Texas Financial Services Industry Report - Office of the Governor ...

Texas Financial Services
Industry Report
JANUARY 2012
www.TexasWideOpenForBusiness.com
Office of the Governor | Economic Development & Tourism

Contents
Overview…………………………………………………………………. 1
Banking, Savings, & Credit Unions…………..…………….… 9
Credit & Consumer Lending Services……….………...…… 11
Investment-Related Activities……………...………………….. 15
Insurance Carriers…………………………………………………….
Accounting & Related Services…………………………………
20
24

Overview
T
he financial services industry encompasses
many aspects of money management, including
banking, insurance, credit, lending,
investment, and financial transactions. A strong
financial industry provides businesses with access to
affordable capital, stimulates global trade, and
presents investors with an array of products to
increase return and manage risk. The industry plays an
important role in the Texas economy, employing
nearly 450,000 workers in the state.
This report covers the wide variety of financial firms
in Texas, including commercial and investment banks,
credit unions, credit card issuers, consumer lenders,
mortgage companies, money transfer providers,
insurance carriers, venture capital firms, investment
funds, financial advisers, stock and securities brokerages,
accounting firms, and the Federal Reserve.
Compared to the U.S. financial sector as a whole, the
Texas financial services industry is significantly more
specialized in sales financing, real estate lending, and
consumer finance than the financial sectors of most
others states. In contrast, the financial industries of
states like New York and Massachusetts are much
more dependent upon investment activities, such as
securities brokerage and investment banking. As a
result, the Texas financial services industry is less
directly tied to Wall Street activities.
Nationally, the financial services industry is highly
fragmented compared to other industries, with many
2
Texas is more specialized in sales
financing, real estate lending, and
consumer finance than most other states.
companies competing for small portions of market
share. Additionally, the rise of online services has
dramatically changed the pace and face of financial
services, helping to transform it into a highly automated
and technology-dependent industry.
Texas Financial Services Sectors
by Total Workers
Data note: This report covers most activities categorized as Sector 52, Finance and
Insurance, under the North American Industry Classification System (NAICS).
Additionally, the report extends coverage to accounting and related services, categorized
as NAICS Sector 5412. Real estate services, credit bureaus, collections
agencies, and offices of insurance agents are not included in this report.

State of the Industry in Texas
In 2010, one out of approximately every 12 U.S.
financial services workers was located in Texas, while
one out of approximately every 13 U.S. financial
services establishments was located in Texas, according
to the U.S. Bureau of Labor Statistics (BLS).
In addition, seven financial services giants headquartered
in Texas are ranked on the 2011 Fortune 1000
list, including USAA (San Antonio), Torchmark
(McKinney), American National Insurance
(Galveston), Alliance Data Systems (Plano), Comerica
(Dallas), HCC Insurance Holdings (Houston), and
Stewart Information Services (Houston).
Texas-based financial services firms ranked in the Fortune 1000
Worldwide, the financial services industry has
undergone a massive shake-up over the past several
years, enduring the credit crisis of the late 2000s and
the collapse of leading firms like Lehman Brothers
and Wachovia. As the industry grapples with the new
playing field, some of the biggest firms, such as
Goldman Sachs, Bank of America, Citicorp, and J.P.
Morgan Chase, continue to operate a variety of
corporate locations in Texas (see map, opposite page).
The Texas financial services sector has remained
relatively healthy and continues to grow, despite the
global and national economic downturn that began in
2007. Texas is the only one of the 15 largest U.S.
MoneyGram Moves Headquarters
from Minneapolis to Dallas
In September 2010, MoneyGram International,
the world’s second-largest provider of money
transfer services, announced the relocation of its
corporate headquarters from Minneapolis,
Minnesota, to Dallas, Texas. MoneyGram’s move
to Texas reduced its costs and streamlined
operations, according to the company.
MoneyGram cited the Dallas region’s dynamic
corporate community, highly-connected
international airport, and skilled, multi-lingual
workforce as contributing to its selection of Dallas.
states that has more finance and insurance jobs today
than it did five years ago, before the recession hit. In
contrast, California, Illinois, Florida, and Georgia
shed financial jobs by double digit percentages during
that same time period.
The resilience of the Texas financial sector can be
attributed to a number of factors, including the overall
strength of the broader state economy. In 2011, Texas
led the country in job creation in energy, construction,
manufacturing, and health care services. Additionally,
Texas’ nation-leading business climate and sensible
home equity laws helped the state avoid the worst of
the real estate foreclosure crisis that accompanied the
economic downturn. Media outlets such as the Wall
Street Journal and CNBC have noted that Texas’
consumer protections regarding home-equity loans
were one factor that shielded the state from the high
foreclosure rates experienced by other sunbelt states.
48,600
Number of financial services jobs added in Texas
from 2001-2011, more than quadruple that of
any other U.S. state.
-U.S. Bureau of Labor Statistics
OVERVIEW
3

OVERVIEW
Top Financial Services Companies with
Corporate Operations in Texas
Firms with total corporate revenues exceeding $1 billion
4
See also:
Insurance Carrier
Map, pg. 21
Representative sample only. Sources: D&B, company websites

The Lone Star State has provided substantial incentives
to help develop the financial services industry
over the past decade.
In 2003, the Texas Legislature authorized the $295
million Texas Enterprise Fund (TEF), a “deal closing”
fund created to attract businesses and new jobs to
Texas. The Legislature reauthorized the TEF in 2005,
2007, 2009, and 2011. As of fourth quarter 2011, the
TEF had invested over $57 million in financial
services-related projects. The table above details
these projects and the more than 12,700 jobs they
have committed to create.
In 2005, the Texas Legislature authorized an additional
business development program, the $200 million
Texas Emerging Technology Fund (TETF), which
Texas Enterprise Fund
Financial Services-Related Awards
Company City Description Jobs
Award
(Millions)
JP Morgan Chase San Antonio Commercial Banking 4,200 $15.0
Bank of America Richardson Mortgage Lending 3,876 $11.5
Automatic Data Processing (ADP) El Paso Payroll Services 1,028 $3.0
Fidelity Global Brokerage Westlake (Tarrant Co.) Investment Services 850 $4.5
Torchmark McKinney Insurance Carrier 500 $2.0
Comerica Dallas Commercial Banking 200 $3.5
Nationwide Mutual Insurance San Antonio Insurance Carrier NA NA
Allstate Insurance San Antonio Insurance Carrier 200 $1.1
Nationstar Mortgage Lewisville Mortgage Lending 400 $0.5
TDAmeritrade Fort Worth Investment Services 490 $1.2
PayPal / eBay Austin Financial Transactions 1,000 $2.8
TOTALS — — 12,744 $45.1
State Government Initiatives
OVERVIEW
was established to promote and finance breakthrough
technological innovations. The TETF, which was
most recently reauthorized in 2011, functions as a
state-operated venture capital fund for commercializing
new technologies developed across the state.
supplementing the network of private venture capital
in Texas, the TETF has helped secure millions in
matching grants from both inside and outside the state
and nurtured Texas-based startups when traditional
financing sources have been scarce.
The State of Texas also operates other specialized
financing programs through the Texas Economic
Development Bank, the Texas Department of Agriculture,
the Texas Department of Housing and Community
Affairs, and other divisions of the state government.
5

