The current count of banks in the United States

As of 2024, there are roughly 4,500 to 4,700 banks operating in the United States, depending on how you count them. The exact number shifts month to month because banks merge, close, or open regularly. The Federal Deposit Insurance Corporation (FDIC), which insures deposits at most banks, tracks this number and publishes it quarterly.

The count includes commercial banks, savings banks, and savings and loan associations — all institutions that take deposits and make loans. It does not include credit unions, which are member-owned cooperatives and are tracked separately by the National Credit Union Administration (NCUA). Credit unions number around 4,800 to 5,000 institutions.

The number of banks has been declining for decades. In 1985, there were roughly 14,000 banks in the United States. Consolidation through mergers and acquisitions, along with bank failures during economic downturns, has reduced that number significantly. The 2008 financial crisis and the COVID-19 pandemic both accelerated closures and mergers.

Key Takeaways

  • The FDIC reports approximately 4,500 to 4,700 banks in the United States as of 2024, with the exact number changing quarterly.
  • The count has fallen from roughly 14,000 banks in 1985 due to mergers, acquisitions, and closures over several decades.
  • Credit unions are separate institutions and number around 4,800 to 5,000, but are not included in the bank count.
  • The largest banks by assets control a significant share of total deposits, while thousands of smaller regional and community banks serve local markets.

Why the number keeps changing

Banks disappear from the count through mergers and acquisitions. When two banks combine, the number of institutions decreases by one. Large national banks have acquired thousands of smaller regional banks over the past 40 years. For example, Bank of America, Wells Fargo, and JPMorgan Chase have each grown partly through purchasing other institutions.

Banks also close due to financial failure. The FDIC maintains a list of failed banks on its website, updated whenever a bank is closed. During the 2008 financial crisis, 465 banks failed between 2008 and 2013. In 2023, three regional banks failed (Silicon Valley Bank, Signature Bank, and First Republic Bank), which temporarily reduced the total count.

New banks do open, but less frequently than closures and mergers occur. Starting a bank requires significant capital, regulatory approval from both federal and state authorities, and a business plan that convinces regulators the bank will remain solvent. Most new banks are small community institutions.

The difference between bank size and bank count

The roughly 4,600 banks in the United States vary enormously in size. The top ten banks by assets control roughly 50% of all deposits in the banking system. JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup are the four largest, each with trillions of dollars in assets.

The remaining 4,500+ banks are smaller regional banks, community banks, and specialty banks. Many serve a single state or region. Some focus on specific industries — agricultural banks, for example, concentrate on lending to farms. Others serve particular communities or customer types.

A small community bank might have $500 million to $2 billion in assets and operate a handful of branches in one county. A regional bank might have $10 billion to $100 billion in assets and operate across several states. The size affects what services they offer, how they price accounts, and how much they invest in technology.

Where to find the official count

The FDIC publishes the official count of insured banks quarterly in its Quarterly Banking Profile. This report breaks down the number of banks by state, by asset size, and by type. You can access it free on the FDIC website under the Statistics section.

The report also tracks other metrics: how many banks are profitable, how many have problem loans, and how the total assets in the banking system have changed. If you need the most current number, the FDIC's quarterly report is the authoritative source.

The Office of the Comptroller of the Currency (OCC), which regulates national banks, also publishes data on the banks it supervises. The OCC's count is a subset of the total — it includes only national banks, not state-chartered banks.

How bank consolidation affects you

When banks merge, customers of the smaller bank are absorbed into the larger one. Your account usually transfers automatically, though the terms may change. Interest rates on savings accounts often drop after a merger. Loan rates may shift. Branches may close, forcing you to use ATMs or online banking for some services.

Consolidation can also mean fewer choices in your area. If your community had three local banks and two merge, you have fewer independent institutions to choose from. This can affect competition on deposit rates and loan terms.

On the other hand, larger banks often offer more services, better technology, and more extensive branch networks. They may have lower fees on certain accounts or better rates on large deposits. The trade-off between choice and convenience varies by location and by individual preference.

State-by-state variation in bank numbers

The number of banks varies significantly by state. States with larger populations and more economic activity tend to have more banks. California, Texas, and New York have the most banks. States with smaller populations, like Wyoming and Vermont, have fewer.

Some states have more community banks relative to their population because of state laws that historically restricted branch banking or out-of-state acquisitions. These restrictions have loosened over time, but their effects persist. States that allowed more consolidation earlier have fewer total banks today.

The FDIC's quarterly report breaks down the bank count by state, so you can see how many banks operate where you live. This information is useful if you are considering moving and want to understand what banking options will be available in your new location.

Frequently Asked Questions

Is the number of banks still declining?

Yes. The trend of declining bank numbers has continued for decades and accelerated during economic crises. Mergers and acquisitions still outnumber new bank openings and bank failures combined, so the overall count continues to fall slowly each year.

What is the difference between a bank and a credit union?

Banks are for-profit institutions owned by shareholders. Credit unions are member-owned cooperatives where customers are part-owners. Credit unions are regulated by the NCUA instead of the FDIC, though both insure deposits. Credit unions often offer lower fees and better rates on savings, but may have fewer branches and services.

Do I need to worry if my bank is small?

No. Small banks are insured by the FDIC up to $250,000 per account, the same as large banks. The FDIC may provide is what matters for safety, not the bank's size. Small banks often provide better customer service and local decision-making, though they may have fewer online features.

How do I learn about a bank is FDIC-insured?

The FDIC maintains a searchable database called the FDIC Institution Directory on its website. Enter the bank name or location, and it will tell you whether that bank is insured and what the insurance limits are for your type of account.

Why do banks fail?

Banks fail when they lose money on loans, face unexpected withdrawals they cannot cover, or make poor business decisions. Economic downturns, rising interest rates, and poor management all contribute. The FDIC steps in when a bank fails, pays out insured deposits, and either sells the bank to another institution or liquidates its assets.