Santa Rosa, Calif.-based Luther Burbank Corp. wants to convert into a bankholding company from a unitary thrift holding company, the North Bay Business Journal reported July 19.
If approved by the Federal Reserve Bank of San Francisco,the bank holding company would acquire control of after itsconversion to a state-chartered commercial bank from a federally charteredsavings association.
Luther Burbank Savings is converting to a state bank charterpartly due to its desire to escape OCC examination fees, according to the newsstory.
"I don't believe the OCC is the best regulator forsavings institutions. They're more for national banks, banks working out ofstate and in multiple states," Luther Burbank Savings President and CEOJohn Biggs told the news outlet.
Biggs said that Luther Burbank Savings will be insured bythe FDIC and the California Department of Business Oversight, which may lead toannual savings of about $800,000. The report said that the state's Departmentof Business Oversight charges lower fees, while the FDIC does not charge forits exams.
The chief executive told the publication that Luther BurbankSavings is not changing its ownership and is not going public.