Blue Foundry Bancorp (BLFY): Business Model Canvas [Dec-2025 Updated]

You're looking at a bank right in the middle of a major transition, and honestly, understanding the mechanics is key to seeing where the value is headed. As of Q3 2025, Blue Foundry Bancorp is sitting on $2.16 billion in total assets while actively engineering its business model-focusing hard on core deposit growth and loan diversification-all before the big $243 million all-stock merger with Fulton Financial closes in 2026. We've mapped out exactly how they generate that $12.2 million net interest income and what key resources, like their 17 branch locations, they are leaning on; dive in below to see the full nine blocks of their current operational blueprint.

Blue Foundry Bancorp (BLFY) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships Blue Foundry Bancorp (BLFY) relies on to execute its business model, especially in light of the announced acquisition. These partnerships are key to funding, technology, and community presence.

The most significant partnership is the pending acquisition by Fulton Financial Corporation. This all-stock merger, announced in late November 2025, fundamentally changes BLFY's structure, with Blue Foundry Bank, the wholly owned subsidiary, merging into Fulton Bank, N.A. following the expected close in the second quarter of 2026.

Here's a breakdown of the transaction specifics:

Partnership Aspect	Partner Entity	Key Financial/Statistical Data
Acquisition Agreement	Fulton Financial Corporation	Transaction valued at approximately $243 million.
Exchange Terms	Fulton Financial Corporation	0.6500 shares of Fulton common stock per share of Blue Foundry common stock.
Valuation Basis	Fulton Financial Corporation	Based on Fulton's share price of $17.96 as of November 21, 2025, equating to $11.67 per share of BLFY.
Expected Financial Impact	Fulton Financial Corporation	Expected to be accretive to first full-year earnings by over 5% and immediately accretive to tangible book value per share.

For liquidity and wholesale funding, Blue Foundry Bancorp has historically relied on borrowings, which consist solely of advances from the Federal Home Loan Bank of New York. As of March 31, 2025, the total borrowings figure stood at $334.0 million. Management views these wholesale funding sources, alongside deposit inflows and loan payments, as primary sources of funds.

Community engagement is cemented through a commitment tied to the merger. As part of the agreement, Fulton will make a specific contribution to local efforts:

• A planned contribution of $1.5 million to the Fulton Forward Foundation.
• This funding is designated for impact grants supporting nonprofit community organizations in New Jersey.

Regarding technology infrastructure, Blue Foundry Bancorp utilizes external providers for its digital offerings. The bank promotes its free online banking, eMobile Banking, and eBillPay services, noting that BillPay is 'Powered by cutting-edge technology'. While the specific names of the third-party vendors for core processing or the digital platform are not explicitly detailed in the latest filings, the reliance on these external technology partners is clear for delivering services like instant card management and real-time alerts. You know that core processing relationships are mission-critical for any bank; if onboarding takes 14+ days, churn risk rises.

Blue Foundry Bancorp (BLFY) - Canvas Business Model: Key Activities

You're looking at the core engine room of Blue Foundry Bancorp as of late 2025. The key activities here are all about balance sheet management, growth in specific asset classes, and preparing for the transition to Fulton Financial Corporation.

Originating and servicing a diversified loan portfolio of $1.71 billion.

The primary activity is managing and growing the loan book, which reached $1.71 billion in total loans held for investment by September 30, 2025. This represented a quarterly increase of $41.9 million over the linked quarter. You see the bank actively managing the composition of that portfolio to improve yields.

Here's a breakdown of the loan portfolio shifts over the first nine months of 2025:

• The total loan book grew by $131.4 million year-to-date September 30, 2025.
• The bank purchased consumer and residential loans totaling $123.8 million and $35.3 million, respectively, in the first nine months of 2025.
• Non-performing loans stood at $11.4 million, or 0.66% of total loans, as of September 30, 2025.

Attracting and retaining low-cost core deposits from the general public.

