BROOKLYN, N.Y., Aug. 12 /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 loss of $4,000 for the
quarter ended June 30, 2006 as compared to $86,000, or $0.036 per
share for the same quarter in 2005. The Company's assets increased
$7.9 million, or 5.5%, to $151.9 million as of June 30, 2006 from
$144.0 million at December 31, 2005. Cash and cash equivalents
decreased $1.6 million, or 32.7%, to $3.3 million at June 30, 2006
from $4.9 million at December 31, 2005. Loans receivable increased
$6.0 million, or 6.2% to $102.6 million as of June 30, 2006 from
$96.6 million as of December 31, 2005. Mortgage-backed securities
increased $3.2 million, or 12.5%, to $28.8 million as of June 30,
2006 from $25.6 million as of December 31, 2005. Investment
securities decreased $819,000, or 10.5%, to $7.0 million as of June
30, 2006 from $7.8 million as of December 31, 2005. Total deposits
decreased $834,000, or 0.8%, to $108.4 million at June 30, 2006
from $109.2 million at December 31, 2005. Advances from Federal
Home Bank of NY increased $8.6 million, or 50.6%, to $25.6 million
at June 30, 2006 from $17.0 million at December 31, 2005. Total
stockholders' equity increased $65,000 to $16.1 million as of June
30, 2006 from $16.0 million as of December 31, 2005. Advances from
the Federal Home Loan Bank of NY were invested in mortgage-backed
securities and loans receivable consisting of residential,
commercial, construction and mixed-use properties. Net of
prepayments and amortizations, the Association recorded an increase
of $6.0 million in loans receivable. Similarly, the Association
recorded a net increase of $3.2 million in mortgage-backed
securities. Repayments in investment securities resulted in the net
decrease of $819,000. Cash and cash equivalents decreased $1.6
million due to funding of investment and loan commitments and
savings withdrawals. 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. Stock
repurchases will be made from time to time and may be effected
through open market purchases, block trades and in privately
negotiated transactions. Repurchased stock will be held as treasury
stock and will be available for general corporate purposes. As of
June 30, 2006, shares have been repurchased 24,740. INCOME
INFORMATION - Three month periods ended June 30, 2006 and 2005 Net
income decreased $90,000, or 104.7%, to ($4,000) for the quarter
ended June 30, 2006 from $86,000 for the quarter ended June 30,
2005. The decrease in earnings for the quarter was primarily due to
increases of $80,000 in interest expense on deposits, $250,000 in
interest expense on borrowings from FHLB, $34,000 in provision for
loan losses and a $55,000 increase in non-interest expenses, offset
in part by an increase of $245,000 in interest income, an increase
of $28,000 in non-interest income and a $56,000 decrease in income
taxes. INCOME INFORMATION - Six-month periods ended June 30, 2006
and 2005 Net income decreased $150,000, or 79.4%, to $39,000 for
the six months ended June 30, 2006 from $189,000 for the six months
ended June 30, 2005. The decrease in earnings was primarily due to
increases of $150,000 in interest expense on deposits, $486,000 in
interest expense on FHLB borrowings, $123,000 in non-interest
expense, and $37,000 in provision for loan losses, offset in part
by an increase of $468,000 in interest income, an increase of
$65,000 in non-interest income, and a decrease of $113,000 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) JUNE 30 DECEMBER 31 2006 2005
---------------------------------------------------------- Total
Assets $151,878 $143,953 Loans Receivable 102,612 96,591 Investment
Securities 6,989 7,809 Mortgage-backed Securities 28,776 25,633
Cash and Cash Equivalents 3,338 4,911 Deposits 108,384 109,218
Other Borrowings 25,581 16,969 Stockholders Equity 16,098 16,033
SELECTED OPERATING DATA AT OR FOR THE THREE AT OR FOR THE SIX
MONTHS ENDED JUNE 30 MONTHS ENDED JUNE 30 (in thousands) 2006 2005
2006 2005
--------------------------------------------------------------------------
Total Interest Income $2,141 $1,896 $4,214 $3,746 Total Interest
Expense on Deposits 576 496 1,107 957 Total Interest Expense on
Other Borrowings 275 25 511 25 Net Interest Income 1,290 1,375
2,596 2,764 Provision for Loan Loss 38 4 48 11 Non-interest Income
78 50 170 105 Non-interest Expense 1,326 1,271 2,647 2,524 Income
Taxes 8 64 32 145 Net Income ($4) $86 $39 $189 PERFORMANCE RATIOS
Return on Average Assets (0.001)% 0.252% 0.051% 0.278% Return on
Average Equity (0.10)% 2.16% 0.48% 2.38% Interest Rate Spread 3.47%
3.94% 3.52% 3.98% 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 0.05% 0.17% 0.05% 0.17% CAPITAL RATIO Equity to
Total Assets 10.60% 11.63% 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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