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Texas bank changes charter in the face of mounting Dodd-Frank regulations

Frost Bank, owned by the San Antonio-based Cullen/Frost Bankers, Inc., and one of the largest banks in Texas, filed an application with the Texas Department of Banking last Friday to switch the bank from a national charter to a state charter as a result of the Dodd-Frank Act.

The switch will simplify communications with regulators and save the bank $1.5 million in yearly regulatory fees, the Fort Worth Business Press reports.

Along with the switch, which is estimated to be finalized by the middle of this year, the state and Federal Reserve Bank of Dallas will oversee the bank, rather than federal regulatory agencies.

Dick Evans, Cullen/Frost’s chairman and CEO, said that the mounting federal regulations and responsibilities made it clear that the bank, nationally chartered since 1899, needed to make some changes.

“With Dodd-Frank and with the new Consumer Financial Protection Bureau and now the [Office of the Comptroller of Currency] taking on the regulation of thrifts…we just decided that it would be in our best interests to be closer to home,” Evans said, according to the Fort Worth Business Press.

Customer services and products will not be affected, and Evans said the move is also in the best interest of the bank’s customers.

“The key throughout all of the regulatory changes we’ve seen over the years is that we have stayed focused on the customer, and I think that [our record] confirms that we’re doing that,” Evans said, the Fort Worth Business Press reports.

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