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Board of Governors of the Federal Reserve System
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Preserving Minority Depository Institutions

State-Member MDIs

The System retains primary supervisory responsibility for 18 state-member 4 MDIs, which are predominately community banks, 5 having total assets of $10 billion or less (see table 1). (For more details on the 18 state-member MDIs discussed in this report as well as a comparison of the number, assets, and demographics of state-member MDIs from 2011-15, see appendix A.)

Accordingly, the System's community banking organizations program, which is responsible for the risk-focused supervision of state-member banks with less than $10 billion in total assets, maintains oversight responsibility for the System's portfolio of MDIs.

Table 1. Asset distribution of state-member MDIs
Asset Size Number of Banks Percentage of Total
$250 million or less 8 44
$251 million to $500 million 5 28
Over $500 million to $1 billion 1 6
Over $1 billion to $10 billion 2 11
Greater than $10 billion 2 11
Total 18 100

Geographic Dispersion

At year-end 2015, state-member MDIs were located in seven of the 12 Reserve Bank Districts, 6 with assets concentrated in the New York and San Francisco Districts (see table 2). State-member MDIs in these two Districts accounted for 97 percent of the MDI portfolio.

Table 2. State-member MDI distribution
Reserve Bank District Number of MDIs Total assets (millions of dollars) Percentage of total assets
Atlanta 1 387,897 0.51
Chicago 2 348,906 0.46
Dallas 1 214,526 0.28
Kansas City 5 740,614 0.98
New York 2 35,530,002 46.80
Philadelphia 1 134,655 0.18
San Francisco 6 38,568,724 50.80
Total 18 75,925,324 100.00

Source: Source: Consolidation Reports of Condition, as of December 31, 2015.

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Minority Ownership Type

The System's MDI portfolio includes banks representing all minority ownership 7 categories as defined by FIRREA. Consistent with national demographics for all MDIs, as of year-end 2015, most state-member MDIs were under Asian American ownership (figure 1).

Figure 1. State-member MDIs by minority type

Figure 1. State-member MDIs by minority type
Accessible Version | Return to text

Source: Federal Deposit Insurance Corporation, fourth quarter 2014 data, www.fdic.gov/regulations/resources/minority/mdi.html.

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References

4. The term "state-member" refers to state-chartered banks that are members of the Federal Reserve System. Return to text

5. For supervisory purposes, community banks are generally defined as those with less than $10 billion in total consolidated assets. Return to text

6. Reserve Banks for the 12 Districts are headquartered in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. Return to text

7. Section 308 of FIRREA, as amended by the Dodd-Frank Act, Title III, § 367(4), 12 U.S.C. § 1463 (2001 & Supp. 2013) defines the term "minority" as any black American, Native American, Hispanic American, or Asian American. In addition to institutions that meet the ownership test, the Board will consider an institution to be an MDI if a majority of its board of directors is minority and the community that the institution serves is predominantly minority. Return to text

Last update: July 26, 2016

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