First State Benefits from New Legislation
November 09 2009 - 5:59PM
Business Wire
First State Bancorporation (“First State”) (NASDAQ: FSNM) today
announced that with President Obama’s signature on House Bill 3548
on November 6, 2009, which includes an extension of the tax net
operating loss (NOL) carryback period from two to five years, First
State estimates that it should recover approximately $9.8 million
of taxes paid in prior years based on the 2009 tax loss generated
through September 30, 2009. The amount is subject to change based
on our final tax calculations for the full year of 2009; however,
we do not anticipate a significant change. Because First State
currently has a valuation allowance offsetting its NOLs due to the
uncertainty of the ability to realize them in future years, the
amount recovered through the extended carryback will be recorded in
earnings and capital in the fourth quarter ending December 31,
2009. The provisions of the carryback do not apply to any bank
which has accepted Troubled Asset Relief Program (TARP) funds;
however, First State has not accepted any TARP funds.
“This change in the tax laws will result in a very welcome boost
to our capital,” stated Michael R. Stanford, President and Chief
Executive Officer of First State. “Based on our balance sheet
totals as of September 30, 2009, this tax benefit is the equivalent
of about 45 basis points in total risk based capital for the
subsidiary, First Community Bank,” continued Stanford.
ABOUT FIRST STATE
First State Bancorporation is a New Mexico based commercial bank
holding company (NASDAQ: FSNM). First State provides services,
through its subsidiary First Community Bank, to customers from a
total of 40 branches located in New Mexico and Arizona. On Monday,
November 9, 2009, First State’s stock closed at $0.62 per
share.
ADDITIONAL INFORMATION AND WHERE TO
FIND IT
Certain statements in this news release are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934 (the
“Exchange Act”). These statements are based on management’s current
expectations or predictions of future results or events. We make
these forward-looking statements in reliance on the safe harbor
provisions provided under the Private Securities Litigation Reform
Act of 1995.
First State’s news releases and filings with the Securities and
Exchange Commission are available through the Investor Relations
section of First State’s website at www.fcbnm.com.
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