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FPB Financial Corp.: FPB Financial Corp. Announces Restatement of Its 2008 and March 2009 Financial Statements

  //business-finance.news-articles.net/content/200 .. ts-2008-and-march-2009-financial-statements.html
  Published in Business and Finance on Friday, June 19th 2009 at 8:03 GMT, Last Modified on 2009-06-19 08:04:23 by Market Wire
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HAMMOND, LA--(Marketwire - June 19, 2009) - FPB Financial Corp. (PINKSHEETS: [ FPBF ]) (the "Company") announced today that it restated its operating results for the year ended December 31, 2008 and the quarter ended March 31, 2009. As restated, the Company reported a net loss of $658,000 for 2008, or $(1.86) per fully diluted share, compared to previously reported net income of $475,000, or $1.34 per fully diluted share. For the quarter ended March 31, 2009, the Company reported net income on a restated basis of $171,000 or $0.48 per fully diluted share, compared to previously reported net income for the quarter of $341,000 or $0.96 per fully diluted share.

The restatement of the operating results was due to additional other than temporary impairment charges associated with the Company's investment in the AMF Ultra Short Mortgage Fund, which holds adjustable-rate mortgages. The additional impairment charges amounted to $1.6 million for 2008 and $170,000 for the quarter ended March 31, 2009. The Company's adjusted cost basis in the mortgage fund as of December 31, 2008 and March 31, 2009 are as follows: $4.4 million and $4.3 million.

The additional impairment charges resulted from the Company's re-examination of its previously reported results in light of the three final staff positions issued in April 2009 by the Financial Accounting Standards Board (the "FASB"). The new staff positions provided additional guidance regarding fair value measurements and impairments of securities. FASB Chairman Robert H. Herz stated at the time the staff positions were issued that "our careful consideration of the input resulted in some changes in the final documents from the guidance first proposed. The changes include a number of new disclosures relating to the determinations of fair value and to estimated credit losses and credit exposures."