Fulton Financial Set to Acquire Struggling Blue Foundry Bancorp
Fulton Financial, based in Lancaster, Pennsylvania, has unveiled plans to acquire the struggling New Jersey community bank, Blue Foundry Bancorp, for a total of $243 million in stock. This was announced on Monday and represents a significant move for the $32 billion-asset Fulton.
Boosting Presence in Northern New Jersey
The acquisition is poised to enhance Fulton’s presence in the deposit-rich, densely populated Northern New Jersey marketplace, where it currently holds a comparatively minor presence. The deal is projected to close in the second quarter of 2026. Here
According to Curtis Myers, Fulton’s chairman and CEO, “The expansion in northern New Jersey aligns with our strategy of growing in our local markets and positions us well to drive organic growth across our commercial, consumer, wealth advisory and mortgage businesses.”
End of Blue Foundry as Publicly Traded Bank
For the $2.15 billion-asset Blue Foundry, this merger signifies the end of its four-year operation as a publicly traded bank. Blue Foundry, which operated as a depositor-owned mutual thrift for most of its history, reported losses exceeding $20 million during this period.
Persistent bottom-line woes compelled bank investor Larry Seidman to instigate a proxy campaign to push for its sale.
“It’s a good bank with good management,” Seidman said of Fulton. “Blue Foundry was horrible. They couldn’t make any money.”
Continuous Losses Despite Positive Signs
Despite the bank’s widening net interest margin and expanding loan portfolio, highlighted by Blue Foundry CEO Jim Nesci in a January conference call, the losses have continued. The bank recorded losses totaling $6.5 million through the first nine months of 2025.
However, shareholders seemed to embrace the real deal on Monday, with Blue Foundry shares trading up an impressive 40% at $11.05 in the afternoon.
Impact and Potential of the Deal
The deal’s $243 million price tag equates to 77% of Blue Foundry’s tangible book value. The amalgamation is anticipated to have an immediate positive impact on Fulton’s results, boosting tangible-book-value-per-share by 26 cents in 2026 and 44 cents in 2027.
Christopher Marinac, an analyst at Janney Montgomery Scott, mentioned, “Our projections factor $50 million in additional earnings in 2027.”
Blue Foundry’s Historical Context
Blue Foundry was established in 1939 as the Boiling Springs Savings & Loan Association, following the merger of two smaller thrifts. It transitioned to a public company in July 2021 after raising $278 million in a stock offering.
Federal regulators mandate that converted mutual banks must operate for at least three years before they can be acquired.
Attractive Footprint Despite Struggles
Despite struggling to turn a profit, Blue Foundry does have an attractive footprint in Northern New Jersey, including Bergen, Union, and Essex counties. The combined deposit market in these areas exceeds $124 billion, according to the Federal Deposit Insurance Corp.
The combined company is expected to start with over 220 branches, $34 billion of assets, and $28 billion of deposits — including $1.8 billion within the Bergen-Essex-Morris marketplace.
“This partnership allows us to preserve the local relationships and personalized service our customers value, while gaining access to greater resources and providing more solutions and convenience to customers,” Blue Foundry’s Nesci said in Monday’s press release.
Fulton’s Acquisitive History
Fulton, holding company for the 143-year-old Fulton Bank, has a history of acquisitions. Its most recent acquisition involved the takeover of Republic First Bancorp after the Philadelphia bank was shuttered by the FDIC in April 2024. Fulton also completed a $142 million acquisition of Philadelphia-based Prudential Bancorp in 2022.
