LOS ANGELES – Rep. Maxine Waters held a town hall meeting on Saturday where she pointedly asked executives from City National Bank, PNC Financial Services and Wells Fargo & Co., if they would each open a branch in her district. She said she wanted to hold the banks accountable for promises made in recent merger agreements or consent orders.
The town hall meeting at Inglewood High School got fiery at times as Waters pressed the three bank executives to answer questions from constituents in her 43rd congressional district in South Los Angeles. Waters, the ranking member of the House Financial Services Committee, said she invited all the top banks to attend but was turned down by Bank of America, Citigroup, JPMorgan Chase and U.S. Bancorp.
Next week, the Senate Banking Committee plans to hold an annual oversight hearing with executives from the nation’s top banks. Waters said she was disappointed that Republicans in the House would not hold a similar hearing. Her town hall, she said, would try to fill in the gap.
When Jeffrey Martinez, executive vice president and head of branch banking at PNC Bank, described how the Pittsburgh bank was upholding its pledge to invest an eye-popping $88 billion in local communities over four years as part of its 2020 acquisition of BBVA, Waters asked specifically if PNC was coming to her neighborhood.
“When are you going to open up a branch in my district?” Waters said. “We have a problem with branch banking not being available to us in all of our communities in the way they should be. We call them banking deserts.”
Martinez responded: “That’s a great question, it’s an important one and one of the things we’ve slated even though we’re new to California.”
“We would like to help you find a location,” Waters said, to thunderous applause and laughter from the crowd of about 300. “I’m so looking forward to establishing” a branch here, she added.
Waters then described how City National Bank in Los Angeles had agreed in January to pay $31 million to settle redlining allegations brought by the Justice Department. As part of the agreement, City National has promised to open one branch in a majority-Black and Hispanic neighborhood in L.A. County.
“Can you discuss where you might be opening the branch?” Waters asked. “Where are you with all of this?”
David Cameron, City National’s executive vice president of personal and business banking responded, “That is a great question,” drawing laughter from the audience.
“I don’t have any announcement on where we’re going to put that branch.”
To which Waters replied: “Oh, we’ll help you,” to further applause from the audience.
City National plans “to go above and beyond,” the agreement to invest at least $29.5 million in a loan subsidy fund for residents of majority-Black and Hispanic neighborhoods in Los Angeles County, Cameron said. The bank has hired more than 20 loan officers to support the initiative to provide grants of up to $15,000 each to first-time homebuyers.
Waters also questioned why City National did not have a mortgage loan officer at a local branch on Crenshaw Boulevard in Los Angeles.
“You’ve done well at that branch, are you going to expand that branch and put a loan officer there?” Waters said. “Can you do these things?”
Waters skillfully thanked each of the bankers for showing up to the town hall meeting, while also hitting them hard on consent orders.
“I really thank you for coming today. I know that you know we have a lot of questions for you, based on the fines that you received and all of that,” she told Cameron, and then asked the audience to give him a round of applause.
She also asked Colleen Canny, Wells Fargo’s executive vice president and national head of branch banking, why the San Francisco bank has been closing so many branches, which Waters estimated at 2,000 branch closings over many years. She cited the Wells Fargo 2016 fake accounts scandal that led the Federal Reserve to impose an asset cap on the bank.
“First tell us, why did you close those branches?” Waters asked.
Canny said that customer transactions through branches have fallen 50% over the past three years as more banking is done online, through mobile apps or ATMs.
“We still think branches are important and we continue to look at our branch footprint to ensure we have the proper coverage,” Canny said.
Waters lamented that banks are closing branches in inner cities where seniors who may not necessarily use a cell phone to bank still prefer to go to a branch in person.
“I want to tell you something that is a cultural discovery for everybody,” Waters told the bankers and the audience. “We like to go to a teller as we put our money across the counter. We like this kind of interaction with the people that we do service with and this is the kind of cultural consideration that the bank should take into account.”
At the town hall, which lasted for four hours, constituents asked a wide range of questions including why there were long lines at their local branches and why they were not able to get small business loans or even speak directly to the same banker on each visit. CFPB Director Rohit Chopra, who spoke after the bankers, answered a range of questions on reverse mortgages, digital redlining and junk fees.
Waters also lambasted the banking industry generally for Republican-led efforts in the House, which voted on Friday to nullify the Consumer Financial Protection Bureau’s small-business data-collection rule. Despite the bill’s passage in a 221-202 vote, President Joe Biden has vowed to veto the bill and uphold the rule.
The head organizer for Rise Economy, the consumer group formerly known as the California Community Reinvestment Coalition, asked the bankers generally why they did not support the Consumer Financial Protection Bureau.
“Your industry trade groups are attacking the CFPB, they’re attacking fundamental consumer protections … and very basic data on small business lending that we fought hard for for nearly 10 years,” said Jyotswaroop Kaur Bawa, chief of organizing and campaigns at Rise Economy. “We want you to tell us specifically how many Black and Hispanic-owned businesses you make loans to and at what rate—that’s what the fight is about.”
The small-business lending rule is expected to be used by the CFPB to identify discrimination, though the bureau exempted more than 2,000 community banks and small businesses from the rule. The coalition sued the CFPB in 2019 for taking so long to issue the rule, which Dodd-Frank’s Section 1071 mandated.
The 1071 rule was about wealth-building and closing the wealth gap, Waters said.
“The Senate Republicans put up a great fight against getting the rule, the data that we needed to determine why we can’t get small business loans — they fought us very hard, and they said they represented the banks,” Waters said. “Republicans won on trying to kill that rule that would give us information that would show that Blacks, Latinos, women and LGBTQ would not be getting small business [loans.]”
Water did commend one bank: First Citizens BancShares, which acquired the failed Silicon Valley Bank and last month announced an agreement to invest more than $6.5 billion in California and Massachusetts communities through an updated community benefits plan. The agreement, Waters said, paved the way for a branch to be opened in Watts.
Waters characteristically played to the audience by rattling off the various programs created after the pandemic including loans that banks delivered via the Paycheck Protection Program.
“You’re wondering, if there’s all this money around, why haven’t we been able to get some of it,” Waters said.
A new report from Inside Mortgage Finance revealed that San Francisco-based bank and mortgage lender Wells Fargo snagged 33.9% of the mortgage market in the first quarter of 2012.
It was the biggest residential mortgage market share in recorded history, and comes thanks to a huge drop-off by its closest competitor, Bank of America, whose appetite for mortgages soured in recent months.
BofA stopped both reverse mortgage lending and accepting loan applications from correspondent lenders, which shrunk their presence in a hurry.
Instead of turning out to be the next Countrywide, they shifted their focus toward retail customers instead, focusing on quality over quantity it seems.
But with a waiting list of 90 days to refinance, Bank of America may be focused on other things, such as loss mitigation on all their existing mortgages.
Meanwhile, Wells’ market share increased from 30.1% in the fourth quarter of 2011 to 33.9% from the January to March period, which meant they originated roughly $130.5 billion of the $385 billion total.
No One Else Even Close
Amazingly, no other lender came even close to Wells Fargo. In fact, its closest competitor, Chase, claimed just 10.6% of the mortgage market during the first quarter.
And it dropped off quickly from there, with U.S. Bancorp coming in third with a paltry 5.2% of the market, followed by Bank of America with just 4.2%.
Even more astonishing, Wells Fargo’s market share bested the next seven largest mortgage lenders combined, and its first quarter numbers put it on track to crush last year’s already solid numbers.
The company originated $357 billion in mortgages last year, and if the first quarter is any indication, the numbers should reach somewhere close to $500 billion this year.
Wells also had an unclosed loan pipeline of $79 billion at the end of the first quarter, meaning many more mortgages are set to fund.
Is This Good or Bad for Homeowners?
I would say it’s a little of column “A,” and a little of column “B.”
Wells Fargo is probably the most conservative mortgage lender of its size out there, if not of any size.
Even during the crazy years, which led to the mortgage crisis, they stayed away from low credit score, high loan-to-value lending and no money down mortgages.
And they actually underwrote files, instead of approving everything under the sun.
So it’s probably a good thing that they’re leading the market as opposed to some other company.
Ideally, it means fewer mortgages will go bad, and that could help spur a housing market comeback.
At the same time, with Wells claiming more than one in every three mortgages, it means homeowners may not be shopping around as much as they should be.
As I always say, don’t be the guy or gal that gets a single mortgage rate quote. It’s one of the biggest mistakes you can make.
