Blue Foundry Bancorp | 10-K: FY2025 Revenue: USD 96.99 B

Revenue: As of FY2025, the actual value is USD 96.99 B.

EPS: As of FY2025, the actual value is USD -0.51, missing the estimate of USD -0.43.

EBIT: As of FY2025, the actual value is USD -57.41 B.

Overall Financial Performance

Blue Foundry Bancorp reported a net loss of - $10.0 million for the year ended December 31, 2025, an improvement from a net loss of - $11.9 million for the year ended December 31, 2024. This decreased loss was mainly due to a $9.8 million increase in net interest income, partially offset by higher provision for credit losses and non-interest expenses.

Net Interest Income and Margin

Net interest income increased by $9.8 million, or 26.2%, to $47.4 million for the year ended December 31, 2025, from $37.6 million in 2024. The net interest margin for 2025 improved by 40 basis points to 2.30% from 1.90% in 2024. The yield on interest-earning assets increased by 31 basis points to 4.63%, while the cost of interest-bearing liabilities decreased by 18 basis points to 2.77% in 2025.

Provision for Credit Losses

Blue Foundry Bancorp recorded a provision for credit losses of $2.1 million in 2025, contrasting with a release of provision for credit losses of - $1.4 million in 2024. The 2025 provision included $1.5 million for loans and $653 thousand for commitments and letters of credit, alongside a release of provision of - $7 thousand on held-to-maturity securities.

Non-Interest Income and Expense

Non-interest income remained stable at $1.7 million in 2025, a slight decrease from $1.8 million in 2024. Non-interest expense rose by $4.4 million, or 8.3%, to $57.0 million in 2025 from $52.6 million in 2024, including $1.3 million in merger-related expenses. This increase was primarily driven by a $2.5 million rise in compensation and benefits costs and a $1.5 million increase in professional services, with $1.1 million of the latter being merger-related. The efficiency ratio was 116.11% in 2025, an improvement from 133.71% in 2024.

Financial Condition Highlights (As of December 31)

• Total Assets: Increased to $2.17 billion in 2025 from $2.06 billion in 2024.
• Cash and Cash Equivalents: $53.1 million in 2025, up from $42.5 million in 2024.
• Securities Available-For-Sale: Totaled $301.2 million in 2025, a 1.4% increase from $297.0 million in 2024.
• Securities Held-To-Maturity: Decreased to $27.0 million in 2025 from $33.1 million in 2024.
• Total Loans (Gross): Increased by $107.1 million, or 6.8%, to $1.69 billion in 2025 from $1.58 billion in 2024.
• Total Deposits: Increased by $166.6 million, or 12.4%, to $1.51 billion in 2025 from $1.34 billion in 2024. Uninsured deposits amounted to $344.1 million, or 22.79% of total deposits, in 2025.
• Borrowings: Decreased by $38.5 million, or 11.3%, to $301.0 million in 2025 from $339.5 million in 2024.
• Total Shareholders’ Equity: Decreased by $19.5 million, or 5.9%, to $312.7 million in 2025 from $332.2 million in 2024.

Loan Portfolio Composition (As of December 31)

• Residential: $510.6 million (30.20% of total loans) in 2025, compared to $518.2 million (32.72%) in 2024.
• Multifamily: $641.0 million (37.92%) in 2025, down from $671.1 million (42.38%) in 2024.
• Commercial Real Estate: $306.1 million (18.11%) in 2025, up from $259.6 million (16.40%) in 2024.
• Construction and Land: $51.4 million (3.04%) in 2025, down from $85.5 million (5.40%) in 2024.
• Junior Liens: $31.0 million (1.83%) in 2025, up from $25.4 million (1.61%) in 2024.
• Commercial and Industrial: $24.2 million (1.43%) in 2025, up from $16.3 million (1.03%) in 2024.
• Consumer and Other: $126.3 million (7.47%) in 2025, significantly up from $7.2 million (0.46%) in 2024.

Loan Originations and Purchases

Loan originations totaled $192.6 million in 2025, up from $116.0 million in 2024. Blue Foundry Bancorp acquired $137.8 million in consumer loans and purchased $46.5 million of conforming residential mortgages in New Jersey in 2025.

Non-Performing Assets (As of December 31)

Total non-performing assets were $11.4 million in 2025, compared to $5.1 million in 2024. Non-performing loans to total loans increased to 0.67% in 2025 from 0.33% in 2024. Non-performing assets to total assets increased to 0.55% in 2025 from 0.25% in 2024. Residential Non-accrual loans: $5.0 million in 2025, up from $4.4 million in 2024. Multifamily Non-accrual loans: $5.7 million in 2025, compared to - $0.0 million in 2024. Junior Liens Non-accrual loans: $0.2 million in 2025, up from $0.1 million in 2024. Commercial and Industrial Non-accrual loans: $0.4 million in 2025, down from $0.6 million in 2024.

Allowance for Credit Losses on Loans (As of December 31)

The allowance for credit losses on loans increased to $14.4 million in 2025 from $13.0 million in 2024. The allowance as a percentage of non-performing loans was 126.56% in 2025, down from 254.02% in 2024. The allowance as a percentage of total loans outstanding was 0.85% in 2025, slightly up from 0.83% in 2024.

Interest Rate Sensitivity

At December 31, 2025, an instantaneous 200 basis point increase in interest rates would lead to an estimated $65.2 million decrease in Net Portfolio Value (NPV), while a 100 basis point increase would result in a $32.7 million decrease. Conversely, a 100 basis point decrease in interest rates would result in a $31.2 million increase in NPV.

Outlook / Guidance

Blue Foundry Bancorp’s business strategy focuses on growing its presence and expanding its franchise, with a continued emphasis on commercial real estate and traditional commercial and industrial (C&I) lending to diversify its loan portfolio and increase overall yield. The merger with Fulton Financial Corporation is expected to be completed around April 1, 2026, subject to customary closing conditions. The company acknowledges that inflation and changes in the interest rate environment could reduce margins, yields, or origination levels, or increase defaults, potentially causing actual results to differ materially from expectations.