In its preliminary analysis, Banner Corp. expects to record a one-time net tax charge of $40 million to $43 million from the new tax plan enacted Dec. 22, 2017.
The Walla Walla, Wash.-based company said, however, it has not completed the revaluation of its deferred tax assets, which is increasing its income tax expenses for the fourth quarter of 2017.
To keep its assets below the $10 billion threshold and postpone the effects of the Durbin Amendment, Banner has sold around $450 million of investment securities during the fourth quarter of 2017. The company assessed a $12 million annualized negative net impact on pretax revenues six months after the calendar year-end it crosses $10 billion in assets.
Proceeds from the sale will be used to fund loans and operations, as well as to pay down certain whole sale borrowing and maturing brokered deposits. The company also bought back 520,166 common shares priced at $56.99 apiece, or $29.6 million in total.