Types of Banks in the U.S.: Core Overview
| Bank Type | Primary Purpose | Main Regulators | Examples |
|---|---|---|---|
| Commercial Banks | Accept deposits, make loans, offer full financial services to individuals/businesses | OCC (national), State Banking Depts, Fed, FDIC | JPMorgan Chase, Bank of America |
| Retail Banks | Serve individuals with deposit accounts, mortgages, cards, personal loans | OCC, State Banking Depts, Fed, FDIC | U.S. Bank, PNC |
| Community Banks | Relationship-based local banking for residents & small businesses | State Banking Depts, OCC, FDIC | Independent Bank, First Interstate Bank |
| Credit Unions | Member-owned cooperatives with savings, loans, better rates | NCUA (federal), State CU Regulators | Navy Federal CU, Alliant CU |
| Savings & Loan Associations (Thrifts) | Historically mortgage-focused, now broader retail banking | OCC, FDIC | Flagstar Bank |
| Investment Banks | Underwriting, M&A advisory, capital raising, trading | SEC, FINRA | Goldman Sachs, Morgan Stanley |
| Online-Only / Neobanks | Digital-first banking, often partnered with FDIC-insured banks | Partner bank’s regulator, FDIC | Chime, Varo Bank |
| Foreign Bank Branches/Agencies | U.S. operations of foreign banks serving corporates/institutions | Federal Reserve, State Banking Depts | Deutsche Bank Trust Company Americas, MUFG Bank USA |
| Industrial Banks (ILCs) | Lend & take deposits, can be owned by non-financial firms | State Banking Depts (UT, NV), FDIC | WebBank, Square Financial Services |
| Specialized Govt.-Sponsored Banks | Serve agriculture, housing, export finance needs | Farm Credit Administration, FHFA, Ex–Im Bank | Farm Credit Banks, Federal Home Loan Banks |
FIG Investment Banking View: Deals & Valuation
| Bank Type | Typical Deal Types (FIG IB) | Key Valuation Considerations |
|---|---|---|
| Commercial Banks | Large-scale M&A, IPOs of regional banks, debt issuance, preferred equity, subordinated debt | Net Interest Margin (NIM), loan/deposit growth, credit quality (NPL ratios), cost efficiency, CET1 ratio |
| Retail Banks | Regional M&A, branch divestitures, securitizations, debt issuance | Fee income mix, mortgage pipeline, deposit costs, customer acquisition cost |
| Community Banks | Roll-up acquisitions, stock-for-stock mergers, subordinated debt raises | Core deposit base stability, local market share, efficiency ratio, tangible book value multiples |
| Credit Unions | Limited M&A (acquisitions of small banks), advisory on partnerships | Membership growth, loan portfolio quality, operating expense ratio |
| Savings & Loan Associations (Thrifts) | M&A with community banks or mortgage-heavy institutions, debt issuance | Mortgage origination volume, interest rate sensitivity, deposit base composition |
| Investment Banks | IPOs, M&A advisory (broker-dealer transactions), ECM/DCM deals | Advisory revenue, trading volumes, capital markets pipeline, ROE |
| Online-Only / Neobanks | Capital raises (Series funding), IPO readiness advisory, partnerships/JV structuring | Customer acquisition cost (CAC), churn, unit economics, tech platform scalability |
| Foreign Bank Branches/Agencies | Cross-border M&A, debt issuance, restructuring advisory | U.S. asset base, compliance posture, cross-border funding costs |
| Industrial Banks (ILCs) | Partnership structuring, debt issuance, fintech M&A | Loan portfolio yield, partner pipeline, regulatory risk (charter debates) |
| Specialized Govt.-Sponsored Banks | Advisory on funding strategies, balance sheet optimization | Mandated lending scope, funding model, interest rate risk management |
FIG 2025 Trends & Pitch Angles
| Bank Type | 2025 Industry Trends | Actionable IB Pitch Angles |
|---|---|---|
| Commercial Banks | Basel III Endgame begins July 1, 2025 with phased-in capital impacts; CRE credit scrutiny (esp. office) stays elevated; instant payments (FedNow) adoption accelerates. | Capital optimization and RWA rebalancing; balance sheet repositioning (AOCI/HTM strategies); sub debt/preferred issuance; CRE risk transfer/loan-on-loan; instant-payments enablement M&A/partnerships. |
| Retail Banks | Consumer fee model shifts after CFPB overdraft rule activity; deposit costs normalize; mortgage volumes stabilize off 2024 lows. | Fee-income redesign and pricing analytics; card/merchant acquiring partnerships; HELOC/first-lien flow sales and MSR trades; whole-loan sales and securitizations. |
| Community Banks | Consolidation pressure persists; CRE concentration and liquidity remain focal; FDIC special assessment applies only to orgs ≥$5B. | Sell-side/buy-side M&A and branch/portfolio swaps; subordinated debt and preferred raises; core processing/digital partnerships to lower cost-to-serve. |
| Credit Unions | Selective purchases of small banks continue; digital membership growth; capital/product constraints shape strategy. | Advisory on whole-bank purchases/assumptions; loan participations and ALM optimization; CUSO partnerships and fintech JV structuring. |
| Savings & Loan Associations (Thrifts) | Mortgage banking cyclicality; MSR valuations sensitive to rate path; elevated deposit betas vs pre-2022. | MSR sale/leaseback and hedging advisory; mortgage platform M&A; warehouse facilities and RMBS issuance. |
| Investment Banks | ECM/DCM steady vs 2024 with improving pipeline visibility; electronification and balance-sheet-light models continue. | Broker-dealer acquisitions and carve-outs; capital raises for growth adjacencies; tech stack modernization M&A. |
| Online-Only / Neobanks | Shift from growth to profitability; greater reliance on sponsor banks; instant payments use cases expand. | Strategic partnerships with banks/ILCs; structured capital (convertibles); acqui-hire and platform roll-ups. |
| Foreign Bank Branches/Agencies | Focus on USD funding and sanctions/compliance rigor; selective U.S. asset optimization. | U.S. portfolio sales; cross-border M&A; funding strategy advisory (CP, covered bonds, TLAC alignment). |
| Industrial Banks (ILCs) | Fintech partnerships and private-label programs remain active; continued regulatory attention. | ABS take-outs for partner-originated receivables; debt issuance; program acquisitions or JV formations. |
| Specialized Govt.-Sponsored Banks | FHLB advances remain key liquidity backstop; continued modernization of payments/funding models. | Balance sheet optimization, callable debt strategies; capital-markets funding and hedging programs. |