EDCUTAH INDUSTRY PROFILE FY FINANCIAL SERVICES IN UTAH

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1 EDCUTAH INDUSTRY PROFILE FY FINANCIAL SERVICES IN UTAH

2 MAJOR UNIVERSITIES AND COLLEGES O N T H E COV E R National Bank of Park City $5 Bill After the banking crash of 187 a national currency was established to even out the ups and downs of local currency valuation. Individual banks, working with the national treasury, would issue currency based on a combined value of their holdings plus bonds held by the treasury. M A J O R E M P LOY E R S 1 Utah State University 4 Westminster College 7 Brigham Young University 2 Weber State University 5 Salt Lake 8 Southern Utah University University of Utah Dixie State University Community College 1 America First Credit Union 2 American Express Deloitte & Touche 4 Deseret Mutual Benefit Administration 5 Discover Products 6 Edward Jones 7 Ernst & Young 8 Fidelity Investments Goldman Sachs 10 JP Morgan Chase Bank 6 Utah Valley University LOGAN 1 OGDEN 2 1 A SALT LAKE CITY 4 5 A B C Venture, Industrial Banking, and So Much More. Industry Utah is proud to be home to companies like Goldman Sachs, Zions Bank, Discover Products, Wells Fargo, JP Morgan Chase, and many others. Utah is one of the top states in the nation for Financial Services employment with an employee base of over 75,000 people. Just two of Utah s efforts to align education and industry are the Utah Association of Financial Services, which promotes and fosters the financial services industry in Utah, and the University Venture Fund, which provides college students with opportunities to be engaged in real-world venture capital projects. Utah has a robust industrial banking industry. Utah is home to the highest number of industrial banks in the nation with 15 chartered industrial banks, eight of which are in the top ten industrial banks in the country by asset size. Business Climate Forbes Magazine has recognized Utah as The Best State for Business & Careers six of the past seven years. U p d a t e d N o v KeyBank 12 KPMG 1 Leavitt Group 14 Merrill Lynch 15 Morgan Stanley 16 Prestige Financial Services 17 Pricewaterhouse-Coopers 18 Regence BlueCross BlueShield 1 Select Portfolio Servicing 20 U.S. Bank 21 UBS Bank 22 Wells Fargo Bank 2 Willis Towers Watson 24 Zions Bancorporation PROVO 6 7 From , Utah s post-performance tax incentives facilitated nearly 25,000 new jobs and more than $2.5B in capital investment. In 2017, the Tax Foundation ranked Utah s Total Tax Climate as the th best in the nation. Since 2011, Utah has eliminated or modified nearly 400 business regulations to ease the burdens placed on businesses. MOAB There are a wealth of financial services education resources in Utah, with 11 institutions offering programs related to financial services. Brigham Young University is nationally acclaimed for their accounting and finance programs. Utah has an abundance of Consumer and Commercial Banking companies with more than 15,000 people employed in these industries. C 8 ST. GEORGE Allstate Bear River Mutual Insurance 27 Mountain America Credit Union 28 SelectHealth 2 Sutter Connect 0 E Trade 1 Exeter Finance 2 Progressive Leasing B Workforce Utah s Financial Services industry has experienced employment growth of over 2% over the past 5 years. The Governor s Office of Economic Development has identified Financial Services as a targeted industry cluster for support and development in Utah, and a key area for economic investment

3 Major Financial Services Employers C O M PA N Y E M P LOY E E S * DESCRIPTION Allstate Allstate is a financial services company that provides vehicle insurance, property insurance, life insurance, and other forms of financial services. America First Credit Union American Express Bear River Mutual Insurance Deloitte & Touche 50- Deseret Mutual Benefit Administration Discover Products 000- E Trade Edward Jones Ernst & Young Exeter Finance Fidelity Investments Goldman Sachs JP Morgan Chase Bank KeyBank map #25 map #1 map #2 map #26 map # map #4 map #5 map #0 map #6 map #7 map #1 map #8 map # map #10 map 11 KPMG Leavitt Group map #12 map #1 America First Credit Union is one of the largest and most stable credit unions in the nation, and is the largest credit union in Utah. American Express is a direct banking and payment services firm best known for its credit card, charge card, and traveler s cheque businesses. Bear River Mutual Insurance is Utah s oldest mutual property and casualty insurance company, offering personal property and casualty insurance. Deloitte and Touche is an accounting, audit, and risk management firm, and is one of the Big Four auditing firms. Deseret Mutual is a non-profit organization that administers medical, dental, disability, life insurance, flexible spending, and other welfare plans. Discover Products is a direct banking and payment services firm which issues the Discover Card and operates the Discover and Pulse networks. E Trade is a financial services firm offering a full suite of online brokerage, investing and related banking solutions. Edward Jones is an investment and wealth management firm that serves investment clients in the U.S. and Canada. The firm focuses solely on individual investors and small businesses. Ernst & Young is a multinational professional services firm. It is one of the Big Four audit firms and is the third largest professional services firm in the world. Exeter Finance is an independent, specialty auto finance firm providing services to vehicle owners, auto dealers, and their investors. Fidelity Investments is a multinational financial services corporation and is the fourth largest mutual fund and financial services group in the world. Goldman Sachs is a banking firm that engages in global investment banking, investment management, securities, and other financial services, primarily with institutional clients. JP Morgan Chase Bank is an investment banking and financial services firm for consumers, small-businesses, commercial banking, asset management, and private equity. KeyBank is a retail and commercial bank with clients in retail, small business, corporate, and investment. It is the 22nd largest bank in the United States based on total deposits and is the 2th largest bank in the United States by total assets. KPMG is an accounting firm providing audit, tax, and advisory services, and is also one of the Big Four audit firms. Leavitt Group is an insurance brokerage firm that provides risk management solutions to businesses and individuals. *SOURCE : Utah Department of Workforce Services Fidelity Investments regional headquarters in Salt Lake City. Exceter Finance specializes in making vehicle ownership possible for everyone.

