Bank Changes Charter Status

You may have heard The Bank of Fayetteville N.A. has applied with the Arkansas State Bank Department to convert from its current national bank charter classification to a state charter.

But do you know why?

BOF was the subject of heated discussion among the Northwest Arkansas banking industry during the summer and suffered speculation that it was up for sale or might be facing a heavy-handed acquisition.

“Not so,” said Mary Beth Brooks, president and CEO of the community bank.

And the charter conversion app doesn’t signal an ownership change now either, she said.

The bank has applied to switch regulatory agencies mostly because of people and relationships, Brooks said. She has a hard time getting her contact at the Office of the Comptroller of the Currency to return her calls, she said, and one recent examiner didn’t even know the University of Arkansas was a brisk walk from BOF’s main office.

Arkansas state banks, on the other hand, are overseen by a commissioner who goes by the nickname “Bunny” (Robert Adcock) and is relatively easy to get on the line. Brooks, a former state examiner herself, said the ASBD is responsive, friendly and understands the Arkansas economy.

If the application is approved, which Brooks hopes will happen by the end of the year, BOF will save about $30,000 a year in fees, she said.