Citing tax cuts, PeoplesBank forms charitable foundation
York Township-based PeoplesBank Friday announced the formation of a charitable foundation, saying it was prompted by the recent cut in the corporate tax rate.
A press release Friday said the board of the $1.7 billion-asset company approved initial funding for the PeoplesBank Foundation in the amount of $500,000.
"In light of the reduction in the corporate tax rate commencing in 2018 from approximately 35 percent to 21 percent as a result of the enactment of the Tax Cuts and Jobs Act, the board felt it appropriate to further the corporation’s charitable activities in our community by the establishment and funding of the foundation," Larry Miller, chairman, president and CEO of Codorus Valley Bancorp Inc., said in a statement. Codorus Valley is the parent of PeoplesBank.
According to the release, the foundation will make a public announcement when it is prepared to start accepting requests for charitable contributions. No other details were available.
The company is also in the process of finding a successor for terminated CEO A. Dwight Utz.
In a Securities and Exchange Commission filing dated Feb. 5, the company indicated that the former PeoplesBank president and CEO was terminated without cause. The report said Utz will receive a year’s salary plus benefits due in accordance with his contract. Utz’s tenure lasted two years.
In an interview, Miller said the bank still hasn't found a replacement, and there is no timeline for hiring a replacement.