EXHIBIT 99.1
PULASKI FINANCIAL REPORTS SIGNIFICANT INCREASE
IN FOURTH FISCAL QUARTER EARNINGS
| · | Diluted EPS was $0.25 for the fourth fiscal quarter of 2010 compared with $0.25 for the linked quarter and $0.02 for the prior-year quarter |
| · | Return on average assets and return on average common equity were 0.91% and 12.42%, respectively, for the quarter ended September 30, 2010; dividend payout ratio equaled 38% |
| · | Bank maintained “well-capitalized” regulatory status, with an estimated Tier 1 leverage capital ratio and an estimated total risk-based capital ratio of 9.02% and 12.40%, respectively, at September 30, 2010 |
| · | Provision for loan losses was $4.3 million for the quarter versus net charge-offs of $4.1 million compared with $4.5 million and $4.2 million, respectively, for the linked quarter and $6.5 million and $6.7 million, respectively, for the prior year quarter |
| · | Ratio of allowance to total loans increased to 2.52% at September 30, 2010 compared with 2.46% at June 30, 2010 and 1.79% at September 30, 2009 |
| · | Net interest income increased 6% over the linked quarter and 13% over the prior-year quarter on an improvement in the net interest margin and, for the linked quarter, an increase in average loans held for sale |
| · | Net interest margin increased 7 basis points over the linked quarter and 44 basis points over the prior-year quarter on decreased funding costs and growth in mortgage loans held for sale |
| · | Mortgage revenues were down 3% from the linked quarter and 28% from the prior-year quarter as loan origination and sales activity remained robust, but net sales margins were below the levels realized in prior-year periods |
ST. LOUIS, October 19, 2010 — Pulaski Financial Corp. (Nasdaq Global Select: PULB) today reported net income for the quarter ended September 30, 2010 of $3.2 million, or $0.25 per diluted common share, compared with a net income of $3.2 million, or $0.25 per diluted common share, for the quarter ended June 30, 2010 and net income of $723,000, or $0.02 per diluted common share, for the September 2009 quarter. Reducing income available to common shares were dividends and the related discount accretion on the Company’s preferred stock, issued in January 2009 as part of the U.S. Treasury’s TARP Capital Purchase Program, totaling $515,000, or $0.04 per diluted common share, in the quarter ended September 30, 2010, $515,000, or $0.05 per diluted common share in the quarter ended June 30, 2010, and $514,000, or $0.05 per diluted common share, in the quarter ended September 30, 2009. For the twelve-month periods, the Company reported net income of $3.3 million in 2010, which translated to $0.12 per diluted common share after deduction of preferred dividends, compared with net income of $5.1 million in 2009, or $0.37 per diluted common share after deduction of preferred dividends.
Gary Douglass, President and Chief Executive Officer commented, “We are pleased to report another quarter of solid earnings in the midst of difficult economic times. Our credit provisions remained elevated, but below the historically high levels we saw in prior periods, and we continue to be hopeful that we have seen the beginning of provision normalization. We also saw another quarter of net interest margin expansion driven by increased levels of mortgage loans held for sale and decreased funding costs. This performance again resulted in respectable and improving ratios of return on common equity, return on assets and dividend pay-out."
Net Interest Income Increased on Improved Net Interest Margin Combined with Growth in Average Mortgage Loans Held for Sale
Net interest income rose $709,000, or 6%, to $12.4 million for the quarter ended September 30, 2010 compared with $11.7 million for the quarter ended June 30, 2010 and rose $1.4 million, or 13%, compared with $11.0 million for the same period a year ago. For the twelve-month period, net interest income increased $5.1 million, or 12%, to $46.7 million. The increases were primarily the result of expansion in the net interest margin, which increased to 3.72% for the quarter ended September 30, 2010 compared with 3.65% for the quarter ended June 30, 2010 and 3.28% for the September 2009 quarter. For the twelve-month periods, the net interest margin was 3.54% in 2010 compared with 3.10% in 2009. The net interest margin benefitted from market-driven declines in the cost of deposits and wholesale borrowings and, f or the linked-quarter, growth in mortgage loans held for sale, which typically produce higher interest-rate spreads than other interest-earning assets held by the Company.
