EXHIBIT 99.1
First Advantage Bancorp Announces 2009 Third Quarter Earnings
CLARKSVILLE, Tenn., Nov. 12, 2009 (GLOBE NEWSWIRE) -- First Advantage Bancorp (the "Company") (Nasdaq:FABK), the holding company for First Federal Savings Bank (the "Bank"), today announced its results of operations for the three and nine months ended September 30, 2009. Net income for the three months ended September 30, 2009 was $390,000, compared to a net loss of $9.5 million for the same period in 2008. In the third quarter one year ago the reported loss of $9.5 million included a write-down for certain investment securities classified as available-for-sale and losses on the sale of Federal National Mortgage Association ("Fannie Mae") perpetual preferred securities totaling $13.6 million or $8.4 million, after-tax. For the nine months ended September 30, 2009 net income was $700,000, co mpared to a net loss of $8.4 million, for the nine months ended September 30, 2008.
Basic and diluted earnings per share for the three months ended September 30, 2009 amounted to $0.09, compared to ($2.04) for the three months ended September 30, 2008. Earnings per share amounted to $0.16 per basic share and $0.15 per diluted share for the nine months ended September 30, 2009, compared to ($1.77) per basic share and ($1.77) per diluted share for the nine months ended September 30, 2008.
"We are very proud that the recent FDIC Market Share Report indicated that the Bank gained substantial market share from June 30, 2008 to June 30, 2009. This is reflective of our relentless commitment to provide remarkable customer service," said Earl O. Bradley, III, Chief Executive Officer of the Company. "During 2009 we have continued to prudently grow loans at an annualized rate of about 17.8%, while maintaining solid asset quality. We have also experienced steady deposit growth of about 15.1% on an annualized basis. Our net income improved this quarter, primarily because of the FDIC special assessment which negatively impacted earnings for the first half of the year. However, our net interest margin improved by ten basis points for the third quarter when compared to the second quarter."
Mr. Bradley continued, "Management remains focused on increasing earnings, but not at the cost of deviating from our disciplined approach to both deposit gathering and lending. We continue to believe that the Bank is well positioned to capitalize on potential opportunities as the economy emerges from the protracted recession."
Dividend Declared
As previously announced, the Board of Directors of the Company, at its October 21, 2009 meeting, declared a quarterly cash dividend of $0.05 per common share. The dividend is payable on or about November 16, 2009 to stockholders of record as of the close of business on November 2, 2009.
Balance Sheet Review - Annualized
Total assets increased $14.3 million to $352.7 million reflecting annualized growth of 5.6% during the nine months ended September 30, 2009. Total loans increased $23.7 million to $202.3 million as of September 30, 2009 reflecting annualized growth of 17.8% during the first nine months of 2009. Total deposits increased $21.1 million to $207.9 million as of September 30, 2009, resulting in an annualized growth rate of 15.1% during the nine month period ended September 30, 2009. Total equity increased $467,000 to $70.7 million reflecting an annualized growth of 1.0% during the nine months ended September 30, 2009.
Results of Operations - Three Months Ended September 30, 2009 and 2008
Net interest income for the three months ended September 30, 2009 remained stable at $2.8 million compared to the third quarter of 2008. The net interest margin for the three months ended September 30, 2009 was 3.39%, compared to 3.58% for the three months ended September 30, 2008.
Non-interest income for the quarter ended September 30, 2009 totaled $671,000 compared to a loss of $15.6 million for the quarter ended September 30, 2008. During the third quarter of 2009 the Company benefited from an increase of $139,000 in net gains on sales of mortgage loans and increased income from customer related service fees, while commissions on insurance and brokerage were down. The loss in non-interest income for the three months ended September 30, 2008 was primarily due to write-downs for certain investment securities classified as available-for-sale and losses on the sale of Fannie Mae perpetual preferred securities.
Non-interest expense was relatively flat at $2.7 million for the three months ended September 30, 2009 compared to $2.6 million for the three months ended September 30, 2008.
Results of Operations - Nine Months Ended September 30, 2009 and 2008
Net interest income for the nine months ended September 30, 2009 remained stable at $8.0 million compared to the nine months ended September 30, 2008. The net interest margin for the nine months ended September 30, 2009 was 3.33%, compared to 3.67% for the nine months ended September 30, 2008.
Non-interest income for the nine months ended September 30, 2009 totaled $2.1 million compared to a loss of $14.2 million for the nine months ended September 30, 2008. During the first nine months of 2009 the Company benefited from an increase of $510,000 in net gains on sales of mortgage loans and increased income from customer related service fees. The loss in non-interest income for the nine months ended September 30, 2008 was primarily due to write-downs for certain investment securities classified as available-for-sale and losses on the sale of Fannie Mae perpetual preferred securities.