4 C O M PA N Y E M P LOY E E S * DESCRIPTION Merrill Lynch Merrill Lynch in a financial services company that specializes in investments, banking, retirement, estate planning, and other financial planning services. Morgan Stanley Mountain America Credit Union Prestige Financial Services 500- PricewaterhouseCoopers Progressive Leasing 500- Regence Bluecross Blueshield Select Portfolio Servicing 500- SelectHealth Sutter Connect U.S. Bank UBS Bank 50- Wells Fargo Bank 000- Willis Towers Watson (Formerly Extend Health) Zions Bancorporation map #14 map #15 map #27 map #16 map #17 map #2 map #18 map #1 map #28 map #2 map #20 map #21 map #22 map #2 map #24 Morgan Stanley is an investment banking and brokerage firm, whose main areas of business are Global Wealth Management, Institutional Securities, and Investment Management. Mountain America Credit Union is a nonprofit credit union founded in 14 and is the second largest credit union in Utah. Prestige Financial Services is a provider of consumer financial services for both franchised and independent automobile dealerships across America. PricewaterhouseCoopers is an accounting, auditing, and consulting firm, and is one of the Big Four audit firms. Progressive Leasing is a financial services firm offering financing options and credit to consumers of retail stores and merchants. Regence BlueCross BlueShield of Utah is a health insurance firm that was founded in 142 as the state s first health insurer. Select Portfolio Servicing is a mortgage servicer specializing in single-family residential mortgages. SelectHealth is a not for profit insurance organization serving members in Utah and Idaho. They specialize in health, dental, medicare, medicaid, and federal employee benfits. Sutter Connect is a satalite office for Sutter Physician Services to provide additional capacity and maximize affordibility and maintain high standards of service. U.S. Bank is the nation s fifth-largest commercial bank and offers products for mortgage, investment, and other loans and credit cards. UBS Bank provides wealth management, asset management, and investment banking services for private, corporate, and institutional clients worldwide. Wells Fargo is a worldwide financial services firm providing banking, insurance, investments, mortgage, and consumer and commercial finance. Willis Towers Watson is a global advisory and brokerage firm and a technology leader in the health insurance industry. Zions Bancorporation is a national leader in SBA lending, public finance advisory services, and agricultural finance. *SOURCE : Utah Department of Workforce Services Front and back of a $5 gold piece from the Deseret Assay Office. When pioneers first arrived in the Salt Lake Valley, U.S. coins and currency were hard to come by, so they followed the practice of the day and started minting their own. Another popular movement of the time was the creation of new alphabets. The letterforms surrounding the lion are part of the Deseret alphabet developed under the direction of Brigham Young. Utah s first chartered savings bank and trust company. Zion s Bank opened in 187. This is their historic downtown location.

