BROOKLYN, N.Y., Aug. 10 /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 $86,000, or
$0.04 per share for the quarter ended June 30, 2005 as compared to
$36,000, or $0.02 per share for the same quarter in 2004. The
Company's assets increased $2.1 million, or 1.6%, to $136.4 million
as of June 30, 2005 from $134.2 million at December 31, 2004. Cash
and cash equivalents increased $3.6 million, or 57.5%, to $9.8
million at June 30, 2005 from $6.2 million at December 31, 2004.
Loans receivable increased $828,000, or 0.9%, to $93.8 million as
of June 30, 2005 from $92.9 million as of December 31, 2004.
Mortgage-backed securities decreased $1.6 million, or 7.0%, to
$20.7 million as of June 30, 2005 from $22.3 million as of December
31, 2004. Investment securities decreased $906,000, or 9.9%, to
$8.3 million as of June 30, 2005 from $9.2 million as of December
31, 2004. Total deposits decreased $1.9 million, or 1.7%, to $114.9
million at June 30, 2005 from $116.9 million at December 31, 2004.
Total stockholders' equity increased $53,000 to $15.9 million as of
June 30, 2005 from $15.8 million as of December 31, 2004. In May
2005, the Association borrowed $3.6 million from the Federal Home
Loan Bank of NY and invested the borrowings in loans receivable
consisting of residential, commercial and mixed-use properties.
However, due to prepayments and amortizations in loans receivable,
the Association recorded a net increase of $828,000. Similarly,
prepayments and amortizations in mortgage-backed securities
resulted in a net decrease of $1.6 million. Calls and repayments in
investment securities resulted in the net decrease of $906,000. The
inflow of cash from prepayments and amortizations from loans
receivable, mortgage- backed securities and calls and repayments in
investment securities caused cash and cash equivalents to increase
by $3.6 million. 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 number of
authorized shares was adjusted to 50,662 to reflect the 10% stock
dividend paid on April 25, 2005. As of June 30, 2005, all such
shares have been acquired. On June 30, 2005, the Company approved a
stock repurchase program and authorized the repurchase of up to
50,000 shares of the Company's outstanding shares of common stock.
Stock repurchases will be made from time to time and may be
effected through open market purchases, block trades and in
privately negotiated transactions. Repurchased stock will be held
as treasury stock and will be available for general corporate
purposes. As of June 30, 2005, no such shares were acquired. INCOME
INFORMATION - Three month periods ended June 30, 2005 and 2004 Net
income increased $50,000, or 138.9%, to $86,000 for the quarter
ended June 30, 2005 from $36,000 for the quarter ended June 30,
2004. The increase in earnings for the quarter was primarily due to
an increase of $184,000 in interest income offset in part by a
decrease of $5,000 in non-interest income and increases of $40,000
in interest expense on deposits, $25,000 in interest expense on
FHLB borrowings, $4,000 in provision for loan loss, $31,000 in non-
interest expense and $29,000 in income taxes. INCOME INFORMATION -
Six-month periods ended June 30, 2005 and 2004 Net income increased
$119,000, or 170.0%, to $189,000 for the six months ended June 30,
2005 from $70,000 for the six months ended June 30, 2004. The
increase in earnings was primarily due to an increase of $363,000
in interest income offset in part by a decrease of $15,000 in
non-interest income and increases of $41,000 in interest expense on
deposits, $25,000 in interest expense on FHLB borrowings, $11,000
in provision for loan loss, $72,000 in non-interest expense and
$80,000 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. SELECTED FINANCIAL CONDITION DATA
(in thousands) JUNE 30 DECEMBER 31 2005 2004 Total Assets $136,352
$134,248 Loans Receivable 93,752 92,924 Investment Securities 8,281
9,187 Mortgage-backed Securities 20,749 22,300 Cash and Cash
Equivalents 9,790 6,215 Deposits 114,921 116,857 Other Borrowings
3,600 0 Stockholders Equity 15,863 15,810 SELECTED OPERATING DATA
AT OR FOR THE THREE AT OR FOR THE SIX MONTHS ENDED JUNE 30 MONTHS
ENDED JUNE 30 (in thousands) 2005 2004 2005 2004 Total Interest
Income $1,896 $1,712 $3,746 $3,383 Total Interest Expense on
Deposits 496 456 957 916 Total Interest Expense on Other Borrowings
25 0 25 0 Net Interest Income 1,375 1,256 2,764 2,467 Provision for
Loan Loss 4 0 11 0 Non-interest Income 50 55 105 120 Non-interest
Expense 1,271 1,240 2,524 2,452 Income Taxes 64 35 145 65 Net
Income $86 $36 $189 $70 PERFORMANCE RATIOS Return on Average Assets
0.25 % 0.10 % 0.28 % 0.10 % Return on Average Equity 2.16 % 0.92 %
2.38 % 0.89 % Interest Rate Spread 3.65 % 3.50 % 3.98 % 3.43 %
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 0.17 % 0.07 % 0.17 % 0.07 % CAPITAL RATIO Equity to
Total Assets 11.63 % 11.16 % DATASOURCE: Flatbush Federal Bancorp,
Inc. CONTACT: Anthony J. Monteverdi, President and Chief Executive
Officer, +1-718-677-4414 Web site: http://www.flatbush.com/
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