Securing stable, inexpensive funding is defintely a top activity. Deposits totaled $1.49 billion at the end of the third quarter of 2025, an increase of $77.1 million from the linked quarter. The focus is clearly on the stickier, lower-cost funding sources.

The core deposit base saw growth, increasing by $18.6 million compared to the linked quarter. This effort to attract the full banking relationship, especially with small- to medium-sized businesses, is central to funding operations without relying too heavily on higher-cost alternatives.

Deposit Metric (As of September 30, 2025)	Amount	Change from Dec 31, 2024
Total Deposits	$1.49 billion	Increase of $150.1 million (or 11.17%)
Core Deposits	Data Not Explicitly Stated	Increase of $18.6 million (Quarter-over-Quarter)

Strategic pivot toward higher-yielding consumer and owner-occupied CRE loans.

Management is actively steering the ship toward better risk-adjusted returns. This isn't just talk; you can see the dollars moving. The strategy involves growing specific asset classes while managing down others, like construction and multifamily loans.

The growth in targeted areas for the first nine months of 2025 was substantial:

• Consumer loan portfolio grew by $114.5 million.
• Commercial Real Estate (CRE) portfolio grew by $57.4 million.
• Within CRE, owner-occupied properties accounted for $46.3 million of that growth.
• The bank even set a specific goal in Q2 2025 to capture a 7-8% share of the consumer loan market.

The goal is clear: better yield. Management expects a meaningful Net Interest Margin benefit in 2026 as roughly ~$80 million of lower-rate loans roll over, much of it in the first half of 2026.

Managing an investment securities portfolio for liquidity and yield.

Maintaining a liquid buffer is always a key activity, especially in the current environment. Blue Foundry Bancorp held approximately $178 million in unencumbered securities as of the third quarter of 2025. This portfolio acts as a source of immediate liquidity, separate from the core lending assets.

The overall balance sheet management is showing results in profitability metrics, with the Net Interest Margin (NIM) expanding to 2.34% for the third quarter of 2025, up six basis points from the linked quarter.

Executing the merger integration plan with Fulton Financial.

This is the most significant near-term activity shaping the future. Blue Foundry Bancorp entered a definitive agreement to be acquired by Fulton Financial Corporation in an all-stock transaction. The deal value, based on Fulton's share price of $17.96 on November 21, 2025, was approximately $243 million.

The integration plan involves several concrete steps and expectations:

• The transaction is expected to close in the second quarter of 2026.
• Blue Foundry Bank will merge into Fulton Bank, N.A., upon closing.
• The deal is projected to be accretive to Fulton's first full-year earnings by over 5%.
• Fulton committed to a $1.5 million contribution to the Fulton Forward® Foundation to support New Jersey nonprofits as part of the transaction.

Finance: draft 13-week cash view by Friday.

Blue Foundry Bancorp (BLFY) - Canvas Business Model: Key Resources

You're looking at what Blue Foundry Bancorp (BLFY) actually holds in its vault-the stuff that makes the business run day-to-day. These aren't abstract ideas; they're hard numbers and tangible assets that back up their operations in northern New Jersey.

The balance sheet strength is definitely a core resource here. It shows you the financial foundation they are standing on as of the third quarter of 2025. Here's a quick look at the key financial anchors:

Financial Metric	Value (As of Q3 2025)
Total Assets	$2.16 billion
Common Equity Tier 1 (CET1) Ratio	17.63%
Tangible Book Value Per Share	Exceeding $15

That CET1 ratio, for instance, tells you how much high-quality capital they have relative to their risk-weighted assets. A ratio of 17.63% is solid; it means they can absorb unexpected losses better than many peers.

Beyond the numbers on the ledger, the physical footprint and the people running the show are critical resources for a community bank like Blue Foundry Bancorp (BLFY). These are the touchpoints and the expertise that drive customer relationships.

The physical infrastructure includes:

• 17 physical branch locations across northern New Jersey counties.

