Exhibit 99.1
PULASKI FINANCIAL REPORTS SUBSTANTIAL INCREASE
IN THIRD FISCAL QUARTER OPERATING RESULTS
· The Company showed strong growth in operating performance
· Diluted EPS was $0.20 for the third fiscal quarter of 2012 compared with $0.11 for the prior year quarter and $0.08 for the linked quarter, and was $0.51 year to date in 2012 compared with $0.39 in 2011
· Mortgage revenues increased 86% from the prior year quarter and 27% over the linked quarter on increased sales volumes and higher realized profit margins
· Net interest income increased 5% over the prior year quarter on an improvement in the net interest margin but decreased 2% from the linked quarter on a modestly lower net interest margin and lower average loans receivable balances
· Net interest margin remained strong, showing a 30 basis point increase over the prior year quarter on lower funding costs, but a 4 basis point decrease from the linked quarter and a 13 basis point decrease from the record high in the December 2011 quarter
· Non-interest expense was up 12% from the prior year quarter and 11% from the linked quarter primarily on higher professional fees and increased foreclosure costs
· Asset quality continued to improve
· Non-performing assets decreased 3%, representing the sixth consecutive quarterly decline
· Internal adversely classified assets decreased approximately 2%, representing the third consecutive quarterly decline
· Early stage loan delinquencies (31 to 89 days past due on payments) decreased approximately 25%, representing the third consecutive quarterly decline
· The Bank remained “well capitalized” with estimated Tier 1 leverage and total risk-based capital ratios of 10.11% and 14.13%, respectively, and the quarterly common dividend was maintained
ST. LOUIS, July 24, 2012 — Pulaski Financial Corp. (Nasdaq Global Select: PULB) today reported net income for the quarter ended June 30, 2012 of $2.7 million, or $0.20 per diluted common share, compared with net income of $1.4 million, or $0.08 per diluted common share, for the quarter ended March 31, 2012 and net income of $1.7 million, or $0.11 per diluted common share, for the June 2011 quarter. Reducing income available to common shares were dividends and the related discount accretion on the Company’s preferred stock totaling $0.05 per diluted common share in each of the three quarters. For the nine-month periods, the Company reported net income of $7.2 million, or $0.51 per diluted common share, in 2012 compared with net income of $5.9 million, or $0.39 per diluted common share, in 2011.
Gary Douglass, President and Chief Executive Officer commented, “We were very pleased with our third fiscal quarter results. Mortgage revenues jumped significantly as the result of increased sales volumes combined with our ongoing efforts to improve our gross selling prices and control our origination costs. The net interest margin, although down from its historically high level in the December 2011 quarter, remained at a very respectable 3.84% level. Net operating expenses were up for the quarter, but a large part of the increase was related to expenses incurred in connection with the Treasury’s auction of our preferred stock. Finally, the level of non-performing assets decreased for the sixth consecutive quarter. Equally important, two other potential future predictors of asset quality, the level of internal adversely classified assets and total loans that were 31 to 89 days past due on payments, experienced improvement for the third consecutive quarter.”
Net Interest Income Down Slightly from the Linked Quarter on Lower, but Still Strong,
Net Interest Margin
Net interest income decreased to $11.6 million for the third quarter of fiscal 2012 compared with $11.8 million for the quarter ended March 31, 2012, but increased from $11.1 million for the same period a year ago. The decrease from the linked quarter was primarily the result of a decline in the net interest margin combined with shrinkage in the average balance of loans receivable held in portfolio. The increase from the same period a year ago was primarily due to an increase in the net interest margin. For the nine-month period, net interest income decreased $398,000 to $35.6 million primarily as the result of shrinkage in the average balance of loans receivable held in portfolio partially offset by an increase in the net interest margin.
The Company experienced modest growth in its commercial loan portfolio during the current year periods. The balance of commercial loans grew $13.0 million, or 2%, and $25.1 million, or 4%, during the three and nine months ended June 30, 2012, respectively, to $596.0 million at June 30, 2012. Conversely, the lack of market demand for the Company’s adjustable-rate residential mortgage loan products, which are the Company’s primary residential portfolio products, resulted in shrinkage in the residential loan portfolio during the same periods. The balance of residential loans decreased $14.4 million, or 3%, and $55.6 million, or 12%, during the three and nine months ended June 30, 2012, respectively, to $414.4 million at June 30, 2012.
