Strength of Minority Depository Institutions: 2025 National Bankers Association Research

In 2025, the National Bankers Association (NBA) conducted groundbreaking research highlighting the strength of the Minority Depository Institution (MDI) sector and emphasizing its continued important role in fostering economic inclusion, advancing social impact, and supporting underserved communities.  

Our flagship research from the year includes our State of MDIs report and annual member survey, as well as a spotlight on Native MDIs, an analysis of credit health in MDI communities, and an exploration of the social impact of MDIs as employers. We also published research blog posts this year on building trust in the banking sector, increasing financial inclusion in banking, investing, and retirement, and strengthening homeownership in the city of Detroit. 

Below, we share key findings from our research from this year:  

State of MDIs 

In our latest State of MDIs report, we showcase the strength of the sector: 153 MDIs collectively hold $381 billion in assets and operate more than 1500 branches nationwide. We also highlight the strong year-over-year growth in the sector: net loans and leases grew by 5.1%, while deposits and bank equity increased by 7.7% and 7.4%. Additional key findings from this report include: 

• Consistent with their mission, MDIs locate in and serve communities with higher rates of economic hardship and minority residents.  

• MDI financial performance is broadly on par with other community banks across key indicators including efficiency ratios and net charge-off rates.  

• The 15 banks in our lending analysis originated more than $2.6 billion in 2024, investing in every state and Washington, D.C. As in past years, significant shares of MDI lending went to communities with elevated economic hardship and minority populations. 

  
  

MDI Member Survey 

The 2025 Survey of MDI Leaders showed that bank executives are motivated to grow, with almost 80% of banks aiming to move into the next asset size band. Bank leaders emphasize principled and sustainable growth and are optimistic about local markets and their ability to continue to originate loans and increase their non-interest fee income. Some additional findings from the report include: 

• The main pain points for our members include deposits/liquidity (63%), technology (58%), and talent (37%). 

• Investing in technology remains a core focus, though the main barriers continue to be cost (76%), difficulty integrating with existing systems (58%), and lack of technical expertise (53%.)  

• Our member banks are still in the early stages of determining how best to leverage AI but see potential use cases in customer service (44%), marketing (25%), and workforce training (19%.) 

  
  

Spotlight on Native MDIs 

Native American Minority Depository Institutions (MDIs) are mission-driven community banks that primarily serve the country’s Native American population, both on and off reservation. Tribal Governments or tribal-enrolled members directly own a significant number of Native MDIs. Native MDIs build trust with Native borrowers and their communities based on shared values, flexible underwriting, and a commitment to financing community development. In our report, we explore this vital sector, highlighting its size, structure, growth, geographic footprint, and lending activity. Key findings from the report include: 

• As of year-end 2024, there are 20 Native MDIs with a combined 99 branch locations across 11 states. Over half (59%) of Native MDI bank branches are in Native Land Areas.  

• Native MDIs’ assets and deposits have grown significantly over the last five years, but are still a small fraction relative to the full MDI sector and the community banking sector. Across most financial performance metrics, Native MDIs look comparable to the broader MDI sector and to other community banks. 

• At year-end 2024, Native MDIs collectively held almost $6 billion in loans and leases on their balance sheets. A majority of the Native MDI loan portfolio is in real estate, including mortgages (27.7%), commercial real estate (26.3%), and construction (12.2%). 

  
  

Credit Health and Alternative Credit in MDI Communities 

In previous analysis of TransUnion credit data, we found that communities with at least one MDI branch present have better credit health – as measured by factors like credit score, total credit available, credit utilization, and delinquency rates – relative to demographically similar communities that do not have an MDI branch. This year’s report extends our TransUnion partnership to examine both mainstream and alternative credit use. We compare outcomes in communities both with and without MDIs, and provide a detailed profile of the typical alternative credit user in MDI communities. Key findings from the report include: 

• There is credit health heterogeneity both within and across communities served by MDIs. 

• MDI presence is linked to modest declines in alternative credit inquiries, especially in majority minority neighborhoods. 

• Those using alternative credit typically have very poor credit scores, and are highly credit constrained. The average alternative credit user appears to borrow out of necessity, rather than preference. 

  
  

Special Report: MDI Impact As Employers 

This special report was produced through a collaborative initiative of the National Bankers Association and Fiserv, in partnership with Lunum. Drawing on data from 11 participating Member MDIs, and one emerging MDI, this report offers a representative view of the sector’s workforce and community impact. By examining core dimensions such as wages, employee well-being, and workforce stability, the findings illuminate both the sector’s strengths and opportunities for growth, reinforcing the importance of MDIs as models of inclusive, mission-driven banking. Key findings from this report include: 

• Participating MDIs achieved an average BrightStar Score of 65, surpassing the 64 scored by a benchmark group of industry peers.  

• Wage Quality: MDIs averaged a score of 53, with most paying above local living wage benchmarks, though equity gaps persist in some job categories.  

• Well-Being: On average, MDIs scored at 43, reflecting meaningful investment in benefits, with room to deepen support programs and ensure equitable access across staff levels.  

• Retention: MDIs averaged a retention score of 74 (with attrition near 13%), outperforming many peers and underscoring their ability to keep talent engaged despite resource constraints. 

  
  

Notable Research and Publications from NBA Partners 

In addition to our own research, other organizations and firms have released excellent research relevant to the sector. This notable research includes a report from the American Bankers Association (ABA) on MDIs and mortgage lending, a report from Urban Institute on credit outcomes for business owners who receive CDFI loans, and a report from CNote on how community banks and credit unions are driving economic growth.    

Finally, we also want to highlight two new books from friends of the NBA. First, Next City journalist Oscar Abello’s new book The Banks We Deserve, highlights the ongoing significance of community banks and shows how this sector is integral to creating a just economy. Second, Brookings Institution scholar Andre Perry’s new book, Black Power Scorecard, provides insights on how to measure the wealth gap and what we can do to close the gap and strengthen communities.