Blue Foundry Rewards Shareholders With New Share Repurchase Plan

Core Viewpoint - Blue Foundry Bancorp has initiated a fifth stock repurchase program, allowing the repurchase of up to 1.14 million shares, which is about 5% of its outstanding shares, following the completion of its fourth program [1][2]. Company Summary - The fifth stock repurchase program commenced on November 8, 2024, and follows the completion of the fourth program on November 7, 2024, which authorized the repurchase of up to 1.2 million shares [1]. - Blue Foundry Bancorp has a history of share repurchase programs, having repurchased a total of 6.65 million shares since its initial public offering in July 2021, representing 23.3% of its outstanding shares at a weighted average price of $10.14 per share [3]. - The company does not have a history of paying dividends, with the CEO stating that share repurchases are a prudent use of capital, especially as they have been able to repurchase shares at a discount to tangible book value [2]. Financial Position - As of September 30, 2024, Blue Foundry Bancorp had total debt of$358.4 million and cash and cash equivalents of only $76.1 million, raising concerns about the sustainability of its share repurchase activities given its weak liquidity position [4]. Market Performance - Over the past three months, Blue Foundry Bancorp's shares have increased by 8.7%, while the industry has seen a growth of 19.1%. The company currently holds a Zacks Rank of 4 (Sell) [5].