Blue Foundry Bancorp(US:BLFY)2025-11-13 21:49Financial 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].