Home Bancorp Inc. of Lafayette, La., recorded an additional $956,000 writedown to its deferred tax asset value, following its acquisition of Saint Martin Bancshares Inc.
The additional writedown will be applied to the fourth quarter of 2017 and follows an initial charge to DTA of $1.8 million. The writedowns are the result of the lower corporate tax rate and an acquisition-related update of core deposit intangible asset and loan interest rate mark valuations.
Home Bancorp, in light of the adjustment, is now reporting income tax expense of $5.5 million and fourth-quarter 2017 net income of $3.2 million, or 41 cents per share. Its return on average equity is now calculated to be 5.92%.
The company previously reported income tax expense of $4.6 million and net income of $4.2 million, or 54 cents per share. Its return on average equity had been pegged at 7.66%.
For full year 2017, net income was $16.8 million, or $2.28 per share. It was previously reported to be $17.8 million or $2.41 per share.
