Regions Financial Corp. announced Wednesday it is raising its minimum wage to $15 an hour by the end of the year, which will benefit approximately 25 percent of the company’s workforce.
Regions Financial subsidiary Regions Bank has about 120 employees on the Mississippi Gulf Coast, said Cheryl Johnson, president of Mississippi Gulf Coast Regions Bank.
The minimum wage was about $12 and with that 25 percent increase, Johnson said, “We should have a lot of happy people out there.”
Many states and cities also are raising the minimum wage for all employees. The National Employment Law Project reports 18 states and 19 cities will see increases this year.
Regions said in a press release the increase is making these investments in anticipation of the savings it will recognize due to the federal tax reform and is part of its “ongoing effort to provide sustainable career paths and professional growth opportunities for all associates.”
The company will increase its capital expenditures budget by $100 million, or 50 percent over the 2017 level to invest in facilities, technology, product innovation and personalized customer service.
“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,” said Grayson Hall, chairman and CEO. “The investments we are announcing today 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 serves customers across the South, Midwest and Texas, and through Regions Bank operates 1,500 banking offices and 1,900 ATMs.