Spencer Savings Bank announced Friday it will convert its charter in a move that will allow the institution to increase its high-return investments and commercial loans, provide additional lending and investment power and allow more flexibility to structure and finance operations, including acquisitions.
The Elmwood Park-based bank’s board of directors adopted a plan that will convert SSB’s charter from a New Jersey chartered mutual savings association to a New Jersey chartered mutual savings bank.
The conversion is expected to be completed sometime in the third quarter, subject to approval by the bank’s members and regulators, the New Jersey Department of Banking and the Federal Deposit Insurance Corp.
According to the bank, the conversion will not change the terms or conditions of existing deposits and loans.
“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,” SSB Chairman, President and Chief Executive Officer José Guerrero said in a statement. “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.”