RUTHERFORD, N.J., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Blue Foundry Bancorp (NASDAQ:BLFY) (the "Company"), the holding company for Blue Foundry Bank (the "Bank"), today reported a net loss of $1.9 million, or $0.10 per diluted common share, for the three months ended September 30, 2025, compared to net loss of $2.0 million, or $0.10 per diluted common share, for the three months ended June 30, 2025, and a net loss of $4.0 million, or $0.19 per diluted common share, for the three months ended September 30, 2024.
James D. Nesci, President and Chief Executive Officer, commented, "During the third quarter, we experienced expansion in our net interest margin due to improvements in both yield on assets and cost of funds. Our strategy of focusing on obtaining the full banking relationship, coupled with diversifying our loan portfolio with an emphasis on asset classes that provide higher yields and better risk-adjusted returns, will position us well for continued balance sheet and interest income growth."
Mr. Nesci further noted, "We remain committed to enhancing shareholder value. This quarter, tangible book value exceeded $15 per share. As our profitability slowly continues to improve, we expect market valuation to follow."
Highlights for the third quarter of 2025:
- Loans increased $41.9 million to $1.71 billion compared to the linked quarter.
- Deposits increased $77.1 million to $1.49 billion compared to the linked quarter. Core deposits increased by $18.6 million compared to the linked quarter.
- Net interest margin increased six basis points to 2.34% compared to the linked quarter.
- Interest income for the quarter was $24.1 million, an increase of $693 thousand, or 3.0%, compared to the linked quarter.
- Interest expense for the quarter was $11.9 million, an increase of $142 thousand compared to the linked quarter.
- Provision for credit losses of $589 thousand was primarily due to the increase in the provision for loans.
- Book value per share and tangible book value per share were $15.14, respectively. See the "Supplemental Information - Non-GAAP Financial Measures" tables below for additional information regarding our non-GAAP measures.
- 837,388 shares were repurchased during the quarter at a weighted average share price of $9.09 per share. 500,000 of the shares repurchased were part of a private transaction executed at a slight discount to the market prices at the time.
Loans
During the first nine months of 2025, loans increased by $131.4 million. The Company continues to focus on diversifying its lending portfolio. During the first nine months of 2025, we purchased unsecured consumer loans with credit reserves, which is cash collateral held at the Bank. Management has determined the collateral to be sufficient to cover any expected losses in the loan pools. These loans have helped improve yields while having lower exposure to credit loss. As a result of the purchases, the consumer loan portfolio increased by $114.5 million during the first nine months of 2025. In addition, the commercial real estate portfolio increased by $57.4 million, of which $46.3 million was in owner-occupied properties, and the commercial and industrial portfolio increased $8.0 million. The construction and multifamily portfolios decreased by $25.0 million and $23.8 million, respectively, during the nine months ended September 30, 2025.
The details of the loan portfolio are below:
| September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | |||||||||||
| (In thousands) | |||||||||||||||
| Residential | $ | 514,263 | $ | 519,370 | $ | 512,793 | $ | 518,243 | $ | 516,754 | |||||
| Multifamily | 647,269 | 633,849 | 645,399 | 671,116 | 666,304 | ||||||||||
| Commercial real estate | 317,079 | 293,179 | 288,151 | 259,633 | 241,711 | ||||||||||
| Construction | 60,543 | 97,207 | 92,813 | 85,546 | 80,081 | ||||||||||
| Junior liens | 29,694 | 27,996 | 26,902 | 25,422 | 24,174 | ||||||||||
| Commercial and industrial | 24,315 | 17,729 | 18,079 | 16,311 | 14,228 | ||||||||||
| Consumer and other | 121,752 | 83,706 | 41,518 | 7,211 | 7,731 | ||||||||||
| Total loans | 1,714,915 | 1,673,036 | 1,625,655 | 1,583,482 | 1,550,983 | ||||||||||
| Less: Allowance for credit losses | 13,834 | 13,304 | 13,152 | 12,965 | 13,012 | ||||||||||
| Loans receivable, net | $ | 1,701,081 | $ | 1,659,732 | $ | 1,612,503 | $ | 1,570,517 | $ | 1,537,971 | |||||
Deposits
At September 30, 2025, deposits totaled $1.49 billion, an increase of $150.1 million, or 11.17%, from December 31, 2024. This change was driven by increases of $87.5 million in NOW and demand accounts and $81.9 million in time deposits, partially offset by a decrease in savings accounts of $18.3 million. The Company's strategy is to focus on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products. Despite strong competition for deposits in the northern New Jersey market, during the nine months ended September 30, 2025, we were able to increase core customer deposits by $68.2 million, or 10.7%, with commercial deposits increasing $36.1 million during the year-to-date period. In addition, brokered deposits increased $120.0 million during the nine months ended September 30, 2025, as higher cost customer time deposits matured and were supplemented with brokered deposits. Uninsured deposits to third-party customers totaled approximately 13% of total deposits as of September 30, 2025.
