----

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| FLATBUSH FEDERAL BANCORP, INC.                                                     |
|------------------------------------------------------------------------------------|
| (Exact name of registrant as specified in its charter)                             |
|                                                                               |   |   |
| FEDERAL                                                                            |   | 11-3700733 |
| (State or other jurisdiction of incorporation or organization)                     |   | (IRS Employer Identification No.) |
|                                                                               |   |   |
| 2146 NOSTRAND AVENUE, BROOKLYN, NEW YORK  11210                          |
| (Address of principal executive offices)                                           |
|                                                                               |   |   |
| (718) 859-6800                                                                     |
| (Registrant’s telephone number)                                              |
|                                                                               |   |   |
|                                                                               |   |   |
| (Former name, former address and former fiscal year, if changed since last report) |

| Large Accelerated filero                                              |   | Accelerated filero          |
|-----------------------------------------------------------------------|--------|-----------------------------|
| Non-accelerated filer (Do not check if a smaller reporting company) o |   | Smaller reporting company x |

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FLATBUSH 

|                                 |   |                                                                  |   | Page         |
|--------------------------------------|--------|-----------------------------------------------------------------------|--------|--------------|
|                                 |   |                                                                  |   | Number       |
| PART I – FINANCIAL INFORMATION |   |                                                                  |
|                                 |   |                                                                  |   |         |
| Item 1:                              |   | Financial Statements                                                  |   |         |
|                                 |   |                                                                  |   |         |
|                                 |   | Consolidated Statements of Financial Condition                        |   |         |
|                                 |   | at March 31, 2011 and December 31, 2010 (Unaudited)              |   | 1            |
|                                 |   |                                                                  |   |         |
|                                 |   | Consolidated Statements of Income for the Three months                |   |         |
|                                 |   | March 31, 2011 and 2010 (Unaudited)                                   |   | 2            |
|                                 |   |                                                                  |   |         |
|                                 |   | Consolidated Statements of Comprehensive Income for the               |   |         |
|                                 |   | Three months ended March 31, 2011 and 2010 (Unaudited)                |   | 3            |
|                                 |   |                                                                  |   |         |
|                                 |   | Consolidated Statements of Cash Flows for the Three months            |   |         |
|                                 |   | ended March 31, 2011 and 2010 (Unaudited)                             |   | 4            |
|                                 |   |                                                                  |   |         |
|                                 |   | Notes to Consolidated Financial Statements (Unaudited)                |   | 5 – 22 |
|                                 |   |                                                                  |   |         |
| Item 2:                              |   | Management’s Discussion and Analysis of Financial Condition and |   |         |
|                                 |   | Results of Operation                                                  |   | 23-27        |
|                                 |   |                                                                  |   |         |
| Item 3:                              |   | Quantitative and Qualitative Disclosure About Market Risk             |   | 28           |
|                                 |   |                                                                  |   |         |
| Item 4:                              |   | Controls and Procedures                                               |   | 28           |
|                                 |   |                                                                  |   |         |
| PART II – OTHER INFORMATION    |   |                                                                  |
|                                 |   |                                                                  |   |         |
| Item 1:                              |   | Legal Proceedings                                                     |   | 29           |
|                                 |   |                                                                  |   |         |
| Item 1A:                             |   | Risk Factors                                                          |   | 29           |
|                                 |   |                                                                  |   |         |
| Item 2:                              |   | Unregistered Sales of Equity Securities and Use of Proceeds           |   | 29           |
|                                 |   |                                                                  |   |         |
| Item 3:                              |   | Defaults upon Senior Securities                                       |   | 29           |
|                                 |   |                                                                  |   |         |
| Item 4:                              |   | (Removed and Reserved)                                                |   | 29           |
|                                 |   |                                                                  |   |         |
| Item 5:                              |   | Other Information                                                     |   | 29           |
|                                 |   |                                                                  |   |         |
| Item 6:                              |   | Exhibits                                                              |   | 30           |
|                                 |   |                                                                  |   |         |
| SIGNATURES                           |   |                                                                  |   | 31           |

----

INDEX

ITEM 

FLATBUSH 

|                                                                                                                       |   |      |        |   |              |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|-------------------|--------|
|                                                                                                                       |   | March 31, |        |   | December 31, |   |
| ASSETS                                                                                                                     |   | 2011      |        |   | 2010              |   |
|                                                                                                                       |   |      |        |   |              |   |
| Cash and amounts due from depository institutions                                                                          |   | $         | 1,769,960   |   |              | $      | 1,568,479 |   |
| Interest earning deposits in other banks                                                                                   |   |      | 719,692     |   |              |   | 1,065,862 |   |
| Federal funds sold                                                                                                         |   |      | 5,900,000   |   |              |   | 5,550,000 |   |
| Cash and cash equivalents                                                                                                  |   |      | 8,389,652   |   |              |   | 8,184,340 |   |
|                                                                                                                       |   |      |        |   |              |   |   |   |
| Mortgage-backed securities held to maturity; fair value of$22,470,430 (2011) and $23,084,343 (2010)                        |   |      | 21,271,386  |   |              |   | 21,779,811 |   |
| Loans receivable, net of allowance for loan losses of $1,783,763(2011) and $1,649,319 (2010)                               |   |      | 104,281,114 |   |              |   | 106,477,978 |   |
| Premises and equipment                                                                                                     |   |      | 2,275,079   |   |              |   | 2,287,820 |   |
| Federal Home Loan Bank of New York stock                                                                                   |   |      | 721,700     |   |              |   | 807,900 |   |
| Accrued interest receivable                                                                                                |   |      | 521,310     |   |              |   | 607,089 |   |
| Bank owned life insurance                                                                                                  |   |      | 4,408,732   |   |              |   | 4,371,605 |   |
| Other assets                                                                                                               |   |      | 2,897,701   |   |              |   | 2,502,199 |   |
| Total assets                                                                                                               |   | $         | 144,766,674 |   |              | $      | 147,018,742 |   |
|                                                                                                                       |   |      |        |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                 |   |      |        |   |              |   |   |   |
| Liabilities:                                                                                                               |   |      |        |   |              |   |   |   |
| Deposits:                                                                                                                  |   |      |        |   |              |   |   |   |
| Non-interest bearing                                                                                                       |   | $         | 5,313,257   |   |              | $      | 5,319,364 |   |
| Interest bearing                                                                                                           |   |      | 111,047,730 |   |              |   | 111,754,193 |   |
| Total deposits                                                                                                             |   |      | 116,360,987 |   |              |   | 117,073,557 |   |
| Federal Home Loan Bank of New York advances                                                                                |   |      | 10,128,528  |   |              |   | 12,042,583 |   |
| Advance payments by borrowers for taxes and insurance                                                                      |   |      | 547,865     |   |              |   | 333,023 |   |
| Other liabilities                                                                                                          |   |      | 1,872,818   |   |              |   | 1,816,062 |   |
| Total liabilities                                                                                                          |   |      | 128,910,198 |   |              |   | 131,265,225 |   |
| Stockholders’ equity:                                                                                                |   |      |        |   |              |   |   |   |
| Preferred stock $0.01 par value; 1,000,000 shares authorized;none issued and outstanding                                   |   |      | ---         |   |              |   | --- |   |
| Common stock $0.01 par value;  authorized 9,000,000 shares;issued 2,799,657 shares; outstanding 2,736,907 shares |   |      | 27,998      |   |              |   | 27,998 |   |
| Paid-in capital                                                                                                            |   |      | 12,672,788  |   |              |   | 12,653,326 |   |
| Retained earnings                                                                                                          |   |      | 5,827,184   |   |              |   | 5,791,170 |   |
| Unearned employees’ stock ownership plan (ESOP) shares                                                               |   |      | (435,264    | )      |              |   | (443,983 | ) |
| Treasury stock, 62,750 shares                                                                                              |   |      | (446,534    | )      |              |   | (446,534 | ) |
| Accumulated other comprehensive loss                                                                                       |   |      | (1,789,696  | )      |              |   | (1,828,460 | ) |
| Total stockholders’ equity                                                                                           |   |      | 15,856,476  |   |              |   | 15,753,517 |   |
|                                                                                                                       |   |      |        |   |              |   |   |   |
| Total liabilities and stockholders’ equity                                                                           |   | $         | 144,766,674 |   |              | $      | 147,018,742 |   |

