Industrial loan company

An industrial loan company (ILC) or industrial bank is a financial institution in the United States that lends money, and may be owned by non-financial institutions. They provide niche financial services nationwide. ILCs offer FDIC-insured deposits and are subject to FDIC and state regulator oversight. All "FDIC-insured entities are subject to Sections 23A and 23B of the Federal Reserve Act, which limits bank transactions with affiliates, including the non-bank parent company."[1] ILCs are permitted to have branches in multiple states (which is permitted by many states on a reciprocal basis). They are regulated and supervised by state-charters and insured by the Federal Deposit Insurance Corporation. They are authorized to make consumer and commercial loans and accept federally insured deposits. Banks may not accept demand deposits if the bank has total assets greater than $100 million. ILCs are exempted from the Bank Holding Company Act.

ILCs assist numerous charities and provide millions of dollars annually in grants, low interest loans, and service through the Community Reinvestment Act (CRA). Currently, only seven states offer an ILC bank charter. Most ILCs have been chartered by the Utah Department of Financial Institutions.[2] Other states permitting ILCs include California, Colorado, Minnesota, Indiana, Hawaii, and Nevada.

U.S. Industrial BanksTotal Assets as of September 30, 2021 (Figures in Millions)[3]
Balboa Thrift and Loan Association320,343
Beal Bank USA5,752,953
BMW Bank of North America11,647,749
Celtic Bank2,712,631
Comenity Capital Bank9,469,582
Community Commerce Bank324,319
Eaglemark Savings388,708
Finance Factors, Ltd551,608
First Electronic Bank63,900
Hatch Bank 466,319
LCA Bank Corporation180,341
Medallion Bank1,480,084
Merrick Bank4,357,924
Minnesota First Credit and Savings25,161
Nelnet Bank 413,155
Optum Bank, Inc14,624,612
Pitney Bowes Bank, Inc.796,185
Sallie Mae Bank28,740,416
Square Financial Services 163,933
Toyota Financial Savings Bank3,597,650
The Morris Plan Company of Terre Haute123,361
UBS Bank USA103,662,107
USAA Savings Bank1,966,330
WebBank1,441,759
WEX Bank3,287,721

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