Q4 charge for tax cut

For anyone still in BOFI - this from over on RB board.
Link is to article everyone should be able to access.
Basically, value of write-offs for losses are less, so a bit of hit now. Long term benefit from the lower tax.

Here is a Fool article that discusses it a bit


Expect an initial hit from tax reform, but a benefit later

It may come as a surprise, but BofI – as well as most other banks, for that matter – are initially going to take a hit from the newly passed corporate tax cut. That may sound odd – after all, the corporate tax rate is dropping from 35% to 21% in 2018, so it may sound like a pure benefit.

Well, not exactly. Simply put, banks carry what are known as “deferred tax assets” based on their loan loss reserves, which can be used to reduce taxable income. Well, if an “asset” is expected to reduce taxable income that is only being assessed a 21% rate, it becomes less valuable than if it could reduce income taxed at a 35% rate…