Blue Foundry Bancorp (BLFY) Q3 2025 earnings summary

Executive summary

• Net loss for Q3 2025 was $1.9 million, improving from $2 million in Q2 2025 and $4 million in Q3 2024; year-to-date net loss was $6.5 million, down from $9.2 million in the prior year.

• Net interest margin expanded to 2.34% in Q3 2025, up six basis points sequentially and 52 basis points year-over-year.

• Net interest income rose to $12.2 million for Q3 2025, up $551,000 from the prior quarter and $3.1 million year-over-year.

• Strategic focus on growing core deposits, diversifying the loan portfolio, and expanding net interest margin.

• Total assets increased to $2.16 billion at September 30, 2025, from $2.06 billion at year-end 2024.

Financial highlights

• Loans increased $41.9 million sequentially to $1.71 billion; deposits rose $77.1 million to $1.49 billion in Q3 2025.

• Non-interest expense increased to $13.9 million in Q3 2025, mainly due to higher compensation and professional services.

• Provision for credit losses was $589,000 in Q3 2025, driven by loan growth and economic forecast adjustments.

• Yield on average interest-earning assets increased to 4.67%; cost of average interest-bearing liabilities declined to 2.72%.

• Efficiency ratio improved to 110.2% in Q3 2025 from 140.0% in Q3 2024.

Outlook and guidance

• Management expects continued balance sheet and interest income growth through portfolio diversification and full banking relationships.

• Net interest margin anticipated to remain flat in Q4, with meaningful pickup expected in 2026 as loans reprice.

• Sufficient liquidity to meet loan origination and credit commitments, with $423 million in borrowing capacity.

• No specific expense guidance for 2026 as strategic planning is ongoing.

• No material impact expected from recent tax legislation; full valuation allowance on deferred tax assets maintained.