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
Pulaski Financial Reports a $5.2 Million After-Tax Loss on Sale of Fannie Mae Preferred Stock; Has Been and Expects to Remain "Well-Capitalized"
| Source: Pulaski Financial Corp.
ST. LOUIS, MO--(Marketwire - September 9, 2008) - Pulaski Financial Corp. (NASDAQ : PULB ) (the
"Company") announced today that it sold its entire portfolio of Fannie Mae
preferred stock at an after-tax loss of $5.2 million, or $0.51 per diluted
share. In its Form 10-Q for the quarter ended June 30, 2008, the Company
disclosed that it held 350,000 shares of Fannie Mae 8.25% Series S
fixed-rate preferred stock, classified as available for sale, with a total
amortized cost of $8.9 million and a total market value of $8.0 million.
Management determined that the decline in value at June 30, 2008 was not
other than temporary. However, since June 30, 2008, the estimated fair
market value of these securities has declined significantly. The
announcement on September 7, 2008 that the Treasury Department was placing
Fannie Mae into conservatorship and eliminating dividends on its common and
preferred securities caused the market value of these securities to fall to
minimal levels. Management determined these securities no longer met the
Company's investment criteria.
Management expects that the capital ratios of the Company's subsidiary bank
(Pulaski Bank) will remain above the amounts necessary to be categorized as
"well-capitalized" under current regulatory requirements at September 30,
2008.
Pulaski Financial Corp., operating in its 86th year through its subsidiary,
Pulaski Bank, serves customers throughout the St. Louis metropolitan area.
The bank offers a full line of quality retail and commercial banking
products through twelve full-service branch offices in St. Louis and three
loan production offices. The company's website can be accessed at
www.pulaskibankstl.com.
This news release may contain forward-looking statements about Pulaski
Financial Corp., which the Company intends to be covered under the safe
harbor provisions contained in the Private Securities Litigation Reform Act
of 1995. Statements that are not historical or current facts, including
statements about beliefs and expectations, are forward-looking statements.
These forward-looking statements cover, among other things, anticipated
future revenue and expenses and the future plans and prospects of the
Company. These statements often include the words "may," "could," "would,"
"should," "believes," "expects," "anticipates," "estimates," "intends,"
"plans," "targets," "potentially," "probably," "projects," "outlook" or
similar expressions. You are cautioned that forward-looking statements
involve uncertainties, and important factors could cause actual results to
differ materially from those anticipated, including changes in general
business and economic conditions, changes in interest rates, legal and
regulatory developments, increased competition from both banks and
non-banks, changes in customer behavior and preferences, and effects of
critical accounting policies and judgments. For discussion of these and
other risks that may cause actual results to differ from expectations,
refer to our Annual Report on Form 10-K and our Quarterly Reports on Form
10-Q on file with the SEC, including the sections entitled "Risk Factors."
These risks and uncertainties should be considered in evaluating
forward-looking statements and undue reliance should not be placed on such
statements. Forward-looking statements speak only as of the date they are
made, and the Company undertakes no obligation to update them in light of
new information or future events.