COUNTY WORRALL COMMUNITY NEWSPAPERS THURSDAY, SEPTEMBER 21, 1B9S SECTION B (Jrom Trie Summit, UJB merger impact on county unclear 'Editor's Ky Chris Gatto "The prompt integration of Summit Regional Editor and UJB Financial will generate cost What the impact will be locally savings that will offset the initial dilu- Hy Tom Canuvun with the recent decision by UJB tion to UJB Financial shareholders, Kditor In Chief Financial Corp. and Summit Bancorp, and is expected to add savings per to merge has not yet been determined. share in 1997. The transaction will I'm having difficulty understand- The announcement of a definitive enable the combined entity to achieve ing what the New Jersey League of agreement to merge was made Sept. returns that neither company could Municipalities does. 11 and at that same time it was made realize on a stand-alone basis," said T. Yes, I know that when municipal known that a "cost-reduction process" Joseph Semrod, UJB's chairman. councils and township committees would bo forthcoming. "We remain dedicated to building consider resolutions recommended But what the impact will be on shareholder value." Summit's 15 branches and UJB's 22 by the League of Municipalities, Under the terms of the merger, branches in Union County is still up in the governing body doesn't blink which was approved Sept, 11 by the air. an eye to pass them. I've covered boards of directors of both banks, "We have not made that determina- several towns and when these resol- Summit's shareholders will receive tion yet," said C. Scott Rombach, utions are read, council people .90 shares of UJB common stock for seem to sit in awe when the League senior vice president for corporate each share of Summit common stock of Municipalities is mentioned in communications for UJB, when asked in a tax-free exchange. The merger the text, how the' 37 branches would be will bo accounted for as a pooling-of- I also know the League sponsors affected. interesls. Based on the average clos- an annual convention in November With branches scattered throughout ing price of UJB common stock, the for any and all officials from across the county, including several tit Union transaction's value is estimated at the stale. The convention is held in Township, Summit and Chatharfi, it is S31.95 per share, or a total of SI.2 Atlantic City, and from what I have not unlikely that at least some of the billion. experienced, there's more action in banks in the county will be subjected the casinos and hotel bars —- until 4 to either consolidation, closure or a Tho now corporation,; Summit a.m. — than there is at the seminars reduction in workforce. The new cor- Bank Corp., will have assets of S22 that are offered. poration will operate under the Sum- billion, deposits of $17.6 billion and mit name. shareholders equity of Si.7 billion. Photo By Joe Long I also know that towns pay dues The streamlining effort will bo The merger will create New Jersey's This United Jersey Bank, jocated on Morris Avenue in Union, is one of 22 Union County to the League of Municipalities headed by Summit Chief Executive second largest bank, celebrating a top branches owned by UJB Financial Corp. UJB last week announced plans to merge with based on, I believe, the size and Officer and President Robert G, Cox, three spot in 13 of the state's 21 coun- Chatham-based Summit Bancorp,, which owns 15 county branches. population of the town. who will bo the new bank's president ties. Summit will command the num- But other than lobby state gov- in addition to serving on its board of ber one market share in four of the sophies and substantially enhances tinction coming as the result of its vides financial services through its ernment, I don't understand the directors, and John G, Collins, UJB nation's top 25 counties ranked by per our market share in the largest market plans to acquire First Fidelity Bank, major lines of business including purpose of the League of Munici- financial vice chairman. Their mis- capita income. The company will in the nation. We are poised at the First Union is based in Charlotte, N.C, commercial banking, retail banking, retain a strong presence in eastern palities, and why towns —• and sion is to cut S78 million in annual threshold of some very exciting busi- Summit Bancorp., headquartered in mortgage banking and investment Pennsylvania, therefore taxpayers — have to fund operating costs through the elimina- ness opportunities," Chatham, has assets of $5,5 billion, management. These core businesses it when they really don't get much tion of duplicative systems and "other "This strategic partnership has The transaction is expected to close UJB is a Princeton-based financial and nine non-bank subsidiaries offer a of a return for