Five more banks are planning to use the anticipated savings from the reduction in the corporate tax rate to boost wages for employees.
Bank of America, PNC Financial Services Group, Associated Banc-Corp, Texas Capital Bank and Pinnacle Bancorp announced late Thursday or early Friday that they will pay one-time bonuses of $500 to $1,000 to many of their employees. PNC and Associated have also vowed to raise their minimum wage to $15 an hour.
President Donald Trump signed the Republican tax bill on Friday. It cuts the corporate rate to 21% from 35%.
Immediately after Congress approved the bill, Wells Fargo and Fifth Third Bancorp announced pay raises or one-time bonus payments to workers. Other banks followed suit, including Washington Federal in Seattle, with the stipulation that the raises will go to employees who make less than $100,000 per year.
Bank of America will give one-time bonuses of $1,000 to employees who earn salaries of less than $150,000, the Wall Street Journal reported, citing an internal memo. About 145,000 employees will get the bonus. A company spokesman confirmed the memo.
In February, Bank of America raised its minimum hourly pay rate to $13.50 from $15, the spokesman said.
PNC said on Friday that it will raise its minimum hourly pay rate to $15 by the end of next year, “accelerating the goal that has been underway for some time.” The Pittsburgh company will also pay a one-time bonus of $1,000 to about 47,500 employees during the first quarter, and it will contribute an additional $1,500 to the pension plans of eligible employees.
PNC will also make a $200 million contribution to its charitable foundation.
“The tax reform law creates an opportunity to reward our employees who are working hard each day to serve our customers, build strong relationships in our communities and create long-term value for our shareholders,” Chairman and CEO William Demchak said in a news release.
Associated, in Green Bay, Wis., said on Friday it will pay a $500 bonus to hourly, noncommissioned employees during the first pay cycle of next year. The bonus will cost Associated $1 million.
The $30 billion-asset Associated will also raise its minimum hourly pay rate to $15 from $10 in January. The pay raise will cost Associated $2 million on a yearly basis.
The $24 billion-asset Texas Capital, in Dallas, will pay a $1,000 bonus to more than 900 employees who are not already eligible for a separate performance-based bonus. Texas Capital will pay the bonus in January.
Texas Capital will also look for additional ways to invest in its workforce as a result of the tax cut, CEO Keith Cargill said in a news release.
The $4.7 billion-asset Pinnacle, of Lincoln, Neb., will pay a $1,000 bonus to about 1,000 employees, representing all of its full-time workers in Nebraska, Kansas and Missouri, the Lincoln Journal-Star reported.