----

INDEX

FLATBUSH 

|                                                                    |   |               |      |   |   |   |
|-------------------------------------------------------------------------|--------|--------------------|-----------|--------|--------|--------|
|                                                                    |   | Three months ended |      |
|                                                                    |   | March 31,          |      |
|                                                                    |   | 2011               |      |   | 2010   |   |
| Interest Income                                                         |   |               |      |   |   |   |
| Loans, including fees                                                   |   | $                  | 1,475,152 |   |   | $      | 1,676,546 |   |
| Mortgage-backed securities                                              |   |               | 273,666   |   |   |   | 392,207 |   |
| Federal Home Loan Bank of New York stock                                |   |               | 12,093    |   |   |   | 17,282 |   |
| Other interest earning assets                                           |   |               | 1,891     |   |   |   | 814 |   |
| Total interest income                                                   |   |               | 1,762,802 |   |   |   | 2,086,849 |   |
|                                                                    |   |               |      |   |   |   |   |   |
| Interest Expense                                                        |   |               |      |   |   |   |   |   |
| Deposits                                                                |   |               | 372,208   |   |   |   | 459,903 |   |
| Borrowings                                                              |   |               | 38,208    |   |   |   | 96,601 |   |
| Total interest expense                                                  |   |               | 410,416   |   |   |   | 556,504 |   |
|                                                                    |   |               |      |   |   |   |   |   |
| Net Interest Income                                                     |   |               | 1,352,386 |   |   |   | 1,530,345 |   |
| Provision for loan losses                                               |   |               | 139,793   |   |   |   | 154,472 |   |
| Net interest income after provision for loan losses                     |   |               | 1,212,593 |   |   |   | 1,375,873 |   |
|                                                                    |   |               |      |   |   |   |   |   |
| Non-interest income                                                     |   |               |      |   |   |   |   |   |
| Fees and service charges                                                |   |               | 24,924    |   |   |   | 25,389 |   |
| BOLI income                                                             |   |               | 37,127    |   |   |   | 37,304 |   |
| Other                                                                   |   |               | 752       |   |   |   | 645 |   |
| Total non-interest income                                               |   |               | 62,803    |   |   |   | 63,338 |   |
|                                                                    |   |               |      |   |   |   |   |   |
| Non-interest expenses                                                   |   |               |      |   |   |   |   |   |
| Salaries and employee benefits                                          |   |               | 605,023   |   |   |   | 603,979 |   |
| Net occupancy expense of premises                                       |   |               | 133,029   |   |   |   | 111,992 |   |
| Equipment                                                               |   |               | 178,029   |   |   |   | 124,564 |   |
| Directors’ compensation                                           |   |               | 45,391    |   |   |   | 45,991 |   |
| Professional fees                                                       |   |               | 89,850    |   |   |   | 106,500 |   |
| Other insurance premiums                                                |   |               | 36,361    |   |   |   | 35,443 |   |
| Federal deposit insurance premiums                                      |   |               | 48,333    |   |   |   | 57,993 |   |
| Other                                                                   |   |               | 115,332   |   |   |   | 125,152 |   |
| Total non-interest expenses                                             |   |               | 1,251,348 |   |   |   | 1,211,614 |   |
|                                                                    |   |               |      |   |   |   |   |   |
| Income before income tax  (benefit) expense                   |   |               | 24,048    |   |   |   | 227,597 |   |
| Income tax (benefit) expense                                            |   |               | (11,966   | )      |   |   | 87,507 |   |
|                                                                    |   |               |      |   |   |   |   |   |
| Net income                                                              |   | $                  | 36,014    |   |   | $      | 140,090 |   |
|                                                                    |   |               |      |   |   |   |   |   |
| Net income per common share – Basic and diluted                   |   | $                  | 0.01      |   |   | $      | 0.05 |   |
| Weighted average number of shares outstanding – Basic and diluted |   |               | 2,670,143 |   |   |   | 2,664,875 |   |

----

INDEX

FLATBUSH 

|                        |   | Three months endedMarch 31, |    |
|-----------------------------|--------|-----------------------------|---------|
|                        |   | 2011                        |    |   | 2010 |   |
|                        |   |                        |    |   |   |   |
| Net income                  |   | $                           | 36,014  |   |   | $ | 140,090 |   |
|                        |   |                        |    |   |   |   |   |   |
| Other comprehensive income, |   |                        |    |   |   |   |   |   |
| net of income taxes:        |   |                        |    |   |   |   |   |   |
|                        |   |                        |    |   |   |   |   |   |
| Benefit plans               |   |                        | 66,661  |   |   |   | 63,112 |   |
|                        |   |                        |    |   |   |   |   |   |
| Deferred income taxes       |   |                        | (27,897 | ) |   |   | (26,412 | ) |
|                        |   |                        | 38,764  |   |   |   | 36,700 |   |
|                        |   |                        |    |   |   |   |   |   |
| Comprehensive income        |   | $                           | 74,778  |   |   | $ | 176,790 |   |

