BROOKLYN, N.Y., Aug. 13 /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 June 30, 2007 as compared to net loss of $4,000, or $0.002 per share for the same quarter in 2006. The Company's assets decreased $457,000, or 0.3%, to $153.9 million at June 30, 2007 from $154.4 million at December 31, 2006. Cash and cash equivalents increased $2.3 million, or 57.5%, to $6.3 million at June 30, 2007 from $4.0 million at December 31, 2006. Loans receivable decreased $3.4 million, or 3.2%, to $102.8 million as of June 30, 2007 from $106.2 million as of December 31, 2006. Mortgage-backed securities increased $738,000, or 2.8%, to $27.5 million as of June 30, 2007 from $26.7 million as of December 31, 2006. Investment securities remained at $7.0 million as of June 30, 2007 and as of December 31, 2006. Total deposits increased $1.6 million, or 1.5%, to $107.2 million at June 30, 2007 from $105.6 million at December 31, 2006. Advances from Federal Home Loan Bank of New York decreased $1.9 million, or 6.2%, to $28.6 million at June 30, 2007 from $30.5 million at December 31, 2006. Total stockholders' equity increased $707,000 to $15.8 million as of June 30, 2007 from $15.0 million as of December 31, 2006. 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 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. As of June 30, 2007, 43,900 shares have been repurchased at a weighted average price of $7.99 per share. During the quarter ended June 30, 2007, the Company repurchased 5,310 shares. INCOME INFORMATION -- Three month periods ended June 30, 2007 and 2006 Net income increased $6,000, to $2,000 for the quarter ended June 30, 2007 from a loss of $4,000 for the quarter ended June 30, 2006. The increase in net income for the quarter was primarily due to increases of $144,000 in interest income, and decreases of $90,000 in non-interest expense, $38,000 in provision for loan loss, and $7,000 in income taxes, which, however, were partially offset by increases of $163,000 in interest expense on deposits, $107,000 in interest expense on borrowings from FHLB, and decreases of $2,000 in non-interest income. INCOME INFORMATION -- Six month periods ended June 30, 2007 and 2006 Net income increased $346,000, to $385,000 for the six months ended June 30, 2007 from $39,000 for the six months ended June 30, 2006. The increase in net income for the six month period ended June 30, 2007 was primarily due to increases of $365,000 in interest income, $478,000 in non-interest income, and decreases of $85,000 in income taxes and $46,000 in provision for loan loss, which, however, were partially offset by increases of $320,000 in interest expense on deposits, $261,000 in interest expense on borrowings from Federal Home Loan Bank of New York, and $47,000 in non-interest expense. 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. Non-interest expense included the one time accrual of $221,000 during the six months ended June 30, 2007 for the accelerated vesting of stock options and restricted stock following the death of Mr. Monteverdi. 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, 2007 2006 Total Assets $ 153,925 154,382 Loans Receivable 102,754 106,230 Investment Securities 6,991 6,990 Mortgage-backed Securities 27,465 26,727 Cash and Cash Equivalents 6,319 4,007 Deposits 107,181 105,641 Other Borrowings 28,552 30,487 Stockholders Equity 15,753 15,046 SELECTED OPERATING DATA AT OR FOR THE THREE AT OR FOR THE SIX MONTHS ENDED JUNE 30, MONTHS ENDED JUNE 30, (in thousands) 2007 2006 2007 2006 Total Interest Income $ 2,285 $ 2,141 $ 4,579 $ 4,214 Total Interest Expense on Deposits 739 576 1,427 1,107 Total Interest Expense on Other Borrowings 382 275 771 511 Net Interest Income 1,164 1,290 2,381 2,596 Provision for Loan Loss - 38 2 48 Non-interest Income 76 78 648 170 Non-interest Expense 1,237 1,326 2,695 2,648 Income Taxes 1 8 (53) 31 Net Income (Loss) $ 2 $ (4) $ 385 $ 39 PERFORMANCE RATIOS Return on Average Assets 0.01 % (0.01)% 0.49 % 0.052 % Return on Average Equity 0.05 % (0.10)% 4.97 % 0.48 % Interest Rate Spread 2.95 % 3.47 % 3.02 % 3.52 % ASSET QUALITY RATIOS Allowance for Loan Losses to Total Loans Receivable 0.20 % 0.20 % Non-performing Loans to Total Assets 0.04 % 0.05 % CAPITAL RATIO Equity to Total Assets 10.53 % 10.60 % 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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