Governor Steve Beshear announced U.S. Bank, a subsidiary of U.S. Bancorp, plans to expand its mortgage operations in Owensboro by adding a new facility and 332 jobs with an investment of more than $15.2 million.
“Simply put, this is a victory not only for the Commonwealth, but also for Owensboro and for U.S. Bank,” said Gov. Beshear. “U.S. Bank plans to add 332 employees and invest more than $15.2 million in this expansion. This project proves how successful this area has been for this respected institution and shows U.S. Bank’s commitment to a promising future here in Kentucky.”
U.S. Bank is the fifth-largest bank in the United States, with 3,084 branches in 25 states, and 40 U.S. Bank Home Mortgage production offices nationwide. The new office brings the total number of U.S. Bank Home Mortgage operations centers in Owensboro to six.
The service centers support U.S. Bank’s portfolio of more than 1.6 million mortgage loans that total approximately $266 billion in balances. The expansion in Owensboro will meet increased demand for U.S. Bank’s mortgage services.
“U.S. Bank first opened a mortgage servicing center in Owensboro in the late ‘70s,” said Bob Smiley, executive vice president and head of servicing for U.S. Bank Home Mortgage. “Since then, we’ve grown to nearly 1,900 employees in Owensboro. In 2011, we announced that we would be adding 500 jobs to the community. Our mortgage company has added $31 billion in outstanding balances and 163,000 new customers over the past 12 months, which has prompted us to make the additional investments Gov. Beshear announced today and grow our servicing capacity.”
To encourage the investment and job growth in Owensboro, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $2,875,000 through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.
KEDFA also approved U.S. Bank for tax benefits up to $125,000 through the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.
“I am thrilled with the expansion of U.S. Bank in the area,” said Sen. Joe Bowen, of Owensboro. “Owensboro is making its mark with many industries, and I welcome the growth of our financial services.”
“I want to thank U.S. Bank for deciding to make such a major investment and to add so many new jobs to our area,” said Rep. John Arnold Jr., of Sturgis. “I also appreciate the work our local and state officials have done to help make this possible. This is definitely great news.”
“The economic partnership the city of Owensboro has found in U.S. Bank has been a great success,” said Owensboro Mayor Ron Payne. “U.S. Bank has contributed to a 70 percent increase in Owensboro’s GDP in the financial sector, jumping from $400 million prior to the growth of U.S. Bank to more than $680 million recently. This third expansion will create approximately 330 more jobs within the city. Owensboro is proud to support this employer as they continue to thrive.”
“Daviess County Fiscal Court is pleased to see the expansion of U.S. Bank at its Mid America Air Park location,” said Daviess County Judge-Executive Al Mattingly. “The 330 new jobs will provide employment for the Owensboro-Daviess County community, and the expansion is an encouraging sign of continued economic recovery.”
For more information on U.S. Bank, visit www.usbank.com.
Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook at www.Facebook.com/ThinkKentucky or follow on Twitter at www.Twitter.com/ThinkKentucky.
A detailed community profile for Owensboro (Daviess County) can be viewed at http://www.thinkkentucky.com/edis/cmnty/index.aspx?cw=044.
The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2012 totaled nearly $2.7 billion with the creation of more than 14,000 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at www.ThinkKentucky.com.
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