----

INDEX

FLATBUSH 

|                                                                             |   | Three months ended March 31, |       |
|----------------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                             |   | 2010                         |       |   | 2010 |   |
| Cash flow from operating activities:                                             |   |                         |       |   |   |   |
| Net income                                                                       |   | $                            | 36,014     |   |   | $ | 140,090 |   |
| Adjustments to reconcile net income to net cashprovided by operating activities: |   |                         |       |   |   |   |   |   |
| Depreciation and amortization of premises and equipment                          |   |                         | 41,064     |   |   |   | 45,535 |   |
| Net accretion of discounts, premiums anddeferred loan fees and costs             |   |                         | 24,792     |   |   |   | (47,536 | ) |
| Provision for loan losses                                                        |   |                         | 139,793    |   |   |   | 154,472 |   |
| ESOP shares committed to be released                                             |   |                         | 7,683      |   |   |   | 5,338 |   |
| MRP expense                                                                      |   |                         | 10,145     |   |   |   | 10,146 |   |
| Stock option expense                                                             |   |                         | 10,353     |   |   |   | 10,353 |   |
| Decrease (increase) in accrued interest receivable                               |   |                         | 85,779     |   |   |   | (107 | ) |
| Increase in cash surrender value of BOLI                                         |   |                         | (37,127    | ) |   |   | (37,304 | ) |
| (Increase) decrease in other assets                                              |   |                         | (423,399   | ) |   |   | 216,662 |   |
| Increase (decrease) in other liabilities                                         |   |                         | 123,417    |   |   |   | (33,328 | ) |
| Net cash provided by operating activities                                        |   |                         | 18,514     |   |   |   | 464,321 |   |
|                                                                             |   |                         |       |   |   |   |   |   |
| Cash flow from investing activities:                                             |   |                         |       |   |   |   |   |   |
| Principal repayments on mortgage-backed securities held to maturity              |   |                         | 1,625,415  |   |   |   | 2,045,769 |   |
| Purchases of mortgage-backed securities held to maturity                         |   |                         | (1,119,746 | ) |   |   | - |   |
| Purchases of loan participation interests                                        |   |                         | (104,808   | ) |   |   | (311,024 | ) |
| Net change in loans receivable                                                   |   |                         | 2,139,843  |   |   |   | (2,277,960 | ) |
| Additions to premises and equipment                                              |   |                         | (28,323    | ) |   |   | (8,085 | ) |
| Redemption of Federal Home Loan Bank of New York stock                           |   |                         | 86,200     |   |   |   | 42,700 |   |
| Net cash provided by (used in) investing activities                              |   |                         | 2,598,581  |   |   |   | (508,600 | ) |
|                                                                             |   |                         |       |   |   |   |   |   |
| Cash flow from financing activities:                                             |   |                         |       |   |   |   |   |   |
| Net (decrease) increase in deposits                                              |   |                         | (712,570   | ) |   |   | 1,482,920 |   |
| Repayment of advances from Federal Home Loan Bank of New York                    |   |                         | (2,414,055 | ) |   |   | (448,670 | ) |
| Net change in short-term borrowings                                              |   |                         | 500,000    |   |   |   | (500,000 | ) |
| Increase in advance payments by borrowersfor taxes and insurance                 |   |                         | 214,842    |   |   |   | 304,084 |   |
| Net cash (used in) provided by financing activities                              |   |                         | (2,411,783 | ) |   |   | 838,334 |   |
| Net increase in cash and cash equivalents                                        |   |                         | 205,312    |   |   |   | 794,055 |   |
| Cash and cash equivalents – beginning                                      |   |                         | 8,184,340  |   |   |   | 5,458,027 |   |
|                                                                             |   |                         |       |   |   |   |   |   |
| Cash and cash equivalents – ending                                         |   | $                            | 8,389,652  |   |   | $ | 6,252,082 |   |
| Supplemental disclosure of cash flow information                                 |   |                         |       |   |   |   |   |   |
| Cash paid during the year for:                                                   |   |                         |       |   |   |   |   |   |
| Interest                                                                         |   | $                            | 428,591    |   |   | $ | 558,678 |   |
| Income taxes                                                                     |   | $                            | 346,960    |   |   | $ | 4,000 |   |

----

INDEX

FLATBUSH 

----

INDEX

|                                     |   | March 31, 2011 |       |
|------------------------------------------|--------|----------------|------------|
|                                     |   | Amortized Cost |       |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Estimated FairValue |   |
|                                     |   |           |       |   |   |   |   |   |   |   |   |   |
| Government National Mortgage Association |   | $              | 1,772,979  |   |   | $ | 122,317 |   |   | $ | - |   |   | $ | 1,895,296 |   |
| Federal National Mortgage Association    |   |           | 15,458,824 |   |   |   | 991,998 |   |   |   | 23,314 |   |   |   | 16,427,508 |   |
| Federal Home Loan Mortgage Corporation   |   |           | 4,039,583  |   |   |   | 133,521 |   |   |   | 25,478 |   |   |   | 4,147,626 |   |
|                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                    |   | $              | 21,271,386 |   |   | $ | 1,247,836 |   |   | $ | 48,792 |   |   | $ | 22,470,430 |   |

|                                     |   | December 31, 2010 |       |
|------------------------------------------|--------|-------------------|------------|
|                                     |   | Amortized Cost    |       |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Estimated FairValue |   |
|                                     |   |              |       |   |   |   |   |   |   |   |   |   |
| Government National Mortgage Association |   | $                 | 1,941,011  |   |   | $ | 130,052 |   |   | $ | - |   |   | $ | 2,071,063 |   |
| Federal National Mortgage Association    |   |              | 15,301,382 |   |   |   | 1,043,256 |   |   |   | 10,719 |   |   |   | 16,333,919 |   |
| Federal Home Loan Mortgage Corporation   |   |              | 4,537,418  |   |   |   | 152,331 |   |   |   | 10,388 |   |   |   | 4,679,361 |   |
|                                     |   |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                    |   | $                 | 21,779,811 |   |   | $ | 1,325,639 |   |   | $ | 21,107 |   |   | $ | 23,084,343 |   |

