OWENSBORO, Ky. (July 1, 2010) Demonstrating the state's commitment to support its existing industries, Gov. Steve Beshear today visited Owensboro to announce a major expansion at US Bank that will create 500 new jobs in Owensboro.
The U.S. Bank National Association's Home Mortgage's Servicing Center in Owensboro supports U.S. Bank's national portfolio, will invest more than $14.1 million as a result of the expansion and add a location in the Mid America Airpark in Owensboro.
"Today's announcement that U.S. Bank will create 500 new jobs is fantastic economic development news for Owensboro and Kentucky," said Gov. Beshear. "I am pleased that the Commonwealth could once again partner with our existing industries to create employment opportunities and secure additional capital investments in Kentucky facilities."
A subsidiary of US Bancorp, a division of U.S. Bank National Association, U.S. Bank Home Mortgage is ranked sixth among originators and servicers nationally. US Bank originates loans nationwide through its network of more than 2,700 branch banks in 24 states. The Owensboro Mortgage Servicing Center supports U.S. Bank's the bank's national portfolio of nearly $1.4 million loans totaling $193 198 billion. An increase in demand for U.S. Bank mortgage products and services has spurred the expansion. The company plans to lease an 81,000 square-foot facility in the Mid-America Air Park to house the new employees. Owensboro's existing facility facilities currently employs just over 1,100 people.
"We continue to add quality loans to our solid mortgage portfolio," added Dan Arrigoni, President of U.S. Bank Home Mortgage. "We're continuing to invest in our infrastructure so that we can keep providing top-notch service for our existing customers while building for our future mortgage growth." Bob Smiley, U.S. Bank executive vice president and loan servicing manager at U.S. Bank Home Mortgage in Owensboro said the portfolio has continued to grow at a rapid pace since reaching a milestone in 2007 by surpassing $100 billion in servicing volume. Today, only 36 months later, we have nearly doubled that volume to $198 billion.
The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved U.S Bank National Association for tax incentives up to $4,370,000 through the Kentucky Business Investment program. The incentive can be earned over a 10-year period through corporate income tax credits and wage assessments. Additionally, KEDFA approved the company for tax benefits up to $130,000 through the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures and equipment used in research and development. The City of Owensboro has pledged to partner with US Bank with a local incentive valued at $1.7 million.
"US Bank is a corporate citizen who we are extremely proud to partner with," added Owensboro Mayor Ron Payne. "The city sees this as a project with great benefits today and significant potential for the future. Owensboro is on the move thanks to the efforts of US Bank and many others. We are growing stronger together."
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