Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Study Shows Regions Financial Generates $7 Billion in Combined Economic Impact, Lending for Alabama's Economy

RF

Regions Financial (NYSE:RF) contributed $3.3 billion and nearly 22,000 direct and indirect jobs to the Alabama economy in 2012 and lent $3.7 billion to businesses and consumers in the state according to an economic impact study from Tripp Umbach, a leading economic development researcher.

“When you consider both our direct economic impact and the activity we facilitate through lending, Regions contributes significantly to Alabama’s economy,” said John Turner, South Region president for Regions Bank. “As the largest bank in Alabama and the only Fortune 500 company headquartered here, we’re doing our part to encourage sustained economic growth in our home state by creating high quality jobs, purchasing goods and services from local companies, and lending to Alabama businesses and consumers.”

Key report findings indicate that in 2012 Regions:

  • Had a $3.3 billion impact on the Alabama economy through day-to-day operations;
  • Added more than $3.7 billion to the Alabama economy through lending to businesses and consumers in each of the 67 counties in the state;
  • Supported nearly 22,000 jobs both directly and indirectly through operations;
  • Provided pay and benefits to associates which was 36% higher than the average job in the state of Alabama;
  • Generated both directly and indirectly more than $101.8 million in state and local tax revenue; and
  • Provided $5.86 million to Alabama charities through corporate contributions, associate monetary donations and volunteerism.

“Our research clearly demonstrates that Regions is invested in Alabama and is a unique part of the fabric of the state’s economy,” said Carrie Kennedy, principal at Tripp Umbach. “Regions’ economic impact in Alabama goes beyond its sizable contributions to the state’s economy through job creation, spending and lending activity. If Regions was not headquartered in Alabama, another lender would step in to service the accounts, but given Regions’ importance in the state, a gap would be left within the community.”

Economic Impact Regions Bank is directly and indirectly responsible for $3.3 billion in spending within the state of Alabama. This includes the company’s direct impact of $1.9 billion in value-added or 1.07% of the state’s GDP. In addition, the indirect impact of the spending of local businesses to support the Regions Bank operations ($781 million), and the induced impacts of the household spending due to Regions Bank ($585 million) drove economic activity across Alabama. This impact is felt in a variety of industries and local economies throughout the state.

Employment – In 2012, Regions supported 21,779 jobs in Alabama, including 11,134 direct jobs and 10,645 indirect and induced jobs which are directly related to Regions Bank’s operations in Alabama. This means that in Alabama, nearly one in every 84 jobs across all industries are a result of the business operations of Regions. These jobs are well compensated and important to the community and local economy. Payroll at Regions Bank grew to nearly $599 million in 2012. This means that in 2012, the average Alabama-based associate of Regions Bank earned 36% more than the average working person in Alabama.

Lending – Regions Bank has provided additional benefit through the loan originations in the state and throughout each county in Alabama. The bank’s loan originations to Alabama businesses and consumers in 2012 totaled a little over $3.8 billion. With such a large amount of lending activities in the market, Regions spurred economic activity throughout a volatile time in the state’s economy. This is an economic benefit separate from the bank’s operational or day-to-day business impact.

Philanthropy and Volunteerism – In addition to helping the local community residents and local businesses with financial matters, Regions Bank and Regions Bank associates give back to the community in a variety of ways. Study estimates indicate that Regions Bank associates provide nearly $2.36 million, including $1.67 in contributions to local charities within Alabama as well as $684,000 in the in-kind donations of time spent volunteering in local charitable organizations. Regions Bank also donated $3.5 million directly to charitable organizations benefitting Alabama in 2012; bringing the total amount of charitable contributions and in-kind donations due to Regions Bank and Regions Bank associates in Alabama to $5.86 million.

Regions commissioned the economic impact study in order to evaluate the impact of the bank’s activities on the State of Alabama and the communities in which Regions operates and many of its employees live. Tripp Umbach, a nationally recognized consulting firm, completed the economic impact analysis using the IMPLAN econometric model. Key findings of the study were based on Regions’ employment, output, value-added, income, and loan originations.

A copy of the full report is available at www.regions.com/impact.

About Regions Financial Corporation

Regions Financial Corporation (NYSE:RF), with $117 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, mortgage, and insurance products and services. Regions serves customers in 16 states across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,700 banking offices and 2,000 ATMs. Additional information about Regions and its full line of products and services can be found at www.regions.com.



Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today