BROOKLYN, N.Y., Feb. 9 /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 a consolidated net
income of $60,000, or $0.02 per share, for the quarter ended
December 31, 2008 as compared to a net loss of $327,000, or $0.12
per share, for the same quarter in 2007. Net income for the year
ended December 31, 2008 was $149,000, or $0.06 per share, compared
to $89,000 or $0.03 per share for the year ended December 31, 2007,
an increase of $60,000, or 67.4%. The Company's assets at December
31, 2008 were $149.7 million compared to $148.8 million at December
31, 2007, an increase of $900,000 or 0.6%. Mortgage-backed
securities increased $7.5 million, or 29.5%, to $32.9 million at
December 31, 2008 from $25.4 million at December 31, 2007. Cash and
cash equivalents increased $2.7 million, or 54.0%, to $7.7 million
at December 31, 2008 from $5.0 million at December 31, 2007. As a
partial offset, Loans receivable decreased $3.3 million, or 3.3%,
to $98.2 million at December 31, 2008 from $101.5 million at
December 31, 2007. Investment securities totaling $6.5 million at
December 31, 2007 were called during the year ended December 31,
2008. Total deposits decreased $1.0 million, or 1.0%, to $101.7
million at December 31, 2008 from $102.7 million at December 31,
2007. Borrowings from the Federal Home Bank of New York (FHLB)
increased $341,000, or 1.2%, to $28.6 million at December 31, 2008
from $28.3 million at December 31, 2007. Total stockholders' equity
decreased $1.0 million to $14.6 million at December 31, 2008 from
$15.6 million at December 31, 2007. The decrease to stockholders'
equity reflects an increase of $1.0 million of accumulated other
comprehensive loss, $24,000 of repurchases of shares under the
stock repurchase program and a cumulative-effect adjustment to
retained earnings totaling $111,000 related to accounting for
certain endorsement split dollar life insurance arrangements. This
was partially offset by net income of $149,000, amortization of
$26,000 of unearned ESOP shares, amortization of $41,000 of
restricted stock awards for the Company's Stock-Based Incentive
Program, and amortization of $42,000 of stock option awards. 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 December 31, 2008, the Company repurchased a total of 6,690
shares. As of December 31, 2008, a total of 11,750 shares have been
repurchased at a weighted average price of $4.51. INCOME
INFORMATION - Three month periods ended December 31, 2008 and 2007
Net income increased by $387,000, resulting in income of $60,000
for the quarter ended December 31, 2008 compared to a net loss of
$327,000 for the same quarter in 2007. The increase in net income
for the quarter was primarily the result of decreases of $503,000
in non-interest expense, $173,000 in interest expense on deposits,
and $67,000 in interest expense on borrowings from the Federal Home
Loan Bank of New York which were partially offset by decreases of
$193,000 in interest income, $3,000 in non-interest income and an
increase of $160,000 in income taxes. Non-interest expense included
a decrease in salaries and employee benefits of $453,000 to
$585,000 for the three months ended December 31, 2008 from $1.0
million for the three months ended December 31, 2007. In October
2007, the Company implemented a voluntary separation program that
resulted in a one-time expense of $437,000 to salaries and employee
benefits. In addition, non-interest expense included a decrease of
$69,000 in professional fees to $73,000 for the three months ended
December 31, 2008 from $142,000 for the three months ended December
31, 2007 primarily to comply with Sarbanes-Oxley Act, Section 404.
INCOME INFORMATION - Years ended December 31, 2008 and 2007 Net
income increased by $60,000, or 67.4%, to $149,000 for the year
ended December 31, 2008 from $89,000 for the year ended December
31, 2007. The increase was primarily due to decreases of $1.1
million in non-interest expense, $391,000 in interest expense on
deposits, $351,000 in interest expense on borrowings from the
Federal Home Loan Bank of New York, and $ 2,000 in provision for
loan loss. The decrease in non-interest expense included a decrease
of $704,000 in salary and employee benefits to $2.3 million during
the year ended December 31, 2008 from $3.0 million for the year
ended December 31, 2007. For the year ended December 31, 2007, the
Company implemented a voluntary separation program and reduction in
force program that resulted in a one-time expense of $453,000 to
salaries and employee benefits. In addition, directors compensation
decreased $280,000 during the year ended December 31, 2008
primarily due to a $221,000 expense in March, 2007 for the
accelerated vesting of stock options and restricted stock following
the death of the Company's former CEO and President Anthony J.
Monteverdi. This was partially offset by decreases of $1.0 million
in interest income, $471,000 in non-interest income, and an
increase of $239,000 in income taxes. During the year ended
December 31, 2007, non-interest income included proceeds of
$500,000 from a life insurance policy the Association owned on the
life of Anthony J. Monteverdi. 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, 2008 2007 (in thousands) Total Assets
$149,651 $148,839 Loans Receivable 98,241 101,483 Investment
Securities - 6,491 Mortgage-backed Securities 32,926 25,351 Cash
and Cash Equivalents 7,678 4,968 Deposits 101,676 102,672
Borrowings 28,593 28,252 Stockholders' Equity 14,634 15,562
SELECTED OPERATING DATA AT OR FOR THE THREE AT OR FOR THE MONTHS
ENDED DECEMBER 31, YEARS ENDED DECEMBER 31, 2008 2007 2008 2007 (in
thousands) Total Interest Income $1,966 $2,159 $7,954 $8,990 Total
Interest Expense 830 1,070 3,617 4,360 Net Interest Income 1,136
1,089 4,337 4,630 Provision for Loan Loss - - - 2 Non-interest
Income 69 72 327 798 Non-interest Expense 1,120 1,623 4,448 5,509
Income Tax Expense (Benefit) 26 (135) 67 (172) Net Income (loss)
$60 $(327) $149 $89 PERFORMANCE RATIOS Return on Average Assets
0.16% (0.22)% 0.10% 0.06% Return on Average Equity 1.56% (2.10)%
0.96% 0.57% Interest Rate Spread 3.12% 2.86% 2.98% 2.97% 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 0.55%
0.04% 0.55% 0.04% CAPITAL RATIO Association's Core Tier 1 Capital
to Adjusted total Assets 10.86% 10.74% DATASOURCE: Flatbush Federal
Bancorp, Inc. CONTACT: Jesus R. Adia, President and Chief Executive
Officer, +1-718-677-4414
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