The details of deposits are below:
| September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | |||||||||||
| (In thousands) | |||||||||||||||
| Non-interest bearing deposits | $ | 24,951 | $ | 25,161 | $ | 25,222 | $ | 26,001 | $ | 22,254 | |||||
| NOW and demand accounts | 457,072 | 431,485 | 398,332 | 369,554 | 357,503 | ||||||||||
| Savings | 222,137 | 228,897 | 236,779 | 240,426 | 237,651 | ||||||||||
| Core deposits | 704,160 | 685,543 | 660,333 | 635,981 | 617,408 | ||||||||||
| Time deposits | 789,220 | 730,778 | 726,908 | 707,339 | 701,262 | ||||||||||
| Total deposits | $ | 1,493,380 | $ | 1,416,321 | $ | 1,387,241 | $ | 1,343,320 | $ | 1,318,670 | |||||
Financial Performance Overview:
Third quarter of 2025 compared to the second quarter of 2025
Net interest income compared to the second quarter of 2025:
- Net interest income was $12.2 million for the third quarter of 2025 compared to $11.6 million for the second quarter of 2025 as interest income increased $693 thousand, partially offset by an increase in interest expense of $142 thousand.
- Net interest margin increased by six basis points to 2.34%.
- The yield on average interest-earning assets increased nine basis points to 4.67%, while the cost of average interest-bearing liabilities decreased four basis points to 2.72%.
- Average interest-earning assets increased by $21.1 million and average interest-bearing liabilities increased by $23.0 million.
Non-interest expense compared to the second quarter of 2025:
- Non-interest expense increased $347 thousand primarily driven by increases of $206 thousand and $198 thousand in compensation and benefits and professional services, respectively. Compensation and benefits increased primarily due to increased compensation cost and an additional day of expense during the third quarter.
Income tax expense compared to the second quarter of 2025:
- The Company did not record a tax benefit for the losses incurred during the third quarter of 2025 or the second quarter of 2025 due to the full valuation allowance required on its deferred tax assets.
- The Company's current tax position reflects the previously established full valuation allowance on its deferred tax assets. At September 30, 2025, the valuation allowance on deferred tax assets was $25.3 million.
Third quarter of 2025 compared to the third quarter of 2024
Net interest income compared to the third quarter of 2024:
- Net interest income was $12.2 million for the third quarter of 2025 compared to $9.1 million for the same period in 2024. The increase was largely due to increases in interest earned on loans and lower interest costs on time deposits.
- Net interest margin increased by 52 basis points to 2.34%.
- The yield on average interest-earning assets increased 35 basis points to 4.67% and the cost of average interest-bearing liabilities decreased by 31 basis points.
- Average interest-earning assets and average interest-bearing liabilities increased by $84.2 million and $105.3 million, respectively. Average loans drove the growth in interest-earning assets, with an increase of $135.1 million. Average interest-bearing deposits increased by $128.3 million, while average borrowings decreased by $23.0 million.
Non-interest expense compared to the third quarter of 2024:
- Non-interest expense was $13.9 million and $13.3 million for the third quarter of 2025 and 2024, respectively, an increase of $619 thousand. Compensation and benefits expense increased by $720 thousand primarily due to increases in variable compensation accruals. Professional services, data processing and advertising expenses increased by $71 thousand, $61 thousand and $50 thousand, respectively.
Income tax expense compared to the third quarter of 2024:
- The Company did not record a tax benefit for the losses incurred during the third quarters of 2025 or 2024 due to the full valuation allowance required on its deferred tax assets.
- The Company's current tax position reflects the previously established full valuation allowance on its deferred tax assets. At September 30, 2025, the valuation allowance on deferred tax assets was $25.3 million.
Nine Months Ended September 30, 2025 compared to the nine months ended September 30, 2024
Net interest income compared to the nine months ended September 30, 2024:
- Net interest income was $34.6 million, an increase of $6.5 million.
