Blue Factory (BLFY) Q2 2025 Profit Declaration Transcript
Blue Foundry Bancorp, a financial institution based in the UK, has announced its financial results for the second quarter of 2025. The company reported a net loss of $2.0 million for Q2 2025, an improvement from the $2.7 million loss in Q1 2025 and a decrease compared to the $2.3 million loss in Q2 2024. Earnings per share (EPS) for Q2 2025 were $(0.10), beating estimates and showing progress compared to prior periods.
The financial highlights for Q2 2025 compared to Q1 2025 include significant growth in loans and deposits. Loan growth was $47.4 million, bringing total loans to $1.67 billion. Deposit growth was $29.1 million, with total deposits reaching $1.42 billion. The net interest margin expanded by 12 basis points to 2.28%, reflecting improved profitability on earning assets. Interest income increased by 3.2% to $23.4 million, while interest expenses decreased by 1.4%.
Core deposits rose by $25.2 million, enhancing funding stability. The bank maintained strong asset quality, with a low allowance for credit losses ratio of 0.80% and non-performing loans at 0.38% of loans.
Other key metrics for Q2 2025 include a 13 basis point decrease in the cost of deposits to 2.62%, a 8.3% increase in Net Interest Income, and a decrease in noninterest expenses by $90,000 due to seasonal occupancy factors. The company expects noninterest expenses to remain in the "mid to high $13 million range" over the next several quarters, with potential modest increases for variable compensation in the second half of the year.
The tangible book value per share increased to $14.87, up 6¢ from the prior quarter. A total of 406,000 shares were repurchased at a weighted average price of $9.42, below tangible book value.
The favourable trends suggest progress in Blue Foundry Bancorp’s profitability and operational efficiency for Q2 2025. The net loss for the quarter was $2 million, a $735,000 improvement from the prior quarter. The conference call took place on Wednesday, July 30, 2025 at 12:00 a.m. ET.
During the call, CEO James Nesci and CFO Kelly Pecoraro discussed the company's strategic efforts to grow core deposits through comprehensive client relationship management, particularly within commercial banking. They also highlighted the addition of $45 million in credit-enhanced consumer loans and $19 million in residential loans to the balance sheet.
CFO Pecoraro stated that the company is comfortable going to about 7% to 8% of the loan portfolio over the next couple of quarters for credit-enhanced consumer loans. She also mentioned that the allowance for credit losses to total loans dropped one basis point.
The call also addressed the company's capital ratios, which are at 15.1%, among the highest in the industry. The allowance to nonperforming loans fell to 211% from 230% sequentially. The cost of funds also fell 13 basis points to 2.72%.
In conclusion, Blue Foundry Bancorp's Q2 2025 financial results indicate an improving financial trajectory with narrowing losses, expanding loan and deposit volumes, and better margins compared to the previous quarter and last year. The favourable trends suggest progress in Blue Foundry Bancorp’s profitability and operational efficiency for Q2 2025.
- The net loss for the quarter was reduced, indicating an improvement in Blue Foundry Bancorp's financial performance as compared to the previous quarter.
- CFO Kelly Pecoraro mentioned that Blue Foundry Bancorp is planning to expand their credit-enhanced consumer loans, aiming to have up to 8% of their loan portfolio.
- Blue Foundry Bancorp's capital ratios are among the highest in the industry, demonstrating strong financial stability.
- The company's conference call discussed their strategic plans for business growth, focusing on growing core deposits through comprehensive client relationship management in commercial banking.
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