A combined 22 Provident and Lakeland bank locations across New Jersey will be closing as a result of a $1.3 billion controversial merger between the two financial institutions.
The 22 locations “overlap” because of a nearby branch, according to a Frequently-Asked-Questions section of the Provident website.
“A careful and thorough review of our combined branch network was undertaken, and we have decided to close either a Provident branch or a Lakeland branch in cases where a single location can serve all of our customers,” the website states.
Provident’s merger with Lakeland comes more than a year and a half after the September 2022 announcement about the creation of the new entity, which has been dubbed a “super community bank” for the Garden State and will operate under the banner of Provident Bank.
Activists and opponents warned that the merger could mean fewer banking services would be available for underserved communities.
The bank branches closing
The Provident website lists out the 22 branches that are closing across the state. Each one is roughly 3 miles from a nearby branch.
- 100 Route 206, Augusta
- Transferring operations to 37 Route 15, Lafayette
- 1260 Broad St., Bloomfield
- Transferring operations to 11 Broad St., Bloomfield
- 11 Ackerman Ave., Clifton
- Transferring operations, 562 Lexington Ave., Clifton
- 2650 Route 130 and Dey Road, Cranbury
- Transferring operations to 74 North Main St., Cranbury
- 55 Broadway, Denville
- Transferring operations to 41 Broadway, Denville
- 180 Main St., Fort Lee
- Transferring operations to 320-322 Broad St., Leonia
- 399 Route 23, Franklin (Sussex County)
- Transferring operations to 25 Route 23, Franklin
- 3441 Route 9, Freehold
- Transferring operations to to 3515 Route 9 South, Freehold
- 25 Main St., Hackensack
- Transferring operations to 9 Polifly Road, Hackensack
- 140 Mercer St., Hightstown
- Transferring operations to 509 Route 130, East Windsor
- 450 Route 206, Hillsborough,
- Transferring operations to 32 New Amwell Road, Hillsborough
- 265 Main St., Madison
- Transferring operations to 98 Main St., Madison
- 106 E. Main St., Mendham
- Transferring operations to 95 E. Main St., Mendham
- 151 South St., Morristown
- Transferring operations to 24 North Park Place, Morristown
- 15 Trinity St., Newton,
- Transferring operations to 11 Hampton House Road, Newton
- 145 Fayette St., Perth Amboy
- Transferring operations to 339 State St., Perth Amboy
- 2000 Windrow Drive, Princeton
- Transferring operations to 11 Schalks Crossing Road, Plainsboro
- 33 Main St., Sparta
- Transferring operations to 7 Town Center Drive, Sparta
- 464 Cedar Lane, Teaneck
- Transferring operations to 417 Cedar Lane, Teaneck
- 7 Church St., Vernon
- Transferring operations to 529 Route 515, Vernon
- 455 Route 123, Wantage
- Transferring operations to 378 Route 23, South Wantage
- 345 Franklin Ave., Wyckoff
- Transferring operations to 652 Wyckoff Ave., Wyckoff
When will the banks close?
Consolidations will begin on Thursday, Aug. 29.
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What about Lakeland customers?
'Lakeland customers will be able to bank at Provident's 140 branches, and via online and mobile banking, starting Sept. 3. In the meantime, customers can still bank at their local Lakeland branch.
Customers with accounts at both banks will have their accounts insured -or backed - separately by the Federal Deposit Insurance Commission until six months after Provident acquires Lakeland. For certificates of deposit, the FDIC will separately insure those accounts.
Impact on community banking
Newark city officials and activists from New Jersey Citizen Action called for tougher community banking standards to be included in the merger agreement — but an April announcement on federal approval of the merger includes no such requirements.
“It does present an issue around equality in terms of accessing basic financial services,” said Leila Amirhamzeh, director of development at the progressive advocacy group New Jersey Citizen Action. ”A lot of individuals really only access financial services through their local bank branches.”
“Any branch closure is going to impact the community,” she said.
The two banks finalized the merger last month, according to a May 16 press release.
Activists and federal lawmakers warned that banking mergers could lead to fewer branches serving the most at-risk residents, including minorities, the elderly and those with lower incomes, essentially creating “banking deserts.”
Must open two branches in underserved areas
Provident would effectively take ownership of the settlement and the mandate to open two branches in underserved areas of New Jersey.
Newark Mayor Ras Baraka wanted one of them to be in his city, and the Greater Toms River Chamber of Commerce wanted a branch in its area.
"The fewer banks there are, the less products there are, the less service, the less investment," Phyllis Salowe-Kaye, former president of New Jersey Citizen Action, said in an interview with the Asbury Park Press.
The number of bank branches fell from 3,277 in 2012 to 2,478 in 2022 — a 24% drop — according to the FDIC.
While banks have adopted technology such as mobile banking, the Federal Reserve Bank of Philadelphia — which covers large portions of South Jersey — warned in a recent report that “low- and moderate-income individuals and businesses in banking deserts may face increased challenges in accessing retail products and services, limiting their opportunity to improve their financial health and accumulate wealth.”
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email:munozd@northjersey.com; Twitter:@danielmunoz100andFacebook
