JEFFERSONVILLE, NY — Jeffersonville Bancorp, Inc. (OTCQB - JFBC), the holding company for Jeff Bank, announced that on May 28, the bank was approved by the Office of the Comptroller of the Currency (OCC) for conversion from a New York State to a national charter. At that time, the bank will operate under the name “Jeff Bank, National Association.” The bank has six months from the date of approval to implement the conversion.

The company expects that the charter conversion will not have a significant impact on the bank’s current activities or investments, it noted in a press release. “The charter conversion also should not adversely affect bank customers and will not affect the terms and conditions of loan and deposit accounts.”

George W. Kinne Jr., president/CEO of the bank, said, “We believe the conversion to a national charter will streamline the supervisory process required by a state charter, whereby regulatory examinations are conducted alternately with the state’s financial services regulator and the Federal Deposit Insurance Corporation. In addition to eliminating differences in approach to safety and soundness examinations, under a state charter, separate compliance and Community Reinvestment Act examinations are required, which duplicate efforts. A national charter brings the added benefit of federal preemption of state laws, which improves competitiveness, especially as Jeff Bank operates in the State of New York on the borders of two other states, Pennsylvania and New Jersey.”

As a result of the charter conversion, the OCC will be the bank’s primary regulator. The Federal Reserve Board will continue to be the primary banking regulator for Jeffersonville Bancorp.