OVERVIEW
Financial Services Workforce
Texas is home to more than 28,800 financial services
firms, including banks, credit unions, credit
and consumer lending services, insurance
companies, investment firms, securities
brokerages, accounting firms, and others.
These companies employ more than
446,600 Texas workers.
Compared to the U.S. as a whole, The
Texas financial services workforce is
significantly more concentrated in commercial
banking, sales financing, and real estate
and consumer lending than other areas of
finance. In fact, Texas has the largest real
estate lending workforce of any state, with
more than 30,000 employed by mortgage
companies, construction lenders, etc.
Additionally, North Texas is home to a
large concentration of workers in the Auto
Finance sector (see pg. 12 for more detail).
The Texas insurance labor force, with more
than 80,500 workers, excluding insurance
agents and brokers, is one of the largest in
the country. Compared to other states,
6
60,000
40,000
Texas is more specialized in property and casualty
insurance and less so in health and medical insurance.
Financial Services Employment Change
in the 10 Largest States, Sep. 2001-Sep. 2011
20,000
0
-20,000
-40,000
-60,000
Texas
N. Carolina
Florida
Michigan
Georgia
Financial Services Employment in Texas
Second Quarter 2011
Pennsylvania
Sector (Industry Code) Employees Firms
Ohio
Illinois
California
New York
Source: U.S. Bureau of Labor Statistics
Average
Annual Wage
Banking, Credit, and Consumer Lending Services (522) 241,179 4,262 $53,664
Insurance Carriers (5241) 80,539 862 $68,484
Securities and Other Financial Investment Services (523) 48,544 4,843 $120,328
Funds, Trusts, and Other Financial Vehicles (525) 8,503 549 $84,552
Monetary Authorities/Central Bank (521) 1,731 NA $75,140
Accounting, Payroll, and Related Services (5412) 66,151 8,374 $56,316
TOTALS 446,647 18,890 ---
Source: Texas Workforce Commission

During the height of the financial crisis in 2009,
employment in all of the major financial services
sectors in Texas suffered some degree of decline.
Nevertheless, the state’s financial services employment
held up remarkably well, given the shocks that
threatened to upend the global financial industry in the
late 2000s. Texas employment in the Insurance
Carriers sector shrank by only 1% in 2009. Addition-
Financial Education
Texas is home to a number of world-class, accredited
business schools that provide a pipeline of trained
workers to the financial services industry. Texas
business schools have been highly ranked by major
publications including BusinessWeek, The Economist,
Financial Times, Forbes, U.S. News & World Report,
and The Wall Street Journal.
In Spring 2010, Texas graduated over 35,500 students
with business degrees, according to the National
Center for Education Statistics. Of those, over 9,900
received accounting or finance degrees.
ally, by mid 2011, the Accounting Services, Financial
Investment Services, and Funds & Trusts sectors had
all increased their employment in Texas to above prerecession
levels. Employment in the Banking, Credit,
& Lending sector, which was hard-hit in many parts of
the world during the recession, increased gradually in
Texas after the recovery began, and remains at about
2% below 2007 levels.
Texas Financial Services 5-Year Employment Trends, Q2 2007-Q2 2011
2007 2008 2009 2010 2011
Eight Texas Business Schools
Rank in U.S. Top 100
No. 17: The University of Texas at Austin
No. 32 (tied): Texas A&M University
No. 34 (tied): Rice University
No 40 (tied): The University of Texas at Dallas
No 57 (tied): Southern Methodist University
No 60 (tied): Baylor University (Hankamer)
No. 80 (tied): Texas Christian University
No. 94 (tied): The University of Houston
OVERVIEW
Source: U.S. News & World Report, Best Business Schools 2012
7

OVERVIEW
8
As one of twelve regional Federal Reserve
Banks (the Fed), the Dallas Fed serves the
Eleventh Federal Reserve District, which
consists of Texas, northern Louisiana, and
Southern New Mexico. The 12
regional Reserve Banks, along with
the Board of Governors in
Washington, D.C., make up the Fed
System.
Established by Congress in 1913,
the Fed’s primary mission is to
maintain the stability of the U.S.
financial system and to contain any
systemic risks in financial markets.
To accomplish this, the Fed
supervises and regulates U.S.
banking institutions, moderates
long-term national interest rates,
maintains sufficient currency
supplies, buys and sells U.S.
government securities, and more.
Regional Financial Hub:
The Federal Reserve Bank of Dallas
Dallas was selected as the headquarters of the
Fed’s Eleventh District in 1914 for, among other
factors, its developed
banking sector and
central location.
In 1999, the U.S.
Treasury selected the
Dallas Fed as the nation's
central processor for
Treasury coupons and to
manage the national
Electronic Transfer
Accounts (ETAs)
program. ETAs are used by millions of federal
benefit recipients receiving payments by
check, including veterans’ benefits, Social
Security, and civilian and military wages.
The Dallas Fed
provides regional
financial services, such as credit to lending
institutions from the Discount Window and
supervision over all chartered banks in the
region. The Fed branch also provides regional
economic research and analysis.
The Dallas Fed is headquartered near
downtown Dallas in a 17-story building
containing all the Bank’s financial operations
(pictured at left). The Dallas Fed employs over
1,100 people and maintains branches in
El Paso, Houston, and San Antonio.

