New Jersey group gets conditional FDIC approval to open bank

Organizers of a proposed de novo bank in New Jersey have received conditional approval from the Federal Deposit Insurance Corp.

The group behind the planned Liberty Bank of New Jersey in Short Hills must raise $40 million before opening, according to the FDIC’s order.

Organizers applied to the FDIC and the New Jersey Department of Banking on March 4. The proposed bank “intends to opportunistically and prudently expand into other attractive markets throughout northern New Jersey following the initial three-year de novo period,” the application said.

Organizers had $15 million in capital commitments when they applied. The goal is to open the bank by the end of this year.

Richard Spengler, a former chief lending officer at Investors Bank, would serve as CEO. Investors, which was based in Short Hills, was sold to Citizens Financial Group in 2022.

Other notable organizers include Keith Banks, Ryan Peene, and Thomas Scrivo.

“The establishment of Liberty Bank of New Jersey is happening at a critical time in the banking industry,” Spengler said in a March press release. “There has been significant consolidation across the industry, and we are optimistic that the bank will deliver much-needed banking services for local businesses to flourish right here in the Garden State.”