Flatbush Federal Bancorp, Inc. Reports 2005 First Quarter Operating Results NEW YORK, April 27 /PRNewswire-FirstCall/ -- Flatbush Federal Bancorp, Inc. (OTC:FLTB) (BULLETIN BOARD: FLTB) , the holding company of Flatbush Federal Savings and Loan Association ("the Association"), announced consolidated net income of $103,000, or $0.05 per share for the quarter ended March 31, 2005 as compared to $34,000, or $0.02 per share for the same quarter in 2004. The Company's assets increased $103,000, or 0.08%, to $134.3 million as of March 31, 2005 from $134.2 million at December 31, 2004. Cash and cash equivalents decreased $341,000, or 5.5%, to $5.9 million at March 31, 2005 from $6.2 million at December 31, 2004. Loan receivables increased $2.0 million, or 2.2%, to $94.9 million as of March 31, 2005 from $92.9 million as of December 31, 2004. Investment securities decreased $194,000, or 2.1%, to $9.0 million as of March 31, 2005 from $9.2 million as of December 31, 2004. Mortgage-backed securities decreased $1.4 million, or 6.2%, to $20.9 million as of March 31, 2005 from $22.3 million as of December 31, 2004. The decrease to cash and cash equivalents and the amortization and prepayments in mortgage- backed and investment securities were directly offset by the increase to loans receivable. Total deposits decreased $462,000, or 0.40%, to $116.4 million at March 31, 2005 from $116.9 million at December 31, 2004. Total stockholders' equity increased $115,000 to $15.9 million as of March 31, 2005 from $15.8 million as of December 31, 2004. The Company adopted a Stock-Based Incentive Plan ("the Plan") on November 19, 2004 following the approval of the stockholders. The Plan authorized 46,056 shares of restricted stock to be distributed to Directors and Officers as an incentive to share in the growth and performance of the Company. The Company implemented a stock buyback program to acquire such shares. The Company will continue the buyback program until the completion of the Plan requirements. As of March 31, 2005, 32,000 shares have been acquired. INCOME INFORMATION - Three-month periods ended March 31, 2005 and 2004 Net income increased $69,000, or 202.9%, to $103,000 for the quarter ended March 31, 2005 from $34,000 for the same quarter in 2004. The increase in earnings for the quarter was primarily due to an increase of $179,000 in interest income, offset by a decrease of $14,000 in non-interest income and increases of $7,000 in provision for loan losses, $36,000 in non-interest expense, $1,000 in interest expense and $52,000 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 (in thousands) MARCH 31 DECEMBER 31 2005 2004 Total Assets $134,351 $134,248 Loans Receivable 94,973 92,925 Investment Securities 8,993 9,187 Mortgage-backed Securities 20,915 22,300 Cash and Cash Equivalents 5,874 6,215 Deposits 116,395 116,857 Stockholders' Equity 15,925 15,810 SELECTED OPERATING DATA AT OR FOR THE THREE MONTHS ENDED MARCH 31 (in thousands) 2005 2004 Total Interest Income $1,850 $1,671 Total Interest Expense 461 460 Net Interest Income 1,389 1,211 Provision for Loan Loss 7 0 Non-interest Income 55 69 Non-interest Expense 1,253 1,217 Income Taxes 81 29 Net Income $103 $34 PERFORMANCE RATIOS Return on Average Assets 0.30% 0.10% Return on Average Equity 2.59% 0.87% Interest Rate Spread 4.03% 3.37% ASSET QUALITY RATIOS Allowance for Loan Losses to Total Loans Receivable 0.19% 0.20% Non-performing Loans to Total Assets 0.18% 0.06% CAPITAL RATIO Equity to Total Assets 11.85% 11.14% DATASOURCE: Flatbush Federal Bancorp, Inc. CONTACT: Anthony J. Monteverdi, President and Chief Executive Officer of Flatbush Federal Bancorp, Inc., +1-718-677-4414 Web site: http://www.flatbush.com/

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