Tax Reform Allows Banks to Invest in Employees and Communities

America's Banks Announce Wage Increases, Charitable Contributions and New Investments

The first major overhaul of the tax code in three decades includes a long list of major changes such as lower business tax rates. Banks previously paid one of the highest effective tax rates of any industry, so the reform represents a significant change for many institutions.

Since the bill's passage, banks of all sizes have announced individual plans to invest their projected tax savings in ways that will help energize the U.S. economy and help their communities. Many are choosing to invest in their most important asset—their people—by boosting wages and other compensation. Others are expanding their philanthropic commitments and investing in new technologies to enhance customer experience.

ABA fully supports these bank initiatives and believe they highlight how banks will use tax reform to benefit the broader economy and all Americans.

Here is a list of public announcements by banks so far in alphabetical order (updated as of 1/19/2018):

Aquesta Financial Holdings

  • $1,000 bonus to all employees
  • Increase of minimum wage to $15 per hour

American Community Bank & Trust

  • $500.00 gift for every employee
  • Hiring three new positions: a commercial banker, marketing/social media specialist and a technology specialist

American Savings Bank

  • Increase minimum wage to $15.25 an hour
  • $1,000 bonus to most employees

Associated Bank

  • Increase of minimum wage to $15 per hour
  • $500 one-time bonus to all hourly, non-commissioned employees, about 55% of its workforce

Bank Midwest

  • Awarded additional bonuses to all 223 employees, $500 for full time and $250 for part-time
  • Assessing other avenues to enhance long-term benefits for our employees

Bank of Advance

  • $1,000 bonus to all part-time and full-time employees

Bank of America

  • 145,000 employees will receive a one-time bonus of $1,000

Bank of Hawaii

  • Increase of minimum wage to $15 per hour
  • $1,000 bonus to most employees

Bank of the James

  • Increase of minimum wage to $15 per hour for employees with 1 year of more of service

BB&T

  • Increase of minimum wage to $15 per hour
  • A special, one-time $1,200 bonus to be paid in January 2018, for almost three-fourths of its associates (about 27,000
  • A $100 million donation to BB&T's philanthropic fund to support local charitable organizations

Camden National Bank

  • $1,000 cash bonus to non-executive, full time employees
  • $750 cash bonus to all part-time employees

Capital One

  • Increase minimum wage to $15 per hour for U.S. employees

Central Bank of St. Louis

  • $1,000 bonus to full-time employees
  • $500 bonus to part-time employees

Central Pacific Bank

  • Increase starting pay rate to $15.25 an hour
  • $1,000 bonus to all employees except executives on its managing committee

Citizens Financial Group

  • $1,000 cash bonus to approximately 12,500 employees
  • $10 million to the Citizens Charitable Foundation

Comerica

  • Increase of minimum wage to $15 per hour
  • $1,000 bonus to 4,500 non-officer employees

Commerce Bancshares

  • Cash bonuses to 3,450 employees (75% of workforce)
  • $1,000 cash payment was made to all of these full-time employees
  • $250 cash payment to all part-time employees
  • Donated $32 million of appreciated stock to The Commerce Bancshares Foundation, which provides grants to nonprofit organizations in each of the bank’s markets

Community Trust Bancorp

  • $1,000 bonus to non-executive full-time employees
  • $500 bonus to part-time employees

Customers Bank

  • Will offer a new Bonus Checking account that offers 2.00% APY on monthly average balances up to $100,000 (no fees and no minimum balance requirements)
  • Will increase its charitable giving by $1 million in 2018
  • Will continue to invest in its talent, who all already earn at least $15 per hour 

F.N.B. Corporation

  • Increase minimum wage to $15 per hour
  • One-time 401(k) contribution, totaling $1 million, to vast majority of employees

Fidelity

  • $1,000 bonus to full-time employees earning less than $100k
  • $500 cash payment to part-time employees

Fifth Third Bancorp

  • Increase of minimum wage to $15 per hour

First Bank

  • A $1,000 bonus for full-time employees and $500 bonus for part-time employees
  • Increased minimum wage
  • Created a 9% salary increase pool for existing employees

FirstCapital Bank of Texas

  • $500 bonus to 197 non-executive bank employees

First Financial Bank

  • Increase minimum wage to $15 per hour
  • $3 million contribution to its newly established charitable foundation

First Financial Northwest, Inc.

  • A $1,000 after-tax bonus for all non-executive employees

First Hawaiian Bank

  • Increase of minimum wage to $15 per hour
  • $1,500 bonuses to most employees

First Horizon

  • $1,000 bonus to employees

First Merchants Bank

  • Raised minimum wage by $1 per hour
  • $500 one-time bonus to non-executive employees
  • Tripled the number of schools to which it delivers financial literacy programs (10 to 35), impacting more than 10,000 students by the end of the school year.

First Midwest Bancorp, Inc.

  • Increased minimum wage to $15 per hour
  • A bonus up to $1,035 to nearly 85% of employees
  • A $2 million contribution to the First Midwest Charitable Foundation

Gate City Bank

  • A commitment to reinvest an additional $1.6 million in 2018
  • A $1,000 bonus to all employees by Jan. 15
  • $500,000 in free home appraisals for its new and existing customers who would like to remodel, purchase or refinance a home
  • An additional $500,000 in charitable donations to local organizations

Great Southern Bancorp, Inc.