- Net interest margin increased 36 basis points to 2.26%.
- The yield on average interest-earning assets increased 29 basis points to 4.59% while the cost of average interest-bearing liabilities decreased 14 basis points to 2.79%.
- Average loans increased by $92.9 million and average interest-bearing deposits increased by $110.3 million.
- Average borrowings decreased by $14.5 million.
Non-interest income compared to the nine months ended September 30, 2024:
- Non-interest income decreased $159 thousand primarily due to the absence of gains on the sale of loans and REO property during the first nine months of 2024.
Non-interest expense compared to the nine months ended September 30, 2024:
- Non-interest expense was $41.1 million, an increase of $1.3 million.
- Compensation and benefits expense increased by $1.2 million, primarily driven by increases in variable compensation accruals. Additionally, data processing expense, advertising, and professional services increased by $294 thousand, $133 thousand and $103 thousand, respectively.
Income tax expense compared to the nine months ended September 30, 2024:
- The Company did not record a tax benefit for the losses incurred during the nine months ended September 30, 2025 or 2024 due to the full valuation allowance required on its deferred tax assets.
- The Company's current tax position reflects the previously established full valuation allowance on its deferred tax assets. At September 30, 2025, the valuation allowance on deferred tax assets was $25.3 million.
Balance Sheet Summary:
September 30, 2025 compared to December 31, 2024
Cash and cash equivalents:
- Cash and cash equivalents increased $1.6 million to $44.1 million.
Securities available-for-sale:
- Securities available-for-sale decreased $23.1 million to $273.9 million due to maturities, calls and pay downs, partially offset by purchases and a decrease in the unrealized loss position of $8.6 million.
Securities held-to-maturity
- Securities held-to-maturity decreased $6.0 million due to pay downs in the portfolio.
Total loans:
- Total loans held for investment increased $131.4 million to $1.71 billion.
- Consumer, commercial real estate and commercial and industrial loans increased $114.5 million, $57.4 million, and $8.0 million, respectively. Partially offsetting these increases was a decrease in construction loans and multifamily loans of $25.0 million and $23.8 million, respectively.
- During the nine months ended September 30, 2025, the Company purchased consumer and residential loans totaling $123.8 million and $35.3 million, respectively.
Deposits:
- Deposits totaled $1.49 billion at September 30, 2025, increasing $150.1 million from $1.34 billion at December 31, 2024. This increase was driven by a $87.5 million increase in NOW and demand accounts and a $81.9 million increase in certificates of deposits, partially offset by a decrease of $18.3 million in savings accounts.
- Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) increased $68.2 million and represented 57.8% of total deposits, excluding brokered deposits, at September 30, 2025, compared to 53.5% at December 31, 2024.
- Brokered deposits totaled $275.0 million and $155.0 million at September 30, 2025 and December 31, 2024, respectively. The increase in brokered deposits offset the reduction in retail time deposits and helped fund loan growth.
- Uninsured and uncollateralized deposits to third-party customers were $194.1 million, or 13% of total deposits, at the end of the third quarter.
Borrowings:
- At September 30, 2025, FHLB borrowings totaled $301.0 million, a decrease of $38.5 million from December 31, 2024.
- As of September 30, 2025, the Company had $283.8 million of additional borrowing capacity at the FHLB, $109.4 million in secured lines at the Federal Reserve Bank and $30.0 million of other unsecured lines of credit.
Capital:
- Shareholders' equity was $314.4 million at September 30, 2025, a decrease of $17.8 million from December 31, 2024. The decrease was primarily driven by the repurchase of shares, including shares netted for income tax withholding on vested equity awards, at a cost of $16.3 million. Additionally, the year-to-date loss, partially offset by favorable changes in accumulated other comprehensive income, contributed to the decrease in shareholders' equity.
- Tangible equity to tangible assets was 14.58% and tangible common equity per share outstanding was $15.14. See the "Supplemental Information - Non-GAAP Financial Measures" tables below for additional information regarding our non-GAAP measures.
- The Bank's capital ratios remain above the FDIC's "well capitalized" standards.
Asset quality:
- The allowance for credit losses ("ACL") on loans as a percentage of gross loans was 0.81% as of September 30, 2025.
- The Company recorded a provision for credit losses of $589 thousand for the third quarter of 2025, primarily driven by deterioration in the economic variable forecasts. For the third quarter of 2025, the provision for the ACL on loans, off-balance-sheet commitments and held-to-maturity securities was $555 thousand, $24 thousand and $10 thousand, respectively. The provision for credit losses for the nine months ended September 30, 2025 was $1.3 million. The provision for the ACL on loans, off-balance-sheet commitments and held-to-maturity securities totaled $905 thousand, $346 thousand and $2 thousand, respectively.