Their immense market share also means that if anything goes wrong, Wells could put that “too big to fail” mantra to the test.
If home prices slip and the markets crash, Wells would be in a bad position holding all those loans.
DUBLIN–(BUSINESS WIRE)–The “United States Home Loan Market Competition Forecast & Opportunities, 2028” report has been added to ResearchAndMarkets.com’s offering.
The United States home loan market is expected to experience significant growth to 2028
The United States home loan market is undergoing a transformation, driven by several key factors that are reshaping the lending landscape. These factors include a growing pool of potential homebuyers, the automation of loan processes, and the pervasive trend of digitalization.
Home loans, typically extended by financial institutions, serve as the financial backbone for individuals aspiring to acquire residential properties. These properties can range from completed, move-in-ready homes to those still in construction phases. Banks and non-banking financial companies (NBFCs) both offer home loans, often determining interest rates based on the borrower’s creditworthiness. These loans commonly come with lengthy repayment periods of up to 30 years, structured through equated monthly installments (EMIs).
In recent years, the demand for mortgages in the United States has experienced a notable upswing, primarily catalyzed by heightened home purchasing activities during the COVID-19 pandemic. Consequently, this surge has generated substantial demand within the purchase market, attracting banks, nonbank lenders, and investors operating in the mortgage sector.
Furthermore, despite the economic repercussions of the pandemic, the desire for homeownership in the United States remains unwavering. The broader economic expansion and the growth in the number of households have contributed to the increasing rate of homeownership.
Notably, 2020 witnessed a 2.6% annual uptick in homeownership, welcoming over 2.1 million new homeowners into the fold. Geographically, the Midwest and South regions of the United States exhibit higher homeownership rates compared to the Northeast and West. With this surge in homeownership, a concurrent rise in the demand for home loans is anticipated.
Automation has emerged as a pivotal force in streamlining the home loan process, substantially elevating the overall customer experience. The mortgage industry has eagerly embraced technology to expedite and simplify mortgage applications, thereby widening access to home financing and home-buying services.
A cornerstone of this technological revolution is digitalization, with the U.S. digital payments sector expanding at a commendable rate of 23%. These technological strides are designed to expedite mortgage applications, curtail expenses, and enhance the overall client journey. Consequently, the escalating wave of digitalization is poised to further propel the United States home loan market.
The ascendancy of nonbank lenders has introduced a seismic shift in the market landscape. Nonbank lenders have emerged as a credible alternative, especially for borrowers seeking refinancing options. Over the past decade, nonbank mortgage lenders have not only gained market share but have also eclipsed traditional banks in prominence.
In 2020, seven out of the top ten mortgage lenders in the United States hailed from the nonbank sector. These lenders have strategically invested in diverse technologies to fortify their operations, spanning from platform modernization to automated compliance solutions. Consequently, the continued ascent of nonbank lenders is set to stoke the growth engine of the home loan market.
In summation, the United States home loan market stands at the cusp of substantial growth, underpinned by a confluence of factors, including surging demand, automation enhancements, and the burgeoning influence of nonbank lenders.
Market Dynamics
Market Trends & Developments
Increasing number of fintech companies
Rising focus towards loan sector by Bank and NBFCs
Increasing construction activities
Rapid urbanization
Attractive marketing strategies
Drivers
Increasing home ownership
Automation in loan process
Growth of nonbank lenders
Challenges
Security concerns
Surging competition
Competitive Landscape
Bank of America Corporation
JPMorgan Chase & Co.
Citigroup, Inc.
Wells Fargo & Co.
U.S. Bancorp
PNC Financial Services Group, Inc.
American Express Company
Ally Financial Inc.
Truist Financial Corporation
Goldman Sachs & Co. LLC.
Voice of Customer Analysis
Sample Size Determination
Respondent Demographics
By Gender
By Age
By Occupation
Brand Awareness
Factors Influencing Loan Availing Decision
Sources of Information
Challenges Faced
Impact of COVID-19 on United States Home Loan Market
Impact Assessment Model
Key Segments Impacted
Key Regions Impacted
Report Scope
United States Home Loan Market, by Type:
Home Purchase
Refinance
Home Improvement
Construction
Others
United States Home Loan Market, by End User:
Employed Individuals
Professionals
Students
Entrepreneurs
Others
United States Home Loan Market, by Tenure Period:
Less than 5 years
6-10 years
11-24 years
25-30 years
United States Home Loan Market, by Region:
South
Midwest
Northeast
West
For more information about this report visit https://www.researchandmarkets.com/r/culceq
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
DUBLIN, Oct. 4, 2023 /PRNewswire/ — The “United States Home Loan Market Competition Forecast & Opportunities, 2028” report has been added to ResearchAndMarkets.com’s offering.
The United States home loan market is expected to experience significant growth to 2028
The United States home loan market is undergoing a transformation, driven by several key factors that are reshaping the lending landscape. These factors include a growing pool of potential homebuyers, the automation of loan processes, and the pervasive trend of digitalization.
Home loans, typically extended by financial institutions, serve as the financial backbone for individuals aspiring to acquire residential properties. These properties can range from completed, move-in-ready homes to those still in construction phases. Banks and non-banking financial companies (NBFCs) both offer home loans, often determining interest rates based on the borrower’s creditworthiness. These loans commonly come with lengthy repayment periods of up to 30 years, structured through equated monthly installments (EMIs).
In recent years, the demand for mortgages in the United States has experienced a notable upswing, primarily catalyzed by heightened home purchasing activities during the COVID-19 pandemic. Consequently, this surge has generated substantial demand within the purchase market, attracting banks, nonbank lenders, and investors operating in the mortgage sector.
Furthermore, despite the economic repercussions of the pandemic, the desire for homeownership in the United States remains unwavering. The broader economic expansion and the growth in the number of households have contributed to the increasing rate of homeownership.
Notably, 2020 witnessed a 2.6% annual uptick in homeownership, welcoming over 2.1 million new homeowners into the fold. Geographically, the Midwest and South regions of the United States exhibit higher homeownership rates compared to the Northeast and West. With this surge in homeownership, a concurrent rise in the demand for home loans is anticipated.
Automation has emerged as a pivotal force in streamlining the home loan process, substantially elevating the overall customer experience. The mortgage industry has eagerly embraced technology to expedite and simplify mortgage applications, thereby widening access to home financing and home-buying services.
A cornerstone of this technological revolution is digitalization, with the U.S. digital payments sector expanding at a commendable rate of 23%. These technological strides are designed to expedite mortgage applications, curtail expenses, and enhance the overall client journey. Consequently, the escalating wave of digitalization is poised to further propel the United States home loan market.
The ascendancy of nonbank lenders has introduced a seismic shift in the market landscape. Nonbank lenders have emerged as a credible alternative, especially for borrowers seeking refinancing options. Over the past decade, nonbank mortgage lenders have not only gained market share but have also eclipsed traditional banks in prominence.
In 2020, seven out of the top ten mortgage lenders in the United States hailed from the nonbank sector. These lenders have strategically invested in diverse technologies to fortify their operations, spanning from platform modernization to automated compliance solutions. Consequently, the continued ascent of nonbank lenders is set to stoke the growth engine of the home loan market.
In summation, the United States home loan market stands at the cusp of substantial growth, underpinned by a confluence of factors, including surging demand, automation enhancements, and the burgeoning influence of nonbank lenders.
Market Dynamics
Market Trends & Developments
Increasing number of fintech companies
Rising focus towards loan sector by Bank and NBFCs
Increasing construction activities
Rapid urbanization
Attractive marketing strategies
Drivers
Increasing home ownership
Automation in loan process
Growth of nonbank lenders
Challenges
Security concerns
Surging competition
Competitive Landscape
Bank of America Corporation
JPMorgan Chase & Co.
Citigroup, Inc.
Wells Fargo & Co.
U.S. Bancorp
PNC Financial Services Group, Inc.
American Express Company
Ally Financial Inc.
Truist Financial Corporation
Goldman Sachs & Co. LLC.
