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 5/22/2018):

​​​​​​​​​

0-9 | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z


1st Source Corporation

  • Issuance of 10 shares of 1st Source stock currently valued at $500 in early 2019 to all employees who were active with the company December 31, 2017 and who are also active with the company on December 31, 2018
  • Increased annual base pay of eligible employees by $500
  • Increased company's higher education tuition reimbursement program to annual benefit of $6,000 (from $3,000)

1st Summit Bank

  • $1,000 bonus for all full-time employees
  • One-time adjustment to 2017 bonuses and salary ranges
  • Increase in charitable donations budget by 10% for the year

Return to top

Adams Community Bank

  • Increasing interest rates on customer deposit products beginning in January
  • A bonus of $1,000 to full time employees, and $500 to part time employees (particularly those below a certain compensation threshold)
  • Increasing base pay by $1 per hour for regular non-officer employees making below a certain compensation threshold
  • Raising minimum wage to $13.25
  • Reducing the employee’s share of medical and dental insurance premiums from 30% to 20%, for all bank employees who are not officers

Amboy Bank

  • Increased minimum wage to $15 per hour
  • $1,000 bonus to all non-executive employees

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

Return to top

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

Bank of the West

  • Raised minimum wage to $15 per hour.

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

Berkshire Hills Bancorp, Inc.

  • Raised minimum wage to $15 per hour
  • One-time bonus of $1,000 to more than 1,000 full-time employees below a certain salary threshold
  • Enhancing investment in employee development and training programs including bolstering current offering at AMEBU – American’s Most Exciting Bank University
  • Contributing $2 million to the Berkshire Bank Foundation in support of charitable organizations, scholarships, and volunteerism across Berkshire’s local communities

BMO Harris Bank

  • Increased minimum wage to $15 per hour
  • Raising level of community giving by 10% in 2018

Return to top

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 & Trust Co.

  • Increasing hourly salary range by 5%
  • Reducing employee share of health premiums by 20%

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 Bank of West Virginia

  • A $1,000 bonus to all employees

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

Return to top

Davis Trust Company

  • A 3% pay increase for all employees

Dime Community Bancshares, Inc.

  • A one-time $1,000 bonus to all non-executive employees
  • A new Corporate Matching Gift program to encourage employees to give back to their communities and leverage their commitment through a matching gift
  • Will double the amount of its 2017 philanthropic and community giving in 2018

Discover Financial Services

  • Raising minimum hourly wage to $15.25 for virtually all of its full-time U.S. employees (impacting more than 7,000 employees)
  • A $1,000 bonus to more than 15,000 non-executive employees

 

Dollar Bank

  • A permanent $2,000 salary increase to all eligible employees with annual salaries at or below $60,000

 

Return to top

F&M Bank

  • Established of a charitable foundation benefitting the three community foundations in F&M’s market areas (initial endowment totaled $250,000)
  • $1,100 bonus to all full-time employees; $750 bonus to all part-time employees
  • Special dividend of 20 cents a share in addition to its regularly quarterly dividends

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 (Dunmore, Mass.)

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

Fidelity (Leomisnster, Mass.)

  • $500 bonus to all staff below the vice president level
  • Increased minimum wage to $14.25 per hour with a commitment to reach $15 per hour by 2020
  • Allocating additional funds to its annual LifeDesign Community Dividend, investing the additional money in specific causes that support its community and the markets in which its operates

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

First Bank & Trust Company

  • Increase minimum wage to $15 per hour

FirstCapital Bank of Texas

  • $500 bonus to 197 non-executive bank employees

First Farmers Bank and Trust

  • Raised minimum hourly wage by $2.50
  • A 2017 year-end bonus of $750 for all full-time employees
  • Will invest at least $250,000 annually in community development activities
  • Will spend at least $150,000 per year on employee professional development

First Federal Community Bank

  • A $1,000 bonus to full-time staff and a $500 bonus to part-time staff
  • Special donations to the city of Dover's Build a Winter Dream park plan and the Community Hospice House debt retirement plan

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

First Northern Community Bancorp

  • A one-time bonus of $1,000 to all employees, excluding executive management
  • Increasing minimum wage by $2 per hour
  • Contributing an additional $100,000 ($10,000 within each of its 10 local branch markets) to support local non-profits and charities
  • Additional investments this year in digital technology and mobile capabilities to enhance the customer experience

First Sentinel Bank

  • One-time cash bonus of $750 for all employees

Flushing Financial

  • Increase the dividend to investors in 2018 by two cents per share per quarter
  • $500 bonus to part-time employees
  • $1,000 bonus to full-time employees