Mortgage Revenues Remain Robust, But Below Recent Highs
Non-interest income decreased 8% to $3.5 million for the quarter ended September 30, 2010 compared with $3.7 million for the quarter ended June 30, 2010, and decreased 16% compared with $4.1 million for the September 2009 quarter. For the twelve-month period, non-interest income decreased 23% to $15.0 million in 2010 compared with $19.6 million in 2009.
Mortgage revenues totaled $1.7 million on loan sales of $489 million for the quarter ended September 30, 2010 compared with $1.8 million on loan sales of $382 million for the quarter ended June 30, 2010, and $2.4 million on loan sales of $471 million for the September 2009 quarter. The net profit margin on loans sold was 0.35% for the quarter ended September 30, 2010 compared with 0.46% for the quarter ended June 30, 2010 and 0.51% for the September 30, 2009 quarter. The Company saw lower gross profit margins on loans sold during the September 2010 quarter as the result of a greater percentage of loan activity related to mortgage refinancings, which generally realize lower profit margins than home purchase activity; extended commitment periods for delivery of loans to the Company’s investors , resulting in lower sales margins; and increased variable costs on loans originated. In addition, the Company increased its reserve for amounts potentially due to the Company’s loan investors under guarantees related to loans that were previously sold and became delinquent or defaulted. For the year, mortgage revenues totaled $7.8 million on loan sales of $1.7 billion in 2010 compared with $12.7 million on loan sales of $2.0 billion in 2009.
Mortgage loans originated for sale totaled $612 million for the quarter ended September 30, 2010 compared with $456 million for the quarter ended June 30, 2010, and $405 million for the September 2009 quarter. For the twelve-month period, mortgage loans originated for sale totaled $1.9 billion in 2010 compared with $2.1 billion in 2009. Mortgage loans held for sale increased $92.5 million, or 57%, to $253.6 million at September 30, 2010 compared with $161.1 million at June 30, 2010.
Douglass noted, “Our mortgage division experienced another successful quarter of high loan origination and sales volumes resulting in yet another quarter of strong mortgage revenues. The historically-low levels of market interest rates continued to fuel demand for mortgage loan refinancings. As a result, we saw net profit margins decline during the quarter since refinancing activity generally produces lower profit margins than home purchase activity. In addition, like most other mortgage banking operations, the high level of activity created the need to extend our commitment times for delivery of loans to our investors, which also resulted in lower profit margins on loans sold. We finished the quarter with $254 million of mortgage loans held for sale at September 30, 2010, which will benef it our first fiscal quarter of 2011 when they are delivered to our investors and the related mortgage revenues are realized.”
Asset Quality
Primarily as the result of decreased net charge-offs, the provision for loan losses for the three months ended September 30, 2010 decreased to $4.3 million compared with $4.5 million for the quarter ended June 30, 2010 and $6.5 million for the September 2009 quarter. Net charge-offs for the quarter ended September 30, 2010 totaled $4.1 million, or 1.51% of average loans on an annualized basis, compared with $4.2 million, or 1.51% of average loans on an annualized basis, for the quarter ended June 30, 2010 and $6.7 million, or 2.29% of average loans on an annualized basis, for the September 2009 quarter. For the year, the provision for loan losses totaled $26.1 million versus net charge-offs of $19.7 million compared with $23.0 million and $15.2 million, respectively, in 2009.
Non-performing assets increased to $74.5 million at September 30, 2010 from $66.3 million at June 30, 2010. The increase was the result of a $9.5 million increase in non-accrual loans partially offset by a $1.1 million decrease in real estate acquired through foreclosure and a $193,000 decrease in troubled debt restructurings. During the September 2010 quarter, management placed loans to one of the Company’s largest commercial customers, totaling $14.7 million, on non-accrual status because of the borrower’s weakened financial condition. Management is actively working with the borrower, who has expressed a willingness to repay the loans.
