Magazine article American Banker

Charter Approved for Banker's Bank in Oklahoma; 38 Institutions across the State Contribute $2.7 Million in Capital to Create Firm in Oklahoma City

Magazine article American Banker

Charter Approved for Banker's Bank in Oklahoma; 38 Institutions across the State Contribute $2.7 Million in Capital to Create Firm in Oklahoma City

Article excerpt

OKLAHOMA CITY -- The Oklahoma State Banking Board has approved a charter for a banker's bank.

The institution will be the 10th such limited-service bank in the United States and will exclusively serve banks, bank directors, bank employees, and bank stockholders.

Thirty-eight Oklahoma banks contributed $2.7 million to capitalize the institution, according to the chairman of the banker's bank, R. Stephen Carmack. He is executive vice president and chief executive officer of First State Bank in Hinton, Okla. The bank will open in Oklahoma City, but an exact location has not been selected, he said. Application for a charter was made with the state banking department in mid-September. The bank will operate as a subsidiary of a holding company, Bankers Bancorp of Oklahoma Inc.

A special provision in the Oklahoma statutes enacted two years ago parallels the federal law governing banker's banks, according to Oklahoma Bank Commissioner Robert Y. Empie. As a result, organizers of the new bank were able to form a holding company in advance of the bank.

"Because the one-bank holding company has become so ingrained in Oklahoma bank ownership," Mr. Empie said, "we have deemed ownership of a holding company to be the equivalent of ownership of the bank." Mr. Carmack called the arrangement "a case of 38 banks owning a holding company that will own one bank."

At the Nov. 27 state banking board meeting, Mr. Carmack said the organizers will submit a signed agreement to raise an additional $250,000 in capital within the first six months of the bank's operation. …

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