Blue Foundry Bancorp (BLFY) Q2 2025 earnings summary

Executive summary

• Net loss of $2.0 million ($0.10 per diluted share) for Q2 2025, improving from $2.7 million in Q1 2025 and $2.3 million in Q2 2024, driven by higher net interest income and lower non-interest income.

• Net interest income rose to $11.6 million, up $2.1 million year-over-year, as asset yields increased and liability costs declined.

• Total assets grew to $2.13 billion at June 30, 2025, from $2.06 billion at year-end 2024, with loan growth and higher deposits.

• Core deposit growth and loan portfolio diversification remain strategic priorities.

• 406,391 shares repurchased at a weighted average price of $9.42, with a new repurchase program for up to 1,082,533 shares announced.

Financial highlights

• Net interest income was $11.6 million in Q2 2025, up from $10.7 million in Q1 2025 and $9.6 million in Q2 2024.

• Interest income for Q2 2025 was $23.4 million, up 10.1% year-over-year; interest expense decreased to $11.8 million sequentially.

• Gross loans increased $47.4 million in the quarter to $1.67 billion; $180 million in loan production year-to-date.

• Deposits grew by $29.1 million to $1.42 billion sequentially, with core deposits up 4% and representing 48.4% of total deposits.

• Tangible book value per share increased to $14.87.

Outlook and guidance

• Management expects continued balance sheet and interest income growth, driven by loan diversification and core deposit initiatives.

• Net interest margin expansion anticipated to be limited in the second half of 2025, with more significant improvement expected in 2026 as $75 million in loans reprice.

• Consumer loan portfolio targeted to grow to 7%-8% of total loans over the next few quarters.

• Modest increase in compensation expense expected in the second half of the year due to higher variable compensation.

• No material impact expected from recent tax legislation; no material changes in risk factors or business strategy reported.