Regions Financial Corp., the parent of Regions Bank, announced Tuesday that it is raising the minimum wage for its employees, as well as investing $40 million to help improve communities and increasing its capital spending.
Regions said the “targeted, long-term investments” will “benefit its associates, customers and the communities the bank serves.”
Regions said it was making the investments in anticipation of the saving it will receive as a result of the recently passed tax reform law. The law cuts the corporate tax rate from 35 percent to 21 percent, and several companies, including some of the nation’s largest banks have said they’ll be raising wages and investing more.
U.S. Bancorp, the parent of U.S. Bank, said Tuesday it would give a $1,000 bonus to each of its 60,000 employees. It also said it was raising the minimum wage to $15 and making “enhancements” to its employee healthcare options. The company said it would make a one-time $150 million contribution to its charitable arm, U.S. Bank Foundation.
Other banks making similar announcements since the law was passed before Christmas include Wells Fargo, Bank of America, BB&T Corp., PNC Financial Services and Fifth Third Bancorp.
As for Regions, its chairman and CEO, Grayson Hall said, “We understand that the growth of our company is based on the economic vitality of the communities where we do business, as well as the work from our team of talented associates who are committed to serving our customers every day. The investments we are announcing … in our workforce, our communities and our company reflect our commitment to creating shared value and will support sustainable growth that ultimately benefits our customers and shareholders.”
Regions said it would:
- Increase the minimum hourly wage to $15 by the end of 2018. This will benefit about 25 percent of the company’s employees.
- Contribute $40 million to the company’s charitable foundation to support financial education, job training, economic development and affordable housing.
- Increase the company’s capital expenditures budget by about $100 million, or 50 percent, over the 2017 level to support investments in facilities, technology, product innovation and personalized service to meet customer needs.
Regions Financial Corp. has $123 billion in assets and serves customers with some 1,500 banking offices and 1,900 ATMs across the South, Midwest and Texas.