Management continued its efforts to proactively modify loan repayment terms with residential borrowers who were experiencing financial difficulties in the current economic climate with the belief that these actions would maximize the Bank’s ultimate recoveries on these loans. The restructured terms of the loans generally included a reduction of the interest rates and the addition of past due interest to the principal balance of the loans. Many of these borrowers were current at the time of their modifications and showed strong intent and ability to repay their obligations under the modified terms. During the quarter ended September 30, 2010, the Company restructured approximately $4.7 million of loans to troubled residential borrowers and returned approximately $3.9 million of previously restructured residential loans to performing status as the result of the borrowers’ favorable performance history since restructuring. At September 30, 2010, $27.6 million, or 84% of total restructured loans, related to residential borrowers compared with $27.4 million, or 82% of total restructured loans, at June 30, 2010. At September 30, 2010, 70% of these residential borrowers were performing as agreed under the modified terms of the loans compared with 74% at June 30, 2010.
Douglass commented, “As you will recall, we cautioned our shareholders last quarter that, despite two consecutive quarters of non-performing asset declines, it was possible that there could be a temporary uptick in non-performing asset levels in future quarters as we continue to work through economic and portfolio issues with our borrowers. We saw an increase in non-performing assets this quarter as the result of one of our large commercial relationships being placed on non-accrual status. Despite the current quarter increase, our non-performing asset levels at September 30, 2010 still remain approximately $5 million, or 6%, below their peak levels at December 31, 2009. Accordingly, we continue to remain guardedly optimistic that we are at or near the peak of non-performing asset levels.”
The ratio of the allowance for loan losses to loans receivable increased to 2.52% at September 30, 2010 compared with 2.46% at June 30, 2010 and 1.79% at September 30, 2009. The ratio of the allowance for loan losses to non-performing loans decreased to 45.3% at September 30, 2010 compared with 53.3% at June 30, 2010 and 34.7% at September 30, 2009. The linked-quarter decrease in the non-performing coverage ratio was primarily due to the addition of the large commercial relationship to non-accrual loans. Management believes this coverage ratio is appropriate based on the mix of non-performing loans, specifically the large number of troubled debt restructurings that were performing under their restructured terms. Excluding restructured loans that were performing under their restructured term s and the related allowance for loan losses, the ratio of the allowance for loan losses to the remaining non-performing loans decreased to 75.5% at September 30, 2010 compared with108.9% at June 30, 2010 and 55.9% at September 30, 2009.
Real estate acquired in settlement of loans was $14.9 million at September 30, 2010 compared with $16.0 million at June 30, 2010. Real estate foreclosure losses and expense was $919,000 for the quarter ended September 30, 2010 compared with $550,000 for the quarter ended June 30, 2010 and $253,000 for the same quarter last year. Real estate foreclosure losses and expense includes realized losses on the final disposition of foreclosed properties, additional write-downs for declines in the fair market values of properties subsequent to foreclosure, and expenses incurred in connection with maintaining the properties until they are sold. Expense for the September 2010 quarter included an additional $400,000 write-down of an existing property due to a decline in its estimated value since its acquisition in a pr ior period.
Conclusion / Outlook
Douglass commented, “The general economic environment during the past year continued to present the banking industry with significant challenges. In the face of these challenges, we reported positive earnings for fiscal 2010, with a strong finish during the last half of the year. Looking forward to the first fiscal quarter of 2011, we expect another solid quarter that is reasonably comparable to the third and fourth quarters of fiscal 2010. For the full fiscal year of 2011, we expect substantial year-over-year earnings improvement compared to fiscal 2010. We anticipate that asset quality will continue to slowly but steadily improve resulting in a continuation of credit provision normalization, which should be the primary driver of meaningful earnings growth for the year.”
Conference Call Tomorrow
Pulaski Financial’s management will discuss fourth quarter results and other developments tomorrow, October 20, 2010, during a conference call beginning at 11 a.m. EDT (10 a.m. CDT). The call also will be simultaneously webcast and archived for three months at: http://www.snl.com/irweblinkx/corporateprofile.aspx?iid=4044240. Participants in the conference call may dial 877-473-3757 a few minutes before start time. The call also will be available for replay through November 3, 2010 at 800-642-1687 or 706-645-9291, conference ID 49925029.
About Pulaski Financial
Pulaski Financial Corp., operating in its 88th year through its subsidiary, Pulaski Bank, serves customers throughout the St. Louis and Kansas City metropolitan areas. The bank offers a full line of quality retail and commercial banking products through 12 full-service branch offices in the St. Louis metropolitan area and offers mortgage loan products through six loan production offices in the St. Louis and Kansas City metropolitan areas. 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 for the year ended September 30, 2009 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.
