Bank organizers can choose to license a bank as a national or state bank. States license banks, known as a state chartered bank, through a state banking department or state banking commissioner; the U.S. Department of Treasury licenses national banks.
Dividends

Unlike national banks, state law often allows state chartered banks to pay dividends on common stock.
Lending

An additional advantage of state chartered banks is that state chartered banks may lend more money than national banks. Federal law limits national bank lending to 15% of a bank's total equity capital. (Reference 1)
Regulation

The Federal Deposit Insurance Corporation or Federal Reserve and a state banking department regulate state chartered banks. In contrast, the Office of Comptroller Currency governs national banks as opposed to the overlapping federal and state regulation of state chartered banks. ...more

Bank organizers can choose to license a bank as a national or state bank. States license banks, known as a state chartered bank, through a state banking department or state banking commissioner; the U.S. Department of Treasury licenses national banks.

The charter bank of a state.