NYCB Q4 Results To Record $25 Million After-Tax Benefit
Zacks Investment Research | Dec 28, 2017 08:09PM ET
New York Community Bancorp, Inc. (NYSE:NYCB) is expected to record an after-tax benefit of nearly $25 million during fourth-quarter 2017. The benefit follows the re-valuation of the company’s net deferred tax liability, following President Trump’s recently implemented tax bill.
Banks with higher deferred tax liabilities will be benefited by the reduction in corporate tax rate (from 35% to 21%). Lower rate would reduce the value of those liabilities, thereby increasing earnings of the company.
Notably, New York Community Bancorp anticipates an effective tax rate of about 27% during 2018.
Commenting on the announcement, president and CEO Joseph R. Ficalora stated, “On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. Among other things, it lowers the federal tax rate for corporations and necessitates a re-valuation of a company’s deferred tax assets and liabilities. Since we are one of the few banks to have a net deferred tax liability, we will receive a benefit from this provision of the Act. While this benefit is one-time in nature, it is accretive to all of our regulatory capital ratios.”
Shares of New York Community Bancorp inched up around 1.2% over the last three months compared with 3% growth for the Zacks Investment Research
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