For Additional Information Contact:
Paul Milano
Chief Financial Officer
Pulaski Financial Corp.
(314) 878-2210 Ext. 3827
| PULASKI FINANCIAL CORP. |
| CONDENSED STATEMENTS OF INCOME |
| (Unaudited) |
| | |
| | (Dollars in thousands except per share data) |
| | |
| | Three Months Ended |
| | September 30, | | June 30, | | September 30, |
| | 2010 | | 2010 | | 2009 |
| Interest income | $ 16,299 | | $ 15,918 | | $ 16,855 |
| Interest expense | 3,892 | | 4,220 | | 5,826 |
| | | | | | |
| Net interest income | 12,407 | | 11,698 | | 11,029 |
| Provision for loan losses | 4,250 | | 4,500 | | 6,521 |
| | | | | | |
| Net interest income after provision for loan losses | 8,157 | | 7,198 | | 4,508 |
| | | | | | |
| Retail banking fees | 971 | | 1,005 | | 1,011 |
| Mortgage revenues | 1,706 | | 1,756 | | 2,384 |
| Investment brokerage revenues | 417 | | 610 | | 332 |
| Gain on sale of securities | - | | - | | 59 |
| Other | 359 | | 361 | | 337 |
| Total non-interest income | 3,453 | | 3,732 | | 4,123 |
| | | | | | |
| Compensation expense | 3,262 | | 3,153 | | 3,715 |
| Occupancy, equipment and data processing expense | 2,180 | | 2,090 | | 2,103 |
| Advertising | 189 | | 135 | | 307 |
| Professional services | 391 | | 290 | | 484 |
| Real estate foreclosure losses and expenses, net | 919 | | 550 | | 253 |
| FDIC deposit insurance premiums | 502 | | 493 | | 482 |
| Other | 727 | | 632 | | 768 |
| Total non-interest expense | 8,170 | | 7,343 | | 8,112 |
| | | | | | |
| Income before income taxes | 3,440 | | 3,587 | | 519 |
| Income tax expense (benefit) | 253 | | 410 | | (204) |
| Net income after tax | 3,187 | | 3,177 | | 723 |
| Preferred stock dividends | 515 | | 515 | | 514 |
| Earnings available for common shares | $ 2,672 | | $ 2,662 | | $ 209 |
| | | | | | |
| Annualized Performance Ratios | | | | | |
| Return on average assets | 0.91% | | 0.93% | | 0.20% |
| Return on average common equity | 12.42% | | 12.61% | | 0.94% |
| Interest rate spread | 3.54% | | 3.47% | | 3.04% |
| Net interest margin | 3.72% | | 3.65% | | 3.28% |
| | | | | | |
| SHARE DATA | | | | | |
| Weighted average shares outstanding - basic | 10,466,557 | | 10,418,153 | | 10,246,356 |
| Weighted average shares outstanding - diluted | 10,807,056 | | 10,622,155 | | 10,550,782 |
| Basic earnings per common share | $0.26 | | $0.26 | | $0.02 |
| Diluted earnings per common share | $0.25 | | $0.25 | | $0.02 |
| Dividends per common share | $0.095 | | $0.095 | | $0.095 |
| PULASKI FINANCIAL CORP. |
| CONDENSED STATEMENTS OF INCOME, Continued |
| (Unaudited) |
| | | | |
| | (Dollars in thousands except per share data) |
| | | | |
| | Twelve Months Ended September 30, |
| | 2010 | | 2009 |
| Interest income | $ 65,104 | | $ 67,823 |
| Interest expense | 18,392 | | 26,215 |
| | | | |
| Net interest income | 46,712 | | 41,608 |
| Provision for loan losses | 26,064 | | 23,031 |
| | | | |
| Net interest income after provision for loan losses | 20,648 | | 18,577 |
| | | | |
| Retail banking fees | 3,777 | | 3,893 |
| Mortgage revenues | 7,840 | | 12,684 |
| Investment brokerage revenues | 1,798 | | 1,337 |
| Gain on sale of securities | - | | 303 |
| Other | 1,605 | | 1,350 |
| Total non-interest income | 15,020 | | 19,567 |
| | | | |
| Compensation expense | 13,965 | | 14,270 |
| Occupancy, equipment and data processing expense | 8,289 | | 8,082 |
