##### 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number: 001-33682
 FIRST ADVANTAGE BANCORP
  Tennessee
    
    26-0401680(State or other jurisdiction of incorporation or
    
    (I.R.S. Employer Identification No.)organization)1430 Madison Street, Clarksville, Tennessee
    
    37040(Address of principal executive offices)
    
    (Zip Code)
 (931) 552-6176  (Registrants telephone number, including area code)
 Not Applicable  (Former name, former address and former fiscal year, if changed since last report)
 o þ
  o o þ
 o þ




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##### 



EXPLANATORY NOTE
  FIRST ADVANTAGE BANCORP
 Table of Contents
 PageNo.Part I. Financial InformationItem 1.
    
    Condensed Consolidated Balance Sheets as of September 30, 2007 (unaudited) and
December 31, 2006
    
    
    4Condensed Consolidated Statements of Income for the Three and Nine Months
Ended September 30, 2007 and 2006 (unaudited)
    
    
    5Condensed Consolidated Statements of Comprehensive Income for the Three and
Nine Months Ended September 30, 2007 and 2006 (unaudited)
    
    
    6Condensed Consolidated Statements of Cash Flows for the Nine Months Ended
September 30, 2007 and 2006 (unaudited)
    
    
    7Notes to Condensed Consolidated Financial Statements (unaudited)
    
    
    9Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of
Operations
    
    
    11Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    19Item 4.
    
    Controls and Procedures
    
    
    20Part II. Other InformationItem 1.
    
    Legal Proceedings
    
    
    20Item 1A.
    
    Risk Factors
    
    
    21Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    21Item 3.
    
    Defaults Upon Senior Securities
    
    
    21Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    21Item 5.
    
    Other Information
    
    
    21Item 6.
    
    Exhibits
    
    
    21Signatures
    
    
    22
 2




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##### 



PART I. FINANCIAL STATEMENTS
 Item 1. Financial Statements
  3




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##### 



FIRST FEDERAL SAVINGS BANK
Condensed Consolidated Balance Sheets as of September 30, 2007 (Unaudited)
and December 31, 2006
(Dollars in Thousands)
 (Unaudited)September 30,
    
    
    December 31,2007
    
    
    2006AssetsCash and due from banks
    
    $
    4,258
    
    
    $
    1,754Interest-bearing demand deposits
    
    
    931
    
    
    
    5,631Federal funds sold
    
    
    3,174
    
    
    
    9,364Cash and cash equivalents
    
    
    8,363
    
    
    
    16,749Available-for-sale securities
    
    
    93,077
    
    
    
    83,519Loans held for sale
    
    
    1,251
    
    
    
    1,400Loans, net of allowance for loan
losses of $1,469 and $2,025 at
September 30, 2007 and December 31,
2006, respectively
    
    
    102,318
    
    
    
    98,370Premises and equipment
    
    
    6,918
    
    
    
    6,305Mortgage servicing rights
    
    
    20
    
    
    
    51Foreclosed assets held for sale
    
    
    33
    
    
    
    946Other assets held for sale
    
    
    882
    
    
    
    581Federal Home Loan Bank stock
    
    
    2,872
    
    
    
    2,872Accrued interest receivable
    
    
    1,552
    
    
    
    1,356Deferred income taxes
    
    
    341
    
    
    
    588Other assets
    
    
    1,407
    
    
    
    682Total assets
    
    $
    219,034
    
    
    $
    213,419Liabilities
and EquityDepositsDemand
    
    $
    9,422
    
    
    $
    9,620Savings, checking, and money market
    
    
    77,133
    
    
    
    69,494Time certificates
    
    
    95,627
    
    
    
    97,495Total deposits
    
    $
    182,182
    
    
    $
    176,609Interest payable and other liabilities
    
    
    3,731
    
    
    
    3,921Total liabilities
    
    $
    185,913
    
    
    $
    180,530Commitments and Contingencies
    
    
    
    
    
    
    EquityRetained earnings
    
    
    32,700
    
    
    
