Exhibit 99.1
PULASKI FINANCIAL REPORTS SECOND FISCAL QUARTER EARNINGS
· Diluted EPS was $0.05 for the second fiscal quarter of 2011 compared with a net loss of $0.47 for the prior year quarter and earnings of $0.24 for the linked quarter
· Net income up from prior year quarter on lower credit costs but down from linked quarter on declines in net interest income and mortgage banking revenues resulting from decreased loan origination and sales activity and lower realized profit margins
· Bank’s regulatory capital position continued to strengthen, with estimated Tier 1 leverage and total risk-based capital ratios of 10.01% and 13.52%, respectively, at March 31, 2011
· Non-performing assets remained flat, totaling $77.8 million at March 31, 2011 compared with $78.0 million at December 31, 2010
· Net interest income increased 4% over the prior year quarter on an improvement in the net interest margin but decreased 14% from the record levels experienced in the linked quarter on a decrease in average mortgage loans held for sale
· Net interest margin increased 28 basis points over the prior year quarter on lower funding costs but decreased 12 basis points from the record high in the linked quarter on a decrease in average mortgage loans held for sale
· Mortgage revenues decreased 49% from the prior year quarter and 54% over the linked quarter on decreased loan origination and sales activity and lower realized profit margins
· Provision for loan losses of $3.5 million for the quarter versus net charge-offs of $4.1 million compared favorably with $4.3 million and $4.0 million, respectively, for the linked quarter and showed significant improvement from $11.2 million and $7.7 million, respectively, for the prior year quarter
ST. LOUIS, April 19, 2011 — Pulaski Financial Corp. (Nasdaq Global Select: PULB) today reported net income for the quarter ended March 31, 2011 of $1.1 million, or $0.05 per diluted common share, compared with a net loss of $4.3 million, or $0.47 per diluted common share, for the March 2010 quarter and net income of $3.1 million, or $0.24 per diluted common share, for the quarter ended December 31, 2010. 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 $0.05 per diluted common share in each of the quarters ended March 31, 2011, March 31, 2010, and December 31, 2010. For the six-month periods, the Company reported net income of $4.2 million, or $0.29 per diluted common share, in 2011 compared with a net loss of $3.1 million, or $0.40 per diluted common share, in 2010. Earnings for the three- and six-month periods ended March 31, 2010 were negatively impacted by significantly higher credit costs.
Gary Douglass, President and Chief Executive Officer commented, “We saw a decrease in earnings from the linked quarter due primarily to an anticipated market-driven slowdown in our mortgage-banking operations and lower realized net profit margins on loans sold. We had previously indicated that we expected to see noticeable declines in mortgage revenues and net interest income related to our mortgage banking operation based on an expectation of seasonally lower loan origination volumes, lower refinancing activity and a shrinking warehouse of loans held for sale. However, the increase in market interest rates during the quarter further dampened loan demand. Loan origination activity was down significantly for the quarter resulting in decreased mortgage revenues and a significant decline in net interest income derived from the warehouse of mortgage loans held for sale. During this same period of time that mortgage interest rates were rising, we were experiencing operational processing challenges, principally due to the high mortgage loan refinancing volumes experienced in the prior quarter and ever-changing and tightening investor requirements, that resulted in our inability to deliver a number of loans to investors within the original interest rate lock commitment periods. As a result, we ultimately delivered these loans at significantly reduced profit margins as such loans were repriced at reduced market values. We also anticipated growth in interest income from selective commercial loan growth, but the supply of quality commercial loans remained soft. As expected, the impact of mortgage-related declines was partially offset by modestly lower credit-related costs during the quarter.”
Net Interest Income Down from the Linked Quarter but Up from the Prior Year Quarter
Net interest income decreased $1.9 million, or 14%, to $11.5 million for the second quarter of fiscal 2011 compared with the historical high of $13.4 million for the quarter ended December 31, 2010, but rose $404,000, or 4%, compared with $11.1 million for the same period a year ago. For the six-month period, net interest income increased $2.3 million, or 10%, to $24.9 million.
