Fulton Financial Receives Fed Approval for Blue Foundry Merger
Fulton Financial has received approval from the Federal Reserve to acquire Blue Foundry Bancorp and its subsidiary, Blue Foundry Bank. This regulatory clearance is a key milestone in the bank consolidation deal. The transaction illustrates the ongoing M&A and regulatory dynamics within the regional banking sector.
- The all-stock transaction is valued at approximately $243 million, with each share of Blue Foundry common stock to be exchanged for 0.6500 shares of Fulton common stock. This implies a value of $11.67 per share for Blue Foundry based on Fulton's stock price on November 21, 2025. - Fulton's acquisition of Blue Foundry, headquartered in Rutherford, New Jersey, will significantly expand its presence in the northern New Jersey market. Blue Foundry brings approximately $2.2 billion in assets and 21 branches across eight counties. - The deal is expected to be over 5% accretive to Fulton's earnings in the first full year and immediately accretive to tangible book value per share. - Blue Foundry Bancorp's stockholders approved the merger on January 29, 2026, with 16,476,512 votes in favor out of 20,761,225 eligible shares. - For the year ended December 31, 2024, Blue Foundry reported a net loss of $11.9 million, or $0.55 per diluted common share. The company also experienced a revenue decline of 21.1% over the past three years and had a negative net margin of -20.15%. - The transaction was originally announced on November 24, 2025, and is anticipated to close on or around April 1, 2026. - Following the closing, Blue Foundry Bank will merge into Fulton's subsidiary, Fulton Bank, N.A., with the systems conversion planned for mid-2026. - Fulton Financial was advised by Stephens Inc. as the financial advisor and Holland & Knight LLP as legal counsel. Luse Gorman served as legal counsel to Blue Foundry.
