The impact of a bank's capital structure is a key element in the success or failure of any bank, large or small.
It is indicative of a bank's ability to withstand possible loan losses and a cushion to allow future growth and expansion into new locations which promise to be profitable.
The New Jersey State regulations require a newly chartered institution to open with simply $6,000,000 in capital. This is wrong! The regulations should require at least double the existing minimum in the interest of safety.
We actually had a bank file a grievance opposing our application for a charter in 2006 on the basis that we were raising too much capital. The State and FDIC recognized this attempt to bar competition and since then that bank has been bought out; we remain strong for our depositors and CAPITAL IS KING!