More Banks Announce Wage Increases, Bonuses After Tax Reform

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.