    32,485Accumulated other comprehensive income
    
    
    421
    
    
    
    404Total equity
    
    
    33,121
    
    
    
    32,889Total liabilities and equity
    
    $
    219,034
    
    
    $
    213,419
 See accompanying notes to unaudited condensed consolidated financial statements.
 4




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##### 



FIRST FEDERAL SAVINGS BANK
Condensed Consolidated Statements of Income for the Three and Nine Months
Ended September 30, 2007 and 2006 (Unaudited)
(Dollars in Thousands)
 (Unaudited)
    
    
    (Unaudited)Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Interest and Dividend IncomeLoans
    
    $
    1,883
    
    
    $
    1,931
    
    
    $
    5,585
    
    
    $
    6,017Investment securities
    
    
    1,311
    
    
    
    995
    
    
    
    3,785
    
    
    
    2,807Other
    
    
    83
    
    
    
    185
    
    
    
    340
    
    
    
    518Total interest and dividend income
    
    
    3,277
    
    
    
    3,111
    
    
    
    9,710
    
    
    
    9,342Interest ExpenseDeposits
    
    
    1,544
    
    
    
    1,282
    
    
    
    4,472
    
    
    
    3,368Federal Home Loan Bank advances
    
    
    11
    
    
    
    
    
    
    
    17
    
    
    
    394Total interest expense
    
    
    1,555
    
    
    
    1,282
    
    
    
    4,489
    
    
    
    3,762Net Interest Income
    
    
    1,722
    
    
    
    1,829
    
    
    
    5,221
    
    
    
    5,580Provision (Credit) for Loan Losses
    
    
    (410
    )
    
    
    (294
    )
    
    
    (378
    )
    
    
    (257
    )Net Interest Income After Provision for Loan
Losses
    
    
    2,132
    
    
    
    2,123
    
    
    
    5,599
    
    
    
    5,837Noninterest IncomeCustomer service and other fees
    
    
    271
    
    
    
    266
    
    
    
    825
    
    
    
    805Loan servicing and other fees
    
    
    31
    
    
    
    41
    
    
    
    173
    
    
    
    128Net gains on loan sales
    
    
    215
    
    
    
    208
    
    
    
    670
    
    
    
    467Net gain (loss) on sales of other real
estate owned
    
    
    
    
    
    
    (5
    )
    
    
    7
    
    
    
    56Net realized gain (loss) on sales of
available-for-sale securities
    
    
    (2
    )
    
    
    
    
    
    
    (331
    )
    
    
    Commissions on insurance and brokerage
    
    
    96
    
    
    
    172
    
    
    
    296
    
    
    
    372Net gain (loss) on premises and equipment
    
    
    
    
    
    
    (1
    )
    
    
    17
    
    
    
    (7
    )Other
    
    
    1
    
    
    
    14
    
    
    
    10
    
    
    
    126Total noninterest income
    
    
    612
    
    
    
    695
    
    
    
    1,667
    
    
    
    1,947Noninterest ExpenseSalaries and employee benefits
    
    
    1,331
    
    
    
    1,253
    
    
    
    3,893
    
    
    
    3,780Net occupancy expense
    
    
    132
    
    
    
    157
    
    
    
    459
    
    
    
    447Equipment expense
    
    
    89
    
    
    
    89
    
    
    
    364
    
    
    
    247Data processing fees
    
    
    169
    
    
    
    153
    
    
    
    517
    
    
    
    578Professional fees
    
    
    135
    
    
    
    84
    
    
    
    416
    
    
    
    316Marketing expense
    
    
    104
    
    
    
    86
    
    
    
    219
    
    
    
    276Office expense
    
    
    74
    
    
    
    55
    
    
    
    210
    
    
    
    231Losses on foreclosed assets, net
    
    
    3
    
    
    
    
    
    
    
    18
    
    
    
    Insurance expense
    
    
    22
    
    
    
    29
    
    
    
    66
    
    
    
    90Mortgage loan outsourced servicing
    
    
    41
    
    
    
    32
    
    
    