The net interest margin was 3.84% for the three months ended June 30, 2012 compared with 3.88% for the quarter ended March 31, 2012 and 3.54% for the quarter ended June 30, 2011. The linked-quarter decrease was primarily the result of shrinkage in the average balance and average yield of loans receivable held in portfolio partially offset by a decline in the average cost of deposits. The increase in the net interest margin from the June 2011 quarter was primarily the result of a decrease in the cost of deposits. For the nine month periods, the net interest margin was 3.89% in 2012 compared with 3.66% in 2011. The net interest margin for the nine months ended June 30, 2012 was bolstered by the record quarterly high level of 3.97% reached in the December 2011 quarter.
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Mortgage Revenues Up from the Linked Quarter on Higher Sales Volumes and Improved Profit Margins
Primarily as the result of increased mortgage revenues, non-interest income increased to $4.1 million for the quarter ended June 30, 2012 compared with $3.6 million for the quarter ended March 31, 2012 and $3.1 million for the quarter ended June 30, 2011. Mortgage revenues were $2.4 million on loan sales of $342 million for the quarter ended June 30, 2012 compared with $1.9 million on loan sales of $309 million for the quarter ended March 31, 2012 and $1.3 million on loan sales of $259 million in the June 2011 quarter.
Mortgage loans originated for sale totaled $350 million for the quarter ended June 30, 2012 compared with $307 million for the quarter ended March 31, 2012 and $257 million for the June 2011 quarter. As a result of the continued low level of market interest rates, the Company continued to see strong demand for mortgage refinancings during the June 2012 quarter, but also saw an increase in loans originated to finance the purchase of homes. Mortgage refinancings totaled $155 million, or 44% of total loans originated for sale, for the quarter ended June 30, 2012 compared with $194 million, or 63% of total loans originated for sale, for the quarter ended March 31, 2012, and $187 million, or 73% of total loans originated for sale, for the June 2011 quarter. Loans originated to finance the purchase of homes totaled $186 million for the quarter ended June 30, 2012 compared with $111 million for the quarter ended March 31, 2012 and $186 million for the June 2011 quarter.
The net profit margin on loans sold was 0.70% for the quarter ended June 30, 2012 compared with 0.61% for the quarter ended March 31, 2012 and 0.50% for the June 2011 quarter. The increases were primarily the result of improved selling prices realized from the Company’s mortgage loan investors and the continued control of costs to originate such loans. Mortgage loans held for sale decreased $1.2 million to $148.8 million at June 30, 2012 compared with $150.0 million at March 31, 2012.
Douglass noted, “Once again, we saw substantial linked-quarter growth in mortgage revenues as we continued to take advantage of the strong demand for mortgage loan refinancings that was driven by the low level of market interest rates. More importantly, we saw a substantial increase in loans originated to finance home purchases as we were able to capitalize on the strong customer and realtor relationships our loan officers have continued to maintain within our markets. We continue to explore ways to expand our gross sales margins and focus on cost control, and we expect these improvements to carry over into future periods. Finally, the strong loan demand resulted in a quarter-end balance of $149 million in our mortgage loans held for sale, which will once again give us significant momentum going into our fourth fiscal quarter of 2012 by generating net interest income while they are held in the warehouse and mortgage revenues when they are delivered to our investors.”
Non-interest Expense Up from the Linked Quarter on Higher Professional Fees and Foreclosure Costs
Total non-interest expense was $8.8 million for the quarter ended June 30, 2012 compared with $7.9 million for each of the linked and prior-year quarters. The linked-quarter and prior year increases were the result of higher levels of expense associated with professional services and
3
foreclosed properties. During the quarter ended June 30, 2012, the United States Department of the Treasury completed the auction to private investors of the Company’s preferred stock that was issued to the Treasury in 2009 under its Capital Purchase Program. In connection with this auction, the Company incurred approximately $249,000 in legal and professional fees related to the filing of the required registration statements with the Securities and Exchange Commission. For the nine-month period, non-interest expense decreased to $24.9 million in 2012 compared with $25.4 million in 2011, primarily due to lower expenses for FDIC deposit insurance and foreclosed properties.
