[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].

Core Viewpoint - Blue Foundry Bancorp will release its financial results for the second quarter of 2025 on July 30, 2025, and will hold a conference call to discuss these results with investors and analysts [1][2]. Group 1: Financial Results Announcement - The financial results for the quarter ended June 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 July 30, 2025, at 11:00 AM (ET) to discuss the earnings [2]. Group 2: Conference Call Details - Participants are encouraged to pre-register for the webcast call to receive confirmation and calendar invitations [3]. - Dial-in options are available for those unable to join via webcast, with specific numbers provided for both U.S. and international participants [4]. Group 3: 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 focuses on providing tailored products and services to individuals and businesses, emphasizing its commitment to customers and communities [4].

Core Viewpoint - Blue Foundry Bancorp has authorized a sixth stock repurchase program to buy back up to 1,082,533 shares, representing approximately 5% of its outstanding common stock, which commenced on June 20, 2025 [1] Group 1: Stock Repurchase Program - The company has repurchased a total of 7,798,723 shares, or 27.3% of its common shares, since the first program was announced on July 20, 2022, at a weighted average price of $10.09 [2] - The new repurchase program allows for shares to be bought back in open market or private transactions, and the timing and amount of repurchases will depend on various factors including market conditions and the company's financial performance [3] Group 2: Management Commentary - The President and CEO of the company expressed satisfaction with the new repurchase program, highlighting the success of previous programs that allowed for share repurchases at a significant discount to tangible book value, which was $14.81 per share as of March 31, 2025 [4][2] - The CEO emphasized that share repurchases are a prudent use of capital and reflect the company's strong capital position [4] Group 3: Company Overview - Blue Foundry Bancorp is the holding company for Blue Foundry Bank, which serves various counties in New Jersey and offers tailored products and services to individuals and businesses [5] - The bank has a rich history of over 145 years and is committed to its customers and communities [5]

Financial Performance - The Company recorded a net loss of $2.7 million for Q1 2025, compared to a net loss of $2.8 million for Q1 2024, indicating a slight improvement [149]. - Non-interest income decreased by $57 thousand, or 12.6%, to $394 thousand in Q1 2025, primarily due to the absence of a gain on loan sales that occurred in the previous year [154]. - Non-interest expense increased by $387 thousand to $13.6 million in Q1 2025, driven by higher compensation and benefits expenses [155]. Interest Income and Loans - Interest income increased by $1.9 million, or 9.0%, to $22.7 million in Q1 2025, driven by higher rates on interest-earning assets [150]. - Net interest income rose to $10.7 million in Q1 2025, up from $9.4 million in Q1 2024, with a net interest rate spread of 1.62% and a net interest margin of 2.16% [152][159]. - The provision for credit losses was $201 thousand in Q1 2025, compared to a release of $535 thousand in Q1 2024, reflecting an increase in loan balances [153]. - Gross loans held for investment rose by $42.2 million to $1.63 billion at March 31, 2025, with notable increases in consumer and commercial real estate loans [162]. - Total loans increased to $1.625 billion at March 31, 2025, up from $1.583 billion at December 31, 2024, representing a growth of 2.7% [163]. Assets and Deposits - Total assets increased to $2.09 billion at March 31, 2025, from $2.06 billion at December 31, 2024 [160]. - Cash and cash equivalents increased by $3.7 million, or 9%, to $46.2 million at March 31, 2025 [160]. - Total deposits reached $1.39 billion at March 31, 2025, an increase of $43.9 million, or 3.3%, from December 31, 2024 [164]. - Core deposits accounted for 47.6% of total deposits at March 31, 2025, compared to 47.3% at December 31, 2024 [164]. Non-Performing Assets and Equity - Total non-performing assets rose to $5.723 million at March 31, 2025, compared to $5.104 million at December 31, 2024 [163]. - Total shareholders' equity decreased by $5.5 million, or 1.7%, to $326.7 million at March 31, 2025, primarily due to share repurchases [166]. Capital and Regulatory Compliance - The bank was considered "well capitalized" under regulatory guidelines as of March 31, 2025, exceeding all applicable regulatory capital requirements [181]. - Common equity tier 1 capital as of March 31, 2025, is $287,537 thousand, representing a ratio of 18.58% [182]. - Total capital as of March 31, 2025, is $300,942 thousand, with a ratio of 19.45% [182]. - Tier 1 capital as of March 31, 2025, stands at $287,537 thousand, with a ratio of 18.58% [182]. - The capital buffer for common equity tier 1 as of March 31, 2025, is $108,302 thousand, exceeding the minimum requirement of 7.00% [182]. - The total capital ratio as of March 31, 2025, exceeds the minimum requirement of 10.50% by reaching 19.45% [182]. - The leverage ratio for tier 1 capital as of March 31, 2025, is 13.73%, above the minimum requirement of 4.00% [182]. Interest Rate Risk - Estimated changes in net interest income indicate a potential increase of $1,682 thousand, or 3.4%, with a 200 basis point increase in interest rates [174]. - The estimated economic value of equity (EVE) would decrease by 33.1% with a 200 basis point increase in interest rates, indicating significant interest rate risk exposure [175].

