RUTHERFORD, N.J., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Blue Foundry Bancorp (NASDAQ:BLFY) (the "Company"), the holding company for Blue Foundry Bank (the "Bank"), today reported a net loss of $1.9 million, or $0.10 per diluted common share, for the three months ended September 30, 2025, compared to net loss of $2.0 million, or $0.10 per diluted common share, for the three months ended June 30, 2025, and a net loss of $4.0 million, or $0.19 per diluted common share, for the three months ended September 30, 2024.

James D. Nesci, President and Chief Executive Officer, commented, "During the third quarter, we experienced expansion in our net interest margin due to improvements in both yield on assets and cost of funds. Our strategy of focusing on obtaining the full banking relationship, coupled with diversifying our loan portfolio with an emphasis on asset classes that provide higher yields and better risk-adjusted returns, will position us well for continued balance sheet and interest income growth."

Mr. Nesci further noted, "We remain committed to enhancing shareholder value. This quarter, tangible book value exceeded $15 per share. As our profitability slowly continues to improve, we expect market valuation to follow."

Highlights for the third quarter of 2025:

Loans increased $41.9 million to $1.71 billion compared to the linked quarter.
Deposits increased $77.1 million to $1.49 billion compared to the linked quarter. Core deposits increased by $18.6 million compared to the linked quarter.
Net interest margin increased six basis points to 2.34% compared to the linked quarter.
Interest income for the quarter was $24.1 million, an increase of $693 thousand, or 3.0%, compared to the linked quarter.
Interest expense for the quarter was $11.9 million, an increase of $142 thousand compared to the linked quarter.
Provision for credit losses of $589 thousand was primarily due to the increase in the provision for loans.
Book value per share and tangible book value per share were $15.14, respectively. See the "Supplemental Information - Non-GAAP Financial Measures" tables below for additional information regarding our non-GAAP measures.
837,388 shares were repurchased during the quarter at a weighted average share price of $9.09 per share. 500,000 of the shares repurchased were part of a private transaction executed at a slight discount to the market prices at the time.

Loans

During the first nine months of 2025, loans increased by $131.4 million. The Company continues to focus on diversifying its lending portfolio. During the first nine months of 2025, we purchased unsecured consumer loans with credit reserves, which is cash collateral held at the Bank. Management has determined the collateral to be sufficient to cover any expected losses in the loan pools. These loans have helped improve yields while having lower exposure to credit loss. As a result of the purchases, the consumer loan portfolio increased by $114.5 million during the first nine months of 2025. In addition, the commercial real estate portfolio increased by $57.4 million, of which $46.3 million was in owner-occupied properties, and the commercial and industrial portfolio increased $8.0 million. The construction and multifamily portfolios decreased by $25.0 million and $23.8 million, respectively, during the nine months ended September 30, 2025.

The details of the loan portfolio are below:

	September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024
	(In thousands)
Residential	$	514,263	$	519,370	$	512,793	$	518,243	$	516,754
Multifamily		647,269		633,849		645,399		671,116		666,304
Commercial real estate		317,079		293,179		288,151		259,633		241,711
Construction		60,543		97,207		92,813		85,546		80,081
Junior liens		29,694		27,996		26,902		25,422		24,174
Commercial and industrial		24,315		17,729		18,079		16,311		14,228
Consumer and other		121,752		83,706		41,518		7,211		7,731
Total loans		1,714,915		1,673,036		1,625,655		1,583,482		1,550,983
Less: Allowance for credit losses		13,834		13,304		13,152		12,965		13,012
Loans receivable, net	$	1,701,081	$	1,659,732	$	1,612,503	$	1,570,517	$	1,537,971

Deposits

At September 30, 2025, deposits totaled $1.49 billion, an increase of $150.1 million, or 11.17%, from December 31, 2024. This change was driven by increases of $87.5 million in NOW and demand accounts and $81.9 million in time deposits, partially offset by a decrease in savings accounts of $18.3 million. The Company's strategy is to focus on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products. Despite strong competition for deposits in the northern New Jersey market, during the nine months ended September 30, 2025, we were able to increase core customer deposits by $68.2 million, or 10.7%, with commercial deposits increasing $36.1 million during the year-to-date period. In addition, brokered deposits increased $120.0 million during the nine months ended September 30, 2025, as higher cost customer time deposits matured and were supplemented with brokered deposits. Uninsured deposits to third-party customers totaled approximately 13% of total deposits as of September 30, 2025.