The linked-quarter decrease was primarily the result of a decline in the average balance of mortgage loans held for sale to $108.6 million for the quarter ended March 31, 2011 compared with $305.9 million for the quarter ended December 31, 2010. The Company earns interest income on such loans during the short time they are held pending delivery to investors at interest rate spreads that are typically higher than other interest-earning assets held by the Company. The decline in the average balance of these loans also negatively impacted the net interest margin, which decreased to 3.66% for the three months ended March 31, 2011 compared with the historical high of 3.78% for the quarter ended December 31, 2010.
The increase in net interest income from last year’s quarter was largely due to an increase in the net interest margin between the two periods. The net interest margin increased 28 basis points from 3.38% for the March 2010 quarter primarily as the result of decreased funding costs.
Mortgage Revenues Decline on Softened Market Demand and Lower Realized Profit Margins
Non-interest income was $2.7 million for the quarter ended March 31, 2011 compared with $3.6 million for the quarter ended December 31, 2010 and $3.4 million for the March 2010 quarter. The decrease in non-interest income was primarily the result of lower mortgage
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revenues, which decreased to $848,000 on loan sales of $432 million for the quarter ended March 31, 2011 compared with $1.8 million on loan sales of $612 million for the quarter ended December 31, 2010, and $1.7 million on loan sales of $381 million for the March 2010 quarter. For the six-month period, non-interest income totaled $6.3 million in 2011 compared with $7.8 million in 2010.
Mortgage loans originated for sale totaled $239 million for the quarter ended March 31, 2011 compared with the near record volume of $598 million for the quarter ended December 31, 2010, and $321 million for the March 2010 quarter. The Company saw a significant decrease in demand for mortgage refinancings during the March 2011 quarter as the result of an increase in market interest rates. Mortgage refinancings accounted for $121 million, or 50%, of total loan originations for the quarter ended March 31, 2011 compared with $434 million, or 72%, for the quarter ended December 31, 2010, and $151 million, or 46%, for the March 2010 quarter. In addition, loan demand related to home sales remained soft. Mortgage loans held for sale decreased $223.2 million, or 82%, to $48.0 million at March 31, 2011 compared with $271.2 million at December 31, 2010.
The net profit margin on loans sold decreased to 0.20% for the quarter ended March 31, 2011 compared with 0.30% for the quarter ended December 31, 2010 and 0.44% for the March 2010 quarter. In addition, the Company’s direct costs to originate loans did not decrease in proportion to the decreased activity in the March 2011 quarter, resulting in higher costs per loan processed and lower net profit margins.
Douglass noted, “The near record loan origination volumes that we experienced in the December 2010 quarter created a backlog in our mortgage warehouse at December 31, 2010 that we worked to deliver to our investors during the following quarter. While our net interest income benefitted greatly from this elevated warehouse balance, the backlog of activity created extended processing times that resulted in lower profit margins. We succeeded in clearing the backlog by the end of the March 2011 quarter and, going forward, feel we are on track to realize profit margins that are more reflective of historical levels. In addition, we have reduced our processing costs to levels that are more in line with the volumes we anticipate going forward.”
Non-interest Expense
Total non-interest expense increased to $9.2 million for the quarter ended March 31, 2011 compared with $8.3 million for the linked quarter and $8.4 million for the prior year quarter. For the six-month period, non-interest expense increased to $17.5 million in 2011 compared with $16.6 million in 2010.
The primary driver of the increase in total non-interest expense during the March 2011 quarter was an increase in compensation expense to $4.1 million compared with $3.4 million for the linked quarter and $3.7 million for the prior year quarter. The increased compensation expense was due mostly to a lower level of absorption, resulting primarily from the decreased mortgage loan origination activity, of direct, fixed compensation costs that were deferred against loans originated. Also contributing to the increase in non-interest expense during the March 2011 quarter was an increase in FDIC deposit insurance premiums to $854,000 compared with $623,000 for the linked quarter and $494,000 for the prior year quarter as the result of deposit
3
growth and an increase in the assessment rate. Partially offsetting these increases was a decrease in real estate foreclosure expense and losses to $727,000 for the quarter ended March 31, 2011 compared with $1.1 million for the linked quarter and $905,000 for the prior year quarter primarily due to lower write-downs of properties or losses on sales that result from declines in their fair values subsequent to foreclosure.