Asset Quality Continued to Improve
Non-performing assets decreased 3% to $64.4 million at June 30, 2012 from $66.2 million at March 31, 2012 primarily as the result of decreases in loans restructured under troubled debt restructurings and real estate acquired through foreclosure. This represented the sixth consecutive quarterly decline in non-performing assets and the first time the level of non-performing assets as a percentage of total assets fell below 5% since June 30, 2010. The level of internal adversely classified assets decreased approximately 2% from March 31, 2012 to June 30, 2012 and total loans that were 31 to 89 days past due on payments decreased approximately 25% during the same period, both representing the third consecutive quarterly decline in these categories.
The provision for loan losses for the three months ended June 30, 2012 was $3.0 million compared with $5.5 million for the quarter ended March 31, 2012 and $4.0 million for the June 2011 quarter. The significantly higher provision during the March 2012 quarter was primarily the result of a $2.5 million partial charge-off related to commercial loans to one of the Company’s largest borrowers.
Net charge-offs for the quarter ended June 30, 2012 totaled $3.3 million compared with $13.0 million for the quarter ended March 31, 2012 and $4.9 million for the June 2011 quarter. The significantly higher level of net charge-offs in the March 2012 quarter was primarily the result of the Company’s required change from the Office of Thrift Supervision’s Thrift Financial Reports to the Office of the Comptroller of the Currency’s (“OCC”) Call Reports effective March 31, 2012, and to a lesser extent, the $2.5 million commercial loan charge-off discussed above. Effective March 31, 2012, the Company modified its loan charge-off policy to comply with the OCC’s guidance and, accordingly, recorded $5.9 million of charge-offs during the March 2012 quarter related to loans for which it had established specific reserves in previous periods. Because these losses had been recognized in previous periods, this change in accounting policy had no impact on the Company’s provision for loan losses or capital position in the quarter ended March 31, 2012.
Conclusion / Outlook
Douglass stated, “For our fourth fiscal quarter of 2012, we expect continued core earnings strength similar to what we saw in the June 2012 quarter and continued asset quality improvement. We are also targeting a repurchase of the common stock warrant currently held by the U.S. Treasury to remove the related dilutive overhang and a modest start on redeeming a portion of our outstanding preferred securities.”
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Conference Call Tomorrow
Pulaski Financial’s management will discuss third quarter results and other developments tomorrow, July 25, 2012, 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://pulaskibank.com/corporate-profile.aspx. Participants in the conference call may dial 877-473-3757, conference ID 12131430, a few minutes before the start time. The call also will be available for replay through August 9, 2012 at 855-859-2056 or 404-537-3406, conference ID 12131430.
About Pulaski Financial
Pulaski Financial Corp., operating in its 90th year through its subsidiary, Pulaski Bank, serves customers throughout the St. Louis and Kansas City metropolitan areas and Wichita, Kansas. The bank offers a full line of quality retail and commercial banking products through 13 full-service branch offices in the St. Louis metropolitan area and offers mortgage loan products through eight loan production offices in the St. Louis and Kansas City metropolitan areas, Joplin, Missouri and Wichita, Kansas. The Company’s website can be accessed at www.pulaskibank.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, 2011 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...
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PULASKI FINANCIAL CORP.
