Joseph S. Paparrato, president and chief executive officer of Norcrown Bank in Livingston, N.J., has advice for investors organizing banks: Make sure you have enough capital for the bad times.

Formed in 1987 with only $2 million of start-up capital, Norcrown swooned when the New Jersey economy hit a lull in the late 1980s.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.