Following the historic tax reform law’s enactment, banks of all sizes continue to increase frontline employee wages, provide employee bonuses, invest in new technology and make additional charitable contributions:
- Regions Financial, headquartered in Birmingham, Ala., said it would raise its minimum wage to $15 per hour by year’s end, affecting 25 percent of its workforce. It said it would increase its capital expenditures by $100 million, or 50 percent, over 2017 levels to enhance the customer experience and contribute $40 million to the company’s charitable foundation to support financial education, job training, economic development and affordable housing.
- Hawaii’s four largest banks — First Hawaiian Bank, Bank of Hawaii, American Savings Bank and Central Pacific Bank — each announced plans to raise their minimum wages to at least $15 per hour and to pay $1,000 or $1,500 bonuses.
- Providence, R.I.-based Citizens Financial Group said it would give $1,000 bonuses to approximately 12,500 employees who make under $150,000 per year. The company is also giving $10 million to its foundation.
- Salt Lake City-based Zions Bancorporation said it would increase wages for more than 40 percent of its approximately 10,000 employees and provide $1,000 bonuses to nearly 80 percent of them. The company is contributing $12 million to its charitable foundation, which makes educational and human services grants in its markets.
- First Horizon National Corp., based in Memphis, Tenn., paid a one-time $1,000 bonus for employees who do not otherwise qualify for the bank’s bonus plan.
- Kansas City, Mo.-based Commerce Bancshares said it would pay $1,000 bonuses to non-bonus-eligible full-time employees and $250 to part-time employees. About three-quarters of its workforce is eligible. In 2017, the company contributed $32 million to its charitable foundation, including a $25 million gift in the fourth quarter when the tax bill was signed.
- Summit State Bank, Santa Rosa, Calif., will pay $2,000 bonuses to its non-executive employees.
- HarborOne Bank in Brockton, Mass., said it will raise its minimum wage to $15 per hour, effective in February, and pay $500 bonuses to more than 600 employees.
- Community Trust Bancorp, Pikeville, Ky., will pay a $1,000 bonus to non-executive full-time employees and $500 to part-time employees.
To help the public and policymakers see the real-world effects of tax reform on bank employees, customers and local communities, the American Bankers Association has launched a site documenting banks’ post-tax reform efforts.
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