Durham schools approve switch of local banking services to JPMorgan Chase; board keeps up to six school accounts at Mechanics & Farmers

The Durham Public Schools Board of Education voted to transition the district’s local banking relationship from Truist to JPMorgan Chase and to retain up to six school checking accounts with Mechanics & Farmers Bank. The motion, made by board member Carter Otten and seconded by board member Beyer, passed on a recorded vote of five in favor and one opposed. The key facts: district finance staff said the change is limited to local accounts (state and federal funds remain with the North Carolina State Treasurer’s core account). Kevin Harewood, an executive director with JPMorgan Chase who said he covers government banking in the state and is a DPS parent, presented JPMorgan’s proposal and technology platform. Finance staff estimated the move could generate about $600,000 in additional interest income annually under conservative assumptions, and they said the district must maintain roughly $2.5 million across accounts to offset bank fees. Implementation timeline and operations: the district’s finance team said legal review of the service agreement is complete. Staff described a testing and implementation period beginning in November with a target go‑live date of Jan. 1; the plan includes signature‑file setup, ACH testing to protect payroll, and training for school treasurers. The district also said it will offer remote check‑deposit scanners and other online tools to reduce the need for treasurers to visit branches. Local banking choices: six schools that currently bank with Mechanics & Farmers were permitted to remain there; staff said those schools would not be compelled to move unless their principals request a change. The board’s motion specified retention of “up to 6” Mechanics & Farmers accounts. Board discussion referenced a committee that reviewed RFP responses from Wells Fargo, PNC, Truist (incumbent) and JPMorgan Chase. Board action: the motion on the record was: “Approve the transition of our banking relationship to JPMorgan Chase and to retain up to 6 school checking accounts with Mechanics and Farmers.” The motion was moved by Carter Otten and seconded by Beyer. The recorded outcome in the meeting transcript was yes: 5, no: 1; the motion passed and staff will begin testing and training. What the district emphasized: staff said the change simplifies accounting by consolidating local accounts, reduces some operational friction when money must move between grant/community accounts and main accounts, and will give school treasurers more web‑based tools. Staff also said they will use retired school treasurers and outside help to assist local treasurers during the reconciliation period. Open questions: several board members asked how principals could request to remain with Mechanics & Farmers and whether additional schools could later choose to return; staff said they will accept such requests and that the issue can return to the board if more schools seek to stay with Mechanics & Farmers. Board members also asked about collateralization and state requirements; staff said the bank partners demonstrated required collateral and fraud protections during the RFP review.