Fulton Financial to Acquire Blue Foundry in $243M All-Stock Deal
The acquisition expands Fulton's footprint in northern New Jersey, with the Pennsylvania-based bank leveraging its scale in a regionally strategic market.
Fulton Financial Corporation announced Monday it will acquire Blue Foundry Bancorp in an all-stock transaction valued at approximately $243 million, a strategic move designed to significantly expand Fulton's presence in northern New Jersey.
The deal sent shares of Blue Foundry (BLFY) surging in morning trading, while Fulton Financial's (FULT) stock also advanced, signaling investor approval for the regional banking consolidation.
Under the terms of the definitive agreement, each share of Blue Foundry common stock will be exchanged for 0.6500 shares of Fulton common stock. Based on Fulton’s closing price on November 21, the transaction implies a value of $11.67 per Blue Foundry share, a notable premium over its recent trading levels. By mid-morning, Blue Foundry's stock had climbed over 3% to trade around $7.92.
"The combination of our companies creates an opportunity to leverage Fulton’s robust banking services and provide greater convenience and innovative solutions to an expanded customer base," said Curtis J. Myers, Chairman and CEO of Fulton, in a statement released on Monday. Myers emphasized that the expansion aligns with the bank's growth strategy in key local markets.
The acquisition provides Fulton, a Lancaster, Pennsylvania-based institution with a significant Mid-Atlantic footprint, access to Blue Foundry’s established customer base and branch network in what it calls "highly attractive" New Jersey markets. For Blue Foundry, a community-focused bank headquartered in Rutherford, New Jersey, the merger offers its customers access to a broader suite of products and services.
"Joining forces with Fulton is an exciting step forward for our employees, customers and communities," said James D. Nesci, President and CEO of Blue Foundry. "This partnership allows us to preserve the local relationships and personalized service our customers value, while gaining access to greater resources."
Financially, Fulton projects the deal will be more than 5% accretive to its earnings in the first full year after closing. The company also anticipates the transaction will be immediately accretive to its tangible book value per share and will have a neutral impact on regulatory capital ratios at closing. This financial structure suggests a disciplined approach to expansion that avoids immediate dilution of shareholder equity or stressing its balance sheet.
The market reacted positively to the strategic rationale and financial terms. Shares of Fulton Financial rose nearly 4% to $17.96 in Monday's session, indicating that its shareholders view the acquisition as a value-additive move. This reaction is a positive sign in a market that can often be skeptical of an acquirer's stock performance post-announcement.
As part of the agreement, Fulton will make a $1.5 million contribution to its Fulton Forward® Foundation, which will be designated for nonprofit community organizations in New Jersey, underscoring a commitment to the new markets it is entering.
The merger, which has been unanimously approved by the boards of both companies, is expected to close in the second quarter of 2026. The completion of the transaction remains subject to customary closing conditions, including approvals from banking regulators and Blue Foundry Bancorp's stockholders. Following the closing, Blue Foundry Bank will merge into Fulton's subsidiary, Fulton Bank, N.A.