Harold Zarker, a veteran officer of New Jersey's Princeton Bank and Trust, used to brag that the bank had a major advantage over its only competitor-First National Bank of Princeton-when both were local organizations.

"They are closer to the Princeton University campus, so they get all the trouble of handling the student accounts," Mr. Zucker would say. Student balances were small, overdrafts frequent, and the traffic of collegians cashing $10 and $20 checks an expensive nuisance.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

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