Asset Quality
The provision for loan losses for the three months ended March 31, 2011 was $3.5 million compared with $4.3 million for the quarter ended December 31, 2010 and $11.2 million for the March 2010 quarter. For the six-month periods, the provision for loan losses totaled $7.8 million in 2011 compared with $17.1 million in 2010. The lower provision for the March 2011 quarter reflected a slight decrease in non-performing assets during the period and improvement in certain other asset quality indicators such as delinquencies and internal adversely classified assets. Net charge offs for the quarter ended March 31, 2011 totaled $4.1 million, or 1.54% of average loans on an annualized basis, compared with $4.0 million, or 1.51% of average loans on an annualized basis, for the quarter ended December 31, 2010 and $7.7 million, or 2.71% of average loans on an annualized basis, for the March 2010 quarter. Net charge offs for the March 2011 quarter exceeded the provision as troubled loans that had specific allowances established in prior periods were charged off.
Non-performing assets decreased to $77.8 million at March 31, 2011 from $78.0 million at December 31, 2010. The decrease was primarily attributable to a $3.7 million decrease in non-accruing loans and a $636,000 decrease in real estate acquired in settlement of loans partially offset by a $4.1 million increase in troubled debt restructurings.
Douglass commented, “As we expected, we saw a moderate decrease in credit costs during the quarter. We were encouraged by decreases in delinquencies in our residential and commercial portfolios and in the total level of our internal adversely-classified assets. While it is possible that we could experience 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 are hopeful that the trends we saw in the current quarter will continue to result in a moderation of credit costs in future periods.”
Conclusion / Outlook
Douglass commented, “While the increase in market interest rates had a significant negative impact on our second fiscal quarter, we expect improved earnings for the last half of our fiscal year. We anticipate improvement in mortgage revenues and net interest income related to our mortgage banking operation based on an expectation of seasonally higher loan origination volumes related to home sales and a return of our net profit margin on loans sold closer to historical levels. We also expect growth in interest income from selective commercial loan growth and modestly lower credit-related costs. With moderate improvement in overall economic conditions, including unemployment rates, we believe asset quality will slowly but steadily improve, resulting in a continuation of credit provision normalization, which in turn, will be a primary driver of meaningful earnings growth for the year.”
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Conference Call Tomorrow
Pulaski Financial’s management will discuss second quarter results and other developments tomorrow, April 20, 2011, 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 May 4, 2011 at 800-642-1687 or 706-645-9291, conference ID 35506263.
About Pulaski Financial
Pulaski Financial Corp., operating in its 89th 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 and Wichita, Kansas. 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, 2010 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) 317-5046
Tables follow...
5
PULASKI FINANCIAL CORP.
