BROOKLYN, N.Y., Jan. 29 /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 $327,000, or $0.12 per share, for the quarter ended December 31,
2007 as compared to net income of $58,000, or $0.02 per share, for
the same quarter in 2006. Net income for the year ended December
31, 2007 was $89,000, or $0.03 per share, compared to $195,000 or
$0.07 per share for the year ended December 31, 2006, a decrease of
$106,000, or 54.4 %. The Company's assets at December 31, 2007 were
$148.8 million compared to $154.4 million at December 31, 2006, a
decrease of $5.6 million, or 3.6 %. Loans receivable decreased $4.7
million, or 4.4%, to $101.5 million at December 31, 2007 from
$106.2 million at December 31, 2006. Mortgage-backed securities
decreased $1.3 million, or 4.9%, to $25.4 million at December 31,
2007 from $26.7 million at December 31, 2006. Investment securities
decreased $500,000 or 7.1%, to $6.5 million at December 31, 2007
from $7.0 million at December 31, 2006. As a partial offset, cash
and cash equivalents increased $1.0 million, or 25.0%, to $5.0
million at December 31, 2007 from $4.0 million at December 31,
2006. Total deposits decreased $2.9 million, or 2.7%, to $102.7
million at December 31, 2007 from $105.6 million at December 31,
2006. Advances from Federal Home Bank of New York decreased $2.2
million, or 7.2%, to $28.3 million at December 31, 2007 from $30.5
million at December 31, 2006. Total stockholders' equity increased
$516,000 to $15.6 million at December 31, 2007 from $15.0 million
at December 31, 2006. The increase to stockholders' equity reflects
net income of $89,000, amortization of $34,000 of unearned ESOP
shares, amortization of $177,000 of restricted stock awards for the
Company's Stock-Based Incentive Program, amortization of $195,000
of stock option awards and a decrease of $145,000 of accumulated
other comprehensive loss. This was partially offset by $124,000 of
repurchases of shares under the stock repurchase program. 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. On August 30, 2007, the Company
approved a second stock repurchase program and authorized the
repurchase of up to an additional 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, 2007, the Company repurchased a total of 3,800 shares. As of
December 31, 2007, a total of 55,060 shares have been repurchased
at a weighted average price of $7.60. INCOME INFORMATION -- Three
month periods ended December 31, 2007 and 2006 Net income decreased
by $385,000, resulting in a loss of $327,000 for the quarter ended
December 31, 2007 compared to net income of $58,000 for the same
quarter in 2006. Non-interest expense increased $352,000 to $1.6
million for the three months ended December 31, 2007 from $1.3
million for the three months ended December 31, 2006. There was a
net increase in salaries and employee benefits of $347,000 to $1.0
million for the three months ended December 31, 2007 from $691,000
for the three months ended December 31, 2006. 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 an increase of $103,000
in professional fees primarily to comply with Sarbanes-Oxley Act,
Section 404, which were partially offset by decreases totaling
$98,000 that were attributed to occupancy expense, equipment
expense, other insurance expense, directors compensation,
advertising and miscellaneous expense. Net income also decreased as
a result of an increase of $71,000 in interest expense on deposits
and decreases of $123,000 in total interest income and $33,000 in
non-interest income. This was partially offset by a decrease of
$30,000 in interest expense on borrowings from Federal Home Loan
Bank of New York, and decreases of $164,000 in income taxes and
$1,000 in provision for loan losses. INCOME INFORMATION -- Years
ended December 31, 2007 and 2006 Net income decreased by $106,000,
or 54.4%, to $89,000 for the year ended December 31, 2007 from
$195,000 for the year ended December 31, 2006. The decrease was
primarily due to an increase of $740,000 in interest expense
resulting from a 55 basis point increase in the average cost of
deposits to 2.85% on an average balance of $101.1 million for the
year ended December 31, 2007 from 2.30% on an average balance of
$103.6 million for the year ended December 31, 2006. In addition,
the increase in interest expense resulted from an increase of $4.2
million in the average balance of borrowings from the Federal Home
Loan Bank of New York to $29.5 million at an average cost of 5.03%
for the year ended December 31, 2007 compared to an average balance
of $25.3 million at an average cost of 4.88% for year ended
December 31, 2006. Net income also decreased as a result of an
increase of $358,000 in total non- interest expense. This amount
included an increase of $139,000 in salary and employee benefits to
$3.0 million during the year ended December 31, 2007 from $2.9
million for the year ended December 31, 2006. 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 increased $74,000 during the year ended
December 31, 2007 after 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. Non-interest expense also included an increase of
$185,000 in professional fees incurred primarily to comply with the
Sarbanes-Oxley Act, Section 404, an increase of $26,000 to
miscellaneous expense, partially offset by decreases totaling
$66,000 attributed to equipment expense, occupancy expense, other
insurance expense, federal insurance premium and advertising. The
increase to total non-interest expense was partially offset by
increases of $217,000 in interest income, $446,000 in non-interest
income, and decreases of $47,000 in provision for loan loss, and
$282,000 in income taxes. 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, 2007 2006 ------------- ------------- (in
thousands) Total Assets $148,839 $154,382 Loans Receivable 101,483
106,230 Investment Securities 6,491 6,990 Mortgage-backed
Securities 25,351 26,727 Cash and Cash Equivalents 4,968 4,007
Deposits 102,672 105,641 Borrowings 28,252 30,487 Stockholders'
Equity 15,562 15,046 SELECTED OPERATING DATA AT OR FOR THE THREE AT
OR FOR THE MONTHS ENDED DECEMBER 31, YEARS ENDED DECEMBER 31, 2007
2006 2007 2006 -------- -------- -------- -------- (in thousands)
Total Interest Income $2,159 $2,282 $8,990 $8,773 Total Interest
Expense 1,070 1,029 4,360 3,620 Net Interest Income 1,089 1,253
4,630 5,153 Provision for Loan Loss 0 0 2 49 Non-interest Income 72
105 798 351 Non-interest Expense 1,623 1,271 5,509 5,150 Income
Taxes (Benefit) Expense (135) 29 (172) 110 Net (loss) Income $(327)
$58 $89 $195 PERFORMANCE RATIOS Return on Average Assets (0.22)%
0.04 % 0.06 % 0.12 % Return on Average Equity (2.10)% 0.37 % 0.57 %
1.21 % Interest Rate Spread 2.86 % 3.24 % 2.97 % 3.41 % ASSET
QUALITY RATIOS Allowance for Loan Losses to Total Loans Receivable
0.20 % 0.19 % 0.20 % 0.19 % Non-performing Loans to Total Assets
0.04 % 0.05 % 0.04 % 0.05 % CAPITAL RATIO Association's Core Tier 1
Capital to Adjusted total Assets 10.74 % 10.01 % DATASOURCE:
Flatbush Federal Bancorp, Inc. CONTACT: Jesus R. Adia, President
and Chief Executive Officer, +1-718-677-4414 Web site:
http://www.flatbush.com/
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