BROOKLYN, N.Y., May 15 /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 $43,000, or $0.02 per share, for the quarter ended March 31, 2006 as compared to $103,000, or $0.04 per share, for the same quarter in 2005. The Company's assets as of March 31, 2006 were $149.7 million compared to $144.0 million at December 31, 2005, an increase of $5.7 million, or 4.0%. Cash and cash equivalents increased $1.9 million, or 38.8%, to $6.8 million at March 31, 2006 from $4.9 million at December 31, 2005. Investment securities decreased $147,000, or 1.9%, to $7.7 million at March 31, 2006 from $7.8 million at December 31, 2005. As a partial offset, mortgage-backed securities increased $2.4 million, or 9.4%, to $28.0 million at March 31, 2006 from $25.6 million as of December 31, 2005. In addition, loans receivable increased $984,000, or 1.0%, to $97.6 million at March 31, 2006 from $96.6 million as of December 31, 2005. Total deposits increased $409,000, or 0.37%, to $109.6 million at March 31, 2006 from $109.2 million as of December 31, 2005. Borrowings from Federal Home Loan Bank of New York at March 31, 2006 were $21.9 million compared to $17.0 million as of December 31, 2005, an increase of $4.9 million, or 28.8%. Total stockholders' equity increased $83,000 to $16.1 million at March 31, 2006 from $16.0 million at December 31, 2005. INCOME INFORMATION - Three month periods ended March 31, 2006 and 2005 Net income decreased by $60,000, or 58.3%, to $43,000 for the quarter ended March 31, 2006 from $103,000 for the same quarter in 2005. The decrease in earnings for the quarter was primarily due to an increase of $306,000 in interest expense, an increase of $67,000 in non-interest expenses, and a $3,000 increase of provision for loan loss, partially offset by an increase of $222,000 in interest income, a decrease $57,000 in income taxes, and a $37,000 increase in non-interest income. 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 DEC. 31 2006 2005 --------- --------- Total Assets $149,706 $143,953 Loans Receivable 97,575 96,591 Investment Securities 7,662 7,809 Mortgage-backed Securities 27,973 25,633 Cash and Cash Equivalents 6,773 4,911 Deposits 109,627 109,218 Borrowings 21,922 16,969 Stockholders' Equity 16,116 16,033 SELECTED OPERATING DATA AT OR FOR THE THREE MONTHS ENDED MARCH 31 (in thousands) 2006 2005 --------- --------- Total Interest Income $2,072 $1,850 Total Interest Expense 767 461 Net Interest Income 1,305 1,389 Provision for Loan Loss 10 7 Non-interest Income 92 55 Non-interest Expense 1,320 1,253 Income Taxes 24 81 Net Income $43 $103 PERFORMANCE RATIOS Return on Average Assets 0.12% 0.30% Return on Average Equity 1.06% 2.59% Interest Rate Spread 3.58% 4.03% ASSET QUALITY RATIOS Allowance for Loan Losses to Total Loans Receivable 0.20% 0.19% Non-performing Loans to Total Assets 0.11% 0.18% CAPITAL RATIO Equity to Total Assets 10.24% 11.14% DATASOURCE: Flatbush Federal Bancorp, Inc. CONTACT: Jesus R. Adia, President and Chief Executive Officer of Flatbush Federal Bancorp, Inc., +1-718-677-4425 Web site: http://www.flatbush.com/

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