And the human capital, which is often the most valuable resource in banking, centers on specialized teams:

• Experienced commercial lending teams.
• Relationship management teams.

Honestly, for a bank of this size, those experienced teams are what allow them to compete for business loans and maintain client loyalty. That tangible book value per share, which is over $15, gives you a clear measure of the equity backing each share, which is a key resource for investor confidence.

Blue Foundry Bancorp (BLFY) - Canvas Business Model: Value Propositions

You're looking at what Blue Foundry Bancorp offers its customers, the core value it delivers. It's a blend of old-school relationship banking and necessary modern financial products.

Full-service banking for both individuals and small-to-medium-sized businesses (SMBs).

Blue Foundry Bancorp positions itself as a full-service bank, offering tailored products and services to both individuals and businesses. The strategy specifically focuses on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products.

Personalized, community-focused service with a 145+ year history.

The bank emphasizes a longstanding commitment to its customers and communities, backed by a rich history dating back more than 145 years. This history underpins the personalized service model, even as they look toward a future partnership that aims to preserve local relationships.

Tailored loan products, including residential, multi-family, and C&I loans.

Blue Foundry Bancorp's business involves originating one-to-four-family residential, multi-family, and non-residential real estate mortgages, home equity loans and lines of credit, and commercial and industrial (C&I) loans. Management is steering toward higher-yield lending and diversified risk. As of September 30, 2025, total loans held for investment reached $1.71 billion.

Here's a look at how the loan portfolio composition changed in the first nine months of 2025:

Loan Category	Balance as of 9/30/2025 (Approximate)	Change YTD (Approximate)
Total Loans Held for Investment	$1.71 billion	Increased $131.4 million
Commercial Real Estate (CRE)	$317.1 million (as of 9/30/25)	Increased $57.4 million
Consumer Loans	$121.8 million (as of 9/30/25)	Increased $114.5 million
Commercial and Industrial (C&I)	N/A	Increased $8.0 million

The growth was driven by purchases of consumer loans and increases in CRE, with owner-occupied properties accounting for $46.3 million of the CRE increase.

Financial stability, maintaining a well-capitalized status on all measures.

The Bank's capital ratios remain above the FDIC's "well capitalized" standards. Tangible equity to tangible assets stood at 14.58% as of September 30, 2025. You can see the strength in the regulatory capital position:

• CET1 Ratio: 17.63% (well above minimum 4.5%)
• Tier 1 Leverage Ratio: 13.36%
• Tangible Common Equity per Share: $15.14 at September 30, 2025

Also, the Net Interest Margin (NIM) improved to 2.34% in the third quarter of 2025, up six basis points from the linked quarter.

Innovative solutions and greater convenience post-merger, defintely.

Blue Foundry Bancorp announced an all-stock merger with Fulton Financial, valued at approximately $243 million, or $11.67 per share based on Fulton's November 21, 2025 price. This partnership is intended to provide access to greater resources and offer more solutions and convenience to customers. The transaction is expected to be immediately accretive to tangible book value per share. Management also signals confidence through share repurchases, buying back 837,388 shares in Q3 2025 at a weighted average price of $9.09 per share. Finance: draft 13-week cash view by Friday.

Blue Foundry Bancorp (BLFY) - Canvas Business Model: Customer Relationships

You're looking at how Blue Foundry Bancorp (BLFY) connects with and serves its customers as of late 2025, right before the Fulton Financial acquisition was announced. The bank's approach centers on deep, localized service, especially for its business clients.

Full-relationship banking model to capture all customer needs.

Blue Foundry Bancorp explicitly states its strategy is to focus on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products. This means they aim to be the primary financial institution for these businesses, not just a transactional provider. Evidence of success in attracting core funding is seen in the deposit growth through the first nine months of 2025.

• Deposits totaled $1.49 billion at September 30, 2025.
• Total deposits increased by $150.1 million, or 11.17%, from December 31, 2024, through Q3 2025.
• Core deposits represented 47.6% of total deposits as of March 31, 2025.

