J.P. Morgan Chase, the nation’s largest bank holding company by assets, today announced a $20 billion set of investments in employees, its branch network and philanthropic commitments. The company joined a wave of banks making similar announcements after the historic tax reform bill was signed in December, and it attributed the news not only to the tax bill but also to the firm’s performance and “a more constructive regulatory and business environment.”
Chase said it would open up 400 new branches — employing 3,000 — in up to 20 new markets over the next five years in an effort to boost consumer and small business lending. Specifically, Chase said it would aim to boost its small business lending by nearly 20 percent, or $4 billion.
The company announced a 25 percent increase — to $50 billion — in its commitment to make home loans in low-to-moderate-income communities, including increases in homeownership grants and an expansion in markets eligible for the grants. It said it would increase its philanthropic giving by 40 percent, reaching $1.75 billion over the next five years.
Chase also said it would raise wages 10 percent on average to $15-18 per hour depending on local cost of living, effective next month, benefiting 22,000 hourly employees. It also said it would reduce health insurance deductibles for employees making less than $60,000 per year.
The American Bankers Association continues to publicize post-tax reform investments by banks at aba.com/EnergizingTheEconomy. Other announcements in recent days and weeks include:
- Waterbury, Conn.-based Webster Financial Corporation announced a $1,000 bonus this quarter to full-time employees below the VP level, said it would raise its minimum wage to $15 per hour by year’s end, said it would increase philanthropic giving by $1 million in 2018 and enhanced employee professional development.
- Stifel Financial Corporation in St. Louis paid a $1,500 bonus to most of its 7,000 non-exempt, non-executive, non-commissioned employees.
- Dime Community Bank in Brooklyn said it would speed up technological investments and hire more employees, as well as paying a one-time $1,000 bonus to non-executive employees and instituting an employee giving match.
- Phoenix-based Western Alliance Bancorporation is raising the base pay of the lowest-paid half of its workforce by 10 percent, including both base pay and bonus, as well as increasing its 401(k) match.
- Flushing Financial Corporation in Uniondale, N.Y., announced a $1,000 bonus for full-time employees and a $500 bonus for part-timers.
- First Federal Community Bank in Dover, Ohio, paid a $1,000 bonus to full-time employees and a $500 bonus to part-timers and increased charitable donations.
- Davis Trust Company, Elkins, W.Va., provided a 3 percent across-the-board pay increase on top of year-end merit and cost-of-living increases.
- FMS Bank in Fort Morgan, Colo., increased its 401(k) match by an additional percentage point in 2018.