----

INDEX

|                                 |   | Less than 12 Months |      |   | 12 Months or More |   |   | Total     |   |
|--------------------------------------|--------|---------------------|-----------|--------|-------------------|--------|--------|-----------|--------|
|                                 |   | FairValue           |      |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |   |
|                                 |   |                |      |   |              |   |   |      |   |   |   |   |   |   |   |   |   |   |
| March 31, 2011:                      |   |                |      |   |              |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Federal NationalMortgage Association |   | $                   | 1,197,211 |   |              | $      | 23,314 |      |   | $ | - |   |   | $ | - |   |   | $ | 1,197,211 |   |   | $ | 23,314 |   |
| Federal Home LoanMortgageCorporation |   |                | 593,892   |   |              |   | 18,872 |      |   |   | 382,033 |   |   |   | 6,606 |   |   |   | 975,925 |   |   |   | 25,478 |   |
|                                 |   |                |      |   |              |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                |      |   |              |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                |   | $                   | 1,791,103 |   |              | $      | 42,186 |      |   | $ | 382,033 |   |   | $ | 6,606 |   |   | $ | 2,173,136 |   |   | $ | 48,792 |   |

|                                                  |   | Less than 12 Months |    |   | 12 Months or More |   |   | Total     |   |
|-------------------------------------------------------|--------|---------------------|---------|--------|-------------------|--------|--------|-----------|--------|
|                                                  |   | FairValue           |    |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |   |
|                                                  |   |                |    |   |              |   |   |      |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010:                                    |   |                |    |   |              |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Federal NationalMortgage   Association |   | $                   | 487,785 |   |              | $      | 10,719 |      |   | $ | - |   |   | $ | - |   |   | $ | 487,785 |   |   | $ | 10,719 |   |
| Federal Home LoanMortgageCorporation                  |   |                | 53,835  |   |              |   | 418    |      |   |   | 553,080 |   |   |   | 9,970 |   |   |   | 606,915 |   |   |   | 10,388 |   |
|                                                  |   |                |    |   |              |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |                |    |   |              |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                 |   | $                   | 541,620 |   |              | $      | 11,137 |      |   | $ | 553,080 |   |   | $ | 9,970 |   |   | $ | 1,094,700 |   |   | $ | 21,107 |   |

----

INDEX

|                                   |   | March 31, 2011 |       |
|----------------------------------------|--------|----------------|------------|
|                                   |   | Amortized Cost |       |   | Estimated Fair Value |   |
| Due within one year                    |   | $              | 41,709     |   |   | $ | 42,693 |   |
| Due after one year through five years  |   |           | 32,772     |   |   |   | 33,027 |   |
| Due after five years through ten years |   |           | 160,282    |   |   |   | 165,401 |   |
| Due after ten years                    |   |           | 21,036,623 |   |   |   | 22,229,309 |   |
| Total                                  |   | $              | 21,271,386 |   |   | $ | 22,470,430 |   |

----

INDEX

|                                                  |   | Construction,Land and Unsecured Business Loan |   |   | Commercial Real Estate |   |   | Residential Multifamily Real Estate |   |   | ResidentialOne-to four-family Real Estate |   |   | Credit Card |   |   | Home Equity |   |   | Passbook Loans |   |   | Total  |   |
|-------------------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------------|--------|--------|-------------|--------|--------|-------------|--------|--------|----------------|--------|--------|--------|--------|
|                                                  |   | (Dollars in thousands)                        |   |
| Allowance for loan losses:                            |   |                                          |   |   |                   |   |   |                                |   |   |                                      |   |   |        |   |   |        |   |   |           |   |   |   |   |
| Beginning Balances                                    |   | $                                             | 810    |   |                   | $      | 583    |                                |   | $      | 36                                        |   |   | $           | 214    |   |        | $      | 6      |           |   | $      | -      |   |   | $ | - |   |   | $ | 1,649 |   |
| Charge-offs                                           |   |                                          | -      |   |                   |   | -      |                                |   |   | -                                         |   |   |        | (5     | )      |        |   | -      |           |   |   | -      |   |   |   | - |   |   |   | (5 | ) |
| Provision                                             |   |                                          | 106    |   |                   |   | 23     |                                |   |   | -                                         |   |   |        | 6      |   |        |   | 5      |           |   |   | -      |   |   |   | - |   |   |   | 140 |   |
| Ending Balance                                        |   | $                                             | 916    |   |                   | $      | 606    |                                |   | $      | 36                                        |   |   | $           | 215    |   |        | $      | 11     |           |   | $      | -      |   |   | $ | - |   |   | $ | 1,784 |   |
| Ending balance: individually evaluated for impairment |   | $                                             | 650    |   |                   | $      | 221    |                                |   | $      | -                                         |   |   | $           | 67     |   |        | $      | 8      |           |   | $      | -      |   |   | $ | - |   |   | $ | 946 |   |
| Ending balance: collectively evaluated for impairment |   | $                                             | 266    |   |                   | $      | 385    |                                |   | $      | 36                                        |   |   | $           | 148    |   |        | $      | 3      |           |   | $      | -      |   |   | $ | - |   |   | $ | 837 |   |
|                                                  |   |                                          |   |   |                   |   |   |                                |   |   |                                      |   |   |        |   |   |        |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan receivables:                                     |   |                                          |   |   |                   |   |   |                                |   |   |                                      |   |   |        |   |   |        |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                        |   | $                                             | 7,407  |   |                   | $      | 23,402 |                                |   | $      | 5,854                                     |   |   | $           | 69,310 |   |        | $      | 46     |           |   | $      | 106    |   |   | $ | 39 |   |   | $ | 106,163 |   |
| Ending balance: individually evaluated for impairment |   | $                                             | 3,958  |   |                   | $      | 3,153  |                                |   | $      | -                                         |   |   | $           | 4,198  |   |        | $      | 8      |           |   | $      | -      |   |   | $ | - |   |   | $ | 11,317 |   |
| Ending balance: collectively evaluated for impairment |   | $                                             | 3,449  |   |                   | $      | 20,249 |                                |   | $      | 5,854                                     |   |   | $           | 65,112 |   |        | $      | 38     |           |   | $      | 106    |   |   | $ | 39 |   |   | $ | 94,846 |   |