- Non-performing loans totaled $11.4 million, or 0.66% of total loans compared to $5.1 million, or 0.33% of total loans at December 31, 2024. The increase in non-performing loans was primarily driven by one commercial credit for $5.3 million that has previously been disclosed as a special mention asset. Legal proceedings have commenced and we are seeking the appointment of a rent receiver. At this time, we do not believe any principal is at risk.
- Net charge-offs for the three and nine months ended September 30, 2025 were $25 thousand and $36 thousand, respectively.
- The ratio of allowance for credit losses on loans to non-performing loans was 121.49% at September 30, 2025 compared to 254.02% at December 31, 2024, as a result of the increase in non-performing loans as noted above.
About Blue Foundry
Blue Foundry Bancorp is the holding company for Blue Foundry Bank, a place where things are made, purpose is formed, and ideas are crafted. Headquartered in Rutherford NJ, with a presence in Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Somerset and Union counties, Blue Foundry Bank is a full-service, innovative bank serving the doers, movers, and shakers in our communities. We offer individuals and businesses alike the tailored products and services they need to build their futures. With a rich history dating back more than 145 years, Blue Foundry Bank has a longstanding commitment to its customers and communities. To learn more about Blue Foundry Bank visit BlueFoundryBank.com or call (888) 931-BLUE. Member FDIC.
Conference Call Information
A conference call covering Blue Foundry's third quarter of 2025 earnings announcement will be held today, Wednesday, October 29, 2025 at 11:00 a.m. (EDT). To listen to the live call, please dial 1-833-470-1428 (toll free) and use access code 211381. The webcast (audio only) will be available on ir.bluefoundrybank.com. The conference call will be recorded and will be available on the Company's website for one month.
Contact:
James D. Nesci
President and Chief Executive Officer
BlueFoundryBank.com
jnesci@bluefoundrybank.com
201-972-8900
Forward Looking Statements
Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions.
Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase in the level of defaults, losses and prepayments on loans we have made and make; general economic conditions, either nationally or in our market areas, that are worse than expected, including potential recessionary conditions, the imposition of tariffs or other domestic or international governmental policies and potential retaliatory responses; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in our market area; our ability to implement and change our business strategies; competition among depository and other financial institutions; adverse changes in the securities or secondary mortgage markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums; changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the impact of the federal government shutdown; changes in the quality or composition of our loan or investment portfolios; technological changes that may be more difficult or expensive than expected; a failure or breach of our operational or security systems or infrastructure, including cyber-attacks; the inability of third party providers to perform as expected; our ability to manage market risk, credit risk and operational risk in the current economic environment; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; our ability to retain key employees; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the ability of the U.S. Government to manage federal debt limits; and changes in the financial condition, results of operations or future prospects of issuers of securities that we own.
Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.
| BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Statements of Financial Condition | ||||||||||||
| September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | (audited) | |||||||||
| (Dollars in thousands) | ||||||||||||
| ASSETS | ||||||||||||
| Cash and cash equivalents | $ | 44,086 | $ | 41,877 | $ | 46,220 | $ | 42,502 | ||||
| Securities available-for-sale, at fair value | 273,941 | 284,239 | 286,620 | 297,028 | ||||||||
