NJ-based Blue Foundry MHC to convert to fully stock holding company structure

Rutherford, N.J.-based Blue Foundry MHC's board on Jan. 20 adopted a plan for its conversion to the fully stock holding company structure.

Blue Foundry Bancorp, which is currently the mid-tier stock holding company subsidiary of Blue Foundry MHC and owns all of Blue Foundry Bank's common stock, will be succeeded by a Delaware corporation, which will be named Blue Foundry Bancorp, and which will own all of Blue Foundry Bank's common stock after the conversion.

In addition, the holding company, Blue Foundry Bancorp, will offer for sale its common shares to Blue Foundry Bank depositors and others in a subscription offering, and possibly a community offering and a syndicated offering or a firm commitment underwritten offering.

As part of the conversion, Blue Foundry MHC will merge into the mid-tier holding company, followed immediately by the latter merging into the holding company, Blue Foundry Bancorp, which will be the surviving entity.

Additionally, Blue Foundry Bancorp will issue shares of its common stock based on the aggregate pro forma market value of its common stock.

The plan of conversion is subject to the approval of the Federal Reserve Board, the New Jersey Department of Banking and Insurance and at least a majority of the votes eligible to be cast by depositors eligible to vote at a special meeting of depositors.