----

INDEX

|                                                  |   | Construction,Land and Unsecured Business Loan |   |   | Commercial Real Estate |   |   | Residential Multifamily Real Estate |   |   | ResidentialOne-to four-family Real Estate |   |   | Credit Card |   |   | Home Equity |   |   | Passbook Loan |   |   | Total  |   |
|-------------------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------------|--------|--------|-------------|--------|--------|-------------|--------|--------|---------------|--------|--------|--------|--------|
|                                                  |   | (Dollars in thousands)                        |   |
| Allowance for loan losses:                            |   |                                          |   |   |                   |   |   |                                |   |   |                                      |   |   |        |   |   |        |   |   |          |   |   |   |   |
| Ending Balance                                        |   | $                                             | 810    |   |                   | $      | 583    |                                |   | $      | 36                                        |   |   | $           | 214    |   |        | $      | 6      |          |   | $      | -      |   |   | $ | - |   |   | $ | 1,649 |   |
| Ending balance: individually evaluated for impairment |   | $                                             | 627    |   |                   | $      | 207    |                                |   | $      | -                                         |   |   | $           | 60     |   |        | $      | 4      |          |   | $      | -      |   |   | $ | - |   |   | $ | 898 |   |
| Ending balance: collectively evaluated for impairment |   | $                                             | 183    |   |                   | $      | 376    |                                |   | $      | 36                                        |   |   | $           | 154    |   |        | $      | 2      |          |   | $      | -      |   |   | $ | - |   |   | $ | 751 |   |
|                                                  |   |                                          |   |   |                   |   |   |                                |   |   |                                      |   |   |        |   |   |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan receivables:                                     |   |                                          |   |   |                   |   |   |                                |   |   |                                      |   |   |        |   |   |        |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                        |   | $                                             | 8,205  |   |                   | $      | 22,975 |                                |   | $      | 5,890                                     |   |   | $           | 71,830 |   |        | $      | 47     |          |   | $      | 113    |   |   | $ | 39 |   |   | $ | 109,099 |   |
| Ending balance: individually evaluated for impairment |   | $                                             | 2,040  |   |                   | $      | 3,156  |                                |   | $      | -                                         |   |   | $           | 3,801  |   |        | $      | 4      |          |   | $      | -      |   |   | $ | - |   |   | $ | 9,001 |   |
| Ending balance: collectively evaluated for impairment |   | $                                             | 6,165  |   |                   | $      | 19,819 |                                |   | $      | 5,890                                     |   |   | $           | 68,029 |   |        | $      | 43     |          |   | $      | 113    |   |   | $ | 39 |   |   | $ | 100,098 |   |

----

INDEX

----

INDEX

|                                      |   | Impaired Loans With Specific Allowances |   |   | Impaired Loans With No Specific Allowances |   |   | Total Impaired Loans |   |
|-------------------------------------------|--------|-----------------------------------------|--------|--------|--------------------------------------------|--------|--------|----------------------|--------|
|                                      |   | Recorded Investment                     |   |   | Related Allowance                          |   |   | Recorded Investment  |   |   | Recorded Investment |   |   | Unpaid Principal Balance |   |
|                                      |   | (Dollars in thousands)                  |   |
| March 31, 2011:                           |   |                                    |   |   |                                       |   |   |                 |   |   |   |   |   |   |   |
| Construction and land                     |   | $                                       | 1,914  |   |                                       | $      | 650    |                 |   | $ | 2,044 |   |   | $ | 3, 958 |   |   | $ | 3,958 |   |
| Commercial Real Estate                    |   |                                    | 2,140  |   |                                       |   | 221    |                 |   |   | 1,013 |   |   |   | 3,153 |   |   |   | 3,153 |   |
| Residential one-to four-familyReal Estate |   |                                    | 1,480  |   |                                       |   | 67     |                 |   |   | 2,718 |   |   |   | 4,198 |   |   |   | 4,198 |   |
| Credit Card                               |   |                                    | 8      |   |                                       |   | 8      |                 |   |   | - |   |   |   | 8 |   |   |   | 8 |   |
| Total impaired loans                      |   | $                                       | 5,542  |   |                                       | $      | 946    |                 |   | $ | 5,775 |   |   | $ | 11,317 |   |   | $ | 11,317 |   |

|                                      |   | Impaired Loans With Specific Allowances |   |   | Impaired Loans With No Specific Allowances |   |   | Total Impaired Loans |   |
|-------------------------------------------|--------|-----------------------------------------|--------|--------|--------------------------------------------|--------|--------|----------------------|--------|
|                                      |   | Recorded Investment                     |   |   | Related Allowance                          |   |   | Recorded Investment  |   |   | Recorded Investment |   |   | Unpaid Principal Balance |   |
|                                      |   | (Dollars in thousands)                  |   |
| December 31, 2010:                        |   |                                    |   |   |                                       |   |   |                 |   |   |   |   |   |   |   |
| Construction and land                     |   | $                                       | 2,040  |   |                                       | $      | 627    |                 |   | $ | - |   |   | $ | 2, 040 |   |   | $ | 2,040 |   |
| Commercial Real Estate                    |   |                                    | 2,143  |   |                                       |   | 207    |                 |   |   | 1,013 |   |   |   | 3,156 |   |   |   | 3,156 |   |
| Residential one-to four-familyreal estate |   |                                    | 1,480  |   |                                       |   | 60     |                 |   |   | 2,321 |   |   |   | 3,801 |   |   |   | 3,801 |   |
| Credit Card                               |   |                                    | 4      |   |                                       |   | 4      |                 |   |   | - |   |   |   | 4 |   |   |   | 4 |   |
| Total impaired loans                      |   | $                                       | 5,667  |   |                                       | $      | 898    |                 |   | $ | 3,334 |   |   | $ | 9,001 |   |   | $ | 9,001 |   |

----

INDEX

|                                      |   | Average Recorded Investment |   |   | Interest Income Recorded |   |
|-------------------------------------------|--------|-----------------------------|--------|--------|--------------------------|--------|
|                                      |   | (Dollars in thousands)      |   |
|                                      |   |                        |   |   |                     |   |
| Construction and land                     |   | $                           | 1,937  |   |                     | $      | - |   |
| Commercial Real Estate                    |   |                        | 3,153  |   |                     |   | 9 |   |
| Residential one-to four-familyReal Estate |   |                        | 3,961  |   |                     |   | 8 |   |
| Credit Card                               |   |                        | 7      |   |                     |   | - |   |
| Total                                     |   | $                           | 9,057  |   |                     | $      | 17 |   |

