New approach: South Jersey’s pandemic takeaways are translating into future growth and resilience Banks and financial institutions in South Jersey have been at the epicenter of the pandemic recovery, pivoting to digital platforms to address new customer needs and providing the infrastructure for doling out the Payment Protection Program (PPP). But challenges remain as consolidation continues to shrink the banking landscape and persistently low interest rates squeeze loan margins. Overall, the state of New Jersey closed 2020 with a local GDP of $626.7 billion, signaling a recovery from the 35.6% contraction between 1Q20 ($641.7 billion) and 2Q20 ($574 billion). According to the U.S. Bureau of Economic Analysis, the Garden State’s largest industries in 4Q20 as a percentage of GDP were finance, insurance, real estate and leasing, amounting to 22% of New Jersey’s GDP. The state is home to 23 commercial banks, 24 savings banks, three savings and loan associations, two limited purpose trust companies and eight credit unions. In aggregate, these financial institutions hold $123 billion in assets, with commercial banks holding the lion’s share at 68.1%. Zeroing in on Southern New Jersey, the region has the state’s highest concentration of finance employment, 102
| Invest: South Jersey 2021 | BANKING & FINANCE
the lion’s share of which are with commercial bank branches. Burlington County shines through with a bevy of finance company headquarter operations. Its proximity to New York and Philadelphia, as well as an educated workforce to fill its banking and financial needs, are additional advantages for South Jersey. “One of the great things about South Jersey is the diversity of the economy,” Louis Lombardi, senior vice president and regional commercial executive at Fulton Bank, told Invest:. “There is manufacturing, distribution, hospitality, recreation, and agriculture. Fulton Bank is the largest agricultural bank in the Northeast, and we think that is a great growth opportunity. Secondly, South Jersey’s proximity to so many major metropolitan areas means it is in a great position to capitalize on the growth of e-commerce. There are also very strong medical institutions keeping our healthcare banking group very busy. I think it is the diversity in South Jersey’s economy that makes the area so resilient from a business perspective.” Landscape As of June 2021, South Jersey was home to 25 of New Jersey’s Top 100 banks headquartered in the state. ( )
