Valley Community Bank (fka VCBC)

[56Chevy]

Why 40%? IRS rules significantly limit the usage of net operating losses when a change of ownership occurs above 50%.

In order for the bank to fully utilize their NOL's (now in the form of deferred tax assets) in the future Mr. Taylor's ownership could not exceed 50%.

He already has 9.8% and with 40% more that would take his ownership to 49.8% ...which is as close to the 50% as he can go without diminishing those valuable DTA's.

This bank has turned the corner on profits. DTA's will play a major role in adding to the positive earnings for shareholders going forward.

This is the wrong time to sell this bank for what amounts to peanuts!