The details of deposits are below:

	September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024
	(In thousands)
Non-interest bearing deposits	$	24,951	$	25,161	$	25,222	$	26,001	$	22,254
NOW and demand accounts		457,072		431,485		398,332		369,554		357,503
Savings		222,137		228,897		236,779		240,426		237,651
Core deposits		704,160		685,543		660,333		635,981		617,408
Time deposits		789,220		730,778		726,908		707,339		701,262
Total deposits	$	1,493,380	$	1,416,321	$	1,387,241	$	1,343,320	$	1,318,670

Financial Performance Overview:

Third quarter of 2025 compared to the second quarter of 2025

Net interest income compared to the second quarter of 2025:

Net interest income was $12.2 million for the third quarter of 2025 compared to $11.6 million for the second quarter of 2025 as interest income increased $693 thousand, partially offset by an increase in interest expense of $142 thousand.
Net interest margin increased by six basis points to 2.34%.
The yield on average interest-earning assets increased nine basis points to 4.67%, while the cost of average interest-bearing liabilities decreased four basis points to 2.72%.
Average interest-earning assets increased by $21.1 million and average interest-bearing liabilities increased by $23.0 million.

Non-interest expense compared to the second quarter of 2025:

Non-interest expense increased $347 thousand primarily driven by increases of $206 thousand and $198 thousand in compensation and benefits and professional services, respectively. Compensation and benefits increased primarily due to increased compensation cost and an additional day of expense during the third quarter.

Income tax expense compared to the second quarter of 2025:

The Company did not record a tax benefit for the losses incurred during the third quarter of 2025 or the second quarter of 2025 due to the full valuation allowance required on its deferred tax assets.
The Company's current tax position reflects the previously established full valuation allowance on its deferred tax assets. At September 30, 2025, the valuation allowance on deferred tax assets was $25.3 million.

Third quarter of 2025 compared to the third quarter of 2024

Net interest income compared to the third quarter of 2024:

Net interest income was $12.2 million for the third quarter of 2025 compared to $9.1 million for the same period in 2024. The increase was largely due to increases in interest earned on loans and lower interest costs on time deposits.
Net interest margin increased by 52 basis points to 2.34%.
The yield on average interest-earning assets increased 35 basis points to 4.67% and the cost of average interest-bearing liabilities decreased by 31 basis points.
Average interest-earning assets and average interest-bearing liabilities increased by $84.2 million and $105.3 million, respectively. Average loans drove the growth in interest-earning assets, with an increase of $135.1 million. Average interest-bearing deposits increased by $128.3 million, while average borrowings decreased by $23.0 million.

Non-interest expense compared to the third quarter of 2024:

Non-interest expense was $13.9 million and $13.3 million for the third quarter of 2025 and 2024, respectively, an increase of $619 thousand. Compensation and benefits expense increased by $720 thousand primarily due to increases in variable compensation accruals. Professional services, data processing and advertising expenses increased by $71 thousand, $61 thousand and $50 thousand, respectively.

Income tax expense compared to the third quarter of 2024:

The Company did not record a tax benefit for the losses incurred during the third quarters of 2025 or 2024 due to the full valuation allowance required on its deferred tax assets.
The Company's current tax position reflects the previously established full valuation allowance on its deferred tax assets. At September 30, 2025, the valuation allowance on deferred tax assets was $25.3 million.

Nine Months Ended September 30, 2025 compared to the nine months ended September 30, 2024

Net interest income compared to the nine months ended September 30, 2024:

Net interest income was $34.6 million, an increase of $6.5 million.
Net interest margin increased 36 basis points to 2.26%.
The yield on average interest-earning assets increased 29 basis points to 4.59% while the cost of average interest-bearing liabilities decreased 14 basis points to 2.79%.
Average loans increased by $92.9 million and average interest-bearing deposits increased by $110.3 million.
Average borrowings decreased by $14.5 million.