    156
    
    
    
    119Other
    
    
    266
    
    
    
    241
    
    
    
    679
    
    
    
    741Total noninterest expense
    
    
    2,366
    
    
    
    2,179
    
    
    
    6,997
    
    
    
    6,825Income Before Income Taxes
    
    
    378
    
    
    
    639
    
    
    
    269
    
    
    
    959Provision for Income Taxes
    
    
    137
    
    
    
    318
    
    
    
    54
    
    
    
    462Net Income
    
    $
    241
    
    
    $
    321
    
    
    $
    215
    
    
    $
    497
 See accompanying notes to unaudited condensed consolidated financial statements.
 5




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##### 



FIRST FEDERAL SAVINGS BANK
Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended
September 30, 2007 and 2006
(Unaudited)
(Dollars in Thousands)
 (Unaudited)
    
    
    (Unaudited)Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    

September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net Income
    
    $
    241
    
    
    $
    321
    
    
    $
    215
    
    
    $
    497Unrealized Gains (Losses) on available for
sale securities
    
    
    1,080
    
    
    
    891
    
    
    
    (302
    )
    
    
    (215
    )Less reclassification adjustment for
realized (gains) losses included in income
    
    
    2
    
    
    
    
    
    
    
    331
    
    
    
    Other comprehensive loss, before tax effect
    
    
    1,082
    
    
    
    891
    
    
    
    29
    
    
    
    (215
    )Tax expense (benefit)
    
    
    438
    
    
    
    361
    
    
    
    12
    
    
    
    (87
    )Other Comprehensive Income (Losses)
    
    
    644
    
    
    
    530
    
    
    
    17
    
    
    
    (128
    )Comprehensive Income (Losses)
    
    $
    885
    
    
    $
    851
    
    
    $
    232
    
    
    $
    369
 See accompanying notes to unaudited condensed consolidated financial statements.
 6




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##### 



FIRST FEDERAL SAVINGS BANK
Condensed Consolidated Statements of Cash Flows for the Nine Months
Ended September 30, 2007 and 2006 (Unaudited)
(Dollars in Thousands)
 (Unaudited)Nine Months EndedSeptember 30,2007
    
    2006Operating ActivitiesNet income (loss)
    
    $
    215
    
    
    $
    497Items not requiring (providing) cashDepreciation and amortization
    
    
    295
    
    
    
    284Provision for loan losses
    
    
    (378
    )
    
    
    (257
    )Amortization of premiums and discounts on securities
    
    
    (85
    )
    
    
    13Amortization of loan-servicing rights
    
    
    31
    
    
    
    62Deferred income taxes
    
    
    234
    
    
    
    304Net realized (gain) loss on available-for-sale securities
    
    
    331
    
    
    
    Net realized (gain) loss on sale of other real estate owned
    
    
    (7
    )
    
    
    (56
    )Federal Home Loan Bank stock dividends
    
    
    
    
    
    
    (118
    )(Gain) loss on sale of premises and equipment
    
    
    (17
    )
    
    
    7Originations of loans held for sale
    
    
    (28,551
    )
    
    
    (20,266
    )Proceeds from loans sold
    
    
    28,700
    
    
    
    18,088Changes inInterest Receivable and Other assets
    
    
    (1,222
    )
    
    
    (338
    )Interest payable and other liabilities
    
    
    (190
    )
    
    
    (192
    )Net cash used in operating activities
    
    
    (644
    )
    
    
    (1,972
    )Investing ActivitiesPurchases of available-for-sale securities
    
    
    (44,121
    )
    
    
    (18,928
    )Proceeds from maturities of and repayments of available-for-sale securities
    
    
    10,288
    
    
    
    9,178Proceeds from sales of available-for-sale securities
    
    
    24,059
    
    
    
    Net change in loans
    
    
    (3,648
    )
    
    
    17,664Purchase of premises and equipment
    
    
    (959
    )
    
    
    (1,726
    )Proceeds from sales of premises and equipment
    
    
    68
    
    
    