| Advertising | 566 | | 1,051 |
| Professional services | 1,748 | | 1,518 |
| Real estate foreclosure losses and expenses, net | 2,812 | | 1,318 |
| FDIC deposit insurance premiums | 1,980 | | 1,555 |
| FDIC special assessment | - | | 700 |
| Other | 2,756 | | 2,943 |
| Total non-interest expense | 32,116 | | 31,437 |
| | | | |
| Income before income taxes | 3,552 | | 6,707 |
| Income tax expense | 259 | | 1,630 |
| Net income after tax | 3,293 | | 5,077 |
| Preferred stock dividends | 2,060 | | 1,265 |
| Earnings available for common shares | $ 1,233 | | $ 3,812 |
| | | | |
| Annualized Performance Ratios | | | |
| Return on average assets | 0.24% | | 0.36% |
| Return on average common equity | 1.42% | | 4.36% |
| Interest rate spread | 3.34% | | 2.85% |
| Net interest margin | 3.54% | | 3.10% |
| | | | |
| SHARE DATA | | | |
| Weighted average shares outstanding - basic | 10,380,822 | | 10,178,681 |
| Weighted average shares outstanding - diluted | 10,626,919 | | 10,402,165 |
| Basic earnings per common share | $0.12 | | $0.37 |
| Diluted earnings per common share | $0.12 | | $0.37 |
| Dividends per common share | $0.380 | | $0.380 |
| PULASKI FINANCIAL CORP. |
| BALANCE SHEET DATA |
| (Unaudited) |
| | | | | | |
| | | | | | |
| | (Dollars in thousands) |
| | September 30, | | June 30, | | September 30, |
| | 2010 | | 2010 | | 2009 |
| Total assets | $ 1,452,158 | | $ 1,387,994 | | $ 1,406,426 |
| Loans receivable, net | 1,046,273 | | 1,067,465 | | 1,132,095 |
| Allowance for loan losses | 26,976 | | 26,821 | | 20,579 |
| Mortgage loans held for sale, net | 253,578 | | 161,078 | | 109,130 |
| Investment securities | 8,001 | | 5,096 | | 1,997 |
| FHLB stock | 9,774 | | 5,885 | | 11,650 |
| Mortgage-backed & related securities | 19,142 | | 22,666 | | 28,165 |
| Cash and cash equivalents | 15,603 | | 25,630 | | 37,451 |
| Deposits | 1,115,203 | | 1,145,963 | | 1,191,629 |
| FHLB advances | 181,000 | | 92,900 | | 61,000 |
| Subordinated debentures | 19,589 | | 19,589 | | 19,589 |
| Stockholders' equity - preferred | 31,088 | | 30,979 | | 30,655 |
| Stockholders' equity - common | 85,265 | | 83,144 | | 86,306 |
| Book value per common share | $7.87 | | $7.70 | | $8.31 |
| | | | | | |
| | September 30, | | June 30, | | September 30, |
| | 2010 | | 2010 | | 2009 |
| LOANS RECEIVABLE | | | | | |
| Real estate mortgage: | | | | | |
| Residential first mortgages | $ 243,650 | | $ 254,425 | | $ 248,799 |
| Residential second mortgages | 60,281 | | 64,937 | | 72,083 |
| Home equity lines of credit | 201,922 | | 209,351 | | 227,142 |
| Multi-family residential | 43,736 | | 44,666 | | 44,463 |
| Commercial real estate | 256,224 | | 258,260 | | 231,270 |
| Land acquisition and development | 74,790 | | 76,588 | | 80,259 |
| Total real estate mortgage | 880,603 | | 908,227 | | 904,016 |
| | | | | | |
| Real estate construction and development: | | | | | |
| One to four family residential | 8,127 | | 8,341 | | 19,664 |
| Multi-family residential | 3,876 | | 4,181 | | 6,864 |
| Commercial real estate | 19,068 | | 20,072 | | 59,430 |
| Total real estate construction and development | 31,071 | | 32,594 | | 85,958 |
| | | | | | |
| Commercial & industrial loans | 155,294 | | 146,205 | | 154,973 |
| Consumer and installment | 3,512 | | 3,803 | | 4,171 |
