New Jersey Manufactures Insurance Company, West Trenton, agrees to sell NJM Bank to Spencer Savings Bank, Elmwood Park. Opened in 1999, NJM Bank had assets of $605.8 million, total loans of $295.6 million and deposits of $458.9 million as of May 31.
According to NJM President and CEO Bernie Flynn, the sale, which is pending approval from state and federal regulators, is occurring because the banking environment “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.”
Flynn adds that for the past 14 years, NJM Bank has met its mission while maintaining the highest levels of customer service. “As we move forward, the needs of NJM Bank customers and employees will be our highest priority. We will work closely with our customers to ensure a smooth transition to Spencer Savings Bank. We are confident that, in Spencer, we have found a banking partner that shares our values and customer-centric approach,” he says.
NJM Bank has 57 employees and three branches in West Trenton, Parsippany and Hammonton. Most of the bank’s employees will be offered positions within NJM Insurance Group or at Spencer.
Jose B. Guerrero, president, chairman and CEO of Spencer, comments, “We are excited to announce this agreement with NJM Bank and look forward to welcoming its customers into the Spencer Savings Bank family. Both banks have a proven track record of exceptional customer service, strong financial performance and support of their respective communities. This agreement will enable Spencer to increase its footprint within New Jersey, while enhancing our online banking capabilities.”
It is anticipated that the acquisition will close in the fourth quarter of this year.
Spencer celebrates its 75th anniversary this year. According to Bank Tracker, the bank had assets of approximately $2 billion, deposits of $1.4 billion and loans valued at $1.4 billion at the end of 2013. It operates 19 branches throughout Northern New Jersey.
NJM Insurance Company, which celebrated its 100th anniversary last year, has grown to become the state’s largest property-casualty insurer. The company operates in a mutual fashion for the exclusive benefit of its policyholders. Since 1918, it has returned more than $5.5 billion in dividends to its policyholders.