The president’s signature tax reform law muddled this year’s stress test results, causing several banks to incur greater-than-expected losses and spurring the Federal Reserve to constrain capital distributions at a handful of banks.
The Mississippi company reported strong loan growth, even as it reduced exposure to energy-related borrowers. Higher revenue also helped Hancock lower its efficiency ratio.
The tax reform legislation approved by Congress on Wednesday and expected to be signed by President Trump soon is mostly good news for banks, but many will have to take big charges in the fourth quarter as a result.
With tax reform close to the finish line, bankers are still clear winners from the compromise worked out between House and Senate negotiators. But the bill includes some caveats that might give institutions pause.
The company also said it is likely that tax reform legislation being considered by Congress would substantially reduce the valuation of its deferred-tax asset.