----

INDEX

|                                                |   | Pass                   |   |   | Special Mention |   |   | Substandard |   |   | Doubtful |   |   | Total  |   |
|-----------------------------------------------------|--------|------------------------|--------|--------|-----------------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|
|                                                |   | (Dollars in thousands) |   |
| March 31, 2011:                                     |   |                   |   |   |            |   |   |        |   |   |     |   |   |   |   |
| Construction and land                               |   | $                      | 2,016  |   |            | $      | 1,393  |        |   | $      | 3,958    |   |   | $      | -      |   |   | $ | 7,367 |   |
| Commercial real estate                              |   |                   | 20,249 |   |            |   | -      |        |   |   | 3,153    |   |   |   | -      |   |   |   | 23,402 |   |
| Residential mortgage multifamily real estate        |   |                   | 5,854  |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 5,854 |   |
| Residential mortgage one-to four-family real estate |   |                   | 64,373 |   |            |   | 740    |        |   |   | 4,198    |   |   |   | -      |   |   |   | 69,310 |   |
| Unsecured business loan                             |   |                   | 40     |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 40 |   |
| Credit card                                         |   |                   | 38     |   |            |   | -      |        |   |   | 8        |   |   |   | -      |   |   |   | 46 |   |
| Home equity                                         |   |                   | 106    |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 106 |   |
| Passbook loan                                       |   |                   | 39     |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 39 |   |
| Total                                               |   | $                      | 92,713 |   |            | $      | 2,133  |        |   | $      | 11,317   |   |   | $      | -      |   |   | $ | 106,163 |   |

|                                                |   | Pass                   |   |   | Special Mention |   |   | Substandard |   |   | Doubtful |   |   | Total  |   |
|-----------------------------------------------------|--------|------------------------|--------|--------|-----------------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|
|                                                |   | (Dollars in thousands) |   |
| December 31, 2010:                                  |   |                   |   |   |            |   |   |        |   |   |     |   |   |   |   |
| Construction and land                               |   | $                      | 3,790  |   |            | $      | 2,355  |        |   | $      | 2,040    |   |   | $      | -      |   |   | $ | 8,185 |   |
| Commercial real estate                              |   |                   | 19,819 |   |            |   | -      |        |   |   | 3,156    |   |   |   | -      |   |   |   | 22,975 |   |
| Residential mortgage multifamily real estate        |   |                   | 5,890  |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 5,890 |   |
| Residential mortgage one-to four-family real estate |   |                   | 66,963 |   |            |   | 1,066  |        |   |   | 3,801    |   |   |   | -      |   |   |   | 71,830 |   |
| Unsecured business loan                             |   |                   | 20     |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 20 |   |
| Credit card                                         |   |                   | 43     |   |            |   | -      |        |   |   | 4        |   |   |   | -      |   |   |   | 47 |   |
| Home equity                                         |   |                   | 113    |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 113 |   |
| Passbook loan                                       |   |                   | 39     |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 39 |   |
| Total                                               |   | $                      | 96,677 |   |            | $      | 3,421  |        |   | $      | 9,001    |   |   | $      | -      |   |   | $ | 109,099 |   |

----

INDEX

|                                       |   | Current                |   |   | 30-59 Days Past Due |   |   | 60-89 Days Past Due |   |   | 90 Days or More Past Due |   |   | Total Past Due |   |   | Non-Accrual |   |   | Total Loans Receivable |   |
|--------------------------------------------|--------|------------------------|--------|--------|---------------------|--------|--------|---------------------|--------|--------|--------------------------|--------|--------|----------------|--------|--------|-------------|--------|--------|------------------------|--------|
|                                       |   | (Dollars in thousands) |   |
| March 31, 2011:                            |   |                   |   |   |                |   |   |                |   |   |                     |   |   |           |   |   |        |   |   |                   |   |
| Construction and land                      |   | $                      | 5,453  |   |                | $      | -      |                |   | $      | -                        |   |   | $              | 1,914  |   |        | $      | 1,914  |                   |   | $ | 1,914 |   |   | $ | 7,367 |   |
| Commercial real estate                     |   |                   | 20,804 |   |                |   | -      |                |   |   | -                        |   |   |           | 2,597  |   |        |   | 2,597  |                   |   |   | 2,597 |   |   |   | 23,402 |   |
| Unsecured Business Loan                    |   |                   | 40     |   |                |   | -      |                |   |   | -                        |   |   |           | -      |   |        |   | -      |                   |   |   | - |   |   |   | 40 |   |
| Residential Multi family Real Estate       |   |                   | 5,854  |   |                |   | -      |                |   |   | -                        |   |   |           | -      |   |        |   | -      |                   |   |   | - |   |   |   | 5,854 |   |
| Residential One-to four-family Real Estate |   |                   | 63,987 |   |                |   | 943    |                |   |   | 255                      |   |   |           | 4,126  |   |        |   | 5,323  |                   |   |   | 4,126 |   |   |   | 69,310 |   |
| Credit Card                                |   |                   | 35     |   |                |   | 2      |                |   |   | -                        |   |   |           | 8      |   |        |   | 10     |                   |   |   | 8 |   |   |   | 46 |   |
| Home Equity                                |   |                   | 93     |   |                |   | -      |                |   |   | 12                       |   |   |           | -      |   |        |   | 12     |                   |   |   | - |   |   |   | 106 |   |
| Passbook Loan                              |   |                   | 39     |   |                |   | -      |                |   |   | -                        |   |   |           | -      |   |        |   | -      |                   |   |   | - |   |   |   | 39 |   |
| Total                                      |   | $                      | 96,306 |   |                | $      | 945    |                |   | $      | 267                      |   |   | $              | 8,645  |   |        | $      | 9,857  |                   |   | $ | 8,645 |   |   | $ | 106,163 |   |

----

INDEX

|                                       |   | Current                |   |   | 30-59 Days Past Due |   |   | 60-89 Days Past Due |   |   | 90 Days or More Past Due |   |   | Total Past Due |   |   | Non-Accrual |   |   | Total Loans Receivable |   |
|--------------------------------------------|--------|------------------------|--------|--------|---------------------|--------|--------|---------------------|--------|--------|-------------------------------|--------|--------|----------------|--------|--------|-------------|--------|--------|------------------------|--------|
|                                       |   | (Dollars in thousands) |   |
| December 31, 2010:                         |   |                   |   |   |                |   |   |                |   |   |                          |   |   |           |   |   |        |   |   |                   |   |
| Construction and land                      |   | $                      | 6,144  |   |                | $      | -      |                |   | $      | -                             |   |   | $              | 2,041  |   |        | $      | 2,041  |                   |   | $ | 2,041 |   |   | $ | 8,185 |   |
| Commercial real estate                     |   |                   | 20,378 |   |                |   | -      |                |   |   | -                             |   |   |           | 2,597  |   |        |   | 2,597  |                   |   |   | 2,597 |   |   |   | 22,975 |   |
| Unsecured Business Loan                    |   |                   | 20     |   |                |   | -      |                |   |   | -                             |   |   |           | -      |   |        |   | -      |                   |   |   | - |   |   |   | 20 |   |
| Residential Multi family Real Estate       |   |                   | 5,890  |   |                |   | -      |                |   |   | -                             |   |   |           | -      |   |        |   | -      |                   |   |   | - |   |   |   | 5,890 |   |
| Residential One-to four-family Real Estate |   |                   | 65,985 |   |                |   | 1,912  |                |   |   | 132                           |   |   |           | 3,801  |   |        |   | 5,845  |                   |   |   | 3,801 |   |   |   | 71,830 |   |
| Credit Card                                |   |                   | 40     |   |                |   | -      |                |   |   | 3                             |   |   |           | 4      |   |        |   | 7      |                   |   |   | 4 |   |   |   | 47 |   |
| Home Equity                                |   |                   | 99     |   |                |   | -      |                |   |   | 14                            |   |   |           | -      |   |        |   | 14     |                   |   |   | - |   |   |   | 113 |   |
| Passbook Loan                              |   |                   | 39     |   |                |   | -      |                |   |   | -                             |   |   |           | -      |   |        |   | -      |                   |   |   | - |   |   |   | 39 |   |
| Total                                      |   | $                      | 98,595 |   |                | $      | 1,912  |                |   | $      | 149                           |   |   | $              | 8,443  |   |        | $      | 10,504 |                   |   | $ | 8,443 |   |   | $ | 109,099 |   |

