Tennessee's biggest bank is joining the movement among major corporations to share the benefits of the new tax reforms and improving economy with its employees.
First Horizon Corp., the parent company of First Tennessee Bank, announced today that it will give $1,000 bonuses to most of the more than 4,000 employees who work for the Memphis-based banking firm, including more than 200 employees in the Chattanooga area market. First Tennessee said the $1,000 bonuses, similar to what AT&T, Comcast and Wells Fargo Bank also announced this week for their workers, will be awarded for First Tennessee employees in January to those not covered by other company-sponsored bonus plans.
"This has been an exceptional year for First Horizon as we experienced balance sheet and revenue growth while focusing on controlling costs," said Bryan Jordan, First Horizon's chairman and CEO. "Our merger with Capital Bank – the largest in our company's history – thus far it has been a seamless transition thanks to our employees. And as a result of this outstanding performance and because of recent tax reform efforts that we believe will benefit First Horizon, we are happy to offer bonuses to our people who work hard every day to maintain First Horizon's reputation as one of the best companies to work for and one of the most trusted banks in the country."
The tax cuts signed into law today by President Trump will cut the top corporate tax rate from 35 percent to 21 percent, which is especially beneficial for most banks.
In the first nine month of the year ahead of the tax reductions set for 2018, First Tennessee's net income from banking operations grew by 20.6 percent to $246.3 million.
First Horizon's $2.2 billion purchase of Capital Bank, which closed on Nov. 30, created the fourth largest regional bank in the Southeast with approximately $40 billion in assets, $32 billion in deposits, $27 billion in loans and 350 branches in Tennessee, North Carolina, South Carolina, Florida, Mississippi, Georgia, Texas and Virginia.