Description

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 communities based on shared values, flexible underwriting, and a commitment to financing community development. This report explores this vital sector, highlighting its size, structure, growth, geographic footprint, and lending activity.​

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Key Insights:

 

• As of year-end 2024, there are 20 Native MDIs with a combined 99 branch locations and over 1,800 employees.

• Over half (59%) of Native MDI bank branches are in Native Land Areas. Lumbee lands have the most Native
  MDI branches (12%), followed by Cherokee (9%), Choctaw (6%), Creek (6%), and Cheyenne and Arapaho (5%).

• Native MDIs have a presence in 11 states. Oklahoma has the most bank branches (61%), followed by North Carolina
  (13%), Minnesota (7%), and Missouri (5%).

• Native American life expectancy in communities with Native MDIs is higher than national Native American life expectancy (69 versus 66 years), though both still lag the national life expectancy (76 years).

• 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%).

 

Implications:

 

The Native MDI sector may be small, but it has an outsized impact on generating wealth and economic opportunity
in Indian Country. To continue expanding the sector’s reach:

 

• Corporations and other private sector entities can provide investments, especially Tier 1 equity and deposits to Native MDIs. This grows the banks’ balance sheets and enables more lending.

• Philanthropy and impact investors can leverage endowments through Mission-Related Investments and Program-Related Investments, create loan loss reserves, or take first loss positions in investment stacks to mitigate risk and catalyze more investment.

• Governments at the federal, state, and local levels can partner with Native MDIs as part of broader efforts to address affordable housing, small businesses, and other priority areas. The government can leverage tax credits, grants, contracts, purchasing agreements, and other policy tools to support Native community finance and economic development.

 

Published May 22, 2025

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Download Native MDIs: Cultivating Economic Sovereignty

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