Banking, Savings, and Credit Unions
Overview
Texas is home to more than 1,200 banking firms,
credit unions, and other savings and depository institutions,
which employ more than 146,600 Texans.
This sector is easily the largest financial sector in
Texas, comprising nearly 39% percent of all financial
services employment. Within the sector, commercial
banks dominate in terms of number of firms
and total workers (see table below).
According to the Texas Department of Banking
(DOB), which oversees the state’s banking industry,
Texas has a total of 639 chartered banks with $804.3
billion in assets and $744.2 billion in deposits. A list
of the TDOB’s top 10 banks follows on page 10.
Banking, Savings, and Credit Union Employment
Second Quarter 2011 (NAICS 5221)
Sector (Industry Code) Examples Employees Firms
Average
Annual Wage
Commercial Banking (52211) Commercial Banks 113,504 5,610 $52,260
Credit Unions (52213) Credit Unions 20,189 1,195 $40,612
Savings Institutions (52212) Savings & Loans 11,700 311 $50,700
Other Depository Credit Institutions (52219)
Private and
Industrial Banks
Comerica Headquarters
Established in Texas
In October 2007, Comerica Inc. relocated its
corporate headquarters from Detroit, Michigan,
to Dallas, Texas. Since the state invested
$3.5 million through the Texas Enterprise Fund
to incentivize the relocation, the project has
created approximately 200 direct jobs and
generated an estimated $16.2 million in capital
investment in the state. Comerica, a Fortune
1000 company, is the largest U.S. bank headquartered
in Texas. In addition, Austin serves
as the regional headquarters for the bank's
Technology & Life Sciences division, which
provides specialized services to that industry.
The Texas Credit Union Department (TCUD), the
primary regulator of all Texas-chartered credit unions,
reported in June 2011 that the state’s 202 statechartered
credit unions had $24.3 billion in assets, a
5.2% increase from a year earlier.
755 23 $71,240
TOTALS 146,149 1,222 ---
9

BANKING, SAVINGS, AND CREDIT UNIONS
Top 10 Banks in Texas by In-State Assets
September 2011
Bank Name Headquarters Assets
(in billions)
JP Morgan Chase Bank New York, NY $96.0
Bank of America Charlotte, NC $77.6
Comerica Bank Dallas, TX $60.8
Wells Fargo Bank San Francisco, CA $51.2
Wells Fargo Bank South
Central NA
Houston, TX $29.2
Compass Bank Birmingham, AL $26.0
Frost National Bank San Antonio, TX $19.5
Amegy Bank NA Houston, TX $11.4
Prosperity Bank El Campo, TX $9.6
International Bank of
Commerce
Laredo, TX $9.5
In 2010, one out of approximately every 11 U.S.
Banking, Savings, and Credit Unions workers was
employed in Texas. Additionally, many of the nation’s
top 50 bank holding companies, according to the Federal
Financial Institutions Examination Council
(FFIEC), have various types of operations in Texas.
They include the top five: Bank of America, JP Morgan
Chase, Citigroup, Wells Fargo, and Goldman
Sachs. Comerica, headquartered in Dallas, is ranked
No. 32 nationally by the FFIEC.
According to the FDIC, in Q4 2010, 615 FDICinsured
banking institutions in Texas had $374.8 billion
in assets. Of these, 181 were located in the Dallas
area, followed by 115 institutions in the Houston area,
with the rest distributed throughout the state.
Banks and savings institutions in Texas are performing
better than the nationwide averages, based on the
percentage of profitable institutions recently reported
by the FDIC. Only one Texas state-chartered bank
was closed in 2011.
10
Source: Texas Dept. of Banking
Federal Deposit Insurance Corp.
Expands Regional HQ in Dallas
Dallas is the headquar-
ters of one of the
Federal Deposit Insur-
ance Corporation’s
(FDIC) eight supervisory regional offices. The
Dallas Regional Office serves Texas, Colorado,
New Mexico, and Oklahoma and has Texas
field offices in Austin, Houston, and Lubbock.
Dallas is also the headquarters of the FDIC’s
Division of Resolution and Receivership, the
unit that handles failed banks.
The FDIC preserves and promotes public
confidence in the U.S. financial system by,
among other duties, insuring deposits in banks
for at least $250,000.
In 2008, the FDIC expanded the Dallas Region-
al Office, adding over 125,000 square feet and
hundreds of staff to handle failing and trou-
bled banks around the country. The Dallas
Regional Office employs 1,275 in Dallas, while
the Texas field offices employ 41 in Austin, 62
in Houston, and 35 in Lubbock.

Credit & Consumer Lending Services
Overview
Texas is home to more than 2,100 firms employing
over 73,500 workers in Credit Card Issuance, Sales
Financing, Consumer & Real Estate Lending,
International Trade Financing, and Other Non-
Depository Credit Services. About 19% of all state
financial services employees work in this sector, with
the largest portion employed by consumer and real
estate lending firms (see table below).
Credit & Consumer Lending Sector Employment
Second Quarter 2011 (NAICS 5222)
Sector (Industry Code) Examples Employees Firms
Average
Annual Wage
Credit Card Issuance (52221) Credit Card Banks 5,146 50 $58,552
Sales Financing 52222)
Loan & Finance
Companies
10,394 261 $69,420
Consumer Lending (522291) Cash Loan Firms 13,555 674 $51,324
Real Estate Credit (522292)
Mortgage Firms,
Construction Lenders
31,489 582 $63,336
International Trade Financing (522293) Trade & Export Banks 433 83 $99,684
All Other Non-Depository Credit Services
(522298)
Federal Home Loan
Banks, etc.
Alliance Data Signs Retail Giant
to Client Roster
Plano, Texas-based Fortune 1000 company
Alliance Data provides private-label and
commercial credit card services, shopper loyalty
programs, and consumer marketing and
analytics. The company’s clients include financial
services firms and retailers.
In October
2011, Fort
Worth, Texasbased
Pier 1
Imports announced its new, private-label credit
card agreement with Alliance Data. Alliance will
provide end-to-end private-label credit card
services from account acquisition to marketing
and customer service for Pier 1 Imports.
Other major Alliance Data customers include
21st Century Insurance, Kellogg, J.Crew,
Whirlpool, La Quinta Inns, and Kraft Foods.
9,814 494 $41,860
TOTALS 73,533 2,138 —
11