Non-interest income compared to the nine months ended September 30, 2024:

Non-interest income decreased $159 thousand primarily due to the absence of gains on the sale of loans and REO property during the first nine months of 2024.

Non-interest expense compared to the nine months ended September 30, 2024:

Non-interest expense was $41.1 million, an increase of $1.3 million.
Compensation and benefits expense increased by $1.2 million, primarily driven by increases in variable compensation accruals. Additionally, data processing expense, advertising, and professional services increased by $294 thousand, $133 thousand and $103 thousand, respectively.

Income tax expense compared to the nine months ended September 30, 2024:

The Company did not record a tax benefit for the losses incurred during the nine months ended September 30, 2025 or 2024 due to the full valuation allowance required on its deferred tax assets.
The Company's current tax position reflects the previously established full valuation allowance on its deferred tax assets. At September 30, 2025, the valuation allowance on deferred tax assets was $25.3 million.

Balance Sheet Summary:

September 30, 2025 compared to December 31, 2024

Cash and cash equivalents:

Cash and cash equivalents increased $1.6 million to $44.1 million.

Securities available-for-sale:

Securities available-for-sale decreased $23.1 million to $273.9 million due to maturities, calls and pay downs, partially offset by purchases and a decrease in the unrealized loss position of $8.6 million.

Securities held-to-maturity

Securities held-to-maturity decreased $6.0 million due to pay downs in the portfolio.

Total loans:

Total loans held for investment increased $131.4 million to $1.71 billion.
Consumer, commercial real estate and commercial and industrial loans increased $114.5 million, $57.4 million, and $8.0 million, respectively. Partially offsetting these increases was a decrease in construction loans and multifamily loans of $25.0 million and $23.8 million, respectively.
During the nine months ended September 30, 2025, the Company purchased consumer and residential loans totaling $123.8 million and $35.3 million, respectively.

Deposits:

Deposits totaled $1.49 billion at September 30, 2025, increasing $150.1 million from $1.34 billion at December 31, 2024. This increase was driven by a $87.5 million increase in NOW and demand accounts and a $81.9 million increase in certificates of deposits, partially offset by a decrease of $18.3 million in savings accounts.
Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) increased $68.2 million and represented 57.8% of total deposits, excluding brokered deposits, at September 30, 2025, compared to 53.5% at December 31, 2024.
Brokered deposits totaled $275.0 million and $155.0 million at September 30, 2025 and December 31, 2024, respectively. The increase in brokered deposits offset the reduction in retail time deposits and helped fund loan growth.
Uninsured and uncollateralized deposits to third-party customers were $194.1 million, or 13% of total deposits, at the end of the third quarter.

Borrowings:

At September 30, 2025, FHLB borrowings totaled $301.0 million, a decrease of $38.5 million from December 31, 2024.
As of September 30, 2025, the Company had $283.8 million of additional borrowing capacity at the FHLB, $109.4 million in secured lines at the Federal Reserve Bank and $30.0 million of other unsecured lines of credit.

Capital:

Shareholders' equity was $314.4 million at September 30, 2025, a decrease of $17.8 million from December 31, 2024. The decrease was primarily driven by the repurchase of shares, including shares netted for income tax withholding on vested equity awards, at a cost of $16.3 million. Additionally, the year-to-date loss, partially offset by favorable changes in accumulated other comprehensive income, contributed to the decrease in shareholders' equity.
Tangible equity to tangible assets was 14.58% and tangible common equity per share outstanding was $15.14. See the "Supplemental Information - Non-GAAP Financial Measures" tables below for additional information regarding our non-GAAP measures.
The Bank's capital ratios remain above the FDIC's "well capitalized" standards.