| Securities held to maturity | 27,050 | 29,062 | 32,038 | 33,076 | ||||||||
| Other investments | 16,309 | 18,112 | 17,605 | 17,791 | ||||||||
| Loans, net | 1,701,081 | 1,659,732 | 1,612,503 | 1,570,517 | ||||||||
| Interest and dividends receivable | 9,237 | 8,817 | 8,746 | 8,014 | ||||||||
| Premises and equipment, net | 27,523 | 28,187 | 28,805 | 29,486 | ||||||||
| Right-of-use assets | 21,422 | 22,101 | 22,778 | 23,470 | ||||||||
| Bank owned life insurance | 22,888 | 22,761 | 22,638 | 22,519 | ||||||||
| Other assets | 12,255 | 12,616 | 14,253 | 16,280 | ||||||||
| Total assets | $ | 2,155,792 | $ | 2,127,504 | $ | 2,092,206 | $ | 2,060,683 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Deposits | $ | 1,493,380 | $ | 1,416,321 | $ | 1,387,241 | $ | 1,343,320 | ||||
| Advances from the Federal Home Loan Bank | 301,000 | 343,000 | 334,000 | 339,500 | ||||||||
| Advances by borrowers for taxes and insurance | 9,980 | 10,079 | 9,743 | 9,356 | ||||||||
| Lease liabilities | 23,147 | 23,820 | 24,490 | 25,168 | ||||||||
| Other liabilities | 13,888 | 12,984 | 10,069 | 11,141 | ||||||||
| Total liabilities | 1,841,395 | 1,806,204 | 1,765,543 | 1,728,485 | ||||||||
| Shareholders' equity | 314,397 | 321,300 | 326,663 | 332,198 | ||||||||
| Total liabilities and shareholders' equity | $ | 2,155,792 | $ | 2,127,504 | $ | 2,092,206 | $ | 2,060,683 | ||||
| BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Statements of Operations (Dollars in Thousands Except Per Share Data) (Unaudited) | ||||||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans | $ | 20,608 | $ | 19,763 | $ | 17,646 | $ | 59,263 | $ | 52,408 | ||||||||||
| Taxable investment income | 3,488 | 3,639 | 3,850 | 10,912 | 11,150 | |||||||||||||||
| Non-taxable investment income | 35 | 36 | 36 | 107 | 108 | |||||||||||||||
| Total interest income | 24,131 | 23,438 | 21,532 | 70,282 | 63,666 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 9,277 | 8,968 | 9,712 | 27,271 | 27,257 | |||||||||||||||
| Borrowed funds | 2,663 | 2,830 | 2,733 | 8,436 | 8,332 | |||||||||||||||
| Total interest expense | 11,940 | 11,798 | 12,445 | 35,707 | 35,589 | |||||||||||||||
| Net interest income | 12,191 | 11,640 | 9,087 | 34,575 | 28,077 | |||||||||||||||
| Provision for (release of) credit losses | 589 | 463 | 248 | 1,253 | (1,049 | ) | ||||||||||||||
| Net interest income after provision for (release of) credit losses | 11,602 | 11,177 | 8,839 | 33,322 | 29,126 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Fees and service charges | 276 | 289 | 272 | 808 | 897 | |||||||||||||||
| Gain on sale of loans | - | - | - | - | 36 | |||||||||||||||
| Other income | 140 | 116 | 115 | 407 | 441 | |||||||||||||||
| Total non-interest income | 416 | 405 | 387 | 1,215 | 1,374 | |||||||||||||||
| Non-interest expense: | ||||||||||||||||||||
| Compensation and employee benefits | 8,026 | 7,820 | 7,306 | 23,684 | 22,490 | |||||||||||||||
| Occupancy and equipment | 2,162 | 2,209 | 2,230 | 6,674 | 6,684 | |||||||||||||||
| Data processing | 1,473 | 1,468 | 1,412 | 4,428 | 4,134 | |||||||||||||||
| Advertising | 137 | 140 | 87 | 344 | 211 | |||||||||||||||
| Professional services | 884 | 686 | 813 | 2,269 | 2,166 | |||||||||||||||
| Federal deposit insurance | 239 | 231 | 236 | 693 | 629 | |||||||||||||||
| Other | 965 | 985 | 1,183 | 2,962 | 3,410 | |||||||||||||||
| Total non-interest expense | 13,886 | 13,539 | 13,267 | 41,054 | 39,724 | |||||||||||||||
| Loss before income tax expense | (1,868 | ) | (1,957 | ) | (4,041 | ) | (6,517 | ) | (9,224 | ) | ||||||||||
| Income tax expense | - | - | - | - | - | |||||||||||||||
| Net loss | $ | (1,868 | ) | $ | (1,957 | ) | $ | (4,041 | ) | $ | (6,517 | ) | $ | (9,224 | ) | |||||
| Basic loss per share | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.19 | ) | $ | (0.33 | ) | $ | (0.43 | ) | |||||
| Diluted loss per share | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.19 | ) | $ | (0.33 | ) | $ | (0.43 | ) | |||||
| Weighted average shares outstanding | ||||||||||||||||||||
| Basic | 19,431,456 | 19,843,710 | 21,263,482 | 19,889,497 | 21,695,895 | |||||||||||||||
| Diluted (1) | 19,431,456 | 19,843,710 | 21,263,482 | 19,889,497 | 21,695,895 | |||||||||||||||
