Blue Foundry Bancorp: Merger with Fulton Financial Corporation Approved!

Significant news has emerged for Blue Foundry Bancorp. This summary aims to clarify the recent developments regarding its merger, presenting the key details in straightforward language for retail investors.

1. What Happened? The Core Event

Fulton Financial Corporation will acquire Blue Foundry Bancorp. This merger means Blue Foundry will integrate into Fulton, and Blue Foundry will cease to exist as an independent company. The significant development is that the necessary regulatory approvals for this merger have now been secured. This transaction is structured as an all-stock deal, initially valued at approximately $200 million. Blue Foundry shareholders will receive 0.8130 shares of Fulton Financial Corporation (FULT) common stock for each share of Blue Foundry Bancorp (BLFY) common stock they own, rather than cash. This means your investment in Blue Foundry will directly convert into an investment in Fulton.

2. Key Dates and Timeline

Regulatory approvals for the merger have recently been finalized. The Federal Reserve approved the transaction on February 19, 2026. Previously, the Office of the Comptroller of the Currency had already approved the merger of the banks themselves. On February 23, 2026, the companies issued a joint press release announcing these approvals. They anticipate officially closing the deal and completing the merger around April 1, 2026.

3. Rationale Behind the Merger

The companies initially announced this merger in November 2025. Mergers typically occur for reasons such as expanding market presence, increasing customer base, and enhancing operational efficiency through combined operations. For Blue Foundry, which reported approximately $2.7 billion in assets at the time of the announcement, joining Fulton means becoming part of a significantly larger financial institution (Fulton had over $27 billion in assets). This integration offers Blue Foundry access to greater resources and a wider market reach. For Fulton, the acquisition strategically expands its presence into attractive New Jersey markets, complementing its existing operations. The filing indicates the merger is expected to deliver both strategic and financial benefits to Fulton. These include an estimated $15 million in annual cost savings and an expectation that the transaction will increase Fulton's earnings per share within the first year after closing.

4. Significance and Overall Impact

This merger carries significant implications. For Blue Foundry, it marks the end of its independence. The future of its customers, employees, and operations will now be integrated with Fulton. For investors, your investment in Blue Foundry will soon convert into an investment in Fulton. This definitive change resolves much of the previous uncertainty surrounding Blue Foundry's standalone future, but it also introduces new considerations regarding Fulton's performance and the integration process.

5. Who Does This Affect?

The merger will have distinct impacts on various stakeholders:

• Investors: For Blue Foundry stock (BLFY) holders, this represents a significant change. You will no longer hold BLFY shares; instead, you will receive 0.8130 shares of Fulton Financial Corporation (FULT) common stock for each BLFY share. Consequently, the value of your investment will depend entirely on Fulton's performance. Investors should also be aware of potential tax implications related to this stock-for-stock exchange and are advised to consult a tax advisor.
• Customers: Blue Foundry Bank customers will eventually transition to Fulton Bank customers. Fulton Bank, N.A. will assume their accounts, loans, and services. During the "systems conversion," which integrates Blue Foundry's technology into Fulton's, customers may experience temporary service disruptions or changes to account numbers, online banking access, and branch services. Clear communication from Fulton will be essential throughout this period.
• Employees: Blue Foundry employees will join a larger organization. While mergers can create new opportunities within an expanded structure, they often result in some job redundancies, particularly in overlapping administrative, management, and back-office operations, as the combined entity seeks to achieve cost savings.

6. What Comes Next? The Integration Process

The next critical step is the official closing of the merger, anticipated around April 1, 2026. Following the closing, Blue Foundry Bancorp will legally integrate into Fulton, and its stock (BLFY) will cease trading and be delisted from NASDAQ. Subsequently, Blue Foundry Bank will merge into Fulton Bank, N.A. This will be followed by the "systems conversion," where customer accounts and data transfer to Fulton's systems. This complex process typically unfolds over the subsequent few months after the legal merger is complete, with specific dates communicated to customers well in advance.

7. Key Takeaways for Investors

Here are the practical takeaways for investors:

• Stock Conversion: If you own BLFY, you will receive 0.8130 shares of Fulton (FULT) stock for each BLFY share you hold. The value of your investment will then depend on Fulton's performance.
• BLFY Delisting: BLFY stock will cease independent trading and be delisted from NASDAQ once the merger closes, expected around April 1, 2026.
• Research Fulton: If you intend to remain invested in the combined entity, thoroughly research Fulton Financial Corporation's financials, management team, strategic outlook, and market performance, as this will represent your new investment.
• Integration Risks: While regulatory approvals are complete, the merger's ultimate success hinges on effective integration. Monitor developments concerning customer retention, employee morale, and the realization of projected cost savings.
• Tax Implications: Consult a tax professional regarding the tax treatment of receiving Fulton shares in exchange for your Blue Foundry shares.
• End of Blue Foundry: Recognize that Blue Foundry Bancorp will cease to exist as a separate company. This is an acquisition, not merely a leadership change.