BNCCorp (BNCC) has reversed a portion of the valuation allowance against its deferred-tax assets, which will result in an $8.8 million net benefit for the Bismarck, N.D., company.
As part of the reversal, the $696 million-asset company is required to record a provision for income tax expenses, which will reduce the reversal's benefit.
BNCCorp did not provide an estimated impact of the reversal for the entire third quarter, though the company said it would provide those figures at the end of the quarter.
BNCCorp reversed the allowance after reporting several consecutive profitable quarters. The reversal of the valuation allowance comes about two weeks after the company cancelled a stock sale that would have diluted investors' holdings.