CONDENSED STATEMENTS OF INCOME
(Unaudited)
| | (Dollars in thousands except per share data) | |
| | Three Months Ended | |
| | March 31, | | December 31, | | March 31, | |
| | 2011 | | 2010 | | 2010 | |
Interest income | | $ | 14,818 | | $ | 17,124 | | $ | 16,051 | |
Interest expense | | 3,332 | | 3,708 | | 4,969 | |
| | | | | | | |
Net interest income | | 11,486 | | 13,416 | | 11,082 | |
Provision for loan losses | | 3,500 | | 4,300 | | 11,240 | |
| | | | | | | |
Net interest income (loss) after provision for loan losses | | 7,986 | | 9,116 | | (158 | ) |
| | | | | | | |
Retail banking fees | | 944 | | 1,026 | | 870 | |
Mortgage revenues | | 848 | | 1,847 | | 1,677 | |
Investment brokerage revenues | | 602 | | 446 | | 348 | |
Other | | 297 | | 329 | | 492 | |
Total non-interest income | | 2,691 | | 3,648 | | 3,387 | |
| | | | | | | |
Compensation expense | | 4,080 | | 3,402 | | 3,657 | |
Occupancy, equipment and data processing expense | | 2,234 | | 2,072 | | 2,015 | |
Advertising | | 137 | | 100 | | 95 | |
Professional services | | 446 | | 445 | | 548 | |
Real estate foreclosure losses and expenses, net | | 727 | | 1,085 | | 905 | |
FDIC deposit insurance premiums | | 854 | | 623 | | 494 | |
Other | | 730 | | 574 | | 707 | |
Total non-interest expense | | 9,208 | | 8,301 | | 8,421 | |
| | | | | | | |
Income (loss) before income taxes | | 1,469 | | 4,463 | | (5,192 | ) |
Income tax (benefit) expense | | 402 | | 1,346 | | (870 | ) |
Net income (loss) after tax | | 1,067 | | 3,117 | | (4,322 | ) |
Preferred stock dividends | | 517 | | 516 | | 515 | |
Earnings (loss) available for common shares | | $ | 550 | | $ | 2,601 | | $ | (4,837 | ) |
| | | | | | | |
Annualized Performance Ratios | | | | | | | |
Return on average assets | | 0.32 | % | 0.83 | % | (1.24 | )% |
Return on average common equity | | 2.50 | % | 11.71 | % | (21.90 | )% |
Interest rate spread | | 3.51 | % | 3.61 | % | 3.17 | % |
Net interest margin | | 3.66 | % | 3.78 | % | 3.38 | % |
| | | | | | | |
SHARE DATA | | | | | | | |
Weighted average shares outstanding - basic | | 10,532,730 | | 10,507,158 | | 10,364,565 | |
Weighted average shares outstanding - diluted | | 10,986,206 | | 10,925,023 | | 10,364,565 | |
Basic earnings (loss) per common share | | $ | 0.05 | | $ | 0.25 | | $ | (0.47 | ) |
Diluted earnings (loss) per common share | | $ | 0.05 | | $ | 0.24 | | $ | (0.47 | ) |
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) | |
| | Six Months Ended March 31, | |
| | 2011 | | 2010 | |
Interest income | | $ | 31,942 | | $ | 32,887 | |
Interest expense | | 7,040 | | 10,280 | |
| | | | | |
Net interest income | | 24,902 | | 22,607 | |
Provision for loan losses | | 7,800 | | 17,314 | |
| | | | | |
Net interest income after provision for loan losses | | 17,102 | | 5,293 | |
| | | | | |
Retail banking fees | | 1,970 | | 1,802 | |
Mortgage revenues | | 2,695 | | 4,378 | |
Investment brokerage revenues | | 1,048 | | 772 | |
Other | | 626 | | 883 | |
Total non-interest income | | 6,339 | | 7,835 | |
| | | | | |
Compensation expense | | 7,482 | | 7,557 | |
Occupancy, equipment and data processing expense | | 4,307 | | 4,020 | |
Advertising | | 237 | | 242 | |
Professional services | | 891 | | 1,066 | |
Real estate foreclosure losses and expenses, net | | 1,812 | | 1,342 | |
FDIC deposit insurance premiums | | 1,477 | | 986 | |
Other | | 1,303 | | 1,390 | |
Total non-interest expense | | 17,509 | | 16,603 | |
| | | | | |
Income (loss) income before income taxes | | 5,932 | | (3,475 | ) |
Income tax (benefit) expense | | 1,748 | | (403 | ) |
Net income (loss) after tax | | 4,184 | | (3,072 | ) |
Preferred stock dividends | | 1,032 | | 1,029 | |
Earning (loss) earnings available for common shares | | $ | 3,152 | | $ | (4,101 | ) |
| | | | | |
Annualized Performance Ratios | | | | | |
Return on average assets | | 0.59 | % | (0.44 | )% |
Return on average common equity | | 7.12 | % | (9.26 | )% |
Interest rate spread | | 3.56 | % | 3.18 | % |
Net interest margin | | 3.72 | % | 3.40 | % |
| | | | | |
SHARE DATA | | | | | |
Weighted average shares outstanding - basic | | 10,519,803 | | 10,318,818 | |
Weighted average shares outstanding - diluted | | 10,967,170 | | 10,318,818 | |
Basic earnings (loss) per common share | | $ | 0.30 | | $ | (0.40 | ) |
Diluted earnings (loss) per common share | | $ | 0.29 | | $ | (0.40 | ) |
Dividends per common share | | $ | 0.190 | | $ | 0.190 | |
PULASKI FINANCIAL CORP.
