With the signing of the tax reform bill last week came a flurry of announcements from banks of all sizes about how they plan to pass on the savings they will see from corporate tax cuts to their employees, customers and communities:
- BB&T will raise its hourly minimum wage from $12 to $15 per hour effective Jan. 1; pay a one-time $1,200 bonus to 27,000 employees and donate an additional $100 million to the bank’s philanthropic fund.
- Bank of America will pay a $1,000 bonus to approximately 145,000 employees.
- PNC will provide an additional $1,500 to employees in defined benefit pension plans; pay a $1,000 bonus to 47,500 employees — approximately 90 percent of the company’s workforce — in the first quarter of 2018; raise the minimum hourly wage to $15 per hour; and make a $200 million contribution to the PNC Foundation, which supports early childhood education.
- SunTrust will increase minimum wage to $15 per hour; offer merit-based pay increases for certain other hourly employees; contribute a one percent 401(k) contribution to retirement savings for all employees; give a $1,000 financial incentive for all employees that complete a financial fitness program; and contribute an additional $50 million in community grants to support financial wellness initiatives.
- Gate City Bank in Fargo, N.D., will pay a one-time, $1,000 bonus to all non-management employees on Jan. 15; contribute $500,000 toward offering new and existing customers free appraisals on home remodels, purchase or refinances; and donate an additional $500,000 to support charitable causes.
- Windsor Federal in Windsor, Conn., will pay a $250 bonus to all employees (excluding senior management), and raise the hourly minimum wage to $15 per hour.
- Aquesta Bank in Cornelius, N.C., will pay all employees a cash bonus of $1,000 and raise minimum hourly wage to $15 per hour.
Several other banks — including Fifth Third Bancorp, FirstCapital Bank of Texas, Washington Federal and Wells Fargo — have announced similar compensation bonuses and charitable contributions as a result of tax reform. ABA will continue to collect news of these announcements in order to amplify the message externally. Banks are asked to send press releases or other announcements to [email protected].