    36Proceeds from the sale of foreclosed assets
    
    
    998
    
    
    
    700Net cash provided by (used in) investing activities
    
    
    (13,315
    )
    
    
    6,924
 See accompanying notes to unaudited condensed consolidated financial statements.
 7




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##### 



FIRST FEDERAL SAVINGS BANK
Condensed Consolidated Statements of Cash Flows for the Nine Months
Ended September 30, 2007 and 2006 (Unaudited) (Continued)
(Dollars in Thousands)
 (Unaudited)Nine Months EndedSeptember 30,2007
    
    
    2006Financing ActivitiesNet increase (decrease) in demand deposits, money market,
checking and savings accounts
    
    
    7,441
    
    
    
    (3,312
    )Net increase (decrease) in certificates of deposit
    
    
    (1,868
    )
    
    
    7,466Proceeds from Federal Home Loan Bank advances
    
    
    9,000
    
    
    
    16,000Repayment of Federal Home Loan Bank advances
    
    
    (9,000
    )
    
    
    (28,159
    )Net cash provided by (used in) financing activities
    
    
    5,573
    
    
    
    (8,005
    )Increase (Decrease) in Cash and Cash Equivalents
    
    
    (8,386
    )
    
    
    (3,053
    )Cash and Cash Equivalents, Beginning of Year
    
    
    16,749
    
    
    
    20,161Cash and Cash Equivalents, End of Year
    
    $
    8,363
    
    
    $
    17,108Supplemental Cash Flow InformationInterest paid
    
    
    4,553
    
    
    
    3,496Income taxes paid (net of refunds)
    
    
    357
    
    
    
    78Real estate acquired in settlement of loans
    
    
    78
    
    
    
    1,025
 See accompanying notes to unaudited condensed consolidated financial statements.
 8




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##### 



Notes to Condensed Consolidated Financial Statements (unaudited)
 NOTE 1  BASIS OF PRESENTATION
   NOTE 2  PLAN OF CONVERSION AND CHANGE IN CORPORATE FORM
    NOTE 3  RECENTLY ISSUED ACCOUNTING STANDARDS
  9




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##### 



Fair Value Measurements
 The Fair Value Option for Financial Assets and
Financial Liabilities
 NOTE 4  Activity in Allowance for Loan Losses
  September 30, 2007
    
    
    September 30, 2006(Unaudited)
    
    
    (Unaudited)(Dollars in Thousands)Balance, beginning of year
    
    $
    2,025
    
    
    $
    3,157Provision charged (credited) to expense
    
    
    (378
    )
    
    
    (257
    )Losses charged off, net of recoveries
of $51 and $248 for nine months ended
September 30, 2007 and 2006,
respectively
    
    
    (178
    )
    
    
    (361
    )Balance, end of period
    
    $
    1,469
    
    
    $
    2,539
 10




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##### 



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operation
 This section should be read in conjunction with the condensed consolidated financial
statements and notes thereto included in Item 1 of Part 1 of this report and the consolidated
financial statements of the Bank and the notes thereto included in the Companys Registration
Statement (filed on Form S-1 ) for the year ended December 31, 2006, including note 2 which
describes the Banks significant accounting policies including its use of estimates.
 Forward-Looking Statements
   General.
  Application of Critical Accounting Policies.
  Comparison of Financial Condition at September 30, 2007 and December 31, 2006
 Assets.
 Cash and Cash Equivalents.
 11




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##### 



Loans.
 Loan Loss Allowance.
 Investments.
 Deposits.
 Equity.
 Comparison of Operating Results for the Three and Nine Months Ended September 30, 2007 and 2006
 General.
  Net Interest Income.
  12




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##### 



13




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##### 



Average Balance Sheet for theThree Months Ended September 30,2007
    
    
    
    
    
    
    
    
    2006Interest
    
    
    
    
    
    
    
    
    
