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Mason National Bank Applies for State Charter
Wednesday, August 22, 2012 • Posted August 22, 2012

Mason National Bank has announced an application to change from a National banking charter to a State banking charter. In making this announcement George Brannies, Chairman of the bank stated, “After 108 years serving this community as a National bank our board and management have determined that it is in the best interest of our bank, our customers and our community for us to change our charter to a State charter."

Currently, Mason National Bank is a nationally chartered bank, meaning that oversight and auditing occurs with the Comptroller of the Currency. With a state charter, that regulatory oversight will shift to the Texas Department of Bank or the Dallas Federal Reserve office.

Brannies explains, "As far as our bank customers are concerned nothing will change. FDIC Insurance will remain the same. All accounts will remain the same. All rules and regulations will remain the same. The only change will be that we will be dealing with Texas regulators rather than Washington regulators. We expect a much better dialogue with Texas regulators that understand community banking as opposed to the mega banks that the Washington bureaucrats are accustomed to dealing with."

The change in charter from national to state will require some changes. According to Brannies, "Our new name will be Mason Bank. We feel this new name expresses our desire to be only in Mason and serve only this community. We have no interest in branching into other communities and are committed to being the best bank that we can be for Mason and Mason County.

"We have been very blessed to have been part of this community for the past 108 years and are extremely grateful for our loyal customer base. The strength of any bank is measured by it’s risk based capital ratio. The average state bank has Tier 1 risked based capital of 13.2%. Mason Bank has Tier 1 risked based capital in excess of 30%.

"We look forward to utilizing this exceptionally strong capital base to serve our community for at least the next 108 years."

According to the Texas Department of Banking, there are 301 state chartered banks currently operating in Texas, with assets of $175.5 billion (as of March 2012), compared to 248 nationally chartered banks in the state with assets of $162.1 billion. Since 2001, 23 banks have made the move from national to state charter, with the most recent being Frost Bank in June of 2012.

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