had 4,750 community banks with more than 29,000 branches throughout the country, according to the FDIC’s 2020 Community Banking Study, the latest study available. They may have less-structured underwriting for credit decisions than big banks, making it possible for consumers and small businesses to get approved for credit that may not meet the requirements of a larger bank.Īs of the end of 2019, the U.S. Community banks tend to be more likely to be privately owned and locally controlled, unlike larger publicly traded banks owned by stockholders.Ĭommunity banks are generally considered “relationship bankers” who have a close relationship with their customers and special knowledge and expertise of their local communities. The FDIC also describes community banks as providing traditional banking services in local communities, obtaining deposits locally and providing many of their loans to local businesses. As mentioned above, community banks are generally defined as those with less than $10 billion in assets, according to the FDIC.