CONDENSED STATEMENTS OF INCOME
(Unaudited)
| | (Dollars in thousands except per share data)
Three Months Ended | |
| | June 30, | | March 31, | | June 30, | |
| | 2012 | | 2012 | | 2011 | |
Interest income | | $ | 13,663 | | $ | 14,011 | | $ | 14,175 | |
Interest expense | | 2,016 | | 2,190 | | 3,096 | |
| | | | | | | |
Net interest income | | 11,647 | | 11,821 | | 11,079 | |
Provision for loan losses | | 3,000 | | 5,500 | | 4,000 | |
| | | | | | | |
Net interest income after provision for loan losses | | 8,647 | | 6,321 | | 7,079 | |
| | | | | | | |
Retail banking fees | | 1,002 | | 978 | | 1,076 | |
Mortgage revenues | | 2,410 | | 1,897 | | 1,295 | |
Investment brokerage revenues | | 350 | | 397 | | 421 | |
Other | | 340 | | 283 | | 282 | |
Total non-interest income | | 4,102 | | 3,555 | | 3,074 | |
| | | | | | | |
Compensation expense | | 3,773 | | 3,781 | | 3,720 | |
Occupancy, equipment and data processing expense | | 2,330 | | 2,329 | | 2,282 | |
Advertising | | 168 | | 105 | | 121 | |
Professional services | | 844 | | 403 | | 361 | |
Real estate foreclosure losses and expenses, net | | 650 | | 388 | | 265 | |
FDIC deposit insurance premiums | | 436 | | 441 | | 475 | |
Other | | 589 | | 495 | | 663 | |
Total non-interest expense | | 8,790 | | 7,942 | | 7,887 | |
| | | | | | | |
Income before income taxes | | 3,959 | | 1,934 | | 2,266 | |
Income tax expense | | 1,213 | | 565 | | 566 | |
Net income after tax | | 2,746 | | 1,369 | | 1,700 | |
Preferred stock dividends | | 518 | | 518 | | 516 | |
Earnings available for common shares | | $ | 2,228 | | $ | 851 | | $ | 1,184 | |
| | | | | | | |
Annualized Performance Ratios | | | | | | | |
Return on average assets | | 0.84 | % | 0.42 | % | 0.51 | % |
Return on average common equity | | 9.46 | % | 3.67 | % | 5.37 | % |
Interest rate spread | | 3.70 | % | 3.74 | % | 3.39 | % |
Net interest margin | | 3.84 | % | 3.88 | % | 3.54 | % |
| | | | | | | |
SHARE DATA | | | | | | | |
Weighted average shares outstanding - basic | | 10,709,072 | | 10,659,123 | | 10,558,910 | |
Weighted average shares outstanding - diluted | | 11,121,025 | | 11,132,612 | | 11,009,935 | |
Basic earnings per common share | | $ | 0.21 | | $ | 0.08 | | $ | 0.11 | |
Diluted earnings per common share | | $ | 0.20 | | $ | 0.08 | | $ | 0.11 | |
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)
Nine Months Ended June 30, | |
| | 2012 | | 2011 | |
Interest income | | $ | 42,297 | | $ | 46,117 | |
Interest expense | | 6,714 | | 10,136 | |
| | | | | |
Net interest income | | 35,583 | | 35,981 | |
Provision for loan losses | | 11,500 | | 11,800 | |
| | | | | |
Net interest income after provision for loan losses | | 24,083 | | 24,181 | |
| | | | | |
Retail banking fees | | 2,982 | | 3,046 | |
Mortgage revenues | | 5,994 | | 3,989 | |
Investment brokerage revenues | | 1,120 | | 1,469 | |
Other | | 976 | | 909 | |
Total non-interest income | | 11,072 | | 9,413 | |
| | | | | |
Compensation expense | | 11,297 | | 11,202 | |
Occupancy, equipment and data processing expense | | 6,840 | | 6,588 | |
Advertising | | 381 | | 358 | |
Professional services | | 1,674 | | 1,252 | |
Real estate foreclosure losses and expenses, net | | 1,783 | | 2,076 | |
FDIC deposit insurance premiums | | 1,318 | | 1,952 | |
Other | | 1,571 | | 1,967 | |
Total non-interest expense | | 24,864 | | 25,395 | |
| | | | | |
Income before income taxes | | 10,291 | | 8,199 | |
Income tax expense | | 3,134 | | 2,315 | |
Net income after tax | | 7,157 | | 5,884 | |
Preferred stock dividends | | 1,553 | | 1,549 | |
Earning available for common shares | | $ | 5,604 | | $ | 4,335 | |
| | | | | |
Annualized Performance Ratios | | | | | |
Return on average assets | | 0.73 | % | 0.56 | % |
Return on average common equity | | 8.05 | % | 6.54 | % |
Interest rate spread | | 3.74 | % | 3.50 | % |
Net interest margin | | 3.89 | % | 3.66 | % |
| | | | | |
SHARE DATA | | | | | |
Weighted average shares outstanding - basic | | 10,657,747 | | 10,532,839 | |
Weighted average shares outstanding - diluted | | 11,087,851 | | 10,989,643 | |
Basic earnings per common share | | $ | 0.53 | | $ | 0.41 | |
Diluted earnings per common share | | $ | 0.51 | | $ | 0.39 | |
Dividends per common share | | $ | 0.285 | | $ | 0.285 | |
PULASKI FINANCIAL CORP.
