Pub. 5 2015 Issue 2

give Banks Give Back Why Banks Matter A rizona banks pay income tax to help support the communities in which they do business. Credit unions, on the other hand, pay no federal income tax and virtually no state income tax. Banks put the savings of their customers to work by using deposits to provide loans directly back into the community. As money is loaned, it turns into a new deposit that can be re-loaned, creating a positive economic cycle and spurring growth. Banks throughout Arizona provide integral support to their communities. Arizona banks are an essential part of the state’s economy and have a vital role in our economic recovery. In addition to the capital they provide to families and businesses, they are deeply im- mersed in a culture of caring. Banks and bank employees donate money, time, and skill to strengthen their business communities. Arizona banks, as businesses, employ Arizonans across the state working in many banking locations throughout each of Arizona’s 15 counties. Banks, as lenders, stimulate the economy by lending to growing small businesses and consumers who will purchase goods and services. Customer deposits give the Arizona banking industry the resources and commitment to support the financial needs of individuals, businesses, and all levels of government. • Banks make loans to consumers to finance purchases of homes, education, cars, and major appliances. • Banks extend credit to facilitate small businesses’ ability to get started, grow, and prosper. • Banks help state and local governments fund a variety of public improvements like schools, roads, water and sewer, and public health facilities. It is difficult to imagine what our lives would be like without banks. With so many bank branches across the state, there are more banking locations than movie theaters or shop- ping malls. The physical presence of banks in nearly every Arizona community gives them a personal stake in the economic growth and vitality of our towns and cities and assures that bank customers will have convenient access to local financial services. In addition, with the increasing use of mobile and Internet banking, customers can conduct their banking business whenever they want. Since 1877, when The Bank of Arizona was chartered in Prescott, the Arizona banking industry has been a proud partner with its banking customers by helping to create wealth, spur ongoing economic growth, and benefit the communities of the state. The Arizona Banks Give Back Survey The Arizona Bankers Association (AzBA) periodically conducts a survey to determine what kind of an impact the banking industry is having on Arizona. The survey for 2010 received responses from 35 different AzBA member institutions. That was approximately 63 percent of the membership. However, the 2015 survey has had a weaker response so far, with some kind of participation from only nine different member institutions. AzBA has gotten larger in the last five years, though, since the website for the organization now lists 44 different member banks instead of 35. Between 2010 and 2014: • Federal taxes were $26.3 billion. • State income taxes were $27.3 million. In 2014: • Total property tax paid was approxi- mately $12.2 million. • Consumer loans totaled approximately $76 million. • Commercial loans totaled approximately $868 million. • Average compensation (that is, salary and benefits) for a full-time professional employee was about $83,500, but the median was $77,000. • Financial Literacy Outreach influenced more than 5,185 people. • More than 96,630 service hours were donated. • The total value of charitable and cultural donations made by Arizona banks was $8.06 million. w 4 www.azbankers.org