Flatbush Federal Bancorp, Inc. Reports Earnings for Quarter and
Year Ended December 31, 2004 BROOKLYN, N.Y., March 3
/PRNewswire-FirstCall/ -- Flatbush Federal Bancorp, Inc. (OTC:FLTB)
(BULLETIN BOARD: FLTB) , the holding company of Flatbush Federal
Savings and Loan Association ("the Association"), announced
consolidated net income of $98,000, or $0.04 per share, for the
quarter ended December 31, 2004 as compared to $42,000, or $0.02
per share, for the same quarter in 2003. Net income for the year
ended December 31, 2004 was $278,000, or $0.12 per share, compared
to $81,000 for the year ended December 31, 2003. The Company issued
common stock on October 17, 2003, and therefore earnings per share
for the year ended December 31, 2003 were not reported. The
Company's assets as of December 31, 2004 were $134.2 million
compared to $142.9 million at December 31, 2003, a decrease of $8.7
million, or 6.1%. Cash and cash equivalents decreased $23.1
million, or 78.8%, to $6.2 million at December 31, 2004 from $29.3
million at December 31, 2003. Investment securities decreased $5.0
million, or 35.2%, to $9.2 million at December 31, 2004 from $14.2
million at December 31, 2003. As a partial offset, mortgage- backed
securities increased $16.8 million, or 305.4%, to $22.3 million at
December 31, 2004 from $5.5 million as of December 31, 2003. In
addition, loans receivable increased $2.3 million, or 2.5%, to
$92.9 million at December 31, 2004 from $90.6 million as of
December 31, 2003. Management continued to reinvest assets from
short-term liquid investments to longer-term higher yielding
investments and loans. Total deposits decreased $9.1 million, or
7.2%, to $116.9 million at December 31, 2004 from $126.0 million as
of December 31, 2003. Total stockholders' equity increased $185,000
to $15.8 million at December 31, 2004 from $15.6 million at
December 31, 2003. The Company adopted a Stock-Based Incentive Plan
("the Plan") on November 19, 2004 following the approval of the
stockholders. The Plan authorized 46,056 shares of restricted stock
to be distributed to Directors and Officers as an incentive to
share in the growth and performance of the Company. The Company
implemented a stock buyback program to acquire such shares. The
Company will continue the buyback program until the completion of
the Plan requirements. As of December 31, 2004, 32,000 shares have
been acquired. INCOME INFORMATION -- Three month periods ended
December 31, 2004 and 2003 Net income increased by $56,000, or
133.3%, to $98,000 for the quarter ended December 31, 2004 from
$42,000 for the same quarter in 2003. The increase in earnings for
the quarter was primarily due to an increase of $100,000 in
interest income and a decrease of $66,000 in interest expense,
partially offset by an increase of $64,000 in non-interest expense,
an increase of $42,000 in income taxes, and a $4,000 decrease in
non-interest income. The increase in interest income was due to a
shift in the interest earning assets from short-term lower yielding
investments to longer-term, higher yielding mortgage-backed
securities and loans. The average yield on interest earning assets
increased 60 basis points to 5.57% for the quarter ended December
31, 2004 from 4.97% for the quarter ended December 31, 2003. The
decrease in interest expense was due to the lower average balance
of interest-bearing deposits for the quarter ended December 31,
2004. The average balance of interest-bearing deposits decreased by
$9.6 million to $112.2 million for the quarter ended December 31,
2004 from $121.8 million for the same quarter in 2003. In addition,
the average cost of funds decreased 10 basis points to 1.60% for
the quarter ended December 31, 2004 from 1.70% for the quarter
ended December 31, 2003. The Association experienced diminished
activity in fee-generating transactions, resulting in a decrease in
non-interest income for the quarter ended December 31, 2004.
Non-interest expense increased by $64,000 to $1.3 million for the
quarter ended December 31, 2004 from $1.2 million for the same
period in 2003. INCOME INFORMATION -- Years ended December 31, 2004
and 2003 Net income increased by $197,000, or 243.2%, to $278,000
for the year ended December 31, 2004 from $81,000 for the year
ended December 31, 2003. The increase was primarily due to an
increase of $289,000 in interest income and a decrease of $455,000
in interest expense, which was partially offset by a decrease of
$37,000 in non-interest income and increases of $390,000 in
non-interest expense and $127,000 in income taxes. The increase in
interest income was attributed to the shift in interest-earning
assets from short-term lower yielding investments to long-term
higher yielding mortgage-backed securities and loans. The average
yield on interest-earning assets increased 57 basis points to 5.25%
for the year ended December 31, 2004 from 4.68% for the year ended
December 31, 2003. The decrease in interest expense was due to the
lower average balance of interest-bearing deposits for the year
ended December 31, 2004. The average balance of interest-bearing
deposits decreased by $8.5 million to $115.9 million for the year
ended December 31, 2004 from $124.4 million for the year ended
December 31, 2003. In addition, the average cost of funds decreased
26 basis points to 1.57% for the year ended December 31, 2004 from
1.83% for the same period in 2003. The Association experienced
diminished activity in fee-generating transactions, resulting in a
decrease in non-interest income during the comparative periods.
Non-interest expense increased by $390,000 to $5.0 million for the
year ended December 31, 2004 from $4.6 million for the year ended
December 31, 2003. 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. SELECTED FINANCIAL CONDITION DATA
(in thousands) DECEMBER 31 DECEMBER 31 2004 2003 Total Assets
$134,248 $142,937 Loans Receivable 92,925 90,571 Investment
Securities 9,187 14,212 Mortgage-backed Securities 22,300 5,521
Cash and Cash Equivalents 6,215 29,260 Deposits 116,857 126,032
Stockholders' Equity 15,810 15,625 SELECTED OPERATING DATA AT OR
FOR THE THREE AT OR FOR THE MONTHS ENDED DECEMBER 31 YEARS ENDED
DECEMBER 31 (in thousands) 2004 2003 2004 2003 Total Interest
Income $1,820 $1,720 $7,012 $6,723 Total Interest Expense 451 517
1,816 2,271 Net Interest Income 1,369 1,203 5,196 4,452 Provision
for Loan Loss 0 0 1 8 Non-interest Income 53 57 247 284
Non-interest Expense 1,255 1,191 4,960 4,570 Income Taxes 69 27 204
77 Net Income $98 $42 $278 $81 PERFORMANCE RATIOS Return on Average
Assets 0.29% 0.12% 0.20% 0.05% Return on Average Equity 2.46% 1.08%
1.76% 0.78% Interest Rate Spread 3.97% 3.26% 3.68% 2.85% ASSET
QUALITY RATIOS Allowance for Loan Losses to Total Loans Receivable
0.19% 0.20% 0.19% 0.20% Non-performing Loans to Total Assets 0.09%
0.03% 0.09% 0.03% CAPITAL RATIO Equity to Total Assets 11.02%
10.23% 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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