CREDIT & CONSUMER LENDING SERVICES
Texas is home to a large share of the national workforce
in this sector. In 2010, one out of approximately
every 8 U.S. credit and consumer lending employees
worked in Texas.
While Texas is a major center for U.S. real estate
finance, the state has not experienced residential
foreclosures at the high rates of many other large
states. The reasons for this have been attributed to
Texas’ rapid population growth, lower housing prices,
and state limits on home equity loans.
In June 2011, Gov. Rick Perry signed two bills to
regulate the over 3,000 payday and auto title lenders in
Texas. The bills establish a licensing and regulatory
framework for short-term consumer loans, while
stopping short of capping fees or loan amounts, and
bring the state’s payday and auto title lenders under
the authority of the state’s Consumer Credit Commission,
which regulates Texas’ credit industry. The bills
took effect January 1, 2012.
North Texas Drives Auto Finance Sector
The Dallas-Fort Worth metro area is home to a
significant number of major automotive finance
companies, including the headquarters of General
Motors (GM) Financial, CapitalOne Auto Finance,
and Santander Consumer Finance. Major
carmakers Daimler and Ford also run finance
operations out of the DFW region.
The largest firm in this auto finance “cluster”
formed in October 2010 when GM completed a
$3.5 billion acquisition of Fort Worth-based
AmeriCredit. The newly renamed GM Financial
remains headquartered in Texas, and allows the
automaker to once again offer in-house financial
solutions to car dealers across North America.
12
Cash America Spins Off Subsidiary
In September 2010, Fort Worth, Texas-based
Cash America International, a payday lender
serving customers who do not obtain financial
services from traditional lenders, announced
plans to spin off its online financial services
subsidiary, Enova International, in an initial
public offering. Enova serves consumers in the
U.S., the U.K., Australia and Canada.
Cash America is a public company (NYSE: CSH)
that owns and operates over 1,000 locations in
the U.S. and Mexico, and via the Internet,
Canada, the UK, and Australia. It has expanded
rapidly since its founding in 1983 with one retail
location in Irving, Texas.

Workforce Concentrations
The map below identifies the state’s Workforce
Development regions with above-average specializations
in credit and consumer lending services. The
highlighted regions are not the only areas in Texas
where workers in this sector can be found, but rather
represent areas with the greatest concentrations relative
to the size of the local labor force.
Credit & Consumer
Lending Services
Workforce
Concentration
Moderate
Above Average
High
Data: Texas Workforce Commission, Q4 2010
This analysis compares the portion of each Texas region’s
workforce employed in the sector to the portion
of the entire U.S. workforce employed in that sector.
The comparison provides a ratio that measures how
intensively a certain region is specialized in this industry,
and ranks it as “moderate,” “above average,”
or “high.”
North Central Region
Real Estate Credit
Debit Card Provider NetSpend Raises $200 Million in IPO
In October 2010, Austin-based financial services
company NetSpend raised more than $200 million
in its initial public offering. NetSpend is one of the
largest distributors of reloadable, prepaid debit
cards in the U.S., targeting consumers who are
unable or unwilling to deposit their money in a
bank. The company has issued more than 2 million
CREDIT & CONSUMER LENDING SERVICES
Capital Region
Sales Financing
Consumer Lending
Credit Card Issuing
Dallas/Fort Worth
Real Estate Credit
Consumer Lending
Sales Financing
Credit Card Issuing
Central Texas
Secondary Market
Financing
active cards, which it
distributes directly to
consumers via the
Internet or through
retailers. Founded in
Austin in 1999, NetSpend now employs about 500
workers in multiple states.
13

CREDIT & CONSUMER LENDING SERVICES
Major Companies
Top Credit & Consumer Lending Companies Headquartered in Texas
By Revenues
Company Name Headquarters Sector
Revenue
(Millions)
Alliance Data Systems Plano Credit Card Issuance $2,791
General Motors Financial Company Fort Worth Sales Financing $1,523
Cash America International Inc. Fort Worth Consumer Lending $1,293
MoneyGram Dallas Financial Transactions $1,167
EZCORP Inc. Austin Consumer Lending $733
First Cash Financial Services Inc. Arlington Consumer Lending $431
Amerisource Funding Inc. Houston Commercial Financing $341
Ace Cash Express Irving Consumer Lending $310
NetSpend Austin Financial Transactions $275
Nationstar Mortgage Lewisville Real Estate Credit $261
Texas Guaranteed Student Loan Corp. Round Rock Consumer Lending $190
Capital One Auto Finance Inc. Plano Sales Financing $154
Brazos Student Finance Corp. Waco Consumer Lending $125-$150
DHI Mortgage / D.R. Horton Austin Real Estate Credit $84
Ascension Capital Group Inc. Arlington Consumer Lending $80
ORIX USA Corp. Dallas Commercial Financing $54
North Texas Higher Education Authority Arlington Consumer Lending $49
First Investors Financial Services Group Houston Sales Financing $36
PreCash Inc. Houston Financial Transactions $25-$50
Santander Consumer USA Fort Worth Consumer Lending NA
Group 1 Automotive Houston Sales Financing NA
14
Representative sample only. Sources: D&B, LexisNexis, company websites
Top 5:

Investment
Investment-Related Investment Related Services
Overview
Texas is home to more than 5,400 investment services
firms employing nearly 56,900 workers. This ranks
Texas fourth in the nation for the size of its investment
services workforce. While about 29% of all financial
services firms in the state are investment-related, the
sector accounts for only 9% of all financial services
employment in the state, indicating that many Texas
investment firms are small enterprises. Securities
brokerage, portfolio management, and investment
advice dominate this sector (see chart below),
concentrating most heavily in the Dallas area.
Investment-Related Services Employment
Second Quarter 2011 (NAICS 523 and 525)
Sector (Industry Code) Examples Employees Firms
Security & Commodity Investment (5231)
Other Financial Investment Activities (5239)
Insurance & Employee Benefit Funds (5251)
Stock & Bond Brokerage,
Commodity Contract Trading
Portfolio Management,
Investment Advice
Insurance, Pension,
& Health Funds
Internet services have radically changed and increased
the size of the state’s investment-related industry, with
ever-growing numbers of investors, products, and
firms such as stock brokerages, operating online.
Fidelity Investments Expands at
300-Acre Texas Campus
In 2000, Massachusetts-based Fidelity
Investments located a major regional center in
Westlake, Texas, which now employs more
than 3,000 workers. In 2007, the company
announced plans for a 600,000 sq. ft.
expansion at the campus, which has since been
completed. The regional center currently
supports 25 of the company’s operating units.
Fidelity is one of the world’s largest providers
of financial services, offering investment
management, retirement planning, brokerage,
and employee benefits outsourcing.
Average
Annual Wage
25,068 997 $133,952
23,421 3,857 $106,236
3,897 120 $63,232
Other Investment Pools & Funds (5259) Mutual Funds, Trusts, Estates 4,606 431 $102,544
TOTALS 56,992 5,405 —-
15

