PEOPLES BANCORP INC. (NASDAQ:PEBO) Files An 8-K Other EventsItem 8.01Other Events
On December 22, 2017, H.R.1, known as the "Tax Cuts and Jobs Act," was signed into law. Among other things, the Tax Cuts and Jobs Act permanently lowers the corporate federal income tax rate to 21% from the existing maximum rate of 35%, effective for tax years including or commencing January 1, 2018. As a result of the reduction of the corporate federal income tax rate to 21%, U.S. generally accepted accounting principles require companies to re-value their deferred tax assets and deferred tax liabilities as of the date of enactment, with the resulting tax effects accounted for in the reporting period of enactment.
As of September 30, 2017, Peoples Bancorp Inc. ("Peoples") had net deferred tax assets, and Peoples is expected to remain in a net deferred tax asset position as of December 31, 2017. Peoples will record a re-valuation of its deferred tax assets and deferred tax liabilities as of December 31, 2017, at the new federal income tax rate of 21%, based upon balances in existence at the date of enactment of December 22, 2017. Based upon preliminary estimates and current accounting guidance, Peoples currently expects that the net deferred tax assets will be written down by approximately $0.7 million to $1.0 million in the fourth quarter of 2017. The write down is expected to result in a reduction in net income of approximately $0.04 to $0.05 per diluted share based on estimated fourth quarter weighted average diluted shares of approximately 18.2 million. This estimate of the impact on Peoples' net deferred tax assets is based upon a preliminary review and analysis of Peoples' net deferred tax assets at December 31, 2017, as well as expected adjustments to various deferred tax assets and deferred tax liabilities in the fourth quarter, including those accounted for in accumulated other comprehensive income. Peoples' actual write-down may vary materially from the estimated range due to a number of uncertainties and factors, including the completion of Peoples' consolidated financial statements as of and for the year ended December 31, 2017, and is subject to further clarification of the new law that cannot be reasonably estimated at this time.
Safe Harbor Statement
This Current Report on Form 8-K contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding Peoples’ preliminary conclusion that Peoples will need to write down its net deferred tax assets and the timing and estimated range of such write-down. Words such as “expect,” “estimate,” “approximately,” “preliminary,” “may” and variations of such words and similar expressions are intended to identify such forward-looking statements.
Readers are cautioned that such forward-looking statements, which are not historical fact, involve risks and uncertainties, including uncertainties in Peoples' preliminary review of, and additional analysis of, the impact of H.R. 1, as well as additional risks and uncertainties detailed under the section "Risk Factors" in Part I, Item 1A of Peoples' Annual Report on Form 10-K for the fiscal year ended December 31, 2016 ("Peoples' 2016 Form 10-K") and in Peoples' subsequent Quarter Reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC"), all of which are available on the SEC's website (www.sec.gov) or at Peoples' website (www.peoplesbancorp.com). As such, actual results could differ materially from those contemplated by the forward-looking statements made in this Current Report on Form 8-K. Management believes the expectations in these forward-looking statements are based upon reasonable assumptions within the bounds of management's knowledge of Peoples' business and operations. Peoples disclaims any responsibility to update these forward-looking statements to reflect events or circumstances after the date of this Current Report on Form 8-K.
About PEOPLES BANCORP INC. (NASDAQ:PEBO)
Peoples Bancorp Inc. is a financial holding company. The Company is engaged in banking, investment, insurance and trust solutions. The Company operates principally through its subsidiary, Peoples Bank, National Association (Peoples Bank). The Company’s products and services include demand deposit accounts, savings accounts, money market accounts and certificates of deposit. It also offers commercial, consumer and real estate mortgage loans for both commercial and residential purposes, and lines of credit. The Company also offers corporate and personal trust services, safe deposit rental facilities, money orders and cashier’s checks. The Company also offers life, health, property, and casualty insurance, as well as fiduciary, employee benefit plans and asset management services. Peoples Bank’s operating subsidiaries include Peoples Insurance Agency, LLC and over two asset management companies, PBNA, L.L.C. and Peoples Tax Credit Equity, L.L.C.