    
    InterestAverage
    
    
    and
    
    
    Yield/
    
    
    Average
    
    
    and
    
    
    Yield/Balance
    
    
    Dividends
    
    
    Cost
    
    
    Balance
    
    
    Dividends
    
    
    Cost(Dollars in Thousands)Assets:Interest-bearing demand deposits
    
    $
    2,750
    
    
    $
    36
    
    
    
    5.24
    %
    
    $
    12,424
    
    
    $
    145
    
    
    
    4.67
    %Loans
    
    
    106,223
    
    
    
    1,883
    
    
    
    7.09
    %
    
    
    107,370
    
    
    
    1,931
    
    
    
    7.19
    %Investment securities
    
    
    92,628
    
    
    
    1,311
    
    
    
    5.66
    %
    
    
    72,999
    
    
    
    995
    
    
    
    5.45
    %Other interest-earning assets
    
    
    4,878
    
    
    
    47
    
    
    
    3.85
    %
    
    
    4,038
    
    
    
    40
    
    
    
    3.96
    %Total interest-earning assets
    
    
    206,479
    
    
    
    3,277
    
    
    
    6.35
    %
    
    
    196,832
    
    
    
    3,111
    
    
    
    6.32
    %Non-interest-earning assets
    
    
    11,929
    
    
    
    
    
    
    
    
    
    
    
    11,982Total Assets
    
    $
    218,408
    
    
    
    
    
    
    
    
    
    
    $
    208,814Liabilities and equity:Savings accounts
    
    $
    18,751
    
    
    $
    99
    
    
    
    2.11
    %
    
    $
    13,297
    
    
    $
    15
    
    
    
    0.45
    %Checking accounts
    
    
    26,726
    
    
    
    44
    
    
    
    0.65
    %
    
    
    25,877
    
    
    
    41
    
    
    
    0.63
    %Money market deposit accounts
    
    
    31,899
    
    
    
    292
    
    
    
    3.66
    %
    
    
    29,387
    
    
    
    264
    
    
    
    3.59
    %Certificates of deposit
    
    
    93,816
    
    
    
    1,110
    
    
    
    4.73
    %
    
    
    93,646
    
    
    
    963
    
    
    
    4.11
    %Total interest-bearing deposits
    
    
    171,192
    
    
    
    1,544
    
    
    
    3.61
    %
    
    
    162,208
    
    
    
    1,282
    
    
    
    3.16
    %Federal Home Loan Bank advances and
Other Borrowings
    
    
    778
    
    
    
    11
    
    
    
    5.66
    %
    
    
    
    
    
    
    
    
    
    
    0.00
    %Total interest-bearing liabilities
    
    
    171,970
    
    
    
    1,555
    
    
    
    3.62
    %
    
    
    162,208
    
    
    
    1,282
    
    
    
    3.16
    %Non-interest-bearing deposits
    
    
    10,378
    
    
    
    
    
    
    
    
    
    
    
    9,431Other non-interest-bearing liabilities
    
    
    3,770
    
    
    
    
    
    
    
    
    
    
    
    4,727Total liabilities
    
    
    186,118
    
    
    
    
    
    
    
    
    
    
    
    176,366Total equity
    
    
    32,290
    
    
    
    
    
    
    
    
    
    
    
    32,448Total liabilities and equity
    
    $
    218,408
    
    
    
    
    
    
    
    
    
    
    $
    208,814Net interest income
    
    
    
    
    
    $
    1,722
    
    
    
    
    
    
    
    
    
    
    $
    1,829Interest rate spread
    
    
    
    
    
    
    
    
    
    
    2.73
    %
    
    
    
    
    
    
    
    
    
    
    3.16
    %Net interest margin
    
    
    
    
    
    
    
    
    
    
    3.34
    %
    
    
    
    
    
    
    
    
    
    
    3.72
    %Average interest earning assets to
average interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    120.07
    %
    
    
    
    
    
    
    
    
    
    
    121.35
    %Average Loans to Deposits
    
    
    
    
    
    
    
    
    
    
    58.50
    %
    
    
    
    
    
    
    
    
    
    
    62.56
    %
 14




---



##### 



Average Balance Sheet for theNine Months Ended September 30,2007
    
    
    