Dedicated, personalized service from local branch staff.

The foundation of the relationship model is the physical presence in northern New Jersey, offering personalized service that digital-only competitors often can't match. While the number of branches isn't explicitly stated for 2025, the focus on local relationships supports the C&I growth strategy.

High-touch service for commercial and industrial (C&I) clients.

The bank prioritizes growing its commercial portfolio, which typically requires more intensive, high-touch relationship management. This focus is reflected in the loan book expansion during the first nine months of 2025.

The growth in the C&I segment, alongside commercial real estate, shows where relationship efforts are being directed:

Loan Portfolio Class (as of Sept 30, 2025)	Total Loans Receivable (In thousands)	Change in Loans (9 months ended Sept 30, 2025)
Total Loans Held for Investment	$1,710,000	Increased $131.4 million
Commercial and Industrial (C&I)	Data Not Separated	Increased $8.0 million
Commercial Real Estate	Data Not Separated	Increased $57.4 million

Self-service options via digital and online platforms.

Blue Foundry Bancorp supports its relationship model with digital tools, recognizing that even relationship-focused customers expect convenience. While specific Blue Foundry Bancorp digital adoption metrics for 2025 aren't in the reports, the broader banking environment shows a clear trend toward digital reliance. For context, over 83% of U.S. adults used digital banking services as of 2025. Also, 72% of global banking customers preferred using mobile apps for core banking services in 2025. The bank's digital transformation efforts are aimed at reducing turnaround times and enhancing satisfaction, which supports the high-touch service by handling routine tasks efficiently.

The tangible book value per share was $15.14 at September 30, 2025. The proposed acquisition by Fulton Financial in November 2025 valued Blue Foundry Bancorp at $243 million in stock.

Finance: draft cash flow impact analysis for Q4 2025 by next Tuesday.

Blue Foundry Bancorp (BLFY) - Canvas Business Model: Channels

You're looking at how Blue Foundry Bancorp (BLFY) connects its value proposition to its customers as of late 2025. The channels are a mix of traditional brick-and-mortar presence and modern digital access, all set against the backdrop of a pending acquisition by Fulton Financial Corporation, valued at approximately $243 million as of November 21, 2025.

Physical Branch Network

The physical branch network remains a core channel, focused entirely within northern New Jersey. This network is designed to serve the doers, movers, and shakers in the local communities.

The physical channel footprint is detailed as follows:

• Physical branch network of 17 offices in northern New Jersey.
• Service area covers Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Somerset, and Union Counties.

Here's a snapshot of the balance sheet activity supported by these channels and digital platforms as of the third quarter ended September 30, 2025:

Metric	Amount (as of 9/30/2025)	Change from Linked Quarter
Total Loans Held for Investment	$1.71 billion	Increased $41.9 million
Total Deposits	$1.49 billion	Increased $77.1 million
Net Interest Margin	2.34%	Increased six basis points
Interest Income for the Quarter	$24.1 million	Increase of $693 thousand (3.0%)

Online and Mobile Banking Platforms

Digital channels provide essential account access and transaction capabilities for Blue Foundry Bancorp customers. While specific adoption rates aren't detailed for late 2025, loan origination activity shows a strong component of direct engagement, which often complements digital platforms.

For context on lending activity flowing through these channels, consider the first quarter of 2025:

• Originated $90 million in new loans.
• Weighted average yield on these new loans was ~7.1%.

Direct Loan Origination Teams

Direct teams focus on commercial and real estate lending, driving portfolio diversification and yield enhancement. The strategy emphasizes obtaining the full banking relationship.

The composition of loan growth in the first nine months of 2025, which flows through these direct origination channels, shows specific asset class focus:

Loan Category	Increase (9 Months Ended 9/30/2025)
Consumer Loans (Purchased)	$114.5 million
Commercial Real Estate Loans	$57.4 million (of which $46.3 million was owner-occupied)
Commercial and Industrial Loans	$8.0 million

The focus on owner-occupied properties within CRE lending is a key action point for these teams.

