Conversion Complete
by June 23, 2014 12:00 am 83 views
Springdale-based United Bank has received approval for its conversion to a state-chartered, Fed member bank.
United Bank president and CEO Nathan Gairhan was in Little Rock on June 11 to watch the Arkansas State Banking department give its stamp of approval.
You may recall we told you earlier this year the thrift was seeking the conversion.
Since it was founded in 1978, United Bank has been a thrift, or federal savings bank, and as such was regulated by the Office of the Comptroller of the Currency.
United Bank’s operations are now subject to applicable federal and state laws.
Makes sense to us. The OCC does have a field office in Little Rock, but in today’s competitive and highly regulated bank market, it’s probably best to be controlled by a local bank, rather than one in Washington, D.C.
Not to mention the fees for a state charter are no doubt less than for a federal charter.
“Our ownership and our board felt this was a better fit for us,” Gairhan told Whispers. “We left the OCC on good terms, but the Arkansas State Banking department understands community banking in Arkansas.”
United Bank, with two locations in Springdale and one each in Fayetteville and Rogers, had $142.67 million in assets as of March 31, and its net income for 2013 was $3.56 million.