    
    
    
    
    
    2006Interest
    
    
    
    
    
    
    
    
    
    
    InterestAverage
    
    
    and
    
    
    Yield/
    
    
    Average
    
    
    and
    
    
    Yield/Balance
    
    
    Dividends
    
    
    Cost
    
    
    Balance
    
    
    Dividends
    
    
    Cost(Dollars in Thousands)Assets:Interest-bearing demand deposits
    
    $
    4,896
    
    
    $
    201
    
    
    
    5.47
    %
    
    $
    14,164
    
    
    $
    400
    
    
    
    3.77
    %Loans
    
    
    102,624
    
    
    
    5,585
    
    
    
    7.26
    %
    
    
    113,728
    
    
    
    6,017
    
    
    
    7.05
    %Investment securities
    
    
    91,917
    
    
    
    3,785
    
    
    
    5.49
    %
    
    
    69,505
    
    
    
    2,807
    
    
    
    5.38
    %Other interest-earning assets
    
    
    4,881
    
    
    
    139
    
    
    
    3.80
    %
    
    
    3,808
    
    
    
    118
    
    
    
    4.13
    %Total interest-earning assets
    
    
    204,318
    
    
    
    9,710
    
    
    
    6.34
    %
    
    
    201,205
    
    
    
    9,342
    
    
    
    6.19
    %Non-interest-earning assets
    
    
    11,395
    
    
    
    
    
    
    
    
    
    
    
    10,349Total Assets
    
    $
    215,713
    
    
    
    
    
    
    
    
    
    
    $
    211,553Liabilities and equity:Savings accounts
    
    $
    16,564
    
    
    $
    208
    
    
    
    1.67
    %
    
    $
    14,211
    
    
    $
    51
    
    
    
    0.48
    %Checking accounts
    
    
    27,147
    
    
    
    131
    
    
    
    0.65
    %
    
    
    25,951
    
    
    
    117
    
    
    
    0.60
    %Money market deposit accounts
    
    
    30,729
    
    
    
    827
    
    
    
    3.59
    %
    
    
    28,289
    
    
    
    713
    
    
    
    3.36
    %Certificates of deposit
    
    
    94,812
    
    
    
    3,306
    
    
    
    4.65
    %
    
    
    90,082
    
    
    
    2,488
    
    
    
    3.68
    %Total interest-bearing deposits
    
    
    169,252
    
    
    
    4,472
    
    
    
    3.52
    %
    
    
    158,533
    
    
    
    3,368
    
    
    
    2.83
    %Federal Home Loan Bank advances and
Other Borrowings
    
    
    395
    
    
    
    17
    
    
    
    5.74
    %
    
    
    6,971
    
    
    
    394
    
    
    
    7.54
    %Total interest-bearing liabilities
    
    
    169,647
    
    
    
    4,489
    
    
    
    3.53
    %
    
    
    165,504
    
    
    
    3,762
    
    
    
    3.03
    %Non-interest-bearing deposits
    
    
    10,101
    
    
    
    
    
    
    
    
    
    
    
    9,264Other non-interest-bearing liabilities
    
    
    3,568
    
    
    
    
    
    
    
    
    
    
    
    4,315Total liabilities
    
    
    183,316
    
    
    
    
    
    
    
    
    
    
    
    179,082Total equity
    
    
    32,397
    
    
    
    
    
    
    
    
    
    
    
    32,471Total liabilities and equity
    
    $
    215,713
    
    
    
    
    
    
    
    
    
    
    $
    211,553Net interest income
    
    
    
    
    
    $
    5,221
    
    
    
    
    
    
    
    
    
    
    $
    5,580Interest rate spread
    
    
    
    
    
    
    
    
    
    
    2.81
    %
    
    
    
    
    
    
    
    
    
    
    3.16
    %Net interest margin
    
    
    
    
    
    
    
    
    
    
    3.41
    %
    
    
    
    
    
    
    
    
    
