OKLAHOMA CITY – The number of state-chartered banks in Oklahoma increased recently to 138 when a bank in northwest Oklahoma City switched its affiliation.
The application of Quail Creek Bank to convert from a national charter to a state-charter was approved by the State Banking Board on February 16.
The next step is for the bank to file a charter application with the Secretary of State, Banking Commissioner Mick Thompson said.
Banks switch from a national to a state charter for a couple of reasons, Thompson said.
“The biggest reason is accessibility,” he said. “It’s a lot easier to get hold of the banking commissioner in Oklahoma than to contact the Comptroller of the Currency in Washington, D.C.” If a state-chartered bank in Oklahoma “has an issue, your primary regulator is on Lincoln Boulevard in Oklahoma City” rather than in the nation’s capital. A state-chartered institution “has more local autonomy and control,” Thompson said.
It’s also cheaper, the commissioner said. “We have reduced the assessments on our banks continuously in recent years.”
For example, the 2022 assessment rate was discounted 40% for each state-chartered bank that has assets of less than $1 billion; they pay a regulatory fee of 18 cents per $1 million in assets, Thompson said. “In the last four or five years we’ve reduced their fees by $16 million.”
Quail Creek Bank had total assets of $842 million at the end of last year, ledgers reflect.
Assessments for banks whose assets exceed $1 billion were reduced by approximately 20%, the commissioner said; they pay a fee based on a sliding scale. According to the Federal Deposit Insurance Corp., Oklahoma had 16 banks with assets of $1 billion or more in the third quarter of 2021.
“We’re following the recommendation of Governor Stitt that state agencies cut red tape and costs for companies and professions that the government regulates,” Thompson said.