Flatbush Federal Bancorp, Inc. Reports 2004 First Quarter Operating Results BROOKLYN, N.Y., April 28 /PRNewswire-FirstCall/ -- Flatbush Federal Bancorp, Inc., (BULLETIN BOARD: FLTB) , the holding company of Flatbush Federal Savings and Loan Association ("the Association"), announced consolidated net income of $34,000 or $0.03 per share for the quarter ended March 31, 2004 as compared to $18,000 for the same quarter in 2003. The Company issued common stock on October 17, 2003, and therefore earnings per share for three months ended March 31, 2003 was not reported. The Company's assets as of March 31, 2004 were $140.6 million compared to $142.9 million at December 31, 2003, a decrease of $2.3 million or 1.61%. Net loans receivable decreased 0.22% to $90.4 million at March 31, 2004 from $90.6 million at December 31, 2003. Mortgage-backed securities decreased 3.68% to $5.3 million at March 31, 2004 from $5.5 million at December 31, 2003. The Association continued to experience high volumes of prepayments from long-term investments and loans which contributed to the increase of $1.0 million in cash and cash equivalents from $29.3 million at December 31, 2003 to $30.3 million at March 31, 2004. During the period of historically low interest rates, management maintained a high level of its assets in liquid investments rather than in long-term investments and loans. Net decrease in assets was predominantly offset by a decrease in total deposits. Total deposits decreased $2.6 million to $123.4 million at March 31, 2004 from $126.0 million as of December 31, 2003. Deposit outflow may be attributed to competitive rates. The allowance for loan losses remained unchanged at $180,000 for March 31, 2004 and December 31, 2003. Total stockholders' equity increased $47,000 to $15.7 million at March 31, 2004. The increase reflects the addition of net income of $34,000, the market appreciation of ESOP shares of $4,000 and a reduction of $9,000 in unearned ESOP shares. INCOME INFORMATION - Three-month periods ended March 31, 2004 and 2003 Net income increased by $16,000 to $34,000 for the quarter ended March 31, 2004 from $18,000 for the same quarter in 2003. The increase in earnings for the quarter was primarily due to a decrease of $183,000 in interest expense, offset by decreases of $55,000 in interest income and $9,000 in non-interest income and increases of $91,000 in non-interest expense and $12,000 in income taxes. Other financial information is included in the table that follows. All information is unaudited. This press release may contain certain "forward-looking statements" which may be identified by the use of such words as "believe", "expect", "intend", "anticipate", "should", "planned", "estimated", and "potential". Examples of forward-looking statements include, but are not limited to, estimates with respect to our financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates and most other statements that are not historical in nature. These factors include, but are not limited to, general and local economic condition, changes in interest rates, deposit flows, demand for mortgage and other loans, real estate values, and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services. FLATBUSH FEDERAL BANCORP, INC. SELECTED FINANCIAL CONDITION DATA (in thousands) March 31 December 31 2004 2003 ------------------------------------ ----------- ----------- Total Assets $140,663 $142,937 Loans Receivable 90,371 90,571 Investment Securities 11,445 14,212 Mortgage-backed Securities 5,318 5,521 Cash and Cash Equivalents 30,301 29,260 Deposits 123,383 126,032 Stockholders Equity 15,672 15,625 SELECTED OPERATING DATA AT OR FOR THE THREE MONTHS ENDED MARCH 31 (in thousands) 2004 2003 ------------------------------------ ----------- ----------- Total Interest Income $1,671 $1,726 Total Interest Expense 460 643 Net Interest Income 1,211 1,083 Provision for Loan Loss 0 0 Non-interest Income 69 78 Non-interest Expense 1,217 1,126 Income Taxes 30 17 Net Income $34 $18 PERFORMANCE RATIOS Return on Average Assets 0.10% 0.05% Return on Average Equity 0.87% 0.86% Interest Rate Spread 3.37% 3.03% ASSET QUALITY RATIOS Allowance for Loan Losses to 0.20% 0.20% Total Loans Receivable Non-performing Loans to Total Assets 0.06% 0.37% CAPITAL RATIO Equity to Total Assets 11.10% 5.98% DATASOURCE: Flatbush Federal Bancorp, Inc. CONTACT: Anthony J. Monteverdi, President and Chief Executive Officer of Flatbush Federal Bancorp, Inc., +1-718-677-4414 Web site: http://www.flatbush.com/

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