BALANCE SHEET DATA
(Unaudited)
| | (Dollars in thousands) | | | |
| | June 30, | | March 31, | | September 30, | |
| | 2012 | | 2012 | | 2011 | |
Total assets | | $ | 1,345,691 | | $ | 1,317,287 | | $ | 1,309,209 | |
Loans receivable, net | | 995,866 | | 998,390 | | 1,021,273 | |
Allowance for loan losses | | 18,001 | | 18,254 | | 25,714 | |
Mortgage loans held for sale, net | | 148,769 | | 149,978 | | 100,719 | |
Investment securities | | 19,968 | | 10,932 | | 14,457 | |
FHLB stock | | 3,779 | | 3,940 | | 3,100 | |
Mortgage-backed & related securities | | 6,275 | | 7,004 | | 9,986 | |
Cash and cash equivalents | | 73,254 | | 46,121 | | 57,071 | |
Deposits | | 1,135,229 | | 1,110,824 | | 1,122,525 | |
FHLB advances | | 49,000 | | 49,000 | | 29,000 | |
Subordinated debentures | | 19,589 | | 19,589 | | 19,589 | |
Stockholders’ equity - preferred | | 31,861 | | 31,749 | | 31,527 | |
Stockholders’ equity - common | | 92,165 | | 90,900 | | 88,643 | |
Book value per common share | | $ | 8.18 | | $ | 8.05 | | $ | 8.07 | |
Tangible book value per share | | $ | 7.83 | | $ | 7.70 | | $ | 7.70 | |
| | June 30, | | March 31, | | September 30, | |
| | 2012 | | 2012 | | 2011 | |
LOANS RECEIVABLE | | | | | | | |
Single-family residential: | | | | | | | |
Residential first mortgage | | $ | 217,584 | | $ | 224,476 | | $ | 242,091 | |
Residential second mortgage | | 43,655 | | 45,376 | | 51,535 | |
Home equity lines of credit | | 153,114 | | 158,896 | | 176,324 | |
Commercial: | | | | | | | |
Commercial and multi-family real estate | | 323,643 | | 326,731 | | 316,210 | |
Land acquisition and development | | 47,535 | | 49,975 | | 51,497 | |
Real estate construction and development | | 20,214 | | 17,102 | | 22,331 | |
Commercial and industrial | | 204,610 | | 189,194 | | 180,821 | |
Consumer and installment | | 2,485 | | 2,221 | | 3,118 | |
| | 1,012,840 | | 1,013,971 | | 1,043,927 | |
Add (less): | | | | | | | |
Deferred loan costs | | 3,264 | | 3,254 | | 3,626 | |
Loans in process | | (2,237 | ) | (581 | ) | (566 | ) |
Allowance for loan losses | | (18,001 | ) | (18,254 | ) | (25,714 | ) |
| | (16,974 | ) | (15,581 | ) | (22,654 | ) |
Total | | $ | 995,866 | | $ | 998,390 | | $ | 1,021,273 | |
| | | | | | | |
Weighted average rate at end of period | | 5.04 | % | 5.12 | % | 5.30 | % |
| | June 30, 2012 | | March 31, 2012 | | September 30, 2011 | |
| | | | Weighted | | | | Weighted | | | | Weighted | |
| | | | Average | | | | Average | | | | Average | |
| | | | Interest | | | | Interest | | | | Interest | |
| | Balance | | Rate | | Balance | | Rate | | Balance | | Rate | |
| | (Dollars in thousands) | |
DEPOSITS | | | | | | | | | | | | | |
Demand Deposit Accounts: | | | | | | | | | | | | | |
Non-interest-bearing checking | | $ | 178,866 | | 0.00 | % | $ | 156,019 | | 0.00 | % | $ | 150,431 | | 0.00 | % |