  • A $1,000 cash payment will be made to all full-time employees and a $500 cash payment will be made to all part-time employees who were employed by the company on December 31, 2017

Great Western Bancorp, Inc

  • Raised minimum wage to $15 per hour
  • A $500 bonus or wage increase for nearly 70% of its workforce
  • Enhanced employees' health care offerings effective for the 2018 enrollment period
  • Doubled its annual contribution to its Making Life Great Grants community reinvestment program

Gulf Coast Bank and Trust Company

  • Raised minimum wage to $12 dollars per hour
  • A 50% increase in funds to be given to local charities through its Community Rewards Program

HarborOne Bank

  • Increase of minimum wage to $15 per hour
  • $500 bonus to more than 600 employees

Hawaii National Bank

  • A $1,000 bonus to all employees
  • Increased minimum wage to $15 per hour

Heartland Bank

  • $1,000 financial bonus to all full-time, non-Executive Committee, associates
  • $500 financial bonus to all part-time, non-Executive Committee, associates

HomeStreet Bank

  • Increase minimum wage to $15 per hour

Inland Northwest Bank

  • Increase starting wage to $15 per hour
  • $500 year-end bonus to all employees except senior executives

KeyBank

  • Will raise minimum wage to $15 per hour
  • Will contribute $1,00 to the 401(k) retirement plan of every full-time employee who makes $100,000 per year or less and $500 to the 401(k) plan of every part-time employee. (80% of workforce will receive the one-time contribution)

Kish Bancorp

  • Expanding 2018 budget for support of community organizations and charitable organizations by a minimum of $50,000 (a 33% increase)
  • A one-time bonus of $1,000 to all full-time team members and a $500 bonus to part-time employees
  • Will increase minimum wage for all entry level personnel, as well as increased salary ranges for all non-exempt hourly employees
  • Enhanced investment in technology, infrastructure, capital equipment, and facilities (approx. $10 million over the next three years)

MainSource Financial Group

  • Increase of minimum wage to $15 per hour (20% of its 1,000 employees)

Meridian Bancorp, Inc., (parent company of East Boston Savings Bank)

  • Increase of minimum wage to $15 per hour
  • An additional 20% will be added to the 2017 bonus as part of the Bank’s Incentive Compensation Plan that will be paid to 500+ employees
  • Increase to the Capital Spending Budget as a result of plans to build six new branch locations in 2018
  • Increase charitable giving by targeting $1 million in donations to community and non-profit organizations in 2018

National Bank Holdings Corporation (parent company of Bank Midwest)

  • $1,000 bonus to all of its non-commissioned associates who earn a base salary of less than $50,000 annually and are in good standing

Navient

  • $1,000 bonus to 98% of employees

NexTier Bank

  • A bonus of $1,000 to all employees
  • Will increase minimum wage throughout 2018
  • Will provide employees with educational benefits such as tuition reimbursement, internal training, and a variety of industry training opportunities

Ohnward Bancshares

  • Payment of a $1,000 tax relief, holiday bonus to every company employee

Peoples Bank (Magnolia, Ark.)

  • $500 bonus to all employees
  • Added $50,000 to its Vanguard Charitable Endowment

Peoples Bank (Bellingham, Wash.)

  • Increase minimum wage to $15 per hour
  • Increase 401(k) match one point to eight percent for all eligible employees

Pinnacle Bank

  • $1,000 special bonus to all full-time employees

PNC

  • An additional $1,500 to their existing pension accounts
  • A $1,000 cash payment to approximately 47,500 employees in the first quarter of 2018
  • Increase of minimum wage to $15 per hour by the end of 2018
  • Accelerating the goal that has been underway for some time and make a $200 million contribution to the PNC Foundation, which supports early childhood education through PNC’s Grow Up Great® initiative.

Regions Financial

  • Increase minimum wage to $15 per hour
  • Contribute $40 million to its charitable foundation
  • Increase capital expenditures budget by approximately $100 million

Summit State Bank

  • $2,000 bonus to its non-executive employees

SunTrust

  • $50 million in additional community grants to national and local financial well-being efforts
  • Increase of minimum wage to $15 per hour
  • Merit base pay increases for certain other hourly teammates (approximately 20 percent of workforce)
  • A one-percent 401(k) contribution to retirement savings for all teammates
  • $1,000 financial incentive for all teammates that complete the SunTrust Momentum on Up financial fitness program

Synovus

  • $1,000 bonus to full-time and part-time non-executive employees

TCF Financial Corporation

  • $1,000 bonus to full-time employees and $500 bonus to part-time employees earning less than $100k in total compensation (about 80 percent of workforce)
  • $5 million donation to the TCF Foundation to increase grants to nonprofit organizations in the communities it serves

Territorial Savings Bank

  • A $1,000 bonus to most employees
  • Increased minimum wage to $15 per hour

United Bank & Trust

  • Hourly wage employees received a $0.58 per hour wage increase for hourly wage employees
  • $1,200 annual increase for salaried employees

Unity Bancorp

  • $750 bonus to all employees excluding executive management

U.S. Bank

  • A special $1,000 bonus for nearly 60,000 employees
  • Raising minimum wage to $15 for all hourly employees
  • A one-time $150 million contribution to the U.S. Bank Foundation

Washington Federal

  • A 5 percent merit-based increase in wages for all employees earning less than $100,000 annually
  • Increased investment in technology
  • A $5 million contribution to the Washington Federal Foundation, which supports nonprofits focused on housing, senior care and improving financial literacy

Wells Fargo

  • Pledged to hike minimum wages to $15 per hour, and said it plans to target $400 million in philanthropic donations in 2018

Windsor Federal Savings

  • A one-time special bonus of $250 for all employees except senior management
  • Increase of minimum wage for full-time employees to $15 per hour

Zions Bancorp

  • $1,000 bonus to nearly 80% of its employees
  • Increased compensation for nearly 40% of employees
  • $12 million contribution to local charitable organizations through the Zions Bancorporation Foundation

ABA will continue to highlight the ways in which banks are putting their tax savings to work to help employees and local communities thrive. We are asking banks to share their announcements with us so we can add them to this list.

​Questions? Contact Mike Townsend for more information.