| First Regional Bancorp announced it expects to recover approximately $13.6M of taxes paid in prioryears due to the recent enactment of House Bill 3548, which includes an extension of the tax netoperating loss carryback period from two to five years. The recovery amount is subject tochange based on the company's final tax calculations for the full year of 2009, but at this time nosignificant change is anticipated. Because First Regional currently has a valuation allowance offsettingits NOLs, the amount recovered through the extended carryback will be recorded in earnings andcapital in the fourth quarter ending December 31, 2009. The provisions of the carryback extension donot apply to any bank which has accepted Troubled Asset Relief Program funds, but FirstRegional has not accepted any TARP funds. H. Anthony Gartshore, president and CEO of First Regional, said: "This change in the tax laws will result in a welcome benefit to our capital during Q4 of 2009. Based on our balance sheet totals as of September 30, 2009, this tax benefit equates to a gain ofapproximately $1.15 per share." :theflyonthewall.com |
