Springdale-based United Bank announced Friday (June 20) that it has converted the bank’s charter from a federal savings bank to an Arkansas State-Chartered institution. The charter conversion was approved on June 11 by the state banking board and the bank’s primary regulator will be the Arkansas State Bank Department.
Concurrent with this conversion the bank was also approved to become a member of the Federal Reserve System who will now serve as the bank’s federal regulator. Until the recent conversion, United Bank was regulated by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.
“Bank ownership and our board of directors believe that the conversion to a state charter and being a Federal Reserve member bank will be a good fit for our bank due to their understanding of Arkansas community banks. The State Bank Department has staff located in Northwest Arkansas and has a closer pulse on local economic conditions and community banks” said Nathan Gairhan, bank president and CEO. “The charter conversion will have no impact at all on our customer base.”
The Northwest Arkansas based institution has $140 million in assets, operating in two locations in Springdale and one each in Fayetteville and Rogers. The bank also has loan production offices located in Conway and Tulsa. The bank was started 35 years ago by Don Pitts and has had the same ownership since it was founded.