INVESTMENT-RELATED SERVICES
Despite the global financial crisis of the late 2000s,
the number of securities brokerage establishments in
Texas exploded by 103% from 2005 to 2011, while
employment in that category grew by 24%.
Investment advising has remained another bright spot
in the Texas financial sector, adding more than 3,300
jobs between 2005 and 2011, which represents a
nearly 80% gain.
Some of the world’s largest and best-known
investment companies, such as Fidelity, Charles
Schwab, and Invesco, maintain substantial corporate
operations in Texas. Their presence underscores the
significance of the state as a major financial
investment center. (See pg. 22 for an expanded list of
the largest investment firms in Texas.)
Investment Funds in Texas
Texas is home to more than 1,300 private, definedbenefit
plans insured by the Pension Benefit
Guaranty Corp., a U.S. government agency that
regulates such plans. Texas also has nearly 1,800
public retirement systems, which are overseen by the
Texas Pension Review Board.
Additionally, Texas ranks No. 2 nationally for
mutual fund assets per state, with $855 billion,
according to the Investment Company Institute (ICI),
a national association of U.S. investment companies.
Texas Venture Capital
Investment,
by Industry (2010)
82% of venture capital investment
into Texas companies
was attracted from out of
state, according to the National
Venture Capital Association
(NVCA).
16
Texas Flexes Venture Capital Muscle
Nationwide, Texas ranks No. 2 in employment
and No. 3 in revenues for venturebacked
companies headquartered in the
state, according to economic analyst IHS
Global Insight.
In 2010, Texas ranked No. 4 nationally for
overall venture capital investment with $981
million invested, according to the National
Venture Capital Association (NVCA).
Over the period 1970 to 2010, Texas ranked
No. 3 nationally for the amount of venture
capital invested, according to the NVCA, with
$27.7 billion invested.
In 2010, the leading industries for venture
funding in Texas were energy, software, and
medical devices (see pie chart below).
Top Five Texas Venture Capital Firms
Company Name HQ
Total Assets
(in millions)
Austin Ventures Austin $3,900
SCF Partners Houston $1,500
Capital Southwest Dallas $502
Centerpoint Ventures Dallas $421
21st Century Group Dallas $166

Mutual Fund Management Firm
Moves HQ to Austin
Dimensional Fund Advisors (DFA), a mutual fund
firm with nearly $200 billion in assets under
management, relocated its headquarters from
Santa Monica, Calif., to Austin, Texas, in 2009.
The company had established its first office in
Austin three years earlier, citing the region’s low
cost of living, strong educational base and tax
climate as selling points.
DFA today manages about 25 mutual funds and
serves institutional
and
individual investors
through its
network of
affiliated advisors
around the
world.
Commodity Markets: Energy
As a leading oil and gas state, Texas has developed a
significant specialization in energy commodities and
futures contracts. The percentage of the Houston
workforce employed in the sector is nearly triple the
U.S. average, with more than 1,400 workers in
commodity contract trading and brokerage. This
places Houston behind only Chicago and New York
City in terms of sector workforce size in the U.S.
Since the Texas commodities trading sector is
focused primarily on oil and gas, Texas traders,
unlike their counterparts in
places like New York,
are more likely to deal
in contracts where
commodities, such as
crude oil, are
physically
delivered.
Originally created in
1937, the TRS is a
public entity gov-
erned by a board of
trustees appointed
by the Governor of Texas.
TRS now provides benefits for 1.3 million
members, or approximately one out of every
20 Texans.
In February 2011, the TRS Pension Trust Fund
was valued at $25.7 billion, which represented
a market return of 14.5% from its previous
valuation in August 2010.
The TRS pension trust fund is currently the
seventh largest public pension fund and
eighth largest overall in the nation, based on
asset size.
INVESTMENT-RELATED SERVICES
Major Pension Fund:
Teacher Retirement System of Texas
In 2010, the TRS was ranked the 23rd largest
pension plan in the world by P&I Magazine/
Towers Watson.
TRS investments lead pension funding sources,
ahead of state tax revenues and employee
contributions.
Some leading Texas companies in the energy trading
business include OTC Global and U.S. Energy
Markets, both of which are headquartered in Houston.
Additionally, many major multinationals have
energy trading offices in Houston, including
Citigroup Global Commodities, BNP Paribas Energy
Trading, Macquarie Energy, Deutsche Bank, Barclays,
Credit Suisse, LCM Commodities, DTE
Energy Trading, and others.
17

INVESTMENT-RELATED SERVICES
Workforce Concentrations
The map below identifies the state’s Workforce
Development regions with above-average specializations
in financial investment services. The highlighted
regions are not the only areas in Texas where workers
in this sector can be found, but rather represent areas
with the greatest concentrations relative to the size of
the local labor force.
Financial
Investment
Services Workforce
Concentration
Moderate
Above Average
High
Data: Texas Workforce Commission,
Q4 2010
Alamo Region
Portfolio Management
Mutual Funds
This analysis compares the portion of each Texas region’s
workforce employed in the sector to the portion
of the entire U.S. workforce employed in that sector.
The comparison provides a ratio that measures how
intensively a certain region is specialized in this industry,
and ranks it as “moderate,” “above average,”
or “high.”
Panhandle
Specialized Investors
TD Ameritrade Expands in Fort Worth, Commits to Hiring 490
In April 2011, the State of Texas announced a $1.2
million TEF investment in brokerage firm TD
Ameritrade for the expansion of its Fort Worth
facility. The investment is expected to create 490
new jobs within four years and generate $11 million
in capital investment. The TEF award will help the
company to expand its current facilities in the city.
18
Dallas County
Portfolio Management
Investment Advice
Investment Banking
Securities Brokerage
Commodity Contracts
Gulf Region
Portfolio Management
Commodity Contracts
Mutual Funds
Capital Region
Investment Advice
Venture Capital
Pension Funds
TD Ameritrade, one of the nation's leading investment
firms, provides brokerage services and
processes trades and other financial transactions
for over eight million U.S. client accounts.

