Mortgage service center to invest more than $15.2 million
FRANKFORT, Ky. (March 1, 2013) — 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.
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. Steve Beshear announced today and grow our servicing capacity.”
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.
“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.”