James Vaccaro, Chair, President & CEO, Manasquan Bank

Invest: met with James Vaccaro, chair, president, and CEO of Manasquan Bank, to discuss the institution’s recent milestones, community impact, and strategic vision for the future. “For us, being a full-service bank means more than financial services, it’s about financial support combined with community engagement and social impact,” he said.

What have been the most notable achievements or milestones for Manasquan Bank in New Jersey over the past 12 months?

To give you a full picture of the past 12 months, I need to touch on the history and legacy of the organization. In 2024, we celebrated our 150th year of continuous service. The bank was founded on March 21, 1874, so 2024 marked a significant milestone for us. Over the years, the organization has transformed from a traditional thrift into a full-service community banking enterprise. I believe our biggest accomplishment, beyond the milestone, has been our continued growth in market share, particularly with consumers and small businesses. We’ve built strong partnerships, providing these businesses with the capital they need to grow and thrive in the marketplace.

How is Manasquan Bank contributing to New Jersey’s economic development, particularly in supporting small businesses?

We actively partner with the Small Business Administration (SBA) to offer small-business loans, including 504 and 7(a) loans. We also pride ourselves on fostering long-term relationships with businesses, whether they’re startups or more established. We provide essential capital, such as equipment loans, working capital lines of credit, and commercial mortgages. Additionally, a core part of our culture is giving back to the community. We have a charitable foundation that supports small 501(c)(3) organizations addressing societal needs that might otherwise go unmet. For us, being a full-service bank means more than financial services; it’s about financial support combined with community engagement and social impact.

I don’t think an organization can be truly complete unless it embraces the responsibility to give back. We often discuss the “fuel” that powers our growth. A significant part of that is the satisfaction we get from watching our neighborhoods and communities flourish through our partnerships.

What are you looking forward to in your role at the Federal Reserve Bank’s National CDIAC, and how might it benefit the community banking sector?

There are 12 Federal Reserve districts across the United States. The largest is District 2, covering New York, New Jersey, Connecticut, Puerto Rico, and the Virgin Islands. I chair the Community Depository Institution Advisory Council (CDIAC) in New York, and through that, I get a seat on the national board. As one of 12 representatives, I have the privilege of meeting with the Federal Reserve Board of Governors in Washington a few times a year. My role involves advocating for community banks and ensuring that regulations, like FDIC insurance and oversight, are structured to support the vital mission of Community Banks. While regulatory focus often lands on multinational banks, it’s the community banks that drive growth in small towns and cities. With over 4,500 banks in the country and only about 160 holding more than $10 billion in assets, it’s crucial we maintain a strong, unified voice at the national level.

How has M&A activity evolved among community banks in New Jersey?

M&A activity slowed considerably in 2022 and 2023, largely due to market uncertainty and the interest rate environment. We saw a slight pickup in 2024, and I expect to see more activity in 2025. The earnings model for community banks has become more challenging, especially for smaller banks with less than $500 million in assets. Many of these banks are now looking to merge with larger institutions to maintain their culture while staying competitive and serving their communities effectively.

How has population growth impacted Manasquan Bank and the local business community?

It has opened significant opportunities for us. We’re the 12th largest bank in New Jersey, with $3.2 billion in assets. This growth gives us greater capacity to support the credit needs of these new businesses. One of our credos is “big enough to matter, small enough to care.” We offer the same services as larger banks but with the personal touch of a community bank. Clients can call anyone on our leadership team directly because business banking is fundamentally an extension of personal relationships. We serve six generations, from the Greatest Generation to Gen Alpha, each with distinct banking preferences. While older generations may prefer branch visits, younger generations often choose online or mobile banking. We’ve developed a versatile, cost-effective platform to serve all these groups without alienating any of them.

How has the rise in cyber threats affected your operations, and how do you address cybersecurity while promoting financial literacy?

We have a proactive fraud and security department that conducts outreach programs, especially in senior communities, to educate people about scams. For example, romance scams spike around Valentine’s Day, so we encourage clients to call us if they receive suspicious messages. On the cybersecurity side, we were early adopters of robust protocols and formed a dedicated committee years ago. We have multiple firewalls, real-time monitoring and alert systems to detect unauthorized activity quickly. We also give customers tools like account alerts to help them spot potential fraud early.

What upcoming regulations are you looking at that might impact your business?

The regulatory environment has shifted recently. Agencies like the FDIC and CFPB have paused some upcoming rules to reassess their necessity. Overall, there’s a growing sentiment toward reducing regulatory burdens and letting the free market regulate itself more naturally.

Community banks have always prioritized consumer protection. It’s in our DNA. We don’t need excessive oversight to do what we’ve always done: advocate for and serve our customers responsibly. Regulations often stem from the actions of larger, profit-driven institutions. Since we’re mission- and values-driven, less regulation can give us more flexibility to serve our communities effectively.

What are Manasquan Bank’s top priorities for the next few years?

We plan to continue our growth trajectory, aiming for about 10% annual growth, well above the broader economy’s projected 2%-3%. Our strategy involves expanding into new markets, increasing our market share, and maintaining the balance of high-tech services with high-touch relationships.