Replies to post #49 on Valley Community Bank (fka VCBC)

[BigCat]

"Since making this proposal, I have received an expression of interest from two other banks."

-Definitely my favorite sentence from his letter!

[56Chevy]

This approach was designed to preserve the value of the bank's deferred tax asset and thus further enhancing book value.

I agree with Taylor. Deferred Tax Assets for VCBC going forward are a huge consideration to our bottom line. Here for comparison sake <below> is another bank in this region that has taken advantage of it's DTA's. VCBC's would have very similar results. For Pan Pacific Bank utilizing their DTA's allowed them a way to open a new branch office.

Pan Pacific Bank Announces Recapture of $2.7M Income Related to DTA, Plans for New Branch in San Jose, CA

FREMONT, Calif., July 14, 2014 /PRNewswire/ -- Pan Pacific Bank (OTCBB: PPFC) today announced its unaudited financial results for the quarter ended June 30, 2014, including total assets of $110.3 million, net loans of $82.7 million and deposits of $88.3 million. "Pan Pacific Bank is pleased to report continued positive earnings with net after-tax earnings for the three and six months ending June 30, 2014, of $2,852,637 and $2,926,602, respectively," said Wayne Doiguchi, Pan Pacific Bank's CEO. "During the quarter, Bank management determined that it is more likely than not that the deferred tax asset (DTA) will be realized. Therefore, the second quarter tax expense includes a benefit or income of $2,740,245 related to the reversal of the valuation allowance for deferred tax assets."

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*If Bankers had their own set of "Ten Commandments" -- Thou shalt NOT needlessly and carelessly abandon thy DTA's -- would be one of them! ":~O