Banking is strong locally

Capital Bank’s new manager: Lisa Varesio

by Julie Fink, Gazette Staff Writer

HAMMONTON—There are currently eight banking facilities located in the town of Hammonton, with two soon to open, totaling 10 banks, each offering similar products and services, finding both the banking industry on a whole competitive, as well as, in the town itself.
Banking is a highly regulated industry, so there are generally few opportunities for significant product customization. Certainly rates and fees vary, but the basic banking products and services look much alike from bank to bank.
Each bank must find its own unique niche to maintain their competitive edge.
According to Capital Bank President and CEO David Hanrahan, the banking industry is, and will probably always be, very competitive.
“With nearly 8,000 banks across the country, the banking industry is, and will probably always be, very competitive. But we compete successfully by doing what hometown community banks do best: providing flexible, friendly and professional service at competitive interest rates. The differences between big banks and small banks has been clearly demonstrated over the last two years - that’s a big part of why more and more people are entrusting their banking business to Capital Bank,” he said.
Capital Bank plans to open its downtown Hammonton location around the end of the year.
“We are extremely eager to open, and the response we’ve already had from new customers in Hammonton has been terrific. We have just announced that our Branch Manager will be Lisa Varesio. Lisa is a banking professional who has spent her entire 30-year career working in the Town of Hammonton, including opening Minotola National Bank’s branch there in 1991. She was born and raised in town too. We hired her not only because of her experience and deep local roots, but also because she’s passionate about providing personalized, caring and flexible service to her customers, in keeping with Capital Bank’s style of customer service. We’re proud to have a manager of her quality and local reputation running our Hammonton branch,” Hanrahan said.
According to NJM Bank President and CEO Lee Bellarmino, in general, banking remains a very competitive industry, with national, regional and community banking franchises vying for business.
In addition, banks face competition from non-bank enterprises like credit unions and providers of financial services.
“Healthy competition is good for the consumer and provides multiple options for selection of products and services,” Bellarmino said.
For NJM Bank, its competitive edge lies in its long-term value proposition to its customers – reliability of superior customer experience; absolute integrity in its dealings with customers; avoidance of products with excessive fees or confusing features; and a commitment to banking here for the long-term, according to Bellarmino.
“We form deep relationships with our customers, so you won’t find us brokering or packaging loans we’ve made and selling them in a secondary market. And, although we operate as a community bank, we also have the financial backing of our parent – NJM Insurance Group, an A.M. Best A++ rated insurance company which has provided insurance services in its primary market, New Jersey, for nearly 100 years,” Bellarmino said.
According to Vice President and Manager of TD Bank of Hammonton Ian Kaminski, the banking industry in Hammonton is an over-saturated market.
“There are eight banks in Hammonton offering the same products and services, more or less. What separates us is our customer service. It’s the way they feel when they walk in our doors,” Kaminski said.
According to Vice President and Branch Manager Joni Santora of Susquehanna Bank on the White Horse Pike, the market in Hammonton is quite competitive.
“Yes, the Hammonton market is competitive. I would like to think that we maintain our competitive edge by providing excellent customer service and personal banking relationships. It is not so much one product over another, but it is the relationship we maintain with our customers and the community,” Santora said.
According to Hanrahan, the slow economy has had two major effects on our industry: It has caused banks’ deposits to grow, because more people and businesses are conserving cash and postponing major purchases or expansions. It has also reduced loan demand for the same reason.
“However, we’re very pleased that Capital Bank’s deposits and loans continue to grow. We attribute our loan growth to borrowers’ desire to deal with a local, responsive and flexible bank that really is still lending money, and which understands the unique needs of small and medium-size businesses,” Hanrahan said.
“Much has been written about the economic slowdown and its impact on the residents and businesses of the United States and the people of New Jersey. Generally speaking, retail and business deposits have increased while most types of lending have slowed. This is, in part, a reflection of the uncertainty that exists everywhere. However, there are many who see opportunities in this economic environment, so, for example, there continues to be strong demand for the refinancing of existing debt at today’s lower interest rates. Our residential mortgage, home equity and commercial real estate volumes reflect that trend,” Bellarmino said.
According to Kaminski, TD Bank is one of the few banks that is not only lending but is approving applications.
“We are looking to lend. If a customer seeking a small business start-up loan presents us with a good portfolio and has dotted their ‘I’s’ and crossed their ‘T’s’ we are approving their applications,” he said.
Susquehanna Bank of Hammonton has still been able to provide lending throughout the slow pace of the economy, Santora said.
“We have always been able to provide lending to small businesses. We like to focus on doing what we can to satisfy their needs and give them a full-rounded package. We are careful in the process, as such, we have not been involved in any negative areas of lending. That is why, I believe, we have been able to continue to lend and grow as we do,” Santora said.
The banks currently located in Hammonton include: Select Bank, 44 S. White Horse Pike; Sun Bank, 12th Avenue and 1st Road; Bank of America, 209-215 Bellevue Avenue and White Horse Pike and Broadway Avenue; Wachovia, 236 Bellevue Avenue; Susquehanna Bank, 337 Bellevue Avenue and 240 S. White Horse Pike and TD Bank, 97 S. White Horse Pike. NJM Bank’s Hammonton branch is expected to open early in the first quarter of 2011 on 12th Street, and Capital Bank will open later this year on Bellevue Avenue.