BALANCE SHEET DATA
(Unaudited)
| | (Dollars in thousands) | | | |
| | March 31, | | December 31, | | September 30, | |
| | 2011 | | 2010 | | 2010 | |
Total assets | | $ | 1,338,131 | | $ | 1,466,924 | | $ | 1,452,817 | |
Loans receivable, net | | 1,052,398 | | 1,041,169 | | 1,046,273 | |
Allowance for loan losses | | 26,663 | | 27,275 | | 26,976 | |
Mortgage loans held for sale, net | | 47,978 | | 271,152 | | 253,578 | |
Investment securities | | 9,643 | | 13,594 | | 8,001 | |
FHLB stock | | 3,060 | | 10,184 | | 9,774 | |
Mortgage-backed & related securities | | 14,083 | | 16,159 | | 19,142 | |
Cash and cash equivalents | | 111,149 | | 16,001 | | 15,603 | |
Deposits | | 1,157,899 | | 1,151,152 | | 1,115,203 | |
FHLB advances | | 29,000 | | 161,800 | | 181,000 | |
Subordinated debentures | | 19,589 | | 19,589 | | 19,589 | |
Stockholders’ equity - preferred | | 31,307 | | 31,197 | | 31,088 | |
Stockholders’ equity - common | | 87,363 | | 87,473 | | 85,265 | |
Book value per common share | | $ | 7.95 | | $ | 7.99 | | $ | 7.87 | |
| | March 31, | | December 31, | | September 30, | |
| | 2011 | | 2010 | | 2010 | |
LOANS RECEIVABLE | | | | | | | |
Single-family residential: | | | | | | | |
Residential first mortgage | | $ | 255,009 | | $ | 237,930 | | $ | 243,650 | |
Residential second mortgage | | 56,505 | | 57,765 | | 60,281 | |
Home equity lines of credit | | 188,110 | | 193,016 | | 201,922 | |
Commercial: | | | | | | | |
Commercial and multi-family real estate | | 330,297 | | 324,788 | | 299,960 | |
Land acquisition and development | | 60,615 | | 68,511 | | 74,462 | |
Real estate construction and development | | 17,390 | | 17,288 | | 31,071 | |
Commercial and industrial | | 163,147 | | 162,141 | | 155,622 | |
Consumer and installment | | 3,257 | | 3,699 | | 3,512 | |
| | 1,074,330 | | 1,065,138 | | 1,070,480 | |
Add (less): | | | | | | | |
Deferred loan costs | | 3,845 | | 3,803 | | 3,884 | |
Loans in process | | 886 | | (497 | ) | (1,115 | ) |
Allowance for loan losses | | (26,663 | ) | (27,275 | ) | (26,976 | ) |
| | (21,932 | ) | (23,969 | ) | (24,207 | ) |
Total | | $ | 1,052,398 | | $ | 1,041,169 | | $ | 1,046,273 | |
| | | | | | | |
Weighted average rate at end of period | | 5.30 | % | 5.37 | % | 5.34 | % |
| | March 31, 2011 | | December 31, 2010 | | September 30, 2010 | |
| | | | Weighted | | | | Weighted | | | | Weighted | |
| | | | Average | | | | Average | | | | Average | |
| | | | Interest | | | | Interest | | | | Interest | |
| | Balance | | Rate | | Balance | | Rate | | Balance | | Rate | |
DEPOSITS | | | | | | | | | | | | | |
Demand Deposit Accounts: | | | | | | | | | | | | | |
Non-interest-bearing checking | | $ | 124,689 | | 0.00 | % | $ | 121,101 | | 0.00 | % | $ | 149,186 | | 0.00 | % |
Interest-bearing checking | | 354,550 | | 0.60 | % | 376,232 | | 0.71 | % | 345,013 | | 0.90 | % |
