Tax bill took one-time, $13 million bite out of Great Western profits
Sioux Falls, S.D.-based Great Western Bancorp Inc. reported that a one-time adjustment to deferred tax assets, required by federal tax reform, dropped net income in the first quarter of its 2018 fiscal year to $29.2 million, or 49 cents per share, from $37.7 million, or 64 cents per share, at the end of the fourth quarter. The re-evaluation of deferred taxes called for under the Tax Cuts and Jobs Act of 2017 was $13.6 million, according to a release. Excluding the deduction, profits would have been $42.8 million, or 72 cents per share, in Great Western’s first quarter. The one-time hit to earnings is showing up on quarterly reports from a range of businesses, which were required to restate liabilities under the law. For banks, those liabilities generally are in loans. The tax bill lowered the corporate tax rate to 21 percent and will take full effect for businesses this year depending on when their fiscal years conclude. Great Western said total loans for the first quarter, which ended Dec. 31, increased $196.8 million to nearly $9.2 billion, with most of the growth in commercial real estate loans, which increased nearly $171 million. Deposits grew $46.6 million, or 0.5 percent, during the quarter.