| (1) | The assumed vesting of outstanding restricted stock units had an anti-dilutive effect on diluted earnings per share due to the Company's net loss for the 2025 and 2024 periods. |
| BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Financial Highlights (Dollars in Thousands Except Per Share Data) (Unaudited) | ||||||||||||||||||||
| Three months ended | ||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Performance Ratios (%): | ||||||||||||||||||||
| Loss on average assets | (0.35 | ) | (0.37 | ) | (0.53 | ) | (0.52 | ) | (0.79 | ) | ||||||||||
| Loss on average equity | (2.31 | ) | (2.42 | ) | (3.29 | ) | (3.17 | ) | (4.68 | ) | ||||||||||
| Interest rate spread(1) | 1.95 | 1.82 | 1.62 | 1.40 | 1.29 | |||||||||||||||
| Net interest margin(2) | 2.34 | 2.28 | 2.16 | 1.89 | 1.82 | |||||||||||||||
| Efficiency ratio(3) (4) | 110.15 | 112.40 | 122.36 | 130.20 | 140.04 | |||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 118.86 | 119.22 | 120.01 | 120.84 | 121.37 | |||||||||||||||
| Tangible equity to tangible assets(4) | 14.58 | 15.10 | 15.61 | 16.11 | 16.50 | |||||||||||||||
| Book value per share(5) | $ | 15.14 | $ | 14.88 | $ | 14.82 | $ | 14.75 | $ | 14.76 | ||||||||||
| Tangible book value per share(4)(5) | $ | 15.14 | $ | 14.87 | $ | 14.81 | $ | 14.74 | $ | 14.74 | ||||||||||
| Asset Quality: | ||||||||||||||||||||
| Non-performing loans | $ | 11,387 | $ | 6,281 | $ | 5,723 | $ | 5,104 | $ | 5,146 | ||||||||||
| Real estate owned, net | - | - | - | - | - | |||||||||||||||
| Non-performing assets | $ | 11,387 | $ | 6,281 | $ | 5,723 | $ | 5,104 | $ | 5,146 | ||||||||||
| Allowance for credit losses to total loans (%) | 0.81 | 0.80 | 0.81 | 0.83 | 0.84 | |||||||||||||||
| Allowance for credit losses to non-performing loans (%) | 121.49 | 211.81 | 229.81 | 254.02 | 252.86 | |||||||||||||||
| Non-performing loans to total loans (%) | 0.66 | 0.38 | 0.35 | 0.33 | 0.33 | |||||||||||||||
| Non-performing assets to total assets (%) | 0.53 | 0.30 | 0.27 | 0.25 | 0.25 | |||||||||||||||
| Net charge-offs to average outstanding loans during the period (%) | 0.01 | - | - | - | - | |||||||||||||||
| (1) | Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. |
| (2) | Net interest margin represents net interest income divided by average interest-earning assets. |
| (3) | Efficiency ratio represents adjusted non-interest expense divided by the sum of net interest income plus non-interest income. |
| (4) | See the "Supplemental Information - Non-GAAP Financial Measures" tables below for additional information regarding our non-GAAP measures. |
| (5) | September 30, 2025 per share metrics computed using 20,761,225 total shares outstanding. |
| BLUE FOUNDRY BANCORP AND SUBSIDIARY Analysis of Net Interest Income (Dollars in Thousands) (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended, | |||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | |||||||||||||||||||||||||
| Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||
| Loans(1) | $ | 1,684,075 | $ | 20,608 | 4.89 | % | $ | 1,647,763 | $ | 19,763 | 4.80 | % | $ | 1,548,962 | $ | 17,646 | 4.53 | % | |||||||||
| Mortgage-backed securities | 179,954 | 1,241 | 2.76 | % | 184,572 | 1,274 | 2.76 | % | 181,596 | 1,186 | 2.60 | % | |||||||||||||||
| Other investment securities | 146,726 | 1,557 | 4.24 | % | 153,985 | 1,638 | 4.26 | % | 173,008 | 1,527 | 3.51 | % | |||||||||||||||
| FHLB stock | 16,640 | 331 | 7.97 | % | 17,490 | 349 | 7.98 | % | 17,666 | 406 | 9.15 | % | |||||||||||||||
| Cash and cash equivalents | 39,505 | 394 | 3.99 | % | 41,998 | 414 | 3.95 | % | 61,507 | 767 | 4.96 | % | |||||||||||||||
| Total interest-earning assets | 2,066,900 | 24,131 | 4.67 | % | 2,045,808 | 23,438 | 4.58 | % | 1,982,739 | 21,532 | 4.32 | % | |||||||||||||||
| Non-interest earning assets | 61,565 | 61,060 | 61,787 | ||||||||||||||||||||||||
| Total assets | $ | 2,128,465 | $ | 2,106,868 | $ | 2,044,526 | |||||||||||||||||||||
| Liabilities and shareholders' equity: | |||||||||||||||||||||||||||
| NOW, savings, and money market deposits | $ | 662,312 | 2,504 | 1.50 | % | $ | 642,063 | 2,244 | 1.40 | % | $ | 598,048 | 1,925 | 1.28 | % | ||||||||||||
| Time deposits | 752,613 | 6,773 | 3.57 | % | 731,003 | 6,724 | 3.69 | % | 688,570 | 7,787 | 4.50 | % | |||||||||||||||
