Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - FLATBUSH FEDERAL BANCORP INC | form8k-109667_fltb.htm |
| EX-99.1 - EXHIBIT 99.1 - FLATBUSH FEDERAL BANCORP INC | ex99-1.htm |
Exhibit
99.2
Press
Release Dated August 10, 2010
FOR
IMMEDIATE RELEASE
August
10, 2010
|
Contact:
|
Jesus
R. Adia
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President
and Chief Executive Officer
|
|
|
(718)
677-4414
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Flatbush
Federal Savings and Loan Association to Sell Main Office Building
and
Surrounding Real Estate; Establish New, Nearby Branch Office
Brooklyn, New York – Flatbush Federal
Bancorp, Inc. (the “Company”) (OTC Bulletin Board: FLTB), the holding company of
Flatbush Federal Savings and Loan Association (“Flatbush Federal”), announced
that the Company and C and A Capital LLC (the “Purchaser”)entered
into a Purchase Agreement, pursuant to which Flatbush Federal will sell its
current main branch building and a portion of Flatbush Federal’s adjoining real
estate to Purchaser for $9,136,000.00 (the “Transfer”). Under the
Agreement, Purchaser will acquire the Flatbush Federal’s current main branch
building located at 2146 Nostrand Avenue, Brooklyn, New York (“Property
A”). In addition thereto, the Purchaser will take title to 2158
Nostrand Avenue, Brooklyn, New York (“Property B”), and an approximately 12,305
square foot parcel (“Property C”) of a larger adjoining parking lot (“Lot 124”)
abutting parts of Nostrand Avenue and Hillel Place, Brooklyn, New York (Property
A, Property B, and Property C are collectively, the
“Properties”). Property B is currently leased by Flatbush Federal to
a White Castle franchise.
The
Agreement provided for an investigation period, that expired by its terms on
August 10, 2010. The investigation period allowed the Purchaser to
conduct environmental site assessments, a structural engineering survey and
other tests and investigations. With the expiration of the
investigation period, the Purchaser is legally committed to complete the
Transfer pursuant to the terms of the Agreement.
The Agreement further requires
Purchaser to subdivide Lot 124 (of which Property C forms a part of) into two
separate tax lots or parcels (the “Subdivision”), which is currently
underway. Lot 124 consists of (i) Parcel C and (ii) a 3,100 square
foot parcel which abuts Hillel Place (the “Retained Property”). Flatbush Federal
will retain title to the Retained Parcel, which will become the site of a new
branch building (“Branch Building”).
The Transfer is expected to close (the
“Closing”) approximately seventy-five (75) days after the Subdivision has been
approved and new tax lot numbers are assigned to Property C and the Retained
Property. Flatbush Federal anticipates that the Transfer will occur
during the fourth quarter of 2010, although there can be no assurance that the
Transfer will not be delayed beyond that date.
After the Closing, Purchaser will
construct and deliver the Branch Building to Flatbush Federal for a final fit
out by Flatbush Federal to utilize as a new bank branch. The
Purchaser’s delivery will consist of a fully enclosed Branch Building with an
approximately 3,000 square foot ground level or branch floor, and a 300 square
foot lobby and ATM area. In connection therewith, Purchaser will
install, but not distribute, heating, ventilation and air-conditioning
systems. Additionally, the Purchaser is required to install utility
and power lines, power receptacles, circuit breakers and water lines, among
other things.
At the Closing, Flatbush Federal will
lease back Property A on an interim basis for its continued use as a temporary
bank branch (the “Branch Lease”) for one ($1.00) dollar. Flatbush
Federal must relocate to the new Branch Building no later than 150 days after
the Purchaser completes the construction of the Branch Building and delivers to
Flatbush Federal a temporary certificate of occupancy for the Branch
Building. At that time, the Branch Lease will terminate, and Flatbush
Federal will open the Branch Building for business at its new bank
branch. Flatbush Federal anticipates that the Branch Building will be
opened during the third quarter of 2011, although there can be no assurance that
the opening will be timely.
According to Flatbush Federal’s Chief
Executive Officer Jesus Adia, “The immediate positive benefit of this
transaction to our capital is significant. In addition, this
transaction allows us to maximize the efficiency of office and branch space to
service our customers. We estimate a pre-tax gain in the range of
$8.8 to $9.0 million, which will occur during the quarter in which the Transfer
occurs.
Forward-Looking
Statements
Certain
statements contained herein are “forward-looking statements” within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements may be identified by
reference to a future period or periods, or by the use of forward-looking
terminology, such as “may,” “will,” “believe,” “expect,” “estimate,”
“anticipate,” “continue,” or similar terms or variations on those terms, or the
negative of those terms. Forward-looking statements are subject to numerous
risks and uncertainties, including, but not limited to, receipt of various
regulatory approvals for the above-referenced transactions, those related to the
economic environment, particularly in the market areas in which the Company
operates, competitive products and pricing, fiscal and monetary policies of the
U.S. Government, changes in government regulations affecting financial
institutions, including regulatory fees and capital requirements, changes in
prevailing interest rates, acquisitions and the integration of acquired
businesses, credit risk management, asset-liability management, the financial
and securities markets and the availability of and costs associated with sources
of liquidity.
The
Company wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made. The Company
wishes to advise readers that the factors listed above could affect the
Company's financial performance and could cause the Company's actual results for
future periods to differ materially from any opinions or statements expressed
with respect to future periods in any current statements. Except as required by
law, the Company does not undertake and specifically declines any obligation to
publicly release the result of any revisions, which may be made to any
forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated
events.