Small banks spur New Jersey growth

11/4/2011

A recent study from Pennsylvania-based lending advisory firm MultiFunding revealed that New Jersey's smaller community banks are outperforming larger banks and commercial institutions in loan deposits, the Star-Ledger reports.

MultiFunding analyzed Federal Deposit Insurance Corporation data for the study, which examined 78 state financial institutions with deposits greater than $100 million.

Ami Kassar, MultiFunding chief executive, noted that smaller banks are more willing to lend because they have less restrictions, adding that "We find from our experience much more flexibility and creativity at the smaller banks," he told the news source.

Randolph-based Heritage Community Bank was the top lender in the survey, with 60 percent of its more-than $130 million in deposits devoted to small business loans.

Peter Kenny, president and CEO of Heritage, explained that he doesn't feel intimidated by larger institutions.

"What we have found in the small business arena is that we compete very well against the Wells Fargos," he told the media outlet.

The state also received a healthy portion of Small Business Administration loans, the Burlington County Times reports. According to the agency's New Jersey district office, small business owners received $543 million in SBA loans during the first three quarters of fiscal years 2011 - a 41 percent jump, year-over-year.