Blue Foundry Bancorp: Shareholders Approve Merger with Fulton Financial!

1. Event Description Blue Foundry Bancorp announced that its shareholders have approved the merger with Fulton Financial Corporation. According to the merger agreement, each share of Blue Foundry Bancorp common stock will convert into 0.65 shares of Fulton Financial Corporation common stock. Once the merger closes, Blue Foundry Bancorp will no longer operate independently, integrating into Fulton Financial Corporation.

2. Event Date/Timeline Shareholder approval took place on January 29, 2026, at a Special Meeting. A strong majority of Blue Foundry shareholders—approximately 92% of outstanding shares—voted in favor of the merger. The merger agreement was originally signed on November 24, 2025. The transaction still requires regulatory approvals, including from the Federal Reserve, and is expected to close in the second quarter of 2026. After the closing, Blue Foundry Bancorp's stock (BLFY) will stop trading on NASDAQ.

3. Financial Impact Based on the 0.65 exchange ratio, the filing didn't specify the total transaction value, which is a bit of a gap for investors. Fulton Financial expects to achieve about 30% in annual cost savings by combining operations and reducing duplicate roles—that's a pretty significant number that could boost their bottom line. The merger will also significantly expand Fulton's presence, adding approximately $2.8 billion in deposits and $2.3 billion in loans. However, the filing didn't detail whether this merger is expected to boost or dilute Fulton's earnings per share (EPS) or tangible book value per share. These are usually key metrics investors look at to understand the financial benefit (or cost) of a merger. One-time merger costs are expected, but specific figures weren't disclosed, so it's hard to gauge the immediate impact.

4. Impact Assessment The merger will impact various stakeholders:

• Investors/Shareholders: Blue Foundry Bancorp shareholders will convert their shares into Fulton Financial Corporation shares at the 0.65 exchange ratio, giving them an ownership stake in Fulton Financial.
• Management & Employees: Blue Foundry's President and CEO, James D. Nesci, is expected to join Fulton's Board of Directors. Other Blue Foundry leaders and employees may integrate into Fulton's structure, or face changes, including potential job redundancies as operations merge to achieve cost savings.
• Customers (Depositors & Borrowers): Customer accounts will eventually transition to Fulton Financial. Deposits remain FDIC-insured, and loan terms will transfer. Customers can expect new branding, potentially new services, and access to a larger branch network.
• The Company: Blue Foundry Bancorp will stop operating as an independent public company, joining a larger, more diversified banking group. This strategic move addresses Blue Foundry's recent financial challenges and leverages Fulton Financial's scale and resources.

5. Key Takeaways for Investors

• Share Conversion: Upon closing, BLFY shareholders will receive 0.65 shares of FULT for each BLFY share they own.
• Research Fulton: Shareholders should research Fulton Financial Corporation (FULT) to understand its business, financials, and future prospects, as they will become FULT shareholders.
• Regulatory Approvals: Regulatory approvals are still required and could affect the closing timeline. Investors should monitor related announcements.
• Merger Arbitrage: BLFY's stock price will likely trade in relation to Fulton's, reflecting the exchange ratio and a discount for the remaining time and risk until closing.
• Risk: While shareholder approval is a significant step, a small risk remains that regulatory hurdles or unforeseen issues could delay or derail the merger.