|                                  |   | Three monthsEnded |     |
|---------------------------------------|--------|-------------------|----------|
|                                  |   | March 31,         |     |
|                                  |   | 2011              |     |   |   | 2010 |   |
|                                  |   |              |     |   |   |   |   |
| Service cost                          |   | $                 | -        |   |   | $ | - |   |
| Interest cost                         |   |              | 76,216   |   |   |   | 76,343 |   |
| Expected return on assets             |   |              | (123,220 | ) |   |   | (106,170 | ) |
| Amortization of unrecognized net loss |   |              | 60,678   |   |   |   | 57,401 |   |
| Net periodic benefit cost             |   | $                 | 13,674   |   |   | $ | 27,574 |   |

----

INDEX

|                                  |   | Three monthsended |   |
|---------------------------------------|--------|-------------------|--------|
|                                  |   | March31,          |   |
|                                  |   | 2011              |   |   | 2010 |   |
|                                  |   |              |   |   |   |   |
| Service cost                          |   | $                 | 5,499  |   |   | $ | 4,674 |   |
| Interest cost                         |   |              | 15,525 |   |   |   | 16,782 |   |
| Amortization of past service cost     |   |              | 5,278  |   |   |   | 5,278 |   |
| Amortization of unrecognized net loss |   |              | 705    |   |   |   | 433 |   |
| Net periodic benefit cost             |   | $                 | 27,007 |   |   | $ | 27,167 |   |

----

INDEX

|              |   |           |   |   | (Level 1)     |   |   |        |   |   |         |   |
|-------------------|--------|----------------|--------|--------|---------------|--------|--------|-------------|--------|--------|--------------|--------|
|              |   |           |   |   | Quoted Prices |   |   | (Level 2)   |   |   |         |   |
|              |   |           |   |   | in Active     |   |   | Significant |   |   | (Level 3)    |   |
|              |   |           |   |   | Markets for   |   |   | Other       |   |   | Significant  |   |
|              |   |           |   |   | Identical     |   |   | Observable  |   |   | Unobservable |   |
| Description       |   | Total          |   |   | Assets        |   |   | Inputs      |   |   | Inputs       |   |
|              |   | (In Thousands) |   |
| Impaired Loans:   |   |           |   |   |          |   |   |        |   |   |         |   |
|              |   |           |   |   |          |   |   |        |   |   |         |   |
| March 31, 2011    |   | $              | 4,596  |   |          | $      | -      |        |   | $      | -            |   |   | $ | 4,596 |   |
|              |   |           |   |   |          |   |   |        |   |   |         |   |   |   |   |   |
| December 31, 2010 |   | $              | 4,769  |   |          | $      | -      |        |   | $      | -            |   |   | $ | 4,769 |   |

----

INDEX

----

INDEX

|                                       |   | March 31,      |    |   | December 31,        |   |
|--------------------------------------------|--------|----------------|---------|--------|---------------------|--------|
|                                       |   | 2011           |    |   | 2010                |   |
|                                       |   | CarryingAmount |    |   | Estimated FairValue |   |   | CarryingAmount |   |   | Estimated FairValue |   |
|                                       |   | (In Thousands) |    |
|                                       |   |           |    |   |                |   |   |   |   |   |   |   |
| Financial assets:                          |   |           |    |   |                |   |   |   |   |   |   |   |
| Cash and cash equivalents                  |   | $              | 8,390   |   |                | $      | 8,390 |   |   | $ | 8,184 |   |   | $ | 8,184 |   |
| Mortgage-backed securities held tomaturity |   |           | 21,271  |   |                |   | 22,470 |   |   |   | 21,780 |   |   |   | 23,084 |   |
| FHLB stock                                 |   |           | 722     |   |                |   | 722 |   |   |   | 808 |   |   |   | 808 |   |
| Loans receivable                           |   |           | 104,281 |   |                |   | 109,303 |   |   |   | 106,478 |   |   |   | 112,166 |   |
| Accrued interest receivable                |   |           | 521     |   |                |   | 521 |   |   |   | 607 |   |   |   | 607 |   |
|                                       |   |           |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                     |   |           |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                   |   |           | 116,361 |   |                |   | 117,645 |   |   |   | 117,074 |   |   |   | 118,460 |   |
| Advances from FHLB                         |   |           | 10,129  |   |                |   | 10,246 |   |   |   | 12,043 |   |   |   | 12,209 |   |
| Accrued interest payable                   |   |           | 9       |   |                |   | 9 |   |   |   | 28 |   |   |   | 28 |   |

----

INDEX

----

INDEX

|   | 1. | The Purchaser is required 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”). |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The Transfer is to close (the “Closing”) five (5) days after the date the Subdivision has been approved and new tax lot numbers are assigned to Property C and the Retained Property. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The Purchaser is obligated to complete construction of and deliver to the Company a building containing a 3,000 square foot ground floor bank branch, a cellar, and three (3) additional floors of office space. In consideration of constructing the three (3) additional floors of office space, the Purchaser shall receive a credit at the Closing of $2,176,600. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | One of the principals of the Purchaser will personally guarantee the Purchaser’s obligation to deliver the bank branch and office building to Flatbush Federal. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM 