Asset quality:

The allowance for credit losses ("ACL") on loans as a percentage of gross loans was 0.81% as of September 30, 2025.
The Company recorded a provision for credit losses of $589 thousand for the third quarter of 2025, primarily driven by deterioration in the economic variable forecasts. For the third quarter of 2025, the provision for the ACL on loans, off-balance-sheet commitments and held-to-maturity securities was $555 thousand, $24 thousand and $10 thousand, respectively. The provision for credit losses for the nine months ended September 30, 2025 was $1.3 million. The provision for the ACL on loans, off-balance-sheet commitments and held-to-maturity securities totaled $905 thousand, $346 thousand and $2 thousand, respectively.
Non-performing loans totaled $11.4 million, or 0.66% of total loans compared to $5.1 million, or 0.33% of total loans at December 31, 2024. The increase in non-performing loans was primarily driven by one commercial credit for $5.3 million that has previously been disclosed as a special mention asset. Legal proceedings have commenced and we are seeking the appointment of a rent receiver. At this time, we do not believe any principal is at risk.
Net charge-offs for the three and nine months ended September 30, 2025 were $25 thousand and $36 thousand, respectively.
The ratio of allowance for credit losses on loans to non-performing loans was 121.49% at September 30, 2025 compared to 254.02% at December 31, 2024, as a result of the increase in non-performing loans as noted above.

About Blue Foundry

Blue Foundry Bancorp is the holding company for Blue Foundry Bank, a place where things are made, purpose is formed, and ideas are crafted. Headquartered in Rutherford NJ, with a presence in Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Somerset and Union counties, Blue Foundry Bank is a full-service, innovative bank serving the doers, movers, and shakers in our communities. We offer individuals and businesses alike the tailored products and services they need to build their futures. With a rich history dating back more than 145 years, Blue Foundry Bank has a longstanding commitment to its customers and communities. To learn more about Blue Foundry Bank visit BlueFoundryBank.com or call (888) 931-BLUE. Member FDIC.

Conference Call Information

A conference call covering Blue Foundry's third quarter of 2025 earnings announcement will be held today, Wednesday, October 29, 2025 at 11:00 a.m. (EDT). To listen to the live call, please dial 1-833-470-1428 (toll free) and use access code 211381. The webcast (audio only) will be available on ir.bluefoundrybank.com. The conference call will be recorded and will be available on the Company's website for one month.

Contact:

James D. Nesci

President and Chief Executive Officer

BlueFoundryBank.com

jnesci@bluefoundrybank.com

201-972-8900

Forward Looking Statements

Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions.

Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase in the level of defaults, losses and prepayments on loans we have made and make; general economic conditions, either nationally or in our market areas, that are worse than expected, including potential recessionary conditions, the imposition of tariffs or other domestic or international governmental policies and potential retaliatory responses; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in our market area; our ability to implement and change our business strategies; competition among depository and other financial institutions; adverse changes in the securities or secondary mortgage markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums; changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the impact of the federal government shutdown; changes in the quality or composition of our loan or investment portfolios; technological changes that may be more difficult or expensive than expected; a failure or breach of our operational or security systems or infrastructure, including cyber-attacks; the inability of third party providers to perform as expected; our ability to manage market risk, credit risk and operational risk in the current economic environment; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; our ability to retain key employees; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the ability of the U.S. Government to manage federal debt limits; and changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.


BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Statements of Financial Condition

	September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
	(unaudited)		(unaudited)		(unaudited)		(audited)
	(Dollars in thousands)
ASSETS
Cash and cash equivalents	$	44,086	$	41,877	$	46,220	$	42,502
Securities available-for-sale, at fair value		273,941		284,239		286,620		297,028
Securities held to maturity		27,050		29,062		32,038		33,076
Other investments		16,309		18,112		17,605		17,791
Loans, net		1,701,081		1,659,732		1,612,503		1,570,517
Interest and dividends receivable		9,237		8,817		8,746		8,014
Premises and equipment, net		27,523		28,187		28,805		29,486
Right-of-use assets		21,422		22,101		22,778		23,470
Bank owned life insurance		22,888		22,761		22,638		22,519
Other assets		12,255		12,616		14,253		16,280
Total assets	$	2,155,792	$	2,127,504	$	2,092,206	$	2,060,683

