Spencer Savings Bank and New Jersey Manufacturers Insurance Company announced a deal Monday under which Spencer will purchase the assets and liabilities of NJM Bank.
Spencer, headquartered in Elmwood Park, will take over the $605.8 million in assets, $295.6 million in loans and $458.9 million in deposits held by West Trenton-based NJM Bank.
“NJM Bank was founded in 1999 to provide value-added banking services to our policyholders and the general public,” Bernie Flynn, president and CEO of New Jersey Manufacturers, said in a news release. “For the past 14 years, the Bank has met its mission while maintaining the highest levels of customer service. However, the banking environment within which we operate has changed dramatically in recent years and consumer demand for consolidated insurance-banking services has proven limited. As a result, we have concluded that an orderly transition out of the banking business is the best course of action.”
Spencer Chairman, CEO and President Jose B. Guerrero said in the release: “This agreement will enable Spencer to increase its footprint within New Jersey, while enhancing our online banking capabilities. NJM Bank’s book of business is a natural fit for our expansion in New Jersey.”
NJM Bank has branches in West Trenton at the corporate headquarters, in Hammonton and in Parsippany.
The purchase agreement has been approved by both banks’ boards of directors, but requires approval from state and federal regulatory agencies. It is expected to close during the fourth quarter of 2014.
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