Voice of Customer Analysis
Sample Size Determination
Respondent Demographics
By Gender
By Age
By Occupation
Brand Awareness
Factors Influencing Loan Availing Decision
Sources of Information
Challenges Faced
Impact of COVID-19 on United States Home Loan Market
Impact Assessment Model
Key Segments Impacted
Key Regions Impacted
Report Scope
United States Home Loan Market, by Type:
Home Purchase
Refinance
Home Improvement
Construction
Others
United States Home Loan Market, by End User:
Employed Individuals
Professionals
Students
Entrepreneurs
Others
United States Home Loan Market, by Tenure Period:
Less than 5 years
6-10 years
11-24 years
25-30 years
United States Home Loan Market, by Region:
South
Midwest
Northeast
West
For more information about this report visit https://www.researchandmarkets.com/r/efxqax
About ResearchAndMarkets.com ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
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U.S. Bancorp in late May finished installing updated signage on the West Coast branches it inherited from Union Bank, but executives say their work to take full advantage of the acquisition is still under construction.
Improved cost savings and opportunities to meaningfully boost revenue should be evident in the third quarter, the first full one since U.S. Bank’s conversion of Union Bank, management said when reporting second-quarter results Wednesday.
“We are well positioned as a national bank with greater scale,” said U.S. Bank CEO Andy Cecere.
Revenue and net interest income were lower than expected in the second quarter, but strong fee income and lower expenses helped improve the Minneapolis bank’s bottom line. The quarter also reflected one-time conversion items.
“This was a noisy quarter, which reflected mixed trends,” David Rochester, director of research at Compass Point Research, wrote in a note.
The $680 billion-asset bank completed its conversion of the Union Bank system in the second quarter, marking one of the final steps in the $8 billion acquisition that yielded hundreds of new branches and millions of new customers. U.S. Bank said it would use the deal, in part, to expand its presence in key California markets including Los Angeles, San Diego and San Francisco, where Union Bank had a strong foothold.
U.S. Bank said it has seen more new customers than expected engage with the bank, making use of its app and other online banking services. The bank has boosted its advertising budget to get on the radar of new customers and potential new customers in target markets, executives said.
The deal should deliver as much as $900 million in cost savings delivered through, plus a breadth of opportunities for revenue growth, U.S. Bank said.
In the second quarter, U.S. Bank faced similar challenges to those of banks across the industry, whose net interest income generally shrank amid greater competition in deposit pricing. U.S. Bank said it expects lower net interest income in the third quarter.
U.S. Bank set aside $821 million for credit losses in the second quarter, up from $427 million in the first quarter. Large and small banks alike put aside substantial amounts of reserves early on in the pandemic in case the economic fallout prevented consumers and businesses from making payments on their bank loans.
“Credit quality metrics remained strong versus pre-pandemic levels but are normalizing as expected,” Cecere said on the company’s earnings call Wednesday. “This quarter, we strengthened our balance sheet by increasing the loan-loss reserve, reflective of our prudent approach to credit risk management.”
The bank cited growing credit card balances and continued economic uncertainty as reasons for boosting reserves. Average credit card loans increased 14.5% in the second quarter from the same quarter last year, while average total loans grew 19.9% in the second quarter.
“Consumers are now starting to rely more on credit card debt as a way of paying for their lifestyles,” said U.S. Bank Chief Financial Officer Terry Dolan.
Banks have likely seen the final positive impacts of higher interest rates, Dolan said. U.S. Bank’s noninterest income growth of 7% in the second quarter, driven by higher core fee income, exceeded analysts’ expectations.
U.S. Bank reported a profit of $1.8 billion in the second quarter, in line with expectations. Revenue totaled $7.2 billion, slightly above forecasts.
The bank said its common equity Tier 1 capital ratio increased to 9.1% in the second quarter, up from 8.5% in the first quarter. Capital ratios have been under the spotlight across the industry this year, and specifically at U.S. Bank. The bank’s capital level faced scrutiny this spring, when a research report argued the bank wasn’t holding enough capital for a bank of its size.
Minneapolis-based U.S. Bank, the fourth-largest U.S. mortgage lender, is laying off staffers in its mortgage division this week, a spokesperson confirmed on Tuesday.
The announcement follows a decline in its mortgage originations in the first quarter of 2023 – the second-quarter earnings will be released on Wednesday morning.
The current jobs cut also comes amid rumors that depositary lenders would see changes to their residential mortgage capital requirements under the Basel III regulations.
“At U.S. Bank, we make decisions that position us well for today’s market and in the future,” a spokesperson told HousingWire. “As a result, we have made the difficult decision to reduce resources in certain roles aligned to areas of the business that continue to slow – while investing in others where we see growth potential.”
The spokesperson did not provide further details, such as the number of employees affected. Inside Mortgage Finance first reported news of the layoffs.
U.S. Bank, owned by U.S. Bancorp, was number four among mortgage originators in the U.S. in the first quarter of 2023, according to IMF estimates.
However, mortgage volume has been in free fall at the bank amid surging rates. The bank’s total mortgage origination volume reached $9.6 billion from January to March, down 41.7% year over year.
The bank tries to maintain a balanced portfolio between retail and correspondent lending. From January to March, the bank originated a $4.47 billion volume in the retail channel and $5.8 billion through the correspondent channel, per IMF estimates.
U.S. Bank would be affected by new residential mortgage capital requirements under the Basel III rules, which are expected to be released on July 27, according to a Bloomberg report. Under the latest draft proposal, risk weights of 40% to 90% would be assigned for large banks, depending on the loan-to-value ratio. The current rule sets a 50% risk weight on most first-lien residential mortgages.
The bank announced in December 2022 that it would close the wholesale mortgage businesses it inherited in the acquisition of California-based MUFG Union Bank.
U.S. Bank closed the acquisition of MUFG’s core regional banking franchise from Japan-based Mitsubishi UFJ Financial Group at the beginning of December 2022, adding 1 million consumers and about 190,000 small business customers on the West Coast.
The spokesperson said the layoffs are “not related to or specific to Union Bank.”
The Federal Home Loan Bank of San Francisco has named a longtime mortgage banker, Jennifer Schachterle, as senior vice president of sales and business development.
She will oversee the bank’s relationships with its nearly 330 member financial institutions in three states — Arizona, California and Nevada.
Schachterle had been sales director of warehouse lending at Western Alliance Bank in Phoenix. Before that, she had worked at Dallas-based Comerica Bank as a senior vice president of warehouse lending. Schachterle also had been a director of counterparty risk at PennyMac Loan Services.
The San Francisco Home Loan Bank declined to say whom Schachterle replaced, citing privacy concerns.
Both the $71 billion-asset Western Alliance and $92 billion-asset Comerica are big borrowers and shareholders of the Home Loan Bank System.
“Ever more important today are regional banks and community-based lending institutions that are at a critical inflection point in today’s financial environment,” Tony Wong, executive vice president and chief banking officer at the San Francisco Home Loan Bank, said in a press release.
The recent bank liquidity crisis has hit the San Francisco Home Loan Bank hard with the sale in May of San Francisco-based First Republic Bank to JPMorgan Chase, the failure in March of Silicon Valley Bank and the self-liquidation of Silvergate Bank of La Jolla, Calif.
Membership in the San Francisco Home Loan Bank also has declined due to acquisitions. BMO Financial Group recently finalized its $16.3 billion purchase of Bank of the West, which had been based in San Francisco. Regulators also recently approved U.S. Bancorp’s purchase of MUFG Union Bank of California.
In spite of bank failures over the past three decades, most banks and credit unions in the U.S. remain secure places to store your money. One of the benefits credit unions and banks offer is easy access to your money.
Account holders can withdraw money quickly from a checking account at a bank branch or with a debit card, often with no fees. They can also find easy access and higher interest rates with a savings or money market account.
Keeping your money in a bank or credit union is considered safe because your money is insured up by the FDIC or NCUA, respectively.
In the event of a bank failure, which occurred more than 100 times during the financial crisis that spanned 2008 to 2012, some of your money is still protected by the federal government. Money in all U.S. banks, including the nation’s five biggest banks, is FDIC insured up to $250,000, per person, per account.
Fortunately, bank failures are less common today. The FDIC reported that the last time an FDIC insured bank failure occurred was October 2020. The FDIC paid out an estimated $18.3 million to account holders.
Credit unions carry similar protection in the form of insurance through the National Credit Union Administration.
How to Choose a Safe Bank Account
You already know that if a bank fails, the federal government will protect a large portion of your funds through FDIC insurance. You can spread your money between multiple checking and savings accounts so that no account holds more than the maximum $250,000 that is FDIC insured.
When you’re looking for the safest bank to open a new bank account, you want to compare other factors, including the bank’s total assets, security measures, fraud liability policies, history, and more.
What We Mean By a Safe Bank
You can see from this list of safest banks in the U.S. that bank security doesn’t always depend on the bank’s size. You’ll find financial institutions ranging from smaller banks to the largest banks on this list.
