Britton and Koontz Capital Corporation announced this week that the company has revised its application of Statement of Financial Accounting Standards No. 159 to its financial statements for the first quarter of 2007.

On April 24, the company announced net income and earnings per share for the first quarter of $835,000, or 39 cents per share, compared to $925,000, or 44 cents per share, for the same quarter in 2006.

The announcement was based on the company’s early adoption of SFAS 157 and 159 effective Jan. 1 and the company’s initial determination to apply the fair value measurement option of the two SFAS to approximately $55 million of its available-for-sale securities.

As a result of this decision by the company, the company reported a net income of $427, 000 for the three months that ended March 31 rather than $835,000, as announced on April 24, compared to $925,000 for the first three months of 2006.

The decrease in earnings was primarily related to the sale of approximately $35 million of the company’s AFS securities on April 12.

Due to changes in interest rates since original purchase, these securities had an unrealized loss, net of tax, of approximately $350,000 after-tax unrealized loss carried on the balance sheet was transferred from equity and flowed through current earnings on line item “loss on sale of securities” as an other than temporary impairment as of March 31.