| | 1,070,480 | | 1,090,829 | | 1,149,118 |
| Add (less): | | | | | |
| Deferred loan costs | 3,884 | | 4,028 | | 4,369 |
| Loans in process | (1,115) | | (571) | | (813) |
| Allowance for loan losses | (26,976) | | (26,821) | | (20,579) |
| | (24,207) | | (23,364) | | (17,023) |
| Total | $ 1,046,273 | | $ 1,067,465 | | $ 1,132,095 |
| | | | | | |
| Weighted average rate at end of period | 5.34% | | 5.39% | | 5.33% |
| | September 30, 2010 | June 30, 2010 | September 30, 2009 |
| | | Weighted | | Weighted | | Weighted |
| | | Average | | Average | | Average |
| | | Interest | | Interest | | Interest |
| DEPOSITS | Balance | Rate | Balance | Rate | Balance | Rate |
| Demand Deposit Accounts: | | | | | | |
| Non-interest-bearing checking | $ 149,186 | 0.00% | $ 127,389 | 0.00% | $ 103,397 | 0.00% |
| Interest-bearing checking | 345,013 | 0.90% | 361,431 | 0.91% | 263,020 | 1.24% |
| Passbook savings accounts | 30,296 | 0.18% | 30,806 | 0.17% | 28,875 | 0.24% |
| Money market | 189,851 | 0.52% | 214,917 | 0.48% | 253,996 | 0.76% |
| Total demand deposit accounts | 714,346 | 0.58% | 734,543 | 0.59% | 649,288 | 0.81% |
| | | | | | | |
| Certificates of Deposit: | | | | | | |
| Retail | 328,394 | 2.20% | 330,422 | 2.34% | 348,717 | 2.63% |
| CDARS | 64,051 | 0.65% | 72,592 | 0.69% | 110,240 | 1.54% |
| Brokered | 8,412 | 5.23% | 8,406 | 5.23% | 83,384 | 2.67% |
| Total certificates of deposit | 400,857 | 2.02% | 411,420 | 2.10% | 542,341 | 2.42% |
| Total deposits | $ 1,115,203 | 1.09% | $ 1,145,963 | 1.14% | $ 1,191,629 | 1.54% |
| PULASKI FINANCIAL CORP. |
| NONPERFORMING ASSETS |
| (Unaudited) |
| | | | | | |
| | | (In thousands) | | |
| | | | | | |
| | September 30, | | June 30, | | September 30, |
| NONPERFORMING ASSETS | 2010 | | 2010 | | 2009 |
| Non-accrual loans: | | | | | |
| Residential real estate first mortgages | $ 6,727 | | $ 8,341 | | $ 7,093 |
| Residential real estate second mortgages | 1,522 | | 1,685 | | 629 |
| Home equity | 2,206 | | 2,995 | | 3,086 |
| Commercial and multi-family | 5,539 | | 2,104 | | 2,595 |
| Land acquisition and development | 8,796 | | 769 | | 2,193 |
| Real estate-construction and development | 1,189 | | 876 | | 7,455 |
| Commercial and industrial | 417 | | 151 | | 703 |
| Consumer and other | 100 | | 113 | | 220 |
| Total non-accrual loans | 26,496 | | 17,034 | | 23,974 |
| | | | | | |
| Accruing loans past due 90 days or more: | | | | | |
| Residential real estate first mortgages | - | | - | | 1 |
| Residential real estate second mortgages | - | | - | | 27 |
| Home equity | - | | - | | 43 |
| Land acquisition and development | - | | - | | 316 |
| Total accruing loans past due 90 days or more | - | | - | | 387 |
| | | | | | |
Troubled debt restructured: (1) | | | | | |
| Current under the restructured terms: | | | | | |
| Residential real estate first mortgages | 16,093 | | 17,321 | | 17,785 |
| Residential real estate second mortgages | 2,186 | | 1,620 | | 2,062 |
| Home equity | 1,050 | | 1,422 | | 1,695 |
| Commercial and multi-family | 184 | | 165 | | - |
| Land acquisition and development | 426 | | 121 | | 107 |
| Real estate-construction and development | 3,306 | | 3,578 | | 100 |
| Commercial and industrial | 1,355 | | 1,856 | | 787 |
| Consumer and other | 83 | | 85 | | 93 |
| Total current restructured loans | 24,683 | | 26,168 | | 22,629 |