Bank safety means that the bank uses state-of-the-art security measures to protect your money, including:
Data encryption for their own systems and for online banking
Secure online bill pay
Two-factor authentication
Alerts for unauthorized transactions
Guarantee against unauthorized access
Card locking by app or phone
Direct deposit
We’ll look at these and other safety measures. Then, we’ll explore what makes some of the biggest banks in the U.S. some of the most secure banks and which other banks are keeping pace. Read on to find out: What is the safest bank in the U.S.?
Safety Measures Banks Use
Banks use a combination of training and state-of-the-art technology to keep account holder’s money secure. This includes training bank employees in security best practices and how to respond promptly to fraud alerts. It also includes bank policies, such as $0 fraud liability.
Finally, technology that includes SSL encryption and two-factor authentication can also help to keep your bank account safe during online banking.
12 Safest Banks in the U.S.
The Global Finance “World’s Safest Banks” list highlighted 50 safe banks. Of those, only a handful were based in the U.S. Here are 12 of the safest banks for U.S. customers, based on the Global Finance list.
1. JPMorgan Chase
With a market capitalization of $413.7 billion and a balance sheet total of $3.31 trillion, JPMorgan Chase is the largest bank in the U.S. based on assets, according to InsiderIntelligence.com.
During the financial crisis of 2008, Chase was one of the banks deemed “too big to fail.” Certainly, an account holder can feel secure that their most is protected even if the bank faces financial hardship.
But is Chase also ahead of the curve when it comes to security? Chase uses multiple authentication checks when you try to sign in to your online account.
The bank monitors for unusual activity and may send a text message or email for you to authorize a transaction outside your home state or for an exceptionally high amount.
The bank’s website uses 128-bit data encryption to secure your personal information. Finally, bank employees are trained in fraud prevention, fraud detection, and ethics.
Everyday security features
128-bit encryption
Multifactor authentication
Guarantee against unauthorized access
EMV chip cards
Card locking through the app or automated phone system
24/7 fraud protection by phone
2. U.S. Bank
With assets totaling nearly $675 billion, U.S. Bancorp, parent company of U.S. Bank, is the fifth-largest bank in the U.S. The bank website and mobile app offer SSL encryption, one-time card numbers for online purchases, and enhanced security features for commercial banking customers.
The Bank Smartly checking account for consumers allow you to set up account alerts and reminders through the mobile app. You can make contactless payments through the app, which gives you added protection against point-of-sale fraud and debit card skimmers, which can steal your account information if you pay using the magnetic stripe on your card.
U.S. Bank also offers a “Safe Debit Card,” designed for consumers ages 14+ who want the convenience of a checking account and debit card without the ability to write checks. The Safe Debit Card provides free access to the user’s VantageScore 3.0 credit score through TransUnion, a credit score simulator, online bill pay, mobile banking, and no overdraft fees.
Everyday security features
$0 liability fraud protection
Multifactor authentication
Virtual card numbers
SSL encryption
EMV chip cards
3. TD Bank
TD Bank, or Toronto-Dominion, is not just one of the largest banks in the U.S. with a worldwide presence, it is also one of the safest. Its branches are known for personalized customer service. But the bank is also known for its online presence. TD Bank recently partnered with Amount, a fintech provider, to enhance security with a suite of state-of-the-art fraud detection and account verification services.
The bank has 24/7 fraud monitoring and text alerts for activity. Plus, if you lose your debit card, you can replace it immediately at a nearby branch. TD Bank also offers features that enhance your security, including Bill Pay and Mobile Deposit, which reduces the handling of paper checks that create a risk of theft and fraud.
Everyday security
Card locking
24/7 fraud monitoring
Personalized service
Mobile deposits
Enhanced security and fraud detection
4. Citibank
Citigroup, which owns Citibank and other Citi properties, is the third-largest bank in the U.S. right now behind Chase and Bank of America. Like Chase, Citi is considered one of the financial institutions deemed “too big to fail.” The bank’s market cap is $97.06 billion.
Citi is considered one of the safest banks due to its enhanced security features for its bank accounts and credit cards.
Citi was one of the first banks to offer a virtual credit card number. This one-time use card number allows cardholders to shop safely online without having to give out your bank account information or card number.
You can sign on to the Citi mobile using a QR code and Face ID®, Touch ID®, Biometrics or 6-Digit PIN, which is more secure than using a username and password. As with Chase, you will receive text alerts for suspicious or unusual activity.
Do not confuse Citi with CIT Bank. In spite of the similarity in their names, CIT is a division of First Citizens Bank and not affiliated in any way with Citigroup.
Everyday security features
EMV chip cards
$0 liability fraud protection
Biometric security
256-bit SSL encryption
Multifactor authentication
Remote debit card locking by phone or through the app
5. Charles Schwab Bank
Charles Schwab Bank is known primarily for its investment divisions. But the bank achieved the highest ratings for customer satisfaction with checking accounts by J.D. Power. Most of the world’s safe banks offer a high level of customer service, which can put a customer’s mind at ease.
Schwab Bank has many of the features high earners look for in a bank, including the ability to easily transfer money from your Schwab One brokerage account to your fee-free checking account.
Schwab’s Mobile app and banking systems use the highest levels of data encryption, as you might expect. Set notifications regarding transactions and fraud alerts through the mobile app. Lock and unlock your debit card at will. You can also set travel notices so that you don’t get a fraud alert in error if you’re making large purchases off your usual beaten path. The bank’s personalized service stands out, with 24/7 service via phone or chat, and branches nationwide.
Everyday security
Card locking through the app
Travel notices
Contactless payments
EMV chip card
Data encryption
6. M&T Bank Corporation
With assets totaling more than $200 billion, M&T Bank may not be as large as Citi or Chase, but its high level of customer service and security puts it on the list of safest banks. M&T Bank has earned multiple awards for small business excellence, along with the highest ratings issued by the Federal Reserve Bank of NY for Community Reinvestment Act performance.
M&T’s mobile app allows you to receive instant alerts about purchases via email, text, or in the app. This way, you can keep track of fraud along with your own spending habits. The app offers fingerprint or facial recognition on supported devices for enhanced security. You can easily report a lost or stolen card in the app or lock your card if you’ve misplaced it.
M&T delivers the same security larger banks offer, with the personalized service of a community bank. With 700 branches across 15 states nationwide plus a network of 1,800 ATMs, M&T Bank might be a convenient and safe choice for your money.
Everyday security features
SSL encryption
Debit card locking
Multifactor authentication
Identity protection services available
24/7 fraud protection
7. Wells Fargo
With $1.71 trillion in assets, Wells Fargo is currently the fourth-largest bank in the U.S. It offers savings and checking accounts, credit cards, loans, and more to personal and business customers.
The bank has more than 4,700 locations plus 12,000 ATMs in its network, making it convenient for customers across the U.S. The Wells Fargo mobile app makes online banking easy and secure, with access to your FICO score, fraud alerts, and multifactor authentication.
The website and app operate with SSL encryption. You can log in via face or fingerprint ID if you prefer. You can set alerts any time someone signs onto your account or whenever a purchase is made.
Furthermore, you can also connect a digital wallet to your account, which may be safer than using debit cards. If you think you lost your card, you can turn it off and turn it on again through the app if you find it.
Wells Fargo makes it easy to report fraud, unauthorized activity, or suspicious activity quickly and easily through the bank’s helpline, even if you are traveling outside the U.S.
Everyday security features
$0 fraud liability
·Guarantee against unauthorized activity
SSL encryption
Low balance alerts
Card locking
8. PNC Bank
PNC Financial Services, owner of PNC Bank, has assets of $557 billion as of December 2022, making it one of the largest banks in the U.S. Like the other big banks, PNC is on the cutting edge of security and fraud protection for its customers.
The bank offers a Virtual Wallet that provides three accounts for checking and savings, along with direct deposit capabilities, overdraft protection, and a “Low Cash Mode,” that alerts you when your balance drops below a specific amount.
PNC also offers traditional banking solutions at its 2,629 branches worldwide. Through the bank’s growing number of Solution Centers, as well as mobile branches in underserved communities, PNC combines the security and convenience of an online bank with a traditional bank.
Everyday Security
Virtual wallet
Debit card blocking
SSL encryption
Fraud alerts
$0 fraud liability
9. Capital One
Capital One sits in the country’s list of top 10 banks and, thanks to enhanced security measures, is considered one of the safest banks in the U.S., too. Capital One holds assets worth $391.81 billion.
