Replies to post #180326 on Billionaire Boys Club Member Forum (BBCMF)

[mick]

First Advantage Bancorp announces Q3 developments and intention to file regulatory application to begin stock buy back; First Federal Savings Bank remains 'well capitalized' (FABK) 10.40 : Co announces that the U. S. government's actions with respect to Freddie Mac (FRE) and Fannie Mae (FNMA), would adversely impact the value of the Bank's perpetual preferred stock investments in FRE and FNMA. Earl O. Bradley, III, Chief Executive Officer states "Notwithstanding these developments, the co's Board of Directors has authorized the co's mgmt to apply for regulatory approval for the co to buy back up to 5.0% of its outstanding shares of common stock because, among other things, we continue to believe our stock represents a good value, currently trading at less than 75% of its book value, adjusted for the expected investment losses. In addition, First Federal Savings Bank remains 'well capitalized' under regulatory guidelines and we believe it ranks as the best capitalized FDIC insured financial institution in our local market. Our core business is sound and continues to experience growth and our asset quality and credit quality have remained strong". Based upon these events, the co now believes that it is likely these investments are other-than-temporarily impaired and, under the expected worse case scenario, it would recognize during the quarter ending September 30, 2008 a non-cash charge of ~ $13.5 mln, pre-tax ($8.9 mln, after tax), which is ~ equal to the net carrying value of these investments. The non-cash charge would result in a decrease of approximately $1.69 per diluted share on an after tax basis as of August 31, 2008... Regarding their trust preferred securities, trust preferred securities as of the end of August 2008, the unrealized loss on these investments totaled approximately $2.0 mln. Mgm believes that it is likely that it would record an OTTI non-cash charge against earnings for the qtr ending September 30, 2008 of ~ $2.0 mln pre-tax ($1.2 mln after tax). The expected non-cash charge would result in a decrease of approximately $0.23 per diluted share on an after tax basis as of August 31, 2008.