Interest-bearing checking | | 287,650 | | 0.16 | % | 305,535 | | 0.20 | % | 328,275 | | 0.28 | % |
Passbook savings accounts | | 37,160 | | 0.14 | % | 37,089 | | 0.14 | % | 35,714 | | 0.14 | % |
Money market | | 192,205 | | 0.22 | % | 178,355 | | 0.24 | % | 183,873 | | 0.33 | % |
Total demand deposit accounts | | 695,881 | | 0.14 | % | 676,998 | | 0.16 | % | 698,293 | | 0.22 | % |
| | | | | | | | | | | | | |
Certificates of Deposit: | | | | | | | | | | | | | |
Retail | | 354,563 | | 1.23 | % | 343,693 | | 1.29 | % | 344,770 | | 1.61 | % |
CDARS | | 84,785 | | 0.34 | % | 90,133 | | 0.33 | % | 71,026 | | 0.42 | % |
Brokered | | — | | — | | — | | — | | 8,436 | | 5.23 | % |
Total certificates of deposit | | 439,348 | | 1.06 | % | 433,826 | | 1.09 | % | 424,232 | | 1.48 | % |
Total deposits | | $ | 1,135,229 | | 0.49 | % | $ | 1,110,824 | | 0.52 | % | $ | 1,122,525 | | 0.70 | % |
| | | | | | | | | | | | | | | | | | | |
PULASKI FINANCIAL CORP.
NONPERFORMING ASSETS
(Unaudited)
| | (In thousands) | | | |
| | June 30, | | March 31, | | September 30, | |
| | 2012 | | 2012 | | 2011 | |
NONPERFORMING ASSETS | | | | | | | |
Non-accrual loans: | | | | | | | |
Residential real estate first mortgages | | $ | 5,414 | | $ | 5,216 | | $ | 5,871 | |
Residential real estate second mortgages | | 957 | | 532 | | 1,177 | |
Home equity | | 3,036 | | 1,735 | | 4,084 | |
Commercial and multi-family | | 6,962 | | 7,866 | | 2,375 | |
Land acquisition and development | | — | | 229 | | 229 | |
Real estate-construction and development | | 65 | | 482 | | 854 | |
Commercial and industrial | | 4,146 | | 4,388 | | 210 | |
Consumer and other | | 278 | | 96 | | 240 | |
Total non-accrual loans | | 20,858 | | 20,544 | | 15,040 | |
| | | | | | | |
Troubled debt restructured: (1) | | | | | | | |
Current under the restructured terms: | | | | | | | |
Residential real estate first mortgages | | 7,723 | | 11,585 | | 14,911 | |
Residential real estate second mortgages | | 1,021 | | 1,348 | | 1,861 | |
Home equity | | 800 | | 565 | | 1,248 | |
Commercial and multi-family | | 7,575 | | 3,510 | | 4,359 | |
Real estate-construction and development | | 501 | | 853 | | 1,538 | |
Commercial and industrial | | 1,555 | | 533 | | 560 | |
Consumer and other | | — | | 80 | | — | |
Total current restructured loans | | 19,175 | | 18,474 | | 24,477 | |
Past due greater than 30 days under restructured terms: | | | | | | | |
Residential real estate first mortgages | | 6,989 | | 6,989 | | 9,372 | |
Residential real estate second mortgages | | 140 | | 176 | | 452 | |
Home equity | | 377 | | 576 | | 999 | |
Commercial and multi-family | | 574 | | 2,167 | | 2,226 | |
Land acquisition and development | | 40 | | 104 | | 121 | |
Real estate-construction and development | | — | | 24 | | 51 | |
Commercial and industrial | | — | | 152 | | 417 | |
Consumer and other | | 3 | | — | | 226 | |
Total past due restructured loans | | 8,123 | | 10,188 | | 13,864 | |