FMS Bank

  • Increased the 401(k) match an additional 1% for 2018

Franklin Savings Bank

  • $1,000 bonus to all employees

Return to top

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

Return to top

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

Return to top

IBC Bank

  • $12.1 million in annual bonuses and profit sharing to all employees

Inland Northwest Bank

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

Return to top

Johnson Financial Group

  • Increased minimum wage to $15 per hour

JP Morgan Chase

  • Increasing wages 10 percent on average for 22,000 employees — ranging from between $15 and $18 per hour
  • Opening up to 400 new branches in 15-20 new markets in several new states over the next five years, directly employing about 3,000 people
  • Increasing community-based philanthropic investments by 40 percent to $1.75 billion over five years
  • Increasing small business lending by $4 billion
  • Accelerating affordable housing lending by (a) increasing mortgage lending in low-and moderate-income communities and (b) accelerating commercial lending to build affordable housing.

Return to top

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

Return to top

Lakestone Bank & Trust

  • Increased wages for all hourly employees by $1 per hour
  • $1,000 bonus for all salaried employees

Return to top

MainSource Financial Group

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

Maspeth Federal Savings

  • A $1,000 bonus for all full-time employees below the AVP officer level and a $500 bonus for all part-time employees
  • Increasing minimum wage to $15 per hour
  • Continuing charitable giving grants to local community organizations and not-for-profit organizations (nearly $500k in donations last year)

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

MutualBank

  • A $750 one-time payment for all full-time and part-time employees, except for the executive management team
  • A $0.50 hourly wage increase for all non-exempt employees

Return to top

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

NBT Bank

  • Increased minimum wage to $15 per hour
  • Increased wages of employees earning less than $50,000 by a minimum of 5%
  • Will increase investment in infrastructure to enhance customer-facing technology and contributions to nonprofit organizations in its communities in 2018

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

Return to top

OceanFirst Bank

  • Increased minimum wage to $15 per hour

Ohnward Bancshares

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

Old National Bancorp

  • • Increased 401(k) match to 75% of the first 4% contributed into the Plan, and 50% of the next 4% contributed into the Plan, for a total maximum match of 5% (previously matched 50% of the first 6% contributed into the Plan, for a total maximum match of 3%).

Return to top

Pentucket Bank

  • $500 bonus to all employees
  • Increased minimum wage to $14 per hour
  • Increased additional education through a University of Pentucket Bank program

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

Pilgrim Bank

  • Increase minimum wage to $15 per hour
  • $1,000 contribution to the 401(k)s of all full-time non-officers; $500 contribution to the 401(k)s of all part-time employees
  • Increased charitable contributions budget for 2018

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.

Return to top

Quail Creek Bank

  • $2,000 bonus for all non-exempt employees; $1,000 bonus for part-time employees
  • Increased the 401(k) match to 100% of every dollar up to 6% of employee’s salary

Return to top

Regions Financial

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

Rio Bank

  • $1,000 bonus to all employees

Return to top

Somerset Savings Bank

  • $750 bonus to all employees, excluding senior management

Sound Community Bank

  • Increasing the non-executive employee incentive program
  • Increasing charitable contributions; bank will match employee donations on a sliding scale (e.g., $1.50 match for every dollar donated by non-officer employees)
  • A down payment assistance loan program for first-time homebuyers, allowing them to borrow up to $50,000 at only 1% APY to assist with down payments

Stifel Financial Corp.

  • A special $1,500 bonus to most of its 7,000 non-exempt, non-executive, non-commissioned employees

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

Return to top

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

Return to top

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

Return to top

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

Washington Trust Bancorp

  • A $1,000 bonus to full time employees and a $500 bonus to part-time employees (particularly those below a certain compensation threshold)
  • A $1 per hour salary increase for employees below a certain compensation level (almost 40 percent of its workforce)

Webster Financial Corporation

  • Increasing minimum wage to $15 per hour by the end of 2018
  • A one-time $1,000 cash bonus in the first quarter of 2018 to full-time employees who are below the vice president level (70 percent of all full-time employees)
  • Augmenting Webster's annual philanthropic and community investment by $1 million in 2018
  • Enhancing  investment in strategic employee development initiatives and early career programs, creating new job opportunities in its markets

Wells Fargo

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

Western Alliance Bancorporation

  • Increasing the base pay of the lowest-paid 50% of employees by 7.5%
  • Increasing bonuses, bringing total pay increase for this group of employees (those generally making $75,000 or less) up to 10%
  • Increasing 401(k) match from 50% of an employee’s contribution up to 6% of pay to 75% of an employee’s contribution up to that same level

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

WinTrust Bank

  • Increased minimum wage to $15 per hour

Return to top

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

Return to top

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.