Form 4: Blue Foundry Bancorp EVP Sells Shares for Tax Obligations

Blue Foundry Bancorp's EVP and Chief Tech Officer, Aleksandr Malkiman, reported a disposition of 591 common shares to cover tax obligations.

Summary

• Aleksandr Malkiman, EVP and Chief Tech Officer of Blue Foundry Bancorp (BLFY), reported a transaction on February 1, 2026.
• 591 shares of common stock were disposed of at a price of $13.15 per share.
• This disposition represents shares withheld by the issuer to satisfy tax obligations.
• Following this transaction, Malkiman directly owns 21,509 shares of common stock and indirectly owns 3,881 shares through an ESOP.
• Malkiman also holds 68,800 stock options with an exercise price of $11.69, which vest ratably over seven years starting October 19, 2023, and expire on October 19, 2032.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, as the disposition of shares was solely for tax purposes, a routine occurrence for executive compensation, and not a discretionary sale.

Positives

• The transaction is a routine tax withholding, not a discretionary sale, indicating no negative sentiment from the insider.
• Aleksandr Malkiman retains significant direct and indirect ownership in Blue Foundry Bancorp, totaling 25,390 common shares.
• Malkiman holds a substantial number of stock options (68,800) which are in-the-money given the $13.15 transaction price versus the $11.69 exercise price, aligning his interests with shareholder value creation.

Negatives

• The direct beneficial ownership of common stock decreased by 591 shares due to the tax withholding.

Future Outlook

The filing indicates that stock options vest ratably for seven years commencing on October 19, 2023, suggesting a long-term incentive structure for the EVP and Chief Tech Officer.

Industry Context

StockSavvy.ai notes that tax-related dispositions of shares are common for executives receiving equity compensation and are generally not indicative of a change in management's outlook on the company's prospects. This is a standard practice across industries for managing equity awards.

Comparison to Industry Standards

• This transaction is a routine tax withholding, a common practice for executives across various industries when equity awards vest or are exercised. It aligns with standard compensation practices where a portion of vested shares is sold or withheld to cover income tax liabilities. No specific comparable companies or projects are relevant for this type of routine insider filing.

Stakeholder Impact

• Shareholders: Minimal direct impact as the transaction is a routine tax withholding and not a discretionary sale. The EVP's continued significant holdings and in-the-money options align his interests with shareholders.
• Employees: No direct impact mentioned.
• Customers: No direct impact mentioned.
• Suppliers: No direct impact mentioned.
• Creditors: No direct impact mentioned.

Next Steps

• Continued vesting of 68,800 stock options ratably over seven years, commencing October 19, 2023.

Key Dates

Recommendation

This Form 4 filing details a routine tax-related disposition of shares by an executive, which is not indicative of a change in the company's fundamentals or the executive's confidence. The executive retains substantial equity and in-the-money options. Therefore, based solely on this filing, a 'hold' recommendation is appropriate as it provides no new information to warrant a change in investment thesis.

Keywords

Blue Foundry Bancorp, BLFY, Form 4, Insider Transaction, Aleksandr Malkiman, EVP, Chief Tech Officer, Stock Options, Tax Withholding, Beneficial Ownership