Once all the business decisions have been considered and all the necessary pre-planning is complete, the time comes to set the plan in motion. Some of the specific requirements that must be satisfied to obtain a de novo Texas State Bank Charter are listed below.
- $15 million - $20 million for a bank operating in a metropolitan location
- $5 million - $10 million for a bank operating only in a rural location
These requirements are guidelines only. Each application is reviewed based upon its Strategic Plan. Capital must be fully subscribed and paid in cash.
Management
All state banks must have at least one organizer and a minimum of 5 and not more than 25 directors, Section 33.103 of the Texas Finance Code (TFC). The Board must meet monthly per TFC §33.105. Officer requirements are found in TFC §33.106.
All 10% shareholders, executive officers and directors must submit full financial and personal information, and go through a complete background check.
FDIC Insurance / Fed Membership
Generally, all state banks must be FDIC insured.
A state bank has the freedom to choose whether or not to apply for membership in the Federal Reserve. The Department has entered into an alternate examination program with both the FDIC and the Federal Reserve.
Open For Business
A state bank must open for business within 180 days from the date that approval of the charter is granted.
Home Office
A state bank must maintain a home office in Texas. The statutory factors that the applicant must satisfy in order to be granted a charter are detailed in Section 32.003 of the Texas Finance Code.
Application
Applicants are not required to attend a pre-filing meeting; however, a meeting is held with all principals as a part of the on-site investigation. The Department generally assigns a field examiner to conduct the investigation, which is conducted concurrently with the Federal Examiners.
The application forms may be accessed online.
Strategic Plan
An application must include a strategic plan acceptable to the Commissioner. The Business Plan Guidelines should be utilized to develop an acceptable strategic plan. The applicant may also want to review Supervisory Memorandum 1009.
