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INB Plans to Share Corporate Tax Savings with Staff

12.27.2017 Bank News

INB, a regional independent community bank, today announced that it plans to share a portion of its anticipated tax savings with its employees as a result of the federal tax reform legislation signed last week.

The new tax reform law will revamp the tax framework and reduce the maximum tax rate for corporations from 35 percent to 21 percent. Historically, INB’s parent company, Northwest Bancorp has paid the maximum tax rate so it expects a tax cut of approximately 14 percent.

At year-end 2017, INB will pay a bonus of $500 to each of its 200 employees, excluding its Senior Management Team. Additionally, it will establish the company’s minimum wage at $15 an hour effective, January 1st, 2018. INB will also adjust other employee wages for those making more than $15 an hour. The total wage adjustment will affect more than one third of their entire workforce.

“At INB, we’ve grown and expanded significantly over the past 18 months,” said Russell Lee, INB CEO. “Our employees are one of our greatest assets and we value their contributions in serving our customers and communities throughout the Pacific Northwest. As the company and shareholders benefit, we want each of our employees to benefit as well.”

Lee added that while the long-term impacts of the new tax law are still evolving, it is important for INB’s Senior Management Team and Board of Directors to bonus its employees now, as the company’s financials are expected to be positively impacted upon the signing of the new tax bill. It is also expected that a 21 percent rate will benefit INB, and support its continued growth, while also help level the competitive environment for banks and Credit Unions, which pay no federal income taxes and are exempt from many state taxes. 

INB acquired Bank of Fairfield in 2015 and CenterPointe Community Bank in 2017, expanding their geographic footprint. The tax relief is also expected to help with further growth, technology investments, and added benefits to employees.