NEW YORK, Nov. 10 /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 $84,000, or $0.03 per share, for the quarter ended September 30,
2009 as compared to net income of $78,000, or $0.03 per share, for
the same quarter in 2008. The Company's assets at September 30,
2009 were $156.5 million compared to $149.7 million at December 31,
2008, an increase of $6.8 million or 4.5%. Loans receivable
increased $11.4 million or 11.6%, to $109.6 million at September
30, 2009 from $98.2 million at December 31, 2008. Mortgage-backed
securities decreased $3.5 million or 10.6%, to $29.4 million at
September 30, 2009 from $32.9 million at December 31, 2008. Cash
and cash equivalents decreased $810,000, or 10.5%, to $6.9 million
at September 30, 2009 from $7.7 million at December 31, 2008. Total
deposits increased $13.9 million, or 13.7%, to $115.6 million at
September 30, 2009 from $101.7 million at December 31, 2008.
Borrowings from the Federal Home Loan Bank of New York (FHLB)
decreased $6.3 million, or 22.0%, to $22.3 million at September 30,
2009 from $28.6 million at December 31, 2008. Total stockholders'
equity increased $608,000 to $15.2 million at September 30, 2009
from $14.6 million at December 31, 2008. The increase to
stockholders' equity reflects net income of $415,000, amortization
of $14,000 of unearned ESOP shares, amortization of $31,000 of
restricted stock awards for the Company's Stock-Based Incentive
Program, amortization of $31,000 of stock option awards and
$121,000 of accumulated other comprehensive income. This was
partially offset by $4,000 of repurchased shares under the stock
repurchase program. 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 September 30, 2009, the Company
did not repurchase shares. As of September 30, 2009, a total of
12,750 shares have been repurchased at a weighted average price of
$4.44. INCOME INFORMATION - Three month periods ended September 30,
2009 and 2008 Net income increased by $6,000 to $84,000 for the
quarter ended September 30, 2009 compared to a net income of
$78,000 for the same quarter in 2008. The increase in net income
for the quarter was primarily the result of increases of $189,000
in interest income and a decrease of $24,000 in interest expense on
borrowings from the Federal Home Loan Bank of New York, partially
offset by an increases of $23,000 interest expense on deposits,
$52,000 in provision for loan loss, $75,000 in non-interest
expense, $10,000 in income tax expense, and a decrease of $46,000
in non-interest income. Non-interest expense included an increase
in Federal Deposit Insurance Premiums of $38,000 to $42,000 for the
three months ended September 30, 2009 from $4,000 for the three
months ended September 30, 2008 primarily due to higher premiums
and assessments. INCOME INFORMATION - Nine month periods ended
September 30, 2009 and 2008 On February 26, 2009, the Company froze
its defined benefit pension plan effective March 31, 2009. The
freezing of the Plan is consistent with ongoing cost reduction
strategies, including a discontinuation of accrual of future
service cost in the defined benefit pension plan and fully
preserving retirement benefits employees have earned as of March
31, 2009. As a result of freezing the plan, the Company recognized
a pre-tax curtailment credit of $416,000, net of actuarial
expenses, ($230,000 net of taxes) in the nine months ended
September 30, 2009. Net income increased $326,000, to $415,000 for
the nine months ended September 30, 2009 from $89,000 for the nine
months ended September 30, 2008. The increase in net income for the
nine month period ended September 30, 2009 was primarily due to an
increase of $209,000 in interest income and decreases of $129,000
in interest expense on deposits, $103,000 in interest expense on
borrowings from the FHLB of New York, $202,000 in non-interest
expense, which, were partially offset by a decrease of $57,000 in
non-interest income and increases of $74,000 in provision for loan
losses and $186,000 in income taxes. Non-interest expense included
a decrease in salaries and employee benefits of $392,000 to $1.3
million for the nine months ended September 30, 2009 from $1.7
million for the nine months ended September 30, 2008 primarily due
to the pre-tax curtailment credit of $416,000, net of actuarial
expenses, resulting from the freezing of the defined benefit
pension plan. In addition, non-interest expense included an
increase in Federal Deposit Insurance of $174,000 to $185,000 for
the nine months ended September 30, 2009 from $11,000 for the nine
months ended September 30, 2008 primarily due to an increase in
premiums and assessments. 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. SEPTEMBER 30, DECEMBER 31, 2009
2008 ------------- ------------ Total Assets $156,489 $149,651
Loans Receivable 109,616 98,241 Deposits 115,592 101,676 Borrowings
22,295 28,593 Stockholders' Equity 15,242 14,634 AT OR FOR THE
THREE AT OR FOR THE NINE MONTHS ENDED SEPTEMBER 30, MONTHS ENDED
SEPTEMBER 30, 2009 2008 2009 2008 ---- ---- ---- ---- Total
Interest Income $2,132 $1,943 $6,197 $5,988 Total Interest Expense
840 841 2,555 2,788 Net Interest Income 1,292 1,102 3,642 3,200
Provision for Loan Loss 52 - 74 - Non-interest Income 67 113 200
258 Non-interest Expense 1,176 1,101 3,126 3,328 Income Tax Expense
46 37 227 41 Net Income $84 $78 $415 $89 PERFORMANCE RATIOS Return
on Average Assets 0.21% 0.22% 0.36% 0.08% Return on Average Equity
2.23% 1.99% 3.68% 0.76% Interest Rate Spread 3.29% 3.10% 3.16%
2.93% ASSET QUALITY RATIOS Allowance for Loan Losses to Total Loans
Receivable 0.23% 0.20% 0.23% 0.20% Non-performing Loans to Total
Assets 1.74% 0.52% 1.74% 0.52% CAPITAL RATIO Association's Core
Tier 1 Capital to Adjusted Total Assets 10.52% 11.25% DATASOURCE:
Flatbush Federal Bancorp, Inc. CONTACT: Jesus R. Adia, President
and Chief Executive Officer, +1-718-677-4414
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