FNB BANCORP (OTCMKTS:FBIP) Files An 8-K Other EventsItem 8.01 Other Events.
On December 22, 2017, President Donald Trump signed into law “H.R.I.”, formerly known as the “Tax Cuts and Jobs Act”, which among other things reduced the federal corporate income tax rate to 21% effective January 1, 2018. As a result, FNB Bancorp (the “Company”) has concluded this will cause the Company's net deferred taxes to be revalued at the new lower tax rate. The Company has performed a preliminary analysis to determine the impact of the revaluation of the deferred tax asset. Using the information available at this time, the Company has estimated that the value of the net deferred tax assets would be reduced by approximately $1.4 million. Under this methodology, the estimated fourth quarter of 2017 earnings impact was approximately $(0.19) per share and the estimated tangible book value impact was also approximately $(0.19) per share based on the estimated fourth quarter outstanding and the fourth quarter weighted average diluted shares outstanding.
The Company's revaluation of its deferred tax asset is subject to further classifications of the new law that cannot be estimated at this time, and the determination of certain accounting valuation adjustments, such as the unrealized gain or loss on investment securities and the allowance for loan losses that are in the process of being finalized at this time. As such, the Company is unable to make a final determination of the impact on the quarterly and year to date earnings for the period ended December 31, 2017 at this time. The Company does not anticipate future cash expenditures as a result of the reduction to the deferred tax asset.
As additional information becomes available, the Company may file one or more amendments to this Current Report. The Company provides this information at this time in order to comply with SEC reporting requirements.
About FNB BANCORP (OTCMKTS:FBIP)
FNB Bancorp, Inc. is the holding company of The First National Bank & Trust Company of Newtown (the Bank). The Bank provides traditional banking services, including checking, savings and loan products, as well as trust and wealth management services. The Bank offers a range of checking services, such as Free Account, Premium Account, Interest Plus, Students, Non-Profit Checking, and Seniors and Military Accounts. The Bank offers various savings products, such as Statement Savings, KidsFirst Savings, individual retirement accounts (IRAs), Money Market Savings, certificates of deposit, among others. The Bank’s lending products include home equity and lines of credit, personal installment loans, new and used vehicles loans, construction loans, mortgages and business loans. The Bank’s trust and wealth management services include estate administration, trust administration, estate and financial planning, and personalized investment. The Bank also offers online banking and mobile banking.