An economic impact study conducted by a prominent national firm has revealed some staggering numbers on how Regions Bank impacts its home state of Alabama.
Headquartered in Birmingham, Regions is currently the Yellowhammer State’s only Fortune 500 company.
The firm Tripp Umbach recently wrapped up a study of how the bank supports Alabama’s economy, and the report released Wednesday shows that local communities across the state benefit from the bank, too.
For example, Regions Bank had an overall economic impact of $7.6 billion on Alabama in 2018 alone. The company also supports 32,171 jobs in the state, providing pay and benefits to its employees that are on average 46% higher than the Alabama average.
Additionally, Regions Bank provided $11.1 million last year to Alabama charities through volunteerism and contributions.
John Turner, president and CEO of Regions Financial Corp., stated that the economic impact report reflects the company’s commitment to creating shared value not only for bank customers, but also for its associates and the local Alabama communities where Regions proudly does business.
“Thriving communities benefit everyone, so we’re proud to be able to strengthen Alabama through job creation, charitable investments, lending to consumers and businesses, and our daily operations, because it all helps build a better future,” Turner said. “By leveraging all the tools at our disposal – and concentrating on the areas where we can have the most meaningful and measurable impact – Regions Bank is well-positioned to remain an integral part of the state’s economic vitality.”
The economic impact study, before being released to the public, was recently presented to Governor Kay Ivey and Birmingham Mayor Randall Woodfin.
In a statement, Ivey said, “Regions continues to be a powerful tool for Alabama’s economic well-being.”
“As we look for ways to continue boosting our economy, Regions will serve as an important catalyst for that growth,” she concluded.
“Regions’ leadership has always provided an economic anchor for the city,” Woodfin remarked. “As we continue to make strides in the transition to an inclusive economy, Regions serves as a key partner for the future.”
Regions’ three key takeaways from the Tripp Umbach report as follows:
- Regions Bank is a vital catalyst for sustainable economic growth in Alabama and Greater Birmingham.
- Regions generated more than $7.6 billion in economic impact across Alabama in 2018. This represents the direct impact of day-to-day operations as well as lending from Regions to businesses and consumers across the state and other indirect impacts.
- The company’s economic impact is particularly significant within its headquarters market of Greater Birmingham. In Jefferson and Shelby Counties, Regions’ economic impact is approximately $4.1 billion. This figure represents nearly $2.2 billion in direct expenditures in payroll and non-payroll expenses, as well as an additional $1.9 billion in indirect or related spending.
- Serving people and businesses in all 67 Alabama counties, Regions helps individuals and employers succeed through access to lending and additional financial products and services.
- As Alabama’s only Fortune 500 company, Regions was responsible for nearly $267 million in government revenue in 2018. This figure includes approximately $59.6 million attributed to sales tax, property tax, payroll tax and other state and local taxes paid directly by the bank.
- Regions is a magnet for world-class talent, generating a significant number of high-skill, high-paying jobs.
- Regions directly or indirectly supports 32,171 full-time and part-time jobs across Alabama. This figure represents approximately 8,000 Alabama-based Regions associates and more than 24,000 people whose jobs are supported by the bank’s operations.
- In 2018, the average Alabama-based Regions associate made 46 percent more in pay and benefits than the average Alabama employee of other companies. This positions Regions as an employer of choice.
- The company directly employs more than 5,900 people in Greater Birmingham, and the bank supports an additional 11,716 related jobs among other employers, such as contractors and other companies whose personnel are employed, at least in part, due to Regions’ economic activity.
- Regions’ contributions to creating inclusive prosperity in Alabama and Greater Birmingham are meaningful and diverse, including significant spending and lending activity as well as substantial investments of time and money supporting community causes.
- The company and its associates provided approximately $11.1 million in 2018 to Alabama charities through a combination of financial donations and extensive volunteerism.
- Regions focuses its community engagement activities on three key areas where the bank and its associates are most qualified to make a meaningful difference through financial support and hands-on service:
- Economic and Community Development
- Financial Wellness
- Education and Workforce Readiness
Sean Ross is a staff writer for Yellowhammer News. You can follow him on Twitter @sean_yhn
