Blue Foundry Bancorp (BLFY) Q1 2025 earnings summary

Executive summary

• Reported a net loss of $2.7 million ($0.13 per diluted share) for Q1 2025, unchanged from Q4 2024 and slightly improved from $2.8 million loss in Q1 2024.

• Net interest margin improved by 27 basis points sequentially to 2.16%, driven by higher asset yields and lower liability costs.

• Loan portfolio grew by $42.2 million, with commercial real estate, construction, and consumer loans as key drivers.

• Total deposits increased by $44 million to $1.39 billion, with brokered deposits rising to $205 million.

• Tangible book value per share increased to $14.81, with capital ratios above well-capitalized standards.

Financial highlights

• Net interest income rose to $10.7 million, up $1.3 million (13.4%) sequentially, with interest income at $22.7 million and interest expense at $12.0 million.

• Yield on loans increased to 4.72%, and yield on total interest-earning assets improved to 4.51%.

• Non-interest expense increased by $748,000, mainly from higher compensation and benefits, with operating expenses expected in the $13–14 million range.

• Provision for credit losses was $201,000, reflecting loan growth and portfolio shifts.

• Non-interest income declined 12.6% to $394,000 due to absence of loan sale gains.

Outlook and guidance

• Expect further net interest margin expansion of 5–10 basis points in Q2 2025, with additional growth possible as multifamily loans reprice in 2026.

• Operating expenses projected to stay in the high $13 million to low $14 million range, with variable compensation tied to performance.

• Share buybacks expected to continue at the current pace, subject to capital deployment opportunities and market conditions.

• Management expects sufficient liquidity to meet loan origination and credit commitments.

• No material changes in risk factors or business strategy were reported for the upcoming periods.