Major Companies
Company Name Primary Location(s) Line Of Business
INVESTMENT-RELATED SERVICES
Top Investment-Related Companies with Corporate Operations in Texas
by Revenues
Revenue
(Millions)
Goldman Sachs Dallas Investment Services $45,967
Morgan Stanley Houston, Austin Investment Services $38,036
Merrill Lynch / Bank of America Houston, Dallas, Austin Investment Services $37,492
Macquarie Group Houston Investment Services $13,340
Fidelity Investments Westlake (Fort Worth) Fund Management $11,490
BNP Paribas Dallas, Houston Investment Services NA
State Street Austin Investment Services $9,716
Deutsche Bank Securities Houston Investment Services $7,588
Quantum Energy Partners Houston Private Equity $5,700
Charles Schwab Austin Securities Brokerage $4,474
RBC Wealth Management Houston Investment Services $3,887
Invesco Dallas, Houston Fund Management $3,487
Raymond James Financial Dallas, Houston Securities Brokerage $3,400
AXA Financial Dallas, Houston Investment Advice & Brokerage $3,250
Jeffries Group Dallas, Houston Investment Services $2,797
TD Ameritrade Fort Worth Securities Brokerage $2,767
Stifel, Nicolaus & Company San Antonio, Houston Investment Services $1,400
Energy Spectrum Capital Dallas Private Equity $1,300
UBS Financial Services Dallas, Houston, San Antonio Investment Services $1,300
H.D. Vest Irving Investment Services $1,000
Representative sample only. Sources: D&B, LexisNexis, company websites
19
Top 5:

Insurance Carriers
Overview
Texas is home to approximately 860 insurance carriers
employing more than 80,500 workers. That workforce
size nearly ties Texas with California as the largest in
the country. While about 21% of all financial services
workers in the state are employed by insurance
carriers, the sector accounts for less than 5% of all
Texas financial services firms, revealing that most of
the state’s insurance carriers are large employers.
Compared to other states, the Texas workforce is less
specialized in health and medical insurance carriers,
and more so in property and casualty carriers.
Insurance Carrier Sector Employment
Second Quarter 2011 (NAICS 5241)
The Texas insurance industry is regulated by the
Texas Department of Insurance (TDI). The TDI’s
latest annual report indicates the state’s insurance
market is adding new insurers and the state’s 2009
total insurance market premiums totaled approximately
$102.2 billion, led by the property & casualty area
(see chart below).
Five Fortune 1000 insurance carriers are headquartered
in Texas, including USAA (San Antonio),
Torchmark Corporation (McKinney), American
National Insurance (Galveston), HCC Insurance
Holdings (Houston), and Stewart Information Services
(Houston).
2009 Texas Insurance Market
(in billions)
Sector (Industry Code) Employees Firms
Type of Business Texas Premiums
Property & Casualty $37.7
Accident & Health $22.5
Annuity $19.7
Health Maintenance Org. (HMO) $12.4
Life $8.9
Title $1.0
Other $3.8
TOTAL $106.0
Source: TDI 2010 Annual Report
Average
Annual Wage
Direct Life, Health & Medical Insurance Carriers (52411) 30,678 257 $68,484
Direct Property, Casualty & Title Insurance Carriers (52412) 49,019 588 $67,808
Reinsurance Carriers ( 52413) 842 24 $108,264
20
TOTALS 80,539 862 ---

Top Insurance Carriers with
Corporate Operations in Texas
Firms with total corporate revenues exceeding $1 billion
INSURANCE CARRIERS
Representative sample only. Sources: D&B, company websites
21

INSURANCE CARRIERS
Property & Casualty Carriers
Texas leads the nation with the largest property and
casualty insurance workforce of any U.S. state.
Among Texas metro areas, San Antonio
has the highest concentration of
property insurance workers in the state.
This local cluster is anchored by the
headquarters of industry leader USAA.
Founded in San Antonio in 1922, the company today
provides auto insurance, homeowners insurance, and
other financial services to active and former members
of the U.S. military around the world. USAA employs
more than 14,800 workers in San Antonio alone. The
city is also the U.S. headquarters location of Bermuda
-based property insurer the Argo Group.
The Houston metro area is headquarters to three
multi-billion dollar property insurance firms. American
National Insurance has operated out of Galveston,
Texas, for more than 100 years. Stewart Information
Services, which provides real estate title insurance,
and HCC Insurance, which offers specialized property
and casualty coverage for sectors such as marine and
aviation, are both based in Houston.
Allstate Locates 600-Job Facility
in San Antonio
In February 2010, Gov. Rick Perry announced a
Texas Enterprise Fund investment of $1.1 million
to bring Allstate's
new bilingual
customer
service center to
San Antonio. The 75,000 sq. ft. center will enable
Illinois-based Allstate to tap into a growing market
of bilingual Americans. The center is expected
to create 600 new jobs in Texas, along with more
than $11 million in capital investment. Allstate is
one of the largest property insurers in the U.S.
22
Insurance Giant Moves HQ to Texas
In March 2006, the Fortune 1000-ranked Torchmark
Corp. announced the relocation of its headquarters
from Alabama to McKinney, Texas. The
state of Texas invested $2 million through the
Texas Enterprise Fund to close the deal, which
created 500 new jobs in Texas. Torchmark also
received more than $3 million in local incentives.
Torchmark is
a holding
company
specializing in
life and
supplemental
health insurance.
Its
subsidiaries include Liberty National Insurance
and Globe Life and Accident Insurance.
Life, Health & Medical Carriers
Dallas-Fort Worth has the largest health and medical
insurance workforce in Texas, with more than 7,300
workers in the sector. In addition to the headquarters
of life and health insurer Torchmark Corp. (see
sidebar above), DFW is also home to corporate
operations of WellPoint, UnitedHealth Group, Cigna,
Aegon, Met Life, and others. The city of Waco,
Texas, has also established a significant concentration
in this sector, with nearly 2,000 life insurance workers
in the area. Three leading firms headquartered in
Waco include American Income Life, Texas Life
Insurance, and American Amicable Life, all of which
are subsidiaries of larger national firms.
The State of Texas has also worked to bolster the
health insurance industry through legislation. In
September 2003, the Texas Medical Malpractice and
Tort Reform Act went into effect, leading to decreases
in insurance premiums and an increase in the number
of insurance companies entering the Texas marketplace,
according to the Texas Medical Association.