their money. merger synergies," compelling benefits for us and is an in the first quarter of 1996, subject to services company with $15.9 billion full array of financial services to indi- The League is part of a recently According to published reports, ihe important part of our previous stated regulatory and shareholder approvals. in assets. It operates 277 community viduals, businesses, non-profit organi- formed coalition "that will work to new Summit intends to close 50 growth plan," said the 58-year-old UJB anticipates incurring a one-time banking offices and 277 automated zations, government entities and other ensure voter ratification of Public branches, the majority of those clo- Semrod, who will serve as chairman restructuring charge of about S54 mil- teller machines through United Jersey financial institutions. Question No. 3, the state mandate- sures coming in South and Central and chief executive officer of the now lion after taxes. Bank and New Jersey Savings Bank Merrill Lynch & Co. is acting as state pay amendment, in Novem- Now Jersey, An unspecified number corporation, "It is a solid blend of two First Union, with $16,1 billion in in New Jersey and First Valley Bank UJB's financial advisor and Keefe, ber. Approval of the public ques- of jobs will be eliminated. common business cultures and philo- assets, is the state's top bank, that dis- in Pennsylvania, The company pro- Bruyetie & Woods Inc. is Summit's. tion would amend the state Consti- tution to limit the imposition of future unfunded mandates on school districts, municipalities and A pile high Marrero named chairman counties." This came from a press release prepared by the coalition. of Kean's trustee board Is this what the League does in return for annual dues? & Jacinto "Jack" Marrero has been since 1994, is the executive director named chairperson of Kean College of the National Christian Leadership The League was instrumental in of New Jersey's Board of Trustees. conference for Israel. A professor lobbying our state legislators to He succeeds Larry Lockhart who was emerita in the College of Secondary support bill A-1908/S-7, the state elected chair in 1990 and has served Education at Seton Hall University mandate-state pay bill, which gives as a trustee since 1985. from 1968-89, Thoring, a West municipal councils and school dis- Marrero, a Princeton resident, was Orange resident, is widely recognized tricts the option to publish legal appointed to the board in 1993, He for her work in building bridges notices by title only. It's ironic that brings a lifetime of community ser- between Jews and Christians. a taxpayer-funded group would vice and human relations experience. Estabrook, who joined the1 board support a measure that would leave Since 1969, he has served in several this year, is a founder of and now is of taxpayers in the dark when it comes positions with The National Confer- counsel to Lindabury, McCormiek to actions taken by their governing ence of Christians and Jews, and is and Estubrook, a 32-lawyer firm bodies. currently its executive director of formed in 1954, located in Westfield. Who asked for their opinion? Greater New Jersey. A resident of Summit, he also serves Who asked for their interference? Two other board members, Sister as chairman of the Union County The League of Municipalities cer- Rose Thering and Kenneth Estabrook, Alliance, a broad based coalition tainly didn't go to the people who have been named vice-chair and sec- designed to provide a long-range vis- pay the taxes that eventually fund retary, respectively. ion JOT Union County's economic the group and ask how they felt Thering, who has served ihe board renewal and revitalization. about the public notice advertising bill. But that's one of the questions I Water-saving tips offered have about the League of Munici- palities. Whom docs it represent? to lessen drought woes If any of our elected officials can Photo By Jot Long shed some light on this topic, please A couple looks over the remains of the Hunan Garwood Restaurant, 358 North Municipalities in Union County • Mulch soil surface. Mulching cuts let me know. Ave., Garwood, following Saturday's fire, which destroyed the building, A pile of effected by tho drought emergency down on water loss due to rubble was all that remained Sunday following the blaze, which required the ser- are Berkeley Heights, Elizabeth, New evaporation. Residents served by New Jersey- vices of numerous firefighters including members of the Linden, Roselle and Rosel- Providence, Springfield, and Summit, • Shelter Container plants. Move American Water Company no lon- le Park departments. according to the Union County Board containers to shade areas to keep them ger will receive a quarterly bill.