State Member MDIs
The Board had primary supervisory responsibility for 14 state member MDIs in 2022,2 which are mostly community banks with total assets of $10 billion or less (table 1).3 Accordingly, the System's community banking organizations program, which is responsible for the risk-focused supervision of state member banks with less than $10 billion in total assets, maintains supervisory responsibility for most of the Board's portfolio of MDIs.
There were two changes to the portfolio in 2022:
- United Bank El Paso del Norte in El Paso, Texas, was acquired and merged with a non-MDI bank and therefore was no longer considered an MDI.
- In December 2022, Anchor Bank in Palm Beach Gardens, Florida, was designated as a new state member MDI by the Board and Federal Reserve Bank of Atlanta.
Table 1. Asset distribution of state member MDIs as of December 31, 2022
| Asset size | Number of banks | Percentage of total* |
|---|---|---|
| $250 million or less | 1 | 7 |
| $250 million to $500 million | 5 | 36 |
| Over $500 million to $1 billion | 4 | 29 |
| Over $1 billion to $10 billion | 1 | 7 |
| Greater than $10 billion | 3 | 21 |
| Total | 14 | 100 |
* Because of rounding, the sum of values in this column may not equal the total.
Geographic Dispersion
In 2022, state member MDIs were located in six of the 12 Federal Reserve Bank Districts, with assets concentrated in the New York and San Francisco Districts (table 2).4 State member MDIs in these two Districts accounted for 98 percent of the total state member bank assets in the System's MDI portfolio. Though smaller in asset size, there is also a concentration of state member MDIs in the Kansas City District. All four of the banks in this District are located in Oklahoma and are Native American MDIs.
Table 2. State member MDI distribution by Federal Reserve District as of December 31, 2022
| Federal Reserve Bank District |
Number of MDIs | Total assets (thousands of dollars) |
Percentage of total assets* |
|---|---|---|---|
| Atlanta | 2 | 1,106,988 | 0.80 |
| Chicago | 1 | 285,368 | 0.21 |
| Kansas City | 4 | 1,414,931 | 1.02 |
| New York | 2 | 67,606,290 | 48.92 |
| Philadelphia | 1 | 451,784 | 0.33 |
| San Francisco | 4 | 67,332,741 | 48.72 |
| Total | 14 | 138,198,102 | 100.00 |
* Because of rounding, the sum of values in this column may not equal the total.
Minority Ownership Type
The Board's MDI portfolio includes banks representing all minority ownership categories as defined by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). As of year-end 2022, five state member MDIs were classified under Asian American minority status, five were classified under Native American minority status, three were classified under Hispanic minority status, and one was classified under Black minority status (figure 1).
Figure 1. State member MDIs by minority type as of December 31, 2022
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Note: Percentages are by number of MDIs.