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits	$	1,493,380	$	1,416,321	$	1,387,241	$	1,343,320
Advances from the Federal Home Loan Bank		301,000		343,000		334,000		339,500
Advances by borrowers for taxes and insurance		9,980		10,079		9,743		9,356
Lease liabilities		23,147		23,820		24,490		25,168
Other liabilities		13,888		12,984		10,069		11,141
Total liabilities		1,841,395		1,806,204		1,765,543		1,728,485
Shareholders' equity		314,397		321,300		326,663		332,198
Total liabilities and shareholders' equity	$	2,155,792	$	2,127,504	$	2,092,206	$	2,060,683


BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Statements of Operations (Dollars in Thousands Except Per Share Data) (Unaudited)

	Three months ended									Nine months ended
	September 30, 2025			June 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
	(Dollars in thousands)
Interest income:
Loans	$	20,608		$	19,763		$	17,646		$	59,263		$	52,408
Taxable investment income		3,488			3,639			3,850			10,912			11,150
Non-taxable investment income		35			36			36			107			108
Total interest income		24,131			23,438			21,532			70,282			63,666
Interest expense:
Deposits		9,277			8,968			9,712			27,271			27,257
Borrowed funds		2,663			2,830			2,733			8,436			8,332
Total interest expense		11,940			11,798			12,445			35,707			35,589
Net interest income		12,191			11,640			9,087			34,575			28,077
Provision for (release of) credit losses		589			463			248			1,253			(1,049	)
Net interest income after provision for (release of) credit losses		11,602			11,177			8,839			33,322			29,126
Non-interest income:
Fees and service charges		276			289			272			808			897
Gain on sale of loans		—			—			—			—			36
Other income		140			116			115			407			441
Total non-interest income		416			405			387			1,215			1,374
Non-interest expense:
Compensation and employee benefits		8,026			7,820			7,306			23,684			22,490
Occupancy and equipment		2,162			2,209			2,230			6,674			6,684
Data processing		1,473			1,468			1,412			4,428			4,134
Advertising		137			140			87			344			211
Professional services		884			686			813			2,269			2,166
Federal deposit insurance		239			231			236			693			629
Other		965			985			1,183			2,962			3,410
Total non-interest expense		13,886			13,539			13,267			41,054			39,724
Loss before income tax expense		(1,868	)		(1,957	)		(4,041	)		(6,517	)		(9,224	)
Income tax expense		—			—			—			—			—
Net loss	$	(1,868	)	$	(1,957	)	$	(4,041	)	$	(6,517	)	$	(9,224	)
Basic loss per share	$	(0.10	)	$	(0.10	)	$	(0.19	)	$	(0.33	)	$	(0.43	)
Diluted loss per share	$	(0.10	)	$	(0.10	)	$	(0.19	)	$	(0.33	)	$	(0.43	)
Weighted average shares outstanding
Basic		19,431,456			19,843,710			21,263,482			19,889,497			21,695,895
Diluted (1)		19,431,456			19,843,710			21,263,482			19,889,497			21,695,895

(1)	The assumed vesting of outstanding restricted stock units had an anti-dilutive effect on diluted earnings per share due to the Company's net loss for the 2025 and 2024 periods.


BLUE FOUNDRY BANCORP AND SUBSIDIARY Consolidated Financial Highlights (Dollars in Thousands Except Per Share Data) (Unaudited)

	Three months ended
	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
	(Dollars in thousands)
Performance Ratios (%):
Loss on average assets		(0.35	)		(0.37	)		(0.53	)		(0.52	)		(0.79	)
Loss on average equity		(2.31	)		(2.42	)		(3.29	)		(3.17	)		(4.68	)
Interest rate spread⁽¹⁾		1.95			1.82			1.62			1.40			1.29
Net interest margin⁽²⁾		2.34			2.28			2.16			1.89			1.82
Efficiency ratio^{(3) (4)}		110.15			112.40			122.36			130.20			140.04
Average interest-earning assets to average interest-bearing liabilities		118.86			119.22			120.01			120.84			121.37
Tangible equity to tangible assets⁽⁴⁾		14.58			15.10			15.61			16.11			16.50
Book value per share⁽⁵⁾	$	15.14		$	14.88		$	14.82		$	14.75		$	14.76
Tangible book value per share⁽⁴⁾⁽⁵⁾	$	15.14		$	14.87		$	14.81		$	14.74		$	14.74