Capital One’s credit cards are consistently ranked on top list for rewards credit cards for travelers, and their security measures and easy to use app works for both credit and bank account customers.
You can set alerts by text or email each time you use your card. The app uses multifactor authentication and Capital One has $0 fraud liability for its accounts. You will not be held responsible for unauthorized activity. The bank issues EMV chip cards for added security at point-of-sale transactions.
Everyday Security
Card locking through the app or by phone
Account monitoring
SSL encryption
Multifactor authentication
Activity alerts
Credit monitoring
10. AgriBank
AgriBank made the Global Finance list of world’s safest banks, coming in at number 34. Part of the Farm Credit System, the bank has a net income of $576.1 million and $142.1 billion in total assets.
AgriBank has delivered reliable and consistent service to the agricultural industry for more than 100 years. As an agricultural credit bank, AgriBank is a wholesale only lender to farmers, ranchers, and rural businesses and homeowners. It pays dividends to its members.
It’s important to note that AgriBank services only agricultural customers in 15 states in the southern and Midwest U.S., from Arkansas to Minnesota. AgriBank is not FDIC insured. But, it is backed by the Farm Credit System Insurance Corporation to protect its members.
Everyday security features
Ethics hotline through EthicsPoint
SSL secured website
Two-factor authentication
Data encryption
Backed by the FCSIC
11. CoBank
CoBank is the second FCS member on our list of safest banks. Like AgriBank, it is protected by the FCSIC and offers wholesale loans to rural customers in the agricultural, power, water, and telecommunications industries.
Serving customers in all 50 states, it is one of the largest private providers of credit to the U.S. rural economy, according to its website. Dedicated to preventing fraud, the financial institution has a podcast, Fraud Wise, that provides tips to help its rural customer prevent and detect fraud.
Customers can report fraud easily through phone or email. Because of its size and personalized service, CoBank is rated by Global Finance as one of the safe banks in the U.S.
Everyday security features
Code of ethics
Fraud prevention
SSL data encryption
Guarantee for unauthorized transactions
12. AgFirst
AgFirst Farm Credit Bank is another member of the Farm Credit System that runs as a cooperative, where an account holder is considered a partner. AgFirst takes steps to maintain the safety and security of its members financial data and money. The organization operates in alignment with national cybersecurity standards and applies industry best practices to keep its systems and customers secure.
AgFirst offers loan servicing, loan origination, and many other services to the agricultural community. Headquartered in Columbia, SC, AgFirst has locations across the south and Midwest U.S.
Everyday security features
SSL encryption
Adheres to national cybersecurity standards
Personalized customer service
Backed by FCSIC
Bank vs. Credit Union
In your search for the best bank, you might also consider a credit union. They often offer lower fees, higher interest rates, and more personalized service. The ability to build relationships with employees at your local branch might make them feel like a safer choice.
See also: Best Credit Unions Anyone Can Join
What makes credit unions safe?
The money in a credit union is insured by the National Credit Union Administration. Just as with FDIC insured bank accounts, funds in credit unions are insured for up to $250,000 per person, per account if the credit union fails.
Credit unions often offer local, more personalized service than a national bank, which makes them a desirable financial institution for some people. You may find zero fee checking accounts more frequently at credit unions, higher interest rates, and better loan terms.
The same technology and customer service used in the safest banks also keeps your money safe in a credit union. Look for SSL encryption and two-factor authentication, easy ways to report fraud, and a guarantee against unauthorized access to your account.
What makes the safest banks in the U.S. secure?
A variety of security measures, along with FDIC insurance, keeps the money in your bank secure against fraud and bank failures. Some of the factors that can enhance a bank’s security include its online banking security, the availability of EMV chip cards, $0 fraud liability,
What happens if a bank fails?
Bank failures happened with alarming frequency during the recession of 2008. Experian reports that there were 561 bank failures between 2001 and 2022, when the U.S. faced more than one financial crisis.
Fortunately, these banks were FDIC insured. When a bank fails, the FDIC sells the remainder of the bank’s assets to a more stable bank. Sometimes, the FDIC will cover the bank deposits itself.
Are online banks safe?
Online banks today use the same security measures as a brick-and-mortar financial institution. Often, an online bank offers a fee-free checking account and higher interest rates for an online savings account. If you choose an online bank, make sure it is FDIC insured.
What appears to be an online bank may not be a national FDIC insured bank, but another type of financial institution. If that’s the case, make sure it is backed by an FDIC insured national bank.
Some of the largest banks call America home. These banks are backed by the Federal Deposit Insurance Corporation (FDIC) and offer a variety of products and services. If you prefer a big bank over regional banks or a smaller, community bank, you’ve come to the right place.
Below we’ve compiled a list of the largest banks in the U.S. Once you read through it and perform some of your own research, you should be able to choose a bank or two that meets your needs.
How to Measure Bank Size
First, let’s discuss how to measure the size of a bank. We can do so by looking at the number of customers, number of branches, and number of employees.
But perhaps the best way to measure bank size is by focusing on the total assets under management. This figure shows the actual size of a bank, regardless of how many employees, branches, or ATMs it has.
In our list of the largest banks in the U.S. below, you’ll find that we include each bank’s total assets so you can get a better idea of just how large it is.
Bank Services
We also thought it would be a great idea to briefly discuss how banks work and what they can do for you as a customer. Banks have been around since at least the 14th century. They offer a safe place for individuals and business owners to park their cash and work on various financial goals.
While every bank has their own unique lineup of services, most of them provide checking accounts, savings accounts, and loan services. Some go the extra mile with credit cards, wealth management services, and other conveniences.
Types of Banks
In addition, it’s wise to go over the types of banks at your disposal. The most common types of banks you’ll find include:
Retail banks: Retail banks serve the public and typically have branches and main offices. They provide a wide range of services, like checking and savings accounts, mortgage and loan services, auto financing, CDs, and individual retirement accounts (IRAs). Retail banks may be regional banks operating in various states.
Commercial banks: Also known as corporate banks, commercial banks gear their offerings to small business owners and larger corporate entities. In addition to the usual banking services, they may offer cash management, employer services, and commercial real estate services.
Investment banks: Investment banks are designed for corporate clients with complex needs, like mergers and acquisitions. These clients are large corporations, governments, and hedge funds.
Central banks: Central banks are not available to the public. Instead, they’re an independent institution that oversees the money supply and monetary policy in the country. The Federal Reserve Bank is the central bank in the U.S.
Banks vs. Credit Unions
While banks are quite popular, some customers use credit unions instead. While credit unions also offer banking services, like checking and savings accounts, they’re not for profit institutions that are managed by their customers or members.
Compared to banks, credit unions tend to deliver more personalized service. But they also provide fewer services and have fewer branches and ATMs. A credit union can make sense, depending on your unique goals.
20 Biggest Banks In The U.S.
Here’s an overview of the largest banks in the U.S.
1. JPMorgan Chase & Co.
Total Assets: $3.381 Trillion
Headquarters: New York City, New York
If you focus on consolidated assets, JPMorgan Chase earns the spot as the largest bank in the U.S. This investment bank is also a holding company for subsidiaries, including Chase Bank. Chase, which is J.P. Morgan’s consumer banking division, has more than 4,700 branches in the U.S. plus more than 30 branch locations abroad.
According to Chase, almost half of the households in the U.S. are Chase customers. It attracts digital savvy customers that value online banking and products with artificial intelligence (AI). In addition to consumer banking, JPMorgan Chase is a combined bank that offers commercial banking, asset and wealth management, and investment banking.
Chase offers some of the most popular cash back and travel credit cards that can earn you valuable rewards through their program, Chase Ultimate Rewards. Using these credit cards for everyday purchases can earn you travel points, cash back, and other benefits.
2. Bank of America Corp.
Total Assets: $2.440 Trillion
Headquarters: Charlotte, North Carolina
Bank of America is a multinational bank with nearly 66 million customers and small business clients across the globe. It has a few divisions, including Merrill, Bank of America Securities, and Bank of America Private Bank.
As a Bank of America customer, you can enjoy access to a wide variety of products and services as well as access to more than 4,000 branches and more than 17,000 ATMs.
Just like most big banks, Bank of America prides itself on a robust mobile app, the Zelle payment solution, and other intuitive digital tools. Its various service lines include consumer banking, corporate banking, credit cards, insurance, investment banking services, institutional banking, mortgage loans, private banking, private equity, and wealth management.
