Paragon National Bank has taken the initial steps toward switching from being a nationally chartered bank to one with a state charter.
A change to a state charter would have no effect on Paragon customers or day-to-day operations, according to the bank. Paragon CEO Robert Shaw suggested it’s more about preferring a different regulator.
In a statement released about the move, Shaw explained that a state charter gives Paragon two advantages – a regulator based in Tennessee “who fully understands our market” and “a level playing field with our peer institutions, virtually all of whom are state chartered.”
Paragon also has announced its intent to form a holding company to own the bank. The official name of the holding company will be Paragon Financial Solutions, and will be regulated by the Federal Reserve. The holding company’s only investment would be Paragon National Bank and it would have the same board members as that of Paragon National Bank.