How Many Regional Banks Are in the US?
Explore the U.S. regional banking sector, from defining its institutions to understanding their dynamic presence and impact.
Regional banks are an integral part of the United States financial system, serving communities and businesses across various regions. These institutions bridge the gap between smaller, locally focused community banks and the much larger national or international banking giants. Understanding what defines a regional bank and their current presence helps clarify their specific role in the broader financial landscape. This overview provides clarity on the characteristics and count of regional banks in the U.S.
Defining a Regional Bank
A regional bank is characterized by its asset size, geographic reach, and the breadth of services it provides. The Federal Reserve defines regional banks as those holding total assets between $10 billion and $100 billion. This places them above community banks, which have less than $10 billion in assets, but below large financial institutions that exceed $100 billion in assets.
These banks operate across multiple states or within a specific geographic region, rather than being confined to a single town or having a nationwide presence. Their operational footprint allows them to offer a more extensive array of financial products and services compared to smaller community banks. Regional banks provide personalized service with advanced offerings.
The Current Number of Regional Banks
The number of regional banks in the U.S. is not static and fluctuates due to ongoing changes in the financial sector. As of December 2022, there were approximately 134 regional banks. This figure reflects a dynamic environment where mergers, acquisitions, and new bank charters regularly impact the total count.
While the overall number of community banks has seen a decline over recent decades, the number of regional banks has shown some growth. Any stated number represents a snapshot in time due to continuous evolution. The banking landscape is subject to market forces and regulatory adjustments, leading to shifts in their classification and existence.
The Role of Regional Banks
Regional banks play a significant role in supporting economic activity within their geographic areas. They serve a diverse client base, including individuals, small to medium-sized businesses, and state and local governments. These institutions are primary lenders for commercial real estate projects and provide capital to small and mid-sized enterprises, fostering local development and growth.
Regional banks offer comprehensive services, including traditional retail banking products like checking, savings, and money market accounts. They also provide loans, leases, mortgages, and credit cards. Many regional banks extend into areas like ATM networks, securities brokerage, investment banking, and insurance sales, catering to a broader range of financial needs.
Sources for Regional Bank Data
Reliable data on regional banks in the U.S. is primarily compiled and published by federal regulatory bodies. The Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) are central to this effort. These agencies collect financial and structural data from the banks they oversee.
The Federal Reserve maintains the National Information Center (NIC), providing detailed balance sheet and income information for banking organizations. The FDIC offers its BankFind Suite, allowing public access to financial and demographic reports on insured institutions. The OCC also publishes information on national banks and federal savings associations. These sources provide transparent and authoritative data on the U.S. banking system.