Non-interest expense for the nine months ended September 30, 2009 was $8.4 million compared to $7.7 million for the same period one year ago. The increase in non-interest expense was primarily due to increases in FDIC insurance premiums and costs related to stock awards. FDIC insurance costs increased by $377,000 due to higher deposit insurance premiums for 2009 related to an industry-wide increase in assessment rates and a one-time special assessment as of June 30, 2009. Additionally, the Bank had increased expenses of $423,000 for employees and directors related to the Company's 2008 Equity Incentive Plan.
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 five full-service offices 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, except per share data)
Twelve
Months
Three Months Ended Nine Months Ended Ended
September 30 September 30 Dec. 31,
------------------- ------------------- ---------
SELECTED FINANCIAL 2009 2008 2009 2008 2008
CONDITION DATA:
END OF PERIOD
BALANCES
Assets $ 352,660 $ 327,304 $ 338,404
Available-for-
sale Securities,
at fair value 113,527 132,899 129,076
Loans, gross 202,329 165,617 178,587
Allowance for
Loan Losses 2,636 2,039 2,175
Deposits 207,930 172,486 186,807
FHLB Advances and
Other Borrowings 71,015 83,316 78,597
Common Share-
holders' Equity 70,728 68,181 70,261
AVERAGE BALANCES
Assets $ 347,864 $ 329,443 $ 340,648 $ 305,129 $ 311,336
Earning Assets 325,424 313,724 319,403 291,609 296,380
Investment
securities 116,709 147,093 121,339 139,410 136,458
Other investments 14,828 7,404 11,825 8,366 8,095
Loans, gross 193,887 159,227 186,239 143,833 151,827
Deposits 206,724 169,453 200,630 166,093 168,940
FHLB Advances and
Other Borrowings 68,350 81,532 67,795 57,755 63,516
Common Share-
holders' Equity 70,298 75,564 69,808 78,528 76,000
SELECTED OPERATING
RESULTS:
Interest and
Dividend Income $ 4,340 $ 4,625 $ 12,842 $ 12,846 $ 17,285
Interest Expense 1,559 1,799 4,878 4,835 6,602
--------- --------- --------- --------- ---------
Net Interest
Income 2,781 2,826 7,964 8,011 10,683
Provision for
Loan Losses 180 193 507 550 685
--------- --------- --------- --------- ---------
Net Interest
Income After
Provision for
Loan Losses 2,601 2,633 7,457 7,461 9,998
Noninterest
Income 671 (15,618) 2,056 (14,228) (13,796)
Noninterest
Expense 2,665 2,637 8,441 7,702 10,145
--------- --------- --------- --------- ---------
Income (Loss)
Before Income
Tax Expense
(Benefit) 607 (15,622) 1,072 (14,469) (13,943)
Income Tax
Expense
(Benefit) 217 (6,090) 372 (6,075) (5,848)
--------- --------- --------- --------- ---------
Net Income (Loss)$ 390 $ (9,532)$ 700 $ (8,394)$ (8,095)
========= ========= ========= ========= =========
Basic Net Income
(Loss) Per Common
Share $ 0.09 $ (2.04)$ 0.16 $ (1.77)$ (1.73)
Diluted Net
Income (Loss)
per Common Share 0.09 (2.04) 0.15 (1.77) (1.73)
Dividends paid
per common share 0.05 N/A 0.15 N/A 0.05
Book Value Per
Common Share 16.10 14.90 15.47
Common Shares
Outstanding 4,393,820 4,575,811 4,393,820 4,575,811 4,541,514
Basic Weighted
Average Common
Shares
Outstanding 4,482,274 4,677,316 4,514,591 4,734,131 4,691,863
Diluted Weighted
Average Common
Shares
Outstanding 4,582,963 4,677,316 4,622,233 4,734,131 4,691,863
SELECTED ASSET
QUALITY
Net Charge-offs $ 25 $ 14 $ 46 $ 21 $ 20
Classified Assets 3,149 2,095 2102
Nonperforming
Loans 990 808 830
Nonperforming
Assets 1,030 808 830
Total nonperform-
ing loans to
total loans 0.55% 0.49% 0.46%
Total nonperform-
ing loans to
total assets 0.28% 0.25% 0.26%
Total nonperform-
ing assets to
total assets 0.29% 0.25% 0.26%
SELECTED RATIOS
(quarterly and
year-to-date rates
annualized)
Return on Average
Assets 0.44% (11.51)% 0.27% (3.67)% (2.60)%
Return on Average
Common Share-
holders' Equity 2.20 (50.18) 1.34 (14.28) (10.65)
Average Common
Shareholders'
Equity to
Average Assets 20.21 22.94 20.49 25.74 24.41
Net Interest
Margin 3.39 3.58 3.33 3.67 3.60
CONTACT: First Advantage Bancorp
Earl O. Bradley, III
931-552-6176
Patrick C. Greenwell
931-552-6176
