We recently moved our daughter to Columbia, Missouri, to start school at the University of Missouri. A few years ago, we moved our son to Iowa City, Iowa, to start school at the University of Iowa. In both cases, the kids saw benefits to becoming official residents of their respective states, so they followed their state’s respective requirements — getting a driver’s license, registering to vote, etc. This reminds me of some of our bank clients who have expanded into new states by opening new branches or loan production offices or purchasing whole banks via acquisition. Sometimes bank expansion into another state is very clear, while other times it’s more subtle and happens over time, such as gradual loan increases to out-of-state borrowers.
Regardless of what caused your bank’s operations to land in another state, stay in close consultation with your Wipfli tax professional to ensure you understand the benefits and potential costs (tax implications and filing requirements) of each state you operate or have loan customers in.