    
    3.70
    %Average interest earning assets to
average interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    120.44
    %
    
    
    
    
    
    
    
    
    
    
    121.57
    %Average Loans to Deposits
    
    
    
    
    
    
    
    
    
    
    57.22
    %
    
    
    
    
    
    
    
    
    
    
    67.78
    %
 15




---



##### 



Rate/Volume Analysis.
 Three Months Ended September 30, 2007Compared toThree Months Ended September 30, 2006(Dollars in Thousands)Increase (Decrease) Due toVolume
    
    
    Rate
    
    
    NetInterest income:Interest-bearing demand deposits
    
    $
    (125
    )
    
    $
    16
    
    
    $
    (109
    )Loans
    
    
    (21
    )
    
    
    (27
    )
    
    
    (48
    )Investment securities
    
    
    277
    
    
    
    39
    
    
    
    316Other interest-earning assets
    
    
    9
    
    
    
    (2
    )
    
    
    7Total interest-earning assets
    
    
    140
    
    
    
    26
    
    
    
    166Interest expense:Deposits
    
    
    74
    
    
    
    188
    
    
    
    262Federal Home Loan Bank advances
    
    
    11
    
    
    
    0
    
    
    
    11Total interest-bearing liabilities
    
    
    85
    
    
    
    188
    
    
    
    273Net increase (decrease) in interest income
    
    $
    55
    
    
    $
    (162
    )
    
    $
    (107
    )
 Nine Months Ended September 30, 2007Compared toNine Months Ended September 30, 2006(Dollars in Thousands)Increase (Decrease) Due toVolume
    
    
    Rate
    
    
    NetInterest income:Interest-bearing demand deposits
    
    $
    (332
    )
    
    $
    133
    
    
    $
    (199
    )Loans
    
    
    (600
    )
    
    
    168
    
    
    
    (432
    )Investment securities
    
    
    922
    
    
    
    56
    
    
    
    978Other interest-earning assets
    
    
    31
    
    
    
    (10
    )
    
    
    21Total interest-earning assets
    
    
    21
    
    
    
    347
    
    
    
    368Interest expense:Deposits
    
    
    240
    
    
    
    864
    
    
    
    1,104Federal Home Loan Bank advances
    
    
    (303
    )
    
    
    (74
    )
    
    
    (377
    )Total interest-bearing liabilities
    
    
    (63
    )
    
    
    790
    
    
    
    727Net increase (decrease) in interest income
    
    $
    84
    
    
    $
    (443
    )
    
    $
    (359
    )
 16




---



##### 



Provision for Loan Losses.
    Non-interest Income.
 Three Months Ended September 30,
    
    
    Nine Months Ended September 30,2007
    
    
    2006
    
    
    % Change
    
    
    2007
    
    
    2006
    
    
    % Change(Dollars in thousands)
    
    
    (Dollars in thousands)Customer service charges
    
    $
    271
    
    
    $
    266
    
    
    
    1.9
    %
    
    $
    825
    
    
    $
    805
    
    
    
    2.5
    %Loan related servicing and other fees
    
    
    31
    
    
    
    41
    
    
    
    -24.4
    %
    
    
    173
    
    
    
    128
    
    
    
    35.2
    %Gain on sale of loans and other real
estate owned
    
    
    215
    
    
    
    203
    
    
    
    5.9
    %
    
    
    677
    
    
    
    523
    
    
    
    29.4
    %Commissions on insurance and brokerage
    
    
    96
    
    
    
    172
    
    
    
    -44.2
    %
    
    
    296
    
    
    
    372
    
    
    
    -20.4
    %Other
    
    
    (1
    )
    
    
    13
    
    
    
    -107.7
    %
    
    
    (304
    )
    
    
    119
    
    
    
    -355.5
    %Total
    
    $
    612
    
    
    $
    695
    
    
    
    -11.9
    %
    
    $
    1,667
    
    
    $
    1,947
    
    
    
