Blue Foundry Bancorp's Q2 2025 Performance Highlights
Overview of Financial Results
Blue Foundry Bancorp (BLFY), the holding company for Blue Foundry Bank, recently disclosed its financial performance for the second quarter of 2025. The company reported a net loss of $2.0 million, or $0.10 per diluted share, which reflects an improvement from a net loss of $2.7 million, or $0.13 per share in the previous quarter, and a net loss of $2.3 million, or $0.11 per share during the same quarter last year.
CEO's Statement
James D. Nesci, President and CEO, expressed optimism regarding the progress achieved in the quarter, citing net interest margin expansion and solid credit performance as key indicators of strength. He stated, "We are pleased to see continued improvement represented by our expanding net interest margin and stable expenses. Our strategic shifts towards higher-yield loan portfolios are starting to bear fruit, and we remain committed to fostering core deposit growth among our commercial clients."
Second Quarter Highlights
- Loans climbed by $47.4 million to $1.67 billion.
- Deposits saw an uptick of $29.1 million, reaching $1.42 billion, with core deposits growing by $25.2 million from the prior quarter.
- The net interest margin improved by 12 basis points to 2.28% compared to the previous quarter.
- Interest income increased to $23.4 million, up by $725 thousand or 3.2% from the previous quarter.
- Interest expense decreased to $11.8 million, a drop of $171 thousand or 1.4% from the previous quarter.
- The provision for credit losses totaled $463 thousand, primarily linked to the rise in provisions for off-balance-sheet commitments.
- Book value per share stood at $14.88, while the tangible book value was reported at $14.87.
- A total of 406,391 shares were repurchased under the company's share repurchase plan at an average price of $9.42 per share.
- The company initiated its sixth stock repurchase program aiming for up to 1,082,533 shares of its common stock, representing about 5% of its outstanding shares.
Loan Portfolio Development
During the first half of 2025, total loans increased by $89.6 million, reaffirming Blue Foundry Bancorp's commitment to diversifying its lending strategy by strengthening its commercial loan offering. The consumer loan sector also rose, with an increase of $76.5 million attributed to purchases that were supported by credit reserves, thus enhancing the overall yield while minimizing credit loss exposure. Moreover, notable increases occurred in the commercial real estate portfolio and the construction loan segment.
Deposit Insights
As of June 30, 2025, total deposits reached $1.42 billion, which shows a growth of $73 million from the end of the previous year. The surge in deposits came from various sources, including a robust increase in non-interest bearing accounts, driven by a strategy to fully incorporate banking relationships with small to medium-sized businesses. In the current competitive landscape for deposits, particularly in the New Jersey region, Blue Foundry Bancorp successfully bolstered its core deposits while also seeing a notable rise in brokered deposits.
Financial Summary and Future Aspirations
Overall, Blue Foundry Bancorp continues to navigate a challenging economic environment while focusing on strategic initiatives to improve its financial health. The bank's capital ratios remain solid, and the management is optimistic about the future, planning further investments in technology and customer relationships to enhance services and support sustained growth.
Frequently Asked Questions
What were the key financial metrics for Blue Foundry Bancorp in Q2 2025?
Blue Foundry Bancorp reported a net loss of $2.0 million for the quarter and expanded its net interest margin to 2.28%, reflecting operational improvements.
How did Blue Foundry Bancorp's loan portfolio change in Q2 2025?
The loan portfolio increased by $47.4 million, reaching a total of $1.67 billion, driven by strategic enhancements in commercial lending.
What measures is Blue Foundry Bancorp taking to improve deposits?
The company is focusing on attracting core deposits through comprehensive banking relationships with small to medium-sized businesses, aiding in significant increases in overall deposits.
What changes occurred in interest income and expenses for the quarter?
Interest income rose to $23.4 million, while interest expenses decreased to $11.8 million, indicating improved efficiency in funding.
What future strategies are in place for Blue Foundry Bancorp?
Blue Foundry Bancorp plans to continue enhancing its asset yield through prudent lending practices and focus on technology investments to improve customer experience.
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