First Business Financial Services in Madison, Wis., plans to consolidate the charters of its three subsidiary banks.
The $1.8 billion-asset company said in a press release Thursday that it will keep the charter for its First Business Bank in Madison, which will be supervised by the Federal Deposit Insurance Corp. and the Wisconsin Department of Financial Institutions. The company said its current management structure will not change and that it will continue to operate as Alterra Bank around Kansas City, Mo.
“The First Business operating model was built upon efficiency, and simplifying our legal and governance structure is the next natural step in our evolution as a growing commercial bank,” Corey Chambas, the company’s president and CEO, said in the release. “The way we function internally will be streamlined and efficient, while still allowing us to continue a locally distinguishable presence across our markets.”
The company said that, with a single charter, it expects to eliminate administrative redundancies and increase its flexibility in managing capital, liquidity and funding. The company also plans to eliminate a duplicative technology vendor relationship by fully centralizing its core banking system with the provider used by its Wisconsin banks.
First Business said it hopes to complete the charter consolidation in the second quarter.