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What is a regional bank?

If you’re looking for the best of both community banks and national banks, a regional bank may be for you.

Yahoo Personal Finance· Getty Images
Updated 6 min read

Regional banks generally fit between community banks and national banks when it comes to size, available products and services, and accessibility. They tend to offer a generous range of products and services, but they serve a particular area of the country.

While regional banks may not be nationally accessible, they have several advantages that make them an attractive place to bank for many.

According to the Federal Reserve, a regional bank has between $10 billion and $100 billion in assets.

As the name suggests, many regional banks serve a specific region (or multiple regions) of the country. For example, Zions Bank is a regional bank that primarily serves the Intermountain West. However, some regional banks have larger footprints. Plus, online and mobile banking make some regional banks accessible from anywhere.

Don’t confuse the regional banks we’re describing here with regional Reserve Banks. Reserve Banks are part of the Federal Reserve System and run the Fed’s operations. They’re spread across the country so the Fed can keep a pulse on different communities and distribute its reserves more evenly across the U.S.

Banks can be split into three major categories: regional banks, national banks, and community banks. While these three types of banks have a lot in common in terms of how they serve customers, there are a few key differences between them.

Community banks are the smallest. The Federal Reserve defines community banks as those with less than $10 billion in assets. Community banks tend to serve specific communities, operate with fewer locations, and have smaller footprints than regional or national banks. They may also have fewer products and services than bigger banks and may not have sophisticated online or mobile banking platforms. However, community banks excel in their dedication to their customers and communities.

Regional banks are larger than community banks and generally smaller than national banks, with assets between $10 and $100 billion. They tend to have more products and services than community banks, but may not have as many as national banks. Regional banks also have a presence across one or more regions of the country, but usually aren’t available nationally.

National banks are those chartered and regulated by the Office of the Comptroller of the Currency. They operate under a national, not state, charter. National banks are also generally larger than regional and community banks. Some well-known examples include Wells Fargo, Chase, and Bank of America.

There are many regional banks in the U.S., some more well-known than others. Here are a few examples of some of the larger regional banks in the country:

  • Zions Bank: Headquartered in Salt Lake City, Zions Bank serves customers in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming.

  • First Horizon Bank: First Horizon Bank is headquartered in Memphis, Tenn., and primarily serves the Southeast U.S. at its more than 400 locations.

  • Comerica Bank: Comerica Bank’s headquarters are in Dallas, Texas, but the bank has locations in several regions of the country, including parts of the Southwest, the Southeast, and Michigan.

  • Webster Bank: Headquartered in Stamford, Conn., Webster Bank serves the Northeast. It has branches in Connecticut, Massachusetts, Rhode Island, and the New York Metro area.

  • East West Bank: East West Bank’s headquarters are in Pasadena, Calif. The bank has roughly 100 branches across different parts of the U.S., including California, the Northeast, and Texas. East West Bank even has some branches in Asia.

Regional banks tend to offer most of the same products and services you can find at national banks, though offerings do vary by bank. Here’s what you can expect to find at most regional banks:

Some regional banks may even offer wealth management services, commercial banking, and other specialized services.

Like community and national banks, regional banks have advantages and disadvantages. Weigh the following pros and cons before opening an account at a regional bank.

  • Regional banks offer more branches and better accessibility compared to community banks.

  • Regional banks may offer more personalized service compared to big national banks.

  • Regional banks may offer better rates on savings accounts or loans to compete with national banks.

  • Regional banks will generally have plenty of branches and ATMs in your local area.

  • Regional banks have smaller footprints than national banks, making them less practical for frequent travelers or those who move often.

  • Regional banks may not offer every financial product or service you need.

Whether or not you should bank with a regional bank depends on several factors. Considering the following can help you decide whether or not to bank with a regional bank:

  • Accessibility: Are there convenient branches and ATMs in your area? Does the bank offer user-friendly online and mobile banking?

  • Products and services: Does the bank offer all the products and services you need? If not, are you willing to find them elsewhere?

  • Rates: Does the bank have competitive rates on deposit accounts, loans, and lines of credit?

  • Customer experience: Does the bank have well-rated and easily accessible customer service?

If you find a regional bank in your area that has all the services you need, provides attentive customer service, offers convenient branch locations and ATMs, and has competitive rates, you may want to consider banking with a regional bank.

On the other hand, if you travel a lot, prefer to keep all of your financial and wealth management services under one roof, or can find better rates elsewhere, a regional bank may not be the best fit. Those looking for a more customer-focused experience should consider a community bank, while those who prioritize convenience and accessibility should consider a national bank.

Regional banks are safe places for your money, assuming they’re insured by the Federal Deposit Insurance Corporation (FDIC). No matter the size of the bank, banks with FDIC insurance guarantee your deposits up to $250,000 per depositor, per institution, per ownership category.

If you have deposits exceeding $250,000 at one regional bank, you’ll need to move anything above that threshold to another insured institution (or several) to make sure your entire balance is fully insured.

To know if your bank is a regional bank, you can look up its asset size. You can find this information from the Federal Reserve’s list of Large Commercial Banks. However, knowing whether or not your bank is a regional bank shouldn’t change your experience as a customer.

The 12 regional banks refer to the 12 regional Reserve Banks that are part of the Federal Reserve System. Locations are spread across the country, including San Francisco, Dallas, Kansas City, Minneapolis, St. Louis, Chicago, Atlanta, Richmond, Cleveland, Philadelphia, New York, and Boston. These aren’t regional banks in the sense this article describes.