Local History: Investors Savings Bank's Legacy

Investors Savings has had, and continues to have, a long and important history in Millburn, and Rodger K. Herrigel, attorney at law with Herrigel, Bolan, LLP provided copies of the history of Investors Savings Bank:

According to the history of Investors Savings, as recounted in 1978 by one of the founders and Millburn lawyer Fred Herrigel, in 1925 Charles Reeve, a Millburn realtor, and Herrigel "carefully selected a group of substantial business men from the Millburn area and discussed with them the future potentialities of (establishing a Building and Loan Association in Millburn)." The 12 original directors included: Frank Rudolph, a pharmacist; Harvey Tiger, hardware store owner; ____ Lyons, owner of the 5 & 10 store; Adrian Diedecker, local deli operator; Fred Schierbaum; Andrew Morotta; C. Bertram Leggett; Frederick G. Schroeder and Charles Wittkop.

The proposal was met with enthusiasm and Herrigel was authorized to draw up the charter and apply for the establishment of an association "to be named the Washington Rock Savings and Loan Association to be situated in Millburn Township." The officers of the Association were: Albert E. Allsop, president; Charles R. Reeve, vice president; and Fred Herrigel, Jr., counsel.

A 1978 news release on the history of Investors Savings stated, "To establish the association, they had to sell $1,000 worth of subscriptions for shares and provide a thrift and mortgage service business. Operational procedures were a far cry from the modern methods used today, but these organizations, which had been springing up in large numbers throughout the country, made every citizen's dream of owning his own home a reality in America. Local residents reacted enthusiastically and the initial subscription was easily sold... Thus, on May 1, 1926, this group of men incorporated what was then known as the Washington Rock Building & Loan Association."

Anyone who owned shares was a member of the association and could borrow money. Shares were sold at $200 each and were paid for at the rate of $1 a month and served as collateral for the loan. The average mortgage loan granted was between $5,000 and $10,000 and represented 60 percent to 80 percent of the cost of the house. Fred Herrigel further recalled, "We had conducted the business in an excellent, conservative manner and, thus, as the prosperity of the Roaring Twenties peaked and the Depression set in, the Association had few foreclosures, owned no real estate, the value of the assets had not depreciated, and, generally speaking, we were able to honor all withdrawals when requested."

He attributed their early success to their choice location and very carefully selected mortgages. The news release adds, "That founding philosophy remains intact today and is reflected in Investors Savings' slogan:  'A sound, conservative savings institution.'"

In April 1942 the association changed its name to Investors Savings and Loan Association. Although the association was smaller than the rival Millburn Building & Loan Association, after enactment of new  savings and loan laws in New Jersey, Investors was able to purchase the Millburn Association's assets in July 1942 to bring total assets to $2 million. At the same time, Investors insured member savings by becoming a member of the Federal Savings and Loan Insurance Corporation.

J. Albert Kolb became president of Investors and Roland Lewan Sr. came aboard as managing officer (see attached 1942 Item article). Herrigel stated, "Lewan, Sr. was brilliant at public relations… knew the value of communicating to local residents that Investors Savings genuinely cared about their needs… (and) opened the doors of his office to community group meetings."

With good leadership the organization grew rapidly, Investors entered into agreements and purchased the mortgages of the Battle Hill Savings & Loan Association of Springfield and the Connecticut Farms Building & Loan Association. Lewan and Herrigel then discussed the possibility of opening a branch office in Union. After an application for that to the New Jersey Department of Banking was approved, Investors became the first savings and loan association in New Jersey to open a branch office.

By 1978, mergers and branching brought the total of Investors offices to 13. The 2010 Investors website now notes that they operate "over 65 full-service branches across ten counties" with assets of nearly $9 billion.

In summing up his history of the association he founded, Herrigel noted, "This is a business of helping people" and the mission of Investors Savings Bank still reflects that objective: "Investors Savings Bank strives to provide high-quality products and services in an honest and straightforward manner while operating responsibly and ethically, so that our clients, employees, stockholders and communities may prosper."

As can be seen in the generous support Investors continues to give to Millburn and its non-profit organizations, Investors is still committed to seeing to it that the community and its residents prosper.