3. Citigroup
Total Assets: $1.720 Trillion
Headquarters: New York City, New York
Citigroup, which is widely known as Citi, is an investment bank and financial services firm. When Citigroup merged with Travelers Group in 1998, it became a major player in the financial space. Citibank, Citigroup’s retail banking division has more than 700 branches in the U.S. and over 1,800 branches outside the U.S.
Most of the U.S. bank branches are in Florida, California, New York, and Washington DC. Citibank manages over 138 million bank accounts and has 65,000 fee-free ATMs across the country. Over the years, it has earned high rankings for its digital money management tools, including one that shows customers a financial wellness score.
4. U.S. Bancorp
Total Assets: $582.25 Billion
Headquarters: Minneapolis, Minnesota
The parent company of U.S. Bank, Bancorp’s locations are mainly in the Midwest. It offers personal and business banking with more than 3,000 branches and 5,000 ATMs. Over the years, Bancorp has worked to become a responsible financial provider and earn a spot on the Ethisphere Institute’s World’s Most Ethical Companies list.
As a Bancorp customer, you can access information about your accounts through Google Home and Amazon Alexa. You may also download the handy mobile app to make mobile deposits and perform other services, like transactions via Zelle.
5. PNC Financial Services Group
Total Assets: $534.35 Billion
Headquarters: Pittsburgh, Pennsylvania
PNC is short for Pittsburgh National Corporation. PNC Financial Services is the bank holding company of PNC Bank, which has more than 2,000 branches across 21 states. It stands out among other large banks for its unique customer perks and products for individuals and business owners. The Virtual Wallet tool, for example, lets you manage your money online or on your mobile device.
You can keep your checking and savings accounts together or just stick to one type of account, depending on your particular needs. In addition to traditional banking services, PNC offers mortgages, home equity lines of credit, auto loans, personal loans and personal lines of credit, student loans, and student loan refinancing.
6. Wells Fargo
Total Assets: $1.71 Trillion
Headquarters: San Francisco, California
Wells Fargo made its debut in 1852 when it was first opened by investing partners, Henry Wells and William Fargo. It was initially designed as a bank and express delivery service for gold. Eventually, Wells Fargo expanded as a consumer bank to serve all types of customers with various banking needs. It is admired for its long list of offerings and the Wells Fargo mobile app that helps customers track their spending and simplify their bills.
While Wells Fargo has focused on consolidating and prioritizing digital banking services in recent years, it still has about 4,700 locations and more than 12,000 ATMs around the U.S.
In addition to personal and small business banking, Wells Fargo supports commercial banking, investing and wealth management, and investment banking.
7. Truist Financial Corporation
Total Assets: $532.08 Billion
Headquarters: Charlotte, North Carolina
Compared to the other large commercial banks on this list, Truist is fairly new. It was formed in 2019 as the result of one of the largest bank merger between BB&T and SunTrust.
Truist is made up of three major divisions, including Truist Bank, Truist Securities, and Truist Insurance Holdings. These divisions employ over 37,000 people that work in consumer and commercial banking, investment banking, mortgages, and insurance.
It offers a variety of noteworthy perks, such as no overdraft fees, a $100 negative balance buffer, and automatic upgrades. The bank also places a lot of emphasis on community involvement and giving back.
8. Goldman Sachs Group, Inc.
Total Assets: $501.91 Billion
Headquarters: New York City, New York
Goldman Sachs was founded in 1869 by Marcus Goldman, a German American shopkeeper. Its original purpose was to help merchants and small businesses with short-term funding. Eventually, Samuel Sachs joined Goldman in 1882. Today, Goldman Sachs has a reputation as a leading global investment banking, management, and securities firm.
In the fall of 2016, Marcus by Goldman Sachs, its online banking division made its debut and began to offer numerous financial products, like savings accounts, certificates of deposit, credit cards, and loans.
In addition to these offerings, Goldman Sachs provides asset management services, mutual funds, investment banking and management, prime brokerage, commodities, and commercial banking.
9. Charles Schwab Corporation
Total Assets: $407.90 Billion
Headquarters: San Francisco, California
Charles Schwab is a multinational financial services firm with a focus on investment accounts, such as individual retirement accounts (IRAs) and brokerage accounts.
You’ll find an extensive selection of funds with low expense ratios as well as commission-free stock and ETF trades. While there are over 360 Charles Schwab branches with financial consultants, you can take advantage of its services online.
Schwab also offers a high-yield checking account. Whether you’re new to investing or consider yourself a veteran, you can benefit from Charles Schwab.
10. TD Group U.S. Holdings
Total Assets: $405.22 Billion
Headquarters: Wilmington, Delaware
While TD Bank has roots in Canada, it’s been in the U.S. market since 2007 when it acquired Commerce Bancorp. There are more than 1,100 branches and 700 ATMs across fifteen U.S. states and Washington D.C.
TD Bank offers the typical lineup of banking products and services but is known for its branch convenience. Most branches have long hours, are open on the weekends, and provide curbside pickup for new debit cards.
If you prefer in-person banking, TD Bank is certainly worth exploring. Many of its accounts come with generous sign up bonuses and access to comprehensive online banking features, such as online bill pay, Zelle, and remote check deposit.
11. Capital One Financial
Total Assets: $388.44 Billion
Headquarters: McLean, Virginia
Since it was established in 1988, Capital One bank is one of the newer large banks on our list. In only a few decades, the bank has grown significantly, thanks to its credit card offerings in the early 90s.
Once 2016 came around, Capital One was named the third-largest credit card issuer in the U.S. These days, Capital One continues to offer credit cards as well as digital services through Capital One 360.
Capital One 360 stands out for its Capital One’s 360 Performance Savings account, which comes with no minimum opening deposit and no minimum balance requirements.
It also has a mobile banking app with mobile check deposit, customized alerts and notifications, Zelle, free credit score monitoring via CreditWise, and more. There are about 775 branches, 2,000 ATMs, and nearly 30 Capital One cafes.
12. Bank of New York Mellon
Total Assets: $365.10 Billion
Headquarters: New York City, New York
Bank of New York Mellon came about after a 2006 merger between Mellon Financial Corporation and The Bank of New York. The Bank of New York was originally founded in 1784 by Alexander Hamilton, the first Secretary of the Treasury of the U.S. Bank of New York Mellon is now one of the largest securities firms in the word.
It specializes in a number of solutions and services for corporations, insurance companies, banks, brokers, dealers, and other reputable clients in the financial industry. In addition, the bank offers private investment and wealth management services for wealthy clients.
13. State Street Corporation
Total Assets: $296.43 Billion
Headquarters: Boston, Massachusetts
State Street Corporation was founded in 1792 as a financial services and asset management company. It has more than 40,000 employees and a global presence in over 100 markets.
Its offerings include investment research and trading, investment management, and securities lending for clients, such as insurance companies, pension funds, and asset owners.
14. Citizens Financial Group
Total Assets: $226.53 Billion
Headquarters: Providence, Rhode Island
Citizens Financial Group, Inc. has been around since 1828. It owns Citizens Bank, its retail division and offers credit cards, deposit accounts, personal loans, student loans, refinancing, and a number of other financial services. Citizen Bank mainly operates in the Northeast and Midwest.
In addition to more than 2,700 ATMs, there are over 1,100 branches in New England states as well as Delaware, Michigan, Ohio, Pennsylvania, New York, and New Jersey. The bank provides extended call center hours, a streamlined online experience, and a highly rated mobile app.
15. Silicon Valley Bank
Total Assets: $211.82 Billion
Headquarters: Santa Clara, California
Silicon Valley Bank made its debut in 1983. Today, it serves as a full-service commercial bank for technology and life sciences companies. Aside from traditional banking services, Silicon Valley Bank offers foreign exchange, venture capital, and treasury management services.
It has supported innovation for several well-known tech companies, including Google and Facebook. Many people give it credit for establishing Silicon Valley.
16. Fifth Third Bank
Total Assets: $205.55 Billion
Headquarters: Cincinnati, Ohio
Fifth Third Bank is a subsidiary of Fifth Third Bancorp and known as one of the largest banks in the Midwest. It has approximately 1,100 branches that span across Ohio, Florida, Georgia, Kentucky, Illinois, Indiana, Michigan, North Carolina, Tennessee, and West Virginia.
As a customer, you can enjoy access to more than 50,000 ATMs across the country and no opening deposit requirements for checking and savings accounts.
In addition to deposit accounts, Fifth Third Bank financial institutions offer mortgages, auto financing, personal loans, insurance, and investing products. Products and services are available to business customers as well.
