SOURCE: Treasure State Bank

May 01, 2013 16:53 ET

Treasure State Bank Reports Release of Deferred Tax Asset Valuation Allowance

MISSOULA, MT--(Marketwired - May 1, 2013) - Treasure State Bank ("the Bank") (OTCQB: TRSU), a Montana chartered community bank, today reported the following announcement:

President and Chief Executive Officer Jim Salisbury stated, "I am pleased to report that the Bank will report an increase in net income for the quarter ended June 30, 2013 of an additional $700,000, which represents an income tax benefit resulting from a deferred tax asset valuation allowance reversal. The total amount of deferred tax asset valuation allowance is $2.6MM at December 31, 2012, but the Bank has concluded to release only $700,000 of the $2.6MM in accordance with regulatory capital guidelines. The remaining $1.9MM is available to be recognized as an income tax benefit in future periods as additional taxable earnings are anticipated. The Bank has reported profitability for nine consecutive quarters, asset quality has improved, net interest margins remain strong, cost of funds are decreasing and the Bank believes that the allowance for loan loss reserve is adequately funded. This, along with a reasonable expectation of continued profitability, has prompted management to determine that those tax assets would more likely than not be recovered through future taxable income and that maintaining the entire valuation allowance was no longer necessary."

For more information regarding this release, or the Bank in general, you may contact James A. Salisbury, President and CEO, at 406-543-8700. 

About Treasure State Bank
Treasure State Bank, a Montana chartered community bank, is headquartered in Missoula, Montana. The Bank was founded in January 2007. Treasure State Bank currently trades on the OTCBB under the ticker symbol "TRSU". Treasure State Bank serves businesses, professionals, non-profit organizations and individuals through customized banking services and products. For more information, please visit www.treasurestatebank.com.

Safe Harbor Statement
This communication contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Treasure State Bank and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions. The Bank undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

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