Published:

Flatbush Federal Bancorp, Inc. Reports 2008 Second Quarter Operating Results

BROOKLYN, N.Y., July 24 /PRNewswire-FirstCall/ -- Flatbush Federal Bancorp, Inc. (the "Company") (OTC Bulletin Board: FLTB), the holding company of Flatbush Federal Savings and Loan Association (the "Association"), announced consolidated net income of $9,000, or $0.003 per share for the quarter ended June 30, 2008 as compared to net income of $2,000, or $0.001 per share for the same quarter in 2007.

The Company's assets decreased $5.9 million, or 4.0%, to $142.9 million at June 30, 2008 from $148.8 million at December 31, 2007. Cash and cash equivalents increased $4.5 million, or 90.0%, to $9.5 million at June 30, 2008 from $5.0 million at December 31, 2007. Loans receivable decreased $4.7 million, or 4.6%, to $96.8 million as of June 30, 2008 from $101.5 million as of December 31, 2007. Mortgage-backed securities decreased $684,000, or 2.7%, to $24.7 million as of June 30, 2008 from $25.4 million as of December 31, 2007. Investment securities decreased $4.5 million, or 69.2%, to $2.0 million as of June 30, 2008 from $6.5 million as of December 31, 2007.

Total deposits decreased $1.2 million, or 1.2%, to $101.5 million at June 30, 2008 from $102.7 million at December 31, 2007. Borrowings from the Federal Home Loan Bank ofNew York ("FHLB") decreased $4.9 million, or 17.3%, to $23.4 million at June 30, 2008 from $28.3 million at December 31, 2007.

Total stockholders' equity decreased $12,000 to $15.6 million as of June 30, 2008 from $15.6 million as of December 31, 2007.

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 June 30, 2008, the Company did not repurchase any shares. As of the quarter ended June 30, 2008, 5,060 shares have been repurchased as part of the Company's current repurchase program at a weighted average price of $5.67.

INCOME INFORMATION - Three month periods ended June 30, 2008 and 2007

Net income increased $7,000, to $9,000 for the quarter ended June 30, 2008 from $2,000 for the quarter ended June 30, 2007. The increase in net income for the quarter was primarily due to decreases of $95,000 in interest expense on deposits, $103,000 in interest expense on borrowings from The FHLB ofNew York and $111,000 in non-interest expense, and an increase of $2,000 on non-interest income, which were partially offset by a decrease of $304,000 in interest income.

INCOME INFORMATION - Six month periods ended June 30, 2008 and 2007

Net income decreased $374,000, to $11,000 for the six months ended June 30, 2008 from $385,000 for the six months ended June 30, 2007. The decrease in net income for the six month period ended June 30, 2008 was primarily due to decreases of $535,000 in interest income and $503,000 in non-interest income, and an increase of $58,000 in income taxes, which, were partially offset by decreases of $68,000 in interest expense on deposits, $184,000 in interest expense on borrowings from The FHLB ofNew York, $468,000 in non-interest expense and $2,000 in provision for loan losses. For the six month period ended June 30, 2007, non-interest income included proceeds of $500,000 from a life insurance policy the Association owned on the life of the Company's former CEO and President, Anthony J. Monteverdi. During the same period in 2007, non-interest expense included the one time accrual of $221,000 for the accelerated vesting of stock options and restricted stock following the death of Mr. Monteverdi.

Additional 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 mortgages 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

                                     June 30,   December 31,
                                       2008         2007
                                  -----------   -----------
     (dollars in thousands)
    Total Assets                    $142,946     $148,839
    Loans Receivable                  96,763      101,483
    Investment Securities              2,000        6,492
    Mortgage-backed Securities        24,667      25,351
    Cash and Cash Equivalents
         9,541        4,968
    Deposits                         101,506      102,672
    Borrowings                        23,433       28,252
    Stockholders' Equity              15,550       15,562


    CONDENSED OPERATING DATA

                                    AT OR FOR THE THREE   AT OR FOR THE SIX
                                        MONTHS ENDED        MONTHS ENDED
                                          JUNE 30,             JUNE 30,
                                       2008     2007        2008      2007

                                   --------------------  --------------------
                                  (dollars in thousands)(dollars in thousands)
    Total Interest Income             $1,981   $2,285       $4,044    $4,579
    Total Interest Expense on
     Deposits                            645      739        1,359     1,427
    Total Interest Expense on
     Borrowings                          278      382          588       771
    Net Interest Income                1,058    1,164        2,098     2,381
    Provision for Loan Losses              -        -            -         2
    Non-interest Income                   78       76          145       648
    Non-interest Expense               1,125    1,237        2,227     2,695
    Income Taxes (Benefit)                 2        1            4       (53)
    Net Income                            $9       $2          $11      $385

    PERFORMANCE RATIOS

    Return on Average Assets            0.03%    0.01%        0.02%     0.49%
    Return on Average Equity            0.23%    0.05%        0.14%     4.97%
    Interest Rate Spread                2.81%    2.95%        3.30%     3.02%

    ASSET QUALITY RATIOS

    Allowance for Loan Losses to
      Total Loans Receivable            0.20%    0.20%        0.20%     0.20%
    Non-performing Loans to Total
     Assets                             0.35%    0.04%        0.35%     0.04%

    CAPITAL RATIO
    Association's Core Tier 1
     Capital to Adjusted Total Assets  11.17%   10.53%       11.17%    10.53%

SOURCE Flatbush Federal Bancorp, Inc.

Tags: ,FIN,OTC,ERN,NY-FLTB-2Q-Earnings

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