Passbook savings accounts | | 32,652 | | 0.14 | % | 29,009 | | 0.14 | % | 30,296 | | 0.18 | % |
Money market | | 194,194 | | 0.49 | % | 205,069 | | 0.48 | % | 189,851 | | 0.52 | % |
Total demand deposit accounts | | 706,085 | | 0.44 | % | 731,411 | | 0.51 | % | 714,346 | | 0.58 | % |
| | | | | | | | | | | | | |
Certificates of Deposit: | | | | | | | | | | | | | |
Retail | | 348,477 | | 1.81 | % | 332,846 | | 2.01 | % | 328,394 | | 2.20 | % |
CDARS | | 94,913 | | 0.52 | % | 78,477 | | 0.57 | % | 64,051 | | 0.65 | % |
Brokered | | 8,424 | | 5.23 | % | 8,418 | | 5.23 | % | 8,412 | | 5.23 | % |
Total certificates of deposit | | 451,814 | | 1.61 | % | 419,741 | | 1.81 | % | 400,857 | | 2.02 | % |
Total deposits | | $ | 1,157,899 | | 0.90 | % | $ | 1,151,152 | | 0.98 | % | $ | 1,115,203 | | 1.09 | % |
PULASKI FINANCIAL CORP.
NONPERFORMING ASSETS
(Unaudited)
| | (In thousands) | | | |
| | March 31, | | December 31, | | September 30, | |
| | 2011 | | 2010 | | 2010 | |
NONPERFORMING ASSETS | | | | | | | |
Non-accrual loans: | | | | | | | |
Residential real estate first mortgages | | $ | 5,655 | | $ | 8,858 | | $ | 6,727 | |
Residential real estate second mortgages | | 1,330 | | 1,492 | | 1,522 | |
Home equity | | 3,439 | | 3,266 | | 2,206 | |
Commercial and multi-family | | 8,895 | | 9,513 | | 5,539 | |
Land acquisition and development | | 6,701 | | 6,739 | | 8,796 | |
Real estate-construction and development | | 799 | | 1,136 | | 1,189 | |
Commercial and industrial | | 522 | | 414 | | 417 | |
Consumer and other | | 618 | | 286 | | 100 | |
Total non-accrual loans | | 27,959 | | 31,704 | | 26,496 | |
| | | | | | | |
Troubled debt restructured: (1) | | | | | | | |
Current under the restructured terms: | | | | | | | |
Residential real estate first mortgages | | 17,275 | | 15,760 | | 16,093 | |
Residential real estate second mortgages | | 1,608 | | 1,929 | | 2,186 | |
Home equity | | 736 | | 1,039 | | 1,050 | |
Commercial and multi-family | | 1,798 | | 162 | | 184 | |
Land acquisition and development | | — | | 121 | | 97 | |
Real estate-construction and development | | 2,935 | | 2,934 | | 3,306 | |
Commercial and industrial | | 999 | | 618 | | 1,684 | |
Consumer and other | | — | | 59 | | 83 | |
Total current restructured loans | | 25,351 | | 22,622 | | 24,683 | |
Past due greater than 30 days under restructured terms: | | | | | | | |
Residential real estate first mortgages | | 10,391 | | 8,537 | | 7,251 | |
Residential real estate second mortgages | | 864 | | 483 | | 339 | |
Home equity | | 651 | | 674 | | 728 | |
Land acquisition and development | | 121 | | 41 | | 65 | |
Real estate-construction and development | | 51 | | 51 | | — | |
Commercial and industrial | | — | | 882 | | — | |
Total past due restructured loans | | 12,078 | | 10,668 | | 8,383 | |
Total restructured loans | | 37,429 | | 33,290 | | 33,066 | |
