-- Net income for quarter totals $1.7 million compared with $2.0 million
a year ago; Includes $989,000 in after-tax charges for separation payments
and other expenses related to resignation of former chief executive officer
-- Diluted earnings per share of $0.16 for quarter compared with $0.19
last year; Separation-related charges total $0.10 per diluted share
-- Net interest income up 31% for quarter and 26% for year on strong
growth in average loans and core deposits; Net interest margin expands to
3.23%
-- Core deposits increase 7% on growth in retail checking account
balances; Retail banking fees up 5% for quarter and 19% for year
-- Mortgage revenues up 18% for year on widened gross sales margins
-- Provision for loan losses totals $2.1 million for quarter versus net
charge-offs of $1.3 million resulting in reserve build of $800,000 and
ratio of allowance to total loans of 1.04%
-- Bank maintains "well-capitalized" status including 8.29% Tier 1
leverage capital ratio at June 30, 2008
Pulaski Financial Corp. (
PULASKI FINANCIAL CORP.
UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS
SELECTED BALANCE SHEET
DATA
(Dollars in thousands June 30, March 31, September 30,
except per share data) 2008 2008 2007
=========== =========== ===========
Total assets $ 1,290,589 $ 1,259,708 $ 1,131,465
Loans receivable, net 1,060,131 1,035,457 949,826
Allowance for loan
losses 11,909 11,116 10,421
Loans held for sale,
net 78,370 80,301 58,536
Investment securities
(includes equity
securities) 13,089 28,720 16,988
FHLB stock 11,761 13,519 8,306
Mortgage-backed &
related securities 18,992 2,878 3,027
Cash and cash
equivalents 33,591 22,774 23,774
Deposits 833,363 855,762 835,489
FHLB advances 223,000 265,000 158,400
Federal Reserve
borrowings 95,000 - -
Subordinated debentures 19,589 19,589 19,589
Stockholders' equity 86,340 85,147 80,804
Book value per share $ 8.47 $ 8.44 $ 8.13
Asset Quality Ratios
Nonperforming loans as
a percent of total
loans 1.40% 1.16% 1.03%
Nonperforming assets as
a percent of total
assets 1.62% 1.57% 1.20%
Allowance for loan
losses as a percent of
total loans 1.04% 0.99% 1.02%
Allowance for loan
losses as a percent of
nonperforming loans 74.00% 84.85% 99.44%
Three Months Nine Months
SELECTED OPERATING DATA Ended June 30, Ended June 30,
======================== ========================
(Dollars in thousands) 2008 2007 2008 2007
=========== =========== =========== ===========
Interest income $ 17,677 $ 18,267 $ 56,036 $ 51,604
Interest expense 8,169 11,001 29,462 30,451
----------- ----------- ----------- -----------
Net interest income 9,508 7,266 26,574 21,153
Provision for loan
losses 2,141 1,911 4,902 3,167
----------- ----------- ----------- -----------
Net interest income
after provision
for loan losses 7,367 5,355 21,672 17,986
----------- ----------- ----------- -----------
Retail banking fees 961 919 2,921 2,456
Mortgage revenues 1,856 2,010 5,301 4,490
Revenue from investment
division operations 266 159 837 534
Gain on sale of
securities 8 - 325 144
Other 423 292 1,374 1,297
----------- ----------- ----------- -----------
Total non-interest
income 3,514 3,380 10,758 8,921
----------- ----------- ----------- -----------
Compensation expense 4,511 2,813 10,731 8,263
Occupancy, equipment
and data processing 1,768 1,454 5,221 4,136
Advertising 293 394 927 1,013
Professional services 435 318 1,143 979
Real estate foreclosure
losses and expenses,
net 677 143 1,061 463
Gain on derivative
financial instruments (266) (131) (331) (445)
Other 1,119 785 3,404 2,516
----------- ----------- ----------- -----------
Total non-interest
expense 8,537 5,776 22,156 16,925
----------- ----------- ----------- -----------
Income before income
taxes 2,344 2,959 10,274 9,982
Income taxes 685 975 3,334 3,308
----------- ----------- ----------- -----------
Net income $ 1,659 $ 1,984 $ 6,940 $ 6,674
=========== =========== =========== ===========
Performance Ratios
Return on average
assets 0.53% 0.73% 0.76% 0.87%
Return on average
equity 7.60% 9.75% 10.75% 11.28%
Interest rate spread 3.01% 2.53% 2.81% 2.61%
Net interest margin 3.23% 2.87% 3.10% 2.96%
SHARE DATA
Weighted average shares
outstanding-basic 9,983,506 9,825,886 9,872,309 9,826,523
Weighted average shares
outstanding-diluted 10,271,469 10,266,592 10,222,348 10,267,007
EPS-basic $ 0.17 $ 0.20 $ 0.70 $ 0.68
EPS-diluted $ 0.16 $ 0.19 $ 0.68 $ 0.65
Dividends $ 0.095 $ 0.090 $ 0.275 $ 0.260
PULASKI FINANCIAL CORP.