Financial Data and Key Metrics Changes - The company reported a net loss of $2.7 million or 13¢ per diluted share for the first quarter, similar to the prior quarter [8] - Net interest income increased by $1.3 million or 13.4%, driven by a 27 basis point expansion in net interest margin [8][9] - Tangible book value per share increased to $14.81, up 7¢ from the prior quarter [6] Business Line Data and Key Metrics Changes - Loan production totaled $90 million during the quarter with a weighted average yield of approximately 7.1% [5] - The company achieved 3% loan growth while improving the yield on the loan portfolio by 15 basis points [4] - The growth in commercial real estate loans, particularly owner-occupied properties, and construction lending reflects the company's strategy to support local businesses [5][6] Market Data and Key Metrics Changes - Deposits increased by $43.9 million or 3.2%, with core deposit count growing by $24.4 million or 3.8% [12][13] - The company maintains a strong liquidity position with $413 million in untapped borrowing capacity [7] Company Strategy and Development Direction - The strategic priorities for 2025 focus on driving loan growth, maintaining strong credit quality, and diversifying low-cost funding sources [3] - The company is emphasizing asset classes that deliver higher yield and better risk-adjusted returns [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of lending and deposit gathering activities despite reporting a net loss [4] - The company expects additional margin expansion of about 5 to 10 basis points in the second quarter [16] Other Important Information - The company repurchased 464,000 shares at a weighted average price of $9.52, enhancing shareholder value [6][7] - Nonperforming assets increased slightly but remain low at 27 basis points of total assets [14] Q&A Session Summary Question: Margin for the quarter - Management expects margin expansion of about 5 to 10 basis points in the second quarter [16] Question: Loan maturities and resets - Approximately $220 million in loans will mature or reprice within 2025, with yields just shy of 7% [17] Question: Deposit side and CD book - The current cost of CDs is $4.11, with room to lower rates as they transition to core deposits [19][20] Question: Unsecured consumer loans - The yield on unsecured consumer loans is around 7%, and they come with credit reserves [21][23] Question: Future loan purchases - The company may purchase additional loans to augment organic growth but does not plan to rely heavily on this strategy long-term [24] Question: Buyback program - The company plans to continue executing the share buyback program while being mindful of capital deployment [49][52]

