Regions Financial contributed $1.5 billion and 23,810 direct and indirect jobs to the Alabama economy in 2008 and lent $11.2 billion to businesses and consumers in the state according to a new study conducted by the Center for Business and Economic Research at The University of Alabama.
Key report findings indicate that in 2008 Regions:
- Had impacts of $1.5 billion in economic activity or output, 23,810 jobs, and $970 million in earnings to Alabama households;
- Facilitated further economic activity with $11.2 billion in lending to Alabama businesses and consumers;
- Provided high-quality jobs, as the average Regions' employee pay of $51,069 was 34 percent higher than the statewide average of $38,055; and
- Paid nearly $15 million in tax payments directly, in addition to $78 million in state and local taxes generated by Regions employees' spending.
Employment - Significantly, Regions' Alabama employees earned an average of $51,069 annually, which was 34 percent higher than the average statewide per worker earnings of $38,055. Regions and Morgan Keegan employed 11,553 individual workers over the course of a year while 12,257 other jobs across diverse industries existed because of activity related to the company, based on 2008 data. This translated into $970 million in Alabama household earnings provided either directly or indirectly by Regions.
Nonpayroll expenditures – In 2008 the bank made $321.1 million nonpayroll expenditures within the state, including purchases, employee benefits, taxes, and other charges. These expenditures impacted every county within the state and stimulated business activity in various other sectors of the Alabama economy. Regions paid nearly $15 million in state and local taxes for the year. In addition, Regions' employees' spending in Alabama generated an estimated $78.7 million in state and local income, sales and property taxes. These conservative estimates do not include other taxes and fees, including utility taxes, car tags and fees, and other personal property taxes.
Lending - The bank's loan originations in Alabama totaled a little more than $11.2 billion in 2008. These loans were to both businesses and consumers across the state. Thus, in addition to its own spending and hiring, Regions facilitated economic activity and related impacts throughout the state with this large amount of lending.
The economic impact study was commissioned by Regions 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. Key findings of the study were based on Regions' employment, output, value-added and income. The study then utilized the Regional Input Output Modeling System (RIMS II), a tool developed and maintained by the U.S. Department of Commerce's Bureau of Economic Analysis, to estimate the total amount of economic activity attributable to Regions' operations. The study also documents the bank's loan originations, which facilitated additional economic activity throughout Alabama.
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