17. First Republic Bank
Total Assets: $197.91 Billion
Headquarters: San Francisco, California
First Republic Bank is a premier private bank with more than 80 branches across the country. Its vast lineup of products and services includes checking accounts, savings accounts, money market accounts, IRAs, CDs, and wealth management.
Business customers can take advantage of business loans, business lines of credit, commercial real estate loans, and small business loans. The bank focuses on philanthropy and constantly supports programs related to art and education.
18. Morgan Stanley
Total Assets: $191.35 Billion
Headquarters: New York City, New York
Morgan Stanley’s roots date back to 1935. Today, the bank is a reputable, multinational investment management and financial services company. It has over 700 locations in every state as well as Washington D.C.
Its investing division includes three portfolios, including the impact portfolio, market-tracking portfolio, and performance-seeking portfolio. Whether you’re a beginner investor or wealthy client, Morgan Stanley may be a solid pick.
19. KeyBank
Total Assets: $184.67 Billion
Headquarters: Cleveland, Ohio
KeyBank was founded in 1825 and is now considered a community bank with a presence in 15 states. It has more than 40,000 ATMs in its network and 1,000 full-service branches. The bank also partners with the AllPoint Network of over 40,000 ATMs nationwide.
Its standard services include checking accounts, savings accounts, home loans and mortgages, lines of credit, credit cards, investing, insurance, and debt consolidation. In 2021, KeyBank acquired several digital businesses including digital platform XUP Payments and GradFin, a student loan counseling fintech.
20. Ally Bank
Total Assets: $182.2 Billion
Headquarters: Sandy, UT
While it’s based in Utah, Ally Bank is an online only bank with a long list of digital banking solutions. Its deposit accounts come with no monthly maintenance fees or minimum balance requirements.
The bank also pays high yields on CDs and savings accounts than traditional banks with brick-and-mortar banks. As a customer, you can enjoy 24/7 customer services and access to more than 43,000 ATMs through the Allpoint network.
Bottom Line
As you can see, there are many large banks in the United States. Each one has its own unique perks and priorities. To choose the right bank, consider your location, needs, and preferences.
If you’re looking for personal banking services and prefer a digital platform, Goldman Sachs and its Marcus division may be the way to go. But if private wealth management is your top priority, you may be better off with Bank of New York Mellon. Best of luck in your search for the perfect large bank.
Largest Banks in the U.S. FAQs
What is a bank?
Put simply, a bank is a financial institution that can legally accept checking and savings deposits and distribute loans. Some banks also offer additional services like certificates of deposit (CDs), individual retirement accounts (IRAs) and wealth management.
What is the largest bank in the world?
The Industrial and Commercial Bank of China is the largest bank in the world. The bank’s assets add up to $4.324 Trillion.
What are the ten largest banks in the U.S.?
Ranked in total asset value, the ten largest banks in the U.S. include JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, U.S. Bancorp, PNC, Truist Bank, Goldman Sachs, Charles Schwab, and TD Group.
How do I choose a bank?
To choose the right bank, focus on what you’re looking for. For more personalized service, you might want to explore a community bank. But if you prefer branch locations across the country and a long list of offerings, one of the large banks on this list might be a better fit.
Is my money safe in a bank?
Your money is safe as long as the bank is insured by the Federal Deposit Insurance Corporation (FDIC). An FDIC-insured bank typically insures up to $250,000 per depositor. Note that you don’t have to purchase FDIC insurance. As long as you’re a customer at a bank that offers it, you’ll receive it automatically.
How does a commercial bank differ from a retail bank?
A commercial bank offers a variety of products and services to both individuals and businesses. Retail banks, on the other hand, focus their offerings to individual customers. If you own a business, you’d be better off with a commercial bank that can serve the financial needs of your organization.
Do online banks exist?
Absolutely! In today’s day and age, online banking is more popular than ever before, among larger banks and smaller banks. While some banks offer in-person and online services, other banks, like Ally Bank, solely operate online with no branch locations.
What are some other large banks not on this list?
Other big banks you might want to consider include First National Bank, Huntington Bank, Provident National Corporation, America Bank, and HSBC Bank USA.
The story of the banking industry is, in many ways, the story of America. Immigrant successes, Westward expansion, rebuilding after massive losses, inventing new technology… American banks have been part of all these efforts and more.
This is especially true of the largest banks in America. With international presence and massive amounts of wealth, these banks play an important role in the history and future of world finance.
What’s Ahead:
1. JP Morgan Chase
Assets: $3,380,824M
Number of U.S. branches: 4,828
HQ: Columbus, OH
JP Morgan Chase’s ancestor institution, The Bank of The Manhattan Company, began as a water supplier. In 1799, New York Assemblyman Aaron Burr led an initiative to bring Manhattan residents fresh water. The entrepreneurial Burr used his state charter to start both a waterworks and a bank, which would outlive the water company and merge with Chase Bank in 1955.
Two other large institutions gave the bank its name. Famous financier J. Pierpont Morgan joined an 1871 merchant banking partnership to support American industrial growth. Publisher John Thompson established Chase National Bank in 1877, naming it after friend and Supreme Court Justice Salmon P. Chase. By 1930 Chase National Bank was the world’s largest.
Morgan spurred his firm’s growth by financing the railroad industry in the late 19th century. Struggling railroads like the Erie and the Northern Pacific got “Morganized” with cost-cutting measures and restructuring. Other companies that would later be a part of JP Morgan Chase founded American engineering projects standing today, like the Brooklyn Bridge and the Statue of Liberty. In 1904 J.P. Morgan & Co. financed the Panama Canal with a record-breaking real estate transaction of $40 million.
Later, JP Morgan Chase-affiliated institutions spearheaded 20th-century banking technologies including cash dispensers — the ancestors of ATMs — and home banking services.
2. Bank of America
Assets: $2,440,022M
Number of U.S. branches: 3,895
HQ: Charlotte, NC
Bank of America began in San Francisco as Bank of Italy. It traces its roots to 1904, when founder Amadeo Giannini, an Italian-American, had a vision for a new type of bank.
At the time major banks only catered to the wealthy. The Bank of Italy provided loans to middle and working-class Americans, immigrants, and farmers. Giannini convinced his neighbors, many of whom were fellow immigrants, to keep their money safely in a vault and earn interest. He began operations in a former saloon.
Giannini’s bank grew quickly and changed its name in 1930 to a name he felt better described his mission: Bank of America.
Bank of America continued to make inroads beyond its West Coast headquarters. By Giannini’s death in 1949 the bank was the world’s largest with $6 billion in assets.
In 1958, Bank of America issued the first bank credit card. By 1991, Bank of America had purchased a major California competitor and become the first bank to operate from coast to coast in the United States.
The 2009 acquisition of Merrill Lynch helped turn Bank of America into the largest wealth-management corporation in the world.
3. Citigroup
Assets: $1,720,308M
Number of U.S. branches: 666
HQ: Sioux Falls, SD
When the First Bank of the United States lost its charter in 1811, several of its investors decided to charter their own banks. One of these new banks was the City Bank of New York, founded in June 1812.
It was led by Samuel Osgood, a former member of George Washington’s cabinet and a Revolutionary War veteran. The bank was one of the first institutions to set up an office on Wall Street before the street became a financial hub.
City Bank saw opportunities in the early transportation industry. In the 1850s, bank president Moses Taylor invested in railroads and steamships.
City Bank was also the first American bank to open a department abroad. By 1915 it was the nation’s primary international bank. Texas entrepreneur James Stillman became bank president in 1891 and started trading with countries like Spain, Japan, and Brazil.
After a series of mergers, the former City Bank branched out into a holding company (Citigroup) and a banking business (Citibank) in the 1970s, forming Citigroup Inc. in 1998.
4. Wells Fargo
Assets: $1,712,535M
Number of U.S. branches: 4,739
HQ: Sioux Falls, SD
The California gold rush inspired investing partners Henry Wells and William Fargo to open a new venture in San Francisco in 1852. Wells, Fargo & Co. operated a bank and express delivery service for gold. As gold miners spread to cities and camps throughout California, Wells Fargo & Co. followed.
The company made its name in transportation. Prospectors needed to get their gold from coast to coast. There was a huge market for other transit needs, too, like communicating messages.
Wells Fargo used steamships, ponies, railroads, telegraphs, and stagecoaches to make deliveries across the developing West. They operated the western leg of the Pony Express in 1861 and expanded with the transcontinental railroad in the 1870s.
