Blue Foundry BLFY Q2 2025 Earnings Preview Expect Upside from Strong Loan Growth and Improved Margins

Forward-Looking Analysis
Blue Foundry Bancorp is forecasted to experience significant growth with earnings and revenue projected to increase by 70.7% and 19.2% per annum, respectively. Analysts expect the EPS to grow by 63.8% annually. In the first quarter of 2025, Blue Foundry reported an EPS of -$0.13, surpassing the consensus estimate of -$0.16. The company experienced a net loss of $2.7 million, but the results were better than expected, contributing to a mixed market reaction. The company’s management has consistently performed well, often beating expectations. The focus remains on growing the commercial and consumer loan portfolios, with credit quality remaining strong.

Historical Performance Review
In the first quarter of 2025, Blue Foundry reported a net loss of $2.69 million, with an EPS of -$0.13. The company showed improvement in net interest margin, which increased by 27 basis points to 2.16%. Despite the loss, the company demonstrated strong loan growth, with an increase of $42.2 million in the loan portfolio, and a 3.27% rise in deposits to $1.39 billion. The tangible book value per share increased to $14.81, reflecting the company's robust capital position.

Additional News
Blue Foundry Bancorp has continued its focus on expanding its lending portfolio, achieving a $42 million loan growth in the first quarter of 2025. The company has been actively purchasing unsecured consumer loans, which have improved yields with minimal credit loss exposure. Additionally, the commercial real estate portfolio saw an increase of $28.5 million. The company has also been successful in attracting deposits, with a notable increase in NOW and demand accounts, as well as a rise in brokered deposits. These strategic moves align with Blue Foundry’s goal to strengthen its position in the competitive northern New Jersey market.

Summary & Outlook
Blue Foundry Bancorp is demonstrating a solid financial position, with notable growth in its loan portfolio and a strong net interest margin. The company’s focus on expanding commercial and consumer loans, coupled with robust credit quality, positions it well for future growth. Despite reporting a net loss, the positive trajectory in earnings and revenue projections indicates a bullish outlook. The bank's strategic moves in increasing deposits and managing interest expenses are expected to bolster financial health, making it an attractive prospect for investors seeking growth in the banking sector.