BROOKLYN, N.Y., March 14 /PRNewswire-FirstCall/ -- Flatbush Federal
Bancorp, Inc. (the "Company"), (OTC:FLTB) (BULLETIN BOARD: FLTB) ,
the holding company of Flatbush Federal Savings and Loan
Association (the "Association"), announced consolidated net income
of $58,000, or $0.02 per share, for the quarter ended December 31,
2006 as compared to $79,000, or $0.03 per share, for the same
quarter in 2005. Net income for the year ended December 31, 2006
was $195,000, or $0.07 per share, compared to $368,000 or $0.14 per
share for the year ended December 31, 2005, a decrease of $173,000,
or 47.0 %. The Company's assets at December 31, 2006 were $154.4
million compared to $144.0 million at December 31, 2005, an
increase of $10.4 million, or 7.2 %. Loans receivable increased
$9.6 million, or 9.9%, to $106.2 million at December 31, 2006 from
$96.6 million as of December 31, 2005. Mortgage-backed securities
increased $1.1 million, or 4.3%, to $26.7 million at December 31,
2006 from $25.6 million at December 31, 2005. As a partial offset,
cash and cash equivalents decreased $904,000, or 18.4%, to $4.0
million at December 31, 2006 from $4.9 million at December 31,
2005. In addition, investment securities decreased $819,000 or
10.5%, to $7.0 million at December 31, 2006 from $7.8 million at
December 31, 2005. Total deposits decreased $3.6 million, or 3.3%,
to $105.6 million at December 31, 2006 from $109.2 million at
December 31, 2005. Advances from Federal Home Bank of New York
increased $13.5 million, or 79.4%, to $30.5 million at December 31,
2006 from $17.0 million at December 31, 2005. Advances from the
Federal Home Loan Bank of New York were invested in mortgage-backed
securities and loans receivable consisting of residential,
commercial, construction and mixed-use properties. This resulted in
the increase of $9.6 million in loans receivable and an increase of
$1.1 million in mortgage-backed securities. Repayments in
investment securities resulted in the net decrease of $819,000.
Cash and cash equivalents decreased $904,000. Total stockholders'
equity decreased $1.0 million to $15.0 million at December 31, 2006
from $16.0 million at December 31, 2005. The decrease reflects the
inclusion of $1.2 million of accumulated other comprehensive loss,
which is the result of the implementation of Statement of Financial
Accounting Standards No. 158, Employers' Accounting for Defined
Benefit Pension and Other Postretirement Plans (FAS 158). This new
standard is effective for plan sponsors with, or controlled by an
entity with, publicly traded equity securities. The standard does
not impact the determination of the Plan's expense; however, it
does impact how the Plan is recorded on the employer's balance
sheet. FAS 158 requires that the overfunded or underfunded status
of a pension or postretirement plan be recorded on the employer's
balance sheet as an asset or liability (after any adjustment for
taxes). Any difference between the amount already reflected
(generally the accrued or prepaid expense) and the required amount
is reflected as an adjustment to Accumulated Other Comprehensive
Income. The decrease to stockholders' equity also reflects $190,000
of repurchases of shares under the stock repurchase program, and
$3,000 for the payment of fractional shares under the stock
dividend program, partially offset by increases net income of
$195,000, the market appreciation of $7,000 relating to the release
of ESOP shares, amortization of $34,000 of unearned ESOP shares,
amortization of $92,000 of restricted stock awards for the
Company's Stock-Based Incentive Program, and amortization of
$82,000 of stock option awards. 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 December 31, 2006, 36,340 shares have been acquired
at an average price of $8.12 per share. INCOME INFORMATION - Three
month periods ended December 31, 2006 and 2005 Net income decreased
by $21,000, or 26.6%, to $58,000 for the quarter ended December 31,
2006 from $79,000 for the same quarter in 2005. The decrease in
earnings for the quarter was primarily due to an increase of
$350,000 in interest expense resulting from an increase of 58 basis
points in the average cost of deposits to 2.56% for the quarter
ended December 31, 2006 from 1.98% for the quarter ended December
31, 2005. In addition, the increase in interest expense resulted
from an increase of $15.1 million in the average balance of Federal
Home Loan Bank of New York Advances to $29.6 million at an average
cost of 5.07% for the quarter ended December 31, 2006. For the
quarter ended December 31, 2005, the average balance of Federal
Home Loan Bank of New York Advances was $14.5 million at an average
cost of 4.34%. Net income also decreased as result of an increase
of $5,000 in non-interest expenses, partially offset by an increase
of $248,000 in interest income, an increase of $50,000 in
non-interest income, a $35,000 decrease in income taxes, and a
$1,000 decrease in provision for loan losses. INCOME INFORMATION -
Years ended December 31, 2006 and 2005 Net income decreased by
$173,000, or 47.0%, to $195,000 for the year ended December 31,
2006 from $368,000 for the year ended December 31, 2005. The
decrease was primarily due to an increase of $1.4 million in
interest expense resulting from an increase of 48 basis points in
the average cost of deposits to 2.30% for the year ended December
31, 2006 from 1.82% for the year ended December 31, 2005. In
addition, the increase in interest expense resulted from an
increase of $19.6 million in the average balance of Federal Home
Loan Bank of New York Advances to $25.3 million at an average cost
of 4.88% for the year ended December 31, 2006. For the year ended
December 31, 2005, the average balance of Federal Home Loan Bank of
New York Advances was $5.7 million at an average cost of 4.04%. Net
income also decreased as result of an increase of $117,000 in
non-interest expense and an increase of $29,000 in provision for
loan losses, which was partially offset by an increase of $1.1
million in interest income, an increase of $140,000 in non-interest
income, and a decrease of $170,000 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 DECEMBER 31, DECEMBER 31, 2006
2005 (in thousands) Total Assets $154,382 $143,953 Loans Receivable
106,230 96,591 Investment Securities 6,990 7,809 Mortgage-backed
Securities 26,727 25,633 Cash and Cash Equivalents 4,007 4,911
Deposits 105,641 109,218 Borrowings 30,487 16,969 Stockholders'
Equity 15,046 16,033 SELECTED OPERATING DATA AT OR FOR THE THREE AT
OR FOR THE MONTHS ENDED DECEMBER 31, YEARS ENDED DECEMBER 31, 2006
2005 2006 2005 (in thousands) Total Interest Income $2,282 $2,034
$8,773 $7,708 Total Interest Expense 1,029 679 3,620 2,219 Net
Interest Income 1,253 1,355 5,153 5,489 Provision for Loan Loss 0 1
49 20 Non-interest Income 105 55 351 212 Non-interest Expense 1,271
1,266 5,150 5,033 Income Taxes 29 64 110 280 Net Income $58 $79
$195 $368 PERFORMANCE RATIOS Return on Average Assets 0.15% 0.22%
0.12% 0.26% Return on Average Equity 1.46% 1.96% 1.21% 2.31%
Interest Rate Spread 3.24% 3.79% 3.41% 3.91% 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 0.05% 0.14% 0.05%
0.14% CAPITAL RATIO Equity to Total Assets 10.01% 10.57%
DATASOURCE: Flatbush Federal Bancorp, Inc. CONTACT: Jesus R. Adia,
President and Chief Executive Officer of Flatbush Federal Bancorp,
Inc., +1-718-677-4414 Web site: http://www.flatbush.com/
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