What Is a Regional Bank?

A regional bank is a financial institution that operates in several states, offering many of the same products as national banks—like checking accounts, savings accounts, and loans—but with a stronger local focus.

Unlike national banks that serve customers nationwide, or community banks that operate in a single city or region, regional banks strike a balance: they’re large enough to provide a wide range of services yet small enough to stay closely connected to the communities they serve.

Choosing between a regional, national, or community bank can affect everything from your fees and interest rates to how personalized your banking experience feels. This guide breaks down what regional banks offer, how they compare to other banks, and how to decide if one is right for you.

What Is a Regional Bank?

A regional bank is a financial institution that operates in multiple states but does not have the nationwide presence of a large national bank. These banks typically hold between $10 billion and $100 billion in assets, putting them in size between community banks and national banks.

They offer many of the same products you would find at larger banks, including checking accounts, savings accounts, personal loans, and business financing. The difference is in their focus.

Regional banks aim to serve specific geographic areas, which allows them to stay connected to local needs while still offering a broad range of services.

Regional Bank vs. National and Community Banks

Choosing between a regional, national, or community bank often comes down to service style, geographic reach, and product variety. This comparison can help you see the differences at a glance.

Feature	Regional Banks	National Banks	Community Banks
Geographic Reach	Several states	Nationwide or international	One city or small region
Asset Size	$10B–$100B	Over $100B	Under $10B
Service Style	Personalized with local market expertise	Standardized across all markets	Highly personal and community-focused
Product Variety	Wide selection, but fewer niche products than national banks	Very wide selection, including specialized services	Limited to basic banking products
Technology	Competitive online and mobile banking	Industry-leading tech features	Varies widely

See also: Best National Banks in America for 2025

Key Features of Regional Banks

Regional banks offer a mix of local expertise and broader service options. Their size and focus make them appealing to customers who want more than a small-town bank can offer but still value personal relationships.

Common features include:

• Local market knowledge: Staff understand regional industries and can offer products tailored to them.
• Broad product range: Checking accounts, savings accounts, money market accounts, certificates of deposit, personal loans, and business financing.
• Community involvement: Sponsorships, local charitable giving, and support for area events and businesses.
• Competitive rates: Often able to offer better rates on deposits and loans compared to large national banks.
• Accessible service: A balance of in-branch service and modern online banking tools.

Pros & Cons of Regional Banks

Like any financial institution, regional banks have strengths and limitations. Knowing both can help you decide if they fit your needs.

Pros

• Personalized service: Staff often know customers by name and offer tailored advice.
• Community focus: Funds are reinvested locally, supporting area businesses and initiatives.
• Competitive rates: May offer better interest rates and lower fees than national banks.

Cons

• Limited reach: Smaller branch and ATM network, which can be inconvenient for frequent travelers.
• Fewer specialized services: May not have the same range of international banking, advanced investment options, or niche loan products as large national banks.

Services Offered by Regional Banks

Regional banks provide a wide mix of personal, business, and investment banking options. While their offerings may not be as specialized as those of large national banks, they still cover most needs for individuals and local businesses.

Personal Banking

• Checking accounts: Everyday spending accounts with debit cards, online bill pay, and mobile check deposit.
• Savings accounts: Interest-bearing accounts for short- or long-term goals.
• Money market accounts: Higher interest rates than standard savings with limited check-writing privileges.
• Certificates of deposit: Fixed-rate savings products with set terms.
• Personal loans and lines of credit: Financing for expenses such as home repairs, debt consolidation, or major purchases.
• Credit cards: Cards with rewards programs, low introductory rates, or balance transfer offers.

Business Banking

• Business checking and savings: Accounts designed for managing cash flow and daily operations.
• Small business loans: Financing for equipment, expansion, or working capital.
• Commercial real estate loans: Funding for property purchases, construction, or refinancing.
• Merchant services: Payment processing solutions for retail or online businesses.

Investment services

• Retirement accounts: IRAs and other tax-advantaged savings plans.
• Wealth management: Financial planning and portfolio management for individuals and business owners.
• Brokerage services: Access to stocks, bonds, mutual funds, and other investments.

How Regional Banks Support Local Economies

Regional banks channel a significant portion of their lending into local projects and businesses. By focusing on industries that drive the regional economy—such as agriculture, manufacturing, or tourism—they help create jobs and keep money circulating within the community.

These banks also sponsor events, contribute to local nonprofits, and partner with schools or civic programs. This type of targeted support strengthens economic stability and promotes long-term community growth.

Popular Regional Banks in the U.S.

While each regional bank serves specific states, many have built strong reputations for service, product offerings, and community involvement.

• Fifth Third Bank: Based in the Midwest, offering personal and business accounts, mortgage products, and competitive deposit rates.
• KeyBank: Headquartered in the Northeast, known for personal banking, business financing, and wealth management services.
• Regions Bank: Serving the South, offering checking, savings, loans, and investment services with a focus on community lending.
• Zions Bank: Operating in the Western states, specializing in business banking while also offering personal accounts and loans.
• Huntington National Bank: Midwest-based with a strong customer service reputation and a range of consumer and small business products.
• M&T Bank: Concentrated in the Northeast and Mid-Atlantic, offering personal, commercial, and wealth management services.
• Comerica Bank: Serving Texas, Michigan, and California, with strengths in business lending and personal banking.

How to Choose Between a Regional and National Bank

The right choice depends on your lifestyle, travel habits, and financial needs. Ask yourself:

• Do I value personal relationships with bank staff?
• Do I want my deposits to directly support local businesses and initiatives?
• Do I need a large branch and ATM network across the country?
• Do I require specialized services such as international banking or complex investment products?

If you want personalized service and mainly bank within a certain region, a regional bank may be the best fit. If you travel often or need a wider selection of specialized products, a national bank may work better.

How to Switch to a Regional Bank

Switching to a regional bank can be simple if you follow a clear process.

1. Research banks in your area: Compare products, fees, interest rates, and online tools.
2. Open your new account: Provide identification, Social Security number, and proof of address.
3. Transfer funds: Move money from your old account while leaving enough to cover any pending payments.
4. Update direct deposits and bill payments: Give your employer and service providers your new account details.
5. Close your old account: Once all transactions have cleared, close it and collect any remaining balance.

Conclusion

Regional banks offer a balance of convenience, service, and local connection that appeals to many customers. They provide most of the services found at national banks while maintaining a stronger focus on the communities they serve.

If you value personalized attention, competitive rates, and the chance to support local economic growth, a regional bank could be the right fit for your finances. By weighing your priorities and comparing options, you can choose the bank that best matches your needs.