Minority Depository Institutions:

Structure, Performance, and Social Impact

FDIC Advisory Committee on Community Banking

July 23, 2014
19 Institutions

$121.6 Billion in 

Assets

Number of 

Institutions

FDIC-Insured MDIs

FDIC-Insured MDI-CDFIs

FDIC-Insured CDFIs (non-MDI)

Legend

174

41

37

Source: FDIC, U.S. Department of Treasury.

How FDIC-Insured MDIs and CDFIs Overlap,

Year-End 2013

Note: Community and Noncommunity banks are defined per the FDIC 

Community Banking Study.

http://www.fdic.gov/regulations/resources/cbi/study.html. 

Noncommunity Banks Community Banks

114 Institutions

$50.0 Billion in Assets

2 Institutions

$0.4 Billion in 

Assets

0 Institutions

39 Institutions

$9.3 Billion in 

Assets

37 Institutions

$13.9 Billion in 

Assets

MDIs

174 

Institutions

$181 Billion in 

Assets

1,793 Banking 

Offices

CDFIs

78 

Institutions

$24 Billion 

in Assets

534 Banking 

Offices
174

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0

50

100

150

200

250

2001 2005 2009 2013

Charters Percent of Industry

2.6%

MDI Charters

$181

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

0

50

100

150

200

250

2001 2005 2009 2013

Percent of Industry

MDI Assets

1.2%

1,793

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

0

500

1,000

1,500

2,000

2,500

2001 2005 2009 2013

Offices Percent of Industry

MDI Banking Offices

1.9%

Source: FDIC

After Pre-Crisis Growth, the MDI Share of the Banking 

Industry has Declined

$ Billions

CORRECTED CHART
32%

21%

12%

9%

16%

5%

22%

58%

16%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Non-MDI Community Bank MDIs

Minority Deposit Institutions 

Are Mostly Comprised of CRE Specialists

Percent of Institutions by Specialty Lending Group, Year-End 2013

Mortgage

Consumer

CRE

C&I

Agriculture

Multi-Specialty

No Specialty

Source: FDIC. Loan categories with fewer than 5 percent of institutions are not labeled. Single Specialists Diversified

-3

-2

-1

0

1

2

3

2001 2003 2005 2007 2009 2011 2013

 Non-MDI Community Bank

 Non-MDI Noncommunity Bank

 MDI

Many MDIs Underperform in Terms of Standard Industry Measures 

of Financial Performance

Annual Weighted Average Pretax Return on Assets (ROA)

(Percent)

Source: FDIC.

Depicts the 25th to 75th Percentiles of Pretax 

ROA Distribution for MDIs in Each Year
36%

11%

13%

50%

22%

42%

25%

9% 9%

52%

17%

25%

0%

10%

20%

30%

40%

50%

60%

All MDIs Non-MDI

Community

Banks

Non-MDI

Noncommunity

Banks

African

American

MDIs

Hispanic

American

MDIs

Asian

American

MDIs

The Median Share of HMDA-Reported Mortgage 

Originations for Properties in LMI Census Tracts

Is Higher Among MDIs

2006 2011

Source: FDIC, U.S. Census Bureau.
Median Share of HMDA-Reported Mortgage Originations to AfricanAmerican, Hispanic, or Asian/Pacific-Islander Borrowers

0.4% 2%

78%

0% 1%

67%

0%

20%

40%

60%

80%

Non-MDI

Community...

Non-MDI

NonCommunity...

AfricanAmerican...

2006

2011

0.7% 2.2%

61%

0.5% 1.9%

65%

0%

20%

40%

60%

80%

Non-MDI

Community...

Non-MDI

NonCommunity...

Hispanic

MDIs

0% 1.0%

40%

0% 1.4%

57%

0%

20%

40%

60%

80%

Non-MDI

Community...

Non-MDI

NonCommunity...

Asian/PacificIslander...

Non-MDI 

Community Banks

Non-MDI 

Community Banks

Non-MDI 

Community Banks

Non-MDI 

NonCommunity Banks

Non-MDI 

NonCommunity Banks

Non-MDI 

NonCommunity Banks

African-American 

MDIs

Hispanic MDIs

Asian/PacificIslander MDIs

Source: FDIC, U.S. Census Bureau.