Blue Foundry Bancorp(US:BLFY)2025-10-29 14:12Financial 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].