Financial Data and Key Metrics Changes - The company reported a net loss of $2.7 million or 13¢ per diluted share for Q1 2025, similar to the prior quarter, but showed a meaningful improvement in net interest income [9][10] - Net interest income increased by $1.3 million or 13.4%, driven by a 27 basis point expansion in net interest margin [9][10] - Tangible book value per share increased to $14.81, up 7¢ from the prior quarter [6] Business Line Data and Key Metrics Changes - Loan production totaled $90 million during the quarter with a weighted average yield of approximately 7.1% [5] - The company achieved 3% loan growth, with $44 million in deposit growth and a 14 basis point reduction in the cost of deposits [4] - The loan portfolio included $33 million in commercial real estate loans, $9 million in residential mortgages, and $7 million in construction loans [5] Market Data and Key Metrics Changes - Deposits increased by $43.9 million or 3.2%, with core deposit count growing by $24.4 million or 3.8% [13][14] - The company maintained a strong liquidity position with $413 million in untapped borrowing capacity and $28 million in liquidity from unencumbered available-for-sale securities and unrestricted cash [7] Company Strategy and Development Direction - The strategic priorities for 2025 focus on driving loan growth, maintaining strong credit quality, and diversifying low-cost funding sources [3] - The company is emphasizing higher-yielding asset classes and portfolio diversification to enhance earnings and long-term franchise value [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of lending and deposit gathering activities, despite reporting a net loss [4] - The company expects additional margin expansion of 5 to 10 basis points in the second quarter [18] - Management highlighted the importance of maintaining expense discipline while anticipating operating expenses to remain in the high $13 million to low $14 million range [11] Other Important Information - The company repurchased 464,000 shares at a weighted average price of $9.52, enhancing shareholder value [6] - Nonperforming assets increased slightly but remain low at 27 basis points of total assets [15] Q&A Session Summary Question: Margin for the quarter - Management expects margin expansion of 5 to 10 basis points in the second quarter [18] Question: Loan maturities and resets - Approximately $220 million in loans will mature or reprice within 2025, with yields just shy of 7% [19] Question: Deposit rates and margin expansion - The company has room to lower rates on core deposits as they transition from CDs [21] Question: Unsecured consumer loans - The yield on unsecured consumer loans is around 7%, and they come with credit reserves [24] Question: Future loan purchases - The company will consider additional loan purchases to augment organic growth but does not have a set cap on this strategy [26] Question: Expense outlook - Additional bankers may be hired to support organic loan growth, impacting expenses [41] Question: Share buyback program - The company plans to continue executing the share buyback program while being mindful of capital deployment [53]

Financial Performance - Blue Foundry Bancorp reported a net loss of $2.7 million, or $0.13 per diluted common share, for Q1 2025, consistent with the previous quarter and a slight improvement from a net loss of $2.8 million in Q1 2024[2]. - Basic loss per share for the first quarter of 2025 was $(0.13), consistent with the loss per share reported in the same quarter of 2024[33]. - The company reported a net loss of $2,692 thousand for the first quarter of 2025, slightly higher than the loss of $2,687 thousand in the same quarter of 2024[33]. Interest Income and Margin - The net interest margin increased by 27 basis points to 2.16%, driven by improved yields on assets and reduced costs of liabilities[3]. - Net interest income for the three months ended March 31, 2025, was $10,744 thousand, an increase of 13.5% compared to $9,473 thousand for the same period in 2024[33]. - The net interest margin improved to 2.16% for the first quarter of 2025, compared to 1.89% in the previous quarter[35]. - The net interest margin for Q1 2025 was 2.16%, an increase from 1.89% in Q4 2024[38]. - The net interest rate spread improved to 1.62% in Q1 2025 from 1.40% in Q4 2024[39]. Loan and Deposit Growth - Total loans increased by $42.2 million to $1.63 billion, with significant growth in the commercial real estate and consumer loan portfolios[5]. - Deposits rose by $43.9 million to $1.39 billion, reflecting a 3.27% increase from the previous quarter, primarily due to growth in NOW and demand accounts[8]. - Core deposits increased to $660,333,000, representing 47.6% of total deposits, up from 47.3% in the previous quarter[44]. - Average loan balances increased to $1,601,262,000 with a yield of 4.72% in Q1 2025, up from $1,557,342,000 and 4.57% in Q4 2024[38]. - Total interest-earning assets rose to $2,015,547,000 with a yield of 4.51% in Q1 2025, compared to $1,992,805,000 and 4.37% in Q4 2024[38]. Asset and Liability Management - Total assets increased to $2,092,206 thousand as of March 31, 2025, up from $2,060,683 thousand at December 31, 2024, representing a growth of 1.6%[30]. - Total liabilities increased to $1,765,543 thousand as of March 31, 2025, compared to $1,728,485 thousand at December 31, 2024, reflecting a rise of 2.1%[30]. - Shareholders' equity decreased to $326,663 thousand as of March 31, 2025, down from $332,198 thousand at December 31, 2024[30]. - The tangible book value per share increased to $14.81, while shareholders' equity decreased by $5.5 million to $326.7 million due to share repurchases[21]. - Brokered deposits increased to $205.0 million, up from $155.0 million at the end of Q4 2024, supplementing the reduction in retail time deposits[21]. Credit Quality - The allowance for credit losses on loans was 0.81% of gross loans, with a provision for credit losses of $201 thousand recorded in Q1 2025[21]. - Non-performing loans totaled $5.7 million, or 0.35% of total loans, compared to $5.1 million, or 0.33% at the end of Q4 2024[21]. - Non-performing loans amounted to $5,723 thousand, representing 0.35% of total loans as of March 31, 2025, compared to 0.33% as of December 31, 2024[35]. - The provision for credit losses was $201 thousand for the first quarter of 2025, compared to a release of $301 thousand in the same quarter of 2024[33]. Operational Efficiency - The efficiency ratio improved to 122.36% for the first quarter of 2025, down from 130.20% in the previous quarter[35]. - The efficiency ratio improved to 122.4% in Q1 2025 from 130.2% in Q4 2024, indicating better operational efficiency[44].