UNAUDITED CONSOLIDATED FINANCIAL HIGHLIGHTS, Continued
LOANS RECEIVABLE June 30, March 31, September30,
(Dollars in thousands) 2008 2008 2007
=========== =========== ===========
Real estate mortgage:
One to four family residential $ 323,093 $ 323,942 $ 332,206
Multi-family residential 32,848 33,666 30,219
Commercial real estate 255,410 242,226 200,206
----------- ----------- -----------
Total real estate mortgage 611,351 599,834 562,631
----------- ----------- -----------
Real estate construction and
development:
One to four family residential 42,959 46,825 45,428
Multi-family residential 15,409 13,870 13,899
Commercial real estate 44,626 47,695 39,594
----------- ----------- -----------
Total real estate construction
and development 102,994 108,390 98,921
----------- ----------- -----------
Commercial & Industrial loans 130,815 111,474 77,642
Equity line of credit 224,221 222,844 219,539
Consumer and installment 6,965 7,314 6,918
----------- ----------- -----------
1,076,346 1,049,856 965,651
----------- ----------- -----------
Add (less):
Deferred loan costs 5,193 5,145 5,163
Loans in process (9,499) (8,428) (10,567)
Allowance for loan losses (11,909) (11,116) (10,421)
----------- ----------- -----------
(16,215) (14,399) (15,825)
----------- ----------- -----------
Total $ 1,060,131 $ 1,035,457 $ 949,826
=========== =========== ===========
Weighted average rate at end of
period 6.11% 6.38% 7.44%
=========== =========== ===========
June 30, 2008 March 31, 2008 September 30, 2007
------------------ ------------------ ------------------
DEPOSITS Weighted Weighted Weighted
(Dollars in Average Average Average
thousands) Interest Interest Interest
Balance Rate Balance Rate Balance Rate
========= ======== ========= ======== ========= ========
Demand Deposit
Accounts:
Noninterest-
bearing
checking $ 69,603 0.00% $ 63,962 0.00% $ 57,005 0.00%
Interest-
bearing
checking 139,865 2.14% 93,264 1.38% 57,815 1.79%
Money market 174,412 2.21% 198,609 2.33% 173,950 4.05%
Passbook
savings
accounts 27,241 0.30% 28,343 0.28% 28,909 0.29%
--------- --------- ---------
Total
demand
deposit
accounts 411,121 1.69% 384,178 1.56% 317,679 2.57%
--------- --------- ---------
Certificates of
Deposit: (1)
$100,000 or
less 221,285 3.39% 222,462 4.07% 239,401 5.45%
Greater than
$100,000 200,957 3.75% 249,122 4.28% 278,409 4.73%
--------- --------- ---------
Total
certificates
of deposit 422,242 3.56% 471,584 4.18% 517,810 5.06%
--------- --------- ---------
Total
deposits $ 833,363 2.64% $ 855,762 3.01% $ 835,489 4.11%
========= ========= =========
(1) Includes
brokered
deposits $ 108,407 $ 157,760 $ 190,445
========= ========= =========
PULASKI FINANCIAL CORP.
NONPERFORMING ASSETS AND ALLOWANCE FOR LOAN LOSSES
(Unaudited)
NONPERFORMING ASSETS June 30, March 31, September 30,
(In thousands) 2008 2008 2007
============ ============ =============
Non-accrual loans:
Residential real estate $ 2,725 $ 2,732 $ 2,082
Commercial and multi-family 1,133 1,152 3,708
Real estate-construction and
development 218 439 -
Commercial and industrial 240 240 -
Home equity 948 726 554
Other 93 186 105
------------ ------------ -------------
Total non-accrual loans 5,357 5,475 6,449
------------ ------------ -------------
Accruing loans past due 90 days
or more:
Residential real estate 2,809 3,193 2,564
Commercial and multi-family 553 457 44
Real estate-construction and
development 953 - -
Home equity 1,301 1,955 1,064
Other 46 5 150
------------ ------------ -------------
Total accruing loans past
due 90 days or more 5,662 5,610 3,822
------------ ------------ -------------
Restructured loans 5,076 2,016 209
------------ ------------ -------------
Total non-performing
loans 16,095 13,101 10,480
Real estate acquired in
settlement of loans 4,779 6,620 3,090
Other nonperforming assets 43 43 43
------------ ------------ -------------
Total non-performing
assets $ 20,917 $ 19,764 $ 13,613
============ ============ =============
ALLOWANCE FOR LOAN LOSSES Nine Months Ended June 30,
==========================
(In thousands) 2008 2007
============ ============
Allowance for loan losses,
beginning of period $ 10,421 $ 7,817
Provision charged to expense 4,902 3,167
Loans charged-off (3,530) (1,011)
Recoveries of loans previously
charged-off 116 26
------------ ------------
Allowance for loan losses, end of
period $ 11,909 $ 9,999
============ ============
PULASKI FINANCIAL CORP.