Workforce Concentrations
The map below identifies the state’s Workforce
Development regions with above-average specializations
in the insurance carrier sector. The highlighted
regions are not the only areas in Texas where workers
in this sector can be found, but rather represent areas
with the greatest concentrations relative to the size of
the local labor force.
Insurance
Carrier Workforce
Concentration
Moderate
Above Average
High
Texas Workforce Commission, Q4 2010
Alamo Region
Property Insurance
In March 2011, Nationwide Mutual Insurance
celebrated the groundbreaking of its 300,000-sq. ft.
corporate campus in San Antonio. The new facility
will add 800 new jobs and generate more than $94
million in capital investment in the city. The company,
which currently employs more than 1,000 in San
This analysis compares the portion of each Texas region’s
workforce employed in the sector to the portion
of the entire U.S. workforce employed in that sector.
The comparison provides a ratio that measures how
intensively a certain region is specialized in this industry,
and ranks it as “moderate,” “above average,”
or “high.”
Panhandle
Property Insurance
West Central Texas
Health Insurance
Nationwide Insurance Locates New Campus in San Antonio
INSURANCE CARRIERS
Dallas County
Property Insurance
Life Insurance
Health Insurance
Heart of Texas
Life Insurance
Property Insurance
Antonio, was lured, in part, by
the region’s pool of skilled and
bilingual labor. Ohio-based
Nationwide is one of the country’s largest property
insurers. The San Antonio campus is scheduled to
open in mid 2012.
23

INSURANCE CARRIERS
Major Companies
Top Insurance Carriers with Corporate Operations in Texas
by Revenues
Company Name Primary Location(s) Primary Type
UnitedHealth Group
Dallas, San Antonio,
Harlingen
Revenue
(Millions)
Health & Medical 94,155
Zurich Financial Services Dallas, Houston Property & Casualty 70,272
Aegon Plano, Bedford Life 65,172
State Farm Mutual Insurance Dallas, Austin, El Paso Property & Casualty 63,200
WellPoint Plano Health & Medical 58,801
Met Life Dallas Life 52,717
Allstate San Antonio Property & Casualty 31,400
Swiss Re Dallas, Houston Reinsurance 28,835
Travelers Richardson Property & Casualty 25,110
New York Life Dallas, Houston, Austin Life 24,148
Cigna Plano Health & Medical 21,253
Tokio Marine Nichido Houston Property & Casualty 21,029
Nationwide Mutual Insurance San Antonio Property & Casualty 20,751
USAA San Antonio Property & Casualty 17,946
ACE Ltd. Dallas, Houston, Amarillo Property & Casualty 16,006
Progressive Austin Property & Casualty 14,963
Geico Dallas Property & Casualty 13,576
Chubb Dallas Property & Casualty 13,319
American General Life / AIG Houston Life 6,005
Amerigroup San Antonio Health & Medical 5,806
Farmers Austin Property & Casualty 5,515
Chartis Dallas Property & Casualty 3,759
FM Global Plano Property & Casualty 3,648
Torchmark McKinney, Waco Life 3,367
HealthSpring Houston, Irving Health & Medical 3,135
24
Representative sample only. Sources: D&B, LexisNexis, company websites
Top 5:

Accounting & Related Services
Overview
Texas is home to approximately 8,400 accounting and
related firms employing more than 66,100 workers.
Certified Public Accountants (CPAs) dominate this
sector, followed by Other Accounting Services (see
table below).
Accounting and related services are critical to economic
functions across all industries and integral to
financial services. Accounting is widely referred to as
the language of business because it produces financial
statements necessary for businesses to run smoothly.
At the state, national and international levels, financial
statements are certified by accountants and auditors
with the expectation that the results are accurate and
independent.
Accounting & Related Activities Employment
First Quarter 2011 (NAICS 5412)
Sector (Industry Code) Employees Firms
The Texas State Board of Public Accountancy
(TSBPA) regulates the state’s accountants and
auditors, as well as examining, certifying, and licensing
them. The TSBPA reports that Texans testing to
become CPAs have increased steadily in recent years,
totaling 10,578 in 2009, the most recent data available.
All of the Big Four accounting firms have offices
across Texas.
In 2009, Texas graduated a total of 3,067 students
with Bachelor’s Accounting degrees and 1,304
students with Master’s Accounting degrees, according
to the latest data from the Texas Higher Education
Coordinating Board (THECB).
The Dallas-Fort Worth region is home to the largest
accounting-related workforce in Texas, with more
than 23,000 workers in the sector. The portion of all
Dallas County jobs that are in accounting, tax prep, or
other similar services is 60% above the national
average.
Average
Annual Wage
Offices of Certified Public Accountants (541211) 29,148 3,778 $72,228
Tax Preparation Services (541213) 8,556 1,308 $28,340
Payroll Services (541214) 9,790 437 $47,684
Other Accounting Services (541219) 18,656 2,871 $48,776
TOTALS 66,151 8,374 ---
25

ACCOUNTING & RELATED SERVICES
Major Companies
Top Accounting Services Companies with Operations in Texas
by Revenues
Deloitte
Company Name Location(s) Type
PricewaterhouseCoopers
Ernst &Young
KPMG
ADP
Ryan, Inc..
Texas University Accounting
Programs Rank Nationally
Bloomberg BusinessWeek’s 2010 Top Schools
for Accounting picked 6 Texas universities:
No. 16: The University of Texas at Austin
No. 29: The University of Texas at Dallas
No. 40: Texas Christian University
No. 46: Texas A&M University
No. 83: The University of Houston
No. 96: Texas Tech University
Fort Worth, Irving, Houston,
Austin, San Antonio
Dallas, Fort Worth,
Houston, Austin
Dallas, Fort Worth, Houston,
Austin, San Antonio
Dallas, Fort Worth, Houston,
Austin, San Antonio
Dallas, Houston, El Paso,
Austin, San Antonio
Dallas, Houston, El Paso,
Austin, San Antonio
Revenue
(Millions)
Accounting, Tax Advisory 26,600
Accounting, Tax Advisory 26,570
Accounting, Tax Advisory 21,260
Accounting, Tax Advisory 20,110
Payroll Services
Accounting, Tax Advisory $212.4
Weaver & Tidwell LLP Fort Worth CPAs $26.1
MFR, P.C. Houston CPAs $20
UHY Advisors Houston CPAs $20
26
Representative sample only. Sources: D&B, company websites
Top 5:

Appendix: Selected Industry Resources
American Bankers Association (ABA) at www.aba.com/
The ABA is a national trade association representing banks of all sizes and charters and is the voice for the nation's
$13 trillion banking industry and its 2 million employees.
Consumer Service Alliance of Texas (CSAT) at http://consumerserviceallianceoftexas.org/
A state trade association representing the interests of consumers and Credit Service Organizations. The website
offers best practices and links to articles, legislation, studies, and much more.
Texas Credit Union Department (TCUD) at www.cud.texas.gov/
The TCUD is a state agency and the primary regulator of all Texas-chartered credit unions.
Texas Department of Savings and Mortgage Lending (SML) at www.sml.texas.gov
The SML is a state agency operating under the jurisdiction of the Financial Commission of Texas. Its two key
areas of regulatory responsibility are the chartering, regulation and supervision of the state’s thrift industry; and the
licensing/registration and regulation of the state’s mortgage industry.
Federal Deposit Insurance Corporation (FDIC) at www.fdic.gov/
The FDIC is an independent agency of the U.S. federal government that preserves and promotes public confidence
in the U.S. financial system by insuring deposits in banks and thrift institutions. See quick links for bankers at
http://www.fdic.gov/quicklinks/bankers.html.
Federal Reserve Bank of Dallas (Dallas Fed) at www.dallasfed.org/
The Dallas Fed is one of twelve regional Reserve Banks in the Federal Reserve System. Its website holds a wealth
of data and publications covering national and regional economic issues, banking, and much more.
Federal Reserve System (Fed) at www.federalreserve.gov/
The Fed is the nation’s central bank and its primary mission is to maintain the stability of the U.S. financial system.
See Texas state profile at www.fdic.gov/bank/analytical/stateprofile/Dallas/tx/TX.xml.html. See Texas FDIC
insured banks at http://fdicinsuredbanks.com/fdic/Texas.htm.
The Finance Commission of Texas (FCT) at www.fc.state.tx.us/
The FCT is a state agency that ensures that the banks, savings institutions, consumer credit grantors, and other regulated
entities chartered or licensed under state law operate as sound and responsible institutions. The FCT oversees
the Texas Dept. of Banking, Texas Dept. of Savings and Mortgage Lending, and Office of Consumer Credit
Commissioner.
Independent Bankers Association of Texas (IBAT) at www.ibat.org/
IBAT is a state trade industry association that promotes the interests of independent banking.
Investment Company Institute (ICI) at www.ici.org/
ICI is a national association of U.S. investment companies.
Office of Consumer Credit Commissioner (OCCC) at www.occc.state.tx.us/
The OCCC is a state agency that regulates the credit industry and educates consumers and creditors.
Office of the Comptroller of the Currency (OCC) at www.occ.gov/
The OCC's primary mission is to charter, regulate, and supervise all national banks and federal savings associations.
It also supervises the federal branches and agencies of foreign banks.
27

SELECTED INDUSTRY RESOURCES
Texas Bankers Association (TBA) at www.texasbankers.com/
The TBA is a state industry association representing all Texas banking institutions. The website offers membership
only access to magazines, a company lookup service, state banking statistics, etc., with limited public access
data.
Texas Comptrollers of Public Accounts (CPA) at www.window.state.tx.us/
The CPA is a state agency. The Comptroller is the chief steward of the state’s finances, acting as tax collector,
chief accountant, chief revenue estimator and chief treasurer for all of state government.
Texas Credit Union Department at www.tcud.state.tx.us/
TCUD is a state agency that serves as the primary regulator of all Texas-chartered credit unions.
Texas Department of Banking (DOB) at www.dob.texas.gov/
The DOB is a state agency operating under the jurisdiction of the Financial Commission of Texas. It is charged
with ensuring Texas has a safe, sound, and competitive financials services system. New applicable rules, legislation
and other updates are posted at www.dob.texas.gov/news/newsevents.htm. State industry data including Top
100 Banks are posted to the website for public access.
Texas Department of Insurance (TDI) at www.tdi.texas.gov/
The TDI is a state agency that regulate the insurance industry while protecting the people and businesses that are
served by insurance. The TDI website provides a wealth of business and consumer information.
Texas Department of Savings and Mortgage Lending (SML) at www.sml.texas.gov/
The SML is a state agency operating under the jurisdiction of the Financial Commission of Texas. Its two key areas
of regulatory responsibility are the chartering, regulation and supervision of the state’s thrift industry; and the
licensing/registration and regulation of the state’s mortgage industry.
Texas Financial Services Association (TFSA) at www.texasfsa.org/
The TFSA is a non-profit trade association representing major national and international corporations licensed by
the state of Texas to provide a broad range of financial services . Most TFSA website data is members-only access.
Texas Mortgage Bankers Association (TMBA) at www.texasmba.org/
The TMBA is a state trade industry association serving the Texas real estate finance industry.
Texas Pension Review Board (PRB) at www.prb.state.tx.us/
The PRB is mandated to oversee all Texas public retirement systems, both state and local, in regard to their actuarial
soundness and compliance with state law.
Texas State Securities Board (SSB) at www.ssb.state.tx.us
The SSB is responsible for regulating the securities industry in Texas. It registers securities offered or sold in Texas
and oversee the firms and individuals selling securities or providing investment advice to Texans.
Texas State Board of Accountancy (TSBA) at www.tsbpa.state.tx.us/
The TSBA is a state agency that issues certified public accountant (CPA) certificates in Texas and ensures that
those certified meet the requirements to perform competently. The website includes a license lookup area, publications,
some relevant legislation, university statistics, and much more.
28

Office of the Governor
Economic Development and Tourism
PO Box 12428, Austin, TX 78711
512-936-0101
www.TexasWideOpenForBusiness.com