N.J. bank scraps U.S. charter

1st Colonial National Bank, a community bank based in Collingswood, says it has converted to a New Jersey state-chartered bank, scrapping its national bank charter. The switch "will allow greater ability to execute our strategy" and "remain competitive," chief executive Gerry Banmiller said in a statement.

The outspoken Banmiller had previously questioned Congress's decision, under the Dodd-Frank bank reform law signed by President Obama in 2010, to force local banks like his to comply with what Banmiller says are cumbersome reporting and compliance rules, in response to losses and financial violations committed, not by community banks, but by big Wall Street institutions.

In the statement, 1st Colonial noted deposits will remain protected by the Federal Deposit Insurance Corp., and added that "the conversion to a state charter will not have any significant financial or regulatory impact or affect 1st Colonial’s current activities or customers."

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