Grand Rapids, Mich.-based Independent Bank Corp. estimates a fourth-quarter hit to EPS of 28 cents, due to tax reform and the consequent revaluation of its deferred tax assets.
The negative impact to tangible book value is also projected to be 28 cents. The reduction in deferred tax asset value is pegged at approximately $6 million.
The estimate is based primarily on the company's DTA balance of $22.4 million as of Sept. 30. Independent is still unable to make a final determination on the impact to earnings, but it expects no future cash expenditures because of the downward revaluation to DTA.