ELMWOOD PARK, NJ and WEST TRENTON, NJ, June 23, 2014 (GLOBE NEWSWIRE) -- Spencer Savings Bank SLA (or "Spencer") and New Jersey Manufacturers Insurance Company (or "NJM"), parent company of NJM Bank FSB (or "NJM Bank"), today jointly announced that they have entered into a definitive agreement for Spencer to purchase the assets and liabilities of NJM Bank. The agreement provides for a seamless and transparent transfer of deposits and loans from NJM Bank to Spencer. NJM Bank, headquartered in West Trenton, NJ, operates three branch offices located at corporate headquarters, Hammonton, NJ and Parsippany, NJ.
As of May 31, 2014, NJM Bank, on a consolidated basis, reported total assets of $605.8 million, total loans in the amount of $295.6 million, and total deposits of $458.9 million. The acquisition is subject to certain conditions and potential adjustments.
"We are excited to announce this agreement with NJM Bank and look forward to welcoming their customers into the Spencer Savings Bank family. Both banks have a proven track record of exceptional customer service, strong financial performance, and the support of their respective communities," stated Jose B. Guerrero, President, Chairman and CEO of Spencer Savings Bank SLA. "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."
The purchase agreement has been approved by the Boards of Directors of both NJM Bank and Spencer. The acquisition, which requires approvals from state and federal regulatory agencies, is anticipated to close during the fourth quarter of 2014.
"NJM Bank was founded in 1999 to provide value-added banking services to our policyholders and the general public. For the past 14 years, the Bank has met its mission while maintaining the highest levels of customer service," says Bernie Flynn, President and Chief Executive Officer of New Jersey Manufacturers Insurance Company. "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."
"As we move forward, the needs of NJM Bank customers and employees will be our highest priority, and we will work closely with our customers to ensure a smooth transition to Spencer Savings Bank," concluded Flynn. "As NJM prepares to withdraw from the banking business, we extend our sincere thanks to our loyal bank customers, and we are confident that, in Spencer, we have found a banking partner that shares our values and customer-centric approach."
To assist NJM Bank customers, additional information is available at both www.njmbank.com and www.welcometospencersavings.com .
FinPro Capital Advisors, Inc. served as financial advisor to NJM Bank in connection with the transaction. McCarter & English, LLP is acting as NJM Bank's legal counsel. Boenning & Scattergood served as financial advisor to Spencer Savings Bank. Locke Lord LLP is serving as Spencer Savings Bank's legal counsel.
About Spencer Savings Bank
Spencer Savings Bank, headquartered in Elmwood Park, New Jersey, is a community bank that has been serving its local communities with integrity and pride for over 75 years. The Bank, serving consumers and businesses, operates 19 branches throughout Northern New Jersey.
About NJM Bank
NJM Bank provides services to commercial and personal banking customers. As a wholly owned subsidiary of New Jersey Manufacturers Insurance Company, the Bank traces its philosophical roots to the establishment of its parent company in 1913.
About New Jersey Manufacturers Insurance Company
New Jersey Manufacturers Insurance Company began in 1913, founded by factory owners who wanted to purchase insurance from a reliable, local, safety-oriented carrier. Since its founding, NJM has grown to become New Jersey's largest property-casualty insurer and has earned its reputation for efficiency, integrity and superior service. The company operates in a mutual fashion for the exclusive benefit of its policyholders. Consistent with that mission, NJM has returned over $5.5 billion in dividends to policyholders since 1918. To be eligible to apply for (workers' compensation or commercial auto coverage), an employer must be a member of the New Jersey Business & Industry Association (NJBIA). Applicants for personal auto or homeowners insurance must meet membership eligibility criteria.
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Tiffany Miller R&J Public Relations for Spencer Savings Bank 908-722-5757 ext. 106 / 908-938-4964 (cell) Ben Martin Winning Strategies Public Relations for New Jersey Manufacturers Insurance and NJM Bank 973-286-8282 / 201-310-3227 (cell)
