As you probably are aware, a major piece of tax reform legislation was just signed into law. It will result in many changes to the U.S. tax code. We are writing to call your attention to a couple of these changes and to announce a special year-end bonus for hourly, non-exempt, non-commissioned employees that is related to the new law.

For businesses, the biggest change is a significant reduction in the corporate tax rate. This change brings the U.S. corporate tax rate to around the same as what businesses pay in most other countries. This makes our companies more competitive in the global market. It also encourages them to keep capital and employees in this country instead of relocating to lower-tax countries. Helping businesses to prosper and grow here at home ultimately helps all of us.

For North Shore Bank, the lower tax rate will give us more dollars to lend, invest, grow, and retain as a safety cushion. More important, it will give our business customers more dollars to deploy, more willingness to invest in growth, and more confidence in borrowing from us. In short, we believe this change in the tax code will help to fuel our organization’s continued growth.

For you as a North Shore employee, a stronger employer means greater job security and more opportunities for growth over the long run. In the short run, the change in the tax law means that our bank’s bottom line will benefit from an unplanned expense reduction. It gives us a special opportunity to express our gratitude to the employees who are paid on an hourly basis. Each of these hourly, non-exempt, non-commissioned employees will receive a $500 bonus, which will be paid in January.

We greatly appreciate the contributions that our employees make day in and day out. May 2018 bring good things for you, for our communities, and for our country. Happy New Year!