Total non-performing loans | | 65,388 | | 64,994 | | 59,562 | |
Real estate acquired in settlement of loans: | | | | | | | |
Residential real estate | | 3,103 | | 2,615 | | 3,632 | |
Commercial real estate | | 9,271 | | 10,395 | | 11,268 | |
Total real estate acquired in settlement of loans | | 12,374 | | 13,010 | | 14,900 | |
Other nonperforming assets | | 9 | | 12 | | — | |
Total non-performing assets | | $ | 77,771 | | $ | 78,016 | | $ | 74,462 | |
(1) Troubled debt restructured includes non-accrual loans totaling $37.4 million, $33.3 million and $33.1 million at March 31, 2011, December 31, 2010 and September 30, 2010, 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 | | Six Months | |
| | Ended March 31, | | Ended March 31, | |
| | 2011 | | 2010 | | 2011 | | 2010 | |
ALLOWANCE FOR LOAN LOSSES | | | | | | | | | |
Allowance for loan losses, beginning of period | | $ | 27,275 | | $ | 22,923 | | $ | 26,976 | | $ | 20,579 | |
Provision charged to expense | | 3,500 | | 11,240 | | 7,800 | | 17,314 | |
(Charge-offs) recoveries, net: | | | | | | | | | |
Residential real estate first mortgages | | (1,492 | ) | (276 | ) | (1,658 | ) | (1,206 | ) |
Residential real estate second mortgages | | (362 | ) | (276 | ) | (665 | ) | (461 | ) |
Home equity | | (1,158 | ) | (665 | ) | (1,679 | ) | (1,387 | ) |
Commercial and multi-family | | (15 | ) | (3,933 | ) | (736 | ) | (3,928 | ) |
Land acquisition & development | | (796 | ) | — | | (2,913 | ) | (327 | ) |
Real estate-construction and development | | (50 | ) | (440 | ) | (50 | ) | (1,876 | ) |
Commercial and industrial | | (216 | ) | (2,052 | ) | (357 | ) | (2,114 | ) |
Consumer and other | | (23 | ) | (27 | ) | (55 | ) | (100 | ) |
Total loans charged off, net | | (4,112 | ) | (7,669 | ) | (8,113 | ) | (11,399 | ) |
Allowance for loan losses, end of period | | $ | 26,663 | | $ | 26,494 | | $ | 26,663 | | $ | 26,494 | |
| | March 31, | | December 31, | | September 30, | |
| | 2011 | | 2010 | | 2010 | |
ASSET QUALITY RATIOS | | | | | | | |
Nonperforming loans as a percent of total loans | | 6.09 | % | 6.10 | % | 5.56 | % |
Nonperforming loans excluding current troubled debt restructurings as a percent of total loans | | 3.73 | % | 3.98 | % | 3.26 | % |
Nonperforming assets as a percent of total assets | | 5.81 | % | 5.32 | % | 5.13 | % |
Nonperforming assets excluding current troubled debt restructurings as a percent of total assets | | 3.92 | % | 3.78 | % | 3.43 | % |
Allowance for loan losses as a percent of total loans | | 2.48 | % | 2.56 | % | 2.52 | % |
Allowance for loan losses as a percent of nonperforming loans | | 40.78 | % | 41.97 | % | 45.29 | % |
Allowance for loan losses as a percent of nonperforming loans excluding current troubled debt restructurings and related allowance for loan losses | | 64.96 | % | 63.80 | % | 75.47 | % |
PULASKI FINANCIAL CORP.