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INDEX

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INDEX

|                       |   | Actual |   |   | Minimal Capital Requirements |   |   | Under Prompt Corrective Actions Provisions |   |
|----------------------------|--------|--------|--------|--------|------------------------------|--------|--------|--------------------------------------------|--------|
|                       |   | Amount |   |   | Ratio                        |   |   | Amount                                     |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| March 31, 2011:            |   |   |   |   | (Dollars in Thousands)       |   |   |                                       |   |   |   |   |
| Total Capital              |   | $      | 17,547 |   |                         |   | 20.61  | %                                          |   | >$6,810 |   |   | >8.00% |   |   | >$8,512 |   |   | >10.00% |   |
| (to risk-weighted assets)  |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital             |   |   | 16,709 |   |                         |   | 19.63  | %                                          |   | > - |   |   | > - |   |   | >5,107 |   |   | > 6.00% |   |
| (to risk-weighted assets)  |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Core (Tier 1) Capital      |   |   | 16,793 |   |                         |   | 11.69  | %                                          |   | > 5,747 |   |   | >4.00% |   |   | >7,183 |   |   | > 5.00% |   |
| (to adjusted total assets) |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible Capital           |   |   | 16,793 |   |                         |   | 11.69  | %                                          |   | > 2,155 |   |   | >1.50% |   |   | >- |   |   | >- |   |
| (to adjusted total assets) |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                       |   | Actual |   |   | Minimal Capital Requirements |   |   | Under Prompt Corrective Actions Provisions |   |
|----------------------------|--------|--------|--------|--------|------------------------------|--------|--------|--------------------------------------------|--------|
|                       |   | Amount |   |   | Ratio                        |   |   | Amount                                     |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| December 31, 2010:         |   |   |   |   | (Dollars in Thousands)       |   |   |                                       |   |   |   |   |
| Total Capital              |   | $      | 17,377 |   |                         |   | 20.30  | %                                          |   | >$6,847 |   |   | >8.00% |   |   | >$8,558 |   |   | >10.00% |   |
| (to risk-weighted assets)  |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital             |   |   | 16,626 |   |                         |   | 19.43  | %                                          |   | > - |   |   | > - |   |   | >5,135 |   |   | > 6.00% |   |
| (to risk-weighted assets)  |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Core (Tier 1) Capital      |   |   | 16,710 |   |                         |   | 11.45  | %                                          |   | > 5,836 |   |   | >4.00% |   |   | >7,295 |   |   | > 5.00% |   |
| (to adjusted total assets) |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible Capital           |   |   | 16,710 |   |                         |   | 11.45  | %                                          |   | > 2,188 |   |   | >1.50% |   |   | >- |   |   | >- |   |
| (to adjusted total assets) |   |   |   |   |                         |   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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INDEX

| Change inInterest Rates(basis points) |   |         | Net Portfolio Value    |   |            | Net Portfolio Value as a Percentage of Present Value of Assets |   |
|---------------------------------------|--------|--------------|------------------------|--------|-----------------|----------------------------------------------------------------|--------|
|                                  |   | EstimatedNPV |                   |   | Amount ofChange |                                                           |   | Percent ofChange |   |   | NPV Ratio |   |   | Change in Basis Points |   |
|                                  |   |         | (Dollars in Thousands) |   |
| +300                                  |   |         | $                      | 13,581 |            |                                                           | $      | (9,095 | ) |   |   | (40 | %) |   |   | 9.50 | % |   |   | (522 | ) |
| +200                                  |   |         |                   | 17,056 |            |                                                           |   | (5,620 | ) |   |   | (25 | %) |   |   | 11.60 | % |   |   | (312 | ) |
| +100                                  |   |         |                   | 20,234 |            |                                                           |   | (2,442 | ) |   |   | ( 11 | %) |   |   | 13.41 | % |   |   | (131 | ) |
| + 50                                  |   |         |                   | 21,580 |            |                                                           |   | (1,096 | ) |   |   | ( 5 | %) |   |   | 14.14 | % |   |   | (58 | ) |
|     0                  |   |         |                   | 22,676 |            |                                                           |   | — |   |   |   | — |   |   |   | 14.72 | % |   |   | — |   |
| - 50                                  |   |         |                   | 23,501 |            |                                                           |   | 825 |   |   |   | 4 | % |   |   | 15.14 | % |   |   | 42 |   |
| -100                                  |   |         |                   | 24,296 |            |                                                           |   | 1,620 |   |   |   | 7 | % |   |   | 15.56 | % |   |   | 84 |   |

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INDEX

ITEM 

ITEM 

|   | (a) | Evaluation of disclosure controls and procedures. |
|--------|-----|---------------------------------------------------|

|   | (b) | Changes in Internal Controls over Financial Reporting. |
|--------|-----|--------------------------------------------------------|

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INDEX

ITEM 

ITEM 

ITEM 

| Company Purchases of Common Stock          |   |
|--------------------------------------------|--------|
| Period                                     |   | Total number of shares purchased |   |   | Average price paid per share |   |   | Total number of shares purchased as part of publicly announced plans or programs |   |   | Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs |   |
| January 1, 2011 through January 31, 2011   |   |   | - |   |   | $ | - |   |   |   | 12,750 |   |   |   | 37,250 |   |
| February 1, 2011 through February 28, 2011 |   |   | - |   |   |   | - |   |   |   | 12,750 |   |   |   | 37,250 |   |
| March 1, 2011 through March 31, 2011       |   |   | - |   |   |   | - |   |   |   | 12,750 |   |   |   | 37,250 |   |

ITEM 

ITEM 

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INDEX

ITEM 

|   | 3.1 | Federal Stock Charter of Flatbush Federal Bancorp, Inc.* |
|--------|-----|----------------------------------------------------------|

|   | 3.2 | Bylaws of Flatbush Federal Bancorp, Inc.* |
|--------|-----|-------------------------------------------|

|   | 4.0 | Form of common stock certificate of Flatbush Federal Bancorp, Inc. * |
|--------|-----|----------------------------------------------------------------------|

|   | 11.0 | Computation of earnings per share. |
|--------|------|------------------------------------|

|   | 31.1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
|--------|------|----------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes- Oxley Act of 2002 (filed herewith). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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INDEX

SIGNATURES

|                          |         |   | FLATBUSH FEDERAL BANCORP, INC. |
|-------------------------------|--------------|--------|--------------------------------|
|                          |         |   |                           |   |
|                          |         |   |                           |   |
| Date:     | May 16, 2011 |   | By:                            | /s/  Jesus R. Adia |
|                          |         |   |                           | Jesus R. Adia |
|                          |         |   |                           | President and |
|                          |         |   |                           | Chief Executive Officer |
|                          |         |   |                           |   |
|                          |         |   |                           |   |
|                          |         |   |                           |   |
| Date:     | May 16, 2011 |   | By:                            | /s/  John S. Lotardo |
|                          |         |   |                           | John S. Lotardo |
|                          |         |   |                           | Executive Vice President and Chief |
|                          |         |   |                           | Financial Officer |

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