Colony Bankcorp (NASDAQ:CBAN)’s earnings were impacted by the one-time write down of deferred assets, per the newly-enacted Tax Reform Act. Excluding the one-time tax adjustment, earnings were 33% higher than the prior year, boosted by increased net interest income/noninterest income and a reduction in loan loss provisions. Although Colony (along with numerous other banking institutions) was impacted this quarter by the one-time expense, the lower tax rate may be positive for future earnings. The stock rose more than 15% during the quarter.
From Bernard Horn (Trades, Portfolio)'s first quarter 2018 shareholder letter.