AVERAGE BALANCE SHEETS
(Unaudited)
| | (Dollars in thousands) | |
| | Three Months Ended | |
| | March 31, 2011 | | March 31, 2010 | |
| | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | and | | Yield/ | | Average | | and | | Yield/ | |
| | Balance | | Dividends | | Cost | | Balance | | Dividends | | Cost | |
Interest-earning assets: | | | | | | | | | | | | | |
Loans receivable | | $ | 1,066,195 | | $ | 13,513 | | 5.07 | % | $ | 1,133,785 | | $ | 14,654 | | 5.17 | % |
Mortgage loans held for sale | | 108,632 | | 1,135 | | 4.18 | % | 94,844 | | 1,094 | | 4.61 | % |
Other interest-earning assets | | 81,194 | | 170 | | 0.84 | % | 84,207 | | 303 | | 1.44 | % |
Total interest-earning assets | | 1,256,021 | | 14,818 | | 4.72 | % | 1,312,836 | | 16,051 | | 4.89 | % |
Noninterest-earning assets | | 91,847 | | | | | | 77,036 | | | | | |
Total assets | | $ | 1,347,868 | | | | | | $ | 1,389,872 | | | | | |
| | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | |
Deposits | | $ | 1,034,768 | | $ | 2,973 | | 1.15 | % | $ | 1,067,726 | | $ | 4,339 | | 1.63 | % |
Borrowed money | | 63,187 | | 359 | | 2.27 | % | 89,637 | | 630 | | 2.81 | % |
Total interest-bearing liabilities | | 1,097,955 | | 3,332 | | 1.21 | % | 1,157,363 | | 4,969 | | 1.72 | % |
Noninterest-bearing deposits | | 118,412 | | | | | | 102,367 | | | | | |
Noninterest-bearing liabilities | | 12,099 | | | | | | 10,967 | | | | | |
Stockholders’ equity | | 119,402 | | | | | | 119,175 | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,347,868 | | | | | | $ | 1,389,872 | | | | | |
Net interest income | | | | $ | 11,486 | | | | | | $ | 11,082 | | | |
Interest rate spread | | | | | | 3.51 | % | | | | | 3.17 | % |
Net interest margin | | | | | | 3.66 | % | | | | | 3.38 | % |
| | (Dollars in thousands) | |
| | Six Months Ended | |
| | March 31, 2011 | | March 31, 2010 | |
| | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | and | | Yield/ | | Average | | and | | Yield/ | |
| | Balance | | Dividends | | Cost | | Balance | | Dividends | | Cost | |
Interest-earning assets: | | | | | | | | | | | | | |
Loans receivable | | $ | 1,065,161 | | $ | 27,098 | | 5.09 | % | $ | 1,141,378 | | $ | 29,512 | | 5.17 | % |
Mortgage loans held for sale | | 208,352 | | 4,364 | | 4.19 | % | 115,014 | | 2,714 | | 4.72 | % |
Other interest-earning assets | | 65,249 | | 480 | | 1.47 | % | 73,792 | | 661 | | 1.79 | % |
Total interest-earning assets | | 1,338,762 | | 31,942 | | 4.77 | % | 1,330,184 | | 32,887 | | 4.94 | % |
Noninterest-earning assets | | 88,418 | | | | | | 71,727 | | | | | |
Total assets | | $ | 1,427,180 | | | | | | $ | 1,401,911 | | | | | |
| | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | |
Deposits | | $ | 1,008,418 | | $ | 6,170 | | 1.22 | % | $ | 1,064,485 | | $ | 8,966 | | 1.68 | % |
Borrowed money | | 153,721 | | 870 | | 1.13 | % | 104,440 | | 1,314 | | 2.52 | % |
Total interest-bearing liabilities | | 1,162,139 | | 7,040 | | 1.21 | % | 1,168,925 | | 10,280 | | 1.76 | % |
Noninterest-bearing deposits | | 129,998 | | | | | | 99,926 | | | | | |
Noninterest-bearing liabilities | | 15,351 | | | | | | 13,739 | | | | | |
Stockholders’ equity | | 119,692 | | | | | | 119,321 | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,427,180 | | | | | | $ | 1,401,911 | | | | | |
Net interest income | | | | $ | 24,902 | | | | | | $ | 22,607 | | | |
Interest rate spread | | | | | | 3.56 | % | | | | | 3.18 | % |
Net interest margin | | | | | | 3.72 | % | | | | | 3.40 | % |
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