AVERAGE BALANCE SHEETS
(Unaudited)
Three Months Ended
========================================
June 30, 2008
========================================
Interest Average
(Dollars in thousands) Average and Yield/
Balance Dividends Cost
------------- ------------- ------------
Interest-earning assets:
Loans receivable $ 1,052,809 $ 16,045 6.10%
Loans available for sale 68,290 950 5.57%
Other interest-earning assets 56,574 682 4.82%
------------- -------------
Total interest-earning
assets 1,177,673 17,677 6.00%
-------------
Noninterest-earning assets 85,238
-------------
Total assets $ 1,262,911
=============
Interest-bearing liabilities:
Deposits $ 748,327 $ 5,664 3.03%
Borrowed money 344,765 2,505 2.91%
------------- -------------
Total interest-bearing
liabilities 1,093,092 8,169 2.99%
-------------
Noninterest-bearing deposits 63,872
Noninterest-bearing liabilities 18,590
Stockholders' equity 87,357
-------------
Total liabilities and
stockholders' equity $ 1,262,911
=============
Net interest income $ 9,508
=============
Interest rate spread 3.01%
Net interest margin 3.23%
========================================
June 30, 2007
========================================
Interest Average
(Dollars in thousands) Average and Yield/
Balance Dividends Cost
------------- ------------- ------------
Interest-earning assets:
Loans receivable $ 894,769 $ 16,483 7.37%
Loans available for sale 82,297 1,311 6.37%
Other interest-earning assets 36,474 473 5.19%
------------- -------------
Total interest-earning
assets 1,013,540 18,267 7.21%
-------------
Noninterest-earning assets 79,619
-------------
Total assets $ 1,093,159
=============
Interest-bearing liabilities:
Deposits $ 744,868 $ 8,293 4.45%
Borrowed money 196,223 2,708 5.52%
------------- -------------
Total interest-bearing
liabilities 941,091 11,001 4.68%
-------------
Noninterest-bearing deposits 48,208
Noninterest-bearing liabilities 22,458
Stockholders' equity 81,402
-------------
Total liabilities and
stockholders' equity $ 1,093,159
=============
Net interest income $ 7,266
=============
Interest rate spread 2.53%
Net interest margin 2.87%
Nine Months Ended
========================================
June 30, 2008
========================================
Interest Average
(Dollars in thousands) Average and Yield/
Balance Dividends Cost
------------- ------------- ------------
Interest-earning assets:
Loans receivable $ 1,029,470 $ 51,645 6.69%
Loans available for sale 66,945 2,694 5.37%
Other interest-earning assets 47,218 1,696 4.79%
------------- -------------
Total interest-earning
assets 1,143,633 56,035 6.53%
-------------
Noninterest-earning assets 80,874
-------------
Total assets $ 1,224,507
=============
Interest-bearing liabilities:
Deposits $ 776,278 $ 21,532 3.70%
Borrowed money 280,776 7,930 3.77%
------------- -------------
Total interest-bearing
liabilities 1,057,054 29,462 3.72%
-------------
Noninterest-bearing deposits 61,730
Noninterest-bearing liabilities 19,656
Stockholders' equity 86,067
-------------
Total liabilities and
stockholders' equity $ 1,224,507
=============
Net interest income $ 26,573
=============
Interest rate spread 2.81%
Net interest margin 3.10%
========================================
June 30, 2007
========================================
Interest Average
(Dollars in thousands) Average and Yield/
Balance Dividends Cost
------------- ------------- ------------
Interest-earning assets:
Loans receivable $ 854,568 $ 47,383 7.39%
Loans available for sale 63,072 2,900 6.13%
Other interest-earning assets 36,652 1,320 4.80%
------------- -------------
Total interest-earning
assets 954,292 51,603 7.21%
-------------
Noninterest-earning assets 73,643
-------------
Total assets $ 1,027,935
=============
Interest-bearing liabilities:
Deposits $ 692,786 $ 22,613 4.35%
Borrowed money 190,678 7,837 5.48%
------------- -------------
Total interest-bearing
liabilities 883,464 30,450 4.60%
-------------
Noninterest-bearing deposits 46,097
Noninterest-bearing liabilities 19,492
Stockholders' equity 78,882
-------------
Total liabilities and
stockholders' equity $ 1,027,935
=============
Net interest income $ 21,153
=============
Interest rate spread 2.61%
Net interest margin 2.96%
Contact Information: For Additional Information Contact: Ramsey Hamadi Chief Financial Officer Pulaski Financial Corp. (314) 878-2210 Ext. 3825 Dave Garino or Dan Callahan Fleishman-Hillard, Inc. (314) 982-0551