| Past due greater than 30 days under restructured terms: | | | | | |
| Residential real estate first mortgages | 7,251 | | 5,278 | | 2,788 |
| Residential real estate second mortgages | 339 | | 1,249 | | 746 |
| Home equity | 728 | | 464 | | 150 |
| Commercial and multi-family | - | | - | | 7,831 |
| Land acquisition and development | 65 | | - | | 57 |
| Real estate-construction and development | - | | 100 | | - |
| Commercial and industrial | - | | - | | 777 |
| Total past due restructured loans | 8,383 | | 7,091 | | 12,349 |
| Total restructured loans | 33,066 | | 33,259 | | 34,978 |
| Total non-performing loans | 59,562 | | 50,293 | | 59,339 |
| Real estate acquired in settlement of loans: | | | | | |
| Residential real estate | 3,632 | | 4,038 | | 3,386 |
| Commercial real estate | 11,268 | | 12,002 | | 5,068 |
| Total real estate acquired in settlement of loans | 14,900 | | 16,040 | | 8,454 |
| Total non-performing assets | $ 74,462 | | $ 66,333 | | $ 67,793 |
| (1) | Troubled debt restructured includes non-accrual loans totaling $32.9 million, $33.2 million and $27.7 million at September 30, 2010, June 30, 2010 and September 30, 2009, respectively. These totals are not included in non-accrual loans above. |
| PULASKI FINANCIAL CORP. |
| ALLOWANCE FOR LOAN LOSSES AND ASSET QUALITY RATIOS |
| (Unaudited) |
| | | | | | | | |
| | (Dollars in thousands) |
| | | | | | | | |
| | Three Months | | Twelve Months |
| | Ended September 30, | | Ended September 30, |
| ALLOWANCE FOR LOAN LOSSES | 2010 | | 2009 | | 2010 | | 2009 |
| Allowance for loan losses, beginning of period | $ 26,821 | | $ 20,743 | | $ 20,579 | | $ 12,762 |
| Provision charged to expense | 4,250 | | 6,521 | | 26,064 | | 23,031 |
| (Charge-offs) recoveries, net: | | | | | | | |
| Residential real estate first mortgages | (719) | | (678) | | (3,390) | | (3,762) |
| Residential real estate second mortgages | (1,070) | | (563) | | (2,024) | | (1,431) |
| Home equity | (1,901) | | (860) | | (4,142) | | (2,653) |
| Commercial and multi-family | 28 | | (51) | | (4,236) | | (36) |
| Land acquisition & development | - | | (2,394) | | (1,145) | | (4,231) |
| Real estate-construction and development | (74) | | (1,951) | | (2,249) | | (2,425) |
| Commercial and industrial | (330) | | (147) | | (2,316) | | (530) |
| Consumer and other | (29) | | (41) | | (165) | | (146) |
| Total loans charged off, net | (4,095) | | (6,685) | | (19,667) | | (15,214) |
| Allowance for loan losses, end of period | $ 26,976 | | $ 20,579 | | $ 26,976 | | $ 20,579 |
| | September 30, | | June 30, | | September 30, |
| ASSET QUALITY RATIOS | 2010 | | 2010 | | 2009 |
| Nonperforming loans as a percent of total loans | 5.56% | | 4.61% | | 5.16% |
| Nonperforming loans excluding current troubled debt | | | | |
| restructurings as a percent of total loans | 3.26% | | 2.21% | | 3.19% |
| Nonperforming assets as a percent of total assets | 5.13% | | 4.78% | | 4.82% |
| Nonperforming assets excluding current troubled debt | | | | |
| restructurings as a percent of total assets | 3.43% | | 2.89% | | 3.21% |
| Allowance for loan losses as a percent of total loans | 2.52% | | 2.46% | | 1.79% |
| Allowance for loan losses as a percent | | | | | |
| of nonperforming loans | 45.29% | | 53.33% | | 34.68% |