ATMs and Debit Card Networks

Cash access and transactional convenience are supported by ATM and debit card networks, though specific network statistics like surcharge-free ATM counts or debit card transaction volumes for Blue Foundry Bancorp in late 2025 aren't explicitly published in the latest releases. The availability of a Debit Card Center, which allows customers to manage cards, turn them on/off, and add them to digital wallets, is a feature of the overall service delivery, which is being integrated into the acquiring entity, Fulton Bank.

The bank maintains a routing number of 221271359 for processing electronic transfers.

Blue Foundry Bancorp (BLFY) - Canvas Business Model: Customer Segments

Individuals and consumers in northern New Jersey (Bergen, Essex, Hudson, etc.)

Blue Foundry Bancorp has a presence in Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Somerset and Union counties in New Jersey.

The bank's total deposits were reported at $1.49 billion as of September 30, 2025.

Small-to-medium-sized businesses (SMBs) requiring commercial loans and deposits

The Company's strategy is to focus on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products.

Core deposits grew in Q1 2025, supported by commercial customer relationships.

Real estate investors and developers seeking multi-family and non-residential mortgages

Total loans held for investment reached $1.71 billion at September 30, 2025.

Loan production in Q1 2025 included $33 million in commercial real estate loans.

For the nine months ended September 30, 2025, Commercial Real Estate loans increased by $57.4 million, while the multifamily portfolio decreased by $23.8 million.

The composition of loan portfolio changes for the nine months ended September 30, 2025, is detailed below:

Loan Category	Change in Balance (Nine Months Ended 9/30/2025)
Consumer Loans	Increase of $114.5 million
Commercial Real Estate Loans	Increase of $57.4 million
Commercial and Industrial Loans	Increase of $8.0 million
Construction Loans	Decrease of $25.0 million
Multifamily Loans	Decrease of $23.8 million

Retail depositors seeking savings, NOW, and demand accounts

Total deposits at September 30, 2025, were $1.49 billion.

Core deposits, defined as non-interest bearing checking, NOW and demand accounts and savings accounts, represented 57.8% of total deposits, excluding brokered deposits, at September 30, 2025.

The increase in total deposits of $150.1 million from December 31, 2024, was driven by increases of $87.5 million in NOW and demand accounts and $81.9 million in time deposits, partially offset by a decrease of $18.3 million in savings accounts.

Uninsured and uncollateralized deposits to third-party customers were $194.1 million, or 13% of total deposits, at the end of the third quarter of 2025.

Brokered deposits totaled $275.0 million at September 30, 2025.

The bank utilized the following deposit products as of March 31, 2025:

• Deposits totaled $1.39 billion.
• NOW and demand accounts increased by $28.8 million.
• Time deposits increased by $19.6 million.
• Savings accounts decreased by $3.6 million.

Blue Foundry Bancorp (BLFY) - Canvas Business Model: Cost Structure

You're looking at the costs Blue Foundry Bancorp incurs to run its business as of late 2025. For a bank, the cost of money-what you pay depositors and lenders-is usually the biggest line item, but personnel and operations are right behind it. Honestly, keeping these costs in check is what separates the profitable from the struggling, especially in this rate environment.

The most significant cost driver is the Interest expense on deposits and borrowings, which totaled $11.9 million for the three months ended September 30, 2025. This figure reflects the cost of funding the bank's balance sheet growth, which saw total deposits increase to $1.49 billion by that date.

