NAICS 551111 Quarterly Industry Report
Offices of Bank Holding Companies
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 551111Sector: Management of Companies and Enterprises (55)Updated: Q1 2026
About This Report
This industry profile for Offices of Bank Holding Companies (NAICS 551111) draws on data from the Federal Reserve Board[4], U.S. Census Bureau, and SBA size standards database[6]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, lenders, and financial analysts with current industry structure data. Additional data is drawn from Bureau of Labor Statistics[7].. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the offices of bank holding companies industry.
Industry Definition & Overview
Offices of Bank Holding Companies (NAICS 551111) encompasses legal entities primarily engaged in holding the securities of banks for the purpose of exercising control over bank operations. These entities hold ownership interests in banks but do not directly administer or manage the day-to-day operations of their banking subsidiaries. Bank holding companies operate under strict federal regulation by the Board of Governors of the Federal Reserve System[4], which supervises organizational structure and financial reporting.
About 84 percent of commercial banks in the United States operate under bank holding company structures, ranging from small community bank organizations to the largest financial institutions. More than 75 percent of small banks with assets under $100 million operate within bank holding company structures. Every bank exceeding $10 billion in assets does so. The Bank Holding Company Act of 1956[5] authorizes the Federal Reserve to regulate and supervise holding company activities including capital standards, merger approvals, and safety inspections.
Currently, about 1,070 bank holding companies operate in the United States with estimated employment of 26,035 people. Revenue flows through subsidiary ownership and dividend payments. Financial holding companies, a subset authorized under Gramm-Leach-Bliley Act provisions, may engage in securities underwriting, insurance operations, and merchant banking. Smaller community bank holding companies generate most income from traditional lending margins at their subsidiary banks.
What's Included in This Industry
- Offices managing bank subsidiary operations and policy decisions
- Parent company holding sole ownership control of banking subsidiaries
- Bank holding company regulatory filings with the Federal Reserve
- Supervision of bank subsidiary capital requirements and compliance
- Financial holding company activities and regulatory submissions
- Bank holding company merger and acquisition filings
- Ownership structures controlling one or more U.S. banks
- Regulatory reporting for organizational structure and finances
- Strategic planning and board governance for banking operations
- Top holder company operations controlling multiple bank holding companies
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Management of Companies and Enterprises | 55 |
| Subsector | Management of Companies and Enterprises | 551 |
| Industry Group | Management of Companies and Enterprises | 5511 |
| NAICS Industry | Management of Companies and Enterprises | 55111 |
| National Industry | Offices of Bank Holding Companies | 551111 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 551112 | Offices of Other Holding Companies | Offices of other holding companies that function similarly but hold securities of non-bank enterprises instead of banking subsidiaries, without Federal Reserve oversight |
| 551114 | Corporate, Subsidiary, and Regional Managing Offices | Corporate, subsidiary, and regional managing offices that directly administer subsidiary operations, unlike holding offices which exercise control without day-to-day management |
| 522110 | Commercial Banking | Commercial banking institutions that form the operational core of most bank holding company structures, generating income through lending and deposit services |
| 522130 | Credit Unions | Savings institutions and savings banks that frequently operate as subsidiaries within bank holding company organizational structures under thrift charter |
| 523150 | Investment Banking and Securities Intermediation | Investment banking and securities dealing operations that bank holding companies may own as part of expanded financial activities authorized under Gramm-Leach-Bliley |
| 524113 | Direct Life Insurance Carriers | Direct life insurance carriers that may be subsidiaries of financial holding companies classified under bank holding company structures for underwriting purposes |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 9.7% | 61 |
| 2 | Illinois | 8.7% | 55 |
| 3 | Iowa | 6.4% | 40 |
| 4 | Missouri | 5.1% | 32 |
| 5 | Minnesota | 4.9% | 31 |
| 6 | Kansas | 4.1% | 26 |
| 7 | Nebraska | 4.0% | 25 |
| 8 | Georgia | 3.5% | 22 |
| 9 | Wisconsin | 3.3% | 21 |
| 10 | Kentucky | 3.0% | 19 |
% Of Establishments
0%
10%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What types of businesses operate as bank holding companies?
Bank holding companies range from small community bank organizations owning a single bank to large multinational financial institutions controlling multiple banking subsidiaries. More than 75 percent of small banks with assets under $100 million use the holding company structure, while every bank exceeding $10 billion in assets operates through a holding company. Regional holding companies typically manage several state-based banking operations, while the largest firms control global banking, securities, and insurance subsidiaries.
How is the bank holding company industry structured?
Bank holding companies operate as parent entities owning controlling interests in one or more banking subsidiaries without directly administering daily operations. The Federal Reserve Board[4] serves as the umbrella supervisor, regulating capital standards, merger approvals, and organizational structure. About 1,070 bank holding companies currently operate in the United States with 26,035 employees. Financial holding companies, a subset, may engage in expanded activities like securities underwriting and insurance.
What is the SBA size standard for bank holding companies?
The SBA sets the size standard for NAICS 551111 at $38.5 million in annual receipts, calculated as the average for the preceding five fiscal years. This threshold determines small business status for federal contracting and SBA lending programs[6]. Most bank holding companies substantially exceed this figure due to their significant asset bases and subsidiary operations.
What related NAICS codes apply to bank holding companies?
Key related codes include NAICS 551112 for non-bank holding companies with similar control functions, NAICS 551114 for managing offices that directly administer operations, and NAICS 522110 for the commercial banks forming holding company cores. Additional codes include NAICS 522130 for savings institutions, NAICS 523150 for investment banking and securities dealing, and NAICS 524113 for insurance carriers that may be holding company subsidiaries. The U.S. Census Bureau[8] maintains the official NAICS classification structure.
What industries are closely connected to bank holding companies?
Savings institutions (NAICS 522130) frequently operate as holding company subsidiaries. Securities exchanges and dealers (NAICS 523210) represent markets where holding companies invest institutional capital. Accounting firms (NAICS 541211) provide regulatory compliance and audit support. Management consulting (NAICS 541611) assists with organizational planning. Investment fund management (NAICS 525910) involves asset management subsidiaries serving institutional and wealth management clients.
What specific activities are included in this industry classification?
Included activities cover holding bank subsidiary securities and exercising controlling influence over management decisions, filing organizational reports with the Federal Reserve[4], maintaining subsidiary capital adequacy, managing merger and acquisition processes, and operating as top holders controlling multiple subsidiary holding companies. Financial holding companies may also engage in securities underwriting, insurance activities, and merchant banking authorized under Gramm-Leach-Bliley Act provisions.
Can bank holding companies access SBA loan programs?
Smaller bank holding companies operating below the $38.5 million size threshold may access SBA loan programs[9] including 7(a) loans, 504 loans, and microloans. However, most institutions substantially exceed the size standard and do not qualify. Large bank holding companies are already well-capitalized financial institutions with direct access to capital markets, reducing reliance on government lending programs.
Which states have the highest concentration of bank holding companies?
Bank holding company concentration follows banking asset distribution patterns. New York hosts headquarters of major institutions like JPMorgan Chase. California contains substantial banking operations and investment management subsidiaries. Texas represents a major hub for regional banking concentrated in Dallas, Houston, and San Antonio. Federal deposit concentration limits cap any single holding company at ten percent of nationwide deposits and 30 percent in individual states, preventing excessive geographic consolidation.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]Federal Reserve System federalreserve.gov
- [5]Bank Holding Company Act of 1956 federalreserve.gov
- [6]SBA size standards database sba.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]U.S. Census Bureau census.gov
- [9]SBA loan programs sba.gov
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