Asset Quality:
Non-performing loans	$	11,387		$	6,281		$	5,723		$	5,104		$	5,146
Real estate owned, net		—			—			—			—			—
Non-performing assets	$	11,387		$	6,281		$	5,723		$	5,104		$	5,146
Allowance for credit losses to total loans (%)		0.81			0.80			0.81			0.83			0.84
Allowance for credit losses to non-performing loans (%)		121.49			211.81			229.81			254.02			252.86
Non-performing loans to total loans (%)		0.66			0.38			0.35			0.33			0.33
Non-performing assets to total assets (%)		0.53			0.30			0.27			0.25			0.25
Net charge-offs to average outstanding loans during the period (%)		0.01			—			—			—			—

(1)	Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(2)	Net interest margin represents net interest income divided by average interest-earning assets.
(3)	Efficiency ratio represents adjusted non-interest expense divided by the sum of net interest income plus non-interest income.
(4)	See the "Supplemental Information - Non-GAAP Financial Measures" tables below for additional information regarding our non-GAAP measures.
(5)	September 30, 2025 per share metrics computed using 20,761,225 total shares outstanding.


BLUE FOUNDRY BANCORP AND SUBSIDIARY Analysis of Net Interest Income (Dollars in Thousands) (Unaudited)

	Three Months Ended,
	September 30, 2025						June 30, 2025						September 30, 2024
	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
	(Dollars in thousands)
Assets:
Loans⁽¹⁾	$	1,684,075	$	20,608	4.89	%	$	1,647,763	$	19,763	4.80	%	$	1,548,962	$	17,646	4.53	%
Mortgage-backed securities		179,954		1,241	2.76	%		184,572		1,274	2.76	%		181,596		1,186	2.60	%
Other investment securities		146,726		1,557	4.24	%		153,985		1,638	4.26	%		173,008		1,527	3.51	%
FHLB stock		16,640		331	7.97	%		17,490		349	7.98	%		17,666		406	9.15	%
Cash and cash equivalents		39,505		394	3.99	%		41,998		414	3.95	%		61,507		767	4.96	%
Total interest-earning assets		2,066,900		24,131	4.67	%		2,045,808		23,438	4.58	%		1,982,739		21,532	4.32	%
Non-interest earning assets		61,565						61,060						61,787
Total assets	$	2,128,465					$	2,106,868					$	2,044,526
Liabilities and shareholders' equity:
NOW, savings, and money market deposits	$	662,312		2,504	1.50	%	$	642,063		2,244	1.40	%	$	598,048		1,925	1.28	%
Time deposits		752,613		6,773	3.57	%		731,003		6,724	3.69	%		688,570		7,787	4.50	%
Interest-bearing deposits		1,414,925		9,277	2.60	%		1,373,066		8,968	2.62	%		1,286,618		9,712	3.00	%
FHLB advances		324,043		2,663	3.29	%		342,945		2,830	3.30	%		347,076		2,733	3.13	%
Total interest-bearing liabilities		1,738,968		11,940	2.72	%		1,716,011		11,798	2.76	%		1,633,694		12,445	3.03	%
Non-interest bearing deposits		25,559						24,885						23,421
Non-interest bearing other		43,513						41,824						43,713
Total liabilities		1,808,040						1,782,720						1,700,828
Total shareholders' equity		320,425						324,148						343,698
Total liabilities and shareholders' equity	$	2,128,465					$	2,106,868					$	2,044,526
Net interest income			$	12,191					$	11,640					$	9,087
Net interest rate spread⁽²⁾					1.95	%					1.82	%					1.29	%
Net interest margin⁽³⁾					2.34	%					2.28	%					1.82	%

(1)	Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans.
(2)	Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(3)	Net interest margin represents net interest income divided by average interest-earning assets.

