During the second quarter of 2012, Banner reversed most of its deferred tax asset valuation allowance, reflecting Banner's return to profitability and its expectation of sustainable profitability in future periods. This expectation also led to the significant adjustment of the fair value estimate for the junior subordinated debentures issued by the Company. The substantial changes to both of these significant accounting estimates were directly linked to Banner's improved performance and profitability. In the third and fourth quarters of 2012, Banner reversed the remaining balance of the deferred tax valuation allowance, which substantially reduced the provision for income tax expense for both quarters. For the year ended December 31, 2012, the elimination of the deferred tax asset valuation allowance, combined with the Company's pre-tax income, resulted in a net tax benefit of $24.8 million. By contrast, as a result of the previous valuation allowance, Banner's results for the quarter and year ended December 31, 2011 did not reflect any tax expense or benefit.Banner's fourth quarter 2012 results included a $386,000 net gain for fair value adjustments as a result of changes in the valuation of financial instruments carried at fair value. In the preceding quarter, Banner recorded a net gain of $473,000 for fair value adjustments, which was largely offset by $409,000 of OTTI charges related to certain equity securities issued by government sponsored entities. For the quarter ended December 31, 2011, the Company recorded a net loss of $1.8 million for fair value adjustments.
Banner Corporation Reports Net Income Of $14.7 Million, Or $0.69 Per Diluted Share, In Fourth Quarter; Net Income Highlighted By Record Revenue Generation And Further Improved Credit Quality
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.