The current count of banks in the US

As of the most recent data, there are approximately 4,000 to 4,500 banks operating in the United States, though the exact number shifts each year as banks merge, close, or open. The Federal Deposit Insurance Corporation (FDIC), which insures deposits at member banks, tracks this count and publishes it quarterly. The number has been declining steadily for decades—in 1985, there were roughly 14,000 banks—because consolidation and mergers have reduced the total even as the banking system has grown larger.

This count includes all commercial banks (the kind you use for checking and savings accounts), but does not include credit unions, investment banks, or online-only banks that operate under different regulatory structures. The FDIC publishes its official bank count on its website, broken down by state and by asset size, so if you want the precise number for a specific month or your state, that is the authoritative source.

Key Takeaways

  • The FDIC counts roughly 4,000 to 4,500 banks in the US, a number that changes quarterly as institutions merge or close.
  • The total has fallen from about 14,000 banks in 1985 because consolidation has accelerated, even though the banking system itself has grown.
  • This count includes only commercial banks insured by the FDIC, not credit unions, online banks, or investment firms operating under different rules.
  • The largest banks hold the majority of deposits, while thousands of smaller regional and community banks serve specific areas or customer bases.

Why the number keeps dropping

Bank mergers and acquisitions have been the primary driver of the decline. When two banks combine, the FDIC count goes down by one. Large banks have bought smaller ones to expand their branch networks or customer base, and smaller banks have merged with each other to survive competition from bigger institutions. The 2008 financial crisis accelerated this trend—many smaller banks failed or were forced to sell, and the survivors grew larger.

Regulatory costs also play a role. Compliance with federal banking rules, anti-money-laundering requirements, and consumer protection laws requires staff and systems that are expensive to maintain. Smaller banks feel this burden more acutely than large ones, which can spread compliance costs across millions of customers. As a result, some small banks have chosen to merge rather than operate independently.

How banks are distributed across the country

Banks are not evenly spread across the US. Some states have hundreds of banks; others have far fewer. Texas, Florida, and California have the most banks because they have large populations and strong regional banking traditions. States with smaller populations or those where a single large bank dominates have fewer independent institutions. The FDIC publishes a state-by-state breakdown, so you can see how many banks operate where you live.

Within states, banks cluster in urban and suburban areas where there are more customers and more money to lend. Rural areas often have fewer banks, which can make it harder for people in those regions to access in-person banking services. This is one reason why online banking and credit unions have grown in rural communities—they fill gaps left by the absence of physical bank branches.

The difference between bank size and bank count

The number of banks has fallen, but the banking system has not shrunk. Instead, it has consolidated. The largest banks—JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and a handful of others—now hold a much larger share of all deposits than they did 30 years ago. A few hundred of the 4,000+ banks hold the majority of the money in the system.

Thousands of smaller regional and community banks still operate, often serving specific geographic areas or customer types. A community bank in Ohio might focus on small business lending; a regional bank in the Pacific Northwest might specialize in agricultural loans. These smaller institutions compete on service and local knowledge rather than on size, and many customers prefer them because decisions are made locally rather than by a distant corporate office.

What counts as a bank for FDIC purposes

The FDIC count includes only banks that are FDIC-insured, which means they have passed federal safety and soundness exams and their deposits are protected up to $250,000 per account. Most banks you interact with are FDIC-insured, but not all financial institutions are. Credit unions, for example, are insured by the National Credit Union Administration (NCUA), not the FDIC, so they do not appear in the FDIC bank count.

Online banks that are FDIC-insured do count toward the total, even though they have no physical branches. Investment banks, brokerage firms, and money services businesses (like PayPal or Square Cash) are not counted as banks by the FDIC because they operate under different regulatory frameworks and do not take deposits in the traditional sense.

Where to find the official bank count

The FDIC publishes its official bank count on its website in a section called "Statistics at a Glance." The data is updated quarterly and includes the total number of banks, the number of bank failures that quarter, and breakdowns by state and by asset size. You can also download historical data going back decades, which shows the steady decline in bank numbers over time.

If you are researching a specific bank—whether it is FDIC-insured, how long it has been operating, or whether it has any enforcement actions against it—the FDIC also maintains a searchable database called the Institution Directory. This tool lets you look up any bank by name or location and see its regulatory status.

Frequently Asked Questions

Does the number of banks include online banks?

Yes, if they are FDIC-insured. Online banks like Ally, Charles Schwab Bank, and others that hold deposits and are insured by the FDIC are counted in the total. However, investment platforms and payment apps that do not take deposits are not counted as banks.

Why do I see different numbers for how many banks there are?

The count changes quarterly as banks merge, close, or open. Different sources may also count banks differently—some include only FDIC-insured banks, while others include credit unions or other institutions. The FDIC's official count is the most widely used standard.

Are credit unions included in the bank count?

No. Credit unions are regulated and insured by the NCUA, not the FDIC, so they do not appear in the FDIC bank count. There are roughly 4,500 credit unions in the US, a separate population from banks.

Is my bank FDIC-insured?

Most banks are, but not all. You can search the FDIC's Institution Directory by your bank's name to confirm. If your bank is FDIC-insured, you will see the FDIC logo on its website or in its branches, and your deposits up to $250,000 per account are protected.