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 1837 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 3 University of Utah 9 Dixie State University Community College 1 America First Credit Union 2 American Express 3 Deloitte & Touche 4 Deseret Mutual Benefit Administration 5 Discover Products 6 Edward Jones 7 Ernst & Young 8 Fidelity Investments 9 Goldman Sachs 10 JP Morgan Chase Bank 6 Utah Valley University LOGAN 1 OGDEN 2 1 A SALT LAKE CITY 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 79,000 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 recognized Utah as The Best State for Business six of the past eight years, ranking 3rd in E D C U TA H F I N A N C I A L S E R V I C E S P R O F I L E Updated Aug KeyBank 12 KPMG 13 Leavitt Group 14 Merrill Lynch 15 Morgan Stanley 16 Prestige Financial Services 17 Pricewaterhouse-Coopers 18 Regence BlueCross BlueShield 19 Select Portfolio Servicing 20 U.S. Bank 21 UBS Bank 22 Wells Fargo Bank 23 Willis Towers Watson 24 Zions Bancorporation PROVO 6 7 In 2015, Utah s post-performance tax incentives facilitated nearly 25,000 new jobs and more than $65M in new state revenue. In 2018, the Tax Foundation ranked Utah s Total Tax Climate as the 8th 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 38,000 people employed in these industries. E D C U TA H. O R G C 8 9 ST. GEORGE Allstate Bear River Mutual Insurance 27 Mountain America Credit Union 28 SelectHealth 29 Sutter Connect 30 E Trade 31 Exeter Finance 32 Progressive Leasing B Workforce Utah s Financial Services industry has experienced employment growth of over 20% 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 COMPANY EMPLOYEES* DESCRIPTION Allstate map #25 Allstate is a financial services company that provides vehicle insurance, property insurance, life insurance, and other forms of financial services. Fidelity Investments regional headquarters in Salt Lake City. America First Credit Union 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 map #2 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 map #26 Bear River Mutual Insurance is Utah s oldest mutual property and casualty insurance company, offering personal property and casualty insurance. Deloitte & Touche map #3 Deloitte and Touche is an accounting, audit, and risk management firm, and is one of the Big Four auditing firms. Deseret Mutual Benefit Administration map #4 Deseret Mutual is a non-profit organization that administers medical, dental, disability, life insurance, flexible spending, and other welfare plans. Discover Products map #5 Discover Products is a direct banking and payment services firm which issues the Discover Card and operates the Discover and Pulse networks. E Trade map #30 E Trade is a financial services firm offering a full suite of online brokerage, investing and related banking solutions. Edward Jones map #6 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 map #7 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 map #31 Exeter Finance is an independent, specialty auto finance firm providing services to vehicle owners, auto dealers, and their investors. Fidelity Investments map #8 Fidelity Investments is a multinational financial services corporation and is the fourth largest mutual fund and financial services group in the world. Goldman Sachs map #9 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 map #10 JP Morgan Chase Bank is an investment banking and financial services firm for consumers, small-businesses, commercial banking, asset management, and private equity. KeyBank map 11 KPMG map #12 Leavitt Group map #13 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 29th 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. Exceter Finance specializes in making vehicle ownership possible for everyone. *SOURCE: Utah Department of Workforce Services

4 COMPANY EMPLOYEES* DESCRIPTION Merrill Lynch map #14 Morgan Stanley map #15 Merrill Lynch in a financial services company that specializes in investments, banking, retirement, estate planning, and other financial planning services. Morgan Stanley is an investment banking and brokerage firm, whose main areas of business are Global Wealth Management, Institutional Securities, and Investment Management. Utah s first chartered savings bank and trust company. Zion s Bank opened in This is their historic downtown location. Mountain America Credit Union Prestige Financial Services Pricewaterhouse- Coopers Progressive Leasing Regence Bluecross Blueshield Select Portfolio Servicing map # map # map # map # map # map #19 Mountain America Credit Union is a nonprofit credit union founded in 1934 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 1942 as the state s first health insurer. Select Portfolio Servicing is a mortgage servicer specializing in single-family residential mortgages. SelectHealth map #28 Sutter Connect map #29 U.S. Bank map #20 UBS Bank map #21 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 Bank Willis Towers Watson (Formerly Extend Health) Zions Bancorporation map # map # map #24 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. Front and back of a $5 gold piece from the Deseret Assay Office. *SOURCE: Utah Department of Workforce Services 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.

5 The 111 building in downtown Salt Lake City, and Goldman Sach s new home. They are currently the largest leasee of the property. Recent Announcements Goldman Sachs to Expand its Presence in Utah (2018) Goldman Sachs chose Utah to handle its expansion into consumer financing. They opened a 100,000 square foot back office and customer service center in Draper, Utah. The expansion will add 700 jobs and over $6 million in capital investment. Goldman Sachs has a history of expansion in Utah, and currently has over 2,300 employees in the state. Earnest to Join Utah s FinTech Sector, bringing up to 500 jobs (2017) Earnest will expand in Utah, adding up to 500 jobs to the community and $5.6 million in capital investment over the next five years. This marks the first major expansion for the San Francisco-based private financial services company. Earnest currently has 150 employees located at its headquarters. The new Utah operation will employ team members across credit and client operations, sales and marketing, engineering, and management positions. 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 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 331 jobs and new office to Utah (2017) Varo Money is opening a new office in Utah, adding up to 331 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 $1,681,910. 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 $108.9 million.

