NUTLEY, NJ - - Spencer Savings Bank, SLA has announced that its Board of Directors has adopted a plan to convert its charter from a New Jersey chartered mutual savings association to a New Jersey chartered mutual savings bank. Consistent with its Strategic Plan, the charter conversion will provide the Bank with new opportunities to grow and expand in existing and new markets by increasing its amount of higher returning investments and commercial loans, providing expanded lending and investment powers and providing greater flexibility to structure and finance its operations, including acquisition opportunities.
Completion of the charter conversion is subject to the approval of the Bank’s members and its regulators, the New Jersey Department of Banking and the Federal Deposit Insurance Corporation (“FDIC”). It is anticipated that the charter conversion will be completed sometime in the third quarter of 2019.
“For more than 75 years, we have stayed focused on providing a Bank that is financially strong and stable with exceptional service to our customers and communities,” stated José B. Guerrero, Chairman, President and CEO of the Bank. “With this change, we will be able to provide more products for our consumer, small business and commercial customers, grow the bank and better compete in our markets.”
Because of a recent change to federal law expanding the lending and investment powers of federal savings associations, conversion to a New Jersey chartered mutual savings bank will place the Bank on a level competitive playing field allowing it lending and investment powers not currently allowed to a New Jersey chartered savings association.
After the completion of the charter conversion, depositors and borrowers of the Bank will remain depositors and borrowers of the resulting mutual savings bank. The charter conversion will not change any of the terms or conditions of existing deposits or loans. The deposit accounts of the resulting mutual savings bank will continue to be insured up to applicable limits by the FDIC.