How Many Regional Banks Are There in the US?

The United States banking system includes various institutions, from local community banks to international entities. This article clarifies the role of regional banks within this intricate system.

Understanding Regional Banks

Regional banks typically operate across multiple states within a specific geographic area. While there is no single official definition, they are generally characterized by their asset size. Their balance sheets often range from tens of billions to a few hundred billion dollars, placing them between community banks and the largest national or global financial institutions.

Regional banks offer a comprehensive suite of financial services to consumers and businesses. This includes traditional checking and savings accounts, loans for mortgages and commercial ventures, and various investment products. Their service offerings are typically more extensive than those of a community bank but less complex or globally focused than those provided by the largest money center banks.

Regional Banks in the Broader Banking Landscape

Regional banks occupy a distinct middle ground when compared to other common banking categories. Community banks, for instance, are generally smaller in asset size, often holding less than $10 billion, and primarily serve a specific local community or region. Their focus tends to be on personalized relationships and local economic development, often with a more limited geographic footprint and service array.

On the other end of the spectrum are the large national and global banks, sometimes referred to as money center banks. These institutions possess asset bases that can extend into the trillions of dollars and operate across the entire United States, frequently with a significant international presence. They offer highly sophisticated financial products and services, catering to large corporations, institutional investors, and global markets in addition to retail customers.

The Dynamic Nature of Regional Bank Numbers

Providing a precise count of “regional banks” in the United States is challenging because regulatory bodies do not maintain a specific classification for this category. Agencies like the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve primarily categorize banks based on their charter type, asset size, and other supervisory metrics. The informal nature of the term means different industry analyses might use varying criteria for inclusion.

The asset thresholds used to define a regional bank are also fluid and subject to change over time, depending on industry trends and economic conditions. A bank’s growth or contraction can shift its perceived classification, meaning an institution might grow into or out of what is considered a “regional” tier. For example, a bank nearing $500 billion in assets might begin to be viewed more like a large national bank than a regional one.

The banking industry is dynamic, characterized by frequent mergers and acquisitions. These transactions constantly alter the number and structure of banking institutions, making any specific count quickly outdated. Depending on the definition and asset criteria used, estimates from financial analysts and industry reports often suggest there are typically between 50 and 150 regional banks operating in the United States at any given time.