CHICO, Calif.--(BUSINESS WIRE)--Golden Valley Bank (OTCBB: GVYB). The Tax Cuts and Jobs Act passed by Congress and signed by President Trump on December 22, 2017 reduced the Federal tax rate paid by corporations from 35% to 21%. While banks like Golden Valley and other U.S. corporations are expected to benefit from lower taxes over time, it has reduced fourth quarter 2017 earnings by forcing one-time charges as a result of the changes in the treatment of deferred tax assets recognized prior to 2018. While the cut in the tax rate will reduce taxes in 2018 and beyond, certain adjustments were required to be made in the fourth quarter of 2017 to accrual based financial statements that reduced the Bank’s net income. Upon our Accountants and Managements review, we determined that the Bank needed to recognize an additional one-time expense in the amount of $161,850. This reduced our net income to $1,823,457. Without that one-time adjustment, our net income would have been as previously reported in unaudited statements - $1,985,307. Our adjusted financial statements are now available on our website.
Golden Valley Bank is a locally owned and operated commercial bank serving the needs of individuals and businesses in northern California. The Bank has a full service office in Chico, California and a Loan Production Office in Redding, California. For more information regarding the bank please call at (530) 894-1000 or visit www.goldenvalley.bank.
Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results are pre-fiscal year-end audit and may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes and financial policies of the United States government and general economic conditions. The Bank disclaims any obligation to update any such factors.