BROOKLYN, N.Y., Nov. 8 /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 $101,000 or $0.04 per share for the quarter ended September 30, 2005 as compared to $110,000, or $0.05 per share for the quarter ended September 30, 2004. The Company's assets increased $6.9 million, or 5.1%, to $141.1 million as of September 30, 2005 from $134.2 million at December 31, 2004. Cash and cash equivalents increased $3.1 million, or 50.0%, to $9.3 million at September 30, 2005 from $6.2 million at December 31, 2004. Mortgage-backed securities increased $3.1 million, or 13.8%, to $25.4 million as of September 30, 2005 from $22.3 million as of December 31, 2004. Loans receivable increased $1.3 million, or 1.5%, to $94.3 million as of September 30, 2005 from $92.9 million as of December 31, 2004. Investment securities decreased $1.1 million, or 12%, to $8.1 million as of September 30, 2005 from $9.2 million as of December 31, 2004. Total deposits decreased $4.6 million, or 3.9%, to $112.3 million as of September 30, 2005 from $116.9 million as of December 31, 2004. Total stockholders' equity increased $139,000, or 0.88%. to $15.9 million as of September 30, 2005 from $15.8 million as of December 31, 2004. As of September 30, 2005, the Association borrowed $10.6 million from the Federal Home Loan Bank of New York and invested the borrowings in loans receivable consisting of residential, commercial, mixed-use properties and mortgage-backed securities. After prepayments and amortizations, mortgage- backed securities resulted in a net increase of $3.1 million. Similarly, due to prepayments and amortizations in loans receivable, the Association recorded a net increase of $1.3 million. Calls and repayments in investment securities resulted in the net decrease of $1.1 million. The inflow of cash from prepayments and amortizations from loans receivable and mortgage-backed securities and calls and repayments in investment securities caused cash and cash equivalents to increase by $3.1 million. 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 September 30, 2005, 2,700 shares were acquired. INCOME INFORMATION - Three month periods ended September 30, 2005 and 2004 Net income decreased $9,000, or 8.2%, to $101,000 for the quarter ended September 30, 2005 from $110,000 for the quarter ended September 30, 2004. The decrease in earnings for the quarter was due to increases of $108,000 in total interest expense, $8,000 in provision for loan losses and $2,000 in non-interest expense and a decrease of $10,000 in non-interest income offset in part by an increase of $118,000 in interest income and a decrease $1,000 in income taxes. INCOME INFORMATION - Nine month periods ended September 30, 2005 and 2004 Net income increased $109,000, or 61%, to $289,000 for nine months ended September 30, 2005 from $180,000 for nine months ended September 30, 2004. The increase was primarily due to an increase of $481,000 in interest income offset by increases of $175,000 in total interest expense, $19,000 in provision for loan losses, $73,000 in non-interest expense and $80,000 in income taxes and a decrease of $25,000 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) SEPTEMBER 30 DECEMBER 31 2005 2004 Total Assets $141,093 $134,248 Loans Receivable 94,272 92,924 Investment Securities 8,052 9,187 Mortgage-backed Securities 25,367 22,300 Cash and Cash Equivalents 9,299 6,215 Deposits 112,298 116,857 Other Borrowings 10,639 0 Stockholders Equity 15,949 15,810 SELECTED OPERATING DATA AT OR FOR THE THREE AT OR FOR THE NINE MONTHS ENDED SEPTEMBER 30 MONTHS ENDED SEPTEMBER 30 (in thousands) 2005 2004 2005 2004 Total Interest Income $1,928 $1,810 $5,674 $5,193 Total Interest Expense on Deposits 510 450 1,467 1,366 Total Interest Expense on Other Borrowings 48 0 73 0 Net Interest Income 1,370 1,360 4,134 3,827 Provision for Loan Loss 8 0 19 0 Non-interest Income 51 61 156 181 Non-interest Expense 1,242 1,240 3,766 3,692 Income Taxes 70 71 215 135 Net Income $101 $110 $289 $180 PERFORMANCE RATIOS Return on Average Assets 0.29% 0.32% 0.28% 0.17% Return on Average Equity 2.52% 2.78% 2.42% 1.53% Interest Rate Spread 3.90% 3.89% 3.96% 3.59% ASSET QUALITY RATIOS Allowance for Loan Losses to Total Loans Receivable 0.21% 0.19% 0.21% 0.19% Non-performing Loans to Total Assets 0.23% 0.23% 0.23% 0.23% CAPITAL RATIO Equity to Total Assets 11.30% 11.66% 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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