BROOKLYN, N.Y., July 24 /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 $9,000, or $0.003 per share for the quarter ended June 30, 2008
as compared to net income of $2,000, or $0.001 per share for the
same quarter in 2007. The Company's assets decreased $5.9 million,
or 4.0%, to $142.9 million at June 30, 2008 from $148.8 million at
December 31, 2007. Cash and cash equivalents increased $4.5
million, or 90.0%, to $9.5 million at June 30, 2008 from $5.0
million at December 31, 2007. Loans receivable decreased $4.7
million, or 4.6%, to $96.8 million as of June 30, 2008 from $101.5
million as of December 31, 2007. Mortgage-backed securities
decreased $684,000, or 2.7%, to $24.7 million as of June 30, 2008
from $25.4 million as of December 31, 2007. Investment securities
decreased $4.5 million, or 69.2%, to $2.0 million as of June 30,
2008 from $6.5 million as of December 31, 2007. Total deposits
decreased $1.2 million, or 1.2%, to $101.5 million at June 30, 2008
from $102.7 million at December 31, 2007. Borrowings from the
Federal Home Loan Bank of New York ("FHLB") decreased $4.9 million,
or 17.3%, to $23.4 million at June 30, 2008 from $28.3 million at
December 31, 2007. Total stockholders' equity decreased $12,000 to
$15.6 million as of June 30, 2008 from $15.6 million as of December
31, 2007. On August 30, 2007, 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 have been made from time to time and may be effected
through open market purchases, block trades and in privately
negotiated transactions. Repurchased stock is held as treasury
stock and will be available for general corporate purposes. During
the quarter ended June 30, 2008, the Company did not repurchase any
shares. As of the quarter ended June 30, 2008, 5,060 shares have
been repurchased as part of the Company's current repurchase
program at a weighted average price of $5.67. INCOME INFORMATION -
Three month periods ended June 30, 2008 and 2007 Net income
increased $7,000, to $9,000 for the quarter ended June 30, 2008
from $2,000 for the quarter ended June 30, 2007. The increase in
net income for the quarter was primarily due to decreases of
$95,000 in interest expense on deposits, $103,000 in interest
expense on borrowings from The FHLB of New York and $111,000 in
non-interest expense, and an increase of $2,000 on non-interest
income, which were partially offset by a decrease of $304,000 in
interest income. INCOME INFORMATION - Six month periods ended June
30, 2008 and 2007 Net income decreased $374,000, to $11,000 for the
six months ended June 30, 2008 from $385,000 for the six months
ended June 30, 2007. The decrease in net income for the six month
period ended June 30, 2008 was primarily due to decreases of
$535,000 in interest income and $503,000 in non-interest income,
and an increase of $58,000 in income taxes, which, were partially
offset by decreases of $68,000 in interest expense on deposits,
$184,000 in interest expense on borrowings from The FHLB of New
York, $468,000 in non-interest expense and $2,000 in provision for
loan losses. For the six month period ended June 30, 2007,
non-interest income included proceeds of $500,000 from a life
insurance policy the Association owned on the life of the Company's
former CEO and President, Anthony J. Monteverdi. During the same
period in 2007, non-interest expense included the one time accrual
of $221,000 for the accelerated vesting of stock options and
restricted stock following the death of Mr. Monteverdi. Additional
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 conditions, changes in interest rates, deposit
flows, demand for mortgages 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 June 30, December 31, 2008 2007
----------- ----------- (dollars in thousands) Total Assets
$142,946 $148,839 Loans Receivable 96,763 101,483 Investment
Securities 2,000 6,492 Mortgage-backed Securities 24,667 25,351
Cash and Cash Equivalents 9,541 4,968 Deposits 101,506 102,672
Borrowings 23,433 28,252 Stockholders' Equity 15,550 15,562
CONDENSED OPERATING DATA AT OR FOR THE THREE AT OR FOR THE SIX
MONTHS ENDED MONTHS ENDED JUNE 30, JUNE 30, 2008 2007 2008 2007
-------------------- -------------------- (dollars in
thousands)(dollars in thousands) Total Interest Income $1,981
$2,285 $4,044 $4,579 Total Interest Expense on Deposits 645 739
1,359 1,427 Total Interest Expense on Borrowings 278 382 588 771
Net Interest Income 1,058 1,164 2,098 2,381 Provision for Loan
Losses - - - 2 Non-interest Income 78 76 145 648 Non-interest
Expense 1,125 1,237 2,227 2,695 Income Taxes (Benefit) 2 1 4 (53)
Net Income $9 $2 $11 $385 PERFORMANCE RATIOS Return on Average
Assets 0.03% 0.01% 0.02% 0.49% Return on Average Equity 0.23% 0.05%
0.14% 4.97% Interest Rate Spread 2.81% 2.95% 3.30% 3.02% ASSET
QUALITY RATIOS Allowance for Loan Losses to Total Loans Receivable
0.20% 0.20% 0.20% 0.20% Non-performing Loans to Total Assets 0.35%
0.04% 0.35% 0.04% CAPITAL RATIO Association's Core Tier 1 Capital
to Adjusted Total Assets 11.17% 10.53% 11.17% 10.53% DATASOURCE:
Flatbush Federal Bancorp, Inc. CONTACT: Jesus R. Adia, President
and Chief Executive Officer, Flatbush Federal Bancorp, Inc.,
+1-718-677-4414 Web site: http://www.flatbush.com/
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