Following the settlement of the Great Salt Lake Valley in July of 1847 pioneers used bartering to carry on commerce. The first currency, in the form of “bank bills” in what would become the Utah Territory, was signed by Brigham Young on January 1, 1849. Gold dust and gold coins were used prior to and after this currency and other currencies that were put into circulation. Prior to the development of banks, merchants as early as 1859 performed banking functions within their commodity businesses. Banks were organized within the second decade after settlement. In 1873 Brigham Young chartered the oldest currently operating bank today in Utah.
Utah has strong local and nationally chartered financial institutions with the experience to work with all the financial needs of business in Utah. In the fiscal year 2015, the cluster (as defined by GOED) represents 4,888 businesses with more than 50,800 jobs. These jobs pay an average annual wage of $62,934, or 162% of Utah’s average wages.
With 89 state-chartered institutions and a combined total of $444.7 billion in total asset distribution, the State of Utah has a significant financial services industry. According to 2012 data from the Department of Financial Institutions, Utah is home to the highest number of industrial banks in the nation with 30 chartered industrial banks and eight of these institutions are in the top ten industrial banks in the country by asset size.
Utah is home to Goldman Sach’s second-largest North American office, with more than 1,700 employees.
As banking has developed, banks remain in the forefront of developing new technologies to facilitate the critical processing of payments, extending credit for personal home ownership and education, and the funding of small and large businesses as well as the financing needs of local and state governments. Banks in Utah serve the savings and borrowing needs of all Utahns.
Industrial Banks (IBs) are financial institutions that have experienced rapid growth in the U.S. over the past decade. The state of Utah has proven to be a particularly attractive place to operate IBs and now hosts the most IBs in the country. IBs chartered in Utah currently hold the bulk of IB industry assets. The flexibility of an IB charter has made it an attractive vehicle for many large and well-known corporations.
IBs are financial institutions authorized to make consumer and commercial loans and to accept federally insured deposits. IBs cannot “demand” deposits if the IB has total assets greater than $100 million. IBs are subject to the same regulatory and supervisory oversight as commercial banks.
IBs are authorized to engage in the “banking business” under the statutory framework of “Title 7.” With the exception of demand deposits, IBs may offer the same banking services as commercial banks. FDIC rules and regulations that generally apply to commercial banks also apply to IBs, and the institutions are supervised and examined by both the FDIC and the Utah Department of Financial Institutions.
Some notable IBs in Utah include:
- American Express Centurion Bank
- UBS Bank USA
- GE Capital Financial Inc.
- BMW Bank of North America
- Sallie Mae Bank
- Capmark Bank
- OptumHealth Bank
- Wright Express Financial Services Corporation
- Transportation Alliance Bank, Inc.
In Fiscal Year 2013, $407.8 million in 7(a) and 504 small business loans were made by SBA partners in Utah. Significant institutions in SBA lending include:
- Mountain West Small Business Finance – www.mwsbf.com
- Zions First National Bank – www.zionsbank.com
- Utah CDC – www.cdcutah.org/
- Mountain America Federal Credit Union – www.macu.com
- Wells Fargo Bank – www.wellsfargo.com
- JP Morgan Chase – www.chase.com
- Celtic Bank – www.celticbank.com
- State Bank of Southern Utah – www.sbsu.com
- First Utah Bank – www.firstutahbank.com
- U.S. Bank – www.usbank.com
- University Federal Credit Union – www.ucreditu.com
- Central Bank – www.centralbankutah.com
- Bank of American Fork – www.bankaf.com
- America First Federal Credit Union – www.americafirst.com/business
- Cyprus Credit Union – www.cypruscu.com
- Bank of Utah – www.bankofutah.com
- Key Bank – www.key.com
- GE Commercial Financial – www.gesmallbusiness.com
- Brighton Bank – www.brightonbank.com