| Interest-bearing deposits | 1,414,925 | 9,277 | 2.60 | % | 1,373,066 | 8,968 | 2.62 | % | 1,286,618 | 9,712 | 3.00 | % | |||||||||||||||
| FHLB advances | 324,043 | 2,663 | 3.29 | % | 342,945 | 2,830 | 3.30 | % | 347,076 | 2,733 | 3.13 | % | |||||||||||||||
| Total interest-bearing liabilities | 1,738,968 | 11,940 | 2.72 | % | 1,716,011 | 11,798 | 2.76 | % | 1,633,694 | 12,445 | 3.03 | % | |||||||||||||||
| Non-interest bearing deposits | 25,559 | 24,885 | 23,421 | ||||||||||||||||||||||||
| Non-interest bearing other | 43,513 | 41,824 | 43,713 | ||||||||||||||||||||||||
| Total liabilities | 1,808,040 | 1,782,720 | 1,700,828 | ||||||||||||||||||||||||
| Total shareholders' equity | 320,425 | 324,148 | 343,698 | ||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,128,465 | $ | 2,106,868 | $ | 2,044,526 | |||||||||||||||||||||
| Net interest income | $ | 12,191 | $ | 11,640 | $ | 9,087 | |||||||||||||||||||||
| Net interest rate spread(2) | 1.95 | % | 1.82 | % | 1.29 | % | |||||||||||||||||||||
| Net interest margin(3) | 2.34 | % | 2.28 | % | 1.82 | % | |||||||||||||||||||||
| (1) | Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans. |
| (2) | Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. |
| (3) | Net interest margin represents net interest income divided by average interest-earning assets. |
BLUE FOUNDRY BANCORP AND SUBSIDIARY
Analysis of Net Interest Income
(Dollars in Thousands) (Unaudited)
| Nine Months Ended September 30, | ||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||
| Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| Assets: | ||||||||||||||||||
| Loans(1) | $ | 1,644,670 | $ | 59,263 | 4.80 | % | $ | 1,551,734 | $ | 52,408 | 4.50 | % | ||||||
| Mortgage-backed securities | 184,746 | 3,838 | 2.77 | % | 169,765 | 3,022 | 2.37 | % | ||||||||||
| Other investment securities | 154,705 | 4,883 | 4.21 | % | 177,455 | 4,867 | 3.65 | % | ||||||||||
| FHLB stock | 17,266 | 1,079 | 8.33 | % | 18,335 | 1,345 | 9.77 | % | ||||||||||
| Cash and cash equivalents | 41,553 | 1,219 | 3.91 | % | 54,810 | 2,024 | 4.92 | % | ||||||||||
| Total interest-earning assets | 2,042,940 | 70,282 | 4.59 | % | 1,972,099 | 63,666 | 4.30 | % | ||||||||||
| Non-interest earning assets | 61,381 | 59,245 | ||||||||||||||||
| Total assets | $ | 2,104,321 | $ | 2,031,344 | ||||||||||||||
| Liabilities and shareholders' equity: | ||||||||||||||||||
| NOW, savings, and money market deposits | $ | 641,361 | $ | 6,778 | 1.41 | % | $ | 608,677 | $ | 5,816 | 1.27 | % | ||||||
| Time deposits | 732,283 | 20,493 | 3.74 | % | 654,639 | 21,441 | 4.36 | % | ||||||||||
| Interest-bearing deposits | 1,373,644 | 27,271 | 2.65 | % | 1,263,316 | 27,257 | 2.87 | % | ||||||||||
| FHLB advances | 338,042 | 8,436 | 3.33 | % | 352,544 | 8,332 | 3.15 | % | ||||||||||
| Total interest-bearing liabilities | 1,711,686 | 35,707 | 2.79 | % | 1,615,860 | 35,589 | 2.93 | % | ||||||||||
| Non-interest bearing deposits | 25,286 | 24,992 | ||||||||||||||||
| Non-interest bearing other | 42,015 | 42,120 | ||||||||||||||||
| Total liabilities | 1,778,987 | 1,682,972 | ||||||||||||||||
| Total shareholders' equity | 325,334 | 348,372 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,104,321 | $ | 2,031,344 | ||||||||||||||
| Net interest income | $ | 34,575 | $ | 28,077 | ||||||||||||||
| Net interest rate spread(2) | 1.80 | % | 1.37 | % | ||||||||||||||
| Net interest margin(3) | 2.26 | % | 1.90 | % | ||||||||||||||
| (1) | Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans. |
| (2) | Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. |
| (3) | Net interest margin represents net interest income divided by average interest-earning assets. |
BLUE FOUNDRY BANCORP AND SUBSIDIARY
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)
This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Blue Foundry's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Blue Foundry's financial results. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Blue Foundry strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Net income, as presented in the Consolidated Statements of Operations, includes the provision for credit losses and income tax expense, while pre-provision net revenue does not.