5 Recent Announcements Alliance Data Systems expands in Utah, bringing 770 new jobs (2017) Alliance Data expands in Utah, adding hundreds of jobs to the community and an estimated $15.6 million in capital investment. Alliance Data has operated Comenity Bank, headquartered in Utah, since 200. Alliance Data s card services business is a leading provider of tailored marketing and loyalty solutions, delivered through branded credit programs that drive more profitable relationships between retailers and their card members. Varo Money brings 1 jobs and new office to Utah (2017) Varo Money is opening a new office in Utah, adding up to 1 jobs over the next 5 years. Varo Money is an all-in-one mobile banking platform aimed at helping credit-worthy millennials manage monthly expenses and accumulate savings. The projected new state wages over the life of the agreement are expected to be approximately $44,500,000. Projected new state tax revenues, as a result of corporate, payroll, and sales taxes, are estimated to be $1,681,10. Womply to Join Silicon Slopes (2016) Womply will open a Utah office, adding up to 175 high-paying jobs to the community. Founded in San Francisco in 2011, Womply uses technology and data to grow, protect and simplify small business. We are thrilled to be expanding into Utah County and to tap into the great pool of local talent, said Cory Capoccia, president of Womply. We aim to build a lasting presence in the area. Sofi Picks Utah for Regional Office (2016) SoFi is opening a regional office in Utah, adding up to 400 jobs to the community. SoFi is an exciting disruptive company in both finance and technology, said Val Hale, executive director of GOED. SoFi has indicated that the project will create up to 400 jobs over the next five years. The projected new state wages over the life of the agreement are expected to be approximately $108. million. Goldman Sachs to Expand its Presence in Utah (2014) The 222 building in downtown Salt Lake City, and Goldman Sach s new home. They are currently the largest leasee of the property with seven floors, and growing. Goldman Sachs plans to hire an additional 50 people with capital investment up to $40,000,000. It goes without saying that part of the economic success Utah has experienced over the last decade can be credited to Goldman Sachs investing in Utah, said Governor Gary R. Herbert. The continued growth of Utah s vibrant financial industry and this internationally respected company in Utah speaks volumes about the business friendly environment the state has created.

6 Cost Profile Occupational Wages in Financial Services $150K Financial Services Industry Average Wage UTAH $65,720 CALIFORNIA $10,620 ILLINOIS $105,50 NEW YORK $18,720 NORTH CAROLINA $85,0 NATIONAL $5,0 UTAH $,200 CALIFORNIA $14,150 ILLINOIS $111,270 $175,680 NEW YORK NORTH CAROLINA $125,810 NATIONAL $121,750 UTAH $6,070 CALIFORNIA $74,170 ILLINOIS $67,070 NEW YORK $80,440 NOR. CAR. $66,50 NATIONAL $68,150 UTAH $7,680 CALIFORNIA $4,440 ILLINOIS $78,00 NEW YORK $101,770 NO. CAROLINA $76,860 NATIONAL $81,760 UTAH $2,510 CALIFORNIA $40,020 ILLINOIS $6,510 NEW YORK $6,40 NO. CAR. $4,40 NATIONAL $5,50 SOURCE: Bureau of Labor Statistics, May 2015 UTAH $2,220 CALIFORNIA $7,110 ILLINOIS $,40 NEW YORK $6,120 NO. CAR. $1,200 NATIONAL $2,00 Financial Managers Accountants & Auditors Financial Analysts Bill & Account Collectors Customer Service Representatives Other Comparative Wages in Financial Services OCCUPATION UTAH CALIFORNIA ILLINOIS NEW YORK NORTH CAROLINA NATIONAL Claims Adjusters Examiners & Investigators $5,180 $67,670 $64,80 $64,40 $61,0 $6,680 Real Estate $ UTAH $ CALIFORNIA $11.82 ILLINOIS $17.5 NEW YORK $1.18 NO. CAR. $142.7 SOURCE: RSMeans NATIONAL $ $ UTAH $15.71 CALIFORNIA $2.08 ILLINOIS $16.0 NEW YORK $26.62 NO. CAR. $17.47 SOURCE: Loopnet N/A Credit Analysts $48,70 $76,050 $62,510 $101,10 $78,40 $6,0 Personal Financial Advisors $68,100 $102,640 $81,80 $12,240 $82,00 $0,50 Insurance Underwriters $5,520 $72,620 $68,820 $80,250 $74,110 $67,680 Financial Examiners $70,10 $,220 $5,60 $100,50 $7,710 $7,280 Bookkeeping Accounting and Auditing Clerks $6,050 $44,050 $8,00 $42,100 $6,850 $8,0 Tellers $25,020 $28,770 $26,520 $28,810 $28,780 $27,260 Insurance Claims & Policy Processing $6,70 $40,120 $41,140 $45,500 $40,20 $8,40 Utilities Taxes $ Office Construction ($/sq.ft.) UTAH 8.8 NO. CAR. 8.6 NATIONAL 10.7 Office Lease ($/sq.ft.) Electricity / Commerical ( /kwh) Natural Gas / Commercial ($/1000 Feet ) UTAH $6 CALIFORNIA 15.7 CALIFORNIA $1,85 ILLINOIS 8. $2,007 ILLINOIS NEW YORK $2,581 NEW YORK 14.8 NO. CAR. $51 $1,421 NATIONAL $ % 8% 6% 4% 2% 5% Flat Rate UTAH $7.40 UTAH 8.84% Flat Rate CAL. $8.2 CALIFORNIA 7.75% Top Rate ILLINOIS $1.6 SOURCE: Energy Information Administration, Aug 2017 ILLINOIS 6.5% Flat Rate NEW Y. $5.8 NEW YORK 4% Flat Rate NO. CAR. $.07 NO. CAR. 6.87% NAT. $8.7 NATIONAL EDCUTAH FINANCIAL SERVICES PROFILE *SOURCE: Department of Workforce Services & Bureau of Labor Statistics Property Tax (Collections per capita) Corporate Income Tax SOURCE: taxfoundation.org

