United Financial reports Q4 EPS with items 19c, consensus 30c
Companies must recognize the effect of tax law changes in the period of enactment under the generally accepted accounting principles. The tax reform resulted in a $2.8M negative net income impact in the Q4 results. Of the $2.8M impact, $1.6M flowed directly through the provision for income taxes, and was primarily related to a re-measurement of the Company's deferred tax asset. Additionally, there was a $1.2M pre-tax adjustment related to the write-down of legacy United limited partnerships due to the aforementioned tax reform. Other significant events during the quarter included the Company surrendering $32.8M of under-performing bank-owned life insurance policy value, resulting in a $2.4M negative impact to the provision for income taxes. The Company subsequently re-invested $30.0M into higher yielding product in early January 2018.