Total restructured loans | | 27,298 | | 28,662 | | 38,341 | |
Total non-performing loans | | 48,156 | | 49,206 | | 53,381 | |
Real estate acquired in settlement of loans: | | | | | | | |
Residential real estate | | 2,431 | | 2,828 | | 3,037 | |
Commercial real estate | | 13,766 | | 14,207 | | 15,681 | |
Total real estate acquired in settlement of loans | | 16,197 | | 17,035 | | 18,718 | |
Total non-performing assets | | $ | 64,353 | | $ | 66,241 | | $ | 72,099 | |
(1) Troubled debt restructured includes non-accrual loans totaling $27.3 million, $28.7 million and $38.3 million at June 30, 2012, March 31, 2012 and September 30, 2011, 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 | | Nine Months | |
| | Ended June 30, | | Ended June 30, | |
| | 2012 | | 2011 | | 2012 | | 2011 | |
ALLOWANCE FOR LOAN LOSSES | | | | | | | | | |
Allowance for loan losses, beginning of period | | $ | 18,254 | | $ | 26,663 | | $ | 25,714 | | $ | 26,976 | |
Provision charged to expense | | 3,000 | | 4,000 | | 11,500 | | 11,800 | |
(Charge-offs) recoveries, net: | | | | | | | | | |
Residential real estate first mortgages | | (1,505 | ) | (1,385 | ) | (6,546 | ) | (3,043 | ) |
Residential real estate second mortgages | | (374 | ) | (927 | ) | (1,782 | ) | (1,592 | ) |
Home equity | | (231 | ) | (359 | ) | (3,988 | ) | (2,038 | ) |
Commercial and multi-family | | (383 | ) | (779 | ) | (3,934 | ) | (1,515 | ) |
Land acquisition & development | | — | | (1,457 | ) | (255 | ) | (4,370 | ) |
Real estate-construction and development | | (47 | ) | 1 | | (288 | ) | (49 | ) |
Commercial and industrial | | (710 | ) | 6 | | (1,931 | ) | (352 | ) |
Consumer and other | | (3 | ) | (13 | ) | (489 | ) | (67 | ) |
Total loans charged off, net | | (3,253 | ) | (4,913 | ) | (19,213 | ) | (13,026 | ) |
Allowance for loan losses, end of period | | $ | 18,001 | | $ | 25,750 | | $ | 18,001 | | $ | 25,750 | |
| | June 30, | | March 31, | | September 30, | |
| | 2012 | | 2012 | | 2011 | |
ASSET QUALITY RATIOS | | | | | | | |
Nonperforming loans as a percent of total loans | | 4.75 | % | 4.85 | % | 5.11 | % |
Nonperforming loans excluding current troubled debt restructurings as a percent of total loans | | 2.86 | % | 3.03 | % | 2.77 | % |
Nonperforming assets as a percent of total assets | | 4.78 | % | 5.03 | % | 5.51 | % |
Nonperforming assets excluding current troubled debt restructurings as a percent of total assets | | 3.36 | % | 3.63 | % | 3.64 | % |
Allowance for loan losses as a percent of total loans | | 1.78 | % | 1.80 | % | 2.46 | % |
Allowance for loan losses as a percent of nonperforming loans | | 37.38 | % | 37.10 | % | 48.17 | % |
Allowance for loan losses as a percent of nonperforming loans excluding current troubled debt restructurings and related allowance for loan losses | | 60.11 | % | 57.59 | % | 84.50 | % |
PULASKI FINANCIAL CORP.
