EXHIBIT 99.1
First Advantage Bancorp Announces First Quarter 2008 Earnings
CLARKSVILLE, Tenn., May 8, 2008 (PRIME NEWSWIRE) -- First Advantage Bancorp (the "Company") (Nasdaq:FABK), the holding company for First Federal Savings Bank (the "Bank"), today announced first quarter earnings for 2008. The results reported for the first quarter of 2007 are the results of the Bank only, which completed its conversion from the mutual form to the stock form of organization on November 29, 2007. For the three months ended March 31, 2008, the Company reported net income of $589,000, or $0.12 per share (basic and diluted), compared to a net loss of $66,000 for the first quarter of 2007. Due to the completion of the Bank's conversion and the Company's related initial public stock offering on November 29, 2007, per share data is not available for the three months ended March 31, 2007.
"While we are definitely in a challenging environment for financial institutions, I am proud to report that First Federal Savings Bank's conservative and customer focused approach to banking has served us well," said Earl O. Bradley, III, CEO of First Advantage Bancorp. "The recent decline in interest rates, and the growth in our loan portfolio, has allowed us to improve our net interest margin and were the primary factors driving our core earnings improvement for the first quarter. It has helped our cause that the Bank has never participated in the sub-prime mortgage loan market, either directly or through our investment portfolio."
Balance Sheet Review - Annualized
Total assets increased $33.0 million to $286.4 million reflecting annualized growth of 52.5% during the quarter ended March 31, 2008 compared to December 31, 2007. Total loans increased $21.3 million to $138.8 million as of March 31, 2008 reflecting annualized growth of 73.0% during the first quarter of 2008. Total deposits decreased $5.3 million to $164.5 million as of March 31, 2008, resulting in an annualized declining rate of 12.6% during the quarter ended March 31, 2008 compared to December 31, 2007. Total equity increased $1.1 million to $80.6 million reflecting annualized growth of 5.6% during the first quarter of 2008.
For further discussion of these results, please refer to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, filed with the Securities and Exchange Commission on May 8, 2008.
The Bank does not have nor has it had any sub-prime loans or other high-interest rate loans to consumers with impaired or non-existent credit histories in its loan portfolios.
Results of Operations
Net interest income for the three months ended March 31, 2008 was $2.4 million, up 44.6% from the first quarter of 2007. The net interest margin for the three months ended March 31, 2008 was 3.75%, up 41 basis points from the first quarter of 2007.
Non-interest income for the three months ended March 31, 2008 was $837,000 compared to $608,000 for the three months ended March 31, 2007.
Non-interest expense increased $158,000 to $2.6 million for the three months ended March 31, 2008 from $2.4 million for the comparable period in 2007.
Additionally, during the first quarter of 2008 management reduced its FIN 48 tax liability estimate and reversed $251,000 of its FIN 48 tax liability. The impact of this reversal resulted in a credit for income taxes of $178,000 compared to a credit of $69,000 for the first quarter of 2007.
For further discussion of these results, please refer to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, filed with the Securities and Exchange Commission on May 8, 2008.
About First Advantage Bancorp
Founded in 1953, First Federal Savings Bank, a wholly-owned subsidiary of First Advantage Bancorp, is a federally chartered savings bank headquartered in Clarksville, Tennessee. The Bank operates as a community-oriented financial institution, with four full-service offices and one limited service office in Montgomery County, Tennessee, which is approximately 40 miles northwest of Nashville near the Kentucky border. First Federal Savings Bank offers a full range of retail and commercial financial services. The Bank's website address is www.firstfederalsb.com. First Advantage Bancorp stock trades on the Nasdaq Global Market under the symbol "FABK."
Forward-Looking Statements
Certain statements contained herein are forward-looking statements that are based on assumptions and may describe future plans, strategies, and expectations of First Advantage Bancorp. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiary include, but are not limited to, changes in interest rates, national and regional economic conditions, legislative and regulatory changes, monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality and composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in First Federal Savings Bank's mar ket area, changes in real estate market values in First Federal Savings Bank's market area, changes in relevant accounting principles and guidelines and the inability of third party service providers to perform. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.
FIRST ADVANTAGE BANCORP SELECTED FINANCIAL DATA (Unaudited-Dollars in thousands) Three Months Ended Year-end March 31 December 31, ------------------------- ----------- SELECTED FINANCIAL CONDITION DATA: 2008 2007 2007 END OF PERIOD BALANCES Assets $ 286,449 $ 220,177 $ 253,403 Available-for-sale Securities, at fair value 126,962 95,388 112,817 Loans 138,776 101,038 117,469 Allowance for Loan Losses 1,787 1,997 1,510 Deposits 164,537 180,083 169,854 FHLB Advances and Other Borrowings 38,733 4,000 891 Common Shareholders' Equity 80,607 32,930 79,505 AVERAGE BALANCES Assets $ 271,078 $ 212,767 $ 220,501 Earning Assets 257,986 201,815 209,895 Investment securities 122,348 89,731 94,586 Other investments 9,948 11,442 10,474 Loans, net of allowance 125,690 100,642 104,835 Deposits 165,761 177,036 180,680 FHLB Advances and Other Borrowings 22,152 183 736 Common Shareholders' Equity 79,865 31,819 36,753 SELECTED OPERATING RESULTS: Interest and Dividend Income $ 3,840 $ 3,101 $ 13,253 Interest Expense 1,437 1,439 6,016 ----------- ----------- ----------- Net Interest Income 2,403 1,662 7,237 Provision for Loan Losses 277 11 (364) ----------- ----------- ----------- Net Interest Income After Provision for Loan Losses 2,126 1,651 7,601 Noninterest Income 837 608 1,987 Noninterest Expense 2,552 2,394 10,060 ----------- ----------- ----------- Income Before Income Tax Expense (Benefit) 411 (135) (472) Income Tax Benefit (178) (69) (217) ----------- ----------- ----------- Net Income (Loss) $ 589 $ (66) $ (255) =========== =========== =========== Basic earnings per share $ 0.12 N/A N/A Diluted earnings per share $ 0.12 N/A N/A Average shares outstanding 4,762,377 N/A N/A Average diluted shares outstanding 4,866,303 N/A N/A SELECTED ASSET QUALITY Net Charge-offs $ -- $ 39 $ 151 Classified Assets 2,433 6,820 1,962 Nonperforming Assets 1,173 4,555 836 Total nonperforming loans to total loans 0.84% 4.51% 0.71% Total nonperforming loans to total assets 0.41% 2.07% 0.33% Total nonperforming assets to total assets 0.41% 2.07% 0.33% SELECTED RATIOS (quarterly rates annualized) Return on Average Assets 0.87% (0.13)% (0.12)% Return on Average Common Shareholders' Equity 2.97 (0.83) (0.69) Average Common Shareholders' Equity to Average Assets 29.46 14.95 16.67 Net Interest Margin 3.75 3.34 3.45 Efficiency: Expense to Revenue 78.77 105.46 109.06
CONTACT: First Advantage Bancorp Earl O. Bradley, III 931-552-6176 Patrick C. Greenwell 931-552-6176