Government Banking Services

Help for municipalities and the constituencies they serve.

By Vince Baglivo, Contributing Writer On Oct 30, 2017

New Jersey municipalities have a tough job. Taxpayers demand the best possible services at the lowest possible cost. They also expect programs that benefit economic activity, quality of life and sustainable business and environmental practices.

The state’s banking community has stepped up to help with everything from online banking services to underwriting for municipal bonds. The state’s top financial institutions are focused on more than maintaining banking relationships, actively seeking opportunities to assist in developing the prosperity of the local communities they serve.

Government Banking Teams

Investors Bank maintains a Government Banking team, led by Senior Vice President Brian Turano (northern New Jersey) and Senior Vice President Joseph Sette (southern New Jersey). Turano and Sette are supported by an experienced Cash Management team which offers a full suite of products designed for Investors’ government clients, including online banking, funds transfer, remote deposit capture, ACH, positive pay and other related services. Many of the day-to-day transactional activities, including serving government employee accounts, are supported by Investors’ network of more than 116 branches in New Jersey.

Investors’ Government Banking team manages relationships with more than 250 county and municipal governments and school boards. The bank currently holds more than $3.5 billion in government deposits – covered by the Governmental Unit Deposit Protection Act (GUDPA) – making Investors one of the top two banks in New Jersey in this sector.

In the summer of 2014, Investors opened a full-service branch in Jersey City’s HUB Shopping Center. The revitalizing commercial corridor had been without a bank since 2009, when a national financial institution closed its office in the HUB. As part of the agreement, the city named Investors Bank its primary depository. In addition to banking, Investors offers an array of community services at the HUB to benefit community residents.

Kevin Cummings, chief executive officer and president of Investors, notes he was pleased to establish a relationship with his hometown of Jersey City. “Our pledge is to share our resources by serving the bank’s consumer and business customers, creating opportunities, and building relationships with the community to improve the lives of the people in Jersey City,” he adds.

Investors also stepped in to support the Washington Township Performing Arts Center in Gloucester County when the facility’s previous sponsor decided not to renew its contract in 2015. Investors made an offer for the exclusive naming rights for the 19,344-square-foot, 2,500-seat venue at Washington Township High School. The PAC, renamed the Investors Bank Performing Arts Center, is a prime concert venue in the heart of South Jersey with ample parking, bi-level seating areas, excellent acoustics and professional equipment that draws top talent. The venue also hosts the Washington Township School District’s musical and dance performances as well as special ceremonies.

“This arrangement is truly a win-win for our district, our community and Investors Bank,” former Superintendent Thomas Flemming said at the onset of the contract. “The Investors Bank Performing Arts Center will continue to be a community showpiece that attracts high quality entertainment. This alignment bolsters our professional credibility, gives our local arts patrons access to extraordinary entertainment in their backyard, and helps to ensure that the doors stay open for another generation of students, community members and area arts enthusiasts.”

Municipal & Government Services

Provident Bank also provides a full range of products and services for municipal and government clients.

Chris Martin, chairman, president and CEO of Provident Bank, says serving municipalities and governments is not just about fulfilling a civic duty, but delivering a high level of personal service, competitive pricing, and commitment to Provident’s customers.

Through its strategic alliance partners, Provident Bank offers online payment services that help municipalities collect everything from taxes, sewer and water fees to dog licenses with a secure payment portal. Online recreation management delivers robust and user-friendly software to help manage community events, senior trips, pool registrations, field/stadium scheduling and a host of other applications.

Other municipal and government services include merchant credit card processing, business credit and debit cards, escrow account management, ACH origination, remote deposit capture (RDC) providing next-day funds availability, and GUDPA Protection. Municipal employees also enjoy discounted and free services through Provident’s Bank at Work program.

The safety and security of local governments’ financial information is a top priority at Provident Bank. As such, it is committed to protecting and safeguarding municipalities’ financial information from fraud with services such as Positive Pay, ACH Debit Block/Filters and Universal Payment Identification Code (UPIC).

In addition, through its industry experience and robust product lines, Provident Bank supports local governments working together to achieve economies of scale and cost savings through shared services.

Municipal Bond Underwriting

Bank of America, Corp. has been a strong player in municipal bond sales across its national footprint, including in New Jersey. While demand for underwriting has fallen off as interest rates have risen, data compiled by Bloomberg in a July report noted Bank of America among the top financial institutions in the municipal bond market.

The data confirmed Bank of America as the top state and local government debt underwriter for the past five years, including $26.5 billion of municipal bond sales in the first half of 2017. Bloomberg also reported in 2016 that Bank of America was the lead manager for the $2.74 billion bond sale by New Jersey’s Transportation Trust Fund Authority to finance roadwork that had been delayed during the fight to restore funds for the state’s transit infrastructure repair and construction.

As counties, municipalities and school boards statewide struggle to find the most cost-effective business and financial practices to deliver the kind of return on investment that New Jersey taxpayers and stakeholders demand, the support of the state’s banks has become more critical than ever. Relationships that extend from branch representatives to government banking and municipal underwriting professionals are contributing to stronger, more financially sound communities.

“We understand their challenges, their needs, and the obstacles public institutions face every day,” Provident Bank’s Martin concludes. “That’s why we created an entire suite of products to answer the most pressing needs and make the lives of people in our cities, towns and counties just a little bit easier.”

 

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