss** | **($1,957)** | **($2,692)** | **($2,344)** | | **Diluted Loss Per Share** | **($0.10)** | **($0.13)** | **($0.11)** | [Consolidated Financial Highlights](index=9&type=section&id=Consolidated%20Financial%20Highlights) This section presents key performance and asset quality ratios over the past five quarters, highlighting the steady improvement in net interest margin to **2.28%** and strong asset quality with non-performing loans at **0.38%** Performance Ratios (%) | Ratio | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net interest margin | 2.28 | 2.16 | 1.96 | | Efficiency ratio | 112.40 | 122.36 | 130.73 | | Loss on average assets | (0.37) | (0.53) | (0.47) | Asset Quality Ratios (%) | Ratio | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Non-performing loans to total loans | 0.38 | 0.35 | 0.40 | | Allowance for credit losses to total loans | 0.80 | 0.81 | 0.84 | [Analysis of Net Interest Income](index=10&type=section&id=Analysis%20of%20Net%20Interest%20Income) This detailed analysis breaks down net interest income components, showing an average yield on interest-earning assets of **4.58%** and an average cost of interest-bearing liabilities of **2.76%** for Q2 2025, resulting in a net interest spread of **1.82%** Quarterly Net Interest Margin Analysis | | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Avg. Yield on Earning Assets** | **4.58%** | **4.51%** | **4.37%** | | Avg. Yield on Loans | 4.80% | 4.72% | 4.56% | | **Avg. Cost of Int-Bearing Liabilities** | **2.76%** | **2.89%** | **2.94%** | | Avg. Cost of Deposits | 2.62% | 2.75% | 2.90% | | **Net Interest Rate Spread** | **1.82%** | **1.62%** | **1.43%** | | **Net Interest Margin** | **2.28%** | **2.16%** | **1.96%** | [Supplemental Information](index=12&type=section&id=Supplemental%20Information%20-%20Non-GAAP%20Financial%20Measures) This section provides additional financial details, including reconciliations for non-GAAP financial measures such as tangible book value per share and core deposits [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations for non-GAAP metrics, including tangible book value per share which increased to **$14.87** and core deposits comprising **48.4%** of total deposits, with a pre-provision net loss of **$1.5 million** for the quarter Tangible Book Value Per Share Calculation (in thousands) | | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Shareholders' equity | $321,300 | $326,663 | | Less: intangible assets | $134 | $189 | | **Tangible equity** | **$321,166** | **$326,474** | | Shares outstanding | 21,591,757 | 22,047,649 | | **Tangible book value per share** | **$14.87** | **$14.81** | - Core deposits, defined as total deposits less time deposits, were **$685.5 million**, representing **48.4% of total deposits** as of June 30, 2025[49](index=49&type=chunk)

Core Viewpoint - Blue Foundry Bancorp reported a net loss of $2.0 million for Q2 2025, showing improvement compared to previous quarters, with a focus on net interest margin expansion and credit metrics stability [1][2]. Financial Performance - The net loss for Q2 2025 was $2.0 million, or $0.10 per diluted common share, compared to a loss of $2.7 million in Q1 2025 and $2.3 million in Q2 2024 [1]. - Net interest income for Q2 2025 was $11.6 million, an increase from $10.7 million in Q1 2025 and $9.6 million in Q2 2024 [11][17]. - The net interest margin increased by 12 basis points to 2.28% compared to Q1 2025 and by 32 basis points compared to Q2 2024 [11][17]. Loan Portfolio - Total loans increased by $89.6 million to $1.67 billion during the first half of 2025, with significant growth in consumer loans ($76.5 million) and commercial real estate loans ($33.5 million) [4][26]. - The multifamily loan portfolio decreased by $37.3 million [4][26]. - The allowance for credit losses was 0.80% of gross loans as of June 30, 2025, with non-performing loans totaling $6.3 million, or 0.38% of total loans [31][39]. Deposit Growth - Total deposits increased by $73.0 million to $1.42 billion since December 31, 2024, driven by increases in NOW and demand accounts and time deposits [7][26]. - Core deposits increased by $49.6 million, representing 48.4% of total deposits as of June 30, 2025 [7][26]. - Brokered deposits rose to $225.0 million from $155.0 million at the end of 2024 [26]. Non-Interest Expenses - Non-interest expenses decreased by $90 thousand compared to Q1 2025, primarily due to lower occupancy and equipment costs [10]. - Non-interest expenses for Q2 2025 were $13.5 million, an increase from $13.2 million in Q2 2024, driven by higher compensation and benefits expenses [13]. Capital and Shareholder Equity - Shareholders' equity was $321.3 million as of June 30, 2025, a decrease of $10.9 million from December 31, 2024, mainly due to share repurchases [26]. - The tangible equity to tangible assets ratio was 15.10% [26][39]. Market Strategy - The company is focusing on diversifying its loan portfolio and attracting full banking relationships with small- to medium-sized businesses [2][7]. - The strategy has contributed to core deposit growth, particularly among commercial customers [2].