| Three months ended | ||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||
| Pre-provision net revenue and efficiency ratio: | ||||||||||||||||||||
| Net interest income | $ | 12,191 | $ | 11,640 | $ | 10,744 | $ | 9,473 | $ | 9,087 | ||||||||||
| Other income | 416 | 405 | 394 | 420 | 387 | |||||||||||||||
| Total revenue | 12,607 | 12,045 | 11,138 | 9,893 | 9,474 | |||||||||||||||
| Operating expenses | 13,886 | 13,539 | 13,629 | 12,881 | 13,267 | |||||||||||||||
| Pre-provision net loss | $ | (1,279 | ) | $ | (1,494 | ) | $ | (2,491 | ) | $ | (2,988 | ) | $ | (3,793 | ) | |||||
| Efficiency ratio | 110.2 | % | 112.4 | % | 122.4 | % | 130.2 | % | 140.0 | % | ||||||||||
| Core deposits: | ||||||||||||||||||||
| Total deposits | $ | 1,493,380 | $ | 1,416,321 | $ | 1,387,241 | $ | 1,343,320 | $ | 1,318,670 | ||||||||||
| Less: time deposits | 789,220 | 730,778 | 726,908 | 707,339 | 701,262 | |||||||||||||||
| Core deposits | $ | 704,160 | $ | 685,543 | $ | 660,333 | $ | 635,981 | $ | 617,408 | ||||||||||
| Core deposits to total deposits | 47.2 | % | 48.4 | % | 47.6 | % | 47.3 | % | 46.8 | % | ||||||||||
| Total assets | $ | 2,155,792 | $ | 2,127,504 | $ | 2,092,206 | $ | 2,060,683 | $ | 2,055,093 | ||||||||||
| Less: intangible assets | 79 | 134 | 189 | 244 | 300 | |||||||||||||||
| Tangible assets | $ | 2,155,713 | $ | 2,127,370 | $ | 2,092,017 | $ | 2,060,439 | $ | 2,054,793 | ||||||||||
| Tangible equity: | ||||||||||||||||||||
| Shareholders' equity | $ | 314,397 | $ | 321,300 | $ | 326,663 | $ | 332,198 | $ | 339,299 | ||||||||||
| Less: intangible assets | 79 | 134 | 189 | 244 | 300 | |||||||||||||||
| Tangible equity | $ | 314,318 | $ | 321,166 | $ | 326,474 | $ | 331,954 | $ | 338,999 | ||||||||||
| Tangible equity to tangible assets | 14.58 | % | 15.10 | % | 15.61 | % | 16.11 | % | 16.50 | % | ||||||||||
| Tangible book value per share: | ||||||||||||||||||||
| Tangible equity | $ | 314,318 | $ | 321,166 | $ | 326,474 | $ | 331,954 | $ | 338,999 | ||||||||||
| Shares outstanding | 20,761,225 | 21,591,757 | 22,047,649 | 22,522,626 | 22,990,908 | |||||||||||||||
| Tangible book value per share | $ | 15.14 | $ | 14.87 | $ | 14.81 | $ | 14.74 | $ | 14.74 | ||||||||||
