-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T8nS51OBuqvP0/sfGysfGHoHPjApvFKJSUv3TQOXem161517GXMpovthLm/f16tO 4s8wuwQ28QqmYn127R1Frg== 0000950124-06-000257.txt : 20060927 0000950124-06-000257.hdr.sgml : 20060927 20060123164800 ACCESSION NUMBER: 0000950124-06-000257 CONFORMED SUBMISSION TYPE: CORRESP PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20060123 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CITIZENS FIRST BANCORP INC CENTRAL INDEX KEY: 0001127442 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 383573582 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: CORRESP BUSINESS ADDRESS: STREET 1: 525 WATER ST CITY: PORT HURON STATE: MI ZIP: 48060 BUSINESS PHONE: 8109878300 MAIL ADDRESS: STREET 1: 525 WATER ST CITY: PORT HURON STATE: MI ZIP: 48060 CORRESP 1 filename1.htm corresp
 

January 23, 2006
VIA EDGAR AND COURIER
Ms. Amit Pande
Assistant Chief Accountant
Division of Corporation Finance
U.S. Securities and Exchange Commission
450 Fifth Street, N.W.
Mail Stop 4561
Washington, DC 20549
Re:   Citizens First Bancorp, Inc. (the “Company”)
Form 10-K for the Fiscal Year Ended December 31, 2004
File No. 000-32041
Dear Ms. Pande:
     This letter is provided in connection with the review letters from your office dated September 2, 2005, September 22, 2005, December 21, 2005 and telephone conversations with Staff from the United States Securities and Exchange Commission (Staff) on January 19 and 20, 2006 regarding the filings referenced above. Please note that comments in this letter should be reviewed in conjunction with our letters dated September 16, 2005, October 4, 2005 and January 6, 2006.
     Conversations with Staff concentrated on obtaining a prediction of the 12 month Libor Rate (the Rate) and our expectation of the rate when the Freddie Mac equity preferred stock investment (FHLMC Pfd N) reprices on April 1, 2006.
     It is management’s and our investment advisor’s opinion that the best way to look at forward rates for the Rate is to look at the Federal Funds Futures (FFF) rates. Based upon our analysis, the table below lists the FFF rates, in addition to our analysis. We analyzed the historical spread between the 12 month Libor and the FFF rates. The average spread during the time period from July 2005 and current and January 2000 and current is approximately 72 and 42 basis points, respectively. In a rising rate environment, which we believe we are currently experiencing, the Rate typically leads the FFF rates. We used the conservative spread, 42 basis points, as an indicator of what we expect the Rate to be on April 2006, all other things being equal, which yields a forecasted Rate of 5.067%. We note that this is well above 4.50%, the Rate on May 23, 2001.

1 of 3

 

                                                 
Implied 12 Month LIBOR Rates
    Fed     12 mo             Fed Funds     Implied
Date   Funds     LIBOR             Futures     12m LIBOR
4/06
                             4.65       5.067283   0.42      
3/06
                             4.51       4.927283   0.42      
2/06
                             4.49       4.907283   0.42      
1/06
     4.2500       4.8400       0.5900       4.27       4.687283   0.42      
12/05
     4.0000       4.8388       0.8388                          
11/05
     4.0000       4.7900       0.7900                          
10/05
     4.0000       4.7200       0.7200                          
9/05
     4.0000       4.4400       0.4400                          
8/05
     3.7500       4.2400       0.4900                          
7/05
     3.2500       4.1625       0.9125                          
6/05
     3.3750       3.8800       0.5050                          
5/05
     3.1250       3.7800       0.6550                          
4/05
     3.0000       3.6863       0.6863                          
3/05
     3.0000       3.8450       0.8450                          
2/05
     2.5000       3.5300       1.0300                          
1/05
     2.3750       3.2613       0.8863                          
 
                                    
 
           Avg Spd.       0.72                          
 
                                    
    Avg Spd 7/05 - 1/06       0.7249                          
    Avg Spd 1/00 - 1/06       0.417283                          
     Management continues to provide updates to ALCO, the Board of Directors, our auditors, and the Audit Committee via news articles and other pertinent data to support our analysis.
     We would appreciate receiving any additional comments which the Staff may have at your earliest possible convenience. Please direct any further comments to the undersigned or Michael D. Luna at (810) 990-1550.

2 of 3

 

Very truly yours,
CITIZENS FIRST BANCORP, INC.
 
 
Timothy D. Regan
Chief Financial Officer
cc:   Marshall J. Campbell, Citizens First Bancorp, Inc.
Christopher A. Kellerman, Chairman, Audit Committee, Citizens First Bancorp, Inc.

3 of 3

-----END PRIVACY-ENHANCED MESSAGE-----