Core Points - Blue Foundry Bancorp reported a net loss of $2.7 million, or $0.13 per diluted common share, for Q1 2025, consistent with the previous quarter and slightly improved from a net loss of $2.8 million in Q1 2024 [1][34]. Financial Performance - The net interest margin increased by 27 basis points to 2.16%, driven by improved yields on assets and reduced costs of liabilities [2][12]. - Interest income for the quarter was $22.7 million, up by $928 thousand, or 4.3%, compared to the previous quarter [6]. - Interest expense decreased by $343 thousand, or 2.8%, to $12.0 million compared to the linked quarter [6]. Loan and Deposit Growth - Total loans increased by $42.2 million to $1.63 billion, with significant growth in commercial real estate and consumer portfolios [4][22]. - Deposits rose by $43.9 million to $1.39 billion, with increases in NOW and demand accounts and time deposits [7][22]. Asset Quality - The non-performing asset ratio was 0.27%, with non-performing loans totaling $5.7 million, or 0.35% of total loans [28][36]. - The allowance for credit losses on loans was 0.81% of gross loans, with a provision for credit losses of $201 thousand recorded for Q1 2025 [28][36]. Capital Position - Tangible book value per share increased to $14.81, and the company maintained a strong capital position [2][28]. - Shareholders' equity decreased by $5.5 million to $326.7 million, primarily due to share repurchases [28].

Core Points - Blue Foundry Bancorp reported a net loss of $2.7 million for Q1 2025, consistent with the previous quarter and slightly improved from a loss of $2.8 million in Q1 2024 [1][6][35] - The company experienced a 27 basis points increase in net interest margin, reaching 2.16%, driven by improved yields on assets and reduced costs of liabilities [2][12] - Total loans increased by $42.2 million to $1.63 billion, with significant growth in commercial real estate and consumer loan portfolios [4][22] - Deposits rose by $43.9 million to $1.39 billion, with a notable increase in NOW and demand accounts [6][7][22] Financial Performance - Interest income for Q1 2025 was $22.7 million, a 4.3% increase from the previous quarter, while interest expense decreased by 2.8% to $12.0 million [6][12] - The provision for credit losses was $201 thousand, reflecting an increase in the commercial real estate portfolio [6][29] - Non-performing loans totaled $5.7 million, representing 0.35% of total loans, an increase from 0.33% in the previous quarter [29][36] Loan and Deposit Details - The consumer loan portfolio increased by $34.3 million, while the commercial real estate portfolio grew by $28.5 million [4][22] - Core deposits accounted for 47.6% of total deposits, slightly up from 47.3% at the end of 2024 [22] - Brokered deposits increased to $205 million, supplementing the reduction in retail time deposits [22] Capital and Asset Quality - Tangible book value per share increased to $14.81, while shareholders' equity decreased to $326.7 million due to share repurchases and year-to-date losses [2][22] - The allowance for credit losses on loans was 0.81%, with a coverage ratio of 229.81% for non-performing loans [29][36] - The company's capital ratios remain above the FDIC's "well capitalized" standards [23]