BROOKLYN, N.Y., Feb. 12 /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 loss
of $220,000, or $0.08 per share, for the quarter ended December 31,
2009 as compared to consolidated net income of $60,000, or $0.02
per share, for the same quarter in 2008. Net income for the year
ended December 31, 2009 was $195,000, or $0.07 per share, compared
to $149,000 or $0.06 per share for the year ended December 31,
2008, an increase of $46,000, or 30.9%. The Company's assets at
December 31, 2009 were $156.0 million compared to $149.7 million at
December 31, 2008, an increase of $6.3 million or 4.2%. Loans
receivable increased $12.8 million or 13.0%, to $111.0 million at
December 31, 2009 from $98.2 million at December 31, 2008.
Mortgage-backed securities decreased $4.6 million or 14.0%, to
$28.3 million at December 31, 2009 from $32.9 million at December
31, 2008. Cash and cash equivalents decreased $2.2 million, or
28.6%, to $5.5 million at December 31, 2009 from $7.7 million at
December 31, 2008. Total deposits increased $13.5 million, or
13.3%, to $115.2 million at December 31, 2009 from $101.7 million
at December 31, 2008. Borrowings from the Federal Home Loan Bank of
New York (FHLB) decreased $5.7 million, or 19.9%, to $22.9 million
at December 30, 2009 from $28.6 million at December 31, 2008. Total
stockholders' equity increased $599,000, or 4.1%, to $15.2 million
at December 31, 2009 from $14.6 million at December 31, 2008. The
increase to stockholders' equity reflects net income of $195,000,
amortization of $19,000 of unearned ESOP shares, amortization of
$41,000 of restricted stock awards for the Company's Stock-Based
Incentive Program, amortization of $42,000 of stock option awards
and a decrease of $306,000 of accumulated other comprehensive loss.
This was partially offset by $4,000 of repurchased shares under the
stock repurchase program. 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, 2009, the Company
did not repurchase shares. As of December 31, 2009, a total of
12,750 shares have been repurchased at a weighted average price of
$4.44. INCOME INFORMATION -- Three month periods ended December 31,
2009 and 2008 Net income decreased by $280,000 to a loss of
$220,000 for the quarter ended December 31, 2009 compared to a net
income of $60,000 for the same quarter in 2008. The decrease in net
income for the quarter was primarily the result of increases of
$576,000 in provision for loan loss, $2,000 in interest expense on
deposits, $34,000 in non-interest expense, and decreases of $8,000
in non-interest income, partially offset by an increase of $87,000
in interest income and decreases of $132,000 in interest expense on
borrowings from the FHLB and $121,000 in income tax expense. The
increase in provision for loan loss during the quarter was
primarily due to a specific loan loss reserve of $463,000 on a $1.5
million construction loan participation. This loan was classified
as substandard during the quarter ended December 31, 2009. The
remaining $113,000 in the provision provided for an increased
allowance for loan loss considered appropriate to the increase of
non-performing loans. Non-performing loans to total assets
increased by 202 basis points to 2.57% on December 31, 2009, from
0.55% on December 31, 2008, and 83 basis points from 1.74% on
September 30, 2009. Non-interest expense included an increase in
Federal Deposit Insurance Premiums of $28,000 to $43,000 for the
three months ended December 31, 2009 from $15,000 for the three
months ended December 31, 2008 primarily due to higher premiums and
assessments. INCOME INFORMATION -- Years ended December 31, 2009
and 2008 On February 26, 2009, the Company froze its defined
benefit pension plan (the "Plan") effective March 31, 2009. The
freezing of the Plan is consistent with ongoing cost reduction
strategies, including a discontinuation of accrual of future
service cost in the defined benefit pension plan and fully
preserving retirement benefits employees have earned as of March
31, 2009. As a result of freezing the plan, the Company recognized
a pre-tax curtailment credit of $416,000, net of actuarial
expenses, ($230,000 net of taxes) in the year ended December 31,
2009. Net income increased $46,000, or 30.9%, to $195,000 for the
year ended December 31, 2009 from $149,000 for the year ended
December 31, 2008. The increase in net income for the year ended
December 31, 2009 was primarily due to an increase of $296,000 in
interest income and decreases of $127,000 in interest expense on
deposits, $235,000 in interest expense on borrowings from the FHLB
of New York and $168,000 in non-interest expense, which were
partially offset by increases of $649,000 in provision for loan
losses and $65,000 in income taxes and decreases of $66,000 in
non-interest income. Non-interest expense included a decrease in
salaries and employee benefits of $384,000 to $1.9 million for the
year ended December 31, 2009 from $2.3 million for the year ended
December 31, 2008 primarily due to the pre-tax curtailment credit
of $416,000, net of actuarial expenses, resulting from the freezing
of the Plan. In addition, non-interest expense included an increase
in Federal Deposit Insurance of $202,000 to $228,000 for the year
ended December 31, 2009 from $26,000 for the year ended December
31, 2008 primarily due to an increase in premiums and assessments.
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 conditions, 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.
DECEMBER 31, DECEMBER 31, 2009 2008 ------------ ------------ (in
thousands) Total Assets $155,979 $149,651 Loans Receivable 110,988
98,241 Mortgage-backed Securities 28,340 32,926 Deposits 115,168
101,676 Borrowings 22,851 28,593 Stockholders' Equity 15,233 14,634
AT OR FOR THE THREE AT OR FOR THE YEAR MONTHS ENDED DECEMBER 31,
ENDED DECEMBER 31, 2009 2008 2009 2008 ------ ------ ------ ------
(in thousands) Total Interest Income $2,053 $1,966 $8,250 $7,954
Total Interest Expense 700 830 3,255 3,617 Net Interest Income
1,353 1,136 4,995 4,337 Provision For Loan Loss 576 - 649 -
Non-interest Income 61 69 261 327 Non-interest Expense 1,154 1,120
4,280 4,448 Income Tax (Benefit) expense (95) 26 132 67 Net (Loss)
income $(220) $60 $195 $149 PERFORMANCE RATIOS Return on Average
Assets (0.56%) 0.16% 0.13% 0.10% Return on Average Equity (5.75%)
1.56% 1.29% 0.96% Interest Rate Spread 3.56% 3.12% 3.26% 2.98%
ASSET QUALITY RATIOS Allowance for Loan Losses to Total Loans
Receivable 0.75% 0.19% 0.75% 0.19% Non-performing Loans to Total
Assets 2.57% 0.55% 2.57% 0.55% CAPITAL RATIO Association's Core
Tier 1 Capital to Adjusted Total Assets 10.42% 10.86% DATASOURCE:
Flatbush Federal Bancorp, Inc. CONTACT: Jesus R. Adia, President
and Chief Executive Officer, +1-718-677-4414
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