BROOKLYN, N.Y., May 14 /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 consolidated net income of $2,000, or $0.001 per share for the quarter ended March 31, 2008 as compared to net income of $383,000, or $0.143 per share for the same quarter in 2007. The Company's assets decreased $2.6 million, or 1.7%, to $146.2 million at March 31, 2008 from $148.8 million at December 31, 2007. Cash and cash equivalents increased $4.3 million, or 86.0%, to $9.3 million at March 31, 2008 from $5.0 million at December 31, 2007. Loans receivable decreased $3.5 million, or 3.4%, to $98.0 million as of March 31, 2008 from $101.5 million as of December 31, 2007. Mortgage-backed securities decreased $722,000, or 2.8%, to $24.6 million as of March 31, 2008 from $25.4 million as of December 31, 2007. Investment securities decreased $2.5 million, or 38.5%, to $4.0 million as of March 31, 2008 from $6.5 million as of December 31, 2007. Total deposits decreased $94,000, or 0.1%, to $102.6 million at March 31, 2008 from $102.7 million at December 31, 2007. Advances from the Federal Home Loan Bank of New York decreased $2.9 million, or 10.2%, to $25.4 million at March 31, 2008 from $28.3 million at December 31, 2007. Total stockholders' equity decreased $65,000 to $15.5 million as of March 31, 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 March 31, 2008, the Company did not repurchase any shares. As of the quarter ended March 31, 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 March 31, 2008 and 2007 Net income decreased $381,000, to $2,000 for the quarter ended March 31, 2008 from $383,000 for the quarter ended March 31, 2007. For the quarter ended March 31, 2007, non-interest income included proceeds of $500,000 from a life insurance policy the Association owned on the life of former Flatbush Federal Bancorp, Inc. CEO and President, Anthony J. Monteverdi and non-interest expense included the one time accrual of $221,000 for the accelerated vesting of stock options and restricted stock due to the death of Mr. Monteverdi. The decrease in net income for the quarter was primarily due to decreases of $230,000 in interest income, and $506,000 in non-interest income, and increases of $27,000 in interest expense on deposits, and $57,000 in income taxes, which were partially offset by decreases of $80,000 in interest expense on borrowings from the FHLB of New York, $357,000 in non-interest expense and $2,000 in provision for loan loss. 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 March 31, December 31, 2008 2007 (dollars in thousands) Total Assets $146,203 $148,839 Loans Receivable 97,961 101,483 Investment Securities 3,997 6,492 Mortgage-backed Securities 24,629 25,351 Cash and Cash Equivalents 9,338 4,968 Deposits 102,578 102,672 Borrowings 25,445 28,252 Stockholders' Equity 15,496 15,562 CONDENSED OPERATING DATA AT OR FOR THE THREE MONTHS ENDED MARCH 31, 2008 2007 (dollars in thousands) Total Interest Income $2,064 $2,294 Total Interest Expense on Deposits 714 688 Total Interest Expense on Borrowings 310 390 Net Interest Income 1,040 1,217 Provision for Loan Losses - 2 Non-interest Income 67 573 Non-interest Expense 1,102 1,459 Income Taxes (Benefit) 2 (55) Net Income $2 $383 PERFORMANCE RATIOS Return on Average Assets 0.005% 0.984% Return on Average Equity 0.05% 10.02% Interest Rate Spread 2.78% 3.08% ASSET QUALITY RATIOS Allowance for Loan Losses to Total Loans Receivable 0.21% 0.19% Non-performing Loans to Total Assets 0.05% 0.05% CAPITAL RATIO Association's Core Tier 1 Capital to Adjusted Total Assets 10.89% 10.28% DATASOURCE: Flatbush Federal Bancorp, Inc. CONTACT: Jesus R. Adia, President and Chief Executive Officer of Flatbush Federal Bancorp, Inc., +1-718-677-4414 Web site: http://www.flatbush.com/

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