AVERAGE BALANCE SHEETS
(Unaudited)
| | (Dollars in thousands)
Three Months Ended | |
| | June 30, 2012 | | June 30, 2011 | |
| | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | and | | Yield/ | | Average | | and | | Yield/ | |
| | Balance | | Dividends | | Cost | | Balance | | Dividends | | Cost | |
Interest-earning assets: | | | | | | | | | | | | | |
Loans receivable | | $ | 1,014,444 | | $ | 12,304 | | 4.85 | % | $ | 1,061,821 | | $ | 13,402 | | 5.05 | % |
Mortgage loans held for sale | | 136,226 | | 1,249 | | 3.67 | % | 50,525 | | 557 | | 4.41 | % |
Other interest-earning assets | | 63,219 | | 110 | | 0.70 | % | 140,556 | | 216 | | 0.61 | % |
Total interest-earning assets | | 1,213,889 | | 13,663 | | 4.50 | % | 1,252,902 | | 14,175 | | 4.53 | % |
Noninterest-earning assets | | 93,495 | | | | | | 89,563 | | | | | |
Total assets | | $ | 1,307,384 | | | | | | $ | 1,342,465 | | | | | |
| | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | |
Deposits | | $ | 954,197 | | $ | 1,653 | | 0.69 | % | $ | 1,037,849 | | $ | 2,743 | | 1.06 | % |
Borrowed money | | 50,127 | | 363 | | 2.89 | % | 48,589 | | 353 | | 2.91 | % |
Total interest-bearing liabilities | | 1,004,324 | | 2,016 | | 0.80 | % | 1,086,438 | | 3,096 | | 1.14 | % |
Noninterest-bearing deposits | | 162,510 | | | | | | 124,229 | | | | | |
Noninterest-bearing liabilities | | 14,552 | | | | | | 12,310 | | | | | |
Stockholders’ equity | | 125,998 | | | | | | 119,488 | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,307,384 | | | | | | $ | 1,342,465 | | | | | |
Net interest income | | | | $ | 11,647 | | | | | | $ | 11,079 | | | |
Interest rate spread | | | | | | 3.70 | % | | | | | 3.39 | % |
Net interest margin | | | | | | 3.84 | % | | | | | 3.54 | % |
| | (Dollars in thousands) | |
| | Nine Months Ended | |
| | June 30, 2012 | | June 30, 2011 | |
| | | | Interest | | Average | | | | Interest | | Average | |
| | Average | | and | | Yield/ | | Average | | and | | Yield/ | |
| | Balance | | Dividends | | Cost | | Balance | | Dividends | | Cost | |
Interest-earning assets: | | | | | | | | | | | | | |
Loans receivable | | $ | 1,028,570 | | $ | 38,154 | | 4.95 | % | $ | 1,064,048 | | $ | 40,500 | | 5.07 | % |
Mortgage loans held for sale | | 137,862 | | 3,836 | | 3.71 | % | 155,743 | | 4,922 | | 4.21 | % |
Other interest-earning assets | | 52,176 | | 307 | | 0.79 | % | 90,351 | | 695 | | 1.03 | % |
Total interest-earning assets | | 1,218,608 | | 42,297 | | 4.63 | % | 1,310,142 | | 46,117 | | 4.69 | % |
Noninterest-earning assets | | 88,403 | | | | | | 88,799 | | | | | |
Total assets | | $ | 1,307,011 | | | | | | $ | 1,398,941 | | | | | |
| | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | |
Deposits | | $ | 960,446 | | $ | 5,622 | | 0.78 | % | $ | 1,018,228 | | $ | 8,914 | | 1.17 | % |
Borrowed money | | 50,830 | | 1,092 | | 2.86 | % | 118,677 | | 1,222 | | 1.37 | % |
Total interest-bearing liabilities | | 1,011,276 | | 6,714 | | 0.89 | % | 1,136,905 | | 10,136 | | 1.19 | % |
Noninterest-bearing deposits | | 156,685 | | | | | | 128,075 | | | | | |
Noninterest-bearing liabilities | | 14,586 | | | | | | 14,337 | | | | | |
Stockholders’ equity | | 124,464 | | | | | | 119,624 | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,307,011 | | | | | | $ | 1,398,941 | | | | | |
Net interest income | | | | $ | 35,583 | | | | | | $ | 35,981 | | | |
Interest rate spread | | | | | | 3.74 | % | | | | | 3.50 | % |
Net interest margin | | | | | | 3.89 | % | | | | | 3.66 | % |
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