BLUE FOUNDRY BANCORP AND SUBSIDIARY

Analysis of Net Interest Income

(Dollars in Thousands) (Unaudited)

	Nine Months Ended September 30,
		2025						2024
	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
	(Dollars in thousands)
Assets:
Loans⁽¹⁾	$	1,644,670	$	59,263	4.80	%	$	1,551,734	$	52,408	4.50	%
Mortgage-backed securities		184,746		3,838	2.77	%		169,765		3,022	2.37	%
Other investment securities		154,705		4,883	4.21	%		177,455		4,867	3.65	%
FHLB stock		17,266		1,079	8.33	%		18,335		1,345	9.77	%
Cash and cash equivalents		41,553		1,219	3.91	%		54,810		2,024	4.92	%
Total interest-earning assets		2,042,940		70,282	4.59	%		1,972,099		63,666	4.30	%
Non-interest earning assets		61,381						59,245
Total assets	$	2,104,321					$	2,031,344
Liabilities and shareholders' equity:
NOW, savings, and money market deposits	$	641,361	$	6,778	1.41	%	$	608,677	$	5,816	1.27	%
Time deposits		732,283		20,493	3.74	%		654,639		21,441	4.36	%
Interest-bearing deposits		1,373,644		27,271	2.65	%		1,263,316		27,257	2.87	%
FHLB advances		338,042		8,436	3.33	%		352,544		8,332	3.15	%
Total interest-bearing liabilities		1,711,686		35,707	2.79	%		1,615,860		35,589	2.93	%
Non-interest bearing deposits		25,286						24,992
Non-interest bearing other		42,015						42,120
Total liabilities		1,778,987						1,682,972
Total shareholders' equity		325,334						348,372
Total liabilities and shareholders' equity	$	2,104,321					$	2,031,344
Net interest income			$	34,575					$	28,077
Net interest rate spread⁽²⁾					1.80	%					1.37	%
Net interest margin⁽³⁾					2.26	%					1.90	%

(1)	Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans.
(2)	Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(3)	Net interest margin represents net interest income divided by average interest-earning assets.

BLUE FOUNDRY BANCORP AND SUBSIDIARY

Supplemental Information - Non-GAAP Financial Measures

(Unaudited)

This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Blue Foundry's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Blue Foundry's financial results. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Blue Foundry strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Net income, as presented in the Consolidated Statements of Operations, includes the provision for credit losses and income tax expense, while pre-provision net revenue does not.

	Three months ended
	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
	(Dollars in thousands, except per share data)
Pre-provision net revenue and efficiency ratio:
Net interest income	$	12,191		$	11,640		$	10,744		$	9,473		$	9,087
Other income		416			405			394			420			387
Total revenue		12,607			12,045			11,138			9,893			9,474
Operating expenses		13,886			13,539			13,629			12,881			13,267
Pre-provision net loss	$	(1,279	)	$	(1,494	)	$	(2,491	)	$	(2,988	)	$	(3,793	)
Efficiency ratio		110.2	%		112.4	%		122.4	%		130.2	%		140.0	%

Core deposits:
Total deposits	$	1,493,380		$	1,416,321		$	1,387,241		$	1,343,320		$	1,318,670
Less: time deposits		789,220			730,778			726,908			707,339			701,262
Core deposits	$	704,160		$	685,543		$	660,333		$	635,981		$	617,408
Core deposits to total deposits		47.2	%		48.4	%		47.6	%		47.3	%		46.8	%

Total assets	$	2,155,792		$	2,127,504		$	2,092,206		$	2,060,683		$	2,055,093
Less: intangible assets		79			134			189			244			300
Tangible assets	$	2,155,713		$	2,127,370		$	2,092,017		$	2,060,439		$	2,054,793

Tangible equity:
Shareholders' equity	$	314,397		$	321,300		$	326,663		$	332,198		$	339,299
Less: intangible assets		79			134			189			244			300
Tangible equity	$	314,318		$	321,166		$	326,474		$	331,954		$	338,999

Tangible equity to tangible assets		14.58	%		15.10	%		15.61	%		16.11	%		16.50	%

Tangible book value per share:
Tangible equity	$	314,318		$	321,166		$	326,474		$	331,954		$	338,999
Shares outstanding		20,761,225			21,591,757			22,047,649			22,522,626			22,990,908
Tangible book value per share	$	15.14		$	14.87		$	14.81		$	14.74		$	14.74

Blue Foundry Bancorp Reports Third Quarter 2025 Results