Arizona Bankers Association Impacts State’s Economy, Communities
Bank of Arizona President Ryan Suchala recognizes the importance of community.
“This is where we live, work and play and in many cases the city where we are shaping our families,” Suchala says. “As a father of three I give my time to better our community because this is where my boys will become men. Last year, Bank of Arizona employees spent close to 450 hours working in our community and I personally became a board member at Arizona Women Education and Employment.”
To show the Arizona banking industry’s impact on its communities, the Arizona Bankers Association (AzBA) produced a brochure titled “Arizona Banks Give Back.” The report provides a picture of the economic and charitable support the banking industry gives back to the communities it serves, and shows the influence banks have on Arizona’s economy.
Arizona Bankers Association is an organization with more than 70 members that works to create a unified voice and engage members in issues that affect the banking industry.
“It’s clear the banking industry has been under a microscope the last few years,” says Lynne Herndon, city president of BBVA Compass. “We wanted to pull our information and be treated collectively as an industry to say we are looking to work with companies to help them with their financial needs.”
Arizona Bankers Association created the “Arizona Banks Give Back” survey in November 2010 to collect a variety of data from Arizona banks. The results were released in February 2011. The 12-page brochure includes statistical data that shows how banks provide financial and social stability in Arizona.
The banks that chose to participate in the survey felt that it provided a good opportunity to change the way people currently view banks. The biggest surprise to Paul Hickman, president and CEO of Arizona Bankers Association, was how high bank lending was in Arizona in 2010.
According to the survey results, Arizona banks lent $5.9 billion in new and renewed commercial loans, and more than $11 billion in new and renewed consumer loans in 2010.
“A lot of the feedback we’ve been getting is ‘Wow, I didn’t realize the volume of lending was that great in this economy,’” Hickman says.
The number is likely higher as only 35 AzBA-member institutions responded to the survey, which only represents 63 percent of the organization’s membership, and does not include information from non-member banks.
In today’s economy, banks are more cautious about lending, but the data proves that Arizona banks are continuing to lend to commercial businesses and consumers.
“We keep hearing banks won’t lend,” Hickman says. “But banks don’t make money if they don’t lend.”
Banks want to lend so they can pump money into Arizona’s economy.
Arizona banks provide direct loans to help the state government finance public improvements by improving water, sewer and public health facilities and by helping build schools.
Banks pay income tax to help support local communities as opposed to credit unions, which don’t pay federal income tax.
Arizona banks are also putting money into the economy by being a leading employer of local residents. Banks bring high-wage jobs to the local community, and employ more than 42,000 Arizonans.
Wells Fargo Bank was the fifth largest employer of Arizonans in 2010, and the average salary for an employee working at a bank was around $66,625 in 2010.
By providing jobs, banks provide a ripple effect in the community, because employees pay state taxes and are also consumers that put money back into local businesses.
Arizona banks are also doing more than just putting money into the economy. Members of Arizona banks are striving to aid their community through service.
According to the results from the Arizona Banks Give Back survey, bank employees donated 211,615 volunteer hours to community service in 2010, and donated $15.5 million to charitable and cultural organizations.
“Actions speak louder than words,” says Craig P. Doyle, Arizona regional president of Comerica Bank. “We get out and are active in making a difference in our communities. It’s better than just handing money out.”
To show their commitment to the communities they serve, Comerica employees work with nonprofits like Fresh Start Women’s Foundation, Homeward Bound, Junior Achievement, Sojourner Women’s Shelter, United Food Bank, Central AZ Shelter Services and many others.
An effort from Suchala and the Bank of Arizona helped improve literacy across the Valley.
“Last year, we hosted our annual Caring for Kids Book Drive and collected over 14,000 books for children and adults in our community,” Suchala says. “We educate with multiple employees teaching Junior Achievement programs and with educational programs to local school children. Our employees have worked together this past year sorting school supplies at the annual Salvation Army Pack to School Drive, serving food alongside Alice Cooper for the Cooperstown Christmas for Kids event and pounded nails at two Habitat for Humanity events.”
“These are good members of the community,” Hickman says. “These are people that are donating their money and time at philanthropies around the state and they’re trying hard to impart their discipline.”
Arizona banks participate in programs such as neighborhood revitalization, financial education and assistance for the underprivileged.
In 2008, Mohave State Bank created a program called “Junior Bankers.” Three years later, Mohave State bankers are still training children at Jamaica Elementary School in Lake Havasu about balancing accounts, taking deposits and bank rules. Volunteers meet each week with students before school. The program has expanded to three other elementary schools.
In 2010, the National Bank of Arizona donated one of its foreclosed homes in Glendale to Habitat for Humanity Central Arizona. The bank partnered with the organization to help renovate the property, and 118 people worked to build walls, paint and landscape the property.
Arizona banks are committed to helping the community both financially and through service, Hickman says.
“This industry is like the cardiovascular system of our economy and it needs to be robust and healthy,” Hickman says. “We don’t grow or recover without this industry.”
For more information about the Arizona Bankers Association, visit azbankers.org.
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Arizona Gives Back: By the Numbers
- More than $5.9 billion distributed in commercial loans (new and renewed) in 2010
- More than $11 billion distributed in consumer loans (new and renewed) in 2010
- More than 1,300 banking center locations in Arizona
- More than 42,000 people work for Arizona banks
- $66,625 is the average bank employee salary
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Arizona Business Magazine November/December 2011