By 1888, Wells Fargo, using the mottoes “Ocean-to-Ocean” and “Over the Seas,” ran the U.S.’s first national express company and looked towards global expansion. They also boasted the world’s largest collection of stagecoaches and served areas where railroads didn’t run.
5. U.S. Bank
Assets: $582,253M
Number of U.S. branches: 2,251
HQ: Cincinnati, OH
Like most banks on the list, U.S. Bank is the product of multiple mergers. The combined power of several original “legacy” banks across the country, from Oregon to Ohio to Colorado, helped make U.S. Bank the success it is today.
U.S. Bank’s oldest legacy bank, Firstar of Milwaukee, was founded in 1853 as Farmers and Millers Bank. And the administration of President Abraham Lincoln approved the charter for the First National Bank of Cincinnati (later Star Banc) in 1863, in the midst of the Civil War.
San Miguel Valley Bank in Colorado, later part of U.S. Bank, earned its own claim to fame when it was robbed by Butch Cassidy in 1889 — the first bank the outlaw ever robbed.
As American prospectors and businesspeople went West to seek profits, U.S. Bank expanded westward as well. The United States National Bank of Portland opened in 1891 in Oregon. It later formed a holding company called U.S. Bancorp. U.S. Bank locked in its name before a 1913 law prohibited other banks from using “United States” in their names.
Over a century later, in the early 2000s, Firstar of Milwaukee — now much larger and wealthier than the Farmers and Millers Bank of 1853 — combined with U.S. Bancorp. More regional mergers and acquisitions in the 1990s and 2000s added Star Bank, along with regional banks in Missouri and Minnesota, to the U.S. Bank fleet.
6. PNC Bank
Assets: $534,347M
Number of U.S. branches: 2,639
HQ: Wilmington, DE
PNC stands for Pittsburgh National Corporation. In some ways, PNC hasn’t strayed far from its Pennsylvania roots. The company still does business in the same Pittsburgh location where the First National Bank of Pittsburgh opened in the mid-19th century Civil War era.
The bank continued to serve the community during the Great Depression in the 1930s, partnering with Peoples-Pittsburgh Trust Company to finance local improvement projects. They established a simple process for home and auto loan approvals and opened branches in small Pennsylvania manufacturing towns.
In 1983, PNC merged with the bank Provident National Corporation, taking advantage of new laws that permitted statewide banking. At the time, this was the largest merger in U.S. banking history. Conveniently, the two companies had the same initials.
As technology took on a larger role in banking, PNC established a common platform for each of its member banks in 1990. This way, customers had consistent access to the same services. A 1999 acquisition of an investor services group helped PNC branch into the worldwide investment industry.
7. Truist Bank
Assets: $532,080M
Number of U.S. branches: 2,117
HQ: Charlotte, NC
A company with proud Southern roots, Truist began in Atlanta, Georgia, as the Commercial Travelers’ Savings Bank in 1891, with a grocer as its first president. The bank moved into an eight-story building a few years later (the first “skyscraper” in the South) and became Trust Company of Georgia (TCG), focused on investment banking.
TCG also played a role in financing one of the country’s favorite drinks. In 1919, TCG purchased the Coca-Cola company and received $110,000 of shares in Coca-Cola stock.
After becoming a full-service commercial bank in 1933, TCG expanded through Georgia and the southeast. They merged with Florida-based Sun Banks, Inc., in 1985, the largest bank merger in the American southeast at the time. The new company, SunTrust, became one of the first banks to use electronic check transactions in 2004.
A much larger merger followed in 2019, as SunTrust combined with fellow Southern bank BB&T. To start fresh as a new institution, the now-larger bank hired a branding company to come up with an original name. As American Banker reports, many customers thought the name Truist was strange — but this doesn’t seem to have impacted the company’s profits.
8. Goldman Sachs
Assets: $501,906M
Number of U.S. branches: 3
HQ: New York, NY
Marcus Goldman, a German American shopkeeper living in New York City, found a niche in the banking market in 1869. His “commercial paper” trading business helped merchants and small businesses get short-term funds without paying for pricey bank credits. In 1882 his son-in-law Samuel Sachs joined the firm.
The newly named Goldman, Sachs & Co. was trading on the New York Stock Exchange by 1896. Business started booming. They scored big-name clients like Sears, Roebuck & Co., bought overseas banks, and started trading in international currency.
Goldman Sachs is known for pioneering the initial public offering or IPO, a process where a company offers shares of its stock for investors to buy. The IPO has since been essential to the growth of hundreds of companies and is one of the main ways companies raise capital.
9. TD Bank
Assets: $405,223M
Number of U.S. branches: 1,159
HQ: Wilmington, DE
TD Bank has Canadian roots. As the grain industry became more profitable in Canada, a group of merchants and grain millers founded the Bank of Toronto in 1855. A decade later in 1869, The Dominion Bank opened to serve Canadians, and both banks expanded across the country in the early 20th century.
After World War II, the two banks decided to merge in response to the challenges of the postwar economy. Their new combined name, Toronto Dominion (TD), has lasted since 1954.
Post-merger, TD Bank added substantially to its products and services, branching into mutual funds, discount and full-service brokerage, and commercial real estate. In 1987, the bank opened Toronto Dominion Securities Inc. for corporate investors.
Their expansion into the United States began in 2007-8 when TD Bank acquired the U.S.-based Commerce Bancorp. Commerce was known for its convenient hours, open seven days a week and almost 365 days a year. In its new incarnation, TD Bank adopted the tagline “America’s most convenient bank” throughout the U.S. and Canada.
10. Capital One
Assets: $388,440M
Number of U.S. branches: 296
HQ: McLean, VA
Compared to the other big banks in the United States, Capital One hasn’t been around for long at all. It wasn’t founded until 1988.
How did Capital One experience such rapid growth in only a few decades? Part of the answer is its niche expertise as a credit card company. Though Capital One has offered loans and consumer banking since 2005, its greatest profits in its early years came from customers’ desire for credit cards — which were more novel and exciting in the 1990s than they are today.
Capital One was pretty clever at growing its credit card business. The company used data to target customers with personalized offers, and grew its customer base by offering secured cards and joint accounts to customers with less-than-perfect credit. Additionally, Capital One offered the standout feature of letting cardholders design their own cards.
Catching up for its late start, Capital One acquired several other banks and increased its presence in the United States and Canada. By 2016, Capital One was the third-largest credit card issuer in the United States.
Nowadays, in addition to its booming credit card trade, Capital One has consumer banking and commercial banking divisions — including its Capital One 360 services that adapt checking, savings, and money market accounts for the digital age.
11. Bank of New York Mellon (BNY Mellon)
Assets: $365,102M
Number of U.S. branches: 29
HQ: New York, NY
The original Bank of New York (BNY) dates all the way back to 1784, when it was founded by Alexander Hamilton. BNY loans helped finance U.S. infrastructure projects like the Erie Canal and the subway in New York City.
Its future partner, Mellon Financial, got started in 1869 as a wealth management firm. Though the two companies are combined today, they still maintain a separate wealth management business.
In 2006-7, the Bank of New York acquired Mellon Financial and took on the new name BNY Mellon. The new company focuses primarily on corporate banking, including securities and asset management.
This focus is one reason for its huge profits; many of America’s large foundations, pension funds, and other Fortune 500 power players do business with BNY Mellon. By the end of 2020, the bank was servicing more money in assets than any other company in the world.
12. State Street Bank & Trust Co.
Assets: $296,434M
Number of U.S. branches: 2
HQ: Boston, MA
State Street’s predecessor banks date back to the 18th and 19th centuries. In 1792, Union Bank (later National Union Bank) was approved by Massachusetts Governor John Hancock and started business in Boston. They opened a headquarters on Boston’s State Street.
A century later in 1891, their competitor, the State Street Deposit & Trust Co., opened nearby. The two Boston banks merged in 1925 and kept the name of the street they had in common.
One major factor in State Street’s expansion was its embrace of technology and software. In 1973, when computers were still being developed, State Street acquired part of Boston Financial Data Services and began using data processing to improve their accounting and customer service.
When a 1974 law increased companies’ responsibilities to report pension plans to the government, State Street worked on software that helped companies maintain these records. That same year, the bank opened its own data processing headquarters in a Boston suburb.
Summary
The 12 biggest banks in America all have different stories, but also many things in common: savvy entrepreneurs behind them, massive growth fuelled by mergers and banking innovations, and a whole lot of assets in their vaults.