NJM Bank

Jun 23, 2014

June 23, 2014 15:30 | Source: Spencer Savings Bank ELMWOOD PARK, NJ and WEST TRENTON, NJ, June 23, 2014 (GLOBE NEWSWIRE) -- Spencer Savings BankSLA (or "Spencer") and New Jersey Manufacturers InsuranceCompany (or "NJM"), parent company of NJM Bank FSB (or "NJM Bank"),today jointly announced that they have entered into a definitiveagreement for Spencer to purchase the assets and liabilities of NJMBank. The agreement provides for a seamless andtransparent transfer of deposits and loans from NJM Bank toSpencer. 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, reportedtotal assets of $605.8 million, total loans in the amount of $295.6million, and total deposits of $458.9 million. The acquisition issubject to certain conditions and potential adjustments. "We are excited to announce this agreement with NJM Bank andlook forward to welcoming their customers into the Spencer SavingsBank family. Both banks have a proven track record of exceptionalcustomer service, strong financial performance, and the support oftheir respective communities," stated Jose B. Guerrero, President,Chairman and CEO of Spencer Savings Bank SLA. "This agreement willenable Spencer to increase its footprint within New Jersey, whileenhancing our online banking capabilities. NJM Bank's book ofbusiness is a natural fit for our expansion in New Jersey. " The purchase agreement has been approved by the Boards ofDirectors of both NJM Bank and Spencer. The acquisition, whichrequires approvals from state and federal regulatory agencies, isanticipated to close during the fourth quarter of 2014. "NJM Bank was founded in 1999 to provide value-added bankingservices to our policyholders and the general public. For the past14 years, the Bank has met its mission while maintaining thehighest levels of customer service," says Bernie Flynn, Presidentand Chief Executive Officer of New Jersey Manufacturers InsuranceCompany. "However, the banking environment within which we operatehas changed dramatically in recent years and consumer demand forconsolidated insurance-banking services has proven limited. As aresult, we have concluded that an orderly transition out of thebanking business is the best course of action. " "As we move forward, the needs of NJM Bank customers andemployees will be our highest priority, and we will work closelywith our customers to ensure a smooth transition to Spencer SavingsBank," concluded Flynn. "As NJM prepares to withdraw from thebanking business, we extend our sincere thanks to our loyal bankcustomers, and we are confident that, in Spencer, we have found abanking partner that shares our values and customer-centricapproach. " To assist NJM Bank customers, additional information isavailable at both www.njmbank.com and www.welcometospencersavings.com . FinPro Capital Advisors, Inc. served as financial advisor to NJMBank in connection with the transaction. McCarter &English, LLP is acting as NJM Bank's legal counsel. Boenning& Scattergood served as financial advisor to Spencer SavingsBank. Locke Lord LLP is serving as Spencer Savings Bank'slegal counsel. About Spencer Savings Bank Spencer Savings Bank, headquartered in Elmwood Park, New Jersey, isa community bank that has been serving its local communities withintegrity and pride for over 75 years. The Bank, serving consumersand businesses, operates 19 branches throughout Northern NewJersey. About NJM Bank NJM Bank provides services to commercial and personal bankingcustomers. As a wholly owned subsidiary of New Jersey ManufacturersInsurance Company, the Bank traces its philosophical roots to theestablishment of its parent company in 1913. About New Jersey Manufacturers InsuranceCompany New Jersey Manufacturers Insurance Company began in 1913,founded by factory owners who wanted to purchase insurance from areliable, local, safety-oriented carrier. Since its founding, NJMhas grown to become New Jersey's largest property-casualty insurerand has earned its reputation for efficiency, integrity andsuperior service. The company operates in a mutual fashion for theexclusive benefit of its policyholders. Consistent with thatmission, NJM has returned over $5.5 billion in dividends topolicyholders since 1918. To be eligible to apply for (workers'compensation or commercial auto coverage), an employer must be amember of the New Jersey Business & Industry Association(NJBIA). Applicants for personal auto or homeowners insurance mustmeet membership eligibility criteria. # # # Tiffany MillerR&J Public Relations for Spencer Savings Bank908-722-5757 ext. 106 / 908-938-4964 (cell)Ben MartinWinning Strategies Public Relationsfor New Jersey Manufacturers Insurance and NJM Bank973-286-8282 / 201-310-3227 (cell) Related Articles