- Net Loss Reported a net loss of $2 million or $0.10 per diluted share for Q2 2025.
- Deposit Growth Grew core deposits, expanding net interest margin for the third consecutive quarter.
- Net Interest Income Increased by $896,000 (8.3%) due to a 12 basis point margin expansion.
- Loan Growth Loans grew 3% during the quarter, with $180 million in loan production year-to-date.
- Stock Repurchase Repurchased 406,000 shares at a weighted average price of $9.42.
Financial Performance
The company's tangible book value per share increased to $14.87, up $0.06 from the prior quarter. The company repurchased 406,000 shares at a weighted average price of $9.42 during the quarter. Looking ahead, the company expects the net interest margin to expand by only a couple of basis points in the third quarter, with more significant improvement expected in 2026. According to the company's management, "We continue to execute on our transformation strategy, with a focus on growing core deposits, expanding our net interest margin, and investing in our commercial franchise." (1)
Valuation and Return Metrics
At current prices, Blue Foundry Bancorp trades at a Price-to-Tangible Book Value (P/TBV) of 0.63x, which suggests that the stock may be undervalued given its strong capital position and improving profitability. The stock also trades at a P/E Ratio of -15.12, which is not meaningful given the company's current loss. However, the Dividend Yield is 0.0%, which is expected given the company's current focus on growth over income. The company's Return on Equity (ROE) was -1.46%, which is a slight improvement from the prior quarter.
Asset Quality and Expense Discipline
Asset quality remains strong, with nonperforming assets to total assets ticking up by 3 basis points and nonperforming loans to total loans also ticking up by 3 basis points. The allowance for credit losses to total loans declined by 1 basis point to 80 basis points. The company also maintained expense discipline, with noninterest expense decreasing by $90,000 compared to the prior quarter. The company expects expenses to stay within the mid- to high $13 million range.
Outlook and Growth Prospects
The company has a healthy loan pipeline, with executed letters of intent totaling more than $40 million at quarter end. The company is focused on growing noninterest-bearing deposits, with a strategy to deepen relationships with commercial customers and offer a full range of products. Analysts estimate that the company's revenue growth will be 18.3% next year, which suggests that the stock may have significant upside potential given its current valuation.