Zions Bancorporation will give raises to approximately 40 percent and bonuses to roughly 80 percent of its employees, due to the tax cuts that were approved as part of the Tax Cuts and Jobs Act.
Specifically, Zions will be increasing ongoing compensation for more than 40 percent of its employees as of Jan. 1, 2018. Further, about 80 percent of workers will get $1,000 bonuses in 2018.
Also, the bank will contribute $12 million to the Zions Bancorporation Foundation. The funds in this foundation are used to benefit local communities in which Zions does business.
In 2017, the foundation supported the United Way, youth programs, food pantries, homeless shelters, affordable housing projects, and educational programs.
As a result of the contribution to the foundation, Zions expects to incur an increase in noninterest expense in the fourth quarter of 2017 of about $12 million. Further, compensation adjustments are expected to be incorporated into 2018 expense.
Zions, with $65 billion in assets under management, will continue to assess the financial impact of recent tax law changes. The bank and intends to disclose any further impacts on or before the date the company reports its fourth quarter of 2017 earnings.
Zions has branches, which operate under distinct brands, in 11 western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming.