|   | OF      THE SECURITIES EXCHANGE   ACT OF  1934 |
|--------|---------------------------------------------------------------|

|   | For      the quarterly period ended September 30,2008 |
|--------|-------------------------------------------------------|

|   | OR |
|--------|----|

|   | [   ]       TRANSITION      REPORT PURSUANT TO SECTION 13 OR15(d) |
|--------|---------------------------------------------------------------------------------------------------------------------|

|   | OF      THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---------------------------------------------|

|   | For      the transition period from _____________ to  _____________ |
|--------|---------------------------------------------------------------------|

| Tennessee(State      or other jurisdiction ofincorporation      or organization)                    | 26-0401680(I.R.S.      Employer Identification No.) |
|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------|
| 1430 Madison Street, Clarksville,      Tennessee (Address      of principal executive offices) | 37040(Zip      Code)                                |

|  (Check      one):                                 |  Large      Accelerated Filer [    ]     |  Accelerated      Filer [    ] |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|---------------------------------------------------------|--------|
|                                                                                                                                                                                                                    |  Non-accelerated      Filer [    ]  |  Smaller      Reporting Company [X]                |   |
|                                                                                                                                                                                                                    |                                                              |                                                    |   |

----

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Page   |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|          | Part      I. Financial Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      1.  | Condensed      Consolidated Balance Sheets as of September 30, 2008 (unaudited) and      December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 1      |
|          | Unaudited      - Condensed Consolidated Statements of Operations for the Three      Months  and Nine Months Ended September 30, 2008 and      2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2      |
|          | Unaudited      - Condensed Consolidated Statements of Changes in Shareholders’ Equity for      the Nine Months Ended September 30, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 3      |
|          | Unaudited      - Condensed Consolidated Statements of Cash Flows for the Nine Months      Ended September 30, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 4      |
|          | Notes      to Condensed Consolidated Financial Statements (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 5      |
| Item      2.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 13     |
| Item      3.  | Quantitative      and Qualitative Disclosures About Market      Risk                                                                                                      | 30     |
| Item      4T. | Controls      and      Procedures                                                                                                                                         | 30     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | Part      II.  Other Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Item      1.  | Legal      Proceedings                                                                                                                                                    | 30     |
| Item      1A. | Risk      Factors                                                                                                                                                         | 30     |
| Item      2.  | Unregistered      Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 31     |
| Item      3.  | Defaults      Upon Senior      Securities                                                                                                                                                          | 31     |
| Item      4.  | Submission      of Matters to a Vote of Security      Holders                                                                                                             | 31     |
| Item      5.  | Other      Information                                                                                                                                                    | 31     |
| Item      6.  | Exhibits                                                                                                                                                                  | 31     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|          | SIGNATURES                                                                                                                                                                | 32     |

----

| First      Advantage Bancorp                                                                                                                                                                                                           |   |               |    |   |              |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
| Condensed      Consolidated Balance Sheets                                                                                                                                                                                             |   |               |    |   |              |   |
| (Dollars      in thousands)                                                                                                                                                                                                            |   | September      30, |    |   |              |   |
|                                                                                                                                                                                                                                   |   | 2008               |    |   | December      31, |   |
|                                                                                                                                                                                                                                   |   | (Unaudited)        |    |   | 2007              |   |
| Assets                                                                                                                                                                                                                                 |   |               |    |   |              |   |
| Cash      and due from banks                                                                                                                                                                                                           |   | $                  | 4,709   |   |              | $      | 3,209 |   |
| Interest-bearing      demand deposits at other banks                                                                                                                                                                                   |   |               | 295     |   |              |   | 970 |   |
| Time      deposits at other banks                                                                                                                                                                                                      |   |               | 2,585   |   |              |   | - |   |
| Federal      funds sold                                                                                                                                                                                                                |   |               | -       |   |              |   | 4,897 |   |
| Cash      and cash equivalents                                                                                                                                                                                                         |   |               | 7,589   |   |              |   | 9,076 |   |
|                                                                                                                                                                                                                                   |   |               |    |   |              |   |   |   |
| Available-for-sale      securities, at fair value                                                                                                                                                                                      |   |               | 132,899 |   |              |   | 112,817 |   |
| Loans      held for sale                                                                                                                                                                                                               |   |               | 2,296   |   |              |   | 1,867 |   |
| Loans,      net of allowance for loan losses of  $2,039      and $1,510 at September 30, 2008  and      December 31, 2007, respectively                                                                            |   |               | 163,578 |   |              |   | 115,959 |   |
| Premises      and equipment, net                                                                                                                                                                                                       |   |               | 7,736   |   |              |   | 7,136 |   |
| Mortgage      servicing rights                                                                                                                                                                                                         |   |               | -       |   |              |   | 9 |   |
| Other      assets held for sale                                                                                                                                                                                                        |   |               | -       |   |              |   | 381 |   |
| Federal      Home Loan Bank stock                                                                                                                                                                                                      |   |               | 2,988   |   |              |   | 2,872 |   |
| Accrued      interest receivable                                                                                                                                                                                                       |   |               | 1,686   |   |              |   | 1,535 |   |
| Income      taxes receivable                                                                                                                                                                                                           |   |               | 1,748   |   |              |   | 1,018 |   |
| Deferred      tax asset                                                                                                                                                                                                                |   |               | 5,726   |   |              |   | - |   |
| Other      assets                                                                                                                                                                                                                      |   |               | 1,058   |   |              |   | 733 |   |
| Total      assets                                                                                                                                                                                                                      |   | $                  | 327,304 |   |              | $      | 253,403 |   |
|                                                                                                                                                                                                                                   |   |               |    |   |              |   |   |   |
| Liabilities      and Shareholders' Equity                                                                                                                                                                                              |   |               |    |   |              |   |   |   |
|                                                                                                                                                                                                                                   |   |               |    |   |              |   |   |   |
| Liabilities                                                                                                                                                                                                                            |   |               |    |   |              |   |   |   |
| Deposits                                                                                                                                                                                                                               |   |               |    |   |              |   |   |   |
| Demand                                                                                                                                                                                                                                 |   | $                  | 11,949  |   |              | $      | 10,490 |   |
| Savings,      checking and money market                                                                                                                                                                                                |   |               | 76,354  |   |              |   | 69,119 |   |
| Time      certificates                                                                                                                                                                                                                 |   |               | 84,183  |   |              |   | 90,245 |   |
| Total      deposits                                                                                                                                                                                                                    |   |               | 172,486 |   |              |   | 169,854 |   |
|                                                                                                                                                                                                                                   |   |               |    |   |              |   |   |   |
| Securities      sold under agreement to repurchase                                                                                                                                                                                     |   |               | 6,626   |   |              |   | 891 |   |
| Federal      Home Loan Bank advances                                                                                                                                                                                                   |   |               | 41,690  |   |              |   | - |   |
| Borrowings      with other banks                                                                                                                                                                                                       |   |               | 35,000  |   |              |   | - |   |
| Deferred      tax liability                                                                                                                                                                                                            |   |               | -       |   |              |   | 96 |   |
| Interest      payable and other liablilities                                                                                                                                                                                           |   |               | 3,321   |   |              |   | 3,057 |   |
| Total      liabilities                                                                                                                                                                                                                 |   |               | 259,123 |   |              |   | 173,898 |   |
| Commitments      and contingencies                                                                                                                                                                                                     |   |               | -       |   |              |   | - |   |
|                                                                                                                                                                                                                                   |   |               |    |   |              |   |   |   |
| Shareholders'      Equity                                                                                                                                                                                                              |   |               |    |   |              |   |   |   |
| Preferred      stock, $0.01 par value, 10,000,000 shares authorized   no      shares outstanding at September 30, 2008 or December 31,    2007                                                                          |   |               | -       |   |              |   | - |   |
| Common      stock, $0.01 par value 50,000,000 shares authorized,   5,264,683      shares issued and 4,575,811 and 4,752,251 outstanding   at      September 30, 2008 and December 31, 2007, respectively |   |               | 53      |   |              |   | 53 |   |
| Additional      paid in capital                                                                                                                                                                                                        |   |               | 51,969  |   |              |   | 51,596 |   |
| Common      stock acquired by benefit plan:                                                                                                                                                                                            |   |               |    |   |              |   |   |   |
| Restricted      stock - Benefit plans                                                                                                                                                                                                  |   |               | (783    | )      |              |   | (438 | ) |
| Unallocated      common stock held by:                                                                                                                                                                                                 |   |               |    |   |              |   |   |   |
| Employee      Stock Ownership Plan trust                                                                                                                                                                                               |   |               | (3,843  | )      |              |   | (4,001 | ) |
| Benefit      plans                                                                                                                                                                                                                     |   |               | (3,156  | )      |              |   | (1,073 | ) |
| Retained      earnings                                                                                                                                                                                                                 |   |               | 23,573  |   |              |   | 32,230 |   |
| Accumulated      other comprehensive income                                                                                                                                                                                            |   |               | 368     |   |              |   | 1,138 |   |
| Total      shareholders' equity                                                                                                                                                                                                        |   |               | 68,181  |   |              |   | 79,505 |   |
| Total      liabilities and shareholders' equity                                                                                                                                                                                        |   | $                  | 327,304 |   |              | $      | 253,403 |   |
|                                                                                                                                                                                                                                   |   |               |    |   |              |   |   |   |
| See      accompanying notes to unaudited condensed consolidated financial      statements.                                                                                                                                             |   |

----

| First      Advantage Bancorp                                                                       |   |                    |      |   |                   |   |   |   |   |   |      |   |
|----------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|--------|--------|--------|--------|-----------|--------|
| Unaudited      - Condensed Consolidated Statements of Operations                                   |   |                    |      |   |                   |   |   |
| (Dollars      in thousands, except share and per share data)                                       |   |                    |      |   |                   |   |   |   |   |   |
|                                                                                               |   | Three      Months Ended |      |   | Nine      Months Ended |   |
|                                                                                               |   | September      30,      |      |   | September      30,     |   |
|                                                                                               |   | 2008                    |      |   | 2007                   |   |   | 2008   |   |   | 2007      |   |
| Interest      and Dividend Income                                                                  |   |                    |      |   |                   |   |   |   |   |   |      |   |
| Loans                                                                                              |   | $                       | 2,377     |   |                   | $      | 1,913  |   |   | $      | 6,586     |   |   | $ | 5,585 |   |
| Investment      securities                                                                         |   |                    | 2,152     |   |                   |   | 1,311  |   |   |   | 5,949     |   |   |   | 3,785 |   |
| Other                                                                                              |   |                    | 96        |   |                   |   | 83     |   |   |   | 311       |   |   |   | 340 |   |
| Total      interest and dividend income                                                            |   |                    | 4,625     |   |                   |   | 3,307  |   |   |   | 12,846    |   |   |   | 9,710 |   |
| Interest      Expense                                                                              |   |                    |      |   |                   |   |   |   |   |   |      |   |   |   |   |   |
| Deposits                                                                                           |   |                    | 1,181     |   |                   |   | 1,544  |   |   |   | 3,548     |   |   |   | 4,472 |   |
| Securities      sold under agreement to repurchase and  other      short-term borrowings |   |                    | 46        |   |                   |   | -      |   |   |   | 119       |   |   |   | - |   |
| Federal      Home Loan Bank advances                                                               |   |                    | 250       |   |                   |   | 11     |   |   |   | 625       |   |   |   | 17 |   |
| Borrowings      with other banks                                                                   |   |                    | 322       |   |                   |   | -      |   |   |   | 543       |   |   |   | - |   |
| Total      interest expense                                                                        |   |                    | 1,799     |   |                   |   | 1,555  |   |   |   | 4,835     |   |   |   | 4,489 |   |
| Net      Interest Income                                                                           |   |                    | 2,826     |   |                   |   | 1,752  |   |   |   | 8,011     |   |   |   | 5,221 |   |
| Provision      (Credit) for Loan Losses                                                            |   |                    | 193       |   |                   |   | (410   | )      |   |   | 550       |   |   |   | (378 | ) |
| Net      Interest Income After Provision (Credit) for Loan Losses                                  |   |                    | 2,633     |   |                   |   | 2,162  |   |   |   | 7,461     |   |   |   | 5,599 |   |
| Noninterest      Income                                                                            |   |                    |      |   |                   |   |   |   |   |   |      |   |   |   |   |   |
| Customer      service and other fees                                                               |   |                    | 308       |   |                   |   | 271    |   |   |   | 885       |   |   |   | 825 |   |
| Loan      servicing and other fees                                                                 |   |                    | 13        |   |                   |   | 31     |   |   |   | 34        |   |   |   | 173 |   |
| Net      gains on mortgage loan sales                                                              |   |                    | 140       |   |                   |   | 215    |   |   |   | 467       |   |   |   | 670 |   |
| Net      gain on sales of other real estate owned                                                  |   |                    | -         |   |                   |   | -      |   |   |   | -         |   |   |   | 7 |   |
| Net      loss on sales of available-for-sale securities                                            |   |                    | (2,584    | )      |                   |   | (2     | )      |   |   | (2,548    | )      |   |   | (331 | ) |
| Other-than-temporary      impairment on available-for-sale securities                              |   |                    | (13,577   | )      |                   |   | -      |   |   |   | (13,577   | )      |   |   | - |   |
| Net      gain on sales of other assets held-for-sale                                               |   |                    | -         |   |                   |   | -      |   |   |   | 295       |   |   |   | - |   |
| Commissions      on insurance and brokerage                                                        |   |                    | 79        |   |                   |   | 96     |   |   |   | 229       |   |   |   | 296 |   |
| Net      gain (loss) on premises and equipment                                                     |   |                    | -         |   |                   |   | -      |   |   |   | (37       | )      |   |   | 17 |   |
| Other                                                                                              |   |                    | 3         |   |                   |   | (29    | )      |   |   | 24        |   |   |   | 10 |   |
| Total      noninterest income                                                                      |   |                    | (15,618   | )      |                   |   | 582    |   |   |   | (14,228   | )      |   |   | 1,667 |   |
| Noninterest      Expense                                                                           |   |                    |      |   |                   |   |   |   |   |   |      |   |   |   |   |   |
| Salaries      and employee benefits                                                                |   |                    | 1,508     |   |                   |   | 1,331  |   |   |   | 4,453     |   |   |   | 3,893 |   |
| Net      occupancy expense                                                                         |   |                    | 128       |   |                   |   | 132    |   |   |   | 368       |   |   |   | 459 |   |
| Equipment      expense                                                                             |   |                    | 175       |   |                   |   | 89     |   |   |   | 463       |   |   |   | 364 |   |
| Data      processing fees                                                                          |   |                    | 194       |   |                   |   | 169    |   |   |   | 575       |   |   |   | 517 |   |
| Professional      fees                                                                             |   |                    | 160       |   |                   |   | 158    |   |   |   | 485       |   |   |   | 416 |   |
| Marketing      expense                                                                             |   |                    | 73        |   |                   |   | 104    |   |   |   | 206       |   |   |   | 219 |   |
| Office      expense                                                                                |   |                    | 73        |   |                   |   | 74     |   |   |   | 214       |   |   |   | 210 |   |
| Losses      on foreclosed assets, net                                                              |   |                    | -         |   |                   |   | 3      |   |   |   | 3         |   |   |   | 18 |   |
| Insurance      expense                                                                             |   |                    | 21        |   |                   |   | 22     |   |   |   | 65        |   |   |   | 66 |   |
| Mortgage      loan outsourced servicing                                                            |   |                    | 10        |   |                   |   | 41     |   |   |   | 36        |   |   |   | 156 |   |
| Other                                                                                              |   |                    | 295       |   |                   |   | 243    |   |   |   | 834       |   |   |   | 679 |   |
| Total      noninterest expense                                                                     |   |                    | 2,637     |   |                   |   | 2,366  |   |   |   | 7,702     |   |   |   | 6,997 |   |
| Income      (Loss) Before Income Taxes                                                             |   |                    | (15,622   | )      |                   |   | 378    |   |   |   | (14,469   | )      |   |   | 269 |   |
| Provision      (Credit) for Income Taxes                                                           |   |                    | (6,090    | )      |                   |   | 137    |   |   |   | (6,075    | )      |   |   | 54 |   |
| Net      Income (Loss)                                                                             |   | $                       | (9,532    | )      |                   | $      | 241    |   |   | $      | (8,394    | )      |   | $ | 215 |   |
| Per      common share:                                                                             |   |                    |      |   |                   |   |   |   |   |   |      |   |   |   |   |   |
| Basic      net earnings per common share                                                           |   | $                       | (2.04     | )      |                   |   | N/A    |   |   | $      | (1.77     | )      |   |   | N/A |   |
| Diluted      net earnings per common share                                                         |   | $                       | (2.04     | )      |                   |   | N/A    |   |   | $      | (1.77     | )      |   |   | N/A |   |
| Dividends      declared per common share                                                           |   | $                       | 0.05      |   |                   |   | N/A    |   |   | $      | 0.05      |   |   |   | N/A |   |
| Basic      weighted average common shares outstanding                                              |   |                    | 4,677,316 |   |                   |   | N/A    |   |   |   | 4,734,131 |   |   |   | N/A |   |
| Diluted      weighted average common shares outstanding                                            |   |                    | 4,677,316 |   |                   |   | N/A    |   |   |   | 4,734,131 |   |   |   | N/A |   |
| See      accompanying notes to unaudited condensed consolidated financial      statements.         |   |

----

| First      Advantage Bancorp                                                               |   |   |   |   |       |   |   |     |   |   |               |   |   |               |   |   |          |   |
|--------------------------------------------------------------------------------------------|--------|--------|--------|--------|------------|--------|--------|----------|--------|--------|--------------------|--------|--------|--------------------|--------|--------|---------------|--------|
| Unaudited      - Condensed Consolidated Statements of Changes in Stockholders'      Equity |   |   |   |   |       |   |   |     |   |   |
| Nine      Months Ended September 30, 2008 and 2007                                         |   |   |   |   |       |   |   |     |   |   |               |   |   |               |   |   |
| (Dollars      in thousands)                                                                |   |   |   |   |       |   |   |     |   |   |               |   |   |               |   |   |          |   |
|                                                                                       |   |   |   |   |       |   |   |     |   |   | Common             |   |   | Accumulated        |   |   |          |   |
|                                                                                       |   |   |   |   | Additional |   |   |     |   |   | Stock              |   |   | Other              |   |   | Total         |   |
|                                                                                       |   | Common |   |   | Paid-in    |   |   | Retained |   |   | Acquired      by   |   |   | Comprehensive      |   |   | Stockholders' |   |
|                                                                                       |   | Stock  |   |   | Capital    |   |   | Earnings |   |   | Benefit      Plans |   |   | Income      (Loss) |   |   | Equity        |   |
| Balance      at January 1, 2007                                                            |   |   |   |   |       |   |   | $        | 32,485 |   |               |   |   |               | $      | 404    |          |   | $ | 32,889 |   |
| Comprehensive      Income, net of tax:                                                     |   |   |   |   |       |   |   |     |   |   |               |   |   |               |   |   |          |   |   |   |   |
|   Net      income                                                                |   |   | -      |   |       |   | -      |     |   |   | 215                |   |   |               | -      |   |          |   | - |   |   |   | 215 |   |
|    Change      in unrealized appreciation                                   |   |   |   |   |       |   |   |     |   |   |               |   |   |               |   |   |          |   |   |   |   |   |   |   |
|    of      available-for-sale securities, net of tax                        |   |   | -      |   |       |   | -      |     |   |   | -                  |   |   |               | -      |   |          |   | 17 |   |   |   | 17 |   |
| Total      Comprehensive Income                                                            |   |   | -      |   |       |   | -      |     |   |   | -                  |   |   |               | -      |   |          |   | - |   |   |   | 232 |   |
| Balance      at September 30, 2007                                                         |   |   | -      |   |       |   | -      |     |   | $      | 32,700             |   |   |               | -      |   |          | $      | 421 |   |   | $ | 33,121 |   |
|                                                                                       |   |   |   |   |       |   |   |     |   |   |               |   |   |               |   |   |          |   |   |   |   |   |   |   |
| Balance      at January 1, 2008                                                            |   | $      | 53     |   |       | $      | 51,596 |     |   | $      | 32,230             |   |   | $                  | (5,512 | )      |          | $      | 1,138 |   |   | $ | 79,505 |   |
| Comprehensive      Income, net of tax:                                                     |   |   |   |   |       |   |   |     |   |   |               |   |   |               |   |   |          |   |   |   |   |   |   |   |
|   Net      loss                                                                  |   |   | -      |   |       |   | -      |     |   |   | (8,394             | )      |   |               | -      |   |          |   | - |   |   |   | (8,394 | ) |
|    Change      in unrealized depreciation                                   |   |   |   |   |       |   |   |     |   |   |               |   |   |               |   |   |          |   |   |   |   |   |   |   |
|    of      available-for-sale securities, net of tax                        |   |   | -      |   |       |   | -      |     |   |   | -                  |   |   |               | -      |   |          |   | (770 | ) |   |   | (770 | ) |
| Total      Comprehensive Loss                                                              |   |   | -      |   |       |   | -      |     |   |   | -                  |   |   |               | -      |   |          |   | - |   |   |   | (9,164 | ) |
| Dividends      payable $0.05 per common share                                              |   |   |   |   |       |   |   |     |   |   | (263               | )      |   |               |   |   |          |   |   |   |   |   | (263 | ) |
| Release      of Employee Stock Ownership Plan  (ESOP)      shares                |   |   | -      |   |       |   | 26     |     |   |   | -                  |   |   |               | 158    |   |          |   | - |   |   |   | 184 |   |
| Purchase      and release of  restricted      stock plan shares, net             |   |   | -      |   |       |   | 347    |     |   |   |               |   |   |               | (2,428 | )      |          |   | - |   |   |   | (2,081 | ) |
| Balance      at September 30, 2008                                                         |   | $      | 53     |   |       | $      | 51,969 |     |   | $      | 23,573             |   |   | $                  | (7,782 | )      |          | $      | 368 |   |   | $ | 68,181 |   |
|                                                                                       |   |   |   |   |       |   |   |     |   |   |               |   |   |               |   |   |          |   |   |   |   |   |   |   |
| See      accompanying notes to unaudited condensed consolidated financial      statements. |   |   |   |   |       |   |   |     |   |   |               |   |   |

----

| First      Advantage Bancorp                                                                      |   |                   |    |   |   |    |
|---------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|--------|---------|
| Unaudited      - Condensed Consolidated Statements of Cash Flows                                  |   |                   |    |   |   |    |
| (Dollars      in thousands)                                                                       |   |                   |    |   |   |    |
|                                                                                              |   | Nine      Months Ended |    |
|                                                                                              |   | September      30,     |    |
|                                                                                              |   | 2008                   |    |   | 2007   |    |
| Operating      Activities                                                                         |   |                   |    |   |   |    |
| Net      income (loss)                                                                            |   | $                      | (8,394  | )      |   | $       | 215 |   |
| Items      not requiring (providing) cash                                                         |   |                   |    |   |   |    |   |   |
| Depreciation      and amortization                                                                |   |                   | 350     |   |   |    | 295 |   |
| Provision      (credit) for loan losses                                                           |   |                   | 550     |   |   |    | (378 | ) |
| Decrease      in provision for uncertain tax positions                                            |   |                   | 251     |   |   |    | - |   |
| Amortization      of unearned compensation for restricted stock                                   |   |                   | 348     |   |   |    | - |   |
| Accretion      of premiums and discounts on securities                                            |   |                   | (178    | )      |   |    | (85 | ) |
| Amortization      of loan-servicing rights                                                        |   |                   | 9       |   |   |    | 31 |   |
| Deferred      income taxes                                                                        |   |                   | (5,276  | )      |   |    | 234 |   |
| ESOP      plan expense                                                                            |   |                   | 184     |   |   |    | - |   |
| Net      realized loss on available-for-sale securities                                           |   |                   | 2,548   |   |   |    | 331 |   |
| Other-than-temporary      impairment on available-for-sale securities                             |   |                   | 13,577  |   |   |    | - |   |
| Net      realized gain on sale of other real estate owned                                         |   |                   | -       |   |   |    | (7 | ) |
| Net      gain on assets held for sale                                                             |   |                   | (295    | )      |   |    | - |   |
| Federal      Home Loan Bank stock dividends                                                       |   |                   | (116    | )      |   |    | - |   |
| Net      (gain) loss on sale of premises and equipment                                            |   |                   | 38      |   |   |    | (17 | ) |
| Originations      of loans held for sale                                                          |   |                   | (24,054 | )      |   |    | (28,551 | ) |
| Proceeds      from loans sold                                                                     |   |                   | 23,625  |   |   |    | 28,700 |   |
| Changes      in                                                                                   |   |                   |    |   |   |    |   |   |
| Interest      receivable and other assets                                                         |   |                   | (833    | )      |   |    | (1,222 | ) |
| Interest      payable and other liabilities                                                       |   |                   | (623    | )      |   |    | (190 | ) |
| Net      cash provided by (used in) operating activities                                          |   |                   | 1,711   |   |   |    | (644 | ) |
| Investing      Activities                                                                         |   |                   |    |   |   |    |   |   |
| Purchases      of available-for-sale securities                                                   |   |                   | (67,969 | )      |   |    | (44,121 | ) |
| Proceeds      from maturities of and repayments of available-for-sale      securities             |   |                   | 20,435  |   |   |    | 10,288 |   |
| Proceeds      from sales of available-for-sale securities                                         |   |                   | 10,188  |   |   |    | 24,059 |   |
| Net      change in loans                                                                          |   |                   | (48,169 | )      |   |    | (3,648 | ) |
| Purchase      of premises and equipment                                                           |   |                   | (988    | )      |   |    | (959 | ) |
| Proceeds      from sale of premises and equipment                                                 |   |                   | -       |   |   |    | 68 |   |
| Purchase      of other assets held for sale                                                       |   |                   | (159    | )      |   |    | - |   |
| Proceeds      from sale of other assets                                                           |   |                   | 835     |   |   |    | - |   |
| Proceeds      from the sale of foreclosed assets                                                  |   |                   | -       |   |   |    | 998 |   |
| Net      cash used in investing activities                                                        |   |                   | (85,827 | )      |   |    | (13,315 | ) |
| Financing      Activities                                                                         |   |                   |    |   |   |    |   |   |
| Net      increase in demand deposits, money market, checking and  savings      accounts |   |                   | 8,694   |   |   |    | 7,441 |   |
| Net      decrease in certificates of deposit                                                      |   |                   | (6,062  | )      |   |    | (1,868 | ) |
| Net      change in repurchase agreement and other short-term    borrowings                        |   |                   | 5,735   |   |   |    | - |   |
| Net      change in Federal Home Loan Bank advances - short-term                                   |   |                   | 31,690  |   |   |    | - |   |
| Net      change in Federal Home Loan Bank advances - long-term                                    |   |                   | 10,000  |   |   |    | - |   |
| Proceeds      from long-term borrowings at other banks                                            |   |                   | 35,000  |   |   |    | - |   |
| Stock      purchased by benefit plans                                                             |   |                   | (2,428  | )      |   |    | - |   |
| Net      cash provided by financing activities                                                    |   |                   | 82,629  |   |   |    | 5,573 |   |
| Decrease      in Cash and Cash Equivalents                                                        |   |                   | (1,487  | )      |   |    | (8,386 | ) |
| Cash      and Cash Equivalents, Beginning of Period                                               |   |                   | 9,076   |   |   |    | 16,749 |   |
| Cash      and Cash Equivalents, End of Period                                                     |   |  $                | 7,589   |   |   |  $ | 8,363 |   |
| Supplemental      Cash Flow Information:                                                          |   |                   |    |   |   |    |   |   |
| Interest      paid                                                                                |   |                   | 3,835   |   |   |    | 4,553 |   |
| Real      estate acquired in settlement of loans                                                  |   |                   | -       |   |   |    | 78 |   |
| See      accompanying notes to unaudited condensed consolidated financial      statements.        |   |                   |    |   |   |    |   |   |

----

----

----

----

| (Unaudited      - Dollars in thousands,  except      per share amounts) |   | Three      Months Ended September 30, |      | Nine      Months Ended September 30, |   |
|-----------------------------------------------------------------------------------|--------|---------------------------------------|-----------|--------------------------------------|--------|
|                                                                              |   | 2008                                  |      |                                 | 2007   |   |   | 2008 |   |   | 2007 |   |
|                                                                              |   |                                  |      |                                 |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                            |   | $                                     | (9,532    | )                                    |   | $ | 241 |   |   | $ | (8,394 | ) |   | $ | 215 |   |
|                                                                              |   |                                  |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      shares - Basic EPS                                          |   |                                  | 4,677,316 |                                 |   |   | N/A |   |   |   | 4,734,131 |   |   |   | N/A |   |
| Weighted-average      shares - Diluted EPS                                        |   |                                  | 4,677,316 |                                 |   |   | N/A |   |   |   | 4,734,131 |   |   |   | N/A |   |
| Basic      loss per common share                                                  |   | $                                     | (2.04     | )                                    |   |   | N/A |   |   | $ | (1.77 | ) |   |   | N/A |   |
| Diluted      loss per common share                                                |   | $                                     | (2.04     | )                                    |   |   | N/A |   |   | $ | (1.77 | ) |   |   | N/A |   |

|                                   |    Shares |   Weighted-AverageExercise      Price | Weighted-AverageRemainingContractual      Term(in      years) |  AggregateIntrinsicValue |
|----------------------------------------|--------------------------|-------------------------------------------------|---------------------------------------------------------------|-------------------------------|
| Granted      – August 11, 2008   | 494,774                  | $10.30                                          | 9.875                                                         | $2.34                         |
| Exercised                              | -                        | -                                               | -                                                             | -                             |
| Forfeited      or expired              | -                        | -                                               | -                                                             | -                             |
| Outstanding      at September 30, 2008 | 494,774                  | $10.30                                          | 9.875                                                         | $2.34                         |
| Exercisable      at September 30, 2008 | -                        | -                                               | -                                                             | -                             |

----

| Dividend      yield                  | 2.00%             |
|--------------------------------------|-------------------|
| Expected      volatility             | 21.86%            |
| Risk-free      interest rate         | 3.50%             |
| Expected      life                   | 6.5      years    |
| Weighted      average exercise price | $10.30            |
| Weighted      average fair value     | $  2.34 |

| Nonvested Shares                     | Shares  | Weighted-AverageGrant-DateFair      Value |
|--------------------------------------|---------|-------------------------------------------|
| Granted      – August 11, 2008 | 201,562 | $10.30                                    |
| Vested                               | -       | -                                         |
| Forfeited                            | -       | -                                         |
| Balance      at September 30, 2008   | 201,562 | $10.30                                    |

----

| (Unaudited      - Dollars in thousands) |   | Three      Months Ended September 30, |   | Nine      Months Ended September 30, |   |
|-----------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                    |   | 2008                                  |   |                                 | 2007   |   |   | 2008 |   |   | 2007 |   |
|                                    |   |                                  |   |                                 |   |   |   |   |   |   |   |   |
| Balance,      beginning of period       |   | $                                     | 1,860  |                                 |   | $ | 2,008 |   |   | $ | 1,510 |   |   | $ | 2,025 |   |
| Provision      charged to expense       |   |                                  | 193    |                                 |   |   | (410 | ) |   |   | 550 |   |   |   | (378 | ) |
| Charge-offs                             |   |                                  | (34    | )                                    |   |   | (145 | ) |   |   | (61 | ) |   |   | (229 | ) |
| Recoveries                              |   |                                  | 20     |                                 |   |   | 16 |   |   |   | 40 |   |   |   | 51 |   |
| Balance,      end of period             |   | $                                     | 2,039  |                                 |   | $ | 1,469 |   |   | $ | 2,039 |   |   | $ | 1,469 |   |

| (Dollars      in thousands)                                      |                    |                                                                    |
|------------------------------------------------------------------|-------------------------|-------------------------------------------------------------------------|
| (Dollars      in thousands)                                      | September      30, 2008 | Quoted      Prices in Active Markets for Identical Assets(Level      1) | Significant      Other Observable      Inputs (Level      2) | Significant      Unobservable      Inputs (Level      3) |
| Assets:                                                          |                    |                                                                    |   |   |
|      Available      for sale securities | $132,899                | --                                                                      | $132,899 | -- |

----

----

The credit for income taxes was $6.1 millionand $6.1 million for the three-month and nine-month periods endedSeptember 30, 2008, compared to an income tax provision of $137,000 and$54,000 for the same periods in 2007. The effective tax rate for the three-monthand nine-month periods ended September 30, 2008 was (39.0)% and (42.0)%,respectively, compared to 36.2% and 20.1% for the same periods in2007.

----

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|                                       |                                          |                                                                     |                                                                        | Average      Balance Sheet for the                                  |
|--------------------------------------------|-----------------------------------------------|--------------------------------------------------------------------------|-----------------------------------------------------------------------------|---------------------------------------------------------------------|
|                                       |                                          |                                                                     |                                                                        |      Three Months Ended      September 30, |
|                                       |                                          |                                                                     |                                                                        | 2008                                                                |   |   |   | 2007 |   |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
|                                       |                                          |                                                                     |                                                                        |  Interest                                                      |   |   |   |  Interest |   |
|                                       |                                          |                                                                     | Average                                                                     | Income/                                                             |  Yield/ |   | Average | Income/ |  Yield/ |
|                                       |                                          |                                                                     | Balance                                                                     | Expense                                                             | Rate |   | Balance | Expense | Rate |
|                                       |                                          |                                                                     |        (Dollars      in thousands)                                     |
| ASSETS:                                    |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
| Interest-earning      assets:              |                                          |                                                                     |                                                                        |                                                                |   |   |   |
|                                       | Interest-earning      deposits at other banks |  $          3,173 |  $           54 | 6.77%                                                               |   |  $      2,750 |  $         36 | 5.19% |
|                                       | Loans                                         |                                                                     | 159,227                                                                     | 2,377                                                               | 5.94% |   | 106,223 | 1,913 | 7.14% |
|                                       | Investment      securities                    | 147,093                                                                  | 2,152                                                                       | 5.82%                                                               |   | 92,628 | 1,311 | 5.62% |
|                                       | Other      interest-earning assets            | 4,231                                                                    | 42                                                                          | 3.95%                                                               |   | 4,878 | 47 | 3.82% |
|                                       | Total      interest-earning assets            | 313,724                                                                  | 4,625                                                                       | 5.86%                                                               |   | 206,479 | 3,307 | 6.35% |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
| Noninterest-earning      assets            | 15,719                                        |                                                                     |                                                                        |                                                                | 11,929 |   |   |
| Total                                      |                                          |                                                                     |  $    329,443                                      |                                                                |   |   |  $  218,408 |   |   |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY: |                                          |                                                                     |                                                                        |                                                                |   |   |   |
|                                       | Interest-bearing      deposits                |  $     158,876                             |  $        1,181                | 2.96%                                                               |   |  $    171,192 |  $    1,544 | 3.58% |
|                                       | FHLB      advances and other borrowings       | 46,532                                                                   | 296                                                                         | 2.53%                                                               |   | 778 | 11 | 5.61% |
|                                       | Long-term      borrowings at other banks      | 35,000                                                                   | 322                                                                         | 3.66%                                                               |   |                     - |                  - |   |
| Total      Interest-Bearing Liabilities    | 240,408                                       | 1,799                                                                    | 2.98%                                                                       |                                                                | 171,970 | 1,555 | 3.59% |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
|                                       | Noninterest-bearing      deposits             | 10,577                                                                   |                                                                        |                                                                |   | 10,378 |   |   |
|                                       | Other      noninterest-bearing liabilities    | 2,894                                                                    |                                                                        |                                                                |   | 3,770 |   |   |
|                                       | Shareholders'      equity                     | 75,564                                                                   |                                                                        |                                                                |   | 32,290 |   |   |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
| Total                                      |                                          |                                                                     |  $    329,443                                      |                                                                |   |   |  $  218,408 |   |   |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
| Net      Interest Income                   |                                          |  $     2,826                               |                                                                        |                                                                |   |  $    1,752 |   |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
| Net      Interest Margin                   |                                          |                                                                     | 3.58%                                                                       |                                                                |   |   | 3.37% |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
| Interest      rate spread                  |                                          |                                                                     | 2.88%                                                                       |                                                                |   |   | 2.76% |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |
| Average      interest-earning assets to    |                                          |                                                                     |                                                                        |                                                                |   |   |   |
|                                       | average      interest-bearing liabilities     |                                                                     |                                                                        | 130.50%                                                             |   |   |   | 120.07% |
|                                       |                                          |                                                                     |                                                                        |                                                                |   |   |   |   |   |

----

|                                                                                        |   | Three      Months Ended                                |   |
|---------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                                                                        |   | September      30, 2008 Compared to September 30, 2007 |   |
|                                                                                        |   | Increase      (Decrease) Due To                        |   |
|                                                                                        |   | Volume                                                 |   |   | Rate |   |   | Net |   |
|                                                                                        |   | (Dollars      In Thousands)                            |   |
|     Interest      earned on:                                            |   |                                                   |   |   |   |   |   |   |   |
|        Interest-earning      assets:                     |   |                                                   |   |   |   |   |   |   |   |
|          Interest-earning      demand deposits |   | $                                                      | (52    | ) |   | $ | 70 |   |   | $ | 18 |   |
|          Loans                                 |   |                                                   | 1,004  |   |   |   | (540 | ) |   |   | 464 |   |
|          Investment      securities            |   |                                                   | 615    |   |   |   | 226 |   |   |   | 841 |   |
|          Other      interest-earning assets    |   |                                                   | (13    | ) |   |   | 8 |   |   |   | (5 | ) |
|      Total      Earning Assets                                     |   |                                                   | 1,554  |   |   |   | (236 | ) |   |   | 1,318 |   |
|                                                                                        |   |                                                   |   |   |   |   |   |   |   |   |   |   |
|     Interest      paid on:                                              |   |                                                   |   |   |   |   |   |   |   |   |   |   |
|        Interest      bearing deposits                    |   |                                                   | 514    |   |   |   | (877 | ) |   |   | (363 | ) |
|        FHLB      advances and other borrowings           |   |                                                   | 289    |   |   |   | (4 | ) |   |   | 285 |   |
|    Long-term      borrowings at other banks                                  |   |                                                   | 322    |   |   |   | - |   |   |   | 322 |   |
|     Total      Interest-Bearing Liabilities                             |   |                                                   | 1,125  |   |   |   | (881 | ) |   |   | 244 |   |
|     Net      Interest Income                                            |   | $                                                      | 429    |   |   | $ | 645 |   |   | $ | 1,074 |   |
|                                                                                        |   |                                                   |   |   |   |   |   |   |   |   |   |   |

|                                                                  |   | Three      Months Ended September 30, |    |
|-----------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                  |   | 2008                                  |    |   | 2007 |   |   | %      Change |   |
|                                                                  |   |  (Dollars      in thousands)     |    |
| Non-interest      Income                                              |   |                                  |    |   |   |   |   |   |   |
| Customer      service and other fees                                  |   | $                                     | 308     |   |   | $ | 271 |   |   |   | 13.65 | % |
| Loan      servicing and other fees                                    |   |                                  | 13      |   |   |   | 31 |   |   |   | (58.06 | )      % |
| Net      gains on mortgage loan sales                                 |   |                                  | 140     |   |   |   | 215 |   |   |   | (34.88 | )      % |
| Net      loss on sales of available-for-sale securities               |   |                                  | (2,584  | ) |   |   | (2 | ) |   |   | (129300.00 | )      % |
| Other-than-temporary      impairment on available-for-sale securities |   |                                  | (13,577 | ) |   |   | - |   |   |   | (100.00 | )      % |
| Commissions      on insurance and brokerage                           |   |                                  | 79      |   |   |   | 96 |   |   |   | (17.71 | )      % |
| Other                                                                 |   |                                  | 3       |   |   |   | (29 | ) |   |   | 110.34 | % |
| Total      noninterest income                                         |   | $                                     | (15,618 | ) |   | $ | 582 |   |   |   | (2783.51 | )      % |

----

|                                    |   | Three      Months Ended September 30, |   |
|-----------------------------------------|--------|---------------------------------------|--------|
|                                    |   | 2008                                  |   |   | 2007 |   |   | %      Change |   |
|                                    |   |  (Dollars      in Thousands)     |
| Non-interest      Expense               |   |                                  |   |   |   |   |   |   |   |
| Salaries      and employee benefits     |   | $                                     | 1,508  |   |   | $ | 1,331 |   |   |   | 13.30 | % |
| Net      occupancy expense              |   |                                  | 128    |   |   |   | 132 |   |   |   | (3.03 | )      % |
| Equipment      expense                  |   |                                  | 175    |   |   |   | 89 |   |   |   | 96.63 | % |
| Data      processing fees               |   |                                  | 194    |   |   |   | 169 |   |   |   | 14.79 | % |
| Professional      fees                  |   |                                  | 160    |   |   |   | 158 |   |   |   | 1.27 | % |
| Marketing      expense                  |   |                                  | 73     |   |   |   | 104 |   |   |   | (29.81 | )      % |
| Office      expense                     |   |                                  | 73     |   |   |   | 74 |   |   |   | (1.35 | )      % |
| Losses      on foreclosed assets, net   |   |                                  | -      |   |   |   | 3 |   |   |   | (100.00 | )      % |
| Insurance      expense                  |   |                                  | 21     |   |   |   | 22 |   |   |   | (4.55 | )      % |
| Mortgage      loan outsourced servicing |   |                                  | 10     |   |   |   | 41 |   |   |   | (75.61 | )      % |
| Other                                   |   |                                  | 295    |   |   |   | 243 |   |   |   | 21.40 | % |
| Total      noninterest expense          |   | $                                     | 2,637  |   |   | $ | 2,366 |   |   |   | 11.45 | % |

----

----

----

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|                                       |                                          |                                                               |                                                             | Average      Balance Sheet for the                                 |
|--------------------------------------------|-----------------------------------------------|--------------------------------------------------------------------|------------------------------------------------------------------|--------------------------------------------------------------------|
|                                       |                                          |                                                               |                                                             |      Nine Months Ended      September 30, |
|                                       |                                          |                                                               |                                                             | 2008                                                               |   |   |   | 2007 |   |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
|                                       |                                          |                                                               |                                                             |  Interest                                                     |   |   |   |  Interest |   |
|                                       |                                          |                                                               | Average                                                          | Income/                                                            |  Yield/ |   | Average | Income/ |  Yield/ |
|                                       |                                          |                                                               | Balance                                                          | Expense                                                            | Rate |   | Balance | Expense | Rate |
|                                       |                                          |                                                               |        (Dollars      in thousands)                          |
| ASSETS:                                    |                                          |                                                               |                                                             |                                                               |   |   |   |   |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
| Interest-earning      assets:              |                                          |                                                               |                                                             |                                                               |   |   |   |
|                                       | Interest-earning      deposits at other banks |  $         3,974 |  $         165 | 5.55%                                                              |   |  $      4,896 |  $        201 | 5.49% |
|                                       | Loans                                         |                                                               | 143,833                                                          | 6,586                                                              | 6.12% |   | 102,624 | 5,585 | 7.28% |
|                                       | Investment      securities                    | 139,410                                                            | 5,949                                                            | 5.70%                                                              |   | 91,917 | 3,785 | 5.51% |
|                                       | Other      interest-earning assets            | 4,392                                                              | 146                                                              | 4.44%                                                              |   | 4,881 | 139 | 3.81% |
|                                       | Total      interest-earning assets            | 291,609                                                            | 12,846                                                           | 5.88%                                                              |   | 204,318 | 9,710 | 6.35% |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
| Noninterest-earning      assets            | 13,520                                        |                                                               |                                                             |                                                               | 11,395 |   |   |
| Total                                      |                                          |                                                               |  $     305,129                     |                                                               |   |   |  $   215,713 |   |   |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY: |                                          |                                                               |                                                             |                                                               |   |   |   |
|                                       | Interest-bearing      deposits                |  $      156,178                 |  $     3,548                       | 3.03%                                                              |   |  $  169,252 |  $   4,472 | 3.53% |
|                                       | FHLB      advances and other borrowings       | 38,084                                                             | 744                                                              | 2.61%                                                              |   | 395 | 17 | 5.75% |
|                                       | Long-term      borrowings at other banks      | 19,671                                                             | 543                                                              | 3.69%                                                              |   |                     - |                  - |   |
| Total      Interest-Bearing Liabilities    | 213,933                                       | 4,835                                                              | 3.02%                                                            |                                                               | 169,647 | 4,489 | 3.54% |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
|                                       | Noninterest-bearing      deposits             | 9,915                                                              |                                                             |                                                               |   | 10,101 |   |   |
|                                       | Other      noninterest-bearing liabilities    | 2,753                                                              |                                                             |                                                               |   | 3,568 |   |   |
|                                       | Shareholders'      equity                     | 78,528                                                             |                                                             |                                                               |   | 32,397 |   |   |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
| Total                                      |                                          |                                                               |  $     305,129                     |                                                               |   |   |  $   215,713 |   |   |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
| Net      Interest Income                   |                                          |  $       8,011             |                                                             |                                                               |   |  $    5,221 |   |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
| Net      Interest Margin                   |                                          |                                                               | 3.67%                                                            |                                                               |   |   | 3.42% |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
| Interest      rate spread                  |                                          |                                                               | 2.86%                                                            |                                                               |   |   | 2.81% |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |
| Average      interest-earning assets to    |                                          |                                                               |                                                             |                                                               |   |   |   |
|                                       | average      interest-bearing liabilities     |                                                               |                                                             | 136.31%                                                            |   |   |   | 120.44% |
|                                       |                                          |                                                               |                                                             |                                                               |   |   |   |   |   |

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|                                                                                        |   | Nine      Months Ended                                 |   |
|---------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                                                                        |   | September      30, 2008 Compared to September 30, 2007 |   |
|                                                                                        |   | Increase      (Decrease) Due To                        |   |
|                                                                                        |   | Volume                                                 |   |   | Rate |   |   | Net |   |
|                                                                                        |   | (Dollars      in thousands)                            |   |
|     Interest      earned on:                                            |   |                                                   |   |   |   |   |   |   |   |
|        Interest-earning      assets:                     |   |                                                   |   |   |   |   |   |   |   |
|          Interest-earning      demand deposits |   | $                                                      | (39    | ) |   | $ | 3 |   |   | $ | (36 | ) |
|          Loans                                 |   |                                                   | 1,806  |   |   |   | (805 | ) |   |   | 1,001 |   |
|          Investment      securities            |   |                                                   | 1,981  |   |   |   | 183 |   |   |   | 2,164 |   |
|          Other      interest-earning assets    |   |                                                   | (15    | ) |   |   | 22 |   |   |   | 7 |   |
|      Total      Earning Assets                                     |   |                                                   | 3,733  |   |   |   | (597 | ) |   |   | 3,136 |   |
|                                                                                        |   |                                                   |   |   |   |   |   |   |   |   |   |   |
|     Interest      paid on:                                              |   |                                                   |   |   |   |   |   |   |   |   |   |   |
|        Interest      bearing deposits                    |   |                                                   | (134   | ) |   |   | (790 | ) |   |   | (924 | ) |
|        FHLB      advances and other borrowings           |   |                                                   | 732    |   |   |   | (5 | ) |   |   | 727 |   |
|    Long-term      borrowings at other banks                                  |   |                                                   | 543    |   |   |   | - |   |   |   | 543 |   |
|     Total      Interest-Bearing Liabilities                             |   |                                                   | 1,141  |   |   |   | (795 | ) |   |   | 346 |   |
|     Net      Interest Income                                            |   | $                                                      | 2,592  |   |   | $ | 198 |   |   | $ | 2,790 |   |

|                                                                  |   | Nine      Months Ended September 30, |    |
|-----------------------------------------------------------------------|--------|--------------------------------------|---------|
|                                                                  |   | 2008                                 |    |   | 2007 |   |   | %      Change |   |
|                                                                  |   |                                 |    |   | (Dollars      in thousands) |   |   |   |   |
| Non-interest      Income                                              |   |                                 |    |   |   |   |   |   |   |
| Customer      service and other fees                                  |   | $                                    | 885     |   |   | $ | 825 |   |   |   | 7.27 | % |
| Loan      servicing and other fees                                    |   |                                 | 34      |   |   |   | 173 |   |   |   | (80.35 | )      % |
| Net      gains on mortgage loan sales                                 |   |                                 | 467     |   |   |   | 670 |   |   |   | (30.30 | )      % |
| Net      gain on sales of other real estate owned                     |   |                                 | -       |   |   |   | 7 |   |   |   | (100.00 | )      % |
| Net      loss on sales of available-for-sale securities               |   |                                 | (2,548  | ) |   |   | (331 | ) |   |   | (869.80 | )      % |
| Other-than-temporary      impairment on available-for-sale securities |   |                                 | (13,577 | ) |   |   | - |   |   |   | (100.00 | ) |
| Net      gain on sales of assets-held-for sale                        |   |                                 | 295     |   |   |   | - |   |   |   | 100.00 | % |
| Commissions      on insurance and brokerage                           |   |                                 | 229     |   |   |   | 296 |   |   |   | (22.64 | )      % |
| Net      loss on premises and equipment                               |   |                                 | (37     | ) |   |   | 17 |   |   |   | (317.65 | )      % |
| Other                                                                 |   |                                 | 24      |   |   |   | 10 |   |   |   | 140.00 | % |
| Total      noninterest income                                         |   | $                                    | (14,228 | ) |   | $ | 1,667 |   |   |   | (953.51 | )      % |

----

|                                    |   | Nine      Months Ended September 30, |   |
|-----------------------------------------|--------|--------------------------------------|--------|
|                                    |   | 2008                                 |   |   | 2007 |   |   | %      Change |   |
|                                    |   |  (Dollars      in Thousands)    |   |
| Non-interest      Expense               |   |                                 |   |   |   |   |   |   |   |
| Salaries      and employee benefits     |   | $                                    | 4,453  |   |   | $ | 3,893 |   |   |   | 14.38 | % |
| Net      occupancy expense              |   |                                 | 368    |   |   |   | 459 |   |   |   | (19.83 | )      % |
| Equipment      expense                  |   |                                 | 463    |   |   |   | 364 |   |   |   | 27.20 | % |
| Data      processing fees               |   |                                 | 575    |   |   |   | 517 |   |   |   | 11.22 | % |
| Professional      fees                  |   |                                 | 485    |   |   |   | 416 |   |   |   | 16.59 | % |
| Marketing      expense                  |   |                                 | 206    |   |   |   | 219 |   |   |   | (5.94 | )      % |
| Office      expense                     |   |                                 | 214    |   |   |   | 210 |   |   |   | 1.90 | % |
| Losses      on foreclosed assets, net   |   |                                 | 3      |   |   |   | 18 |   |   |   | (83.33 | )      % |
| Insurance      expense                  |   |                                 | 65     |   |   |   | 66 |   |   |   | (1.52 | )      % |
| Mortgage      loan outsourced servicing |   |                                 | 36     |   |   |   | 156 |   |   |   | (76.92 | )      % |
| Other                                   |   |                                 | 834    |   |   |   | 679 |   |   |   | 22.83 | % |
| Total      noninterest expense          |   | $                                    | 7,702  |   |   | $ | 6,997 |   |   |   | 10.08 | % |

----

----

| Tier      1 Core Capital (to adjusted total assets)      | 13.04% |
|----------------------------------------------------------|--------|
| Tangible      Equity Ratio (to tangible assets)          | 13.04% |
| Tier      1 Risk-Based Capital (to risk-weighted assets) | 21.74% |
| Total      Risk-Based Capital (to risk-weighted assets)  | 22.78% |

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The capital and credit markets have been experiencingsignificant volatility and disruption for more than 12 months. In recent weeks,the volatility and disruption has reached unprecedented levels. In some cases,the markets have produced downward pressure on stock prices and creditavailability for certain issuers without regard to those issuers’ underlyingfinancial strength. If current levels of market disruption and volatilitycontinue or worsen, there can be no assurance that we will not experience anadverse effect, which may be material, on our ability to access capital and onour business, financial condition and results of operations. As a result ofthese volatile and disrupted credit markets, our customers’ ability to raisecapital and refinance maturing obligations could be adversely affected, and thiscould result in a further adverse impact on our business, financial conditionand results of operations as contributing to a widening of credit spreads and ageneral lack of liquidity in the marketplace, all of which can result in afurther adverse impact on our business, financial condition and results ofoperations.

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Item 5. Other Information.

| 3.1    | Charter      of First Advantage Bancorp (1)                                                                                                                                                                                             |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2    | Bylaws      of First Advantage Bancorp (1)                                                                                                                                                                                              |
| 4.0    | Form      of Stock Certificate of First Advantage Bancorp (1)                                                                                                                                                                           |
| 31.1   | Rule      13a-14(a)/15d-14(a) Certification of Chief Executive    Officer                                                                                                                                                               |
| 31.2   | Rule      13a-14(a)/15d-14(a) Certification of Chief Financial    Officer                                                                                                                                                               |
| 32.0   | Section      1350 Certification                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                    |
| (1)    | Incorporated      herein by reference to the exhibits to the Company’s Registration      Statement on Form S-1 (File 333-144454), as amended, initially filed with      the Securities and Exchange Commission on July 10,  2007. |

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| Dated:  November      12, 2008 | By:           /s/Earl O. Bradley, III |
|------------------------------------------|----------------------------------------------------------------------------------------------|
|                                     | Earl      O. Bradley, III                                                                    |
|                                     | Chief      Executive Officer                                                                 |
|                                     |                                                                                         |
|                                     |                                                                                         |
|                                     |                                                                                         |
| Dated:  November      12, 2008 | By:           /s/Patrick C. Greenwell |
|                                     | Patrick      C. Greenwell                                                                    |
|                                     | Chief      Financial Officer                                                                 |

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