Service Bancorp Inc., the Medway, Mass.-based bank holding company of Strata Bank, has reported that it expects to record a noncash charge in the third quarter for other-than-temporary impairment of its Fannie Mae and Freddie Mac preferred securities. The company said it owns shares of two series of preferred stock issued by Fannie and Freddie that had a cost of $7.2 million as of June 30 and a fair market value of $681,000 as of Sept. 11. Service Bancorp also said it does not expect to realize any material tax benefit in connection with the impairment of the Fannie and Freddie preferred stock. The savings bank can be found on the Web at http://www.stratabank.com.
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