First National Bank of Mercersburg seeks to convert to PA state bank charter
MERCERSBURG — The First National Bank of Mercersburg, a subsidiary of Mercersburg Financial Corporation with an office in Greencastle, has filed an application to convert from a national bank charter to a Pennsylvania state bank charter. If approved later this year, the bank will then be called the First Community Bank of Mercersburg, according to a news release.
As a national bank, The First National Bank of Mercersburg’s primary regulator is the Office of the Comptroller of the Currency (OCC), headquartered in Washington, D.C. Following approval, The First National Bank of Mercersburg’s primary regulator will be the Pennsylvania Department of Banking and Securities (DOBS), with additional federal oversight provided by the Federal Deposit Insurance Corporation (FDIC).
“As a Community Bank committed to serving the banking needs of south-central Pennsylvania since 1909, the Board of Directors and Management believe that having a primary regulator that is focused on the needs and challenges of a Pennsylvania Bank is appropriate. Moreover, the Board of Directors and Management believe that a more local, regional primary regulator with a better understanding of the local environment in which we operate, will be conducive to enhanced responsiveness in the Institution’s regulatory matters,” said Robert J. Fignar, Mercersburg’s President and Chief Executive Officer.
Fignar also said that the Pennsylvania Department of Banking and Securities is well positioned to provide cost-effective guidance and oversight regarding the Bank’s future objectives.
Robert H. Hoffman, chairman of the board, stated, “It is the board’s belief that this charter conversion will be advantageous to our shareholders, customers and community”.
The conversion, which is subject to regulatory approval, is expected to be completed in late 2014. Fignar said the conversion to a state charter will not affect The First National Bank of Mercersburg’s customers in any way.
Depositors will continue to have full protection of the FDIC. As a bank holding company, Mercersburg Financial Corporation will continue to be regulated by the Federal Reserve. The bank will operate under the name of First Community Bank of Mercersburg.
The First National Bank of Mercersburg, a subsidiary of Mercersburg Financial Corporation , operates six banking offices and financial centers in Franklin County, including a branch in Greencastle.