Next, we look at Non-interest expense, which totaled $13.9 million for the third quarter of 2025, an increase of $619 thousand compared to the third quarter of 2024. This category covers everything from salaries to the lights staying on in the branches. Here's a breakdown of the major components we can clearly identify for Q3 2025:

Cost Category Component	Q3 2025 Amount (in thousands)
Total Non-interest Expense	$13,900
Personnel Expenses (Compensation and benefits)	$8,026
Occupancy and equipment (Branch Network/Tech)	$2,162
Data processing (Technology Infrastructure)	$1,473

Personnel expenses, which fall under Compensation and benefits, were $8,026 thousand for the quarter. Remember, about 40% of Blue Foundry Bancorp's employees are frontline bankers, so staffing the 17-branch network is a core cost. The increase in this line item was primarily due to increased compensation cost and an additional day of expense during the third quarter.

Operating expenses for the physical network and technology infrastructure are captured in several line items. Occupancy and equipment expenses totaled $2,162 thousand, and Data processing costs were $1,473 thousand for the quarter. The bank has noted that managing real estate and technology costs is critical to long-term success.

The cost associated with credit risk management is the Provision for credit losses, which was $589 thousand in Q3 2025. This provision was primarily driven by an increase in the provision for loans, reflecting a deterioration in economic variable forecasts at that time.

Costs associated with pending merger activity and regulatory compliance are typically embedded within other non-interest expense line items, such as Professional Services, which increased by $198 thousand from the second quarter of 2025. We know the bank focuses on expense control through operational efficiencies, but a specific dollar amount for merger or compliance-only costs isn't broken out in the readily available Q3 2025 summary data. Still, you can see the known components account for about $11.7 million of the $13.9 million total non-interest expense.

Here are the key cost-related metrics for Q3 2025:

• Interest expense on deposits and borrowings: $11.9 million.
• Total Non-interest expense: $13.9 million.
• Personnel Expense (Compensation and benefits): $8,026 thousand.
• Provision for credit losses: $589 thousand.
• Occupancy and equipment expense: $2,162 thousand.

Finance: draft 13-week cash view by Friday.

Blue Foundry Bancorp (BLFY) - Canvas Business Model: Revenue Streams

You're looking at the core ways Blue Foundry Bancorp generates cash as of late 2025. For a bank holding company like Blue Foundry Bancorp, the revenue engine is fundamentally about the spread between what it earns on its assets and what it pays out for liabilities, supplemented by fees for services.

The latest figures from the third quarter of 2025 show the net interest margin (NIM) is improving, which is the key metric for core profitability in this business. The NIM hit 2.34% for the quarter ending September 30, 2025. This expansion suggests better management of asset yields versus funding costs, a definite positive sign for the business model.

Here's a breakdown of the key revenue components for Blue Foundry Bancorp for the three months ended September 30, 2025, based on reported figures and derived data:

Revenue Stream Component	Q3 2025 Amount (Millions USD)
Interest income from loans	$24.1 (Total Interest Income Reported)
Interest income from investment securities	$24.1 (Total Interest Income Reported)
Non-interest income from service charges, fees, and other banking activities	$0.41 (Derived from Total Revenue of $12.61M minus NII of $12.2M)
Net interest income	$12.2

The total Interest Income for Q3 2025 was $24.1 million. This figure represents the sum of interest earned on loans and interest earned on investment securities. You'll note the table uses the total figure for the first two line items because the specific breakdown between loans and securities wasn't explicitly itemized in the latest public release, so we use the total available number. Also, the total reported revenue for the quarter was $12.61 million, which, when compared to the Net Interest Income of $12.2 million, implies the total Non-Interest Income component was approximately $0.41 million.

The structure relies heavily on the Net Interest Income, which came in at $12.2 million for the quarter. This was supported by the NIM of 2.34%. The bank is actively growing its balance sheet to support this, with loans reaching $1.71 billion and total deposits at $1.49 billion as of the end of September 2025.

The revenue streams are further characterized by:

• Interest income from loans, which was $24.1 million in Q3 2025.
• Net interest income of $12.2 million for Q3 2025.
• Net interest margin (NIM) of 2.34% for Q3 2025.
• Total revenue for the quarter was reported at $12.61 million.

Finance: draft Q4 2025 NII projection by next Tuesday.