| Allowance for loan losses as a percent of | | | | | |
| nonperforming loans excluding current troubled debt | | | | |
| restructurings and related allowance for loan losses | 75.47% | | 108.89% | | 55.94% |
| PULASKI FINANCIAL CORP. |
| AVERAGE BALANCE SHEETS |
| (Unaudited) |
| | | | | | | | |
| | (Dollars in thousands) |
| | | | | | | | |
| | Three Months Ended |
| | September 30, 2010 | | September 30, 2009 |
| | | Interest | Average | | | Interest | Average |
| | Average | and | Yield/ | | Average | and | Yield/ |
| | Balance | Dividends | Cost | | Balance | Dividends | Cost |
| Interest-earning assets: | | | | | | | |
| Loans receivable | $ 1,083,333 | $ 13,961 | 5.15% | | $ 1,167,042 | $ 15,169 | 5.20% |
| Mortgage loans held for sale | 196,123 | 2,109 | 4.30% | | 101,746 | 1,298 | 5.10% |
| Other interest-earning assets | 53,427 | 229 | 1.71% | | 76,458 | 388 | 2.03% |
| Total interest-earning assets | 1,332,883 | 16,299 | 4.89% | | 1,345,246 | 16,855 | 5.01% |
| Noninterest-earning assets | 71,300 | | | | 67,412 | | |
| Total assets | $ 1,404,183 | | | | $ 1,412,658 | | |
| | | | | | | | |
| Interest-bearing liabilities: | | | | | | | |
| Deposits | $ 983,163 | $ 3,416 | 1.39% | | $ 1,077,354 | $ 5,080 | 1.89% |
| Borrowed money | 167,856 | 476 | 1.13% | | 107,014 | 746 | 2.79% |
| Total interest-bearing liabilities | 1,151,019 | 3,892 | 1.35% | | 1,184,368 | 5,826 | 1.97% |
| Noninterest-bearing deposits | 120,486 | | | | 94,217 | | |
| Noninterest-bearing liabilities | 15,624 | | | | 14,442 | | |
| Stockholders' equity | 117,054 | | | | 119,631 | | |
| Total liabilities and stockholders' equity | $ 1,404,183 | | | | $ 1,412,658 | | |
| Net interest income | | $ 12,407 | | | | $ 11,029 | |
| Interest rate spread | | | 3.54% | | | | 3.04% |
| Net interest margin | | | 3.72% | | | | 3.28% |
| | Twelve Months Ended |
| | September 30, 2010 | | September 30, 2009 |
| | | Interest | Average | | | Interest | Average |
| | Average | and | Yield/ | | Average | and | Yield/ |
| | Balance | Dividends | Cost | | Balance | Dividends | Cost |
| Interest-earning assets: | | | | | | | |
| Loans receivable | $ 1,117,273 | $ 57,690 | 5.16% | | $ 1,160,137 | $ 60,481 | 5.21% |
| Mortgage loans held for sale | 136,919 | 6,259 | 4.57% | | 119,770 | 5,768 | 4.82% |
| Other interest-earning assets | 64,637 | 1,155 | 1.79% | | 62,729 | 1,574 | 2.51% |
| Total interest-earning assets | 1,318,829 | 65,104 | 4.94% | | 1,342,636 | 67,823 | 5.05% |
| Noninterest-earning assets | 73,592 | | | | 70,829 | | |
| Total assets | $ 1,392,421 | | | | $ 1,413,465 | | |
| | | | | | | | |
| Interest-bearing liabilities: | | | | | | | |
| Deposits | $ 1,036,088 | $ 16,134 | 1.56% | | $ 976,735 | $ 21,516 | 2.20% |
| Borrowed money | 116,623 | 2,258 | 1.94% | | 213,891 | 4,699 | 2.20% |
| Total interest-bearing liabilities | 1,152,711 | 18,392 | 1.60% | | 1,190,626 | 26,215 | 2.20% |
| Noninterest-bearing deposits | 108,188 | | | | 99,127 | | |
| Noninterest-bearing liabilities | 13,763 | | | | 14,286 | | |
| Stockholders' equity | 117,759 | | | | 109,426 | | |
| Total liabilities and stockholders' equity | $ 1,392,421 | | | | $ 1,413,465 | | |
| Net interest income | | $ 46,712 | | | | $ 41,608 | |
| Interest rate spread | | | 3.34% | | | | 2.85% |
| Net interest margin | | | 3.54% | | | | 3.10% |
| | | | | | | | |
| |
