Executive Summary​

The nation’s 155 Minority Depository Institutions (MDIs) are mission-driven banks that empower people and communities to save, build, and invest. MDIs provide essential financial services to those that mainstream financial institutions have traditionally left unserved, growing the economy from the ground up and ensuring the resiliency of Main Streets across the country.

​

Released annually by the National Bankers Association (NBA), the State of MDIs covers developments in the size, scale, and impact of the MDI sector. In this year’s report, we provide an overview of the sector, discuss trends in financial performance, explore community development impacts, and summarize qualitative insights from bank leaders.

​

The 2026 State of MDI report key findings include the following:

• As a sector, 155 MDIs collectively hold $403 billion in assets and operate over 1,500 branches across 42 states and territories. Most MDIs are modestly sized, with a median of approximately $475 million in assets and 4 bank branches.

• MDI financial performance has largely recovered from the COVID-19 pandemic shocks. Aggregate MDI net income hit a record high of $4.95 billion in 2025, and the balance sheet continued to expand, with asset quality stabilizing and remaining manageable. Despite this aggregate strength, some MDIs still face tough local market conditions, and national economic trends remain a source of potential uncertainty.

• MDI lending continues to have important local impacts. Approximately 700,000 people held an open credit product with an MDI at year-end 2025, new data shows. Recent NBA research documented the work MDIs do to reach all members of their communities, with a particular focus this year on mortgage and small-business lending.

• Bank executives are cautiously optimistic. Confidence in the national economy was down, but local economic confidence was up. Over half (54%) of banks were actively considering mergers and acquisitions, and technology investments remained a top priority.