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A new ranking from Newsweek highlights the personal touch that often comes with local banking partners. Together with market data research firm Plant-A Insights Group, the publication recently revealed America’s Best Regional Banks and Credit Unions 2024.

Fifteen New Jersey financial institutions appear on the lists, which recognize the top 250 in each category.

National banks differ from their local counterparts, with regional players born and based within communities where they are engaged not just with customers, but with their surroundings as well.

According to the Federal Reserve System, regional banks are those with total assets between $10 billion and $100 billion. Along with community banks (defined as those with assets of less than $10 billion), the Fed says these organizations represent the largest type of organizations it supervises.

When it comes to credit unions, the U.S. government says there are certain characteristics that distinguish these financial institutions. They are: member-owned, with members usually share a common bond or “field of membership”; not-for-profit; involved in the community; and cooperative structures.

Listed alphabetically, these are the best regional banks from NJ:

Amboy Bank, Old Bridge
Employees: 226

Columbia Bank, Fair Lawn
Employees: 750

Century Savings Bank, Vineland
Employees: 70

Lakeland Bank, Newfoundland
Employees: 885

Magyar Bank, New Brunswick
Employees: 98

Newfield National Bank, Newfield
Employees: 148

Oceanfirst Bank NA, Toms River
Employees: 951

Provident Bank, Jersey City
Employees: 1,133

Spencer Savings Bank, Elmwood Park
Employees: 320

Valley National Bank, Morristown
Employees: 3,901

Three New Jersey banks received a five-star rating: Century Savings, Columbia and Valley.

Commenting on the bank’s repeat appearance in 2024, Valley President Tom Iadanza said, “We’re honored to be named one of the best regional banks by Newsweek for a second year in a row.”

“This recognition is a testament to our people who work tirelessly to fulfill our vision of becoming one of the premier relationship-based regional banks in the country,” Iadanza added.

Best credit unions from NJ:

• Local 1233, Newark
• Abco, Rancocas
• Federal Employees Newark, Newark
• Fairleigh Dickinson University, Madison
• Central Jersey, Woodbridge

“In an era where digital advancements can overshadow personalized service, regional banks and credit unions stand out for their customer-centric financial services,” Newsweek Global Editor in Chief Nancy Cooper wrote in her introduction to the feature. “These institutions prove that a community-centered approach can redefine the banking experience.”

How they did it

According to Newsweek, this is the first year it and Plant-A identified the best regional banks and credit unions. In years past, the list has simply detailed “America’s Best Banks.”

For the 2024 rankings, the study analyzed all regional banks and credit unions in the U.S. (approximately 9,440 institutions), according to Newsweek. National banks and credit unions were excluded. Then, each was evaluated according to a set of parameters: Texas ratio; profitability; net loan and lease and media monitoring.

After, an independent customer survey engaged more than 35,000 U.S. citizens to gain a better picture of the users experience; more than 140,000 reviews for regional banks and credit unions nationwide were also collected.

You can find the complete rankings and methodology for the 2024 Americas Best Regional Banks and Credit Unions here.

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