    -14.4
    %
   17




---



##### 



Non-interest Expense. .
 Three Months Ended September 30,
    
    
    Nine Months Ended September 30,2007
    
    
    2006
    
    
    % Change
    
    
    2007
    
    
    2006
    
    
    % Change(Dollars in thousands)
    
    
    (Dollars in thousands)Salaries and employee benefits
    
    $
    1,331
    
    
    $
    1,253
    
    
    
    6.2
    %
    
    $
    3,893
    
    
    $
    3,780
    
    
    
    3.0
    %Occupancy and equipment expense
    
    
    221
    
    
    
    246
    
    
    
    -10.2
    %
    
    
    823
    
    
    
    694
    
    
    
    18.6
    %Data processing fees
    
    
    169
    
    
    
    153
    
    
    
    10.5
    %
    
    
    517
    
    
    
    578
    
    
    
    -10.6
    %Professional fees
    
    
    135
    
    
    
    84
    
    
    
    60.7
    %
    
    
    416
    
    
    
    316
    
    
    
    31.6
    %Marketing expenses
    
    
    104
    
    
    
    86
    
    
    
    20.9
    %
    
    
    219
    
    
    
    276
    
    
    
    -20.7
    %Other
    
    
    406
    
    
    
    357
    
    
    
    13.7
    %
    
    
    1,129
    
    
    
    1,181
    
    
    
    -4.4
    %Total
    
    $
    2,366
    
    
    $
    2,179
    
    
    
    8.6
    %
    
    $
    6,997
    
    
    $
    6,825
    
    
    
    2.5
    %
   Income Taxes.
  Liquidity Management.
   18




---



##### 



Capital Management.
 Off-Balance Sheet Arrangements.
  Item 3. Quantitative and Qualitative Disclosures About Market Risk
 Qualitative Aspects of Market Risk
    Quantitative Aspects of Market Risk
   19




---



##### 



Net Portfolio Value
    
    Net Portfolio Value as % ofBasis Point (bp)
    
    (Dollars in thousands)
    
    Portfolio Value of AssetsChange in Rates
    
    $ Amount
    
    $ Change
    
    % Change
    
    NPV Ratio
    
    Change300
    
    
    31,678
    
    
    
    (10,978
    )
    
    
    (26
    )
    
    
    14.57
    
    
    (398)
    bp200
    
    
    35,338
    
    
    
    (7,318
    )
    
    
    (17
    )
    
    
    15.95
    
    
    (261)
    bp100
    
    
    39,251
    
    
    
    (3,405
    )
    
    
    (8
    )
    
    
    17.37
    
    
    (119)
    bp0
    
    
    42,656
    
    
    
    
    
    
    
    
    
    
    
    18.56
    
    
    
    
    (100)
    
    
    44,869
    
    
    
    2,213
    
    
    
    5
    
    
    
    19.29
    
    
    73
    bp(200)
    
    
    46,016
    
    
    
    3,360
    
    
    
    8
    
    
    
    19.64
    
    
    108
    bp
  Item 4. Controls and Procedures
  PART II. OTHER INFORMATION
 Item 1. Legal Proceedings
  20




---



##### 



Item 1A. Risk Factors
  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  Item 3. Defaults Upon Senior Securities
  Item 4. Submission of Matters to a Vote of Security Holders
  Item 5. Other Information.
  Item 6. Exhibits
 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 Officer31.2
    
    Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer32.0
    
    Section 1350 Certification
 
 (1)
    
    Incorporated herein by reference to the exhibits to the Companys Registration
Statement on Form S-1 (File No. 333-144454), as amended, initially filed with the
Securities and Exchange Commission on July 10, 2007. 21




---



##### 



SIGNATURES
  FIRST ADVANTAGE BANCORPDated:
    
    November 21, 2007
    
    
    
    By:
    
    /s/ Earl O. Bradley, III

Earl O. Bradley, IIIChief Executive Officer(principal executive officer)Dated:
    
    November 21, 2007
    
    
    
    By:
    
    /s/ Patrick C. GreenwellPatrick C. GreenwellChief Financial Officer(principal executive officer)
 22