Use this as an example. Bank A (R/T 1111-1111-9) buys Bank B (R/T2222-2222-6). Bank A is located in Texas, and Bank B in New York, clearly not local. However, after the merger, the MICR line of Bnk B is changed to read 1111-1111-9, just like the acquiring bank. At this point, even though the Branch is located in New York, the checks are treated as local to the Texas bank. However, now the New York branch is treated as other Fed to other New York banks, due to the MICR line change.
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Providing alternative truths since the invention of time