MB Financial Inc., the holding company for MB Financial Bank announced today that MB will raise the minimum wage paid to its employees, issue certain one-time bonuses, and donate $7.5 million to the disadvantaged communities in which it operates.
"MB has long believed that our future is undeniably connected to our communities and employees. Because we hold this belief so closely it is only natural that we share the benefits of tax reform," said Mitch Feiger, president and CEO MB Financial Inc.
As a result of the recently enacted Tax Cuts and Jobs Act of 2017 MB will contribute $7.5 million to the MB Charitable Foundation, specifically to help the most disadvantaged communities where MB operates for the creation of affordable housing, strong educational programs, vital community services, and to accelerate economic development. "Giving is a cornerstone of our culture," said Rose Bouman, executive vice president of MB Financial Bank.
Also as a result of the new tax legislation, MB will raise its minimum wage to $15 per hour and pay certain one-time bonuses. It's expected that nearly 75 percent of MB's approximately 3,600 team members across the country will participate in these new compensation measures. "Our employees are truly different. Their passion sets them apart. It's no wonder they go beyond every day for our clients, our communities, and each other. I'm thrilled we can pass along the benefits of tax reform to them," Feiger said.
The Tax Cuts and Jobs Act of 2017, among other changes, reduces the federal corporate income tax rate from 35 percent to 21 percent effective Jan. 1.
MB Financial Inc. currently estimates that as a result of the new tax legislation and the requirement to revalue its net deferred tax liability, it may recognize in the fourth quarter of 2017 a one-time tax benefit of at least $85 million, or approximately $1.00 per diluted common share. This one-time tax benefit will further strengthen our capital position and ratios.