6 Cost Profile Occupational Wages in Financial Services $150K UTAH $67,990 CALIFORNIA $117,920 ILLINOIS $110,550 NEW YORK $222,450 NORTH CAROLINA $91,850 NATIONAL $102,210 UTAH $100,560 CALIFORNIA $135,460 ILLINOIS $117,830 $190,260 NEW YORK NORTH CAROLINA $130,100 NATIONAL $125,080 UTAH $62,890 CALIFORNIA $75,130 ILLINOIS $69,670 NEW YORK $82,090 NOR. CAR. $68,180 NATIONAL $69,350 UTAH $73,740 CALIFORNIA $94,430 ILLINOIS $78,070 NEW YORK $108,060 NO. CAROLINA $80,100 NATIONAL $84,300 UTAH $30,630 CALIFORNIA $39,950 ILLINOIS $35,040 NEW YORK $36,750 NO. CAR. $34,240 NATIONAL $35,330 SOURCE: Bureau of Labor Statistics, May 2017 UTAH $30,060 CALIFORNIA $37,260 ILLINOIS $34,140 NEW YORK $36,800 NO. CAR. $31,180 NATIONAL $32,890 Financial Services Industry Average Wage 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 $56,780 $70,040 $63,510 $68,240 $62,120 $64,900 Real Estate $ UTAH $ CALIFORNIA $ ILLINOIS $ NEW YORK $ NO. CAR. $ SOURCE: RSMeans NATIONAL $ $ UTAH $15.72 CALIFORNIA $23.78 ILLINOIS $16.47 NEW YORK $27.15 NO. CAR. $18.11 SOURCE: Loopnet N/A Credit Analysts $52,810 $77,540 $64,800 $105,960 $74,640 $71,290 Personal Financial Advisors $83,040 $103,490 $83,730 $143,510 $87,960 $90,640 Insurance Underwriters $62,470 $77,870 $71,070 $82,450 $73,770 $69,760 Financial Examiners $65,260 $96,040 $92,970 $103,370 $78,930 $81,690 Bookkeeping Accounting and Auditing Clerks $37,030 $45,040 $39,780 $43,020 $37,630 $39,240 Tellers $25,490 $29,560 $27,370 $29,350 $29,680 $28,110 Insurance Claims & Policy Processing $37,780 $38,970 $42,020 $46,780 $41,020 $38,790 Utilities Taxes $ Office Construction ($/sq.ft.) UTAH 8.2 NO. CAR. 8.6 NATIONAL 10.5 Office Lease ($/sq.ft.) Electricity / Commerical ( /kwh) Natural Gas / Commercial ($/1000 Feet 3 ) UTAH $976 CALIFORNIA 14.8 CALIFORNIA $1,451 ILLINOIS 8.7 $2,087 ILLINOIS NEW YORK $2,697 NEW YORK 13.4 NO. CAR. $952 $1,518 NATIONAL $ % 8% 6% 4% 2% 5% Flat Rate UTAH $7.78 UTAH 8.84% Flat Rate CAL. $8.92 CALIFORNIA 9.5% Flat Rate ILLINOIS $6.53 SOURCE: Energy Information Administration, Apr ILLINOIS 6.5% Flat Rate NEW Y. $7.86 NEW YORK 3% Flat Rate NO. CAR. $7.37 NC 6.33% NAT. $7.76 NATIONAL *SOURCE: Department of Workforce Services & Bureau of Labor Statistics Property Tax (Collections per capita) Corporate Income Tax SOURCE: taxfoundation.org

7 Areas of Excellence WEX Bank Comenity Bank Optum Bank BMW Bank of North America 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. Medallion Bank 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. 3 The Campus Founders Fund is run by exceptional students from all disciplines on different campuses that autonomously manage a $500,000 venture capital fund. Park City Angels Sorenson Pelion Venture 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. 6 The Utah Bankers Association is the professional and trade association for Utah s commercial banks, savings banks and industrial loan corporations. Mercato Aries Franklin Templeton Credit LCA Bank EnerBank USA Industrial Banking Celtic Bank First Electronic Bank Signal Peak Ventures EPIC Ventures University Venture Fund 1 Peterson UBS Bank USA InnoVentures The Pitney Bowes Bank BYU Cougar 2 Financial Planning Association of Utah 4 Sallie Mae Bank Kickstart Seed Fund Venture Association for Corporate Growth Utah Chapter 5 Campus Founders Fund 3 Dolphin Utah Bankers Association 6 Merrick Bank American Express Centurion Bank WebBank Salt Lake Life Science Angels SLC Angels Banyan Venture Utah Science Technology & Research Agency (USTAR) Decathlon Clarke LINE KEY 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 307,000 students. Bachelor s and graduate awards grew by 30.8% over the last five years. Utah has an educated workforce, with over 91% of the population 25 or over with a high school diploma and over 32% with a bachelor s degree. The Labor Picture Utah s labor force is well educated, growing, and affordable. Utah created nearly 40,000 jobs in 2017 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 30.7 and has an average wage of $46,068, which is 15% lower than the national average. FINANCIAL SERVICES EMPLOYMENT INDEX TOTAL STATEWIDE ENROLLMENT & DEGREES 307,211 47,385 Enrollment Degree Financial Services Industry 110 Loan Officers , , , , ,000 Customer Service Representatives 150 SOURCE: Utah System of Higher Education Procurement Clerks 122 TOP THREE SCHOOLS FOR FINANCIAL SERVICES Brigham Young University 2016 Enrollment 3, Degrees 798 4% 5-Year Degree Change University of Utah 2016 Enrollment 2, Degrees 654-3% 5-Year Degree Change Utah Valley University 2016 Enrollment 1, Degrees % 5-Year Degree Change Tellers 117 Financial Examiners Financial Specialists National Average FIVE-YEAR EMPLOYMENT CHANGE UTAH NATION 7.73% 108 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 % 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. EDCUTAH ADVANCED LIFE SCIENCES MATERIALS PROFILE PROFILE

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