U.S. Bank Home Mortgage, a subsidiary of U.S. Bancorp, will invest more than $15.2 million to expand its mortgage operations in Owensboro, Kentucky, with plans to add a new facility and hire 332 additional employees.
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…and grow our servicing capacity.”
“Simply put, this is a victory not only for the Commonwealth, but also for Owensboro and for U.S. Bank,” said Gov. Steve Beshear. “U.S. Bank plans to add 332 employees and invest more than $15.2 million in this expansion. This project proves how successful this area has been for this respected institution and shows U.S. Bank’s commitment to a promising future here in Kentucky.”
To encourage the investment and job growth in Owensboro, the Kentucky Economic Development Finance Authority 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.”