7 Areas of Excellence BMW Bank of North America WEX Bank Comenity Bank Optum Bank Areas of Excellence are industry sub-sectors in which Utah has a competitive advantage due to our infrastructure, trained workforce, historical expertise, and community support. The diagram below shows the collaboration and interrelationship of Utah s business accelerators, educational institutions, government initiatives, and companies within the financial services industry. 1 The University Venture Fund (UVF) is an investment firm that partners with well-known venture capital and private equity firms to provide college students with opportunities to perform realtime due diligence and engage in value-add projects. 2 Cougar is a venture capital and private equity fund run by 2nd-year MBA students at the Marriott School at Brigham Young University. The Campus Founders Fund is run by exceptional students from all disciplines on different campuses that autonomously manage a $500,000 venture capital fund. Medallion Bank EnerBank USA 4 The Financial Planning Association of Utah consists of over 27,500 members including financial planners, accountants, attorneys, bankers, charitable giving specialists, insurance agents, stockbrokers, money managers, investment consultants, executives, and others. 5 Association for Corporate Growth Utah Chapter consists of professionals from private equity firms, lenders that invest in middle-market companies, as well as from law, accounting, investment banking, and others. Celtic Bank LCA Bank 6 The Utah Bankers Association is the professional and trade association for Utah s commercial banks, savings banks and industrial loan corporations. Industrial Banking Franklin Templeton Credit Park City Angels Sorenson Pelion Venture First Electronic Bank Mercato Aries EPIC Ventures Signal Peak Ventures University Venture Fund 1 Peterson UBS Bank USA The Pitney Bowes Bank InnoVentures Financial Planning Association of Utah4 BYU Cougar 2 Sallie Mae Bank Venture Kickstart Seed Fund Association for Corporate Growth Utah Chapter5 Campus Founders Fund Dolphin Utah Bankers Association6 American Express Centurion Bank WebBank Merrick Bank Salt Lake Life Science Angels Banyan Venture SLC Angels Utah Science Technology & Research Agency (USTAR) LINE KEY Decathlon Clarke Companies Accelerators Infrastructure Educational Institutions

8 Education & Labor A State of Education Utah is home to 12 major colleges and universities and has an excellent talent pipeline of over 212,000 students. Bachelor s and graduate awards grew by 1.% over the last five years. Utah has an educated workforce, with over 1% of the population 25 or over with a high school diploma and over 0% with a bachelor s degree. The Labor Picture Utah s labor force is well educated, growing, and affordable. Utah created nearly 48,000 jobs in 2016 and maintained one of the highest job growth rates in the nation throughout the year. Utah is the youngest state in the nation with a median age of 0.6 and has an average wage of $45,50, which is 15% lower than the nation. F I N A N C I A L S E R V I C E S E M P LOY M E N T I N D E X T O TA L S TAT E W I D E E N R O L L M E N T & D E G R E E S 111 Financial Services Industry 212,65 21 Tellers 46,615 Degree Enrollment 50, , , , ,000 SOURCE: Utah System of Higher Education 17 Loan Offices 155 Procurement Clerks TOP THREE SCHOOLS FOR FINANCIAL SERVICES 148 Financial Specialists Financial Examiners Brigham Young University 4% 5-Year Degree Change 2016 Enrollment,526 University of Utah -% 5-Year Degree Change 78 2, Degrees Utah Valley University 2016 Enrollment 2016 Enrollment 2016 Degrees Customer Service Representatives National Average F I V E -Y E A R E M P LOY M E N T C H A N G E 1, Degrees 25 55% 5-Year Degree Change This graph represents an index based on location quotients showing the large concentration of financial-related occupations in Utah. Any occupation above the national average of 100 demonstrates a competitive advantage in Utah % U TA H 8.87% N AT I O N SOURCE: Bureau of Labor Statistics Looking southward through the Salt Lake Valley. Forbes recently reported Utah is looking like the new benchmark for business and quality of life. A rash of new studies and rankings is proving that the Beehive State is increasingly the place to be. E D C U TA H A L IDFVEASNCCIEED N CMEAST E P R IOAFLI S L EP R O F I L E

9 EDCUtah questions? Call Theresa Foxley, President & CEO: Project questions? Call Erin Farr, Business Development Manager: Research questions? Call Michael Stachitus, Research Manager: Have questions about the Financial Services industry in Utah? Call us at South Main Street, Suite 2150, Salt Lake City, UT UTAH (8824) edcutah.org