Citizens Bank of Kansas is converting from a national charter to a state one, according to a regulatory filing.
The Kingman-based bank, which has two Wichita branches, made the request Jan. 28, according to a filing with the Kansas bank commissioner, regulator of state-chartered banks.
Jane Deterding, executive vice president and general counsel, said Friday that the $215-million-asset bank expects to save between $30,000 and $50,000 annually from the costs of operating a state charter versus a national one.
And “it’s just a change back to an organization that has a better understanding of rural banking, community banking,” Deterding said.
She said operating under the Office of the Comptroller of the Currency, the regulator of national banks, is “geographically and philosophically different.”
The bank will retain its name with the charter conversion.
The bank originally held a state charter. It started as Citizens State Bank of Atlanta and was based in Atlanta, Kan. Jane Deterding’s father, Max, purchased the controlling shares of that bank in 1963. A year earlier, Max Deterding had purchased the controlling shares of Turon State Bank in the Kansas town of the same name.
In 1979, Max Deterding acquired the First National Bank of Kingman. A change in federal banking laws permitting multiple bank ownership by one company and intrastate branching prompted Deterding and officials to merge the banks into one in 1994, operate under a single, national charter, and change the name to Citizens Bank of Kansas.
Citizens is one of two banks that have filed with the bank commissioner in recent months to convert from a national charter.
First National Bank of Independence is the other, according to the filing.