Another Arkansas bank is working to convert its federal charter to a state charter, joining the ranks of peers including Simmons Bank of Pine Bluff.
Helena Bancshares Inc. of Helena said Wednesday that it will convert its subsidiary, Helena National Bank, from a federal charter regulated by the Office of Comptroller of the Currency to a state charter regulated by the Arkansas State Banking Department, pending regulatory approval.
In a news release, the company said the application to convert has been filed with the regulators and that it expects approval in late October.
After the conversion, the bank will change its brand to HNB Bank for an interim period. The bank is required to remove the word “national” from its name when it is no longer an OCC bank.
“This will be beneficial for the Bank financially and we will be joining many other Arkansas Banks who have made this same decision because of the community bank support and reputation of the Arkansas State Banking Department,” Joe Tom Cunningham, the bank’s board chairman, said in the press release. “We look forward to a good working relationship with them in the future.”
The move continues a trend of national banks converting to state charters in Arkansas. Under regulation by the state Banking Department, banks can see lower regulatory fees and closer communication with regulators.
Sixteen banks in Arkansas now operate under national charters. Another, Priority Bank of Fayetteville, is an OCC-regulated thrift.
Helena National Bank is a 78-year-old full-service community bank with six branches in Helena-West Helena, Marvell, Wynne and Crittenden. As of June 30, the bank had $182.8 million in assets.
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