Blue Foundry Bancorp Reports $1.96 Million Net Loss in Q2 2025, Interest Income Up 10.1%

Blue Foundry Bancorp reported a net loss of $1.96 million for the second quarter of 2025, a slight improvement from a net loss of $2.34 million in the same period of 2024. The company's interest income increased by 10.1% to $23.44 million, driven by a rise in the average balance of interest-earning assets and higher rates earned, resulting in a yield of 4.58%. Interest expense also saw a marginal increase to $11.8 million, leading to a net interest income of $11.64 million, up from $9.57 million year-over-year. The net interest margin improved to 2.28%, reflecting a 32 basis point increase.

In terms of operational metrics, total assets rose to $2.13 billion as of June 30, 2025, compared to $2.06 billion at the end of 2024. The increase was primarily attributed to a $89.6 million rise in gross loans, which reached $1.67 billion, with notable growth in consumer, commercial real estate, and construction loans. However, multifamily loans decreased by $37.3 million. Total deposits also increased by 5.4% to $1.42 billion, with significant contributions from NOW and demand accounts, as well as time deposits.

The company’s provision for credit losses was recorded at $463,000 for the second quarter, contrasting with a release of $762,000 in the prior year. This provision reflects an increase in the allowance for credit losses on loans and off-balance-sheet commitments, driven by a shift in the loan portfolio composition. As of June 30, 2025, the allowance for credit losses on loans was 0.80% of total loans.

Strategically, Blue Foundry Bancorp has focused on expanding its loan portfolio, including the purchase of residential loans totaling $25.5 million and consumer loans amounting to $80.4 million from Bankers Healthcare Group. The company also reported a decrease in its shareholders' equity to $321.3 million, down from $332.2 million, primarily due to share repurchases and the net loss incurred during the period. Looking ahead, the company is evaluating the potential impacts of recent tax legislation and remains focused on managing its interest rate risk through various strategies, including the use of interest rate swaps.